Whenever we hear about marketing, the first thing that pops up into our mind is “sales”. It is considered as a limited concept. But in fact, marketing is a much wider term. It is not only related to the buying and selling of a good or service but includes activities like pricing, promotions, distribution, advertising, social media and many other functions.
In this article, we will cover some of the important concepts of marketing.
In the words of Philip Kotler, “Marketing is a human activity directed at satisfying needs and wants through the exchange process.”
Marketing includes the satisfaction of the customers and providing profits to the manufacturers at the same time. It also entails attracting new customers and providing them with the required goods or service at reasonable prices.
Marketing majorly includes:
A market is a place which consists of a number of buyers and sellers involved in transactions of goods and services.
The customer is the necessary element that purchased the goods or service and pays for it in monetary terms. Without a customer, there would be no existence of the market.
The consumer is the one who consumes the product ultimately whether he has paid for it or not.
Needs and wants
Needs and wants are never-ending, and they make people unsatisfied. People feel uncomfortable, so they purchase the required things.
The organisation has to consider the environment before starting working on the process of marketing. The marketing environment comprises of:
SEGMENTS OF MARKETING
The market is segmented into small markets having distinct or similar features. It is the process of integration of the markets into small parts for a given period. The market segmentation has various features such as demographic, geographic, behavioural or psychographic.
The concept of the marketing mix was coined by the American marketing expert, James Culliton. Various authors further described it in 4P’s. It is the tool that helps in attracting the target areas and markets and achieving the objectives of the companies. The 4P’s of the marketing mix are:
There has to be a complete study of the product so that it can attract the customers and gain profits. The features and the design should be carefully considered so that it satisfies the needs of the customers. The production of the goods is not the only thing that matters but the brand, design, size, shape, packaging etc. are of equal importance.
It is the second important element which defines the profits. The pricing should be according to the budget of the market targeted and the potential customers. Appropriate strategies should be adopted for pricing the products. The manufacturers have to decide the price alternations such as allowances and discounts to attract the customers.
Then, there is the physical distribution of the goods manufactured. The manufacturer has to select the right mean to deliver the product to the customer at the accurate time. The place should be comfortable according to the consumers or customers.
The manufacturer has to take the decision related to the facility of storage, selecting the appropriate marketing channel, location, warehousing, transportation and inventory control.
It can be the possibility that the customers know the product, but still, there is the need of advertising it so that the customers can have the idea of its features, design, uses etc. The modes of advertising should be according to the target market.
The promotion of the product would influence the buyers to purchase it. It can be in the form of personal selling, sales promotion and publicity through various means.
PLC is the cycle through which every product goes through. There are four stages involved starting from the introduction stage in which the product is launched. This stage requires investment in huge amount without the assurance of the success of the product. Then there is the growth stage in which the product is positioned in the market.
The next stage is the maturity stage which is quite challenging as there is the need of maintenance of the market share. The last stage is the decline stage in the which the product begins to decline, but some opportunities for the success can be there.
For the success of the business, it is important to know the strong points and the weak points of the business. At some point, the product needs to be revised and analysed again to know the reason of slow-down of the business. SWOT analysis helps the manufacturers for the better analysis.
It comprises of:
It describes the strong points of the product that attracts the customers the most.
It is the weakness where the product lags behind than other products.
The upcoming opportunities that the product can avail and the chances of considerable growth in the market.
The competitors are the threats to the product. Their betterment or fewer prices can affect our product.