Marketing is communicating
the value of a product, service or brand to customers,
for the purpose of promoting or selling that product, service, or brand.
Marketing techniques include choosing target
markets through market analysis and market segmentation, as well as understanding consumer
behavior and advertising a product's value to the customer.
From a societal point of view, marketing is the
link between a society's material requirements and its economic
patterns of response.
Marketing satisfies these needs and wants through
exchange processes and building long-term relationships.
Marketing blends art and applied
science (such as behavioural sciences) and makes use of information technology.
Marketing is applied in enterprise and
organizations through marketing management.
A
firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently,
ascertaining consumer demand is vital for a firm's future
viability and even existence as a going concern.
Many companies today have a customer focus (or market orientation). This
implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven
approach, the market change identification approach and the product innovation
approach.
In
the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of
consumer research. Every aspect of a market offering, including the nature of
the product itself, is driven by the needs of potential consumers. The starting
point is always the consumer. The rationale for this approach is that there is
no reason to spend R&D (research and development) funds developing products
that people will not buy. History attests to many products that were commercial
failures in spite of being technological breakthroughs.
A
formal approach to this customer-focused marketing is known as SIVA
(Solution, Information, Value, Access). This system is basically the four Ps
renamed and reworded to provide a customer focus. The SIVA Model provides a
demand/customer-centric alternative to the well-known 4Ps supply side model
(product, price, placement, promotion) of marketing management.
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Product
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Solution
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Promotion
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Information
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Price
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Value
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Place (Distribution)
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Access
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If
any of the 4Ps were problematic or were not in the marketing factor of the
business, the business could be in trouble and so other companies may appear in
the surroundings of the company, so the consumer demand on its products will
decrease. However, in recent years service marketing has widened the domains to
be considered, contributing to the 7P's of marketing
in total. The other 3P's of service marketing are: process, physical environment
and people.
The marketing planning process
involves forging a plan for a firm's marketing activities. A marketing plan can
also pertain to a specific product, as well as to an organization's overall marketing strategy. Generally speaking, an
organization's marketing planning process is derived from its overall business
strategy. Thus, when top management are devising the firm's strategic
direction or mission, the intended marketing activities are incorporated into
this plan. There are several levels of marketing objectives within an organization.
The senior management of a firm would formulate a general business strategy for
a firm. However, this general business strategy would be interpreted and
implemented in different contexts throughout the firm.
Marketing strategy
The field of marketing strategy considers the
total marketing environment and its impacts on a company or product or service.
The emphasis is on "an in depth understanding of the market environment,
particularly the competitors and customers.
A given firm may offer numerous products or
services to a marketplace, spanning numerous and sometimes wholly unrelated
industries. Accordingly, a plan is required in order to effectively manage such
products. Evidently, a company needs to weigh up and ascertain how to utilize
its finite resources. For example, a start-up car manufacturing firm would face
little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or
any other large global car maker. Moreover, a product may be reaching the end
of its life-cycle. Thus, the issue of divest, or a ceasing of production, may
be made. Each scenario requires a unique marketing strategy. Listed below are
some prominent marketing strategy models.
A marketing strategy differs from a marketing
tactic in that a strategy looks at the longer term view of the products, goods,
or services being marketed. A tactic refers to a shorter term view. Therefore,
the mailing of a postcard or sales letter would be a tactic, but changing
marketing channels of distribution, changing the pricing, or promotional
elements used would be considered a strategic change.
A marketing strategy considers the resources a
firm has, or is required to allocate in effort to achieve an objective.
Marketing Strategies include the process and planning in which a firm may be
expected to achieve their company goals, in which usually involves an effort to
increase revenues
or assets, through a series of milestones or benchmarks
of business and promotional activities.
Positioning
The marketing activity and process of identifying
a market problem or opportunity, and developing a solution based on market
research, segmentation and supporting data. Positioning
may refer the position a business has chosen to carry out their marketing and
business objectives. Positioning relates to strategy, in the specific or
tactical development phases of carrying out an objective to achieve a business'
or organization's goals, such as increasing sales volume, brand
recognition, or reach in advertising.
Buying behavior
A marketing firm must ascertain the nature of
customers' buying behavior if it is to market its product properly. In order to
entice and persuade a consumer to buy a product, marketers try to determine the
behavioral process of how a given product is purchased. Buyer behavior in the
digital age is assessed through analytics and predictive modelling. The
analysis of buyer behavior through online platforms includes Google
Analytics and vendor side software such as Experian. The psychology of marketing is
determined through the analysis of customer perception pertaining to brands.
Marketing theory holds that brand
attributes is primarily a matter of customer perception rather than product
or service features.
Buying behavior is usually split into two prime strands, whether selling to the consumer, known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).
B2C buying behavior
This mode of behavior concerns consumers and
their purchase of a given product. For example, if one imagines a pair of
sneakers, the desire for a pair of sneakers would be followed by an information
search on available types/brands. This may include perusing media outlets, but
most commonly consists of information gathered from family and friends. If the
information search is insufficient, the consumer may search for alternative
means to satisfy the need/want. In this case, this may mean buying leather
shoes, sandals, etc. The purchase decision is then made, in which the consumer
actually buys the product. Following this stage, a post-purchase evaluation is
often conducted, comprising an appraisal of the value/utility brought by the
purchase of the sneakers. If the value/utility is high, then a repeat purchase
may be made. This could then develop into consumer loyalty to the firm
producing the sneakers.
B2B buying behavior
Relates to organizational/industrial buying
behavior. Business buy either wholesale from other businesses or directly from
the manufacturer in contracts or agreements. B2B marketing involves one
business marketing a product or service to another business. B2C and B2B
behavior are not precise terms, as similarities and differences exist, with
some key differences listed below:
In a straight re-buy, the fourth, fifth and sixth
stages are omitted. In a modified re-buy scenario, the fifth and sixth stages
are precluded. In a new buy, all stages are conducted.
