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”

“Marketing may be defined as a set of human activities directed at facilitating and

consummating exchanges”

Which definition is right? In short, they all are. They all try to embody the essence of marketing:

• Marketing is about meeting the needs and wants of customers;

• Marketing is a business-wide function – it is not something that operates alone from other business
activities;
• Marketing is about understanding customers and finding ways to provide products or services which
customers demand

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.

What are customer needs and wants?

A need is a basic requirement that an individual wishes to satisfy.

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.

Consider this example:

Consumers need to eat when they are hungry.

What they want to eat and in what kind of environment will vary enormously. For some, eating at
McDonalds satisfies the need to meet hunger. For others a microwaved ready-meal meets the need.
Some consumers are never satisfied unless their food comes served with a bottle of fine Chardonnay.

Consumer wants are shaped by social and cultural forces, the media and marketing activities of
businesses.

This leads onto another important concept - that of customer demand:

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.

Which leads us finally to an important summary point.

A marketing orientated business is one that which has adopted the marketing concept

marketing management in a customer-orientated business

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
Identify target markets
Market research
Product development
Commentary
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
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
Businesses must develop products and services that meet needs and wants
sufficiently to attract target customers to wish and buy

Marketing mix
Market monitoring
The Evolution of Marketing
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
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

Trade has existed since when man was capable to produce a surplus. The

first method of this kind of trade is called the “barter system”.

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.

The 5 Business Concepts or Philosophies

Production

Product

Sales

Marketing


Social Marketing

The Production Concept

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.

When product’s cost too high and improved productivity is needed to

bring it down. This concept suffers from marketing myopia which means a narrow minded approach to
what the customer really wants.

Example: Henry Ford’s

philosophy was to make perfect the production of

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 Product Concept

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.

“Make the best

possible product

and people will buy it”

-This is what such concept believes but unfortunately this is not always the case.

The Sales Concept

In the world of economic recession of the early 20th century, we experienced unemployment and a fall
in demand for goods and services. This situation resulted in excess supply and business people realised
that it was not enough to simply produce goods efficiently but for profits to be made, these goods had
to be sold. The sales concept stated that effective demand could be created by the use of sales
techniques with the help of the sales department, the sales person and the sales manager becoming the
most important people in the organisation hoping to achieve profitability.

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

long run needs.

The Marketing Concept

One can say that the Marketing concept emerged due to the short coming of the other 3 business
philosophies in fact; the marketing concept is a

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

the “iPhone”, it was launched at a very

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

its now famous campaign “Have it you way”

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

The Societal Marketing Concept

The Societal Marketing Concept (SMC) holds that the organization should determine the needs, wants
and interests of the target markets. It should deliver the desired satisfactions more effectively and
efficiently that competitors in a way that maintains or improves the customers of societal well being.
The SMC is the newest of the 5 management philosophies. 1. Body Shop is against Animal Testing 2.
B.O.V. eco personal loan Being an echo friendly bank B.O.V is assisting customers when purchasing
environmental friendly equipment by offering A. Reduced interest rates B. No processing fees C.
Repayment up to 8 years.