The principles of marketing - these are the fundamental provisions on which the activities for the promotion and marketing of products are based. Knowing them, the head of the enterprise can build work efficiently and receive maximum material return.
Basic concepts
Before you consider the principles of marketing, you should define the basic concepts used in this field. Namely:
- exchange is the process of transferring some values to business entities in exchange for others;
- demand is a solvent need of a buyer for a certain product or service at a given point in time;
- product is a product or service through which it is possible to satisfy the needs of customers;
- a market is an environment in which sellers and buyers interact;
- a market segment is a group of customers characterized by similar parameters, needs and solvency.
Types of marketing
Depending on the field in which the company operates or what goals it pursues, we can talk about these types of marketing:
- Internal - measures aimed at the production and sale of goods (services) within the country.
- Export - work aimed at finding additional markets outside the state.
- Import - measures aimed at finding profitable ways of purchasing raw materials, materials or finished products outside the state.
- Scientific and technical - is associated with the development (or purchase) and application of advanced technologies for the production and marketing of goods (services).
- Investment - the study of the conditions of investment and methods of making a profit from this activity.
- Non-profit - everything related to socially useful activities that do not have the goal of making a profit.
- Geographical - the study of climatic and demographic factors in order to choose a place for the organization of production or sale of products.
Key Goals
Studying the goals and principles of marketing allows you to get an idea of the essence of this field of knowledge. Here are the goals that can be distinguished:
- Maximizing consumption by increasing production and marketing.
- Expanding the range of goods and services in order to provide consumers with the opportunity to choose.
- Maximizing customer satisfaction by continuously improving service quality.
- Product development in order to improve the quality of life of the consumer.
Marketing objectives
In addition to the principles of marketing services, a significant role is played by the goals, as well as the tasks by which they are achieved. Namely:
- A study of the actual needs of customers in those industries in which the organization operates.
- Providing conditions for the development and production of new goods and services.
- Analysis of the current and forecasting the future state of the market in order to make changes to the production process.
- Studying the activities of key competitors.
- Development of assortment policy.
- Making a decision on the pricing policy of the organization.
- The formulation of strategies and tactics of enterprise behavior in the market.
- Ensuring sales of products or sales of services.
- Establishment of communications.
- Providing service (after-sales) service.
Main functions
The basis of marketing is the functions and principles on which the theoretical discipline and practical activities at the enterprise are built. Here are some features worth noting:
- Analytical. Continuous collection and processing of data on the situation within the organization or beyond.
- Productive. Before you start developing and manufacturing a new product, you need to carefully study the market situation.
- Sales. Search for optimal sales channels for products that will be the shortest and, as a result, economical.
- Management and control. At all stages of the implementation of the marketing plan, it is necessary to constantly compare the achieved indicators with the planned ones in order to make timely adjustments.
Key Marketing Principles
In marketing, it is customary to highlight the following basic principles:
- Production and marketing activities of the enterprise should be based on data on the needs of customers.
- It is necessary to convey to the consumer information not about goods and services, but about how to solve problems with their help.
- Compliance with modern technical achievements and aesthetic ideas.
- Presence on the market at the time when the sale of products can bring the greatest material benefit.
- Continuous updating of the product range.
- Correspondence between strategic and tactical plans for the production and marketing of products.
Marketing management
The formulation of marketing management principles is as follows:
- Mutually beneficial. An exchange transaction should be carried out taking into account the interests of all its participants equally. If this is not possible, a compromise is needed.
- Strategic orientation. Research and plans should be aimed at the long term in accordance with the organization’s global strategy. In this case, a detailed plan should be drawn up.
- Individualization of demand. For different groups of customers, it is necessary to develop different types of goods that are aimed at meeting specific needs. To this end, market segmentation and assortment differentiation are carried out.
- Marketing integration. It is necessary to use the maximum number of modern mechanisms for conducting market research.
- Benchmarking. To increase work efficiency, it is necessary to constantly compare key indicators with similar values of industry leaders. It is also worth taking over their managerial experience and marketing mechanisms.
Marketing organization
The organization of the marketing department at each enterprise is carried out differently. Nevertheless, there are general postulates that must be adhered to. The principles of marketing are as follows:
- The marketing department should be an integral part of the organizational structure, and not an isolated service.
- It is necessary to continuously monitor the situation in the internal and external environment in order to make timely adjustments to the marketing program.
- It is necessary to think over several scenarios for the development of the market situation in advance in order to develop several alternative marketing plans.
- When developing a marketing strategy, it is important to apply a variety of approaches and techniques.
Marketing Methods
Based on the principles of marketing, working methods have been developed. Here are the main ones:
- Orientation to a product or service. It is important not only to produce high-quality goods, but also to convey information about it to the consumer and to convince them of the advisability of making a purchase. Thus, such a product and a marketing program should be created that have no analogues in the industry.
- Customer focus. This method is usually used by small organizations. Its meaning is to choose a customer segment for yourself, to understand what it needs, and to concentrate on this production activity.
- Integrated Marketing. In this method, the product is considered as a cause, and demand is a consequence. The manufacturer must constantly market newer and better products in order to fully satisfy the constantly changing and growing needs of customers.
- Open Systems Marketing. An open system exists due to the continuous exchange between the enterprise and the external environment. In this process, each party should have a certain benefit. Moreover, the value of the benefits should be higher than what was laid down in the implementation of the project.
Marketing Planning
Among the principles of marketing an important place is given to planning. It is aimed at solving such basic problems:
- Determining the goals of marketing activities, as well as the principles and criteria for evaluating the implementation of the process.
- The formation of reserves aimed at stabilizing marketing activities in the event of unforeseen situations.
- Determining the list and nature of the data necessary for planning.
- Determining how to organize the planning process.
Marketing plan structure
The essence and principles of marketing are expressed in the formation of the plan. It is worth noting that it is compiled for each business unit separately, and can also be focused on a specific consumer segment. Here are the sections that make up the plan:
- Summary. A generalized section, which summarizes the main provisions of the plan.
- Current market situation. This section describes the situation in the target market. We are talking about the range of products, sellers and buyers, as well as some specific points.
- Dangers and opportunities. This section describes the potential difficulties that may be encountered when entering the market, as well as the possibilities to overcome them.
- Marketing goals. These are the desired results that are planned to be obtained as a result of entering the market.
- Marketing strategy. These are long-term lines of business through which the company will achieve its goals.
- Operational calendar action plan. This section describes in detail the program for product development and market entry, indicating specific periods for the implementation of each step.
- Budget. This section indicates and justifies the amount of funds that are planned to be spent on the implementation of the plan.
- The control. This section describes the procedures by which the implementation of the plan will be monitored, indicating dates and corrective actions.