There are a lot of marketing definitions available but the right
ones are focused upon the key to marketing success i.e. customers.
Following are some of the marketing definitions available.
American Marketing Association defines marketing as:
Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society at large. (Approved October 2007)
The Chartered Institute of Marketing (CIM) says:
The management
process responsible for identifying , anticipating and satisfying customer
requirements profitability.
Philip Kotler defines marketing as:
Marketing is the social
process by which individuals and groups obtain what they need and want through
creating and exchanging products and value with others.
Palmer’s marketing definition is as:
Marketing is essentially
about marshalling the resources of an organization so that they meet the
changing needs of the customer on whom the organization depends.
Dennis Adcock defines marketing as
The right product, in the
right place, at the right time, at the right price.
Marketing is the analysis, planning, implementation, and control
of carefully formulated programs designed to
bring about voluntary exchanges of values with target markets for the
purpose of achieving organizational objectives. It relies heavily on designing the
organization’s offering in terms of the target markets’ needs and desires, and
on using effective pricing, communication, and distribution to inform,
motivate, and service the markets. (Philip Kotler)
Features of Marketing
a) Managerial Process involving analysis, planning and control. (The view of marketing as social process is not of interest to us as managers)
b) Carefully formulated programs and not just random actions. (A charity organization sending volunteers out to collect money – this is not marketing, it is selling)
c) Voluntary exchange of values; no use of force or coercion. Offer benefits. (A museum, seeking members, tries to design a set of benefits that are appealing to potential members.)
d) Selection of Target Markets rather than a quixotic attempt to win every market and be all things to all men.
e) Purpose of marketing is to achieve Organizational Objectives. For commercial sector it is profit. For non-commercial sector, the objective is different and must be specified clearly. (City Health Department wishes to reduce diseases and enhance health level. National Safety Council wants to bring down the death and accident rate in the nation)
The Marketing Concepts
The
marketing concept is the philosophy that urges organization to focus on their customers’
needs. Analyzing their needs and making such decisions that satisfy those needs
in a better way than competitors.
To
have a better understanding of marketing concept, it’s worthwhile to review the
other philosophies that once were dominated and are still being practiced by
some of the firms.
The Production Concept (Industrial revolution – 1920′s)
The
basic idea behind production concept was: The firms will produce what they can
produce efficiently. This will ensure enough supply of the products at low-cost
and demand will be created by itself.
Production
concept prevailed into late 1920s because most of the products being produced
were the basic necessities and there was a huge unfulfilled demand for them.
The Sales Concept (1930s)
By
early 1930s, competition had increased in production and on the other hand
there was less unfulfilled demand. So, all the firms turned towards sales
concept. Now the companies were not only producing the product but also sell it
to customers through personal selling and advertisement.
There
was no concept of need identification, firms were just interested in beating
competition by selling more but neglecting customers’ satisfaction. We can call
it hard selling.
The Marketing Concept
After
World War II, there was a variety of products available in the market and
customers having discretionary income could make choices and purchase what
really fulfill their needs. In that situation, firms were forced to think about
what their customers need , when they need it and how to keep them satisfied
which is the Marketing Concept.
The
main focus of all the firms turned from hard selling towards Identification of
customer needs, making decision to fulfill those need and maintaining long-term
relation with customers by satisfying their changing needs. The Marketing
concept resulted in a separate marketing department in organization and today
we can see many organization have structured themselves as marketing
organization where every employee is contributing towards customer satisfaction
whether or not he’s a marketing person.
Philip Kotler gave five core concepts of Marketing which are as follows:
1.NEED/ WANT/ DEMAND:
Need: It is
state of deprivation of some basic satisfaction. eg.- food, clothing,
safety, shelter.
Want: Desire
for specific satisfier of need. eg.- We need food – want Shai Paneer.
Demand: Want
for a specific product backed up by ability and willingness to
buy.
eg.- Need – clothing. Want – dress (from ZARA )……but able to buy only local brand garment. Therefore, demand is for local brand garment.
Marketers cannot create needs. Needs preexists. Marketers can
influence wants. This is done in combination with societal influencers.
2. PRODUCTS and SERVICES
Product is anything that can satisfy need/ want. It can be physical goods, service or an idea.
3. VALUE, SATISFACTION and QUALITY:
§ Decision
for purchase made based on value/ cost satisfaction delivered by product/offering. Product
fulfills/ satisfies Need/ Want. Value is
products capacity to satisfy needs/ wants as per consumer’s perception or
estimation. Each
product would have a cost/ price elements attached to it.
4. EXCHANGE, TRANSACTION and RELATIONSHIP:
EXCHANGE: – The
act/ process of obtaining a desired product from someone by offering something
in return. For exchange potential to exist, the following conditions must be
fulfilled.
1.
There must be at least two parties.
2.
Each party has something of value for other party.
3.
Each party is capable of communication & delivery
4.
Each party is free to accept/ reject the exchange offer.
5.
Each party believes it is appropriate to deal with the other party.
TRANSACTION: – Event that happens at the end of an exchange. Exchange is a
process towards an agreement. When agreement is reached, we say a transaction
has taken place.
a) Barter transaction.
b) Monetary Transaction.
1.
At least two things of value.
2.
Condition agreed upon.
3.
Time of agreement.
4.
Place of agreement.
5.
May have legal system for compliance.
Proof of transaction is BILL/ INVOICE.
RELATIONSHIP
Relationship marketing:- It’s a pattern of building long term
satisfying relationship with customers, suppliers, distributors in order to
retain their long term performances and business.
5. MARKET:
A market consists of all potential customers sharing particular
need/ want who may be willing and able to engage in exchange to satisfy need/
want.
Types of Markets:
1.
Resource Market,
2.
Manufacturing Market,
3.
Intermediary Market,
4.
Consumer Market,
5.
Government market.
No comments:
Post a Comment