Marketing: A Comprehensive Guide to Understanding the Market and Its Strategies
Commercial Department
The commercial function encompasses activities necessary to bring consumer goods and services produced by the company to the market.
The Combined Market
The combined market refers to the buying and selling activities of a product undertaken by buyers and sellers.
Market Rates
Market rates are classified based on three factors: providers, applicants, and product.
Perfect Competition
Perfect competition exists when the following conditions are met:
- Homogeneity of the product
- A large number of suppliers and customers
- Price is determined by the market
- Full knowledge of market conditions by all participants
- Freedom of entry and exit from the market
Agricultural products and raw materials are examples of markets that exhibit perfect competition.
Imperfect Competition
Imperfect competition occurs when any of the characteristics of perfect competition are not met. It is the most common type of market.
Companies in imperfect competition seek to gain control over the market to influence product prices and increase profits.
Types of Imperfect Competition
- Monopoly: A single seller dominates the market, giving them the power to set prices and quantities.
- Oligopoly: A few suppliers control the market, leading to intense competition.
- Monopolistic Competition: A large number of buyers and sellers offer differentiated products, seeking to create a monopoly within a specific market segment.
Market Research
Market research involves gathering, processing, and analyzing information about the general environment, competition, and consumers.
Phases of Market Research
- Define the Purpose of Research: Determine the specific objectives of the research, such as increasing sales or launching a new product.
- Design the Research Model: Decide on the sources of data, which can include internal company information, external data, or published official statistics.
- Data Collection: Gather data through methods such as surveys, interviews, or secondary data analysis.
- Data Classification and Framing: Analyze and organize the data to identify patterns and trends.
- Analysis and Interpretation of Data: Draw conclusions and make recommendations based on the data.
- Presentation of Results: Prepare a report that clearly communicates the findings and implications for business decisions.
Market Segmentation
Market segmentation involves dividing the market into consumer groups with similar needs. The target audience is the specific group that the marketing efforts are directed towards.
Segmentation Criteria
- Sociodemographic: Age, sex, location, education level
- Socioeconomic: Income level
- Psychographic: Personality, values, lifestyle
Marketing Concept
The marketing concept is a set of activities that an enterprise undertakes to meet the needs and desires of consumers, with the aim of generating profit.
Elements of Marketing
A) Product
The product is the core element of marketing, as it is the object through which the company influences the market.
The brand is the name, term, symbol, or design that identifies the goods and services of a company.
Product Life Cycle
The study of the product life cycle is crucial for understanding the stage of a product and implementing appropriate marketing strategies.
- Introduction Stage: Launch of a new product
- Growth Stage: Product gains recognition and experiences strong sales growth
- Maturity Stage: Sales stabilize, and efforts focus on maintaining market share
- Decline Stage: Sales decline significantly, and the company may withdraw the product
Brand Strategies
- Single or Umbrella Brand: One name for all products
- Multiple Brands: Different names for different products
- Distributor Brands (White Brands): Consumer brands offered under the distributor’s name
B) Price
Price is the amount of money exchanged for the acquisition of a product.
Price elasticity of demand measures the responsiveness of demand to changes in price.
Pricing Strategies
- Price Skimming: Setting high prices to target a small, affluent segment and gradually lowering prices to reach a wider market
- Penetration Pricing: Setting low prices to gain market share and then raising prices to match competitors
C) Distribution
Distribution policy ensures that products are available to consumers at the right time and place.
Distribution includes processes such as storage, physical distribution, billing, and collection.
Distribution Channels
- Direct Channel: The producer sells directly to the customer
- External Channel: Intermediaries distribute the product
D) Promotion
Promotion aims to increase sales by raising awareness of the product or service.
Promotion Techniques
- Advertising: Paid messages in mass media to influence consumer behavior
- Sales Promotion: Short-term activities to increase sales, such as discounts or free gifts
- Personal Selling: Direct contact with customers to inform, persuade, and convince them to buy
- Public Relations: Activities to create and maintain a positive image of the company
- Merchandising and Point-of-Sale Advertising: Displays and promotions at the point of sale