Meaning, Definition, Nature, Work, Importance of Marketing 2023
Meaning and definitions of marketing
In early times marketing meant buying and selling of goods. In other words, all the activities that took the goods from producer to consumer were included in marketing. Due to the multiplicity and diversity of production, the area of marketing underwent radical changes and the focal point of marketing became the consumer, consequently the seller's market started to change as the buyer's market. It will be convenient to study by dividing the definitions of marketing into two parts: -
According to Wheeler: "Marketing is related to all the means and actions through which goods and services reach from producer to consumer".
According to Payle: "Marketing involves both buying and selling."
According to the American Marketing Association: - "Marketing is the execution of business actions that regulate the flow of goods and services from producer to consumer."
According to Philip Kotler - "Marketing is a transactional action that is carried out through exchange processes to satisfy needs and desires."
Pro. In the words of Pal Mazur - "To provide a standard of living to society is marketing".
In Hanson's words - "Marketing is the process of finding the needs of the consumer and converting them into goods and services." Thereafter, more and more consumers have to enjoy more and more pleasure from goods and services.
William J. In Stenton's words : "Marketing is a complete system of all mutually effective business activities to plan, price, promote and distribute products and services that satisfy the needs of existing and prospective customers." She goes.''
According to Kandik Still and Govoni - "Marketing is the management process by which the products are matched to the markets and the ownership is transferred accordingly".
Based on the above definitions, marketing involves:
Marketing begins with the wishes of consumers. ; Finished marketing ends with satisfying consumers' wishes.
Marketing is consumer oriented. ;) These definitions represent the social perspective of marketing.
These definitions make business socially oriented.
These definitions indicate the interdependence of production, market and consumer.
In conclusion, it can be said that marketing is a social and managerial process that contributes to meeting the objectives of the organization by creating, pricing and delivery and promotion of products and services that satisfy human needs.
Marketing Features / Nature
There are major features of marketing which point towards the nature of marketing which leads to knowledge of the nature of marketing.
A human action -
Marketing is said to be a human activity because marketing is done by humans to humans. Today, instruments are also being used in marketing work, but they are operated by humans only, so marketing is a human activity.
Socio Economic Action -
Marketing is an economic activity because it is done for profit, but it is also a social activity because it is done within the society and for the society itself. Hence marketing is a socio-economic activity.
Exchange is the basis of marketing .
Exchange means transaction. Without this marketing activity is not possible, hence exchange is considered as the basis of marketing. Marketing is an act of exchange of goods or services between the producer and the consumer in exchange for value. Philip Kotler wrote that "the existence of marketing arises when people decide to satisfy their needs and desires by exchange." Philip Kotler believes that these conditions must be met for regulation is :-
Have at least two parties
One party has a valuable product / service that the other party needs.
Parties should be able to provide and deliver messages.
The party should be free to accept or reject the offer of the other party.
Each party believes that it is appropriate to deal with the other party.
Creative Action -
Marketing is a creative activity. Marketing creates a variety of utilities in products that make the product valuable. The following types of utilities are created in marketing by products: -
Roop Utility - A form is incorporated into a product by giving it the necessary properties, such as cloth from cotton, sugar from sugarcane and jaggery etc.
Location Utility - Location utility is created in the product by transporting it to the place of need such as transporting stones from stone mines to stone cities etc.
Time Utility - Time utility is created by producers by delivering the product to customers on time, such as providing umbrella and raincoat during the rainy season etc.
Ownership Utility - Ownership utility is created by transferring ownership of products to them, such as Hindustan Unilever making its product accessible to customers.
Knowledge Utility - Knowledge utility is created from the product by giving information about the method of using the product by the manufacturer or distributor, advice to be cautious while using, etc. It is thus clear that marketing is a creative activity.
Consumer oriented processes
Consumer is the focal point of marketing, so all the activities of marketing are done keeping in mind the need, interest, fashion etc. of the consumer, hence marketing is called consumer oriented process. Marketing starts with information about consumer's desire and need and marketing process becomes complete with satisfaction of consumer's desire and need.
Universal verb -
Whether you are a believer of any religion or culture, living in any country or period, without marketing your work will not work because marketing is done everywhere. Even without marketing, the work of entire societies and civilizations will remain incomplete. Hence, it can be said that marketing is a universal action.
Marketing science and art are both -
There are certain principles of science which are established on the basis of discovery and experience. Marketing is a science because marketing is done on the basis of certain principles. Art is one of the best ways of doing something which requires constant practice and tact. Continuous practice and chaturth are required to use these principles. Therefore marketing is also art. Hence, it can be said that marketing is both science and art.
Marketing is different from sales -
In sales, the seller is satisfied by selling the goods to the consumer and does not pay any attention to whether the consumer will get satisfaction with that item, whereas in marketing the product is manufactured keeping in mind the need and desire of the consumer. . Hence it can be said that marketing is completely different from sales.
Dynamic Process -
The marketing work never stops. The marketer always pays attention to the changing customer interests, fashion, likes etc. to make the product more useful to the customer. Hence, it can be said that marketing is a dynamic process.
Complete system of business -
Pro. According to William J. Stanton - "Marketing is a complete system of reciprocal business functions that are used to plan, price, enhance and distribute the goods and services of the present and potential customers to their needs. "It is clear from this statement that marketing is a complete system of business actions which includes all these business activities on the one hand and on the other hand all these activities are related to each other which are also influenced by each other.
Procedure for various activities
Marketing is a process of various tasks in which product planning and development, marketing research, pricing, storage and distribution of goods, advertising, sales promotion etc. are done. Hence, it can be said here that marketing is the process of various tasks.
Marketing is an interdisciplinary thought stream because subjects like Economics, Sociology, Psychology etc. have a deep impact on marketing. Knowledge of these topics is essential for effective marketing.
Marketing functions or marketing area
The area of marketing is very wide. William J. Stanton wrote that "marketing work does not take place even after the completion of the sales work, just as the marketing work does not start after the completion of the production work." According to Converse HUG and Mitchell, the marketing process involves activities: -
Actions of ownership transfer -;
Activities to deliver goods -
Marketing Management Activities -
Supervision and control of activities
According to Candiff, Still and Govoni, work in marketing involves: -
Product planning and development;
Standardization and rating;
Purchase and collection
Physical distribution work -
Ancillary work -
Marketing work starts from the consumer and ends after satisfying the consumer's needs. In other words, actions taken from pre-production to post-sales are included in marketing. From the point of view of the convenience of study, the work of marketing can be studied by dividing it into these parts.
Product Planning and Development -
In product planning and development, it is kept in mind that the product to be made should be in accordance with the needs and wishes of the customers, otherwise the customers will not buy the product. For this, by doing market research and marketing research, it is tried to find out what kind of product customers will like. In this work, attention is given to the color, form, shape, design, variety, packaging, labeling, etc. of the product so that the product meets the consumer's requirement and choice.
Product diversification work -
It is imperative for a producer to focus on product diversification, as long as your product does not outperform your competitor's product from any point of view, the consumer's attention will not go towards your product. To attract the attention of the consumer, the organization should always keep making changes and improvements in its products and at the same time keep an eye on its competitor's product.
Market segmentation means dividing the market into different parts. Market segmentation is done on the basis of income, education, age, family size, gender, etc. of the customers. In addition, the market can also be segmented on geographical basis. All the activities of marketing can be focused on a particular area by segmenting the market on geographical basis and segmentation of the market on the basis of customers can present products according to their income for customers of different income groups and education of customers. Different types of products can be made keeping in mind the age, gender and family size.
Exchange work -
Exchange means transaction. Exchange is a broad function under which the following tasks are covered -
Purchasing work - Products have to purchase raw materials for production work, intermediaries have to purchase goods from manufacturers to meet the needs of small retail traders.
Compilation - Under the compilation, the marketer collects the parts of the goods from several sources and creates a new product by connecting them together. Generally, motorcycle manufacturers collect parts of the parts from the market and manufacture motorcycles. The reason for this is that all the necessary parts and components are neither possible nor profitable by a manufacturer.
Sales - In this work the marketer transfers the goods to the customers. For this, tasks like making price lists, setting sales conditions, appointing vendors and appointing intermediaries are necessary.
Pricing work -
Pricing is an important function of marketing because the success of the venture is hidden in the pricing itself. If the value of the product is more in the eyes of the customer, then the customer will buy another product in place of that product. While determining the price of the product, the marketer must consider the cost of the product, its quantity, competitiveness and the factors that affect the price.
Physical distribution work -
In physical distribution work a marketer has to work: -
Transport - This is a function that provides the product with location utility. This work can be done through water, land and sky transportation. The marketer has to work for this by selecting the appropriate transport medium, determining the transport route, transport insurance, transport security, etc.
Warehousing or storage - This work provides time utility to the goods, under it the marketer collects the goods at a time when the supply of the goods is more than the demand so that the demand can be met at a later time when the demand is more.
Wing Management - It is necessary to create a certain level of stock so that the product can be continuously supplied without any hindrance in the market. Stock level can be reduced by looking at the demand situation of the product.
other tasks -
Other functions include functions: -
Marketing Communication - For this, the marketer uses the means of advertising, promotion and dissemination, salesperson, marketing research etc. and establishes contact with his current and future customers so that his message is sent to the customers as well as customer complaints and suggestions. Information can be obtained.
Finance system - Money is the life blood of business, money is needed to buy raw materials, instruments and equipment and to meet necessary expenses. Finance can be replenished by its own means, taking loans from banks and financial institutions.
Risk taking - The marketer has to face many risks in the marketing of goods such as loss of goods, diminishing demand, obsolescence of goods. Some of these risks can be reduced by insuring them and those whose insurance is not possible have to be borne by the marketer.
Packaging and packing - Generally, packing is done for convenience or safety in transportation or transportation of goods, while packaging protects the look and feel of goods. Along with this, packaging is also used to make the item attractive. Packaging is also used to make the item available in small quantities.
Standardization and Ranking - In the work of standardization, standards of goods are fixed so that the production of goods can be done on the basis of those standards. The product produced in the category is divided into different categories based on the type and quality of the object. Which facilitates identification and pricing of goods.
After -sales service - After -sales service includes services: -
Providing training for the use of the object
Providing repair facility in case of damage to goods
Providing replacement facilities for damage to goods, etc. during warranty period.
Importance of marketing
"Consumer is the king of the market." Today all the marketing activities are done keeping the consumer in mind. The maximum profit in business can be earned only by satisfying the consumer. Effective marketing of goods is necessary to satisfy the consumer. There are many marketers of the same item in the market and there is constant competition among them. Competition can be conquered only by effective marketing of goods. The importance of marketing can be divided into these parts to facilitate study.
Importance for businessmen
It is not possible for businessmen to conduct business without efficient marketing. In short, the importance of marketing for businessmen is: -
To earn maximum profit - Effective marketing increases the demand for goods and increasing demand increases the profit of the businessman. Hence marketing is necessary to earn maximum profit.
To reduce per unit cost - When the demand for goods increases by marketing, more production has to be done to meet the demand. Excess production leads to large scale savings which reduces the cost of per unit.
Creation of new product - Through market research, the behavior of the consumer in changing circumstances is studied and the need and choice of the consumer is ascertained and new products are manufactured according to the need and choice of the consumer. Hence marketing is the father of new products.
To overcome competition - As we know that today there are many producers / marketers of the same item and there exists intense competition for marketing of goods among them. These situations can be conquered through effective marketing array design. Hence marketing is necessary to win the competition.
Today, consumer interest and fashion is a matter of constant change - to face changing circumstances . To face this change, the marketer has to always be alert and watch the market conditions and arrange their marketing accordingly. Hence marketing is necessary to cope with the changing circumstances.
Increase in the fame of the business - When customers get the products according to their need and choice, then the organization gets a good image in the eyes of the customer and the customer again purchases the goods of the same organization. In this way subsistence of consumer satisfaction and social responsibility increase the reputation of the organization.
Helpful in sharing of information - Effective marketing system is an important means of exchange of information between consumer and businessman. Information is exchanged by means of marketing research, advertising, publicity etc. Hence, it can be said that marketing is helpful in exchange of information.
Minimum Product Cost - A good marketing system can reduce per unit costs and at the same time reduce the cost of the product by minimizing the marketing costs.
Success in foreign trade - Effective marketing system brings the reputation of the organization to international level. Due to which the marketing of goods becomes possible in other countries also. Therefore, marketing is necessary for success in foreign trade.
Development of the institution - Good marketing system helps in the growth and expansion of the organization. As you know, effective marketing makes large scale production possible, which reduces the cost of the unit, increases the profitability of the organization and automatic growth and expansion. Opportunities are obtained. Hence, it can be said that marketing opens the doors to the growth of the institution.
Importance to the consumer
Marketing work is customer or consumer predominant, therefore satisfaction of consumers should be the main basis of marketing. In short, the importance of marketing to consumers is:
Providing a higher standard of living - Marketing makes it possible for the consumer to have access to multi-use and comfortable goods and services, thereby increasing the level of the consumer and improving his standard of living.
Informational - Through marketing, different types of information are passed on to the consumer, such as new product information, information about the use of goods, etc. which are important to the consumer. Therefore, it would be fair to say that marketing is informative.
Comparative Study of Goods - Effective marketing system gives the consumer the opportunity of comparative study of the goods produced by different producers. The consumer can select the best product for himself by studying the merits, utility, price etc. of the product.
Fulfillment of requirements - Marketing research determines the needs of the consumers and tries to satisfy the customer's requirements by producing the product accordingly. According to Arthur - "Effective marketing system detects the needs of customers, tries to satisfy them in an effective and beneficial manner."
Achievement of Goods at Reasonable Prices - Today's era is the era of competition. The same item is produced by many producers. All producers establish their own level of effective marketing system whereby the product reaches the consumer at a reasonable price.
Availability of goods on time - Effective marketing arrangements ensure the supply of goods at all times, which makes the goods available to the consumer on time.
In- Place Achievement of Goods - Through an effective marketing system, the marketer has been able to get goods near to the consumer. The essential goods are delivered to the consumer's home. Therefore, it is only fair to say that marketing is necessary for the achievement of place goods.
After sale service - Today, after sales service is of great importance. Effective marketing has a major focus on this service. Warranties are provided to customers for a certain amount of time on durable goods. Repair facilities are provided.
Increase in consumer knowledge - Through advertising and dissemination, the marketer enhances the knowledge of the consumer, which enables the consumer to make judicious decisions. Hence, it can be said that marketing increases the knowledge of the consumer.
Importance for society -
Marketing is important for society because marketing is done keeping in mind the needs of the people of the society. In short, the importance of marketing to society is: -
Improving the standard of living of the society - Marketing provides high standard of living to the society. Through effective marketing, comfortable and necessary products are made available to the consumer, which improves the standard of living of the society as a whole.
Generation of employment opportunities - Effective marketing system requires a large number of wholesalers, retail traders, advertising, publicity, market research, etc. They get employment opportunities. Therefore, it is fair to say that marketing creates employment opportunities.
Equilibrium in demand and supply - Effective marketing system provides for the supply according to the demand of the product, so that there is a balance between demand and supply.
Protection from boom and recession - Marketing creates demand for the product and makes it possible to produce products according to the needs of the consumer, thereby protecting the people of the society from business cycles. Therefore, it would be right to say that marketing provides protection from fast and slow.
Developing a sense of social responsibility - Effective marketing system changes the thinking of producers and marketers, thereby increasing their sense of social responsibility and leading producers to fulfill social responsibilities.
Importance for economy -
Marketing affects the entire economy. The importance of marketing from a national perspective is-
Utilization of national resources - Effective marketing system ensures that only those goods are produced which consumers need. As a result, national resources do not go in vain, they are properly utilized.
Means of Government Income - Marketing is a means of government income because the effective marketing system increases the income of the producers, thereby the government directly and indirectly receives revenue.
Development of agriculture and essential ancillary industries - Through marketing, a variety of products are prepared from agricultural products, which enables the development of agriculture and allied industries.
Increase in per capita income - Effective marketing system makes more production and consumption possible, creating employment opportunities thereby increasing per capita income which is important for the growth of the economy.
Acquisition of foreign exchange - Effective marketing system plays an important role in increasing the circulation of the product and its reputation. The increased popularity of the product makes it possible to sell the product in foreign countries, thereby fetching valuable foreign exchange.