It is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and service of value with others.
Marketing Management Meaning:
The American Marketing Association defined “It is a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals”.
Core marketing concepts:
Need, Wants, and Demand:
Need is a State of deprivation of some basic satisfaction.
Wants are desires for specific satisfiers of needs
A demand is wants for specific products that are backed by an ability and willingness to by them.
Core marketing concepts:
Value, cost and satisfaction
Exchange and transactions
Relationships and networks
Marketers and prospects
Product (goods, services, and ideas)
A product is anything that can be offered to satisfy a need or want.
Value is “the satisfaction of customer requirement at the lowest possible cost of acquisition, ownership and use”
Exchange & Transactions:
Exchange is the act of obtaining a desired product from someone by offering something in return
Transaction is a trade of values between two or more parties.
Relationship & Network:
It is the practice of building long-term satisfying relations with key parties.
Network consists of the company and all of its supporting stakeholders
Market consists of all the potential customers sharing particular need or wants who might be willing and able to engage in exchange to satisfy that need or want.
Marketer & Prospects:
Marketer is some one seeking one or more prospects who might engage in an exchange of values.
A prospect is some one whom the marketer identifies as potentially willing and able to engage in an exchange of values.
Marketing Conceptual frame work:
There are five competing concepts, under which organizations can chose to conduct their marketing activities:
1) The production concept
2) The product concept
3) The selling /sales concept
4) The Marketing concept
5) The societal marketing concept
1) The production concept:
It holds that consumers will favor those products that are widely available and low in cost. Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution.
The assumption that consumers are primarily interested in product availability and price holds in at least two situations.The first is where the demand for a product exceeds supply, as in many developing countries.Here consumers are more interested in obtaining the product than in its fine points, and suppliers will concentrate on finding ways to increase production.The second situation is where the product's cost is high and has to be decreased to expand the market.
2) The product concept:
It holds that consumer will favor those products that offer the most quality, performance, or innovative features.Managers in product oriented organizations focus their energy on making superior products and improving them over time.
3) The selling concept/sales concept:
It holds that consumers, if left alone, will ordinarily not buy enough of the organization's products.The organization must therefore undertake an aggressive selling and promotion efforts.
Most firms practice the selling concept when they have over capacity.Their aim is to sell what they make rather than make what the market wants.In moderns industrial economies, productive capacity has been built up to a point where most markets are buyer markets (i.e., the buyers are dominant) and sellers have to scramble hard for customers.Prospects are bombarded with television commercials, newspaper ads, direct mail, and sales calls.At every turn, someone is trying to sell something.As a result, public often identifies marketing with hard selling and advertising.
4) The marketing concept:
It holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities towards determining and satisfying the needs and wants of target markets.
The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability,
Target Market: Select one or more market segments to enter.
Customer needs: Need is a state of deprivation of some basic satisfaction.
Integrated marketing: When all the company's department s work together to serve the customer's interests, the result is integrated marketing.
Profitability: The ultimate purpose of the marketing concept is to help organizations achieve their goals. In the case of private firms, the major goal is profit: in the case of nonprofit and public organizations, it is surviving and attracting enough funds to perform their work.
5) The societal marketing concept:
It holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-beings.