Basics of Marketing
Process of Planning, execution & distribution of product or service from manufacturer to customer is known as marketing.
According to Marketing guru Philip Kotler, “Marketing is societal process by which individual & group obtain what they need and want through creating, offering & freely exchanging product & services of value with others”.
Buying raw material is the first marketing activity. Assembling these raw materials or semi finished products is the second activity. Selling the product is the third activity. Transporting these products so that it can reach to final consumer is also an activity of marketing department. Staring the finished products is also an activity of marketing department. Branding & packaging of a product is also a marketing activity. Doing the market research & getting correct information about the market is an activity of marketing.
There are various types of marketing such as, Rural marketing, Tele Marketing, On-line marketing, Direct Marketing, Industrial marketing, Services marketing.
The concept of Need, want & demand are very important to understand in marketing. Needs are the inner feeling of a customer. Want is the desire for specific product & demand is the creation of want for specific product.
Why does Marketing is used? What are the objectives of the Marketing?
To identify the needs of customers.
To create goods/services to fulfil needs of customers.
To satisfy customers with utilities.
To carry out right type of research activities.
To make right goods available at right time & right place.
To aware customers about the product/service.
Following are the main points under marketing.
It is very long process. It starts before manufacturing of a product.
The main aim of marketing is to provide value to customer.
It deals with all type of questions with How, Why, Which, when related to product or service.
It is the main link between producer & consumer.
Marketing impacts on revenue, sales, profits etc.
It is responsible for allocation of resources.
It keeps the transportation cost minimum.
Advantages & Disadvantages of Marketing:
Marketing is useful for expansion of business. Because of effective marketing activities any firm can expand its business from a small business to a big business. It creates time, place, form & possession utilities. It enables the business to face competition & to survive competition in the market. Marketing plays a main role in satisfying consumer need. It helps in introduction of new product. It helps in price control & employment generation.
Marketing requires high cost; this cost is altimetry bared by consumer hence product can become costly. It requires skilled manpower which is difficult & costly to get. It also requires marketing research which is a time & money consuming activity.
Customer satisfaction & Customer Delight:
Many people consider Customer satisfaction & Customer Delight as same. But there is major difference between these two concepts. When the performance of any product matches the expectations of the customer then it is called as customer satisfaction. When the performance of any product is higher than the expectations of the customer then it is called as customer Delight. Satisfied customer can stop using the same product & start using other product. But delighted customer will never leave the product. He will be loyal to the product & the organization providing the product.
The concept of Marketing Myopia was developed by the American Professor Theodore Levitt in the year 1960. According to him Marketing Myopia means short sighted, narrow minded view of marketing & the business environment. Marketing Myopia must be avoided. Organizations mainly focus on the product or the service they are catering. They don’t have the broad view of the industry which they are dealing in. They only see the competition in the same business. But they don’t consider the fact that they can face the competition from any other industry which is able to produce the similar result. So, Marketing Myopia must be avoided at any cost.
These are the basic concepts of Marketing. We hope you have understood it. Next post will contain some advance concepts of Marketing like Marketing mix, Consumer behavior, segmentation, Target Marketing, positioning in any market etc.
So, stay tuned for next post.