Elements of marketing

Elements of Marketing [1]


By: Mohamed Shahin

Marketing as a way of thinking and action in the market system, Nowadays, the central figure around which economic activity takes place is the consumer. It is an integral part of the success of the company and its position in the market. But it's not always like that. In the centrally planned economy, no one was interested in the customer and his expectations. The purchaser of goods and services was the one ignores taking economic decisions. Manufacturers do not think about it.
The situation changed only with the arrival of a market economy and the emergence of the concept of marketing. The resulting need for a fundamental revision of the orientation of companies: the orientation for a product for the market orientation and the recipient. Any action aimed at acquiring the customer and provide it with maximum satisfaction. This approach reached deep into the organization of the company and its strategy. Wycisnęło his mark on the whole process of management: planning, organizing, directing and control. Concept was given a "marketing" that is related to the market.
The very concept of "marketing" is not clearly defined, however. In the literature of the world you can find hundreds of terms and definitions for the various features and functions of marketing, its importance to consumers, businesses and the development of a market economy.
In the homeland of marketing, USA, American Marketing Association defines it as a business and sent relating to the movement of goods and services from producer to consumer. In the literature the definitions of marketing can be reduced to two approaches: the classical (narrow) and modern (wide). In the first of them, marketing is seen as the appropriate planning, coordination and control of all activities aimed at the company's current and potential markets.
In practice, this means that any decision the company should be focused on the customer and his expectations. However, these decisions are correct it should be preceded by systematic studies on the market and changes taking place there, and then make conclusions and to establish long-term goals and strategies the company.
Different perspective on the marketing philosophy of inclusion presents modern market. There it is limited to typical economic institutions - businesses, but its scope includes all forms of exchange between the contracting parties. In this sense the business of marketing is to satisfy human desires and wishes of buyers through exchange processes.
Turbulent changes taking place in the world economy in the eighties and nineties has had and continues to exert a strong influence on the understanding of marketing and assess its basic orientation. It is said that the investigation is no longer sufficient by the maxim "let the buyer what they want." It is now necessary to change of orientation to the purchasers in orientation strategy. This means that a trader must strive not only to meet the needs of buyers, but also to analyze and take into account the changes taking place under the influence of an ever more intensive competition. The result is a better idea about the rivalry at an attractive product, better price, easier place and manner of sale, more effective advertising, etc. So the game takes place about the purchaser, in which not everyone can win and not every winner achieves a permanent advantage. Wins the one who is best able to use the methods they met and who knows the best idea for a treatment in a given situation. This requires strategic thinking ability, or ability to anticipate future events and the conduct of other participants in the game, a proper assessment of opportunities and threats and the selection of optimal variant of its own actions.
At the beginning of the game market of buyers and sellers' interests are contradictory. Purchasers want to buy more and more products, if prices are low and meet the needs of high ability. And those who sell, would be willing to offer less at higher prices and thus achieve a high income. Reconciliation of these conflicting interests is through the market mechanism, which equalizes supply and demand with the help of prices that create a balance. The barrier of demand and competition is forcing the continued seeking buyers, and buyers offer attractive products and services. The game on the market is tough, and it can count only on themselves, and not on others, or state aid. In addition, the company can not adjusted to the average or bulk purchaser. Any consumer in their awareness of the case and how the market is a distinct individuality. Therefore, increasingly will value their individuality, personal characteristics, felt needs and the various possibilities to satisfy them.
Marketing mix - the impact of marketing instruments on the market An enterprise to achieve its objectives impact on the market mainly by the use of specific compositions of marketing (marketing - mix). These include:
• Direct product and its accessories,
• product and price conditions,
• distribution for the direct and indirect supply of products to buyers
• promotion and provision of acceptance for the company.
The instruments create a marketing system and therefore must be analyzed together, designed and implemented. Due to the internal relationships and interlinkages between them should be pursued to the full compatibility of the entire system, as a way to use one of the instruments affecting the use of others. Extremely important to the individualisation of the application of these instruments by the enterprise, which depends on market conditions, product type, the buyers market and set objectives and policies of the company.
The product is any object that is, all markets, which may be offered on the market. The condition of market success is its ability to meet specific needs. Activity in this area relate to: the testing of new products, modify existing ones, identify the structure of production, programming equipment products (name, brand, packaging), etc.
Also important is the creation of an image of the purchasers of the product that was desired by them. These activities are called product positioning to keep the value of a good show, which gets a high position in the market.
It should be noted that each product has its life cycle, ie the period during which the buyers in the market. The length of this cycle depends on the type of product, the impact of competition or sensitivity to change of fashion. Therefore, the product life cycle can vary from several months to several years.
In the product life cycle is the most distinguished four phases:
• Phase I - the introduction of the product on the market,
• Phase II - development of marketing;
• Phase III - the saturation of the market,
• Phase IV - The decrease in sales.
The first phase is the time in which the consumer is acquainted with the new product. The level of sales is small, although gradually increasing. The defining characteristic of this phase are large cost borne primarily on the manufacturer's promotion.
Conversely the second phase, where as you can see the sales figure is increasing rapidly. This allows the manufacturer to grow the profits and cover any losses incurred in the first phase.
Third phase is called market saturation, as the pace of sales growth is becoming smaller. The result is a reduction in the profit of the manufacturer.
As a last-quarter phase occurs, which is aging and declining product sales. This product has not already been very successful and therefore the sales decline. Manufacturers responding to withdraw from the continued production of this good. Does this mean "death" product? Yes, but there are some actions that can extend the product life cycle.
How to act? Look for answers within the same self-employment (see I propose to set out in the bibliography).
Price is another marketing tool, in turn, being an important element in the fight against competition. It is obvious that the price of the product must ensure not only producers but also cover the cost of an adequate level of profit. On the other hand, it can not be too high because there will be accepted by consumers. Consequently, the company must carry out such a policy of prices to both sides of the market - the producer and the consumer - have been satisfied. Companies choosing the specific pricing policies aim to achieve one of the following purposes: • the maximum profit
• maximum volume of sales,
• achieve a competitive advantage.
As a result, introducing the product on the market use a strategy for high or low prices. The first one makes sense if the product stands out from other quality, additional features or other assets in the market and at the same time there are very few producers of this good. Offer such a product is targeted to buyers for whom price is not a barrier for the purchase. If the product is an interest among buyers, it means the success of pricing strategy. The manufacturer achieves a rapid large revenue from expanding its sales and profit. At some point, it may reduce the price to reach those consumers who do not choose to date for the purchase of goods.
Another possibility would be to low price strategy, which is used when the market introduces a number of products intended to be substitutes, or when competition is high. Substitutes are those goods that meet the same needs and therefore may be used interchangeably, for example, butter and margarine, and matches or lighter. Products offered at a low price are intended for media buyers, which is very sensitive to the price and it makes the purchase. When this goal is achieved will be reported to the demand by consumers will rise rapidly and the producer maximizes the value of sales. In determining the level of prices for both producers as a strategy based on the most:
• unit costs together with,
• demand for the good and the factors that affect him,
• the level of prices of competing products,
• identify and reduce the formation of prices by the state.
Production and determination of a good price, however, does not stop operations of the enterprise. It is desirable to provide the consumers of their products in the right place and time. All activities related to the overcoming of spatial and temporal differences between the production sphere and the sphere of consumption, are another element of marketing - distribution.
The decisions of the company in this area include:
• analyze the possibility of setting different routes of circulation in the market,
• selection of the most advantageous distribution channels,
• to establish efficient procedures for offering, ordering and delivery of products
• minimize the cost of sales.
Due to high distribution costs a manufacturer can not stop interest in their product when the "take over" the brokers because the final price must be accepted by the consumer. The factors which determine the selection of a particular distribution channel, through which it will be forwarded to the consumer product, are: the type of product, market segment, the characteristics of firms, and financial resources, etc.
Speaking of the distribution should be mentioned that there are two types of systems: • Direct distribution - does the same manufacturer supplying the goods to the consumer, • Indirect distribution - the producer uses intermediaries.
Integral part of marketing strategy is a policy to promote a policy known as the enterprise communications market. These include: personal selling, sales promotion, public relations, advertising and packaging.
The task is to strengthen the promotion of each of the aforementioned elements of marketing. Therefore, it is intended to inform and convince the buyer to purchase the product and promote sales. Successful promotional activities comply with the AIDA formula, namely:
• Attention - draw the attention of the recipient of the promotion,
• Interest - raise interest
• Desire - the desire to rise, the desire to possess,
• Action - action which tend to make the purchase.
SALE OF PERSONAL is considered the most effective form of presentation of the product. This would involve personal contact with the seller the buyer interest in the product and continue to buy. This is particularly important in situations where the consumer has no explicit way in which wants to meet the need. The task is then to propose a vendor specific goods and possibly make a presentation. Charm, the charm of personal service and expertise are often critical to the success of the Seller.
Sales promotion activities resulting in the use of short-term incentives to encourage the customer to purchase the product or purchase larger quantities. To this end, measures such as distribution of free samples of goods, providing a variety of premiums and discounts, and organizing tasting, selling at reduced prices and more. It should be noted that the promotion of sales is not only consumers but also traders and sellers, which it is proposed that the supply of free promotional materials, training personnel and providing premium.
PUBLIC RELATIONS is a further element of marketing, although not related to the sale in a direct way. The purpose of public relations is to create a positive image (image) through the company's relationship with the shaping of the environment.
Creating the company as a reliable producer and a partner worthy of trust is extremely important not only for current sales but especially for the development of the company. Among the measures of this form of promotion are:
• dissemination by the media about the good condition of the company,
• interviews and public management of the company,
• measures to protect the environment,
• funding of cultural events,
• creating a foundation to support local and national events.
Advertising is a paid form of promotion of a product or company. Its purpose is to maintain the sale of products, attract new customers, promoting products entering the market, etc. The ultimate result should be an increase in consumer interest in your product purchase. Effective advertising is legible, honesty and reliability. The task of the manufacturer in this regard is the selection of appropriate measures and their use in the market.
Publicity to relay through which advertising reaches customers - radio, television, press, demonstrations, tastings, exhibitions, etc. the window due to the nature of the relay there are Ad:
• radio
• TV
• press release
• stores,
• cinema,
• publishing.
PACKAGING fully function and promotion. The former means that the package provides protection for the product and allows its transportation and cutting. Promotional functions while they are in the product and providing aesthetic experience. Packaging is to pay attention and encourage the customer to purchase.

It was considered ad the fifth marketing mix factor because of it's importance, All these elements of marketing - mix, ie product, price, distribution and promotion contributes to the achievement of maximum market impact. Thanks to them, your business is efficient and effective. It is therefore necessary to constantly seek a combination of all these elements to the success of the producer was growing larger every month. Information and marketing research.
All decisions of the company shall, on the changing conditions of the market. Therefore, it is also significantly important information about the current functioning of the market and changes taking place on it. Reliable information to reduce risk and attitude to take relevant decisions. Hence, they are often strictly guarded company secret.
Marketing should provide knowledge about the market and its participants, the cost situation, the prevailing fashion, etc.
To a marketing message can be the basis for rational decision-making should be characterized by the following features:
• reliability,
• true,
• news,
• completeness.
Because of the way to collect, share information on: the direct and indirect. The information referred to as a direct primary shall be collected by an enterprise specially for a specific purpose, and more indirect (secondary) are based on data already collected by other units. The advantage of secondary information is less the costs of obtaining and saving time. Disadvantage is that it may relate to prior periods, or that may be too general. The source of market information are all marketing research. In this concept we mean deliberately conducted activities such as collecting, processing, analyzing information needed to make a decision. This work may be conducted either by the enterprise itself or by a specialized institution in this field. Given the goal stands out:
• Diagnostic tests - to recognize the phenomenon and its determinants,
• prognostic test - providing for future developments,
• checks - results of the market.
Among the most commonly used methods of marketing research are:
• Survey Research,
• monitoring of the market,
• panel studies,
• test
• experimental studies.
The characteristics of these methods leave you now to work independently.