What is the Definition of Marketing?

To make an effective marketing plan we should know what is the definition of marketing.

When most people hear the word marketing, the first thing that they think of is advertising which, according to Kotler, is just a small portion of what marketing is.

There are many other narrow ideas about marketing among the common people. But what is marketing all about? From this chapter, students will be able to know about the fundamentals of marketing.

It is said that economics is the father of commerce. From that point of view, it can be assumed that marketing originated from economics. Adam Smith is considered to be the father of economics.

But little is known about the birth period and the father of marketing. Still, in history, we can see how practices of marketing started in the world economy. 500 years (Approximately) ago the cowboys used to use a hallmark over the skin of the cattle to make them different from one another whenever they sold their cattle in the nearest market.

Even they would charge different categories of cattle. From the marketing point of view, this process can be recognized as either assortment or more specifically as different categories of cattle.

From the marketing point of view, this process can be recognized as either assortment or more specifically as differentiation. This story is so far considered the first practice of marketing.

Giving maximum satisfaction to the consumers with the best quality products and services should be the prime task of any organization in this competitive world of marketing.

Square Pharmaceuticals Limited is recognized as the leader in Bangladesh’s rapidly rising medicine industry. Square Pharmaceuticals Ltd., the flagship company, is holding a strong leader4ship position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high-performance global player. In Kaliakoir, it has the best production plant in South-East Asia.

With this state of the art production plant and with a wide variety (See capsule) of high-quality medicines, Speared Pharmaceuticals is changing the marketing practices in the medical industry in Bangladesh. Square’s unparalleled quality, defecated sales for4ce and customer-centered pricing strategy show it is always one step ahead compared to its competitors in practicing marketing philosophy.

Square Pharmaceuticals ensures strict compliance with WHO cGMP standards and local regulatory norms in every phase of sourcing & procuring quality materials, manufacturing, quality assurance, and delivery of medicines.

Square Pharmaceuticals ensures strict compliance with WHO cGMP standards and local regulatory norms in every phase of sourcing & procuring quality materials, manufacturing, quality assurance, and delivery of medicines.

SQUARE is committed to undertaking an appropriate review, evaluation, and performance measurement of processes, business activities, and Quality Management Systems for continual improvement to ensure the highest standard, customer satisfaction, developing human resources, and company’s growth.

But nowadays marketing is more innovative and modern in the sense that technology is now part and parcel of marketing. One can now order the products online and get the product even sitting in their drawing room which one could not even think of just 10 or 20 years ago. Standard Chartered, HSBC, BRAC banks are offering credit cards and ATM cards that reduce the risks of shopping too.

Not only that the online banking system of BRAC bank is giving the customers the facility to deposit and withdraw their money from any branch in Bangladesh, to say nothing of the differentiated goods and services of the organization prepared according to the specific need of the customers (SEe BRAC bank capsule).

Think of American Life Insurance Company (ALICO), they are shifting their offices to the doorstep of the customer by sending their sales executives to the customer.

So it is clear the marketing people are now mainly concerned about customers and they say, “Customers are king”. And marketing practices in Bangladesh are now becoming very tactical and strategic as the market size is relatively small and the growth rate is slow. Banglalink gave 1000 SMS free with their SIM card that is worth taka 100 only just to get new customers.

Marketing is no longer a theory, rather it has become art and science as well by making the market a battlefield. But whatever be the initial and Preston practices of marketing, marketers are just trying to do two tasks:

  1. Attract, satisfy and retain customer
  2. Out compete for the rivals.

And all the successful companies are now customer-focused, for example, Meena Bazar is offering a wide range of products with a concept of ‘everyday low price’.

Definition of Marketing

Marketing means creating value for the customers to make a long-lasting relationship which in turn will maximize the value (profit) of the organization. Tips’ new definition is totally customer-oriented, competitors to make them loyal.

Initially, marketing was defined as a social and managerial princess by which people can get what they need and want to thought about creating and exchanging value with others. The new dimensions of marketing can be shown in the following way:

definition of marketing
The marketing process

This process starts with understanding the needs of the customers through the research process that should be conducted in the markets where the company is going to operate.

According to the research findings, the next task should be prepared for an offer that will maximize the value of the target customers.

A detailed marketing program through a marketing plan then will be prepared along with the competitive strategies to win the market share by delivering with the customers they are going to serve.

The ultimate result is the maximization of the company’s value or profit that will be coming from the customer base.

What should be the quality, features, size, and package of the product? What may be the prices of the product or service? How to communicate the product or serves with people and in which places should the product be delivered? These are all managerial side of marketing.

But side by side now companies are producing green and polluting free products. Companies are having some altruistic activities like sponsoring games, providing scholarships to the meritorious and poor students, and distributing aid to the flood-affected people which must be the social side of marketing.

These activities are not directly related to their sales but must have some psychological positive impact on people’s purchasing decisions.

From the above definition we can easily point out the fundamental concepts of marketing like need, want, demand, marketing offers, and value and satisfaction analysis, exchange/transacting, and market itself.

Before analyzing the concepts of marketing let’s have a look at some very frequently used terms of marketing about which people make mistakes.

Marketing vs shopping: These two terms are often used by the people as synonymous even though there is a thin line between them.

Marketing is the total process of producing (including raw materials collection) advertising and delivering the goods and services to the consumers whereas shopping means simply buying goods from the retail outlet.

Square is producing Meril soap by collecting raw material from the suppliers, setting the price of the soap, making people aware by providing advertisement, distributing the soap through their distribution channels.

A combination of these tasks can be called the marketing of Meril soap by a square group of Companies. But whenever an ultimate buyer is buying Meril, it can be easily called shopping.

Marketing vs selling: Now we know what marketing is but selling means only making an effort to sell the product to the ultimate buyer at a profit after getting the product from the producer.

For instance, though Square is engaged in the marketing of Meril soap agora is only selling the soap to the ultimate customer with a margin.

Customer buyer and consumer: An individual who visits the retail outlets and has an intention to buy the product may be called a customer a potential buyer is known as a customer.

But the person who is not only visiting but also purchasing the product from the shop is a buyer. On the other hand, the individual who is buying the product may not use the product.

So the person who is actually using the product is called the consumer. That means a buyer is necessarily a customer but a customer may not be an actual buyer rather a potential buyer.

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