This article is for people who want to understand marketing basics in simple terms / Layman language.
What is marketing?
Marketing is the process of driving profitable action by customers. It’s a strategy/tactics an organization uses to promote products/services in the marketplace, and motivate target audiences to make a purchase.
The P’s of Marketing:
There are many articles which talk about various P’s of marketing, so let’s see basic P’s and its simple definition of it.
- Product: You need to determine the niche product and variations of it that you want to sell or service and the effective marketing starts with a good understanding of your own product.
- Price: Marketing is all about driving profitable action, so you need to set the price at which people will be willing to pay (i.e. Market price).To know the market price do a market analysis of a product, how competitors are pricing the product and the niche you are in. And also understand that the overall cost of the product depends on how well you know it. Price is always the determining factor when it comes to things like supply, demand, profit margin, etc.
- Promotion: Once your product is set and ready to launch you want people to know about it but how you get the word out about your product and market it to your target audience is promotion. And it could be traditional marketing method like TV, Newspaper, Billboard ads etc. and digital marketing method like social media campaigns, content marketing etc.,
- Place: This is where your products are sold based on the type of product/service you want to sell to your customer. It can be your online/physical store based on product type.
These are the core concepts that you have to follow and it never changes whether it’s a physical goods or a service
Flow chart of marketing lifecycle
Now let’s look at some of laws of marketing to be successful:
- Marketing is a battle of perceptions, not products or services.
- It’s better to be first than being in another position because mostly people remember 1st or 2nd position.
- Choose the right category that you can be first in and excel in it.
- Study your customers, market and trends to find the right move that works.
- Not every first is going to be successful. The timing also plays an important role.
- If you can’t be first in a category, set up a new category you can be first in.
- Ex: IBM was the first in computers. DEC competed by becoming the first in minicomputers.
- Forget the brand. Think categories and when you’re the first in a new category, promote the category. In essence, you have no competition.
- Marketing is not a battle of products, it’s a battle of perception.
- It’s an illusion. There is no objective reality. There are no facts. There are no best products.
- All that exists in the world of marketing are perceptions in the minds of the customer or prospect.
- The perception is the reality. Everything else is an illusion.
- Marketing is a manipulation of these perceptions.
- The essence of marketing is narrowing the focus. You can’t stand for something if you chase after everything.
- In the long run, every market becomes a two horse race (i.e. two player market).
- Marketing effects take place over an extended period of time.
If you want to understand in-depth concept of digital marketing then click here.