Marketing concept

 

Marketing

Marketing refers to a setup of activities that a company takes up promoting the buying and selling of products or services, including product advertising, supply and logistics management and market research & development. Marketing can identify the need and desire of the target market that helps to capture the potential customer.

Role of Marketing in an Organization

Existing of an organization without marketing is not possible. Generally marketing establishes relationship between product clients and organization. A company can take strategic decision on the basis of marketing activities. Market research and analysis is an important task of marketing that helps to take the competitive opportunities by differentiating organization’s products and service quality. Marketing plays a momentous role in an organization. Marketing captures the need of target market by market research. Need and want of something new is not a new thing, needs and want pre-exist in the market. Marketing just identify the hidden need and demand that is a competitive strategy to promote the selling of the product. Marketing also helps adapting the right pricing of a product. Organizational survival, growth, reputation mostly depend on the marketing strategy of an organization. Ending stage of the marketing is consumer satisfaction that is obtained by delivering quality products.

Functions of marketing in an organizational context

Marketing doesn’t perform a single function, it has to perform various functions. Marketing function inaugurated from searching need and expectations of consumer and continues up delivering products and taking feedback of consumed products and services. Functions of marketing department act as a backup for other operational department to perform effectively. There are some universal functions of marketing:

  §  Buying

  §  Selling 

  §  Transporting

  §  Storing

  §  Standardization & Grading

  §  Financing

  §  Risk Taking

  §  Market Information

Others Significant Functions

  §  Advertising and Sales Promotion

  §  Distribution

  §  Marketing Planning

  §  Product Pricing

  §  Marketing Research

  §  Product Development

  § After Sales Service

  §  Public Relations

Marketing Framework

Marketing framework is a pathway containing instructions how to execute marketing plan. The marketing framework assures that the company delivering the right product to the right clients, through the right distribution channels, at the right moment to attain core marketing motives. Marketing framework is connected with marketing strategy that executes the marketing plan with a tactful way by using competitive strategy to gain the organizational objectives. The Walmart Company, the most successful company in the world, uses psychographic marketing strategy that is the strategy of EDLP (Every Day Low Prices). Different company uses different marketing framework on the basis of their organizational structure. There is provided a sample of marketing framework:

 

§  Defining a specific goal

§  Identifying target market

§  Identifying customer need

§  Identifying the company’s capabilities

§  Searching the competitive advantages

§  Suitable pricing

§  Ensuring the quality of the products

§  Providing logistics support

§  Customer satisfaction

§  Feedback from customers

Definition of Needs, Wants and Demand

Needs are the fundamental requirements of a human being such as rations, costumes, shelters etc. Human can’t survive without those requirements, Education and health care arte the most significant part of the needs in today’s modern world. Based on the marketing language, human needs are nothing that are the state of felt deprivation. There are different types of needs existing in the society like physical needs (Food, cloth, house, safety etc.), personal needs (Feelings, self-satisfaction, self-expression etc.), social needs (Respect, affection, love etc.) and ego needs (Self-esteem, status, recognition etc.).

Wants are then appeal for a specific products or services that meets the deeper needs of a person. For example, wishing to buy a laptop is called needs but wishing to buy a laptop of Apple company is called wants.

Demand are wants for earmarked products that are backed up by the buyer’s ability to buy, willingness to buy and willingness to pay for those products.

Definition of Product and Service

Product can be a physical or intangible item or service, information, ideas etc, (Electronics device, food, cloth etc.) that are offered for sale by satisfying the consumer.

Service means delivering the value, not a physical good (Treatment, teaching, haircut etc.) to customers that customer wants to achieve by paying money.

Types of Products with Example

§      Core Product-Core product is not a product actually; it’s a concept that explains the utility that a consumer attains by using that product. For example, the core product of a car is the core amenities that it provides, which is the capability to switch places fast.

§     Luxury product-are those goods which demand increases comparing with increasing income of customer. For example, luxury version of automobile or mobile phone, yachts, wine, clothes, coffee, tea, jewelry etc.

§      Unsought product- is those products that consumer doesn’t know about the product like funeral service, fire extinguishers etc.

Relationship Between Value and Customer Satisfaction

Customer Value and satisfaction both are the basic concepts of compassionate marketing. Value and customer Satisfaction are highly connected with each other. Value is when final customer or consumer catches that the consumer will receive a good deal from the organization, brand, products or services. Value is the monetary worth of something. Customer satisfaction is a assessment that determines how pleased customers are with the firms products, services and capabilities. In marketing terms, the consumer will concern about the value when the benefits expect gaining exceed the expected expenditure and effort involved in acquiring the product.

Relationship Between Exchange and Transaction

Exchange is a trade of goods or services between two participants. Transaction is defined as a contract between two clients in where a goods and service are exchanged in term of money. Transaction and exchange are directly interrelated with each other. No transaction, no exchange.

Types of Market

Market is the combination of seller and buyer where buyer and seller meet with each other to exchange products in term of monetary value. There are different types of market existing in the business world:

§      Physical Market-Physical market is the place where buyer and seller can physically meet to exchange the products by means of monetary value. For example, departmental store, Shopping malls, retail stores etc.

§      Virtual Market-In this type of market, purchasing deal of products or services are conducted through internet. For example, Evaly, Bikroy.com, Amazon, Radiff Shopping etc.

§    Auction Market-In this market, seller conducts a bid for products and exchange the product with highest bidder.

§      Black Market-It’s an illegal market where illegal products are sold like drugs and weapon etc.

§      Market for Intermediate Goods- In this market, raw material or unfinished product is sold.

§      Knowledge Market-Knowledge and information based products are sold in this market.

§      Financial Market-The market deals with the exchange of asset(Money)is called financial market.

§      Stock Market-Where seller exchanges share in term of money is called Stock market.

§    Bond Market-In this type of market, seller exchanges debts, securities etc, is called bond market.