Formally or informally, people and organizations engage in a vast number of activities we call marketing. Good marketing has become increasingly vital for success. But what constitutes good marketing is constantly evolving and changing. Finance, operations, accounting, and other business functions won't really matter without sufficient demand for products and services so the firm can make a profit. Thus financial success often depends on marketing ability.
Good marketing is no accident, but a result of careful planning and execution using state-of-the-art tools and techniques. It becomes both an art and science as marketers strive to find creative new solutions to often-complex challenges amid profound changes in the 21st-century marketing environment.
Marketing has helped introduce and gain acceptance to new products that have eased or enriched people’s lives. It can inspire enhancements in existing products as marketers innovate to improve their position in the marketplace. Successful marketing builds demand for products and services, which, in turn, create jobs.
Business owners recognize the role of marketing in building strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm. Marketers must decide what features to design into a new product or service, what price to set, where to sell products or offer services, and how much to spend on advertising, sales, the Internet, or mobile marketing. They must make those decisions in an Internet-fueled environment where consumers, competition, technology, and economic forces change rapidly, and the consequences of the marketer’s words and actions can quickly multiply.
Marketing is about identifying and meeting human and social needs. It is all about meeting needs profitably. The American Marketing Association defines marketing as the activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that call for a considerable amount of work and skill.
What is marketed?
Marketers market 10 main types of entities: goods, services, events, experiences, persons,places, properties, organizations, information, and ideas.
Who is a marketer?
A marketer is someone who seeks a response-attention, a purchase, a vote, a donation-from another party, called the prospect.
Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over the product(s) or service(s).
Core Marketing Concepts
To understand marketing functions, we need to understand the following core set of concepts: Needs, Wants, and Demands.
Needs: Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment.
Wants: Needs become wants when they are directed to specific objects that might satisfy the need. For example, I might need food but may want rice, lamb, and carrots. Wants are shaped by our society.
Demands: Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are able to buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it.
Marketers do not create needs: Needs preexist marketers. Marketers, along with other societal factors, influence wants.
1. Communication Channels: This delivers and receives messages from the target buyers and includes newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, tapes, and the Internet. Beyond these, firms communicate through the look of their retail stores, websites, and other media. Marketers are increasingly adding dialogues channels as e-mails, blogs, and social media.
2. Distribution Channels: Using this they display, sell, or deliver the physical product or service to the buyer or user. These channels may be direct via the Internet, mail, or telephone, or indirect with distributors, wholesalers, retailers, and agents as intermediaries.
3. Service Channels: To carry out transactions with potential buyers, marketers also include channels like warehouses, transportation companies, banks, and insurance companies.
Supply chain: The supply chain is a longer channel stretching from the acquisition of raw material to the final delivery of product or service to the final buyers. The beautiful painting hanging on my wall began when the artist conceived the idea of the design, it went into production and advertising before it caught my attention and my desire for it prompted me to acquire it.
Competition: Competition includes all the actual and potential rivals’ offerings and substitutes a buyer might consider. Competitions are other brands that offer the similar or same value for needs or wants. Coca-Cola has close substitute with Pepsi and other beverage offering products.