Introduction to Marketing: Strategies, Mix, and Research
Marketing
Introduction
Marketing is a discipline developed throughout the 20th century as companies shifted from a production-oriented approach to a consumer-oriented one. It involves conceiving and executing the terms of trade to satisfy all parties involved, including society. This is achieved through the development, valuation, distribution, and promotion of goods, services, or ideas.
E-marketing refers to a company or entity applying marketing principles. It involves creating and implementing a marketing plan, which includes analyzing the situation, designing strategies to achieve objectives, and monitoring results.
The Market
A market can be defined as a place where exchange relationships occur. From a marketing perspective, it’s a group of individuals or organizations that:
- Need a product or service
- Want or may want to buy
- Are able to buy
Market Classification
1. Expansion Possibilities
- Current Market: Consumers of a specific product today.
- Potential Market: Current and potential consumers reachable with appropriate marketing.
- Trend Market: The expected future market.
2. Buyer Type
- Consumer Markets (Private): Individuals buying for personal or family consumption. They can be further classified by demographics like age, gender, social status, purchase volume, and loyalty.
- Industrial Markets (Organizations): Businesses whose demand derives from consumer markets. They acquire goods and services for their production processes.
- Public Bodies: Like companies, their demand is derived, but their activities don’t have an economic purpose.
- Other Institutions: Professional, cultural, and charitable associations.
3. Number of Competitors
- Monopoly: One supplier and many buyers. High entry barriers (e.g., local fixed telephony).
- Oligopoly: Few suppliers and many buyers. Significant entry barriers (e.g., automobile market).
- Monopolistic Competition: Many suppliers and buyers with differentiated products. Few entry barriers (e.g., appliance market).
- Perfect Competition: Numerous buyers and sellers exchanging a homogeneous product (e.g., grain).
4. Product Type
- Manufactured goods (durable or immediate consumption)
- Agricultural or seafood products
- Services
- Raw materials
- Financial assets
5. Supply and Demand Intensity
- Seller’s Market: Demand exceeds supply (high demand, high prices).
- Buyer’s Market: Supply exceeds demand (strong competition, low prices).
Commercial Research
Marketing management utilizes various methods and techniques for market analysis and strategy evaluation, which constitute commercial research.
1. Research Design
This involves identifying the research problem, determining the research type, specifying hypotheses, and defining, classifying, and measuring variables. Decisions are made regarding survey methods, target audience, sample size, and participant selection.
2. Information Collection
- Surveys
- Observations (personal or mechanical)
- Experimental data
- Secondary data from external agencies
3. Data Processing and Analysis
To transform raw data into useful information for decision-making:
- Edit, code, and record data
- Tabulate results
- Apply statistical analysis techniques
4. Interpretation and Presentation of Findings
This stage focuses on disseminating research results effectively:
- Prepare a comprehensive report (prioritize conclusions for time-constrained readers)
- Deliver presentations (communicate findings clearly and engagingly)
Marketing Mix
The marketing mix comprises four basic strategies:
- Product
- Price
- Distribution
- Promotion
Marketing Strategies
I. Undifferentiated Strategy
This strategy ignores market segmentation, targeting everyone with the same approach (product, price, distribution, and promotion). It aims to satisfy diverse needs with a single offer (e.g., Coca-Cola). This strategy offers cost advantages.
II. Differentiated Strategy
This strategy tailors products to the needs of individual target segments, utilizing different marketing instruments for each segment (e.g., vehicles). It can increase total market demand but incurs higher costs due to reduced economies of scale.
III. Concentrated Strategy
When a company identifies multiple market segments but lacks the resources to address them all, it can focus on one or a few segments where it has a competitive advantage (quality, price, distribution) and strive for a larger share of those markets.
Commercial Instruments
Product
A product encompasses the tangible (essential and formal) and intangible aspects of a good, service, or idea designed to satisfy a need.
Product Life Cycle
Introduction
- Slow sales growth
- High promotional expenditure (profits are often negative) to introduce the product
- Little or no competition
Growth
- Increased product awareness and sales
- Continued promotion
- Growing profits and competition
Maturity
- Intense competition
- Market saturation with peak sales
- Reduced profits and competitor expulsion
Decline
- Sales decline due to the emergence of new products
- Reduced price and profitability
- Consideration of product disposal and replacement
Price
[Content related to pricing strategies would be added here]