Systematic principles for regulating the marketing relationships of a producer with a consumer began to take shape at the beginning of the last century. During this time, a whole philosophy of advertising actions was created with its own rules and laws, which firmly took a place in market relations at almost all levels. Today, marketing is a system of market actions that allows companies to efficiently provide services and sell products with financial benefit for themselves.
Marketing Basics
If we translate “marketing” from English, then such concepts as trade, sales and marketing will come to the forefront quite justifiably. The term is directly related to market activity, but if viewed from an economic point of view, the definition will not be so obvious. Moreover, there are many interpretations of this concept, but they all boil down to the fact that marketing is primarily an activity, the result of which is aimed at promoting services and goods. Another thing is that in this process various tools and methods can be involved. In particular, marketers use forecasting tools, social surveys, expanding sales channels and other actions that make it possible to advantageously present a product on the market in a competitive environment.
Marketing mix
Marketing as such is a general concept and does not apply to specific tools in the direct activities of the relevant structures. In practice, a marketing mix is used, which just represents the totality of methods and tools that influence the market. This set of tools is used by manufacturing companies to control the demand for a product.
With the help of this complex, enterprises achieve the following goals:
- Increased competitive advantage in competitors.
- Gaining high market position.
- Stability of profit and maintaining a positive reputation.
However, the implementation of these tasks becomes possible only if the elements that are part of the marketing mix are properly used as a way to regulate customer relationships.
Marketing mix components
In the classical sense, a marketing complex is a combination of four elements, the so-called 4P model. It includes such components as price, place, products and means of incentive. One of the key components is the price - this is, in fact, the fee that the consumer pays for receiving a service or product of the company.
The product category includes everything that meets the needs of the target audience of the manufacturer. It can be the same services, products, ideas, etc.
Also, the marketing department should provide where it is more profitable to locate the distribution location of your product. In this part, not only the attractiveness of a particular point of sale of goods is important, but also the efficiency of the logistics schemes on the basis of which the supply is provided.
The means of stimulation include measures aimed at communicating product information to the consumer.
According to some experts, the described model should include staff, but it is not provided for in the traditional complex scheme.
Marketing management concepts
Without preparation of product promotion tactics, any marketing model will be ineffective. For this, marketing concepts have been developed that allow you to more effectively manage the marketing process:
- Improving the production process. The main goal of such management is to achieve wide distribution of goods due to well-established production in large volumes and a well-thought-out distribution system.
- Product improvement. Adherents of this concept believe that marketing is not only external work with customers, suppliers and distributors, but also improving product quality and, therefore, attracting more customers.
- Increase sales. In this case, companies focus on increasing sales and stimulating market positions.
- Consideration of customer needs. This concept involves a thorough study of consumer demands and the corresponding formation of their products based on the data received.
In addition to traditional management principles, it is worth noting relatively new marketing concepts, including a holistic approach and branding. In the first case, a balanced use of all of the above concepts is envisaged with an increase in the role of individual components depending on the situation. Brand management is aimed at creating a positive image of the company in the eyes of the consumer.
Strategic management level
it marketing strategy, aimed at coordinating the company's resources with market conditions in the long term. It should be noted that this strategy does not set the task of forming the company's goals regarding business activity. Strategic marketing management rather forms a plan by which the goals will be achieved. The most common strategies of this type include:
- Improving organizational effectiveness.
- The development of new markets.
- Cooperation with other market players who have successful experience in a similar segment.
Tactical management level
In this case, the management provides for the development of a plan aimed at stimulating demand in the market in relation to the goods and services of the company. Tactical marketing management involves the use of the following mechanisms:
- Market analysis for the subsequent formation of demand and increase sales.
- Optimization of product management processes to maximize customer satisfaction.
- Direct interaction with consumers through promotions and events, exhibitions and fairs.
- Service improvement.
Multilevel marketing
This is one of the most popular marketing concepts, providing for the participation in the implementation of the product of independent distributors who form the sales network. Multilevel, that is, network marketing involves the payment of commissions and bonus rewards in accordance with the volume of goods sold. The size of payments is also affected by the number of involved participants marketing the company's products. Network marketing is characterized by a non-store form of retail trade - this is one of the types of direct sales in which participants in the system independently form customer bases.
Conclusion
Positive consumer perception of the manufacturer and its products directly affects the success of trade. To achieve such results, marketing specialists use various tools, applying them in different directions. It is important to consider that marketing is a system that includes both means of working with the consumer and ways to improve the device within the company. That is, in addition to creating a positive image with potential consumers, large companies are actively working to improve the quality of their products, optimize logistics processes and improve service. Only in combination are marketing tools able to get high sales results.
