Concept and functions of marketing

Many people often think that marketing is only related to the promotion or advertising a business, but the fact is that the promotion and advertising are just two of the many aspects covered by the marketing.

Overall, marketing (also known as marketing or marketing) is the set of activities that allow a company to find a market to target and serve you in the best way possible.

Examples of these activities are seeking business opportunities, analysis of consumers, competitive analysis, product design, product promotion and distribution of products.

So when you are looking for business opportunities, analyzing consumers and competition, and designing, promoting and distributing products, it can be said that it is “applying marketing”.

But this explanation has not yet become clear what the marketing, the best way we can understand their concept is through knowledge of its main functions.

Let’s look at what are the main functions of marketing, in other words, what are the main features of the area, department or persons responsible for marketing in a company are:

Search for business opportunities

The first function of marketing is to find, identify and analyze business opportunities that may exist in the market.

This search for business opportunities is through a market research to identify and analyze needs, problems, desires, changes and trends in the market. For example:

  • the need to save energy could mean the opportunity to develop products which address this need.
  • the problem of the lack of security could mean the opportunity to offer services to help deal with the problem.
  • the desire to wear unique, original and innovative clothing could mean the opportunity to start a clothing business meets that desire.
  • changes in consumer preferences for healthy foods could mean the opportunity to start a business healthy food.
  • the trend of increasing numbers of elderly persons could mean the opportunity to create a business dedicated to these people.

People often think that the only business opportunities include opportunities to start a new business; however, they also occur when there is already a going concern; for example, when given opportunities to create a new product venture into a new market, or go for a new line of business.

Consumer analysis

The second function of marketing is to analyze consumers , which involves analyzing your needs, tastes, preferences, desires, habits, purchasing behavior (where to buy, when to buy, how often they buy, why they buy), customs and attitudes.

The consumer analysis allows a company to know them better and, thereby, to design strategies that allow you to meet your needs, tastes, preferences and desires, or taking into account its other characteristics. For example, you can:

  • identify new needs or desires in them and, thereby, to design new products to be responsible for such needs or desires.
  • detect changes in their tastes and preferences and, thus, to adapt existing products to such changes.
  • detect trends in their purchasing behavior and thus to select sales channels based on these trends.

Note that this function analysis of consumers permanently and does not always through extensive market research, but also, for example, by observing their behavior at points of sales, talk to them, or make small surveys.

Competitive Analysis

The following function of marketing is to analyze the competition , which involves analyzing your location, target audience, sales volume, market share, market experience, skills, resources, key strategies, competitive advantages, strengths and weaknesses.

The competitive analysis allows a company to know her better and, thereby, to design strategies that allow you to properly compete with it. For example, you can:

  • know their main strengths and, thereby, to focus on other aspects that could compete better with it.
  • know their main weaknesses and, thereby, to take advantage of these (for example, if you discover that production costs are high, you may choose to reduce their prices).
  • learn about the strategies you are giving better results and thus be able to take them as a reference for developing their own.

Like the consumer analysis, analysis of competition is also constantly performs and not always through extensive market research, but also, for example, by visiting their local, buy your products, or converse with their former workers.

Design of marketing strategies

This function is to formulate, evaluate and select marketing strategies that meet the needs, tastes, preferences and desires of consumers or to take into account its other characteristics, and that adequately compete with the competition.

For a better analysis, marketing strategies are usually classified into strategies for the four elements of the marketing mix (product, price, distribution and promotion):

  • strategies for product : include, for example, add new features or attributes to the product, launch a new product line, or offer complementary services such as home delivery service.
  • strategies for Price : include, for example, lowering prices to boost sales, increase prices in order to increase the sense of quality in the product, or offer discounts for volume purchases.
  • distribution strategies : include, for example, working with intermediaries to increase product coverage, opening new outlets, distributors or acquire new vehicles.
  • promotion strategies : include, for example, offering sales promotions such as offering to carry two products for the price of one, Internet advertising, or enable tasting stalls.

Note that in addition to the analysis of consumers and competition analysis, when designing marketing strategies are also taken into account the capabilities and resources (human, financial, technological, etc.) resources are there in the company .

Implementation, monitoring and evaluation strategies

Finally, the function implementation is to implement marketing strategies, for which the necessary steps for implementation are set first, using the resources allocated, the deadlines are determined and calculated the budget required.

And then the tasks necessary for the implementation are organized, resources are distributed, are named controllers and the activities are coordinated, and the implementation of strategies directed.

The control function is to ensure that strategies are being implemented correctly according to the steps provided for and within the agreed deadlines, and that the staff responsible for the implementation is performing well both individually and in groups.

And the evaluation function is to check that the results match the expected results, for otherwise the corrective measures or, in any case, are designed and implemented new marketing strategies are taken.