Marketing concepts, markets and competitionمفاهيم التسويق والأسواق والمنافسة

Marketing is more than selling

Many people think marketing means advertising or pushing products. In fact, marketing starts long before the sale: understanding what customers need, offering the right product at the right price in the right place, and telling the right people about it. Selling is one important part of that.

In this course you will follow Mustafa, the new sales and marketing manager at Rafidain Solar, a company in Basra that sells and installs home solar systems. Demand is high because of long power cuts, and competition is growing fast. The company receives 430 enquiries a month but sells only about 38 systems.

Key ideas

• Need: a basic requirement, such as cool air in summer.
• Want: a specific way to meet the need, such as a split air conditioner that runs during power cuts.
• Demand: a want backed by the ability and willingness to pay.
• Market: all the actual and potential buyers of a product.
• Value: what the customer gets compared with what it costs them, in money, time and effort.

Mustafa's first observation was that Rafidain's salespeople talked about panels and inverters, while customers talked about sleeping through the summer nights and paying less to the neighbourhood generator.

How thinking about markets has changed

Early in the twentieth century, most firms focused on production. Over time, the focus moved to the customer, with ideas such as product differences, customer service and service quality.

Selling concept or marketing concept?

Rafidain had grown with a selling approach: big discounts at the end of each month to hit targets. Sales rose for a few days, but customers who felt pushed rarely recommended the company.

Competition

The home solar market in Basra is a case of monopolistic competition: many sellers offer similar systems, so customers choose by price, quality, warranty and trust. Competing on price alone leads to a race to the bottom; competing on service and reputation builds lasting advantage.

Exercise: your market

1. Describe the main need your product or service meets, in the customer's words.
2. Is your organisation closer to the selling concept or the marketing concept? Give one example.
3. Which type of competition does your market have? Name your three main competitors.
4. Apart from price, what could make customers choose you?