Marketing as a science has only existed for about a hundred years, but this does not mean that there were no laws of marketing before. Its individual elements can be clearly seen in any trading operation of both the fifteenth century and the first millennium BC. Since the main goal of trade is to satisfy consumer demand and gain profit, marketing can be called the theoretical basis of trade, which consists of certain elements, operates and develops according to established laws and principles.
Marketing concept
Marketing - from English. market (i.e. "market") means activities in the field of the sales market. However, in the economic complex, the concept of marketing has a broader meaning. Thus, marketing can be defined as a single complex of organizing the production and marketing of a product or service to meet the needs and requirements of consumers in order to make a profit.
From here you can deduce the main elements of marketing:
- Need.
- Demand.
- Product.
- Exchange.
- Deal.
- Market.
Basic Elements of Marketing
This is the foundation and theoretical basis of marketing. This is a kind of skeleton on which all trading activity rests.
Need
It is the need that underlies marketing. Without it, there would be no task to satisfy it. In this case, Maslow's pyramid is of great interest, proving that the nature of human needs is hierarchical in nature. What does it mean? To illustrate this with a simple example, it would come out something like this: if your consumer is a resident of Central Africa, suffering from hunger and thirst, then he is unlikely to be interested in your offer to buy the latest brand of iPhone.
Demand
Based on the need, demand is formed in society. If we give a dry definition, then it turns out that demand is a need backed up by the purchasing power of an individual.
Demand is a fickle value. It is influenced by such factors:
- Purchasing power of citizens.
- Product price.
- Irreplaceable goods.
- Availability of similar products on the market.
- Fashion.
According to the law of demand, the higher the price, the lower the demand.
Same and vice versa. According to the law of supply: the higher the price, the higher the supply.
With regard to certain types of goods, primarily essential goods, thisthe law works in reverse. In marketing, this phenomenon is known as the Giffen paradox. The essence of this paradox is simple: the higher the price of a product, the greater the demand and, accordingly, vice versa.
As the famous English economist John Maynard Keynes once said: "Demand creates supply." From here comes the next element of marketing - the product.
Product
In this case, this is a generalized concept that can be both a tangible thing and a service. Largely due to the activities of the mass media and other external factors of pressure on the psyche of the consumer in society, the demand for goods is artificially increased, which, in turn, leads to an increase in supply.
Exchange
The next very important element of marketing, which determines the quality of all operations performed early.
To make an exchange, the following conditions must be met:
- At least two parties are involved in the exchange.
- Both sides have equivalent value to trade.
- Both sides have the ability to communicate and transport their goods; otherwise, the exchange remains only a theoretical possibility.
- Both parties remain free to decide the exchange; forcing a purchase is not seen as a mutually beneficial transaction.
- Both parties must be confident in the expediency and desirability of dealing with each other. This is a very flexible factor.which depends on external pressure levers, primarily advertising.
Deal
The deal is the basic unit of measure in the marketing environment. Here, as well as in the exchange, a number of conditions must be met:
- A deal involves the presence of two or more value-significant objects.
- Both parties must verbally or in writing agree to its implementation.
- The time of the transaction must be agreed upon.
- The place of the transaction must be agreed upon.
- When a legal transaction, its terms are usually fixed and protected by law.
Market
Based on all the components listed above, a market segment emerges. In modern conditions, the market may not be a specific place. More often in marketing, a market is understood as a set of existing potential buyers of a product.
Elements of the Service Marketing Mix
The marketing mix is a set of controllable marketing factors that a firm uses to get a response from a target market.
The main elements of the marketing system are:
- Product (service).
- Price.
- Distribution methods.
- Incentive methods.
This scheme is also suitable for the service sector, but in this case it needs to be expanded and supplemented. When it comes to a service, the following factors are also taken into account:
- Employees andcustomers.
- Service environment.
- The process of rendering it.
Take a closer look at this scheme.
Service
This is a set of actions that are included in the proposed "package" of services, additional bonuses and subsequent guarantees. The ultimate goal of the service is to satisfy the needs of the customer. The completeness and quality of the service as an element of marketing must fully comply with the statements of the manufacturer, who backs up his words with any guarantees.
Price
In this case, the concept of "price" includes a price list, an indication of discounts, promotions, etc. In the service sector, price indicators can vary greatly depending on various factors: the season (if we are talking about vouchers), the completeness of the service (when it comes to massage), etc.
Distribution methods
Services are divided into mobile, tied to a specific place or can combine both characteristics. If the service is tied to a specific territory, the marketer should first of all think about choosing the right place for the company to work successfully and be profitable.
Incentive methods
This includes advertising, personal selling, sales promotion, etc. The future of the entire organization largely depends on a successful incentive policy.
Employees and customers
This database includes all those persons who in one way or another are involved in the provision and receipt of services. The main task of management is to organize a quality working environment for staff andestablishing contacts with the target market. For employees, the main weight is their professional qualities, skills, ability to communicate with customers and keep in touch with colleagues.
Service environment
This includes the overall aesthetic appearance of the place, the attractiveness of the interior and exterior environment, the appearance of employees and material support.
Process
The last element of service marketing is responsible for important indicators such as satisfaction of the interests of the consumer, the methodology and procedure for providing the service, quality control and the sequence of actions that determine the professional approach of the performer.
From here we draw a logical conclusion: the higher the indicators of these elements of the marketing mix, the more successful and profitable the enterprise operating in the service sector. Thus, the main goal of marketing is to increase the efficiency of trade and market relations.
