What is Marketing ?
Marketing is a comprehensive term and it includes all resources and a set of activities necessary to direct and facilitate the flow of goods and services from producer to consumer in the process of distribution.
“Marketing is the process of determining consumer demand for a product or service, motivating its sales and distributing it into ultimate consumption at a profit”.
OBJECTIVES OF MARKETING:
The following are the most significant objectives of marketing and are:-
1) Creation of Demand
The objective of marketing is to create demand through various means. A conscious attempt is made to find out the preferences and tastes of the consumers.Goods and services are produced to satisfy the needs of the customers. Demand is also created by informing the customers the utility of various goods and services.
2) Customer Satisfaction
The marketing manager must study the demands of customers before offeringthem any goods or services. Selling the goods or services is not that important as the satisfaction of the customers’ needs. Modern marketing is customer-oriented.It begins and ends with the customer.
3) Market Share
Every business aims at increasing its market share, i.e. the ratio of its sales to the total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase their market share. For this, they have adopted innovative advertising, innovative packaging, sales promotion activities etc.
4) Generation of Profits
The marketing department is the only department which generates revenue for the business. Sufficient profits must be earned as a result of sale of want satisfying products. If the firm is not earning profits, it will not be able to survive in the market. Moreover, profits are also needed for the growth and diversification of the firm.
5) Creation of Goodwill and Public Image
To build up the public image of a firm over a period is another objective of marketing. The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers.
6) Apply effective and intelligent modern marketing policies
Changing growth rate, rapid technological change and new aggressive rivals all made every marketing firm to adopt and respond to change for survival and prosperity. So it is necessary for the firms to scrutinize its expenditure and make maximum profits by adopting themselves to viable and matching methodologies, techniques and practices. For example, Time Management, Just-in-time etc.
Marketing Concepts or Orientation
Marketing concept or orientation is “an integration of marketing activities directed towards customer satisfaction”.
1) Production Orientation
This philosophy states that if the product is really good and the price is reasonable, there is no need for special marketing efforts.
- Anything that can be produced can be sold.
- The most important task of management is to keep the cost of production down.
- A firm should produce only certain basic products.
Good Product = Good Sale
2) Sales Orientation
The essence of this philosophy is “Goods are not bought but sold.” That means mere making available the best product is not enough; marketing becomes fruitful only when they get into aggressive salesmanship. Effective advertisement, sales-promotion and public relations etc are top most important for creating demand.
- Producing the best possible product.
- Finding the buyer for the product.
- The management’s main task is to convince the buyers through high pressure tactics, if necessary.
Good Product = Promotion = Sale
3) Customer Orientation
This philosophy study and understand the needs, wants, desires and values of
potential consumers and produce the goods in the light of these findings so that
consumer specifications are met totally. Here, the staring point is the customer
rather than the product and it also emphasis the role of marketing research.
- The firm should produce only that product as desired by the consumer.
- The management is to integrate all its activities in order to develop programmes to satisfy the consumer wants.
- The management is to be guided by ‘long-range profit goals’ rather than ‘quick sales.’
Customer = Marketing Research = Product = Promotion = Sale
4) Social Orientation
This philosophy cares for not only consumer satisfaction but for consumer welfare or social welfare. Such social welfare speaks of pollution-free environment and quality of human life. For example, an automobile not only fuel efficient but less pollution one.
- The firm is to produce only those products as are wanted by the consumers.
- The firm is to be guided by long-term profit goals rather than quick sales.
- The firm should discharge its social responsibilities.
- The management is to integrate the firm’s resources and activities to develop programme to meet these individual consumer and social needs.
Customer = Marketing Research = R & D = Product = Promotion = Sale
Function Of Marketing:
A.FUNCTIONS OF EXCHANGE
1. BUYING
Buying is one of the functions of exchange that refers to all such activities in the assembling of goods, under a single ownership and control. This function involves the following:-
a) Planning:
The buyers must plan in order to determine their needs. Business buyers must study their own markets to know the quantity and quality of goods that are required by final users.
b) Contractual:
This involves finding out the sources of supply, keeping in touch with them, to get the goods quickly, reasonably, sufficiently and regularly.
c) Assembling:
This is one of the important functions where goods produced at different places must be assembled in order to serve promptly the needs of manufacturers, wholesalers, retailers and consumers.
d) Negotiation:
The terms and conditions of purchase are negotiated with the seller. After this final agreement are made & the transfer of titles take place.
B.FUNCTIONS OF PHYSICAL SUPPLY
1) Transportation:
Transportation refers to the physical movement of goods from places of production to places of consumption. The transport function of marketing involves the selection of particular mode of transport, depending upon the speed and cost.
2) Storage:
Storage refers to the holding and preserving of goods between the time of their production and the time of their sale. It facilitates the steady and continuous flow of commodities to the market throughout the year and it also helps to adjust the supply of goods to the demand.
C.FACILITATING FUNCTIONS
1) Financing:
The service of providing the credit and money needed to meet the financial requirements of the various agencies engaged in the various marketing activities. Even though finance smoothens the process of exchange and acts as a lubricating oil to the wheel of marketing.
2) Risk Bearing:
Marketing involves a number of risks. The risk may be loss of goods due to fire, flood, cyclone, earthquake, theft etc. Some of this risk can be avoided through proper planning like insurance and hedging.
3) Market Information:
The function of marketing information refers to the collection, analysis and interpretation and communication of marketing information to the concerned people for efficient marketing
4) Standardization:
Standardization is a measure of designation for quantity. It consists of list of specifications based on size, colour, appearance, shape, amount of moisture etc. In other words, it is refers to the act of grading.
5) Pricing:
Pricing is the process of determining the value of a product or service in terms of money before it is offered to the market for sale.
6) Branding:
Branding is the process of identifying the name of a producer with his product by affixing to the product the trade name represented by words or designs. For example, HUL branded Vanaspathi as DALDA.
7) Packaging:
Packaging is the use of containers and wrapping materials plus decoration and labeling to protect the product, to help and promote its sales, and to make it convenient for the customers to use the product. In short, it is the art of designing and producing the package for a product.
8) Salesmanship:
Salesmanship is the process of understanding, appreciating and influencing customers to buy a commodity or service for mutual benefit.
9) Advertising:
Advertising means informing the public about the existence of a particular product or service, stimulating their desire for the product or service and inducing them to buy the same.
MARKETING ENVIRONMENT
The term Marketing Environment refers to the forces and factors that affect theorganization ability to built and maintain good relationship with its customers.
There are two main significant marketing environment:
1.Internal Marketing Environment
2.External Marketing Environment
1.Internal Marketing Environmentⅰ
The internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behaviour.
In other words, the internal environments are controllable factors because the company has control over these factors.
2.External Marketing Environment
The external marketing environment includes all factors that do not fall within your organisationa's control, including technological advancement, regulatory changes, social, economics and competitive forces.
There are two types of external marketing environment
ⅰ.Micro-Environment:Micro environment is also called as a task and operating environment where it
studies the small part or individual unit of the business. It includes Competitos, Suppliers, Vendors etc.
ⅰⅰ.Macro-Environment:Macro environment is made up of all factors beyond the control of your organisation.An easy way to remember these factor by using the PESTLE form:
P:Political factor
E:Economic factor
S:Social & Demographic factor
T:Technological advancement factor
L:Legal & regulatory factor
E:Environmental factor
MARKETING MIX
Marketing mix means blending or combining of the four elements of marketing, eg., the product, the price, promotion and place into a marketing plan by a business firm to influence the desired buyers’ response by satisfying their needs and wants in the most effective and economical manner.
• Product: A product is a bundle of utilities consisting of various product features and accompanying services.
• Price: Price is the amount of money paid or payable to acquire a product and its accompanying services.
• Promotion: Promotion compasses all the tools in the marketing mix whose major role is persuasive communications.
• Place: Place refers to the arrangements for the smooth flow of goods and services from the producers to the consumers. It covers channels of distribution.
