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:

  1. ·      The physical flow of products
  2. ·      The flow of ownership (who owns what at each stage)
  3. ·      The flow of payments
  4. ·      The flow of information
  5. ·      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.