What are the nature and scope of Marketing? Explain the functions of marketing with its nature and scope- Philip Kotler’s Definition of Marketing and functions
What is Marketing?
According to Philip Kotler, “The term Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others”.
In other words,”Marketing is defined as the economic process through which goods and services are exchanged with the means of money value”. Here, it includes all the activities regarding transfer of goods and services from manufacturer to consumers or its perspective buyers. The transactions are taken place with the help of money. This way of defining marketing represents ‘Product Orientation’.
It is well said that, “marketing is incomplete without the market”. The term market represents the needs or wants of the potential customers who might be willing and able to engage in exchange of goods and services to satisfy that need or want. Thus, there might be shoe market, Malls, teenager market, Restaurants, labour market, complexes etc. As started earlier, marketing is an activity that is performed by business and non-business people with equal force.
Meaning of Marketing Concept
Meaning - According to ‘Philip Kotler’, ”The Marketing concept may be defined as a management orientation that holds that the key tasks of the organisation is to determine the needs, wants and values of a target market and to adapt the organisation to delivering the desired satisfactions more effectively and efficiently than its competitor.”
In Simple words we can say that, The Marketing Concept is a kind of Management Philosophy through which a marketing manager can set goals and objectives for the firm and the goals and objectives are set in according to the market situation so as to satisfy the needs and wants of the consumers.
This concept of marketing is based on three fundamental beliefs which are:
- The planning of all the companies should be made according to its targeted customers.
- The primary goal of the firm should be the profitability of the sales volume. And,
- All the marketing activities should be flow and co-ordinate according to the prescribed organisational structure.
Here, in the marketing concept, there are certain activities which should be kept in mind by the marketing manager while setting up the marketing goals and objectives. These concepts of marketing are-
- Production concept,
- Sales Concept,
- Marketing concept,
- Product concept, and
- Societal Marketing Concept.
Nature and scope of marketing
- Customer Focus – As we know that the main focus of marketing is the customers. Thus, the marketing intends to satisfy the needs or wants of the customers. Due to this, a marketer can optimism its cost for the customer and allowing the organization to focus on its core competencies in order to achieve its goals.
- Delivery Value – Delivery is the key objective of marketing to satisfy the customer needs and wants. The Customer value can be determined by dividing the benefit with cost.
- Surrounded by customer needs – Marketing is always starts with identifying the needs of the customers. Thus, the needs are turns into the features of the product that might satisfy the basic need of the customer.
- Part of environment – Marketing is a part of environment. Here, the environment is the total of all the resources and institutions which are related to the production and distribution of goods and services to satisfy human wants.
- Marketing System Affect the Company’s Strategies – Marketing has its own sub-system which interacts with each other and helps to form complete marketing system in response to company marketing strategy. Thus, a marketing system can easily affect the company’s strategies.
Scope of Marketing –
The scope of marketing can be understood in terms of the functions of the marketing manager. The major purpose of marketing manager is to generate revenue for the business by selling goods and services to the consumers. To satisfy the human wants, the marketing manager has to perform the following functions of marketing. the scope of marketing and functions of marketing are -
Scope Of Marketing -
- Product Planning,
- Distribution Channel,
- Sales management,
- After Sales Service etc.
The Scope of Marketing are described in briefly here..
Functions of Marketing -
1. Marketing Functions of Research
2. Marketing Functions of Exchange
3. Marketing Functions of Physical Treatment
4. Marketing Functions of Facilitating Exchange