Marketing is one of the most complex and widely used concept in our current business environment. It is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (AMA, 2013). Organizations would find marketing an inseparable aspect of their daily transactions. Before any product is manufactures, an analysis of customer needs is done. Once the product is manufactured, it needs to reach consumers as per their demands. This demand and supply then need to be well managed with the help of efficient advertising and alluring promotions. All these are aspects of Marketing. Previously, I had the narrow definition of marketing being related to advertisement and selling of products only. Having realised the broader scope of marketing, I find that it is underlying everywhere in this age of globalisation.
$0 Marketing by Tesla:
While studying, one of the most stunning concepts I have discovered related to advertisement is the $0 budget marketing done by Tesla Inc. By that I mean Tesla had no budget allocated for advertisement of its electric vehicles. However, not having any advertisement was being the greatest advertisement for Tesla after it was recognized in market. Tesla has used the oldest marketing concept of “Word of mouth” and designed innovative referral schemes (Extole Inc., 2017). The efficiency of this model is evidenced by the fact that 253,000 cars were pre-booked in the first 36 hours (Inc., 2016).
Needs, Wants and Demands:
One of the concepts that I found confusing in marketing was the concept of needs, wants and demands itself. More specifically, I could not differentiate between wants and demands. After researching on them I came to understand that wants are simply “Desires” and demands as “Desires + buying power” (MaketingMix, 2017). After having the clear picture of these three, I believe I can become a consumer who makes better decisions by clearly recognizing the needs, wants and demands.
As a consumer, I always believed that every organization wants to promote their products in order to increase sales. However, we were taught a pioneering concept of De marketing. Upon detailed study, I realized de marketing is done by numerous organization to cope with unwanted demand or overflow of demand (Kotler, 2009). This helps marketers to shape demand in order to conform to long run objectives rather than blindly chasing high sales.
Marketing is a complex concept and a large number of components are involved in it rather than just the firm and the consumer. The importance of monitoring the environmental factors impacting an individual business is fundamental to effective marketing (Academy of Marketing studies journal, 2013). After attending lectures, I was taught that many actors are involved in marketing of any product or service. For example Government support is required by every organization at every step. Firms take assistance of various media agencies in order to promote their product or service. Financial consultants also help organizations to arrange finances and guide them about the right investing options. According to Kotler (2009), marketing environment consists of the actors and forces outside organization that affect marketing management's ability to develop and maintain successful transactions with its target customers.
Factors affecting Demand:
It was often believed that the sales of any product depends on buying power and need of the consumer and supply created by producers. However, this is not enough. My lectures gave me a much clear idea about how the demand is created and what are the factors that impact the demand. Changing demographic scenarios, increasing use of technology and economic environment are also considered by marketers to promote their products to the right audience in the right manner. Rise in the number of working women, a steady decline in household size and an increase in single parent family or families with no children are few of the demographic changes that the country is currently experiencing. Similarly rising interest and consumption patterns also impact the demand of products. For example financial crisis that hit Asia in 1997-1998 adversely affected Hong Kong tourism (Journal of travel and tourism marketing, 2002). It is imperative that marketers keep this in mind before formulating any strategy for product promotions.
Consumer buying pattern:
Learning about buying habits of consumer was the other thing which was essential for me. I learnt about the decision making process of a consumer when he or she buys any product. Buying behaviour suggests that consumers buy some products without thinking about it, some products giving a little consideration and after reading that I noticed that I would often buy small things out of habits without giving much consideration while some other things I would consider for few days. Marketers would spend a lot of time and money researching on these buying habits of the consumers due to ever changing demands of consumers. Extensive research on consumer buying behaviour helps marketers advertise their products in a proficient manner leading to increased sales.
I had no idea about the various kinds of demands but after these lectures I came to understand how many types of demands are there and how marketers make use of this information to promote their products. Negative demands involves those products or services where not only does the consumer not want the product but is also willing to pay a price to avoid it. Like many consumers spend monthly on dental check-ups in order to avoid dental surgery. Irregular demand refers to seasonal or occasional demands of products example rising sale of costumes during Halloween and extra demand of chocolates and sweets during specific festivals. Predominantly, it involves prioritizing demand when supply is lacking (SCRC, 2002).
Marketing is one of the most important factors that impacts organizations. Changing marketing scenario in the era of globalization has helped the right products, reach the right consumers, in the right way and at the right time. Our lectures have been extremely useful in helping me gain an insight on how consumers buy products and how marketers use information in order to promote and advertise products. As a consumer, these lectures have been extremely beneficial and will surely help me make a better buying choice and use my bargaining power as a consumer in this organization. I think I have learnt a lot about marketing in past few weeks. This understanding will be useful for me to carefully select new products in future. Moreover, it will also allow me to make wise decisions free from temptations of different advertisements. This will help me save cost and increase consuming efficiency.
AMA, 2013, viewed on 25 August, 2017.
Extole Inc., 2017, viewed on 25 August, 2017.
Harvard Business Review, 2009, viewed on 25 August, 2017.
Hiemstra, S & Wong K, 2008, Factors affecting demands for tourism in Hong Kong, Journal of travel and tourism marketing, Vol 13(1-2), pp: 41-60.
Inc., 2016, viewed on 25 August, 2017.
Jackson, 2013, The Marketing Environment: A new paradigm, Academy of Marketing Studies Journal, Vol 1.
Kotler, P, 2013, Marketing Management, NSW, Pearson Australia.
MarketingMix, 2017, viewed on 25 August, 2017.
SCRC, 2002, viewed on 25 August, 2017.