Meaning and definition of Satisfying different Marketing Management Needs
In our country, when managers were asked about the meaning of
Marketing, the majority of them said that the marketing is selling,
advertising and public relations. In USA, when college administrators
were asked this question 90 percent of them gave a similar replay.
Although selling, advertising and public relations form the part of the
marketing, it is important to understand that marketing is much more
than selling or advertising.
According to American Marketing Association "marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user".
From this definition we can understand that marketing not only deals with selling but also include other activities that direct the flow of goods and services from producer to consumer.
Modern concept of marketing include a variety of activities. Suppose, if you want to start a business, you should have a product or service to offer. How do you identify that product or service? You need to go to the market and find out the product or services which will satisfy the need or desire of human being. Once you identified the need or desire of a group of human being, you can decide the product or service which can satisfy that need or desire. All these activities starting from identifying the product to getting the feedback from the consumer comes under the scope of modern marketing.
Philip Kotler, a well known marketing author defines marketing as "a
human activity directed at satisfying needs and want through exchange
process." The definition given by Kotler explains in detail the
different aspects of marketing. All the marketing activities are based
on the existence of human needs. Even though people may have endless
needs and requirements, the ability to buy the products depend on his
economic background. There are a variety of products available in the
market. People select those goods which are more satisfying and needed
more according to their purchasing power. The purchasing power very
according to the class, area and economic background. This need and
want converted in to demand for the products. To identify the demand
of goods among different class of people according to their economic
background comes under the scope of marketing.
We can develop a process-oriented definition of Marketing from the above discussion as "the process of ascertaining consumer needs, converting them into products or services and moving the product or service to the final consumer or user to satisfy certain needs and wants of specific consumer segment or segments with emphasis on profitability, ensuring the optimum use of resources available to the organization."
Gone are the days of business functions like production, marketing, finance etc., were performed by different departments with their own style and way of thinking. Now the condition is changed that the production department will produce only that goods which is demanded by the customers. Earlier it was like produce goods first and then sell. Now it is like find out the demand and then produce. Finance, marketing and production department now work as a team to sustain in the market. In this scenario, marketing plays a vital role in the business function.
Difference between selling and Marketing
Many people use the terms marketing and selling as synonyms. In fact, these two terms have different meaning in marketing management. An understanding of the difference between them is necessary for you to be successful marketing manager.
Selling is an action which converts the product into cash but marketing is the whole process of meeting and satisfying the needs of the consumer. Marketing is the whole process of meeting and satisfying the needs of the consumer. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service. Selling focuses on the needs of the seller whereas marketing concentrates on the needs of the buyer.
Selling is the modern version of the exchange under barter system. When the focus is on selling, the business man thinks that after production has been completed the task of the sales force starts. It is also the task of the sales department to sell whatever the production department has manufactured. Aggressive sale methods are justified to meet this goal and customer's actual needs and satisfaction are taken for granted.
But marketing is a wider and all pervasive activity to a business firm. The task commences with identifying consumer needs and does not end till feedback on consumer satisfaction form the consumption of the product is received. It is a long chain of activity which comprises production, packing, promotion, pricing, distribution and then the selling. Consumer needs become the guiding force behind all these activities.
- Marketing concepts
Business enterprises are conducting their marketing activities under the following five marketing concepts. 1. Product Concept 2. Production Concept 3. Selling Concept 4. Marketing Concept 5. Societal...
More by this Author
The objectives of an audit may broadly be classified as 1. Primary Objectives 2. Secondary objectives. Primary Objectives: The main purpose of audit is to judge the reliability of the financial statements and the...
Integration of all the elements of promotion mix is necessary to meet the information requirements of all target customers. This simply means that the promotion mix is not designed to satisfy only the prospective...
In Kerala many pentecostal groups do not wear ornaments. If you ask "why you are not wearing ornaments?", the new generation has different answers. Now I remember the story of a Pandit (or called Poojari...