I.

The introduction to marketing

concept

Gauga Tatiana

1. Marketing definitions
The definitions of marketing can be grouped into 2 major
categories:
1.
Classical/ narrow
2.
Modern/ broad

Classical definition of marketing

The performance of business activities that

direct the flow of goods and services from
producer to consumer or user.

This definition is oriented toward the physical movement of

economic goods and services. As such, it has several
weaknesses:
The role of physical distribution is overvalued
Government and non-profit organizations, which are frequently
engaged in marketing are omitted
The strong impact of marketing by many publics (employees
unions, stockholders, consumer groups etc. ) is not considered.

Modern definitions of marketing

The definition of marketing was officially recognized by the
American Marketing Association in 1985 when it replaced the
classical definition with this one:
Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods and services to create exchanges that satisfy
individual and organizational objectives.
Another modern definition widely used today is:
Marketing is the anticipation, management and satisfaction
of demand through the exchange process involving goods,
services, organizations, people, places and ideas.

Modern definitions of marketing

This definition has several important aspects:
1.
Anticipation of demand requires a firm to do consumer
research on a regular basis so that it develops and introduces
products that are desired by consumers.
2.
Management of demand includes stimulation, facilitation and
regulation tasks.

Stimulation tasks arouse consumers to want the companys

products through attractive product design, intensive
promotion, reasonable prices etc.

Facilitation is the process whereby the firm makes it easy to

buy its products through convenient locations, availability of
credit, well-informed sales people.

Modern definitions of marketing

Regulation tasks are needed when there are peak periods for
demand or when the demand is greater than the availability of
products.
3. Satisfaction of demand involves actual performance, safety,
availability of options, after-sale service etc. For consumers to
be satisfied , the goods, services, organizations, people, places
and ideas they patronize must fulfill their expectations.

2. The evolution of marketing

1.

The origins of marketing can be traced to peoples earliest

use of the exchange process: barter.
During the 1800s, the Industrial Revolution marked the
beginning of the modern system of marketing. It includes 3
stages:
Production period during the initial stages of the Industrial
Revolution output was limited and marketing was devoted to
the physical distribution of the products. Demand was high
and competition was low, companies did not have to conduct
consumer research and adapt to consumers needs. Their
goal was to increase production to keep up with demand.

2. The evolution of marketing

2. Sales period once a company was able to maximize its production
capabilities, it hired a sales force to sell its inventory. While the
company developed its products, consumer tastes received little
consideration. The role of advertising and the sale force was to make
the desires of consumers fit the products being manufactured.
3. Marketing period it includes 2 parts:
Marketing department era occurred when research was used to
determine consumer needs. As competition grew, supply began to
exceed demand, a firm could not prosper without input from marketing.
A marketing department was created . It conducted consumer
research and advised management on how to design, price, distribute
and promote products. Although the marketing department participated
in companys decisions, it remained in a subordinate position to
production , engineering and sales departments.

2. The evolution of marketing

Marketing company era integrates consumer research into all

company efforts. The central role of marketing has been
recognized by many firms and the marketing department has
become equal of others in the company. Competition is intense
and consumers must be drawn and kept to the firms brands.

2. The evolution of marketing

Marketing philosophies:
Production
concept
Product
concept

Marketing 3.0

Relationship
concept

Marketing
philosophies

Societal
concept

Marketing
concept

Selling
concept

Marketing philosophies:

Production concept- consumers will prefer products that are

available and highly affordable, the management should focus
on improving production and distribution efficiency.
Product concept consumers will prefer products that offer the
most quality, performance and features, the company should
devote energy to making continuous product improvements.
Selling concept consumers will not buy enough of the
organizations products unless it undertakes a large selling and
promotion effort.
Marketing concept achieving organizational goals depends on
determining the needs and wants of consumers and delivering
the desired satisfaction better than competitors.

Marketing philosophies:

Societal concept- the organization should determine the needs, wants

and interests of consumers delivering the desired satisfaction better
than competitors in a way that maintains or improves the consumers
and societys well-being.
Relationship concept - the organization should focus on building long
term relationship with its partners and consumers in order to make
them loyal to the company and its products.
Marketing 3.0. treats customers not as simple consumers, but as the
complex multi-dimensional human beings. Customers are choosing
companies and products that satisfy deeper needs for participation
and creativity. In mk 3.0 the future of mk lies in creating products and
company culture that include and reflect the values of target
customers.

3. Marketing functions and performers

There are 8 basic marketing functions:
1.
Marketing research and analysis
2.
Marketing management
3.
Product planning
4.
Price planning
5.
Promotion planning
6.
Distribution planning
7.
Consumer analysis
8.
Broadening the organization marketing scope/goal

3. Marketing functions and performers

Marketing performers are the
organizations or individuals that
undertake one or more
marketing functions. They
include:

Final
consumers

Marketing
performers

Manufactu
rers or
service
providers

Organizational
consumers

Wholesaler

Retailer

Marketing
specialists

Final consumers- family or person who buys a good or service

for personal, family or household use.
Organizational consumers institutions or person that buys a
good or service for use in its operations.
Wholesaler organization or person that buys items for resale
to retailers and/or to industrial users.
Retailer - organization or person whose activities involve the
sale of goods and services to the final consumer.
Marketing specialist firm or person that concentrates on one
specific marketing function