Defining Marketing for New Era


By

Supreet Ahluwalia
Vivek Joshi
Senior Lecturers
Department of Business
Manipal University Dubai Campus
Block #7 International Academic City Dubai
United Arab Emirates
 


In today's competitive environment a lot of emphasis is laid on the marketing, we find every organization carrying out many marketing activities. Hence, it is important for us to understand what market is. What marketing is? Moreover, how is it different from selling? We shall discuss all the important concepts of marketing and will discuss the development of marketing over a period. Effort for understanding new connotations and paradigms of marketing will also be made.

Introduction –

Welcome to the wonderful world of marketing! Marketing is not a new word but evokes feelings of freshness each time it is used. For there is so much happening in this field that even the oldies have something new to learn every day. In your class itself, I am sure that there are quite a few students opting for marketing than any other discipline. Surely, there must be something in this word marketing, that everyone feels attracted to it. Let us move little deeper inside marketing.

Marketing is ancient art. The first marketing transaction can be perhaps attributed to Adam and Eve. Its emergence as a management discipline is of relatively recent origin. In addition, within this relatively short period, it has gained a great deal of importance. In fact, today marketing is regarded as most important of all management functions of business.

All of us involved in marketing in one-way or the other. Can you describe how the marketing evolved since its inception? It has taken a long time before marketing reached the stage what it is today!

Now, let us see some definitions of Marketing –

  • Much of marketing is concerned with the problem of profitably disposing of what is produced.
  • Marketing is the economic process by which goods and services are exchanged between the producer and the consumer and their values determined in terms of money prices.
  • Marketing originates with the recognition of a need on the part of a consumer and terminates with the satisfaction of that need by the delivery of a usable product at the right time, at the right place and at an acceptable price.
  • Marketing is so basic that it cannot be considered a separate function. It is really the whole business seen from the point of view of the final result, i.e., from the point of view of the customer.
  • Marketing is a viewpoint, which looks at the entire business process as a highly integrated effort to discover, create, arouse and satisfy consumer needs.
  • Marketing is the delivery of a standard of living to society.

American Marketing Association – "It is the process of planning & executing the conception, pricing, promotion & distribution of ideas, goods & services to create exchange that satisfy individual & organizational goals"

Many people think that marketing and selling mean the same thing. Others think that marketing is the same as selling and advertising, still others have a notion that marketing has something to do with making products available in the stores, arranging displays and maintaining inventories of products for future sales. Actually, marketing includes all these activities and many more.

Marketing is a key function of management. It brings success to business organization. A business organization performs two key functions producing goods and services and making them available to potential customers for use.

An organization business success largely depends on how efficiently the products and services are delivered to customers and how differently do the customers perceive the difference in delivery in comparison to the competitors. This is true of all firms – from large business enterprises to small firms, from multinationals operating in different countries to small firms operating in small markets, from giant enterprises like Sony, Lever, General Motors to the next-door grocery shop. Quality production and efficient marketing are the key success factors in building sustainable competitive edge for every business corporation.

"Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others" - Philip Kotler

The Chartered Institute of Marketing defines Marketing as -"Marketing is the management process for identifying, anticipating & satisfying customer requirements profitably."

Peter Drucker -There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim is to know and understand the customers well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

Marketing In the New Economy

What is new economy? Is it something different from the old economy?

With the emergence of marketing, we also witness the emergence of new economy characterized by the following:-

  • A substantial increase in purchasing power.
  • A greater variety of available goods and services.
  • A great amount of information about everything.
  • A great ease in interacting and placing orders.
  • An ability to compare notes on products and services.

Today's companies also have new capabilities as given below:-

  • Ability to operate powerful information and sales channels.
  • Ability to collect fuller and richer information about markets, customers, prospects, and competitors.
  • Faster internal communication amongst employees.
  • Two-way communication with customers and prospects.
  • Send ads, coupons, samples, and information to customers.
  • Customize offerings and services to individual customers.
  • Improved, purchasing, recruiting, and training.
  • Improved external communication.
  • Improved logistics and service quality

Have a close look at Figure wherein major developments that have taken place in each decade have been depicted for nearly last fifty years. The entire growth has been fuelled by the economic growth of the last half a century. The focus in the early fifties was on marketing of consumer goods, which shifted to industrial marketing. The latter development was largely due to increase in size and number of firms.

With the growth in maturity of both the consumer and the supplier, a new school of marketing in the form of non-profit and societal marketing emerged in early seventies. The business realized that they have a larger role to perform than mere profit making.

With the changes in life style and enhanced standards of living, newer and newer services hit the market place. From education, communication, consultancy to Medicare and health — all kinds of services were being offered in the market. The marketing of services had arrived.

Marketing today knows no borders. From mere exporting, the firms had now acquired global orientation to herald the era of global marketing. For MNC's the entire world is a single huge market. It was time now that some of these MNC's, as Toyota, Honda, Sony, Mercedes, etc became household names.

Customer with a wide choice and variety of products is virtually the king in the market today. It is for his satisfaction that the firms compete with each other. No wonder new dimensions to marketing like Customer Relationship Management have been added. Not only the firms want the customer to come to them but also retain him for future. Some of the firms want to reach the customer directly eliminating the intermediaries—the concept of direct marketing.

Yet another facet of marketing has emerged with the advent of internet and revolutionary changes in communication technology- the online one to one marketing. E-commerce and e-marketing are the future of the marketing. In fact, the marketing of twenty first century will be greatly influenced by the new technologies in the field of communication.
 


Supreet Ahluwalia
Vivek Joshi
Senior Lecturers
Department of Business
Manipal University Dubai Campus
Block #7 International Academic City Dubai
United Arab Emirates
 

Source: E-mail March 9, 2008

          

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