In this article, learn about the basic principles and importance of marketing.
Market –Place where buyers and sellers meet and conduct buying and selling activities.
Customers – people or organizations that seek satisfaction of their wants.
Marketers – Sellers as marketer are the deliverers or providers of products or services.
Marketing definition – According to J.F. Pyle, “Marketing is that phase of business activity through which human wants are satisfied by the exchange of goods and services.”
FEATURES OF MARKETING
- Satisfaction of the needs and wants of individuals and organizations.
- Offering a product of service.
- Greatest benefit or value for the money.
- Exchange of products/services for money/for something of value to them.
WHAT IS MARKETING MANAGEMENT?
Marketing management is the process of organizing, directing and controlling the activities related to marketing of goods and services to satisfy customer needs and achieve organizational goals.
Marketing involves choosing a target market, growing customers and creating superior value.
- FUNCTIONS OF MARKETING
PHILOSOPHIES/CONCEPTS OF MARKETING
Production Concept – referring to the production of good or services to meet the demand through supply.
Product Concept – customers started looking for products that were superior in performance, good quality and attractive features, thus producers modified their products and increased the supply to meet such demands.
Selling Concept – sellers adopted various means to increase the sale of the product thus leading to improved product quality as customer preferred quality more than quantity.
Marketing Concept – Implies that a firm can achieve its goals by identifying needs of the customer and satisfying them in a competitive world through improved customer service.
Social Marketing Concept – this emphasize on the social welfare.
What is the basic difference between selling and marketing?
|Meaning||The sale of goods or service through publicity, promotion and salesmanship||A business activity through which human wants are satisfied by the exchange of goods and services.
|Scope||It is only a part of marketing.||It consists a number of activities such promotion mix, customer satisfaction, etc.|
|Importance||Transfer of the title from seller to consumer.||Achieving maximum satisfaction of customer needs and wants.|
|Supremacy||Given to product||Given to customer|
|Objective||Profits through sales volume.||Profits through customer satisfaction.|
|Emphasis||Making the customer to buy the product as it is.||To develop the products as per the customer needs.|
Marketing mix refers to ingredients, tools or variables which the marketeer mixes in order to interact with a particular market.
This comprises of tangible and intangible products offered to customers to satisfy their needs and wants by various product mix means.
- Classification of Products
The process used to create a distinct identity of a product, example, using a name, term, symbol or design individually or in some combination to identify a product.
Qualities of a Good Brand Name
Advantages of Branding
Advantages to the marketers:
- Distinguishes the products from that of its competitors, thus secures and controls its markets.
- Helps in advertising and creating awareness
- Helps in differential pricing as customers would agree to pay a little more for a brand name.
- Ease in introduction of a new product
Advantages to Customers:
- Helps in product identification
- Ensures quality products.
- Acts as a status symbol.
- Ensures value for money
Act of designing and producing the container or wrapper of a product.
Levels of Packaging
Functions of Packaging
- Packaging helps in identification of the product.
- Provides protection to the product from pollution, insects and breakage.
- It provides convenience in carriage, transportation, stocking and in consumption.
- Packaging facilitates promotion.
Advantages of Packaging
- Rising standards of health and sanitation
- Self-Service outlets
- Innovation on packaging used to market products
- Facilitates product differentiation in terms of colour, size, material etc of packaging
Labelling means putting identification marks on the package. Label carries information and provides information like – name of the product, name of the manufacturer, contents of the product, expiry and manufacturing date, general information for use, weight, ingredients, etc.
Functions of labelling:
- facilitates product identification.
- The manufacturer prints all the information related to the product.
- With the help of label, products can be graded in different categories.
- Attractive and colourful labels excite the customers to buy the product thus, facilitating promotion.
- Providing all information required by law.
- PRICE MIX:
Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service.
Factors determining price:
Pricing Objective – To maximize profits by charging maximum price, have large market share by maximizing sales through charging lower price and if firm is in a competitive market may charge low price.
Product cost – Price should include all producing, distributing and selling costs and also a fair return for undertaking the marketing effort and risk.
Utility and demand – Utility of the product and demand of the product helps in determining the price that a buyer would be willing to pay for a product.
Competition in Market – Prices of competitors need to be considered before fixing prices.
Government Policies – Products regulated by government pricing regulations need to be priced as per government policies.
- PLACE MIX
The marketer needs to make sure that the product is available at the right quantity, at the right time and at the right place. Through – Channels of distribution or Physical distribution of products.
Components of physical distribution
- Accurate & speedy order processing
- Transporting products
- Proper inventory control
- Warehousing to meet the time gap between production and demand of product.
- Channels of Distribution
Factors Determining Choice of Channels of Distribution
Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. The factors are:
- Market related
- Product related
- Company related
- PROMOTION MIX
It refers to combination of promotional tools used by an organization to communicate and persuade customers to buy its products.
Most commonly used tool of promotion through newspaper, magazine, television & radio.
Importance of Advertising
- Paid form of promotion.
- Impersonal promotion where there is no direct face to face contact between prospects and advertisers.
- Advertising is undertaken by an identified individual who makes the advertising effort.
- Large number of people over a large geographical area can be reached.
- Enhances customer satisfaction and confidence.
- Growth of economy.
- Gives a wide variety of choice to public.
Objections against Advertising:
1. Increased product price which is ultimately borne by customers.
2. Creates confusion to customers
3. In many cases some product features are over emphasized.
4. Advertisement of bad tastes
5. Undermines social values and promotes materialism
- PERSONAL SELLING
Personal selling is a face to face interaction between seller and buyer for the purpose of sale.
Features of the Personal Selling
- Personal contact
- Oral conversation.
- Quick response.
- Receipt of additional information.
- Development of relationship with the prospective customers
Qualities of a Good Salesman
- SALES PROMOTION
A type of promotion activity that seeks to stimulate interest, trial or purchase.
Merits of Sales Promotion:
- Attract attention of people through use of incentives.
- Useful in new product launch.
- Adds to the overall effectiveness of the promotional efforts of a firm.
- Increases sales
Limitations of Sales Promotion
- May give the impression that it is unable to manage its sales and there are no buyers for its products.
- Consumers may feel that the products are not of good quality or are not appropriately priced.
- Frustrate them to continuously look over the same product and same promotional tactics.
Techniques of Sales Promotion
- Offering another product as gift along with the purchase of a product.
- Scratch a card and instantly win a prize with the purchase of the product
- Offering extra quantity of the product.
- Refunding a part of price paid by customer.
- Offer of free samples of the product to potential customers.
- Discount offers
- Proper guarantee and warranty for products
- Good after sales services
Publicity is free advertising. You can generate publicity through press releases, special events, sponsorship, newsletters and community activities.
Advantages of public relation/publicity
- The message is not controllable and thus, is not paid for.
- Firm may work together to promote your company’s charitable activities or host special events and celebrations for the community.
- Compose press releases and display them on your company’s Web site.