What is Marketing
Marketing is dealing with customers, creating customer value and satisfaction. Sound marketing is key to success for companies. In today’s competitive markets both the profitable large scale organizations like McDonalds, Pepsi, Sony or nonprofit organizations like hospitals, universities are involve in marketing which is an important function of any business.
Marketing is all around us. We get familiar with large number of products through advertisement by passing through malls, watching television, reading magazines and most importantly checking your mail. Everywhere you are at school, working in your office, attending a seminar or in a stadium for football and cricket match your brain will be full of information regarding difference products or services.
Definition of Marketing
It is defined from two different stand points:
- Social definition
- Managerial definition
Definition of Social Marketing
Social definition of marketing shows the role it plays in society. It is defined as: “Marketing is a societal process by which individuals and groups obtain, what they want through creating, offering and freely exchanging products and services of value, with others”.
Definition of Managerial Marketing
From managerial stand point, it is defined to be, “the art of selling”. However, Peter Drucker definition of marketing is not only selling but is art of knowing that:
- Which is the target market.
- Who are the potential buyers.
- What do they want.
- How to make them aware that what you sell fits their demands.
So Peter Drucker says that marketing is a process which must result in readily willing buyers of the product for which it is done. Besides, the product should also be according to their wants. To boil down, marketing is the process of creation and exchange of value.
Creation of Value
Marketers use numerous tools to create value and desired results from their target market these tools constitute marketing.
Marketing mix is the set of marketing tools that firms use to pursue their marketing objectives in the target market (the objective being the creation of value for exchange).
These tools are classified into four broad groups called the four 4 Ps
1. Product These are product variety, quality Design features, Brand, names, packaging etc.
2. Price List prices, discounts, allowances, credit term, payment, periods etc are included.
3. Placement These include channels, coverage, assortments, locations, inventory, transport etc.
4. Promotions Sales promotions, advertising, sales force, public relations, direct marketing etc. are included.