You probably know that by drawing uporganizational plans for the production and marketing of products for the future of a strategic and operational nature are handled by the department responsible for the complex of marketing at the enterprise. Actually, this complex will become the main topic of the article.
Definition of marketing
To begin with, we give a scientific definition of the concept"marketing". Marketing is a multi-component system for approving the structure of production and further marketing products (both sales of goods and services), which is based on satisfying consumer demand by anticipating the preferences of potential buyers. Enterprises today are developing in rather difficult conditions of a market economy. It is quite natural that the market determines a whole range of tasks and issues that firms need to find the answer to.
The main issues of the market economy for the participants are the following:
- What and how to produce?
- How many products are required to be produced?
- How to effectively organize the internal planning and management of the production process?
- Who will buy the products produced?
- Which way of survival in a competitive market environment will be most effective?
- How to work out the best way of distributing goods between potential buyers?
If you do not like scientific definitions, just remember these questions, because in fact, marketing is responsible for them.
Production and sales plans
The organization's plans mentioned above includeforecasts of future market conditions, short- and medium-term objectives of the company's activities. In addition, the plans include the development of a marketing complex (such a PR-company): the strategy of behavior and tactics of the enterprise in the market, its price, product orientation and marketing policy, as well as the advertising or communication path of action.
Definition of the marketing complex
The marketing mix is a collectioncontrolled non-permanent marketing factors, used mainly to provide interest and positive feedback to the target audience of the market.
Otherwise this complex is called marketing-mix.The marketing function of "mix" is to form a set of elements of the marketing mix. The complex, not just satisfying the needs of the target audience of potential consumers, but also bringing the efficiency of the organization's activities to the maximum.
"Marketing-mix" is used mainly to solve the tasks posed in the marketing policy of some economic entity tasks at a certain market segment during the development of the complex.
Brief history of the marketing complex
The first attempts to systematize the disparatemarketing tools were committed in the middle of the last century. The term "marketing mix" appeared in J. Kalliton's article. It seemed that the author decided to work out some recipe for the effective solution of marketing tasks.
Albert Frey first expressed the idea that the marketing variables must necessarily be divided into two main groups:
- constitute a proposal (brand, packaging, price, product, service);
- form ways and means (advertising, distribution channels, PR, sales promotion, personal sales).
The 4P model, which became a marketing classic, wasproposed by the American Jerry McCarthy in 1964. It was a complex of marketing from special components: product, price, place, promotion. By a lucky chance, all elements started with P (it is not established that the author selects them intentionally). Actually, this odious way and formed the current model name - 4P. The name became a fundamental factor in the popularity of this marketing model because it was simple and easy to remember. For the first time the McCarthy concept called 4P was shown to a wide audience in 1965, the presentation was organized by the author of the article with information about 4P Neil Boden. Paradoxically, such a long-standing model of marketing has indeed become (and continues to be) universally accepted, while innovative and revolutionary models of the present can not repeat or even approach its success.
More or less acceptable specialistsrecognize the model developed by Booms and Bitner in 1981. The authors in the new concept added to the four P three more: the process, people, physical justification (for example, the rationale for providing the service). For a long time over the title, Bitner and Booms did not think, having decided that the 7P was quite original and acceptable. (About this further.)
One of the most revolutionary marketing modelsBob Lothborne suggested in 1990. The author decided to speak at a scientific conference, outlining in his report the main principles of building the 4C model. (Read more about this concept below.)
Dev and Schulz created in 2005 the model SIVA,Innovatively reflecting the classic 4P user's eyes. That year in general proved to be rich in marketing revolutions: Otlakan proposed the model 2P + 2C + 3S (information about both models - in this article.)
General characteristic of marketing
Marketing is arranged so that the entire system is builton the availability of the goods themselves. No product - no marketing. However, simply finding a product is not enough, it must necessarily have some value (utility) for the consumer. The product of the proposal should be available to the consumer who is interested in acquiring it, otherwise the proposal does not make sense. If there are at least two parties interested in exchanging with the opposite participant of economic relations, there must necessarily be any means of interaction between them. Actually, the solution of these tasks is marketing.
Ratio that determines the consumerconsciousness, sounds like "price-quality." The buyer always evaluates the product based on the amount of costs spent on its acquisition. The above ratio can be given as a variant of "price-utility": the consumer analyzes how useful this acquisition can become for him and what price he is willing to pay for this utility.
Another element of the marketing complex -communication. Otherwise, how does the manufacturer know about the consumer. Parties to the transaction will certainly communicate, otherwise they would be very difficult to solve the tasks.
There are classic and non-classical variants of the marketing complex.
Classic elements of the marketing mix:
- Product. This notion includes both goods and services: packaging and design, technical characteristics, assortment and its definition, quality level and many others.
- Price.The next element has the value of determining such characteristics as the rate of profit, cost, discounts, the optimal price for the consumer, the value of the product in consumer perception, and so on.
- Distribution (reaching the product to the instanceconsumer). In this case, we are talking about the choice of points of sale (outlets), intermediaries in the transaction, channels and ways of distribution of products, and so on.
- "Promotion" product.Promotion of the product on the market means working to establish effective public relations and personal sales, as well as advertising mechanisms, promotion of sales of products and the like.
It is not necessary to say separately that between allmarketing channels are established communication channels. Thus, the qualitative characteristics of the product and its functional (capabilities) have a completely justified effect on the formation of the price of the goods. This particular example is connected with the fact that the consumer (often at the intuitive level) evaluates his purchase on a single criterion - the ratio of price and efficiency (utility). That is, the buyer unknowingly compares the value of the goods with the set of benefits that this product will be able to offer to him.
Classical structure of the marketing mixis a concept of 4P: product, price, place, promotion. Actually, all the elements of the model are described in detail above. The 4P marketing mix determines the organization's policy in the areas of commodity sales, price characteristics, sales and networking. However, the main thing in determining the vector of activity of any enterprise is directly realization of products. In its process, the elements of the marketing complex may well change. Permutations in this case - a means of more effective impact on consumers, possible with the resources available to the organization. In this case, there is a real possibility of "betraying" the company to itself, so it is extremely important to maintain your own understanding of marketing and follow a particular marketing path.
In modern conditions there is a constantdevelopment, and, consequently, complication of the competitive market component. In this regard, in the improvement of the marketing mix, new elements are added, forming the concepts of 5P - 12R, 4C and others. However, the increase in the components of the concept of "marketing complex" by far not all specialists provokes a strong positive reaction.
The main cause of discontent, singled out by theopponents of the idea of expanding the complex, consists in the possibility, in their opinion, of breaking and deforming the very concept of marketing as such, transferring the role of additional elements from the management plane of marketing. It is also important that the four main components can indeed be comprehensively studied and controlled by marketers, which is difficult to say about the additional elements.
The most successful of all the options for expanding the 4P model, experts recognize 7P. To the four P, mentioned earlier, are added:
- People (people) - all who have anything to do with buying and selling.
- Process (buying process) - an active choice by the consumer of the desired product.
- Physical Evidence (physical attribute) is a kind of material object that satisfies the client as evidence that the service has been rendered and is completely legitimate.
The model with seven R was originally created for the marketing of services, but is now actively used in the commodity version.
Criticism of experts is subjected to the maina 4P marketing mix for targeting a micro-level or the fact that only the seller is affected. As part of the expansion of this concept, the number of P in the marketing economy increases.
- Purchase - the reasons and consequences of the purchase.
- Package (packing) - is not only a prerequisite for the implementation of the purchase, but also the consequences.
- Profit (profit).
- Physical Surround (environment) - updated conditions for increasing efficiency, implemented by the manufacturer.
- PR (public relations) - forms positive consumer perceptions about the organization.
A very bold attempt to shift the focus to the consumer is the formulation of the 4C model. Its main drawback, which does not allow the concept to function effectively, is an absolute rejection of P-components.
This marketing mix includes:
- Customer needs and wants.
- Cost to the customer (consumer costs).
- Convenience (convenience of the consumer).
All component components of the model are visuallydemonstrate the attempt of reorientation from the producer to the consumer at all stages of both the production of products and the subsequent sale of the goods. There is also a desire to create an antagonist of four R. But the author apparently did not think that the classical elements of the marketing complex also take into account the needs of the buyer in one way or another. When using the 4P concept, no one will leave the analysis of customer expectations, other research in the field of marketing. Moreover, in addition to manufacturers and consumers, the 4P model takes into account both competitors and suppliers.
A relatively new alternative to tradition (SIVAwas published in the journal Marketing Management in 2005). No wonder we use the definition of "alternative". In this version of the marketing complex, the replacement element SIVA is chosen for each component of the classical 4P concept. Classics seem to be represented "from the wrong side" - the gaze of the consumer.
The ratio 4P and SIVA looks like this:
- PRODUCT -> SOLUTION (solution).
- PROMOTION -> INFORMATION.
- PRICE -> VALUE (value).
- PLACE -> ACCESS (access).
And now more about each of the four elements of SIVA:
- Solution (solution). Search for the most acceptable solution to the problem in order to fully meet the needs of the buyer.
- Information. Who should provide the consumer with information about the product and how to do it to ensure the sale of the goods.
- Value. On the costs and benefits of the buyer, on his losses and remuneration.
- Access. In what sources should the buyer seek help in deciding how easy it is to find or acquire a particular source.
2P + 2C + 3S
The model of Otlakan refers exclusively toe-marketing, presenting a complex of marketing services and narrowing. Actually, this is the main shortcoming of the concept. And now we will specify all the elements of the model:
- 2P - Privacy (confidentiality), Personalization (personalization).
- 2C - Community, Customer Service.
- 3S - Sales Promotion, Security, Site.