The definition of marketing is the process by which companies create value with customers and build customer relationships to capture value from customers in return; managing profitable customer relationships. The marketing concept is the ideology that firms should first analyze the needs and wants of the consumer market and then make decisions to satisfy those needs.
The four p’s of marketing include:
The product refers to a good or service produced by the company to meet a certain consumer demand. The price reflects the perceived value of the product or service; however, firms must also take supply and overhead related costs into consideration. The place of the product refers to the location in which it is available and marketed for the consumer. Lastly, the promotion aspect includes advertising, public relations, and promotional strategies. It blends the other three p’s together in the overall marketing strategy.
A company’s market share is portion of total sales in relation to the market it operates within. It is important for determining market opportunities along with weaknesses and threats for the future growth of the company. Consumer behavior is defined as the study of how consumers spend their money based on buyer preferences and price which in turn effects the demand curve. The steps in consumer decision making consist of the problem recognition, search process, evaluating alternatives, selection stage, and the last step of evaluating the decision made.
The definition of attitude in marketing is a person’s consistently favorable or unfavorable evaluation, feelings and tendencies toward an object or idea. Marketing segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. Furthermore, market targeting is the process of evaluating each market segments’ attractiveness and selecting one or more segments to enter.
The positioning of a product consists of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target consumers. A product is anything that can be offered to a market for attention; acquisition, use, or consumption that might satisfy a want or a need. On the other hand, a brand is a name, term, sign, symbol, design, or a combination of these that identifies the product or service of one seller or group of sellers. It differentiates the seller from their competitors.
The price is the sum of currency in which a buyer pays for the product or service’s perceived value. The price ideally reflects the value of the product or service in a market. The main difference between the supply chain and a distribution channel is the parties involved in the process. The supply chain deals with the flow of raw materials and finished goods through various manufacturers and sellers. The distribution channel focuses on the end goal of marketing and selling a product or service. The main promotional tools in marketing consist of advertising, personal selling, sales promotion, public relations, and digital marketing.
Thanks for reading,
Managing Partner, IHG Management