Posts Tagged "Why Marketing Never Changes"

Why Marketing Never Changes

Why Marketing Never Changes

From the very first business exchange thousands of years ago, to the online purchase completed a millisecond ago, marketing hasn’t changed. Many people claim that the Internet and, more recently, social media have transformed marketing into something that hardly resembles what it once was. But it’s not true, because marketing never changes. What is marketing? Marketing is the essence of a successful business. It involves 3 simple steps: Identify a customer need or want. Create a product or service to fulfill that need or want. Deliver a superior customer experience that serves as the foundation of a long-term relationship. Author and management expert Peter Drucker held a similar belief: “Because the purpose of business is to create and keep a customer, the business enterprise has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.” If not marketing, then what? Some businesses choose different strategies that little resemble marketing. Production-oriented organizations focus on the physical manufacturing process. They create a quality product and expect customers to buy it. Sales-oriented organizations sell existing products. With little regard for customer needs and wants, they use aggressive sale techniques to push products on customers. Neither of these strategies is particularly effective over the long term. A production-oriented strategy can only work when demand is high and supply is low. Alternatively, a sales-oriented strategy can only work when demand is low and supply is high. A company cannot survive when it relies on a single supply and demand condition. Only marketing-oriented organizations consider actual and potential customer needs and wants. This strategy focused on continued customer satisfaction and every touch point in the business/customer relationship. What has changed? If you’ve ever taken a class in marketing, you probably learned about the 4 components of marketing—the 4 Ps—product, price, place, and promotion. While technological advances have allowed the 4 Ps to evolve, at the core they remain the same. Product Over the years, product production has expanded beyond individual customization to encompass both mass production and new mass customization. Computer technology has revolutionized that we used to think of as a product—a physical entity with some sort of packaging. Now, products such as software, publications, and music don’t require packaging of any kind. Instead, the customer receives an electronic file to be “consumed” on any number of devices. Despite these changes the product (or service) must still be created to fulfill a customer need or want to be successful over the long term. Price Pricing strategies remain essentially unchanged. Techniques such as discounting, variable pricing, and price leadership remain common. Corrupt people continue to attempt to manipulate prices however they can. Pricing has always been a complex component of marketing, but the competitive global marketplace makes it even more so. At the same time, computer technology enables sophisticated, real-time price changes and creates options—such as auctions—formerly limited to certain groups. In addition to creating products that meet customer needs, organizations must establish a product value that matches that of the customer. This requirement will never change. Place Products will always need distribution channels. Physical products will always be dependent upon various modes of transportation to reach customers. But transport time has diminished significantly, and products are commonly transported across oceans, continents, and hemispheres. Moreover, customers have new purchase options: the “place” is now the home or business instead of the traditional store. And, customers can receive a product—such as an electronic book for an eReader—in an instant. Although advancements in technology and transportation have forever altered the distribution...

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