Tema 1Definition of marketing
In classical terms marketing is defined as the performance of nusiness activities that direct the flow of goods and services from producer to consumer and users. The classical definition of marketing is oriented to physical movement of goods and services,that’s why it has several weaknesses. Disadvantages:
1.the role of physical distribution and market channel is overvalued 2.Government and non-profit organizations are not included in this definition. 3.strong imact of market activities by many publics such as employees,stockholders groups,and government agencies are not considered. The modern definition is much broader,because a good definition of marketing should not just include economic services,but also non-profit organizations people,places and ideas..The central to any definition of marketing should be consumer orientation. Market-is not just concerned with enlarging demand and selling goods such activities as promotion,ethics,product safety need to be included in marketing definition. The modern definition was officialy recognized by the American marketing association in 1985,when it replaced the classical definition with this one. Marketing-is the process of planning and executing the conception,pricing,promotion and distribution of ideas,goods and services in order to create exchanges that satsfy individual and organizational objectives. Marketing- is the anticipation management and satisfaction of demand through the exchange process involving goods,services organizations,people places and ideas (Philip Kotler) This definition has several terms:
1.anticipation of demand-requires a company to do consumer research on a regular basis in order to develop and introduce product that are desired by consumer. 2.management of demand include 3 types of tasks:
-stimulation task-makes consumer to want the company products through an attractive design,convenient packaging intensive promotion, reasonable prices. -regulating task-is needed when there are big difference between demand and supply. -facilitation task-is the process through which the company make easy to buy its product through convenient locations well-informed sales people or availability of credits. 3.Satisfaction of demand- involves actual performance safety and availability of products options. For consumers to be satisfied the goods,services they buy must fulfil theur expectations.
The earliest use of marketing activities may be considered barter period. During the industrial revolution the modern system of marketing started. It includes the following stages: 1.production period –(during the initial stages of the industrial revolution output was limied and marketing activities were focused on the physical distribution of the products. Because,demand was high and competition was low,companies dod not have to conduct consumers research,modify products or adapt to consumers needs. The main goal was to increase production to keep up with demand. 2.sales period-once a company was able to maximize its production abilities is higher a sales force to sell its inventory. Firs,the company,developed its products without analizing the needs and wants of its consumer. Marketing activities were to convince that the produced goods feed to consumers needs and wants. Production-selling-consumption
3.Marketing period include 2 stages
-marketing department period-as competition grew supply began to exceed demand,and the company coild not survive without marketing activities. So a marketing department wwas created.It conducted consumer research and adviced management on how to design,to promote,to price and sell products. Marketing department participated in company’s decisions,but it had a subordinated position to production or sales departemtns. -marketing company period- during this stage the central role of marketing has been recognized. Marketing department has become equal to other in the company. The most...
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