Marketing can be explained as a managerial and social process through which demands and wants of an individual and groups are fulfilled by developing and trading products. This assignment will recognize the important concepts involved and applied in this definition.
Core Marketing Concepts
Philip Kotler has defined the modern marketing by saying "Marketing is a process of social interaction and management process where individuals or groups get what they need or want through the creation or exchange of things with a value among them." The Analysis of this definition can be described by 8 major core marketing concepts,
Marketing activities exist because of the needs of someone that cannot be fulfilled. Marketing tries to meet someone's needs as a user. The need is the basis of satisfaction in human life. The need is in a state of mind which indicates the state of deprivation and anxiety.
Needs are physiological properties. Humans need food, shelter, clothing, price, belonging, and so on. Needless to say. It exists in every human being. In addressing the problem of physiological pressure, the need can reduce the pressure by fulfilling the requirement either by obtaining or using it.
Wants are an option to meet certain needs. There are certain satisfaction levels to meet certain needs. For example, food is a necessity and food can be obtained with a variation in tastes and options such as rice, bread, noodles and so on. This taste and choice are considered as wants. It can be a fact that the needs can be fulfilled by using different desires.
The better choice is the cause of high satisfaction to the user. Wants is a lot, but the needs are limited. For every need, there is plenty of wants. Marketers need not focus on needs but rather focus on diversity and creativity to meet their wants.
Demand is a requirement for certain items supported by the capability and readiness to purchase it. It is constantly stated in relation to time. Wants cannot be transferred in demand. As wants are supported by the capability and readiness to purchase can change as demand.
Marketers try to manipulate the demand by creating attractive products that are reasonable, and readily available. Marketing management is concerned about managing the demand and its period. Marketing management is also known as management of demand.
The product can be explained as a bond of physical and psychological satisfaction. Products include core products (basic or value content), features of the product (packaging, colors, type, labeling, branding, etc.), and services related to the product (warranty, after-sales service, and free home delivery, etc). Therefore, a significant product is a service package or benefit. The focus of the marketers should be on the products services and benefits, rather than the product itself.
Through products, marketers can meet the wants and needs of the targeted audience. Generally, it can be defined as something that is offered to fulfill the wants and needs of someone. Products include goods and services. Typically, the product is considered as a tangible item, for example, car, motorcycle, computer, food, etc. Though, the importance of the product depends on the services provided by it. Many times people do not buy the product but buy its services. For example, we do not buy a pencil, we buy its writing services. Similarly, we don’t buy train, but transport services. Only having an insufficient product, the product must satisfy our will and desires. Therefore, physical products are only vehicles or mediums that offer us services.
As with the help of product’s definition, it can be said that anything that meets the needs and wants can be considered as a product. Therefore, the product can be in the form of physical objects, people, ideas, activities, or organizations that provide any type of service to meet someones wants and needs.
- Utility (value), Cost, and Satisfaction:
The meaning of utility is the overall ability of the product to meet the requirements of needs and wants. It is a concept guide for selecting products. Each product has varying utility levels. As with the utility level, products are listed from the maximum satisfying needs to the minimum satisfying needs.
The utility is an approximation of the user's overall product capabilities to meet its needs. Buyers buy such products, which have more utilities. Utility, therefore, the strength of the product to meet certain requirements.
Cost means product price. It is said to the product’s economic value. The amount paid by a customer to get a specific service is considered as a cost. The utility of the product is compared to the cost that customer has to pay. Buyer will choose any of the product that will offer maximum value in utilities for a certain price. Buyer tries to maximize value, which is a product utility per dollar.
Satisfaction means satisfying the needs. Satisfaction can arise at the time when buyer understands that the product has delivered more value as compared with its cost. Satisfaction is meeting the expectations of the buyer. Satisfaction released the stress caused by unmet needs. In short, more utilities/values with less cost are more satisfying.
- Exchange, Transaction, and Transfer:
The exchange is at the midpoint of marketing. Marketing management attempts to achieve the needs and wants through exchange. Individuals can fulfill their needs and wants in many ways, among others: - self-generating, stealing, suppliant, or through the exchange.
Marketing appears at the time when people are willing to fulfill their wants and needs through the exchange. The exchange is the process of receiving the preferred product from someone who is offering the same by asking something in return. Getting a pen by paying its cost is an exchange example.
The exchange is can be done when below-mentioned conditions are fulfilled:
- Presence of minimum two parties
- There should be something valuable for each party
- Each party should be able to transmit and communicate.
- Each party should be able to receive or discard the exchange offer
- Each party considers that it is reasonable to work with other parties
Transaction and exchange are different from each other:
The exchange is considered as a process and not an event. It indicates that people are discussing and stirring towards the contract. When the contract is getting hold of, it is a transaction. Transactions are decisions that have been achieved or commitments are made.
For instance, Encik Ahmad paid RM10,000 and got the motorcycle. There are numerous forms of transactions, such as commercial transactions, civis transactions, transactions of goods, charities, monetary transactions, employment transactions, or religious transactions.
Following conditions are involved in transactions:
- Minimum of two things is worth it
- Approved on condition
- Contract period
- Place of contract
- A law contract to ignore suspicion
Transfers involve getting something without any offers or offering anything without any returns. For example, Encik Ali gave a gift to Mr. Chan. The transfer is a one-way process. But, pure transfers barely be found in practice. A transfer of something with unspecified hopes. The proposal of money for beggars is to gain the favor of God.
Donors make donations and receive special honors, rewards, and invitations, or special influence on administration. Prizes are rewarded in terms of appreciation, good behavior, say, "thank you" or in the hope that the recipient of the prize will give the same in the future. Nearly all the transfers are similar to transactions. Transfers and transactions are necessary for marketers.
- Relationships and Network:
Nowadays, more priority is given to marketing practice for building a relationship. Marketing practices depend on a build of relationship that can be regarded as relationship marketing. Relationship marketing is known as the exercise of constructing a long-term gainful or profitable relationship that is satisfying the main parties such as distributors, suppliers, customers, and others to maintain their long-term priorities of the business.
A smart marketer seeks to maintain long-term relationships, win-win and trust relationship with important suppliers, distributors, and customers. Relationship marketing requires faith, promise, collaboration, and maximum level of understanding.
The result of relationship marketing grows into the economic, cultural, social, and ties between the parties. The manager of marketing is in charge of creating and sustaining long-term relationships with the different parties engaged in the business.
The major reason behind relationship marketing is the network. The network of marketing is comprised of companies and participants who support it – distributors, customers, universities, colleges, advertising agencies, employees and others - whose part is important for business success. It is a constant understanding of relationships with stakeholders. A positive network of relationships with the main stakeholders brings the benefits of the performance of marketing over time.
- The market, Marketing, Marketer, and Prospect:
In Marketing management, the words that are regularly used are marketing, markets, prospects, and marketers. The market contains potential customers who share certain needs or wants to be willing to interact in an effort to meet these requirements of needs and wants.
Marketing is the management and social process, where an individual or group of people receive what they want and need by creation and exchange of products and values ??with others.
A marketer is someone looking for prospects to involve in exchange. Here, the vendor can be a marketer because he/she wants others to be involved in the exchange. Usually, a business unit or a company can be called as a marketer.
A prospect is the one who is known as a potential marketer who is able and eager to involve in the process of exchange. If the exchange is between the two companies, then both of them can be called as marketers and prospects. Usually, consumers or customers who purchase products from a company to meet their wants or needs can be called as prospects.
Marketing Concept is a principle that states that everyone must examine their customer’s needs and after that make the decision to meet those needs, in spite of competing. Today marketing concept is accepted by many people, but always it is not accurate. The needs of the manufacturer should only be considered to meet the needs of the user. For understanding the marketing concept, it should be kept in perception by examining the original philosophy that had once become dominant. Increased sales of various products are no longer be trusted to sell. With increased incomes, customers are able to choose and buy only the right products to meet their shifting needs, and these needs are not so clear and obvious.
In response to the smart customers, firms begin to practice marketing concepts that focus on the needs of the customer before creating the product, coordinating the functions of the company to consider those needs and realize profitability by effectively fulfilling needs of the customer in the long run. When firms begin to accept marketing concepts, they set up a distinct department of marketing whose purpose really satisfies customer needs.
Marketing concept begins with the discovery the needs and wants of users. Producing the products that will meet the wants and needs of users and supply maximum fulfillment. The concept of "Customer is the King" comes from this perception. In the advancement process, numerous organizations change the way they think to match marketing concepts. Under the concept of marketing, the consumers want and needs are the soul of delivering and guiding those goods that can fulfill the needs of consumers more professionally and successfully as compared to other competitors. The marketing concept is user based and hopes to attain long-term profit by creating a satisfied users network. Companies that practice marketing concepts, their activities are focused on meeting the needs and wants of customers.
The importance of marketing concept
Business companies are always steering their activities of marketing under some of the marketing concepts such as; production concept, marketing concept, product concept, community concept and sales concept.
The concept of expenditure
The concept of expenditure is the oldest concept in which entrepreneurs produce customers the thinking of goods that are interested only with low prices, wide and easily accessible. The interest of customer and packaging are not vital to producers. They only concentrate on production in maximum quantity and try to provide on large scale. They are trying to attain maximum production competence and create broad coverage in distribution. This concept can be accepted in the following circumstances.
Consumers are in favor of products that provide the highest quality, presentation and features are the concepts of product concepts. They consider that consumers are eager to pay more amount for services or goods that have added value. Companies that focus on product concepts focus on upgrading the product. They continually enhance the product’s features and quality for attractingdn satisfying customers. Too much focus on the product can result in losing the track or failure of the product. For example, biscuit manufacturers produce new biscuit brands with different colors, materials, and packaging, regardless of the interests and tastes of consumers. This may fail in the market if the cookies are insufficient for the primary user.
In the selling concept, manufacturers consider that forceful influence and sales are the spirits of the success of their business. They consider without forceful methods that they can not trade or sustain in the market. They concentrate on searching different ways to sell their products. They think that users themselves will deny purchasing products of their own company. Therefore, they make maximum efforts in advertising to sell their products. Sales agents for soft drinks/ health drinks, electrical equipment, money laundering for religious or social purposes, insurance agents lie under this category. This is the reason we receive so many calls from insurance agents, however, insurance is a thing to ask. In short, the selling concept thinks that consumers themselves will not purchase enough of company’s product, until unless the company makes forceful sales and efforts in promotion.
With increasing awareness of business social responsibility, attempts have been made to make the business organization socially responsible. Environmental degradation, excess resource exploitation, and rising consumer movements require recognition and marketing linkages based on social responsibility. The social concept is a continuation of the marketing concept to protect the community and the product users. Under the concept of community business organizations must give priority to the consumers wants and needs and distribute goods and services properly in order to maintain the customer satisfaction and the well-being of people of the society.
Other marketing definitions are company activities related to buying and selling of products or services. The process of communication the worth of the product to customers is known as marketing. It comprises advertising, sales and delivery of products to the public. People working in the company's marketing department are trying to reach the target audience by using mottos, packaging designs, personality support and media acquaintance. Four important 'Ps' of marketing is price, product, promotion, and place.
The marketing mix is the basic concepts of marketing management. To encourage sales and attract consumers, each manufacturer has to focus on the basic elements/components. These are products, prices, the channel of distribution (venues) and techniques of sales promotion. The merger of these elements of marketing is known as Marketing mix.
Marketing Mix is the basic concepts in marketing management. To increase sales and attract consumers, all the manufacturer has to concentrate on some basic elements. These are products, prices, techniques of sales promotion and channel of distribution (venues). The merger of these elements of marketing is known as Marketing mix. It is a merger of four inputs (4 P) that makes the center of the marketing system. This marketing mix is considered a marketing tool to achieve marketing targets. The business had to make use of four elements of the marketing mix in a balanced way to attain its marketing objective in terms of support of consumer and sales volume. The marketing mix is a mixture of four elements. The product is an important element in the marketing mix. Prices, places, and promotions are other element involved in it. Marketing mix shows the perfect mixture of 4 Ps to achieve goals of marketing.
For every businessman, the marketing mix definition is placing the correct product in the correct place, at the right price, at the perfect time. Marketing is a plan that includes elements that can be controlled from product marketing plans commonly referred to as 4Ps: products, prices, places, and promotions. These four elements are aligned to the exact combination that meets the customer's needs while making sufficient revenue. All the companies have to define its marketing mix to meet customer needs. Mixed marketing is a valuable tool for all the firms or companies.
Products are seen as items that meet the needs or wants of the user. It is a significant benefit or imperceptible service. Imperceptible products are services based on the economic industry, hotel industry, and travel industry. In other words, it can be said that products that cannot be touched. Significant products are things that can be touched or have a physical presence.
Product mix includes preparation, emerging and creating the right product and services that company promotes. It handles various product’s stability and other various qualities and features. In short, planning of product and its development contains results such as product quality, product size, product design, production volume, packaging, warranty and after-sales service. Along with this, they have to decide on the 'market segment' they mean at their geographical location, income, and age.
The price is the money that customer is ready to pay for buying a product. It is important because it defines the profit of the company and so on, survives. Regulating prices has a deep influence on the strategies of marketing, and depends on the product’s price elasticity, often the demand is affected and with this sales also. The marketer must fix the price that the customer is ready to pay and the appropriate price that can fulfill customers satisfaction. At the time of price setting, the marketer should know the customer who is considered the value of the product. Managers need to think of specific questions such as: what is the product in the eyes of the buyer, is there a price point set for the product or service in this area, how the company’s price will be compared to their competitors. Along with that the price must cover costs and make profits but should be insufficient to attract customers.
Promotions mean communicating with the people to impact their buying decision of buying company’s service and products. Promotion consists of essentials such as sales promotion, personal sales, and advertising. Marketing managers use advertising tool to convey messages to the customers with the help of t6elevision, magazines, and newspaper. Personal sales are another way to communicate with users and consist of people directly to the interactions of people between buyers and sellers. All the communication methods are involved in sales promotion with users excluding personal sales and advertising. It contains free samples, sales premiums, contests, exhibitions, exhibitions, and exhibitions.
Place means to offer products in an easy-to-access place for users. Numerous strategies such as exclusive distribution, select distribution, intensive distribution, and the franchise can be used by marketers to accompaniment other marketing mix features. It encompasses the activities required to spread the goods ownership to customers and provide items at the correct place and time where the product must be shown and are accessible to customers. It is to make the availability of products at the correct place, at the correct time in the exact quantities.
Purpose of marketing mix
The rudimentary determination of defining a marketing mix is ??to encounter the customers wants and needs in the operative method. Changing needs and wants of customers and ecological factors, the marketing mix has transformed. Thus, marketing mix is said to be a dynamic concept. It focuses on how to fulfill customers' needs. Furthermore, the marketing mix drive is ??to increase sales, increase profits and return, meet customer needs, increase demand for consumption and more.
In conclusion, a marketing mix is ??a valuable tool for a firm or company. This marketing mix is ??a tool of marketing to achieve the targets of marketing. The use of four elements of the marketing mix in a balanced way to attain marketing objective in terms of customer support and sales volume.
Marketing mix involves 4 Ps ??promotion, price, product, and place. While marketing the product of company they have to make the right mix of products, sold at the correct price, at the right place, using the appropriate promotions. To make proper marketing mix, the business needs to fulfill the subsequent requirements such as products that have the right characteristics. For example, it should look attractive. In addition, there should be accurate in the price as consumers have to purchase in bulk to generate a healthy profit. Finally, target groups need to know about the product’s availability and its existence considering its promotion.
The marketing importance is the firm’s philosophy that they should recognize the needs of their customers' needs and after that, they should work on fulfilling those needs, in spite of thinking about their competition. With the increase in the discretionary income, customers are able to choose and buy the right products to meet their varying needs, and these requirements are not very clear.
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