MARKETING
INTRODUCTION TO MARKETING
It is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that gives value for customers, clients,
partners and society at large.
DEFINITION TO MARKETING
Marketing is defined by the American Marketing Association (AMA) as "the
activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and
society at large“.
Philip Kotler defined marketing as "Satisfying needs and wants through an
exchange process" and a decade later defines it as "a social and managerial
process by which individuals and groups obtain what they want and need through
creating, offering and exchanging products of value with others“.
FEATURES OF MARKETING
Customer focus
Customer satisfaction
Objective-oriented
Marketing is both art and science
Continuous and regular activity
Exchange process
Marketing environment
Marketing mix
Integrated approach
Commercial and non-commercial organizations
Precedes and follows production
FUNCTIONS OF MARKETING
Gathering and analysing market information
Marketing planning
Product designing and development
Standardization and grading
Packing and labeling
Branding
Customer support services
Pricing of product
Promotion
Physical distribution
Transportation
Storage or Warehousing
4 Ps OF MARKETING MIX
Marketing Mix is a set of marketing tool or tactics, used to promote a product or
services in the market and sell it. It is about positioning a product and deciding it to
sell in the right place, at the right price and right time. The product will then be
sold, according to marketing and promotional strategy. The components of the
marketing mix consist of 4Ps Product, Price, Place, and Promotion. In the business
sector, the marketing managers plan a marketing strategy taking into consideration
all the 4Ps. However, nowadays, the marketing mix increasingly includes several
other Ps for vital development.
1. PRODUCT
a) A product is defined as a bundle of attributes (features, functions, benefits,
and uses) capable of exchange or use; usually a mix of tangible and
intangible forms.
b) Thus a product may be an idea, a physical entity (a good), or any
combination of the three. It exists for the purpose of exchange in the
satisfaction of individual and organizational objectives.
The decisions regarding product mix will depend on many factors like :
Design
Features
Brand name
Product variety
Quality
Services
Packaging, returns, etc.
2. PRICE
Pricing decisions should be taken with great care, as it is a double-edged
sword. If your product is priced too high, it may exude a feeling of high
quality. At the same time, it will make your product placing to limited and
standard stores. So the marketer must know the art of wielding this
dangerous sword of pricing.
The pricing mix decisions need to consider the below marketing
variables :
Methods of pricing; policies; strategies
Allowances
Discounts, rebates
Payment period
Credit policy
3. PROMOTION
It aims to serve two objectives. One, it informs the potential customers about your
product and secondly, it persuades them to buy your product. The promotion mix
will thus include the various means that you can use to communicate with the
target audience. An effective promotion mix will ensure good sales and a marketer
must strive to create a conducive environment.
The main elements of a promotion mix are:
Advertising
Personal selling
Public relations
Direct marketing
Publicity -social media, print, etc.
Sales promotion
4. PLACE
A. Place or physical distribution deals with the transfer of ownership of the product
from the manufacturer to the customer.
B. The margin of your profit depends on how quickly you can turn over the goods.
The more swiftly the products reach the point of sale, the more likely are the
chances of satisfying the customers and increase brand loyalty. Hence the Place
factor is crucial in ensuring your product’s competitiveness in the market.
The following are the elements of a distribution mix :
Channels of distribution
Warehousing decision
Product handling
Transport
Inventory control
Order processing
Coverage
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