everything you need to know about the art of winning and retaining customers – WAU
(This is the first audio in this text, where we cover the basic concepts of marketing)
Have you ever wondered how some companies manage to attract so many customers? What do they do to stand out in the market? Why do their products sell so much, while others are stranded?
The secret to success certainly lies in marketing.
Those who dominate marketing know everything about the market: how to position themselves, how to win customers, how to deliver value to their audiences and, of course, how to generate profit and competitiveness with all this.
However, we are talking about a set of knowledge, which is not just about selling products. It covers a series of concepts, strategies, channels and methodologies, which are constantly changing over the years to adapt to social changes.
For dominate the market, then, it is necessary to master this science. That’s why we’re going to talk now about everything you need to know from traditional advertising to digital marketing!
We’ll start by talking about what marketing is. Come on?
What is Marketing
Marketing is a very broad concept. Contrary to what many people think, marketing is not just about selling, nor just advertising. These concepts are often confused and do not represent everything that marketing covers.
To understand what marketing is, then, we will use some names and institutions representative of the area.
The American Marketing Association (AMA), which represents marketers in the United States, provides the following definition:
“Marketing is the activity, the set of institutions and the processes to create, communicate, deliver and exchange offers that have value for consumers, customers, partners and society in general ”.
This definition shows the scope of the marketing concept. Also note that the focus of this activity is not to sell products to customers, as many might think.
Marketing works with the generation of value, and this must happen in the perception of different audiences about the cost-benefit that the company delivers.
The Chartered Institute of Marketing, which represents the area in the United Kingdom, defines marketing as:
“The management process responsible for identifying, anticipating and satisfy customer needs with profit ”.
There is an important contribution to understand what marketing is: the needs of the customer.
They are inherent to the human being – it is not marketing that creates them. However, this activity must know how to perceive people’s needs and awaken the desire to supply them.
This definition is in line with what Philip Kotler says in his book “Marketing Management” (which you will learn more about later). In a nutshell, he defines that marketing is “meeting needs while generating profit.”
These definitions also do not miss the central objective of companies: the profit. After all, this is what guarantees your survival and competitiveness in the market – and that is one of the reasons for the existence of marketing.
But it is worth mentioning that marketing can also be adopted by non-profit organizations – public institutions and NGOs, for example. In these cases, the objectives of marketing are to return in other ways, such as engagement or strengthening the brand.
Now, since we are talking about marketing objectives, let’s see a little more about them.
Can you tell what marketing is for? Anyone who thinks that it only serves to sell products is wrong. Marketing objectives can be much more comprehensive and help achieve different results for companies.
Let’s look at some of them now.
1. Sell more
Sell: yes, this is one of the main objectives of marketing for organizations that put products or services on the market.
It is the role of marketing, then, to prepare strategies so that they meet the needs of customers and increase the chances of successful sales.
2. Build customer loyalty
But the role of marketing does not end with selling. The company must remain close to the customer so that he does not forget the brand and comes back to buy again.
It is worth remembering a classic phrase: retaining customers is much cheaper than attracting new buyers.
3. Increase visibility
Another objective that marketing helps to achieve is to increase the visibility of the brand and its products.
However, there is no point in seeking visibility with an audience that has nothing to do with the company. To optimize marketing investments, strategies must be focused on the right people: those who are most likely to become customers.
4. Manage a brand
Marketing is all about branding. Building a brand happens in the minds of consumers.
And, in order for them to absorb the brand image, it needs to make its values and purposes tangible through marketing strategies – in a piece of advertising and in the pricing of products, for example.
5. Build good relationships
Marketing is also all about relationship. By strengthening ties with its audiences (not just customers, but also partners, employees, etc.), a company is able to strengthen its brand.
Sales and loyalty are a consequence of this process.
6. Educate the market
Content production is at the heart of marketing today. Blog posts, magazine and newspaper articles, social networks and other channels help to create brand authority, while educating consumers about the solutions the company offers.
The intention is not to sell the product directly, but to show how it can be useful.
7. Engage employees
Marketing strategies don’t just aim outside the company. Within its borders, there is an audience that is essential to the success of the business: the employees.
For this reason, marketing – or better yet, internal marketing – can also help to engage the internal public, make them happier with their work and make them propagators of the brand.
The origin of Marketing
There is no official milestone for the emergence of marketing. But we can say that it exists – not yet as a field of knowledge, but in everyday practice – as long as people exchange goods with each other.
This has been happening since the first civilizations. But it was at the end of the Middle Ages and the beginning of the Urban and Commercial Renaissance (around the 15th century) that cities began to grow and consolidate commercial practices.
Of course, there were no marketing professionals yet – not least because marketing schools would only appear in the early 20th century. But small marketers and traders are already starting to adopt better ways to “sell their fish” to attract more customers.
Later, in the 18th century, the Industrial Revolution began to radically transform society, the economy and ways of living in the city.
With the emergence of factories, some theories and methods of business administration, in search of greater efficiency and productivity.
From that moment, with a high production, the challenge was to find demand for the products. Thus, sales and distribution practices begin to be developed – and then we begin to enter the art of marketing.
But it is only in the 20th century, with the sequel to the Industrial Revolution and the consolidation of market economy, that marketing takes hold.
The rise in competition, the demand for new products and the growth of cities brought about the need to establish a relationship between producers and buyers, which would stimulate the demand for a company’s products.
But it is necessary to put yourself at that time: everything was still very new.
Therefore, marketing did not have the vision it has today, of knowing the public, segmenting the market and meeting needs. The intention was just to sell!
In this context, many malicious practices were adopted to deceive consumers, who ended up buying “cat in a poke”. And that generated a negative image about what marketing is.
At that time, some scholars also began to analyze the effect of marketing and advertising.
Walter Dill Scott, for example, studied the psychology applied to advertising and its persuasive (even hypnotic) character. He developed advertising strategies that were widely used by companies at the beginning of the century.
It was only afterwards, with the maturing of consumers, that companies began to worry about consumer satisfaction.
Peter Drucker, considered the father of modern management, is one of the authors who directs the focus of business management on people, which already demonstrates that companies should not “sell at any cost”.
Philip Kotler, the biggest reference in current marketing, follows this line. In 1967, he launched his classic “Marketing Management”, which places this area as a central and vital point for companies.
They should be oriented towards the customer and the market, not just looking at their own production.
It is with this mentality, then, that marketing emerges as we conceive today. From there, the consumer becomes the center of attention.
But Kotler himself points out that marketing does not stop: it is constantly evolving, because it follows the changes in society’s behavior.
And if technology is increasingly increasing the speed of change, you can imagine that the pace of marketing is also accelerating.
Now, let’s see the main facts that marked the history of marketing, which mixes with the history of technology and the media. Let’s go to our timeline:
1447: Gutenberg creates the printing press, or typography. This invention revolutionizes the dissemination of information and ideals. Luther’s Protestant Reformation, for example, was propagated using the newly invented press.
1609: Germany publishes the first printed newspaper as a periodical. This means of communication will later be important for advertise products and services in classifieds and other advertising spaces.
1730: Magazines also appear as periodic publications and become another channel for information, entertainment and advertising.
1880: With the Belle Époque artistic vein, posters become popular as a means of dissemination through city streets. Later on, they will be important vehicles for war propaganda in Western Europe, the Soviet Union and the United States. Following the posters, billboards also appear in larger formats.
1920: The radio appears. At that time, many people questioned the printed media, since the radio was much more interesting and cheap – they didn’t even imagine all the technology that was yet to come.
1930: Open television broadcasts begin. If radio was already a threat to print, TV was seen as the end of newspapers and magazines (which definitely didn’t). In London, the transmissions took place only in 1950, through the hands of Assis Chateaubriand.
1941: The first TV commercial airs. In this media, advertising wins high power of penetration and persuasion.
1942: Nestlé inaugurates an exclusive channel for communication with the consumer, the Family Collaboration Service. It was the beginning of Consumer Services (SAC) in London.
1970: Telemarketing becomes a common practice for selling products and services to consumers. PABX systems (Private Automated Branch Exchanges) allowed companies to have as many extensions as needed to make the calls.
1981: IBM launches the first personal computer, the IBM PC 5150. Thus, the use of digital media by people and companies began to become popular. A little later, in 1984, Apple launches its first Macintosh, highlighting the legendary launch commercial that also made history in marketing.
1991: Tim Berners-Lee creates the world wide web (or World Wide Web). The invention aimed to democratize knowledge. But the web went further: it eliminated the frontiers of communication and marketing and accelerated the speed of change in the world.
1995: Amazon and eBay are born, the first online sales sites, which later became e-commerce giants.
1996: The world’s first webmail service, Hotmail, is launched. The service popularizes direct communication between companies and people, but it also explodes spam.
1998: Google is born. It is not the first invented search engine, but founders Larry Page and Sergey Brin innovate by using an algorithm (PageRank) that organizes pages by relevance, instead of just sorting them in alphabetical order as their competitors did.
1998: Blogs appear. Initially, they look more like personal diaries. Later on, corporate blogs will become important content marketing tools for companies.
2000: Google launches Adwords to allow the inclusion of sponsored links in the search. This advertising format is a classic of paid internet media, which is still widely used today.
2003: The United States signs the Can-Spam Act, the first treaty against sending unsolicited email marketing.
2004: Mark Zuckerberg launches Facebook, a small university social network that would revolutionize social relations and become a great business platform.
2005: YouTube is launched, which becomes the internet video giant. A year later, it is acquired by Google.
2007: Steve Jobs launches the first Apple iPhone. This launch was a milestone for making smartphones more popular and for the world become more mobile.
Source: PAUL SAKUMA / AP.
2009: Google starts testing self-driving cars – a milestone for the use of artificial intelligence and the Internet of Things.
2015: Google launches RankBrain, an algorithm based on machine learning to qualify the delivery of search results to users.
2015: The concept of Shared Economy – represented by businesses like Uber, Airbnb and Netflix – emerges, which introduces a new business model and a new way of consuming.
Phlip Kotler explains in his books that marketing has gone through different phases. This is because the activity follows the evolution of the market, society, technology and, above all, consumer behavior, with whom it should create a connection.
Currently, we are in the fourth phase, called Marketing 4.0. Therefore, we have already gone through Marketing 1.0, 2.0 and 3.0. Next, you will know what they are about.
However, don’t think that one stage comes to replace the other. There are still companies living in the previous phases, because they did not react to the changes.
But Kotler makes it clear that those who know how to adapt to each moment are more likely to succeed in the market, okay?
So, follow the evolution now and think about what stage your company is.
In Marketing 1.0, companies were focused on their production and products. Basically, they looked only at their own navel.
We understand why this is when we look at the scenario in which this first phase is taking place.
We are talking about the first steps of marketing, when there were not so many products on the market, nor so many competing companies, and the consumer was still immature in terms of advertising.
So there was still no need to worry about brand building, market segmentation, let alone customization.
The solution was simple: spread the word, focusing on the functional attributes of the products, with media such as TV and radio to maximize visibility.
In Marketing 2.0, we have already noticed an evolution in the perception of companies. They stop looking only inside and realize that they need to understand the needs of consumers.
When identifying and serving them, companies would have demand for their products.
At that time, consumers were no longer a mass. They are already more mature and demanding with companies, which must rethink their strategies.
Thus, marketing starts to recognize that they have different needs and desires, that their products can supply.
Then, the notion of market segmentation arises. The role of this task is to delimit groups of consumers, with common profiles and interests, and to define a target audience, in which the strategies will target.
When approaching a specific group, companies reduce competition and reduce spending on mass marketing, which reached many consumers outside the business’s customer profile.
In Marketing 3.0, the internet comes into play. Society becomes digital, connected, without borders. People gain the power to speak out on websites, blogs and social networks and be heard on the other side of the world.
And so, the hierarchy of consumer relations is reversed – consumers are now in power.
In this scenario, once again, marketing had to adapt. It no longer makes sense to treat consumers by segment, nor as targets. They are simply human beings, who want to be heard.
As human beings, consumers become unique. Therefore, companies must create personalized strategies for each person, according to their needs, pains, interests and behaviors.
And, to talk to people, brands must also assume human traits. It is in this sense that companies start to define values and principles and get involved in social and environmental causes, demonstrating their humanity and concern for the future of the planet.
Consumers don’t just want companies that sell products anymore – they want brands that make commitments.
If Marketing 3.0 appears in the internet age, Marketing 4.0 is marked by the digital economy. Connectivity has so profoundly transformed society that Kotler identified the emergence of a new era, reported in his 2016 book “Marketing 4.0: Moving from Traditional to Digital”.
This is the stage we live in today, in which the internet permeates every moment of our lives. Search, buy, study, chat, get informed – for all that, we use the internet.
For companies, this must also happen. THE connectivity is transforming consumer relations, social standards and power structures. So, marketing must also enter the digital transformation.
But Kotler isn’t just talking about creating a Facebook page and sending email marketing, okay?
Marketing 4.0 consists of understanding this new hyperconnected scenario and the change of mindset of companies to a more inclusive, horizontal and social logic.
This is a much more profound change than getting likes on social media!
Marketing and Advertising
Advertising is one of the arms of marketing, which is part of the Promotion P, within the 4 Ps that you will learn about later in this article.
She is responsible for publicizing the company and the products to the consuming public and encouraging them to buy. This can happen through paid advertisements on TV, radio, billboards, social media, search engines, etc.
Marketing is much more comprehensive than that.
He deals with activities ranging from market analysis to measuring sales results, for example.
In this whole process, advertising is the persuasive tool that targets the public and helps generate demand for the company.
Marketing and Administration
Marketing is one of the pillars of administration, which also depends on people management, finance, logistics, sales, etc. Without one of these pillars, management is incomplete, and the company cannot move.
Kotler shows that marketing, as a central point of companies, is directly related to management and should direct its vision, mission and strategic planning. It is no coincidence that he works with the concept of Marketing Management, an expression that gives his classic book its name.
From the perspective of Marketing Management, when companies change, the organization of marketing also changes. Therefore, marketing has gone through the different management philosophies.
Now see what were the main ones and how marketing played its role:
It relates to the Marketing 1.0 phase, which we saw earlier. Companies look only inwards, in search of greater efficiency at the lowest possible cost, and focus on mass distribution.
In this orientation, marketing only deduces what the market needs, without deeply analyzing its demands.
It also relates to Marketing 1.0, but the focus is on the product and the total quality of production.
Marketing is concerned with delivering and propagating products with superior quality and performance, deducing that this is what consumers want.
Here, companies begin to look at the market, but are not yet concerned with understanding their needs.
Marketing is directly linked to sales: it must adopt a persuasive language, which makes consumers buy at any cost, since they will not spontaneously do so. The problem? Nobody likes to feel pressured.
From here, we are talking about Marketing 2.0, focused on the customer. Management’s orientation towards marketing brings the market view.
First, companies must understand what the market needs; then, they must develop strategies to meet the demands of the segments, in a way that differentiates them from competitors.
Orientation to holistic marketing
While the first three guidelines are already in limited use, the guidance for holistic marketing is the most contemporary approach.
According to this philosophy, marketing is broad and works with different areas of the company, with which it builds interdependence.
Marketing and Sales
Until Kotler’s ideas came to market, marketing was widely seen as synonymous with sales. However, these areas have different functions.
The sales team works at the final stage of the purchase journey. Its role is to stimulate decision making when the customer is already more mature.
To reach this point, however, he goes through the process of maturing with the marketing team, which had the role of attracting interested parties, strengthening the relationship with them and nurturing them with content.
The separation between the areas, however, caused a schism. In many companies, Marketing and Sales do not talk and still dispute who should receive the laurels of sales.
The truth is that this rivalry does not bring any benefit to the business. From the perspective of holistic marketing, the ideal is that the areas work collaboratively for the good of the company.
For this reason, the term vendarketing was created, with the intention of promoting integration and alignment between these sectors.
In the Inbound Marketing methodology, vendarketing helps to extract the best results, optimize the resources of the sales process and maintain cohesive communication with the lead throughout the entire funnel.
Product life cycle
One of the most important concepts in marketing is the Product Life Cycle (CVP). Presented by Philip Kotler, it shows the harsh reality: nothing is forever.
This is true for life, but also for products, product categories, brands and markets.