What Is Marketing?
What Is Marketing?
What is marketing?
There are many different definitions of marketing. Consider some of the following alternative
definitions:
“The all-embracing function that links the business with customer needs and wants in order to
get the right product to the right place at the right time”
“The achievement of corporate goals through meeting and exceeding customer needs better than
the competition”
“The management process that identifies, anticipates and supplies customer requirements
efficiently and profitably”
Which definition is right? In short, they all are. They all try to embody the essence of marketing:
To help put things into context, you may find it helpful to often refer to the following diagram which
summarises the key elements of marketing and their relationships:
Accounting and
Finance
Economics (GCSE)
Economics (AS/A2)
EBusiness / E-
Commerce
English
History
ICT
Law
Marketing
People &
Organisations
Politics
Production &
Operations
Religious Studies
Sociology
Strategy
marketing concept and orientation
It is a fundamental idea of marketing that organisations survive and prosper through meeting the
needs and wants of customers. This important perspective is commonly known as the marketing
concept.
The marketing concept is about matching a company's capabilities with customer wants. This
matching process takes place in what is called the marketing environment.
Businesses do not undertake marketing activities alone. They face threats from competitors, and
changes in the political, economic, social and technological environment. All these factors have to be
taken into account as a business tries to match its capabilities with the needs and wants of its target
customers.
An organisation that adopts the marketing concept accepts the needs of potential customers as the
basis for its operations. Success is dependent on satisfying customer needs.
People have basic needs for food, shelter, affection, esteem and self-development. Many of these
needs are created from human biology and the nature of social relationships. Customer needs are,
therefore, very broad.
Whilst customer needs are broad, customer wants are usually quite narrow.
A want is a desire for a specific product or service to satisfy the underlying need.
Consumer wants are shaped by social and cultural forces, the media and marketing activities of
businesses.
Consumer demand is a want for a specific product supported by an ability and willingness to pay for
it.
For example, many consumers around the globe want a Mercedes. But relatively few are able and
willing to buy one.
Businesses therefore have not only to make products that consumers want, but they also have to make
them affordable to a sufficient number to create profitable demand.
Businesses do not create customer needs or the social status in which customer needs are influenced. It
is not McDonalds that makes people hungry. However, businesses do try to influence demand by
designing products and services that are
• Attractive
• Work well
• Are affordable
• Are available
Businesses also try to communicate the relevant features of their products through advertising and
other marketing promotion.
A marketing orientated business is one that which has adopted the marketing concept
The process of marketing management is about attracting and retaining customers by offering them
desirable products that satisfy needs and meet wants.
Marketing management in a customer-orientated business consists of five key tasks summarised in the
table below:
Marketing Task Commentary
Identify target markets Management have to identify those customers with whom they want to
trade. The choice of target markets will be influenced by the wealth
consumers hold and the business' ability to serve them
Market research Management have to collect information on the current and potential
needs of customers in the markets they have chosen to supply. Areas to
research include how customers buy (which marketing channels are used)
and what competitors are offering
Product development Businesses must develop products and services that meet needs and wants
sufficiently to attract target customers to wish and buy
Marketing mix Having identified the target markets and developed relevant products,
management must then determine the price, promotion and distribution
for the product. The marketing mix is tailored to offer value to customers,
to communicate the offer and to make it accessible and convenient
Market monitoring The objective in marketing is to first attract customers - and then (most
importantly) retain them by building a relationship. In order to do this
effectively, they need feedback on customer satisfaction. They also need
to feed this back into product design and marketing mix as customer needs
and the competitive environment changes
The Evolution of Marketing
Trade has existed since when man was capable to produce a surplus. The
This means exchanging goods with one another. During the 1800 the world was facing industrial
revolution, this means that people where shifting from agriculture to industrial products this brought
about opening of different factories. People increased their income and there was a corresponding
increase in demand for products. In other words, the producer had an advantage over the consumer in
those days since whatever was produced was being demanded.
Production
Product
Sales
Marketing
Social Marketing
The people working in production at that time of industrial revolution were generally working by the
technique known as division of labour that bring about job specialisation. This concept resulted in higher
level of skills also in mass production. This concept is one of the oldest philosophies that guide sellers.
This concept is successful when faced with two types of situations. 1. When demand for the product
exceeds the supply. 2.
bring it down. This concept suffers from marketing myopia which means a narrow minded approach to
what the customer really wants.
model “T” so that its cost would be reduced and more people would b
uy it. He joked about offering people a car of any colour as long as it was black.
The production concept holds that consumers will favour products that offer quality, performance and
innovative features and that an organisation should devote their energy to make continuous
improvements. The mentality of such concept is good ONLY IF this concept is used in the best way.
Unfortunately buyers may be looking for a better product rather than a product full of nice features. In
fact this concept may also lead to marketing myopia. If for example a consumer is going to buy a mouse
trap, such customers may be looking for a better solution to a mouse problem rather than a better
mouse trap.
possible product
-This is what such concept believes but unfortunately this is not always the case.
Politicians are a good example of people who are consciously selling themselves to the electorates.
Jehovah selling their religion. Comparison between the Sales and Marketing Concept
Starting
Point
Focus
Means
Ends
Factory
Existing
Products
Agressive
Personal
Selling +
Promotion
Profits
Trough
Sales
Volumes
Market
Customer
Needs
Integrated
Marketing
Comm..
Profit
Trough
Customer
Satis
faction
Marketing
Sales
Short term
Prospective
Long
term
Prospective
To change from Sales to marketing oriented company, the organisation will have to become long run
oriented and preoccupied with planning the right products, channels, level of service and marketing
strategy to meet
customer’s
modern 20th century phenomenal. The concept started during the 1950’s
and has since that time been adopted as a central business philosophy by many firms throughout the
world, under the marketing concept the customer takes the central place and for a firm to survive and
grow in the long run it must work to identify and satisfy customers needs. Example L.L.Bean. 1. For
example L.L.Bean a successful catalogue retailer was founded on the marketing concepts. L.L.Bean
dedicate itself to deliver the promise spelled out in 1916 that is any customer whom is unsatisfied with
the product from L.L.Bean may return it back and have it exchanged even after 100 years. 2. When
Apple
introduced
high price, this price was lowered in quite a small period of time and thus refunded all the price
difference to their early adopters 3. Burger King some years ago, was considered very different and crazy
when it launched
After all such a promise was longed for customers but unheard of in the mass production industry. As it
turned out B.K. campaign was an early sign of a big change in how businesses behave towards
consumers.
Marketing Concept...
A structured analysis process which leads to a specific implementation plan, respective business plan.
- Analysis of internal and external factors influencing the company - Development of the Marketing
concept - Implementation plan of the Marketing concept as whole or problem related