MARKETING

Marketing is a new science. What has been around previously is the art of salesmanship. Salesmanship is the art of manufacturing something and making another person want. Marketing is the art of finding out what the other person wants, then manufacturing it for him. So marketing is defined as the performance of business activities that direct the flow of goods and services from the producer to the consumer.

In a market of multiple choice it is no longer sufficient to produce a product and show your customers that it satisfies one of their basic need. You must show them it provides benefits other products fail to provide, that it can be supplied at a competitive price and above all supplied reliably. Preferences that consumers have for this or that product work for shorter and shorter periods; choice makes marketing work.

Companies need to be constantly engaged in product development if they wish to grow and make profits. Coca-Cola was successful for many years with one product in one size until Pepsi-Cola challenged them with a bottle of double size at the same cost to the consumer. Since then Coca-Cola has made many changes. As you see multiple choices for the consumer is the motor that drives marketing vehicle.

Market Segmentation

Research is the basic tool of marketing. A marketer must determine what customer's needs are. Marketing experts have developed techniques for determining the needs of prospective customers. It's done by way of market segmentation.

Every market can be divided into segments or in other words, into separate groups of consumers. First there are demographic factors like age, income, cultural background, occupation, size of family, type of home, neighborhood and etc.

Then there are psychographic factors — the customers' opinions and interests, hobbies, vacation spots, favourite sports etc. Then a product is compared with the goods already established in the market by quality and quantity standards. To be ahead you must be ahead of your competitors.

Competition never stops. Market segmentation should be on a permanent base. Introduction of a pioneer product can immediately change the composition and number of a consumer grouping.

The fundamental principles for a marketer are:

1. understand the customer (thorough research)

2. understand the grouping (to which the customer belong)

3. create a choice (a difference in price or that will distinguish your product)

4. communicate that choice (through promotion and advertising)

Consumer marketing should be based on understanding consumer values, wants and needs.

Marketing Mix (Four P's)

There are four principle controllable factors that provide the most effective choice for the consumer. They are called Four P's or the marketing mix. These are: Price, Place, Promotion and the main point the product itself. Price can be different depending on the manufacturing expenses. But it must be competitive. The owner of a factory manufacturing transportation equipment could produce an economy car, a luxury, truck, van, tractor, motorcycles and apply different marketing techniques.

Place includes location of production and distribution. The place to see you product could be in dealers show rooms or directly from the factory or from catalogs, direct-mail coupons, even telemarketing with telephone sales people or through computer shopping service.

Promotion includes all forms of marketing communication (advertising, direct mail, customer service, image, special events, sales and the product or service itself). Promotion is the most complex thing - how to select and divide your market according to the type of product, its price and where it will be available. Each group of which you want to make your product appeal.

The most controllable of these factors is product (service). All products and services have been traditionally called product life cycles. The stages of the product life cycle are: introduction, growth, maturity and decline. The length of a product life cycle depends upon:

- intensity of the competition

- extent to which the product is an innovation, a modification of an existing product

- introductory timing of technologically superior products

- marketing techniques