A Comparative Study of 4P’s Of Marketing Company

A Comparative Study of 4P’s Of Marketing Company

Contents for Tables:-

S.R.No.	Contents	Page No.
1	Introduction	2-3
2	Definition	4-5
3	Concept	6-6
4	Type of Marketing Strategies	6-9
5	Benefit of Marketing	10-11
6	Limitations of Marketing	11-12
7	Important of Marketing	13-17
8	Marketing Management Orientations	18-20
9	What is 4P Marketing	21-22
10	What is 7P Marketing	22-25
11	What is the 4’Ps Marketing	25-27
12	History of 4’Ps Marketing	28-29
13	Extension to 4P’s Of Marketing	30-30
14	Different between 7P’s Of Marketing	30-35
15	Criticisms	35-37
16	Environment	38-39
17	Research	39-40
18	Segmentation	40-43
19	Marketing Plan	44-46

Introduction

 Marketing is the act of satisfying and retaining customers. It is one of the primary components of business management and commerce.

Marketing is typically conducted by the seller, typically a retailer or manufacturer. Products can be marketed to other businesses (B2B) or directly to consumers (B2C). Sometimes tasks are contracted to dedicated marketing firms, like a media, market research, or advertising agency. 

Sometimes, a trade association or government agency (such as the Agricultural Marketing Service) advertises on behalf of an entire industry or locality, often a specific type of food (e.g. Got Milk?), food from a specific area, or a city or region as a tourism destination.

Market orientations are philosophies concerning the factors that should go into market planning. The marketing mix, which outlines the specifics of the product and how it will be sold, including the channels that will be used to advertise the product, is affected by the environment surrounding the product, the results of marketing research and market research, and the characteristics of the product’s target market. 

Once these factors are determined, marketers must then decide what methods of promoting the product, including use of coupons and other price inducements.

Definition

Marketing is currently defined by the American Marketing Association (AMA) as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”. However, the definition of marketing has evolved over the years. The AMA reviews this definition and its definition for “marketing research” every three years. 

The interests of “society at large” were added into the definition in 2008. The development of the definition may be seen by comparing the 2008 definition with the AMA’s 1935 version: “Marketing is the performance of business activities that direct the flow of goods, and services from producers to consumers”. The newer definition highlights the increased prominence of other stakeholders in the new conception of marketing.

Recent definitions of marketing place more emphasis on the consumer relationship, as opposed to a pure exchange process. For instance, prolific marketing author and educator, Philip Kotler has evolved his definition of marketing. In 1980, he defined marketing as “satisfying needs and wants through an exchange process”,and in 2018 defined

 it as “the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return”. A related definition, from the sales process engineering perspective, defines marketing as “a set of processes that are interconnected and interdependent with other functions of a business aimed at achieving customer interest and satisfaction”.

Some definitions of marketing highlight marketing’s ability to produce value to shareholders of the firm as well. In this context, marketing can be defined as “the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage”.

 For instance, the Chartered Institute of Marketing defines marketing from a customer-centric perspective, focusing on “the management process responsible for identifying, anticipating and satisfying customer requirements profitably”.

In the past, marketing practice tended to be seen as a creative industry, which included advertising, distribution and selling, and even today many parts of the marketing process (e.g. product design, art director, brand management,  advertising, inbound marketing,  copywriting etc.) involve the use of the creative arts.       

However, because marketing makes extensive use of social sciences,  psychology,  sociology,  mathematics,  economics,  anthropology  and  neuroscience, the profession is now widely recognized as a science.  Marketing science has developed a concrete process that can be followed to create a marketing plan.

Concept

The “marketing concept” proposes that to complete its organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more effectively than its competitors. This concept originated from Adam Smith‘s book The Wealth of Nations but would not become widely used until nearly 200 years later. Marketing and Marketing Concepts are directly related.

Given the centrality of customer needs, and wants in marketing, a rich understanding of these concepts is essential:

Needs: Something necessary for people to live a healthy, stable and safe life. When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be objective and physical, such as the need for food, water, and shelter; or subjective and psychological, such as the need to belong to a family or social group and the need for self-esteem.

Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups.

Demands: When needs and wants are backed by the ability to pay, they have the potential to become economic demands.

Marketing research, conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer’s unmet needs. Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on the basis of “distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.” 

Needs-based segmentation (also known as benefit segmentation) “places the customers’ desires at the forefront of how a company designs and markets products or services.” Although needs-based segmentation is difficult to do in practice, it has been proved to be one of the most effective ways to segment a market. In addition, a great deal of advertising and promotion is designed to show how a given product’s benefits meet the customer’s needs, wants or expectations in a unique way.

Types of Marketing Strategies

Marketing is comprised of an incredibly broad and diverse set of strategies. The industry continues to evolve, and the strategies below may be better suited for some companies over others.

Traditional Marketing Strategies

Before technology and the Internet, traditional marketing was the primary way companies would market their goods to customers. The main types of traditional marketing strategies include:

 

• • Outdoor Marketing: This entails public displays of advertising external to a consumer’s house. This includes billboards, printed advertisements on benches, sticker wraps on vehicles, or advertisements on public transit.

• • Print Marketing: This entails small, easily printed content that is easy to replicate. Traditionally, companies often mass-produced printed materials, as the printed content was the same for all customers. Today, more flexibility in printing processes means that materials can be differentiated.

• • Direct Marketing: This entails specific content delivered to potential customers. Some print marketing content could be mailed. Otherwise, direct marketing mediums could include coupons, vouchers for free goods, or pamphlets.

• • Electronic Marketing: This entails the use of TV and radio for advertising. Through short bursts of digital content, a company can convey information to a customer through visual or auditory media that may grab a viewer’s attention better than a printed form.

• • Event Marketing: This entails attempting to gather potential customers at a specific location for the opportunity to speak with them about products or demonstrate products. This includes conferences, trade shows, seminars, roadshows, or private events.

Digital Marketing

The marketing industry has been forever changed with the introduction of digital marketing. From the early days of pop-up ads to targeted placements based on viewing history, there are now innovative ways companies can reach customers through digital marketing.

 

• • Search Engine Marketing: This entails companies attempting to increase search traffic through two ways. First, companies can pay search engines for placement on result pages. Second, companies can emphasize search engine optimization (SEO) techniques to organically place high on search results.

• • E-mail Marketing: This entails companies obtaining customer or potential customer e-mail addresses and distributing messages or newsletters. These messages can include coupons, discount opportunities, or advance notice of upcoming sales.

• • Social Media Marketing: This entails building an online presence on specific social media platforms. Like search engine marketing, companies can place paid advertisements to bypass algorithms and obtain a higher chance of being seen by viewers. Otherwise, a company can attempt to organically grow by posting content, interacting with followers, or uploading media like photos and videos.

• • Affiliate Marketing: This entails using third-party advertising to drive customer interest. Often, an affiliate that will get a commission from a sale will do affiliate marketing as the third party is incentivized to drive a sale for a good that is not their own original product.

• • Content Marketing: This entails creating content, whether eBooks, infographics, video seminars, or other downloadable content. The goal is to create a product (often free) to share information about a product, obtain customer information, and encourage customers to continue with the company beyond the content.

What Are the Benefits of Marketing?

Well-defined marketing strategies can benefit a company in several ways. It may be challenging to develop the right strategy or execute the plan; when done well, marketing can yield the following results:

 

• • Audience Generation. Marketing allows a company to target specific people it believes will benefit from its product or service. Sometimes, people know they have the need. Other times, they don’t realize it. Marketing enables a company to connect with a cohort of people that fit the demographic of whom the company aims to serve.

• • Inward Education. Marketing is useful for collecting information to be processed internally to drive success. For example, consider market research that finds a certain product is primarily purchased by women aged 18 to 34 years old. By collecting this information, a company can better understand how to cater to this demographic, drive sales, and be more efficient with resources.

• • Outward Education. Marketing can also be used to communicate with the world what your company does, what products you sell, and how your company can enrich the lives of others. Campaigns can be educational, informing those outside of your company why they need your product. In addition, marketing campaigns let a company introduce itself, its history, its owners, and its motivation for being the company it is.

• • Brand Creation. Marketing allows for a company to take an offensive approach to creating a brand. Instead of a customer shaping their opinion of a company based on their interactions, a company can preemptively engage a customer with specific content or media to drive certain emotions or reactions. This allows a company to shape its image before the customer has ever interacted with its products.

• • Long-lasting. Marketing campaigns done right can have a long-lasting impact on customers. Consider Poppin’ Fresh, also known as the Pillsbury Doughboy. First appearing in 1965, the mascot has helped create a long-lasting, warm, friendly brand for Pillsbury.

• • Financial Performance. The ultimate goal and benefit of marketing are to drive sales. When relationships with customers are stronger, well-defined, and positive, customers are more likely to engage in sales. When marketing is done right, customers turn to your company, and you gain a competitive advantage over your competitors.
  •  Even if both products are exactly the same, marketing can create that competitive advantage for why a client picks you over someone else.

According to MarTech, a digital marketing provider, the world will spend $4.7 trillion on marketing by 2025. This estimate includes an increase of $1.1 trillion from 2021 to 2025.

What Are the Limitations of Marketing?

Though there are many reasons a company embarks on marketing campaigns, there are several limitations to the industry.

 

• • Oversaturation. Every company wants customers to buy its product and not its competitors. Therefore, marketing channels can be competitive as companies strive to garner more positive attention and recognition. If too many companies are competing, a customer’s attention may be strongly diluted, resulting in any form of advertising not being effective.

• • Devaluation. When a company promotes a price discount or sale, the public may psychologically eventually see that product as worth less in the future. If a campaign is so strong, customers may even wait to purchase a good knowing or remembering what the sale price was from before. For example, some may intentionally hold off buying goods if Black Friday is approaching.

• • No Guaranteed Success. Marketing campaigns may incur upfront expenses that hold no promise of future success. This is also true of market research studies, where time, effort, and resources are poured into a study that may yield no usable or helpful results.

• • Customer Bias. Loyal, long-time customers need no enticing to buy a company’s brand or product. However, newer, uninitiated customers may. Marketing naturally is biased towards non-loyal patrons as those who already support the company would be better served by further investment in product improvement.

• • Cost. Marketing campaigns may be expensive. Digital marketing campaigns may be labor-intensive to set up and costly to maintain the scheduling, implementation, and execution of the plan. Don’t forget about the headlines that promote Super Bowl commercial expenses in the millions.

• • Economy-Dependent. Marketing is most successful when people have capital to spend. Though marketing can create non-financial benefits such as brand loyalty and product recognition, the ultimate goal is to drive sales. During unfavorable macroeconomic conditions when unemployment is high or recession concerns are elevated, consumers may be less likely to spend no matter how great a marketing campaign may be.

What Is Marketing?

Marketing is a division of a company, product line, individual, or entity that promotes its service. Marketing attempts to encourage market participants to buy their product and commit loyalty to a specific company.

Why Is Marketing So Important?

Marketing is important for a few reasons. First, marketing campaigns may be the first time a customer interacts or is exposed to a company’s product. A company has the opportunity to educate, promote, and encourage potential buyers.

Marketing also helps shape the brand image a company wants to convey. For example, an outdoor camping gear company that wants to be known for its rugged, tough goods can embark on specific campaigns that embody these traits and make these emotions memorable to prospective customers.

What Is the Purpose of Marketing?

An important goal of marketing is propelling a company’s growth. This can be seen through attracting and retaining new customers. 

Companies may apply many different marketing strategies to achieve these goals. For instance, matching products with customers’ needs could involve personalization, prediction, and essentially knowing the right problem to solve. 

Another strategy is creating value through the customer experience. This is demonstrated through efforts to elevate customer satisfaction and remove any difficulties with the product or service.

B2B and B2C marketing

The two major segments of marketing are business-to-business (B2B) marketing and business-to-consumer (B2C) marketing.

B2B marketing

B2B (business-to-business) marketing refers to any marketing strategy or content that is geared towards a business or organization. Any company that sells products or services to other businesses or organizations (vs. consumers) typically uses B2B marketing strategies. The 7 P’s of B2B marketing are: product, price, place, promotion, people, process, and physical evidence. Some of the trends in B2B marketing include content such as podcasts, videos, and social media marketing campaigns.

Examples of products sold through B2B marketing include:

 

• • Major equipment

• • Accessory equipment

• • Raw materials

• • Component parts

• • Processed materials

• • Supplies

• • Venues

• • Business services

The four major categories of B2B product purchasers are:

 

• • Producers- use products sold by B2B marketing to make their own goods (e.g.: Mattel buying plastics to make toys)

• • Resellers- buy B2B products to sell through retail or wholesale establishments (e.g.: Walmart buying vacuums to sell in stores)

• • Governments- buy B2B products for use in government projects (e.g.: purchasing weather monitoring equipment for a wastewater treatment plant)

• • Institutions- use B2B products to continue operation (e.g.: schools buying printers for office use)

B2C marketing

Business-to-consumer marketing, or B2C marketing, refers to the tactics and strategies in which a company promotes its products and services to individual people.

Traditionally, this could refer to individuals shopping for personal products in a broad sense. More recently the term B2C refers to the online selling of consumer products.

C2B marketing

Consumer-to-business marketing or C2B marketing is a business model where the end consumers create products and services which are consumed by businesses and organizations. It is diametrically opposed to the popular concept of B2C or Business- to- Consumer where the companies make goods and services available to the end consumers. 

In this type of business model, businesses profit from consumers’ willingness to name their own price or contribute data or marketing to the company, while consumers benefit from flexibility, direct payment, or free or reduced-price products and services. One of the major benefit of this type of business model is that it offers a company a competitive advantage in the market.

C2C marketing

Customer to customer marketing or C2C marketing represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction. C2C companies are a new type of model that has emerged with e-commerce technology and the sharing economy.

Differences in B2B and B2C marketing

The different goals of B2B and B2C marketing lead to differences in the B2B and B2C markets. The main differences in these markets are demand, purchasing volume, number of customers, customer concentration, distribution, buying nature, buying influences, negotiations, reciprocity, leasing and promotional methods.

 

• • Demand: B2B demand is derived because businesses buy products based on how much demand there is for the final consumer product. Businesses buy products based on customer’s wants and needs. B2C demand is primarily because customers buy products based on their own wants and needs.

• • Purchasing volume: Businesses buy products in large volumes to distribute to consumers. Consumers buy products in smaller volumes suitable for personal use.

• • Number of customers: There are relatively fewer businesses to market to than direct consumers.

• • Customer concentration: Businesses that specialize in a particular market tend to be geographically concentrated while customers that buy products from these businesses are not concentrated.

• • Distribution: B2B products pass directly from the producer of the product to the business while B2C products must additionally go through a wholesaler or retailer.

• • Buying nature: B2B purchasing is a formal process done by professional buyers and sellers, while B2C purchasing is informal.

• • Buying influences: B2B purchasing is influenced by multiple people in various departments such as quality control, accounting, and logistics while B2C marketing is only influenced by the person making the purchase and possibly a few others.

• • Negotiations: In B2B marketing, negotiating for lower prices or added benefits is commonly accepted while in B2C marketing (particularly in Western cultures) prices are fixed.

• • Reciprocity: Businesses tend to buy from businesses they sell to. For example, a business that sells printer ink is more likely to buy office chairs from a supplier that buys the business’s printer ink. In B2C marketing, this does not occur because consumers are not also selling products.

• • Leasing: Businesses tend to lease expensive items while consumers tend to save up to buy expensive items.

• • Promotional methods: In B2B marketing, the most common promotional method is personal selling. B2C marketing mostly uses sales promotion, public relations, advertising, and social media.

My Other Post –

 

• • Accounting, GST Filling and Taxation