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What is marketing? Most mistakenly identify marketing with sales and incentives. However, many are surprised to learn that the most important element of marketing is not marketing. Sales are just the tip of the marketing iceberg. Sales are just one of its many functions, and often not the most significant. If a market activist has worked well on such areas of marketing as identifying consumer needs, developing suitable products and establishing an appropriate price for them, establishing a distribution system and effectively stimulating them, such products will most likely sell easily.
Fundamental concepts of marketing
When you pay to write essay on marketing, the section about fundamental concepts of marketing should be included.
The needs of people are diverse and complex. They include the basic physiological needs in clothing, food, safety and warm, social needs in spiritual intimacy, influence and attachment, as well as personal needs in self-expression and knowledge.
Needs are expressed in objects capable of satisfying the need for those in a way that is inherent in the cultural way of the given society. With the progressive development of society, the needs of its members are also growing. Producers for their part are taking targeted actions to stimulate the desire to own goods. They are trying to form a link between what they are releasing and the needs of people.
The demands of people are almost unlimited, but there are limited resources to satisfy them. So, one will select those goods that will bring him the greatest pleasure within the limits of his financial capabilities. A person chooses a product, the set of properties, which provides him with the pleasure for a given price, taking into account his specific needs and resources.
Needs and demands suggest the existence of goods to meet them. Goods are all that can satisfy a need or demand and are provided on the market in order to attract attention, purchase, use or consumption. The more fully the product corresponds to the wishes of the consumer, the more success the producer will achieve. The concept of goods is not limited to physical objects. The goods can be called everything that can provide a service, i.e. satisfy the need. In addition to products and services, it can be individuals, places, organizations, activities, and ideas.
- There must be at least two sides
- Each party should have something that could be of value to the other party
- Each side should be able to communicate and deliver its goods
- Each party should be completely free in accepting or rejecting the offer of the other party
- Each party should be sure of the expediency or desirability of dealing with the other party
These five conditions create only a potential exchange opportunity. But whether it will take place or not depends on an agreement between the parties and its terms.
- At least two value-significant objects
- Consistent conditions for its implementation
- Concorded time of committing
- Coordinated venue
The concept of deal directly brings us to the notion of market. Market is a set of existing and potential customers of the goods. A market can be formed for a certain product, service or other object of value significance. For example, the labor market consists of people who want to offer their labor in exchange for wages or goods.
The concept of market leads us, finally, to the final concept – marketing. Marketing is a human activity, one way or another related to the market. Marketing is work with the market for the sake of exchanges, the purpose of which is to meet human needs and demands. The basis of marketing activities are such activities as product development, research, communication, distribution organization, pricing, and deployment of service.
- Reliable and timely information about the market, the structure and dynamics of specific demand, tastes and preferences of customers, that is, information on the external conditions of the company
- Creation of such goods, a set of goods (assortment), which more fully meets the requirements of the market than the goods of competitors
- The necessary impact on the consumer, demand, and the market, ensuring the maximum possible control of the scope of implementation
Basic principles of marketing
- To produce what the consumer wants.
- To enter the market not with the supply of goods and services, but with means for solving consumer problems.
- To organize the production of goods after research needs and demand.
- To concentrate efforts on achievement of the final result of the company’s production and export activities.
- To use the program-target method and integrated approach to achieve the set goals.
- To apply tactics and strategy of active adaptation of production of goods to the requirements of the market with simultaneous targeted influence on it in order to reach all segments of the chain of marketing in the chain of goods promotion to the consumer.
- To orient the enterprise’s activity not on the short-term result, but on the long-term perspective of effective communications based on the implementation of strategic planning and forecasting the behavior of goods on the market.
Functions and subfunctions of marketing
- Marketing research
- Planning of policy in the field of production and assortment of products
- Promotion of goods
- Commodity circulation and marketing
- Marketing management
Types of marketing
- Marketing of services.
- Marketing of an organization – the activities undertaken to create and maintain a favorable image of the organization.
- Individual marketing – activities aimed at creating, maintaining or changing the behavior of the public towards specific individuals. For example, politicians use personal marketing to increase their popularity.
- Marketing of a place – the activity undertaken with the purpose, for example, to attract tourists to places of rest, building of inhabited quarters.
- Marketing of ideas – activities aimed at vaccination, reduction of consumption of tobacco products, alcoholic beverages, etc.
In terms of phased internationalization, there is domestic and international marketing. Domestic marketing includes local marketing, when a firm comes out with a product to the local market. National marketing involves the exit of the firm beyond the region where it is located, and activities throughout the country.
International marketing starts with simple export activities, then includes the creation of subsidiaries, branches, branches in foreign countries, and concludes with the creation of international corporations with branches scattered around the world.
The highest point of development of international marketing is global marketing, which involves the free movement of goods, labor, and capital around the world.
- Financial marketing
- Innovative marketing (in the field of development and introduction of innovations, achievements of scientific and technical progress, know-how)
- Industrial (in the field of production and meeting the demand for industrial products)
- Marketing in the service sector
The type of marketing is also determined by the state of demand. From this point of view, the following types of demand stand out: negative, hidden, falling, irregular, full, excessive, irrational, and lack of demand.
Analytic function of marketing
When you pay to write essay on marketing, describe the analytical function of marketing.
The whole economic system of society functions on the basis of understanding what the market wants and how it reacts to the emergence of a particular product. Thus, market research is the first thing a marketing specialist should do. Market research is conducted by such criteria as its geographical location, capacity, specification, number of competitors, the state of supply-demand for a product that the enterprise intends to produce (or even produces) and offer for sale.
- First, the structure of consumers by the number if these are individual buyers and by the size if these are firms, by age and sex, educational qualifications, social status.
- Secondly, consumer requests – the volume of purchases, the response to the emergence of new products and the change in prices.
Then it is necessary to study the commodity structure in order to determine the existing assortment and to reveal whether there is a product similar to what the enterprise intends to offer, as well as what are the standards, norms, and quality requirements in the market. At the same time, competing companies are being studied: product supply and demand for their products, a sales system, a forecast for the future in terms of product competition.
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