7 Effective Marketing Concepts You Must Know | Key
Marketing Concepts Resourceful
Important Marketing Concepts – Marketing is a process to communicate the value of products and services to customers. It is also the activity associated with buying and selling of a product or service and includes advertising, selling, and delivery to target customers. People working in the marketing department of a company, try to get customer attention through packaging designs, slogans, celebrity endorsement and media exposure.
Marketing concept involves analyzing the needs of customers so that a company can make informed decisions to meet their needs and bat competition. Most firms, today, have adopted marketing concepts though this hasn’t always been the case. Eminent economist Adam Smith, in his epochal book Wealth of Nations (1776), said that needs of the seller can be considered only in the light of the demands of the customer.
Marketing has evolved over the years, largely because of changing businesses. Marketing concepts to have been adapted and re-adapted to suit present-day needs. Digital marketing has made great inroads with e-commerce becoming the norm. But still, there are some products that are not usually sold over the internet, like automobiles and heavy engineering.
How the Marketing concepts evolved?
After the end of World War II, there was an almost deluge of products and services in the market. Customers who had a greater disposable income were able to make choices and buy all that could fulfill their needs. Companies, in such a scenario, were forced to think what their customers wanted, when they wanted, and how to keep them satisfied. This formed the very basis of marketing concepts.
With the arrival of marketing main concepts, the focus of firms shifted from hard selling to identifying customer needs, taking decisions to fulfill the needs and developing long-term customer relationships by catering to their changing demands. Marketing concepts led to the setting up of a separate marketing department in companies. Today, many companies have restructured them as marketing firms where each employee contributes towards customer satisfaction, regardless of whether they are marketing personnel or not.
Marketing latest concepts are fully dependent on market research which helps to identify the segments, size, target market, and needs of the customer. Then, by using the correct marketing mix, marketing teams take decisions that lead to customer satisfaction
We will go through seven of the most important marketing concepts that are a mainstay of most businesses today.
Needs wants and demands
These three are the basic concepts of marketing. Let’s go through them one by one.
A Marketing Concepts and marketing key concepts need is a wish or desire that’s psychological, physiological, esteem, security, and actualization. Food, clothing, and shelter are the three basic physiological needs. The security needs arise when you face life’s insecurities that are both man-made and natural. You will want protection from such losses because everybody prefers a risk-free life. And finally, esteem needs a result from competition and jealousy, neither of which can be ignored. If a person eats ordinary cereals, he/she may soon want to switch over to a branded product. The status point also comes into question, if you drive an ordinary car, and your friend drives an Audi. Like one has silver ornaments, another is thinking of gold; if one is traveling on a bike, the other may want to travel in a car, and so on.
We then have the self-actualization needs that can bring you a unique and unusual status which very few people can enjoy. Not all can become a Steve Jobs or Bill Gates, who are rare achievers. Most people battle for physiological needs, fewer safety needs, lesser esteem, and still lesser self-actualization. so that why we have to know about the Marketing Concepts and marketing key concepts
A want stems from deficiency. In marketing jargon, wants to mean need plus the ability to pay. Needs are more than wants. For instance, you are likely to have an extra pizza for your family, if the second one comes at half the price when you order the first. Wants are chosen from needs. Everybody may say: “I want this, I want that.” Both wants and needs are countless. But their extent needs to be controlled.
But there are differences between needs and wants. Needs are food, clothing, and shelter. But when the needs are converted to wants, the options multiply. Food may include bread, burgers, mutton, bacon, ham and so on. The shelter could mean a bungalow, cottage, farmhouse or a trailer. Clothing would include shirts, trousers, denim, skirts, wrap-around, hot pants and many others.
When a need arises, wants crop up, and then follows the demand. It’ a situation where an individual has the need for a product and the means to pay for it.
While the need is a mere wish, want is a selected need in which a person has genuine interests. Demand, on the other hand, is a clear-cut commitment. An item for need is often a demand for another. So, while a rich man may demand a luxury car, the same will be a mere want for a salaried individual and just a need for a poor person. It exemplifies: “If wishes were horses, beggars would ride.”
These are extended by the company according to the requirements of the customer. The offer stands for a product or service that caters to the need of the customer regarding, quality, quantity, prices, time, regularity and similar factors. The product could be tangible or intangible. While a tangible product is visible and can be detected by our senses, an intangible product is usually a service that’s transferred from the renderer to the receiver at the particular point in time.
The products could be broadly classified as produced or manufactured. For manufactured goods, both human role and technology play major roles. Manufactured products can be consumer durables or non-durables meant for final consumption. Mobile phones, refrigerators, ovens, cupboards are all durables, while body creams, toothpaste, ready to eat foods are all non-durables.
Each company has a marketing offer that comprises a service line or a product line. The offer usually includes some of the items from the company’s product line. But sometimes, the entire basket is highlighted in the marketing campaign. A perfect offer meets customer expectations and extends the maximum benefit at a reasonably low price.
A Marketing Concepts all about Customer value and satisfaction
Value, from the buyer’s perspective, is the product or services’ capacity from which he/she derives a level of satisfaction. If the satisfaction is low, it means that the product or service has low value to the customer. The opposite is also true. Satisfaction is a state of the mind and can’t be measured because it’s unquantifiable. The cost concept is very relevant here. And both consumers and sellers are interested in it.
For instance, people usually grab an item given free or one that’s easily purchasable. The same item won’t find a similar number of takers if its price is hiked.
Here, you can define the cost to the buyer in monetary terms. Marketing is a major issue to be considered because it involves letting go an alternative on part of the buyer.
Exchange, transaction, and relationships
It lies at the core of marketing. The exchange is the other name for marketing. Manufacturers make available all goods needed in the society, attaching due importance to price, quality, time and place. Products and services must be exchanged for money. Or else, there will be a pile-up of inventory affecting the production and distribution mechanism.
For instance, Toyota produces 2,000 cars a day, of which 700 are sold in the US markets and the rest are exported all over the world. If the sales had not matched the production, the daily output would have to be reduced.
If the seller gives free gifts, charity, or donation, it won’t qualify as an exchange. Again, if you take something from your own factory, farm, or garden, it won’t be an exchange. If you stock goods for sale and then give them to your family and friends free of cost, it’s no exchange.
It is the deal which takes place between the buyer and seller. The seller has the goods to part with, and the buyer is ready with the money to pay for it. Today, online and card transactions have largely replaced cash exchanges. For many companies, cash transactions hardly 10% of the total.
Businesses are multiplying today and more people are buying goods on credit. “Enjoy now, pay late” has replaced “cash and carry”. Thus, buying an apartment, car, or house, has become more affordable. Equated monthly installments (EMIs) have arrived as a boon for consumers.
It is the mutual trust that develops between the buyer and seller over a long term. It’s a customer attraction and detention exercise on part of the buyer. Once the customers understand that the seller is honest in serving their needs, they will keep coming back. They may also spread word of mouth publicity about, leading to greater sales.
But an unsatisfied customer, to a seller, is like a rotten mango that rots all others in the basket. That’s the reason why relationship marketing is a specialized field these days where managers try to win over and maintain customer loyalty.
A market may not necessarily be a place. It’s simply the coming together of buyers and sellers where the former gets detailed information of what about what the seller has to offer and what buyers want to buy. It’s a mechanism which enables price fixation for the mutual benefit of both sides. The physical presence of people and goods may not be required.
A Marketing Concepts and marketing key concepts are the starting point because marketing follows it i.e. goods flow from the seller to the buyer, and money flows in the opposite direction to reach the seller for completing the exchange.
Marketer and prospects
A Marketing Concepts and marketing key concepts is an institution or a person engaged in making the products and services available to the customers. He/she may have his/her own portfolio of goods that are offered to interested buyers. Marketers create only the place, awareness utility, and time ownership. They do not produce but buys from manufacturers and sells them to customers either for further processing or final consumption.
The counterpart of Marketing Concepts and markets is prospects. Only sellers cannot constitute a market. Presence of prospects leads to the presence of marketers. For a seller, it’s of no use if there’s none to buy the products and services.
Societal marketing and social responsibility
This concept calls Marketing Concepts to weave in ethical and social considerations into their marketing practice. They have to balance conflicting criteria of consumer wants, company profits, public relations, and customer satisfaction. Companies have also incorporated corporate social responsibilities in their management practices.
Cause-related marketing concepts have gained ground over the past few decades. Veteran management authors Hamish Pringle and Marjorie Thompson have defined this as “an act by which a company with a product for marketing builds a relationship or partnership with a cause or causes for mutual benefit.”
The concept is based on the belief that buyers usually look for signs like ethical practices and good corporate governance before taking any decision on brand preferences. It goes on to build a long-lasting relationship with the brand that outlasts rational and emotional benefits. The concept of marketing extends beyond the customer or the company. Marketers have to promote social welfare so as to prosper in the long run.
Latest Marketing concepts and marketing key concepts have modified to keep pace with time. As business went on evolving, the marketing concepts altered too. With companies shifting to e-commerce and online businesses, it has become all the more important to retain customers.
Here, buyers and sellers do not come face to face. Retaining customers is all the more important under such circumstances. It’s more difficult also because the seller can’t read the customer’s mind. Innovative customer retaining methods have come into effect. These include free replacement of products, round the clock customer support, home trials, and many others. But the core concepts remain largely the same. They are still based on the four Ps of marketing i.e. product, place, price, and promotion. The last named is the most important marketing pillar today.
Here are some articles that will help you to get more detail about the Marketing Concepts so just go through the link.