Basics
Fundamentals of Marketing and Promotion.
Marketing is a fundamental function of the organization:
The marketing function is considered one of the basic and important functions in any organization, whether delivering products or services. There is no doubt that both production and marketing are complementary, meaning that what matters is not production, but the most important thing is marketing the products (and services) that are produced.
The marketing function aims to:
- Recognize the needs and desires of consumers.
- Transform these needs and desires into goods and services
- Working to market them to the largest number of consumers, which results in consumers buying those goods or obtaining these services to satisfy their various desires and needs.
Production and marketing are the essences of economic life in any society. This is because the economic system in any country aims to satisfy the needs of society with all the goods and services that consumers need. The role of marketing in this context is to focus on identifying those needs that are compatible with consumers’ desires for goods and services and in a way that satisfies the needs and desires of consumers.
What is marketing?
There are several definitions of marketing:
- Some see marketing as the activity of pricing, promoting, and distributing goods and services that seek to satisfy the desires of individuals and organizations.
- There is also another definition that sees marketing as the process of planning, implementing, pricing, promoting, and distributing goods and services to create exchanges to satisfy the desires and needs of individuals and organizations.
- Finally, there is a third definition that sees marketing as all aspects of activity that transfer goods and services from the producer to the consumer.
Why marketing is important?
Marketing is important to both the producer, the customer, and society.
- The importance of marketing for the producer:
For the producer, successful and effective marketing leads to:
- Distribution of production for all goods and services.
- Achieving profits.
- Enabling the producer to identify the new wants and needs of customers.
- The possibility of increasing the quantity of products, which leads to a reduction in prices.
- The possibility to specialize in the production of one distinct product, through the continuous development of this product.
- The importance of marketing to the customer:
For the customer, successful and effective marketing leads to fulfilling his/her needs of goods and services with the following benefits:
- Fair price.
- Proportionate amount.
- Good quality.
- On the right time.
- In the right place.
- The importance of marketing to society:
- Increasing the volume of economic activity within the community.
- The success of projects (productive and service) leads to increased investment.
- Raising the standard of living of citizens.
- The possibility of employing the largest number of unemployed people to reduce unemployment.
- The possibility of exporting and increasing financial resources and allowing the establishment of new projects.
Benefits of Marketing:
- Time Utility:
It means that the marketing activity provides all the goods at the right time. That is, storing it at a time when there is no demand for the product and displaying it at the time when the customer needs it.
- Place Utility:
Goods can be provided everywhere through various means of transport (river – land – air – sea – …) to transport the product from the place of production to the place of distribution.
- Possession Utility:
It means the transfer of ownership of the product through purchases and sales from the producer to the customer.
- Form Utility:
Marketing allows production management to identify customers’ desires for goods (and services) in the form and quality that they desire.
The Marketing Mix (8 Ps):
The marketing mix includes a set of policies or marketing activities that integrate and interact with each other to produce a successful and effective marketing activity. The mixture includes several basic elements, known as (8 Ps):
- Product.
- Price.
- Promotion.
- Place.
- People (personnel).
- Process.
- Physical evidence.
- Performance.
All of these elements represent the marketing policies for organizations to prepare their integrated marketing plan. Also, each of these policies includes a set of sub-policies that are integrated to make these policies successful.
- Product:
It means all the goods and services provided by the facility to customers, whether or not the facility aims for profit. This is usually done through practicing several sub-marketing functions, the most important of which are:
- Production of a distinct commodity (distinguishing products, that each commodity has a distinct name)
- Packaging design
- Availability of quality standards in the product.
- Providing a product that meets the needs and desires of customers.
- The importance of studying the life cycle of products which usually pass through several stages which are:
- Introduction to the market.
- Growth.
- Saturation.
- Decline.
Understanding these stages helps organizations to address the need to develop their product, develop their packaging, produce a new product, or reconsider the marketing mix as a whole.
- Price:
Pricing policy is intended to determine the appropriate price of a product following the variables of supply and demand in the market, as well as the ability of customers to purchase that product. The pricing policy includes some sub-policies, the most important of which are:
- Determining the basic price of product.
- Price discrepancy in relation to transaction size (quantity discount)
- Installment sale or deferred sale
- Cash sales.
- Determining the policy of discounts (quantity discount – season discount – loyalty discount… etc.)
- Promotion:
It is a set of policies that interact and integrate through the so-called promotion mix, which includes several activities, which are:
- Advertising.
- Personal selling.
- Sales promotion.
- Publishing.
- Public relations.
- Place:
It means the distribution channels through which all goods and services are transmitted from the producer to the consumer, which includes the following activities:
- Direct selling (through the producer’s outlets).
- Selling to wholesalers.
- Selling to retailers.
- Authorized agent.
- Broker.
- A combination of the previous activities.
The distribution process is linked to both transportation and storage policies.
- People (Personnel):
The marketing team and all employees responsible for marketing in the organization along with their thoughts and aspirations will have a crucial effect on marketing efforts.
The first step in developing an advertising and marketing plan is to grasp who your target market is. It’s vital to understand your target market and create detailed customer personas.
This will help you communicate immediately to a variety of needs and goals of your goal market with readability and purpose. That’s why innovative content takes a human approach. Respect and empathy are extra than simply keywords. They are the foundation of a sustainable advertising strategy.
It’s integral for all and sundry concerned in marketing products, which include affiliates. Each performs a function in the organizational image and reputation.
- Process:
It includes all procedures necessary to deliver the product from the manufacturer to the customer in addition to after-sale services, such as transportation, maintenance, spare parts, supply, and warranty. In addition to the installment of all the various equipment for the goods that need such installations. Therefore, customers’ satisfaction relies on the efficiency of the process and limiting errors and variations.
- Physical evidence:
The physical evidence elements of the marketing mix refer to the tangible items related to the product or the place where the product is delivered or manufactured. This could include:
- The design of the product along with the interior and exterior design of the building, shop, office…etc.
- The theme of the website.
Design and layout are important as they need to be expressive and representative of the organization’s activity and values. For example, a sportswear retailer needs to ensure that the display, lighting, and internal design present an image of activeness and motivation.
The following processes can be completed to ensure the physical environment gives a positive experience for customers:
- The store should be clean
- The design of the store should reflect the image of the business internally and externally.
- Availability of facilities such as parking, toilet, kids’ area…etc.
The same for websites:
- Easy to navigate
- Products should be displayed with sufficient details.
- Providing information about the company and customer service should be responsive and effective.
- The layout should use colors, text and images that demonstrate the personality and image of the business.
- Performance:
Here, this means the performance of the product that the customer obtains after the purchase process and its conformity with his expectations, whether through a mental image of the organization or the information provided by the seller, whether in person or on the website. In this matter, the after-sales service and feedback are vital to the marketing mix process, which directly affects customer loyalty and the image of the organization.
The promotion mix:
The promotional mix includes several basic elements that aim to stimulate the sales process, the most important of which are:
- Advertising
- Personal Selling
- Sales Activities / Sales Promotions
- Publicity.
- Public Relations
- Advertising:
It is a non-personal means of providing goods or services by a known entity. That is, it is an activity that leads to the dissemination or broadcast of advertising messages to the public to urge them to buy the goods and services that are being advertised.
Conditions that must be met in the advertisement:
- The necessity of defining the audience to whom the advertising message is directed.
- Choosing the technical points that have the greatest impact on the audience of buyers or consumers to whom the advertising message is directed.
- Choosing the best appropriate methods for the audience to whom the advertising messages are directed, by comparing the costs and benefits of these methods.
The difference between information and propaganda:
- Information: means that it disseminates facts, information and news among the public with the aim of spreading ideas among its members and developing awareness among them.
- Propaganda: It is an activity that leads to influencing the ideas and thoughts of the audience in order to make them believe in the contents of that advertisement. Propaganda can be done in more than one way, visible or audible alike information, however the information in propaganda is usually subliminal.
- Personal selling:
It is a personal communication that takes place through sales representatives who meet customers, present products to them, and highlight their advantages to convince them and urge them to buy the product.
- Sales activities/promotions:
And that is through non-advertising and direct selling. The most common sales promotion methods are Samples, free gifts, special offers, promotional vouchers, and sale seasons.
- Publicity:
It is intended to raise the demand for the purchase of goods or services by publishing commercial data about them in one of the publications such as newspapers, radio, television, and internet without payment of any fee by the party concerned with publishing these commercial data however, the company may provide the publisher with samples or a free product. For example, social media influencers and reviewers.
- Public Relations:
Public relations has an important role in marketing activity in general and promotion, particularly that it develops relations with other organizations through special offers to their employees along with cooperating with similar and complementary industries.
The 7 Cs as a modern perspective of marketing mix:
Along with the mentioned approaches and strategies, there is a modern approach that emerged in the field of marketing which is called the 7 Cs:
- Clients.
- Convenience.
- Competition.
- Communication.
- Consistency.
- Creative content
- Credibility.
The environmental factors surrounding the marketing activity:
- the competitive environment:
There is an important necessity for any facility to monitor the activities and actions of its competitors and compare their products, prices, distribution outlets, and ways of promoting them, to determine the strengths and weaknesses that characterize the organization. That is, there is a detailed study that must be carried out by the organization to learn all the marketing policies carried out by the competing entity in the market. One of the most important areas of competition is product pricing. There are several well-known strategies in the field of pricing competition, the most important of which are:
- Market Penetration:
Where a low price is determined for the product by reducing the cost of production (not reducing quality), which results in achieving a larger sales volume and thus the organization’s ability to obtain a greater market share.
- Skimming Policy:
A high price is set and directed to customers who need it most and are willing to pay a high price for it.
- Distinction Policy:
Where the organization focuses on the characteristics and qualities in its products that make it distinct or different from the competing organizations.
- Focus Policy:
Either focusing on a specific category of customers or products.
- The economic environment:
The economies of most countries go through successive periods of boom and economic crises through four stages:
- Growth stage:
This stage is characterized by a high level of per capita income, a decrease in unemployment and inflation, an increase in the purchasing power of the citizen, and an increase in his desire to spend.
- Contraction/shrinking stage:
There is a decrease in purchasing power, an increase in unemployment, and therefore a decrease in the desire to buy.
- Recession stage:
It is characterized by a very low income, less spending, and a large increase in the unemployment rate, which requires the need to develop fiscal and monetary policies and control the negative effects of the recession on the economic situation.
- The recovery stage:
This stage is characterized by a gradual improvement in the economic situation.
- The political and legal environment:
It is a set of policies, systems, and legislation prevailing in society.
- The technological environment:
It is a group of technological developments, which has become a fierce competition for all markets in any country.
- The social and cultural environment:
The environment is influenced by the set of values, customs, traditions, and cultures that have a significant impact on the behavior of customers in the market.
Conclusion:
Marketing is a science, art, and an experience because those involved in marketing can benefit from the scientific principles that have been reached in the various areas of marketing that increase their efficiency and the success of their marketing decisions. However, there is no doubt that this success is linked to the personal experiences, capabilities, and skills of the marketing decision-makers.
Therefore, the combination of knowledge and experience in the field of marketing is one of the most important approaches that increase the effectiveness and capabilities of marketing teams so that they can increase their capabilities if this knowledge is combined with the development of their ideas and the development of their information through familiarity with modern concepts in the field of marketing and how to practice and apply these concepts in the reality in their organizations.