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Marketing Definition
Marketing Definition
Marketing Definition
Process
Let’s try to understand the definition of marketing and also get a sense of its
importance, reach, and radius in business, corporations, organizations and in
your life.
The three definitions are not that different but there is a significant difference
between them. I like to call them the generation gap.
In the first definition of AMA “create exchanges that satisfy individual and
organizational objectives” indicates that marketing is there for creating
exchanges for the involved parties to serve their purpose.
They totally forgot about me and you; the customer’s benefit or value. They
also somehow put a boundary to the marketing functions; “process of
planning and executing the conception, pricing, promotion, and distribution of
goods, services, and ideas”.
In the second definition; they include us-the customers’ value but “in ways
that benefit the organization and its stakeholders”. Here they showed the
Extend of the marketing activities; “function and a set of processes for
creating, communicating, and delivering value”.
The third definition of marketing by AMA is to me the most precise one or the
closet on. Well, they put values of customers and society at equals to the
organization’s objectives. Also, they put it in front and regarded it is as the
main force behind the marketing activates. See the third change come very
quick.
And it is rightly so. Businesses have found out that it is customers who are the
only reason for the success, not the large capital or the product/service they
produce. For some of them, it had to be found in a hard way.
We can say that marketing is all about delivering customer value and the
businesses should be too. Businesses in trying to get customers attention and
marketing include all those activates.
The marketing guru of Silicon Valley; Regis McKenna defined marketing in a
very short and outrageous way;
Marketing is everything
Bold statement from Regis McKenna’s but take a look again and it’s very true.
Marketing functions are not fixed on just products, pricing, promotion, and
distribution. It is all the activates that has an effect on how your customer
perceives your company.
Marketing Functions
The universal functions of marketing are buying, selling, transporting, sorting,
standardization and grading, financing, risk taking and market information.
The Selling
The selling function involves promoting the product. It includes the use of personal
selling, advertising, and other mass selling methods.
The Transportation
The transporting function. means the movement of goods from one place to another.
The Sorting
The sorting function means involves holding goods until customers need.
The Standardization and Grading
The standardization and grading involve sorting products according to size and
quality. This makes buying and selling easier because it reduces the need for
inspection and sampling.
Financing
Financing provides the necessary cash and credit to produce, transport, store, promote,
sell and buy products.
Risk Taking
It involves bearing the uncertainties that are part of the marketing process. A firm can
never be sure that customers will want to buy its products can also be damaged, stolen
or outdated.
Spatial Separation
Producers and consumers are separated geographically. Producers tend to cluster
together by industry.
Separation in Time
Consumers may not want to consume goods at the time they are produced and time
may be required to transport goods from producer to’ customer.
Separation of Information
Producers do not know who needs, what, when, where and at what price consumers
don’t know what is available from whom, where, when and at what price.
Separation in Values
Producers value goods and services in terms of cost and competitive prices.
Consumers value goods and services in terms of utility and ability to pay. To
overcome the separation in values marketing facilitate?-.
Separation of Ownership
Producers hold title to goods and services which they themselves do not want to
consume.
Consumers want to consume, goods and services which they do not own. The
marketing function is necessary to overcome the separation of ownership.
Discrepancies of Quantity
Producers prefer to produce and sell in large quantities. Consumer ’ prefer to buy and
consume h small quantities. Marketing needed to overcome discripancies of quantity.
Discrepancies of Assortment
Producers specialize in producing a narrow assortment of goods and ‘ services.
Consumers need a broad assortment. The goal of marketing function is also to
overcome the discrepancies of assortment.
The goals of marketing from the social foundation according to Philip Kotler and Gar/
Armstrong are;
Maximize Consumption.
Maximize Choice.
Without an effective marketing system, the less developed nations may not be able to
escape the “vicious circle of poverty”.
Many people in these nations can’t leave their subsistence way of life to produce for
the market because there are no buyers for what they produce. And there are no
buyers because everyone else is producing for their own needs.
Marketing means delivering the goods and services that customers want and need.
It means getting products to them at the right time, in the right place and at a price
they’re willing to pay.
5 step process of the marketing framework wherein value is created for customers and
marketers capture value from customers in return.
They target customers based on their level, timing, and nature of demand.
Choosing a value proposition
They decide how it will serve their customer that is how it will differentiate and
position itself in the market. A brand’s value proposition is the set of values and
benefits that it promises to deliver its customer.
Companies need to design strong value propositions to give them the greatest
advantage in their target markets.
1. Production concept: Consumers will favor products that are available and
highly affordable. Management should focus on improving production and
distribution efficiency.
2. Product concept: Consumers will favor products that offer most in quality,
performance and innovative features. Focus on making continuous product
improvements.
3. Selling concept: Consumers will not buy enough of the firm’s products unless
it undertakes a large-scale selling and promotion effort. It is typically practiced with
unsought goods that the company needs to sell and generally results in aggressive
selling practices. The company sells what it makes rather than what the market
wants.
For this, it needs to blend all of these marketing tools into a comprehensive integrated
marketing program that communicates and delivers the expected value to the
customers.
The aim of customer relationship management is to produce high customer equity, the
total combined customer lifetime values of all of the company’s customers.
The key to building lasting relationships is the creation of superior customer value and
satisfaction.
Companies today not only want to acquire profitable relationships but also to build
relationships that will increase their share of customer -the portion of the customers
purchasing that a company gets in its product categories.
More loyal the company’s profitable customers, higher are the customer equity.
Customer equity may even be a better way to measure the company’s performance
than market share or current sales.