In this essay we will discuss about ‘Marketing’. Find paragraphs, long and short essays on ‘Marketing’ especially written for college students.
Essay on Marketing
Essay Contents:
- Essay on the Definition of Marketing
- Essay on the Concepts of Marketing
- Essay on the Evolution Process of Marketing
- Essay on the Approaches to the Study of Marketing
- Essay on the Process of Marketing
1. Essay on the Definitions of Marketing:
The term ‘marketing’ has been defined in various ways by different authors.
Some of them are given below:
1. “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to the present and potential customers”– W.J. Stanton.
2. “Marketing is the primary management function which organises and directs the aggregate of business activities involved in converting the customers’’ purchasing power into effective demand for a specific product or service and in moving the product or service to the final consumer or user so as to achieve the company’s profit and other objectives”— Leslie Rodger.
3. “Marketing is the creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet than. It co-ordinates the resources of production and distribution of goods and services, and determines and directs the nature and scale of the total efforts required to sale maximum production to the ultimate user”- U.K. Institute of Marketing.
4. “Marketing is the process of determining consumer demand for a product or service, motivating its sales, and distributing it into ultimate consumption at a profit”- E.F.L. Brech.
The above definitions refer to the modern concepts of marketing function as against the traditional definition by F.E. Clark who defines the term as :
“marketing consists of those efforts which effect transfers in ownership of goods and care for their physical distribution.”
Thus, we can state that marketing is the process by which the products are made available to the ultimate consumer from their point of origin. It consists of all those activities which are meant to ensure the flow of goods and services from the producer to the consumer. In economic terms, marketing covers those activities which relate to the creation of time, place, and possession utilities. Marketing, therefore, is nothing but performance of business activities that direct the flow of goods and services from producer to the consumer.
2. Essay on the Concepts of Marketing:
Elements of Marketing Concept:
A company adopting the marketing concept has three distinguishing elements around its marketing function:
1. It has consumer-orientation in its business planning and activities.
2. It focuses its attention to corporate objectives, including profit. Corporate objectives are given top preference and departmental goals act as the means to achieve corporate goals.
3. It adopts the systems approach in planning, organising, controlling and coordinating its entire business as one system to achieve the overall corporate objectives. We have integrated corporate strategic plans as well as corporate operating plans.
Then there are departmental or functional plans such as production plan, financial plan, marketing plan, etc., and these are duly co-ordinated and integrated by top management. Thus, we have integrated marketing activities throughout the firm.
Customer-orientation, profitable sales volume and integrated marketing activities are the three pillars of the marketing concept. Under the marketing concept, i.e., customer-oriented marketing activities, it is clear that supply becomes the function of demand. Demand is the central controlling factor, and marketing management essentially becomes demand management.
Benefits of Marketing Concept:
Benefits of new market-oriented business approach are:
(1) Customer needs, wants and desires receive top consideration in all business activities.
(2) Greater attention is given to the product planning and development so that the merchandising can become more effective.
(3) Demand side of the equation of exchange is honoured more and supply is adjusted to changing demand. Hence, more emphasis is given to research and innovation.
(4) Marketing system based on the marketing concept assures integrated view of business operations and indicates interdependence of different departments of a business organisation.
(5) Interests of the enterprise and society can be harmonized as profit through service is emphasized.
(6) Marketing research is now an integral part of marketing process and it is a managerial tool in decision making in the field of marketing.
Selling Concept v/s Marketing Concept
The following are the prominent differences between selling concept and marketing concept:
(1) Selling focuses on seller’s needs, marketing on buyer’s needs.
(2) Selling is preoccupied with seller’s need to convert product into cash; marketing with the idea of satisfying the customer’s needs by means of the product and many things associated with creating, delivering and finally consuming it.
(3) Selling aims at profit through sales volume, i.e., more sales, more profit, marketing aims at profit through serving customer needs or demand.
Selling:
1. Product enjoys the supreme importance.
2. Emphasis on corporate needs.
3. Company-oriented selling efforts.
4. Goods are already produced. Then management wants to sell them at a profit.
5. Selling aims at short-term objectives.
6. Top priority is given to sales volume rather than profits-increasing sales, rising commission to salesman.
Marketing:
1. Customer enjoys the unique importance.
2. Emphasis is on market needs.
3. Market-oriented selling efforts.
4. Customer demand determines production; we have the problem of adapting supply to demand.
5. Marketing aims at long-term objectives
6. Top priority given to profitable volume of sales and market share at fair prices and reasonable risk.
The need for some selling is taken for granted under the selling concept. Under the marketing concept, the aim of marketing is to render selling unwanted, i.e., a product should sell itself without any promotion effort. Hence, under marketing concept (when a product clicks exactly with buyer’s needs and expectations) all means of promotion are expected to play normal role as modes of marketing communication only.
Traditional Concept of Marketing-
Marketing as a function occupies an important position in the organisation of a business firm.
About marketing, it is the traditional belief and view that:
(i) the efforts for the journey of goods from the producer to the ultimate consumers constitute marketing; and
(ii) the consumers will accept whatever goods the sellers present to them.
In this sense, F.E. Clark stated that marketing consists of those efforts which effect transfers in ownership of goods and care for their physical distribution. According to the traditional concept, marketing consists of the movement of goods from the manufacturers at a time when they are required, to the place where they are used, and for those who use or consume them for various purposes.
Modern Concept of Marketing-
The traditional concept of marketing explained above refers to the physical activities involved in the process of distribution of goods. But, its modern concept is more than a mere physical process. Previously market was considered to be a place where buyers and sellers would meet. But market does not necessarily mean a place.
According to Barwell, marketing consists of identifying, anticipating and satisfying customer needs and desires. To quote E.F.L. Brech, “marketing is the process of determining consumer demand for a product or service, motivating its sales, and distributing it into ultimate consumption at a profit”. According to Stanton, “marketing is the creation and delivery of a standard of living; it is finding out what customers want, then planning and developing a product or service that will satisfy those wants; and then determining the best way to price, promote and distribute that product or service.”
Peter Drucker observes emphatically that the purpose of business is to create a customer – by which he lays stress on two aspects:
(i) identification of consumer needs, and
(ii) organising the business to meet these needs. Marketing today, thus, involves conscious and organised efforts by a business firm to find out what the community needs and how best it can help the community derive the fullest satisfaction from the activities of the business. The modern concept, this way, focuses on the consumers and their satisfaction.
The business firm produces:
a. the types of products which the consumers need,
b. the quantities that the consumers require,
c. the products at prices that the consumers will pay for the satisfaction offered to than,
d. the products at the time when the consumers need them, and
e. distributes in a manner through channels that suit the convenience of the consumers most.
That is why, the approach of modern marketing is consumer-oriented, instead of solely product-oriented.
The consumer-oriented approach of marketing brings out the following in particular:
(1) Marketing is a system of business activities;
(2) Marketing is an important managerial function;
(3) Marketing is the end-result of many other activities;
(4) Marketing is designed to plan, promote, distribute the product car service; and
(5) Marketing is the creation and delivery of a standard of living to the consumers and society.
Changed Concept of Marketing:
The concepts on marketing have undergone significant changes as we witness in the real world. Its approach was solely and exclusively product-oriented in the first-half of this century. Its approach thereafter became sales-oriented in the middle of this century and now it is consumer-oriented at the fag-end of this century.
Although we find that modern marketing is engrossed with the assessment of consumer needs and demands, it is yet to fulfill the consumers’ aspirations for quality and pricing of products and/or services. The twin aspects of quality and price, which are essential elements of a total marketing concept, are vital and necessary for the fullest satisfaction of consumers.
These are not being achieved on account of all normal inflationary factors and paucity of skilled labour force. But it is felt that the factors of high technology, rigid product-quality standards, and the future generation of skilled craftsmen and technicians having cost consciousness will greatly contribute to the attainment of consumer satisfaction with the advent of twenty-first century. This likelihood can be discerned from the government’s initiative and the efforts of professionals in this direction.
3. Essay on the Evolution Process of Marketing:
The evolution process may be charted as follows:
These are discussed below in brief:
(i) Barter System:
It may be regarded as the initial beginning of the concept and approach of marketing in the evolution process. Under this system, the goods are exchanged against goods without any other medium of exchange like money.
This system suffers from certain limitations or drawbacks, as follows:
(a) The method depends on one party to be able to satisfy another party’s wants which poses difficulties in most situations; and
(b) The method necessitates the determination of a rate of exchange which is difficult to arrive at in nest circumstances of the trade.
(ii) Production Orientation:
This approach was based on the assumption that whatever is produced wall be accepted by the customers or consumers. In other words, the producer’ instead of being concerned with the consumer preferences concentrates on the production of goods for the purpose of profit realisation. This approach was the outgrowth of the industrial revolution to produce goods on a mass scale in anticipation of demand.
The drawbacks of this approach are:
(a) The interest of the consumer is virtually ignored to that of the producer;
(b) The marketing becomes either product-oriented or production- oriented;
(c) The stress is not on the consumption which is the ultimate objective of industry and commerce; and
(d) The marketing process comes to an end as soon as the products reach the consumers.
(iii) Sales Orientation:
This approach, in the evolution of marketing, involves a deliberate orientation towards the promotion of sale. Various socio-economic factors, like shift from agriculture to industry, development of the means of transport and communications, better living standards of people, competition among the producers to reach out to consumers, etc., have given birth to this approach.
In a word, if puts emphasis only on the increase of sales turnover without any consideration of the production of the goods desired by the consumers. The selling activity becomes the dominant factor in the marketing of goods in an environment of competition. The major limitation of the system is that marketing becomes highly sales-oriented without any efforts for the satisfaction of the consumer needs.
(iv) Consumer/Customer Orientation:
This approach refers to the concept of marketing that is related to the needs of the buyers. Under the system, oily such products are brought forward in the market’ which are capable of satisfying the tastes, preferences, and expectations of the consumers, this stage, in the evolution process of marketing, ushered in a major breakthrough in the outlook of the producers towards marketing.
This stage or phenomenon is characterised by the following redeeming features:
(a) The production of goods far exceeds the demand;
(b) The increased awareness of the consumers drives than to shift from one product to another; and
(c) The producers realise the consumer demands and choices and thereby, are forced to adopt consumer-oriented approach to marketing so that they can survive in the market.
At this stage, the marketing management strives to organise the factors of production within the organisation keeping in view the factors of consumption outside.
This approach, thus, aims at consumer satisfaction by means of production of the right kind and quality of products, in the right qualities, at the right price and in the right market, the matching of products and services with the markets and consumers becomes the motto of the consumer-oriented approach to marketing.
(v) Management Orientation:
This approach or concept can be said to be a natural consequence of increasing attention to the consumer satisfaction. Marketing, under this concept, is connived of as a total management system of interacting business activities designed to plan, promote, and distribute want-satisfying products and services to the existing and potential consumers.
In the present highly competitive and changing world, the marketing factor has become very crucial to all business planning and decision-making.
The marketing function has now come to be associated with various aspects like pricing, products, markets, market research and analysis, advertising and sales proration, field sales, distribution, organisation and staffing, and coordination with the manufacturing and other operations.
In all these areas, the management has to develop and adopt procedures for planning, organising, directing, reviewing, controlling, etc. In other words, the management has to harmonise all these variable factors, in the context of the nature and size of business, to gain continued acceptance of its products and services from the different classes of consumers and customers.
4. Essay on the Approaches to the Study of Marketing:
Among the various approaches to the study of marketing, the following approaches provide good guidance and assistance in understanding the marketing problems and solving them logically:
(i) Product Approach:
This approach to marketing is basically product or commodity-oriented. It takes into account the detailed system and sub-systems of the marketing effort and allied problems and constraints concerning a particular product. Here, the product features and characteristics in relation to the markets are carefully analysed to arrive at solutions of the constraints identified.
This approach is concerned with single- product strategies holding share in growth markets, increasing share in growth markets, and increasing share in mature markets. The life-cycle of the product is also subjected to severe examination from the technical and commercial aspects in case of products like television, radio, transistor, etc.
The approach does not take care of the less-profitable products which may have problems of the same type. Too much attention to the product, at times, inhibits the process of understanding the consumer behaviour and interests.
(ii) Institutional Approach:
This approach to marketing is concerned with the formulation of policies and practices around the institution as a whole and involves considerations of the manufacturing and distribution systems. The functions and problems relating these systems are identified, classified and analysed to find out the course of action suitable for a marketing policy and strategy.
For example, the patterns of distribution either through wholesalers or retailers or through opening of branches and sales depots are chosen as the marketing, outlets for footwear class of industries.
In other words, a strategic base is determined and developed by an institution in the marketing dynamics by means of effective co-ordination to reach cut the consumers. Thus, marketing information system through adequate research, planning and programming is essential for an institutional approach to marketing.
(iii) Functional Approach:
This approach to marketing is concerned with the activities of two basic functions – selling and buying – which are responsible for the transfer of ownership of goods from the sellers to the buyers.
The following classified functions cane under this approach:
(a) Functions of Exchange (Transfer of ownership):
(i) Buying and Assembling
(ii) Selling.
(b) Functions of Physical Supply (Physical transfer of products):
(iii) Transportation
(iv) Storage (Warehousing).
(c) Facilitating Functions:
(v) Financing
(vi) Pricing
(vii) Risk-taking (Insurance)
(viii) Standardisation
(ix) Advertising and sales promotion.
The study and analysis of the above functions help in understanding the marketing process and provide the bases for formulating marketing policies and practices around these functions. This approach is regarded as an integrated one as it takes into account both the product and institutional approaches. This approach covers all the facets of business planning, decision-making and co-ordination within its fold.
But this functional approach to the study of marketing is not free from criticisms. The practitioners on the subject criticise this approach on the following grounds:-
(a) The marketing functions are difficult to be identified and listed precisely;
(b) The product planning and its design and development are very much linked to the production function than the marketing function;
(c) The different marketing activities and associated problems are given too much importance;
(d) The managerial activities which are vital and significant to the total marketing system are under-estimated; and
(e) The management underscores the importance of decision-making aspects which are bound to arise in the execution of different marketing functions.
(iv) Social Approach:
This approach to the study of marketing’ emphasises the necessity of the marketing function far the good of society. It is the marketing function that provides goods and services to the people in the society according to their needs and preferences at affordable prices. It is that activity which creates and increases the demand of the new and existing products and thereby raises the quality of living of the masses.
That is why, it is stated that the marketing is the creation and delivery of a standard of living to people. The sociologists view marketing as a powerful force that can promote and shape all good things for the betterment of society.
Social consciousness among the masses is accentuated by the marketing function. According to the social scientists, marketing possesses the potentialities of furthering population control dictum, secular ideas, anti-pollution drive and brotherhood among citizens of all castes, creed, and languages.
The school of opinion who are in favour of this approach states that marketing serves the following social objectives:
(1) With better and more efficient marketing sales increase resulting into larger production and diminishing cost. Increased production of goods and services leads to higher national income.
(2) Improved method of marketing research and marketing mix generates new uses of existing products and also new products of greater utility.
(3) Marketing reduces the imbalance in the markets by channelizing surplus production to the deficit areas.
(4) Continuous marketing activity helps maintain continuity of production and thereby avoids diseconomy in the scale of operations.
(5) The variety of activities involved in marketing function create diverse job opportunities and employment.
(6) In addition to the satisfaction of the physical needs of people, marketing takes into account culturally determined goods for knowledge, pleasure, etc.
(v) Systems Approach:
This approach to the study of marketing considers the marketing function as a sub-system of the society as veil as of the entire organisational entity. As an entity sub-system, marketing co-ordinates the resources of production and distribution of goods and services, determines and directs the nature and scale of the total efforts required for selling, and initiates research and development far consumer satisfaction.
As a sub-system of the society, marketing represents a large number of institutions such as retailers, wholesalers, agents, middlemen, transport agencies, and all those institutions that assist in the continuous flow of goods and services from the producer to the ultimate consumer.
The systems approach to the study of marketing is also called ‘micro- marketing’ denoting that the marketing function is a sub-system of both the organisation as well as the society.
In a systems approach to the marketing function, the following questions are usually asked for an understanding:
(1) What are the strategic parts of the marketing system?
(2) What is the nature of their mutual dependency?
(3) What are the main processes in the marketing system which link the parts together and facilitate their adjustments to each other?
(4) What are the goals sought by the marketing system?
(vi) Managerial Approach:
This approach is also called firm- oriented approach and emphasises the need of managerial decision-making for effectiveness in the marketing efforts. It is believed that this approach helps in increasing the profitability of the firm through betterment of the markets and marketing institutions (like wholesalers, retailers, etc.), the products, and the society.
In this approach, the management is generally faced with two sets of variables such as:-
(1) Controllable variables like product, quality, price, distribution channels, and sales promotion; and
(2) Uncontrollable variables like business environment, competition, and society.
Thus, it becomes the task of the management to study and analyse these variables and strike out a balance between these two sets of variables so that the marketing system grows and delivers the desired results.
In an highly competitive and complex business world, this approach is considered as the best for the firms which are always result-oriented in the -attainment of objectives like profit maximisation, costumers’ maximum satisfaction, market expansion and wealth maximisation.
(vii) Contingency Approach:
More recently, the management experts have come to realise and recognise the contingency nature of organisational management. They view that different problems and opportunities call for different treatments and organisational structures. The environment within which the marketing organisation functions is frequently changing on account of changes in technology, economy, etc.
The contingencies have to be adopted aid so the structure of a marketing organisation might have to be changed with the contingencies. There are many ways to run a marketing function.
For a marketing function to be successful, it must continuously adapt to the business environment, and modify the methods of production and distribution and develop a structure which meets the opportunities and problems at hand. Contingency approach to marketing management refers to this.
In this approach, it is believed that the management of marketing is contingent or dependent upon:
(i) Situation (i.e. environment),
(ii) People involved (in the organisation) and
(iii) The manager of the marketing function.
The contingency approach to the study of marketing may, therefore, be schematically represented as follows:
The social approach to the study of marketing refers- to the creation and delivery of a standard of living to people in society through their satisfaction.
In a systems approach to the study of marketing, the marketing function is viewed as a sub-system of the society as well as of the entire organisation.
The managerial approach to the study of marketing is concerned with the managerial decision-making for the attainment of result-oriented marketing efforts.
The contingency approach to the study of marketing suggests development of a marketing structure suitable to meet the opportunities and problems at hand.
5. Essay on the Process of Marketing:
Marketing has been viewed as an on going or dynamic process involving a set of interacting activities dealing with a market offering by producers to consumers on the basis of reliable marketing anticipation (sales or demand forecasts).
Marketing is a matching process by which a producer provides a marketing mix (product, price, promotion and physical distribution) that meets consumer demand or a target market within the limits of society.
The process is based on corporate goals and corporate capabilities. Marketing process brings together producers and consumers the two main participants in exchange. Each producer or seller has certain goals and capabilities in making and marketing bi-products.
He uses marketing research as a tool to anticipate market demand. Then he provides a marketing mix in order to capitalize marketing opportunity. An exchange takes place when market offering is acceptable to the customer who is prepared to give something for value (money) in return against the product so bought.
The marketing process covers three main activities, viz., concentration, dispersion and equalisation. These activities are performed by marketing middlemen such as merchant middlemen (wholesalers and retailers) or agent middlemen (brokers and commission agents).
Functional Classification of Marketing:
Marketing process includes marketing functions.
A chart describing the classification of marketing functions is given below:
Marketing process covers:
1. Marketing agencies or channels of distribution,
2. Marketing functions,
3. Flow of goods to satisfy market demand and
4. The marketing management which is in charge of planning, directing and controlling the marketing of goods and accomplish the primary marketing objective, viz; satisfaction of market demand.
Marketing research is the starting point in the process of marketing to know customer demand through market analysis and investigation. Resources of men, money, materials and management are employed in the marketing system to perform marketing functions in order to satisfy customer demand (the purpose of marketing).
Note:
1. Marketing research enables us to know the market demand.
2. Marketing functions are needed to satisfy the market demand.
3. Channels of distribution use marketing resources to perform marketing functions necessary to satisfy demand.
4. Marketing agencies are the media of marketing management for operating the marketing programme.
5. Marketing management evolves marketing mix or programme and implements the same through the marketing agencies.
Marketing functions needed to serve market demand constitute second part of marketing process. As these functions are performed in the marketing channels, these channels of distribution become the third component of marketing process.
Marketing management has to operate through marketing agencies or institutions for distribution of goods in the market. Hence marketing agencies are also covered by the marketing process.
Finally, marketing management is naturally an integral part of the marketing process as it is directly responsible for taking decisions on various marketing problems, formulate marketing plans and policies and execute marketing campaigns through marketing agencies.
We will describe briefly some of the important marketing functions:
1. Selling:
It is one function of the equation of exchange. Selling creates demand for a product.
Selling function involves:
(a) Product planning and development,
(b) Finding out or locating buyers,
(c) Demand creation through salesmanship, advertising and sales promotion,
(d) Negotiation of terms of sale, such as price, quantity, quality, etc.
(e) Sale contract leading to transfer of title and possession of goods.
2. Buying:
It is the second function of the equation of exchange. It requires planning of purchases, intelligent search for probable sellers, selection of goods to be sold, assembling of goods in right quantity and quality, at the right place and time, and at the right price. In a formal exchange, buyer has to negotiate terms of purchase and enter into a contract of purchase.
3. Standardisation and Grading:
In agricultural marketing standardisation and grading play a very important role. Standardisation makes sale by description possible. It assures quality. It promotes uniformity of products. It widens the market for commodities.
Standardisation means setting standards of quality. Grading means separating or inspecting products according to established standards. Each grade has uniformity in all attributes. Grading enhances, marketing efficiency.
4. Financing:
Finance is the life-blood of commerce. We have monetary exchange. Value of goods is expressed in money and it is denoted by price to be paid by a buyer to a seller. Credit is necessary in marketing. It plays an important role in retail trade particularly in the sale of costly consumer goods.
5. Marketing Information:
Market intelligence means spreading of market information among buyers and sellers. As marketing conditions are dynamic and they affect industry in any way and to any degree, marketers are interested in knowing trends in market demand, supply, prices and related market information.
Equipped with latest market information, risk of loss can be reduced in purchasing, in pricing, in forecasting market demand and in facing competition in the market.
Securing and using market information is a mark of good marketing management. Market information service has assumed a unique importance in our business system as decision making process in the field of marketing can be based on adequate, up to date, reliable and timely market information. Organized markets, banks, government agencies act as clearing houses of vital market information.