What is Marketing?What does the term marketing mean? Marketing must be understood not in theold sense of making a sale - selling - but in the new sense of satisfying customer needs.
Needs. Wants and Demands The most basic concept underlying marketing is that of human needs. A human need is a state of felt deprivation. Humans have many complex needs. These include basic physical needs for food, clothing, warmth and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression.
Products and ServicesPeople satisfy their needs and wants with products. A product is anything products that can he offered to a market to satisfy a need or want. Usually, the word product suggests a physical object, such as a car, a television set or a bar of soap. However, the concept of product is not limited to physical objects - anything capable of satisfying a need can be called a
Value, Satisfaction and Quality Consumers usually face a broad array of products and services that might satisfy a given need. How do they choose among these many products? Consumers make buying choices based on their perceptions of the value that various products and sendees deliver.
FUNCTIONSIn order for the marketing bridge to work correctly -- providing consumers with opportunities to purchase the products and services they need -- the marketing process must accomplish nine important functions
4ps of marketing product Price Place promotion
Buying people have the the opportunity to buy products that they want.
Selling producers function within a free market to sell products to consumers.
Financingbanks and other financial institutions provide money for the production and marketing of products.
Storage products must be stored and protect ed until they are needed. This function is especially important for perishable products such as fruits and vegetables.
Transportationproducts must be physically relocated to the locations where consumers can buy them. This is a very important function. Transportation includes rail road, ship, airplane, truck, and telecommunications for non-tangible products such as market information.
Processingprocessing involves turning a raw product, like wheat, into something The consumer can use -- for example, bread.
Risk-TakingInsurance companies provide coverage to protect producers and marketers from loss due to fire, theft, or natural disasters.
Market InformationInformation from around the world about market conditions, weather, conditions price movements, and political changes, can affect the marketing process. Market information is provided by all forms of telecommunication, such as telecommunication television, the internet, and phone.
Grading and StandardizingMany products are graded in order to conform to previously determined standards of quality. For example, when you purchase US No. 1 Potatoes, you know you are buying the best potatoes on the market.