Concepts and Principles
(P1) Describe the concept and principles of marketing.
Marketing is “the management process responsible for identifying, anticipating and satisfying customer requirements profitability.”
2003 BTEC Business (Heinemann) – Page 289 - The Chartered Institute of Marketing.
Marketing have certain concepts such as:
- Production Concept
- Selling Concept
- Product Concept
- Marketing Concept
Production Concept is the idea that certain company should focus on products that are effectively produced. Also the creation of a supply of low-cost products or services would also itself create the demand for the products in the market.
Selling Concept is “the philosophy or orientation of an organisation which emphasises aggressive selling to achieve its . Firms characterised by this often rely upon pressure selling and manipulative techniques to win business.”
This is a preview of the whole essay
Product Concept is “a verbal or pictorial version of a proposed . The consists of one or more s it will yield, its general form, and the used to achieve the form.”
Marketing Concept is the “business orientation or philosophy that holds that organisational success is dependent upon the identification of the and of s and the effective of them.”
Marketing has four common principles to undertake, these principles are:
- Understanding customer needs
- Keep ahead of competition
- Communicate with customers
- Using technology
Understanding customer needs
The purpose of marketing understands the customer needs and what the market wants. You can establish this through analyzing the marketing mix which has 4 elements that consists of price, promotion, place and the product itself. Conducting in-depth research will allow you to identify what your customer needs are and whether a product or service you’re looking to release, will increase profit as well as market share and will also be ahead of competition.
Keeping ahead of competition
After conducting your marketing research and establishing your company needs, you need to ensure that the unique selling point (USP) of your product can stay ahead of competition and can increase awareness to your target market. Initially most companies sell the same similar product because they have established the customer needs and the demand for certain or similar products. Therefore a company needs to make sure that they have a USP and can find ways of keeping ahead of competition, by perhaps adding methods of promotion to their products and perhaps pricing the product at a price the target consumers can afford.
Communicate with customers
Communicating with customers will allow recognition and awareness of your product and USP. Companies initially will use certain methods to communicate with customers such as advertising on bill boards, TV, newspapers, the internet and more. Communicating with customers is very important due to the fact that you have to communicate at a certain extent to fulfill your customers enquires and feelings and therefore to provide enough information for customers to come to you instead of your competitors. You need to look back at your feedback from research conducted to see if you have met every aspect of what your customers want and require in a product.
It is also essential customers can communicate with the company itself, by providing methods of contact information of the company on their adverts for example, so customers can require information or even make purchases.
Technology plays a very big aspect in the world today, this is because nowadays companies would use technology to benefit, save time and money and have more security. Companies may broadcast a website to allow customers to get more information at their own convenience and perhaps even buy products. The advantages the company can have can benefit from less expenditure of wages for example; as you would need less staff because you won’t required to always use telephones all the time as everything is done online and also more revenue from making sales online 24/7. Technology will also allow greater security of the company and can protect information, security details, customer details and more for data protection purposes. Technology is normally IT related and this can improve speed and accurately and gives you the chance to communicate with customers without voice or face to face communication. Nevertheless you can use IT to design your products, create certain fonts and more.