P1 Marketing – Concepts and Principles Marketing Marketing is a fragmentary procedure of preparation and executing the marketing mix (product, price, place, promotion) for product services or notes to make exchange between persons and organizations. The managing process in charge for identifying, anticipating and satisfying customer requires profits. The product theory is based on the idea that customer’s will select lower priced products that be willingly available. The selling theory is based on the belief that customer’s need to be persuaded to buy through aggressive selling and promotions.
The types of company’s who embrace this type of concept believe their product is innovative and the best. The marketing concept company’s that embrace this belief believe they should meet their objectives by satisfying the needs of the customer. Marketing, traditionally named as one of the core functions on the business side. The others being finance, operations and human resources of any enterprise, refers to the act of engaging target customers in an effort to convince them to use a particular product or service.
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Principles The markets change a lot so it’s important for organisations to keep up with changes going on because if there left behind then they will lose out lot of money because of competition. For example Tape cassette players and record players were once a very huge international market. But eventually CD’s were created and the rest was history. A lot of competition can have a big effect on other competitions. For example if you buy a game for ? 30. 00 and another shop sells it for ? 20. 00 then you will lose out.
Communicating successfully with customers is about supporting the product you are trying to sell. In the market, high levels of promotional support are required for the product to be recognised. The usage of technology is now considered to be a big key to marketing principle. The surfacing of internet shopping is relevant to marketing for lots of reasons. It provides a new universal channel of distribution, particularly for products that can be bought as well as delivered over the Internet. Marketing functions Marketing functions establish marketing principles, they are: ???????????????? Establish a distinctive identity for a product organisation by creating a brand. ??????????????????? Produce a corporate image, by establishing the corporation’s own characteristics. ??????????????????? Coordinating marketing activities effective means working with different department ensuring every thing is ready for the big launch. E. g. productions, Public relations, press cover etc. ??????????????????? Plan, co-ordinate and monitor the marketing mix is allocating resources between the five elements of the mix, product, price, place, promotion, and packaging, e. . to sell products the organisation might have to produce promotional literature, or provide displays, or even display stands. ??????????????????? The way organisations manage change in technology is by looking at the current situation. This is called situation analysis or marketing audit. E. g. pestle The Four P’s of Marketing Once a marketing budget is determined, the marketing mix needs to be identified and funded. A marketing mix is the portfolio of marketing programs a manager can fund to achieve his goals (e. g. sales, awareness, etc. Typically, funding can fall into one of four marketing categories, known as the “Four P’s” of Marketing. They include: Product – The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user’s needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Pricing – This refers to the process of setting a price for a product, including discounts. The price need not be monetary – it can simply be what is exchanged for the product or services, e. . time, energy, psychology or attention. Promotion – This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company. Place – refers to how the product gets to the customer; for example, point of sale placement or retailing. Also place refers to the channel by which a product or services is sold e. g. online vs. retail. Discuss Smart: Specific, measurable, achievable, realistic and time