Principles of Marketing and Branding - Essay Example

Marketing Introduction So far, marketing has stood out as an indispensable business approach. Most modern organisations have departments exclusively dedicated to developing and executing marketing strategies, hence its importance in business entities. Jain defines the concept of marketing as the provision of right goods and services at the right time, price and place to the right people and with the right promotion and communication (3). It is a broad term that encompasses human activities relating to the market. Thus, it could be said to be a social process through which needs and wants are obtained by the creation and exchange of products and values. As noted by Masterson and Pickton, it is important in distinguishing a business function (23). Indeed, marketing is a major success factor for any business entity. First, marketing plays a crucial role in creation of utility. From the definition of marketing by Jain, it would be noted that marketing involves time, place and people (3). It is against this background that marketing is considered as a useful function in creating time, place and possession utilities. Jain supports this argument noting the critical marketing activities of transportation, storage and selling as the key players in effecting this creation of utility (32). Transportation creates the place utility by making goods and services available to customers at the desired place. Storage allows businesses to supply such goods and services at the time when needed. Finally, through selling, marketing provides the possession utility of the commodities being sold to the customers. Thus, marketing enables organisations to create utilities. For example, Coca Cola uses marketing to create the time utility by promoting its products during festive seasons, say Christmas Day. Such boosts the sales of the products when needed. Indeed, marketing creates utilities for products of business entities. Marketing fosters the competitiveness of a business entity. This is particularly so through marketing intelligence. As defined by Masterson and Pickton, marketing intelligence refers to the information relevant for a business entity’s market which is gathered and analysed to help in decision-making (54). Marketing is the business arm that involves direct interaction with customers and prospects. It is therefore an appropriate strategy to use for collection of information from the market. Such information would be useful in the determination of market opportunity and penetration strategies. It provides business entities with appropriate information to determine and understand the needs of customers and align such demands to business operations and products. Taking the example of Coca Cola, Walsh notes that from its marketing intelligence, the beverage manufacturer observed the market’s change of taste in preference for healthy drinks. This caused the firm to lose business to its competitors selling healthy drinks. As a result, the firm came up with Coke Zero which is a diet variation of the Coke beverage. This caused the firm to regain its market, increase its sales volume and grow in revenue. Marketing intelligence is useful when entering a new market as well as in an existing market so as to gain and sustain competitive advantage respectively. Thirdly, a business could create a strong brand for itself through marketing. A brand is defined by the American Marketing Association, AMA, as a symbol, sign, term, design or name or a combination of these meant to identify the goods and services of a seller and differentiate them from those of others. It is through marketing that the market gets to be aware of a brand which sticks to their minds. It combines the experiences and perceptions which could be influenced through marketing. World’s renowned beverage, Coca Cola has been successful in its branding strategy as a marketing function. As Walsh observes, the Coke brand would be found in every location, be it in sports arenas, restaurants, schools, television advertisements during prime time and even sign boards. It is this marketing strategy that has made the company’s presence felt by the global market. The advertisements customised for major events such as the FIFA World Cup has positively influenced the market’s perception towards the drink. This has seen Coke become a globally renowned brand. Thus, marketing creates a strong brand which enables a business entity to capture a greater market share. Ultimately, and most crucially, marketing generates sales for a business entity. As noted, marketing makes the market aware of a brand and further influences its perception. It increases the scope of prospects available for a business. Furthermore, it helps align the market demands to the products offered for sale by the business entity. Thus, a combination of awareness, influence and customer satisfaction functions of marketing enables business entities to create and increase their sales (Masterson and Pickton 22). Additionally, the increase in the number of prospects also increases the chances of purchases. Whereas marketing plays a crucial role in enabling business entities meet their objectives, it has been noted to be an expensive venture. This is especially so with new products and markets. A lot of resources would be spent in making the brand and products known to the market. Companies like Coca Cola allocate huge resources to their marketing every year, amounting to over $4 billion as noted by Walsh. Of importance is to balance between effectiveness and cost so as to have effective marketing strategies at the least cost. This would involve choosing a healthy mix of marketing channels including websites, print, broadcast advertising and trade shows among others. The objective is to have optimal returns for the strategy adopted. Conclusion Marketing is a crucial function for any business entity, a fact that has made many modern organisations to incorporate it as a beneficial component of their operations. It creates utilities of time, place and possession for business entities. It also enhances competitiveness and fosters a strong business brand, useful for influencing consumption. The ultimate function of marketing is to generate and boost sales which directly correlate with profitability, hence the survival of the business entity. Therefore, careful considerations must be made with regards to the strategies and cost of marketing so as to optimally benefit the given business entity. Works Cited American Marketing Association. Branding. 2014. Web. 5 May 2014. Jain, A. Principles of Marketing. New Delhi: V.K. Enterprises, 2009. Print. Masterson, R. and D. Pickton. Marketing: An Introduction. 2nd ed. Thousand Oaks, CA: SAGE P. Print. Walsh, J. “Case Study: Coca-Cola.” Ft.com. Financial Times. 19 Jan. 2011. Web. 5 May 2014. Read More