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PRINCIPLES OF MARKETING
THE ROLE OF MARKETING
IN ORGANIZATIONS AND SOCIETIES


MARKETING is a social and managerial process by which individuals and organizations obtain what they need and want through creating, offering, and exchanging products of value with others (i.e. with other products of equivalent value or money).


2ND DEF: MARKETING MANAGEMENT is the process of planning and executing the conception, pricing, promotions and distributions of goods, services and ideas to accomplish customers and organizational objectives.


THE GLOBAL BUSINESS AND MARKETING

The world economy has undergone a radical transformation into a new era of technology, businesses and marketing. World has become a global village. Geographical and cultural distances have shrunk significantly with the advent of jet airplanes, telephone, fax machines, computers, internet and television satellite broadcasting. Companies’ world wide has realized convenience in doing business globally. Take an example of a luxury car made in Germany whose exterior design was made in Germany, interior designing in England, engine and tiers in Japan and South Korea respectively, accessories and mirror parts in Taiwan and China subsequently. What would you say about this car, a made in Germany car? It’s an example of global manufacturing and the car is marketed without boundaries.


E-COMMERCE AND MARKETING

Electronic commerce or E-commerce is the internet or on-line commerce done with the help of interconnected computers. Companies first developed their websites, then the search engines like Google, Yahoo, MSN etc. were formed to facilitate searching web addresses in different domains (i.e. fields of activity). Finally E-commerce emerged and companies started placing their products and advertisements on search engines and other websites. Consumers find it ease to shop globally by observing the varieties of products, their features, packaging, warranties, prices, promotional discounts, offers, etc. The consumers pay through credit cards and visa cards and good are shipped to them. According to official sources of the United Nation (UN), the internet trade occupies 10% of the total world’s trade share or sales volume. E-commerce is done through E-advertising i.e. advertising online, which is a significant part of marketing.


MARKETING OF FINANCIAL SERVICES

Like every field of business, the financial sector including banks leasing, insurance, investment companies, stock exchanges, currency dealers, money market dealer etc. offer huge opportunities for marketing professionals. Marketing staff help them designing new products, retaining existing customers or accounts, and identifying and developing potential customers.


MARKETING IN NON PROFIT ORGANIZATION

Marketing is common even in non-profit organizations that are non governmental organizations (NGO’s), charity or welfare associations, trusts, cooperative societies, trade associations, etc. NGOs raise funds through marketing by approaching the donors and advertising their services for the community. The non-profit organizations include hospitals, schools, colleges, church, mosques, etc., which engage some of their staff in marketing.

MARKETING CAREERS AND ORGANIZATIONS STRUCTURE/ ORGAN GRAM OF A MARKETING DEPARTMENT




















The organization structure of the marketing department varies from organization to organization. In larger companies, VP or director marketing heads the marketing organization or department and design the marketing programmes, and policies, followed by marketing manger, who designs long and short-run marketing plans, strategies, processes, and procedures. He takes reports from other managers as in the pictures above. Brand managers and other mangers have many assistants. The smaller companies have either a marketing manager or country manager to deal with all the affairs of marketing. In the sales department i.e. sub department of marketing, the country manager also called national sales manager or sales manager leads the department followed by regional sales manager, followed by area sales manager, field manager, territory manager, sales representatives / executives and salesman respectively.


The core concepts of marketing
















A NEED is a feeling of deprivation of some basic satisfaction. Basic needs of human beings are food, water, cloths, shelter, sleep, sex, safety, belongings, esteem and some other things necessary for survival. Wants are desires for some things to satisfy needs, or wants are expressions of needs. A person has a need for food, he may choose KFC. A person needs cloths; he / she may opt to purchase Hang Tan or Lewis cloths or very cheap cloths. A person wants public transport, and other person wants to buy Mercedes to satisfy his esteem needs. Demand is a want of a product backed by willingness and ability to pay for it. Demands are fulfilled when supported by purchasing power. A person might wish to buy a BMW car but he can’t buy it without a willingness and ability to buy it.

PRODUCTS are goods, services, and ideas. Ideas are actually potential products. Products are any things than can be offered for sale, for example, books, pens, cars, trucks, TV, mobile phone or services like health services tendered by physicians, banking insurance, teaching or academic services etc. Goods are also called merchandise, wares, articles, and commodities but commodities are in raw form.

VALUE is the worth of product. A product’s value is a customer expectation of a product’s capacity or benefits to satisfy his needs and wants. Cost is either the production cost of a product or the price a customer pays for it. Satisfaction is the state of feeling content by using a product. Basically a marketing professional sells goods and services to satisfy his needs and wants while the customer also buys those goods and services for the same reason.

EXCHANGE is offering something and receiving some thing else in return, like offering furniture and receiving cash against it, or receiving partial cheque and balance is payable. Without exchange, there will be no marketing. In earlier days, men used to buy goods and services against other goods and services, like rice against wheat, goat against cloths. The system is called barter system, from where the marketing evolved.

EXCHANGE is one of four ways people obtain things. The other ways are self production (producing vegetables and fruits, hunting and eating the products); coercion (steeling or fighting to obtain things); begging (to obtain things); and exchange (as buying products against money or barter system).

TRANSACTION is an economic activity or activity involving monetary values. For example, releasing pay cheques to the staff, buying raw material and machinery on credit, making deposits to bank, but recruiting staff or signing a contract to supply the goods is not a transaction because no monetary values were involved. When a transaction takes place, exchange takes place. Relationships, a marketing company establishes relationships with customers, its employees, suppliers, government agencies and the like.

MARKET is a place or setting where buyers and sellers done buying and selling of products. It may be a local market, a foreign market, a particular product market, electronic market, gold market etc, a service market, labour market, financial market etc. When products are bought electronically or on the internet, it’s the On -line market.

MARKETER is either a buyer or seller. Marketer is any person or organization seeking a resource (a product) from some one (like a raw material / or finished product supplier) and offering it in return of a price. Marketer can also be a buyer, suppose an antique car is for sale and twelve customers want to buy the same car. The customers tries to motivate the seller to sell them the car, they are the marketers.


OTHER CONCEPTS / PHILOSOPHIES OF MARKETING

1. THE PRODUCTION CONCEPT holds that consumers will favour the products that are widely available and relatively low in price. Managers of production oriented companies concentrate on achieving high production efficiency and wide distribution coverage.

2. THE PRODUCT CONCEPT holds that consumers will favour the products that offer the most quality, performance, or innovative feature. Managers that believe in such philosophy focus on making superior products and continually improve them.

3. THE SELLING CONCEPT holds that consumers will not buy enough products, if the companies do not undertake aggressive selling and promotional efforts.

4. THE MARKETING CONCEPT holds that the key to achieving organizational goals consists in identifying the needs and wants of the target market and delivering the desired products more effectively and efficiently than competitors.

5. THE SOCIETAL MARKETING concept holds that companies marketing activities must not harm to the society, for example, their products quality, ingredients, packing, price, advertising, promotional and distributional activities must be ethical.

Marketing evolved centuries ago and marketing trends kept changing. Since the industrial revolution and mass production era in 1750, companies first focused on the production concept, later turned to the product concept, moved to the selling concept, and eventually marketing concept and societal marketing concepts emerged.

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