Essay on Marketing – 2 (1000 Words)

Traditionally, marketing has been defined as follows – “Marketing includes all activities
that direct the flow of goods and services from the producers to the consumers or
users.” This definition is product oriented as it does not consider the needs of the
customers. It emphasises sale of goods produced by the producer and thus considers
marketing in a narrow sense of ‘telling and selling’.

Modern definitions of marketing are based on the philosophy that “Satisfaction of

This implies matching of products with what is demanded in the market. This requires
determining the requirements of potential customers and then developing and
supplying those products which meet their requirements. If a business produces the
products to satisfy the requirements of customers, it is more likely to be successful in
achieving its objectives.

Definitions of Marketing:

Traditional Definition:

Marketing is a social process by which products are matched with markets and through
which the consumer is able to use or enjoy the product. It makes goods and services
more useful to the society by creating place, time and possession utilities. —Cundiff
and Still

Modern Definition:

Marketing is a social process by which individual and groups obtain what they need
and want through creating, offering and freely exchanging products and services of
value with others. —Philip Kotler

The present day marketing is consumer oriented rather than product oriented. Product
planning, pricing, promotion and distribution are so organised that the needs of the
customers are satisfied fully. In the words of Stanton, “Marketing is a total system of
interacting business activities designed to plan, price, promote and distribute wants
satisfying products and services to present and potential customers”. Consumer
oriented marketing ensures that all business activities revolve around the customer.
The essential elements of marketing are as follows:

(i) Two Parties:

There are at least two parties – buyer or customer on the one hand, and seller or
marketer on the other.

(ii) Exchange of Value:

Exchange of goods and services between the seller and the buyer takes place for a
valuable consideration. In other words, the parties have something viewed valuable by
each other. That means the buyer can offer value and the seller can offer goods which
are perceived to be of value by the buyer.

(iii) Freedom:

The parties are free to interact and accept or reject the offer of each other.

(iv) Satisfaction:

Marketing satisfies the needs of both the parties. The consumers gets want satisfying
goods and services and the seller gets value in terms of money for his offering.

Marketing as a Process of Managing Profitable Customer Relationships:

According to Philip Kotler, “Marketing is the process by which companies create value
for customers and build strong customer relationships in order to capture value from
customers in return.”

Globalisation and rise of information technology (IT) have increased the expectations
of customers. They don’t buy products or brands, but ‘a set of benefits or values’. They
expect marketers to be concerned with their total satisfaction. The marketers
association with the customer continues even after the sale of the product and this is
what is called relationship marketing.

Thus, marketing is a process consisting of the following interrelated elements:

(i) Understand the market and customer needs and wants.

(ii) Design the product to satisfy customer needs and wants.

(iii) Develop an integrated marketing program that delivers superior value to the
customer.
(iv) Build profitable relationships with, customers and offer ‘customer delight’.

(v) Capture value from customers to create profits and customer equity.

Marketing enables people to satisfy their needs and wants through exchange
relationships. Exchange is the act of obtaining a desired product (or benefit) from a
company by offering money value in return. Marketing also involves actions taken by
the marketer to build and maintain desirable exchange relationships with target
customers.

Marketers try to build strong relationships by consistently delivering superior customer

The key to building lasting customer relationships is to create (i) superior customer
value, and (ii) satisfaction. A customer buys from the firm that offers the highest
customer perceived value, i.e., the customer’s evaluation of the difference between all
the benefits and all the costs of a market offering (i.e., product) relative to those of
other firms. Many people prefer to buy sweets from Haldiram’s store as compared to
other sweet shops because of higher perceived value.

Market and Related Concepts:

Market:

Traditionally, the term ‘market’ refers to the place where buyers and sellers meet for
exchange of goods and services. It is in this sense that we refer to Chandni Chowk
Market, Kamla Nagar Market, Janpath Market and other markets in Delhi. The buyers
go to the market to purchase the goods of their choice.

These days the term ‘market’ has acquired a broader meaning. If refers to actual and
potential buyers of a product or service, whom the sellers can approach through
various means of communication and transport.

For example, a marketer can approach prospective buyers through web advertising
and a customer can purchase goods from his residence or office by placing order on
telephone or cell phone or using internet and e-mail. Physical meeting between the
parties to buy and sell is not necessary.

Customer Needs, Wants and Demands:

Marketing begins with human needs and wants. Needs are feelings of deprivation of
some satisfaction. People need food, air, water, clothing and shelter to survive. These
needs exist in the very nature of human biology and marketers do not create them.
Wants are desires for satisfaction of needs. Human needs are few but wants are many.
Human wants are continually shaped and reshaped by families, social institutions and
cultural factors.

Demands are wants for specific products and services. They are backed by the ability
and willingness to buy. Wants which are supported by purchasing power become
demands. Marketers influence wants and demands by making products attractive,
affordable and easily available to the target group of consumers. For example, a
marketer might promote the idea that a certain brand of pen (e.g., Parker) would
satisfy the need for social status.