FUNDAMENTALS OF MARKETING
Marketing Channels
The customer is the main stakeholder of the business; hence amongst the roles of the marketing professional; is to ensure that all operations conducted to make the end product will be satisfactory to the client. Supply chain deals in creating products from raw materials and providing that the product gets to the final consumer in due time and good condition. The marketing professionals are engaged in developing attractive schemes that lure customers to purchase products. Their primary role is to sell the company’s products while ensuring that the customer’s needs are identified and met through the products sold.
Marketing professionals research the current market needs of the consumers; hence design products that suite will meet the demand requested; hence they aid in advising the supply chain management on the efficient products to produce. Marketing professionals also develop strategic management decisions that feature brand marketing and reputation, through active participation in supply chain decisions; they streamline how processes will provide the desired brand products while maintaining the company’s brand reputation (Olenski, 2017). The relationships created by marketing professionals in linking various producers to suppliers, and finally, the end consumer can only be enhanced by involving them in supply chain decisions to elaborate the most suitable measures to be adopted.
Marketing research gives a company competitive intelligence through which they can develop efficient products by using the information obtained from market surveys as well as meet the consumer needs while leveraging on the current market requirements. For small owners, lack of marketing research resources limits their ability to become competitive in the industry as per the fluctuating market needs. This lowers the company’s ability to increase its sales, and it may also be affected by unexpected market changes since it is not aware of the changing needs of customers it’s serving (Acevedo, 2018). However, marketing research is an expensive process that requires high financial input in conducting the market surveys and assessments of the company’s products hence very costly for small businesses. It also needs to be undertaken regularly and as per each new product change for the information to be reliable at different times. Therefore, small enterprises are at the advantage of saving their time and fewer resources if they don’t conduct marketing research.
Integrated Marketing Communications
In marketing operations, the promotion mix is vital in creating a company’s product and brand awareness through facets such as sales promotion, publicity, and advertising. Development is a tool used to sell information to the market audience while ensuring that it is positive to attract them to purchase the company’s products (Jaideep, 2020). Various issues affect the promotion mix of a commodity, such as the type of product, since each product requires a defined promotion tool to be adequately promoted. The product uses also determines what promotion mix method is preferable; for instance, consumer goods need advertising or sales promotion. Consumer characteristics such as location, age, or income will determine how well they can be approached and the schemes to use to promote goods. Market sizes also impact on the intensity of promotions to be used with larger audiences opting for advertising, while small ones would flourish with sales promotion.
Message strategies make advertising tactics easier by highlighting the various ways to pass information to consumers on a level they can connect and relate to. In 2019, Burger King developed a commercial with the phrase ‘Eat like Andy, ‘ which was meant to attract more sales from its consumers. The ad showcased Andy Warhol, a celebrity in a 1982 movie scene, eating a Burger King from a super bowl; it had a massive impact on the audience since it emphasized that both rich and poor people mostly purchase similar things (Hughes, 2019). This boosted Burger King’s sales; hence was an effective message strategy and attracted even more consumers.
Gillette’s 2019, commercial dubbed ‘We Believe’ is deemed to have aroused a lot of criticism and negative backlash from various audiences due to the toxic masculinity aspect illustrated in the ad. It showcased an assumption that men can quickly get away with antisocial acts, which triggered a wrong message to its audience (Allen, 2019). This ad was not effective in communicating its message to its customers since it painted a false image of the 21st-century man. It sparked debates and even led to some of its customers boycotting its products.
Professional selling
Consumer behavior is largely dependent on their preferences and willingness to purchase a product based on various factors. Transactional relationships depicted the lack of interest of sellers and buyers towards building a sales relationship (Morgan, 2015). It is established that each party has what the other needs; hence after the exchange, both parties are no longer at will to continue transacting. Most customer relationships begin with the transactional relationship first since customers first purchase the product since they need it. After utilizing the product and identifying its benefits and they are willing to be loyal to the brand, they establish a frequency of sale which fosters into long term relations; this is recognized as a functional relationship. Strategic relationships are developed over time when both the buyer and seller aim to enhance their sales while committing both time and financial resources.
Customers from the end-users of commodities produced by companies, their satisfaction is critical in evaluating whether they will continue purchasing the company’s products. Customer satisfaction is dependent on how they feel about the product’s experience (Morgan, 2015). If most consumers are satisfied, a company should be pleased, since they are deemed to frequently purchase a product and increase the company’s sales. Word of mouth is an expensive marketing strategy that boosts sales since consumer reviews tend to be more believable based on their experience. Brand loyalty builds a company’s reputation and hence reduced the amount of finances that would be spent on advertising strategies.
Price, the only revenue generator
Pricing strategies formulated are aimed to lure customers into purchasing a product while believing they are getting a favorable price. The odd-even pricing strategy involves the last digits of a commodity’s price (Callen, 2019). Prices that end in odd numbers, such as $ 1.99, $ 9.65, depict a bizarre pricing strategy, while those that end in even numbers such as $20.00, $ 4.80 utilize even strategies. This strategy is psychologically proven to attract customers who think they are getting a bargain when an item is priced at $1.99 instead of $2.00. This strategy attracts customers to buy a product and is mostly used by companies that are giving discounts on commodities and making clearance sales.
Prestige pricing is used in setting exceptionally high prices to showcase the high value of a commodity (tools, 2019). It is common in companies that have a renowned brand image hence aim to increase their sales. It gives companies a marketing advantage since consumers will buy their products, which are premium priced since they believe it is of a higher value than the competitors’ products. For instance, a shoe priced at $ 200.00, which is premium priced, a similar pump costs $20.00 from a competing company. Price bundling involves placing several commodities into one package and selling it at a reduced price (Hunt, 2019). It is profitable and increases the sale of various products. For instance, selling a value meal plan inclusive of soup, vegetables, and breadsticks for a reduced price is a method of price bundling.
Captive pricing is used when there is a leading product and other accessory products which are sold similarly as an add on feature (Bhasin, 2020). The captive product is used to attract more sales and is sometimes less priced but still earns companies profit. The accessory products may be used alongside the core product and, despite being lowly priced at first, they make profits in the long run. For example, printers and ink are captive priced. I have noticed the odd-even and price bundling strategies when I shop since most companies prefer creating a bargain mind-set for consumers to get more value for their money as a psychological attempt.
References
Acevedo, L. (2018). Advantages & disadvantages of internal marketing research departments. Retrieved from Bizfluent: https://bizfluent.com/13319065/advantages-disadvantages-of-internal-marketing-research-departments
Allen, C. (2019, 1, 18). Gillette commercial controversy: Give men credit instead of painting masculinity as poison. Retrieved from USA Today: https://www.usatoday.com/story/opinion/2019/01/17/men-deserve-credit-gillette-commercial-controversy-assumptions-masculinity-fathers-column/2605063002/
Bhasin, H. (2020, 1, 25). Captive product pricing explained with examples. Retrieved from Marketing 91: https://www.marketing91.com/captive-product-pricing/
Callen, M. (2019, July 15). Odd-Even Pricing: Does it work? Retrieved from Pay Kickstart: https://paykickstart.com/odd-even-pricing-does-it-work/
Hughes, J. (2019, 2 4). Burger King wants America to eat like Andy. Retrieved from World Branding Forum: https://www.brandingforum.org/advertising/burger-king-america-eat-like-andy/
Hunt, P. (2019). Bundling is a pricing strategy and Marketing Tool. Retrieved from Pricing solutions: https://www.pricingsolutions.com/pricing-blog/bundling-as-much-a-pricing-strategy-as-it-is-a-marketing-tool/
Jaideep, S. (2020). Top 11 factors affecting the promotion mix. Retrieved from Your article Library: https://www.yourarticlelibrary.com/marketing/promotional-mix/top-11-factors-affecting-promotion-mix/48640
Morgan, B. (2015, 1, 19). Five tips to move from transactional to meaningful customer relationships. Retrieved from Forbes: https://www.google.com/amp/s/www.forbes.com/sites/blakemorgan/2015/01/19/moving-from-transactional-to-meaningful-customer-relationships/amp/
Olenski, S. (2017, 12, 8). A marketing team ‘s success is only as good as the company’s supply chain management process. Retrieved from Forbes: https://www-forbes-com.cdn.ampproject.org/v/s/www.forbes.com/sites/steveolenski/2017/12/08/a-marketing-teams-succes-is-only-as-good-as-the-companys-supply-chain-management-process/amp/?
Tools, A. (2019, 9 4). Prestige pricing. Retrieved from Accounting tools: https://www.accountingtools.com/articles/2018/1/27/prestige-pricing