Marketing - Functions of marketing ~ Importance Of Marketing
Marketing - Functions of marketing ~ Importance Of Marketing
Sunday, June 28, 2020
Different authors have defined marketing variously:
• Marketing is the process by which goods and services move from the point of production to the point of consumption.
• Marketing covers all business activities necessary to affect the transfer in the ownership of goods and services to provide for their distribution.
• Marketing embraces all those activities that start with the production and ends up with the consumption.
OLD CONCEPT OF MARKETING: The old concept of marketing was company – centered. According to which, the manufacturer or the seller produced the goods of his own choice. He would decide on design, color, shape, and functions of his own likes and preferences completely ignoring the desire of the customer. Selling was not a career job and enjoyed only secondary importance. They compromised on quality just to save cost.
MODERN CONCEPT OF MARKETING: According to the modern concept of marketing Markets see new models innovations, inventions every year. Products are made after conducting deep market research and even after their production the study continues incessantly for improvement and further innovation. Through research the company finds itself capable to know what consumers and customers’ desire, how they react to various types of products, why they accept or reject, why they switch over to other brands, when they buy, what their purchasing power is. Products are tailor – made to their exact needs and consumer – oriented.
DIFFERENT CONCEPTS OF MARKETING
The marketing concept can be divided into the following classes as suggested by marketing scientists.
THE PRODUCTION CONCEPT: This concept is based on the belief that the customer would go for those products, which are available at the right prices. To meet this object the company should focus on controlling cost of production and distribution and increase the amount of production. The greater the amount of production the lesser will be the cost.
THE PRODUCT CONCEPT: This concept takes into account the fact that the customer wants that product which suits his needs. He values the product designing, performance, utility, innovation, packaging and functions. So the product should be made to his entire satisfaction.
THE SELLING CONCEPT: According to this concept customer will buy those products, which are well advertised, or of which he is well – aware hence the seller must undertake sales promotional activities to reach him.
THE MARKETING CONCEPT: The concept maintain that the company must recognize customers satisfaction criteria before accomplishing its goals, selling concept emphasizes the sales promotion activities which marketing concept identifies a wider scope of efforts including defining marketing goals, identifying customer needs, unifying all activities affecting four - ps and making profits by creating long – term markets.
THE SOCIETAL MARKETING CONCEPT: It suggests that provision of the goals and services by the company should result not only in the welfare of individual customer but also the society as a whole. Consistent with this concept the company should assume social responsibility by observing law, meeting public expectations, anticipating new demands and leading.
IMPORTANCE OF MARKETING Importance of marketing has gone up extremely high. Production on commercial basis is only possible when marketing outlets have been developed, determined, or discovered. Success of Inventions and innovations is base on good marketing.
1. CREATION OF UTILITY: Another aspect of the importance of marketing is the fact that it creates a variety of utilities that given below:
a) Place Utility: Marketing creates place utility; the goods have no or little utility at the place of production, unless shifted to the place of shortage or demand that creates place utility. Shifting of goods and services is a function of distribution channel, one of the four Ps of marketing.
• Marketing is the process by which goods and services move from the point of production to the point of consumption.
• Marketing covers all business activities necessary to affect the transfer in the ownership of goods and services to provide for their distribution.
• Marketing embraces all those activities that start with the production and ends up with the consumption.
OLD CONCEPT OF MARKETING: The old concept of marketing was company – centered. According to which, the manufacturer or the seller produced the goods of his own choice. He would decide on design, color, shape, and functions of his own likes and preferences completely ignoring the desire of the customer. Selling was not a career job and enjoyed only secondary importance. They compromised on quality just to save cost.
MODERN CONCEPT OF MARKETING: According to the modern concept of marketing Markets see new models innovations, inventions every year. Products are made after conducting deep market research and even after their production the study continues incessantly for improvement and further innovation. Through research the company finds itself capable to know what consumers and customers’ desire, how they react to various types of products, why they accept or reject, why they switch over to other brands, when they buy, what their purchasing power is. Products are tailor – made to their exact needs and consumer – oriented.
DIFFERENT CONCEPTS OF MARKETING
The marketing concept can be divided into the following classes as suggested by marketing scientists.
THE PRODUCTION CONCEPT: This concept is based on the belief that the customer would go for those products, which are available at the right prices. To meet this object the company should focus on controlling cost of production and distribution and increase the amount of production. The greater the amount of production the lesser will be the cost.
THE PRODUCT CONCEPT: This concept takes into account the fact that the customer wants that product which suits his needs. He values the product designing, performance, utility, innovation, packaging and functions. So the product should be made to his entire satisfaction.
THE SELLING CONCEPT: According to this concept customer will buy those products, which are well advertised, or of which he is well – aware hence the seller must undertake sales promotional activities to reach him.
THE MARKETING CONCEPT: The concept maintain that the company must recognize customers satisfaction criteria before accomplishing its goals, selling concept emphasizes the sales promotion activities which marketing concept identifies a wider scope of efforts including defining marketing goals, identifying customer needs, unifying all activities affecting four - ps and making profits by creating long – term markets.
THE SOCIETAL MARKETING CONCEPT: It suggests that provision of the goals and services by the company should result not only in the welfare of individual customer but also the society as a whole. Consistent with this concept the company should assume social responsibility by observing law, meeting public expectations, anticipating new demands and leading.
IMPORTANCE OF MARKETING Importance of marketing has gone up extremely high. Production on commercial basis is only possible when marketing outlets have been developed, determined, or discovered. Success of Inventions and innovations is base on good marketing.
1. CREATION OF UTILITY: Another aspect of the importance of marketing is the fact that it creates a variety of utilities that given below:
a) Place Utility: Marketing creates place utility; the goods have no or little utility at the place of production, unless shifted to the place of shortage or demand that creates place utility. Shifting of goods and services is a function of distribution channel, one of the four Ps of marketing.
b) Image Utility: Sales promotional activities create image other promotional activities are undertaken. Promotional activities one of four Ps of marketing.
c) Information Utility: Receiving and sending information is the function of marketing. Information is obtained through primary or secondary data that also very important for any business.
2. EFFECT ON BUSINESS STATUS: Marketing has a strong impact on the company, its status, organization, planning and staffing. When marketing activities become voluminous, the company divides itself into different departs such as sales, advertising, marketing research and training departments
3. CONSUMER SATISFACTION: Marketing plays an important role in satisfying human needs and wants. Producers and sellers bring the products on the market. Before doing so they make the product attractive and acceptable to customers so that it can best satisfy their needs.
4. SELLING: Today, no manufacturer or seller can survive unless he possesses the knowledge of markets and marketing techniques. Selling is a part and real thrust of marketing. The whole business operations will remain incomplete unless the goods and services are offered for sale.
FUNCTIONS OF MARKETING
3. CONSUMER SATISFACTION: Marketing plays an important role in satisfying human needs and wants. Producers and sellers bring the products on the market. Before doing so they make the product attractive and acceptable to customers so that it can best satisfy their needs.
4. SELLING: Today, no manufacturer or seller can survive unless he possesses the knowledge of markets and marketing techniques. Selling is a part and real thrust of marketing. The whole business operations will remain incomplete unless the goods and services are offered for sale.
FUNCTIONS OF MARKETING
FUNCTIONS OF EXCHANGE:
a) Buying: By the process of marketing, buyers are able to purchase what they need. Buying involves determination of needs, selection of quality and variety, method of payment, mode of delivery and possibility of credit facility.
b) Selling: Selling refers to exchange of goods for money. By selling transfer of title to goods and services is affected. Selling involves deciding on what to sell, when and where to sell and at what price.
FUNCTION OF DISTRIBUTION:
FUNCTION OF DISTRIBUTION:
a) Storage: The means of storage includes shops, stores and warehouses. By the process of storing we hold the goods when they are produced and dispose when they are demanded. It creates time utility.
b) Transportation: If storage creates time utility, transportation creates place utility for goods and services. By transportation, we take goods and services from place of supply to the place of demand.
FACILITATING FUNCTIONS:
a) Finance: Finance is the life – blood of a business. Without money no business activity can be performed. Business needs funds which are available in usually three forms, .
1. Capital
2. Loans
3. Retained earnings.
b) Grading & Standardization: Grading is the specification of a quality, rank of class according to value goods product one country can be easily sold in another just by quoting grade or standard. The examples of grades are Basmati rice, Mexican wheat.
c) Information: Successful marketing requires up – to – date and maximum information about all aspect of markets, Information may be obtained from a primary or secondary source, which must be reliable. Some companies conduct their own research to get first – hand and latest knowledge.
d) Risk: Risk must be considered and studied carefully. Risk is an essential factor of every business. Before starting a new business the investor must calculate how much risk he can assume.
