Marketing Essentials: Concepts, Principles, and Strategies

Posted on Feb 16, 2025 in Marketing

What is Marketing?

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Target Marketing

The dual goal of marketing is to attract new customers by promising higher value and to retain existing customers by ensuring satisfaction.

Marketing Concept

  • Identify needs and/or unfulfilled desires that could turn into a business.
  • Develop a supply (commercial mix) according to the customers. Assist in developing satisfaction appropriate to those needs and/or desires.
  • Distribute and promote effectively.

Guidelines for Marketing

  • Guidance on production (production + distribution)
  • Product-oriented (+ distribute + produce technical quality)
  • Guidance to sales (+ distribute + producing sales efforts)
  • Market orientation (Marketing)

Holistic Marketing

  • Internal Marketing: Ensure that all members of the organization adopt and are functional to the guidelines of marketing.
  • Relationship Marketing: Establish a lasting relationship with people or organizations that could directly or indirectly influence the success of the company.
  • Marketing Responsibility: The power of organizations affects not only the organization itself and its customers but also the community. Any organization should be legitimized before society and must sell the idea of its existence.
  • Integrated Marketing: Create, communicate, and deliver value for customers by integrating various activities, policies, plans, and decisions (4 Ps). (Operative Marketing: Marketing Variables, Objective of market share) and Strategy: Market Product Division, Election of market strategy).

Market Classes

  • Consumer Market
  • Industrial Market or company
  • Global Market
  • Nonprofit organizations

Core Principles of Marketing

  • Consumers are looking for the benefits or services that a product can provide, not just the product itself.
  • Different products and technologies can respond to a service base.
  • Every product is a set of attributes that provides the consumer with a set of additional functions besides the basic function.

Strategic Management Process

  1. Define vision and strategic mission
  2. Determine strategic objectives
  3. Create a strategy for achieving the objectives
  4. Implement and execute the strategy
  5. Assess performance, monitor new developments, and initiate corrective actions

Strategic Definitions

  1. Vision: A route map for the future of the organization, the direction it leads, the position it aims to fill, and the capabilities it plans to develop.
  2. Values: Principles of values and ethics that the company will defend in their actions.
  3. Philosophy or Business Model: Philosophy, direction, or business model (cost leadership, differentiation, focus).
  4. Objective: Objectives to be met to achieve compliance with the Strategic Vision, positions to be filled, and skills to be developed.

Strategic Planning

The process to create and maintain strategic coherence between the goals and capabilities of the organization and its changing marketing opportunities.

It involves: Defining strategic vision and mission, establishing goals and objectives, and designing a business portfolio.

Designing the Business Portfolio

Business portfolio: A set of classes and products that define the company.

The company must:

  • Analyze the current portfolio and decide which businesses should receive more, less, or no investment.
  • Develop growth strategies for adding new products or businesses to the portfolio.

Portfolio Analysis

  • Identify key business or Strategic Business Units (SBU)
  • Determine how attractive each SBU is and support for each.

Strategic Business Unit (SBU)

Each company has a separate mission and objectives and which can be planned separately for the company.

Are defined according to three dimensions:

  • Market: The group of customers who will be served.
  • Function: Customer needs to be sought to satisfy.
  • Technology: The form to use to meet those needs.

Methods for Analyzing SBUs

To determine how active your SBUs are and decide how to support each.

  • The growth-share matrix or BCG (Boston Consulting Group)
  • General Electric approach