Marketing

“Any human activity directed at satisfying the needs and wants through exchange process”

A review of literature exposes the development of marketing, from “the transportation of

goods from the production of the consumers” to the more complicated “satisfying the needs and
wants.”

The development of the marketing concept may be largely due to the desire of firms to be
strongly competitive.

Marketing may be defined as exchange activities conducted by individuals or organizations for

the purpose of satisfying the human wants with the view of accomplishing individual or
organization.

Basic Marketing Terms:

 Exchange. This term refers to the trade of things or service value between buyer and
seller.
 Human Need. This term refers to things or service that is required by a human being for
the health and well-being of his body and mind.
 Human Want. When a person has an unfulfilled need, and he is aware of an object that
will best satisfy the need, and the object is still not in his possession, the person has an
existing human want.
 Objective. The desired result of an activity is called objective. An example of objective is
profit which is desired by the business person.

The role of marketing in economy

Economic development is generally understood to mean an increase in national production that

result in an increase in average per capita gross national product (GNP). An increase in average
per capita GNP alone however is not sufficient to denote the implied or expected meaning of
economic development. Besides an increase in average per capita GNP, most interpretations of
the concept imply a widespread distribution of income as well. Economic development as
commonly defined today, according to Kenen (2000) also tends to mean rapid growth
improvement achieved “in decades rather than centuries”.

Marketing

Marketing as a functional discipline of business may be understood as a dynamic process of

society through which business enterprise is integrated productively with society’s purposes and
human values. It is in marketing, as we now understand it, that we satisfy individual and social
values, needs and wants – be it through production of goods, supplying of services, fostering
innovation, or creating satisfaction. Marketing, as we have come to understand it, has its focus

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on the customer, that is, on the individual making decisions within a social structure and within a
personal and social value system. Marketing is therefore, the process through which economy is
integrated into society to serve human needs.

The role of marketing in economic development

Marketing and trade play vital roles in the economic growth and overall development of a nation.
Ensures the planned economic growth in the developing economy where the scarcity of goods,
services, ideas and excessive unemployment, thereby marketing efforts are needed for
mobilization of economic resources for additional production of ideas, goods and services
resulting in greater employment.

The major roles of marketing and trade in the national economy can be thought of in terms of:

1- Specialization in activities of comparative advantage.

Without market facilities, areas must maintain diversified activities to produce their own food,
shelter, tools and other needed goods. In the presence of a market, however, an individual can
specialise in one activity and sell the surplus in order to purchase other needed goods. The
individual is likely to specialise on the basis of a comparative advantage in that activity for
which he or she has some special resource or ability. A comparative advantage exists when an
individual or region can produce a good, relative to the price of other goods, more cheaply than
another individual or region.

2- Enhanced resource-use efficiency and trade.

Through specialization and trade, a community is better able to utilize its limited resources.
Specialization and the resulting efficiency of resource-use is the basis for economic growth and
development. As markets and economies develop, surpluses occur more frequently in profitable
activities, creating new wealth, while products are moved greater distances than before. Thus,
trade is a necessary ingredient for economic growth. Marketing is simply the means by which
trade occurs.

3- Advances in marketing with economic growth.

As economic growth proceeds, several changes in marketing take place. With economic
development, the activities and tasks of marketing increase. Activities such as storage and
processing, packaging and retail distribution become more important. Greater activity moves
away from the site of production and towards marketing. This, in turn, creates employment
opportunities and further specialization (diversification of the community). Since livestock
products typically have positive income elasticities of demand, economic growth can lead
directly to new opportunities for production. Thus, the livestock subsector increases in
importance. With development, more economic agents may enter trade, helping to improve
marketing services and, in some cases, allowing the market to capture external economies of
scale. This refers to a situation where the presence of many agents allows each one to operate at
a lower cost. An example is the case where increased trade in some commodity (e.g. livestock
allows for the establishment of large storage facilities (e.g. pre-slaughter holding areas), which

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lowers per unit storage costs. The physical infrastructure can also be affected in a positive way
by large markets, in the form of better roads and communication, offering the potential for
external economies of scale

4- Marketing stimulates the aggregate demand thereby enlarges the size of market.

5- Marketing in basic industries, agriculture, mining and plantation industries

Helps in distribution of output without which there is no possibility of mobilization of goods and
services which is the key point for economic growth. These industries are the back bone of
economic growth.

6- Marketing accelerates the process of monetizing the economy which in turn facilitates the
transfer of investible resources.

Marketing Concept

The philosophy of doing business is developed as people realized that marketing is vital to the
success of any marketing organization. The marketing concept emphasizes customer orientation
and coordination of marketing activities to achieve the marketing goals and objectives.

The marketing concept calls for identifying the needs of the customers first before any move is
made. It is wise to know what is in the mind of the customers before starting any production
activity. When customers’ needs and wants are identified, the company has a greater chance of
achieving its goals.

Even in modern times, not all business firms are expected to adapt a single concept even if it is
tried and tested. Brief descriptions of the various concepts are presented below:

1. The product concepts. Companies adapting this concept attempt to find interested buyers
after producing the product.
 The planning and orientation must be directed towards customer orientation. The
whole marketing organization and its operating staff must be focused on
determining what will satisfy the needs and wants of the target customers, the
important link in the business operation.
2. The selling concept. Under this concept, the firm produces the product then adapts a
selling strategy designed convince a group of perceived customers.
 Coordination activities must start in the product planning process. The product is
the key element that the customer want to buy that is worth his money. Price is
another important component as customers would like to get his money’s worth.
The place of distribution must be within his reach and the promotional activities
must be appealing for him to decide which product to purchase.

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 3. The marketing concept. Under this concept the firms defines its target market and
determine the needs, wants and values of the market. The firm then adapts a strategy to
satisfy those needs and wants more effectively and efficiently than its competitors.
 Customer oriented and coordinated marketing aims to achieve its profit,
objectives and goals. These goals and objectives hinge on the increase in sales
volume and customer’s patronage. When product planning, price promotion and
distribution are properly coordinated, it will result in the most effective way of
satisfying the customer’s needs and wants. The sales volume and profit objective
will be realized.

Factors for Developing Marketing Concepts

1. Capturing Marketing Insights

 The overall direction must be focus on its mission and vision. The organizational goals
and objectives must be directed towards the creation of value to its customers. These
must be the inherent philosophy of the marketing organization. The functional areas in
the marketing organization must be focused towards its ultimate set of tasks in the
building of long lasting relationship with its target.

2. Connecting with the Customer

 The role of marketing is to provide assistance in identifying and satisfying the needs and
wants of its target market. Satisfied customers will continue to patronize the product of
the marketing organization. To create customer value for the product, it must to continue
to upgrade the technological advancement in the market place. Product improvements
and modifications would be necessary to sustain wants and needs.

3. Building Strong Brands

 Today’s customers becoming brand conscious and look up on quality products based on
their brand name. Building strong brand means that they will remember it when they see
it on display at the store or shelf. Some customers insist on branded products and are
willing to search for them. Brand choice is habit forming for satisfied customers and they
usually choose one that satisfies their needs and wants.

4. Shaping the Product Market

 Building a market entails developing the market needs and wants through product
exposure. The target market must be aware that the product exists to serve their needs
and wants. These could be done through promotions or personal selling or through
advertising media. Customers usually attracted to print or visual images that build their
imaginations about the product quality. Shaping product image is delivering and
communicating value to its target market.

5. Developing Marketing Strategies and Plans

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  Successful marketing of products and services rests heavily on the development of
marketing strategies and plans. It involves the development of management process that
identifies customer wants and needs. It anticipates target market present and future
demands. It involves further the development of specific and long term strategies for
their future expansion and development.

The Environmental Scanning:

Macro Environment

The macro environment is the broader context within which a company conducts its
commercial operations. It is the fundamental guiding factor throwing light on the overall market
conditions like nature and kind of people, society, culture, lifestyle, the role of government,
economical condition along with presence and use of technology. A close analysis of these
aspects informs the organizational heads of the environment in which they are about to operate
and most importantly if this is what they are looking for.

The Macro Environment consists of 6 different forces. These are:

Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This

can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider
the different factors of the Macro Environment.

1. Demographic forces: Different market segments are typically impacted by common

demographic forces, including country/region; age; ethnicity; education level; household
lifestyle; cultural characteristics and movements.

2. Economic forces -The Economic forces relate to factors that affect consumer purchasing
power and spending patterns. For instance, a company should never start exporting to a
country before having examined how much people will be able to spend. Important
criteria are: GDP, GDP real growth rate, GNI, Import Duty rate and sales tax/ VAT,
Unemployment, Inflation, Disposable personal income, and Spending patterns.

Economic factors: The economic environment can impact both the organisation’s production and
the consumer’s decision making process.

3. Socio-Cultural forces -The Socio-Cultural forces link to factors that affect society’s
basic values, preferences and behavior. The basis for these factors is formed by the fact
that people are part of a society and cultural group that shape their beliefs and values.
Many cultural blunders occur due to the failure of businesses in understanding foreign
cultures. For instance, symbols may carry a negative meaning in another culture.

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4. Technological forces in the Macro Environment- Technological forces form a crucial
influence in the Macro Environment. They relate to factors that create new technologies
and thereby create new product and market opportunities.

A technological force everybody can think of nowadays is the development of wireless

communication techniques, smart phones, tablets and so further. This may mean the
emerge of opportunities for a business, but watch out: every new technology replaces an
older one. Thus, marketers must watch the technological environment closely and adapt
in order to keep up. Otherwise, the products will soon be outdated, and the company will
miss new product and market opportunities.

5. Ecological forces in the Macro Environment- Ecological, or natural forces in the

Macro Environment are important since they are about the natural resources which are
needed as inputs by marketers or which are affected by their marketing activities. Also,
environmental concerns have grown strongly in recent years, which makes the ecological
force a crucial factor to consider. For instance, world, air and water pollution are
headlines every marketer should be aware of. In other words, you should keep track of
the trends in the ecological environment.

Important trends in the ecological environment are the growing shortage of raw materials
and the care for renewable resources. In addition, increased pollution, but also increased
intervention of government in natural resource management is an issue.

Because of all these concerns and the increased involvement of society in ecological
issues, companies more than ever before need to consider and implement environmental
sustainability. This means that they should contribute to supporting the environment, for
instance by using renewable energy sources. Thereby, businesses do not only support the
maintenance of a green planet, but also respond to consumer demands for
environmentally friendly and responsible products.

6. Political forces in the Macro Environment- Every business is limited by the political
environment. This involves laws, government agencies and pressure groups. These
influence and restrict organisations and individuals in a society. Therefore, marketing
decisions are strongly influenced and affected by developments in the political
environment.

Before entering a new market in a foreign country, the company should know everything
about the legal and political environment. How will the legislation affect the business?
What rules does it need to obey? What laws may limit the company’s ability to be
successful? For example, laws covering issues such as environmental protection, product
safety regulations, competition, pricing etc. might require the firm to adapt certain
aspects and strategies to the new market.

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Micro Environment

- Micro environment is the operating environment of the firm. This is because the functioning of
the micro environment has a direct and immediate bearing on the company. Micro environmental
forces are those that are distinct and individual, such as customers, producers, marketing
intermediaries, public entities and the company itself.

6 Elements of Micro Environment

1] Customers

The main purpose for the existence of most organizations

is to satisfy the needs and wants of the customers. The
enterprise aims to please the customer and earn a profit in
return. So the ultimate aim is to provide the best
products/services to the customer at the best prices.
Failure to do so may result in failure of the business.

This is why it has become increasingly important to listen to customers and value their feedback.
This is why customer consumer surveys have increasing importance in today’s markets.

2] Competitors

There are no pure monopolies in the world. Every organization, whether big or small, has
competition and competitors. So the company has to keep a constant check on their competitors.
The company must ensure that their products have a USP that makes them different and unique
in the market. The products offered must also be better and cheaper than those of the
competition.

3] Employees

Employees or labor is one of the most important factor of production for a company. Human
resources are a significant factor in the success (or failure) of a firm. Hence employing the
correct people, best suited to your firm is of vital importance. And training and development of
these employees is also essential. If care is not taken in this matter the organization can never
succeed, because employees are the back bone of every organization.

4] Shareholders

Shareholders invest in the company, but they are not merely investors. They own shares of the
company, so they are actually owners of the company in a way. This means they get a say in the
running of a company.

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Shareholders will also demand a return on their investment. So it is the company’s duty to earn
profits and pass on this benefits to the shareholders. They have to create wealth for these
shareholders. To keep their interest dividends also have to be paid. So the company must find the
right balance between the health of the company and the benefits to the shareholders.

5] Suppliers

Suppliers provide the firm with the materials and factors of production they need to run the
business. The relation between the company and the suppliers is a power equation. Both depend
on each other for their survival.

So it is necessary for the company to have healthy and amenable relations with their suppliers.
This is essential to the smooth running of the organization. For example if the company has a
falling out with one raw material supplier it could delay their whole production process by days.

6] Media

Every company is going to need media to promote their brand and market their products. So it is
necessary that the company maintain their relationship and their status quo with the media. Any
negative coverage in the media can lead to huge losses for the company. This is why companies
hire PR managers to help them use the media to a positive effect.

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References:

Medina, R. (2007). Principles of Marketing. Manila, PH: Rex Book Store

Alex N. Ifezue ,( 2005) The Role of Marketing in Economic Development of Developing

Countries , Innovative Marketing, Volume 1, Issue 1, 200515 Economic

http://milesonmedia.com/role-of-marketing-in-economic-growth/

https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-
environment-factors-on-
marketing/?fbclid=IwAR1g4k46Vz8xd7YnAmU9XhHFlhWIDqokMsMuBxM0g8R7VkdImKz2
pznPBNY

https://marketing-insider.eu/macro-
environment/?fbclid=IwAR2W5NijRmWfbrwjAoyr5P2NMXdPDzBRnc4dDi0U4yQ3vl4SIHSh
XwiVm-4

https://marketing-insider.eu/macro-environment/