Top marketing principles and why you cannot ignore them

The seven principles of marketing

1. Product: building a one-of-a-kind product

According to marketing expert Dmitry Tsybuliak, the product is the cornerstone of marketing, whether it is a tangible good or an intangible service. A thorough analysis of every aspect of the product is essential. For a successful examination, the following points should be considered:

• Understanding the market where the product will be showcased. 

• Identifying the retail locations where the product will be available.

• Determining the geographical reach, whether local, global, or specialised.

• Assessing the product's features and quality compared to competitors.

• Evaluating how well the product meets customer needs and its overall value.

Creativity often involves more than merely providing a high-quality product. Exploring ways to enhance its appeal can transform potential consumers into devoted supporters. For instance, a car manufacturer might install screens in vehicles to align with the desires of the target audience, captivating and persuading them with this feature.

2. Price: the key to captivating consumer interest

Setting the right price for a product requires comprehensive market research. Referred to as "Market-Oriented Pricing," this approach ensures that the pricing strategy aligns with customer expectations and competitive dynamics. It involves assessing:

• The price customers are willing to pay.

• Competitors’ pricing strategies for similar or rival products.

• The market value and perceived value of the product.

It is crucial to carefully determines the appropriate price while remaining fully aware of the impact of its implication. A price set above market value must be supported by superior quality to justify the cost and sustain customer satisfaction and demand. Conversely, pricing too low can erode confidence in the product's quality. Striking a balance between a fair price and maintaining perceived value is essential.

A well-crafted pricing strategy is vital for attracting consumers and fostering long-term loyalty. For instance, a shoe factory might choose to undercut competitors by $10 to capture immediate interest, although this approach may risk losing customers if the quality suffers. In contrast, another factory might charge $50 higher, aiming to build lasting loyalty through superior quality and enhanced value.

3. Place: providing uncomplicated access for customers

This principle entails a thorough examination of every detail related to product placement, whether in physical stores or online platforms. Consideration must be given to locations where target or potential customers are likely to be found, ensuring that the product remains easily accessible.

Evaluating the community and environment where the product will be introduced is also important. Marketing strategies should be tailored to align with the local culture and preferences, as this can greatly influence success. For instance, a software company expanding into a new market might localise the software's language or modify the logo's colour to better appeal to the target audience in that region.

Furthermore, it is essential to recognise the importance of a strong digital presence in today's world. Such a presence not only boosts the physical visibility but also plays a pivotal role in effectively reaching and engaging with the audience.

4. Promotion: establishing brand recognition

Promotion or advertising involves raising awareness of a product or brand while persuading customers to choose it by highlighting its appeal. Effective promotional channels and methods include:

• Advertising across social media platforms, television, or magazines tailored to the target audience.

• Email marketing, whether through direct communication or promotional content.

• Search engine marketing, allowing customers to find the product or service website.

• Building brand image through connections and events, such as collaborating with influencers or celebrities.

For example, subscribing to an educational blog that sends weekly newsletters about its services reinforces the brand's presence and increases awareness.

5. People: the unsung heroes behind every success

One of the critical factors that determine the success of delivering the product to the intended audience is the involvement of various individuals throughout the process. This encompasses company employees, customer representatives, market researchers, customer service team, and managers or business owners. Although working alone is manageable, it necessitates additional effort to boost efficiency and effectively meet demands.

Recognising the significance of both individual and team skills is crucial, as they can significantly impact a brand's market presence. Choosing the right team members is essential for success. Key areas for enhancing efficiency include:

• Technical Skills: mastering these skills is necessary to handle and understand the product in order to effectively address customer inquiries.

• Social Interaction Skills: these skills contribute to shaping a positive brand image, which in turn attract customers.

For instance, in the context of bank ownership, providing employees with training in active communication can greatly enhance customer service and positively impact the bank's reputation.  

6. Physical evidence: making an indelible first impression

Mastering the art of packaging is crucial for captivating the target audience. It serves to convince them at first glance that the product or service is the optimal choice. Each element of packaging—including design, wrapping, presentation, and even the format of the service card—plays a vital role in making a strong first impression. This approach not only creates a positive impact but also encourages a preference for the product or service over competitors.

A 2018 study by IPSOS, an independent market research company, highlighted the role of packaging in shaping consumer behaviour. The study revealed that a significant number of Americans believe that product packaging design influences 72% of their purchase decisions and packaging materials account for 67%. Additionally, 80% of individuals feel that packaging design can determine whether or not they choose a product..

For example, a soft drink company may redesign its can for improved portability or incorporating images of celebrities and artists would undoubtedly enhance the product's appeal and desirability.

A careful study is essential to determine the best options. Key areas to consider include:

• The shape for the product packaging.

• Colours schemes and their combinations across packaging, websites, and service cards.

• Usability of the product, with a focus on software, services, and online platforms.

• Design and placement of the business logo on packaging, websites, and products.

• Website design.

• Posters and online advertisements utilised for product promotion.

7. Process: creating uniqueness in execution

This principle governs every aspect of presenting products or services to customers. It encompasses not only the delivery but also post-purchase assistance and the ongoing interaction with customers. Customer satisfaction with the offerings is essential, as it drives business growth and expands market presence.

To ensure a successful customer experience, several factors need consideration, including:

• Enhancing efficiency and streamlining work processes, whether working solo or with a team, as the length and efficiency impact the overall experience.

• Improving work methods for faster, higher-quality results, such as enhancing skills, both personally and within the team, or integrating technology to achieve quicker and superior outcomes.

• Studying and monitoring customers' feedback, creating methods to gauge their satisfaction levels, and understanding how to enhance the work accordingly.

For instance, when a software company produces an advertisement explaining how to use its application or employs a dedicated customer service team to address inquiries and complaints, it is more likely to attract customers. This is in contrast to companies that make these processes difficult, which can result in a poor user experience.

Why learning marketing principles matters

Understanding core marketing principles enables effective communication with consumers and the creation of products and services tailored to their needs and are presented in an appealing manner. Achieving a balance between revenue generation and customer satisfaction is essential, as satisfied customers drive long-term profitability. Leveraging marketing knowledge alongside creativity as a product owner positions one to excel in the market, continually refine offerings, and operate with precision.

References

[1] whatagraph, Basic Principles of Marketing
[2] coschedule, What Are The Principles Of Marketing? 
[3] ca.indeed, What Are Marketing Principles? (With Types and Examples)
[4] cpdonline.co.uk, What are the Principles of Marketing?
[5] visme.co, The 7 Key Marketing Principles and How to Apply Them
[6] ipsos.com, Product’s Packaging Often Influences Their Purchase Decisions