Introduction To Marketing SS1 Marketing Lesson Note

INTRODUCTION

The objective of all business enterprises is to satisfy the needs and wants of the society. Marketing is, therefore, a basic function of all business firms. When a salesperson sells washing machines, a doctor treats a patient or a Government asks people to take their children for polio drops, each is marketing something to meet the targets.

Traditionally, small firm owners do not give as much importance to marketing as to other functions such as accountancy, production and selling. Training programmes, enterprise development and the current thrust for competitiveness have now given high priority to promoting marketing awareness among small business owners, and marketing is now assuming its rightful place along with other business functions.

DEFINITION OF MARKETING

Marketing can be defined as the process of communicating the value of a product or service to customers.

Marketing is the process by which companies create customer interest in products or services. It is an integrated process through which companies build strong customer relationships and create value for their customers and themselves. According to the American Marketing Association, marketing is the activity, set of institutions, and II processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large. It can also be seen from the social angle as a societal process by which individuals and groups obtain what they need and want through creatine offering and freely exchanging products and services of value with others.

Marketing is based on thinking about business in terms of customers’ needs and their satisfaction. Marketing differs from selling in the sense that selling concerns itself with the trick and technique of getting people to exchange their cash for their product. It is not concerned with the value of the exchange. And it does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customers’ needs. 

In other words, marketing has less to do with getting customers to pay for your products and services and more to do with developing a demand for that product and service to meet and fulfil the customer’s needs.

TERMS USED IN MARKETING

The following are the common terms used in marketing:

1. Needs: These are basic human requirements. They are the basic forces that motivate a person to think about and do something/take action. Needs are things which are essential for you irrespective of the financial situation/conditions. These are the things you have to take care of first and only then come other things which you can do without.
2. Wants: These are things which you wish to have but they are not above your needs. For example, a car is a want when compared to your child’s school fees or educational savings. You can live your life without a car but a child’s education is vital and cannot be compromised.
3. Demand: This is the want for a specific product backed by an ability to pay.
4. Product: These are the goods and services offered to the buyer by the marketer or seller.
5. Exchange: This means the act of obtaining a needed object by offering something in return. Exchange is a value-creating process because it leaves both parties better off (win-win situation).
6. Transaction: A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement. To make a successful transaction, a marketer should understand what each party expects from the transaction.
7. Market: A market is a place which allows the purchaser and the seller to invent and gather information and lets them carry out an exchange of various products and services. In other words, the meaning of market refers to a place where the trading of goods takes place.

The place can be a marketplace or street market. The market functions so that the satisfaction of the buyers and sellers during a transaction can be ensured.

QUALITY IN MARKETING

Quality in marketing refers to the totality of features and characteristics of a product that bear in its ability to satisfy the needs of the customer. It also refers to the collection of features and characteristics that contribute to its ability to meet given requirements.

 Quality can also be defined as  how well products perform and satisfy consumers’ needs and wants or  the features associated with a product that meet the standards and expectations of the buyer

GOALS OF MARKETING SYSTEM

Marketing affects so many people in so many ways.

The following are the goals of the marketing system according to Kotler and Armstrong (1987):

1. Maximize consumption.
2. Maximize consumer satisfaction.
3. Maximize choice.
4. Maximize life quality.
5. Maximize profit.
6. Maximize Consumption: Many business executives believe that marketing jobs should stimulate consumption, and also create maximum consumption, which will in turn create maximum production, employment and wealth. The assumption is that the more people consume the products, the happier they are.
7. Maximize Consumer Satisfaction: The second goal suggested for the marketing system is maximizing consumer satisfaction, not consumption. However, a lot of problems are associated with the measurement of human satisfaction These problems are:

i. Nobody has figured out how to measure the total satisfaction created by a particular product marketing activity.

ii. The satisfaction that individual consumers get from the “goods” of a product or service must be offset by the “bad” such as pollution with environmental damage.

iii. The satisfaction people get from consuming certain goods such as status goods, depends on a few other people having these goods.

8. Maximize Choice: The goals of a marketing system should be to maximize product variability and consumer choice. The system would enable the consumer to find those goods that exactly satisfy their tastes. Consumers would be able to maximize their lifestyles and therefore their satisfaction.

9. Maximize Life Quality: The goal of a marketing system should be to improve the quality of life, quantity, availability and cost of goods, the quality of the physical environment and the quality of the cultural environment. This means that the marketing system is not only the amount of direct consumer satisfaction they create but also the impact they have on the quality of the physical and cultural environment.