Skip to main content

05. What is included in Marketing?

 Some business people who don’t understand marketing think of marketing as ‘the art of selling products’, or simplistically equate it with advertising. Both of these are marketing tactics visible to the consumer. 
 
Many people are surprised when they hear that selling is not the most important part of marketing and that not all companies have large advertising budgets. Selling and advertising are only the tip of the marketing iceberg. 
 
Most of what occurs in marketing happens before the customer sees an advertisement (which is just the tangible representation of the marketing strategy), hears about a new product or service or meets a sales representative.
 
Just like an iceberg, over 80 or 90 per cent of marketing occurs out of the sight of the consumer. Advertising, sales and so on are the final rather than the beginning stages of marketing.
 
As Ralph A. Clevenger / Corbis puts it: 
 
The main focus of marketing is on what occurs below the waterline rather than above it. These are all the decisions that marketers make before the product or service comes to the market, and afterwards to maintain its position in the market. Non-marketers are inclined to think that marketing is only what occurs above the line.
Peter Drucker, a leading management theorist, describes the process of marketing this way:
 
‘The aim of marketing is to know and understand the customer so well that the product or service fits him/her and sells itself.’ Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

When Sony designed its PlayStation 3 game system, when Apple launched its iPod, and when Toyota introduced its Prius hybrid car, these companies were swamped with orders because they had designed the ‘right’ product or service, based on executing and managing carefully designed and complete marketing programmes.
 Toyota Prius Plugin Hybrid On The Charging Station Stock Photo - Download Image Now - iStock

Innocent drinks has successfully marketed a product to customers who are looking for a healthier diet. Eight years after launching Innocent drinks the company has a turnover of £75 million. It has captured a 71 per cent share of the £169 million UK smoothie market, with over 2 million smoothies sold per week. Innocent drinks is expanding into other European countries including Ireland, Holland, France, Denmark and Belgium. Innocent’s vision, in the words of co-founder Richard Reed, is ‘to be Europe’s favourite little juice company’.

Comments

Post a Comment

Popular posts from this blog

19. What is a Market?

 Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market). Five basic markets and their connecting flows are shown in below. Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services, and sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses these goods and services to provide public services.     Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes. Marketers view sellers as the industry and...
Post a Comment
Read more

41. Marketing is Honestly a work of Assertion

Marketers tell stories that matter. Great marketers always search for minds that believe a certain thing, that are seeking a problem to solve; that seeking something they desire; behave favourably towards something they  value or act in a certain way towards things that matter to them. Now Let's take a look at few examples: For busy executives who like to stay organized, Palm Pilot is an electronic organizer for backing up files on PC more easily. For consumers who desire to treat their pimples and acnes, Eva herbal soap is a bathing soap that helps in skin-healing, removal or pimples, acnes and spots....With Eva Help soap, you will have healthier skin . For consumers that seeking fairer skin, Coco-pulp is a range of lightning care enriched with coco oil. Coco-pulp clarifies and lightens skins by erasing spots and preventing apparition. With Coco-pulp, your complexion will be more clearer, lightened, harmonious and incredibly unified. The statements above are not chemistry solution...
Post a Comment
Read more

43. New sources of business capital

A Business capital, often referred to as capital in a business context, is the financial resources or assets that a company or a sole proprietorship uses to operate, invest, and grow. Traditionally, it can come from various sources, including: 1. Equity Capital: This is the money invested by the business owners or shareholders. It represents ownership in the company and can be in the form of common stock or retained earnings. 2. Debt Capital: Debt capital is borrowed money that the business must repay with interest. This can include loans from banks, bonds issued by the company, or other forms of debt financing. 3. Working Capital: Working capital is the money a business uses for its day-to-day operations, such as paying bills, salaries, and purchasing inventory. 4. Fixed Capital: Fixed capital refers to the funds invested in long-term assets like buildings, machinery, and equipment. 5. Venture Capital or Angel Investment: Startups and high-growth companies may secure capital from vent...
Post a Comment
Read more