Basics of marketing. Guide business growth for small businesses

According to basic marketing, Marketing is the process of organizing sales forces to sell the goods produced by the company. Marketing is the process of advertising and sales. Marketing is a process of understanding and satisfying market demands. Marketing is a market, market research to satisfy it.

There are many different ways to define Marketing. Marketing is the process of organizing sales forces to sell the goods produced by the company. Marketing is the process of advertising and sales. Marketing is a process of understanding and satisfying market demands. Marketing is a market, market research to satisfy it. We can also understand that Marketing is the social and economic mechanism that organizations and individuals use to satisfy their needs and desires through the product exchange process in the market.
According to Philip Kotler, marketing is understood as follows: Marketing is a social management process, whereby individuals and collectives get what they need and want through creating, offering and giving. change valuable products with others.
This concept of marketing is based on core concepts: needs, wants and requirements, products, values, costs and satisfaction, exchanges, transactions and relationships, markets, marketing and marketing people. These concepts are illustrated in the following figure:

Needs, desires and requirements

Marketing thinking starts with the real needs and desires of people. People need food, air, water, clothes and shelter to take refuge. In addition, people are very eager to rest, study and other services. They also have a preference for specific models and brands of basic goods and services.
Statistics show that, in a year, 249 million Americans can consume or use 67 billion eggs, 2 billion chickens, 5 million hair dryers, 133 billion km of domestic travel passengers by air. and more than 4 million lectures by professors of English language schools. These consumer goods and services produce more than 150 million tons of steel, 4 billion tons of cotton and many other means of production.
Need to clearly distinguish the concepts of needs, desires and requirements. Human need is a state of feeling of a lack of some basic satisfaction. People need food, clothing, shelter, safety, wealth, esteem and some other things to survive. These needs are not created by society or marketers. They exist as a constituent part of the human body and human body.
Desire is a desire to have specific things to satisfy those deeper needs. An American who needs food and wants to have hamburger, needs for clothes and wants to have a Cardin suit, has a need for respect and wants a Mercedes. In another society these needs are satisfied in another way: Australian Aborigines satisfy their hunger with penguins; Demand for clothes with a piece of clothing; The esteem with a chain of snail shells to wear the neck. Although people's needs are few, their wishes are many. Human desire is constantly evolving and shaped by social forces and institutions, such as churches, schools, families and business companies.
Requirement is the desire to obtain specific products backed by the ability and attitude willing to buy them. Desire becomes a requirement when purchasing power is available. Many people want a Mercedes, but only a handful are able and willing to buy it. So the company not only has to quantify how many people want their product, but more importantly, to quantify how many people are really ready and able to buy it.
These differences have shed some light on the common criticism of marketing critics, "marketers create demand" or "marketers seduce people to buy things they don't desire". Marketers do not create demand, demand already exists before marketing people. Along with other influencing factors in society, marketers have an impact on expectations. They encouraged the idea that the Mercedes car would satisfy the need for human social status. However, marketers do not create a demand for social status. They impact demand by making appropriate, attractive, affordable and easy-to-find products for target consumers.

Product

People satisfy their needs and desires with goods and services. The term product here is understood as both goods and services. We define a product as anything that can be offered to satisfy a need or desire. The important meaning of physical products comes not from owning them, but from getting the services they bring. We buy a car not to look at it but because it provides transportation. We buy a kitchen not to admire but because it guarantees a cooking service. So physical products are really the means to ensure our service.
In fact, the service is also ensured by other factors, such as people, places, activities, organizations and ideas. If we feel sad, we can go to a comedy club to see a comedian performing, joining a single club (organization) or accepting a different philosophy of life (idea). So we will use product term to refer to material products, service products and other means that can satisfy a desire or a need. Sometimes we will use different terms instead of products, such as goods, satisfaction factors or resources.
Manufacturers make the mistake of focusing on their physical products rather than the services that those products perform. They only think about consuming products, not guaranteeing a demand. But a woman did not buy lip wax, but she bought "a hope" to beautify her. The carpenter does not buy a drill, but buys a "drill hole". Material objects are just a means to package a service. The job of a marketer is to sell the benefits or services contained in physical products, rather than describe their physical properties. Sellers only pay attention to physical products, not the needs of consumers who are "short-sighted".

Value of cost and satisfaction

Among many products that can satisfy a certain need, how will consumers choose? Suppose, every day a person has to work 3 miles away. There are a number of products that can satisfy this demand: roller skates, bicycles, motorcycles, cars, taxis and buses. These options create a set of product selection capabilities. Suppose that person wants to satisfy some additional needs on the way to work, namely speed, safety, comfort and savings. We call that set of needs. Now each product has a different ability to satisfy the different needs of that person. For example, bicycles are slower, less safe and more energy efficient than cars, but are more economical. In any case, the person must decide which product will satisfy the most complete demand.
The key concept is value to customers. He will assess the ability of each product to satisfy his needs. He can rank products from the most satisfying category to the least satisfying type. Value is a consumer appreciation of the overall ability of the product to meet its needs.
We can ask him to visualize the characteristics of an ideal product for those tasks. He can answer that the ideal product will take him to work momentarily with safe, effortless and zero cost. Then the value of each actual product will depend on how close it is to that ideal product.
Suppose that he cares primarily for speed and comfort when working. If he is free to use any of these products, we can predict that he will choose a car. But now a new problem arises: the cost of buying a car is much greater than the cost of buying a bicycle, so he will have to give up many other (valuable) things to buy a car. So he will consider the value and price of the product before he chooses. He will choose which product creates the largest value on a dollar.
Researchers of consumer behavior today are beyond the narrow framework of economic theories about how consumers judge value and choose products.

Exchange, transactions and relationships

The fact that people have needs and desires and can attach value to a product has yet to fully explain the meaning of marketing. Markerting occurs when people decide to satisfy needs and wants through communication. Exchange is one of four ways for people to get products.
The first way is self-production. People can solve hunger by hunting, fishing or gathering fruit. They don't need to have sex with anyone else. In this case, there is no market and no marketing. 
The second way is rape. Hungry people can snatch or steal food from others. Those other people don't benefit anything except one thing.
The third way is to ask. Hungry people can come and ask other people for food. They have no tangible things to exchange, except thanks.
The fourth way is to exchange. Hungry people can bring money to others, other goods or services in exchange for food.
Marketing arises from this fourth product method. Exchange is the act of receiving a desired product from someone by giving that person something. Exchange is a decisive concept, creating the foundation for marketing. Exchange only occurs when the following conditions are satisfied:
1. At least two parties must be present. 
2. Each party must have something that can be valuable to the other party. 
3. Each party must be able to self-trade and transfer their goods. 
4. Each party has the freedom to accept or reject the offer of the other party. 
5. Each party is confident that he or she wants to deal with the other party.
If there are enough five conditions, there is a potential for exchange. Whether or not the exchange actually takes place depends on whether the two parties can negotiate the conditions of exchange that are beneficial to both parties (or at least not harmful) compared to before giving. change. It is because of this meaning that exchange is seen as a process of value creation, meaning that exchanges often make both parties more profitable before exchanging.
Exchange must be viewed as a process, not an event. The two sides are seen as participating in the exchange if they are negotiating to reach an agreement. When an agreement is reached, we say the transaction has taken place. Transaction is the basic unit of exchange. The transaction is a sale of values ​​between the two parties. We can guess that: Party A gave Party X and got the Y back. However, the transaction does not require money as one of the values ​​to be traded. A barter transaction means that the person gives the other person a refrigerator and receives a TV battle. Barter transactions can also be the purchase and sale of services instead of goods, such as when a lawyer writes a will to the doctor in exchange for a medical examination ...
The transaction requires a factor: at least two values, agreed upon implementation conditions, agreed time of implementation, agreed place of implementation. Usually there is a legal system that supports and obliges trading parties to comply with their commitments. Trading is easy to generate conflicts due to misunderstandings or deliberate. Without the "contract law", people will be unreliable in the transaction and all lose.
Businesses to track their transactions and classify them by item, price, location and other events. Sales analysis is the analysis of the company's revenue origin by product, customer and location ...
Transactions are different from transfers. In handing over Party A to Party X but not receiving tangible objects. When Party A gives Party B a gift, a pension or a charity contribution, we say it is a transfer, not a transaction. It seems that marketing is limited to research transactions, not transfers. However, the transfer behavior can also be explored through the exchange concept. Usually the transferor has certain expectations for giving gifts, such as receiving a thank you or seeing the recipient having better behaviors. Professional fundraisers understand very well the "reciprocal" motives of benefactors and invite them to attend the ceremonies.
In the most general sense, marketers are looking for ways to get the reaction from the other side. A business company wants to respond that is buying behavior, a political candidate wants to respond to that is voting behavior, the church wants to react that is religious behavior, social activity group If you want to react, it is the act of accepting your ideas. Marketing includes activities conducted to create the desired response to an object from the target public.
In order to ensure smooth exchanges, marketers must analyze what each party expects to give and receive. Simple exchange situations can be performed with a profile in which two people join together with the desired things and the invitation to circulate among them.
Here we have seen the nature of marketing transactions. Trading Maketing is a bigger part of the idea than relationship marketing. Wise marketers try to build long-term, reliable, mutually beneficial relationships with big customers, distributors, agents and suppliers. This is done by promising and always ensuring high quality, attentive service and affordable prices for the other side. That task is also done by building close economic, technical and social ties with partners. Relationship marketing will reduce transaction costs and time and in the best cases the transaction will shift from having to negotiate each time to becoming a routine job.
The end result of relationship marketing is to formulate a unique asset of the company, called a marketing network that includes the company and its suppliers, distributors and customers that the company has built. build strong and reliable relationships in business. Marketing tends to shift from trying to maximize profits in each transaction to maximize the mutually beneficial relationships with partners. The working principle is to build good relationships and then self-define transactions that will be beneficial.

Market

The market includes all existing and potential customers who have a specific or willing or desirable need and ability to participate in the exchange to satisfy that need or desire.
Thus the size of the market depends on some people who have needs and have resources that are of interest to others, and are willing to bring those resources in exchange for what they want.
At first, the term market was meant to be a place where buyers and sellers met to exchange goods, such as a village market. Economists use market terminology to refer to a group of buyers and sellers dealing with a specific product or class of products, such as housing market, grain market ... However , marketers again see the seller as a manufacturing industry, considering the buyer meeting the market.
Business people use market terminology to refer to different customer groups. They talk about market needs (such as the daily food market), product markets (footwear market), demographic markets (such as youth markets) and geographic markets (like markets). Vietnam). Or they expand the concept to refer to non-client groups, such as the voter market, the labor market and the philanthropic market.
In fact, modern economies all operate on the principle of division of labor in which each person specializes in producing something, receiving payment and then buying necessary things with that amount. Thus, the modern economy has many markets. Mainly manufacturers look to resource markets (material market, labor market, money market ...) to buy resources, turn them into goods and services, sell them to the middle people. Time for middlemen to sell them to consumers. Consumers who sell their labor take money to pay for the goods and services they buy. The state is another market that has several roles. The state buys goods from the resource markets, the manufacturer market and the intermediary market, pays them, taxing those markets (including consumer markets), then securing the necessary public services. Thus, each national economy and the entire world economy constitute complex sets of markets that interact with each other and link together through exchange processes.
Thus, the market concept has brought us back to the starting point as a marketing concept. Marketing means human activity taking place in a relationship with the market. Marketing means working with the market to make potential exchanges a reality for the purpose of satisfying the needs and desires of people.
If one side is more actively looking for a way to exchange than the other, we call the first party a marketer and a second party a prospect. Marketers are people who seek resources from another person and are willing to offer something of exchange value. Marketers seek a response from the other side to sell or buy something. In other words, marketers can be sellers or buyers. Suppose, some people want to buy an attractive house that has just been completed. So those buyers are also marketing! In case both parties actively seek to exchange, we say that both sides are marketers and call that case marketing each other.
In the case of normal marketers is a company that serves the market of end users facing competitors. Companies and competitors send their respective products and messages to end users directly or through marketing intermediaries (intermediaries and trade promoters). Their relative effect is influenced by their respective suppliers as well as by the major forces of the environment (demographic, economic, physical, technical, political, social, cultural, etc.). ).
After studying these concepts, we would like to recall the marketing concept as follows: Marketing is the social and economic mechanism that organizations and individuals use to satisfy the needs and demands ( desires) through product exchange processes in the market.

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