Meaning, Evolution and Importance of Marketing

Concept of Marketing

Marketing is a socio-economic process and the process of a company associated with buying and selling of goods and services. It includes advertising, selling and distributing products to the people. The main aim of marketing is to meet the needs of society. Marketing is everything that a company does to acquire a customer and maintain the relation with customers.

The communication between a company and the consumer audience that aims to increase the value of the company or its merchandise or, at its simplest, raises the profile of the company and its products in the public mind is called Marketing. In other words, marketing means identifying, anticipating and satisfying customer's need and desires. Marketing can be classified into two aspects: they are a narrow and broad concept where narrow concept refers to the physical transfer of goods and services from the producer to the consumers and broad concept refers to the functions before production to after sales services which facilitate the transfer of ownership.

Traditional Concept of Marketing

As we know that, traditional concepts of marketing have a narrow approach which emphasizes on the physical environment of economic goals and services. In other words, it can be defined as the transfer of ownership of goods and services through physical distribution. TV spots are just one example of traditional marketing. The concept of the market is product oriented as well as it involves the exchange of goods and services for money.

According to Mitchell – “Marketing includes activities involved in the flow of goods and services from production to consumption.”

According to American Marketing Association – “Marketing is the performance of those business activities that direct the flow of goods and services from producer to consumers or user.”

Modern Concept of Marketing

The broader concept of marketing is related to the satisfaction of needs and wants of a group of customers. It is the performance of business activities that direct the flow of goods and services from the producer to the consumer or user as well as it can also satisfy customers and accomplish organization's objectives so, it is customer oriented marketing which aims at earning profit through customer's satisfaction.

According to American marketing Association, "Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create an exchange that satisfies individual and organizational objectives."

According to Kotler & Armstrong ,"Marketing is a social and managerial process by which individuals or companies create value for customers and build strong customers relationships in order to capture value from customers in return."

Evolution of Marketing

It can be explained under following stages:-

Self-Sufficient Stage:

Human wants were limited in the earliest stage. With the help of agriculture, hunting and cattle farming they had to fulfill their basic and additional needs and wants. They neither buy any goods nor they sell any goods. They just produce what they needed to consume. So, this stage is known as self-sufficiency stage of human being.

Stage of barter system:

The barter system is an old method of exchange which has been used for centuries and long before money was invented. In the beginning stage of civilization, people used to exchange goods with each other to satisfy their wants. So, this concept of exchanging goods and services was developed in the human society which is known as a barter system.

Stage of marketing system:

In the stage of barter system ,people had to travel different places for buying necessary goods for exchange. So, to control such problems people started to use a particular place for exchange which is created as the stage of the marketing system.

Stage of monetary system:

In the beginning of civilization, people had many difficulties in the measurement of transfer of goods and services. So, to solve the problem of barter system, the currency was introduced at the first in the form of metal currencies.

Stage of town marketing:

The development of transportation and communication facilities provided a use for industrial development and promotion of business activities. Similarly, industrial houses established for the production of finished products for the systematic and institutional development of industry, trade, and auxiliaries.

Stage of international marketing:

Marketing performance has not remained limited to the local and town market with the development of industry and commerce.It has spread throughout the world. At present various international organizations such as GATT, UNCTAD, ITC is established for institutional development of trade.

Importance of Marketing

The activity of buying and selling goods or services is called marketing. This definition is very simple but cannot cover all the activities of marketing.In this modern age, the meaning and scope of Marketing are not limited only to buying and selling goods.

The importance of marketing are as follows:-

Importance of Marketing to Consumer

Marketing is very important to consumer. Marketing is necessary for day to day life as marketing helps in consumers satisfaction, gives product information provide selection facility and raise in living standard of people. The services and facilities provided by marketing to consumers are:

• Customer Satisfaction:

With the help of marketing,consumers can use the goods or services which ever they need or want. they get satisfaction from this.

• Selection facility:

The similar type of goods or services produced by different companies can be found in markets. Marketing helps us to select goods or services according to our need, interest and wants.

• Product Information:

Consumers can get necessary information or messages about different companies about their product or services quality using the method only with the help of marketing.

• Standard of living:

Marketing helps to improve lifestyles and living standard of consumers. Consumer lifestyle and living standards rise high when they can get and use the goods and services which they need.

Importance of Marketing to Business

Marketing plays a vital role in the development of business. Through the help of marketing the business can achieve the organization goals .Companies can sell their products with the help of marketing. The importances of marketing to business can also be explained:

• Revenue generation:

In business, there are many functional areas like production,human resources, finance, marketing etc. among them marketing play an important role in the generation of the income. Although, every activity has its own role in earning a profit marketing play a vital role.

• Information for planning and Decision-making:

Marketing provides information for planning and decision-making or a different issue. Marketing provides information about demand for goods and services, needs, interest, wants etc. of the consumer which in turn helps the organization in planning and decision-making process.

• Mass Distribution:

Nowadays, good or services are produced in mass scale. Mass production with the mechanization and specialization minimizes cost. Only marketing has the role in effective selling and distribution of such mass scale production. Marketing is the art of selling right products to right customers at a right time.

• Increase in goodwill:

The success of any business depends on the satisfaction of its customers. If different goods or services are provided to the customers, they trust and become loyal to the business which increases the good will of the business and helps to attain long-term loyal customers.

Importance of Marketing to Society

Marketing plays a vital role in society and nation to perform business activities as it is important in employment generation, poverty alleviation, utilization of natural resources etc.The various importances are listed below:

• Employment Generation:

Marketing is necessary for generating employment opportunities in the society. Millions of people have got employment in buying, selling, advertising, warehousing etc. in the process of transferring goods or services from producers to consumers.

• Poverty Eradication:

Marketing helps to decrease the poverty prevailing in the society.In the lack of marketing neither agricultural products can be sold out easily nor the major sectors of the economy like agriculture and industry cann be developed properly. Marketing plays a decisive role in eliminating poverty.

• Rise in standard of living:

Marketing occupies an important place because it takes responsibility to create, improve and raise living standard of human society. It produces goods or services according to the needs of the people, supplies to them and improves their living style.

• Creation of Utility:

Marketing creates and increases the form place, time, possession and information utility of a product. Product planning and development creates from a utility, exchange creates possession utility, transportation creates place utility and research and promotion create information utility of products.

• Optimum utilization of resources:

Marketing helps in proper utilization of natural,physical,financial, human resources and means available in the society. Marketing plays an important role in the economic development of any country.

References:

Koirala, Dr. Kundan Dutta. Elementary Marketing. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd, 2014.

Thapa, Gopal, Dipendra K. Neupane and Dilli Raj Mishra. Introduction to Marketing. Kathmandu: Asmita Books Publishers and Distributors (P) Ltd., 2014.