Q.3. Discuss the nature of marketing. Also, differentiate between marketing and marketing. Or explain the meaning, nature, and scope of marketing.
Marketing is an activity of selling and purchasing of goods or services. It comprises of all activities Be producing, interacting distributing and exchanging products/services that offer value to the customers. Marketing considers the changing requirements of the consumers apart from providing them with basic products or services
Scope of Marketing
The main purpose of marketing is to achieve the organisational harmonising activities that help to attain customer satisfaction.
The scope of marketing is described as follows:
1. Analysing Consumer Needs and Wants: Marketing is the study of needs and wants of consumers. This is necessary to fulfil consumers’ needs in the best possible way. Finally, the production of goods and services is carried out on the basis of consumer preferences.
2. Pricing Decisions: Product pricing is also defined by marketers. The pricing policy varies from product to product. Different factors, such as marketing goals, stage of product life cycle, competition level, etc., are considered for determining pricing policies. Product Planning and Development: The marketing process begins with an idea and ends up with product development. Product planning involves various activities, such as packaging and product line decisions generation, such as branding.
4. Promotion: Marketing is also responsible for promoting products of an organisation. Marketers use different techniques such as advertising, sales promotion, personal selling, etc. An appropriate promotion mix is designed to achieve marketing objectives.
5. Distribution: Designing of an effective distribution channel for improved sales and profit is also an important scope of marketing. The study of distribution channels helps to cater a large number of customers at low distribution cost.
6. Analysing Consumer Behaviour: An effectual analysis of consumer behaviour is essential to identify the pattern of consumer buying. This enables the marketers to segment and target the market.
7. Competitor Analysis: This analysis is done to determine the strengths and weaknesses of various competitors in the market. A detailed evaluation of competitors’ sources of profits, competencies, resources, cost structure and differentiation and positioning strategies are done to figure out the most competitive organisation.
8. Company Analysis: In marketing, company analysis is carried out by evaluating the cost structure and company’s resources. The actual position of the company is estimated on the basis of its competitors. Marketers can also determine the profit earned through different product offerings across different customer segments through accounting department.
nature of marketing
The nature of marketing is as follows:
1. Marketing is an Integrated Process: Marketing is a cohesive process of numerous allied activities that makes it distinct from other features of marketing. It comprises of functions related to planning and control. Marketing also serves the social needs of society by satisfying the consumers’ needs and wants.
2. Marketing is Goal-oriented: The goal-oriented characteristic of marketing is considered the most significant. It provides benefits to both, ke. buyer and seller. They share mutual benefits by fulfilling the customers’ needs and earning profits from customers through sale of products and services.
3. Marketing is a System: Marketing functions as a system in which several sub-systems are involved In marketing, society acts as a source of input and these inputs are processed into outputs which are further provided to the society.
4 Marketing is a Continuous Process: Marketing is a significant functional aspect of management that encompasses continuous planning, implementation and control. So, it is considered as a complex, continuous and inter-related process,
5. Marketing is a Science as well as an Art: Marketing is closely related to social and behavioural sciences, though it has developed from economics. It includes various subject areas like psychology, economics, anthropology, law, sociology, information technology, etc.
6. Marketing is Universal: Marketing is not limited to business activities but it plays a key role in other organisations also. In social and other organisations, marketing is used to promote programmes and initiatives such as adult education, family planning, public harmony, environmental protection, national integration, etc. Such a marketing is known as social marketing.
7. Marketing is Customer-oriented: Customer is the centre of focus for all activities related to marketing. The existence of marketing is to identify and satisfy the needs and wants of present consumers as well as future prospects
8. Marketing is Creative: Time, place and possession utilities are created by marketing. The creation of time utility is done by conserving products for future use. Delivering of products to places where they are genuinely required, creates place utility. While, possession utility is created by transferring products and services from producer to customer.
9. Marketing is an Exchange Activity: Marketing is an on-going and dynamic practice that involves exchange of technology, ideas, services and information.
10. Selection of target markets: It is just not possible for a marketer to satisfy one and all in the market. Instead of making an unrealistic attempt, a marketer has to select target markets. So, marketing enables marketers to start with market segmentation, choosing a target market, identifying the needs and wants of the target market, and satisfying these needs more effectively than their competitors using relevant marketing mix.