Selling is a process where a products are exchanged into money but racketing is a process where customer's want exchanged into a product. That's the greatest difference between selling and marketing. Marketing is a study about the customer want by using various approaches such as collect customer feedback, asking customer for honest reply about the pros and cons about a particular product. The general example of selling could be reflected by the notable Apple retailer shop.
All the Apple retailer shop whether they are official or authorized reseller, the objective is to get customer to buy the product out of their shop and reaching their ales target. Meanwhile, marketing plays a totally different role by studying the customer behavior. If a firm doing well on marketing, they would be able to keep their customer and at the same time attracts new customer to Join the so-called "family'. You can only call your business successful when you have loyalty customer or in another word your customer will always come back to you.
Every nine to twelve months, Apple will launch a brand new phone which is their core product that support the entire organization and make them a firm that possessed the highest value in the globe. The worldwide sales of phone are maintaining around 6 million units in the first three months or some people would say the first season. This notable results shows that the customer are coming back and back the Apple up and in the first three years it never stop growing. But this successful flow was slowing down when the phone 5 came in and the sales is decreasing.
Some professional and expert in technology claimed this scenario happened because of all the other competitor such as Samsung and such and such are expanding the screen of the phone become bigger and bigger. A big screen phone is already becoming a trend ND also a must for the customers. But Apple has not keep up to this trend and they only gained a 5. 7 million units sold in the first season when they actually set 7 million units as their target. This is what it called exchanged the customer needs into a product.
It is obviously an important element for organization to sell the products but to maintain your position in the market place and take well care of your organization reputation. You must know what the customer wants and needs. Apart from that, the greatest difference between sales and marketing is their motive of doing things. The motive of sales is exceeding the sales target but the motive of marketing is exceeding the customer's satisfaction. In the past, people claimed marketing as telling and selling but obviously it has come to an age where things are different.
It is easy to understand that the options in the marketplace were scarce in the past and this has make the customer to buy things without thinking too much. The education and the knowledge possessed by the consumer is not so much because of the information technology at the past is not so advanced. You can get any information you wanted in just a finger tips. Let us use television as our example, which human being in the ass will ever think of the possibility where you can have internet surfing system in a box that will only shows you an image with black and white colors.
The expansion of the inches you have on your television or the features that were added in your television that excite you to buy the product is what marketing are meant for. Look at what we had on a Samsung smart television which first launch in our nation, you will have an 80 inches of curve size screen television where the satisfaction of viewing the aerogram will be boost to the top of the Max. The high definition (HAD) was the greatest trend we will ever had before 2010 is already out of date where we have ultra-high dimension (DUH) is a must for the customer in this age.
Marketing is a study of understanding the customer's need and promising them superior values. Look at the price of the first 32 inches television that first introduced into our country and look at their price now. Of course it is understand that the factor that make this happen is highly generated from the price war between those competitors. But providing customer superior value or exceeding your customer's expectation is also the biggest factor that contribute to this situation and a factor that must have been considered in the price structure strategy.
The greatest example of exceeding customer's expectation is the free gift strategy. It is a valuable investment where you gift a quality stereo speaker when your customer buy a television from you. You can convinced your customer to buy the product straight away without think too long by giving them free gift as these gift which actually cost you Just a little could make your customer behave irrationally and buy your product. The very low price of the free gift you offer to your customer will bring you high amount of sales and of course following by the profit.
Exceeding customer's expectation will lead you uncountable advantages. A good impression that left during a trade will lead you more business and of course that is when your company is being called as a successful organization because you can only call your business successful when you have repeated customer. Some people has claimed that marketing is Just about telling and selling, this is not wrong but it is not right for the entire marketing as well. Telling and selling could be understand by promoting your product which is also the slowest way of spreading the acknowledgement about your product.
Salesman approach a product to their target customer while marketing expert studies the most efficient way to reach a product to their customer. There is a reason why people would spend million or even more dollars on advertising. The only way to spread the knowing of a produce in the past is by convincing you customer to buy your product and after they satisfy with using it they will share with their friends. But this is one of the slowest way to parade the acknowledgement of your product and this has make the advertising business started to become the biggest element in the business world.
Marketing is study of customer's want. There are a few approaches to study the customer's want and one of them will be collecting opinion about a particular product or asking their point of view for an idea, a crazy one perhaps. After finish the work of collecting feedback, marketing expert will categorize them into a few groups such as age group, gender group or even race group. The final data will clearly shows the satisfaction or the level of agreeing an idea or using a product. With all the on hand result, you will be able to choose the best spot of doing your advertisement.
The cost of advertisement is not cheap at this age, and a deep consideration of choosing the spot to advertise should be considered properly. With all the data of the consumer collected from maybe the interview and such and such, a best decision could be made. If the analyses you do shows that the age group that agree and feeling happy with your product is the youth or teenagers, you will not advertise at a park where senior citizens gather and do their activities but you would advertise at a mall where managers are often hanging out at.
This approach didn't replace the telling and selling method but it is actually a better way to make your product reach out to as much customers as possible. It has been a long time where people still remain in an area of confusion between marketing and selling that they thinking two of them are familiar but there is actually a huge different between them. The higher your cost the lower your profit, vice versa. This is a basic knowledge that was easily understood by people even they do not have professional knowledge.
And the understanding of cost between marketing and selling is totally different. Salesman often say that cost determine price which is quite true but marketing always believe that consumer determine price, price determine cost. At this point of view, you would be able to see the totally different status both marketing and selling are standing. You will be questioning and finding faults between two of this statement whether which of them are true but both of them are right but Just standing in a different perspective.
If you want to make a fifty percent of profit based on your selling price, you will adjust your cost so that you can make the profit you had targeted. But marketing always believe that customer should come first because business exist for the profit and product exist for the customer. This is a fact that no one should try and object with. In the understanding of economy, demand equal to wants but marketing said that demand equal to wants and buying power.
None of them are wrong but the definition of demands from the marketing is quite precise. You should not claim your customer want your product if they cannot afford it. This is also why the demand for a Gucci bag or an Yves Saint Laurent belt is extremely low because not too much of individual old afford it. And that is why marketing study the customer and set a price which the target customer could afford and buy the product. This is what it mean by customer control the price.
But also because of the initial motive of business is making a profit, the organization should set an amount of cost and make sure the amount of producing the product is not exceeding. Using an example from the notable phone, Apple itself announced that the cost of producing an phone is around 700 Ringing Malaysia but the retailer price is 2399 Ringing Malaysia. The cost is around 25 percent based on the price. If Apple found that Malaysian could afford the phone only with 1899 Ringing Malaysia, Apple should find out the way to minimize their so that they could make the same amount of profit.
Indeed it is quite sophisticated for marketing but also the things and factor that should have be considered for marketing expert are a lot of them but it will bring about a better result. In a nutshell, marketing is a process where companies create value for customers and build strong relationships with their customer in order to capture value from customers in return. The relationships with the customer in sales is to get hem come back to you for buying things but for marketing it is meant for always knowing the taste of your customer so they will happy with your product.
People will not love your red color earphone all the time, they will look for maybe blue or yellow color because the greatest gift of human being is the freedom to choose and the purpose of running a business is keep and grow current number of customers so that you make profit. Sales is a process of getting people to buy your product but marketing is a process that you keep yourself always up to date to your customer's ant and you should always remember that the want of an individual is keeping changing all the time.