A Marketing system is a group of interrelated components that influence how a company advertises its goods and services and how it exercises its control over its distribution or sales of these goods and services. In simpler terms, the marketing system includes various systems, practices, strategies, and processes for product differentiation, market segmentation, pricing, marketing, public communications, and consumer behavior. It also includes the financial aspects of marketing such as making payments, accounts receivable, accounts payable, and marketing expenditure.
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What Is The Aim Of Marketing Systems
The focus of any marketing system must be on maximizing the sales of a company’s goods and services by meeting the customer’s expectations and requirements in the most cost-effective manner. For example, in social media marketing, websites such as SpotifyStorm can greatly improve the cost-effectiveness of a marketing system.
All marketing activities must be conducted in a manner that effectively incorporates the goals and objectives of the organization as well as those of the customers. This is referred to as the marketing environment. This environment has three essential components, namely, the marketing mix, the competitive environment, and the financial environment.
Understanding The Marketing Mix
Any time we’ve seen marketing concepts explained what is marketing, there will be a mention of the marketing mix as the foundation of all marketing systems. Marketing mix refers to the total combination of advertising and promotional activities, which form the major component of any marketing system. The activities may include the production of marketing materials, the preparation of advertising campaigns, the designing of marketing plans, the allocation of resources, and finally, the use of advertising media. Marketing activities, in turn, depend on the type of business in question and may either be direct or indirect. Direct marketing refers to the use of advertisements and promotional tactics to raise awareness of a product or service to the public. Indirect marketing strategies refer to those tactics which are designed to create awareness of a product or service by means of a medium that is not immediately accessible to the target consumers, such as the Internet.
The other two important elements in a marketing system are the competitive environment and the financial environment. In this context, it must be understood that the concept of modern marketing is not limited to the use of mass media. There is considerable debate over whether there exists such a thing as a modern marketing system. However, one thing is for certain, and that is that markets are defined by supply and demand conditions rather than by the popularity of a particular product or service. This means that one must learn to use a variety of marketing tools to be successful.
This is accomplished by studying market segments and defining marketing programs that apply to these segments. In addition, one must determine the marketing environment through which these goods and services are being supplied. For instance, some goods cannot be supplied from the local market due to geographical barriers. Such barriers include physical and geographical barriers, licensing restrictions, and subsidies.
A variety of economic, social, and political factors also contribute to the marketing environment. These include the nature of the economic structure, the characteristics of the users of the goods and services, the attitudes of the users towards these goods and services, the availability of the market segment concerning the marketing mix, and the expectations of the users of these products and services. All these factors influence modern marketing theory. However, there are specific models which can be used to create a marketing management system.
Segmentation, Product Life Cycles, and Other Influential Concepts
Marketing managers have to be familiar with several important concepts, such as customer segmentation and product life cycle. They need to understand the factors influencing modern marketing theory. For instance, the factors that influence the product life cycle include pricing, competition, and brand loyalty. Pricing is one of the main drivers of product segmentation. The pricing managers need to understand the factors influencing modern marketing theory as well as the importance of customer segmentation.
The marketing manager needs to identify the product mix which has the potential to meet the present needs of the target market. This process is known as the product cycle. In addition to the product mix, the marketing manager has to also identify the new product mix. New product development involves planning, manufacturing, branding, promotion, sales, and distribution.