INTRODUCTION TO MARKETING, DEFINITION, TERMS—BY INSTRUCTOR MRS. ASAKPA, P.E
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. Marketing is life. This connotes that everything man does on earth revolves around marketing. Man cannot do without interaction which involves exchange of one thing to another. When a man’s need is met with the exchange of what the partner possesses, then marketing has taken place. Marketing is the business organisation. It is the key to business opportunities, marketing starts from and with the identification of felt need and satisfaction of such at a profit. For instance, where 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 target.
DEFINITION OF MARKETING:
Marketing can be defined as the process of communicating the value of a product or service to customers. Marketing is also the process of by which companies create customers interest in products or services. It is an integral process through which companies build strong customer relationships and creates value for their customers and for themselves. According to the American Marketing Association[AMA] ‘’Marketing is the performance of business activities that direct the flow of goods and services from the producers to consumers or end users.’’
According to Philip Kotter; ‘’Marketing can be described as human activities directed at satisfying needs and wants through an exchange process.’’ Other theorist includes Institute of Marketing London, Boone and Kurtz etc.
The principle of marketing is anchored on exchange. And marketing creates the exchange process through the performance of the following activities: buying, selling, transportation, storing, financing, risk taking, standardization and grading, obtaining market information.
TERMS USED IN MARKETING:
NEEDS: These are basic human requirements. They are the basic forces that motivate a person to think about and do something. Needs are things you cannot do without.
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.
DEMAND: This is the want for specific product backed by an ability to pay. In economic term, demand means the quality of a commodity that a consumer is willing to buy and able to buy at a given price and at a given time.
PRODUCTS: These are the goods and services offered to buyer by a marketer or seller to satisfy a need. Product is both tangible and intangible, visible and invisible. Physical or tangible products are what can be seen such as car, handset, television etc. Tangible products are services such as teaching, laundry, banking transaction etc. Services are consumed are they are produced while products can be stored in inventory.
EXCHANGE: This is the commodity given to get something. It can be in form of money, time, talents, resources, materials etc. Before the advent of money, there is trade by barter. Trade by barter simply means exchange of what someone has with or to get what other does not have.
TRANSACTIONS: This connotes negotiations, business dealing and management. This is the process of what transpires between a client and a service provider, a buyer and a seller, a retailer and a wholesaler.
MARKETS: This comprises all the potential customers who are in need or want of a particular product or item or people who are willing and able to engage in business transaction in exchange to satisfy the need and want.
MARKETING: It is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.
UTILITY: It is the customers estimate of the products overall capacity to satisfy felt needs. This can be in term of grading of the product from the most need satisfying to the least need satisfying. It is the maximum satisfaction of a product by the consumers.
VALUE: This refer to perceived rating of the product offer for the price. And this also connotes the degree of satisfaction derived from the consumption of a product viz-a-viz the amount paid to exchange the product.
MARKETING MANAGEMENT: It is the analysis, planning, implementation and control of programmes designed to create and maintain beneficial exchanges and relationships with target market for the purpose of achieving organizational objectives.