by A.W. Berry

Created on: August 18, 2007

There are many types and styles of marketing so the first thing one might consider in reviewing principles of marketing are the 4 P's of Marketing. Price, Place, Product, and Promotion. These are marketing pre-conditions that determine how marketing is done as a boat generally is not marketed the same way(s) as a candy bar. From this point several other important principles can follow. These principles can be divided into two categories internal and external product/service benefits and consumer awareness.

Internal and External Product/Service Benefits:

By internal and external, we are talking about benefits to the business or person providing the product or service and the recipient of said product/service. Two important marketing principles that pertain to these locus' of benefit include 1) Customer lifetime value and 2) Brand Equity.

*Customer life time value is the past, present and future value of existing and potential clients via extension of the idea that a present customer's value also includes future cash flow from that customer. The reason Customer lifetime value is important is because it represents a qualitative and quantitative estimate as to how much an individual client is worth in relation to a business. What's more, it reinforces the notion customers are for life and not just a one time purchase.

*Brand equity is also important as this is often what a consumer uses to value a product and/or service in their mind. A company's brand equity consists of the potential use, benefit and satisfaction gained by a client after purchasing a product and/or service. For example, how is a product different and better from a similar product (product differentiation), how good is the quality in relation to the price, how convenient is the product or service. The better a perceived brand equity is, the more likely a client is going to want what you have to offer.

Neither Customer lifetime value or brand equity are worth much if the product or service isn't actually marketed. This is why research and advertising budgets are so important to a company's success. A few of the key principles of getting your business noticed are Target marketing, Primary Research, Secondary research and Persuasion.

-Targeted marketing is the localization of marketing efforts to specific groups of people who are believed to be more likely to purchase and/or respond favorably to a company's marketing efforts.

-Primary Research is what assists a company in targeting a market accurately. While

• 1
• 2
• Next Page >>