What is Marketing and Explain Marketing Implications.
The term marketing has been defined and interpreted in many ways by numerous writers and practitioners over time. But the definition of marketing given by American Marketing Association is most widely accepted.
According to American Marketing Association, “Marketing is the process of planning and, executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Philip Kotler defines marketing as a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.”
These definitions suggest that marketing involves a diverse set of activities directed at a wide range of products and stresses the importance of facilitating satisfying exchanges. Marketing may be defined as the process of ascertaining consumer needs, converting them into products or services, and moving the product or service to the final consumer to satisfy certain needs and wants of consumer segments with emphasis on profitability.
Implications of Marketing:
Focus on Customer.
Marketing aims to satisfy the customer. Activities of marketing must be directed and focused at the customers. Marketing efforts must be directed at meeting customer needs, not market shares. For this, marketers must track customer needs on a continuous basis.
The corporate planning, processes and people must be reconfigured around the customer. Marketing begins with the identification of customer wants, needs and requirements. These are converted into products and services that might satisfy the basic needs.
Marketing must Deliver Value.
Marketers have to track customer needs and deliver the product as per their requirements. This is not an end in itself. The company must satisfy the following equation with resultant value above 1:
Customer Value = Benefits / Cost
The corporate strategy must be aimed at delivering greater customer value than competitors. The corporate planning, processes, and people must be reconfigured around the customer.
Marketing is Business.
When customer is the focus of all activities, marketer has not to search customers to seek response to his products. Customer group is decided for whom the product is prepared and presented, Following figure shows that customer provides business and business seeks customer.
Marketing is surrounded by customer needs.
Marketing is customer focused. Marketing efforts are directed at meeting customers needs. For this marketers have to track customer needs on a continuous basis. Marketing begins with the identification of customer needs and requirements.
These are turned into probable features that might satisfy the basic needs. The portable form of product is made out and presented before the customer for approval. The customer suggests changes or improvements in the portable product and the final product is brought before the customer.
Marketing is a Part of Total Environment.
Total environment may be defined as the combination of all resources and institutions which are directly related to the production and distribution of goods, services, ideas, places and persons for the satisfaction of human needs. However, it is better to look at remote, and immediate environment of any marketing organization as shown below:
Marketing Systems Affect Company Strategy.
Marketing has its own sub-systems which interact with each other to form complete marketing system that is responsive to company marketing strategy. Through the sub-systems (Marketing Information System, Marketing Planning System Marketing Organization and Implementation System and Marketing Control System) shown in figure, the company monitors and adapts to the total marketing environment
Marketing is a Discipline.
The subject of marketing has emerged out of the business which has derived its existence from economics. After emerging from business, marketing has got its strength from related areas: law, psychology, anthropology, sociology, statistics, mathematics because the related problems impinge heavily on consumer behaviour, legal aspects of marketing, research on consumer needs, advertising media, pricing, promotion methods, etc. Thus, marketing as a discipline stands tested as an art and a science.