Meaning of market
The common usage of market means a place where goods are bought or sold. A market need not necessarily mean a place of exchange. The word market is commonly used and may even mean or aim in any of the following:
• Market may mean a place where buying and selling take place;
• Buyers and sellers come together for transaction;
• An organization through which exchange of goods takes place;
• The act of buying and selling of goods (to satisfy human wants);
• An area of operation of commercial demand for commodities.
Marketing is a human activity to satisfy needs and wants, through an exchange process. A demand is a want for which the consumer is prepared to pay a price. A want is anything or service the consumer desires or seeks. Wants become demands when backed by purchasing power. A need is anything the consumer feels to keep himself alive and healthy. A transaction consists of a value between two parties. The aim of marketing is to make sales in order to earn reasonable profit for the producer.
Marketing is the creation and the delivery of a standards of living; it is finding out what customers want, then planning and developing a product or service that will satisfy those wants; and then determining the best way to price, promote and distribute that product or service. The purpose of business is to create a customer by which stress is laid on two aspects: (a) identification of consumer needs, and (b) organizing the business to meet these needs. The modern concept focuses on the consumers and their satisfaction. The approach of modern marketing is consumer-oriented instead of solely product-oriented.
Objectives of Marketing
In the modern business world the objective of marketing is more than making profit. The following are the aims of marketing:
• Intelligent application of modern marketing policies;
• To develop policies and their implementation for a good result;
• To suggest solutions by studying the problems relating to marketing;
• To find sources for further information concerning the market problems;
• To strengthen existing marketing function;
• To take suitable actions as required.
Importance of Marketing to the Society
In today’s society marketing plays a major role.
• It is a connecting link between the consumer and the producer. Marketing process brings new items to retail shops, from where the consumers can buy them.
• It helps in increasing the living standard of people. Because of large scale production, prices of goods come down. Thus reduction in price will result in a higher standard of living.
• It helps to increase the nation’s income. Efficient system of marketing reduces the cost to the minimum, this in turn lowers the prices and the consumer’s purchasing power increases. This will increase the national income.
• It increases employment opportunities. For continuous production continuous marketing is needed. Thus increased activity provides more job opportunities to many people.
• It helps in selling surplus goods to other countries where there is demand for such goods.
Merchandising is only product planning. It aims at the internal planning relating to products or services for marketing at the right time, at the right price and in proper colour, quality and sizes.
Selling is the need of the sellers. It is the internal aim of business. Thus it is only a part of marketing study. Marketing is much wider than selling and much more dynamic. Selling revolves around the needs and interests of the seller; marketing revolves around the needs and interests of the buyer. Selling seeks profits by ‘pushing’ the products on the buyers. Marketing too seeks profits, but not through ‘pushing’ of the products but by meeting the needs of the customers and by creating value satisfaction for them. A truly marketing-minded company tries to create value-satisfying goods and services which the consumers want to buy. What it offers for sale is determined not by the seller but by the buyer. Selling is certainly a part of marketing. That is the last function in the process of marketing.
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