In today's world of marketing, everywhere you go you are being marketed to in one form or another. Marketing is with you each second of your walking life. From morning to night you are exposed to thousands of marketing messages every day. Marketing is something that affects you even though you may not necessarily be conscious of it.
After reading this post you'll understand - What exactly the marketing is, to whom it is beneficial for, and what are the nature and scope of marketing.
Definition of Marketing
According to American Marketing Association (2004) - "Marketing is an organizational function and set of processes for creating, communicating and delivering value to customers and for managing relationships in a way that benefits both the organization and the stakeholder."
AMA (1960) - "Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user."
According to Eldridge (1970) - "Marketing is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market."
According to Kotler (2000) - "A societal 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."
Nature of Marketing
1. Marketing is an Economic Function
Marketing embraces all the business activities involved in getting goods and services, from the hands of producers into the hands of final consumers. The business steps through which goods progress on their way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers
In the process of marketing the ownership of goods transfers from the seller to the purchaser or from producer to the end-user.
3. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise, institution, or organization interacts with the customers and stakeholders with the objective to earn a profit, satisfy customers, and manage relationships. It is the performance of business activities that direct the flow of goods and services from producer to consumer or user.
4. Marketing is a Managerial Function
According to the managerial or systems approach - "Marketing is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market."
According to this approach, the emphasis is on how the individual organization processes marketing and develops the strategic dimensions of marketing activities.
5. Marketing is a Social Process
Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham (1981) societal marketing performs three essential functions:-
- Knowing and understanding the consumer's changing needs and wants;
- Efficiently and effectively managing the supply and demand of products and services; and
- Efficient provision of distribution and payment processing systems.
6. Marketing is a philosophy based on consumer orientation and satisfaction
7. Marketing had dual objectives - profit-making and consumer satisfaction
Scope of Marketing
1. Study of Consumer Wants and Needs
Goods are produced to satisfy consumer wants. Therefore the study is done to identify consumer needs and wants. These needs and wants motivate the consumer to purchase.
2. Study of Consumer Behaviour
Marketers perform a study of consumer behavior. Analysis of buyer behavior helps marketers in market segmentation and targeting.
3. Production Planning and Development
Product planning and development starts with the generation of product ideas and ends with product development and commercialization. Product planning includes everything from branding and packaging to product line expansion and contraction.
4. Pricing Policies
The marketer has to determine pricing policies for their products. Pricing policies differ from product to product. It depends on the level of competition, product life cycle, marketing goals, and objectives, etc.
The study of distribution channels is important in marketing. For maximum sales and profit, goods are required to be distributed to the maximum consumers at minimum cost.
Promotion includes personal selling, sales promotion, and advertising. The right promotion mix is crucial in the accomplishment of marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy the consumer. Consumer satisfaction is the major objective of marketing.
8. Marketing Control