Sunday, 29 March 2020

Marketing: Scope and Concepts


Marketing: Scope and Concepts

Marketing is a dynamic and all pervasive subject in business, that makes the whole organization ready to serve the customers. So, success of a business largely depends on the success of marketing.
There are various definitions to marketing. We can generalize the definition, through the definition of the famous marketing author, Phillip Kotler who defines marketing as a social activity directed towards satisfying customer needs and wants through an exchange process.   

It is a process of identifying consumer needs, developing products and services to satisfy consumer needs, making these products and services available to the consumer through an efficient distribution network and promoting these products and services to obtain greater competitive advantage in the market place.
This emphasizes optimum utilization of resources and concerted effort on the part of the marketing manager to deliver higher value to customers and greater profit to the organization.
Marketing, as a concept, has evolved over a period of time and has witnessed changes and modifications with the progress of civilization. It has augmented exchange with dominating paradigms in marketing.
They are production concept, product concept, selling concept, marketing concept and societal concept. People often confuse between selling and marketing.
While selling is more about product push, marketing is about identification and satisfaction of customer need. While selling focuses on the interest of the seller, marketing takes a more welfare view and focuses on consumer satisfaction. Customers and companies are involved in an exchange process in marketing.
Customer value is the net of expected benefits of customers and cost involved in acquiring the product or service. Benefits can be product benefits, brand or company benefits, functional or performance benefits, service benefits and emotional or self-expressive benefits.
Relationship marketing is based on the principle that current customers are the key to long-term business success.

Customer Satisfaction: Consumer satisfaction (goods or services) is the result of a subjective comparison of expected and perceived attribute levels.
Marketing: A societal process, by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.
The Marketing Concept: It proposes that the reason for success lies in the company's ability to create, deliver and communicate a better value proposition through its marketing offer in comparison to the competitors for its chosen target market.
The Product Concept: It has the proposition that consumers will favor those products that offer the most attributes like quality, performance and other innovative features.
The Production Concept: It emerges out of the production orientation. The basic proposition is that customers will choose products and services that are widely available and are of low cost.
The Selling Concept: It proposes that customers, be they individual or organizations will not buy enough of the organization's products unless they are persuaded to do so through selling effort.
The Societal Marketing Concept: It proposes that the enterprise's task is to determine the needs, wants and intentions of the target market and to deliver the expected satisfaction more effectively and efficiently than the competitors' in a way to preserve or enhance the consumer's and society's wellbeing.

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