The role of marketing goes beyond merely increasing demand for a product or service; it encompasses broader responsibilities. The primary mission of marketing is "demand management." Companies should focus on meeting customer and market needs rather than solely prioritizing selling their products. Unfortunately, most companies fail to adopt this approach, concentrating only on their product while neglecting customers and the market, leading to failed marketing efforts.
The Success of Marketing Relies on Two Key Factors: Globalization and Modern Technology
The world is constantly evolving, and this change significantly impacts business growth. Among the most influential factors today are globalization and modern technology, with "digital information" being one of its most critical forms. A third factor is "price liberalization," enabling some companies to enter any local market they choose. For instance, the American telecommunications company "AT&T" provides services across continents and seamlessly penetrates local markets.
The fourth factor is privatization, which involves converting public sector entities into private companies to improve their performance.
The question now is: Are there ways to improve marketing? Many believe there are nine key factors:
1-Creating a high-quality product.
2-Providing better customer service.
3-Reducing prices, a strategy that has proven successful for companies like Walmart.
4-Securing the largest market share.
5-Designing products based on customer needs and preferences.
6-Continuously improving the product.
7-Maintaining innovation.
8-Competing in high-growth markets, such as robotics.
9-Anticipating customer expectations.
From these points, it is evident that no single marketing strategy can universally increase company profits. So, what’s the solution?
Marketing is the Key Factor for Secure Business Growth
Companies need to tailor their strategies according to their capabilities and customer desires. Professor Michael Porter emphasizes that companies should design a marketing strategy that highlights their strengths, distinguishing them from competitors. For example, Dell Computers used phone-based sales as a unique strategy, achieving daily sales of nearly $3 million.
However, what are the main challenges companies face in marketing?
To answer this question, I asked several managers to describe their customers. From their responses, I discovered that the primary challenge lies in companies relying on outdated marketing methods. These methods focus on profiting from customers rather than winning their loyalty.
Surprisingly, not all companies successfully leverage marketing effectively. Why? Because most managers misunderstand the concept of marketing, equating it with sales. In reality, sales are just one component of marketing. Marketing begins before a product is even created.
Executives often view marketing as the responsibility of a single department, but in truth, it is everyone’s responsibility. Marks & Spencer exemplifies this approach by making marketing a company-wide responsibility rather than assigning it to a specific department.
What Should Marketing Professionals Do to Achieve Company Goals?
"The most effective way to retain your customers is to constantly think about how to give them more for less".
Seizing Golden Opportunities to Increase Company Profits
The market is a rich mine of investment opportunities, but many remain unaware of its potential. What should companies do to capitalize on these opportunities? Two models can be utilized: the Idea Manager Model and the Strategic Breakthrough Model.
- In the Idea Manager Model, a company appoints a professional to the role of project idea manager, who, with the help of their team, generates new ideas.
- In the Strategic Breakthrough Model, the company aims to improve its sales by acquiring new customers, enhancing the product, and building its brand.
But how can companies strengthen their brand?
*Strengthening the Brand
To reinforce its brand, a company needs to focus on two key actions:
Developing the Value Proposition:
This involves establishing a mental image for the product, such as being distinguished by low prices or associated with a premium quality attribute. For instance, Mercedes cars are known as the epitome of luxury.
Building the Brand:
This requires designing an attractive logo aligned with the product's purpose and associating its name with a positive trait. However, having an appealing brand alone is not enough—the product must be marketed effectively.
*Effective Marketing: A Five-Step Approach
To achieve their goals, marketing departments should follow these five fundamental steps:
Research:
This helps companies discover which market segments to target.
Market Segmentation and Customer Identification:
Identifying specific customer groups and tailoring efforts accordingly.
Monitoring:
In this phase, companies gather feedback on all marketing and production steps to identify and fix issues.
Implementation:
This is the stage where the product is manufactured, priced, and marketed.
Market Mix:
This step involves using four tools to cement the product's image in customers' minds, known as the 4Ps*.
What Are the 4Ps?
*The 4Ps refer to the key elements of the marketing mix: Product, Price, Place, and Promotion. Each plays a crucial role in building and maintaining a strong brand presence.
A good marketing mix helps increase the company's profits with minimal effort
Professor Neil Borden studied the activities companies can use to influence buyers. For example, a pharmaceutical company might persuade doctors to purchase its medications by offering free samples. Borden called these activities the "marketing mix." While his concept was innovative, it was also complex. To simplify it, Professor Jerome McCarthy developed a model consisting of four elements known as the Four Ps, as they all start with the letter "P": Product, Price, Place, and Promotions.
Product:
This is the most crucial element because if the product is not useful or desirable to the customer, no marketing efforts will succeed.
Price:
This is the only element that generates revenue for the company, so businesses aim to set prices as high as possible to maximize profits.
Place (or Distribution):
Marketers have two options: sell directly to customers, use intermediaries (retailers), or combine both approaches.
Promotions:
This includes various methods such as advertising and publicity to increase awareness and demand.
While the Four Ps represent the seller's or marketer's perspective, the customer's or buyer's perspective is expressed through the Four Cs:
- Customer Value: Customers look for products that offer significant value.
- Cost to Customer: They seek products that minimize additional expenses.
- Convenience: Products should be easy to use and readily available.
- Communication: Effective engagement with customers about their needs and preferences.
For companies to succeed in their marketing, they should first prioritize the Four Cs and then align these with the Four Ps.
Is the Marketer's Role Just to Attract Customers?
Traditionally, marketers believed their role was solely to find customers. However, in the modern era, their role has expanded to include both acquiring customers and retaining them.
So how Can Companies Retain Customers Amid Competition?
"The reward will go to those companies that invent new ways to innovate, connect, and deliver value to their target markets".
Communicating Product Value Correctly Increases Customer Demand
All companies strive to retain their customers, but this is not an easy task, especially with the abundance of competitors and the ever-changing preferences of customers. The only way to succeed is by making the product's brand distinctive and valuable to customers. For instance, when customers hear "Starbucks Coffee," they immediately think of fresh coffee with an excellent taste.
How can companies convey the value of their products to customers? There are three main approaches:
Lowering the Product Price:
This strategy proved successful for Southwest Airlines, which offered affordable recreational flights.
Helping Customers Reduce Other Costs:
In this case, the company may charge a higher price for its products but highlights how customers save on additional costs. For example, Caterpillar, a manufacturer of heavy machinery, prices its products higher than competitors but emphasizes their advantages. When customers calculate the added benefits, they realize they save on many extra costs.
Adding Benefits to Make the Product More Attractive:
This could involve customizing the product to meet specific customer needs.
*The Importance of Marketing Plans : All these strategies require well-developed plans. Marketing plans demand intense focus, as any mistake can result in significant losses for the company. There are several types of marketing plans, including:
Brand Marketing Plans:
These plans must be regularly reviewed to identify and fix errors.
Product Marketing Plans:
In these plans, the team sets goals and forecasts for the product's performance.
New Product Plans:
Here, the responsible team creates a plan to develop the product.
*How to Choose the Best Plan?
Monitoring the marketing plan identifies and corrects errors
The key focus for companies should be ensuring that all plans are well-coordinated, clear, simple, and concise. These plans should highlight the company's strengths, weaknesses, and objectives. But how can managers choose the best marketing plan? This can be achieved by studying the plans, comparing their clarity and comprehensiveness, and then selecting the most suitable one.
Once the plan is chosen, the implementation process involves two steps:
Evaluating Results and Establishing Corrective Measures:
This step ensures that any shortcomings are addressed effectively.
Monitoring the Market and Strengthening Weak or Critical Areas:
This ensures the company remains competitive and adaptive.
Adapting to Global Changes : With the rapid developments happening worldwide, it is certain that the nature of marketing will change significantly in the future. Companies must keep up with these changes, recognize the importance of the digital revolution and data, and leverage them effectively.
The first step is understanding how customer preferences will evolve. For example, most customers now prefer purchasing products online. Therefore, companies should focus on integrating their products with online platforms. However, this evolution has its drawbacks, such as extended processing times for some transactions and the inability of customers to inspect products before purchase.
"While marketers see themselves as selling a product, customers see themselves as buying value or a solution to their problem. Customers desire more than just the price; they are interested in the total cost of acquiring, using, and disposing of the product. Customers want the product or service to be as easily accessible as possible".
Conclusion
The world is constantly changing, especially with significant technological advancements. This transformation has greatly impacted marketing, rendering traditional marketing methods ineffective. Companies must adopt modern approaches to increase their profits. These methods focus on prioritizing customer satisfaction and loyalty rather than merely selling products at the highest price.
The key is to communicate the product's value to customers effectively to increase their interest in purchasing it, develop suitable marketing plans, and monitor their implementation. These simple steps help reduce costs, boost company profits, identify and correct errors, and enhance sustainability.