Never mistake selling for marketing

Marketing, definitely, is a disparate discipline from selling. There are (at least) four implicit characteristics of marketing, rarely observed, but nevertheless of great importance in practice: 1) Branded products only (communication needs a name to refer to), 2) Price/value relation (not supply and demand) decide sales, 3) Positive price elasticity possible (value-enhancing activities can increase sales), 4) Audience, not market (full value in a limited audience only) is the primary target. Companies unaware of the difference may get into trouble with sales people in charge of their marketing department. To get the full story, read it all!   

Pricing – flexible or fixed?

When deciding on a flexible or fixed price for electricity or bank loan interests you are often in a difficult situation of choice. Which one is to be preferred? Putting this situation in relation to the principle of the transaction equation, I realized this. The flexible, demand dependent, price is the price of a commodity. The fixed price may rather be seen as that of a branded product, as the offer contains a component of reliability – no surprises here. On the buyer’s side this would be regarded with trust and comfort. By the addition of this positive aspect to the product, the supplier would be able to ask a higher price over time. This potential for a metavalue clearly indicates a branded product. I will appreciate your comments – does the difference in the offers mean the fundamental difference between non-branded and branded products? Do visit my General Theory of Marketing for a comprehensive discussion.

THE TRANSACTION - THE ETERNAL EQUATION

The obvious center of all commercial activity is the selling / purchasing transaction. The transaction becomes reality only when both parties consider themselves gaining from it. When the buyer values his eventual benefits of the seller's offer at least equal to the asking price - then the deal is on. And when the seller adds a benefit aimed at the buyer, only then he may raise the price. This makes an equation relevant as the principle for the transaction. On one side the priced offer and on the other its meaning as valued by the buyer. Never forget, that every time you purchase something, you do it because you find it being worth the price asked, right there and then. And, consequently, everything you don’t buy is not worth it - there and then. This is a cornerstone of the MetaManagement Concept since 30 years.