What is marketing?

Marketing has been defined differently by different authors. A popular definition is that “marketing are the activities that direct the flow of goods and services from producer to consumer or user”. Another notable definition is that “marketing is getting the right goods and services to the right people at the right place at the right time at the right price with the right communication and promotion”.

Marketing management is a business discipline which focuses on the practical application of  marketing techniques and the management of a firm's marketing resources and activities. 

Yet another definition is that ‘marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others’. This definition of marketing rests on the following concepts:

Needs, wants and demands; Products; Value and satisfaction; Exchange

A human need is a state of felt deprivation of some basic satisfaction. People require foods, clothing, shelter, safety, belonging, esteem etc. these needs exist in the very nature of human beings.( hungry eat food)

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper. Maslow (1943) stated that people are motivated to achieve certain needs. When one need is fulfilled a person seeks to fullfil the next one, and so on.

When needs backed by culture it become want. ( hungry eat food -> burger)

Wants become demands when backed up by purchasing power. (MacDonald’s burger)

ProductsProducts are defined as anything that can be offered to some one to satisfy a need or want.

Value is the estimate of the product’s capacity to satisfy customer requirements.When benefit will be greater than cost that will be value.

customer satisfaction:When product performance is equal to the customer expectation then it is called customer satisfaction.Expectation= performance => customer satisfactionExpectation > performance => dissatisfactionExpectation < performance => delight

Exchange:The process of buying something and offering something in returns is called exchange.

Development of the Marketing Concept:(Different types of Marketing Management Concepts)

Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competitionMarketing objectives:– Profits through customer satisfaction

To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant.

Production concept Product concept Selling concept Marketing concept Societal marketing concept

1. Production concept

The "production concept" prevailed from the time of the industrial revolution until the early 1920's.It is one of the oldest concepts in business. According to this concept consumers will prefer products that are widely available and inexpensive. Managers of production oriented business usually concentrate on achieving high production efficiency, low cost and mass distribution. According to them consumers are primarily interested in product availability and low prices. This type of business orientation are effective in developing countries where consumers are more interested in obtaining the product than its features.For example: The local mobile companies in developing countries are providing cell phones at much cheaper cost than the branded companies and due to that people in developing countries are preferring to buy cell phones from local companies.

2. Product conceptAccording to product concept of business consumers will favor those products that provide them better quality, performance or innovative feature. Manager in these organisations mainly focus on making superior products and improving them time to time. In comparison to production concept, in product concept it is considered that the consumers are aware about the quality of the products and has an ability to evaluate good quality and performance. In this concept companies used to do little or no market research on customer inputs and competitors’ products.

3. Selling Concept:

According to this concept company constitutes of effective selling and promotion tools in order to stimulate more buying. In this concept the purpose of marketing is to sell more stuff to more people, more often for more money in order to make more profit.

4. Marketing concept:

Marketing concept emerged in 1950's and has challenged the all above concepts. Instead of product centered and make and sell philosophy, this concept shifted to a "customer centered" . Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition.Selling concept is:Factory Product Selling and Promotion Profit from volume

Marketing concept isTarget Market Consumer Needs Integrated Marketing Consumers’ Satisfaction Societal marketing concept:

This basically focuses on social and ethical considerations into their marketing practices. According to this concept the organisations task is to determine the needs, wants and interests of target market and to deliver the desired customer satisfaction more effectively and efficiently than competitor's in a way that preserves or enhances the consumers and the societies well being.