The principles of marketing
Marketing is defined as an with communication based process through which individuals are informed that existing and new needs and wants may be satisfied by the products and services of others. Which means marketing is used to try to get new customers and keep new and existing customers and also to satisfy them this process of identifying, anticipating and then meeting customer requirement profitably is called marketing.
The principles of marketing:
Marketing has four common principles to undertake, these principles are:
* Understanding customer needs
* Keep ahead of competition
* Communicate with customers
* Using technology
Understanding customer needs
The purpose of marketing understands the customer needs and what the market wants. They can establish this through analyzing the marketing mix which has 4 elements that consists of price, promotion, place and the product itself. Conducting in-depth research will allow you to identify what your customer needs are and whether a product or service you’re looking to release, will increase profit as well as market share and will also be ahead of competition.
Price – Promotion – Place – Product
Price is a particularly potent element of the marketing mix because of its direct impact on the customer, the company and the economy. To the consumer, price is an indication of quality and an important factor in the decision-making process. For the company, the price at which a product or service is sold represents the costs and making a profit.
The promotion of a product is also one of the important element of the marketing mix that is most subject to variation according to the type of product or service on offer. No product can be sold if the target market does not know of its existence. It is also clear that no amount of promotion will help to sell a product that is not acceptable to the consumer. The promotion of a product is perhaps the element of the marketing mix that is most subject to variation according to the type of product or service on offer. For some products, promotion may only play a minimal role in the marketing effort; for others,
Promotion usually covers four basic activities: advertising, personal selling, public relations and specialised sales promotion techniques.
* Advertising is concerned with communicating messages to the public in order to inform and influence them in order to lead them to buy those items that the advertising for.
* Whilst advertising is for the whole public, personal selling tends to be towards individuals. The seller may have the same basic messages that are included in advertising, but the presentation can be modified where necessary to suit specific situations and potential customers.
* Public relations is a group set up for communicational activities through which an organisation creates or maintains his image with their publics. These publics range from customers, company employees, shareholders and even the Government.
* Sales promotion involves: temporary price reductions, displays, coupons and free sample distributions are only a few of the many sales promotional techniques available.
This function is concerned with all those activities needed to move the product or service from the seller to the buyer. To understand place as a function in itself and as part of the marketing mix you must divide the function into two categories:
1. A structure through which transactions can be made so that the product is made available and accessible to the customers or consumers. This structure is referred to as a distribution channel.
2. Once that have been established, the company must turn its attention to the problem of how its products are to be physically moved through the system.
Product or Service
The product (or service) is the important of the marketing mix and it should be considered as the starting point for marketing strategy, because without the product there is nothing to promote, or to price, or to distribute.
Keeping ahead of competition
After conducting the marketing research and establishing the company needs, they need to ensure that the unique selling point (USP) of your product can stay ahead of competition and can increase awareness to your target market. Initially most companies sell the same similar product because they have established the customer needs and the demand for certain or similar products. Therefore a company needs to make sure that they have a USP and can find ways of keeping ahead of competition, by perhaps adding methods of promotion to their products and perhaps pricing the product at a price the target consumers can afford.
Communicate with customers
Communicating with customers will allow recognition and awareness of your product and USP. Companies initially will use certain methods to communicate with customers such as advertising on bill boards, TV, newspapers, the internet and more. Communicating with customers is very important due to the fact that you have to communicate at a certain extent to fulfil your customers enquires and feelings and therefore to provide enough information for customers to come to you instead of your competitors. They will need to look back at their feedback from research conducted to see if they have met every aspect of what their customers want and require in a product. It is also important if the customers can communicate with the company itself, by providing methods of contact information of the company on their adverts for example, so customers can require information or even make purchases.
Utilising new Technology
Technology plays a very big aspect in businesses nowadays, this is because nowadays companies would use technology to benefit, save time and money and have more security. Companies may broadcast a website to allow customers to get more information at their own convenience and perhaps even buy products. The advantages the company can have can benefit from less expenditure of wages for example; as you would need less staff because you won’t required to always use telephones all the time as everything is done online and also more revenue from making sales online every day and every time.
Technology will also allow greater security of the company and can protect information, security details, customer details and more for data protection purposes. Technology is normally IT related and this can improve speed and accurately and gives you the chance to communicate with customers without voice or face to face communication and they can also use IT to design your products, create certain fonts and more.