Marketing Definition

 

Throughout the marketing concept several stages and the evolution of the concept of a time period to another, though marketing has arisen with the emergence of commercial exchanges since ancient times, and despite the evolution of marketing studies, but there is no consensus on the definition of marketing,The traditional definitions Marketing focused mostly on physical transportation of goods from centres of production to consumption centres As modern definitions It has many important things and when the definition of marketing.

 

In 1947 I knew "American Marketing"

Activities Project That guide the flow of Goods and services From Producer to consumer Or industrial buyer.And maligned on this definition does not include a lot of marketing activities, such as pricing, promotion and planning of new goods.

The modern definition of marketing has been defined by the American Marketing Association, 1995.

That the planning and implementation of visualization of pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the needs of individuals and enterprisesand of that definition to conclude that marketing is the management process is designed to execute Exchange operations in favour of individual and organization And marketing not only goods and services but also to ideas and principles.It is important here to distinguish between sales and marketing The sale is part of marketing,The sales concept Focusing on persuading the consumer to purchase the good or service produced in advance either Concept catalog The role of the Organization to detect the needs and wishes of the consumer and try to develop a product or service satisfy their needs and desires for profit and hence conclude that companies that embrace the marketing concept is more success and profitability.

 

While Stanton

Knows marketing that planning and implementation of pricing, promotion and distribution of ideas, goods and services to provide the full Exchange client needs and achieve the objectives of the marketing group of functions designed to facilitate the exchange of goods and services.

 

While PhIlip Kotler

Defines marketing as a human activity directed at satisfying needs and desires through a swap. This definitionContains several key elements of marketing and

 Marketing human activity is concerned with individuals.

 Marketing aims to satisfy the desires and needs of individuals.

 Marketing is between two parties in the framework of the interactive process.

 

Saturation through the interactive process so the ways other such as get satisfaction product through donation or grant or theft is not a marketing action, so the definition of Kotler did not say how the application in business organizations and marketing jobs and do marketing has to do with the environment and this is the deficiency in this definition.

 

While Rosenberg Rosenberg

Defines marketing as a process of harmonization on the basis of capacity and objectives through product can provide the marketing mix (product planning, pricing, distribution, promotion) to meet the needs and desires of consumers within the community.

 

While custom Mc.Carthy

Marketing as social process that directs the flow of products and services from the producer to the consumer in a way that ensures the correspondence between supply and demand and lead to the fulfillment of the objectives of the community.

 

Either Laufer and Lindon

He knew the marketing as a means to create and develop their markets or consumers or clients.

 

Known Paul Mazur

Marketing that deliver a better standard of living.This definition refers to the social and economic role of the marketing effort through its sense of new needs and guide production system towards the production of goods and services that satisfy those needs and to rationalize the use of these goods and services to build an integrated society in both economic and social.

 

Thus, this definition focuses on the social and economic framework for marketing and, finally, we would like to point out that most previous definitions did not mention has helped to understand the dimensions and aspects of the marketing process, but each looks to marketing from a certain angle, reflecting concern the definition and methodology.

 

Based on the foregoing, it can be a definition of marketing that focuses on various aspects highlighted by the previous definitions and consistent with modern concept

 

Marketing interactive human activity to plan and implement a set of activities or functions that contribute to the flow of goods and services from the producer to the final consumer or industrial buyer the satisfy the needs of all parties related to the activity within the framework of the environmental parameters within the community.

 

The Importance of Marketing Activity.

Marketing plays a vital role in our daily lives, you are marketing active when you buy a certain commodity and differentiates between different types of them, when you see an advertisement by means of different ads, and when answering questions, express your opinion on a particular good or service, and not just marketing activity to individuals but organizations of various kinds as well as society in General, so the There are several factors that underscore the importance of studying marketing and the high cost of marketing activity.

 

Where The cost of marketing activity for almost 50% of the price paid by the consumer for a product or service And thus it is necessary to study the marketing activities that capture such item price to reduce the cost of marketing leading to increased net profit from the sale of the unit, but in the current period thatThere is a significant rise in the cost of marketing As a result of the tendency of the consumer and his interest in fashion, and increased attention to the packing of goods, increased consumer demand for services provided by producers, distributors and consumer expectation to increase new and add the current development, it all led to an increase in marketing costs, the continued increase in marketing costs represent vs. consumer freedom to choose for the good or service when you get them, so that the consumer can choose between the many species and formations and to enjoy many of the services when the product

 

The question now:Can you reduce marketing costs?There is no doubt that there is great difficulty in reducing marketing however, this could be by lowering fixed costs of marketing activity, increase inventory turnover rates, and reduce the exhaust and sluggish sales, and increase the flow of goods to the consumer, and generally improve performance on the job marketing.

 

 

Marketing activity provides opportunities for employment:

 

Provides marketing activity of many employment opportunities, marketing activities absorb part of employment in the United States for example The proportion ranged from working in marketing activities between 30-35% of the total number of employees,Also works in the commercial sector in Saudi Arabia for about 28% of the total workforce in Saudi Arabia.

 

And increases the importance of marketing as a source of employment, it is not only business but also applied in service organizations (health-transport-tourism-hotels-cinema...Etc.) and individuals in distribution facilities in large numbers, with many producers selling power, by marketing research and advertising agencies, which put importance of marketing activity as a source of career opportunities.

Marketing promotes innovation and growth

Marketing for the Organization to recover funds that were spent on the process of producing or buying a product and thereby guarantee the continuity and growth of the Organization and the successful marketing of goods and services encouraged organizations to development and innovation, and this requires efficient marketing activities including market research activity.

 

Marketing creates utilities

Contribute to marketing activities

Create a spatial advantage, benefit, benefit possessor y

Contribute to productive activities

In creating formal benefit

 

-The spatial utility:

Means the provision of commodity production areas where the abundance of consumption where scarcity as a result of transfers

 

-Utility:

Means of production storage from end time or from time to time need for abundance or scarcity time

 

-The spatial utility:

MeanTransfer of ownership of goods from the producer to the consumer or from the seller to the buyer as a result of the purchase and sale.

This means that functions that create temporal and spatial walhiazih utility are marketing and not productive, beneficial functions of time creates through the storage function, benefit through spatial position and benefit through the posts of possessory security purchase and sale, as illustrated in the following figure

 

                                                                           Benefit =

         Formal benefit + spatial + utility + temporal benefit of the possessory interest

 =                                                                       Saturation

 

We must emphasize the role of marketing with the production in creating a formal benefit through its production processes of planning and design of the products, on the basis of the results of marketing research and consequent identification of the needs of the consumer is the specification of the product, characteristics, forms and the quantity and timing of production and marketing in addition to the foregoing the benefits of services provided for consumers after the sale of the goods after transfer to consumers such as:Testing, installation, maintenance and repair, and these services contribute to more consumer satisfaction.

 

Marketing will increase the standard of living

Achieve marketing increase in standard of living by providing many goods and services that satisfy their needs, it does so by identifying underlying needs and try to meet and develop existing goods consistent with these needs.

 

Marketing balance between supply and demand

One of the basic tasks of marketing activity is to predict the needs of consumers of goods and services both in the short term or long term, in the light of the forecast of the quantities of such goods and services are producing additional quantities which are carried out by the consumers ' needs and consumers ' needs are varied and heterogeneous, the organizations that produce many different types of commodities, sizes colors and specifications and prices to suit different wants and needs, in the sense that marketing activity must face the demand of heterogeneous The display is also a heterogeneous.

 

Marketing activity supports theme

With progress and technological development increased specialization in production and thus increase the quality of the product and its ability to meet the growing needs of the consumer, and also increased the size, shape and type of the supply of goods and services and intensified competition, which made its great for marketing activities for products and services in markets scattered loosely coupled, as a result of increased specialization in production also increased specialization in marketing and facility specializes in the distribution, sale, transportation and storage, advertising, market research, specializing in wholesale, retail and specialized Installations in one

The marketing some features or specificities and from which it is

 

Nowhere on this attribute to certain types of goods and services and how they shop in the past and what has become today.And this attribute in the change and development and renewal of the marketing process result to meet changing circumstances and evolving markets and the improvement and development of forms and types of goods and services, and the need for their presence in different places or to the need for compliance with state laws and regulations.

And also marketing attributes

 

Characterize its competitive distribution systems

They are continually renewed the best methods to make and promote certain types of goods and services and show preference to other goods and other alternative services.And the impact of price on the buyer's decision to acquire another type, the seller is often used to increase inventory turnover and profit margin to increase sales and face competition.As the effects of the change in ownership of marketing institutions exercise requires high marketing skills and specialized capabilities

 

And characteristics of premium marketing also

A focus on people or people in the performance of its functions

And that business life is the life of the people.Goods and services must meet the needs and wishes of the people, and bought and sold by people, shopping methods and techniques understood and accepted.But despite the importance of the people in the marketing process, but it is not automatically governed by ethical standards.What people want from the goods and services or think they want is supplied by means of marketing is good or bad in the eyes of the buyer who controls personally by value and trends and regulations of States representing the interests of people and characteristics of the marketing function also.

 

Marketing-size enterprises dominated China ware.

 

Most marketing organizations, particularly among retailers and wholesale hiring of a small number of employees. even in the developed countries not to exceed the number of workers in each of five individuals and most of the owners or their respective owners. in terms of the amount of cash sales appear to be concentrated in large enterprises.In the United States, for example, a few institutions around 3% are responsible for a high proportion of sales 30%

Marketing jobs

Know your marketing functions as the marketing activities that contribute to the flow of goods and services from the producer to the final consumer or industrial buyer marketing activities include the following items

 

Product, Price, Place, Promotion

 

These elements are called The marketing mix 4ps.

Marketing Mix and falls under each of the preceding items or subcomponents, the book differed in defining marketing activities considering marketing a continuous employment start before the production of the good or service to the final consumer or buyer of industrial needs, wishes and purchasing abilities and habits, traditions and motives, and by profession, sex and geographic area in which they live, and continue marketing function during the production of the commodity is commodity production quality and quantity events at the right place and the right time at the right price, as Continue after the transfer of ownership of the product and the service to the final consumer to examine consumer acceptance for the product or service and complaints and criticisms of the product and its packaging and services provided to them in the form of installation, maintenance, repair, everything needed to do a range of marketing functions can be selected according to the following Division

 

Group functions check the transfer of ownership of the goods (utility possessory)

 

 Personal selling

 Ads

 Generate demand

 Activate sales 

 Negotiation

 Buy

 

Group functions check the physical goods transport (spatial and temporal benefit)

 

 Roll packs

 Transfer

 Grading and grouping

 Store

 

Marketing operations management include

 

 Market regulation

Supervision and control           

Planning and marketing

Marketing information and marketing research

Financing of the marketing mechanisms

Risk-taking marketing

 

A commodity planning functions include

 

Development

Service and warranty

Tebin

Diversification

 

Packaging

Discrimination

Formation

 

These posts are linked to each other and connected as a continuous activity, marketing activity before and after the production of the good.Below is a simplified presentation of the most important functions

 

Purchase : Buying

Involve the procurement function to determine the quality of the goods to be purchased and the quality and quantity, and select vendors who will buy them.From the point of view of administrators involves the procurement function on the performance of a large number of miscellaneous items that can be acquired from many different vendors and sources of supply, including negotiation and agreement on the price and times, how to pay and other terms of sales efficiency and effectiveness

 

The purchase is an interactive marketing for all defined goods, whether product or institution, or individual, or broker, or a source, or a final consumer, the buyer determines the types of goods they wish to purchase, select vendors, specification and quality goods, then the agreement of purchase or transfer of ownership to the buyer and the purchase is, inter alia,:

 

Rank or grade:

Where for each commodity levels or degrees of certain defined specifications per grade or degree, or by agreeing to the conditions and specifications required by the buyer, the purchase price is determined

 

Sample:

Gets the buyer from the seller of a product or a representative sample of the product is well represented and the purchase is

 

Direct method:

 The buyer goes to preview the product and its specifications and quality control of himself and his representative and purchase.

In General, when you make a purchase you should consider the dates of delivery of goods, pricing, and terms of purchase such as discount rates, payment schedules, payment.

 

Sale : Selling

Corresponding to each purchase sale parallel with finding prospective buyers who can satisfy their needs and desires quality, quality, quantity, time and price.Any sale or transfer ownership of the goods or services of the owner of the crops and their product to the buyer whether the dealer or broker or a final consumer, and may be sold directly or through a broker sales stages.

 

Create demand for goods: by encouraging the consumer to acquire goods, through the desire of the consumer, advertising,

 


                           Dr. Philip Kotler Answers

 

1. Which megatrends do we have to consider for the future?

The economic landscape has been fundamentally altered by technology and globalization. Companies anywhere can now compete anywhere, thanks to the Internet and more free trade.

 

The major economic force is hyper-competition, namely companies are able to produce more goods than can be sold, putting a lot of pressure on price. This also drives companies to build in more differentiation. However, a lot of the differentiation is psychological, not real. Even then, a company’s current advantage doesn’t last very long in an economy where any advantage can be copied rapidly.

 

Companies must pay attention to the fact that customers are getting more educated and have better tools such as the Internet at their disposal to buy with more discrimination. Power has been passing from the manufacturer to the distributor, and now is passing to the customer. The customer is King.

 

2. In your books, you have pointed out that globalization, hyper-competition and the Internet reshape markets and businesses. What effect are these dynamics having on marketing?

All three forces act to increase downward pressure on prices. Globalization means that companies will move their production to cheaper sites and bring products into a country at prices lower than those charged by the domestic sellers. Hyper-competition means that there are more suppliers competing for the same customer, leading to price cuts. And the Internet means that people can more quickly compare prices and move to the lowest cost offer. The marketing challenge, then, is to find ways to maintain prices and profitability in the face of these macro-trends. No country’s industry is going to hold on to its customers if it can’t continue to lead in offering the most value. And the answer has to be: better targeting, differentiation and branding.

 

At the same time, various world regions are becoming more integrated and more protective. The members of a region are seeking preferential terms from the other members of the region. But artificial trade preferences cannot last long against a substantial deterioration of value.

 

3. What is Marketing?

Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.

 

Marketing is often performed by a department within the organization. This is both good and bad. It’s good because it unites a group of trained people who focus on the marketing task. It’s bad because marketing activities should not be carried out in a single department but they should be manifest in all the activities of the organization.

 

In my 11th edition of Marketing Management, I describe the most important concepts of marketing in the first chapter. They are: segmentation, targeting, positioning, needs, wants, demand, offerings, brands, value and satisfaction, exchange, transactions, relationships and networks, marketing channels, supply chain, competition, the marketing environment, and marketing programs. These terms make up the working vocabulary of the marketing professional.

 

Marketing’s key processes are: (1) opportunity identification, (2) new product development, (3) customer attraction, (4) customer retention and loyalty building, and (5) order fulfillment. A company that handles all of these processes well will normally enjoy success. But when a company fails at any one of these processes, it will not survive.

 

4. What would you consider among the chief misconceptions about effective marketing that are still operating in today’s companies. Who isn't "getting" it?

Marketing is a terribly misunderstood subject in business circles and in the public’s mind. Companies think that marketing exists to support manufacturing, to get rid of the company’s products. The truth is the reverse, that manufacturing exists to support marketing. The company can always outsource its manufacturing. What makes a company is its marketing offerings and ideas. Manufacturing, purchasing, R&D, finance and the other company functions exist to support the company’s work in the customer marketplace.

 

Marketing is too often confused with selling. Selling is only the tip of the marketing iceberg. What is unseen is the extensive market investigation, the research and development of appropriate products, the challenge of pricing them right, of opening up distribution, and of letting the market know about the product. Thus, Marketing is a far more comprehensive process than selling.

 

Marketing and selling are almost opposites. Hard sell marketing is a contradiction. Long ago I said: “Marketing is not the art of finding clever ways to dispose of what you make. Marketing is the art of creating genuine customer value. It is the art of helping your customers become better off. The marketer's watchwords are quality, service, and value.”

 

Selling starts only when you have a product. Marketing starts before there is a product. Marketing is the homework the company does to figure out what people need and what the company should make. Marketing determines how to launch, price, distribute and promote the product/service offering in the marketplace. Marketing then monitors the results and improves the offering over time. Marketing also decides when to end the offering.

 

All said, marketing is not a short-term selling effort but a long-term investment effort. When marketing is done well, it occurs before the company makes any product or enters any market; and it continues long after the sale.

 

5. When did marketing first appear?

Marketing started with the first human beings. Using the first Bible story as an example (but this was not the beginning of human beings), we see Eve convincing Adam to eat the forbidden apple. But Eve was not the first marketer. It was the snake that convinced her to market to Adam.

 

Marketing as a topic appeared in the United States in the first part of the 20th century in the teaching of courses having to do with distribution, particularly wholesaling and retailing. Economists, in their passion for pure theory, had neglected the institutions that help an economy function. Demand and supply curves only showed where price may settle but do not explain the chain of prices all the way from the manufacturer through the wholesalers through the retailers. So early marketers filled in the intellectual gaps left by economists. Nevertheless, economics is the mother science of marketing.

 

Marketing is more of a craft and profession than an art form. The American Marketing Association and the British Chartered Institute of Marketing are independently working on professional credentials for professional marketing. They believe that tests can be constructed that can distinguish between qualified marketers and phony marketers.

 

At the same time, many people will originate brilliant marketing ideas who are not trained marketers. Ingvar Kamprad was not a marketer and yet his IKEA company is phenomenally successful in bringing good quality, low-cost furniture to the masses. Creativity is a big part of marketing success and is not limited to marketers.

 

But science is also important to marketing. Marketers produce interesting findings through marketing research, market modeling, and predictive analytics. Marketers are using marketing models to make decisions and guide their investments. They are developing marketing metrics to indicate the impact of their activities on sales and profits.

 

I would not say that marketing is more of an art, a craft or a science but rather that it has all these elements operating.

 

6. What is the mission of marketing?

At least three different answers have been given to this question. The earliest answer was that the mission of marketing is to sell any and all of the company’s products to anyone and everyone. A second, more sophisticated answer, is that the mission of marketing is to create products that satisfy the unmet needs of target markets. A third, more philosophical answer, is that the mission of marketing is to raise the material standard of living throughout the world and the quality of life.

 

Marketing’s role is to sense the unfulfilled needs of people and create new and attractive solutions. The modern kitchen and its equipment provide a fine example of liberating women from tedious housework so that they have time to develop their higher capacities.

 

7. You say that marketing must play the lead role in shaping business strategy. Do you think that business executives are fully aware of the role that marketing can play in helping the company succeed?

CEOs tend to see marketing as a department that comes into play after the product has been made and the remaining job is to sell it. We argue instead that marketing must be seen as setting the strategic direction for the firm. Peter Drucker stated it well over thirty years ago: “A company has only two basic functions: innovation and marketing.”

 

8. You have said that if a company’s marketing department can’t propose any new opportunities, they should be fired. But are there many good opportunities still left?

Granted that the absolute number of opportunities in an economy will vary with the business cycle and the technology cycle. Opportunities will be scarcer during recessions and when new technologies have not yet emerged.

But there are always opportunities! Just look at the new products that continue to appear in catalogs such as Sharper Image or Innovation or Fascination. Any company with a product or service should be able to think of new ways to modify it, combine it, offer different sizes, or add new features or services.

 

Not only can an offering be reshaped for different markets but the offering can also be seen in a new context.

I published Lateral Marketing (co-author Fernando Trias De Bes) which offers a creativity approach that differs from using vertical marketing (i.e., segmentation) to finding new ideas. Vertical marketing works within a given market; lateral marketing instead visualizes the product in a new context. Many examples can be cited. Today we can buy food at gas stations; we can do our banking in a supermarket; we can get access to a computer at cybercafes; we can take pictures with our cell phone; we can chew medical gum to ingest certain medicines in our body; we can eat cereal in the form of a candy bar. I can’t believe there aren’t opportunities. I can only believe that some marketers lack the ability to see opportunities. Marketing doesn’t have to fail during a recession, only marketers fail who lack an imagination.