What is wrong with marketing?
Marketing consists of a number of activities and techniques to communicate and to distribute products (goods and/or services). The marketing concept contains everything from the collection of market information and influencing of the design of the offer to advertising and, finally, sales.
Could marketing in any way embrace some general theory with the option of a more scientific approach? Are there any overlooked logics or concealed principles offering a foundation?
No real theory
An analysis, logically seen, has to start from the transaction, the encounter of the price set by the seller and the valuing by the buyer. This will be like an equation, where the priced features of the offer are balanced against the value they evoke with buyer.
The conditions for the dynamic relation between price and value offer the evident logics of the principles of marketing.
These five principles are consequently neglected in conventional definitions and structures of marketing.
1. Branded products only
The communication is a main issue in marketing to differentiate the objects of the activities. Consequently, the objects of the communications, the products, must have a name – a trademark or brand.
2. The induction of value
Marketing communicates by means of the product “itself”, advertising and PR, by the design of points of sales, etc. All of this is aimed at amplifying the buyers’ impression of value and, consequently, their demand.
3. Positive price elasticity possible
A branded product may sell in higher quantities thanks to an increased price (positive price elasticity), which in itself may increase the value (“value of price”). This is virtually impossible for non-branded items.
4. Sales is not marketing
Value induction by marketing is based on the collective valuation by a population, whereas selling is an individual affair. This makes selling conclusively differ from marketing, being far from part of it.
5. Not the market - the audience
The full value of the branded product is limited to the audience knowing the brand/product. The dynamics of the relation price/value may be analysed with the audience as model.
The conclusion is that marketing needs a theory. Read more.