Marketing is a connection between the manufacturer and the consumer of a product, a way of establishing relationships between them. The main goal of marketing activities can be considered to attract new and retain old customers by satisfying their needs in the best possible way.
Company marketing goals
Definition 1
A goal is a certain quantitative or qualitative result that should be achieved by a certain point in time.
In accordance with the main goal of marketing activities, the following types of marketing goals can be distinguished:
- Market (conquering market shares or entering new markets);
- Marketing (creating the company’s image, fighting competitors, measures to increase sales);
- Managerial (improving the organization's management structure);
- Providing (pricing, studying consumer characteristics of the product)
- Tests
Marketing Principles
Definition 2
A principle is an attitude, a guiding rule, a position for any activity.
Marketing principles are the foundation of any organization and are based on the actual behavior of people and organizations in the market. The basic principles of the company's marketing activities are as follows:
- Focus on commercial results
- An integrated approach to achieving goals through needs analysis, market research and the use of marketing mix tools
- Taking into account the market situation and consumer requirements, coupled with the impact on the market
- Long-term goals
- Adaptability, quick response to changes in market conditions and consumer demands
Note 1
The fundamental principle of marketing: “Don’t try to sell what you managed to produce, but produce what you will definitely buy.”
These basic principles represent the basis for any organization's activities in a buyer's market. There are also specific principles of marketing activities that are applied comprehensively. The use of such principles is typical for companies that consider marketing fundamental to their business. These principles overlap with the marketing tools and basic principles listed above and form the following list:
- Market research
- Segmentation
- Flexible response
- Innovation
- Planning
Note 2
The listed principles reflect the essence of marketing as a business philosophy, the application of which is aimed at achieving the best financial result for the company by maximizing customer needs.
Marketing functions
Definition 3
Function – work performed by something; role, meaning of something.
Definition 4
Marketing functions are the main directions and rules of the company’s activities, which reflect the essence of the marketing approach to business.
Based on the marketing methodology as a market management philosophy, four main marketing functions are distinguished:
- Analytical function
- Production function
- Sales function
- Control and monitoring function
The analytical function of marketing is to collect information in order to use it to solve the company's problems. The analytical function includes the study of market conditions, the study of consumers and buyers of products, the analysis of players operating in the market (counterparties, competitors, intermediaries), the study of the product structure of the market and the analysis of the internal environment of the organization, its organizational structure from the point of view of competitiveness in the market presence.
The production function of marketing is to ensure the production of the product and manage its quality. Within the framework of this same function is the process of creating new products that best meet the needs of consumers. The production function consists of organizing the production of new goods, logistics and quality management of finished products. The sales marketing function, also called the sales function, is the organization of a system for moving a product from manufacturer to consumer in accordance with the concept of the product life cycle.
Definition 5
The life cycle of a product is the period of time during which a product is on the market.
The sales function includes not only processes aimed at moving the product to the consumer, but also the organization of after-sales and other services, and the implementation of targeted product and pricing policies.
The marketing function of management and control is to organize planning and information support for management by monitoring the implementation of the goals set by the organization. The organization of marketing control is the final link in the process of marketing activities and at the same time the initial stage for making new marketing decisions.
Note 3
Marketing functions can be considered as a cycle - the sequential implementation of activities for marketing analysis, production of products, their sales and monitoring of results.
Subjects of marketing in a broad sense, they are the state, consumers, enterprises (market entities).
Marketing Goals can be classified depending on the subjects. So the goals of the state in the field of marketing are:
Maximum consumption;
Maximum increase in quality of life.
The objectives of marketing towards consumers are:
To provide the widest possible choice;
Achieving maximum customer satisfaction.
From an enterprise point of view, the following marketing goals can be distinguished:
Increasing income;
Increase in sales volumes;
Increasing market share;
Creation and improvement of the image, fame of the enterprise and its products.
Marketing Principles- these are the fundamental provisions, circumstances, requirements that underlie marketing and reveal its essence and purpose. In accordance with the essence of marketing, the following basic principles are distinguished:
Production of products based on accurate knowledge of customer needs, market conditions and the real capabilities of the enterprise;
The most complete satisfaction of customer needs, providing them with goods and services that meet demand;
Effective sales of products and services in certain markets in the planned volumes and planned terms;
Ensuring long-term profitability of the enterprise, which involves the formation of a certain backlog of scientific and technical ideas and developments for preparing the production of market novelty goods;
Unity and continuity of the company's strategy and tactics in order to ensure rapid adaptation to changing market conditions and consumer demand.
Marketing mix Marketing is a set of controllable marketing variables that a company uses in an effort to elicit a desired response from its target market.
One of the marketing mix concepts (4P) includes 4 components:
Distribution;
Promotion.
Marketing functions- individual types or complexes of specialized activities carried out in the process of organizing and implementing marketing.
There are four blocks of integrated marketing functions with a number of subfunctions.
1. Analytical function:
Studying the market as such;
Consumer research;
Study of corporate structure;
Product research;
Analysis of the internal environment of the enterprise.
2. Production function:
Organization of production of new goods, development of new technologies;
Organization of logistics;
Management of quality and competitiveness of finished products.
1. Sales function (sales function):
Organization of a distribution system;
Service organization;
Organization of a system for generating demand and stimulating sales;
Carrying out a targeted product policy;
Carrying out a targeted pricing policy.
2. Management and control function:
Organization of strategic and operational planning at the enterprise;
Information support for marketing management;
Communication function of marketing (organization of the communication system at the enterprise);
Organization of marketing control (feedback, situational analysis).
Types of marketing activities classified using various criteria.
According to the object of influence, the following types of marketing activities are distinguished.
Product-oriented marketing, is used when the activity of an enterprise is aimed at creating a new product or improving an existing product. The main task in this case comes down to encouraging consumers to purchase new or improved products.
Consumer-oriented marketing, is used if the enterprise’s activities are aimed at meeting needs directly emanating from the market. Here the main task of marketing is to study potential needs and search for a market “niche”.
Integrated Marketing is a combination of the first two types and provides a comprehensive analysis of the enterprise’s capabilities from the production and market side. In modern conditions, only this approach can ensure real commercial success of an enterprise.
Depending on the specific situation in the market from the point of view of the state of demand, eight types of marketing activities are distinguished.
Conversion Marketing associated with the presence of negative demand. Negative demand is a situation in which all or most potential buyers reject a given product or service (for example, vegetarians reject meat).
The task of marketing management in the event of negative demand is to develop a marketing plan that will help generate demand for the relevant goods (services).
Incentive Marketing associated with the availability of goods and services for which there is no demand due to complete indifference or disinterest of consumers.
The promotional marketing plan should take into account the reasons for such indifference (for example, the buyer does not know the capabilities of this product) and identify measures to overcome it.
Developmental marketing associated with emerging demand for goods (services). It is used in situations where there is potential demand (the consumer feels the need to purchase some thing, which, however, does not yet exist in the form of a specific product). Management of this type of marketing is aimed at turning potential demand into real demand.
Remarketing. For all types of goods, demand decreases at a certain period of their life cycle.
The goal of remarketing is to revive demand using new marketing opportunities, for example, extending the life cycle of a product or service by giving it new market properties.
Synchromarketing used in conditions of fluctuating demand (for example, seasonal goods, transport during the working day) to stabilize sales and minimize fluctuations in demand.
Supportive Marketing used when the level and structure of demand for goods (services) fully correspond to the level and structure of supply. In this case, it is necessary to carry out a well-thought-out pricing policy (not to allow, for example, prices to be higher than those offered by competitors), purposefully carry out advertising work, stimulate sales activities in the right direction, and control production and marketing costs.
When the demand for a product (service) exceeds supply excessively, demarketing. So that the consumer does not have a negative impression of the enterprise’s ability to satisfy consumer demands, prices are raised, advertising work is curtailed, etc. At the same time, measures are taken to increase the output of products that are in excessively high demand (expansion of production space, sale of licenses for the production of these products to another enterprises, etc.).
Adversarial Marketing used to reduce demand, which from the point of view of society and the consumer is regarded as irrational (for example, alcoholic beverages, tobacco products). If demarketing is aimed at reducing the demand for a good-quality product, then counteractive marketing is aimed at reducing or even stopping the release of an undesirable, harmful product.
Types of marketing are also classified depending on the scope of marketing activity. Distinguish marketing of consumer goods(consumer marketing); marketing of industrial and technical goods; service marketing.
Marketing is a connection between the manufacturer and the consumer of a product, a way of establishing relationships between them. The main goal of marketing activities can be considered to attract new and retain old customers by satisfying their needs in the best possible way.
Company marketing goals
Definition 1
A goal is a certain quantitative or qualitative result that should be achieved by a certain point in time.
In accordance with the main goal of marketing activities, the following types of marketing goals can be distinguished:
- Market (conquering market shares or entering new markets);
- Marketing (creating the company’s image, fighting competitors, measures to increase sales);
- Managerial (improving the organization's management structure);
- Providing (pricing, studying consumer characteristics of the product)
- Tests
Marketing Principles
Definition 2
A principle is an attitude, a guiding rule, a position for any activity.
Marketing principles are the foundation of any organization and are based on the actual behavior of people and organizations in the market. The basic principles of the company's marketing activities are as follows:
- Focus on commercial results
- An integrated approach to achieving goals through needs analysis, market research and the use of marketing mix tools
- Taking into account the market situation and consumer requirements, coupled with the impact on the market
- Long-term goals
- Adaptability, quick response to changes in market conditions and consumer demands
Note 1
The fundamental principle of marketing: “Don’t try to sell what you managed to produce, but produce what you will definitely buy.”
These basic principles represent the basis for any organization's activities in a buyer's market. There are also specific principles of marketing activities that are applied comprehensively. The use of such principles is typical for companies that consider marketing fundamental to their business. These principles overlap with the marketing tools and basic principles listed above and form the following list:
- Market research
- Segmentation
- Flexible response
- Innovation
- Planning
Note 2
The listed principles reflect the essence of marketing as a business philosophy, the application of which is aimed at achieving the best financial result for the company by maximizing customer needs.
Marketing functions
Definition 3
Function – work performed by something; role, meaning of something.
Definition 4
Marketing functions are the main directions and rules of the company’s activities, which reflect the essence of the marketing approach to business.
Based on the marketing methodology as a market management philosophy, four main marketing functions are distinguished:
- Analytical function
- Production function
- Sales function
- Control and monitoring function
The analytical function of marketing is to collect information in order to use it to solve the company's problems. The analytical function includes the study of market conditions, the study of consumers and buyers of products, the analysis of players operating in the market (counterparties, competitors, intermediaries), the study of the product structure of the market and the analysis of the internal environment of the organization, its organizational structure from the point of view of competitiveness in the market presence.
The production function of marketing is to ensure the production of the product and manage its quality. Within the framework of this same function is the process of creating new products that best meet the needs of consumers. The production function consists of organizing the production of new goods, logistics and quality management of finished products. The sales marketing function, also called the sales function, is the organization of a system for moving a product from manufacturer to consumer in accordance with the concept of the product life cycle.
Definition 5
The life cycle of a product is the period of time during which a product is on the market.
The sales function includes not only processes aimed at moving the product to the consumer, but also the organization of after-sales and other services, and the implementation of targeted product and pricing policies.
The marketing function of management and control is to organize planning and information support for management by monitoring the implementation of the goals set by the organization. The organization of marketing control is the final link in the process of marketing activities and at the same time the initial stage for making new marketing decisions.
Note 3
Marketing functions can be considered as a cycle - the sequential implementation of activities for marketing analysis, production of products, their sales and monitoring of results.
Marketing principles are the fundamental postulates on which this science rests. Knowing them, you can properly organize your work and achieve maximum profit.
What is marketing
Marketing can be viewed by scientists and economists from several perspectives. Thus, some experts define it as a certain action aimed at organizing commodity and monetary exchange between subjects. Marketing can also be considered as a process that begins with an idea and ends with its implementation and receipt of a certain amount of profit. Thus, we can say that the goal of marketing is to find the optimal balance between supply and demand, as well as to organize production in accordance with these parameters.
Basic Concepts
It is impossible to understand the essence and principles of marketing without understanding its basic concepts and components, among which it is worth highlighting:
- exchange is a process during which subjects transfer certain values to each other;
- demand is the need for a certain amount of goods that consumers are able to purchase at the moment;
- a product is an object or action that satisfies the needs of the buyer;
- a transaction is an exchange of material assets that involves the participation of funds;
- market is a basic concept that refers to the environment in which a buyer meets a seller;
- market segment - a group of consumers that has similar requests, needs, characteristics and solvency.
Basic principles of marketing
In order to understand all the intricacies of marketing, you first need to understand its basic positions. Only thanks to them will you be able to understand how the market functions and how its subjects interact with each other. Thus, the principles of marketing can be formulated as follows:
- The first and most important thing is that strategy and tactics must interact and work in the same direction;
- Products must be produced in strict accordance with market conditions, as well as the structure of customer needs;
- the range of manufactured product names must be strictly justified from the point of view of economic feasibility;
- the level of technical development must be continuously improved in accordance with increasing needs;
- You need to enter the market with this or that product precisely at the moment when there is an opportunity to make the greatest profit.
Marketing organization
At enterprises, the work of the marketing department can be organized in completely different ways. But the fundamental rules remain the same. The principles of marketing organization can be described as follows:
- systematicity implies that marketing is a link in the overall structure, and not some separate service;
- planning, as well as adjustments to production programs, should be carried out continuously as necessary caused by changes in the external and internal environment;
- the marketing plan should be multi-variant and provide for various possibilities for the development of events;
- When developing a marketing strategy, various techniques and approaches should be used.
By following these marketing principles, you guarantee your business success and superiority over its competitors. It is impossible to effectively conduct practical activities without first familiarizing yourself with the theory. Fundamental knowledge is the key to the success of an enterprise.
Principles and functions of marketing
If the principles form the basis of marketing and are mandatory, then the functions make it possible to understand what role this service plays in the enterprise. So, we can highlight the following:
- the analytical function implies a continuous study of the situation both within the organization and outside it;
- the productive function is that the development and release of a new product begins only based on the results of a comprehensive study of the market situation;
- the sales function involves searching for optimal markets for selling products, as well as the shortest and most profitable routes for delivering them to their destination;
- the management and control function means that at all stages of marketing research, as well as production and sales of products, continuous supervision by senior management must be carried out, based on the results of which activities will be adjusted and directed in the right direction.
How is marketing managed?
The principles of marketing management can be formulated as follows:
- The principle of mutual benefit is that the interests of all participants in a commodity exchange transaction must be respected to the same extent, but if this is not possible, then a compromise must be sought. It is worth remembering that all market participants have equal rights and can put forward their own conditions.
- The principle of strategic orientation states that all marketing research and production processes should be aimed at the long term, while developing a detailed tactical plan. Also, this marketing program must be fully consistent with the overall goals of the enterprise.
- The principle of individualization of demand is manifested in the fact that for different groups of consumers different products should be offered, aimed at meeting the needs of a particular group. Market segmentation also relates to this concept. This allows you to diversify the range of products or concentrate on the production of goods for a separate (target) group of consumers.
- The principle of marketing integration is that in their activities, firms must use all available mechanisms to research markets and promote their products.
- The principle of benchmarking is to constantly compare your company with the leaders in a particular industry. This is done in order to compare the main indicators and take measures to achieve the established level. It is allowed to adopt from leading enterprises some mechanisms and methods used in their marketing activities.
What is marketing research
Marketing research is a purposeful action to collect and analyze information to develop the strategy and tactics of an enterprise. During this process, marketing principles must be strictly followed.
Marketing research is carried out in several stages:
- setting goals and defining tasks to achieve them;
- development and clear detailing of a plan in accordance with which research activities will be carried out;
- implementation of the activity plan, which manifests itself in the collection and analysis of information;
- drawing up reports based on the results.
A well-conducted study is the key to a successful enterprise.
One of the foundations of the activity of any enterprise operating on the principles of marketing is the motto “produce only what the market needs, what will be in demand by the buyer.” The main idea of marketing is the idea of human needs, which is the essence of this science. From this follow the basic principles, which include:
1) achieving the final justified result of the company’s activities;
2) taking over a certain market share in the long term;
3) effective sales of goods;
4) choosing an effective marketing strategy and pricing policy;
5) creation of market novelty goods that allow the company to be profitable;
6) constantly conducting market research in order to study demand for further active adaptation to the requirements of potential buyers;
7) use of an integrated approach to linking the set goals with the available resources and capabilities of the company;
8) searching for new ways for the company to increase the efficiency of the production line, the creative initiative of staff to introduce innovations;
9) improving product quality;
10) cost reduction;
11) organizing the delivery of the company’s products in such a volume, at a place and time that would most suit the end consumer;
12) tracking the scientific and technological progress of society;
13) the desire to achieve advantages in the fight against competitors.
Marketing functions.
The general functions of marketing are management, organization, planning, forecasting, analysis, evaluation, accounting, control. Specific functions are: studying the market, consumers and demand, environmental research, implementing the company’s product policy, organizing service, maintaining pricing policy, product distribution, maintaining and stimulating demand, etc.
Marketing functions follow from its principles and are of the following types:
1) analytical – this is a comprehensive analysis of micro and macro environments, which includes analysis of markets, consumers, demand, competitors and competition, as well as goods;
2) production – this is the production of new goods that meet the ever-increasing requirements of consumers, and includes the organization of production of a new product, the organization of supply and quality management;
3) marketing is a function that includes everything that happens to a product after its production, but before consumption begins, namely: organization of product distribution, organization of service, organization of demand formation and sales promotion, formation of product and pricing policy;
4) managerial: searching for possible ways to develop the activities of the enterprise, especially in the long term, i.e. organizing strategy and planning, information management, organizing communications;
Loading...
