What is Marketing?

The American Marketing Association (AMA) defines

marketing as the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and
society. Over the years, marketing has transformed from being
print and TV media-dependent to relying more on the internet
because of the reach and scope of the latter. The primary
objective of marketing is to take a product or service, identify
the ideal/target customers or consumers, and draw their
attention towards the product/service.
The overall marketing strategy depends on consumers’
perception or understanding of the product, quality, durability,
availability, and price point.
What is a Market?
The market is the place or set-up where potential buyers and
sellers meet to exchange their products or services. In short, it
is a medium that allows transactions that include products,
services, and information, in complete adherence to legalities
and rules of the land where the transactions happen.
Markets can be broadly classified into physical
markets and virtual markets. It can further be classified based
on the products it transacts with (For example, cotton market,
book market, etc.), location (For example, local,
international), types of buyers (For example, consumers,
traders), and quantity (For example, retail, wholesale, etc.).
However, in the age of e-commerce, the term market is no
longer confined to a limit. Instead, it now operates or
functions in greater scope and span, making almost everyone
a potential customer.
On the other hand, marketing encompasses every activity in a
product’s life cycle, starting from designing to production and
from production to consumption. Often, marketing is wrongly
described as a post-production activity. Marketing usually
begins before the production starts, as it is integral to
understand the customer’s needs before a product is launched.
This lead generation often is the first stage of marketing for a
product.

Functions of Marketing
Different functions of marketing are as follows −
 Identifying Consumer/Customer Needs
This generally is the first step where the companies gather
information and market insight to understand the need of the
customers. This helps them to present products or services
that closely match the demand.
 Proper Planning
It is crucial as everyone involved in marketing needs to have a
clear idea about the company’s objective and then chalk out
the following steps to achieve the same.
 Product Development
Based on the inputs from market research, this step helps the
company build products for the consumers. Essential factors
to be considered here are product design, durability, and cost.
 Standardisation
This is the process of ensuring that each product developed by
the company has the same quality, design, and standard for
every consumer.
 Product Packaging
Packaging often helps create the first impression of a product
and thus it is a vital step in the process. Good packaging and
labelling help a product achieve some amount of success in
the market.
 Product Branding
Branding happens when consumers tend to associate a
particular product with a certain brand name (or producer’s
name). This also helps build goodwill for the producers and
products from the same brand name tends to gather some
trust.
 Customer Service
Another vital cog in the wheel is the customer support that an
organization must offer to its consumers. This can be offered
both pre-and post-sales.
 Pricing
This again is a vital process for an organization. A product’s
success or failure often depends on its pricing, besides other
factors like demand and necessity. Fluctuations in the price of
a product can be detrimental to its success.
 Promotion of Products
Product promotion is the process of making consumers aware
of a certain product by showcasing it to them through various
channels and platforms. Advertising, media, personal selling,
and publicity are some common mediums of promotion.
 Distribution of Products
Product distribution is the process of moving the products to
the consumer touchpoints or the points of consumption/sale.
Relationship between: Needs, Wants and Demands
Needs, wants and demands are essential terms in marketing.
No matter how similar they appear in meaning.
Needs can be defined as the state of self-deprivation in an
individual, which is often the starting point of marketing.
Without human needs, both markets and marketing would
probably not exist.
Wants can be defined as the desire to satisfy the needs of an
individual. Human needs are unlimited, and this endless need
requires satiation through many products, services, and
methods. Wants depend on culture, socio-economic
backgrounds, and individual personalities.
Demand is human need, backed by the ability and willingness
to buy. Demand can be influenced by marketers by offering
different products at different prices and qualities. It is also
created by producers to motivate the consumers. Demand is of
two types: Primary and Secondary.

Functions OF MARKETING

1. Promotion
Promotion fosters brand awareness while educating target
audiences on a brand's products or services. It emphasizes
introducing potential consumers to your brand. This function
of marketing varies in form, and marketing professionals
tailor each form to relate to a particular product, brand or
target audience. Promotion may include any of the following
strategies:

Email marketing
Social media advertisements
Digital or print advertising
2. Selling
Selling is a function of marketing that comprises
communicating with potential customers and pursuing sales
leads. It's important for marketing professionals to pursue
sales leads with subtlety, which helps them build relationships
with potential customers. As communication with a potential
customer progresses, successful marketers may introduce their
product and answer questions customers may have. Effective
selling techniques can help you distinguish your brand from
competitors. Marketers and salespeople may collaborate to
determine how to best position their product within their
market and sell it to potential customers.

3. Product management
Product management includes the development, design and
improvement of products or services. The role of a marketer
in product management is to ensure that a finished product
meets customer needs. This includes examining the overall
visual of the product, its usefulness and how it's delivered.
Some product management strategies include:

Analyzing competitors: Researching and analyzing your

competitors equips you with information to develop a product
that rivals or surpasses theirs.
Communicating with customers: This strategy provides
helpful insight into ways to improve your products before
they reach the market.
Implementing feedback: It's important for marketing
professionals to gather feedback from several areas—both
inside and outside their organization—to improve their
production processes.
Conducting market research: Researching similar products
helps a marketing team determine what customers want and
how to satisfy them.
Coordinating with other departments: Collaborating with
other teams in your organization prepares your entire
company to release a product, generate ideas for distribution
and deliver products seamlessly.
4. Pricing
Establishing a price for a product incorporates several factors
of cost and value. Ideally, marketers find a price between
customers' perceptions of a product's value and the actual cost
of producing it. Other factors include the price your
competitors set and the amount customers might pay for your
product. Marketing professionals consider these elements
when deciding how to price a particular product or service.

It can be challenging to determine a price for your product,

but using in-depth market research can help you make an
informed decision. Whatever price you choose for your
product, it's important for your promotions and branding to
match its price. For example, if you sell a handbag for $1,000,
you might market it as a luxury item. This emphasizes your
product's value, which could convince customers to purchase
your item.

5. Marketing information management

You can optimize your marketing strategies when you focus
on data and information. It's important to collect and store
data, such as customer preferences and demographics. Often,
this data directly relates to your target audience for your
products and services. This also can inform effective business
decisions for the entire company, so consider sharing your
data and findings with other departments, as well.

You can gather relevant information from various marketing

tools, such as:

Surveys
Online reviews
Social media engagements
Market research reports

6. Financing
Financing is a marketing function that involves securing
funding—either internally or externally—to create marketing
campaigns. It's important for marketing teams to secure
enough availability in their annual budget to improve previous
marketing campaigns and remain updated with industry
trends.

A marketing team can demonstrate its added value to its

company if revenue continues to increase due to high-quality
marketing campaigns. This upward trajectory might also
allow that team to secure future funding, as they can
demonstrate a quantifiable positive return on their investment.

7. Distribution
Distribution is the process of transporting your company's
products or services to your customers. There are several
physical and digital methods of distribution, including:

Online stores
Catalogs or magazines
Sales calls
Retail stores
Wholesalers

SCOPE OF MARKETING
1. Product design
Product design is the four most important element in
marketing the communication needs & problems of the
consumer have to be considered before marketing a new
product design.
2. Implementation of product
Once the decision is finalized about the design of the product
more focus should be there on communication with the
production department regarding the implementation of
product features.

3. Pricing of Product
Pricing is the most important aspect of the product because it
only decides the major buying decision of the consumer. So if
the product is very new to the market correct & affordable
pricing should be done.

4. Selection Of Layout
The layout is the place where actually the product /services
will be availed so more focus should be done on the exact
location and layout.

5. Publicity of the product

Publicity means communication about the product and
services for creating awareness & demand for the product
through publicity& Advertisement.

6. Distribution channel
Distribution channel means the number of intermediator like
whole-sellers, Retailers, distributors, and agents who all are
involved in the marketing channel.
7. Selling of Product
Selling involves the actual challenge of marketing. The selling
of products and services involves different strategies like
distribution through stores, salesmen, Advertisements,
Exhibitions, trade fairs, etc.

8. Collecting the feedback

This begins after the product is marketed and sold collecting
feedback regarding satisfaction or dissatisfaction-related
features like price, to make availability, etc it is to make
changes in the marketing mix.

7Ps
Product
This refers to what the company produces (whether it is
product or service, or a combination of both) and is developed
to meet the core need of the customer – for example, the need
for transport is met with a car. The challenge is to create the
right ‘bundle of benefits’ that meet this need. So what happens
as customer needs change, competitors race ahead or new
opportunities arise? We have to add to the ‘bundle of benefits’
to improve the offering, create new versions of existing
products, or launch brand new products. When improving the
product offering think beyond the actual product itself – value
can be added and differentiation achieved with guarantees,
warranties, after-sales or online support, a user-friendly app or
digital content like a video that helps the user to make the
most out of the product.

Price
This is the only revenue-generating element of the mix – all
other marketing activities represent a cost. So it’s important to
get the price right to not only cover costs but generate profit!
Before setting prices, we need to research information on
what customers are willing to pay and gain an understanding
of the demand for that product/service in the market. As price
is also a strong indication of the positioning in the market
against competitors (low prices=value brand), prices need to
be set with competitors in mind too.

Place
This is the ‘place’ where customers make a purchase. This
might be in a physical store, through an app or via a website.
Some organisations have the physical space, or online
presence to take their product/service straight to the customer,
whereas others have to work with intermediaries or
‘middlemen’ with the locations, storage and/or sales expertise
to help with this distribution. The decisions to be made in this
element of the marketing mix concern which intermediaries
(if any) will be involved in the distribution chain and also the
logistics behind getting the product/service to the end
customer, including storage and transportation.

Promotion
So we have a fantastic product, at an appealing price,
available in all the right places, but how do customers know
this? Promotion in our marketing mix is about communicating
messages to customers, whichever stage they are in the buyer
journey, to generate awareness, interest, desire or action.

We have different tools for communication with varying

benefits. Advertising is good for raising awareness and
reaching new audiences, whereas personal selling using a
sales team is great for building relationships with customers
and closing a sale. The challenge? To choose the best tool for
the job, and select the most effective media to reach our
audiences based on what we know about them. If your
customer is a regular on Instagram then that’s where you need
to be talking to them!

This doesn’t just apply to customers. Communicate to other

stakeholders too like shareholders and the wider public to
build company reputation. The same principles apply; choose
the right tools and media that fit with what you are trying to
achieve.

People
A company’s people are at the forefront when interacting with
customers, taking and processing their enquiries, orders and
complaints in person, through online chat, on social media, or
via the call centre. They interact with customers throughout
their journey and become the ‘face’ of the organisation for the
customer. Their knowledge of the company’s products and
services and how to use them, their ability to access relevant
information and their everyday approach and attitude needs to
be optimised. People can be inconsistent but with the right
training, empowerment and motivation by a company, they
can also represent an opportunity to differentiate an offering
in a crowded market and to build valuable relationships with
customers.

Process
All companies want to create a smooth, efficient and
customer-friendly journey – and this can’t be achieved
without the right processes behind the scenes to make that
happen. Understanding the steps of the customer journey –
from making an enquiry online to requesting information and
making a purchase – helps us to consider what processes need
to be in place to ensure the customer has a positive
experience. When a customer makes an enquiry, how long
will they have to wait before receiving a response? How long
do they wait between booking a meeting with the sales team
to the meeting taking place? What happens once they make an
order? How do we make sure reviews are generated after a
purchase? How can we use technology to make our processes
more efficient? All of these considerations help build a
positive customer experience.

Physical Evidence
Physical evidence provides tangible cues of the quality of
experience that a company is offering. It can be particularly
useful when a customer has not bought from the organisation
before and needs some reassurance, or is expected to pay for a
service before it is delivered. For a restaurant, physical
evidence could be in the form of the surroundings, staff
uniform, menus and online reviews to indicate the experience
that could be expected. For an agency, the website itself holds
valuable physical evidence – from testimonials to case
studies, as well as the contracts that companies are given to
represent the services they can expect to be delivered.

What Is a Marketing Mix?

A marketing mix includes multiple areas of focus as part of a
comprehensive marketing plan. The term often refers to a
common classification that began as the four Ps: product,
price, placement, and promotion.
Effective marketing touches on a broad range of areas as
opposed to fixating on one message. Doing so helps reach a
wider audience, and by keeping the four Ps in mind,
marketing professionals are better able to maintain focus on
the things that really matter. Focusing on a marketing mix
helps organizations make strategic decisions when launching
new products or revising existing products.

What Are the 4 Ps of a Marketing Mix?

The four Ps classification for developing an effective
marketing strategy was first introduced in 1960 by marketing
professor and author E. Jerome McCarthy.1 It was published
in the book entitled Basic Marketing: A Managerial
Approach. Depending on the industry and the target of the
marketing plan, marketing managers may take various
approaches to each of the four Ps. Each element can be
examined independently, but in practice, they often are
dependent on one another.
Product
This represents an item or service designed to satisfy
customer needs and wants. To effectively market a product or
service, it's important to identify what differentiates it from
competing products or services. It's also important to
determine if other products or services can be marketed in
conjunction with it.
Price
The sale price of the product reflects what consumers are
willing to pay for it. Marketing professionals need to consider
costs related to research and development, manufacturing,
marketing, and distribution—otherwise known as cost-based
pricing. Pricing based primarily on consumers' perceived
quality or value is known as value-based pricing.

Value-based pricing plays a key role in products that are

considered to be status symbols.
Placement
When determining areas of distribution, it's important to
consider the type of product sold. Basic consumer products,
such as paper goods, often are readily available in many
stores. Premium consumer products, however, typically are
available only in select stores.
Promotion
Joint marketing campaigns are called a promotional mix.
Activities might include advertising, sales promotion,
personal selling, and public relations. One key consideration
is the budget assigned to the marketing mix. Marketing
professionals carefully construct a message that often
incorporates details from the other three Ps when trying to
reach their target audience. Determination of the best
mediums to communicate the message and decisions about the
frequency of the communication also are important.