MEANING OF MARKETING
Marketing is an exchange process performed by organisations and individuals with a wish to fulfil needs. What do they exchange? They may be goods, services or ideas. Marketing is complete only when the following conditions are met:
Marketing is an exchange process performed by organisations and individuals with a wish to fulfil needs. What do they exchange? They may be goods, services or ideas. Marketing is complete only when the following conditions are met:
•√ Exchange of Goods and Services takes place only when there are two or more organisations or individuals.
•√ There must be a need for exchange Ex: student needs a text book and seller needs money. Students pay for their books and seller gets money
•√ Each of the parties should involve in exchange voluntarily
•√ Exchange has to be mutually beneficial to both the parties, i e., sellers and buyers.
•√ Communication between the parties is a prerequisite.
Consumer must know about the product and seller also must communicate to the consumers about the products and features of the product. Marketing occurs at any point of time when an individual or an organisation exchanges something of economic value with other individuals or organisations. Hence, marketing can be broadly described as the activities that facilitate exchanges in order to satisfy needs and wants. In other words, marketing is a set of activities relating to design, price, promotion and distribution of products which satisfy human needs and wants.
EVOLUTION OF MARKETING
By now you are aware what marketing is about. It is an exchange of goods, services
all in the mutual between buyers and sellers in order to satisfy human wants and needs ideas concept. Marketing has been existing interest. It is difficult to identify the origin of marketing since ages.
By now you are aware what marketing is about. It is an exchange of goods, services
all in the mutual between buyers and sellers in order to satisfy human wants and needs ideas concept. Marketing has been existing interest. It is difficult to identify the origin of marketing since ages.
Let us know about the stages in the evolution of marketing.
1. Barter Stage
Exchange of commodities for commodities is barter. During Stone Age exchange rates were determined on the basis of labor embodied in accomplishing a job. It is difficult to kill a deer than a pig. Hence, flesh of a deer is more expensive than a big An individual can not produce all the goods and services that he/she wants. Hence one needs to depend on others for or the other. Mechanisation led to excess production over and above the needs, called surpluses and exchanges became inevitable.
Exchange of commodities for commodities is barter. During Stone Age exchange rates were determined on the basis of labor embodied in accomplishing a job. It is difficult to kill a deer than a pig. Hence, flesh of a deer is more expensive than a big An individual can not produce all the goods and services that he/she wants. Hence one needs to depend on others for or the other. Mechanisation led to excess production over and above the needs, called surpluses and exchanges became inevitable.
2. Monetary Economy stage
Barter system has inherent disadvantages. Assume that a barber needs a pot. Pot maker wants milk as an exchange for his pots. Pot maker has no intension to avail barber’s service as an exchange for pot and in turn milkman has intension to exchange a pot for milk. Hence no exchange takes place. The problem is precisely double coincidence of wants, meaning a person who is willing to offer to the other what he wants as an exchange for what he has. Similarly, the next problem is, how many pots are equal to one unit of milk? Indivisibility of products, storage of products are some of the difficulties in barter causing inconveniences in exchange and gave birth to a convenient commodity which has general acceptance called “money’ paving the way for growth of monetarised economy. This simplified the exchange process and barter was replaced with money a convenient commodity. Money facilitated the production, exchange and distribution process but marketing did not change much as the emphasis was on pricing of products during this stage.
Barter system has inherent disadvantages. Assume that a barber needs a pot. Pot maker wants milk as an exchange for his pots. Pot maker has no intension to avail barber’s service as an exchange for pot and in turn milkman has intension to exchange a pot for milk. Hence no exchange takes place. The problem is precisely double coincidence of wants, meaning a person who is willing to offer to the other what he wants as an exchange for what he has. Similarly, the next problem is, how many pots are equal to one unit of milk? Indivisibility of products, storage of products are some of the difficulties in barter causing inconveniences in exchange and gave birth to a convenient commodity which has general acceptance called “money’ paving the way for growth of monetarised economy. This simplified the exchange process and barter was replaced with money a convenient commodity. Money facilitated the production, exchange and distribution process but marketing did not change much as the emphasis was on pricing of products during this stage.
3. Industrial Revolution Stage
Due to advent of new technologies leading to industrial revolution production process has undergone a dramatic change. There is a clear from subsistence economy to surplus economy people used to produce for their self Due to technological revolution production has grown and bounds creating surpluses. do we do with this surplus production which is over and above our consumption? We need to sell at a price. To do this you need to identify markets where there is demand for the products that you produce. Hence, discovering markets became an important issue. Due to new technology. mass production, and economies of large-scale production, production of decreased considerably. Mass production also empowered working community with greater purchasing power, creating a buying charged with purchasing power. This led to an advent of variety of new products competing with each other causing fierce competition in the market for an increased market share.
Due to advent of new technologies leading to industrial revolution production process has undergone a dramatic change. There is a clear from subsistence economy to surplus economy people used to produce for their self Due to technological revolution production has grown and bounds creating surpluses. do we do with this surplus production which is over and above our consumption? We need to sell at a price. To do this you need to identify markets where there is demand for the products that you produce. Hence, discovering markets became an important issue. Due to new technology. mass production, and economies of large-scale production, production of decreased considerably. Mass production also empowered working community with greater purchasing power, creating a buying charged with purchasing power. This led to an advent of variety of new products competing with each other causing fierce competition in the market for an increased market share.
4. Competition
The emergence of marketing Laissez-faire economies have empowered market forces to operate unabated. Producers gained freedom to produce anything that they want, due to free entry and exit into market and the role played by Govt. is very limited. This conducive environment encouraged producers to produce a variety of goods and services and consumers also encouraged to choose from the bewildering variety of goods resulting in mass production. competition in the market to the products, producers had to identify new markets for disposing their huge surpluses. owing to availability of variety of close substitutes in the market, consumers started choosing the best products with reasonable price.
The emergence of marketing Laissez-faire economies have empowered market forces to operate unabated. Producers gained freedom to produce anything that they want, due to free entry and exit into market and the role played by Govt. is very limited. This conducive environment encouraged producers to produce a variety of goods and services and consumers also encouraged to choose from the bewildering variety of goods resulting in mass production. competition in the market to the products, producers had to identify new markets for disposing their huge surpluses. owing to availability of variety of close substitutes in the market, consumers started choosing the best products with reasonable price.
In the light of competition producers had to concentrate on consumers and not on just one time sale but to attract the customer repeatedly. Repeated buying was considered as an indication of success of sales. Growing population on the one hand with changing composition of population on the other, shares of children, adults and elderly people are altered Between 1961 and 2001 share of children drastically decreased and that of older people has grown considerably altering the composition of population. This can be strictly attributable to medical advancements. It may be very appropriate to mention here that Hyderabad is emerging as Health Capital the presence of mushrooming corporate Hospitals in recent times. Rising disposable incomes empowered consumers. On the other companies have struggle to please consumer to sell their products making the consumer a real king To make a customer happy, pre sales and post service gained ground This assumes more importance in the light of growing cost of creating a customer.
All of us know, to create a customer companies have to spend a lot of money in identifying right customers and right markets, promoting the products through marketing communications such as advertising, sales promotion etc. In some cases cost of production does not constitute even 50% of the price of the product. All this necessitated a conscious effort on the part of firms to create valued products which will be preferred to those of competitors. This challenge made marketing process a dynamic and exciting and more rewarding.
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