Principles of Marketing

What is the importance of Marketing Concept?
Implementation of the Marketing Concept:
The study of consumer behaviour may be applied to segment the market, select the target market
and position the product or service offering. Identifying the target segment, understanding their
needs, providing the right product and service offering and communicating about the offering –
all of these help a marketer succeed in the long term and ensure his survival and success in a
changing environment.
 Segment the market: The marketer needs to identify distinct customer groups with needs
and wants, classify them on basis of descriptive characteristics and behavioural
dimensions. The descriptive characteristics may take forms of age, gender, income,
occupation, education, family size, family life cycle, gender, lifestyle, personality,
religion, generation, geography, nationality, and social class. The behavioural dimensions
take forms of benefits, uses, use occasion, usage rates, and loyalty status.
 Select target market: The marketer then selects one or more markets to enter. The
segment(s) that should be targeted should be viable; there should be a fit between the
market attractiveness and the company’s objectives and resources. The marketer would
be able to assess the viability of a segment on the basis of the following criteria, viz.,
measurability, substantial ability, accessibility, differentiability, and actionability.
 Position: the product offering in the mind of the customers: The marketers should be able
to communicate the distinct and/or unique product characteristics.
 Market opportunity analysis: Marketing opportunity is defined “as an attractive arena for
company marketing action in which the company could enjoy a competitive advantage”.
This analyze involves examining trends and conditions in the market place to identify
consumers’ needs and wants that are not being fully satisfied. More especially market
opportunity analysis involves assessing any unique ability that a company might have to
satisfy identified consumer desires.
How marketing mix can be effectively designed. Explain?
Designing the Marketing Mix:
4-Ps The study of consumer behaviour may be applied to design the 4 Ps.
 Product: The term product includes both tangible products and intangible services. The
issues to address consist of name (brand), size, shape, features, labeling, packaging,
accessories and supplementary products, terms of sale and services, after sales etc.
 Price: This includes the pricing of the product offering. The major components include,
form of payment, terms and conditions of payment, discounts, price sensitivity,
differential prices and customer reaction, imagery (price increase and customer reaction,
price decrease and customer reaction).
 Place and Distribution: This includes the marketing channel, and comprises decisions
regarding choice of channel (direct or indirect), location, accessibility and availability of
product offering, wholesaling, retailing, logistics etc.
 Promotion: This includes marketing communication, and the major issues comprise
decisions on communication/promotion mix, the message and media strategy (the
content, appeal and context).
How to Designing the Marketing Strategy?
There exists an interrelation between the Consumer, the Environment and the Marketing
strategy.
 Consumer: The consumer has his needs and wants as well as product preferences; Thus,
there exists an interplay of Cognition (knowledge about products and alternatives), Affect
(feelings of favorableness and unfavorableness) and Behaviour (action: buy or not to
buy).
 Environment: This refers to forces in the environment, which make the environment
complex and dynamic.
 Marketing strategies: This implies setting up of goals and then achieving them through
the design of an appropriate marketing mix. The Marketing Strategy should be designed
to influence consumers (Cognition, Affect and Behaviour) and be influenced by them. It
should be flexible and ever evolving with changes in the customer needs and wants; as
well as, changes in the environment in which it operates. The knowledge of consumer
behaviour can be applied to develop a “best fit” between consumer needs and wants, the
environment in which the firm operates; and, the firms’ goals and objectives.
There are some factors that need to be carefully analyzed by the marketers which help
them to increase their sales and develop effective marketing strategies. These factors are
discussed as follows:
o Consumer's rational behaviour: It is foremost important for a marketer
to understand the situations where consumers behave rationally. Many
consumer behaviour theories suggest that the consumers want to get
maximum benefit and satisfaction from the product by spending
minimum amount of money. This shows that consumers do not spend
all their money to buy a product and keeps a certain amount of money
as their savings. However, on the other hand, the consumers having
limited money spend all their money on purchase of their basic needs
such as shelter, food and clothing. Thus, the marketer must carefully
analyze these two situations of consumers before marketing a product
or services.
o Consumer's taste and preferences: Understanding consumer taste and
preferences helps marketers to revamp their product so that they could
meet customer satisfaction. These factors may change from time to
time. The change in consumer's behaviour affecting by these factors
should be carefully monitored. The marketers need carefully
understand the consumer's interest in the products by breaking down
the targeted consumers into demographics, like age, occupation and
location as they contribute investigating information about consumer
preferences.
o Price of Products: Prices of products are a widely discussed factor in
consumer behavior theories. The theories suggest that marketers
should keep their prices low without affecting the quality to attract
consumers. This is because consumers go mostly for products that are
of low price but satisfies their demand.
o Features of Product: Increased number of features offered by the
product tends to increase the price of products. In such case,
consumers go for added features in a product at affordable price.
Therefore, the markers design their products in such a way that the
product gives maximum value or features to consumers at affordable
price.
o Consumer's knowledge about a product: The marketer must know to
what extent the consumers have knowledge about a product. Mostly,
consumers select products with which they are familiar with. For
example, if the consumers are aware of the health effects of eating
high fat food or fast food, marketing of such a product to health
conscious consumer will end up in failure.

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What is the importance of Marketing Concept?

Implementation of the Marketing Concept:

Designing the Marketing Mix:

How to Designing the Marketing Strategy?

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