What is Marketing?
When studying business, you will often hear the term “marketing”. This is essential in every business that is offering any goods and services.
There are multiple marketing strategies that a company can apply to ensure its profitability. Simply put, marketing is any activities that a company does to promote the buying or selling of a product or service.
The 4 Ps of Marketing
To understand what is marketing better, we should discuss the four elements of marketing: product, price, place, and promotion. Marketing makes use of these four elements to achieve its goal of profitability.
What is the product or service being sold by the company? This is what a company offers to consumers to receive an income. The higher the demand is for the product, the better. Choosing products that are readily and cheaply available might not be a good idea.
The price of the product or service has a huge effect on how profitable a company will be. The common method is to compute the price based on the supply and demand of the product.
The main goal is to set a price that can return a profit. But there are companies who would like to maximize their profit and conduct research to determine what is the optimal price to return the highest profit.
Where the product will be distributed is also an element of marketing. Knowing the demographics of the place where you plan to make your products available can help you gain more profit. Are you trying to appeal to wealthy people or the middle class? Are your customers mostly adults or teenagers?
When people hear the word marketing, they usually think of companies promoting their products. While partly true, promotion is just one element of marketing. There are two goals to promotion. The first is to raise awareness about the products being offered. The second goal is to convert people to paying customers.