Marketing Mix & Competition
If the end result of market economics is to allow inflation, implying that Supply will never catch up with Demand, then the very concept of Market Economics stands defeated. Furthermore, all product/industry life cycles (PLC/ILC) have a “Decline” status that is common in all PLC models….further intensifying the negativity of any “as is today” market economic’s for any given product or service.
The objective of market economics here is to at least achieve full supply to those products/services that are categorized as “natural needs”. In my opinion, the following are needs: hygienic food, edible water, clothes, education, shelter, judiciary, health, transport & a sustainable clean environment. (Read: Needs, Wants & Desires. Rich & Poor)
No Global market for any product or service till date has even been close to achieving “equilibrium”. What I mean is that there is no market for any product or service that has been fully supplied. A grim situation but a real situation. Let us analyze the realities mainly in the basic theory of marketing:-
We have heard of the 4 P’s of marketing …now up to the 7 Ps of the marketing mix. Just to refresh our memories: in order, the now 7 Ps are
1) Product 2) Price 3) Place 4) Promotion 5) People 6) Process 7) Physical Evidence
Marketing Gurus overlooked the most important and No. 1 P…: ”P” for Providing:- “Providing” the producer and consumer, the monies, means and ends to produce and/or acquire that product/service marketed, that too, in such a manner, that the means are provided to produce and consume one or more particular Manufacturer’s or Marketer’s product/service only.
This exclusion of the No 1 “P” from the 4 or 7 “P”s really has hurt the cause of Market Economics, more than any other unknown in marketing theory.
My article Planned & Organized Deficit Spending (PODS) addresses the requirements of providing money as a given in the marketing mix & in a market economy. By looking into the various product/service life cycles along with their respective Industry Life cycles we find that most models are common…in that there is an introductory stage, growth, maturity, and finally, a decline stage. I would briefly like to explain these stages and rename the last stage.
Before Introductory Stage: There is the discovery stage of a pre-identified product/service that can be commercialized and is demanded and is taken up to be supplied by the entrepreneurs/governments of an economy to its individuals/entities. A need or requirement is identified or invented. Thereafter, there is the mass production engineering stage where Demand Side Monitors take over to assess & report the quantities required from the Supply Side Monitors (a refinement of EDSOs as per my article dated 24th March 2020 on PODS). Manufacturing Capacity Growth up to Full Supply of the consumers in a market should be the objective, and explained here with different Suppliers of the same product or service jostling each other to achieve Full Supply, whereon, they, along the way, achieve Maturity as Reliable Suppliers of the product or service across all price bands & quality benchmarks. The Decline stage of the pre-identified product or service is replaced by Supply of The New or Evolved Model Stage of such product/service. Thereafter, the Replacement market for such product/service; and also New Uses, and Realignment of such product/service to prevailing market conditions/environments of such product/service stages take over. In a few cases, there is a decline stage till the product or service is no longer required also.
I also want to propagate the concept of “PURR”, the 9th “P” or, Product Usage Responsibility Regulations which must be enforced on manufacturers: especially so, on manufacturers of dangerous goods and services. Theoretically, if there was no RDX or similar materials, there would have been no suicide bomber. Now that RDX is there, then the manufacturer of RDX must be held responsible for RDX getting into the wrong hands. This is an example of “PURR”.
Lastly, I would like to mention a few words on: What is Competition? Competition is a very misunderstood and misused word. A lot of negativity arises because of misinterpreting this word. This does not have to be the case. In my opinion, competition is only there:-
For example, consider a hypothetical scenario. Let us assume that everyone in the world already owns a TV. This can be considered TV market saturation or full supply. Until this point is reached, manufacturers can focus their marketing efforts on those consumers who do not use TVs. Once market saturation has been reached, manufacturers then focus on releasing new models, persuading consumers to buy more than one TV for their homes, or upgrade their devices.
