What is Marketing? – What is Marketing Definition
Meaning and role of selling in society and firm; types of sales job; Duties of a sale representative; Essential knowledge for successful selling; Qualifications for success in sales job; Theoretical basis of sales job – the AIDS approach, the RIGHT SET OF CIRCUMSTANCES approach, the BUYING FORMULA approach, and the BEHAVIORAL EQUATION approach.
The difference between rich and poor countries is not the resources. It is the knowledge of the people which makes them rich. Compare the resources available in Russia and Singapore, Hong Kong or Japan, Nepal, and Bangladesh, etc. The rich country or rich people learned to create value, utility, usefulness and exchanged with others.
Their ratio of value creation is higher than in others. The successful company or people know how to give, what to give, when to give, to whom to give, etc. They know who needs what. This gives and take or the exchange of the “value” is known as marketing. To manage the give and take to attain an organizational goal is marketing.
As the drive is to the driving market is to marketing. In this sense, marketing is to manage market. Marketing is the management function of an organization. Management means to plan, organize, lead, control and evaluate. Hence, marketing is to plan market, organize the market, lead and create control over the market and finally evaluate the marketing function.
It is a continuous function. It is not one time one action. Marketing is made of adding with the word (market + ing). It should be a continuous process. Buying one time or selling one time is not marketing. It is not hit and run. It believes in developing long term relationships with customers.
Every organization has an objective. The goal or objective is attained only through exchange and marketing is responsible to facilitate the exchange process. So marketing is a goal-oriented management function of an organization.
Marketing does not happen by itself. It is a planned and systematic action by the organization to attain its goal. Marketing is a management function to manage the market. The market is the place and event of an exchange.
A market includes three (3) elements buyer, seller and product or service. In this way marketing management includes two aspects, one is to manage an organization, and the other is to manage the marketing.
What is Marketing Definition or What is actual Marketing is?
The word Marketing means different things to different people. Some think that marketing has something to do with making products available in store, arranging display and maintaining inventories of products for future sales.
Some people think that marketing is selling, others think that marketing is advertising.
Many people confuse the terms of selling and marketing. Actually, marketing includes all these activities from production to sales and after-sales services. Marketing includes all these functions of creating value, creating desire and satisfy the created desire by the product or service for mutual benefits of producers and customers.
The market is the place, demand, and condition where people exchange goods and facilities with value. A market includes two actors they are buyer and seller. So, marketing management has two aspects, one is to manage the organization and another aspect is to manage buyers and their buying behavior.
It may be explained as incoming or input marketing and outgoing or output marketing. The input marketing management is buying function, research, product development, etc. The output marketing function is to create a desire among the buyers and potential buyers. The external function includes managing a channel of distribution, logistics management, promotion, etc.
The word marketing is derived from the Latin word “Marcatus” meaning goods or trade. In this sense, marketing is defined as commercialization. It believes that marketing is to create economic value and exchange with utility.
The organization creates utility or usefulness to the customers and customers pay value to receive that utility. Traditionally marketing was concerned with economic activity only but in this modern world, marketing is applied in nonprofit earning organization activities also.
Marketing is a management function of linking mechanisms between demand and supply. Demand is represented by marketing and supply is the organization itself. It is an attempt to satisfy exchange by following the “right principle”. That is to develop the right products, provide the right product to the right time and place at the right price to the right customers. The company must use the right promotional tools to motivate the right people.
Marking is to create value or utility to the consumers. Consumers are not buying a product but they are buying utility and for this purpose they pay value. The organization creates different types of values. They are time value, quantity value, image value, etc. The utility is created by developing products and services.
Utility Value: is to develop product or service which satisfy the need of consumers. It is created by product development and adding users to the buyers.
Time Value: is created by providing goods and services when consumers want. Time value is created by storing and providing when they want.
Space or Place Value: is created by providing goods and services where people want. It is making goods and services available where consumers want to buy. Time value and space value are created by the distribution system.
Quantity Value: is provide the right size. It is created by providing the right volume by packaging.
Image or Ego Value: is added by brand, promotion, and possession.
Marking is to manage exchange functions. It is true that an important objective of all organizations is to make an exchange. An organization is surviving because of its exchange. The exchange creates different types of benefits to proprieties as return on investment, employment to the employees, the community receives utility, the government receives tax and above all the consumers receive utility and facility.
All this happens because of the exchange. The exchange process of value with utility is known as sales or purchase. Marketing is to facilitate the exchange process. On one hand it includes a series of planned activities such as buying processing and moving goods from point of production to the point of consumption.
In the hand, the job includes creating a desire among the people, provide knowledge and attract them to the point of sale and involve in exchange. The responsibility of the exchange job continues to after-sales, services also.
As per the definition of the USA marketing Association “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of idea, goods and service to create exchanges that satisfy individual and organization goals”.
Modern marketing management is to create a “win-win situation” where both buyers and sellers win. Let’s assume one situation where seller wins that is to lose by the customer. If customers lose, they will stop buying from that seller and finally business also closes.
If customers win that means business loses. The seller will stop selling and the customer will not be able to receive better service at the low price next time. So, both parties must play a win-win game that fair price for the fair product.
The marketing function is creating an environment where everyone wins. The investor will get the due return of their investment, an employer will get jobs, people and community will get knowledge and goods they want, the government will receive tax. Even the environment will enjoy the true marketing situation.
Marking is to minimize the “marketing cycle” that minimizes the time taken for input, process, and output. The company invests money for inputs, adds utility and sales them to convert into cash. This process generates revenue, income, return on investment, etc. This is similar to blood circulation in the human body. Marketing efficiency is to minimize the time or duration of this process.
For the above discussion, we conclude that the following:
- Marketing is a continuous process. It is not one time one action.
- Marketing is a management function. It includes planning, organizing, leading and control of the market.
- Marketing includes many activities before the production, during the production and continues after sales also.
- Marketing is the process of developing the idea, to convert idea into product, distribution, promotion, and pricing of goods and services to create an exchange. The exchange of the company offer will satisfy the receiver and organization.
- Marketing is to manage an organization, customers, and market.
- Marketing includes not only buying and selling it also includes research and planning.
Modern marketing is one of the most complicated subjects to deal with. In ancient times it was simply buying and selling. Modern marketing function starts before the production of goods and continues even after-sales. Modern marketing is not a sudden change.
It is a slow and gradual development. When people were self-sufficient there was no need for marketing. The concept of marketing started with a surplus which developed the barter system. When human civilization started producing more than they can consume they started to exchange. The exchange of goods for goods is known as barter.