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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
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  • Number of pages: 2

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Marketing, the magical word, the magical word that everyone who is selling any product or service tend on so much. Its definition by The Chartered Institute of Marketing is : “Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably.”  Even though, the term ‘marketing' itself has only been around since the turning of 19th and 20th century but different sorts of marketing strategies can be traced all the way to the ancient history. From those times comes the first signs of trademarks were used by traders on marketplace to differ from their competition and to create a value of their goods. Just as the civilization, marketing was evolving as well and through the Medieval tactics of screaming slogans it got to the breaking point where first marketing strategies that are being used to present day were born. It was when the letterpress was invented and first newspapers started being produced regularly with a lot of space for commercial placement. It wasn't, however, until the 19th century and the industrial revolution, when the marketing in the shape we know it was formed. It was mainly because of the scientific progress and born of mass media. Until the 1920s demand was bigger than supply, therefore there wasn't much emphasis on propagation. After the market started filling, marketing moved to the sell-orientation. After the Second World War, marketing changed again. Selling orientation was replaced by the customer focused strategy and with expansion of media, especially TV, whole new world for promotion was born.

In a past decade, marketing came a long way and spreaded into numerous theories and concepts. In a modern day, there are five major marketing concepts that deal with product, price, promotion, distribution, target and expected reaction of the customer. The first one is a production concept. Its product is usually of an average quality but widely accessible and commonly inexpensive. The promotion in the production concept is minimal while it uses mass distribution. To summarize, the target of this concept is to provide a product of expected quality with low price and expected customer reaction is to repeat the buy. Its potential comes when the demand exceeds the supply. The example of this can be American company called Texas instruments that tried for years to increase production and reduce prices of their calculators. As a result, the company gained highest market share at its time.(Schnaars 47-48, 1998). The second is product concept. Main focus here is on creating a product of best possible quality even if it means the price will get higher. The promotion is usually supported by additional services like repairing or different add-ons. Products of this concept are commonly distributed via specialised stores. The main goal is to provide excellent product or service to a customer. Example of this might be luxury car brands.Third conception is about selling. Principle of this concept is to persuade a customer, either individual or organisation, to purchase a product of high price compared to its quality, even though the customer doesn't need it. To do that, companies using this concept commonly apply massive and often aggressive promotion campaign. This strategy is used in a short-term period as the customers ordinarily doesn't repeat their purchase. Such strategy is being used by companies selling life insurance and such products. Last two concepts are focusing on marketing and are largely similar to each other. This philosophy suggests that the right approach is to determine need of the customer and try to fulfill them in the best possible way and more effectively than the competition, being the opposite to the selling concept. While doing this, companies still focus on making profit. Products of such companies are either reactive or proactive. Reactive market orientation focuses on selling products, which need are customers aware of, on the other hand proactive marketing tries to predict what the customers might need, even though they don't know it yet. The most modern one, societal marketing concept is “offshoot of the marketing concept wherein an organization believes in giving back to the society by producing better products targeted towards society welfare.” (reference)

Throughout years, many marketing theories has been invented.One of the essentials that is used to modern day is from 1960 and was brought by professor E. Jerome McCarthy. It's called Marketing Mix and it's better known as 4P's rule. This theory says that successful companies have to identify their target market through focusing on the four crucial parts. Product, Price, Place and Promotion. The product is trying to satisfy customer's needs and is basically anything the supplying side is trying to sell. It is important to be aware of multiple factors while developing a product. These might be : where and how will it be used, name of the product, difference from competition or what features should the product have. In the music industry product can be wide range of things nowadays. It can extent from physical or digital release of an album or single, live tour, merchandise all the way to the VR footage or exclusive online content. The second part is price and it shows the value of product for customer. While setting a price it is important to be self-reflective about how established the selling brand is and for instance not to set high price as an emerging one. In modern music industry, the price factor can be very flexible and even reducing the price and increase the profit. Great example of this is Radiohead's album In Rainbows (2007) that was released on band's website and people could download it for price set by them - it could even be free. Year after release, the album recorded over three million sold copies, even though the fans could get it legally without paying a penny. (reference pitchfork). The place part, also known as distribution, indicates where and how will the product be sold. In modern music industry, the place options got far away from just record shops. Especially because of internet and multiple platforms such as iTunes (Apple Music), Spotify or TIDAL. And finally, the maybe most important one. Promotion. In present day, when the market is fulfilled with products and increasing supply, it is vital for businesses to promote their product and make people buy it and beat their competition. It is about sending marketing message to the potential buyers. The main types of promotion are : advertising the product in media or public, creating public relations and communicating with potential customers, sales promotion - such as testers, discount vouchers or events and competitions, personal selling by experts trained to convince and direct marketing that addresses the customers directly via multiple platforms. Direct marketing has grew worldwide after the expansion of internet usage.

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