Marketing Fundamentals: Concepts, Mix, and Strategy

Marketing Fundamentals (Tema 1)

The Marketing Concept Defined

Marketing is the process of planning, designing, pricing, promotion, and distributing ideas, goods, and services in order to satisfy customer needs and achieve profitability.

The Marketing Process

The marketing process typically covers two main stages:

1. Market Research: Analyzing customers, competitors, and market factors.
2. Market Planning: Defining the product, price, place, and promotion (the Marketing Mix).

The Marketing Mix (The 4 Ps)

The Marketing Mix principles are controllable variables that must be carefully managed to meet the needs of the defined target group. All elements of the mix are linked and must support each other:

1. Product: The features and appearance of goods and services.
2. Price: How much customers pay for a product.
3. Promotion: How customers are informed about the product.
4. Place: The point where products are made available to customers (distribution).

Market Planning and Objectives

Market planning involves setting marketing aims and objectives, normally focusing on sales levels, market share, and market position. Businesses should aim to be innovative.

Three Elements of Market Planning:

• Identifying market objectives.
• Selecting target markets.
• Developing an appropriate marketing mix.

Marketing Strategy and AIDA

Marketing strategy focuses on how to compete within the target market. AIDA is an acronym representing the steps required to persuade customers to buy:

• Attention (e.g., Surprise)
• Interest (e.g., Mystery)
• Desire (e.g., Special Offer)
• Action (e.g., Subscription or Purchase)

The Unique Selling Proposition (USP)

The USP refers to the special qualities of a product or service. These qualities make the product distinctly different from competitors' products.

Different Target Marketing Strategies

Marketing strategies can be segmented based on the scope of the target audience:

• Undifferentiated (Mass) Marketing
• Differentiated (Segmented) Marketing
• Concentrated (Niche) Marketing
• Micro-marketing (Local) Marketing

The Role of the Marketing Department

The marketing department links production to consumption by ensuring the demands of its consumers are met. To do this, marketing staff must manage the marketing mix efficiently by:

1. Researching the demand for the products.
2. Setting competitive prices.
3. Ensuring efficient distribution.
4. Promoting the products effectively.