Why to do Marketing?
Why to do Marketing?
If you ask employees outside the marketing department of a company what they think of marketing, one often hears statements such as: “If the product is good, it doesn’t need marketing!”
This assumption would still have been correct in pre-industrial times. Because if there were only two carpenters in the village at that time, then your customers quickly noticed which of the two produced the better quality, which of the two had the lower prices and whose work best suited their own aesthetic sense.
The development of the concept of marketing
It is therefore not surprising that marketing as we know it today did not develop until the end of the 19th century: Before that, one had to deal with traditional seller markets where many potential customers choose from a comparatively small range of products machine-aided mass production quickly established a so-called buyer’s market in which a steadily growing number of manufacturers with similar products compete for a consistently smaller number of potential customers.
In most industries, the modern buyer’s market is no longer about the customer buying, but about buying their own products instead of competing products.
What are the most important marketing goals?
Marketing can be used for different business goals. That is why it is important to correctly define the goals before developing a marketing strategy.
Marketing can be used for branding and direct sales.
Sales marketing primarily focuses on economic goals such as:
- contribution margin
- Market share
- Price level
- Degree of distribution
Branding or brand building tends to focus on psychological goals:
- Brand Awareness
- Image building
- Customer satisfaction
- Customer loyalty
- Brand loyalty
- Buying intensity
- Skill level
- Buyer penetration
How do marketing strategies lead to success?
The two village carpenters in our example suddenly faced competition – from other carpenters in the area as well as from manufacturers and later from specialized furniture stores. From this point on it became necessary for the carpenters to differentiate their products and services from the competition through marketing measures.
At that time, a clever carpenter would have asked around the village what is important to people about their furniture.
If the carpenter had then learned, for example, that people liked the low prices from the furniture store, but they missed a repair offer, he could have responded accordingly: He would then have probably distributed leaflets or hung up posters in which he offered his service for repairing damaged furniture would have touted.
So the carpenter would have already carried out market research on a small scale, shifted the focus of his own business accordingly and then taken appropriate market-oriented advertising measures to inform the neighbors in the village that he can offer exactly what they want.
The classic marketing mix
Of course, the success of the (rather shirt-sleeved) marketing measures taken by our carpenter would be rather limited these days. This is mainly due to today’s much more complex market situation with hundreds of internationally and regionally competing providers, which requires a significantly further differentiation of products and marketing measures.
In order to even recognize which measures can be taken for such a differentiation, it helps to take a look at the marketing mix. This summarizes all marketing activities or areas and classically consists of the so-called “four P”:
- Product – product policy
- Price – pricing policy
- PhD – communication policy
- Place – sales policy
At this point it becomes clear how comprehensive the marketing tools are. And here at the latest it can be seen that “marketing” and “advertising” are not to be equated, as is often done in everyday language.
Advertising is just one of many possible marketing activities. It is typically a measure within an overarching marketing strategy.
What types of marketing are there?
Marketing theory has become so successful since its inception over 100 years ago that there are a number of specific terms that describe particular marketing approaches, including:
- Influencer Marketing:
Collaboration with social media personalities
- Viral Marketing:
Trying to Generate Word of mouth
- Cross-media marketing:
Targeted advertising messages via different channels at the same time
- Event marketing:
Organizing events that are then associated with the brand
- Direct Marketing:
Advertising messages are sent to potential buyers via direct email or post