What is Marketing?
Marketing can be simply defined as an action or business of promoting and selling products or services.
Marketing activities and strategies result in making products available that satisfy customers while making profits for the companies that offer those products.
What Activities are Included in Marketing?
Marketing activities are abundant and varied because they basically include everything needed to get a product off the drawing board and into the hands of the customer.
The broad field of marketing includes activities such as:
- Designing the product so it will be attractive to customers by using tools such as marketing research and pricing.
- Promoting the product so people will know about it by using tools such as public relations, advertising, and marketing communications.
- Setting a price and letting potential customers know about your product and making it available to them.
Must accomplish nine important Activities. In order for the marketing bridge to work correctly providing consumers with opportunities to purchase the products and services they need the marketing process.
The functions are :
- Buying – people have the the opportunity to buy products that they want.
- Selling – producers function within a free market to sell products to consumers.
- Financing – banks and other financial institutions provide money for the production
and marketing of products.
- Storage – products must be stored and protect ed until they are needed. This function
is especially important for perishable products such as fruits and vegetables.
- Transportation -products must be physically relocated to the locations where
consumers can buy them. This is a very important function. Transportation includes
rail road, ship, airplane, truck, and telecommunications for non-tangible products such
as market information.
- Processing – processing involves turning a raw product, like wheat, into something
the consumer can use — for example, bread,
- Risk-Taking– insurance companies provide coverage to protect producers and
marketers from loss due to fire, theft, or natural disasters.
- Market Information – information from around the world about market conditions,
weather, price movements, and political changes, can affect the marketing process.
Market information is provided by all forms of telecommunication, such as television,
the Internet and phone.
- Grading and Standardizing – Many products are graded in order to conform to
previously determined standards of quality. For example, when you purchase US No. 1
Potatoes, you know you are buying the best potatoes on the market.
The Four UTILITIES Of Marketing
The marketing process must also add “utility” to the products consumers want. Utility is the use or satisfaction a person gets from a product. If you purchase a bread you expect that you will receive a certain amount of utility from it. You will be able to use the bread to make sandwich, sweet, and take care of a variety of item.
There are four types of utility.
Form Utility – a product must be processed into a form that the customer wants or needs.
For example – wheat is processed into bread and potatoes are processed into french fries. If you ordered french fries with your lunch and the waiter brought you a raw potato, you probably wouldn’t be too happy.
Place Utility – place utility involves transporting products to the location where consumers can buy them.
For example – If you live in banglore, you certainly wouldn’t want to have to drive to chennai to buy oranges. Thanks to our modern transportation systems you don’t have to; you simply drive to the local super market and oranges are there ready to add to your shopping cart — place utility.
Possession Utility – possession utility establishes legal ownership of a product.
For example – When you purchase something you normally receive a receipt; this provides legal ownership and the right to use the product and also provide a user license. A license of this kind gives you the right to use the product within certain guidelines.
Time Utility – this could be described as being in the right place at the right time when a customer is ready to purchase a product. Creating and keeping customers means having products available for when they want them, and often this requires some type of storage facility. Wheat is one example of a commodity that must be stored after it is harvested. It is stored in silos until processors are ready to convert it into food products such as bread or cereals.