Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user.
Meaning of Marketing Function
As an entrepreneur, when we went to start a new business, we don't have a product. In fact we will have to decide what product we should manufacture and sell.
We have first to decide what product we should select. This, we can do only if we can do only if we identify the needs which require satisfaction among human beings. Once, we have identified the needs of a group of human beings (or called market segment), we can determine the product which can help to satisfy that needs. This is a part of the marketing concept or we can say the part of modern philosophy of marketing.
Philip Kotler, an author in area of marketing defined marketing "a human activity directed at satisfying needs and wants through exchange processes."
The human need is a state in which a person feels deprived of
something. There are many human needs described in many
Briefly, these needs can be divided into two types.
1. Physiological needs
2. Psychological and Sociological needs.
The physiological needs consist of the need for food, clothing, shelter and even sex. Similarly, there are social needs for belonging, affection and love from others. Of course, there are.higher order psychological needs of self-actualisation.
Important to understand that there are different needs for human being on the earth. At any time some needs in a human being are dormant and unsatisfied, whereas others are active and are being satisfied. A marketing man may thus devise a product or service aimed at satisfying a certain dormant need and thus provide satisfaction to the user. This is why a man is often described as a bundle of dormant wants. The need exists buy these have to the converted into 'wants' by a marketing strategy.
In a socially competitive society, people may have unlimited wants but the ability to buy may be restricted on account of their economic background. They will, therefore, select from among those products, which give satisfaction or are needed more. Thus, when they are backed by ability to buy, the wants are converted into demand for your product. Therefore, when people decide to satisfy their needs and wants, in terms of marketing activities, exchange takes place.
Scope and Appropriateness of Marketing Function
The first and foremost role is that it makes more potential aggregate demand and thus enlarges the size of the market. If we ask how does it help in the economic growth of a country. Then the answer is that through stimulation of demand, people are motivated to work harder and earn additional money to buy the various ideas, goods and services being marketed.
An additional advantage which accrues is that it accelerated the process of monetising the economy which in turn facilitates the
transfer of investible resources. (In India, about one-fourth of GNP and more than one-third of agricultural output are still non-monetised).
Another important role which marketing plays is that it helps in the discovery of entrepreneurial talent. Peter Drucker (a celebrated writer in the relevant field) makes this point very clearly when he observes that marketing is a multiplier of managers and entrepreneurs.
Added 336 days ago|4/5/2013 3:06:54 PM