Classification of related Marketing Terms

The term market, marketing, marketable, and marketing management are variations of a single unifying concept – exchange. Classical and neo-classical economies defined market as a place or situation where voluntary exchange took place between sellers and buyers to enhance the mutual benefits of all parties. This meaning of the term is quite accurate today, but the marketing manger gives it a slightly different focus by emphasizing the concept “transaction” which is an exchange of values between parties.

Value-creation and value-delivery is the main task of marketing. Marketing in its entirety is a value –creating and value-delivering process. The whole bunch of tasks involved in marketing, serve the purpose of value delivery. They actually form a sequence leading to value delivery.

Marketing planning, buyer analysis, market segmentation and targeting are concerned with value selection. Product development, manufacturing, service planning, pricing, distribution and servicing, are concerned with value creation & value delivery. Personal selling, advertising, publicity and sales promotion are concerned with value communication. Activities like market research and market control assess the effectiveness of the value delivery process, the level of satisfaction the customer has actually received and how it compares with the firm’s intention as well as with other competing offers for the purpose of enhancing value.

As a general rule, the economist is interested only in things that are marketable. A good or service is marketable if it is desired by someone and he or she is willing to give up something of value to obtain it. It must be relatively scarce and capable of yielding benefits of some sort to the buyer. Value implies worth and relates closely to the idea of usefulness or satisfaction. A key problem in marketing management is how to produce marketable products and how to further enhance the marketability of products already in the market.

In a marketing endeavor, what the firm offers to the customer is not a mere physical product; it offers a value proposition. The product offer consisting of the best possible benefits/value is put forward as a value proposition, explaining how the offer matches the customer’s requirement s and how it works out to be the best among all the competing offers.

Marketing and marketing management are largely the consequence of rapid economic growth and large scale enterprises. Modern marketing was little more than a sales tool when agriculture and small business dominated the economy. In the micro context (i.e. emphasis on intra-firm activities) which is used, marketing is the business function concerned with controlling the level and composition of demand facing the company or organization. The paramount objective is creating and maintaining the demand for the firm’s products as opposed to trying to force customers to buy goods because they have been produced and need to be sold. Finally, marketing recognizes the need to manage the demand for services, which are becoming a larger component of GNP year after year.

Marketing management may be viewed as regulating the level, timing and character of the demand for one or more products of the firm. Specifically, it is the planning, organizing, controlling, and implementing of marketing programs, policies, strategies, and tactics designed to create and satisfy the demand for the firm’s product offerings or service as a means of generating an acceptable profit. In essence, the marketing manager is the “demand manager” for the firm; the specialized expert for stimulating all activities relating to product planning and development, pricing, promotion, and distribution.

All organization must engage in marketing as a basic principle. Non-profit organizations have a product (usually a service) which must be kept “marketable”. So do universities, hospitals, libraries, museums, and so forth. In the public sector our elected officials are marketing managers, often under the guise of “lobbying” their colleagues to support some project such as a new dam or product price supports which the voters back home need.