After reading this essay you will learn about:- 1. Meaning of Marketing 2. Concept of Marketing 3. Features 4. Functions 5. Importance/Role.
Essay on Marketing
Essay Contents:
- Essay on the Meaning of Marketing
- Essay on the Concept of Marketing
- Essay on the Features of Marketing
- Essay on the Functions of Marketing
- Essay on the Importance/Role of Marketing
Essay # 1. Meaning of Marketing:
Traditional View:
In old days, marketing was defined as the flow of goods from the producers to the consumers. This is a product-oriented definition of marketing. The process of marketing will start after the goods have been produced. The producers concentrate on what they can produce and sell.
The needs of the customers are not taken into consideration. The product-oriented definition is based on the assumption that whatever is produced is bound to be sold which does not hold good. That is why the concept of marketing has undergone a change.
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Now it represents a philosophy of business and is consumer-oriented in its approach. It includes all the activities concerned with determining and influencing the present and potential demands of the goods and services in the market and supplying the goods and services which will satisfy the demands of the consumers.
Modern View:
Marketing is a consumer-oriented activity. It analyses the need of the customers before the products are produced and offered to them. According to J.F. Pyle, “Marketing is that phase of business activity through which human wants are satisfied by the exchange of goods and services.”
This definition takes into consideration the satisfaction of human want. It emphasises the determination and the satisfaction of the requirements of potential customers which take precedence over production.
Essay # 2. Concept of Marketing:
The customer oriented marketing involves ‘selling of satisfaction’ rather than ‘selling a product’. According to the modern marketing concept, a business firm must make organised efforts to find out what the consumers want and to ensure that they get the maximum possible satisfaction. The focus is on the consumer and the satisfaction of his needs.
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Business must produce what the consumers want, in the quantity and quality they desire, at a price they are willing to pay, at the time they need and through the channels most convenient to them.
According to 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.”
Thus, we can deduce that it has following points to be paid emphasis on:
(i) Target Markets:
First of all, organization should know that who will be the customers for their products. One cannot sell cellular phones keeping in mind children or shaving goods keeping in mind females.
(ii) Satisfaction of Consumer Demands:
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If goods are delivered at cost effective price, and the goods are especially designed to satisfy needs of buyers, there is no point that good doesn’t click. This also includes after sales services. Organization should create new customers and at the same time maintain the old ones.
(iii) Co-Ordinated Marketing:
Today’s production process is a very complex one and requires a lot of expertise. These days, in an organization with a view to establish themselves, there are many departments say production, financing, sales and so on. In order to achieve the required goals, the efforts and activities of all the different departments are to coordinated. For example a new product is to be launched.
The marketing department has to start a campaign. But without the help of information about the size of product or about its special features, the predict would not be very well marketed. Thus, without coordination, marketing of goods is not possible and nor is possible even survival of organisization.
(iv) Profitability:
The main objective of any organisation is attainment of more and more profits. In the due course, this goal should not be lost and organizational activities should pay attention to profits without concentrating on it.
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Consumer Orientation of Marketing:
Traditionally, marketing is defined as the performance of business activities that direct the flow of goods and services from producers to consumers. It consists of activities which involve transfer of ownership of goods. This old concept of marketing is considered inappropriate in modern times because it is based on the assumption that whatever is produced is bound to be sold.
The present day marketing is consumer-oriented in nature. The needs of the customers are to be studied before undertaking any marketing activity. Products have to be designed to satisfy the needs of the customer.
The pricing, promotion and distribution policies are all shaped by the requirements of the customers. The satisfaction of the customer is the justification of the existence of business.
Essay # 3. Features of Marketing:
The above definitions come out with some important features of marketing.
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Each of them are explained as under:
1. It involves specific activities. Marketing perform numbers of activities. Some of them are conducting research, setting prices at both the manufacturer and retailer levels, transport and storing the finished products, etc.
2. Marketing is performed by both individuals and organisation. Marketing by large organisations is more conspicuous because of its heavy emphasis on promotion. But small businesses must also market successfully to service and prosper.
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3. Marketing is intended to meet either commercial or non commercial objectives. Non-profit organisations such as universities use advertising and other promotional techniques to market continuing education programes.
4. Marketing is concerned with more than physical products, such as appliances, food or tennis balls. Services such as health care, hair styling and entertainment are intangible products that must be marketed as well. Marketing activities are needed to bring about the exchange of concepts and ideas.
5. Marketing revolves around the exchange process. The marketing process is not complete until the buyer exchanges something of value for what he or she consumes. Although we often think of that exchange as money or the promise of money credit for consumption consumers may pay with their votes for a political candidate or support for an organisation or movement.
Essay # 4. Functions of Marketing:
The important functions of marketing are listed as follows:
(i) Assembling:
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By assembling we mean the collection of the same type of goods from various small and scattered producers at a central place for sale. Assembling is very essential in the case of agricultural products. It is done even in the case of manufactured goods.
Assembling has several advantages, they are as follows:
(i) It facilitates standardisation and grading of goods according to quality.
(ii) It ensures a regular supply of goods whose production is seasonal.
(iii) It helps to widen the markets for the goods that are assembled.
(ii) Standardisation and Grading:
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By standardisation we mean the laying down of certain standards on the basis of the physical and other properties of the goods, such as colour, size, quality, purity, etc. for the purpose of grading goods.
Grading means the sorting or the classification of goods into different classes or grades in accordance with the pre-determined standards. Standardisation and grading go together. First, standards are set and then goods are classified into different grades according to the pre-determined standards.
Following are the advantages of standardisation and grading:
(i) Grading reduces the cost of marketing of goods.
(ii) Grading eliminates the need for personal inspection of goods. Graded goods can be bought or sold on telephone, by telegram or letters by referring to grades.
(iii) It assures the consumers of quality products.
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(iv) It facilitates dealing in ‘future’. Graded goods can be bought or sold on the basis of grades even before they are actually produced.
(v) It widens the markets for goods.
(iii) Packing:
Packing is the act of placing the goods in suitable packages or containers before they are sold. Packing should be attractive, protective and economical.
Need of packing for different type of goods is listed as follows:
(i) In the case of certain goods such as eggs, packing is necessary in order to make their handling easy.
(ii) In the case of certain goods such as glass wares, packing is necessary in order to protect them against damage.
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(iii) In the case of certain products such as biscuits, sweets, etc. packing is necessary to protect their quality.
(iv) In the case of liquids, packing is necessary in order to prevent them from flowing away.
(v) In the case of many products, packing is necessary in order to make them attractive.
The advantages of packing are as follows:
(i) It protects the goods from deterioration in quality.
(ii) It makes the handling of goods easy.
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(iii) It makes the goods attractive.
(iv) It gives confidence to the consumers as to the quality of the goods.
(v) Good packing has advertisement value.
(iv) Promotion:
Here, promotion means informing the probable consumers about the product, advertising it and making people aware about the relative uses of the product and services. The main aim is to secure higher and higher profits.
(v) Branding:
Branding means giving a product a ‘trade-name’ or ‘trade mark’, such as ‘Pilot’ pen, ‘Hamam’ soap, ‘Prince’ blade, ‘Panama’ cigarette, “Brooke Bond’ tea, ‘Cadbury’s Bournvita, ‘Ambassador’ car. ‘Maruti’ car, van etc. The trade name or trade mark can be protected by registering the name with the Government.
Branding is common in the case of manufactured goods. The object of branding is to distinguish the product of one manufacturer from the products of the other manufacturers. Branding is advantageous to both manufacturers and consumers.
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The advantages of branding to the manufacturers are:
(i) It differentiates the product of one manufacturer from the products of the other manufacturers.
(ii) It enables a manufacturer to reduce the advertising and other sales promotion costs.
(iii) It enables the manufacturer to control the prices of his products, as the retail prices of branded goods are fixed by the manufacturer.
(iv) A brand which has already become popular will be very useful in introducing a new product.
The advantages of branding to the consumers are:
(i) It gives a confidence to the consumers as to the quality, purity, etc. of the products.
(ii) Generally, branded goods are free from defects. Therefore, the consumers are protected against deception.
(iii) The prices of branded products are fixed by the manufacturer and the retailers cannot sell the branded products at higher prices. Therefore, the consumers can get the branded products at fixed prices.
(vi) Warehousing or Storage:
Warehousing is the act of storing goods in properly constructed warehouses or godowns with the object of protecting them from deterioration in quality and other risks such as fire, theft, etc.
Warehousing has become necessary for the following reasons:
(i) Many commodities like rice, wheat etc. are produced during particular season. But they are required throughout the year. In order to preserve and ensure the continuous supply of such commodities, warehousing is necessary.
(ii) Certain goods like umbrella and woollen goods have seasonal demand. But they are produced throughout the year. Such goods have to be stored in warehouses until they are required.
(iii) Most of the manufacturers goods are produced in anticipation of demand. So they have to be stored in warehouses until they are demanded by the consumers.
(iv) Certain commodities are produced at one place but they are demanded at another place. In such cases, in order to ensure the immediate supply of goods, the goods should be stored in some warehouses which are nearer to the consumers.
Warehouses perform many functions. They are as follows:
(i) They preserve the goods and ensure a continuous supply of the goods throughout the year.
(ii) They help in stabilising the prices of goods.
(iii) They protect goods from deterioration in quality.
(iv) They provides facilities for grading, processing, packing etc.
(v) They act as the selling agents of the depositors of goods.
(vi) They collect and supply market information to the depositors of goods.
(vii) Market Research:
Market research is the study of the tastes and preferences of the consumers.
Market research is conducted for the following purposes:
1. When a new product is to be introduced in the market, market research is undertaken to find out the potential demand for the new product.
2. Market research is undertaken to know the reaction of the consumers on the existing product.
3. Market research is also undertaken in order to find out the reasons for the failure of a product already introduced in the market.
The chief advantages of market research are as follows:
1. It helps the manufacturer to adjust his production according to demand.
2. It makes the marketing of goods economical.
3. It helps the manufacturer to adjust the price of his product to suit the consumers.
(viii) Product Planning and Development:
After market research has been carried on, and the product or service to be produced or rendered is finalised, step to be followed is product planning and development. This includes a systematic study of product’s design, size, name, colour, grading, packing, etc. in order to meet specific requirements of customers.
Development involves various stages:
(i) Generation of new product ideas;
(ii) Screening of ideas;
(iii) Detailed investigation, and
(iv) Launching product for sale.
(ix) Salesmanship:
Salesmanship is the art of persuading the prospective customers to buy what they need. It is helpful to the sellers in marketing their products and to the consumers in the proper selection of goods.
(x) Transport:
Transport means conveyance or movement of goods and persons from one place to another. Transport helps the movement of goods from the centres of production to the centres of consumption and widens the market.
(xi) Insurance and Risk Taking:
Insurance is a device by which a manufacturer or a merchant protects himself against the loss of goods by fire, accident, burglary and so on. It eliminates the various business risks and provides scope for the expansion of the market. (For more details about insurance, refer to the chapter on ‘Insurance’).
(xii) Financing:
Financing means provision of funds by bankers and other financial agencies to the businessmen for the marketing of their goods. It is the life-blood of modern business. It assists the traders in the various marketing functions and widens the markets for their products.
(xiii) Pricing:
This is a very important marketing function. If a new product is launched, the first thing which an average consumer tries to know before selecting it or rejecting it is the price of the product or service. We have already studied in economics that price and demand have inverse relationship.
Thus, price of commodity or service should be such that more and more people get attracted and buy it. Thus, the success of the goods or service depends to a great extent on its price and its relative utility.
Essay # 5. Importance/Role of Marketing:
Marketing is of vital importance to any business. The production of goods has no meaning unless a firm is able to sell them to customers. The goods have to be transferred from the producers to the consumers. The availability of products at certain places must be made known to customers. It is through marketing that a manufacturer is able to satisfy the needs and wants of people in an economy.
Marketing helps in the creation of place, time and possession utilities for the benefit of customers.
Place utility’ is created by transporting the goods from production centres to places where they are needed for consumption or use.
Time utility is created by storing the goods in warehouses until there is demand from customers.
Possession or ownership utility is created through sale and transfer of documents of title to goods.
Marketing makes goods and services more useful to the society. It also helps in improving the standard of living of people by providing a wide variety of goods and services. The people have a wide choice of goods and services to satisfy their needs.
Marketing facilitates exploitation of economic resources of the nation. Since a business earns profits by marketing goods and services, it will exploit the economic resources of the nation. This will also lead to a increase in employment facilities.