Nature of Marketing

Nature of Marketing

Marketing

Marketing is the process of management involved in identification anticipation and satisfaction of needs with property it plays an important role in the expansion of the market sales and hence profitability of the organization.

From 1900 to 1980 marketing management was not implemented by the business organization. Three key reasons are there for not implementing marketing management.

Certainty was more

The number of competitors were less

Lack of knowledge among customers

The above were the major reasons for not implementing marketing management in business organizations from 1900 to 1950. But as soon as the number of competitors increased, and customers’ knowledge increased the business organization realized the necessity of implementing the marketing management practices professionally.

Customer orientation

Marketing starts with the customer whereas selling starts with the product. Marketing management activities are based on customer. Consumer expectation, consumer behavior consumer perception, and consumer consumption pattern are the major factors of consumers that significantly contribute the marketing management practices.

 Example

            Automobile products in India such as cars are designed and manufactured considering the consumer’s expectations. The majority of consumers prefer a vehicle that is economical and affordable. 

            Healthcare service providers hospitals are constructed considering the health care service quality and patient satisfaction.

Exchange the Value to the customer.

            Marketing management enables the organization to deliver value with products or services to the customers. Perceived value by the consumer leads to an increase the sales and revenue and hence profitability of the organization.

Example

            Mobile phone companies provide the product with several features that enhance the value of the product that is perceived by the consumer. The company exchanges this value and generates more revenue or profit.

Dynamic nature

Marketing is an activity or functionality that can constantly evolve based on the needs of consumers, legal regulations, market demand, and technological advancement. Organizations need to make improvements or upgrades in marketing management practices to survive and be excellent in the market.

Example

1. Marketing strategies have been changed or corrected by Airtel and Vodafone after launching Jio. Jio in India launched with affordable pricing strategies. To survive in the market the competitors have to changes
2. The marketing strategies of all the companies have changed during the COVID-19 pandemic across the globe. The dynamic feature of marketing allows the organization to make improvements in the marketing strategies such as distribution strategy, pricing strategy, product strategies, and the like strategy.

Communication Oriented

            Marketing management practices enable organizations to transfer information between departments, subordinates and superiors, and all the stakeholders of business. Communication plays a vital role in maintaining excellence in the execution of all marketing management activities such as Distribution supply chain management, pricing strategies, branding, etc.

Examples

            Marketing management practices or activities start from the production of products to end consumption. All the activities

Persuasive

Marketing activities and practices are implemented to influence the consumers or customers effectively. The consumers are influenced by better advertising or promotional campaigns of the organization. An effective positioning strategy can also create an image of the product among consumers.

Marketing strategies such as segmentation make the groups of customers based on various factors. Segmentation helps business organizations to focus on potential customers.

Targeting determines the potential group of customers or segments that can be converted into potential and loyal customers.

Positioning helps to create an image of the product in the minds of consumers.

Different promotional strategies and pricing strategies can influence consumers to connect with the brand.

Hence marketing is persuasive which influences the customers effectively and properly.

Examples

Pricing strategies and services provided by Jio have influenced the customer’s lot. Hence in a short period, Reliance Jio created a better position in the market of telecommunication services. Now Jio has the largest part of the market compared with Airtel and Vodafone Idea.

Build a healthy Relationship with Customers.

Offering the product or services at an affordable price is not sufficient to make loyal customers. The business organization needs to take feedback from the customers regarding their perception and behavior towards that product or service sold. After-sales services play a vital role in making customers more satisfied and giving them more potential to refer other customers.