In modern conditions of great competition, one of the important working tools is marketing. It has a direct impact on the client’s decision to purchase a product. What is marketing? What are its main tasks? What kind of marketing research can be used in business? So many questions, but so few understandable answers. So let's get started.
Marketing concept
Marketing has traditionally been understood as a system of market research aimed at studying the needs of customers and how to satisfy them using various tools.
The term “marketing” appeared only in the last century, along with the development of entrepreneurship and increased competition. Then the business owners had to introduce new chips so as not to lose customers. The word "marketing" itself comes from the English market and means the market and actions on it. By actions we mean the study of customers, including their segmentation, determining the target audience, their needs, creating a product, its promotion, and so on. In general, marketing traditionally refers to actions aimed at the market and the buyer. This all requires, on the one hand, great knowledge, and on the other hand, some manage to intuitively translate marketing into their firms. But still, before introducing such an extensive tool, you need to at least study it a little.
The first thing to remember in understanding marketing is not advertising. And not even marketing. Marketing is understood as a system that requires extensive knowledge related to the market, product, and promotion. Under the tip of the iceberg are the gigantic efforts of marketers to study customer needs. Whatever goods are promoted, it will not work if people do not need it. When inventing a new product, you cannot imitate existing ones. The largest companies: Amazon, Microsoft, Apple - created their own. Now there are already many companies trying to repeat their success. But they are the best in their niches, and in the near future they will not be surpassed by anyone.
So, marketing refers to market research, product development, pricing, communication with customers, delivery.
Need for marketing
Need is a lack of anything: food, clothing, entertainment, recreation, sports, travel, development and more.
Needs
Need differs from need in that it depends on the preferences of the person. For example, the need for sugar, mango, sausage, potatoes. Depends on the culture of a particular region.
The need for marketing is understood as a test of the origin and culture of the client, and even has a connection with stereotypes: in the USA - the need for french fries and hamburgers, in France - snails and wine, Germany - in beer and sausage.
If they have no influence on the needs of the manufacturer, then on the needs - how else! Here advertising comes to the rescue, causing an “appetite” to buy this product.
Inquiry
Request is a need and an opportunity to buy. Depends on the income level of the client. The student will not allow himself to buy an expensive watch. But a successful entrepreneur can. This is the request.
Product
These all definitions lead us to the last - the product. In marketing, a product is understood as a response to a customer’s request. People buy those products that have the most advantageous set of properties and most satisfy their needs. Marketers need to determine which product to create so that it fully meets the needs of customers.
People want to get the “perfect product”: at the price, quality, properties.
Of course, you can sink into ancient times and go on to self-sufficiency: to get everything completely independently. But who needs it in the 21st century? In order for both buyers and producers to exchange goods and money, there is a market.
Market
The market is understood as a platform for exchange, where each side benefits. Well, here the active work of marketers is already beginning.
What are the goals of marketing
For the buyer - it is to find the necessary product that meets expectations, at an affordable price and with the most favorable characteristics.
For the manufacturer, this is the satisfaction of the needs of the target audience.
For both sides, this should be beneficial.
Marketing market
Accordingly, the marketing market is understood as a combination of buyers, manufacturers and government representatives who protect the interests of customers and for this research the market.
The marketing market can be divided among these parties:
- Seller's market - where buyers are more interested in the product. For example, monopolies.
- Buyer market - here sellers are looking for customers for themselves. A more familiar format for us.
What questions should a marketer ask himself before starting to develop a product
- What is missing from the market now?
- What sells well?
- Can this be sold not only in the local market?
- Do people need this?
- If so, by what? Customer portrait - target audience.
- What needs does this product soothe?
- What technologies are needed to develop a product?
- How much will the cost and the total price be?
- How to reduce cost without loss of quality?
- How many resources (both human and monetary) are needed to implement the first batch of the product?
- Is it better than competitors?
- What can be implemented to stand out among competitors?
- How to promote a product on social networks?
- Sales forecast for several years ahead.
- Ways to advertise the product.
If the answers to questions about market needs and whether the product will sell well are positive for you, you can start developing the product. The main thing is to know how to stand out among competitors.
Research
Marketing research - what applies to this concept?
When launching a product, you need to conduct a lot of tests and research. Most often, they can be conducted by answering various questions on certain topics. Such studies are conducted both at the launch of the product and after.
- Market. Industry characteristics, client portrait (age, gender, where he works, approximate income, marital status, geographical parameter), competitors (especially pay attention to their participation in the market, and also test how quickly and efficiently they work), politics and others factors affecting the market.
- Sales In which regions will the product sell better? How fast will the sale be? Inventory and distribution plans. Inventory is necessary to calculate the volume of goods and to remove possible accounting inaccuracies. Inventory planning will help to regularly find errors and correct them without harm to the company.
Marketing planning refers to the logistics of goods from the place of production to the point of sale. That is, all the movement of goods, with the help of which firms this will be realized. Distribution planning begins from receipt of the order and right up to receipt of the goods by the customer. Product distribution also includes warehousing of products, and maintaining stocks. Inventories must be carefully monitored, because it often happens that a customer orders something, and having already accepted an order, company employees find that the goods are not in stock. And then you need to either negotiate with the client, or, if possible, look for competitors, so as not to lose customer loyalty.
In general, the delivery of goods must also be carefully planned, monitored and not delayed with shipping. Especially if it concerns large volumes.
Product innovation. How can your product compete with others? What new can you offer after some time to the market?
The following tests are carried out a certain time after the launch of the product.
- Advertising. Here you need to answer the question, which of the methods of promotion were the most effective? It is necessary to calculate which source of advertising and at what price attracted the most customers. Also, how much did each client cost. To calculate this, you need to divide the cost of advertising on this resource by the number of customers who came from this resource. You can use different methods to find out what the client found out about you here. On the Internet, this is easiest to do, but if the advertisement is on TV or immediate, then you can use brief customer surveys.
- Analysis of startup costs and first profit. How much profit do you get from a unit of goods? Correction of the initial sales plan after the launch of the goods. Have all expectations of sales been met the first month after launch? After a few months after launch, you can do a trend analysis.
- Employee motivation. What methods of motivation most affect the work of subordinates? Talk with employees, ask what they would like. And for incentive programs, too, allocate a place in the budget.
You can and should implement your own marketing research, depending on the type of your business. As an example, you can take an Italian restaurant that explores the favorite dishes of customers. You can interview visitors with what they like and what they think needs to be changed.
Innovation
In the 21st century, innovative marketing is especially developing. All this is due to growing competition and the desire of firms to bring something new to the market. In innovative marketing, strategic and tactical marketing are distinguished.
Strategic marketing is traditionally understood as an analysis of the market and the capabilities of the enterprise. Its goal is to improve the work of the enterprise and bring additional profit. Marketers distinguish two types of strategic marketing: regular and reorganization. Regular is the constant maintenance of the competitiveness of the company, and rehabilitation is the same regular, but it is implemented through the reorganization of funds. It differs from the regular one in that regular funds are constantly allocated for marketing, and during rehabilitation, as necessary.
Tactical innovative marketing is understood as preparing the market for the launch of a new product or large volumes of an existing one. New products play an important role in the competitiveness of the company. To implement it, you need to conduct various studies and tests. This is a study of product innovations, market segments, "sounding" of the market, advertising, marketing, inventory formation and the search for a regular clientele. Tactical marketing is directly related to the innovation market, where everyone who wants to buy and sell innovative products gathers. Do not forget about the risk of rejection of a new product by society.
Innovation research is a complete analysis of similar products in the market, analysis of demand for products of this type, and even forecasting sales in the future.
Market segment research - determination of customer groups, customer portrait, how much money the target audience is ready to give for the product.
The “probe” of the market is testing the product before launching it. For example, tastings, fairs and more.
Advertising is a presentation of the merits of a product, ways of promotion, which has the greatest impact on customers.
Sales organization. The goods can be sold to both consumers and resellers (wholesale) or intermediaries (brokers, agents), a franchise. Depends on how much the product is in demand on the market. If the demand for the goods is huge, it is better to wholesale to large sellers.
Tactical innovative marketing is understood as all the work and tests to promote a new product.
How marketing affects customer lives
The most important thing is the opportunity for buyers to find a good product without effort. This can be done on online platforms, advertising banners, announcements, etc. Now marketing has flooded the entire space, creating huge competition. Advertising, which is one of the main marketing tools, appears everywhere. This is especially noticeable on social networks.
Conclusion
Well, among consumers, traditionally marketing is understood as advertising, but in fact marketing is a complex process. Marketers are working both on the invention of the product, and on the final closure of the transaction with the client. In today's world without marketing knowledge it is impossible to build a successful and profitable company. But to learn it all yourself from scratch will take a lot of time, because marketing is traditionally understood as a whole system of business knowledge, and it may be better to hire a specialist to implement it. When hiring a marketer, do not forget to check his competence: ask about his cases, consult with friends who also hired this type of specialist.
If you are afraid to delegate work with the market, then now begin to study marketing in more detail. This will be an exciting and informative adventure, and also open the way for beginners to the world of their own business.