What is Marketing?
Definition
The management
process through which goods and services move from concept to the customer. It
includes the coordination of four elements called the 4 P's of marketing:
(1)
identification, selection and development of a product,
(2)
determination of its price,
(3) selection of
a distribution channel to reach the customer's place, and
(4) development
and implementation of a promotional strategy.
For example, new
Apple products are developed to include improved applications and systems, are
set at different prices depending on how much capability the customer desires,
and are sold in places where other Apple products are sold.
A-
Met Needs = good companies sell.
B-
Unmet needs = Great companies sells.
Marketing is All about!
1-
Public Relation
2-
Sales Promotion
3-
Advertising
4-
Pricing
5-
Distribution
6-
Profit
Public Relation:
Public
relations include ongoing activities to ensure the overall company has a strong
public image. Public relations activities include helping the public to
understand the company and its products.
How does it differ from advertising?
Public
relations are the opposite of advertising. In advertising, you pay to have your
message placed in a newspaper, TV or radio spot. In public relations, the
article that features your company is not paid for. The reporter, whether
broadcast or print, writes about or films your company as a result of
information he or she received and researched.
Sales Promotion
Sales
promotion aims to provide a short-term boost to sales. Sales promotion looks
for alternatives that are more cost-effective - costing less to implement but providing
a bigger increase in sales.
There are two basic types of sales
promotions
1.
Trade Promotions: The schemes, discounts, freebies, commissions and incentives
given to the trade (retailers, wholesalers, distributors.) to stock more, push
more and hence sell more of a product come under trade promotion.
2.
Consumer sales promotions: are advertised in public media to attract consumer’s
attention, this schemes are floated mostly in festival times, like EID days New
year’s or Christmas.
Advertising
Advertising
is a means of communication with the users of a product or service. In today's
world, advertising uses every possible media to get its message through.
1.
Television
2.
Print (newspapers, magazines, journals etc)
3.
Radio
4.
Press
5.
Internet (Facebook, Google, Twitter, Instagram,
Linked in ….)
6.
Direct selling
7.
Billboards
8.
Mailers
9.
Sponsorships
10.
Posters
11.
Clothes
12.
Colors
13.
visuals and even people.
Pricing
Pricing is the process whereby a
business sets the price at which it will sell its products and
services.
Pricing is a fundamental aspect of seven Ps of the marketing mix.
A.
Efficient
price is a price that is very close to the maximum that
customers are prepared to pay
B.
Objectives
of Pricing
To
achieve the financial goals of the company (i.e. profitability)
To fit
the realities of the marketplace (will customers buy at that price?)
Distribution
Distribution channels in
marketing are one of the element of “7 Ps of marketing mix” placement
(distribution). It helps the companies to expand its reach and grow its revenue.
Types of Distribution.
1. Business-to-business (B2B) distribution: occurs
between a producer and industrial users of raw materials needed for the
manufacturer of finished products.
2.
Business-to-customer
(B2C) distribution: occurs between the producer and the final user.
B2B and B2C,
Companies can sell through a single distribution channel or through multiple
channels that may include:
– Wholesaler/Distributor
– Direct/Internet
– Direct/Sales Team
– Consultant
– Dealer
– Retail
– Sales Agent/Manufacturer’s Representatives
Profit
A
financial gain, especially the difference between the amount earned and the
amount spent in buying, operating, or producing something.
This
simple statement is often expressed as the profit identity, which states that
Total profits = total revenue (TR) – total
costs (TC)
Post A Comment:
0 comments: