The most common misconception that exists among the people is that they equate Marketing with Advertisement.But they are not totally incorrect or fully right. Advertisement is a sub set of Marketing.So, the first question That needs to answered is what is marketing ? From my perspective it is a process through which companies create values for the customer and captures value from the consumers. Basically, consumers have needs, companies try to fulfill the needs through their offerings of products or services creating the value for the consumers.In return they capture values from the consumers in terms of profit and consumer equity.Here building a strong relation with customers becomes a priority.
As earlier written marketing is process, This process is based on the planned use of the Elements of the marketing mix.The elements which are used are:
a) Product:The product is the key. From here only the marketing process would start. depending on the consumer wants and demand Product is developed for creating a value for the customer.Here the companies decide which features to included, which will appeal to its target customer, other factors which are taken into consideration are its projected life cycle,Its potential for diversification in terms of product use and product modification.
b)Price:Pricing strategy directly affects the profit margin over all a profit,market share(market penetration or skimming).It also affects the consumer's perceived value of the product. Many consumers judge price as a factor for quality and also for reference pricing.Thus making it very important to select the pricing strategy on the basis of our target customers.
c)Promotion:This is the part which is equated as marketing by general public.Though this element of the marketing mix, we make our target consumers aware about our product.It can be divided into two parts Traditional ways of communication and online marketing.Such as through Sales promotions,television ads,print media(Traditional),Social media campaigning, flash ads, online banners,etc (Online Advertisement).
d)Place:Then comes the point of purchase,where we will sell our product its also depends on our target consumers.It also helps in formation of our distribution strategy. Product could sold through not only specific purchase stores, but also online, door to door etc making it an important part of our strategy.
The following are also called extended elements of marketing mix or service marketing mix.But in the present market product and service has become so intermixed that its better to include them and give them equal importance.
e)People:Now a days people are not only judging the product but also who delivers
them.so it has become very essential to select and train right people the right way in not only delivering the service but also in communication prior to that in talking with channel partners. Deals can made on basis of people also. Gone are the days where we make good product and it will sell on its own. Now you need the right people to sell the product.
f)Process:This is the element through which we decide How the product or service will be delivered.An efficient process helps in increasing the customer satisfaction which in turn create customer loyalty and increasing customers life time value for the organisation.
g)Physical evidence:It has its importance because It helps the company in differentiating with competitors. Eg. A consumer would buy a product from place whose ambiance is better.It also helps the company in charging premium for its product.It also include corporate symbols such as logos etc.Packaging forms an important part of the physical evidence.
For the developing and emerging markets there is also a need of two more elements of the marketing mix.
h)Power :In the Developing and emerging markets,Government plays a big role, So for a company to expand its business there the right kind of incentive is to be provided to the government which means how would it be useful for the government and economy there in general?that can be through infrastructure development, job creation etc?
i)Public relation:Its also related to expansion of the business in the new markets,this part focuses on familiarizing with the local market scenario and the consumer behavior which in turn helps in formulation of the other marketing mix elements.
Through these steps a full marketing process is determined which at at last helps in creating the value for the consumers and capturing the value that is profits an consumer equity from the consumers for the company..
As earlier written marketing is process, This process is based on the planned use of the Elements of the marketing mix.The elements which are used are:
a) Product:The product is the key. From here only the marketing process would start. depending on the consumer wants and demand Product is developed for creating a value for the customer.Here the companies decide which features to included, which will appeal to its target customer, other factors which are taken into consideration are its projected life cycle,Its potential for diversification in terms of product use and product modification.
b)Price:Pricing strategy directly affects the profit margin over all a profit,market share(market penetration or skimming).It also affects the consumer's perceived value of the product. Many consumers judge price as a factor for quality and also for reference pricing.Thus making it very important to select the pricing strategy on the basis of our target customers.
c)Promotion:This is the part which is equated as marketing by general public.Though this element of the marketing mix, we make our target consumers aware about our product.It can be divided into two parts Traditional ways of communication and online marketing.Such as through Sales promotions,television ads,print media(Traditional),Social media campaigning, flash ads, online banners,etc (Online Advertisement).
d)Place:Then comes the point of purchase,where we will sell our product its also depends on our target consumers.It also helps in formation of our distribution strategy. Product could sold through not only specific purchase stores, but also online, door to door etc making it an important part of our strategy.
The following are also called extended elements of marketing mix or service marketing mix.But in the present market product and service has become so intermixed that its better to include them and give them equal importance.
e)People:Now a days people are not only judging the product but also who delivers
them.so it has become very essential to select and train right people the right way in not only delivering the service but also in communication prior to that in talking with channel partners. Deals can made on basis of people also. Gone are the days where we make good product and it will sell on its own. Now you need the right people to sell the product.
f)Process:This is the element through which we decide How the product or service will be delivered.An efficient process helps in increasing the customer satisfaction which in turn create customer loyalty and increasing customers life time value for the organisation.
g)Physical evidence:It has its importance because It helps the company in differentiating with competitors. Eg. A consumer would buy a product from place whose ambiance is better.It also helps the company in charging premium for its product.It also include corporate symbols such as logos etc.Packaging forms an important part of the physical evidence.
For the developing and emerging markets there is also a need of two more elements of the marketing mix.
h)Power :In the Developing and emerging markets,Government plays a big role, So for a company to expand its business there the right kind of incentive is to be provided to the government which means how would it be useful for the government and economy there in general?that can be through infrastructure development, job creation etc?
i)Public relation:Its also related to expansion of the business in the new markets,this part focuses on familiarizing with the local market scenario and the consumer behavior which in turn helps in formulation of the other marketing mix elements.
Through these steps a full marketing process is determined which at at last helps in creating the value for the consumers and capturing the value that is profits an consumer equity from the consumers for the company..
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