Marketing Concepts and What They Mean
Marketing Concepts and What They Mean
Marketing is a business philosophy that states that the way a business can achieve maximum results from its resources should be carefully studied, planned and implemented. Marketing actually refers to the strategic process that an organisation undertakes to engage with its customer base, develop effective relationships so as to acquire, manage and retain valued access to future goods and services. Marketing also involves the use of sophisticated communication methods such as advertising, selling, branding, packaging and public relations to communicate information about the business and its activities to potential customers. The objective of marketing is to satisfy customer demands and desires, and to take advantage of new and /or predictable market opportunities. While marketing tends to be a bottom-line-driven approach to business strategy, there are five other perspectives on marketing that companies should seriously consider.
The first is the sales concept, which states that marketing management should be concerned with selling to customers. Selling is not just a means of survival for businesses, but is also a means to enjoy prosperity. Sales concepts believe that there is a relationship between what customers want and what they need. Therefore, selling should not just be a part of a company’s marketing strategy, but also an active and meaningful part of its activities. This way, selling becomes an end in itself.
Another perspective on marketing is product development, which considers selling to be just one aspect of marketing activities. There are many aspects of selling that marketing research has proven to be successful. However, when selling is separated from the other aspects of marketing, it is believed that selling actually does not have a negative effect on the overall result of marketing strategies. Product development, therefore, should be considered alongside marketing research, in order to determine whether the development of a new product would be beneficial for the company. For example, if a new type of lighting fixture has been developed for use in a specific area, or if a new type of cleaning equipment has been designed for office work, and the company wishes to sell these products, then product development can provide important insights into how these products would be perceived by consumers.
Another concept popular in marketing is the idea of segmentation, which refers to the practice of identifying and targeting certain groups of consumers. In some cases, marketing research has shown that marketing can be effective when used in this manner. Some marketers argue that marketing should be used to segment consumers on a more personal level, as opposed to lumping them together based on their demographic information, as is often the case with segmentation.
An additional perspective on marketing is the concept of value, which refers to how consumers judge a product or service. Although this concept has nothing to do with marketing, many marketers use this concept to determine whether a product is worthwhile for a customer. Many customers will only purchase items or services that they perceive to be of high value. Therefore, marketers must determine what customers perceive as being important, and use this value judgment to help them choose the best product to promote. For instance, some marketers believe that customers who purchase computers are more likely to buy other computer related products or services.
A final marketing concept, called selling customer orientation, refers to how a marketer determines which customers are likely to purchase their product. Marketers will often look at characteristics of customers such as their age, gender, income level, purchasing habits, and past buying history. By taking all of these factors into consideration, marketers can estimate the likelihood that a given customer is going to purchase a particular product. By selling to customers who have these characteristics, marketers can increase their likelihood of increasing sales and profits. By providing information about these various factors, marketers make it easier for customers to understand the basis for their marketing strategies.