Definition and Meaning of Marketing
Generally, marketing is understood to mean the sale and purchase of goods and services but it is too narrow view to understand it so. The term ‘marketing’ is much wider in nature and scope. It is not limited only to needs, sale and purchase of goods and services.
According to the American Marketing Association has defined “It is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”.
According to Cundiff and Still__ “It is the business process by which products are matched with the market and through which the transfers of ownership are affected”.
Nature of Marketing
1. It is an Economic Function: It embraces all the business activities involved in getting goods and services, from the hands of producers into the hands of final consumers. The business steps through which goods progress on their way to final consumers is the concern of marketing.
2. It is Customer Oriented: It exists to identify and satisfy the wants of present and potential consumers. Customer is the focus of all marketing activities.
3. It is a Managerial function: According to managerial or systems approach – “It is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market.”
4. It is a System: Another important characteristic of marketing is its function as a system. It is a system comprising several sub-systems. Under marketing inputs are drawn from the society and converted into outputs which are supplied to the society.
5. Marketing is Creative: It creates time, place and possession utilities. Time utility is created by preserving goods for use in future. Place utility is created by carrying goods to place where they are needed the most. It creates possession utility by transferring products and services from producer to customer. Exchange process between buyer and seller is the essential element in marketing.
6. It is a Continuous Process: It is not an isolated, static process but is a complex, continuous and interrelated process. It involves continuous planning, implementation and control. It is an important functional area of the management.
Scope of Marketing
1. Goods: Physical goods constitute the major part of a country’s production and marketing effort. Companies market billions of food products, and millions of cars, refrigerators, television and machines.
2. Services: As economies advance, a large proportion of their activities is focused on the production of services. Services include the work of airlines, hotels, car rental firms, beauticians, software programmers, management consultants, and so on. Many market offerings consist of a mix of goods and services. For example, a restaurant offers both goods and services.
3. Events: Marketers promote events. Events can be trade shows, company anniversaries, entertainment award shows, local festivals, health camps, and so on. For example, global sporting events such as the Olympics or Common Wealth Games are promoted aggressively to both companies and fans.
4. Experiences: Marketers create experiences by offering a mix of both goods and services. A product is promoted not only by communicating features but also by giving unique and interesting experiences to customers.
5. Persons: Due to a rise in testimonial advertising, celebrity marketing has become a business. All popular personalities such as film stars, TV artists, and sportspersons have agents and personal managers. They also tie up with PR agencies for better marketing of oneself
6. Places: Cities, states, regions, and countries compete to attract tourists. Today, states and countries are also marketing places to factories, companies, new residents, real estate agents, banks and business associations. Place marketers are largely real estate agents and builders. They are using mega events and exhibitions to marketplaces. The tourism ministry is also aggressively promoting tourist spots locally and globally.