Understanding Marketing

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

322

Pages:

1
Author:

JJIssac

UNDERSTANDING MARKETING As the name suggests, marketing involves all the activities involved in getting goods and services from producers to consumers. Basically, any time we buy something - whether groceries, gas for our car or a ride on a matatu - marketing has played a role. Defining Marketing At its core, marketing aims to satisfy customer needs and wants through value creation. More specifically, it's the managerial process of planning, pricing, promoting and distributing products. The modern approach puts customers at the center, working backwards from their perspectives rather than just churning out products. Over a century, marketing has evolved vastly from its agricultural roots to become a highly strategic function. The Marketing Concept This customer-focused philosophy guides organizations to truly understand customer needs and tailor offerings accordingly. As Figure 1 shows, the process starts with identifying target markets, then deeply researching needs and wants. From there, firms coordinate internally and develop products that hit the mark. Importantly, customer satisfaction - not just sales - drives long term profitability. Marketing Philosophies Through the Ages Various philosophies have influenced marketing approaches over time. During shortages, the production concept prioritized output over quality. As supply grew, the product concept stressed high quality goods. Then sellers pushed promotional efforts with the selling concept. Today's norm is the marketing concept of putting customers first through the entire process. And with societal marketing, firms aim to benefit society alongside individual consumers. Selling vs Marketing While selling and marketing overlap at times, they differ significantly as shown in Table 1. Selling focuses on moving existing products and is sales-driven, while marketing takes a strategic, consumer-centric view oriented towards future growth. Marketing delves deeper into needs, offers solutions, and ensures long term satisfaction rather than just short term transactions. The Marketing Mix Lastly, the 4P's - product, price, place and promotion - make up an organization's overall marketing strategy. Getting this vital mix right, from offerings to distribution channels to pricing, is key to attracting and retaining customers in any competitive marketplace.