Organizations engage in a number of activities to ensure that they fulfill their goals and objectives. One of the most important processes in an organization is marketing. Through this process, the organization is able to serve its customers and achieve its goals.
Marketing is an important concept for both profit organizations and not-for-profit organizations. Through this activity, the business is able to fulfill its goals in society and ensure its future growth and development.
This paper will endeavor to define marketing and provide an overview of the main objectives that this process seeks to accomplish. This paper will engage in an in-depth discussion of some of the core functions of marketing and discuss the prevalent marketing philosophies.
Marketing: A Definition
McDaniel defines marketing as “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders” (4).
This definition highlights the fact that marketing is a managerial function since it involves planning and execution. The definition also reveals that marketing entails more than the activities performed by workers in a certain department of the business.
This process involves more than just the company’s selling goods and/or services. Marketing consists of tasks that are planned and executed in order to achieve some identified objectives.
It involves specific elements such as pricing, distributing, financing, selling, and promoting. By fulfilling these roles, marketing plays a significant role in the development of the economy.
Objectives of Marketing
Arguably the most important objective of marketing is to help the organization to achieve its goals. For most businesses, the primary goal is to increase productivity and growth though greater profits. Marketing, therefore, aims to help the business to earn higher profits.
Marketing aims to satisfy customers by ensuring that their needs are met through the products and services offered by the business.
To achieve this objective, marketers are required to engage in marketing research, which reviews the demands of customers and then comes up with the products that will satisfy this demand.
Marketing seeks to develop a well-established consumer base for the products offered by the company and then assist in the growth of this base. The marketers are charged with the task of coming up with ways to attract more customers for the company’s products.
By increasing the consumer base, the company will achieve higher sales and therefore generate greater profits.
Marketing also aims to give the organization a good public image. This image is necessary for the fulfillment of the other marketing objectives of increased productivity and profits.
Through marketing, the business is able to identify customer needs and provide quality products and services at reasonable prices. This will lead to a positive perception by the public and enhance the company’s reputation.
Functions of Marketing
The marketing process is able to fulfill its major objective through a number of functions. The marketing functions assist in the movement of goods from the producers to the ultimate consumers. Buying is an integral function of marketing and this activity is carried out by all marketers.
Jain asserts that the success of the marketing process depends on the efficiency of the company to buy the products of the customer’s choice at competitive prices (26). As such, the efficiency of selling depends on the efficiency of buying which makes the two activities inseparable.
Through marketing, the organization is able to find the source of the products, place an order, and receive the products.
Marketing fulfills the function of pricing which entails determining the price of a product. This function is important since a sound pricing policy will affect the level of sales.
The pricing should be made in such a way that it attracts all types of customers while at the same time maintaining a good profit margin for the company. When engaging in pricing, marketers need to decide on various prices including wholesale price, retail price, unit price, and international price.
Pricing is important since it can give the product a competitive advantage over substitute products in the market. Researchers agree that a wrong decision in pricing may lead to a sharp decline in the demand for the product.
In order to set the most appropriate price, marketers consider some key factors. These factors are the cost of the product, the function of the product, the desirable profit margin, competitor’s prices, government policy, and the demand for the product.
Once all these factors have been considered, it is possible to come up with the most appropriate price.
Another key function of marketing is financing operations. Finance is the driving force of marketing since it is the lifeblood of all economic activities. Without available finances, it will be impossible to engage in marketing activities.
The marketing process assists in financing by obtaining goods in advance from wholesales, offering financial assistance to customers, and accepting deposits from authorized dealerships who will sell the company’s products.
Marketing is involved in the design, development, and management of products and services that will be sold to the company’s consumer base.
This is a very important role for successful marketing depends on the ability of the company to efficiently produce products and match them with the interests of consumers.
In the product planning phase, the type, form, and design of the product are determined based on the observed needs and tastes of the consumers. The development phase includes making decisions on features such as product quality and style.
The design and development stages aim at producing a product that will meet the requirements of the consumers and generate optimum profit to the manufacturer. This function also involves periodic appraisals of the quality of the product and the consumer perception of the products.
Based on the results of such appraisals, marketing make changes in the product to suit the current needs of the market or eliminate the product when it no longer satisfies customer needs or generates profit for the company.
Selling is easily the most recognizable task of marketing. This is the process through which a transfer of ownership of goods to a buyer in exchange for money occurs. Selling is an indispensable part of marketing for all marketing activities are aimed at selling the company’s product.
Through selling, the company is able to achieve the key objective of satisfying customer needs. In this process, the seller makes an effort to persuade the customer to purchase the commodity or service on offer. To fulfill the selling function, marketers have to identify potential customers.
The marketers may also have to look for ways to create demand for the products and select the channels for distribution in order to ensure that the products reach the potential customers. In the end, selling enables the business to satisfy the identified needs of the customers and make a profit.
Promotion is a core function of marketing. In this function, the customers are informed about the product or services being offered and its properties.
In most cases, customers do not know about new products being introduced and it is the role of the company to ensure that the customers are informed about the product, its quality, price, and where it can be purchased from.
Product promotion is mostly achieved through advertisement efforts. Advertisements help inform the consumers and also persuade them to purchase the product.
Over the decades, economists have identified a number of marketing philosophies that a company can utilize. These philosophies have various advantages and they reveal the area where the company focuses on its marketing endeavors.
In this philosophy, the company focuses on its core competencies instead of looking at the wants of the customers. The firm that embraces this philosophy looks at the resources at its disposal and decides on the best way to utilize them.
Products or services that are most convenient for the firm to offer are produced and presented to the market. A major shortcoming of this philosophy is that it fails to consider that what the business produces most efficiently might not be what the market wants.
This philosophy is built on an understanding that a high level of sales leads to greater profits for the company. Aggressive sales techniques are therefore encouraged to pressure people to buy more goods and services.
Sales-oriented firms encourage all participants in the distribution chain to push the firm’s product more aggressively. A sales orientation suffers poses a significant problem since it does not focus on the needs and wants of the marketplace.
Even with aggressive sales techniques, it is hard to convince people to buy products that they do not want or need.
This philosophy is based on the understanding that the major goal of the organization is to satisfy the needs of the customer. A firm that uses this concept understands that sales do not depend on aggressive sales techniques, but rather on the decision of the customer to purchase the product.
This philosophy, therefore, focuses on what the customer needs and is willing to spend money on. Market orientation involves seeking information about customers and competitors with the aim of identifying ways through which value can be provided to the customer.
The actions of the company are then configured to respond to the identified needs and provide value to customers.
This paper set out to engage in an in-depth discussion of what marketing is with focus on the objectives of this process and the core functions it achieves. It began by defining marketing and highlighting that marketing entails more than just selling products to consumers.
The paper highlighted that the major objectives of marketing are increasing business productivity, satisfying customer needs, and giving the company a good image.
These objectives are realized by fulfilling the core functions of buying, pricing, financing, selling, and promoting. From the points made in this paper, it is clear that marketing is integral to the success of all organizations.
Jain, Ashok. Principles of Marketing. Boston: FK Publications, 2007. Print.
McDaniel, Carl. Essentials of Marketing. NY: Cengage Learning, 2008. Print.