Grade 7: What is Marketing?

WHAT IS MARKETING?
Posted by Anang P.Setiawan (14 May 2009)
IntroductionA Market is any set of arrangements that allows buyers and sellers to exchange goods and services. (it can be anything from a street market in a small town to a large market involving internationally traded goods)

What is Marketing?
Is marketing the same as advertising or selling?
NO
Selling or advertising is just one of many marketing functions.
So, what is marketing?

“Marketing is the management process involved in identifying, anticipating and satisfying consumer requirements profitably”.

The features of Marketing
Consumers are of vital importance.
Marketing is a process.
Marketing involves building relationships with customers.
Marketing affects all aspects of a business.
Marketing is not just about selling.
Marketing and advertising are not the same.
The main objective is profit making.

Consumers are of vital importance.
A product has a far greater chance of being a success if it satisfies consumers’needs.

Consumers are of vital importance.
A product has a far greater chance of being a success if it satisfies consumers’needs.

Marketing is a process.
It does not have a start and an end, but it is ongoing all the time. Business must be prepared to respond to changes that take place.

Marketing involves building relationships with customers.
Profitable businesses are often built upon good customer relations.

Marketing affects all aspects of a business.
E.g Production department would not continue making a products that does not satisfy the needs of the consumers at whom it is aimed.

Marketing and advertising are not the same.
Selling is just only one part of the maketing process. Before selling the products, businesses do some activities such as doing market reasearch, testing of products on consumers and design of product.

Marketing and advertising are not the same.
Advertising is just one of a number of tactics used by marketing departments. Other marketing methods include promotions such as free gifts.

The main objective is profit making.
Businesses in competitive markets must make a profit in the long run to survive.

Product Orientation
Many businesses in the past, and some today, could be described as PRODUCT ORIENTATED. It means that the business focuses on the production process and the product itself.

Market Orientation
A MARKET ORIENTATED business is one which continually identifies, reviews and analyses consumers’needs. It is led by the market.
Consumers are the central to a firm’s decision making.

Advantages of a market orientated business
It can respond quickly to changes in the market because of market information.
Stronger position to challenge the new competitors entering the market.
Confident to launch a new product.
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