Marketing concept

Marketing concept

1)  Market and marketing

Market is a place to sell good and services .there are four types of market and they are 

a)Consumer market:In this market product and service is sold direct to consumer like Amazon.

b)business market: Product are sell to the business. Official tool, machine and company invitation card fall under it.

c)Global market: Organization sell their product in country where product provide value to people. Like MI launch their budget and mid range phone in India and Nepal and flagship mobile in America according to need of country people 

d)Non-profit market: product sell to the government in bulk in low-profit margin. For example  army canteen food supply. In return government provide low tax or no tax to company.

Marketing is positioning of offering in market better then the competition. In simple marketing is playing with costumer mind that their product is better and value for money in their segmentation.

2)Need, want and demand

Need is the basic requirement of any person like clothes, food and shelter and then come want and when objective attached to need, then it create want . For example I am hungry I need to eat food so my need is Food. How can I fulfilled that I can fulfil it by eating rich or wheat. This is my want. Then what is demand, Demand is a product or can even be service which fulfils our want. For same example, I am hungry and I could have rich or wheat but I demand pizza and my hungry can fulfil by eating pizza then it is called demand. A need exists in market and marketer identifies the need and make the product in form of a demand to fulfil that.

Types of demand: Demand can be essential, nonessential, new and decline with time.

3)Segmentation, Targeting and Positioning (STP)

Everyone don't like the same product and everyone has different buying preference and buying power. So need to segment the market by buyer age, sex, interest and price. Targeting is a selection of the best market segment according to our product and people need to sell our product and we put positioning of our product in our segmented targeted market. Positioning is to keep offering of product in the mind of buyer that their product is best. Positioning can be a one-word sentence and can be a logo of a company like iphone apple logo.

4)Marketing channel

Three type of marketing channel

a) communication channel -communication channel include tv, media, newspaper and internet. Channel through which there is communication between company and consumer.

b)distribution channel-Channel from the high distributor to the retailer. It contains a supply chain. Supply chain network is a path travelled by a product from its creation to delivery.

c) Service channel- This channel is most important to service provider company. It include bank, insurance and customer care.

5)Marketing environment

Before launching any product or service at any place, you have to understand its marketing environment.Every country is different. they have different needs and people have different purchasing power. Marketing environment is divided into 6 types For better understanding, call them PESTLE(political, economic, social, technology, legal and environment) due to which either a product gets successful or not.

P for Political

Political means that a country or state is run by which type of government. Do they want Entrepreneurs or they work for their own profit?

Next is Economic

Economic means the consumer of that country has how much purchasing power. What is the per capita income? How much percent of people have how much money? Consumer over there wants to purchase costly or cheap products? In US, people prefer buying costly whereas in Europe,people prefer buying cheap products. If you want to launch product in Europe,then pricing must be acc to that and if in US, pricing must be acc to that place.

Next is Social: So Social factor, what is the thinking of that society comes under Social Environment.

Next is Technology: How is the technologial environment of that place?

Next is Legal: Legal means what is the legal environment. How much paper work is done there? 

If you are making any product,is there any fear of copying by another person?

Next is Environment

How is the environment? What is the temperature and amount of rainfall? How much humidity is there? There are many other factors which define the success of your product.If you are making phone for rainy area,then your product must be waterproof. If you make waterproof phone for that area, then you will get an edge than your competitions.

6) 4P's of marketing

This is basically 4 things: Product, Price, Place and Promotion. These 4 things decides success or loss of any product.

What is your product,what are its varieties,sizes? How is th packing done?It is of which brand and how is the branding done? All these comes under Product.

Second thing is Price

What is the price of your product? How much discount are you offering? What is your Payment term? All these comes under Price.

Third thing is Place

Where are you selling your Product? Where is your inventory? What is your supply chain network?What is availabilty of your product? At how many places your product is available? All these comes under Place.

So 4th P is Promotion

How are you taking your product to the target audience? How are you telling your target audience that you sell this product? These are the "specifications" of your product. All these comes under Promotion.

7p of marketing 

If you are in the service sector there will be an additional 3 p which is people, process and physical evidence( things that present in the service centre) .

7)Marketing strategy

We have understood what marketing is segmentation, targeting and positioning of need and want.

Now we have to do marketing of our company,brand..now we have to launch our product So what should we do? So, Porter's told you some strategies which you can apply to your brand and company

Basically 3 types of startegies are there..

 1: Cost Leadership which I like very much. Cost Leadership says that you have to make your product the cheapest in the market and have to try that every buyer in the market buy your product. If you see then around 2013-24 Micromax had a very large market share.Everyone thought that Micromax is the cheapest and best phone Lets say they sold you a phone worth 10K and earned only 500 out of that but they sold 1 lakh pieces like that.Take another company that was selling the same features but worth 20K. But it was able to sell only 1K pieces.So overall who made more profit? Micromax.So what you have to do is find the cost of the product..how much does it cost you. Now after finding cost of the product..you have to check how much profitability you want to make.If you are going on Cost Leadership then you cant take more profit.You have to operate on 2,3,5%. Because what's your staretegy here : volumetric sale..sale as much as you can.So sell your product by taking 5% profit margin and cost leadership strategy will be applied to your product.

 Next is Differentiation. Here you have to show your product different from the other person here you don't have to keep it cheap, you can make it costly, no problem in that but you have to try that it is different from your competitors Like Samsung s8, it sold edge to edge display. Like Pixel phones, their cameras were different among the highest rating cameras that was their differentiation strategy. Now we will talk about what iPhone is doing software customization and providing very good customer service.

So the 3rd and last strategy here is Focus strategy

For this I will give  example of One Plus. If you see they launched cheap product and said that our phone is Flagship Killer. Basically they are towards cost leadersip and want to capture a small segment.And now you can see oneplus has a very big market share and why is it so? As they have applied Focus strategy. Focus strategy is different from cost leadership and differentiation in a way that in them you don't take a segmentation. Here we target a small market and sell our product there.Here you can do differentiation as well as cost leadership.

8)Marketing alliance

First alliance is

a) Product and Service Alliance

You have to sell product in market so make an alliance that will help you in selling the product. If you to have pizza in Dominos will you get pepsi there. Pepsi as they have strategic alliance.

b)Next is Promotional Alliance: If you go to MC D they give soft toy of movie which is going to release like avenger, batman and spiderman free. As kid see it they told thier parent to go and watch movie. Here MC D is doing promotional in Promotional alliance.

c) Pricing Collaboration

You normally see a product is free with another. Oil with soap,something with shampoo.They mix up related items and sell you. This is Pricing Collaboration.Normally what happens you get oil free with soap,so soap price will be reduced by 2 and oil by 3.So, they will collaborate and you get it at a lower price

9)Product life cycle

We born and die, and live in between.Similarly is for a product,it is made,grows in market,then it becomes obsolete and closed.  There are introduction, growth, maturity and decline phase of the product. 
 Introduction phase

Here the product comes in the market and people get to know about it. So if you are introducing a product then your marketing expenditure will increase and growth rate may become too less. So the introduction phase is loss-making proposition. So to be safe from it,company tries to be as less as possible in the introduction phase. 

After introduction came growth phase where people know about market and unique specification and value proposition of the product and sell growth rapidly. Now how long people gona buy there will be time when all targeted customer have a product then this stage is called maturity stage. In maturity stage there will no much need of marketing. If product is good product will be sell according to word of mouth And after that come decline phase where sale decrease.
We have to understand that product is now in declining phase and must close it and one more thing as one product comes in the maturity stage, launch your another product in introduction phase .Like strategy of Samsung or I phone..as their one product grows and comes in maturity stage, they launch their another product.

10)Consumer adaptation Process

5 steps which will help you in providing product to the consumer and they are teaser, trailer,interest and maker review and trail availability. First step is to Product Awareness. Whenever any product is launched in the market, you have to aware people about it. Until consumer know what is there in the market how will he take that?  If you are launching then first bring teaser,trailer and aware people about it then create interest that our product have these things and if you take it from us you can get all these things. Try to make your reviews available..if possible sell your product to youtubeGive review by unboxing it..make it unbias or anything but give a review. More the reviews, more the consumer will think that yes it is something. If there is any product in which there is no review, a consumer will never take that product.

 

11) 5 C's of marketing

Customer, Company, competition, collaborator  and climate are 5 c's of the marketing.Customer is the main C company should make product that fulfil the demand of the customer. The company should maintain their brand and make sure they offer value can be delivered with there profit. 

Competition- Company should product that product that can complete with product and service of competitor. Collaborator include distribution channel, payment gateway, delivery system.

Final Climate include PESTLE(political,economic,social,technology,legal and environment) factor