Overview of MarketingMarketingis defined as :“ The activity, set of institutions, and processes for creating, communicating, delivering, andexchanging offerings that have value for customers, clients, partners, and society at large.”(American Marketing Association)All organizations perform production and marketing of goods and services to create a benefit thateconomists callutility- want-satisfying power of a good or service.There are four basic kinds of utility –form, time, placeandpossession( ownership) utility
Types of UtilityForm:Making a product ready for consumption.Example: electronics, Furniture, wider selection of productsTime:Ensuring a product is available for a customer when they want it.Example:Umbrella in the winter,fasting cuisines , availability - 24 hoursPlace :Making goods or services readily and conveniently available to potentialcustomers.Example:Retail store location, KiosksPossession :Value consumers put on purchasing a product and having the freedom to usethe product as it was intended or finding a new use for the productExample:Sales in exchange with birr or credit card,Cups can be used for drinking or as a pen holder
The Marketing ConceptThe term marketing concept holds that achieving organizational goals depends on knowing theneeds and wants of target markets and delivering the desired satisfactions.Customer satisfaction is the customer’s feeling that a product hasmet or exceeded expectations.•Firm must communicate with potential customers to assess their product needs.•Then,firm must develop a good or service to meetthose needs.•Engage the whole firm in efforts to satisfy customers and to achieve goals (make a profit).Marketing must be understood not as a sense of making a sale - selling - but in the new sense ofsatisfying customer needs.
Contrasts Between the Sales Concept and the Marketing Concept
Marketing managers are responsible for most of the activities necessary tocreate the customers the organization wants, These activities include:Identifying customer needs.Designing goods and services that meet those needs.Communication information about those goods and services toprospective buyers.Making the goods and services available at times and places that meetcustomers’ needs.Pricing goods and services to reflect costs, competition andcustomers’ ability to buy.Providing for the necessary service and follow-up to ensurecustomer satisfaction after the purchase.
People buy the product that provides them the highest value.Value is the customers’ estimate of the product’s capacity to satisfy a setof goals.They usually value determine value by considering the three factors thatare called thecustomer value triad:Quality service and price.
Marketing information and researchThe most reliable source of fresh customerinsights is timely and reliable marketing information thatmay come from a variety of sources both inside and outsidethe organization.