Chapter 14: what is marketing?
The role of marketing
“Marketing is the management process responsible for identifying, anticipating and satisfying people´s
needs and wants profitably” Marketing involves a number of related management functions:
- Market research
- Product design
- Customer service
Key definition: marketing is the management task that links the business to the customer by identifying
an meeting the needs of customers profitably – it does this by getting the right product at the right price
to the right place at the right time.
One meaning of this word is the place or mechanism where buyers and sellers meet to engage in
exchange. The weekly fruit and vegetable market would be one example. However, the term market
refers to the group of consumers that are interested in a good or service, has the resources to purchase
it and is permitted by law to purchase it.
Consumer markets and industrial markets
Key definition: consumer markets are markets for goods and services bough by the final user of them.
Key definition: industrial markets are markets for goods and services bought by businesses to be used in
the production process of other products.
When selling a good like a computer to other businesses, the manufacturer will:
- Not focus on high-street retail stores, but use more resources on industrial exhibitions and
direct or personal selling to companies.
- Customise each computer system to the exacts requirements of each business customer
- Promote the product as being a cost-saving and profitable choice – not something that will
satisfy a consumer desire or need.
- Produce technical promotions and literature that will recognise that the business´s customers
will cery likely be knowledgeable and will be making an informed choice. Human needs and wants
A human need is a basic requirement that an individual wishes to satisfy. Physical needs include food,
water, shelter and clothing.
Wants are broader in their perspective. They are things we do not need for our survival, but they do
satisfy certain requirements. For example, a need is of someone is to feed themselves. However, a want
is to feed themselves with a high quality steak or importation sushi.
Value and satisfaction
Value is not the same as cheapness a consumer will consider that a product has a good value if it
satisfies customers with a reasonable price. If it has a good quality and is at a reasonable price then it is
a good value. not always expensive goods have a good quality.
Marketing objectives and corporate objectives
The long-terms goals of a company will have a significant impact on both the marketing objectives and
the marketing strategies. A business with long term objectives will include both profitability and
achieving the goals of social responsibility. Whereas a business with short term objectives will focus on
maximising sales. Examples of marketing objectives include:
- Increasing market share – perhaps to gain market leadership
- Rebranding a product to give it fresh appeal
- Increasing total sales levels
- Market development – selling existing products in new markets
To be effective, marketing objective should:
- Fit with the overall aims and mission of the business and attempt to achieve them
- Be determines by senior management
- Be realistic, motivating, achievable, measurable and clearly communicated to all departments in
Why are marketing objectives important?
- They provide a sense of direction for the ma