Marketing Principles and Strategies for Business Success
5A. What is Marketing?
Marketing is the process that connects producers or providers of goods and services with the consumers of those offerings.
Marketing Concept
The marketing concept centers around a business prioritizing the satisfaction of customer needs and wants over simply selling a product or service.
Market-Oriented Approach
A market-oriented approach is a business strategy that prioritizes understanding and fulfilling the needs and wants of consumers. Businesses adopting this approach develop products and services tailored to meet these identified needs.
Brand
A brand is a powerful business asset akin to a maker’s mark. It cultivates awareness, desirability, and influence within the market.
Customer Base
A customer base comprises the individuals or entities that consistently purchase products or services from a business.
5E. Market Research Methods
Here are examples of how businesses can conduct market research:
- Surveys/questionnaires
- Interviews
- Direct observation
- Small group discussions (e.g., focus groups)
- Experiments (laboratory/field tests)
- Online bulletin boards
- Email blasts
5G & 5H. Product Development and Pricing
Product Development
Product development involves creating a product with new or enhanced features that offer additional benefits to customers. This can include:
- Modifying an existing product
- Creating a new product to meet the demands of a newly defined customer base or market
Recommended Retail Price (RRP)
The RRP is the price suggested by the wholesaler or manufacturer (supplier) for a product sold by a retail business.
- RRPs are recommendations only, as it is illegal for manufacturers or wholesalers to dictate the final selling price to the public.
- They provide helpful guidance to retail business owners.
Price Leadership & Competition
Following the prices set by another seller implies acknowledging that business as a price leader. For instance, in a shopping center with multiple stores selling similar items, the prices set by the most competitive shop might guide pricing for other shops.
Marketing Mix Elements
Promotion
Promotion encompasses the methods a business uses to communicate with both current and potential customers. This can include advertising and public relations activities.
People
People, especially employees, are crucial to the marketing mix. Their interactions with customers can significantly impact customer loyalty.
Physical Evidence
Physical evidence is vital and includes aspects such as information provided by salespeople, the physical condition of business premises, and access to feedback from existing customers.
Processes
Efficient processes and operating systems that simplify the purchasing process for customers are essential.
5I. Product Life Cycle
The product life cycle consists of the following stages: introduction, growth, maturity, decline, and extension.
Extension Strategies
Extension strategies aim to prolong a product’s lifespan by boosting demand. These strategies can include exporting the product or diversifying into new markets.
5J. Customer Service and Loyalty
Effective customer relations strategies involve addressing complaints, handling refund and replacement requests positively, and implementing customer loyalty programs. Businesses can also leverage an online presence and engage with diverse communities to enhance customer relations.
5L. Public Relations (PR)
How PR Supports Business Objectives
PR can assist a business in achieving its objectives in four key ways:
- Promoting a positive image
- Ensuring effective communication of messages
- Monitoring potential issues
- Managing crises: safeguarding a business’s reputation in the face of negative publicity or rumors
PR vs. Advertising
Unlike advertising, which relies on paid messages disseminated through mass media, PR generates positive perceptions through unpaid third-party endorsements. These endorsements can take the form of press releases, talkback radio mentions, celebrity comments, editorials, or journalists’ perspectives.
Marketing vs. PR
The primary distinction between marketing and PR lies in their target audience and objectives. PR focuses on building and nurturing relationships with the general public, while marketing concentrates on promoting and selling products or services to specific customer segments.
5M. The Power of Proactive PR
Building Goodwill
Effective PR cultivates goodwill that can shield a business from the full impact of future challenges. A strong reputation can make the public more forgiving in the event of isolated product quality issues, for example.
Customer Relationship Management
When businesses prioritize positive customer relationships, they foster loyalty among existing customers and attract new ones. Conversely, neglecting customer relationships can harm brand image and reputation, driving consumers toward competitors.
Stages of a PR Campaign
A well-structured PR campaign typically involves five developmental stages:
- Establish clear objectives
- Identify the target audience
- Develop specific strategies and tactics
- Implement the campaign
- Evaluate the results
Planned vs. Crisis PR
Planned PR campaigns are strategically designed to cultivate a positive brand and product image. Businesses retain control over the messaging in these scenarios.
Crisis PR, on the other hand, arises from the need to respond to unforeseen negative events. These situations might stem from internal actions or external factors, requiring businesses to adapt their messaging accordingly.