Marketing Management - Marketing Concept and Pillars of Marketing
Q (BBA 2015): What is marketing? What is marketing concept? What are pillars of marketing?
Answer: Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user.
It is selling, advertisement and promotion as well.
A marketing concept is defined as a human activity directed at satisfying needs and wants through exchange processes.
The entrepreneur has first to decide what product he should select. This he can do only if he can identify the needs, which require satisfaction among human beings. Once he has identified the need of a group of human beings (called market segment), he can determine the product, which can help to satisfy that need. This is a part of the modern philosophy of marketing or the marketing concept.
Four basic elements (pillars) of marketing are:
iii) Promotion, and
iv) Place (or physical distribution).
At times, these are referred to as the four Ps of the marketing mix or the 4Ps in marketing.
① Product stands for the goods or services offered by the organisation: Once the needs are identified, it is necessary to plan the product. The product or service is aimed at satisfying the needs of a group of consumers, known as customer segment or segments.
② Price refers to the money value that the customer has to pay. The product has to be adequately priced. This involves considerations of the profit margin, the cost, the possibility of sales at different prices and the concept of the right price.
③ Promotion is the aspect of selling and advertising, or communicating the benefits of the product or service, to the target customers or the market segment involved in order to persuade them to purchase such products or services.
④ Physical distribution refers to the aspect of the channels of distribution through which the product has to move before it reaches the consumer. It also includes the logistics aspects of distribution such as warehousing, transportation, etc. needed for geographical distribution of the products.
Q2: Define the following terms (single line definitions)
① Marketing concept
① Marketing concept: It emphasizes consumer-orientation and satisfaction as well as profitability for the organisation.
② Need: A human need is a state in which a person feels deprived of something.
③ Price: This is the money value for the product or service offered by an organisation.
④ Retailer: This is the shopkeeper who buys generally from wholesalers or at times
from manufacturers and then sells directly to consumers or users. The retailers may
range from a small pan shop to a large departmental store.
⑤ Selling: This consists of exchange of a product by the salesman or shopkeeper with the Customer for money and, in case of the modem concept of selling, it must result in satisfaction of the consumer and profitability for the organisation.
⑥ Want: A need has to be converted into a want for our product or service through adequate marketing strategy, such as promotion.
⑦ Wholesaler: He is a person who buys large quantities from the manufacturer and then sells in smaller quantities to the shopkeeper or retailer who ultimately sells it to the consumer or user.