What does the term marketing mean?
Many people think of marketing only as selling and advertising. And no wonder, for every day we are bombarded with television commercials, newspaper advertisements, direct mail campaigns, Internet pitches and sales calls. Although they are important, they are only two of many marketing functionsand are often not the most important ones.Today, marketing must be understood not in the old sense of making a sale – ‘telling and selling’ – butin the new sense of satisfying customer needs. Selling occurs only after a product is produced. Bycontrast, marketing starts long before a company has a product. Marketing is the homework thatmanagers undertake to assess needs, measures their extent and intensity and determine whether a profitable opportunity exists. Marketing continues throughout the product’s life, trying to find newcustomers and keep current customers by improving products appeal and performance.Everyone knows something about ‘hot’ products. When Sony designed PlayStation, when Nokiaintroduced fashionable mobile phones, when The Body Shop introduced animal-cruelty-free cosmeticsand toiletries, these manufacturers were swamped with orders. Like Swatch and Smart Car, they were‘right’ products offering new benefits; not ‘me-too’ products. Peter Drucker, a leading managementthinker, has put it this way: ‘the aim of marketing is to make selling superfluous’. The aim is to knowand understand the customer so well that the product or service fits … and sell itself. If the marketer does a good job of identifying customer needs, develops products that provide superior value,distributes and promotes them effectively, these goods will sell very easily. This does not mean thatselling and advertising are unimportant. Rather, it means that they are part of a larger marketing mix – a set of marketing tools that work together to affect the marketplace.We define
as a social and managerial process by which individuals and groups obtain whatthey need and want through creating and exchanging products and value with others. To explain thisdefinition, we examine the following important terms: needs, wants and demands; products andservices; value, satisfaction and quality; exchange, transactions and relationships; and market.Each part of the marketing definition defines what marketing is and how it is practiced. In business-to- business marketing, where professional organizations
products of value to each other,marketing can be an exchange between similar individuals and groups. This contrasts with consumer markets where marketing is not an exchange between similar individuals and groups. In consumer markets, for one group marketing is a managerial process pursued to fulfill their needs and wants, whilethe other group is just going through life fulfilling their needs and wants. With this differenceidentified, the definition of marketing identifies marketing’s unique contribution to an organization andthe demands it imposes.The essence of marketing is a very simple idea that extends to all walks of life. Success comes fromunderstanding the needs and wants of others and creating ideas, services or products that fulfill thoseneeds and wants. Most organizations, from Boo.com to WorldCom, fail because they fail to fulfill thewants and needs of others.
Module 2 Principles of Marketing 1 The Marketing Culture
1.2. 1.2.1 THE MARKETING CULTURE