What is Marketing? Types, roles, affecting factors, dominant trends in 2020
Businesses all over the world are changing, which results in increasingly intense competition between firms. To thrive and expand business scale in such an environment, there must have a tool, which sets your business apart or even shines brighter than your competitors.
Possibly, many people would say the secret to achieving that is definitely marketing. Marketing has been used for years to help businesses not only stay connected with customers but also increase sales and revenue. However, in the age of technology, marketing can do a lot more than that!
Making the most use of marketing is not as easy as a piece of cake. You can use it only after you already know it like the back of your hand. Therefore, for the first start, you need to understand what marketing really is. I guess that there will be a lot of questions popping up in your mind now. What are the factors affecting the marketing environment? What are the trends that sharps marketing activities in 2020?
In this article, I am about to answer such questions by diving into all the general aspects of marketing. Stay tuned to my content to refresh and learn more about marketing. Let’s explore!
Table of content
- What is marketing?
- Different types of marketing
- The importance of marketing
- Factors affecting marketing
- Marketing trends
- Final thoughts
What is marketing?
Basically, Marketing can be defined as the process a company undertakes to promote the buying or selling of products or services. Marketing involves advertising, selling, and delivering products to customers, partners, and society at large.
The four P’s of marketing are the key elements that come into play when goods or services are marketed to the public. The role of marketing is flexibly combining Products, Price, Place, and Promotion in such a way so that the customer would feel eager to buy products or services from one company but others. Because of that, we call them the marketing mix. These factors are under the same control by internal and external factors in the whole business environment and interact with one another significantly.
Product is the core of the marketing process. All of the marketing activities begin with products. Product is the most crucial P because, without them, we have nothing to continue with Price, Place, and Promotion. Literally, they can be tangible or intangible goods or services that can fulfill a specific demand of customers or be so compelling that makes them believe that they should have it. All products follow a life cycle. Therefore, it is vital for marketers to understand and plan for different stages of and unique challenges on the way. Besides, the problems that can be solved and benefits from using products are supposed to be well demonstrated to unique selling points.
There are several factors included in a product
- Brand name
- Product variety
- Packaging, returns, etc.
Price is the cost the end-user should pay for products or services. It is a value generator in every business. All of the decisions with price should be taken with are. If a product is priced higher or lower than its perceived value, then it will not sell.
Marketers need to consider the following marketing variables of price
- Methods of pricing; policies; strategies
- Discounts, rebates
- Payment period
- Credit policy
Place or placement deals with where a manufacturer sells or products and how they deliver their product to reach customers. The art of displaying products can help to reach target customers and increase the product’s competitiveness in the marketplacemarket place.
The following are the placement mix elements
- Channels of distribution
- Warehousing decision
- Product handling
- Inventory control
- Order processing
Promotion serves for two purposes. It not only informs the customer about your product but also creates an urgent sense of purchasing. The marketer tie promotion with placement to communicate with potential customers and stay closer to their core audience.
Different types of marketing
Marketing can be split int two categories: offline or online (digital marketing)
Offline marketing is all about to do with traditional advertising in print, radio, television marketing as well as attending events such as tradeshows, fairs, and conferences. Word of mouth marketing is also included.
Today’s business does not rely only on these traditional ways to popularize their product. With the technology revolution, the audience tends to shift to online channels for their shopping due to various advantages such as speed, efficiency, and ROI. That is why businesses are highly focusing on online marketing, and we are experiencing its exploration across the border.
The followings are different types of online marketing available to modern businesses
Marketers public various forms of content to increase brand visibility and develop close relationships with customers. Blogs, posts on social media, infographics, or video are typical examples of content marketing.
Search engine optimization
This is the process of optimizing your content on your website to make it more visible to search engines and generate more traffic from searches
Search engine marketing
Commonly known as pay-per-click(PPC), with this modern type of marketing, businesses pay a fee each time one of their add is clicked. It is similar to buy visits to your store site, rather than attempting to earn those visits organically.
The activities of using social networks like Facebook, Instagram, or Twitter to maintain a relationship with present customers and reach a wider audience through digital word-of-mouth.
Email marketing is one of the most effective marketing methods. By sending regular emails to registered customers to inform them about promotion programs or tutorial content, you can boost sales and build customer loyalty through time.
Contacting existing or potential customers who have already interacted with your brand to get them to come back on your site and then convert into sales
This method uses endorsements and product mentions from an influencer or any individual with a high profile and lots of followers on social network channels. Potential customers will come to your brand because of the high amount of trust that they have placed in influencers.
We have listed above typical examples of the most common types of digital marketing today. Each of these methods can still be divided into smaller types, which makes a constellation of a thousand different types covering both online and offline channels.
The importance of marketing
Marketing brings significant benefits to an organization. In an environment full of similar products or services with little differentiation, marketing becomes a competitive advantage. That the main reason why customers will choose yours instead of competitors.
Marketing can power organizational success in the following ways:
Engage with customer
Customer engagement is the heart of any successful business. Marketing is a tool to keep the conversation going. You can create a sense of belonging by furnishing your customers with relevant information about your products, your business, or simply industry issues as well.
Sell products or services
Marketing is important because it helps you sell your products or services. The bottom line of any business is to make money, and marketing is an essential channel to reach that end goal. Without marketing&, it is just like you have good products, but you do not know how to sell. Simply, with fresh and inviting content, marketing can help you draw customers’ interest and then lead them to purchase.
Maintain companies reputation
The development and life span of any business is positively correlated to your business’s reputation, which is built when your business service can meet up with customers’ expectations. Therefore, it’s fair to say your reputation determines your brand equity. By using effective ways of communication, branding, PR, and CSR strategies, marketing can ensure to maintain your business reputation.
Assist the business administrators in making the right business decisions
Every business has similar problems with what, when, how, how much, and for whom to produce. The process of solving all of these questions seem to be complicated and tedious because they are directly related to business survival.
Thanks to marketing, which is considered as a reliable link between your business and society, these questions are nearly answered. That is because marketing cultivates people’s minds, educates the public, and convinces them to buy.
In a nutshell, although there might have a lot of factors contributing to business success, marketing still standouts and plays a vital role in the development of any business. Noticeably, for B2B businesses, it seems to be unreplaceable.
Factors affecting marketing
There are a number of forces that exert their impact on the whole business and particularly the shape of marketing. We group them into two categories: internal factors, which can be actively controlled and marketing management and external factor, which can overcome by well-thought marketing strategies.
Every part of a business can have a particular impact on marketing, from finance to production section. For instance, the limited budget invested in marketing makes it hard to reach a wider audience through different channels.
Competition Competitors who offer the same lines of your product is not only a challenge but also a great source of motivation for you to innovate your marketing strategy. It is essential to strategically plan your marketing to get an advantage over a competitor but keep original objectives>
Because every stage of an economy can directly affect consumption, which then changes the shape of marketing. The four stages of the economic cycle thorough prosperity, recession, depression, and recovery. Your marketing campaign, product offerings, and pricing must pay special attention to the current economic cycle to be successful.
Social- Cultural Factor
The differences in social norms culture diversity can lead to different marketing approaches. The marketer should make the best use of them to stay closer and then encourage consumer’s consumption.
If an organization is implementing a marketing strategy for a business in a specific location, the demographics of the area can significantly affect marketing. It is particularly true with online marketing when age and gender significantly affect customer shopping behaviors and marketing too.
For example, products or services aimed at people at the age of 40 years old should not be marketed on the social channels whose primary audience is the young in the 18-25 age range.
2020 comes with new marketing trends that will change content creation for the business. It is no surprise that constant technology updates and modern marketing techniques have put down pressure on markers. That requires them to not only keep the audience constantly evolving but also continue to create and to distribute effective and engaging content.
Let’s check out top trends that dominate marketing in 2020
Because nowadays everyone is likely to use at least one kind of social media, that becomes an integral part of online marketing. Online marketing brings tremendous opportunities for businesses, given the fact that social network users tend to purchase directly from your post on Facebook or Instagram. These kinds of posts not only offer you the ability to reach new customers quickly and efficiently but also shortening the sales funnel and making it easier for users to shop.
This year, shoppable posts will be the norm!
Virtual and Augmented reality
Recently, both augmented reality (AR) and virtual reality (VR) have become massively popular and are emerging as top trends in marketing. In 2020, AR is supposed to grow faster and be more popular than VR, despite VR’s early lead.
For years, the content has been at the heart of any marketing plan, and for this year, it continues to be true. In spite of the abundance of information online, consumers still expect to use a reliable source of information useful for their shopping. Therefore, by providing high-quality content that can assist the customer in their shopping journey, you can show your expertise and communicate with them from a place of authority, allowing you build customer’ trust and loyalty.
Interactive content To meet the increasing demands of content consumers, businesses today are using and continues using interactivity in their content marketing to maximize engagement across the board Content that requires the participants’ active engagement — more than simply reading or watching. In return for that engagement, participants receive real-time, hyper-relevant results they care about. Interactive content, including infographics, case studies, landing pages, quizzes, presentations, and ebooks.
By using interactive content, you can :
- Create a high engagement rate
- Capture or and relevant customer data
- Increase brand loyalty
Now, consumers expect to get more personalization when shopping online. Dynamic content is one of the inventions born to serve this purpose. Dynamic content, which is also known as adaptive content, refers to web content that changes based on the user’s behaviors, demographics, preferences, and interests.
For example, Booking(dot).com implements this solution when displaying the number of visitors that look at the same listing at the same time, to increase the urgency.
Video and live streaming
Video and live-streaming are growing fast thanks to popular platforms like YouTube, TikTok, Facebook, ect., and they certainly get bigger in 2020. Significantly, the time that we have spent to watch Facebook Live videos have quadrupled in a single year, and they produce six times as many interactions as traditional videos.
One of the most simple ways to try out the live-streaming trend is with Facebook Live and Instagram Live. Via live streaming, you can hold a live Q&A and interact in real-time with your audience.
Conversational marketing includes many forms such as email marketing, live customer support, chatbots, etc. Noticeably, with advances in artificial intelligence, chatbots are bringing the life-like experience to users.
So, if you want to keep up with the marketing competition and learn about your target customers faster, you need to step up your conversational marketing game in 2020.
Google Ads uses machine learning to optimize your bids, which offers you excellent abilities to maximize your conversion. By Google Ads, you can:
- Select conversion action at the campaign level
- Change your bid automatically when sales begin or end
- Optimize bids over multiple campaigns with a selected set of conversion actions.
This year, new trends come, but it does not mean that all the old methods have become outdated can not be used anymore. In fact, there are some marketing trends that have dominated the market in the past are expected to grow this year.
Marketing is obviously a large and deep field for everyone, even who has been in this field for years. There are a variety of factors that needs to be studied further. However, we still hope that our summary can help you open the door and get more insight into it.
Essentially, in today’s competitive market, marketing is one of the keys to business success. You should not only keep going with our own marketing objective but also be open to the world to see and learn new knowledge. Let’s try and make it out!