What Is Marketing? Five Basic Principles, Functions, And Types Of Marketing

Today’s consumers may perceive marketing only as a means of deception and coercion to purchase products they do not need. But in fact, marketing allows you to establish a connection between the seller and the buyer, which contributes to the understanding and satisfaction of the desires of consumers.

What is Marketing?

There are hundreds of definitions of marketing, and it is impossible to single out one correct one. But one classic and one modern definition can be distinguished from them.

Classical marketing is an activity aimed at making a profit by satisfying the needs of consumers.

Modern marketing is a process aimed at maximizing the profit of an enterprise by increasing the level of competitiveness and developing relationships with customers.

Marketing originated at the beginning of the last century in the United States. Since then, it has continuously developed and has firmly taken its place in modern business and market relations. This business tool covers the company’s relationship with customers, its pricing policy, product policy, and many other mechanisms of the enterprise’s economy.

The main task facing the marketer (marketing specialist) is to find out the needs of consumers and determine which of them can be fully satisfied and what tools this should be done. Behind this choice is the future financial success of the company.

Five basic principles of marketing

Different types of marketing are applied depending on the current economic situation and the current level of customer relations. But they are all built on five common basic principles:

  • First and foremost is the principle of practical research. Research is carried out in the macro and microenvironment of business. This means that marketing studies both the market (analysis outside the enterprise, company), the state of the enterprise, and potential (research within the enterprise, company).
  • The division of the market into parts ( segmentation ) and targeted work with one or more segments.
  • Regular introduction of innovations in the product means of production and like relations with consumers.
  • Flexibility and speed of response to changing consumer needs, competitors’ actions, and other changes in the market.
  • Planning sales and production programs based on previous research.

Marketing Functions

The functions of marketing follow logically from the above principles:

  • Analytical (research);
  • The function of control and management (in fact, this is the planning of the enterprise);
  • Innovative (product development, research and development R&D );
  • Marketing (commodity or assortment and pricing policy of the company );
  • Production (production organization and development of new technologies, production, technical and technological innovations).

Also Read: Inbound Marketing: Strategy And Application Examples

Types of marketing

Many existing types of marketing do not exclude or contradict each other, but each is used in its situation.

Here are a few main ones:

Direct Marketing

The easiest way to convey your offer to a potential buyer is to inform him directly using an advertising mailing list, by distributing a catalog with information about the company and several other similar methods, for example, distributing leaflets to people right on the street, mailing lists to “all” addresses via regular mail or e-mail (the latter is usually cheaper), etc.

An enhanced version of direct marketing aimed at working with the target audience through calls and personal sales.

Here, unlike direct marketing, it is possible to receive feedback from everyone who was able to get through or from whom it was possible to get the opportunity to meet in person and discuss the company’s proposals.

Strategic Marketing

It is based on long-term planning and consumer-oriented market research.

The work is carried out not only with the existing product but also with the one that people (potential consumers, if we are talking about a product or service that has not yet been created) will want to purchase in the future.

Guerrilla marketing

It is used to tell about your product to the maximum number of potential customers without significant investments in advertising.

These can be free ads, small gifts, participation in mass events, and other “guerrilla” promotion methods. It is desirable not to pay at all or pay the minimum for the opportunities to post information.

Marketing aimed at changing demand

Depending on the level of supply and demand, various types of marketing affect the market, that is, to lower or increase its level. These types include:

  • Conversion – necessary in case of a negative attitude towards any product or service, accompanied by reduced demand,
  • Stimulating – is used in the absence of demand to change (overcome) indifference to the proposed product (service),
  • Developing – used in conditions of latent demand, when consumers are not satisfied with existing products or services,
  • Supporting – used in conditions of stable demand, in an established competitive environment,
  • Counteracting – aimed at destroying the image of a competitor, at balancing a competitor,
  • Remarketing – repeated contact with the audience on the necessary products and services, used in marketing and promotion on the Internet, for example, to return the consumer to the website of a company or product,
  • Demarketing – aimed at reducing demand, used, for example, in cases where defects in a product have been identified, and its manufacturer does not want to take risks,
  • Synchro marketing – is used in case of irregular, for example, seasonal demand for products or services to equalize demand, make it as stable as possible, and minor dependent on external circumstances.

Also Read: Eight Things To Keep In Mind When Creating Email Marketing

A resource where one can find the latest updates & news about technology, software, gadgets and business ideas for the start-ups.

Related Articles

Latest Articles