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Marketing Mix : Product

One of the Ps in marketing is product.

The Product has to be something that people or consumers need. It cannot be something that the business owner wants to sell, but rather it must be something that people or consumers are willing to buy.

The challenge for any business is to think of a good, ideal and suitable product to place onto the market. The product has to be what consumers need and want, and also it has to be sellable and perhaps stand out from the crowd. Product features and designs could be made in such a way (after market research) that attracts consumers or differentiated from competitors' products.

Marketing Mix

This key part of Marketing is the main essence of any business which aims to thrive and do well in its market, amidst fierce competition and tough macro-economic conditions that most businesses face these days.

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Marketing Teacher : Businesses Adopting The Marketing Concept Cont.....

I know of a business which fully adopts the marketing concept. It is a service-related business that started in 2006.

The boss is someone with an entrepreneurial spirit. He runs the business almost single-handedly, with only one part-time assistant.

He understands the importance of the marketing mix (product, price, place, promotion, service, goodwill etc) and applies it in an effective and balanced manner to ensure that sales stay at a very healthy level, while keeping costs low.

The boss first started with a service that he knew consumers need and that there were not many competitors at that time. So he did his market research and combined the use of the marketing mix in such a way that he did well in his first year of business operations. From 2007 and 2008, he diversified into other service areas, and has done equally well, particularly in the promotional aspect of his various service lines.

Now, he could easily make a net profit of between $90,000 - $99,000 a year. It certainly beats working for someone, where one has to listen to mostly demanding orders from the bosses and cope with the everyday office politics. Mind you, an average graduate's pay (someone in his/her 30s) is only about $50,000 - $60,000 a year.

Businesses Adopting The Marketing Concept

Businesses that adopt this strategy have to:

- have a deep understanding of the market, based on thorough market research and not simply based on rough estimates or guesses

- make use of innovation, the business must be willing to change as the requirements of the market change

- careful planning and skilled execution of its marketing program and activities

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Marketing : It Is Everywhere

When you think of it, Marketing is actually present in almost every part of our lives.

You yourself are always marketing yourself. You could be going for a job interview, you could be after that dream girl/lady/woman or guy/gentleman/man, you could be running for election for a club president position, you could be doing a home business, you could be playing professionally as a sportsman etc etc.

All of the above and many more aspects of our lives require us to do some form of marketing of ourselves. Product, price, place or distribution, promotion, service, goodwill etc are all activated so as to enable us to do well in our quest for our aim(s) or goal(s).

Target Market

Once market segmentation has been conducted, the market segment(s) that the business wants to target can then be chosen.

The chosen market segment(s) to be targeted, will be the target market(s).

The Business will then put forth all of its marketing efforts into aiming at the target market(s).

Market Segments or Segmentation

This is a crucial concept that students have to first understand before embarking on their marketing knowledge journey.

When a business starts off initially, it has to divide or break up the huge consumer market into segments. They can do this by simply grouping consumers according to income levels, geographical regions, age groups etc; and then decide which market segment or segments they want to target.

Once decided, they will have derived their target markets to 'aim' at for sales of their products/services.

Market Positioning

Marketers within organisations usually try their best to create an image or 'position' for their product, brand or organisation name in the eyes of their target market vis-a-vis competitors' market position of their own product, brand or organisation name (competitors').

For example, their product, brand or organisation name could be seen as a useful budget product or a good product priced for the middle income earners or it could be something that consumers feel is an expensive yet quality and 'high class' product.

Marketing Teacher: Sales Orientation or Selling Concept

Some businesses adopt a selling concept where the aim is to make the product first and then think about how to sell it to consumers.

It does not place emphasis on finding out what consumers want and making a product that consumers want but rather it focuses on making the product it wants to sell and then relies on the belief that a strong sales force can get the product sold to consumers.

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The Marketing Concept

This is the most fundamental part of marketing.

If a business adopts the marketing concept, it means that business decisions are based entirely on WHAT THE CONSUMER WANTS.

So an effective business is always trying to balance between satisfying the consumer on the one hand, while still making a profit on the other hand.

Marketing: Definition

There are many many different definitions for Marketing.

One that is very suitable (short and sweet) from my point of view is the below:

Marketing is concerned with meeting business or organisational objectives by providing customers or consumers with satisfied goods and/or services.

There are other longer versions that specify various elements like the marketing mix, but the above is the 'straight to the point' version.

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