Marketing consists of the performance of business activities that direct the flow of goods and services from the producer to the consumer in order to satisfy customers and accomplish the company’s objectives.
A market is a place whereby transfer of title or ownership of goods and services can be effected.
IMPORTANCE OF MARKETING IN AN ECONOMY
1) It ensures consumer satisfaction.
2) It creates demand.
3) It improves the standard of living.
4) It serves as the key to economic growth.
5) It leads to healthy competition.
6) It creates employment opportunities.
FUNCTIONS OF MARKETING
1) Marketing activities ensures the exchange of goods and services between buyers and sellers.
2) It provides storage function.
3) It facilitates demand.
4) It ensures the placement of appropriate price.
5) It ensures effective and efficient distribution of goods through transportation.
Market research is the study of consumers demand by a firm in order to assist the firm in expanding its output and marketing of its product.
Marketing concept holds that a firm should focus all of its efforts on satisfying its customers at a profit. The philosophy of the concept states that marketing should begin and end with the customer.
Marketing mix is a combination of controllable variables such as product, price, distribution place and promotion. This spells out the marketer’s strategy to satisfy the needs of the consumers and to increase the sales of good.
The organisation must also contend with some uncontrollable variables like competitors, economy, consumers, technology etc.
FOUR P’S OF MARKETING
These are Product, Price, Promotion and Place product mix.
PRODUCT MIX: The starting point for determining the composition of the firm’s product mix is to decide which market to serve. After careful analysis of consumer’s needs and preferences and the competitive offering, the final choice of products to be produced for the market can be made.
PRICE MIX: Price is the money considerations for goods and services i.e. the exchange value, whereas price mix is the placing of price on a particular product that will suite the customers and fetch higher revenue to the manufacturer. The components of price mix are discounts, margins etc.
PLACE MIX: Place mix is considered with the distribution of goods and services to the consumer at the required place.
PROMOTION MIX: Promotion mix deals with the communication aspect. The purpose is to make the goods and services known to prospective customers i.e. creation of awareness.