Introduction to the Fundamentals of Marketing
Explore the fundamentals of marketing from a new perspective. Understand the core concepts of marketing which will help you position your brand well in this digital age. Understanding these revamped 7 concepts is a must for any marketer before implementing core marketing strategies for their brand..
What is the Law of Marketing?
Marketing is a science, it is not just about creativity. It starts with understanding the customer and the customer’s needs, which leads to creating a product that fits. Marketing is about sending the right message, to the right person, at the right time. Marketing is not just about selling; it is also about keeping existing customers happy by communicating with them so that they can remain customers for life. Marketing is a means to an end. The purpose of marketing is to build a brand and capture a position in the minds of consumers.
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself… The aim of marketing is to make selling superfluous.” – Peter Drucker.
The Law of Marketing cannot be defined in a single line. It is a set of subjective rules and procedures rooted in the reality of a product/ service that is set on the basis of customer behavior ultimately affecting the buying decision.
A great product not only meets the needs of your customers but also inspires them to talk about your brand to others and become loyal ambassadors. This is because word-of-mouth marketing is still the best and most powerful form of marketing there is. Advertising, copywriting, and sales are all also equally important components of marketing. The purpose of marketing is to build a brand and capture a position in the minds of consumers so that you can communicate with them and establish a rapport that will keep them coming back as customers for life.
Look at brands like Nike and Apple. Yes, one needs to have a great product but marketing is equally important. It does not just help people discover the product, but also have a good perception of the product.
A brand does not need to be number one but needs to be the only One. It needs to choose a category and become a leader in that category. Exactly zeroing down to where to compete is like half the battle won. If it cannot be a leader in one category, strive to be a leader in the sub-category. Brands like Xerox, Google, Zoom, Tesla, and BMW have already proven this.
What is the Importance of Marketing and Communication?
Marketing is an evergreen profession because it is based on human psychology and understanding consumer behavior. It is one of the oldest professions in the world. Marketing is also the most valuable investment in a business because it provides a direct return on investment (ROI). Unlike production, manufacturing, HR, accounting, and administration, which are all expenses that don’t provide immediate ROI, marketing is an investment that will continue to give back to your business in the long run.
Additionally, while you can outsource some marketing tasks to an agency, it’s important for the company founder to have a marketing mindset and be involved in the marketing strategy so they can provide direction and guidance. If one knows how to market and sell, one can have a safe career or be a successful entrepreneur.
Marketing is all about effective Communication. It helps the sale of products, services, and ideas from manufacturers to end users and builds relationships to keep them loyal for future purchases. The one thing that really matters is whether or not you’re able to transfer your thoughts clearly to your audience. Write like you talk, and join the conversation that’s already happening in people’s minds. It’s also important to get to know your target audience very well so that you can communicate in a way that appeals to them specifically.
Role of Global Economics In Marketing
As an entrepreneur, it’s important to learn about global economics and how to make decisions in your business based on this information. For example, did you know that a country’s economy typically improves as the average age of its citizens’ increases? Additionally, it’s important to understand that debt creates money.
If you take out a loan for 10 lakhs from a bank and deposit it into another bank, they can loan that money out again. The more debt there is in the economy, the more cash is available (which can lead to inflation). When people start repaying their debt, the money supply shrinks (and central banks reduce interest rates to encourage debt). By understanding these economic principles, you can make more informed decisions about how to grow your business. A recession creates strong companies and drives weak companies out of the market.
For Instance India’s Wealth is Concentrated with
- 23 Million Households in India which accounts for 110 Million People (5 people per household)
- India has around 10-15 million (1 – 1.5 Crore) Amazon Prime subscribers and around 20-25 Million Online Shoppers
- Target customers with buying power will be around 30-50 million until 2025
Understanding Traditional Vs Digital Marketing
If a product is generic with a very wide targeting – TV Ads can reach millions at a low cost. (Ex: Apple iPhone). India has TVs in 197 million homes out of 298 million homes. With an average of 4-5 members per household, TV has a reach of 800 million to 1 billion people. The reach of Digital Marketing is nowhere close to TV based on numbers alone. (Source: Wikipedia)
Radio has a reach of 65% of the Indian Population (Source: Financial Express)
The Newspapers papers have a reach of about 465 Million People (Source: Business-Standard)
On the other hand, Digital Marketing is the best medium to reach the affluent English-speaking 100 Million population in India with high spending power.
Though digital marketing is the need of the hour, traditional ways cannot be ruled out. And both strategies have to be used wisely used wherever required.
What is Direct Response Marketing?
Most people who run ads do not know if the ad works or not. Marketing executives in big companies (and in ad agencies) run branding campaigns that do not give specific and measurable results. An increase in “brand awareness” is not measurable.
Direct Response Marketing is all about getting a prospective customer to take action right away. The goal is to generate an immediate response by providing an offer or incentive that is too good to pass up. This type of marketing can be very effective, but it requires careful planning and execution to be successful.
Examples: An ad in the newspaper with a phone number to call. A advertisement leading to a landing page with a lead form. A product sales page with a link to purchase. Surely Direct Response is one of the most used Fundamentals of marketing.
What is CATT Marketing Funnel?
Marketing Funnel is a framework that simply defines the customer journey. CATT stands for Content, Attention, Trust, Traction. This funnel is just like AIDA and TOFU-MOFU-BOFU frameworks. CATT framework further uses Niche (n) at the core which acts as a multiplier guaranteeing successful results leading to wealth.
WEALTH = n x CATT
[n] Niche: Your success & wealth depends on the niche you choose
[C] Content: Create useful content that attracts people from your niche. Blog posts, videos, lead magnets, live webinars, etc.
[A] Attention: Drive attention (traffic) to your content using SEO, Social Media, Paid Ads, and Referrals [T] Trust: Build trust with your audience with trip wires, marketing automation, and retargeting.
[T] Transaction: Convert your leads into customers with natural sales methods.
Why Personal Branding is Important?
While understanding the fundamentals of marketing one can not surely miss Personal Branding. Ultimately it is a game of survival. Only the fittest may survive. The best-known will always beat the best. People love to hear from people and not from brands. Elon Musk has a bigger following than SpaceX and Tesla. While here in India Patanjali simply drives on the persona of Ramdev Baba. While a personal brand cannot be invested in or sold, it can give rise to many brands from sheer influence. Other than Linkedin and TedX, people are also using Instagram to build their personal brands. It is all about how well can get social so as to garner trust for its brand to grow.
The fundamentals of marketing are often tough to understand and learn. With so many new things coming up, it becomes really easy to forget certain steps that marketers need to take. It’s always difficult to get started on something new when you’re overwhelmed with all the information that you need to take in. The blog here has put the 7 new age fundamentals of marketing in the form of revamped core concepts keeping in the loop the traditional methods. By implementing these concepts as part of the marketing strategy one can surely increase their brand presence.
Note: The blog is inspired by the teachings of Deepak kanakaraju.