All Marketing plan is based on a need or problem of some type of target audience, developing a good marketing plan will depend on several instrumental functions, which will serve in the creation, positioning and consolidation of a product or service
There are five basic instrumental functions in Marketing:
- The search for needs or market niches. The production and price policy. The distribution and delivery policy. The forms of communication and advertising elements. The promotional action.
1. The search for needs or market niches
Based on the needs of people, whether real or created, there will be some types of demand towards satisfying those needs, which logically will imply that someone spends money to buy something and an opportunity for action for companies that will see the possibility of offering a new product or service to a new market.
When some needs are found, new products can be launched, the development of such products will then depend on a needs study, a market study and an investigation of the needs of the potential client.
Attack. Once this is done, a product will be launched onto the market that attacks the market niche or the opportunity that the company finds under its first instrumental function; searching for a possible buyer.
2. The production and price policy:
All products handle different types of prices, qualities and specifications, for example there are perfumed soaps, others that claim to care for the skin, others cheap, others more expensive, attacking the different purchasing capacities of people. You can get exclusive products, others in common use etc. The production and price policy will then define the specific characteristics of each product and its respective price, most likely taking into account factors such as competition, product differentiation, the prices of the same competition and market research itself.
It is necessary to take into account that in the long term, the determination of the final price will depend on the competitive experience of the company. For example, if a very expensive product is put on the market, this will be seen in sales, therefore companies will have to react in their pricing and production policies, improving qualities to be more in line with prices or simply reducing them.
3. The distribution policy:
They must be understood as the logistical objectives of the company; Where will I sell my product? Who will distribute it? Who will sell it? What will be the profile of my seller? How will I try to get my product to my potential user? Distribution policy becomes a key factor in the firms' marketing plan. Will I use a wholesaler, a retailer, a retailer ?, What types of incentives will I give to those who distribute my product, what will be their margin etc. As can be seen, a successful distribution policy will depend on a high level of factors, which the consumer does not notice, but which will play a fundamental role in its attraction.
4. The forms of communication and advertising elements:
The more differentiated, useful or attractive our product is, the more important it will be to show a potential buyer the virtues of the product or service. It is necessary to take into account who will be my possible buyers to look at the ways of communication of the company with its client and what will be the advertising means that I will think to use. A product with a potential market of millions of people, will most likely be advertised under the mass media, a more select product will probably use different advertising channels; direct advertising, one on one, personal communication, etc.
Advertising. Our advertising must always be clear and concise and must show in an agile way the advantages of our product. As always, the advertising possibilities are immense.
5. The promotional action:
This last instrumental function refers to the type of promotions that I will make to the product. Sometimes they offer us a higher quality or quantity of product for the same price, pay one take two etc. There are promotions focused on distributors, consumers and even among the firms' workers themselves. Promotional actions can become very important differentiating elements that can change people's consumption decisions. A promotion that attracts a new customer can make you a permanent user of the firm.
In short, although the instrumental functions seem almost elementary elements, the best marketing strategies simply make proper use of the variables previously exposed.
