Marketing product. How does service marketing differ from product marketing? What is a product

04Feb

Hello! In this article, we will talk about marketing in simple words- what it is, why and how to apply it at the enterprise.

Today you will learn:

1. What is marketing, functions and types of marketing;
2. What are the marketing strategies in the enterprise, and what does it consist of marketing plan;
3. What is marketing in business, and how to distinguish it from business to the consumer;
4. What is and how not to confuse it with a pyramid scheme;
5. What is internet marketing, its benefits.

Marketing concept: goals and objectives

There are at least about 500 definitions of marketing. Often with such an abundance of definitions of this concept, it is difficult to understand what is related to marketing.

Explaining in accessible language, marketing Is the activity of an organization aimed at making a profit by satisfying the needs of customers.

V broad sense, many marketers consider marketing as a business philosophy, that is, the ability to study the market, the pricing system, predict and guess the preferences of customers, effectively communicate with them in order to satisfy the needs of consumers and, accordingly, make a profit for their enterprise.

Based on the definition, it is logical that the purpose of marketing in the enterprise is customer satisfaction.

And the famous theorist economist Peter Drucker notes that the main goal of marketing is to get to know the client so that the product or service can sell itself.

To achieve the goal of the organization, marketing activities involve the solution of the following tasks:

1. Detailed market research, in-depth analysis of customer preferences;
2. Careful study of the market pricing system and development pricing policy organizations;
3. Analysis of competitors' activities;
4. Creation of an assortment of goods and services of the organization;
5. Production of goods and services that meet demand;
6. Service maintenance;
7. Marketing communications

When solving marketing problems, you must be guided by the following principles:

1. Study of the production capabilities of the enterprise;
2. The process of planning methods and programs for marketing a product or service;
3. Market segmentation;
4. Constant updating of goods and services, ways of selling them, improvement of technologies;
5. The organization's flexible response to ever-changing demand.

Marketing functions

Marketing has a number of functions:

1. Analytical;
2. Manufacturing;
3. Management and control function;
4. Sales function (sales);
5. Innovative.

Analytical function involves the study of external and internal factors affecting the organization, the study of consumer tastes and the range of goods. It should be noted that it is necessary to analyze the internal environment of the organization in order to control the competitiveness in the market.

Production function includes the development and development of new technologies, the organization of the production of goods and services, the organization of the procurement of material and technical resources necessary for the enterprise. In addition, the production function is understood as the management of the quality and competitiveness of the finished product or service, that is, compliance with the quality of the product in accordance with established standards.

Control and monitoring function provides the process of planning and forecasting at the enterprise, the organization of the communication system, information support and risk management.

Sales function includes the pricing and product policy of the organization, provides a system of product distribution and the expansion of demand.

Innovative function in marketing, plays the role of developing and creating a new product or service.

To solve problems and achieve the set goals in marketing activities, it is necessary to apply the following marketing methods:

• Market research:
• Survey;
• Observations;
• Methods of generating demand and stimulating sales;
• Analytical methods:
• Analysis of the external environment of the organization;
• Consumer analysis;
• Analysis of existing products;
• Planning the assortment of future goods;
• Pricing policy development;
• Information methods:
• Advertising;
• Personal sales;
• Propaganda;
• Consulting.

Thus, based on the definition, goals, objectives, functions and methods of marketing, we can conclude that the science of marketing is focused exclusively on the consumer and the satisfaction of his needs.

Types of marketing

Depends on demand distinguish between the types of marketing presented in table 1.

Table 1. Types of marketing depending on demand

• Demarketing - a type of marketing that is aimed at reducing demand. This situation is possible when demand significantly exceeds supply. To deter consumers, an organization raises the price of a product or service, refuses advertising, and tries to reorient the customer.

A striking example is the use of demarketing in the cold season, when the need for electricity increases significantly. Since this can negatively affect the entire power grid system, and very expensive equipment can fail, marketing workers develop programs to reduce demand or reorient it.

• Conversion Marketing - a type of marketing aimed at creating demand. It is used in case of negative demand for a product or service. To do this, they develop a plan for promoting a product or service, lower prices or re-release the product. To promote a product or service with a negative demand, they use advertising and a PR campaign.
• Incentive Marketing used when there is no demand. It is necessary to stimulate demand, taking into account, first of all, the very reason for the lack of demand.

There may be no demand for products if:

• The product is not relevant to the market;
• The product loses its value;
• The market is not ready for a new product or service;

To interest the buyer and increase demand, the company uses tools such as a sharp decline in the cost of a product or service, strengthening advertising activities, application of methods trade marketing etc.

• Development marketing - a type of marketing in which potential demand must be turned into real one. That is, it is necessary to determine the needs of buyers and create a new product or service that meets these needs.
• Remarketing used in a situation where you need to revive demand. That is, the demand for products is falling and it must be restored by introducing new characteristics and features into a product or service. For example, the first Clear Vita ABE anti-dandruff shampoo based on the new zinc pyrithione formula and the unique Vita ABE formula was created for both men and women. Subsequently, Clear experts proved that the scalp of men and women has a different structure, and released a line of Clear Men and Clear Woman shampoos.
• Synchromarketing - a kind of marketing, in which it is necessary to stimulate demand, as it fluctuates. Synchromarketing tasks include smoothing irregular demand through flexible pricing and different ways product promotion. This type of marketing is usually used in case of seasonal demand or any other cyclical fluctuations, as well as climatic factors that strongly affect demand. A striking example of the use of synchromarketing is the offer of various set meals and business lunches in cafes and restaurants during the day at a reduced price. Since there are much fewer visitors during the day than in the evening, the daily prices are lower than the evening ones.
• Supportive marketing the organization uses it when demand matches supply and it is necessary to continue to stimulate demand for a product or service. To maintain demand at the proper level, it is necessary to correctly conduct a pricing policy, stimulate sales, conduct advertising, and control costs.
• Counter-marketing it is used when there is a constant irrational demand for products, which is contrary to the interests and well-being of the population. In such a situation, it is necessary to stop production and conduct anti-advertising. Countervailing marketing tools are used on products such as alcohol and tobacco.

Depending on the market coverage distinguish between mass (undifferentiated), concentrated (target) and differentiated marketing.

Undifferentiated Marketing Concept assumes a product intended for all market segments. No product differentiation is made; products are sold at low prices.

With concentrated marketing the situation is reversed. Products or services are designed for a specific group of customers.

When using differentiated marketing forces are directed to several market segments. But it is worth noting that a separate offer is created for each market segment. This type of marketing is considered more promising in relation to the previous two types.

Marketing strategies and marketing plan

There are 2 levels of marketing in an enterprise:

• Tactical;
• Strategic;

Tactical, or in another way, operational marketing involves the development of short-term plans to achieve the goals of the organization.

Strategic marketing aimed at developing long-term prospects for the enterprise in the market. That is, the internal capabilities of the organization are assessed on the impact of the external environment of the market.

Marketing strategies are classified into the following groups:

• Market expansion strategy;
• Innovation strategy;
• Diversification strategy;
• Reduction strategy.

Market expansion strategy in other words, it is called a strategy of concentrated growth. That is, the company's strategy is aimed at horizontal development, conquering most of the market in the fight against competitors, improving existing products or services.

Innovation strategy otherwise defined as an integrated growth strategy. That is, the organization's activities are aimed at vertical development - the creation of new goods and services that will have no analogues.

Diversification strategy the organization chooses if the probability of "survival" in the market with a certain type of product or service is very low. Then the organization can produce a new product or service, but at the expense of existing resources.

Reduction strategy it is used when the company is on the market for a long time for more effective work... The organization can reorganize or liquidate.

Also, marketing strategies are distinguished by market coverage:

• Mass (undifferentiated) marketing strategy;
• Differentiation strategy;
• Individualization strategy;

Mass marketing strategy is aimed at the whole market as a whole. Market advantage is achieved by reducing costs.

Differentiation strategy focused on capturing most of the market segments. The advantage is achieved by improving the quality of products, creating a new design, etc.

Consumer individualization strategy is aimed at only one market segment. The advantage is achieved by the originality of the product or service for a specific target group of customers.

Marketing strategy development consists of seven stages:

1. Market research;
2. Assessment of the organization's capabilities;
3. Assessment of competitors' capabilities;
4. Setting marketing strategy goals;
5. Research of market segments and consumer interests;
6. Positioning development;
7. Held economic assessment strategy.

Stage 1. The analysis of macroeconomic indicators, political, social and technological environment, as well as the influence of factors of an international nature.

Stage 2. To assess the capabilities of the enterprise, conduct economic analysis, marketing analysis, production capacity assessment, portfolio assessment and SWOT analysis.

Stage 3. Includes an assessment of the organization's competitiveness. The strategies of competitors, strong and weaknesses, ways to establish superiority over competitors.

Stage 4. In the next step, the goals of the marketing strategy are set.

Stage 5. Includes research on customer needs as well as methods and time to market.

Stage 6. Specialists receive specific recommendations for enterprise management.

Stage 7. An assessment and analysis of the economic strategy and control instruments is carried out.

Summing up a small summary, we can conclude that the marketing strategy reflects a plan to achieve the goals of the company's activities, which assess production capabilities and financial budget organizations.

The marketing plan is inextricably linked with the marketing strategy in the enterprise, that is marketing plan implies a special document reflecting the goals and objectives of the organization's marketing, as well as marketing strategies that will be applied in practice.

To concretize the marketing plan, a marketing program is drawn up, which will indicate who is doing, what to do and how to do it.

To implement your marketing plan, you must adhere to the following principles:

• Rolling planning principle;
• Differentiation principle;
• The principle of multivariance;

Rolling planning principle applies depending on the market situation. This principle involves the introduction of adjustments to the current plan. For example, a marketing plan is designed for 3 years, but the market situation changes quite often, so every year you need to make amendments and adjustments to the plan in order to be competitive.

Differentiation principle assumes that the installed product or service cannot be liked by everyone. Therefore using this principle, it is possible to reorient to service any category of consumers, selected according to certain criteria.

Principle of multivariance provides for the development of several marketing plans at the same time for all possible situations.

The structure of the marketing plan is as follows:

• Define the mission of the organization;

The mission of the organization is to identify the strengths in order to become successful in the market.

• Prepare a SWOT analysis of the enterprise;

SWOT-analysis - This is a situational analysis, which reflects the strengths, weaknesses, capabilities of the organization, as well as threats under the influence of internal and external environmental factors.

• Establish marketing goals and strategies;

It is advisable to set goals and define strategies for each area separately.

• Development of a pricing strategy for the organization;

• Selection of market segments;

In this block, when choosing market segments, the emphasis is on reducing costs and increasing sales efficiency through sales and prices.

• Scheme of selling a product or service;

Here it is necessary to highlight the distribution channels of products, whether they work effectively, in what quantity and how they are implemented in the organization.

• Implementation tactics and methods of promoting sales (marketing);

At this point, it is necessary to determine the methods of selling goods or services that could be successfully used both in the short term and in the long term.

• After-sales service policy;

Here you need to constantly improve the after-sales service system. It is necessary to compare the level of service with competitive enterprises, to improve the qualifications of employees, to monitor their communication skills. In addition, it is worth providing certain guarantees and Additional services to your customers and compare them with your competitors.

• Conducting an advertising campaign;

• Formation of marketing costs;

When drawing up a marketing budget, it is necessary to take into account all the planned expenses, revenues and highlight the projected net profit of the organization.

Thus, it should be concluded that the marketing plan is simply necessary for the successful organization of the enterprise. This is a kind of map that helps to navigate in general in the field of economics, conduct efficient business and be competitive in the market with high profits.

Business Marketing or B2B Marketing

Marketing in business or in another way it is called marketingB2 B (business-to-business, business to business) is defined how business relationship between industrial enterprises in a market where goods and services are not for final consumption, but for business purposes.

B2B marketing should not be confused with marketing B2 C(Business to Consumer, business to consumer), which implies marketing relationships in a market where goods and services are created for final consumption.

Business marketing has distinctive features and characteristic features:

• The demand for business activities stems from consumer demand;
• An organization buys a product or service to achieve its stated goals. That is, a business purchase has a targeted character, rather than a consumer purchase. The client buys this or that product to satisfy himself. That is, the consumer purchase is emotional in nature;
• The volume of purchased goods or services. The company buys goods and services not by piece, but in tens and hundreds of items, that is, it makes large purchases;
• The risk of buying an enterprise is much higher than that of an ordinary consumer. The profit of the organization depends on it;
• Business purchases are made by professionals in their field. The purchase decision is made by several experts in the field;
• In B2B marketing, the seller knows the buyer's needs better and works closely with them;
• The company that makes a business purchase looks forward to further cooperation with the seller. Therefore, the provision of guarantees, service and installation plays a significant role here.

Network marketing

Network marketing (MLM - multi level marketing) is a technology for selling products from manufacturer to consumer, which is advisory in nature and is transmitted from person to person. At the same time, the so-called distributor can not only sell the product, but also attract new sales agents to the company.

The business plan of an MLM company assumes that distributors:

• Have used the product themselves;
• Selling a product to buyers;
• Engaged other sales agents to create a network of business entrepreneurs.

The manufacturer is responsible for organizing the delivery. It ensures that the goods are delivered to the distributor at home. For the effective work of sales agents, master classes, seminars are provided to develop sales skills and achieve success in their business.

For an entrepreneur network marketing is an attractive business, as it does not require experience and a large initial investment in capital.

For the buyer network marketing also looks good, as truly responsible MLM companies provide quality products and a warranty on them. In addition, before buying a product, the consumer receives all the necessary information about it and receives the product at home.

Network marketing involves active and passive income. The agent receives active income for the volume of sales. And passive income is created through the creation and active development of a subnet of distributors.

Nevertheless, even at first glance, network marketing is seen as an attractive business, in addition to advantages, it also has a number of disadvantages.

Table 2. Advantages and disadvantages of network marketing

To attract a potential distributor to the MLM business, you can use the following methods:

• Look for partners among your environment;
• Look for partners among the entourage of your friends and acquaintances;
• to promote products;
• Search for partners through social networks;
• Meet new people and attract them to this type of business.

When it comes to network marketing, then immediately there is an association with such a definition as a financial pyramid, the activities of which are prohibited on the territory of the Russian Federation.

The main difference between network marketing and pyramid schemes is that the profits received by MLM companies are divided between distributors, taking into account the contribution of each. And the financial pyramid receives income from the number of attracted people and their contribution to a non-existent product.

In addition, network marketing can be distinguished from a pyramid scheme by the presence of:

• Marketing plan;
• Company management and articles of association;
• The product itself;
• Training systems.

The pyramid scheme does not have a specific marketing plan, it is very confusing and incomprehensible. The management of the company is anonymous and, moreover, there is no company charter. There is no assortment of goods, there are only a couple of units of questionable products. Also, there is no training system or it costs a certain amount of money, for which cheap advertising brochures are issued.

In network marketing, training of sales agents is provided on a free basis, or training disks, books or videos on the Internet are issued for a symbolic amount.

Striking examples of the successful development of network marketing are Amway, Avon, Oriflame, Faberlik and Mary Kay.

Summing up a small summary, we can conclude that network marketing is aimed at promoting the product and rewarding the distributor for the work done, and the main goal of the financial pyramid is to attract people and their monetary investments.

Internet Marketing

Internet marketing is currently a relevant innovation for the promotion of goods and services.

Internet Marketing is an application of traditional marketing activities on the Internet.

The purpose of internet marketing- making a profit by increasing the number of visitors to the site or blog, who in the future will become buyers of certain goods and services.

The tools for increasing the sales of goods and services and increasing the number of website traffic are:

Helps to build and strengthen relationships with a specific target group that subscribes to the newsletter.

• Traffic arbitrage - buying and reselling traffic at a higher cost;

Internet marketers face the following challenges:

• Promote products and services using;
• Create interesting content for target audience;
• Recycle the information received;
• Monitor the work of the site;
• Maintain the company's image on the Internet;
• Recruit specialists with a narrow focus to perform a specific job.

Online marketing includes the following elements: product, price, promotion, place.

Online marketing involves strategies such as:

• Viral marketing;
• Comprehensive online marketing;

Viral marketing is the most challenging yet most rewarding online marketing strategy. She's focused on creating so much interesting information, which everyone will view hundreds of times, constantly like and repost.

Viral attraction of people is applied with the help of:

• Using videos;
• The use of online games;
• Use of the company's website;
• Writing a provocative article that can resonate and be discussed among users;

Effective performance and success can be achieved by combining viral marketing with in social networks with advertising.

The main virtues of viral internet marketing are the simplicity and speed of action. In addition, viral internet marketing is cost effective as it does not require a lot of investment. Advertising law does not apply to viral ads. That is, there is no censorship, no restrictions, which makes internet marketing more free.

Essential the downside of viral online marketing there is insufficient control over the process, and the supplied material may be distorted.

Comprehensive internet marketing implies a set of all kinds of resources and advertising channels for promoting a product or service to the market.

The structure of integrated internet marketing is as follows:

• Strengthening traditional marketing;
• Processing of all market segments;
• Advertising profit reports;
• Sales control in branches;
• Building unified system promoting a product or service;
• Telephony construction;
• Sales training;

Under PR (PR) means increasing brand awareness. This strategy should be used by all companies, regardless of position, as it helps to increase company revenues, attract potential customers, and the brand becomes recognizable and popular on the Internet.

Having considered the goals, tools and strategies of Internet marketing, we can highlight its advantages:

• Large coverage of the target audience;
• Getting information at home;
• Low advertising costs.

Conclusion

In conclusion, I would like to say that marketing is a very interesting science for entrepreneurs. Knowing how a marketing plan is drawn up, when and where to apply one or another marketing strategy, you can stay competitive on the market for a long time, while making good profits. And, having mastered internet marketing, you can achieve even greater success in.

Do you know how service marketing differs from product marketing? There is a big difference between the two, which you can understand by reading the explanations below.

What is product marketing

This is primarily the marketing of wealth. Tangible goods include concepts that can be touched and viewed. The concept is based on 4 factors of success - Product, Price, Distribution and Promotion.

It is based on the general needs and accumulated consumer experience of existing and potential customers. For an entrepreneur, this is a continuous process of maximizing profits by promoting a product and selling it to its target audience, who naturally need it.

Features of service marketing

First, service marketing is marketing of the buyer-seller relationship. Second, if goods are easy to compare and substitute for, services differ from each other on a more conceptual level. Abstract concepts and highly subjective judgments come to the fore.

Key Differences between Service Marketing and Product Marketing

Material and non-material

Any product is tangible - you can physically touch it, it has packaging and usually an expiration date. A service is a form of communication between a seller and a buyer in the interests of the latter. It cannot be the same for every client every time it is used. Think about hotel service. Rates for accommodation in a hotel room depend on the level of service and seasonality. The quality of services in the same region may differ in different hotels of the same star rating. The various services of the hotel itself may also differ in the quality of the service provided. And if you look at the reviews of two different guests, then they can be diametrically opposite.

Three more points need to be added to the classic 4p marketing concept: people, process, physical evidence.

Staff service company a general impression of the seller as a whole and his services is formed. This directly affects customer satisfaction or dissatisfaction.

The process of providing a service, its duration, whether it meets the expectations of the consumer, directly affects the profit of the service company.

The confirmation of the quality of the service is formed by the image of the company. Does she have recommendations, positive reviews, certificates. An important factor is the very environment in which the transaction is made, the atmosphere of communication between the seller and the buyer.

Pricing

Price is the most important factor in marketing. This is what the buyer sees. This marketing tool has the most powerful and quickest reaction from the market.

When a customer purchases goods, he expects the price set to include the quality of the raw materials for their production, the delivery and storage of the goods, and an acceptable shelf life to meet their needs.

However, if a client buys a service, he will choose the provider that will meet his expectations of professionalism and competence, status and efficiency. Therefore, service providers of different levels can be present on the service market at the same time. And only the accumulated experience of customers will determine the value of each service seller.

Sale of goods and services

When purchasing goods, the buyer intuitively chooses the most accessible point of sale. If desired, he can replace the seller at any time because competitors have a similar product.

In services, there is a barrier to such easy interchangeability. The reason is simple and straightforward; the service cannot be separated from the service provider. When you need to turn to the services of a hairdresser or surgeon, the client turns to the one he trusts more.

Standardization and uniqueness

Goods and services are produced in accordance with GOSTs, and must comply with market norms and the needs of the target audience.

At the same time, manufacturers of goods are obliged to strictly adhere to technical conditions and production regulations in order to manufacture a standard product. Market regulators ensure that the product is properly certified and does not allow products that do not meet standards to enter the market. Customers purchase similar and inherently easily replaceable products.

The services, although also based on the technical requirements of the standards, differ from each other primarily due to the unique needs of the customers and their perception of individual quality. Such adjustment of the service company to the customer's requirements creates conditions for a deeper differentiation of services in the minds of consumers. Thus, a noticeable uniqueness is formed, despite the use of routine procedures.

Ownership

Ownership of goods is subject to change. Simply put, you can sell them. For example, by being the owner of goods such as a car, residential or commercial property, any Appliances(the list goes on), you can resell them or rewrite them to another owner.

But you cannot do the same with the result of the service received. You got your new hair done at the hairdresser, had a great vacation at the resort hotel, and so on. All this will belong only to you, and the benefit that you subjectively estimate will remain in your mind.

Quality

We already understand that the quality factor will also be different for services and goods. The general point will be a feeling of satisfaction with the purchase.

Quality finished products depends on raw materials, technology, equipment and mechanisms. Raw materials and machines can be replaced, they are inanimate objects and are only resources for the company.

Each service provider is different in terms of service, as they have an animate, human quality that sets each person apart from others. The service exclusively depends on the client's attunement to the service provided, the skill and experience of the contractor, as well as the motivation promised by the service provider to the client. Quality assessment depends solely on the client and his needs.

Scalability

Expansion of the production of goods depends on the demand and material capabilities of the business. This is solved simply by observing the specified factors, increasing the production of the product in accordance with the requirements of the customers. There is an increase in the coverage of an increasing number of buyers, by increasing the distribution of goods in a growing market. Scaling up services is not as easy as expanding production of goods.

This will require adding more staff, training a new team in working methods, or hiring experienced professionals, which involves hiring employees from competitive companies. All this will entail additional costs of money and time in order to maintain controllability and maintain quality. The risks of losing existing customers due to the human factor are increasing.

Brand or business person

When it comes to merchandise, be it product manufacturing, product management, or product marketing, important factor recognition becomes trademark... The company's management influences the design of the product, the quality of production technology, its distribution and much more, which contributes to the increase in sales and growth of the company's profits. These are the real, main faces of the business.

When it comes to services, employees who are directly on the "front line" become real heroes. First of all, the total income of the company depends on the quality of their work. Managers act as organizers of the process, contribute to the growth of the company's profits, and develop successful marketing strategies aimed at business growth.

Let's summarize

Service marketing and product marketing have much in common, but fundamental differences affect marketing strategies, sales organization and distribution, production costs and control systems implemented, etc.

Perfect product and impeccable service are distinguished by people. Each person participating in the supply-consumption chain has a choice, having a unique set of needs. Marketing creates and develops conditions for awareness of how to meet the desires of the target audience. The main goal of a marketing strategy remains the same for both goods and services - it is to strengthen the business and increase profits.

Marketing for government and public organizations Philip Kotler

Measures marketing products

Product Marketing Measures

Perhaps the simplest and most straightforward are measures associated with marketing products, sometimes also called process indicators. As the name implies, these measures reflect quantitative estimates of the levels of intensity of marketing efforts. Most of these fall into the incentive category, as the term “product” is associated with the messages your agency sends to the market.

The most common measures of product marketing that can usually be found in documents and databases are:

number of materials distributed(for example, the number of brochures distributed by the police about theft of information containing the identity of citizens);

coverage and frequency of advertising(for example, estimates of the number of citizens who have heard state-sponsored radio advertisements and seen posters on buses warning of identity theft, and the number of times they have been exposed to these advertisements);

number of impacts through other communication channels(for example, the number of supermarket shoppers who may see identity theft warnings on plastic grocery bags);

number of mentions and duration of airtime in news channels and the expected number of people who will be reached by the messages being distributed (for example, the number of minutes on a local television station's news bulletins and the number of people who usually watch the program);

number of special events and the expected number of people who visited them (for example, the number of presentations by police officers to local community groups and the number of people who attended them);

expended resources- time and financial (for example, the amount spent on the development and implementation of elements of the campaign against theft of identifying information, and the amount of time spent by staff to manage the campaign);

other activities marketing-related, targeting audiences (for example, the number of links you were able to establish with relevant websites, in particular police station websites).

Note that product measures say nothing about how customers or citizens react to you. They only reflect “the intensity of your efforts” - what elements of the campaign you used, how much it cost you and how many expected number of citizens (ideally members of the target audience) you were able to reach.