WHAT IS MARKETING?
The term marketing has evolved over time, today marketing is based around providing continual benefits to the customer following a transactional exchange. The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably' Marketing Definitions
Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process' Customers will only undertake the exchange, if they feel that their needs are being satisfied, clearly the transactional value can not be more than the amount customers are prepared to pay to satisfy their need. Marketing:
| * Using Exchanges to Satisfy Needs * 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. * To serve both buyers and sellers, marketing seeks: * To discover the needs and wants of prospective customers. * To satisfy these needs and wants.
| * the trade of things of value between buyer and seller so that each is better off after the trade. * Exchange is key to achieving the two objectives above.
HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS
A. Discovering Consumer Needs
Marketing's first objective is discovering the needs of prospective consumers.
| * The Challenge of Launching Winning New Products Discovering and satisfying needs can be difficult. * Companies invest huge sums on marketing and technical research that reduces, but cannot eliminate, new-product failures. * Discovering needs involves looking carefully at prospective customers. * A firm’s marketing department must understand * what its customer needs, * industry trends, * competitors’ products, * and needs of a customer’s customer.
Consumer Needs and Consumer Wants
* A need occurs when a person feels physiologically deprived of basic necessities, such as food, clothing, and shelter. * A want is a felt need that is shaped by a person’s knowledge, culture, and personality. Marketing does not create the need for a product, but shapes a person’s wants. * ETHICS AND SOCIAL RESPONSIBILITY ALERT
| * Potential consumers make up a market, * which is people with * the desire and * with the ability * to buy a specific product.
| B. Satisfying Consumer Needs
* An organization does not have the resources to satisfy the needs of all consumers. * It focuses on the needs of its target market
| one or more specific groups of potential consumers toward which an organization directs its marketing program.
| Controllable Marketing Mix Factors- The Four Ps
* The elements of the marketing mix are the marketing manager’s controllable factors * the marketing actions of product, price, promotion, and place can be used to solve a marketing problem.
| A good, service, or idea to satisfy the consumer's needs.
| What is exchanged for the product.
| A means of getting the product into the consumer's hands.
| A means of communication between seller and buyer
| Uncontrollable Factors- The Marketing Environment
* There are many factors largely beyond the control of the marketing department. * These are the uncontrollable, environmental factors, including:
| Social forces
| Economic forces
| Technological forces
| Competitive forces
| Regulatory forces
| Political Forces
Marketing is an essential part of good management practice. It is a process of identifying customer needs, wants and wishes, and satisfying them....
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