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Marketing?
13th September 2021 by Claire Vain
Last updated on 27th May 2022
In this article
Product
Price
Place
Promotion
People
Process
Packaging
Physical Evidence
What are the principles of marketing management?
What are the five principles of sports marketing?
What are the principles of a market economy?
Private ownership
Freedom of choice
Motive of self-interest
Competition
A system of markets and prices
Limited Government
What do you learn in the principles of marketing?
For any business to be successful, a good marketing strategy is vital. In basic
terms marketing is about giving potential customers information about your
products or services and the reasons that they should choose your company.
Good marketing educates customers so that they can find the products they
want, make better and more informed choices about the products, and get the
most value from them. Marketing helps facilitate exchanges between buyers
and sellers for mutual benefits for both parties.
The same marketing principles have been around for decades. There are four
original marketing principles known as the 4Ps or the marketing mix. By
mixing these four ingredients in different ways, you can produce a synergy
between all four that drives product adoption within your target audience.
They are interdependent and work together to complement and align all the
parts of a marketing plan. The marketing mix is fluid, allowing the marketing
team to be able to emphasise any one area as needed based on marketing
conditions and what’s best for the targeted audience.
The 4 basic marketing principles are product, price, place and promotion.
Product
Product is one of the most crucial principles of marketing. The product can
either be a service you provide or goods. If you want to sell a product that is
going to be profitable then you need to do thorough research and understand
your customer and what is likely to appeal to them. You need to consider the
quality of your product, how safe the product is, and what its selling point is.
Price
This needs thorough market research, known as market-orientated pricing. It
is important to understand what your customers are willing to pay and the
price of the same type of product offered by your competitors. You will need
to determine the market value before setting your price.
Place
This is where your products or services are available to the customer, whether
this is a shop or an online website, or both. You will need to think about what
is convenient for your customers in terms of location and how to connect
your potential customers to your location. As more people use the internet to
source products and services, a digital presence can make a huge difference
to your success.
Promotion
This involves raising awareness about your company, brand, products or
services offered. You should be giving information about your products and
reasons to use them. It involves communicating with your target audience
and making your product appeal to them. Effectively promoting your product
or services is crucial for the success of any business.
There are a number of ways to promote your brand; this may include:
Advertisement – This may include social media, television or magazine
advertisements.
Email marketing – This involves communicating or advertising through
emails.
Sales promotions – This may include short-term promotions, or deals for
customers or prospective customers.
Search marketing – Search marketing is generating leads from search
engines in order to drive website traffic to your website or product.
Direct marketing – This is when you directly reach out to your target
audience.
Public relations – This involves presenting a favourable image of your
brand.
Marketing principles were extended from the 4Ps to the 7Ps in 1981, and
therefore some businesses find it useful to use the 7Ps, which also
include:
People
Hiring people who are skilled, and the right people for the job, is important
for any business to succeed. Good customer service is also important –
listening to your customers and responding to their needs.
Process
The process is the customer’s complete experience of the service or product
from start to finish. This includes delivery of the product and the aftercare
when a customer has received their product or service you provide. Happy
and satisfied customers will help your business grow due to the good
reputation you will gain, and the business from repeat customers.
Packaging
Packaging refers to how your products or services are presented to people,
and what initial impression you are making to your customers. Packaging in a
way that makes your product look attractive and stand out may mean that
your product is chosen over that of your rivals.
Physical Evidence
It is important that the environment where your products or services are
provided is attractive and user-friendly; this also includes thinking further
about your packaging. It includes all of the things that the customer will see
when interacting with your business.
Physical evidence will give your potential customer some knowledge of your
product before they purchase, for example where they can try it out or see the
results first before buying, making it more attractive to them, gaining their
trust. This also includes reviews from customers and interactions staff have
with them in stores.
Employers will seek to get the highest skilled workers at the lowest possible
wages. For tips on how to reduce employee turnover, please see
our knowledge base.
For a market economy to work there must be at least 6 characteristics
present:
Private ownership
Most goods and services are privately owned. Owners can profit from this by
selling or leasing property, products or services.
Freedom of choice
Owners are free to produce, sell and purchase goods in a competitive market.
A buyer must be willing to pay the price they set for their goods or services,
and their success is determined by the cost to produce and sell their goods,
and the price they can sell them for.
Motive of self-interest
A market economy gives people an opportunity and a chance to work for
themselves. Self-interest is one of the biggest factors behind a successful
market economy.
Competition
Competitive pressure helps to keep prices low and ensures goods and services
within society are produced more efficiently. If demand increases for a
certain item then the prices will rise. Competitors produce the same product,
adding to the supply of that product.
This reduces prices to a level that only the best, most stable competitors
remain. Competitive pressure also exists between workers and consumers, as
employees compete with each other for the highest-paying jobs, and buyers
compete for the lowest prices for the best product.
Demand includes:
Product price.
Buyers’ income.
Consumer taste.
Prices of goods.
Buyers’ expectations.
Supply includes:
Level of technology used in production.
Number of sellers in the market.
Amount of regulation, subsidies or taxes.
The expectation of future prices.
The price of other goods.
Limited Government
The government should ensure that everyone has equal access to the market –
regulating agencies ensure that no one is manipulating the markets – and that
people have equal access to information. The government’s role is to ensure
that the markets are open, stable, working, safe and fair to everyone.
Regulating agencies ensure that products are safe for use and that businesses
are not taking advantage of consumers.
There are pros and cons to a market economy:
Pros
Self-interest tends to take priority over concern for the bigger picture.
Competition leaves out the disadvantaged.
Caretakers of the disadvantaged tend to be left behind.
Not everyone will have the opportunity to reach their full potential.
Having a good understanding of this process will help to ensure the success
of your business. You will learn about the marketing process and the range of
marketing decisions that an organisation must make in order to sell its
products and services. It will help you learn to think like a marketer and
understand that the focus of marketing should be on the consumer.
Marketing is one of the fastest-growing industries, and it is a chance to be
creative and strategic. The end goal is to have a happy and satisfied customer.
By aligning the marketing principles to the target customer market, you’ll be
able to achieve this goal and grow your business.