Vital Marketing Concepts
Marketing is nowadays a vital aspect of every business. The price of an item increases on account of marketing, but reliance on it has attained an inevitable aspect of buying/selling behavior of consumers/producers due to multiple reasons such as competitive market structures (e.g., monopolistic competition, oligopoly, and niche markets), economical communication technology, information revolution, MNCs, globalization, battle for competitive edge, and Brand Identity phenomenon. Marketing is the managerial effort through which goods/services move from producer to the consumer. The Effective Marketing is «The right product/service with right way, in the right place, at the right time, at the right price and making a profit in the process». The American Marketing Association offers the following formal definition: «Marketing is 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.» Encyclopedia Britannica defines, «Marketing is the sum of activities involved in directing the flow of goods and services from producers to consumers.» According to Kotler, the shortest definition of marketing is «meeting needs profitably».
Marketing is required for increasing sales and achieving a sustainable market segment for product or service. Customer gets satisfaction from the product or service, entrepreneur gets profit on sale, and business achieves reputation or goodwill. Effective Marketing materializes reputed business, profitable sale, and satisfied customer. The investigation of demand behavior is focal area of marketing. Consequently, marketing has two parents, economics and psychology. Economic considerations of demand behavior are pull or visible factors while psychological leanings are push/invisible factors behind any demand behavior. A marketing effort concentrates on customers’ propensities for psychological satisfaction and designs multiple incentives of economic benefits for customers. An effective marketing approach accommodates economic rules of selling/buying and psychological tendencies of sellers/buyers. There are seven major reasons of marketing:
- To inform about new product/service or product awareness
- To introduce a new business or business awareness
- To motivate/persuade someone for buying or demand creation
- To create stable customer account or achieving customer loyalty
- To attain Sustainable Competitive Advantage
- To achieve reputation or Goodwill,
- To realize Brand Equity
Marketing vs. Selling: – The aforesaid concept of effective marketing covers the full experience of a business deal between seller and buyer; however, there are two distinct aspects of effective marketing, i.e., selling and marketing. Perceptually, Sellers and Marketers are two different groups in a marketing activity. They have distinct views towards the customers. Harvard’s Theodore Levitt drew a perceptive contrast between the selling and marketing concepts: «Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it.» The strategic alignment between marketing and selling is vital for better results. «A study from App Data Room and Marketo found that sales and marketing alignment can make an organization 67% better at closing deals, reduce friction by 108%, and generate 209% more value from marketing.»
Marketing vs. Branding:-Branding is the marketing process by which a marketer or brand manager reduces a company’s reputation to a single word or phrase or design. The American Marketing Association defines a brand as «a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.» There is a well-known rule in marketing: «Sell what people are buying.» Similarly, the well-performing rule in branding: «Brand the attributes that people love.» An established brand creates consumer trust and emotional attachments; as a result, brands foster relationships among consumers, products and business that lead to the valuable benefits to a producer such as premium pricing, low promotion cost, loyal customer and constantly growing market share. In a nutshell, a branding effort enhances Brand Equity for sellers. Brand Equity is the brand’s power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and better profit margins against competing brands in the market. The vital strategic aspect of Brand Equity creation is internal branding. «Internal branding consists of managerial activities and processes that help, inform and inspire employees about brands.» In a branding effort, a marketer or an entrepreneur adopts four perspectives for an effective branding – Consumer Perspective (to ascertain desirability of product/service by multiple consumers), Company Perspective (to improve, technically and aesthetically, presentation and delivery process of product/service), Competitive Perspective (to understand and exploit differentiability/parity content of products/services with respect to competitors), and Brand Perspective (to work on creation of possible brand equity). It is noteworthy that, in branding, you create a perception of product/business while, during marketing, you motivate or persuade someone for actual buying. Branding is who you are while marketing is how you affect consumers’ decision process. More specifically, «Branding or Brand Management is a communication function in marketing that includes analysis and planning on how that brand is positioned in the market, which target public the brand is targeted at, and maintaining a desired reputation of the brand.»
Marketing vs. Advertising: – Marketing deals with multiple business efforts to realize ‘Profitable Sale’ such as market research, pricing & distribution of product/service, branding, selling and public relations. Advertising is just one component of marketing. In advertising, an entrepreneur or business communicates to the potential buyers about his/her products or services. Advertising is defined as:»Any form of communication in the paid media». The prominent advertising mediums are, print media, electronic media and social media. Conceptually, marketing is the way or strategy to convince potential buyers that you have the right product/service for them, while, advertising is conversion of marketing strategy into specific communication media. In advertising, you tell the potential customers about the existence and availability of right product/service for them. The greatest issue of present-day advertising is Cluttering. «An Advertising Clutter refers to the excessive amount of ad messages consumers are exposed to on a daily basis.» It is vital responsibility of a marketer to manage the clutter. The clutter management means to find the right time and place to connect with target customers and to send impeccable messages to them about your business or offerings.
Marketing vs. Networking: – Networking is a systematic human interaction with fellow human beings to exchange information and opportunities. Business Networking is dynamically linked with effective marketing. Business networking is an outcome of socio-economic interactions of an entrepreneur. The networking efforts shape a business circle. It is noteworthy; a business circle is a sub-circle of a big socio-economic circle of an entrepreneur. A business cannot survive or flourish, at least with full potential, without proper interaction among all economic agents/stakeholders. Executives’ presence in a big socio-economic circle and related associations is vital to develop an effective business networking. The business networking, BtoB and BtoC, is the crucial aspect of effective marketing.
Concisely speaking, the effective marketing is combination of networking, branding, marketing, advertising and selling. The networking earmarks areas of targeted customers, branding prepares ground through shaping/reshaping of perceptions/emotions of prospective customers, advertising informs them about product/service through multiple media, marketing motivates them for buying, and selling materializes the actual profitable sale.
