The Concept and Process of Marketing

Marketing is that concept which can enable an individual to create an idea

into reality, if it is clearly understood and applied and it is driven by ones
intuition, creativity, inspiration and innovation. If approached scientifically,
it can help an organization to introduce new products and if skilfully done,
it can identify new marketing channels for product introduction. Thus the
marketing concept has been explained as a marriage between behavioural
and management science.
1.1. Elements of the Marketing Process
Even though many experts have different views on the elements of
marketing process, still the objective of the marketing activities and
strategies are used to increase the profitability of the business. A
marketing process is often driven by the inputs of marketing research
conducted. Through marketing research, the marketer can identify the
target segment as well as it helps to develop strategies for product
offering and relationship building. The fundamental of marketing process
is explained in the below figure.

Elements of marketing
process
Needs
and
Wants

Products

Exchange
Value and
Utility and
Satisfacti
Transactio
on
n

Figure 1

Markets

Source: Made by Student (2012)

Needs and Wants: A need is something that one has to have. A need is a
resultant of lack of basic satisfaction and it is absolute necessary to have.
For example: food, shelter and cloths are the basic needs of an individual.
If one is deprived of food, he wont survive for long. Thus making need as
an important factor in human existence. A marketer cant influence the
needs of an individual. Wherein want is something that one likes to
have, it is not necessary to have. The choices of wants are dependent on
many factors as well as on the societal culture. For example: an individual
needs food for survive, but from the choices of burger, pizza and chicken
he might want to have burger. A marketer can influence the wants of an
individual.
Products: Product is an important element in the marketing concept as
well as an important factor under marketing mix. If the product is well
known then the strategies on placement, promotion and pricing could be
formed. Packaging also plays a role in marketing a product as it attaches
an intangible value to the product.
Value and Satisfaction: To get a competitive edge, an organization has to
acquire customers as well as retain them. This could only be done if a
customer perceives value in the product offering. Among the choices of
different brand products, a customer would choose the one with high
value as perceived by him. Value is always termed as the product
offering benefits versus price among the other choices. Wherein,
Satisfaction is termed as product performance versus expectation. If a
product performance is par with the customer expectation, he is satisfied.
Organization goes beyond to provide value and satisfaction to retain
customers.
Exchange Utility and Transaction: A successful marketing is not only
limited with the needs, wants and values but also a transaction of
something that is desired by both the parties involved in the transaction.

The sole purpose of marketing transaction is to bring in a win-win situation

for customer as well as for the organization.
Markets: The homogeneous group of people with common needs and
wants and ready to exchange utility for the needs and wants are termed
as a market.
The continuous flow of product and services is required for a market to
function smoothly. It is also important to maintain an exchange of
communication by all the parties involved in the transaction as well as the
organization should provide all the information about products to the
customers.

1.2. Benefits and Costs of Marketing Orientation

Even though there are many definitions which explain the concept of
marketing orientation. But there are two among all which describes the
best about it.
Market orientation is shaped by long term focus and profitability. It is a
tripod which stands on three pillars and they are customer orientation,
competitor orientation and inter-functional co-ordination.
Marketing orientation is the gathered information spread across different
functional departments in an organization and which shapes the
marketing intelligence on the current and future needs of a customer.
The benefits of marketing orientation are as followed:
Marketing orientation and sales growth are directly proportional thus
marketing oriented companies have higher growth sales.
Marketing orientation is directly related to market share thus a
marketing oriented company will have increase in market share.
The chances of new product success are more in a market oriented
organization as the product success rate and market orientation are
correlated with each other.
Even though it is argued that it is an expensive business to implement
marketing orientation by an organization and often compared with the

success and failure of the marketing organization. But the fact is that the
benefits associated with implementing marketing orientation out numbers
the expensive argument.
The cost associated with marketing orientation could be broken into:
Market Research: Organizations have a choice of doing in house
research or hire an agency. But in both cases there is an expense
associated with it.
Cost involved in designing segmentation, targeting and positioning
strategy.
A general product is always cheaper than the customer product. For
customer acquisition and satisfaction it is mandatory to provide
customised products.
The cost involved in promotional activities such as advertising, sales
and promotion are also expensive.
The cost involved in forming a distribution channel.
An organization is valued on the basis of parameters like rate of equity,
profit generated and market domination. The insights of research study
states that there are most likely chances of marketing Orientation
company growing, well planned and works closed by coordinating with
inter departments.
In contrary, the non market orientation companies are the one with low
running costs and thus make it profitable. But the sustainability and
continuous growth is still questionable.