The marketing sales spectrum |
The background to Marketing
Time was that the emphasis of business was very much on the needs of the company and the
product which it made. Products or
services were launched onto the market and it was then the task of the
marketing department and sales force to create the need for them. This was company or product orientation. In many instances it was successful,
especially with new and innovative products.
However, to ensure ongoing growth and development business needed to
adopt a different approach.
Classic product orientation |
The emphasis
changed from being centred on the needs of the company and its products to
being centred on the needs of the consumers who would buy the products or
services. Companies found that they
could only exist and grow if, before producing products, they first established
what the actual needs of consumers were and then produced in line with those
needs. The marketing approach has a primary aim of customer satisfaction. The better that customer needs can be
satisfied, provided that by doing so a profit can be earned, the more
businesses will thrive. This is marketing
or consumer orientation.
The Marketing Mix
This
comprises four key elements which need to be considered in order to satisfy the
customer needs determined by marketing research.
The first of
these is our product or service,
sometimes referred to as our ‘offer’.
Product planning includes not only the physical design of a product but
also decisions about packaging, branding, guarantees, trademarks and the
anticipated market life of the product or service. It is vital that the product or service is
developed, in all aspects, to satisfy identified consumer needs.
The second
element of the marketing mix is place, which refers to logistics or the
distribution channel. This
includes everything from the physical aspect of getting the product to the
customer, to the selection of appropriate channels of distribution. These can include wholesalers, distributors or
retailers if the product is intended for the general public.
The third
element is promotion or marketing communication. This includes advertising, sales promotion,
personal selling, direct mail, telemarketing, exhibitions, public relations
etc. The Internet, Web Site, email, Social media: LinkedIn Twitter,You tube The blending of these different
methods of promotion is known as the marketing communications mix, and
will vary from company to company, industry to industry.
The fourth
element in the marketing mix is price, also referred to as cost. The price of a product or service must be set
at a point where profit is possible, is acceptable and justifiable to the
consumer, and is also competitive with similar products (if any exist).
These four
key elements are collectively referred to as the four ‘P’s of marketing and the
precise marketing mix, the relative importance of each, for one product or
service is likely to differ enormously to another product or service.
If you are
exclusively marketing a service then consideration should be given to two
further ‘P’s. The first is people
- they are core to making your service a success and they must be fully trained
and capable of meeting the customers’ expectations. The second service ‘P’ is processes -
and these must be structured so as to deliver maximum customer value and
satisfaction.
Other factors
The next group of
factors to be taken into account in our marketing model are collectively
referred to as the PESTLE factors. When considering each of our four ‘P’s we
must do so taking into account the following:
Politics
The political
environment can significantly affect our marketing plans and strategy. National and international considerations
must be constantly monitored so that we can adapt our marketing to changes in
legislation, taxation regulations, controls or political climate. The internal politics of customer
organisations may also cause a change in approach, especially with direct
selling.
Economy
Economic factors
will also have a direct effect on the success or failure of any product. In general our economy is cyclical and
follows a pattern of recession, depression, recovery and prosperity. No product can be launched without
considering the overall state of the nation's economy and the effects of, for
example, recession on potential purchasers.
Society
Sociological
factors can have significant impact on product development and the way we
price, distribute and promote. Fashion
influences vary from industry to industry, but green issues are becoming
increasingly significant in every area of business. We also need to take into consideration
demographic information, ethical and other social attitudes.
Technology
We need to
ensure that our marketing is keeping pace with developments in technology to
stay ahead of the competition. New
materials and developments in electronics can make products obsolete overnight.
Legal
Modern Marketing plans should make provision for issues to do with national and international laws which have an impact on the marketing of the company's products and services.
Modern Marketing plans should make provision for issues to do with national and international laws which have an impact on the marketing of the company's products and services.
Environment
Along with issues of social or corporate social responsibility , duty of care, recycling there may be other 'green issues' which have an impact on a company's marketing plan due to codes of practise, best practise or law.
Along with issues of social or corporate social responsibility , duty of care, recycling there may be other 'green issues' which have an impact on a company's marketing plan due to codes of practise, best practise or law.
As well as
the PESTLE factors there are two other key
elements which we must take into consideration when building our marketing
plan:
Time
The TIME
factor is a critical element when any marketing plan is being considered. No product can succeed, in spite of its
relevance and quality, if it is launched too soon or too late. Too soon and there is no market for it - too
late and competitors may be so strongly established that it is impossible to
make real impact in the market.
Competition
Although we should not become obsessed with
competitive suppliers we need to ensure that our information about prices,
products, developments and activity is up to date so that our marketing plan
can counteract competitor activity.
Useful links:
Useful links:
Marketing Essentials Course
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