Meaning of marketing, marketing process and evolution of marketing philosophies

Marketing

Because we are constantly exposed to various media, like television, newspapers, the internet, etc., people may believe that marketing is solely about selling and advertising. Today's marketing focuses on meeting the requirements of the consumer as much as telling and selling the goods. Managing lucrative customer relationships is the simplest definition of marketing. The dual objectives of marketing are to retain and increase current customers by giving satisfaction and to draw in new customers by offering higher value. For instance, Wall Mart became the biggest retailer in the world and one of the greatest corporations by promising its customers cheap things. Marketing is the process by which every business develops value for its clients and forges solid bonds with them in order to reap rewards from them in the future.

Fun on Marketing

At a party, you spot a gorgeous girl. As you approach her, you add, "I have a lot of money. Wed me!" Direct marketing is that. You and your numerous friends are at a party when you notice a stunning woman. As one of your friends approaches her and gestures toward you, she says, "He is quite wealthy. Wed him." That's

• Advertising
  • At a party, you spot a gorgeous girl. You approach her and ask for her mobile number. You phone the following day and say "Hello, I'm very rich. Wed me." Telemarketing is that.
  • You spot a lovely girl at a party. After standing up and tying your tie properly, you approach her and get her a drink. You let her in, take her suitcase, offer to drive her somewhere, and then say, "I am, incidentally, quite wealthy. Can we get married?" Public relations is that.
  • You spot a lovely girl at a party. Upon approaching you, she remarks, "You are so wealthy..." Brand recognition like that.
  • At a party, you spot a gorgeous girl. As you approach her, you add, "I am quite well off. Wed me." She slaps you across the face with a nice, firm blow. That is client feedback, please!
• Marketing Process
  • As seen in the image, there are five steps in the marketing process. The company's main goals are to comprehend customers, produce value for customers, and develop strong customer relationships. The business finally benefits from its superior value creation.

Understanding the Marketplace and Customer Needs

Marketers must first understand the needs and desires of their target audiences as well as the competitive landscape. Below is a description of the customer and marketplace concept's five pillars.

• Customer Needs, Wants and Demands
  • Physical needs for food, clothes, warmth, and safety are included, as are social needs for love and affection and personal needs for knowledge and experience. Need is the state of deprivation. Wants are a type of human need that depend on the personality and culture of the individual. For instance, a hungry American would request a burger, French fries, and Coca-Cola. Demands are characterized as human desires supported by consumer purchasing power.
• Marketing Offerings- Products , Services and Experience
  • The combination of goods, services, knowledge, or experiences that are provided to meet a need or a want is known as a marketing offering. Along with tangible goods, it also covers services like banking, travel, lodging, and tax preparation.
• Customer Value and Satisfaction
  • Customer value refers to the value and satisfaction that various marketing offers in terms of products and services, and if the expectation is realized, we refer to it as satisfaction.
• Exchanges and Relationship
  • Gaining desired goods or items from someone by giving them something in exchange is known as exchanging. By satisfying their needs and wants and exchanging their products for money, marketers strive to build a close bond with their customers.
• Markets
  • A market is made up of both current and future buyers of a product. Each of these buyers has a certain need or desire that can be met through an exchange relationship.

Designing a Customer- Driven Marketing Strategy

Marketing management may build a customer-driven marketing strategy after it has a thorough understanding of both the customer and the marketplace. To do this, he must provide answers to two crucial questions: Which consumers do we need to service, and how can we do so most effectively?

• Selecting Customers to Serve
  • The marketer must comprehend who should be supplied, which is accomplished by segmenting the market into different client groups and choosing which ones to target (Target Marketing).
• Choosing a Value Proposition
  • The business must also define how it will position itself in the market, differentiate itself from competitors, and serve those target customers. The values that a firm guarantees to provide to customers in order to meet their demands are referred to as its value proposition.
• Marketing Management
  • The goal of marketing management is to create tactics that will establish profitable consumer relationships. Organizations develop and implement their marketing strategies in accordance with five concepts: the production idea, the product concept, the selling concept, the marketing concept, and the societal marketing concept.
• Production Concept
  • The business that adheres to the production philosophy thinks that it should manufacture the product effectively while attempting to reduce prices so that products are accessible to everybody. The company engages in mass production while working to enhance distribution For instance, the highly competitive, price-sensitive Chinese PC industry is dominated by computer manufacturer Lenovo thanks to its low labor costs, excellent production efficiency, and wide distribution.

Limitations

The managers could develop limited mindsets and lose sight of client satisfaction. Later, they might recognize that the marketing objectives and plans need to be revised. Additionally, if the product's quality starts to deteriorate, that may become a problem.

• Selling Concept
  • The notion that consumers won't buy enough things until a large-scale marketing effort is launched is a promotion effort in the selling concept. For instance, blood donations and insurance. Instead of concentrating on what the market wants, the marketing team's goals are to sell anything the company produces.
• The Product Concept
  • According to this theory, consumers will only favor goods that offer the highest levels of performance, quality, and novel features. According to this theory, marketers continuously work to improve their products.
• The Marketing Concept
  • According to this theory, fulfilling organizational aims and objectives rely on the desires and needs of the target market and favorably outperforms rivals in providing the desired satisfactions. According to this idea, focusing on client values and satisfaction is the key to generating sales and profits. We don't have a marketing department, we have a customer department, says Southwest Airlines' colorful CEO Herb Kelleher.

The Societal Marketing Concept

This idea challenges whether the idea of pure marketing ignores potential conflicts between consumers' short-term desires and their long-term welfare. Can a business that satisfies customers' immediate needs nevertheless uphold their long-term interests? According to the societal marketing notion, marketing strategies should provide value to customers by preserving both their own and society's well-being.

• Preparing an Integrated Marketing Plan and Program
  • The target market for the company's products and services are described in the business marketing plan. The marketers then create an integrated marketing plan that truly provides the target audience with the value they were hoping for. The customer relationship can be built if the marketing plan is put into practice, which has beneficial effects on both the customers and the business. It also includes the marketing mix, a collection of promotional items used to carry out the company's marketing plan.
• Building Customer Relationship
  • ​​​​​​​The customer relationship is relevant to the fourth phase. No business can survive over the long haul if it cannot create a close relationship with its clients. Therefore, every business seeks to manage its relationship with its customers from a variety of perspectives. Nearly all businesses now use Client Relationship Management (CRM), one of the key ideas in modern marketing, to develop and sustain profitable customer relationships by providing the highest levels of customer value and pleasure.

Capturing Value From Customers

Building a relationship with the consumer through the creation and provision of exceptional customer value is what the first four steps of the marketing process are all about. The last phase now entails obtaining value in return in the form of present and upcoming sales earnings and market share. If a business is successful in providing superior customer value, it will also produce extremely satisfied customers who will purchase more of their goods. This indicates that the firm generates higher long-term returns. Here, we go over the results of adding value for the customer.

• Creating Customer Loyalty and Retention
  • Customer satisfaction is produced through strong customer relationships. These satisfied consumers are devoted and spread the word about the business and its goods. Therefore, the goal of customer relationship management is to increase both customer satisfaction and joy.
• Growing Share of Customers
  • A share of consumers is the portion of customers that a company buys from in its product categories. So, while a restaurant seeks to increase "share of stomach," a bank wants to raise "share of wallet".
• Building Customer Equity
  • Customer equity is the sum of all the values of the company's clients. High customer equity is the ultimate goal of customer relationship management.

Reference

Kotler, P., & Armstrong, G. (2013).

Kotler, P., & Armstrong, G. (2013). Principles of Marketing. Chennai: Pearson India Education Services Pvt Ltd.