Basics Concepts Of Marketing

1.1 MARKETING CONCEPT

The management process through which goods and services move from a company, organization or from industry to the customer is called Marketing.

OR

Marketing is the study and management of exchange relationships between customer and supplier.

 The American Marketing Association has defined marketing as

"The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging the ideas that have value for customers, clients, partners, and society at large.

Marketing is used to create the customer, to keep the customer and to satisfy the customer. Marketing is one of the premier components of Business Management.

1.2. The marketing concept:

The term marketing concept refers to the key assumption of modern marketing. This concept proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. Marketing and marketing concepts are directly related.

A. Marketing orientations:

An orientation, in the marketing context, relates to a representation or attitude a firm holds towards its product or service, basically concerning consumers and end-users. There exist several common orientations:

B. Product orientation:

A firm employing a product orientation is mainly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.

C. Sales orientation:

A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this change simply selling an already existing product, and using promotion techniques to attain the highest sales possible.

D. Production orientation:

A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale, until the minimum efficient scale is reached.

A production orientation may be deployed when a high demand for a product or service exists.

E. Marketing orientation:

The marketing orientation is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes.

F. Customer orientation:

A firm in the market economy can survive by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern.

G. Organizational orientation:

In this sense, a firm's marketing department is often seen as of prime importance within the useful level of an organization.

Information from an organization's marketing department would be used to guide the actions of other department's within the firm. As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product or a new usage for an existing product. With this in mind, the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires.

The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production, and promotion of the product.

H. Mutually beneficial exchange:

In a transaction in the market economy, a firm gains revenue, which thus leads to more profits/market share/sales. A consumer, on the other hand, gains the satisfaction of a need/want, utility, reliability, and value for money from the purchase of a product or service. As no one has to buy goods
from any one supplier in the market economy, firms must stimulate consumers to buy goods with modern marketing ideas.

1.3 Difference Between Market and Marketing:

 The term marketing is derived from the term market, but these two signify different meaning and hence they are not one and the same thing. Market refers to a place where buyer and sellers can meet and trade. On the other end, we have marketing, which is a process that involves some activities which creates value for customers, clients and society as a whole. So, here we go to describe the substantial differences between market and marketing.

Comparison Chart:

BASIS FOR COMPARISON	MARKET	MARKETING
Meaning	Market is defined as an arrangement whereby buyers and sellers meet each other to conclude the transaction.	Marketing is a function that identifies human and social needs and satisfies them.
What is it?	A set up i.e. a place.	A set of processes, i.e. a means of creating utility.
Process	Market is a process, that fixes the price of commodities through demand and supply forces.	Marketing is a process that analyses, creates, informs and delivers value to the customer.
Concept	Market is a narrow concept.	Marketing is a wide concept that includes diverse activities.
Consistency	Market varies by products, place, factors and so on.	Marketing philosophy remains same, no matter where it is applied.
Facilitates	Trade between parties.	Link between customer and company.

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1.4 Scope of the Marketing:

Some of the most important scope of marketing are as follows:

1. Goods:

Physical goods constitute the major part of a country’s production and marketing effort. Companies market billions of food products, and millions of cars, refrigerators, television and machines.

2. Services:

As economies advance, a large proportion of their activities is focused on the production of services. Services include the work of airlines, hotels, car rental firms, beauticians, software programmers, and so on. Many market offerings consist of a mix of goods and services. For example, a restaurant offers both goods and services.

3. Events:

Marketers promote events. Events can be trade shows, company anniversaries, entertainment award shows, local festivals, health camps, and so on. For example, global sporting events such as the Olympics or Common Wealth Games are promoted aggressively to both companies and fans.

4. Experiences:

Marketers create experiences by offering a mix of both goods and services. A product is promoted not only by communicating features but also by giving unique and interesting experiences to customers.

5. Persons:

Due to a rise in testimonial advertising, celebrity marketing has become a business. All popular personalities such as film stars, TV artists, and sports persons have agents and personal managers. They also tie up with PR agencies for better marketing of oneself

6. Places:

Cities, states, regions, and countries compete to attract tourists. Today, states and coun tries are also marketing places to factories, companies, new residents, real estate agents, banks and business associations. Place marketers are largely real estate agents and builders. They are using mega events and exhibitions to market places.

7. Properties:

Properties can be categorized as real properties or financial properties. Real property is the ownership of real estates, whereas financial property relates to stocks and bonds. Properties are bought and sold through marketing.

8. Organizations:

Organizations actively work to build image in the minds of their target public. The organization’s goodwill promotes trust and reliability. The organization’s image also helps the companies in the smooth introduction of new products.

9. Information:

Information can be produced and marketed as a product. Educational institutions, encyclopedias, non-fiction books, specialized magazines and newspapers market information. The production, packaging, and distribution of information is a major industry. Media revolution and increased literacy levels have widened the scope of information marketing.

10. Idea:

Every market offering includes a basic idea. Products and services are used as platforms for delivering some idea or benefit. Social marketers widely promote ideas.

1.5 IMPORTANCE OF MARKETING:

Here are we are given some main importance of Marketing:

1) Marketing helps to achieve, maintain and raise the standard of living of the society

2) Marketing increases employment opportunities

3) Marketing helps to increase national income

4) Marketing helps to maintain economic stability and development

5) Marketing in connecting link between the consumer and the producer

6) Marketing helps in creation of utilities

As well as; Marketing performs the

1. Employment opportunities

2. Improves standard of living

3. Creates utilities for products and services

4. Reduces cost on acquiring as the products reaches near to us.

5. Solves social problems

6. Makes life style  more vibrant and fascinating

7. It improve the society with fulfillment of needs.

1.6 THE MARKETING MIX:

The marketing mix is one of the most famous marketing terms. The marketing mix is the tactical or operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical evidence.

The concept is simple. Think about another common mix – a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!

It is the same with the marketing mix. The offer you make to your customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price.

A. Price

Price is the amount the consumer must exchange to receive the offering .

Solomon et al (2009).

The company’s goal in terms of price is really to reduce costs through improving manufacturing and efficiency, and most importantly the marketer needs to increase the perceived value of the benefits of its products and services to the buyer or consumer.
There are many ways to price a product. Let’s have a look at some of them and try to understand the best policy/strategy in various
situations.

B.Place

Place includes company activities that make the product available to target consumers.

Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods or services are moved from the manufacturer/ service provider to the consumer.

C.Product:

Product means the goods-and-services combination the company offers to the target market.

For many a product is simply the tangible, physical item that we buy or sell. You can also think of the product as intangible i.e. a service.

In order to actively explore the nature of a product further, let’s consider it as three different products – the CORE product, the ACTUAL product, and finally the AUGMENTED product.

D. Promotion

Promotion includes all of the activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products.

Solomon et al (2009).

Promotion includes all of the tools available to the marketer for marketing communication.

E.Physical Evidence

The environment in which the service is delivered, and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.

Physical Evidence is the material part of a service. There are many examples of physical evidence, including some of the following buildings, equipment, signs and logos, annual accounts and business reports, brochures, your website, and even your business cards.

F.People

All human actors who play a part in service delivery and thus influence the buyers’ perceptions; namely, the firm’s personnel, the customer, and other customers in the service environment.

People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are changed to meet the individual needs of the person consuming it.

G. Process

Process is) . . . The actual procedures, mechanisms, and flow of activities by which the service is delivered – this service delivery and operating systems.

There are a number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example – to achieve a 30% market share a company implements a marketing planning process. However, in reality, it is more about the customer interface between the business and consumer and how they deal with each other in a series of steps in stages, i.e. throughout the process.

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