What you must know about Marketing In A Business

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The marketing process for customers and customers who are interested in your products and/or services. A great topic, which is why they wrote articles on marketing, and why you can take a four-year marketing degree. But marketing actually involves everything you do to get your customers and your product or service together.

4 Types Of Marketing Plans And Strategies

In an excellent Harvard Business Review article, Ansoff (1957) identified four strategies for growing a business. These four strategies also identify the four basic types of marketing strategies as well as the types of investments and activities associated with each. They have defined Strategies as focusing on new or existing products and new or existing markets.

Market Entry Strategy

When a company focuses on selling its current products to existing customers, it follows a strategy to enter the market. The marketing activities that will flourish in this type of marketing strategy are those that emphasize increasing the credibility of existing customers so that they do not risk losing competitors, attracting competitors, increase product frequency, and convert non-users into users.

Increasing awareness of marketing links and increasing exposure to increased distribution are common marketing activities in this type of strategy. Identifying new use times and new product uses can increase the frequency of use or change the current nonusers for users. For example, an orange juice advertising campaign with the tagline “No more just breakfast” was an attempt to increase consumption. Price increases can be used to encourage competing customers to try out the company’s product if there is reason to believe that such a temptation would lead to repeat purchase. Loyalty systems can be very effective in keeping existing customers. The strategy reduces risk by relying on what the firm already knows – its existing products and existing customers. It is also a strategy where investment in advertising should pay off very quickly because the firm builds on the existing foundation of customer relationships and product knowledge.

Marketing Development Strategy

Efforts to increase sales by selling current products in new markets are called market development strategies. Such efforts may entice new world markets, such as international markets. Building brand awareness and building distribution channels are key marketing activities. Other product modifications may need to be more in line with local market needs. For example, as fast-food restaurants have entered the world markets, they often change their menus to better suit the food preferences of customers in local markets. Expanding the new market with an existing product poses a risk because the new market is not well known in the company and the firm and its products are not well known in the market. The return on investment in such a strategy is likely to be longer than the market entry point due to the time required to build information, distribution, and product testing.

Product Development Strategy

Image by mohamed Hassan from Pixabay

Creating new products to sell to existing customers, a product development strategy, a common marketing strategy among firms that can use their relationships with existing customers. For example, American Express has been able to leverage its relationships with its credit card customers and to sell travel-related services. Similarly, cable television companies have increased their offerings to the Internet and telecommunications. Research and development activities play a major role in this strategy. The time required to create and test new products can be long, but once the product has been developed, creating awareness, interest, and availability should be relatively quick because the firm already has customer relationships. A product development strategy is also riskier than a market entry strategy because the required product may not be able to improve, at least at a cost acceptable to customers, or the product made does not meet the needs of the customers.

Separation Strategy

The diversification strategy involves introducing new products to new markets. This is to do a completely new business. These are very risky strategies and a strategy that may require a lot of patience in waiting for a return on investment.

Featured on the Branding Strategy Insider by David Stewart, Professor of Presidential Marketing and Business Law, Loyola Marymount University, Author, Financial Advisory on Marketing Decisions.

What are 5 P’s Advertising?

5 P’s Advertising – Product, Price, Promotion, Location, and People – are key marketing tools used to position the business strategically. 5 P’s Marketing, also known as marketing mixes, are things that managers and owners control to satisfy customers in their targeted markets, add value to their business, and help differentiate their business from their competitors.

Product

Product refers to the products and services offered by the business. And also Product decisions include performance, packaging, appearance, warranty, quality, etc.

When thinking about a product, think about the key features, benefits, and needs, and requirements of the customers.

Price

Price refers to the price of products and services and how it will affect customers. And also Price decisions include not only the sale price, but also discounts, payment arrangements, credit terms, and any price-related services offered.

When determining pricing strategies, it is important to look at the business position in the current market. For example, if a business is advertised as a supplier of high-quality equipment, the price of the product should reflect that.

Encouragement

Promotion refers to activities that make a business more popular with consumers. It includes things like sponsorship, advertising, and community relations activities.

Since promotion costs can be huge, it is important to do a break analysis when making promotion decisions. It is important to understand the value of the customer and whether they need a promotion to get it.

Image by Gerd Altmann from Pixabay

Location

Location refers to where a business product/service is seen, manufactured, sold, or distributed. In short, local decisions are linked to distribution channels and ways to deliver the product to targeted key customers.

It is important that you consider the availability of a product or service and ensure that customers can find you easily.
For example, a business may want to offer its products in an e-commerce area, retail store, or third party.

People

People refer to employees, vendors, and those working for the business. People’s decisions often focus on customer engagement – how do you want your employees to be perceived by customers?

Example 5 P’s of Marketing

John is considering using a jet ski shop to tour travelers and tourists. To set up his business properly, John can contact 5 Ps of marketing as follows:

  1. Product: Hourly rented jet ski – for city dwellers for a short period of time. A limited credit form to be signed by service participants and a deposit in the event of damage.
  2. Price: Cheap jet trip to meet travel and tourist budget issues. 10% discount on jet ski travel when sent by the travel agency.
  3. Promotions: Facebook page, Instagram page, and Twitter host to promote business. Also, paid promotions on travel agency websites.
  4. Location: Easy to access the location from existing travel plans.
  5. People: Friendly staff who like to meet travellers and offer unique customers.

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