Concepts of Marketing
By: Alireza Azizi
Definition of Marketing
Marketing is the process by which companies create value for customers and establish a strong relationship with them to receive values mutually. This definition is stated by Philip Kotler on marketing issue. But many definitions of marketing stated, all refer to a concept.
In a broader definition, marketing is social and management process by which every person will meet needs and demands through exchanging value with others. Very simply, marketing involves creating transactional and valuable relations with the customer. Therefore, we define marketing as: Marketing is the process by which companies create value for customers and establish a strong relationship with them to receive values mutually.
Marketing process is done in four steps, that company by understanding customers, creating value for customers and building strong relationship with them. In the final step, company will earn its own reward by creating value for the customer. By creating value for the customer company receives its reward as sales, profits and capital of long-term customer relationships. So these four steps are: understanding the market and customer needs, designing a customer-oriented strategy, creating a marketing plan to provide superior value, establishing beneficial relationships with customers and satisfying them. If these four steps implemented fully and properly, its answer will be receiving the value of customer in order to make a profit and quality.
History of Marketing
Principles of official business that originates from the United States of America was taught in several universities of the USA as a separate business class. it is considered that as of commerce principal is passed through following three stages: “Production Period” where marketing was limited only by the production constraints (up to 1930); “Sales Period” in which company’s marketing productions imposed on the market (up to 1950); “customer Period” where the customer was located at the center of all marketing activities. In the 21st Century marketing has entered the era of interactivity.
Fundamental change in the definition and purpose of marketing in the 21st century is that as a business principle, it is expanded beyond mere facilitating the exchange of virtual and transacting between producers and consumers. In the beginning, the main focus of marketing was on the interest of the manufacturer. Products deliver to the customer at the right time, place and price. Early marketers’ basic premise was that manufacturers control the market. Management, functions, roles and processes all were placed around this model of management with a focus on manufacturers. This assumption is no longer valid in the information age of the 21st century.
Now in the early twenty-first century, what is the marketing? A new successful or accepted model that doesn’t exist in a large scale of world market dynamics (and often illogical), fickle and unpredictable customers that don’t fit a classic analysis; purchasing patterns and market forecasts; increasing in intangible services; market segmentation and new combinations; beyond the old and industrial categorizing; Increasing power of customers, and new marketing techniques and tools; or still it is not interpreted by organizations and marketing processes.
In the 21st century, markets have become more complicated and more globalized, so marketing as a professional principle have been changed that as a new profession lacks global transparency, classification, description of roles and tasks. Various companies and organizations wishing to make a definition on marketing based on their field style. Some companies still misdiagnosis marketing with sales; some of them even consider marketing as a subset of the sale. Others consider sales as a subset of marketing (which this case is more accurate). A small number with more reality recognize sales and marketing as management separate principals.
How should be our attitude to marketing? There is another strong argument that marketing is everyone’s role and not just the responsibility of the marketing department. “Marketing importance is much more than to be left only to the marketing department” David Packard on of Hewlett-Packard founder says. A modern view suggests that people who call themselves as marketing managers, in fact they are consultant and developer experts that stimulate and inspire the entire organization into the frame of mind, market-oriented or customer-centric strategies and practices.
In general, marketing is a strategic activity and an approach that focuses on outcomes of operations related to attract more consumers, to purchase your products frequently so that your company achieves more money. And it can be achieved only by implementing a comprehensive marketing program. In which specialists and marketing managers are able to design and implement a marketing plan to analyze the market and identify the needs of consumers.
Wherever and whenever the four principles of “need, needy, factors cover the needs and trade” exist, marketing and market govern there.