Marketing is a type of market activity in which the manufacturer uses the system approach and the program-target method of solving business problems, and the market, its requirements and the nature of the reaction is a criterion for the effectiveness of activities.
The concept of “marketing” is based on the term “market”. This concept in the most general form involves market activity.
What is marketing all about?
Marketing activities should ensure:
- Reliable and timely information on the market, structure and dynamics of concrete demand, tastes and preferences of buyers, that is, information about external conditions of the firm’s operation;
- the creation of such a product, a set of goods (assortment) that more fully meets the requirements of the market than the goods of competitors;
- necessary influence on the consumer, on demand, on the market, providing the maximum possible control of the scope of implementation.
The basis of the manufacturers working on the basis of marketing principles, is the motto: to do only what the market requires, the buyer. The starting point underlying marketing is the idea of human needs and requests. Hence the essence of marketing is extremely brief in the following: it is worth doing only what will definitely find sales, and not trying to impose a buyer “uncoordinated” pre-market products.
Principles of marketing and their role
From the essence of marketing follow the basic principles, which include:
- Target on achieving the ultimate practical result of production and sales activities. Effective sales of goods in the market in the designated quantities means, in essence, the capture of its determined share in accordance with the long-term goal set by the enterprise.
- Concentration of research, production and marketing efforts on the key areas of marketing activity.
- The focus of the company on the long-term result of marketing work. This requires special attention to forward-looking research, development on the basis of their results of products of market novelty, providing highly profitable business activities.
Application in the unity and interrelation of the strategy and tactics of active adaptation to the requirements of potential buyers with simultaneous targeted influence on them.
What are the methods used by marketing?
The methods of marketing activity consist in the following:
- analysis of the external (in relation to the enterprise) environment, which includes not only the market, but also political, social, cultural and other conditions. The analysis can identify the factors that contribute to commercial success or hinder it. As a result of the analysis, a data bank is created to assess the environment and its capabilities;
- consumer analysis, both real and potential. This analysis is to investigate the demographic, economic, social, geographic and other characteristics of the people who make purchasing decisions, as well as their needs in the broad sense of the concept and the processes of acquiring them as ours and competing goods;
- studying existing and planning future products, that is, developing concepts for creating new products and / or upgrading old ones, including their assortment and parametric rows, packaging, etc. Obsolete, that do not give calculated profit products are hired from production and the market;
- commodity and sales planning, including the creation, if necessary, of their own sales networks with warehouses and shops and / or agency networks;
- ensuring the formation of demand and sales promotion by a combination of advertising, personal sales, non-profit prestigious events (“public relations”) and various kinds of material incentives aimed at buyers, agents and specific sellers;
- ensuring price policy, consisting in planning of systems and levels of prices for supplied goods, definition of “technology” of the use of prices, credits, discounts, etc.
- satisfaction of technical and social norms of the region in which products are sold, which means the duty to ensure the proper safety of the use of goods and the protection of the environment, compliance with moral and ethical rules, the proper level of consumer value of the goods;
- management of marketing activity (marketing) as a system, i.e. planning, implementation and control of the marketing program and individual responsibilities of each participant of the enterprise, assessment of risks and profits, efficiency of marketing decisions.
All social interactions can be interpreted as market processes. This assumption is based on the fact that the market relations between the participants of commodity-money operations are influenced, along with purely market actors of buyers, sellers, consumers, intermediaries, and such structures as the press, social parties and grouping, such events as holidays, wars, revolutions, counterrevolutions, international meetings at various levels, etc.