There are several views and definition of marketing. The most widely accepted definition is that of the American Marketing Association, the professional organization for marketing practitioners and educators, which defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives”
Elements of Marketing
Marketing is by definition a process of planning and executing to meet consumer needs. It understands what are actual consumer wants and needs. Marketing research is the process in which collection of data by systematically helps to identify consumer’s needs. The Four Ps
The heart of marketing strategy is the development of a response to market palace. Marketing by definition explains the concept of execution, pricing, promotion and right placement of goods, ideas and services. To respond to customers, a good organization develop product according to willingness of its purchaser, identify appropriate place for availability and finally and promote its product to create familiarity in its customers mind. Product, Price, Place and promotions are four Ps of marketing which are use many organizations to define its marketing strategy.
Product: Product represents goods, services, or ideas offered by a firm. Price: Price focuses on what customers are willing to pay for services. What price actually suits to consumer to buy goods? A company provides good or services and a customer willing to exchange dollars to satisfy its needs. Place:
Place represents the way or specific area in which company will distribute its goods or provide services to its customers. This decision company takes after careful and effective marketing research. Promotion:
The final P represents promotion. Historically it is renowned with advertisement which is mean marketing. Promotions activities involve creating awareness in consumers mind to understand how they can meet their needs.
Second approach is to define STP’s
STP (segmentation, Targeting, Positioning) Segmentation: It is Process of dividing the market according to similarities that exist among the various subgroups within the market. The similarities may be common characteristics or common needs and desires. One of the main reasons for using market segmentation is to help companies to better understand the needs of a specific customer base. Mass marketing assumes that all customers are the same and will respond to the same advertising.
By looking at ways in which potential customer groups are different from each other, the marketing message can be better targeted to the needs and wants of those people. Market segmentation strategies that meet these criteria can cover wide range of consumer characteristics. Subsets may be defined by basic demographics like age, race, or gender, for example. Other qualities, like educational background or income can also be used, as can location. Some of the potentially most powerful variables by which to segment a market are behavioral ones, including social class, lifestyle, and interests.