What is marketing? The definition of ‘marketing’ is used to describe a set of tactics and business practices to make a brand, a product, or a service suited to particular markets.
This includes branding behavior, measurement of target audiences, price control, and advertising.
Although a corporation’s manufacturing department produces the actual product, marketing requires all steps to demonstrate this product to the consumer and convince him to purchase it.
Why are we doing marketing, anyway?
Nowadays, if you question staff from the outside marketing field of an organization what they believe about marketing, you sometimes hear comments like If the item is great, there is no need for marketing!
Even in the pre-industrial period, this presumption would have been right.
If there were only two carpenters in the village at that time, their customers quickly found which of the two produced better quality, which of the two had lower prices, and whose work best suited their sense of aesthetics.
This presumption would have been correct in the pre-industrial period.
If there were simply two craftsmen in the community at that point, their customers quickly found which of the two produced better quality, which of the two had lower costs, and whose work best befitted their sense of aesthetics.
The development of the marketing concept
So it is not shocking that marketing did not grow until the end of the 19th century, as we know it today.
Although we were still dealing with conventional sellers’ markets before that, many potential buyers had to pick from a relatively limited selection of goods.
A so-called buyer’s market in which a constantly increasing number of producers of identical goods compete for a constantly smaller number of potential buyers was quickly created by machine-supported mass production.
It is no longer a matter of the consumer purchasing in the modern buyer’s market in most sectors, but rather of buying the business’s goods instead of rival products.
What are the most important marketing goals?
For different business purposes, marketing may be used. Therefore, ere developing a marketing plan, it is necessary to identify the objectives correctly.
For branding and direct sales, you can use online marketing.
Sales marketing has primarily economic goals in focus, such as:
- Contribution margin
- Market share
- Price level
- Distribution level
Branding or brand development has rather psychological goals in focus:
- Awareness level
- customer satisfaction
- Customer loyalty
- Brand loyalty
- Purchase intensity
- Level of competence
- Buyer Penetration
How do tactics for marketing contribute to success?
The two village carpenters were immediately faced with competition from our example – from other carpenters and manufacturers in the area and later from specialist furniture stores.
From that point on, carpenters had to take advantage of marketing strategies to separate their goods and services from the competition.
At that time, a smart carpenter may have asked what people value around the village in their furniture.
E.g., suppose the carpenter figured out that people liked the furniture store’s low prices, but a repair offer was missing. He should have responded accordingly in that situation.
He would possibly have circulated flyers or put up posters to advertise his broken furniture repair service.
The carpenter would have already carried out market research on a small scale, changed his own company’s attention accordingly. Then took effective market-oriented marketing steps to convince the neighbors of the village that he could deliver exactly what they wanted.
The classic blend of marketing
The effectiveness of the rather shirt-sleeved) marketing steps by our carpenter will, of course, be rather limited today.
This is largely due to today’s much more difficult business environment, with hundreds of manufacturers competing globally and regionally. Which needs much greater product differentiation and marketing steps.
A look at the so-called marketing mix helps to understand which steps for such distinction can be taken at all.
“It summarizes all marketing practices or fields and consists of the so-called “four P’s” classically:
- Service (policy on products)
- Price (policy on pricing)
- Doctorate (Policy of Communication)
- Place (policy on distribution)
At this point, it also becomes clear how detailed the tools of marketing are.
And at this stage, it becomes clear that, as is often done in colloquial language, ‘marketing and advertising’ are not the same.
Just one of the potential marketing activities is an advertisement. Within a systematic marketing campaign, it is usually a calculation.
The Policy of Goods
In certain industries, before marketing starts, the product can be ready. But in industries that structure themselves solely according to marketing aspects, marketability often defines product policy.
The demand is first evaluated, and surveys and focus groups are organized instead of making a product and only worrying about who to sell it to.
If it is noticed that there is a consumer gap that is currently barely covered, then an acceptable product is planned.
For example, do the respondents like to drink cola but eat very little because the sugar content is too high? We are launching Diet Coke!
The strategy of price
A significant element in marketing is the price of a commodity. Even before the advent of the idea of marketing, this wisdom was clear, and it is still valid in the age of marketing.
However, from a marketing point of view, the whole pricing policy is considered here and not just an individual product’s price.
For instance, a business can find untapped groups of customers who need their product but find it too costly above a certain price and choose to do it without it.
Then, under many brand names – a premium and a low-cost brand – the product could be offered.
Or is a rival with a nearly similar product already filling the need? Then the price can simply be lowered to allow the clients of the competitor from now on to use their product.
The Strategy of Contact
Information strategy summarizes the marketing methods that are commonly known as’ marketing’ by all.
The objectives of communication are set here; for example, “the customer should perceive the product as a real bargain”). Subsequently, through multiple communication networks, an effort is made to attain these objectives.
It is possible to use marketing strategies such as trade fair appearances, sponsorship, classic mass media ads, or social media influencers for this purpose.
Which tool is chosen depends on the target group. For example, by appearances at trade fairs, a specialist audience may be ideally motivated for their goods. In contrast, online ads, as well as advertising on radio, TV, daily newspapers, or magazines, aim to target a wide mass audience.
The policy of sales
The item is ready, the suggested retail price has been checked to the cent, and the promotional strategy has been planned. The only remaining question is: how do the goods meet the customer?
As part of marketing, what initially sounds like a strictly logistical query can also be understood.
For instance, suppose you want your product to address an exclusive community of customers.
In that case, selling the product only by direct mail or specialist stores would be faster and more profitable. Selling it at the kiosk around the corner would rather harm the luxury brand than assist it in sales.
On the other hand, the room on the supermarket shelf is suitable for daily goods. The goal here is to bring the product to the consumer through as many distribution channels as possible. That is to stand a chance against the competition.