Marketing is a tool that every entrepreneur must know. Without a doubt, all companies in one way or another use marketing techniques, even without knowing it. Marketing is nothing more than making exchanges between a minimum of 2 parties in a way that produces mutual benefit.
We have all heard of Marketing on occasion. However, if we ask for a definition, some would say that it is selling and others advertising. We would have those people who think that marketing is the distribution of products, others would think that it is to design containers or packaging, etc.
And we could also affirm that everyone is right, but not independently. These are all tasks that can be developed in marketing
1. POSSIBLE DEFINITIONS
In order to clarify what Marketing consists of, we will indicate below some possible definitions:
- "Marketing is a total system of commercial activities, aimed at planning, setting prices, promoting and distributing products and services that meet the needs of potential consumers." "Marketing is the internal process of a society by means of which it is planned in advance how to increase and satisfy the composition of the demand for products and services of a commercial nature through the creation, promotion, exchange and physical distribution of such merchandise or services". Marketing is the set of activities aimed at achieving, with benefit, consumer satisfaction through a product or service ». "Marketing is having the right product, at the right time, adapted to demand, at the right time and at the fairest price."
Marketing encourages exchanges. For this to happen, there must be 4 conditions:
- Participation of a minimum of 2 people is required. Each party must put something of value that the other party wants to own. Each party must be willing to give up their thing of value. The parties must be able to communicate with each other.
From the above definitions, it follows that marketing focuses on the wants and needs of the consumer. Do what the consumer wants instead of doing what we want as a company.
However, MKT is much more than a set of techniques. It is a philosophy or way of working that must permeate all the activities of the company.
If the Marketing department finds unsatisfied desires, develops the product that satisfies these desires, and communicates it through appropriate advertising and at an optimal price, obviously, it will be much easier to sell the product.
"Marketing is not the art of selling what is offered, but of knowing what is to be sold"
2. BUSINESS APPROACHES
Most companies have a sales-oriented vision. That is, they make the product they want and then they must force the purchase.
This approach is called a Product or Production Oriented Enterprise (EOP).
This orientation practices more aggressive policies towards consumers by "forcing them" to a certain extent, to buy products or services that they have not requested.
New approaches are geared towards Customer or Consumer Oriented Enterprises (EOC). This vision is based on:
- Find wishes and don't stop until they are satisfied Do what will be sold instead of trying to sell what you do Love the customer and not the product The customer is the owner Convert our customers' money into value, quality and satisfaction The customer is the center of our activities and everything we do we do with him in mind.
The sale focuses on the needs of the seller.
Marketing focuses on the needs of the buyer.
But how should a company that really wants to be focused on the consumer act?
The following is a summary outline:
- Consumer needs Market study to meet them Prior Marketing Plan Decision making Product Preparation Pilot Manufacturing Pilot market testing Test modifications Large-scale production Final Marketing plan Consumer selling Back to top (consumer needs)
According to this scheme, we start from the basis that the consumer has a series of needs (Physiological, security, protection, social, belonging, esteem, self-esteem, recognition, status, self-realization, etc.). To know what needs are not covered, we must carry out a market study that allows us to identify them.
Once identified, we prepare a "draft" of the Marketing Plan that will contain information on what product, at what price, how to distribute it and on which the advertising campaign is based.
With this draft we can make decisions about whether or not we can manufacture or market it.
We started by preparing the necessary materials and resources in terms of personnel, machinery, etc… and we produced some first sample units.
The pilot market test may consist of a product acceptance test in different establishments.
From the test we will make the changes that the market dictates (packaging, sizes, colors, flavors…).
Once these modifications have been carried out, large-scale production begins and the final marketing plan (Products, Prices, Distribution and Advertising) begins in order to start selling to the consumer.
But here it does not end. It is a continuous process since at all times we must assess whether the product continues to meet consumer needs and determine at all times what changes we must make.
3. MARKETING ACTIVITIES
To have a more precise idea about what are the possible activities or tasks that are usually carried out in a marketing department, we offer below a list of activities:
- Marketing information
- Prepare and carry out marketing experiments Observe and analyze consumer behavior Prepare surveys Analyze information Carry out market tests Evaluate the possibilities of a market
- Develop and market test new products Modify or eliminate products Creation of names and trademarks Plan packaging, designs, shapes, colors and designs
- Competitor price analysis Determine pricing strategies Set prices Discount, margin, commission policies Set sales terms and conditions
- Analyze distribution channels Select channels Establish distribution centers Analyze transport and delivery systems Determine plant locations
- Set promotional objectivesDetermine the types of promotions to be carried outSelect advertising programs and mediaDevelop advertisementsMeasure the effectiveness of campaignsDetermine territories and sales areasCarry out promotionsDevelop and distribute publications and propaganda
- Set goals and objectives Plan marketing activities Evaluate and monitor all marketing activities
4. MARKETING-MIX
It is a combination of variables known as elements of marketing. Also called the "4 p's" by:
- ProductPlacePricePromotion
The most common terminology is:
- Product Policies Price Policies Distribution Policies Promotion or Promotion Policies
There are certain authors such as Lambin or Peeters who think that one can speak of a fifth «P» called Personal Selling when considering the importance and difficulty of achieving the sale of a product.
The Marketing-Mix consists of the perfect mix of the 4 P's in such a way that they form a coordinated set.
The 4 P's are also known as marketing techniques.
5. FACTORS THAT INFLUENCE MARKETING
What does a certain strategy work on?
It is said that for a marketing strategy to have a positive result, the following variables must coincide:
- VMCO (Short-Term Manageable Variables) VNMCP (Short-Term Non-Manageable Variables)
VMCPs are all those on which the company can exercise direct action. In general they are usually the 4 P's, since we can control our products, distribution prices and advertising policies.
However, there are other variables that we can hardly control in the short term (VNMCP) and these are more related to the environment in which the company operates. Some of these variables would be.
- Political Factors Legal Factors Cultural Factors Economic Factors Demographic Factors Natural Resources Socio-Economic Structure
In this way, we have that in order to obtain a positive result, in addition to the variables that we can control, the rest of the variables must be favorable.
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