What is marketing? With reference to the Oxford dictionary, marketing (noun): The action or business of promoting and selling products or services, including market research and advertising. The purposes of marketing are to let the customers know more about our goods and services, and at the same time, let a company have a clearer view of the customers’ needs and preferences. By producing and providing goods and services that meet customers’ need, a company can raise customer’s satisfaction.
It is important to know more about the marketing mix in order to understand what is marketing. The marketing mix, or seven Ps, is the cornerstone of marketing, which determines the product strategy. The seven “P” stand for product, price, place, promotion, physical evidence, process and people. These are basically how marketing functions and what is marketing.
Product: This is about the product design. What features does a good or product has to meet the needs of our customers? How many different models, sizes, colors do we design to provide the ultimate diversity? And of course, the name of the product.
Price: It is crucial to set a reasonable and profitable price. The price is an indicator of the product quality as well, so an equitable price contributes to the sales of a goods and services. The prices of one good could be flexible that we may have to determine several prices at different stages, such as the listed price and deduction price.
Place: Traditionally, this is about the location and settings of the brick-and-mortar store. Yet, under the mature technology nowadays, it is no more limited to physical location. It also includes the online and digital distribution channel. The place has to be convenient and easily accessible to the customers.
Promotion: This includes branding, advertising, public relations (KOL), direct marketing and the sales staff performance. All these are directly affecting the company’s image and reputation. The company have to present the benefits and comparative advantage of its own products to the consumers to persuade them purchasing their goods and services.
Physical evidence: This is the environment in where the services are delivered and the tangible components promote the delivery and performance of the service. For instance, the office building, the website, the equipment and even the annual finance report etc…
Process: This is the whole process and system where the goods and services are delivered. It is crucial that the company provides concrete information and timely support to the customers. Also, enough interaction with customers and the research and development are important as well.
People: This refers to all the human taking part in the service delivery process such as the frontline salesperson, the manager and director, the back-office worker, including their skills. They have to be well-trained and motivated as they provide the first impression and perception to the customers of the company. The people also includes the customers, the receivers of the goods and services.