Definition of marketing
There are various definitions of marketing. One of the common definitions is given Philip Kotler, a marketing professor. According to Kotler, marketing is a system of business activities designed to plan, price, promote and distribute want satisfying goods and services to target markets, in order to achieve organizational objectives. The American Marketing Association (AMA), defines marketing, as approved in 2007, as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
Marketing is the business function that delivers customer satisfaction at a profit. It creates values for the customers and receives values from the customers in return. Marketing focuses on getting customers, and keeping customers satisfying their needs. Marketing creates values and satisfaction for the customer. It is the delivery of satisfaction to the customers at a profit.
Marketing as defined above is applicable in all these areas:
- In the profit-making enterprises
- In the government institutions
- In other not-for-profit organizations
Core marketing concepts
The core marketing concepts help to understand the basic principles of marketing. The core concepts include:
- Needs, wants, demands
- Products and services
- Customer value, satisfaction and quality
- Exchange, transactions and relationships
Let us see briefly the core marketing concepts:
Needs, Wants, and Demands
The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. These needs were not invented marketers; they are a basic part of the human makeup.
Wants are the form human needs take as they are shaped culture and individual personality. An East African needs food but wants Ugali or staple regional dish. Wants are shaped one’s society and are described in terms of objects that will satisfy needs.
People have almost unlimited wants but limited resources. Thus, they want to choose products that provide the most value and satisfaction for their money. When backed buying power, wants become demands. Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.