Marketing

 

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SINESS BUSINESS ESSENTIALS

Marketing

What Is Marketing?

Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. Some marketing is done by affiliates on behalf of a company.

Professionals who work in a corporation's marketing and promotion departments seek to get the attention of key potential audiences through advertising. Promotions are targeted to certain audiences and may involve celebrity endorsements, catchy phrases or slogans, memorable packaging or graphic designs and overall media exposure.

KEY TAKEAWAYS

Marketing refers to all activities a company does to promote and sell products or services to consumers.

Marketing makes use of the "marketing mix," also known as the four Ps—product, price, place, and promotion.

At its core, marketing seeks to take a product or service, identify its ideal customers, and draw the customers' attention to the product or service available.

Understanding Marketing

Marketing as a discipline involves all the actions a company undertakes to draw in customers and maintain relationships with them. Networking with potential or past clients is part of the work too, and may include writing thank you emails, playing golf with prospective clients, returning calls and emails quickly, and meeting with clients for coffee or a meal.

At its most basic level, marketing seeks to match a company's products and services to customers who want access to those products. Matching products to customers ultimately ensures profitability.

Product, price, place, and promotion are the Four Ps of marketing. The Four Ps collectively make up the essential mix a company needs to market a product or service. Neil Borden popularized the idea of the marketing mix and the concept of the Four Ps in the 1950s.

Product

Product refers to an item or items the business plans to offer to customers. The product should seek to fulfill an absence in the market, or fulfill consumer demand for a greater amount of a product already available. Before they can prepare an appropriate campaign, marketers need to understand what product is being sold, how it stands out from its competitors, whether the product can also be paired with a secondary product or product line, and whether there are substitute products in the market.

Price

Price refers to how much the company will sell the product for. When establishing a price, companies must consider the unit cost price, marketing costs, and distribution expenses. Companies must also consider the price of competing products in the marketplace and whether their proposed price point is sufficient to represent a reasonable alternative for consumers.

Place

Place refers to the distribution of the product. Key considerations include whether the company will sell the product through a physical storefront, online, or through both distribution channels. When it's sold in a storefront, what kind of physical product placement does it get? When it's sold online, what kind of digital product placement does it get?

Promotion

Promotion, the fourth P, is the integrated marketing communications campaign. Promotion includes a variety of activities such as advertising, selling, sales promotions, public relations, direct marketing, sponsorship, and guerrilla marketing.

Promotions vary depending on what stage of the product life cycle the product is in. Marketers understand that consumers associate a product’s price and distribution with its quality, and they take this into account when devising the overall marketing strategy.

 Marketing refers to any activities undertaken by a company to promote the buying or selling of a service.

Special Considerations

As of 2017, approximately 62% of consumers buy items online each month. Experts expect online sales in the U.S. to increase from $587 billion in 2019 to over $735 billion by 2023.

Taking these statistics into consideration, online marketing is a critical element of a complete marketing strategy. It is vital for marketers to use online tools such as social media and digital advertising, both on website and mobile device applications, and internet forums. Considering an appropriate distribution channel for products purchased online is also an important step.

What Are the Goals of Marketing?

An important goal of marketing is propelling a company’s growth. This can be seen through attracting and retaining new customers. 

 Companies may apply a number of different marketing strategies to achieve these goals. For instance, matching products with customers' needs could involve personalization, prediction, and essentially knowing the right problem to solve. 

 Another strategy is creating value through the customer experience. This is demonstrated through efforts to elevate customer satisfaction and remove any difficulties with the product or service.

What Are the Four Ps of Marketing?

A commonly used concept in the marketing field, the Four Ps of marketing looks at four key elements of a marketing strategy. The Four Ps consist of product, price, place, and promotion. 

What Can Help You Succeed in Today’s Marketing Landscape?

Here is a range of tips from experts in how to approach marketing in the digital age:

Companies can harness data to create more relevant and personalized customer experiences. In addition, leveraging social media experiences to cultivate a stronger connection with your audience. 

Senior Product Manager at SAP Ratul Shah recommends talking to the customer with empathy and as a human. Meanwhile, companies can also seek to build communities around their brand, says Mandy Webb, Marketing Director of Sitel. 

Related Terms

Marketing Strategy Definition

A marketing strategy is a business's general scheme for developing a customer base for the product or service the business provides. more

Marketing Plan

A marketing plan is an operational document that demonstrates how an organization is planning to use advertising and outreach to target a specific market. more

What Is the Law of 29?

The law of 29 is a strategic marketing concept that holds a potential customer needs to be exposed to a good or service 29 times before they'll buy. more

The 4 Ps of Marketing

The 4 Ps of marketing are the key categories involved in the marketing of a good or service. The 4 Ps refers to product, price, place, and promotion. more

Macromarketing

Macromarketing is the study of the effect that marketing policies and strategies have on the economy and society as a whole. more

Marketing Mix

A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers to a common framework known as the four Ps. more

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