Meaning of Marketing and Definition of Marketing terms

Content

1. Meaning of Marketing

Meaning of Marketing

Marketing is life, this connotes that everything man does on earth revolves around marketing. When a man’s need is met with the exchange of what the partner possesses, then marketing has taken place. Marketing starts from and with the identification of felt need and satisfaction if such at a profit.

Scholar around the world has defined marketing as follows:

According to the American Marketing Association(AMA); “Marketing is the performance of business activities that direct the flow of goods and services from the producers to consumers or end-users”.

According to Boone and Kurtz “Marketing involves analysing customer needs, securing information needed to design and produce goods or services that match buyers expectations, and creating and maintaining relationships with customers and suppliers “.

According to the Institute of Marketing London “Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably”.

The principle of marketing is anchored on exchange and marketing creates the exchange process through the performance of the following activities: buying, selling, transportation, storing, financing, risk talking, standardization and grading, obtaining market information.

The marketing concept is said to be based on three fundamental principles which are:

i. Identifying and satisfaction of consumer needs.

ii. Satisfaction of consumer needs through an integrative effort;

iii. Focus on long term objectives as opposed to short- term success.

It is essential to note that marketing is not the same as selling. Marketing is macro while selling is micro, that is, marketing begins at the period when a man decides to satisfy his needs and wants with an exchange.

Performance Objectives

Students should be able to explain:

          1. Meaning of:

           i. needs,

           ii. wants,

           iii. demands,

           iv. products,

           v. exchange transactions

           2. Markets and Marketing management.

Content

1. Marketing terms

i. needs,

ii. wants,

iii. demands,

iv. products,

v. exchange

vi. transactions

2. Markets and Marketing management.

Definition of Marketing Terms

Marketing terms are referred to as technical words, jargons or professional expressions or statements or symbols generally recognised by marketing professionals. The following among others are marketing terms:

(i) Need: Need is essential, not extravagant. Need is basic and is a state of felt deprivation of some basic satisfaction. Need is immediate, necessity, urgent, they are pressing. The point is that a person may not need what he wants but may want what he needs.

(ii) Wants: Wants are desires, expectations, wish, cravings, affection and most often extravagant. They are not immediate nor necessity as needs. For instance, the need for school sandals against want for the expensive and extravagant designer shoe.

iii. Demands: In economics term, demand means the quantity of a commodity that a consumer is willing to buy and able to buy at a given price and at a particular time. Wants without a purchasing power and willingness to part with funds to satisfy it is not a demand but a gift.

iv. Products: Products connotes anything that can be offered to someone to satisfy a need or want. It is what is given in exchange for something. Products are both tangible and intangible, visible or invisible. Tangible products are what can be seen such as a textbook, car, school uniforms etc. While intangible products are services such as teaching, laundry services, banking transactions. Services are consumed as they are produced while products can be stored in inventory.

v. Exchange: This is the commodity or something given to get something. It can be in form of money, time, talents, resources, materials etc. and before the advent of money, there was trade by barter. Trade by barter simply means exchange of what someone has with or to get what other does not have.

vi. Transaction: This connotes negotiations, business dealing and management. This is the process of what transpires between a client and service provider, a buyer and seller, a retailer and wholesaler, a teacher and a student.

vii. Market: This comprises all the potential customers who are in need or want of a particular product or item or people who are willing and able to engage in a business transaction in exchange to satisfy the need and want.

viii. Marketing: It is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.

ix: Utility: It is the consumer’s estimate of the products overall capacity to satisfy felt needs. This can be in term of grading of the product from the most need satisfying to the least need satisfying. It is the maximum satisfaction derived from the consumption of a product by the consumer.

x. Value: This refers to the perceived rating of the product offer for the price and this also connotes the degree of satisfaction derived from the consumption of a product viz-a-viz the amount paid to exchange the product. There must be a principle of equity and fairness in value, utility and exchange.

xi. Marketing management: It is the analysis, planning, implementation and control of programmes designed to create and maintain beneficial exchange and relationships with the target market for the purpose of achieving the organisational objective(s)