Practical Guide

Introduction to Marketing

INTRODUCTION TO MARKETING | 1
“Marketing is the What is marketing?
management process
responsible for Every product we buy, every store we visit, every media
message we receive and every choice we make in our
identifying, anticipating consumer society has been shaped by the forces of marketing.

and satisfying customer CIM (The Chartered Institute of Marketing) offers

requirements profitably.” the following definition for marketing: “The management
process responsible for identifying, anticipating and
satisfying customer requirements profitably.”

Sometimes people assume marketing is just about

advertising or selling, but this is not the whole story. It is
a key management discipline that ensures producers of
goods and services can interpret consumer desires and
match, or exceed them.

The marketing process is central to the business

performance of companies, both large and small, because
it addresses the most important aspects of the market. It
is about understanding the competitive marketplace and
ensuring you can tap into key trends, reaching consumers
with the right product at the right price, place and time.

Clever marketing has led to many recent business success

stories - from pharmaceuticals to airlines, sports brands
to food and drink, business-to-business companies
to small, niche players.

Conversely, history reminds us that without proper

marketing, you can’t get close to customers and satisfy
their needs – and if you can’t, a competitor surely will.

Getting close has become more important than ever

as digital and mobile technology make inroads into all
aspects of life. This revolution has also provided new tools
to make marketing more targeted, relevant and effective.
Today, as competitive pressures increase, marketing skills
have never been more highly valued. What was once seen
as a departmental activity is now regarded as a frontline
business attitude for all employees.

The professionals who shape and implement marketing

strategy contribute directly to the economy. Their skills
attract and retain customers, build sales and increase
profits – generating wealth for all.

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Why marketing?
More recently, two further ‘P’s were added –
You might not be advertising your services, but you Process and Physical evidence. Originally formulated
probably do make an effort to know your customers for the service industry, they are just as important
well. Your instincts tell you that figuring out what in other sectors.
every customer wants, and meeting those expectations,
will keep you in business. You know that you need to In the 1990s, as experts realised that business had
improve and extend existing products, and sometimes to become more customer-centric, an alternative
develop new ones. ‘4 Cs’ of marketing was proposed. Correlating
almost directly with the original 4PS, they were:
If this description rings true, your marketing activity Customer, Cost, Convenience and Communication.
closely fits the classic definition used by CIM. The 7Ps model, however, has endured and more
than adequately incorporates today’s customer-first
But is this kind of ‘unconscious’ marketing adequate? marketing world.

If you don’t understand that you’re ‘doing’ marketing, The professionals who shape and implement
it’s hard to keep things consistent over time. This marketing strategy contribute directly to the
isn’t an obvious problem for very small organisations, economy. Their skills attract and retain customers,
but marketing on the hoof becomes less feasible as build sales and increase profits – generating wealth
you grow. for all.

How do you create a proper marketing strategy for the

future? How can you keep up with your competitors,
exploiting all the latest technological developments
at a time of rapid change?

Applying a simple marketing framework is vital. It

enables you to plan your activities in advance, find
out what works, then use them again when and
where they are most effective.

The rest of this article will help you to do just that,

giving you suggestions for practical marketing that
builds on what you are already doing.

It deals with what a company is going to produce,

how much it is going to charge, how it is going to
deliver products or services to the customer, and
how it is going to tell its customers about its
products and services.

Traditionally, these considerations were known

as the 4Ps – Product, Price, Place and Promotion.
As marketing became a more sophisticated discipline,
a fifth ‘P’ was added – People.

INTRODUCTION TO MARKETING | 3
P1 Product P2 Price
There is no point in developing a product or service A product is only worth what customers are prepared
that no one wants to buy, yet many businesses decide to pay for it. The price needs to be competitive, but
what to offer first, then hope to find a market for this doesn’t mean you have to be the cheapest in your
it afterwards. market – small businesses can compete with larger
rivals by offering a more personal service, value-adds
Successful companies find out what customers need or better value for money.
or want and then develop the right product with the
right level of quality to meet their expectations, both You also need to make a profit. Pricing is the only
now and in the future. element of the marketing mix that generates revenue
– everything else represents a cost to you.

• A product does not have to be tangible

When considering the price of your product, it’s
– an insurance policy can be a product
important to look at it from the customer’s perspective:
• The perfect product provides value for the
customer. This value is in the eye of the beholder • Price positions you in the marketplace
– we must give our customers what they want, • it tells customers where to place you in relation
not what we think they want to your competitors

• Ask yourself whether you have a system in place • The more you charge, the more value or quality
to regularly check what your customers think of your customers will expect for their money.
your product and your supporting services • This is a relative measure. If you are the most
• Find out what their needs are now and whether expensive provider in your market, customers
they believe these will change in future will expect you to provide a better service

• Beware the product quality trap – don’t take it • Everything that the customer sees must be
too far by trying to sell a Rolls-Royce when the consistent with these higher quality expectations
customer really wants a Nissan Micra – packaging, environment, promotional materials,
website, letterheads, invoices, etc

• Existing customers are generally less sensitive

about price than new customers – a good reason
to look after them well.

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P3 Place P4 Promotion
The product must be available in the right place, Promotion is the way a company communicates what
at the right time and in the right quantity, while it does and what it can offer customers. It includes
keeping storage, inventory and distribution costs branding, advertising, PR, corporate identity, social
to an acceptable level. media outreach, sales management, special offers
and exhibitions. Promotion must gain attention, be
The place where customers buy a product, and appealing, send a consistent message and – above all
the means of distributing your product to that place, – give the customer a reason to choose your product
must be appropriate and convenient for the customer. rather than someone else’s.
This applies to brick-and-mortar operations, but is
even more important in e-commerce. • Good promotion is not one-way communication
– it paves the way for a dialogue with customers,
• Customer surveys show that delivery performance whether in person or online
is one of the most important criteria when • Promotion should communicate the benefits
choosing a supplier that a customer receives from a product, not
• Place also means ways of displaying your product just its features
to customer groups. This could be in a shop • Your website is often the customer’s first
window, but it could also be online experience of your company – you only have one
• E-commerce operations that sell exclusively on chance to make a good first impression, so make
the internet, must place even more emphasis on sure that information on the site is always kept up
the company website and other online activities, to date and the design is updated to keep it fresh
as there are fewer points where the customer • Explore new channels – from traditional print ads
will interact with the company to the latest social media trends, there is now a
• For the same reason, all firms that sell online world of possibilities to explore. The important
should consider how the product will be delivered principle is to always advertise where your target
to the consumer – even if this is handled by a consumer goes
third party
• Printed promotional material must grab the
• Mobile is an increasingly important purchasing attention of your customers. It should be easy
channel for consumers, so it may be a good time to read and enable the customer to identify why
to optimise your website. Does yours conform to they should buy your product
the latest standards? For example, Google search • A brochure isn’t necessarily the best way of
now penalises websites that are not optimised promoting your business. Unlike your website,
for mobile, potentially making it more difficult the information is fixed once a brochure has been
for consumers to find you printed. A more cost- effective and flexible option
might be a folder with a professionally designed
sheet inside, over a series of your own information
sheets produced in-house. These sheets can be
customised by varying them to suit the target
customers and/or changing them as required
• Promotion does not just mean communicating
with your customers. It is just as important to
communicate with staff/fellow employees about
the value and attributes of your products. They
can then pass on the knowledge to their customers

INTRODUCTION TO MARKETING | 5
P5 People P6 Process
Everyone who comes into contact with your Many customers no longer simply buy a product
customers will make an impression. Many customers or service - they invest in an entire experience that
cannot separate the product or service from the starts from the moment they discover your company
staff member who provides it, so your people and lasts through to purchase and beyond.
will have a profound effect – positive or negative
– on customer satisfaction. –– That means the process of delivering the
product or service, and the behaviour of those
–– The reputation of your brand rests in the hands who deliver it, are crucial to customer satisfaction.
of your staff. They must be appropriately trained, A user-friendly internet experience, waiting times,
well-motivated and have the right attitude the information given to customers and the
helpfulness of staff are vital to keep
–– All employees who have contact with customers
customers happy
should be well-suited to the role

–– In the age of social media, every employee –– Customers are not interested in the detail of how
your business runs, just that the system works.
can potentially reach a mass audience.
However, they may want reassurance they are
–– Formulate a policy for online interaction buying from a reputable or ‘authentic’ supplier.
and make sure everyone stays on-message
–– Remember the value of a good first impression.
–– Likewise, happy customers are excellent Identify where most customers initially come
advocates for your business. Curate good into contact with your company - whether online
opinion on review sites or offline - and ensure the process there, from
–– Superior after sales support and advice adds encounter to purchase, is seamless
value to your offering, and can give you a –– Ensure that your systems are designed for the
competitive edge. These services will probably customer’s benefit, not the company’s convenience
become more important than price for many
customers over time –– Do customers have to wait? Are they kept
informed? Is your website fast enough and
–– Look regularly at the products that account available on the right devices? Are your people
for the highest percentage of your sales. Do helpful? Is your service efficiently carried out?
these products have adequate after sales support, Do your staff interact in a manner appropriate
or are you being complacent with them? Could to your pricing?
you enhance your support without too much
additional cost? –– Customers trying to reach your company by phone
are a vital source of income and returning value;
but so often they are left on hold. Many will give
up, go elsewhere and tell their friends not to use
your company - just because of the poor process

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P7 Physical Evidence
Choosing an unfamiliar product or service is risky
for the consumer, because they don’t know how good
it will be until after purchase. You can reduce this
uncertainty by helping potential customers ‘see’
what they are buying.

–– A clean, tidy and well-decorated reception area

– or homepage - is reassuring. If your digital or
physical premises aren’t up to scratch, why
would the customer think your service is?

–– The physical evidence demonstrated by an

organisation must confirm the assumptions of
the customer — a financial services product will
need to be delivered in a formal setting, while
a children’s birthday entertainment company
should adopt a more relaxed approach

–– Some companies engage customers and ask

for their feedback, so that they can develop
reference materials. New customers can then
see these testimonials and are more likely to
purchase with confidence

–– Although the customer cannot experience the

service before purchase, he or she can talk to
other people with experience of the service. Their
testimony is credible, because their views do not
come from the company. Alternatively, well-shot
video testimonials and reviews on independent
websites will add authenticity

Each of the ‘ingredients’ of the marketing mix is key

to success. No element can be considered in isolation
– you cannot, for example, develop a product without
considering a price, or how it will reach the customer.
The process of considering
the seven Ps and together
to form a cohesive strategy
is called marketing planning.

INTRODUCTION TO MARKETING | 7
Planning a
marketing strategy

Marketing focuses on the fundamental practices

that every company has to carry out - identifying Marketing is a team effort requiring the orchestration
customers, researching their needs and preferences, of a range of different skills, outlooks and
analysing factors that influence their purchasing personalities. Some aspects of marketing deal solely
decisions and persuading them to buy products in facts and finance; others explore the ambiguities
and services from you rather than a competitor. and uncertainties of changing consumer styles.
A coherent marketing strategy is essential to
All this requires a strategy that is coordinated, managing change, as companies everywhere operate
considered and realistic in terms of making the most in technological, legislative, corporate and market
effective use of the resources and budgets available. environments of rapid transition and change.

Planning a marketing strategy starts with a detailed

and ongoing investigation of the market and its sub-
markets or segments. Companies look at the social,
political, economic, cultural and technological trends
which are shaping the market, their own position
within it and the resources they can marshal to
change or influence it. This is sometimes known
as the marketing audit.

A marketing plan defining objectives, targets and

performance measures is then developed, along
with a financial budget. When specific goals have
been defined, alternatives to the status quo can
be discussed, and ways to achieve those
alternatives can be chosen.

The marketing strategy is then formalised

within a specific plan of action, which is constantly
revised and updated, and the marketing
campaign progresses.

Planning an effective marketing strategy is intimately

bound up with the planning process for the entire
business, because it is linked to overall corporate
strategy and requires endorsement from the top.
The strategy also needs to be continually reviewed.
Therefore, collaboration between marketing and
other corporate activities such as finance, research,
development and production, is important to
effectively implementing the marketing strategy.

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Future trends in marketing

We live and work in a world of unprecedented social Second, more importance is being attached
and technological upheaval, which has introduced to measuring and monitoring performance,
new levels of competition for all kinds of organisations. and more sophisticated tools are being developed
Business is becoming global, customers are more to do the job as part of the general drive to be more
demanding, many mature markets offer little room accountable. ‘Big data’, analytics and measurement
for growth, brand valuation is recognised on financial are playing ever greater roles in marketing strategy.
balance sheets and environmental pressures are
growing. Compounding every other difficulty, the pace Thirdly, there is growing investment in staff
of change is quickening all the time – speed of market training and development, with particular emphasis
introduction and acceptance are important factors. on continuing professional development so that
companies can more effectively defend the
The economic context is changing, so marketing competitive advantage that successful marketing
is changing too. New social trends and corporate gives them.
structures have opened up fresh avenues of
opportunity for marketers to become even One of the strengths of marketing is the way
more central to business success. Only recently, it constantly adapts and responds to changing
technologies including database marketing, conditions. Though our changing world creates
direct-to-plate printing and video-conferencing, unexpected challenges, the modern marketer will
the Internet and intranets were buzzwords for continue to overcome them with new tools and
marketers. Since then, viral campaigns and social techniques, helping companies to defend their
media have become everyday terms. Technology competitive advantage.
today offers exciting opportunities that would
have been out of reach a generation ago. What
will tomorrow look like?

As organisations introduce streamlined

management hierarchies and flexible working
practices, the marketing approach is proving a
valuable interdisciplinary asset to companies that
want to break down internal boundaries to focus
exclusively on what the company is good at.

Distinct trends for the future of marketing have

emerged in recent years, and continue to develop.
First, renewed emphasis is being placed on the
collection, analysis and use of more (and better)
marketing information.

The explosion of data available to companies thanks

to the internet has complicated the issue, but also
offers incredible opportunities to reach consumers
in a targeted way.

INTRODUCTION TO MARKETING | 9
 Moor Hall T +44 (0)1628 427500 @CIM_Exchange
Cookham F +44 (0)1628 427158
Maidenhead facebook.com/TheCIM
Berkshire, SL6 9QH E [email protected]
The Chartered Institute of Marketing (CIM)
United Kingdom W cim.co.uk

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