Introduction to marketing meaning, functions and importance of market

Meaning:

1. Marketing is a total system of business activities designed to plan, price, promote and distribute want. Satisfying goods and services to present and potential customers
2. It can also be defined as associated activities, which determine the customer’s demand for and the sale and distribution of goods and services.
3. Marketing is a combination of activities and process involved in moving goods and services from the producers to the customers.

1.2.    FUNCTIONS OF MARKETING

          Marketing is made up of the following specialized functions namely.

1. Advertising
2. Buying
3. Selling
4. Storage/Warehousing
5. Transportation
6. Financing
7. Risk bearing
8. Research and information
9. Standardization and grading.

1.3.    IMPORTANCE OF MARKETING

1. Improvement in standard of living.
2. Effective distribution of goods and services.
3. Provision of job opportunities.
4. Improvement in the productive capacity.
5. Linking of local communities to the world.
6. Ensures consumer’s satisfaction.
7. Export promotion.
8. Bridge gap between producers and consumers.
9. Reaction of demand.
10. Exchange of goods and services.
11. Creation of market for goods and services.
12. Contribution to profit.

1.4    TYPES OF MARKET

          There are two types of market. These are explained below.

1. Consumer Markets: These consist of ultimate consumers who buy and use products or services for their own personal or household use. This market satisfies strictly non-business wants and the ultimate goal is not profit maximization. e.g a consumer who buys food and clothing materials.
2. Industrial Markets: These are industrial or institutional organizations that buy products or services for use in their own business or to make other products. These markets constitute the industrial users. e.g. A supermarket who buy floor wax.

1.5.    MARKETING CONCEPT: This is a concept, which emphasizes the fact that the major focus of any organization is the determination of the needs and wants of the consumers and how to give them total satisfaction. The buyer or consumer is the vocal point in all marketing efforts or activities.

It is the philosophy of business that states that the customers’ want and satisfaction is the economic and social justification for a firm’s existence.

Consequently, all the company’s activities must be devoted to finding out what the customers want and then satisfying those wants, while still making profit in the long run.

1.6.    Components of marketing concept

1.       Determination of the needs and wants of the consumer.

2.       Developing of products to meet the needs.

3.       Determination of the best method of marketing.

4.       Post sales activities.

Marketing Mix

The marketing mix describes the specific combination of marketing elements used to achieve the marketing objectives and satisfy the target market.

It is the term that is used to describe the combination of the four inputs that constitutes the core of a company’s marketing system, the product, the price, the promotional activities and the distribution system.

          In his book, Basic marketing, a managerial approach, Mc. Cathy refer to four key variables in marketing as “the four Ps”. These are the four key marketing program, which can create demand and increase the sales of products.

          These variables are price, product, promotion and place.

1.7.    PRODUCT MIX

          WHAT IS A PRODUCT? A product is a set of tangible physical attributes assembled in an identifiable form, which the buyer may account as offering want for satisfaction e.g. shoes.

          PRODUCT MIX: This is a marketing decision on product which lay emphasis on quality, style, brand name, packaging and durability in order to boost sales.