The Importance of Marketing

Marketing is the process of communicating the value of a product or service to customers. Another definition of marketing is the activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure. The four ‘Ps’ of marketing are product, place, price and promotion.

Marketing Mix is one of the most fundamental concepts in marketing management. For attracting consumers and for sales promotion, every manufacturer has to concentrate on four basic elements/components. These are: product, pricing, distributive channels (place) and sales promotion techniques. A fair combination of these marketing elements is called Marketing Mix.

The Marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case. In 1776 in the Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant. After world war II the variety of products increased and hard selling no longer could be relied upon to generate sales. With increased discretionary income, customer could afford to be selective and buy only those products that precisely met their changing needs , and these needs were not immediately obvious.

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1.0 Introduction (Q1)

Marketing Mix is one of the most fundamental concepts in marketing management. For attracting consumers and for sales promotion, every manufacturer has to concentrate on four basic elements/components. These are: product, pricing, distributive channels (place) and sales promotion techniques. A fair combination of these marketing elements is called Marketing Mix. It is the blending of four inputs (4 Ps) which form the core of marketing system. This marketing mix is marketing manager’s tool for achieving marketing objectives/targets. He has to use the four elements of marketing mix in a rational manner to achieve his marketing objectives in terms of volume of sales and consumer support. Marketing mix is the combination of four basic elements/ingredients under one head. Product itself is the most important element of marketing mix. Price, place and promotion are the other supporting elements. Marketing mix indicates an appropriate combination of four Ps for achieving marketing objectives.

2.1.1 Question 1

Definition of marketing mix for every businessman is putting the right product in the right place, at the right price, at the right time. Marketing is a planned that mix of the controllable elements of a product’s marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the product’s customers, while generating optimum income. Every business enterprises have to determine its marketing-mix for the satisfaction of needs of the customers. Marketing mix is a very useful tool for every firms or companies.

Product 

A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry, in other words to explain, can feel it but can’t touch it. Tangible products are those thing that can touch or physical existence.

Product-mix involves planning, developing and producing the right types of products and services to be marketed by the company. It deals with the product range, durability and other qualities and other features. In short, product planning and development involves decisions like quality of the product, size of the product, design of the product, volume of the production, packaging, warranties and after-sales service. And also, they have to decide which ‘market segment’ they are aiming at age, income and geographical location.

Price

The price is the amount that the customer willing to pay for the product. The price is very important as it determines the company’s profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that the customer willing to pay and the suitable price that can satisfy the customer. When setting a price, the marketer must be aware of the customer perceived value for the product. Manager should think about certain question like: what is the value of the product or service to the buyer, are there established price points for products or services in this area, how will your price compare with your competitors. And also, the price must be high enough to cover costs and make a profit but low enough to attract customers.

Promotion 

Promotion is communicating with the public in an attempt to influence them toward buying your products or services. Promotion comprises elements such as advertising, personal selling and sales promotion. Advertising is a tool which the marketing manager uses to communicate a message to consumers through newspapers, magazines, television. Personal selling is another means of communicating to consumers, and consists of direct person to person interaction between salesman and customers. Sales promotion includes all the methods of communicating with the consumers except advertising and personal selling. It includes free samples, premium on sale, contests, displays, shows and exhibitions.

Place 

Refer to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. It includes activities that are necessary to transfer ownership of goods to customers and to make available goods at the right time and place at which the products should be displayed and made available to the customers. It is to make products available in the right place at the right time in the right quantities.

2.1.2 Purpose of marketing mix

The basic purpose to determining the marketing-mix is to satisfy the needs and wants of the customers in the most effective manner. As the needs of customers and the environmental factors change, the marketing-mix is also changed. Thus, marketing-mix is a dynamic concept. It concentrates on how to satisfy the needs of the customers. Moreover, the purpose of the marketing mix is to increase sales, to raise profit and turn over, satisfy the needs of the customers, increase the consumption demand and more.

2.1.3 Conclusion

In conclusion, I know that marketing mix is a very useful business tool for firms or companies. This marketing mix is marketing manager’s tool for achieving marketing objectives/targets. He has to use the four elements of marketing mix in a rational manner to achieve his marketing objectives in terms of volume of sales and consumer support.

2.2.1Marketing concept

The Marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case. In 1776 in the Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant. After world war II the variety of products increased and hard selling no longer could be relied upon to generate sales. With increased discretionary income, customer could afford to be selective and buy only those products that precisely met their changing needs , and these needs were not immediately obvious.

The key questions became :

What do customers want ?

Can we develop it while they still want it

How can we keep our customers satisfied?

In response to these discerning customer, firms began to adopt the marketing concept, which involves:

Focusing on customer needs before developing the product

Aligning all functions of the company to focus on those needs

Realizing a profit by successfully satisfying customer needs over the long term

When firms began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was so satisfy customer needs.

2.2.2 Importance of marketing concept

Business enterprises are conducting their marketing activities under the following five marketing concepts.

1. Product concept
2. Production concept
3. Selling concept
4. Marketing concept
5. Societal concept

Production concept

Production concept is the oldest concept under which the businessmen produce goods thinking customers are interested only in low priced, extensively and easily available goods. Finishing and the interest of customers are not important for the manufacturers. They focus only on large scale production and try to make it available on large scale. They try to achieve high production efficiency and creating wide distribution coverage. This concept can be adopted under the following situations.

Product concept

Consumers favour those products that offer the most quality, performance and features is the basis of product concept.  They believe that consumers are willing to pay higher cost for the goods or services which has extra quality. Companies which concentrate on product concept is focused on product improvement.  They constantly improve the product quality and features to satisfy and attract the customers.  Too much focus on product may go off the track and fail.  For example, a biscuit manufacturer produced  a new brand of biscuits with good colour , ingredients and packing etc., without taking much importance in consumer tastes and preferences. This may fail in the market if the biscuit does not taste good to the ultimate consumer.

Selling concept

In selling concept, producers believe that the aggressive persuasion and selling is the  essence of  their  business  success.   They think without such aggressive methods they cannot sell or exist in the market.  They are focused on finding ways and means to sell their products.  They believe that consumer  themselves will not buy enough of the enterprises products or service by themselves.  Hence they do a considerable promotional efforts to sell their product through advertisements and  other means. Sales agents of electrical equipments, insurance agents, soft drink/health drink companies  and fund raisers for social or religious causes comes under this category.  That is why we are getting lots of calls from insurance agents, even though insurance is a subject matter of solicitation.  In short, selling concepts assumes that consumers on their own will not buy enough of enterprises products, unless the enterprise undertakes aggressive sales and promotional efforts.

Marketing concept

Under marketing concept the task of marketing begins with finding what the consumer want and produce a product which will meet the  consumer requirement and provides maximum satisfaction.  “Customer is the King” concept emerged from this point of view.  In the process of evolution many organizations changed their way of thinking to match  the  marketing concept.  Under this concept producers considers the needs and wants of consumers as the guiding spirit and deliver such goods which can satisfy the consumer needs more efficiently and effectively than the competitors. Marketing concept is consumer oriented and look forward to achieve long term profits by making a network of satisfied consumers. When an organization practice the marketing concept, all their activities  such as research and development, distribution, quality control, finance, manufacturing, selling etc., are focused to satisfy the consumer needs and wants.

Societal concept

With the growing awareness of the social responsibility of the business,  attempts made successfully to turn the business organizations socially responsible.  Environmental deterioration, excessive exploitation of resources and growing consumer movements have necessitated the recognition and relevance of marketing based on socially responsible. Societal concept is the extension of marketing concept to cover the society in addition to the consumers.  Under the societal concept the business organization must take into account the needs and wants of the consumers and deliver the goods and services efficiently so as to balance the consumers satisfaction as well as the society’s well being.

2.2.3Conclusion

In conclusion, I know that the Marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant.

3.0 Conclusion

Marketing mix are price , place, promotion and product. When marketing their products firms need to create a successful mix of the right product , sold at the right price, in the right place, using the most suitable promotion. To create the right marketing mix, businesses have to meet the following conditions such as the product has to have the right features. For example, it must look good and work well. Other than that, the price must be right because consumer will need to buy in large numbers to produce a healthy profit. Last but not least , the target group needs to be made aware of the existence and availability of the product thought promotion.

Importance of marketing , the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. With increased discretionary income, customer could afford to be selective and buy only those products that precisely met their changing needs , and these needs were not immediately obvious.