What is Traditional Marketing: How to Think

What is Traditional Marketing: How to Think

Hello Guys, here is an in-depth article sharing on marketing topics. With this content, you will understand what marketing is, and there are definitions of 4P, marketing 3C, marketing along with the duration of marketing at each stage of social development.

What Is Traditional Marketing Or What Is The Definition Of Marketing?

First appeared in the US in the early 20th century, but by 1944 the term marketing was officially added to the English dictionary. In terms of structure, the term Marketing includes the root “Market” meaning “market/market” and the suffix “ing” refers to the activity of bringing a product to market. After a century of operation and development, many other definitions of marketing were born but the most mentioned and used is the definition of Philip Kotler – who was dubbed the father of modern marketing.

What is Traditional Marketing: How to Think

He defined: “Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of target market at a profit.” Temporarily understand: “Marketing is the art of creating value, communicating and distributing those values in order to satisfy the problems of the target customers to bring profits to businesses.”

Thus, Marketing understands simply the activities to bring your products and services to potential customers. In order for customers to access and use products, to be satisfied with the services you provide, your marketing strategy needs to be implemented in many forms. In particular, the Marketing Mix strategy will help your business reach close to the target customers.

What Is The Marketing Mix Strategy?

4P Model

When it comes to Marketing, one cannot help but mention Marketing Mix (or Mixed Marketing). Marketing Mix is a collection of marketing tools used by businesses to achieve efficiency in the target market and is classified according to 4P model including: Product, Price, Promotion (trade promotion, commerce, communication), Place (distribution channel), later expanded to 7P with more Process People and Philosophy. This mix plays an important role in determining the best marketing strategy for the business.

What is Traditional Marketing: How to Think

1. Product

Products here are goods and services tailored to meet customers’ specific needs, including after-sales products and services. It can be intangible or tangible products because it can exist as a service.

In order for the product to be valuable, it is important to ensure that the production meets the type of product your market needs. The product must provide the best value to the customers, otherwise the marketing strategy is good anywhere and it cannot save it from the decline. That’s why you have to do a serious job of market research, planning different stages, and researching the life cycle of the products they create.

Each product has a certain life cycle including growth stage, maturity stage and sales reduction phase. Therefore, the marketers need to regularly monitor and improve their products to stimulate customer demand more when the product reaches the period of decline in sales.

To Develop The Right Product, Businesses Need To Identify Problems That The Product Can Solve, By Answering The Following Questions:

  • What do customers expect from the service or product?
  • How and where will customers use the product / service?
  • What are the differences with the product?
  • Which product feature will meet the needs of customers?
  • Are any needed features missing or unnecessary features included in the product?
  • Is the name of the product attractive enough?
  • What does the product look like (form, size, color …)?

There are many businesses that think the letter P here is to improve products and services based on the characteristics of the product or service such as creating a suitable product model to not fall behind the market … But others change products, trying to create a completely new concept and satisfy customer needs.

2. Price

The price of a product is the amount of money that customers spend to own/use a product or service. This is also a very important component of the Marketing Mix model as well as in the marketing plan because it determines how the product will sell on the market. The price adjustment for the product will greatly affect the revenue and demand of the product.

Imagine, you want to buy a new coat and have found a satisfactory one. After that, when you check carefully you see the fabric, seam … of the shirt compared to its price is a bit expensive. At this time, you will feel skeptical about the brand. In addition, prices will help form awareness of your product in the eyes of consumers. They often perceive that a product with a lower price than usual means that the quality of this product is worse than that of competitors. Setting the price too low will cause businesses to focus on selling in large quantities to make a profit. Therefore, marketers need to find a way to see the product from the eyes of consumers. If the price is too high, customers will gradually turn to competitors’ products. In addition, prices will also depend on value chains and other factors including how competitors have priced similar products.

When setting the price of a product, businesses should consider the perceived value that the product offers, there are 6 pricing strategies as follows: Premium pricing, Market entry price, Savings pricing, price skimming, Psychological pricing, and Package pricing. And the main factors included in the pricing strategy include the initial price point, listing price, % discount, payment period …

Here Are Some Questions To Answer, When Businesses Price A Product

  • What is the production cost?
  • What is the value of customer perceptions of the product?
  • Is it possible to reduce prices slightly to increase market share of businesses in the market?
  • Is the current price of products in line with the prices offered by competitors compared to similar products?
  • What product positioning do you want in the mind of the customer?

3. Place (Distribution)

Distribution is the activity that brings products to customers most effectively or can bring customers to products in the most convenient way. The location or location of distribution is where you locate and distribute the product, which can best reach the target customer.

When understanding what customers want, businesses will find the ideal location and distribution channel to attract as many potential customers as possible. There are distribution strategies as follows: intensive distribution, exclusive distribution, selective distribution, franchise.

Here Are Some Questions When Developing Your Distribution Strategy

  • Where can customers find services or products of businesses?
  • What kind of stores will potential customers find? (shopping mall/convenience store/online …)
  • How to access many different distribution channels?
  • What different distribution strategies do you have with your competitors?
  • Do you need a strong sales force?
  • Is online store required?

4. Promotion (Sales Promotion)

Sales promotion is understood as sales support activities to ensure customers are aware of products and services of the business. When customers have a good impression of the product or service, they will be ready to conduct a real purchase transaction, helping to increase conversion rates with potential customers.

Activities in this stage include advertising (advertising on television, newspapers, radio …), catalogs, public relations and retail. The appropriate channels will be decided by the marketers according to the nature of the product. If the budget is large enough, businesses can also sponsor television programs to attract the public to watch or organize programs for loyal customers, exhibitions … to increase awareness. Brand with mass customers.

In Order To Create An Effective Product Promotion Strategy, Businesses Need To Answer The Question

  • What is the best time to promote products?
  • How to send marketing messages to potential customers?
  • Which channels can potential buyers and buyers reach?
  • What is the advertising strategy used by competitors?

Depending on the budget, the message they want to convey and the target market that has been previously defined, businesses can devise advertising strategies and how to implement advertising accordingly.

The 3C Model Will Help You Understand What Marketing Is

The 3C model has become familiar to any marketer, as it is an effective tool that provides an overview of the business situation and environment before implementing any marketing decisions and activities. . To succeed, when building a business strategy, businesses need to pay attention to the following three factors: Customer – Centric (Customer-centric), Competitor, Corporation / Company (Public).

What is Traditional Marketing: How to Think

1. Customer

Why is there a “Customer is God”? Because customers are the cornerstone of any business strategy, in the relationship between buyers and sellers, customers are often the decision makers. Therefore, in order to find opportunities to enter a new market, businesses will need to identify clearly: Who is the consumer? (demographic characteristics, behavior, psychology, habits …); What are the needs or problems consumers are facing? And businesses can solve that problem or not?

If the business decides to select a group of customers whose needs have been met by one or more products that are already on the market, it means that the company will have to compete with big competitors who have a market share, firmly in the market. In other ways, businesses can choose to find out the needs and problems of customers that have not been solved by competitors.

To Meet The Needs Of Customers, That Is, Design Products From Consumer Needs, You Need To Clarify The Following Two Points

  • Consumer needs are not entirely reasonable
  • The real needs of consumers are from quality, external functions are just binding agents.

2. Competitor

It is the duty of the business to carefully explore other businesses that are likely to become their competitors, including businesses with the same target audience, products or the ability to replace products of enterprise.

To Analyze About Competitors, Enterprises May Ask The Following Questions

  • What are the competitors? How much is the price and market share?
  • Who is the target customer of the competition?
  • What is the process of selling and distributing their products?
  • How much is annual sales?
  • What is their brand positioning?
  • What advertising channels do they use?

Learning about competitors is a way to help businesses look at themselves and find the difference that we can do better than competitors. For example, the two famous brands are Coca Cola and Pepsi, in terms of products or prices, they are no different, but what makes Coca Cola’s competitive advantage is the careful branding. Be careful and consistent step by step into the hearts of consumers thanks to the message of joy and cohesion.

Company – Business

Master yourself, master the enemy. Therefore, it is not just about finding out competitors and customers, a business that wants to survive needs to know who it is, understand what its strengths or weaknesses are. Focus on investing in your strengths, however, it should be noted that these strengths must be in close contact with customers and competitors. Moreover, it must bring benefits to consumers, help businesses make a difference to be able to compete with competitors and be trusted and selected by consumers.

What is Marketing Periods?

Along with the development of the world and technology, Marketing has evolved and developed through different stages. Starting with the Marketing 1.0 period, this era products are central. The interaction between brand and user is one-way. Next is the Marketing 2.0 era, with the advent of the internet, consumers became more and more aware of the product, and won the right to evaluate the value of the product that this period had a focus on customers.

Nowadays, businesses have started to produce products based on their customers’ needs. Entering the marketing period of 3.0, no longer consider passive customer customers but consider them a complete person in mind, heart and spirit, now focusing on the values they can bring to customer. To this day, the Marketing 4.0 era is a combination of traditional PR and Digital, to reach out to a wide range of customers, making the product image wider and more competitive.

Types of Marketing Period

What is Traditional Marketing: How to Think

Marketing Period 1.0

Originated from the Industrial Revolution (1976 – 1830), when technology was focused on production, “product” was the center. Because the market demand is greater than the supply, manufacturers are not focusing on finding the best group of buyers, but now their goal is to bring down production costs by increasing productivity, and sell as many goods as possible.

Marketing Period 2.0

The Information Technology revolution has exploded, the Internet has become more and more developed, and buyers have more and more opportunities to access and learn about products. They are people with deep understanding, higher demand and the right to evaluate the value of the product. In this period, customers demand emotional values, require marketers with ideas to make a difference, positioning the product in the minds of consumers.

To gain a competitive advantage, forcing businesses to focus on the business and customizing products to fit the needs of their customers. Goods are more and more diversified in types and models, helping consumers have more choices. Because consumers always want products with the best quality and value for money, manufacturers focus on creating products of high quality and constantly improving to attract customers.

Therefore, the marketing trend has gradually shifted from trading (trading, exchanging goods) to building relationships to help satisfy and keep customers coming back.

Marketing Period 3.0

Interactive technology and the global economic crisis in the early 2000s changed businesses’ perceptions. Instead of focusing on products like marketing 1.0, or focusing on customers like marketing 2.0, marketing 3.0 is about the value that a product brings to customers and society.

Marketing 3.0 sees customers as not a passive entity but as a person complete with their minds, hearts and minds and concerns with the value of life, the problems of the community. They live and aspire to make the world a better place. In other words, customers are not only aware but also have the power to devote to social, economic and environmental justice to satisfy both their spiritual and philosophical needs.

Marketing Period 4.0

Marketing 4.0 mentions a grounded approach to lead customers from awareness to brand support of businesses to the development trend of digital technology.

This period proposed the adaptation of businesses to the changing nature of customer behavior on digital technology platforms such as Internet of Thing, Cloud computing, Big Data, Big Data, Artificial Intelligence and Automation – are powerful tools for marketing in the digital era.

Marketing 4.0 is the convergence of technology that will eventually come to convergence between digital marketing and traditional marketing. Research and application of Marketing 4.0 is an indispensable trend that businesses must apply if they want to survive and develop in the current 4.0 technology period.

Marketing 4.0 is the convergence of technology that will eventually come to convergence between digital marketing and traditional marketing. Research and application of Marketing 4.0 is an indispensable trend that businesses must apply if they want to survive and develop in the current 4.0 technology period.

Pintu Chauhan

Hello Guys, Welcome to TechViram. I am Pintu Chauhan from India. I am the Author of Techviram. I am a certified Digital Marketing Specialist and Search Engine Optimization (SEO) Specialist. I am enthusiastic and have a passion to share my ideas, creativity with this blog and provide Excellent information for visitors.Thanks for visiting.

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