Marketing as a science has existed for only about a hundred years, but this does not mean that marketing laws did not exist before. Its individual elements are clearly traced in any trading operation of both the fifteenth century and the first millennium BC. Since the main purpose of trade is to satisfy consumer demand and profit, marketing can be called the theoretical basis of trade, which consists of certain elements, operates and develops according to established laws and principles.
Marketing - from the English. market (i.e., "market") means market activity. However, in the economic complex, the concept of marketing has a broader meaning. Thus, marketing can be defined as a single organization for the production and marketing of goods or services to meet the needs and requirements of consumers in order to profit.
From here you can derive the main elements of marketing:
Key elements of marketing
This is the foundation and theoretical basis of marketing. This is a kind of skeleton on which all trading activity rests.
It is the need that underlies marketing. There would be no her, there would not be a task to satisfy her. In this case, the Maslow pyramid is of great interest, proving that the nature of human needs is hierarchical in nature. What does it mean? If you illustrate this with a simple example, something like this will turn out: if your consumer is a resident of Central Africa, suffering from hunger and thirst, then he is unlikely to be interested in your offer to buy the latest iPhone brand.
Based on the need, demand is formed in society. If you give a dry definition, it turns out that demand is a need, supported by the purchasing power of the individual.
Demand is a variable quantity. It is influenced by such factors:
- The purchasing power of citizens.
- The price of the goods.
- The irreplaceability of the goods.
- The presence of similar products on the market.
According to the law of demand, the higher the price, the lower the demand.
And vice versa. According to the law of supply: the higher the price, the higher the supply.
In relation to certain types of goods, primarily essential goods, this law works in reverse order. In marketing, this phenomenon is called the Giffen paradox. The essence of this paradox is simple: the higher the price of a product, the greater the demand and, accordingly, vice versa.
As the famous English economist John Maynard Keynes once said: "Demand creates supply." From here comes the next element of marketing - product.
In this case, this is a generalized concept, which can be both a tangible thing and a service. Largely due to the activities of the media and other external factors of pressure on the psyche of the consumer, the demand for goods is artificially increased in society, which, in turn, leads to an increase in supply.
The next very important element of marketing, which determines the quality of all completed early operations.
To make an exchange, it is necessary that the following conditions are met:
- At least two parties participate in the exchange.
- Both parties have equivalent values that can be exchanged.
- Both parties have the ability to communicate and transport their goods; otherwise, exchange remains only a theoretical possibility.
- Both parties remain free to make an exchange decision; Forcing a purchase is not considered a win-win operation.
- Both parties must be sure of the feasibility and desirability of dealing with each other. This is a very flexible factor, which depends on external leverage, primarily advertising.
A transaction is the basic unit of measurement in a marketing environment. Here, as in the exchange, a number of conditions must be observed:
- The transaction involves the presence of two or more valuable objects.
- Both parties must verbally or in writing agree to its implementation.
- The transaction time should be agreed.
- The place of transaction must be agreed upon.
- In a legal transaction, its conditions are usually fixed and are protected by law.
Based on all of the above components, a market segment is emerging. In modern conditions, the market may not be a specific place. More often in marketing, under the market understand the totality of existing potential buyers of a product.
Elements of a marketing mix in the service industry
A marketing mix is a set of controlled marketing factors that a firm uses to get a response from the target market.
The main elements of the marketing system are:
- Product (service).
- Distribution methods.
- Methods of stimulation.
This scheme is also suitable for the service sector, but in this case it needs to be expanded and supplemented. In the case of a service, the following factors are also taken into account:
- Workers and customers.
- Service delivery environment.
- The process of its rendering.
Consider this scheme in more detail.
This is a set of actions that are included in the proposed "package" of services, additional bonuses and subsequent guarantees. The ultimate goal of the service is customer satisfaction. The completeness and quality of the service as an element of marketing should fully comply with the statements of the manufacturer, which backs its words with any guarantees.
In this case, the concept of “price” includes a price list, an indication of discounts, promotions, etc. In the service sector, price indicators can vary greatly depending on various factors: season (when it comes to trips), completeness of service (if it comes to massage), etc.
Services are divided into mobile, tied to a specific place or can combine both characteristics. If the service is tied to a certain territory, the marketer should first of all think about choosing the right place for the company to work successfully and be profitable.
This includes advertising, personal sales, sales promotion, etc. The future of the entire organization depends on a successful incentive policy.
This database includes all those people who are somehow involved in the provision and receipt of services. The main objective of management is to organize a quality work environment for staff and to establish contacts with the target market. For employees, the main weight is their professional qualities, skills, ability to communicate with customers and keep in touch with colleagues.
- Service delivery environment.
This includes the general aesthetic appearance of the place, the attractiveness of the internal and external environment, the appearance of employees and material support.
The last element of service marketing is responsible for important indicators such as customer satisfaction, service methodology and procedure, quality control and the sequence of actions that determine the professional approach of the contractor.
From this we draw a logical conclusion: the higher the performance of these elements of the marketing mix, the more successful and cost-effective the enterprise operating in the service sector. Thus, the main goal of marketing is to increase the effectiveness of trade and market relations.