The marketing concept covers the marketing strategy and operational activities necessary to implement the project strategy and achieve project or corporate goals.
Since focusing on the target market and consumer needs is fundamental to the preparation of the marketing concept), analysts begin to prepare it to assess the relationships between the types of project products and the living groups.
For each target group of consumers are determined:
- market structure and its potential capacity;
- consumer needs and criteria for initiating a purchase;
- competition conditions;
- market price level;
- product requirements;
- the necessary level of qualification for staff.
The strategy that companies use to determine customer needs and improve sales is commonly called the marketing concept. Most often, companies use several concepts:
- production ;
- product ;
- sales concept.
The first concept is an established factor in which marketing is oriented. Those enterprises that apply this aspect are at great risk, missing the real goal. In many cases, it leads to myopia in the market. The main objective is focused on improving production efficiency.
The marketing concept of products focuses on the fact that customers choose products with the best indicators of quality and performance. In this aspect, all companies are focused on improving the product. Speaking about the marketing concept of sales, it should be noted that companies, in this case, focus on creating long-term relationships with the buyer.
The development of a marketing concept will help to better understand the needs of customers and improve personal performance in the market. The determination of the target sales volume before the end of the billing period is based on the forecasted capacity of the target market and the estimated value of the enterprise for the new one.
After identifying the zone “product – target group”, determining the sales volumes of the initial and final years of the project’s functioning, it is necessary to develop a marketing strategy. The marketing strategy of the project is subordinated to the corporate strategy of the company.
Her choice depends on many external and internal factors, the most important of which are:
- factors characterizing the state of the industry and the conditions of competition in it;
- factors characterizing the competitive capabilities of the company, its market position, and potential.
When forming a strategy, first of all, it is necessary to take into account: what stage of the life cycle of the industry is (nucleation, rapid growth, maturity, decline); industry structure (fragmented or concentrated) the nature and power of the five competitive forces (suppliers of the most important resources, buyers, competition between sellers of similar goods, substitute products, potential sellers of this market) the scale of competitors’ activities (regional, national, world level).
The main strategic direction of development is the “product-market” strategy, within the framework of which the target can be market penetration, market development, product development, diversification. When developing a project, all alternative marketing strategies should be evaluated, since the chosen strategy affects the project parameters (borders, technology, location).
More often, competition strategies (expanding one’s share at the expense of competitors) and market expansion strategies (creating new markets or intensifying demand) are often taken into account. The first include strategies: aggressive prices (for example, the use of dumping prices); imitations (for example, in order to benefit from the marketing activities of the main competitors) and profile (focusing attention not on price competition, but on quality, special characteristics of products, and brand).
Market expansion – Digital Agency London
Strategies should be based on determining the phase of the industry’s life cycle, the possibilities of influencing the market, assessing the structure of production costs in comparison with competitors, establishing the most important criteria for making a purchase, the need and the possibility of creating a special image.
Marketing organization as one of the elements of market research of the project provides for the establishment of organizational goals, which underlies the construction of the organizational structure. Forming its marketing structure, the company focuses on integrated structures (activities are carried out comprehensively and are managed from the same coordination center) or non-integrated (units that perform the functions of assortment planning, goods distribution management, marketing of finished products, etc. .. There is no single coordinating systems).
The effectiveness of the marketing organization is directly related to the system of distribution of tasks and responsibilities, a delegation of authority, communication interconnection between departments, staff recruitment, and training policies, and its motivation.
The main problems that arise in a marketing organization are the system of interaction with other departments of the company since only the purposefulness of all structures allows us to achieve the milestones. The interaction of the marketing service with the production department, departments involved in research and development, financial matters, logistics, allows you to concentrate the efforts of all employees of the enterprise on a comprehensive solution to the problems that arise avoiding duplication.
The marketing system plays a crucial role in the successful preparation of the project since it combines all types of marketing work carried out into a single whole: collecting, analyzing market information, making marketing decisions based on this information, marketing planning, monitoring and analyzing marketing activities.