How-To Understand Marketing?

Since the dawn of mankind, all business and commerce has involved marketing in some form or fashion. All of us are involved in marketing on a daily basis, whether we are applying for a new job, asking for a raise, trying to sell our car, or placing a classified ad for a litter of puppies.
First, you are selling yourself. You want to convey to your target audience that you can be trusted, that your promises of satisfaction are grounded. The product must be packaged and presented appealingly as well. All of these elements play a pivotal role in the consumer's decision-making process

The World Book Encyclopedia defines marketing as "the process by which sellers find buyers and by which goods and services move from producers to consumers." Sound marketing, from concept to delivery, is the main ingredient in any successful business endeavor.
In fact, approximately half the cost of everything you purchase can be attributed to marketing expenses by the producer and/or seller of the goods or services. Some believe the major costs incurred by marketing are a superfluous expense. Experienced marketers, however, would tell you that this is naive, uninformed thinking.

Marketing is an essential investment on the part of the manufacturer or seller. The marketplace is saturated with so many goods and service that hundreds of businesses across the country file for chapter 11 every day. Thus, businesses of every sort must do everything possible to spread a highly persuasive message to the public. They must strive to keep the consumer informed on what they offer and separate themselves from the competition - the key roles of any well-planned marketing campaign. In addition, national studies show that the marketing process is just as beneficial to consumers as it is to manufacturers and sellers.
We as consumers have a wide variety of products and services from which to choose. Marketing keeps us informed, helping us to make a qualified, sensible decision.Those selling and manufacturing goods and/or services have to make the public aware of what they are offering. On the same token, the wants and needs of the public must be met for any business to survive and thrive.
Remember, successful marketing begins when you see everything you do from your client's point of view and act on this. Let's now take a look at the components and basics of marketing. Marketing involves every aspect of business from the manufacturing of a product to actual point of sale.

Product Development & Manufacturing. Before any manufacturer produces goods of any kind, they must first conduct extensive market research: find trends in the market, study what the competition is doing, and, basically, see what works, what the public wants. Market researchers analyze the market, create a client profile, try to zero in on their target market, and then build products to meet these demands. Conventionally, this is done by tracking actual purchase behavior. Once market research has been performed and manufacturers have a better idea what consumer need dictates, they are prepared to develop and manufacture the goods sought-after by this segment of the population. Manufacturers constantly develop new products, alter existing ones, and discontinue ones not selling in an effort to cater to consumers.

Promotion. Promotion is generally defined as advertising and publicity in one or more of the mass media, as well as forms of direct marketing. Effective promotion uses mass media, direct approach marketing and other variations to clearly communicate a sales message.Promotion is the single best way of introducing a new product to the public at large. And along with quality and good service, it offers a way of generating and enhancing word of mouth, which is widely considered to be the most powerful marketing vehicle. The ultimate goal of any promotional campaign is to reach and add to a target audience. This is implemented on both the manufacturing and retail levels.

Merchandising. This is the area of the business in which the goods are made available to the consumer in retail stores or mail-order services. For example, a major corporation manufactures a style of sneaker, which they advertise on a national level. Mike's Shoe Tree, a small establishment on Main Street in Chug water, Wyoming (yes, a real town) carries these sneakers.Mike must let his community know that he is a supplier of these goods, then sell them agreeably and at a reasonable price. Mike is the merchandiser, the middle man between the manufacturer and the consumer. Whether we're talking about Mike's Shoe Tree or Macy's, both are involved in the merchandising aspect of marketing. They choose goods from a host of manufacturers to suit the needs of their clientele.

Market Research. The object of any business is to find who potential customers are so that they may be addressed and informed. Market research can tell you who is interested in or in need of your product or service, what their income level is, where they live, their age, their occupation and so on. Conclusions from these data can help you to identify your target market.
Once you know who these people are, you can then begin to tailor a marketing campaign. At the same time, marketing research guides the market, informing manufacturers and sellers what consumers are interested in, what their needs are so that these may be supplied. The results of researching the market influence every step of marketing which follows. It is also important to update research with a changing society.

Presentation. Showing your store and its products in the best possible light is, perhaps, the single most important process in the marketing of your business. It is the aim of any business to build a reputation for quality, service and reliability.Many elements go into this. Everyone who represents your company must be accessible, confident about the business, and knowledgeable regarding products and services. It means not only being a recognized authority, but also being willing to help the customer, answering questions in an agreeable manner and trying to help them find what they need. It also means displaying the product in an exciting way.

Think of department store window displays or any type of in-store promotional set-up. Once you have the customer in the store, the attractiveness of your goods will assume a vital role in the success of a sale. The POP - point of purchase - describes the common practice of having your merchandise displayed in key areas - i.e., at the cash register, near the entrance, etc. - to encourage a sale.

Advertising. Formally defined, advertising is the presentation in some medium of communication in order to induce the public to buy; or to call public attention to something. It is the type of promotion that you have paid for. Usually, you pay for the creation, the airtime or space (e.g., a billboard), and any other incurred expenses. Advertising gives a business the luxury of selecting the proper medium, controlling the content of the message, and the frequency at which the ad will run. These options allow any business to focus in on a specific audience in order to reach their target market.
A successful advertising campaign can increase business to such a degree so as to easily make the cost of it seem minuscule. This is why many business rely on industry professionals with tried and proven track records to create and place their ads.

Pricing. The retail price of any item or service is determined by the following: unit production or overhead expenses, the cost of manufacturing the item, packaging, and transportation.For any business to survive, there must be a margin set for profit. The manufacturer makes a profit when they sell the goods to the retailer, who in turn marks up the item to make a profit from the consumer. In each step, all expenses must be covered. The price paid by the consumer is what it costs to produce, package and transport the item, plus all markups along the way. Pricing can be a powerful tool in a competitive market. A business can emphasize a bargain by slightly undercutting competition, or they can stress quality by a slight increase.

Packaging. Packaging combines elements of advertising and presentation. It is usually the outer casing in which goods are contained. It should be pleasing and catching to the eye, and informative and indicative of the contents.
It should also sell the goods, extolling the merits and virtues of the product and presenting them in a pleasing and intriguing fashion. Take, for example, toothpaste. You go into your drug store in search of a tube of toothpaste and are confronted by literally dozens of products from which to choose.
None of the manufacturers can afford for their product to become lost among the shelves. An extreme example of packaging-gone-wrong (and poor market research) is Gerber baby food's marketing campaign in Africa.
Because of the high rate of illiteracy in many areas of the continent, packaged food generally carried a picture of the contents (i.e., carrots, peas, Spam) on the outside label. Gerber's trademark smiling baby not only scared off customers, but also made many Africans reconsider just how civilized American citizens are.

Customer Service. When other stores sell the same or similar items at comparable prices, the service becomes the primary focus. This involves and emphasizes trust and friendship. Once a client trusts you, they will depend on your business and even refer you to friends.
This is the beginning of the formation of a client base, and involves everything from employing a helpful, knowledgeable, pleasing sales staff to offering post-sale services such as guarantees, warranties, and follow-up service.

Direct Marketing. This is a one-on-one approach to advertising in which a potential customer is contacted in an effort to sell or inform. Direct marketing can take on such forms as telemarketing, direct mail (sales correspondence, flayer's, catalogs, brochures, etc.), and personal visits. It has the built-in advantage of allowing businesses to target specific consumers, while offering a more personalized approach.

Publicity. Advantageous publicity is generated by how you present yourself to the public. Basically, this is news coverage by one or more of the mass media amounting to free promotion, although you generally will not have control over the content

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