The Basics of Business Marketing Concepts
The action or business of promoting and selling products or services, including market research and advertising that have value for customers, clients, affiliates and communities at large. Marketing is a process required in order for customers to be attracted to your business.
Marketing concepts involve:
- Market research
- Identify your target market needs, size and potential
- Identify marketing strategies and methods
- Identify trends and future market potential
- Market Research
The a process business owners use to identify potential customers whilst developing and implementing strategies to work within the capabilities of the business.
This involves researching market needs, size and potential, identifying and analysing your target market, developing market strategies and identifying methods to promote the business.
The information you gather and analyse will help to build strategies and implement methods that set a solid foundation for making business decisions. You want to set reasonable and achievable objectives within your research scope so they will assist in making business decisions, not cloud them.
Identifying your target market
What are the groups of consumers or business’s that relate to your product or service?
Think about how your products or services fulfil a need or solve issues for a potential customer, identify how you standout from your competitors. Solving your selling point is the first step in identifying your target market. Using secondary research methods such as using sourced information about your target market, competition and potential customers will assist in the identification process.
Develop a profile of your potential customer that provides an in depth description of what your customer may be.
This includes demographic information, such as age, gender, location, marital status, income etc Monitor and evolve your business to match your target market.
Identifying market strategies
How to focus on overall strategies?
Let’s look at some general strategies you could impose.
Market development – targets non buying customers in currently targeted segments. It also targets new customers in new segments. This can be used to expand the potential market through new users or uses. For example new uses could be new demographic segments, new geographic segments. New uses could be defined as new uses of a product.
Market penetration – is a measure of brand popularity. Generally speaking it is the proportion of people that have bought a product or brand within the target market. This strategy can also be used to convince non-customers to buy or buy more.
Product development – where creating new products for existing markets and customers. Your business may need to engage in this process due to changes in consumer preferences, increasing competition and advances in technology
Diversification – increase your sales through creation of new products for entire new markets. This can mean expanding into new segments of an industry that your business is already in, or investing in new business’s that promise success outside of your existing business.
Identifying trends and future markets
In order to plan effectively it is important to keep on top of emerging trends.
Market trends are all individual external factors that have influence on a business.
Typical trend identification is in the form of a SLEPT analysis, acronym for Social, Legal, Economic, Political, and Technological. Social factors relate to pattern of behaviors, tastes, lifestyles and perceptions etc.
An understanding of social change gives business a better understanding of the future market situation.
Laws are continually being updated in a wide range of areas within the legal system.
Changes to Federal, State and local legislation can have an influence on market trends. Business’s need to take a proactive approach and be ahead of any changes, rather than make reactive alterations once change is apparent. Economic changes relate too local, national or global trends in the production, distribution, selling and use of goods and services.
The economy goes through fluctuations associated with general booms and slumps in economic activity. Other economic changes that influence business can be wage increases, interest rates and rates of inflation. Political changes relate to changes in government influence.
Changes in government will in most cases mean changes to the framework in which business’s operate within. Political interest groups excite media pressure that may affect government policy and legislation.
Technology refers to the application of science in developing new ways of performing tasks or solving consumer issues.
Owners need to be aware of the latest and most relevant technologies for their business and the ride the wave of change.
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