Marketing

Updated on May 13, 2025.

Table of Contents

• Differentiation from other functional areas of the company:
• Marketing Goals
• Tools of Sales Management - the 4 Ps
• Key Impact Areas

Introduction

Marketing, often also called sales management or market-oriented business management, deals with all activities relating to the market. The focus is on adapting the entire company to the needs of the market, with the long-term goal of customer satisfaction , which in turn leads to added value in the form of sales and profits for the company. Central characteristics include, in addition to market research , an orientation towards customer wishes, an orientation towards innovation and a orientation towards behavior. Many topics must therefore be taken into account and numerous questions clarified. For example, which products should be produced, which target group the company wants to address and, ultimately, the questions at what price and via which channels the product should be offered. Companies often differentiate between offline and online marketing.

 

Differentiation from other functional areas of the company:

Marketing as a Maxim:

Means the consistent alignment of all operational functions and decisions to the requirements and needs of the buyers

Marketing as a Means

Refers to the coordinated use of instruments and measures to influence market developments and thus create lasting preferences and competitive advantages. This targets the so-called marketing mix.

Marketing as a Method

This means the use of systematic and modern techniques for decision-making.

Marketing Goals

In order to clearly define goals, they must be precisely defined and specified in terms of content, timeframe, and degree of goal achievement. The goals must meet the requirements of transparency, achievability, and verifiability.

Marketing objectives can be derived from the company objectives and are differentiated as follows:

Quantitative (economic) Goals

These are also referred to as hard facts, as these goals can be measured and described precisely.

Key metrics include sales, market share, profit, and contribution margin. Achieving these goals is considered a prerequisite for the economic success of a company or market segment.

Qualitative (psychological) Goals

Quantitative goals, such as brand awareness, corporate image, or customer satisfaction, are difficult to define and are virtually impossible to measure, which is why they are also referred to as soft facts. Strategic goals are long-term in nature and of central importance to the company. Strategic goals include, among others:

• Increase sales (in an existing market)
• Developing new markets
• Reaching new target groups
• Increase awareness

 

Tactical Goals

They are also called operational goals and are rather short-term, which is why they are subordinate to the strategic goals.

Tools of Sales Management – ​​the four Ps

In order to increase profits and remain competitive, the sales industry uses four central marketing instruments, the so-called four Ps:

 

However, the use of only selected instruments is not effective, because the added value for the company only arises when all instruments, the “marketing mix” , are optimally coordinated with the long-term goal of profit maximization and sales control.

Product Policy - Product

Definition

Product policy is a key tool for influencing the market and positioning the company. This requires an attractive design of the sales program, which includes decisions about the development of new products or services, or the improvement or expansion of existing products. The decision to remove products from the product range because they are not achieving the desired sales volume falls under this area of ​​responsibility.

Instruments

• Product Development

→ Finding and designing new products

• Product Innovation

→Systematic search for ideas for the development of new products

• Product Variation

→ Improvement or adaptation of existing products

 

Price Policy - Price

Definition

Pricing policy determines the sales volume of a product or service and is therefore a crucial competitive factor in the market. It is crucial to set the price so that, on the one hand, customers are willing to buy, and, on the other, the company makes a profit.

Strategy

• Skimming strategy
  • Introduction of a new product at a high price and only gradually adjusting the price downwards.
• Market development strategy
  • Launching a new product at a low price with the aim of reaching as many buyers as possible and gaining regular customers
• Price differentiation spatial : different prices for the same product, e.g. in different countries temporal : different prices at different times due to fluctuations in demand personal : different prices for e.g. adults and children, or seniors and pupils/students

 

Communication Policy - Promotion

Definition

Communication policy encompasses all decisions regarding the marketing and publicity of a product or service. The key focus is therefore on finding suitable advertising channels, whether through print media, audio advertising, or social media channels.

 

Distribution Policy - Place

Definition

Distribution policy deals with deciding on the right distribution channels, i.e., the route through which the product should reach the customer. The company must decide whether it wants to offer its products directly, for example, only through its own online shop, or indirectly, through independent retailers or sales representatives.

Key Impact Areas

Marketing has an impact on various different parts of an organization or business. It is useful for gaining insights into the target user base, communicating with customers, driving revenue via campaigns, and driving brand awareness. Here are some of the key impact areas:

Brand Awareness & Growth

Marketing is a key driver of brand awareness and brand growth. A good marketing campaign should not only have the potential to boost sales, but also establish a foundation for a sustainable sales cycle. Brand awareness is crucial for the same.

Engaging with Existing and Prospective Customers

It can be hard to measure the impact of marketing sometimes, given that it is a broad concept encompassing various sub-concepts. To top that, it is also a fast-evolving field - in the last two decades alone, the language and structures of marketing have evolved constantly.

One thing that remains constant: relationship building. Building a relationship with users/customers remains a valuable metric for both present assessments and future projections.

This is where marketing comes in. With the help of 'good' marketing strategies, you can effectively communicate with your existing userbase as well as with prospective users.

Tool for Research

Adept marketers will tell you that marketing is a self-feeding circle. Marketing strategies are capable of generating valuable customer insights - insights, which you can use for your next marketing campaign.

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