MARKETING: WHAT IS MARKETING AND THE VALUE MARKETING ADDS

Name: Istiak Jamil Course Instructor: Nazma Akhter

ID No: 20210102042 Assistant Professor
Section: B (SoB)
AUST

What is marketing?
When people hear the term marketing, many think of advertising or selling. Although these are
part of marketing, the part we see most , marketing is much more.
As the american marketing association defines it “Marketing is the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and organizational objectives.”
This definition emphasizes the diverse activities marketers perform: deciding what products to
offer, setting prices, developing sales promotions and advertising campaigns, and making
products readily available to customers.

Marketing activities are required for many different kinds of products. The term product often
brings to mind tangible goods- those that can be held or touched, such as compact disks,
players or soft drinks. But products also can be services or ideas. Hospitals offer products:
health care services. The American Cancer Society offers an idea, quitting smoking, as a
product. Like firms that produce goods, non profit and service organizations and even
individuals rely heavily on marketing. The Los Angeles Mission, for example, used mailers and
advertisements to raise money to save the financially troubled mission.
Ultimately the purpose of marketing activities is to bring about exchanges between buyers and
sellers. Exchange consists of one party providing something of value to another party, who
gives something in return. Just as the “something of value” is not always a physical good, the
“something in return” is not always money. The American Cancer Society’s notion of quitting
smoking to live a longer, healthier life is an intangible product, one that can not be physically
touched. For smokers who “buy” that idea the price is the effort required to break a habit that
they have found pleasurable.
Marketing adds value:
Through activities that enable exchanges to take place, marketing adds value to products. This
value is known as utility, the ability of a product to satisfy a consumer need. There are 4 types of
utility: Form, Time,Place, Possession.

Form Utility is created when a firm’s production function yields a product. For example, through
the use of raw materials, labor, and other inputs, publishers produce newspapers and
magazines. Marketing indirectly affects form utility, since an organization may depend on its
marketing people to find out which product consumers would welcome in the marketplace.

Marketing directly creates the other 3 types of utility.

By making products available when consumers want and need them, marketing creates time
utility. Publishing companies print and distribute morning newspapers early so readers can read
them at breakfast or while commuting to work.
Making products available where consumers need or want to obtain them creates place utility.
Newspapers are delivered to homes and businesses; sold in vending machines, supermarkets,
convenience marts, drugstores and bookstores; and placed in libraries.
Marketing creates possession utility when the ownership of a product is transferred from seller
to buyer to obtain newspapers, customers pay the publishing company for home delivery, drop
money into vending machines, or pay clerks in stores.

To conclude, marketing seeks to take a product or service, identify its ideal customers, and
draw the customers' attention to the product or service available.