Marketing is a means of promoting a business and the goods/services it offers. Marketing is closely linked to sales with the intention that a successful marketing campaign will pay dividends in sales. Businesses invest in marketing campaigns to hopefully increase revenue or sales and ultimately increase profits. But marketing costs a lot of money so it must be carefully planned in order to ensure it returns appropriate benefits for the business.

Marketing raises awareness of businesses, their products/services and promotional events. The oldest form of marketing is by word of mouth, this is very effective but cannot be controlled by a business. The main aim of a marketing campaign is to attract potential customer and turn them into paying customers. It is much more than just advertising.

The main principles of marketing are to generate customer satisfaction by:

• identifying needs

• promoting products (or services) or contributing to brand (the identification of a product or service which is instantly recognisable without explanation eg Nike's Swoosh or McDonald's Golden M) development.

• pricing of the brand

• promoting the brand

• distributing the brand in the right locations or by the appropriate means

The purpose of marketing is to generate interest in a product or service resulting in a sale, by:

• Anticipating demand- An ice cream manufacturer will expect marketing staff to study weather forecasts to anticipate demand. 

• Recognising demand- Keeping up to date with what competitors are selling is one way to recognise demand for products and trends in consumer behaviour.

• Stimulating demand- finding ways to promote the brand such as:

advertising, promotional offers, loyalty cards or discounts.

• Satisfying demand- ensuring stocks or capacity to deliver a service are sufficient to meet demand at particular points of the year. This is very important for seasonal products.

Mass markets are large proportions of the population that have similar needs and wants. Therefore a more generic product can meet the needs of many more people. Soft-drinks, breakfast cereal and mobile phones are examples of some products targeted at the mass market. The gloves opposite are a good example of a product aimed at a mass market. The golf glove below are an example of a product ained at a niche market.

Examples of mass markets

1. Spectacles/Sunglasses

2. Cars

3. Tissues

4. Telecommunications

These products are likely to be of interest to a wide range of customers, although the choice of actual car purchased or sunglasses bought will depend on other factors style or price for example.

Niche Markets are smaller segments of the population that share similar needs and wants. Products with specific features are targeted at these customers and sales are generally lower than in mass markets as there is a smaller overall market. Breakfast cereals which are glutten free, sugar free softdrinks or clothing companies specialising in XL sizes are examples of some products which are targeted at niche markets.

Market segmentation is the practice of dividing a population into segments based on a variety of factors. These segments can then be targeted more specifically in terms of research and resulting marketing strategies. This allows you to market your good/services in different ways to different people. and therefore increases sales and therefore profit. Benefits include being able to better satisfy wants and needs when focusing on a smaller population with similar characteristics but drawbacks include missing out on potential markets.  

A business has to identify the purpose of it's products or services in order to establish its target market.

Demographic Segmentation is the practice of dividing the population into segments based on factors such as age, race, religion, gender, family size, ethnicity, income, educational level and socio-economic group.

Psychographic Segmentation is the practice of dividing the population into segments based on social class, attitudes, lifestyle and personality characteristics.

Geographic Segmentation is the practice of dividing the population into segments based on the location where people live such as villages, towns, cities, countries and global regions.

Behavioral Segmentation is the practise of dividing the population into segments based on factors such as spending, consumption, habits, loyalty status and desired benefits.

This  consists of a brand name, a logo, a slogon and gudelines for how the branding can be used. Some or all of these elements may be trademarked to prevent competitors from using similar branding. In some cases the branding will dictate colours and shapes that should be used. In other instances the brand can be used more flexibly. 

A brand can be a powerful selling tool and can help achieve marketing objectives such as gaining market leadership and raising customer awareness.

Brand personality

Branding can exert a considerable influence over what the customer buys, especially if it displays brand personality. For example, think of the sophisticated and professional look of L'Oreal or the glittery, fun looking branding of Maybeline.

Brand Image

A strong brand can stick in a customer's mind and help to link products with a particular supplier or manufacturer. A strong brand can portray an image. This might be one of success or affluence. This might be one of success or affluence such as  Dolce & Gabanna or a younger more casual  trendy image such as Super Dry or Jack Wills.

Once a brand image gets stronger it can help a business to either enter new markets or sell into existing markets with less risk of failure. If a customer has a good experience of a specific brand they are likely to purchase something else from the same brand.

Unique Selling Point

A brand can portray a USP to gain market share over their competitors and stand out from the crowd. For example, Velvet toilet tissue which promotes its products as being environmentally friendly by replacing trees. The Nike Air bubble was a USP when it was first introduced adding extra comfort to sports shoes.

Implications of Business Size on Marketing Activity

The size of  a business will have implications on the marketing activity it can pursue. New products and services will need extra resources and staff, small businesses may find this challenging to finance. Small businesses are also limited by the budget they can afford to spend on marketing activities. Changes to branding can be very difficult to implement for all businesses.

Budgetary Constraints

All marketing plans should be based on a budget to ensure the business does not overspend and can justify its expenditure based on the impact on its sales. For example, large businesses such as Coca Cola can afford to advertise extensively using multi-media whereas a local sandwich shop might need to rely on local newspaper advertising or a board on the pavement outside their premises.

Availability of Specialist Staff

If a business does not have the specialist staff in-house to successfully market their brand they might need to either change their intentions or source external support from specialists. This may place considerable pressure on the budget and may aloso take much longer than anticipate.