Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. In this article I've explained more about marketing, its elements, its importance, scope, and tools for marketers. You'll also get to know about the difference between marketing and selling through this article.
Elements of Marketing:
- Needs, wants and demands
- Products
- Value
- Exchange
- Market
- Marketers
Need: Needs are the basic human requirements; such as air, food, water, clothing and shelter.
Wants: When needs are directed to specific objects
Demand: Desire backed by ability to pay for a product or service.
Products: Product is anything that can be offered to a market that might satisfy a want.
Value: Sum of tangible and intangible benefits and costs to customers. It is combination of quality, service and price (QSP).
Exchange: Essential for transaction.
Market: 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.
Marketers: A marketer is someone seeking a resource from someone else and willing to offer it to someone else in lien of some value in exchange.
Marketing V/s Selling:
- Marketing emphasis on customer needs and wants; whereas selling emphasis on product.
- Marketer first determines the needs and wants of the customer and then deliver the product to satisfy those needs and wants; whereas in selling, organization first makes the product and then figures out how to sell it.
- In marketing, management is profit oriented through customer satisfaction; whereas in selling, management is sales volume oriented.
- Marketing emphasis on the needs of buyer; whereas selling emphasis on the needs of seller.
- Marketing creates time, place and possession utilities for satisfactory exchange of goods and services; whereas, selling is the transfer of ownership of goods. It creates only possession utility.
Importance of Marketing:
- Crucial for financial success
- Volatile and unpredictable markets. Example: Doodh ki safedi, nirma se aaye; rangeen kapde bhi khil khil jaaye; sabki pasand Nirma...
Scope of Marketing:
- What is marketing?
- How does marketing work?
- What is marketed?
- Who does the marketing?
- Which are the right market segments?
- How do we keep our customers, suppliers loyal?
- How do we develop new business opportunities?
- How to build an image or brand?
- How to maintain prices or margins and profitability?
- How to identify and manage partners?
- How to combat competition?
What is marketed?
- Goods (car, truck, television, camera, electronic gadgets, cosmetics etc.)
- Services (airlines, car rental firms, hotels, barber etc.)
- Events and Experiences (Olympic and rides in amusement park)
- Places and Properties (God's own country and Silicon Valley of India)
- Information and Ideas ( School, University, and Social Marketing)
- Persons
The Marketer
- A Marketer seeks a client or customer response
- The client or customer is a prospect
- Understanding the client or customer needs is vital
Markets
- Consumer Markets
- Business-Business Markets
- Business-Government Markets
- each market has its own complexities
Tools for a Marketer:
The 4Ps of Marketing, are:
- Product: Product is anything that can be offered to a market that might satisfy a want.
- Price: Your distribution strategy.
- Promotion: Any activity conducted with a view of increasing sales.
- Place: The amount of money needed to purchase something.
Marketing Orientations of Organization:
- The Production Orientation:
- Customers or clients will prefer products that are widely available & in-expensive
- High production efficiency, low costs and mass distribution (Lenovo)
- will this marketing orientation work well?
- The Product Orientation:
- Customers or clients will prefer products that are of best quality or performance
- What is the drawback in this approach?
- Pricing, Distribution and Advertising is crucial (DXN)
- The Selling Orientation:
- Aggressive selling and promotion efforts for marketing success
- Aim to sell rather than what the market wants
- High power personal selling, heavy advertisement, large-scale sales promotion
- More applicable to businesses like insurance
- The Marketing Orientation:
- A shift in thinking - centrally of the client and customer needs
- Is this approach right for organization?
- Creating, delivering and communication services or products better than competition.
Marketing Management:
Art & Science of choosing target markets and getting, keeping & growing customers through creating, delivering and communicating superior customer value.
Marketing Management Tasks:
- Developing marketing strategies
- Capturing marketing insights
- Connecting with clients or customers
- Building strong brand recall
- Developing market offerings
- Delivering the value
- Communicating value
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