The need of every business is to make revenue. There are only 3 sources of revenue for any business.
To achieve any of the above sources of revenue. People should firstly know about your product. That is the essence of Marketing for any business.
Without marketing business is like winking at a girl in the dark, you know what you are doing but she has no idea. Marketing is a study of the market, an understanding of how to reach your customer with your product. A world-class product can never unleash its true potential to make maximum revenue without genuine marketing.
Take Tata Nano’s case – its an engineering marvel, for which Tata applied for a staggering 34 patents. They reverse engineered this car to a never before possible level of cost-effectiveness. As awesome as that sounds from an engineering perspective, that’s the opposite of what a typical customer wanted in that era of Indian automobiles. They projected the car to be something dirt cheap and to an average Indian, a car is a status symbol and “cheapest of all” is not you have been dreaming of possessing. Needless to say, this had a telling impact on the sales which flopped.
Marketing without knowing your customer base is like shooting an arrow in the dark, it may hit bull’s eye or it may totally miss the target. The role of STP (Segmentation-Targeting-Positioning) comes into play to position your brand for a targeted segment of customers. Finding out what drives decision making for consumers when they buy a product helps you segment the market. If you try to make a product for each customer segment, you may fail miserably. There is warm tea, there is cold tea but there is no lukewarm tea. You find out what makes your product favorable for a particular customer segment and target that customer segment and position your brand accordingly. If you sell high-end lingerie and you market your brand in slums you have done yourself no good.