INTRODUCTION
The economic system of any given society is made up of three
basic elements. These are production, marketing and consumption. If the given
society is a rudimentary or primitive and stagnant one, production and
consumption often play prominent roles. Marketing, on the other hand, remains
inactive in such a primitive society since production is majorly at the subsistence
level. In this early stage of the society’s economic development when
production is still the problem, the marketing problem focuses chiefly on the physical distribution
of goods. Consumers as such, do not constitute much of a problem.
However, as the society advances to successively higher
stages of economic development, production capacity catches up with and, even
gets to be larger than market demand. The basic business (and marketing)
problem is then one of activating consumers as individuals and as members of
groups into buyers. Increasing attention is thus paid to the power of the
consumer.
Hence, as an economy of scarcity evolves into one of plenty, business
shifts its emphasis from production problems to marketing problems. In the
process, marketing receives recognition as the mechanism responsible both for
initiating and maintaining the flow of income into the business. It should be
noted that this flow of business income is also the result of the outward flow
of goods and services from producers to consumers, which marketing again, initiates
and maintains.
Furthermore, in an economy of
plenty, most people have to satisfy their material wants through outside sources. Whenever these wants are being
satisfied, the people discover that they must take part in various activities
related to obtaining needed goods and services from outside sources of supply:
In the first place, they shop for the goods and services they
need. Secondly, they read, and listen to advertisements on billboards,
handbills, newspapers, magazines, radio and television sets. Some even look around stores and markets,
thereby performing what is generally known as window-shopping. This is done in
order to find out what is available, and in which qualities at what process.
Thirdly they continual y decide among shops, products, brands and models.
Apart from actively or passively
participating in the processes of satisfying their wants, consumers are also
the targets of many activities performed by different groups of business
people.
One of such groups are advertisers,
who devote their time and efforts to getting information across to them. Another group conducts
studies on them on the likely marketability of some existing or new products.
Yet another set of business people gets the goods and services to them, and
finally “selling” them. The result of this consumer performed
and a business-performed activity is a flow of goods and services from producers to consumers.
DEFINITION
AND MEANING OF MARKETING
The term ‘marketing’ has been defined in many ways by different
authorities.
It is useful for us to pause
for a while and consult some of these definitions:
(i)
The management function that organises and
directs all business activities involved in assessing and converting consumer purchasing power into
effective demand for a specific product or service, and in moving it to
the final consumer or user so as to achieve the profit target or other
objectives set up by the company (British Institute of Marketing).
(ii)
Marketing consists of the performance of
business activities that direct the flow of
goods and services
from producer to consumer or user. (American Marketing Association).
(iii)
Marketing is the business process by which
products are matched with markets and
through
which transfer of ownership are effected (Cundiff and Stil ,1964)
(i ) Marketing is a total system of
business activities designed to plan, price, promote, and distribute
want-satisfying goods and services to present and potential customers (Stanton, 1964).
(i i) Marketing is human activity
directed at satisfying needs and wants through exchange process, while also
aspiring to achieve the market’s objectives (Olufokunbi, 1993).
(iv)
Marketing is social process by which individuals
and groups obtain what they need and want through creating and exchanging
products and value with other. (Kotler, 1984).
(v)
Marketing
is the function that assesses consumer needs and then satisfies them by
creating an
effective demand for, and providing, the goods and services at a profit (Johnson, 1982).
(vi)
Marketing is the business function that
identifies customers’ needs and wants, determines which target markets the
organisation can serve best, and designs appropriate products, services, and
programmes to serve, these markets (Kotler and Armstrong, 1996).
It is very clear from
these definitions that the term ‘marketing’ is open to varying definitions as
each authority thinks fit, hence no particular one has universal acceptance. However, the common theme is
that marketing is more than selling; it is the whole process
that occurs between the production of any surplus goods or services and
their consumption or use, and it is consumer-oriented. In actual fact, the most important need of the
student is not an exact definition, but to acquire a sound understanding
of what marketing means.
Perhaps as a
way of getting a better understanding of the term, we may reexamine the
definition given by Stanton (1964):
‘Marketing
is a total system of business activities designed to plan, price, promote and
distribute want-satisfying goods and services to present and potential customers”.
This definition given by Stanton has some significant
implications. Firstly, it connotes that the entire system of business action should be market – or customer-oriented. That is,
customers’ wants must be recognised and satisfied effectively. Secondly,
it suggests that marketing is a dynamic business process – a total, integrated process rather than a fragmented assortment of institutions and functions. Thus marketing is
not any one activity, nor is exactly the sum of several; rather it is
the result of the interaction of many activities.
Thirdly, the marketing programme
starts with a product idea and does not end until the customer’s wants
are completely satisfied, which may be some time after the sale is made.
Fourthly, the definition implies that to be successful, marketing must maximise
profitable sales over the long run. Thus, customers must be satisfied in order
for a company to get the repeat purchase, which ordinarily is so vital to success.
What do we gain from the above
analysis? Evidently, it should be clear to us that marketing is much more than
just an isolated business function. As Kotler and Armstrong put it, “it is
a philosophy that guides the whole organisation. . its goal is to create
customer satisfaction profitably by building value-laden relationships with customers”.
We can also
reason that the marketing department cannot accomplish this goal by itself. Consequently, it necessarily
needs to work closely with other departments in the company, as well as forge
some working relationships with other organisations throughout its entire
value-delivery system to provide superior values to customers.
From the systems view, therefore, marketing involves the whole
company, since everyone in the organisation should be seen to be
involved in selling and satisfying
customers. Everyone should also be seen to be making the highest profit for
the enterprise and using the resources of the company as efficiently as possible.
It is thus important to
stress that no section of the company should arrogate this marketing
responsibility to itself. This is because the concept of marketing is a
corporate affair, and the philosophy behind it must be understood by management
at all levels. To this end, therefore, marketing may be said to involve
finance, production, research, development, merchandising, advertising,
promotion, distribution and selling procedures.
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