Understanding Modern Marketing: Human Activity, Consumer Needs, and Utilities - Prof. Lee, Lecture notes of Business Finance

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BUSINESS

MARKETING

BUSIMKTG

Mr. Boniebert P. Luciano

NATURE AND SCOPE OF MARKETING

Marketing is the art and process of

developing, executing, and maintaining

an exchange relationship. You begin

with attracting the customers, building

a relationship with them, and finally

keeping it by satisfying their needs.

Traditional Concept: The

term ‘traditional marketing’ can be

expressed as the business activity through

which goods and services directly move

from producers to consumers or users.

Nature of Marketing The Nature of Marketing (or Modern marketing) may be studied under the following points: Human activity: Originally, the term marketing is a human activity under which human needs are satisfied by human efforts. It’s a human action for human satisfaction. Consumer-oriented: A business exist to satisfy human needs, hence business must find out what the desire of customer (or consumer) and thereby produce goods & services as per the needs of the customer. Thus, only those goods should be produce that satisfy consumer needs and at a reasonable profit to the

Art as well as science: In the technological arena, marketing is the art and science of choosing target markets and satisfying customers through creating, delivering, and communicating superior customer value. It is a technique of making the goods available at right time, right place, into right hands, right quality, in the right form and at right price. Exchange Process: All marketing activities revolve around commercial exchange process. The exchange process implies transactions between buyer and seller. It also involves exchange of technology, exchange of information and exchange of ideas.

Goal oriented: Marketing seeks to achieve

benefits for both buyers and sellers by

satisfying human needs. The ultimate goal of

marketing is to generate profits through the

satisfaction of the customer.

Guiding element of business: Modern

Marketing is the heart of industrial activity that

tells what, when, how to produce. It is capable

of guiding and controlling business.

System of Interacting Business Activities: Marketing is the system through which a business enterprise, institution or organization interacts with the customers with the objective to earn profit, satisfy customers and manage relationship. It is the performance of business activities that direct the flow of goods and services from producer to consumer or user. Marketing is a dynamic processes. series of interrelated functions: Marketing is a complex, continuous and interrelated process. It involves continuous planning, implementation and control.

The functions or scope of marketing in business can be categorized into four parts:

1. Research Functions
2. Exchange Functions
3. Physical Supply Functions
4. Facilitating Functions

1. Research Functions: (i) Marketing Research: This is a primary function of marketing. In developing world economy, we can not survive without market research and analysis. In marketing research, we predict the buyer’s behavior, habits, taste, preferences, other substitute products, different income groups in society, etc. It provides much essential information about products in the market to the marketing manager. So, In this way, marketing research helps in to take a decision for the pre-production stage of any product. (ii) Product Planning and Development: The growth of any marketing division depends upon the nature of the product demanded by the buyers. The product must be so developed and designed that it meets the requirements of the buyers.

3. Physical Supply Functions:

(i) Standardization, Grading, and Branding: In standardizing process, marketers establish a basic measure to which products must have to be designed. Grading is the process of separating the goods according to established specifications to determine the grades. When producers supply their goods by well-defined names is called branding. (ii) Packaging and Labelling: The packaging protects goods from unnecessary problems and also provides necessary information to our buyers. Labeling is a part of the packaging. Through labelling, a manufacturer communicates grade, brand, weight, and other things about the product. (iii) Storage: Storage helps to store the goods in an optimum quantity and also provide the full safety to our manufactured goods.

4. Facilitating Functions: (i) Financing: Financing is a term by which the company can run our business because it provides the working structure to the company. With the proper fund of finance, the company can easily purchase the raw materials and can pay the expenses. Various commercial banks, industrial banks, co-operative institutions, consumer-credit co-operative centers, etc., provide financing facilities for dispersion of working capital. (ii) Salesmanship: Without the art of salesmanship, we cannot sell any product sequentially. Through various techniques of salesmanship like demonstrating, personal selling, sample distribution for measuring qualities of a product and taking feedback of customers, a salesperson finds out what his buyers need and does his best to meet it. (iii) Advertising: Advertising is an important term of marketing. Through advertising, a seller communicates a message about the product and promote its sale. A seller uses various modes of advertising like magazines, newspapers, hoardings, radio, television, and so on. (iv) Marketing Information: Marketing managers require a lot of correct and

How to Know What a Customer Needs & Wants?

• (^) Identify Your Target

Markets

• (^) Establish How Customers

Shop

• (^) Understand Why

Customers Buy What They

Buy