MEANING OF MARKETING
Marketing seeks to satisfy the needs of people (customers or the market) (creating a sense of usefulness or utility) through the exchange process. Marketing refers to channeling the gap between service and product providers to service and product iseekers.also known as a way of satisfying needs.
The marketing Mix or the “4 P’s” are:
The concept of “the 4 p’s” has been replaced by the concept of the “7 p’s” they are:
These are employed to satisfy a target market’ or target demographic (the pool of potential customers).
Product: Procter and Gamble introduces a new toothpaste designed to taste good and fight cavities. Logo and packaging designed in bright colors to appeal to kids of elementary school age to encourage more tooth brushing.
Price: $2.00, and discounted by means of coupons
Promotion: television and radio commercials, magazine and newspaper ads, and a website; these use bright colors and happy music, perhaps an animated cartoon character for a fun and family-friendly attitude.
Place (or distribution): Supermarkets, drugstores, discount stores such as Wal-Mart, the Internet has become an increasingly important place to conduct online shopping.
Mothers with kids who make toothpaste buying decisions for the family (advertising could be shown on children’s programming, prompting kids to ask parents to buy the toothpaste)
The American Heritage Dictionary defines utility as “the quality or condition of being useful”. Utility is further defined as any quality and/or status that provides a product with the capability to satisfy the consumer’s wants and needs. Marketing is responsible for creating most of a product’s inherent utility.
There are four basic types of utility:
Form utility: production of the good or service, driven by the marketing function. For example, Procter and Gamble turns raw ingredients and chemicals into toothpaste.
Place utility: making the product available where customers will buy the product. Procter and Gamble secures shelf space for the toothpaste at a wide variety of retailers including supermarkets and drugstores.
Time utility: making the product available when customers want to buy the product. The U.S. drugstore chain Walgreens has many locations open 24 hours a day, and since the 1990’s has placed most of their newer stores at major intersections.
Possession utility: once you have purchased the product, you have rights to use the product as intended, or (in theory) for any use you would like.
A fifth type of utility is often defined along with the above four types:
Image utility: the satisfaction acquired from the emotional or psychological meaning attached to products. Some people pay more for a toothpaste perceived to be more effective at fighting cavities and whitening teeth.
The exchange process
The exchange process is the process by which two or more parties give something of value to each other to satisfy the perceived needs. The marketer (a company like Procter and Gamble) offers goods and services desired by the market (the pool of potential customers). In return, the market (the customer) gives back something of value to the marketer, generally money. Both ends receive something of value in the exchange process. The marketer makes money and the customer receives goods, services, or ideas that satisfy their needs. The exchange process is the origin of marketing. The process creates utility.
For an exchange to occur:
Both parties must have something of value to exchange.
Both parties need to be able to communicate. Procter and Gamble (P&G), for example, must have money to purchase advertising space.
Both parties must be able to exchange. The toothpaste, in some cases, must be approved by the FDA in order for it to be sold. The customer must be able to buy the product with his or her money, and have access to a retail store where the product is sold to be able to buy it.
Both parties must want to exchange.
At least two parties are needed for an exchange to occur.
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