DEFINITION OF MARKETING
Product-oriented Definition
Marketing may be narrowly defined as a process by which goods and services are exchanged and the values determined in terms of money prices. The American Marketing Association has defined marketing as “the performance of business activities that direct the flow of goods and services through producers to consumers or users’2 That means marketing includes all those activities carried on to transfer the goods from the manufacturers or producers to the consumers. It involves the exchange of goods and services for money. This way of defining marketing represents ‘product orientation’. It concentrateson selling whatever has been produced or manufactured by a business concern without caring for the requirements or demands of the customers. There are several weaknesses of this definition which are as follows:
(i) Exclusion of Non-economic Activities. The definition limits marketing to business activities and thus non-business activities like social marketing (e.g., population control) are not covered.
(ii) Lack of Customer Orientation. It is assumed that customers will buy whatever is offered to them. Their requirements need not be looked into before actually manufacturing the product. Thus, the orientation of the definition “we sell what we make” must change to “we make what we sell”.
(iii) Lath of Emphasis oit After-Sales Service. The importance of after- sales service is not highlighted. Every firm needs repeat patronage from customers to continue in the business. For this, after-sales service is an essential part of marketing.
(iv) Focus on Place Aspect. In the above definition, only one function ‘Place’ has been highlighted. Thus, the other Ps like promotion, pricing, product, packaging, etc. have been completely ignored.
The above definition suited the earlier days of sellers market when there was shortage of goods. Product-oriented definition of marketing is inappropriate in the present-day business environment where there are a large number of substitutes and keen competition in the market. It presumes that the process of marketing begins after goods have been produced and ends with their sale. But in the present-day business, marketing begins long before the goods are produced. The needs of the customers must be studied before the product development and actual production takes place. Marketing decisions must also be made regarding the market, pricing and promotion of the product. Marketing does not end with the final sale. The customer must be satisfied if a business enterprise expects his repeat orders. Because of these reasons, the concept of marketing has undergone a sea change. Progressive firms follow ‘consumer orientation’ in marketing because they recognise that consumers are often responsible for changes in business policies. Consumers are the force which give direction to the business activities. Consumers’ satisfaction and delight should be the main aim of the business activities.
Customer-oriented Definition
According to Cundiff and Still, “Marketing is the business process by which products are matched with the markets and through which transfers of ownership are effected.”3 Matching products with the market means determining the requirements of potential customers and supplying the products which meet their requiremeits. If a business organisation produces the products after assessing the rejuirements of prospective customers, it is more likely to be successful to achieve its objectives. The consumer-oriented marketing has_—_ a — philosophy in business known as the marketing concept’. zat cept emphasizes the determination of the requirements of -_.: .szers and supplying products to satisfy their requirements. roe car*Lamb has, thus, become an integrated process of identification, and satisfaction of human wants. To quote American Marketing
Marketing is the process of planning and executing the concern. promotion and distribution of ideas, goods and services to create that .satisfy individual and organizational goals”.4
,r-Oriented Definition
J. Stanton has given a system oriented definition of marketing. is a total system of interacting business activities designed to :.r. . promote and distribute wants sati siring products to target made ve organisational objectives.5
definition has several implications. Firstly, the entire system of activities should be market or customer-oriented. Customer’s wants recognized and satisfied effectively. Secondly, marketing is a dynamic za process. It is an integrated process rather than a fragmented assort institutions and functions. It is not just one activity, it is a result of many activities. Thirdly, marketing activities start with the of a product idea and end only after the customer’s wants are
satisfied. Finally, it is also implied that marketing must maximize as sales over the long-run in order to be successful in business.
