The marketing theory is the approach that companies adopt to meet consumers’ requirements, maximize sales, increase profit, and defeat the competition. There are 5 marketing theories that companies adopt and implement. These are; (1), brand concept, (2), product concept, (3), selling concept, and (4) marketing theory. Marketing also includes other factors such as advertising, selling strategies, distribution, branding, positioning, technology, government regulation, human psychology, and competition among others.
Branding is a unique selling concept which involves creating a distinctive selling point, which usually is associated with a product. Products that are easy to identify and recall also have high sales. A unique selling proposition is therefore essential in order to create marketing research.
Product concept involves identifying and researching the consumer’s need and wants. This is called product analysis or marketing management. Analysis of consumer behavior in terms of taste, color, smell, touch, and price is called social marketing management. Moreover, marketing management also involves market research and product development. Market research involves studying what products are popular, what people want, and which are not so popular.
Selling concept on the other hand, focuses on what consumers buy to satisfy their needs and desires. This concept focuses on selling to a target group. Marketing managers apply this concept by creating an environment that will be conducive for selling. Marketing managers focus on the creation of a catalog to persuade consumers to purchase the product. The catalog, together with the selling techniques used, enables the company to gather pertinent information about its consumers.
Marketing theory is divided into five basic concepts: marketing strategies, marketing techniques, competitive analysis, product concept and advertising strategy. These concepts are then further subdivided into several categories: consumer-based marketing strategies, dealer-based marketing strategies, service-based marketing strategies, and individual-based marketing strategies. All these subcategories help marketers to understand their target customers better. They enable marketers to devise plans for promoting their products and as well study competitors.
Competition analysis is the process of understanding the current market scenario and applying marketing strategies in order to survive and thrive in the market. Marketing managers study competition and try to figure out what kind of marketing strategies would work in order to dominate the market. They look at consumer behavior, past and present market position, buying habits of consumers, geographical location of customers, market mix, quality, price, reputation, and brand name of competitors. These marketing concepts give marketers an idea of what kind of consumers will be their best prospects. This allows marketers to develop marketing strategies according to the current demand of consumers.