Marketing is the backbone of business. Let’s figure out why company owners need it, what functions it performs, and how it can be used in work.
What is Marketing in Business
Why Business Owners Need Marketing
Basic principles of marketing
Application of Marketing in Business
Expert advice
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What is Marketing in Business
Table of Contents
The goal of every business is to sell more goods or services. And often the role of marketing in this is limited to generating demand and stimulating sales. But in the modern world, this is not enough. To understand the tasks of marketing, it is necessary to consider how its basic concepts have changed over time:
● Production concept
Appeared in the late 19th – early 20th century in a situation where demand greatly exceeded supply. Against the background of a general shortage of goods and services, customer needs were met by themselves. That is, people themselves wanted to spend money on something that had not existed before. And all that was required of marketing was to tell about the product.
● Product concept
It began to develop after 1920, when there were enough goods to satisfy demand. Buyers began to choose what stood out from the crowd in terms of quality and optimal cost. Marketing in this situation worked to improve existing products and develop new ones.
● Sales concept
In the 1940s and 1950s, there were even more goods in America, and supply exceeded demand. Products had to be sold to someone. And the tasks of marketing were to come up with promotions, make discounts, and work on promoting goods and services.
The more supply exceeded demand, the more marketing’s influence on business grew. New concepts emerged, such as the social-ethical and relationship concepts.
● Social and ethical concept
Companies are becoming more conscious, and marketers are using this to promote products and brands. For example, they organize charity auctions or tell the media how the company minimizes waste and recycles it when producing its products. They also motivate customers to consume consciously: they give discounts to those who hand in old batteries and lamps, plastic and clothes.
● Relationship Marketing
At this stage, the role of marketing in business is to create long-term relationships with customers and partners. To do this, offers should be addressed to specific groups of customers. If we are talking, for example, about bread production, then, according to this concept, it is necessary to release crispbreads for those who watch their figure, toasts for those who like quick snacks, cinnamon rolls for families with children.
Why Business Owners Need Marketing
It is generally accepted that the owner is responsible for the development strategy. But in modern companies, it is often marketing that helps manage the business, answering questions such as:
1.● What is the company’s position here and now? An assessment of the market and the company’s share of it.
2.● How to get from point A to point B — that is, to get the desired result?
3.● Using what resources?
4.● With what offer, for what audience?
5.● What volume of revenue will the company ultimately receive?
You can learn how to effectively manage marketing on the course “Market Analysis and Assessment”. Students will learn how to identify trends, analyze competitors and the market, and make marketing and product decisions.
Marketing in modern business has five main functions:
1. Working with the product range
Marketers evaluate the company’s products and services and the demand for them, develop new offers, and remove unpopular ones from sale. For example, a shoe factory decides to stop producing women’s high-heeled shoes because they are no longer in demand. Instead, they decide to launch a new product – the first-ever model of sneakers.
2. Market analysis
Marketers analyze the sports shoe market and choose a direction in which to develop – for example, trail running shoes.
3. Strategy development
The company has decided on a direction, and now marketers are making a plan to enter the market with a new model of trail running shoes. They come up with a way to differentiate themselves from competitors. One option is to make a tread with metal spikes that will help when running on ice.
4. Consumer research
Marketers study customer needs and demand. They interview athletes, study their requests for high-quality running shoes. They think about how and with what they can satisfy the buyer.
5. Monitoring and analyzing efficiency
After the launch of advertising and the start of sales of a new model of sneakers, marketers evaluate the results of the campaigns and adjust the development strategy . For example, they decide that it is worth covering another segment of the audience in addition to athletes – fans of tracking.
Basic principles of marketing
The main principle is to focus on the market. Let’s look at a few more features of marketing in business using the same shoe manufacturing company as an example:
● Focus on the market
It is necessary to understand the consumer and competitors in order to meet demand with in-demand products and services. Before launching a new model of sneakers, marketers study customer requests and the types of trail shoes that are already on the market. They look at what needs of the audience are not met.
● Maintain unity of strategy and tactics
You can’t come up with a plan and then do nothing. And you can’t do anything without a plan. Marketers develop a strategy for entering the sports shoe market and act: launch advertising in the media and social networks, organize offline meetings with athletes, find brand ambassadors.
● Monitor market changes and respond flexibly to them
If, after launching trail sneakers for sale, it turns out that they are not in demand, you need to understand the reasons. Perhaps lightweight models are gaining popularity on the market, and shoes with metal spikes do not fit this category. A marketer must study competitors and customer requests.
● Take a differentiated approach
Marketing should take into account the specifics and meet the needs of different target groups. Trail running shoes appeal to both athletes and trekking enthusiasts. But for the latter, it is important that such shoes be more rigid in terms of twisting. The company should develop another model taking into account these needs.
● Continuously develop introduce innovations
For example, ask artificial intelligence to develop the design of a new model of sneakers.
● Focus on personnel
provide the company’s employees with the opportunity to offer their ideas for improving the product, the company and its marketing initiatives. Perhaps there are professional athletes among the employees who can test trail running shoes and suggest how to improve them.
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Application of Marketing in Business
Marketing studies the market’s opportunities and limitations, as well as the company’s strengths and weaknesses. On this basis, a strategy is born that will lead the business to its goals.
Here are some examples of how marketing helps business:
● Develop what already works
A sports equipment factory has two workshops: the first one sews clothes, the second one produces equipment for gyms. The owner wonders whether it is worth developing the sewing workshop further. The marketer studies market opportunities and niches, competition in them, supply and demand. And offers a solution: to make mats and soft play complexes for kindergartens.
● Position yourself in the market
A window manufacturing company wants to define its positioning . To do this, the marketing team needs to understand what audience to work for. Specialists study the customer base, conduct research and find out: the largest segment is “functionalists” who put convenience first. Most often, these are active web users who tend to buy in online stores. They use applications, calculators and other online services to compare products and prices. They want to do repairs quickly, saving effort and money. And the marketing department manages to formulate the positioning: “A modern and affordable window profile for those who want to do repairs easily, install high-quality windows that suit them without overpaying for the brand.” And this can be realized through convenient order forms, ease of selection and fast service.
● Launch a new product on the market
A food manufacturer decides to launch healthy snacks. It is necessary to understand what assortment and what flavors will be in demand, on which shelf in supermarkets to put them and what to write on the packaging. A marketer studies the market , determines distribution channels and target audiences, tests the product. Based on the research, the company develops a line. Then marketers form value propositions that are broadcast in an advertising campaign and indicated on the packaging as stamps – additional information about the benefits of the product. As a result, new snacks are successfully launched on the market.
