Marketing
This section is an
overview of the concepts and decisions covered under the term 'marketing'. We
will first develop a definition of marketing and explain each element of the
definition. Then we look at some of the reasons why people should study
marketing. We introduce the marketing concept and consider several issues
associated with implementing it. Next we define and discuss the major tasks
associated with marketing strategy: market opportunity analysis, target market
selection, marketing mix development, and management of marketing activities.
If you ask several
people what marketing is, they will respond with a variety of descriptions.'
Marketing encompasses many more activities than most people realise. Since it
is practised and studied for many different reasons, it has been, and continues
to be, defined in many ways, for academic, research, or applied business
purposes. According to the U.K. Chartered Institute of Marketing,
Marketing is
the management process responsible for identifying, anticipating and satisfying
consumers' requirements profitably.
A rather different definition has been developed by
the American Marketing Association (AMA):
Marketing is
the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy
individual and organisational goals.
These definitions are
mostly accepted by academics and marketing managers. They emphasise that
marketing focuses on planning and executing activities to satisfy customers'
demands. Whereas earlier definitions restricted marketing as a business
activity, this definition is broad enough to indicate that marketing can occur
in non-business organisations.
Although the above
definitions are acceptable, we believe that marketing should be defined still
more broadly. A definition of marketing should indicate that marketing consists
of activities performed by individuals and organisations. In addition, it
should acknowledge that marketing activities occur in a dynamic environment.
Thus we define marketing as follows:
Marketing consists
of activities that facilitate and expedite satisfying exchange relationships in
a dynamic environment through the creation, distribution, promotion, and
pricing of products (goods, services, and ideas).
In this definition, an
exchange is the provision or transfer of goods, services, and ideas in return
for something of value. Any product may be involved in a marketing exchange. We
assume only that individuals and organisations expect to gain a reward in
excess of the costs incurred. So that our definition may be fully understood,
we now examine each component more closely.
Marketing products
effectively requires many activities. Some are performed by producers; some are
accomplished by intermediaries, who buy products from producers or from other
intermediaries and resell them; and some are even performed by purchasers.
Marketing does not include all human and organisational activities, but only
those aimed at facilitating and expediting exchanges.
All organisations
perform marketing activities to facilitate exchanges. Businesses as well as
non-business organisations, such as colleges and universities, charitable
organisations, community theatres, and hospitals, perform marketing activities.
For example, colleges and universities and their students engage in exchanges.
To receive instruction, knowledge, entertainment, a degree, the use of
facilities, and sometimes room and board, students give up time, money, and
perhaps services in the form of labour; they may also give up opportunities to
do other things. Likewise, many religious institutions engage in marketing
activities to satisfy their "customers". Even the sole owner of and
worker in a small corner shop decides which products will sell, arranges
deliveries to the shop, prices and displays products, advertises, and serves
customers.
For an exchange to take
place, four conditions must exist. First, two or more individuals, groups, or
organisations must participate. Second, each party must possess something of
value that the other party desires. Third, each party must be willing to give
up its "something of value" to receive the "something of
value" held by the other party. The objective of a marketing exchange is
to receive something that is desired more than what is given up to get it, that
is, a reward in excess of costs. Fourth, the parties to the exchange must be
able to communicate with each other to make their something of value available
.
Figure
1
Figure 1 illustrates the process of exchange. The
arrows indicate that the parties communicate that each has something of value
available to exchange. Note, though, that an exchange may not necessarily take
place just because these four conditions exist. Nevertheless, even if there is
no exchange, marketing activities still have occurred. The something of value
held by the two parties are most often products and/or financial resources,
such as money or credit. When an exchange occurs, products are traded for other
products or for financial resources.
An exchange should be satisfying
to both the buyer and the seller. In fact, in a study of marketing
managers, 32 percent indicated that creating customer satisfaction was the most
important concept in a definition of marketing. Marketing activities, then,
should be orientated towards creating and maintaining satisfying exchange
relationships. To maintain an exchange relationship, the buyer must be
satisfied with the good, service, or idea obtained in the exchange; the seller
must be satisfied with the financial reward or something else of value received
in the exchange.
The marketing
environment consists of many changing forces: laws, regulations, political
activities, societal pressures, changing economic conditions, and technological
advances. Each of these dynamic forces has an impact on how effectively
marketing activities can facilitate and expedite exchanges. For example, the
development and acceptance of facsimile (fax) machines has given businesses
another vehicle through which to promote their products. Some office suppliers
and restaurants send advertisements about their goods and services to
businesses and individuals through their fax machines.
Marketing means more
than simply advertising or selling a product; it involves developing and
managing a product that will satisfy certain needs. it focuses on making the
product available at the right place, at the light time, and at a price that is
acceptable to customers. It also requires transmitting the kind of information
that will help customers determine whether the product will in fact be able to
satisfy their needs.
We already have used
the word product a number of times. For purposes of discussion, a product
is viewed a being a good, a service, or an idea. A good is a
physical entity one can touch. A compact disc player, a bar of soap, and a
kitten in a pet shop are examples of goods. A service is the application
of human and mechanical efforts to people or objects in order to provide
intangible benefits to customers. Services such as air travel, dry cleaning,
hairdressing, banking, medical care, and child care are just as real as goods,
but an individual cannot actually touch them. Ideas include concepts,
philosophies, images, and issues. For instance, a marriage counsellor gives
couples ideas and advice to help improve their relationships. Other marketers
of ideas include political parties, churches, and schools.
Conclusion :
Marketing is an activity that facilitate and
expedite satisfying exchange relationships in a dynamic environment through the
creation, distribution, promotion, and price of products (goods, services, and
ideas).
Sorce