You own a business. Your friends and family know about it. The company’s been up for a while now, and it’s doing what any company worth its salt should do — providing services and products that people need. You even managed to break even. However, you soon find out that those earning were short lives, and you eventually start seeing a decline in your profit margin.
Why is this happening?
What is the reason people have stopped buying your products or services?
What am I missing?
The short answer — marketing.
Examples of marketing can include advertising, billboards, television ads, commercials, and much more.
In the simplest terms, marketing is the process or action of promoting and selling products and services to a target audience.
Examples of marketing can include advertising, billboards, television ads, commercials, and so on.
According to Philip Kotler himself:
“Marketing is a social and managerial process in which the individuals or group of individuals obtain what they need through creating or exchanging products and their values with others.”
Marketing is a vital component of any business, but not all companies approach customers with direct marketing. They follow what experts call “marketing concepts”.
These concepts can be used to establish certain processes, such as marketing tools and plans. They also set standards for approaching a particular niche of users effectively. For instance, if you run a social media management tool, it’s good practice to segment your user base between heavy Instagram or Twitter users and develop your messaging accordingly.
Put simply, a marketing concept is a process or an idea preoccupied with satisfying the needs of the customer by way of providing a solution or a service that solves the customer’s problem. A basic example of a marketing concept would be a company that changes its production process to meet environmental standards. This shift may cost the company a lot of money short-term, but long term, the business sends the message that they’re willing to adapt to the times, and increase customer loyalty.
The next section will cover the five main marketing concepts. But before we move forward, let’s briefly go over a few key concepts that form the “ABC” of marketing.
Demand is a basic economic principle referring to a consumer’s desire to purchase good and services, and their willingness to pay a specific price for them. This core concept is built on making a product attractive and readily available for the consumer to buy it.
A product is an essential utility that the customer wants to buy. Thus, the customer gets the satisfaction based on the product features that can vary from branding, packing, different options and so on. The product is a tangible object, whereas the product-related service is intangible. Marketing takes into consideration the product benefits along with post-sale services.
The significance of buying a product lies in the service provided. Let’s take the simple act of purchasing a car. The physical product is the car itself, whereas all the features that come with the car are actually the services that satisfy a consumer.
The customers satisfy their needs by exchanging money for a product they want, thereby fulfilling their demands. For example, you want a cake; you pay cash and get one. The exchange is based on different conditions, such as giving value to other parties, communicating, accepting, or rejecting the offer.
Exchange is the process whereas transaction is an event. For example, you paid for the product; this is an exchange. You received the product after paying cash; this is a transaction. It involves obtaining a product or service without any return, so it is a one-way process.
Companies adapt to marketing techniques, where the relation-building is given more significance. It is also known as relationship marketing as companies build long-term relationships with customers, distributors, and others to retain their business activities. It is considered one of the best marketing skills to have as it has a ‘win-win’ relation for customers and other parties. It requires a high degree of understanding for the marketer.
The market consists of potential buyers who exchange money to fulfill their demands, and they want a specific product or service. Marketing makes this happen, and the marketer manages the prospect and identifies his or her willingness to engage in the exchange process.
Production is all about how companies manufacture the product, the cost involved, and the best outcome to satisfy customers. Companies believe in the fact that the products should be affordable and available to customers. This concept is based on production, how to increase the supply, thereby lowering total costs by mass production.
As per this concept, companies focus on providing the best quality and functional product.
Several companies adapt to this concept for updating and releasing new products often. However, many consumers can feel frustrated with a new product launching every month. This concept states that every company should review consumer needs and then execute a new product plan.
This marketing concept works best for companies that are sales oriented. Under this, the companies manufacture products and then sell to potential customers without knowing about their requirements. It highlights that the customer will surely buy a product if the company sells it aggressively.
Companies manufacture the product and then convince the consumers to buy them via advertising and marketing. They ignored their needs, and the sole objective is to one-up the competition by mass production. The drawback is that this kind of trend cannot be sustained long term. However, it is suitable for short term gains.
According to this concept, the company places the consumer at the center of their efforts, and it is also heavily reliant on market research. This concept is suitable for customer-centric business organizations, and it can deliver more value to potential customers to keep their satisfaction level high.
Here, the focus is on the target market and delivering the best value to customers. This concept also takes into consideration the wellbeing of customers and society as well. The company’s focus is not necessarily on long-term profits — the core value is putting the consumer and the community first.
- Communication, either professional or verbal, is required to check why they need a product.
- Creativity enables new ideas to be put to work and make them appealing to the clients.
- Negotiation is required with clients for budget, timeline, and to manage expectations. The marketer needs to bargain to get the best success.
- Public speaking
- Analytical Thinking is all about research and analysis to determine what the target audience wants.
For a business to retain its activities and sell their product or services, marketing is a must.. Furthermore, marketing job skills are required for professional marketers to retain their job and build a potential market where the business they work for can tap the needs, wants, and demands of the public.