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THIS DEFINITION HAS THE FOLLOWING IMPLICATIONS:
1. Marketing
starts with a product idea and does not end until the customers are
completely satisfied. Relationship marketing as opposed to transactional marketing
leads to loyalty and repeat purchases.
2. Customers
must be satisfied for the company to retain them and make repeat business.
3. Marketing
is not only limited to business and non-profit oriented organizations also
practice marketing e.g. churches, politicians, NGOs etc.
Marketing is a process by
which:
1. one
identifies the needs and wants of the people – PROCESS
2. one
determines and creates a product/service to meet the needs and wants – PRODUCT
3. one
determines a way of taking the product/service to the market place – PLACE
4. one
determines the way of communicating the product to the market place – PROMOTIONS
5. one determines the value for the product - PRICE.
6. one determines the people, who have needs/ wants.
PEOPLE and then creating a transaction for exchanging the product for
a value, and thus creating a satisfaction to the buyer's needs/wants.
7. one
creates the right atmosphere - PHYSICAL EVIDENCE
EVOLUTION OF MARKETING
The word market is derived from a Latin word “marcatus”, meaning merchandise, ware, traffic,
trade or place where business is conducted.
- Exchange is the origin of marketing
activity. It started from early civilization. When people needed to
exchange goods, they naturally begun a marketing effort.
- The first signs that man made to
communicate with others gave birth to the idea of marketing
>
Adam and Eve
>
Arthashastra
- The evolution of marketing has made it
a structured discipline with Phillip Kotler coming in the 1970s.
- The confusion between marketing and selling
still exists even today among students and practitioners.
- Historic Progress of Marketing:
>
Barter system
>
Cash system
>
Golden age of
advertising
>
eMarketing (internet)
COMMON CONCEPTS/WORDS USED IN
MARKETING
1. Needs; a need is a state of felt deprivation of some basic requirement
e. g. people need food, clothing, shelter, and safety for survival.
2. Wants; these are desires for specific satisfiers of the needs e.g. a
person needs food but wants fish and chips. He needs shelter but wants
a mansion.
3. Demands; are wants for specific products that are backed up by the ability
and willingness to buy them. A want becomes a demand when it is backed by
purchasing power.
4. Product; It is anything that can be offered to someone to satisfy a need
or want at a profit.
5. Utility; this is the consumer’s estimate of a product’s
overall capacity to satisfy a need.
6. Value is a ratio of the product’s utility and price i.e.
value = utility
7. Exchange; is the act of obtaining a desired product from someone by
offering something in return. Four conditions must prevail for an exchange to
take place:
a. There should be at least two parties,
b. Each party must have something of value to deliver
to the other,
c. Each party must be able to communicate and deliver,
d. Each party must be free to accept or reject the
other’s offer.
e. Each party must feel it is appropriate or desirable
to deal with the other party.
An exchange is a process and not an event. Two parties are said
to be engaged in an exchange if they are negotiating and moving towards
agreement. If an agreement is reached, then a transaction takes place.
8. A transaction; is a trade of values between two parties.
9. Transfer; is an act of giving something of value to someone without getting
anything tangible in return e.g. a gift.
10. A market; it consists of all the potential customers sharing a particular
need or want who might be willing and able to engage in exchange to
satisfy the need.
11. A brand; is an offering from a known source/ company. It may be a name,
a sign, symbol, distinctive colouring or lettering
that distinguishes one company’s products from others.
COMPANY ORIENTATIONS
TOWARDS THE MARKET PLACE
(MARKETING CONCEPTS)
The following are the ones that make the marketing concept:-
1.
The production concept – more goods
produced more profit will be made
2.
The product concept – consumer will
favor products with quality, performers, features etc
3.
The selling concept – product must be
advertised extensively for buyer to buy
4.
The marketing concept – success lies in
the company’s ability to deliver & communicate
5.
The customer concept - concerned with
customer needs
6.
The societal marketing concept - concerned
with society &customers
Note: in same cases societal and
customer may be mean the same thing.
THE DIFFERENCE BETWEEN SELLING AND MARKETING
The difference Between Selling and Marketing
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SELLING
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MARKETING
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Emphasis is placed on the product.
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Emphasis is on the consumer’s needs.
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Company first makes the product then decides on how to sell
it.
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Company first determines customer needs then decides how to
make the product to satisfy the needs
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Management is sales volume oriented.
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Management is profit oriented.
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Planning is short term oriented, in terms of current markets
and products. Focus is on the needs of the seller.
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Planning is long term oriented in terms of new products,
markets and future growth.
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Company “bends consumer demand to meet company’s supply”. High
pressure selling to sell goods already produced. Caveat emptor’ (let the
buyer beware). Profits are through sales volume.
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Company “bends its supply to meet consumer’s demands. Product
planning to match products with demand. Caveat vendor (let the seller
beware). Profits are through customer satisfaction
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