What is marketing
To put it literally, marketing in English “Marketing” means action on the market or market processes. Processes worth millions. Marketing has a lot of definitions, every third concept is cumbersome, but at the same time informative and capacious.
Let's face it, the title cannot be taken at face value, a thousand definitions of marketing cannot be provided, and there are an insane number of sources on websites with the same number of definitions. This is not so important and decisive, because there is only the main and useful information ahead. But! Below is a list of definitions that everyone chooses for themselves. Definitions were given by people who have made headway in this business; their experience is invaluable, as are their views on marketing. The first will be accessible to many, concise, we recommend using the first definition.
1.Marketing is an effort aimed at motivating a potential consumer to purchase a product.
2. Marketing is a set of institutions and processes for creating, positioning, displaying benefits and selling a product. The product provides value to consumers, clients, partners and the public at large. (American Marketing Association)
3. Marketing is the science and art of studying, creating and selling a specific value for the purpose of satisfying consumers and making a profit.
4. Traditionally, marketing has been a set of tools and practices by which a business connects with potential customers and engages them in an advertising campaign to convey the value of its product and sell it. Julie Bariley.
5.Marketing is the study of markets and influencing them in order to facilitate the tasks facing economic entities.
Implementation of demarketing
The demarketing trend encourages companies to implement this concept into their demand management strategies as follows:
- Managing existing deficits. Countries in the Middle East suffer from water shortages and must ration it to competing consumers. Frequent power outages in various African countries call for campaigns aimed at preventing wasteful energy consumption.
- Avoiding potential shortages. As we saw in Canada, the fishing industry had to be limited to preserve fish stocks. A gradual reduction in the rate of deforestation should be followed by active tree planting.
- Minimizing harm to people. It is necessary to take measures to combat smoking, alcohol, drugs, and foods high in sugar, salt and fat.
- Minimizing harm to nature or unique resources. Avoiding oversaturation of visitors to national parks and other popular tourist destinations.
Demarketing is necessary when limited supply products are in very high demand. For example, some countries have demarketed gasoline in the past, and it is likely that they will have to do the same with other forms of energy (such as electricity) if the supply situation does not improve. Water supplies are running out in many regions, so general demarketing will be needed here as well.
In recent years, demarketing has been used in a variety of situations: to persuade legislators to limit the number of hunting and fishing licenses, to reduce visitation to national parks, to persuade hotel guests to request fewer towels, to persuade homeowners to use less air conditioning and electricity, to encourage motorists to purchase more economical and environmentally friendly ones. Vehicle.
Kotler also notes that when trying to reduce the demand for something, there are several factors to consider. First, a demarketing campaign can make a product or service more desirable: banning a book, movie, or any other entertainment product often has similar consequences.
Secondly, it can lead to the emergence of a criminal class that will flourish in times of induced scarcity, as was the case during the Prohibition era in the United States, when liquor was banned. In many countries, laws against cannabis have increased the activity of gangs and other organized crime. Third, defenders of human liberties will complain about government interference with what they consider “civil rights.”
Demarketing poses a difficult choice for companies—especially in the public and non-profit sectors—between individual freedom and the public good.
Does demarketing limit our personal freedom? This technique works best when citizens agree that consumption of certain goods or services should be reduced.
For example, should the government ban or restrict the use of products such as weapons and other products that can cause harm or even death? In the US, politicians have banned the game of darts after the death of three children, but at the same time Americans can buy semi-automatic rifles and pistols.
Demarketing strategies may differ between private and public sector entities. Traditional marketing principles apply to social marketing, which is used to promote/suppress a social idea, cause, or behavior. Instead of talking about a product, social marketing makes an offer. Instead of discussing the placement of a product or service, it focuses on access to it. Instead of advertising, it spreads ideas through communication.
Demarketing is used to reduce demand and thus contrasts sharply with the goals of marketing, which encourages exchange. Thus, advertising that encourages people to stop using paper products at home and in the office to save trees is an example of demarketing.
Due to severe drought, places like California are limiting water use by offering tax incentives for using synthetic turf. The average home that switches to artificial grass saves up to 83,000 liters of water per year.
In Beijing, about 9,000 residents with respiratory illness are in hospital due to a lack of clean air. Therefore, city authorities are preparing to introduce new standards and rules regarding the environmental friendliness of vehicles. In the long term, this reform is expected to reduce vehicle emissions by 40-50%.
Other examples of demarketing include promoting healthy, high-fiber foods that help prevent obesity and diabetes, as opposed to foods and drinks that are loaded with fat, corn syrup, and unnatural ingredients.
Types of Marketing
One definition is not enough, and in principle a set of words is useless if the algorithm of operation is not clear. Types in marketing are divided specifically to relate to a specific situation. Each type is responsible for a different situation in the company. Read quickly, below is a noble, traditional list, which was formed from experience, trial and error:
Conversion Marketing
Let’s say the product “didn’t come in”, well, it’s not bought at all. Make an urgent effort to change negative demand for a product or service. Beginners sort through tactics, articles, notebooks. As a rule, a company decides to rebrand, reduces the price, and changes the promotion strategy itself.
Conversion Marketing
Incentive Marketing
There is nothing worse than the indifference of those to whom we plan to sell the goods. This is akin to a quiet death, including for the product. It's about marketing. The goal here is to arouse interest in the product, we use popular tools from practice: lowering the price at the start of the product, it is called bait, tastings from different product segments and our favorite promotions. Do you remember?
Incentive Marketing
Developmental marketing
As for this type, in this situation we are talking about creating demand for a product. Let’s take for example the super painful topic of smoking. Let’s say that the media part of people wants filters for cigarettes that are longer than just standard ones or wants to get less nicotine in tobacco, but the need or desire is not able to be satisfied, since there is no such product. But after demand comes supply, or vice versa, the trick of development marketing is to coordinate the interests of market development in the right direction.
Developmental marketing
Remarketing
It rarely happens that companies sell for five or ten years without a decline; demand for a product constantly increases and decreases, and this is normal. When the decline in demand goes beyond the acceptable line, this promises a terrible decline for the company and urgent measures are required. And, in short, such marketing revives demand when everything is going downhill.
Remarketing
Synchromarketing
The word “seasonality” often comes up. Seasonality is when in winter they sell children's sleds and luxurious fur coats for women, and in mid-September shoe stores have a display of autumn shoes and boots. It's the season. Let's return to winter fur coats, the demand for them fluctuates and a thousand devils, it is irregular. Therefore, buyers notice offers to buy a winter fur coat at a half-price discount in the summer and almost for nothing. The purpose of such marketing is to attract the buyer to purchase at an unplanned time, out of season, and therefore to balance irregular demand.
Synchromarketing
Supportive Marketing
Such marketing seems like a heavenly state for the company, since demand is equal to supply and the process seems to be smooth, but periodically the product needs a reminder, because the processes live in super mode for the time being, as you and I know. This is where supportive marketing comes to the rescue.
Supportive Marketing
Remember the picture: the Coca-Cola brand is popular and in demand, production and sales are established, the company includes the long-recognized Pepsi. The manufacturer often changes the curves and topography of bottles and cans, plays with the design of the packaging in order to clearly remind them of themselves. That's what support marketing is.
Demarketing
Here the situation is mirrored; companies always dream and strive for high demand. And in the company there is an issue that requires attention: meeting needs. There is a terrible lack of productivity of goods, we need more, the demand is too great, we can’t keep up.
Demarketing
I would like to say “I’d like your problem,” but this is a problem. Once again: mountains of demand and supply, which cannot keep up with the rush that has arisen, there are not enough goods, the horse gallops forward too quickly and you need furrows to hold the flow. In this case, marketers decide to artificially reduce demand, resort to demarketing, in order to have time to safely produce and sell the product, to develop gradually like many normal companies, as they say.
Adversarial Marketing
A brother of demarketing, but one detail remains - the demand for goods that are not approved by society is decreasing and the most obvious ones are tobacco, drugs and, of course, alcohol.
Adversarial Marketing
A powerful case that works on a large scale is the state, which initiates this type of marketing and applies prohibition, a ban on the sale of alcohol late in the day, after 23.00, for example, and sanctions on tobacco advertising.
Mass Marketing
The ideal picture of marketing is when we think through our product based on studying the target audience: we prescribe goals, functions and properties, set a focus, strategy, and set a pricing policy. Does mass marketing need such efforts? No! There is one product and okay, they put it into production and don’t worry about what audience it is for, they will find it themselves. Quite a bold and aggressive move.
Concentrated (targeted) marketing
The word “concentration” already implies attention to one thing and so it is, this type is ideal for small businesses. It has its own specific segment, identifying the needs of a narrow target audience, and meeting these needs. This type of marketing is also considered ideal in a highly competitive environment when working in a small business.
Differentiated Marketing
You can produce one product or service, focus on your audience segment, or you can be in one niche, but at the same time divide the product into categories. Let's say your company offers dairy products. But this concept is flexible, so there is not only milk, but also yogurt, kefir, cheese, cottage cheese, and so on ad infinitum or in a second circle. That is, you break the product into product segments. And now each product will have its own target audience, this is how differentiated marketing works.
But we can’t all sit in the classics and appeal only to them, the foundation has been laid, but the market is developing rapidly and is teeming with many new products and features, so we introduce you to modern types of marketing.
But we can’t all sit in the classics and appeal only to them, the foundation has been laid, but the market is developing rapidly and is teeming with many new products and features, so we introduce you to modern types of marketing.
Territorial marketing
Territorial marketing, also called regional, depends purely on the interests and desires of one territory, to which it is necessary to apply special specific methods and techniques.
Territorial marketing
Content Marketing
Too many people are being deceived for them to be able to wholeheartedly trust frequent offers, so people, distrustful creatures, need to:
- value
- confidence
- uniqueness
Content Marketing
There are many ways to attract an audience. Of course with the right content at the right time and place. The organization has a discount on the product. The audience doesn't know. The organization has 10 out of 10 criteria, the product is simply outstanding. The audience is again not in the know, but if they had written about it correctly and chosen the necessary channel for communication, the public would have known and bought it.
Everything we see, posts on social networks, videos, content on websites is all content marketing. All your client or potential buyer is looking for is information that needs to be correctly presented for a product or service.
Mobile Marketing
80% of the hundred still haven’t forgotten how annoying SMS spam used to circulate, which at least once arrived on everyone’s phone.
SMS messages were sent to everyone indiscriminately. Nowadays, thank heavens, the peak of popularity of this method has passed, now marketing has become scientific, starting in 2020. Now messages are sent only to those users who are interested in your product, and there are also a lot of mobile applications that offer advertising. Now mobile marketing is a set of promotion tools, they are implemented through mobile communications and devices.
Mobile Marketing
Network marketing
Network marketing or multilevel marketing, abbreviated as “mlm”, its essence lies in the creation of distributors, sales agencies, each agency can not only sell goods, but also attract partners.
Network marketing
It turns out that partners come to the company and promote the organization’s product, the partner makes a profit from the purchase of one buyer, and so on along the chain and in the end we get a real network.
Event marketing
You know, when you read information, there are tasty bits in it, and there are also tasty moments in work and in marketing too. We are talking about event marketing. This is an effective technique in which the sheep are safe and the wolves are well-fed, combining business with pleasure. This is a set of events and activities aimed at promoting a product or service.
Event marketing
Only this event is necessarily tied to a product, service, or company. For example, there is corporate marketing, when a company organizes parties and anniversaries and it is very appropriate to invite its partners. Such activities increase labor efficiency, build and maintain the image of the organization.
Trade marketing
Let's look at the word trade. Trading in English means trade, and trade marketing is an increase in sales of the same trade by influencing the supply chain. It's not particularly clear, but we'll explain. This type of marketing is a mass of tools and techniques, the action of which increases sales through a direct influence on the end consumer. That is, trade goes along a chain, and the consumer is its final point. Before you buy, you can touch, smell, and look. Here you have a tasting of sandwiches, presentations of new devices, and exhibitions.
Trade marketing
Cross marketing
What can cross marketing give us? Yes, a lot. By the way, don’t have a hundred rubles, but have a hundred friends, as they say, and then everyone will give a hundred.
Cross marketing
But now seriously, these are efforts, a whole cooperation of efforts of companies to promote their products. Close your eyes, relax and imagine you are a company that produces equipment, including phones. And without a minute, your company is a world leader and has almost surpassed the unfortunate Apple in technology, but for the final and enchanting touch you lack SIM cards that would be ideal for your product. You negotiate with a cellular operator and have a joint offer of a smartphone and a SIM card at the best price for the consumer in a cellular communication store.
Guerrilla Marketing
Sounds suspicious, right? It is also commonly called hidden. And indeed, the creation of rumors, incredible stories, effective legends about a brand, a product - this is what arouses interest in the brand’s product, this is what is called indirect selling. It is not necessary to shout about your product, how cool it is and foam at the mouth to list its advantages and functions. It’s enough to start a rumor that will spread from the mouths of public opinion leaders; buyers trust them more, right? And besides, the client makes a purchase with full confidence that this is his choice, and not someone else’s influence.
Viral Marketing
The virus is transmitted from person to person through contact in progression, with marketing it’s the same story, only the material is transmitted through reposts and likes. A tool for attracting consumers is independently distributed among users on the network. Such a tool provides wide coverage and rapid dissemination, but does not guarantee the correct interpretation of your advertising or any other message, viral marketing does not guarantee control and that the consumer will see the product behind your message, so keep in mind.
Viral Marketing
Internet Marketing
Perhaps the most extensive type of marketing these days and the most popular. It contains almost all standard tools along with the Internet. The key word is “Internet”. This area includes email newsletters, banner and contextual advertising, social networks, SEO optimization and traffic arbitrage. The task is still the same: promoting goods on the market, selling services, building relationships with the buyer that are beneficial for the company.
Internet Marketing
modern marketing
The top of the article should give you the concept. But then we will come up with very specific ideas for implementation in your company.
Get out of my way. I'm going to implement!
So. In order. Modern marketing includes the following types:
- Offline marketing;
- Territorial marketing;
- Content Marketing;
- Mobile Marketing;
- Network marketing;
- Event marketing;
- Trade marketing;
- Cross marketing;
- Guerrilla marketing (aka hidden marketing);
- Viral marketing;
- Internet Marketing.
And frankly, I have a suspicion that these are not all types and types of marketing that fit the concept of “modern”.
I say this with such confidence because even after years of studying a large number of sources, I still have not found an adequate structured list.
The nice thing, at least for me, is that we already have articles for most types of modern marketing.
With detailed explanations, as well as examples of application in business. To check them out, simply follow the links above.
However, for those areas where there are no articles yet, so as not to leave you with nothing, I will give successful, sometimes even ingenious implementation options.
Type 1. Territorial marketing
The concept itself appeared quite recently (in 2002), and it means marketing in the interests of the territory.
In simple terms, the main task of such marketing is to “sell” the territory to potential buyers in order to improve the lives of people living in this territory.
The most famous examples are advertising costs to attract tourist flow.
For example, Greece spends about 100 million euros annually on attracting tourists/advertising its resorts. One of our well-known territorial marketing projects is the Olympics in Sochi.
According to official data, about $52 million was invested in the construction and promotion of this facility, while income from the Olympics amounted to about $80 million.
Type 2. Mobile marketing
This is not even marketing, but something in between (direction) between offline and online marketing.
A way to promote goods and services using mobile devices. This includes SMS, mms, applications, instant messengers.
Let's consider the option with messages from various companies. For example, “Only until the 20th, 15% discount on our shoes.”
We can say that this type of marketing is dying, because people read SMS less and less.
But if you look at the messages not as standard SMS, but as instant messengers (whatsapp, viber, telegram), then everything becomes different. It is especially fashionable now to build communication through a chatbot.
Chatbot example
And one more practical example that you can also take into account. This is interaction through MMS, which many believe is dead.
But when one of our clients recently sent out a mailing to clients using MMS (a picture sent to the phone instead of text), we saw a different picture.
Moreover, the most interesting thing is that this kind of mailing comes directly from operators and you can target people according to several criteria.
For example, you can track a message by geolocation and, as a result, send it only to those subscribers who are currently located close to the store/office.
Type 3. Network marketing
Multilevel marketing (from the English multilevel marketing). The concept of developing sales of a product or service by attracting distributors, who can also attract distributors.
Moreover, the last attracted distributors will also have all the rights to sell.
The earnings of each distributor depend on the amount of commission from each new distributor attracted. Among the most famous companies selling products based on the network marketing principle are: Faberlic, Amway, Mary Kay, Avon.
Recently in Russia, network marketing has received a second wind. The rapid development of social networks helped him in this.
In particular, Instagram and one of the ways to promote it is mass following.
Type 4. Event marketing
I also call it creative marketing. Although in fact this is event marketing, which helps to promote goods or services through events.
Of the striking examples of such marketing, I immediately remember Alfa Future People (the main festival of music and technology), which is organized by Alfa Bank.
Here, for example, is how this event took place in 2020. The scope is, of course, amazing.
However, what if you, for example, are a small coffee shop? Very simple! Whenever possible, take part in various events and use event marketing to the maximum.
Day of the city? Hand out balloons with your coffee shop's logo to children passing by. By the way, here is an example that actually worked for our client. In advance for City Day, he prepared beautiful balloons with the logo of his coffee shop and distributed them free of charge to children, who circled with them throughout the center throughout the day.
Here is an example of a contact point. What’s most interesting is that after the end of the festive part, many families with balloons went to this particular coffee shop, where they were given regular customer cards for further communication.
Marketing Goals
For a general understanding, it is enough to know that the main goal of marketing is to satisfy the needs and requirements of the client, not to sell in any way, although sometimes this often happens, even if the company did not strive for this at all, tried to be creative and develop a sales strategy.
Marketing Goals
Of course, you can divide your goals into small segments:
1. High customer satisfaction
2. Wide range of products
3. Increase in the number of consumers
4. Making a profit
General information
It turns out that the goal of developmental marketing is to transform hidden (potential) demand into real demand, discover an unsatisfied consumer need and create an offer that would satisfy it.
IMPORTANT! Here we are talking about creating a completely new product that did not previously exist on the market.
Key tasks
Dissatisfaction with available products or services is at the core of this type of marketing. It is intended to solve the tasks and problems that life poses to certain sectors of the economy or to individual consumers.
The main objectives of development marketing are:
- Conducting market analysis and identifying hidden consumer needs.
- Creation of completely new products/services that could satisfy these needs.
In addition, you need to create a complex of advertising and promotion that helps inform the target audience about the product and encourage them to make a purchase.
Impact on demand
When considering the features of developmental marketing, one must take into account how demand for goods and services is formed. In fact, this process is influenced by quite a few factors:
- economic, which include prices, income of the population, degree of production development);
— demographic (population size, ratio of urban and rural residents, division by gender and age, migration);
— social (level of education, professional composition of the population, level of development of science);
— factors of nature and climate, traditions, living conditions;
- political situation, all kinds of emergencies, and so on.
IMPORTANT! The developmental type of marketing does not use artificial actions to generate demand, unlike other types of marketing. He works with needs that arise independently.
Marketing Objectives
There are not many goals, there shouldn’t be many of them, because as you know, ideally there is one and strong goal, but upon achievement, a lot of tasks arise and if you complete them, then the result is obtained, so let’s move on to the tasks.
For the full functioning of a company in the field of marketing, it is necessary:
— Research, analysis, assessment and forecasting of the state of real and potential markets
For example, a guitar manufacturing company might produce cases for musical instruments, amplifiers, and picks. Offer accessories at a lower price than in specialized stores. After monitoring the situation on the guitar market, you can notice the difference in supply and demand.
— Research of competitors’ activities
The task is extremely important, because your USP (unique selling proposition) depends on it. Having studied your competitors, offer the consumer the same product at a lower price, in a different color, with more functions, in a larger size, or vice versa, in a mobile scale - there are a lot of options depending on the product and the competitive environment.
— Sales of goods/services
— Formation of assortment policy
The client will go to a competitor if he sees that he has a richer assortment and that there is more to choose from. This is obvious, but it does happen; it is very important to put yourself in the client’s shoes and then some questions will disappear.
— Formation and implementation of the company’s pricing policy
— Research, analysis, assessment of the needs of real and potential buyers
— Marketing assistance in developing a new product/service
— Providing after-sales service
- Marketing communications
— Formation of a company’s behavior strategy
— Demand formation
— Identification of unsatisfied consumers and potential demand
Developmental marketing
Developmental marketing is used when there is potential demand for a product, but no real one. This means that customers have needs that cannot be satisfied by existing products or services in the market.
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Definition 3
Latent demand is a situation in the market when the willingness of consumers to purchase a product is limited by the existing supply in the market.
The task of marketing in the presence of latent demand is to identify this demand, assess its magnitude and satisfy it by creating effective goods or services that can turn potential demand into real demand. The main principles of developmental marketing are innovation and focus on specific consumer needs.
Marketing functions
Of the tasks and goals in marketing, it has already been noted 10 times that they rest on production and everyday life. They are fundamental and, as a result, the following functions are based on them:
Analytical
This function allows you to study the market in all details and aspects, its capacity and consumers. In addition, a thorough study of competitors is used, where would we be without them? Now everything is on the shelves: studying consumers, the market, the company itself, products, competitors and counterparties.
Production
This function is one of the most important and important; it allows you to optimize and organize the production of products or the process of providing services when new technologies appear and the quality of the final product improves. Therefore, you need to work hard and sweat to ensure the development of new technologies. Production of new goods, improving the quality of finished products and reducing the cost of goods.
Sales
Or production and sales, it doesn’t matter, the product is the core of marketing activities. Due to this function, the enterprise not only produces products, but also optimizes their sales. The work is optimized due to the combination of the work of the warehouse, logistics and transport department.
It is worth paying attention to the production of goods of market novelty, which can enable consumers to satisfy completely new needs, sometimes they are simply called “pioneer goods”, pioneers. The sales function includes organizing service, implementing sales and pricing policies, and expanding the product line.
Management and control
It is very important to competently and rationally use existing and future resources, control the operation of the enterprise, and organize business processes on it. The main sections in this function are: communication policy, organization and control of marketing activities.
Merchandising and distribution
In many cases, and in almost all cases, a company needs a product distribution system that could ensure delivery of goods to where they are needed, in the required quantities, on time and while maintaining the original quality.
Why is demarketing needed?
At times, the demand for some type of product becomes very active. Although this does not happen quite often, in this case it is demarketing that can convince or dissuade people from making a purchase or using something.
Demarketing (containing marketing) is used when demand for products significantly exceeds supply. In such a situation, it is advisable to increase the cost of products, conduct an advertising campaign to switch the attention of consumers to another type of product, and consider the possibilities of increasing production of products or develop an additional source of supply for products in which there is a shortage (import).
Why is demarketing needed?
After all, any company, even one operating in a highly competitive market and specializing in the production of traditional products, can find itself in a situation where the demand for its products significantly exceeds supply. The reasons may be a variety of factors. This includes illiterate planning of the company’s activities, and circumstances that are absolutely beyond its control. However, regardless of the type of reasons, only demarketing methods can cope with reducing demand and preventing a negative impression about the company's production capabilities .
Demarketing is a manufacturer's strategy in marketing activities aimed at reducing or temporarily inhibiting demand for products using various methods.
Marketing Models
Let's start with the most common one, which everyone is talking about, on the coordinates of which much is built, and this is the 4P model.
Four P model
It was founded by Theodore Levitt, an American economist and professor at Harvard Business School. Why is it called that? It is logical that all words begin with the letter P and let’s decipher them:
Product | Place | Price | Promotion |
Product | Place | Price | Promotion |
We’ve sorted out the definitions, but why is such a system of four Ps needed?
The model will help to analyze the four parameters of the company's work and helps to identify strengths and weaknesses and direct the company's marketing policy in the right direction.
Product – the product range must be balanced. Ask yourself the question: are all the products of your enterprise really needed, which ones and how many. What functionality, warranty, design, brand, reliability, quality, size are the indicators that need to be analyzed. The Product sector answers all these questions.
Place – well-calculated sales of products is the basis for the success of product distribution. The consumer must receive the goods in a comfortable place, in a place that is comfortable for him, quickly and efficiently. The more optimal the sales channels, the more the costs of organizing sales are reduced. By the way, it is at the Place stage that many organizations sag or at least have problems with it. The question immediately arises: will there be product distribution through intermediaries or an independent call, how many channels need to be used and we must not forget about merchandising, that is, the proper display of goods on the shelf, because this moment has a strong influence on whether the consumer will buy the product or not even pay attention.
A few words about the price. Let's look at what the price tag consists of. From the costs of the manufactured product, the volume of planned profit, the psychological factor. You can stop at the average price in the market, or you can stop at the segment of noble quality and service, or sell cheaper. To understand whether it is worth reducing the price of a product, it is necessary to conduct a survey among buyers about how many goods they are willing to buy at different cost levels.
Promotion - this part of the coordinates will tell you about the product, show you, depending on the product, let you taste it, try it through different information channels. As for the methods, marketers are running wild: sales, promotions, etc.
Model 3M
It consists of three words according to the same logic as the four letters P. The model is divided into three components: market, message and channel. If you look at the original, it’s market message media.
Model 3M
The market is all the company’s clients and potential ones too.
The message is the information that the organization intends to convey to the target audience.
A channel is the medium through which an organization will send a message to the market.
And thus we can build a logical chain: A competent message - in a competent way - to competent people.
PEST analysis
This is a marketing tool designed to identify political, economic, social and technological aspects of the external environment that affect the company's business. It is used to analyze the external and macro environment of the organization. Such analysis is a long-term planning tool. They are always drawn up for 3-5 years, but no more, then they are updated. The point is to identify how resources are distributed at the state level according to the factor-enterprise scheme.
SWOT analysis
This is a method of strategic planning, it identifies factors of the external and internal environment, here SWOT is divided into four components, yes, again an abbreviation, again decoding.
SWOT analysis
S – strengths, W – weakness. Here, strengths are identified, factors in the internal environment of the object being studied are identified, which the object itself is likely to influence.
O – opportunities, T – threats. Abilities and threats - here, on the contrary, environmental factors come into play, what influences the object from the outside, this also applies to threats.
Porter's 5 forces
Let's move on to the five great powers of Porter, not Potter!
Unlike SWOT analysis, which is not able to see special cases, this analysis can identify them. To be honest, in a matter of hours the analysis helps to understand the level of economic competition and tells you how to avoid it.
Porter's 5 forces
The model is based on the theory of Michael Porter, who says that there are 5 forces that determine market potential. Porter called the forces under pressure and if these criteria are not taken into account, the risk of falling down in a competitive environment looms. Let's take a look at the filling itself:
1. Buying pressure;
2.Supplier pressure;
3. Pressure from existing competitors;
4. Pressure from new competitors;
5. Pressure of new substitute products.
Porter seems to be hinting with his model: the less pressure from the outside, the more we earn. That's all the magic.
The final model is the BCG matrix
A tool for strategic analysis and planning in marketing. And here it’s even more interesting: the model contains a quartet of non-standard names for product classification.
The final model is the BCG matrix
1. "Stars"
Companies shine, the bourgeoisie flourishes when a product has a high growth in sales volume and market share. It is important to preserve and increase part of the market. Stars bring a very high income, but even if the product is attractive, its net cash flow is quite low because it requires significant investments to ensure a high growth rate.
2. "Cash cows"
In this case, the products also have a huge market share, but there is a low sales growth rate. Such friends need to be protected and taken under maximum control. Their charm is that they do not require additional investments and at the same time provide a good cash income.
3. "Dogs" or "lame ducks"
I would like to say stooped dogs, but we can do without it, they already have a bad life. There is nothing to boast about here, the growth rate is low, the market share is also low, and the product has a low level of profitability. Such a product requires a lot of attention and needs to be gotten rid of.
4. "Wild Cats"
These guys have low market share but high growth rates. These guys need to be studied. Their prospects are ambiguous and it is unknown how the card will fall; they can become both stars and dogs. If there is a possibility of transferring to the stars, then you need to invest, and if not, get rid of it.
Adversarial Marketing
MARKETING
1. ESSENCE AND DEFINITION OF MARKETING.
Marketing is an organizational function and set of processes of creating, promoting and providing a product or service to customers and managing relationships with them for the benefit of the organization.
A goal should be understood as a certain quantitative or qualitative result that should be achieved by a certain point in time.
Marketing objectives
1. Market - gaining a certain share or identifying promising markets;
2. Marketing - creating the image of the company, measures to create a favorable attitude towards the company, sales volume, profit volume, competition;
3. Managerial - improving the management structure;
4. Providing - pricing policy, sales promotion, consumer characteristics of the product;
5. Tests.
Principles of Marketing. Formulated on the basis of the real behavior of people, enterprises and organizations, the principles of marketing arising from its essence are the foundation of production, economic, financial and commercial activities. The main ones are:
1. Focus on a clear commercial result, which for a specific enterprise can be expressed in capturing a certain market share, taking into account deadlines, resource support and responsibility.
2. An integrated approach to achieving set goals based on needs analysis, market forecasting, product research, advertising, and sales promotion.
3. Maximum consideration of the conditions and requirements of the selected market with simultaneous targeted impact on it.
4. Long-term goals aimed at a product that has fundamentally new consumer properties and ensures long-term commercial success.
5. Adaptive entrepreneurship, ensuring a quick and effective response to changes in the external environment and the manifestation of initiative as a form of management of production and sales of products.
Marketing functions.
Analytical, related to the analysis of the external and internal environment of the company; studying buyers, competitors, studying suppliers and intermediaries; analysis of goods and services.
2. production and sales - organizing the development of new products; their production, sales, and after-sales service; development and implementation of pricing policy; demand generation; sales promotion.
3. management and control - marketing management; strategic and tactical planning; control of marketing decisions; development of proposals on all aspects of marketing activities.
The modern concept of marketing is built on two main principles: firstly, on meeting the needs and wants of people and, secondly, on making an exchange.
The marketing concept states that the key to achieving organizational goals is to identify the needs and wants of target markets and provide the desired satisfaction in ways that are more efficient and more productive than those of the competitor.
Development of a marketing concept usually includes the following steps:
— implementation of strategic analysis of the internal and external environment;
— determining the goals of the enterprise and the goals of marketing activities;
— justification of the marketing strategy;
- selection of tools for marketing activities in order to achieve planned results.
2. CONCEPT OF MARKETING MANAGEMENT.
Evolution of the Marketing Concept
Years | Concept | Leading idea | Basic tools | the main objective |
1860-1920 | Production | I produce what I can | Cost, productivity | Improving production, increasing sales, maximizing profits |
1920-1930 | Commodity | Production of quality goods | Product policy | Improving the consumer properties of goods |
1930-1950 | Sales | Development of a sales network and sales channels | Sales policy | Intensification of sales of goods through commercial promotion and sale of goods |
1960-1980 | Traditional Marketing | I produce what the consumer needs | Marketing mix, consumer research | Meeting the needs and demands of target markets |
1980-1995 | Social and ethical marketing | I produce what the consumer needs, taking into account the requirements of society | Marketing mix, study of the social and environmental consequences of the production and consumption of manufactured goods and services | Satisfying the needs of target markets while preserving human, material, energy and other resources and protecting the environment |
From 1995 to present | Engagement Marketing | I produce what satisfies consumers and business partners | Methods of coordination, integration and network analysis, marketing mix | Satisfying the needs of consumers, the interests of partners and the state in the process of their commercial and non-commercial interaction |
1. Production concept
(production-oriented concept)
· Consumers give preference to accessible and inexpensive goods.
· Relevant for business during an economic downturn.
· The main problems of firms are related to the acquisition of factors of production and the financing of this production. There is absolutely no competition. Enterprises are focused on achieving production efficiency through cheap raw materials, lower prices and mass distribution.
2. Product concept
(product-oriented concept)
· The consumer gives preference to products with the highest quality.
· Relevant during the period of economic and technological recovery. More goods enter the market than the consumer can purchase.
· Sales are becoming a problem, despite the increase in advertising. Improving product quality by creating new product samples.
3. Sales orientation
(for sales)
· Consumers will never voluntarily buy a company's products, so the company must pursue an aggressive sales policy and intensive promotion of goods to the market.
· For companies with a limited market segment.
· The company's goal is to focus on sales, but not the production and sale of goods that the market needs.
· Thus, marketing is aimed at increasing sales by increasing advertising and sales efforts (a variety of means and methods of sales).
4. Marketing itself
(In the mid-50s of the 20th century)
· In sales orientation, management's attention is focused on the needs of the seller, and in marketing, on the needs of buyers.
· When focusing on the consumer, marketing tools become diverse: advertising and sales methods, pricing, ensuring accessibility.
5. Socially responsible marketing
(humanistic and ecological)
· Social and ethical issues are taken into account in business. Proponents are based on achieving a certain balance between the firm's profit, customer satisfaction and public interest.
· A third party appears - society and responsibility to them. Responsibility for false information in advertising.
Types of marketing.
There are many classifications of types of marketing. In Fig. One of them is given, where the criterion for determining the type of marketing is the nature of demand.
Conversion Marketing
Conversion marketing is associated with the presence of negative demand, when all or most of the most important segments of the potential market reject a given product or service. Negative demand is a common phenomenon in the market, affecting many goods and services. For example, many consumers exhibit negative demand for various medications; vegetarians are carriers of negative demand for meat, etc. The task of marketing management in the event of negative demand is to develop a plan that will contribute to the emergence of demand for the relevant goods, and in the future, its development to a level commensurate with the supply of goods.
Incentive Marketing
There are a number of goods and services for which there is no demand. In this case, we are not talking about the manifestation of negative or positive emotions in relation to the offer, but about the complete indifference or disinterest of consumers. Demand may be absent in certain cases: when well-known goods are perceived as having lost all value (for example, glass bottles); when goods are perceived as having value, but not in a given market (for example, boats in areas where there is no water; sleighs where there is no snow); when there is no demand for new products appearing on the market because the market is not prepared for their appearance (examples are souvenirs that buyers will buy only after seeing them on the display, but which they usually do not plan to purchase).
Developmental marketing
Developmental marketing is associated with the emerging demand for goods. Potential demand occurs when a certain part of consumers feels the need to purchase some good, which, however, does not yet exist in the form of a specific product or service. Thus, many smokers dream of cigarettes that do not contain substances harmful to the body. The process of transforming potential demand into real demand is the task of developmental marketing, and it is necessary to be able to determine potential demand and coordinate all marketing functions in the interests of developing the market in the right direction.
Remarketing
All types of goods and any period of time are characterized by situations of declining demand. When the demand for a given product or service is below the level of the previous period, then in the absence of measures aimed at reorienting the market and changing supply, it may decline even further in the future. Declining demand needs to be revived. This is the task of remarketing, the goal of which is to create a new life cycle for a product that is disappearing from the market. Remarketing is the search for new marketing opportunities to match product offerings to their potential markets.
Synchromarketing
Very often, a company is satisfied with the general level of demand for its products, but it is not satisfied with the state of demand for any specific product over a certain period of time. Demand may significantly exceed production capabilities or, conversely, the volume of production of a given product may be greater than market needs. Fluctuating demand is a condition in which the structure of demand is characterized by seasonal or other fluctuations that do not coincide in time with the structure of supply of goods. Thus, many types of urban passenger transport are underloaded most of the working time, but their number is clearly insufficient during peak hours. In such cases, the level of demand can be changed by switching incentives or as a result of advertising and promotional activities; in other cases, the level of demand can be changed only as a result of many years of activity aimed at changing people's habits.
Supportive Marketing
The most desirable situation is the presence of full demand, which occurs when the level and structure of demand for goods and services fully corresponds to the level and structure of supply. However, even at such a moment, you should not limit yourself to superficial marketing. The level of demand is affected by two factors: changing needs and the appearance on the market of similar products from other companies.
When there is full demand, the marketer's task is to apply supportive marketing. It requires maintaining a sufficient level of demand in daily marketing activities, as well as constant attention to those factors that may change the level of demand. An employee responsible for conducting supportive marketing must first solve a number of tactical problems related to implementing the correct pricing policy, maintaining the required sales volume, stimulating sales activities in the right direction, and controlling costs.
Demarketing
Sometimes the demand for a product or service significantly exceeds supply. Excessive demand is a condition in which demand exceeds the level of production possibilities, commodity resources. It may also be associated with the high constant popularity of individual goods and services. The problem of reducing excessive demand is solved with the help of demarketing in various ways: they increase the price of the product, stop stimulating sales, etc.
Adversarial Marketing
There are goods and services, the demand for which can be regarded as irrational from the point of view of the well-being of the consumer and society due to the negative consumer properties of the corresponding goods. Classic examples of such goods are alcoholic beverages and tobacco products. The goal of eliminating or reducing demand for such products forms the basis of countermeasures marketing. If demarketing is associated with reducing demand for a good-quality product, then counter-marketing presents the product as undesirable and harmful.
3. MARKETING ENVIRONMENT
The company's marketing environment is a set of entities and forces operating outside the enterprise and influencing the enterprise's ability to establish and maintain successful mutually beneficial cooperative relationships with target customers.
The external marketing environment of a company consists of a microenvironment and a macroenvironment . It includes all objects, factors and phenomena that are outside the enterprise, which have a direct impact on its activities. The firm's microenvironment includes the firm's relationships with suppliers, intermediaries, customers and competitors. The macroenvironment of a company is represented by factors that are more common to most companies, mainly of a social nature. These include factors of demographic, economic, natural, political, technical and cultural nature.
The internal environment characterizes the potential of the enterprise, its production and marketing capabilities. Internal environment of the organization -
This is the environment that determines the technical and organizational conditions of the organization and is the result of management decisions. The organization analyzes the internal environment in order to identify the strengths and weaknesses of its activities. This is necessary because an organization cannot take advantage of external opportunities without having certain internal capabilities. At the same time, she needs to know her weak points, which can aggravate external threats and dangers.
The essence of enterprise marketing management is to adapt the company to changes in external conditions, taking into account existing internal capabilities.
Macro environment
Political factors characterize the level of stability of the political situation, the state’s protection of the interests of entrepreneurs, its attitude towards various forms of ownership, etc.
Legal - characterize the legislative system, including regulatory documents on the protection of the natural environment, standards in the field of production and consumption of products. This also includes legislation aimed at protecting consumer rights; legislative restrictions on advertising and packaging; various standards affecting the characteristics of manufactured products and the materials from which they are made.
Scientific and technical - provide advantages to those organizations that quickly adopt the achievements of scientific and technical progress.
Cultural factors sometimes have a major influence on marketing. Consumer preferences for one product over other products can only be based on cultural traditions, which are also influenced by historical and geographical factors.
Natural - characterize the presence of natural resources and the state of the natural environment, which both the organization itself and the subjects of the micro-external environment must take into account in their economic and marketing activities, since they have a direct impact on the conditions and possibilities for conducting this activity.
Demographics - Demographic changes can have a significant impact on companies. The declining birth rate in most Western countries has a clear impact on sales of baby products and ultimately impacts on the provision of public pensions as retirees must be supported by a shrinking number of working-age people.
Economic factors of the marketing macro environment (purchasing power of the population, interest rate on loans, unemployment rate, etc.). Economic factors of the marketing macro environment determine the purchasing power of the population and the proportions of income distribution, depending on the sectoral structure of the economy.
Microenvironment
Suppliers. These are firms and individuals who provide the enterprise with the material resources necessary for the production of specific goods or can seriously influence the marketing activities of the enterprise. An increase in prices for purchased materials leads to an increase in prices for finished products. Shortages of certain materials or strikes can disrupt the regularity of deliveries and the schedule of shipment of goods to customers. As a result, sales opportunities will be missed and the company's reputation will be damaged.
Intermediaries are firms that assist a company in promoting, marketing and distributing its products to its clientele. These include resellers, merchandising specialists, marketing services agencies and financial institutions.
Competitors are firms or individuals that compete, that is, acting as rivals in relation to other business structures or entrepreneurs at all stages of the organization and implementation of business activities. Competitors, through their actions in the market, when choosing suppliers, intermediaries, and consumer audiences, can influence the results of the activities of a rival enterprise, its position and advantages in competition. Knowing the strengths and weaknesses of competitors, a company can evaluate and constantly strengthen its production and marketing potential, goals, current and future business strategy.
The clientele is determined by the type of competitive market in which the firm operates. In addition to those listed in paragraph 1.1, there is a competitive market of government institutions, where goods are purchased either for their subsequent use in the public sector, or for the transfer of goods to poor citizens, and the international market, when foreign consumers act as buyers.
Audiences are organizations or groups of people who have a real or potential interest in the company or influence its ability to achieve its goals.
There are seven types of contact audiences:
1. Financial circles are banks, investment companies, shareholders who help the company provide itself with capital.
2. The media are the press, television, radio, Internet. Firms are interested in the goodwill of this contact audience.
3. Contact audiences of government agencies are government agencies that regulate commercial activities in the region and the country as a whole.
4. Public organizations for the protection of consumer rights, environmental protection, protection of the rights of national minorities, etc.
5. The local community is the surrounding residents and community organizations.
6. Society as a whole. The general public does not act as an organized force, but forms an attitude towards the company and influences its image.
7. Internal contact audiences are members of the company’s board of directors, managers, and employees.
The contact audience can either facilitate or oppose the firm's efforts to serve markets.
Internal environment
Production:
volume, structure, production rates;
product range; availability of raw materials and materials, level of reserves, speed of their use; available equipment fleet and the degree of its use, reserve capacity; production ecology; quality control; patents, trademarks, etc. Finance is
an indicator that allows you to see all the production and economic activities of an enterprise.
Financial analysis allows you to reveal and evaluate the sources of problems at a qualitative and quantitative level. Marketing covers all processes related to production planning and product sales, such as: manufactured goods, market share, distribution and sales channels, marketing budget and its execution, marketing plans and programs, sales promotion, advertising, pricing. Culture and image of the enterprise: factors that create the image of the enterprise;
a high image of an enterprise allows you to attract highly qualified workers, stimulate consumers to purchase goods, etc. R&D – the desire for technical novelty of a product to the detriment of the market conditions of goods
4. ANALYSIS OF CLIENT MARKET BEHAVIOR
Market is a set of economic relations based on regular exchange transactions between producers of goods (services) and consumers. Exchange usually occurs on a voluntary basis in the form of an equivalent exchange of goods for money (trade) or goods for goods (barter). With free access to the market for both producers and consumers, exchange occurs under competitive conditions.
Market classifications:
1) By territorial basis: Ø local Ø regional Ø national Ø global | 2) By subjects entering into exchange: Ø consumer market Ø producers Ø intermediate sellers Ø government agencies |
3) By objects of exchange: Ø markets for means of production Ø market for goods and services Ø financial market Ø market for intellectual property | 4) Taking into account the assortment: Ø closed Ø saturated Ø mixed |
5) According to the degree of compliance with the rule of law: Ø legal (official) Ø illegal (shadow) Ø black (in some dictionaries “black” = “illegal”) | 6) According to the degree of saturation: Ø equilibrium (demand = supply) Ø scarce (demand > supply) Ø excess (demand < supply) |
7) According to the degree of development of economic freedom: Ø free Ø regulated | By degree of competition: Ø competitive (perfect competition) Ø with monopolistic competition Ø oligopolistic Ø monopoly |
9) By nature of sales: Ø wholesale Ø retail |
The consumer market (BtC) is a set of relationships that arise between sellers and buyers of works, services, goods, on the one hand, and their consumers, on the other; These are relations regarding the demand, supply and sale of goods and services for individual consumption, developing in trade, public catering, and in the field of paid services. The consumer market, its functioning, is determined by a system of socio-economic and organizational relations regarding the production and sale of consumer goods, socio-economic support for the livelihoods of individual social groups and segments of the population of a particular territory. The consumer market serves mainly the sphere of personal consumption of the population. It is a complex system.
The composition and structure of the consumer market can be classified according to:
Ø regional basis;
Ø purpose (market of food, non-food products, cultural and household goods and household goods);
Ø channels for selling goods.
The consumer market is characterized primarily by the share of food and non-food products in its composition. In turn, each of these components of trade turnover is divided into separate product groups. For example, food products include bread and bakery products, meat and meat products, confectionery products, etc. The detailed structure of each group represents an assortment of products (for example, Ukrainian bread, Minsk bread, etc.).
The business market (BtB) is a collection of individuals and organizations that purchase goods for use in further production, resale or redistribution. Enterprises are the market for raw materials, components, devices, auxiliary equipment, supplies and services.
Consumer behavior is actions directly related to the acquisition, consumption of goods and services, and their disposal, including the decision-making processes that precede and follow these actions. This is also the consumer’s response to a set of conditions that shape his motivation for the object and purpose of purchase, time, place of purchase, organization of sales and service.
Consumer analysis is an analysis aimed at studying tastes, differentiating the structure of needs by consumer groups, identifying unsatisfactory needs, and motives for consumer preference for certain products.
Consumer behavior changes significantly depending on what product he buys. The more difficult it is to make a purchasing decision, the more participants are required and the more cautious the consumer behaves. There are four types of purchasing behavior. Depending on the consumer behavior model, it is necessary to choose the most profitable marketing strategy.
Four types of purchasing behavior:
1
Marketing concept
The concept is always the content, purpose and commitment of the company to work, its views and philosophy. The concept also applies to marketing. In marketing, a professional web of views, provisions and tools has developed, all for the sake of one thing - achieving the goal. And we already know that the goal of marketing is to make a profit from meeting the needs of the end consumer.
Marketing concept
In the same spirit as functions, tasks, concepts can be broken down into components:
Social and ethical marketing concept
The essence of the concept is that the company must determine the needs, interests and requirements of the target markets. And then it must determine the highest value for the consumer in a more effective, better way than its competitors. All of this should impact the client's well-being.
How did the social and ethical concept appear and form? Whatever they say, marketing is still focused on the here and now, that is, on the immediate needs of the market. And it does not take into account long-term needs, this is the difference between marketing and other fields of study. Fast food restaurants should be tasty, inexpensive, and fast. Do you feel it? There is no reputation, no building of bridges of trust, there is now. Only only.
Social and ethical marketing concept
But there will be opposition to everything, in this story these are health organizations, these are consumers themselves, who believe that such food is far from healthy. Behind the opposition comes a conflict, which is why a social and ethical concept arises; it talks about the desire to achieve a balance between three goals: company profit, the interests of society and the needs of the consumer.
Product improvement concept
If products had not developed, we would have been mired in discontent a long time ago, admit it. Life without development is worthless. Let's return to our goods, production must develop its product and its quality, this is natural, so consumers are accustomed and will buy products of the highest quality, with the best characteristics and long, reliable operation. The organization's goal is to focus attention and effort on improving its products.
Production Improvement Concept
But if a product is new, improved, but there is no access to it, it is in a state of shortage and high price, then sometimes such happiness is worthless. The consumer will willingly buy a product that is widespread and affordable. The secret of this action is to concentrate efforts on establishing production and distribution systems. The concept is especially important in situations of high demand with lower supply and high cost of goods.
Production Improvement Concept
Market activity concept
Let's say, in order to achieve a goal, the company must have a clear understanding of meeting the needs and wants of target consumers.
Concepts for Intensifying Business Efforts
The fact is that consumers will not buy a product in sufficient quantities unless they are periodically encouraged to do so. This is the concept used: constant efforts in sales and promotion. It is especially constantly applied to everyday goods that the buyer purchases without hesitation. In this area, all schemes have been brought to perfection with the aim of strictly selling the product.
Concepts for Intensifying Business Efforts
Types of marketing depending on the nature of demand
State of demand (character) | Target marketing | Tools | Type marketing |
Negative: characterizes the state of the market when a significant part of it does not like the product | Change negative consumer attitudes to positive ones | Product redesign, price reduction, more effective promotion | Conversion marketing |
Lack of demand | In the absence of demand, find ways to link the inherent benefits of the product with consumers and the interests of potential consumers in order to change their indifferent attitude towards the product, and, if possible, overcome the causes of such situations | Sharp price reductions, increased advertising and other methods of product promotion | Incentive marketing |
Implicit, in which many consumers in the market are not satisfied with existing products (implicit) | Assess the size of the potential market and develop effective products that can turn demand into reality | Development of products that meet new emerging needs, transition to a new qualitative level of their satisfaction, use of advertising | Developmental marketing |
Falling | Restoring demand in the event of a decline based on a creative rethinking of the previously used marketing approach | Searching for new opportunities to revive demand: giving the product new properties, entering new markets | Remarketing |
Irregular demand characterizes seasonal, daily and even hourly fluctuations in demand | Search for new ways to smooth out fluctuations in demand, alternate, pre-planned transition to various geographical and other market segments with subsequent return. | Flexible prices, promotion methods | Synchronizing marketing |
Full demand (when the organization is satisfied with sales volume) | Maintaining the existing level of demand, taking into account changes in the system of consumer preferences and increased competition | Changes in packaging, product colors, minor (psychological) price changes | Supportive marketing |
Excessive (its value exceeds the capabilities of the organization) | Finding ways to temporarily or permanently reduce demand in order to eliminate a number of negative market phenomena | Significant price increases, cessation of advertising work, sometimes rights, licenses, know-how, etc. are transferred. other companies | Demarketing |
Irrational (on products that are harmful to health or irrational from a social point of view) | Convince people to stop eating unhealthy foods | Sharp price increases, restriction of product availability due to defamatory information | Adversarial Marketing |
Let us characterize the types of demand in the market and the corresponding types of marketing.
1. Negative demand
(demand is negative) - it is necessary to create demand - in this case they use
conversion
(transformative)
marketing
(conversion - from Lat. - transformation, change).
When demand is negative, all or the vast majority of buyers in a given market reject the product. Negative demand can occur in relation to the goods of a certain company if it has released an unsuccessful product that has caused general displeasure.
The task of marketing is to identify why the market is opposed to a given product and take appropriate measures through: modifying the product, lowering prices and applying an appropriate incentive system.
2.
The task of converting
zero demand
(lack of demand) - in this case,
incentive marketing
.
The marketing manager is dealing with a market in which there is no demand. In this case, 3 options are possible:
a) a fundamentally new technological line was launched, on which a product is manufactured that is completely unknown to us in terms of its consumer properties. And of course, buyers will be indifferent to this product.
Task: to promote the product (use not only advertising, but also the media and public relations).
b) the product is good (may be in short supply), represents use value, but in a completely different market. For example, they brought VCRs to those regions where there is no television station.
The task is to change the sales market.
c) buyers consider the goods offered to have completely lost their value (for example, brands of radio equipment that have been discontinued and for which spare parts are not made).
The task is to change the conditions of implementation. The purpose of promotional marketing is to offer this radio equipment as spare parts to those who own this equipment.
3. Discovery marketing
associated with a state of
implicit (hidden, latent) demand
, when a significant number of buyers feel a strong need for something that does not yet exist in the form of a real product (for example, there is a large hidden demand for harmless cigarettes, more economical cars). This type of demand provides an opportunity for new product development. The marketing manager here must invest in market research and product development to come to market with an offering that promises to satisfy the tacit demand.
4. Falling demand.
Sooner or later, any enterprise will face a drop in demand for a product, which is associated with the product life cycle (PLC).
It is necessary to restore demand - we must use remarketing
(re is a prefix denoting renewal, restoration).
The task of marketers is to find new opportunities to revive demand, i.e. in giving the product market novelty, reorienting the company to new markets, etc.
5. Irregular demand
(demand fluctuates) - it is necessary to stabilize demand - it is necessary to apply
synchromarketing.
We are talking about synchronizing the movement of demand and the movement of supply.
Fluctuating demand occurs, as a rule, when trading seasonal goods, for example, agricultural products (equipment). But not only. For many businesses, sales fluctuate on a daily or even hourly basis, which causes problems of underloading and overloading. For example, most public transport is unloaded during the daytime lull, and cannot cope with traffic during peak hours.
The task of marketing is to find ways to smooth out fluctuations in the distribution of demand over time using flexible prices, incentives and other incentive techniques.
In some cases, the temporary structure of demand can be easily restructured by simple changes in economic incentives and through promotional efforts; in others, many years of effort to change may be required.
6. Full demand.
Classic situation: demand equals supply.
In other words, demand exactly corresponds to the company’s ability to stabilize demand - use supporting (preserving) marketing
.
When demand is as expected, competitors can reduce it by changing our customers' needs or by offering the same product that satisfies the same needs, but on better terms: better prices or more attractive service. In order to counteract negative phenomena, the head of the marketing service must especially carefully implement pricing policies, purposefully provide advertising work, and carefully check the feasibility of costs for marketing operations.
7. Excessive demand
(demand is excessive) – it is necessary to reduce demand – it is necessary to apply
demarketing
In this case, the company’s capabilities are limited. The inability to satisfy high demand leads to a number of negative phenomena, the most unpleasant of which is the emergence of negative emotions associated with the name of the company and its trademark. In particular, there is an opinion that the company either cannot or does not want to satisfy demand completely.
Based on demarketing goals, they increase prices, reduce or even stop advertising work.
But because potential and unsatisfied demand means the loss of customers and possible money; in some cases it turns out to be profitable to sell a license to foreign industrialists for the right to produce these products under the trade name of the licensor company.
8. Irrational demand
(irrational) it is necessary to reduce demand to zero -
counteracting marketing must be applied.
Demand is defined as irrational from the point of view of the well-being of society as a whole and its members as individuals when consuming a particular product (alcoholic beverages, tobacco products, narcotic drugs, firearms, pornographic films).
Counter-marketing is associated with the cessation of production of a product, its withdrawal from the distribution network and the conduct of a propaganda campaign with a clear focus against this product and its consumption.
The task of marketing is to limit the availability of goods, to convince lovers to give up their habits by disseminating frightening information.
Work aimed at eliminating demand for a product is called countermarketing.
The choice of the type and task of marketing at the current moment is carried out on the basis of an analysis of the country's sales markets, research of effective demand, and determination of forecasts for market development.
Marketing Strategies
The word “tactics” is known, and “strategy” is also known. Let's explain the difference just in case. The tactics are one-time, to be honest, but the strategy is long-term. Strategy is clear planning ahead, into the future.
In the world of marketing, such an area is honorable if the organization wants to live and not just live, but happily ever after. But since we are dealing with organizations, production and companies, the marketing strategy is an element of the enterprise’s work plans. It is logical to assume that such an element is aimed at developing, manufacturing, and bringing the product to consumers. Of course, each enterprise has its own strategy, below is a list of the main strategies:
1. Improving the organizational structure;
2. Increase in business activity (penetration into a new market; introduction of a new product into an old market; penetration of market novelty into new market segments with a product, etc.);
3. Decrease in business activity (cessation of sales of goods that have ceased to provide a given profit in a given market; curtailment of production of unprofitable goods; withdrawal from some markets and concentration of efforts on the most promising ones, etc.)
4.Organization together with a foreign partner of a company in another country;
5.Organization together with a foreign partner of a company in the home country;
6. Cooperation with a foreign company to enter those markets where it has not yet been possible to work successfully.
What influences the formation of demand?
When considering the features of developmental marketing, it is important to understand how exactly the demand for various goods and services is formed. This process is influenced by many factors:
- economic (personal income, price level, level of development of goods production);
- demographic (population size, ratio between rural and urban populations, gender and age structure, migration);
- social (professional composition of the population, level of education, level of development of science);
- natural and climatic factors, living conditions, traditions;
- political situation, unforeseen emergencies, etc.
An important nuance: unlike other types of marketing, developmental does not involve artificial actions to create demand, but suggests working with needs that have formed “on their own.”
Marketing Principles
To fully reveal the essence of marketing, circumstances, provisions, requirements and principles are necessary. And the essence is that the manufactured goods in each case are consumer-oriented. We’ve finally reached the stage of principles in marketing, well done, look:
1. Be creative and produce only those products that the consumer needs.
2. Offer not goods and services on the market, but offer means of solving problems for consumers.
3. Research needs and demand, and only then organize product distribution.
4. Apply tactics and strategy of adaptation, which is involved in the processes of releasing goods to the requirements of the market while simultaneously influencing it in order to cover with marketing the components of the complex of promoting goods to the consumer.
5. Coordinate the work of the organization as a whole and in detail, not for short-term results, but for the long-term perspective of messages that will begin to take effect in one or two months. Messages are based on a strategy for planning and forecasting the behavior of goods on the market.
6. Take into account social and economic factors during production, distribute goods at each stage of the life cycle.
7. Ensure that the work remains active, in certain situations, express aggressive actions in the process of searching for competitive advantages and their formation. Boldly build the image of a company or product on the market.
M 23 Marketing, counter- M 56 Scale of deviations - 169 [p.464]
COUNTERACTIVE MARKETING - a type of MARKETING, aimed at eliminating or reducing demand for goods or services that are undesirable due to negative consumer properties. [p.118]
Irrational or irrational demand is the demand for products that are harmful to health or irrational from a social point of view (drugs, pornography, cigarettes). When demand is irrational, counteractive marketing is used. Counteraction marketing is a type of marketing whose task is to convince people to stop consuming harmful products by sharply increasing prices, limiting their availability, combined with discreditable information. [p.17]
Countermeasure marketing is a type of marketing used in circumstances where existing demand must be sharply reduced or reduced to zero (for example, demand for tobacco, alcohol, drugs). Campaigns are carried out against the sale of a certain product, its supply to trade is stopped, etc. [p.103]
Counteractive marketing - see Counteractive marketing. [p.147]
COUNTERACTIVE MARKETING - see COUNTERACTIVE MARKETING [p.377]
COUNTERACTIVE MARKETING - marketing that sets the task of creating a market situation that helps reduce demand for a certain product. Such marketing seeks to convince consumers to stop consuming unhealthy products by sharply increasing prices, limiting their availability, and discrediting information about these products. As a rule, counteractive marketing is used by government and public organizations. [p.351]
A type of marketing, the essence of which is to eliminate or reduce demand for goods and services, the consumption of which is irrational from the point of view of the well-being of consumers and society. If demarketing, due to production capabilities, is associated with a reduction in demand for a good-quality product, then counteractive marketing presents the product as undesirable and dangerous. [p.163]
What also deserves considerable attention is what the author calls contact audiences. They can either promote or counteract the efforts of the company, which means they require certain steps aimed at gaining a positive attitude towards oneself and neutralizing the undesirable. Seven types of contact audiences (financial interests, the media, government agencies, civic action groups, local residents and community organizations, the general public, the firm's own personnel) require specially planned actions designed to elicit specific reactions from these audiences. Taking into account the impact of the microenvironment is necessary when choosing optimal tactical decisions in the field of marketing. [p.22]
Irrational demand. Countering the demand for unhealthy products requires dedicated efforts. Campaigns are being carried out against the distribution of cigarettes, alcoholic beverages, addictive drugs, firearms, pornographic films, and against the creation of large families. The task of marketing is to convince lovers of something to give up their habits by disseminating frightening information, sharply raising prices and limiting the availability of goods. [p.59]
Idea marketing is the activity of offering in the marketplace of ideas. When it comes to ideas of a social nature, such marketing is called public marketing, and it consists of developing, implementing and monitoring the implementation of programs aimed at achieving acceptance by the target group of a social idea, movement or practice. Public marketing goes beyond public appeal advertising because it coordinates the efforts of advertising and all other components of the marketing mix. A public marketing worker formulates the goals of social change, analyzes consumer attitudes and competitive factors, develops and tests design options, and forms appropriate [p.653]
Sometimes managers also form informal organizations to protect their colleagues. Their goal is usually to protect their zone from intrusion by other parts of the organization. For example, marketing staff may try to gain prerogatives that might otherwise fall to production and finance departments, using methods such as informal meetings to develop ways to counteract enemies. Management students sometimes find it difficult to believe that this situation occurs in many organizations. But it does occur and clearly prevents organizations from achieving their goals. The problem of informal organizations also demonstrates the need to integrate the goals of units and direct efforts for the benefit of the organization as a whole. Example 15.1. describes how women managers can use informal organization to their advantage. [p.443]
It is important to consider the consequences that may result from ignoring ethical standards or engaging in unethical behavior. In the long term, a company's shareholders are likely to act to punish the firm for unethical marketing, and consumers, for example, may turn to other companies. In the short term, it is also possible for a company to ignore ethical standards. And the more such ignorance spreads, the faster legitimate opposition can be found. It is likely that companies that conduct business in accordance with the cannibal principle of eating your own kind instill in their employees the same attitude towards the company itself and towards each other. Therefore, following ethical standards is the basis of a successful business. [p.455]
Remember, the most successful people in Network Marketing are the ones who love the industry as much as, if not more than, their company. As I said, they love the process itself. Thanks to this, they overcome all difficulties, all disappointments and opposition encountered on their path. They are the ones who achieve the greatest success in the industry. [p.101]
Intensive marketing is a strategy that sets a high selling price and involves large expenditures on sales promotion. This type of marketing allows a new product to quickly enter the market, while ensuring high profitability of sales. This strategy is effective in the case of counteracting competition to form in the consumer an image of the product as an object of desire, and, as a result, a preferable attitude towards this product. [p.135]
There are eight situations that characterize the state of demand. Each such situation corresponds to a specific marketing management task and type of marketing: negative demand - conversion marketing, lack of demand - stimulating marketing, potential demand - developmental marketing, decreasing demand - remarketing, fluctuating demand - synchromarketing, full demand - demarketing, irrational demand - counteracting marketing. [p.18]
Depending on the nature of the demand in the market, the following types of marketing are distinguished: conversion, stimulating, developmental, remarketing, supporting, demarketing, counteracting marketing (Table 2.32). [p.174]
There are goods and services, the demand for which may contradict social requirements and consumption standards. In such situations, satisfying demand seems undesirable due to the negative consequences of consuming corresponding harmful goods and services (for example, alcoholic beverages, drugs, tobacco products, etc.). To eliminate or reduce such demand, which is called irrational or irrational, counteractive marketing is used. [p.176]
Can there be counteracting marketing in such a market situation - negative demand, in which the consumer rejects this type of product [p.28]
A company's vice president of marketing usually encounters resistance and opposition from other vice presidents of that company. [p.554]
This section discusses the various forms of opposition and resistance to marketing concepts and explores the skills and tactics needed to deal with them. Nowadays, there is a growing understanding that marketing managers must have extensive experience in managing both the internal and external environment of the company. We will first examine some of the barriers to the implementation of the marketing concept mentioned in Chapter 1. This is necessary because the adoption of a marketing philosophy is an important prerequisite for the successful development and implementation of a company's marketing strategy. [p.552]
Marketing managers must understand that some company employees will be interested in blocking the implementation of a marketing concept, using various arguments to achieve their goals (additional costs, unobvious benefits, etc.). In this case, the success of implementing a marketing strategy depends on the ability to overcome opposition and resistance that may arise as a result of the development of the Company's plans, focused primarily on market needs. The following sections examine the forms that resistance to implementing a marketing strategy takes and options for dealing with them. [p.554]
The market for a particular product or service can be in different states depending on demand. The state of demand determines the appropriate type of marketing. From this point of view, there are eight types of marketing: conversion, promotion, development, remarketing, synchromarketing, supportive marketing, demarketing and counter-marketing. Let us describe in more detail the different types of marketing. [p.38]
Counter-marketing. There are goods and services, the demand for which can be regarded as irrational from the point of view of the well-being of the consumer and society. Irrational demand occurs when the satisfaction of demand seems undesirable due to the negative consumer properties of the corresponding goods. Classic examples of such goods are alcoholic beverages and tobacco products. The task of eliminating or reducing the demand for such goods forms the basis [p.40]
In addition to training in the technical parameters of the products sold, the marketing department monitors the appearance of new products on the market, changes in current prices, new methods by which competitors are trying to promote their products, all the mistakes and failures of competitors, as well as cases when competing organizations were able to outbid a particular contract , and develops measures that prevent the recurrence of similar negative situations. These measures should be promptly communicated to managers through various means, such as [p.158]
Conversion marketing is a type of marketing used when there is negative demand from potential consumers, that is, when a product/service is rejected regardless of its quality (for example, as obsolete). The emphasis in this case is on creating demand, developing a plan for advertising activities and product promotion that would generate the necessary demand and counteract negative trends. [p.118]
Supportive marketing is a type of marketing used when demand matches the production and technological capabilities of the institution/enterprise. Its task is to support the required volume of sales of products/services and maintain demand, counteract the negative influences of competitors through a well-thought-out pricing policy, targeted advertising work and other marketing activities. [p.128]
Counteractive marketing is a type of marketing, the possibilities of which are realized when, from the point of view of the consumer or society, the demand for a number of products can be considered irrational (unreasonable). His strategy is to reduce such demand to zero by stopping the production of relevant products, removing them from sale, and disseminating discreditable information. [p.131]
Marketing specialists have only a few points of contact with production. They hope that the quality of the products produced will not disappoint customers. They may turn to manufacturers with requests to produce small batches of specialized products and at the same time experience some resistance on their part. Small-scale production always leads to increased production costs. [p.170]
In modern economics, all technical changes are considered in the form of new products and more efficient technology. The introduction of new products acts as a reliable means of providing advantages over competitors, establishing favorable prices and changing market share in its favor. The growth of the profit mass based on product innovation counteracts the decline in the rate of profit. In turn, technological innovations have a direct impact on cost savings and increased profits, but do not have a direct impact, for example, on sales volume. The latter can increase when technological innovations are combined with marketing activities. [p.27]
The counteractive marketing strategy is used when demand is irrational from a social, health, legal or other point of view and marketing aims to reduce or eliminate such demand. [p.117]
COUNTERACTIVE MARKETING - marketing aimed at limiting and suppressing irrational demand for certain types of goods and services. [p.271]
Conversion marketing is used when there is negative demand in order to create demand. At the same time, the overwhelming number of potential buyers in this market reject the product, regardless of its quality. In such cases, conversion marketing consists of developing a plan for advertising and product promotion that would generate demand and counteract negative trends. [p.216]
When planning marketing costs, it is necessary to take into account that sales volume with an increase in these costs can grow to a certain limit, since, on the one hand, there is a certain upper limit of the total potential demand for a particular product, and on the other hand, as the enterprise intensifies its marketing efforts, competitors will do the same thing, as a result of which the company will face increasing opposition to sales. According to some experts, when marketing costs exceed 11% of sales, profit growth does not occur. [p.226]
COUNTERACTIVE MARKETING (ountera tive marketing) - marketing activities aimed at limiting or suppressing irrational demand for certain goods/services. [p.129]
Product-differentiated marketing 35/ Industrial marketing 351 Enlightened marketing 351 Oppositional marketing 351 Direct order marketing 351 Direct marketing 351 Developmental marketing 35/ Regional marketing 35/ Transaction marketing 348, 351 Network marketing 349, 351 Socio-ethical marketing 352 Social marketing 35 2 Incentive marketing 352 Strategic Marketing 352 Tactical Marketing 352 Television Marketing 352 Territorial Marketing 352 Services Marketing 348, 352 Target Marketing 352 Marketing Controlling 348 Marketing Mix 353 [p.793]
The factors that must be analyzed depend on the overall strategy of the firm. Product demand and competitors' strategies are major factors in the direction of international activities related to domestic production and foreign distribution. If factories are located overseas, environmental factors may include worker skill levels, wage levels, government attitudes toward foreign ownership, labor and tax laws, access to raw materials and supplies, and the cost of transporting the finished product to its final market. In some cases, the capabilities of the market itself in a country may not justify locating a business there at the initial stage, but it may still be necessary from the point of view of long-term goals of market penetration to gain a certain share of it and advertise the company's products. In another case, the goal may be to use production location to reduce costs in order to sell products on the domestic market or in third countries. In any case, a multinational approach may involve tailoring products to a variety of market circumstances. A global approach involves moving towards more standardized products and focusing on their marketing. Decisions regarding plant location, sourcing and financing, and market penetration may be driven by countermeasures aimed at counteracting global competitors. Cash income from one part of the world can be used to subsidize entry into other markets, as illustrated in Example 9.6. Joint venture opportunities may be sought to gain access to know-how and new technologies that can later be used in wholly owned businesses. [p.280]
Countermeasure marketing is inherently related to social and ethical marketing, as it allows the library to minimize the demand for services and products that are undesirable from a social point of view (for example, to put a barrier to the spread of pornographic publications, ideas of misanthropy, nationalism, the cult of power, militarism, etc. .). Libraries can also support the efforts of other organizations, in particular, jointly conduct similar types of marketing in relation to tobacco products, alcohol, drugs, etc. [p.65]
MARKETING (English, marketing, from market - market) - research and organization of activities in the market of goods, services, securities, aimed at ensuring sales, promoting goods from the manufacturer to the consumer. Marketing is designed to adapt production to market requirements. The following types of marketing are distinguished: differentiated, designed to use several market segments conversion, creating conditions for overcoming negative demand concentrated, focusing efforts on individual markets mass, applied to consumer goods counteracting, aimed at limiting irrational demand developing, [p.172]
Countermeasures marketing is used to minimize or eliminate irrational demand (for drugs, alcoholic beverages, tobacco products, etc.). MARKETING STRATEGY (marketing strategy) is an important component of the overall company strategy, which is defined as the formulation of the main long-term goals and objectives of the company, coordination of the sequence of actions, as well as the allocation of resources necessary to achieve these goals. M.s. - this is a guide to action in the market, formalized in the form of a general program with clearly formulated goals, outlined the main ways to achieve them, and the necessary resources provided. [p.216]
Details
Needs
Discovering Hidden Needs
In almost all sales trainings, this topic is the main one and most of the time is devoted to it. The ability to find hidden needs is the key to success. In development marketing the situation is approximately the same. The difference is that it is the needs of the market as a whole, not the needs of an individual.
In this case, you need to know that all needs are divided into two groups.
Types of marketing needs:
- functional;
- emotional (including social and psychological).
Basic needs
The needs that are associated with a person’s desire to optimize his physiological state are called basic or functional. These include the desire to satisfy hunger, get rid of pain, or quickly get from one place to another.
Most often, basic needs are closely combined with emotional ones. By purchasing a product of a certain class, the consumer tries to create some kind of image, wants to receive admiration and recognition from others.
Emotional Needs
This type of needs is divided into external and internal. The latter relate to the personal experiences and fears of consumers who want to be confident in the future, are afraid to buy a product of poor quality, and try to have an attractive appearance. External needs, also called social, relate to a person’s desire to belong to a specific social group, attempts to create a certain image, for example, a successful businessman or a wonderful housewife.
To create a successful campaign, you need to create a clear map of the buyer's needs. It is used when developing a new product.
REFERENCE! You should know that latent demand exists in almost all industries. But for a business, it is necessary not only to identify needs that have not yet been satisfied, but also to understand which of them can bring real benefits in terms of commerce.
Methods for determining possible demand
First of all, developmental marketing is organized on competent forecasting and in-depth market analysis. An entrepreneur who discovered a hidden need in time and figured out how to satisfy it will always win.
Assessing potential demand is the main stage of activity planning. Various tools and methods are used for this:
- Testing. For this purpose, a limited trial batch is produced. With its help, you can find out exactly how much the audience needs this product and what percentage of the target audience is ready to immediately purchase it.
- Polls. By analyzing reviews, you can find out what customers lack in existing analogues and what, in their opinion, the product should look like and what functions it should have.
- Comprehensive market analysis. You always need to be aware of existing competitors, as well as their strengths and weaknesses, and understand the main trends of the selected market.
REFERENCE! The more information an organization can gather about its chosen industry, as well as data about its target audience, the higher its chances of success.
Developmental marketing methods
The main feature of this type of marketing is that the main part of the work occurs not at the stage of product sales and advertising, but at the development stage. This trend can be seen in the list of the main methods that are used. These include:
— creation of completely new unique products that can satisfy the hidden needs of the market;
— the use of communication tools of absolutely any type and level;
— development of a completely new level of quality;
— creation and development of a brand that is focused on the current needs of the consumer.
Developmental marketing is used in situations where you need to give people what they are looking for. Often existing problems are discussed openly; you just need to learn to notice and analyze it.
Other types of marketing depending on demand
When planning the work of an enterprise, you must always take into account the current level of demand for a particular product or service. Using this, you can build a competent advertising campaign and choose an effective promotion tool.
Using different types of marketing, you can coordinate activities in specific market conditions:
- Conversion - used in case of negative demand, for example, when a company produced an unsuccessful product that caused general disapproval. In this case, you need to specifically determine the reasons for the negative attitude towards this product, and only then eliminate them. This can be done by reducing the price or modifying the product and the like.
- Stimulating - similar to the previous one, used when there is zero demand for the product. That is, the consumer is completely indifferent to it.
REFERENCE! This usually happens if we are talking about a completely new product that no one has ever heard of, or if the sales market was chosen incorrectly.
- Marketing is used when demand is falling. This type aims to extend the life cycle of a product or search for new markets.
- Synchromarketing - used when demand fluctuates, for example, when working with seasonal goods. To level out the situation, various incentive methods, flexible prices, and the like are used.
- Supportive - used in a situation where demand is equal to supply in order to maintain balance.
- Demarketing is used when there is excess demand, for example, when a company cannot produce the required quantity of products. The task of demarketing is to reduce demand, for example, increasing prices, stopping advertising campaigns, and the like.
- Counteractive - used to completely destroy irrational demand, for example, for harmful and immoral products, such as drugs, pornography, weapons, and the like. Social type of marketing. The purpose of this type of marketing is to increase prices to make it unaffordable, disseminate information about possible threats, promote a healthy lifestyle, and so on.
It has now become clear that developmental marketing is very different from all other types. It is a powerful driving force that stimulates human progress, and it is also a potential source of huge profits for those who can notice in time what people really lack.