Meaning of marketing

Product oriented definition: American marketing

association “the performance of business
activities that direct the flow of goods and
services through producers to consumers or
users.”
Limitations:
Exclusion of non- economic activities e.g.
Population control, lack of consumer orientation,
Lack of emphasis on after sale services.
 Consumer oriented definition
Cundiff & still “marketing is the business process
by which products are matched with the
markets and through which transfer of
ownership are effected”
American marketing association “ marketing is
the process of planning and executing the
conception, pricing, promotion, distribution of
ideas, goods and services to create exchange
that satisfy the individual and organizational
goals”
 System oriented
Stanton “marketing is the total system of
interacting business activities designed to
plan, price, promote and distribute want
satisfying products to target markets to
achieve the organizational objectives”
 Philip kotler
“Marketing is a social and managerial process by
which individuals and groups obtain what they
need and want through creating, offering and
exchanging products of value with others”

Essence is the generation of value to customers

and marketers.
 Nature of marketing
• Is consumer oriented
• Starts and ends with the consumer
• Modern marketing precedes and succeeds
production
• Guided by the element of business
• Is science as well as an art
• Is a system
• Exchange process is the essence of marketing
• Is goal oriented
 Evolution of marketing
• The evolution of commerce and industry has
been a gradual process.
• Initial stages of developments include
Household economy (self- sufficient)
Barter system (exchange of goods for goods)
Village economy (agriculture became main
occupation)
Rise of Entrepreneurship
 Evolution of marketing
• Industrial revolution in the 18th &19th century
• Invention of spinning genny by James
Hargreaves, water frame by Richard
• Further invention and innovation in designing
machinery for textiles, coal mining, steam
engines, development in the means of
transport, rise of chemical industry, etc
• Information revolution
 Philip kotler’s Scope of marketing
Marketers are skilled in stimulating for demand
for company’s products, but this is too limited a
view of the tasks marketers perform.
They seek to influence the level, timing,
composition of demand.
Marketers are involved in 10 types of entities:
goods, services, experiences, events, persons,
place, properties, organizations, information,
ideas
 Scope
• Goods are not only marketed by companies
but thanks to internet even individuals can
market goods.
• E bay is worlds largest person to person online
trading community
• It offers efficient one- to one trading in an
auction format on the web.
 Scope
• Services e.g. insurance
• Experience (experimental marketing) try the
product or money back
• Events: promoting events like sports e.g.
Pepsi- change the game ( football)
• Persons : celebrity marketing is a major business
SRk is a brand
• Place e.g. Australia, Malaysia
• Properties real estate, financial property including
bonds& stocks
 scope
• Organizations : some organizations build a
strong, favorable image in minds of target
market. e.g. reliance services
Philips uses the tag “ lets make things better
amity university.
• Information:
• Ideas : e.g. say no to drugs
take the stairs
save energy.
 scope – a different approach
• Function of exchange
1. Buying and assembling
2. Selling and dividing
• Function of physical supply
1. Transportation
2. Storage or warehousing
• Facilitating functions
Financing
1. Standardization or grading
2. Market information
3. Risk taking
 Marketing myopia( product concept)
• Understood as organizations which concentrate on one
line of product rather than looking at the want that
they a here to satisfy.
• For instance coca-cola focused on its soft drink business
missing the market for coffee- bars and fresh juice bars
that eventually impinged on its soft drink business.
• Mc Donald’s is in danger of over focusing on burgers
while other diners are turning to sandwiches, pizzas,
etc..
• These organizations are looking into the mirror when
they should be looking outside the window.
 Importance of marketing
• Fulfills the needs of customers
• Customer satisfaction and loyalty
• Economic development
• Firm, Time, place, possession utilities
 Selling concept
• Holds that consumers & businesses, if left alone,
will ordinarily not buy enough of products.
• This concept assumes that consumers show a
buying inertia or resistance and must be coaxed
into buying.
• This concept is practiced aggressively with
unsought goods, that buyers normally do not buy
e.g. encyclopedias, political party selling
candidates
• Their aim is to sell what they make rather than
make what the market wants.
 Marketing concept
• Emerged in 1950’s
• Instead of product-centered, make and sell,
we shift to consumer centered, sense and
respond philosophy
• The job is not to find right customers for your
product, but the right product for your
customers.
• Some punch line
You’re the boss ( United Airlines)
Putting people first ( British Airways)
 Distinction
a) Selling concept
Starting point focus means ends
Factory product selling and promoting profits through sales

b) Marketing
concept

Target market customer needs integrated marketing profit through

customer satisfaction
 Societal marketing concept
• Whether customers needs and wants should
get priority over society’s concern for
environment, poverty, social overheads, etc?
• Do excellent companies care more for the
society or customers?
• Experts are of the view that marketing
concept side steps the potential conflict
among customer wants & interest and long
term social welfare.
 Instances
• A fast food hamburger firm offers tasty but
unhealthy food.
• Consumers prefer soft drink tetra packs (e.g.
frooti, plastic bottle- coke, pepsi)
Thus, societal marketing concept holds that the
firm’s task is to determine the needs, wants
and interest of the target markets and deliver
desired satisfaction in such a way that it
preserves and enhances the customer’s and
society’s well being.
 Meta marketing
• Meta market describes a cluster of
complementary products and services that are
closely related in the minds of the consumer
but are spread across a diverse set of
industries.
• The automobile meta market consist of
automobile manufacturer, mechanics, spare
parts dealers, service shops, auto magazine,
auto sites on internet, new and used car
dealers, insurance companies, financing
companies.
 Best example
• Edmunds ([Link]), is a website
where a car buyer can find the stated features
and prices of different automobiles and easily
click to other sites to search for the lowest
price dealer, for financing for car accessories,
and for used cars at bargain prices.
• Metamediaries can also serve other meta
markets such as home ownership market,
parenting and baby care and weeding market.
 Production oriented
• Assumption: consumer will buy those goods
that are inexpensive & readily available.
• Marketers approach: high product efficiency,
mass production, wide distribution, and low
cost
• Suitability: developing nations, markets with
wide expansion scope
 Product oriented
• Assumption: consumer will favor products with
high quality, performance & innovative features
• Marketers approach: make superior product and
improve it overtime, result in marketing myopia-
given by Theodore Levitt (love your customer
and not product)
• Failed product e.g. vacuum cleaner
• Suitability: monopoly market for a product in
maturity stage in product life cycle.
 Selling orientation
• Assumption: consumers if left alone will not
buy the product, thus there is a need to
inform and persuade him
• Marketer’s approach: hard/ aggressive selling
(focus on 4th P- promotion)
• Suitability: unsought product with (-)ive
demand
 Marketing orientation
• Assumption: key of achieving organizational
goals lies in the company being more effective
than its competitors in creating, delivering and
communicating superior consumer value to its
chosen target market.
• Marketer’s approach: love customers, not the
market, opposite of selling, outside-in-
approach, sense and respond
• Suitability: all kinds of market
 4 pillars in marketing orientation
• Target market
• Customer needs- stated real and unstated,
delight and secret needs, responsive mkting,
anticipative mkting, creative mkting.
• Integrated marketing- integrating both
marketing and managerial functions
• Profitability
 Customer orientation
• Assumption: customer is the king, therefore
focus on individual customer needs
• Marketer’s approach: one to one market
integration and value chain to earn profit
through customer loyalty and life time value
• Suitability: unique/ innovation and high value
products with limited demand, introductory
stage on PLC.
 Market environment
• According to Philip kotler “ marketing
environment refers to the external factors and
forces that affect the company’s ability to
develop and maintain successful transactions
and relationships with its target customers”
• Marketing environment is bifurcated into two
parts
1. Micro environment
2. Macro environment
 Micro environment
• It refers to the factors and forces in the
immediate environment which affect the
company’s ability to serve its market. They
include the suppliers, market intermediaries,
customers, competitors and public.