The market is changing an impeccable pace. The indicating factors in the changing pace are associated with the principles of marketing. If we were to define marketing in the 21st century, it would not be just mere pitching and selling. The horizon and the scope have increased by leaps and bounds. It is not still a “no hold barred” hustle but still the most sophisticated art. The standard and the level of marketing has changed the conventional ways.
If we take an example of Nike, it talks about the abstract values and the SWOOSH which compels you to go for it, it encourages a celebrity endorsement and the successful ones in the sports industry, at the bottom of the funnel it talks about the comfort shoe soles, the lightweight and the product specifications.
What marks the difference between the best-selling enterprise and a fairly okayish one, apart from the backing of resources is the art of generating value proposition for stakeholders by a supernova activity is the in the line of business known as “Marketing”. The principles of marketing
An open secret which has revolutionized the terms in marketing is “Strategic marketing”. Strategic marketing incorporates the planning process, the mission, audit, SWOT analysis and developing the growth strategies. What is crucial is the devising competitive strategies to stay ahead of the competition and be a differentiator in the market. Appeal the consumer by pull marketing. Helps in finding you in the herd. Developing marketing mix would decide the overall success of the campaign.
The other pillars on which the principle of marketing stands are the marketing environment which comprises of the macro and the microenvironment. A microenvironment typically comprises of the company, the suppliers, the customers, competitors and the other stakeholders in the value chain.
The macroenvironment, on the other hand, comprises of the geographical environment, economic environment, natural environment, the political and cultural environment.
The other pillars upon which the principle of marketing lies is conducting the international business. It is altogether a different ball game, where the strategy revolves around deciding which markets to enter, the mode of entry, assess and control of operations. In this case, it is crucial to perceive the risks well in advance and analyse international markets from all the possible ways that could come along the way of business.
Let us now see one by one what are the applications of what seems to be the next level in strategic marketing.
First things first, it helps to understand how an enterprise plans its planning and its principal steps.
The marketing setting deals with the external factors that prove to be a hurdle in serving the customers. This should be resolved with the best of the efforts. The marketing strategy and the decisions revolve around planning demographic and geographical factors.
This resolves the issue of mismatch in the mapping and the gap between the offered and the demand of the market.
The key to manage the business is developing a deeper understanding of one’s own business. This would help further to map it with the external trends and adjust to dynamic seasonalities. Apart from these, there should be distinguished capability to explain the dynamic nature of the political and cultural environment. After developing the understanding of marketing setting the organization must find ways to react to marketing environment.
It is very crucial to understand the most important stakeholder who benefits most from the product which is the consumer. Markets is holistically defined by the subscriber of the product or the service. By understanding the market, businesses must be able to comprehend the consumer markets at both the personal and the household level.
The underlying assumption being that these are the potential market with an ability to purchase goods and avail for the service. There are multiple ways to find this and this would help leverage the business decisions and the strategy revolving around deciding the marketing mix.
To sell a commodity I need not pitch it to the entire geography. This would involve a lot of expense and efforts without any direction. To refine this it would make sense to segregate the potential market, identify market segments, choose a target market and then finally position the product and services to the consumer. This put in other terms means a need for core strategy. Now the process of segmentation can be done by geography, demographic, psychographic. All in all the core strategy is execution at two stages. The first step is choosing the right set of customers followed by positioning of the goods and services in the minds of the consumer.
Differentiation is another jargon for a service or a product offering with all the uniqueness and specifications new to the customer and is not available in the market presently. By Product differentiation, a company can offer unique features, performance, style, design, consistency, durability, reliability or repairability. A service differentiation, on the other hand, can be differentiated by delivery, setup, maintenance, consulting, turnaround time etc.
It is the product of the company who is the first one from the company to reach the consumer. This forms the very base of the importance of the product to be generating a value proposition upon paying price for it which is called cost. To come up with the final product there are many decisions which are taken on the packaging, colour, quantity, the state of the product, the brand, dimension of packaging, the mode of usage and delivery, the lifetime etc.
The product decisions must be inclusive of all the dynamic decisions. This again involves iteration at each stage with the development upon receiving the feedback and the work upon.
This calls for product management and is particularly a separate requirement in every manufacturing company. Having said that the boundary is extended to IT services, consulting and other industry as well. Primarily there are two types of extension namely horizontal and vertical. When there are add-ons or changes made on the part wherein the product need not be altered completely, it is a horizontal integration these, for instance, can be in the form of colour, flavour. When changes involve a revamp of the product itself such as changing the quality, the product itself would sum up for the vertical integration.
Another important factor which is a price. For a consumption goods, the price is decided based on multiple factors such as internal and external factors which affect the pricing decisions. Pricing based on internal factors is influenced by company’s marketing objectives, the factors like product, place, promotions, costs and the organisation itself.
The approaches to pricing decisions are cost-based pricing, value-based pricing which is in accordance to the perceived or estimated value of a product or service to the consumer, indifferent to the cost of the product or prices in the past. Competition based pricing is the neck to neck price set by the competitors selling price.
The market, in this case, is usually saturated for instance the telephone operators offering packages for mobile at almost the same price unless there is some giant like Reliance JIO entering the market and breaking the trends.
The modern approach involves market skimming price. This involves setting a high price initially to be born by the consumer and as the needs of the customer segment is met to serve all the market, the company reduces the price of the product and target a comparatively price sensitive customer. Also sometimes with a motive to enter the market the company sets a price which is termed as market penetration price. This is usually an offer made at a lower price than the existing competitors.
The next pointer to effectively carry out the principle of management is taking decisions about the place or the channel of marketing. Ideally, a firm cannot work in isolation to carry out the business. This brings into the picture the 3rd party vendors and the stakeholders in the value chain. These are no doubt the facilitators in carrying out the business. The success of the business is dependent on all the factors attributes to every stakeholder in the pipeline.
A product is ready for sale, and you believe utility derived out of the product would certainly generate the value proportion for the customer. This is a cumulative effort of both the producing shouting and creating a place on the shelf of the customer and the promotions delivering a value of the product or service to the consumer. There involves a lot of efforts to effectively place a strategy to communicate the value to the consumer.
Note that there are multiple ways of communicating with the consumer. An optimum mix is a key and the strategy to the effective promotion. The message should be a loud, clear, consistent and appealing message regarding value. The mass communication tools are advertising, public relations, sales and promotion. The marketing can be direct or indirect depending upon the definition of the product and the utility derived from it as well as the segmentation.