What is Marketing? Definition, Concept, Importance & Strategies

Table of Contents1 What is Marketing?1.1 Purpose Of Marketing1.2 Importance Of Marketing2 The Five Marketing Concepts2.1 1. The Production Concept2.2 2. The Product Concept2.3 3. The Selling Concept2.4 4. The Marketing Concept 2.5 5. The Societal Concept3 what is affiliate marketing?4 What is Marketing Strategy?4.1 5. Types Of Marketing Plans […]

Table of Contents

Disclaimer: We sometimes use affiliate links in our content, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase. For more information, visit our Disclaimer Page

Are you curious about what marketing is? Wonder no more! In this post, we’ll define marketing, discuss its concept and importance, and explore some strategies you can use to get started. By the time you’re finished reading, you’ll have a clear understanding of what marketing is and how it can benefit your business. So let’s get started!

What is Marketing?

Marketing is defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing is one of the most important aspects of any business. It is the process of creating value for a company by creating and distributing products or services. Marketing aims to achieve a variety of business objectives.

At its core, marketing is about understanding customer needs and desires and then creating something (a product, service, ad campaign, etc.) that profitably meets those needs. It can be a very complex process, but it is essential for any business that wants to succeed.

Purpose Of Marketing

The purpose of marketing is to create value for a company by increasing demand for its products or services. In addition, marketing can create awareness about a product or service, generate leads, increase sales, and build brand loyalty.

The goal of marketing is to create a win-win situation for the company and the customers. When marketing is done correctly, it can help its bottom line while also meeting customers’ needs.

Importance Of Marketing

Marketing is essential because it is how a company can create awareness of its products and services and generate demand for them. It is also responsible for building customer loyalty and creating a positive image.

A company must have a good marketing strategy in place to be successful. This includes developing effective marketing messages, choosing the right media outlets to promote your products, and targeting the right customers.

Marketing is essential for any business, large or small. Without it, a company will have difficulty succeeding in today’s competitive marketplace.

The Five Marketing Concepts

1. The Production Concept

The Production Concept is based on the idea that more significant profit can be earned if good products are available at a lower price.

2. The Product Concept

This concept states that products are created for specific consumer groups, depending on their needs. The idea is that particular consumers will appreciate the product more than others. This marketing approach is essential in large-scale production ventures.

3. The Selling Concept

This concept focuses on selling or distributing a product or service to profit. The Selling Concept appeals to customers, persuades them to purchase a product, and repeats the process.

4. The Marketing Concept

The marketing concept is a strategic approach to creating value for a company by developing and delivering goods and services that satisfy customer needs. It’s based on the idea that a business should focus on understanding and meeting the needs of its customers, rather than just promoting its own products.

5. The Societal Concept

This is a way of thinking about marketing that focuses on the needs and wants of society as a whole. This concept states that consumer satisfaction and value should be more important than profits. In this approach, products are marketed to meet specific societal needs.

Related: Societal Marketing Concept

what is affiliate marketing?

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s marketing efforts. The affiliate generates traffic to the advertiser’s website by creating banner ads, text links, pop-ups that link to the advertiser’s website, or writing reviews of products or services on their websites or blog posts.

When a visitor clicks on one of the affiliate’s links and makes a purchase on the advertiser’s website, the affiliate is then credited with a sale and paid a commission. This commission can be a few percent to 50% or more of the sale price.

What is Marketing Strategy?

A marketing strategy is a plan of action that outlines how a company will achieve its marketing objectives. The marketing strategy will usually consist of a mix of marketing tools and tactics, which may be adjusted over time to reflect the changing needs of the market and the company. A marketing plan may, for example, be based on the process of demand forecasting to determine what products or services are needed in the marketplace.

The marketing plan and other elements such as the company’s financial requirements and manufacturing capabilities are considered when creating an overall strategic business plan that considers the company’s vision and goals.

Multiple marketing strategies can be considered. Let’s look at the most important ones.

Related: How to Create a Winning Marketing Strategy

5. Types Of Marketing Plans And Strategies

  1. Marketing mix strategy
  2. Market Penetration Strategy.
  3. Market Development Strategy.
  4. Product Development Strategy.
  5. Diversification Strategy.

1. Marketing mix strategy

A marketing mix strategy is a plan of action that a company uses to promote its products or services. The marketing mix typically consists of four main elements: product, price, place, and promotion. A company will use a variety of marketing tactics to execute its marketing mix strategy, including advertising, public relations, and personal selling.

Product is the first element of the marketing mix and refers to the good or service that a company offers to its customers. A company must carefully select the right product to offer to appeal to its target market. It is crucial to consider the target market’s needs and wants and then design a product that meets those needs.

Price is the second element of the marketing mix and refers to how much the company charges for its product or service. The price of a product or service must be reasonable compared to other similar products offered by competitors if the company wants to attract customers.

The place is the third element of the marketing mix and refers to how a company has its product delivered to its target market. The place element includes two sub-elements: distribution channels and physical indications. Distribution channels are the paths through which a product or service flows to the market, while physical evidence is anything that impacts where people go. For example, putting up signs that point to your business location can be considered physical evidence of place.

Promotion is the fourth element of the marketing mix and refers to how a company communicates its product or service benefits to customers. Promotional activities can include advertisements, promotional campaigns, public relations efforts, and personal selling.

2. Market Penetration Strategy

The market penetration strategy is focused on increasing the sales of the company’s current products and services in its existing markets. This can be done by increasing the market share of the products or services, by increasing the sales volume, or by both measures. The main aim of this strategy is to increase market share as quickly as possible, at the lowest possible cost.

There are several ways to achieve this, including:

  • First, lowering prices to increase demand.
  • Second, investing in marketing and advertising to create awareness of the product or service.
  • Third, offering promotions and discounts to customers.
  • Finally, introducing new products or services that complement those already provided.

3. Market Development Strategy

The market development strategy aims to increase the size of an existing market or develop a new market. The main objective here is to open new markets and increase the pool of possible customers by creating demand for products and services that previously did not exist or expanding the market share of existing products and services. This strategy will often focus on complementary product development, such as introducing accessories or new products, or on the development of new markets, for example, through diversification.

4. Product Development Strategy

The product development strategy focuses on the successful creation and launch of a new product to help expand market share. The main aim here is to create better products than those offered by competitors at higher quality and lower cost, successfully launch them and achieve a high market share as quickly as possible.

The product strategy includes developing new products, but it can also improve or expand existing lines.

5. Diversification Strategy

A company’s diversification strategy is about making strategic changes to increase profits by exploiting more than one product or market. For example, a diversification strategy might include the development of new products which are radically different from those currently offered by the company or entering into entirely new markets that complement existing lines.

It is important to note that business diversification should not be seen as an alternative for growth in sales and profits but rather as generating new income streams and helping reduce risk.

6. common Marketing theories

Marketing theory means a body of knowledge used to describe, predict and explain marketing phenomena. It attempts to aggregate and generalize the findings from the study.

Here are six common marketing theories you should know about:

– The Seven Ps of Marketing Mix

The Seven Ps of Marketing Mix is a marketing theory that describes the different aspects of a company’s marketing plan. It consists of the following seven elements: product, price, place, promotion, process, people, and physical environment. Each part plays an essential role in the success of a marketing campaign.

  • Product: The product is at the core of the marketing mix and is what the company offers to its customers. It must be designed with the customer in mind and meet their needs and wants.
  • Price: The product’s price must be set correctly to maximize profits while still making it affordable for customers. It is important to find the right balance between price and demand.
  • Place: The product is sold, known as the distribution channel. There are four main types of channels: retailers, wholesalers, agents, and distributors.
  • Promotion: Promotional activities raise awareness of a company’s products or services with their target market. This will be done through public relations, direct selling, or online advertising campaigns.
  • Marketing Process: This element of the marketing mix focuses on making the product or service convenient for customers. It includes factors such as outsourcing, partnerships, and economies of scale.
  • People: A company’s employees are their most important resource. Without them, it would be impossible to run a successful business. Therefore, it is essential to ensure they are motivated, trained, and efficient.
  • Physical Environment: The physical environment is usually referred to as the retail store environment. It includes lighting, layout, signage, cleanliness, temperature control, storage facilities, etc.

Related: 5 Ps of Marketing

– SWOT Analysis

SWOT Analysis is a strategic planning tool that helps businesses assess their strengths, weaknesses, opportunities, and threats. By analyzing these factors, companies can develop a plan to capitalize on their strengths and opportunities while mitigating the effects of their weaknesses and threats.

Related: Nike SWOT Analysis

– Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. There are various elements to the hierarchy such as physiological (basic requirements for survival such as food and shelter), safety (protection from elements or crime), love/belonging (friendships, romantic relationships), self-esteem (self-confidence and personal worth), and self-actualization (personal growth, realizing personal potential).

– Market Segmentation theory

Marketers cannot sell to just anyone. They must identify the different personality types, concerns, and geographical areas they wish to target.

Market segmentation theory is when a marketer divides a market into distinct subsets of consumers. This is done based on specific variables such as age, race, gender, occupation, geographical areas, and income level.

Market segmentation theory is primarily used to determine how marketing resources are distributed across different groups or segments of customers within a given market.

Consumer Decision-Making Process

The consumer decision-making process is the steps or stages that a consumer goes through when making a purchase. Various factors can influence this process, such as the customer’s budget, needs, and wants.

There are five main stages of the consumer decision-making process: awareness, interest, evaluation, purchase, and post-purchase. Let’s take a closer look at each one:

  1. Awareness: The first step is awareness when the customer becomes aware of a problem or need. This can be sparked by advertising or word-of-mouth from friends and family.
  2. Interest: Once the customer is aware of the need, they will show interest. They begin searching for the product, which can be done online or in-store.
  3. Evaluation: Now that the customer is interested in the product, they will begin to evaluate possible brands and products that could meet their need/s. They compare different products, brands, prices, and attributes before deciding what to purchase.
  4. Purchase: The customer has evaluated several options and has decided on a product to purchase. They will then buy the product (most likely online or in-store).
  5. Post-Purchase: This is when the customer consumes their purchase and evaluates whether or not it was worth the money they spent. If they are satisfied, then the customer goes through the process again. However, if they are dissatisfied, the customer will experience negative emotions, leading to a return of their purchase or complete avoidance of that product or brand in future purchases.

Porter’s Five Forces

Porter’s Five Forces is another tool for assessing competition within an industry. It helps determine how much rivalry exists between current competitors in the industry and what potential new entrants may do. The implications of Porter’s Five Forces analysis are now briefly considered below:

  1. Threat of new entrants – this threat narrows if high capital requirements or government licenses are required.
  2. Threat of substitute products – an example would be petrol car manufacturers at threat from electric cars or the fast-food companies at threat from home-delivered pizza.
  3. Bargaining power of suppliers – their bargaining power is high when there are many buyers in the industry & few sellers.
  4. Bargaining power of customers – their bargaining power is high when there are few suppliers in the industry & many customers.
  5. Competitive rivalry – is intense if current competitors heavily invest to beat each other, and barriers to entry (e.g., patents) exist for new competitors.

If the combined effect of Porter’s Five Forces is high, it suggests the company may wish to consider strategies for dealing with these forces. For example, understanding how competitive rivalry may impact product development and marketing strategy within the industry.

Types Of Marketing

Traditional Marketing

Traditional marketing is the promotion of a brand using offline channels that were in existence before the internet became popular.

Because knowledge was harder to find and obtain, most traditional marketing relied on outbound strategies such as print advertisements, television advertising, and big boards.

Outbound Marketing

Outbound marketing refers to intrusive promotion, such as cold calling, mass emailing to purchased lists, and hard copies advertisements.

Because this type of promotion reaches out to customers regardless of their interest in your goods or services, it is known as “outbound.”

Inbound Marketing

On the other hand, inbound marketing is concerned with attracting consumers rather than interrupting them. Digital marketing is the most popular inbound marketing method because customers can research online through their buyer’s journey.

Inbound marketing is based on three principles: Attract, engage, and delight. Your first objective is to produce helpful material that speaks to your target audience and entices them to visit your company.

The third step is to interact with them using conversational technologies such as email marketing, chatbots, and value. Finally, you delight them by acting as an empathetic advisor and specialist.

Digital Marketing

Digital marketing is the opposite of traditional marketing; it uses technology like mobile phones, the internet, social media sites, etc., to drive sales and revenue. 

Companies use digital marketing to create a presence online. Digital marketing includes social media, search engine optimization (SEO), and pay-per-click ads on Google Adwords or other platforms.

Search Engine Marketing

Search Engine Marketing, or SEM, is gaining traffic via search engines. To achieve this, marketers place ads on their rivals’ websites, known as “PPC ads.” They also use optimization techniques to get high placement in organic search results. A keyword is at the heart of SEM.

Content Marketing

Inbound and digital marketing relies heavily on content marketing since it is one of the most acceptable ways to attract target audiences.

It is an approach to create and distribute valuable, relevant, and consistent content to attract potential customers.

The success of this marketing technique lies in its ability to establish a relationship with the consumers by providing them with helpful information that they are searching for online.

Content marketing is particularly appealing because it enables you to develop high-value activities at low costs.

Social Media Marketing

This form of marketing enables you to reach out to large target audiences at any time and from anywhere across the globe. This approach lets you use different social media platforms such as Facebook, Twitter, LinkedIn, Instagram, etc., to promote your brand or products.

Social media marketing helps you interact and build a relationship with your target audience and present your business as an accessible brand. It is the best way to spread awareness about any product or service, boosting sales in the long run.

– Email Marketing

Email marketing can be used as an effective tool for online promotion. It is a straightforward method of working like traditional mail to reach out to people.

It allows you to share information about your products or services with potential customers who have subscribed for receiving promotional emails from you.

With its high chances of delivering content directly into the inbox, email marketing assists businesses in building a relationship with their audiences.

– Event Marketing

Event marketing utilizes direct marketing strategies to promote your business by holding live events, fairs, expos, and exhibitions.

This form of promotion is known as one of the most effective ways to attract consumers. It enables marketers to build relationships with their target audiences by hosting events, seminars, conferences, trade fairs, etc.

– Internet Marketing

Internet Marketing is a subset of digital marketing used to drive traffic to your website or other web assets.

Marketers use different techniques, including SEO, PPC, email marketing, and social media marketing.

Related: 7 Functions of Marketing

Benefits of Marketing to a Business

There are many benefits that a business can enjoy when it comes to marketing. Some of the most notable benefits include:

Increased visibility and awareness

Marketing helps get your business in front of more people, leading to increased awareness and visibility. With more people knowing about your business, you’re likely to see an increase in sales and revenue.

Improved customer base

Marketing also helps you to build a better customer base. By targeting the right audience and using the right strategies, you can connect with more customers who are likely to be interested in what you have to offer. This can result in more sales and a more extensive customer base.

Greater brand recognition

Marketing also helps to build brand awareness. With more people aware of your company’s name and products, you’re likely to see an increase in revenue and long-term growth for your business.

Improved customer loyalty

When people are familiar with your brand, they become more loyal. This leads to happier customers who are more likely to keep coming back and purchasing from you again.

Greater sales volume

Marketing is a great way to increase your sales volume without relying on discounts or sales promotions, lowering your profit margin. Some of the ways that you can increase your sales volume include:

  1. Developing solid relationships with customers.
  2. Offering a great customer experience.
  3. Maintaining positive relationships with suppliers.
  4. Serving as a reliable resource for your customers.

Related: 5 Sales Strategies to Help You Grow

Access to new markets

When people are aware of your brand, they’re also more likely to become aware of the markets that you serve. This means that you open up access to a more significant number of potential customers, resulting in increased sales.

Improved employee morale

When you’re doing well, it usually positively impacts your employees, who are likely to feel more motivated to work harder and do their best for your company. This results in greater productivity and improved business performance.

Greater revenue diversity

A more significant portion of your revenue comes from long-term buyers than short-term purchasers. This is usually a good thing because you’re more likely to have a steady, reliable income coming in each month.

Brand Loyalty & Trust

Customers are likely to trust your company more when they’ve become familiar with it. They’re aware of what you stand for and the type of products or services you offer. This can lead to greater brand loyalty which means fewer refunds, fewer returns, and higher customer satisfaction scores across the board.

Higher profits

Marketing helps to increase your revenue over time, which is beneficial for the growth of your business. It also improves customer satisfaction, leading to increased loyalty and more referrals. Furthermore, it increases the likelihood that you’ll see higher margins on future purchases from existing customers because they’re familiar with your brand.

Related: Marketing Management

10 Basic tips to starting marketing your brand

Hiring an expensive marketing department can be tempting when you’re just getting started. Of course, this is a great way to go when you have the budget for it, but if it’s not in your budget right now or shortly, there are still things that you can do to begin marketing your business. Some of the first steps include:

1. Do Market Research

Before you start marketing, you need to know what your customers want and how they talk about your business. If you don’t understand this information, it can be challenging to connect with them. This means you need to do a little marketing research before launching your marketing campaign. First, you need to know your target audience, what’s being said about your company, and how they talk about it.

2. Build an Email List

Email marketing is highly effective because you can reach many potential customers without spending much money on advertising or other promotion methods. The trick to having success with email marketing is getting people to sign up for your list. You can start this process by creating an offer that gets visitors interested in what you’re doing and encourages them to sign up for further information.

3. Write a Great Blog Post

You should create blog posts that educate your target audience about things they care about and fill gaps in their knowledge, helping them solve problems and meet their goals. It’s also important that your blog provides value by offering helpful information that’s not readily available elsewhere.

4. Promote on Social Media

Ensure that you have a social media presence, with prominent links to your website, email list sign-up form, or blog, where people can connect with you and read your content. If you don’t have a social media account set up, you must get on board as soon as possible because this is where many of your potential customers will be spending their time.

5. Start Doing Public Relations

Start reaching out to journalists and bloggers in your niche and find out if they would be interested in reviewing your product or service, interviewing you for an article, or writing about your company. You can contact journalists and bloggers by emailing them with a press release that tells them about the exciting things your company is doing.

6. Get Active on Forums & Social Sites

Create profiles on LinkedIn, Facebook, and Twitter, like your customers’ pages, or connect with them on LinkedIn. You can do this by reaching out to people in your network, asking current customers for referrals, or signing up for lists of influential people in your industry.

7. Try Local Advertising

Local advertising is a great way to get the word out about what you’re doing, connect with prospective customers, and build your brand without spending much money. You can target people living or working nearby by renting an ad on a billboard, putting up flyers at local businesses, running ads in the newspaper or phone book, buying radio advertisements, or sponsoring community events.

8. Invest in PPC Ads

Pay-per-click advertising is one of the most effective ways to get your name in front of people already searching for information about the kinds of services you offer. One great thing about these ads is that you only pay when someone clicks on your link or ad, which means that it’s easy to track your ROI and figure out which ads and keywords are performing the best.

9. Get Out There and Network

Networking is an integral part of marketing because it’s a way to connect with people who have similar interests, learn about what they’re doing, and find new ways that you can work together or add value to their lives. Networking is an ongoing process that requires regular effort and attention, but when done right, it can help you grow your business into something much more significant than what you can do on your own.

10. Measure and Improve Your Results

It’s essential to track the results of your marketing campaigns so you know which ones are working and which ones aren’t. If you’re paying for ads, it’s easy to keep track of how many people click through them and sign up for your services or opt-in to your email list. You should also be tracking the number of conversions you get from other marketing efforts such as social media, press releases, and referrals. Your conversion rate is the percentage of people who take the desired action after seeing or hearing your marketing campaign. For example, if 100 people see your ad and two people sign up for your service, you have a 2% conversion rate (2 converts / 100 views).

Now that you know the steps to take to market your small business, all that’s left is for you to put this plan into action. Ensure that you constantly measure and improve your results, note which tactics work best, and tweak future campaigns accordingly. Follow these simple steps, and it won’t be long before your small business gets more new customers.

Related: Marketing Goals

Final Thoughts

In this blog post, we’ve discussed the definition of marketing, its purpose, and its importance to a company’s success. We’ve also outlined some strategies for how you can think about applying these concepts in your business practices. Marketing is an essential part of any successful organization. It pays off to research what other companies are doing, learn from them and share your knowledge with others so that we all grow together!

We hope this article has benefited you. Don’t forget to follow more blog posts like this that will be added weekly!

Source Article

Next Post

The Basics Every Business Owner Should Know

Mon Aug 8 , 2022
Table of Contents1 Why is marketing important?1.1 Product1.2 Price1.3 Place1.4 Promotion2 Introduction to the types of marketing2.1 B2B and B2C marketing2.2 Inbound and outbound marketing2.3 Content marketing2.4 Email and social media marketing2.5 Growth marketing3 Three marketing tips from an eight-figure ARR company3.1 Tip 1. Marketing relies on the product more than […]
Exit mobile version