MGT301 Latest Final Term Notes 2025
What Is Marketing and How Can It Be Understood
Marketing plays a vital role in
every aspect of our lives. It deeply influences how consumers behave and make
everyday choices. From the toothpaste we use each morning to the clothes we
wear, most of the products we consume are introduced to us through marketing
and advertising. Marketing helps consumers make informed decisions, discover
new products, and stay updated with the latest trends. Businesses that succeed
are those that develop strong marketing strategies and practices. To better
understand its importance, let’s begin by exploring what marketing really means
and some essential related terms.
The term marketing
originates from the word market, which functions both as a noun
(referring to a place) and a verb (meaning the act of promoting or
selling products). As a noun, it refers to a place where goods are exchanged,
and as a verb, it means the act of bringing a product or service to customers.
In general, marketing is the process of delivering a product, service, or idea
to the target audience effectively.
According to Philip Kotler, a
well-known marketing expert, "Marketing is the process of identifying and
satisfying human and social needs profitably." In simpler words, marketing
is about meeting needs in A method that creates value for both the consumer
and the company involved. It involves a range of activities that create
value for customers and help build long-term relationships with them. The core
idea of marketing is the exchange of value between businesses and consumers.
Now let’s explore some fundamental concepts in marketing
such as needs, wants, and demands:
Needs
Needs are basic human
requirements. A need is described as a condition in which an individual
senses a lack of something essential. When a person lacks something essential,
they feel the need to fulfill it. For example, thirst is a need it reflects the
body’s lack of water. Other essential needs include education, healthcare,
safety, and entertainment. Needs are universal and not created by marketers but understanding them helps marketers design better solutions.
Wants
Wants go a step beyond needs. Needs
are essential for living, whereas wants evolve based on cultural
influences, personality traits, and personal choices. A person may need food,
but they may want a burger, pizza, or biryani depending on their culture or
taste. For instance, a British person might prefer a sandwich, while a
Pakistani may want kebabs or haleem. Marketing aims to influence and satisfy
these wants by aligning products with consumer preferences.
Demands
When wants are supported by the
ability and willingness to pay, they become demands. Demand reflects not just desire but purchasing power. For example, if you are hungry (need) and crave
pizza (want), but don’t have the money to buy it, it remains a want. But if you
have the money and the willingness to buy it, it becomes a demand. This is why
marketers focus on creating demand – it’s where the actual business transaction
happens.
Value and Exchange
Value is the advantage or
usefulness a product or service delivers by satisfying a need or addressing a
specific issue. Marketing focuses on delivering value, as it leads to a
meaningful exchange between a customer and a business. For example, when you
buy eggs for breakfast, you give money to the shopkeeper and receive eggs in
return this is an exchange.
A transaction takes place
when the exchange of value whether in the form of goods, services, or payment is
successfully finalized. Every time a customer purchases something, a
transaction takes place.
Market Offerings
A market offering includes a
combination of products, services, information, or experiences offered to
satisfy customer needs. For instance, banks offer financial services, news
channels offer information, and confectioners provide sweet items. Marketing
ensures these offerings are delivered effectively to the right audience.
Managing Various Flows in Marketing
Marketers handle several types of “flows” to keep their
products moving and reaching customers:
- · The physical flow of products
- · The flow of ownership (who owns what at each stage)
- · The flow of payments
- · The flow of information
- · The flow of promotional messages
Different businesses in the marketing channel work together,
each with its own role, to promote products and share information. Each partner
helps ensure that products reach the right customers and that the entire
channel functions smoothly.
Types of Distribution Systems
Conventional distribution systems include independent players like
producers, wholesalers, and retailers, who all work separately and are not
bound by formal contracts. For example, retailers often buy goods from many
producers and sell them in different areas based on local demand. Each channel
member operates independently.
Corporate vertical marketing systems combine production and distribution
under a single ownership. This often happens when manufacturers own the retail
outlets that sell their products. A good example of this is in the textile
industry, where many factories have their own branded stores to showcase and
sell their products directly to customers.
Content Marketing
The saying “Content is king” holds true in today’s digital world. Content
marketing revolves around creating and sharing valuable materials like images,
videos, catchy phrases, or blogs that subtly promote a product or service.
Instead of directly pushing a product, it aims to build interest and trust by
providing information or entertainment that appeals to potential customers.
Advantages of Digital Marketing
Digital marketing has many obvious benefits compared to older marketing
techniques. For one, it’s much cheaper. Advertising on a billboard or
television can be extremely costly, while placing banner ads or videos on
websites is generally far more affordable. This cost-effectiveness opens up
opportunities for smaller businesses to compete and reach their audience
without draining their budgets.
Another key benefit is reach. Traditional advertising methods usually only
target local audiences for example, people who walk past a billboard or tune in
to a local radio station. In contrast, digital marketing breaks those
boundaries by reaching audiences worldwide, allowing businesses to attract
customers across different countries and cultures.
Interaction with customers is also much easier and more immediate through
digital channels. Unlike billboards or TV commercials that don’t allow any
direct response, online advertising can instantly connect marketers and
consumers. Features like chat boxes, messenger services, and click-to-chat
buttons let customers engage directly with a business while they’re seeing the
ad.
Finally, measuring the success of digital campaigns is far more precise. With
traditional marketing, it’s challenging to measure how many people actually
viewed an ad or responded to it. But online, businesses can see exactly how
many people clicked an ad, visited a website, or made a purchase. This allows
them to fine-tune their strategies and better understand what resonates with
their audience.
Conclusion
Marketing is not just about selling products it’s about understanding people, their needs, and delivering value in a profitable way. It shapes consumer behavior, supports business growth, and plays a crucial role in everyday life.
0 Comments