The Role of Marketing
Marketing: Creating a product, and planning and carrying out pricing, promotion, and placement of good or service.
People are constantly coming into contact with some form of marketing every day, often without realising it. Marketing is not just advertising. It is the process of:
Creating a product.
Planning and carrying out the pricing.
Promotion and placement of the product by stimulating buying exchanges in which the consumer and the producer profit in some way.
Marketing is not only important for businesses but also for the global economy and consumers.
Coca Cola is sold in virtually all countries in the world.
Japanese cars such as Toyota and Mazda have increased their market share in Australian economy.
If a person wishes to purchase a computer there are many options available such as IBM, Compaq and Hewlett Packard.
Effective marketing is a common thread in each of these situations.
Marketing increases consumer spending and consumers benefit from marketing as they are made aware of the products and services available. To improve their market share businesses will try to improve their goods and services and offer them to consumers at more competitive process.
Marketing Concept: Business owner's efforts to satisfy customers and achieve a profit.
Business owners need to be aware of the relationship between marketing and business success and should factor the marketing concept into their planning activities.
The marketing concept is different from the selling concept. The differences between the two are outlined in the table below.
Emphasis on the product.
Company first makes the product and then works out how to sell it.
Management is sales-volume orientated.
Planning is short-run orientated, in terms of today's products and markets.
Stresses needs of seller.
Emphasis is on the customer.
Company first determines wants...