Several definitions have been proposed for the term marketing. Each tends to emphasize different issues. Memorizing a definition is unlikely to be useful, ultimately, it makes more sense to thinking of ways to benefit from creating customer value in the most effective way, subject to ethical and constraints that one may have. The 2007 definition offered by American Marketing Association is listed below in several points. * A main objective of marketing is to create customer value. * Marketing usually involves an exchange between buyers and sellers or between other parties. * Marketing has an impact on the firm, its suppliers, its customers, and other affected by the firm’s choices. * Marketing frequently involves enduring relationship between buyers, sellers, and other parties. * Processes involved include “creating, communicating, delivering, and exchanging offerings.”
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. A simple definition will state that a market is a public place where buyers and sellers make transactions, directly or via intermediaries. It is an arrangement that allows buyers and sellers to exchange goods. The market definition begins with the total population and progressively narrows.
Beginning with the total population, various terms are used to describe the market based on the level of narrowing: * Total population
* Potential market- those in the total population who have interest in acquiring the product. * Available market- those in the potential market who have enough money to buy the product. * Qualified available market- those in the available markets who legally are permitted to buy the product. * Target market- the segment of the qualified available market that the firm has decided to serve (to serve the market). * Penetrated market- those in the target market who have purchased the product.
In the above listing, “product” refers to both physical and services. The size of the market is not necessarily fixed. For example, the size of the available market for a product can be increased by decreasing the product’s price.
Marketing can be defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas and goods, and services to create exchanges that satisfy individual and organization goals. The key word in this marketing is “process”; marketing involves researching, promoting, selling, and distributing your products or services.
According to Philip Kotler marketing is defined as ‘satisfying needs and wants through an exchange process. Within this exchange transaction customers will only exchange what they value (Money) if they feel that their needs are being fully satisfied.
Need for marketing
Marketing is a very important aspect in business since it contributes greatly to the success of the company. Production and distribution depend largely on marketing. Many people think that sales and marketing are basically the same. These two concepts are different in many aspects. Marketing covers advertising, promotions, public relations, and sales. It is process of introducing and promoting the product or service into the market and encourages sales from the buying public. Sales refer to the act of buying or the actual transaction of customers purchasing the product or service. In this competitive nature of many businesses, getting the product noticed is not that easy. Strategically, the business must be centered on the customers more than the products. Although good and quality products are also essential, the buying public still has their personal preferences. If you target more of their needs, they will come back again and again and even bring along recruits. If you push more on the product and...