The American Marketing Association defines marketing as such: “the activity . . . and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
Put more simply, it is the set of business-related transactions that drive the buying and selling of products and services. It’s about finding what customers demand and producing it at the right price point. If the company can produce the product under the right conditions, they then sell it on the market for a profit. Read on to learn more.
What is the Definition of Marketing? Marketing is really a broad term and can cover many different areas including branding, design, pricing, market research, data analytics, consumer psychology and how we communicate. At its core, marketing is about understanding what customers need and value. A business has to speak the language of its target audience to remain relevant within their industry. The very success or failure of a business depends on its owner’s ability to adapt and to create an effective marketing strategy.
The 4 Ps of Marketing. Harvard Business Professor Neil Borden believed that there are certain ingredients that are essential to highlighting a product’s unique selling points to give it a competitive advantage. In 1953, this became known as the marketing mix. Later his theory was refined by E. Jerome McCarthy, who sums up these elements into what he called “The Four Ps”. The Four Ps Model
Product Product is the first component of the Four Ps model and is defined as a good or service that meets the needs or wants of consumers. As a business, your product is what makes you unique, so it is critical to have a clear understanding of what you have to offer. Price Pricing decisions will have a major impact on supply and demand, your profit margin, and will determine your overall marketing strategy.
Promotion Promotion includes digital marketing, advertising, public relations, search engine marketing and much more. It’s how you will get the word about your product or service. Promotional activities should be thoughtfully planned to maximize return on investment.
Place This last component focuses on where you will sell your product. Even if people aren’t shopping for your product online, it is critical to engage with potential customers online, and convert those engagements to sales.
Understanding the differences between B2B and B2C You likely see these terms everywhere, but what do they mean? Below, we will crack this code for you and provide some concrete examples. Business-to-business marketing is focused completely of targeting other businesses to sell your products or services. Examples include business banking, training services, IT services, etc. Business-to-consumer marketing specifically targets individual customers who buy your products or services for their own consumption. Examples include retail, personal banking, food, etc. Some companies like Coca Cola do both B2B and B2C marketing.
Regardless of what type of marketing a business uses, all distribution decisions will play a critical role in designing the overall marketing strategy. For more marketing tips, visit us at Endless Revenue Marketing.