Limitations of Marketing

Though there are many reasons a company embarks on marketing campaigns, there are several
limitations to the industry.

 Oversaturation. Every company wants customers to buy its product and not its
competitors. Therefore, marketing channels can be competitive as companies strive to
garner more positive attention and recognition. If too many companies are competing, a
customer's attention may be strongly diluted, resulting in any form of advertising not
being effective.
 Devaluation. When a company promotes a price discount or sale, the public may
psychologically eventually see that product as worth less in the future. If a campaign is so
strong, customers may even wait to purchase a good knowing or remembering what the
sale price was from before. For example, some may intentionally on holding off on
buying goods if Black Friday is approaching.
 No Guaranteed Success. Marketing campaigns may incur upfront expenses that hold
no promise of future success. This is also true of market research studies, where time,
effort, and resources are poured into a study that may yield no usable or helpful results.
 Customer Bias. Loyal, long-time customers need no enticing to buy a company's brand
or product. However, newer, uninitiated customers may. Marketing naturally is biased
towards non-loyal patrons as those who already support the company would be better
served in further investment in bettering products.
 Cost. Marketing campaigns may be expensive. Digital marketing campaigns may be
labor-intensive to set up and costly to maintain the scheduling, implementation, and
execution of the plan. Don't forget about the headlines that promote Super Bowl
commercial expenses in the millions.
 Economy-Dependent. Marketing is most successful when people have capital to
spend. Though marketing can create non-financial benefits such as brand loyalty and
product recognition, the ultimate goal is to drive sales. During
unfavorable macroeconomic conditions when unemployment is high or recession
concerns are elevated, consumers may be less like to spend no matter how great a market
campaign may be.

What Is Marketing?
Marketing is a division of a company, product line, individual, or entity that promotes its service.
Marketing attempts to encourage market participants to buy their product and commit loyalty to
a specific company.

Why Is Marketing So Important?

Marketing is important for a few reasons. First, marketing campaigns may be the first time a
customer interacts or is exposed to a company's product. A company has the opportunity to
educate, promote, and encourage potential buyers. Marketing also helps shape the brand image a
company wants to convey. For example, an outdoor camping gear company that wants to be
known for its rugged, tough goods can embark on specific campaigns that embody these traits
and make these emotions memorable to prospective customers.

What Is the Purpose of Marketing?

An important goal of marketing is propelling a company’s growth. This can be seen through
attracting and retaining new customers. 

 Companies may apply a number of different marketing strategies to achieve these goals. For
instance, matching products with customers' needs could involve personalization, prediction, and
essentially knowing the right problem to solve. 

 Another strategy is creating value through the customer experience. This is demonstrated
through efforts to elevate customer satisfaction and remove any difficulties with the product or
service.

What Are the 4 Ps of Marketing?

A commonly used concept in the marketing field, the Four Ps of marketing looks at four key
elements of a marketing strategy. The Four Ps consist of product, price, place, and promotion. 

What Are the Types of Marketing?

There are dozens of types of marketing, and the types have proliferated with the introduction and
rise of social media, mobile platforms, and technological advancements. Before technology,
marketing might have been geared towards mail campaigns, word-of-mouth campaigns,
billboards, delivery of sample products, TV commercials, or telemarketing. Now, marketing
encompasses social media, targeted ads, e-mail marketing, inbound marketing to attract web
traffic, and more.

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PART OF
Business Basics Guide
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 Business Development: The Basics
1 of 46


Business Ethics: Fair Business Policies Within Controversial
Subjects
2 of 46

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Business Plans: The Ins and Outs
3 of 46

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How Organizational Structures Work
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Which Type of Organization Is Best For Your Business?
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What are the major types of business in the private-sector and how
do they differ from one another?
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What Is Corporate Culture?
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What Is an S Corporation (S Corp)?
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LLC vs. Incorporation: Which Should I Choose?
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Learn about Private Companies
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Sole Proprietorship: What You Should Know
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
What Is Bootstrapping?
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Crowdfunding Definition
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
Understanding Seed Capital
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What Is Venture Capital?
15 of 46


Understanding Startup Capital
16 of 46


Capital Funding: What Lenders and Equity Holders Give
Businesses
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Series Funding: A, B, and C
18 of 46


What Is the Small Business Administration (SBA)?
19 of 46


What Is Upper Management?
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C-Suite Definition
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
What Does a Chief Executive Officer (CEO) Do?
 22 of 46

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How Operations Management (OM) Works
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How Human Resource Planning (HRP) Works
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What Is a Brand?
25 of 46
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What Is Brand Personality?
26 of 46

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Understanding Brand Management
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Why Brand Awareness Matters
28 of 46

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What Is Brand Loyalty?
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Understanding Brand Extension
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What Is Social Networking?
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What Is Affiliate Marketing?
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
Bringing a Product to Market through Commercialization
 33 of 46

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What Is Digital Marketing?
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
Direct Marketing: What You Need to Know
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
Everything Marketing Entails
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
Create a Great Marketing Campaign to Attract Customers
37 of 46


What Market Research Tells Companies About New Products and
Services
38 of 46


Micromarketing: Advertising Focused on a Specific Group of
Customers
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
What Is Network Marketing? How Does It Work?
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Understanding Product Differentiation
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What Is a Target Market?
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Outside Sales
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 
Finding a Good Sales Lead
44 of 46

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Why Indirect Sales Matter
45 of 46


How Inside Sales Can Be a Cheaper Way to Sell Products
46 of 46

Related Terms
What Is Digital Marketing?
Digital marketing is a means of advertising and selling products through the
internet, mobile devices, social media, search engines, display advertising,
and other channels.
 more
What Are the 4 Ps of Marketing and How Are They Used Effectively?
The 4 Ps are the key factors in marketing a product or service: product, price,
place, and promotion.
 more
Marketing Plan
A marketing plan is an operational document that shows how an organization
is planning to use advertising and outreach to target a specific market.
 more
What Is Viral Marketing?
Viral marketing seeks to spread information about a product or service from
person to person by word of mouth or sharing via the Internet or email.
 more
What Is Social Media Marketing (SMM)?
Social media marketing (SMM) is the use of social media platforms to interact
with customers to build brands, increase sales, and drive website traffic.
 more
What Is Affiliate Marketing?
Affiliate marketing allows you to earn commissions for marketing another
company's products or services. 
more
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