Define Marketing using your own words.
Marketing, in my own words, is a fundamental factor for a business success as it is a process of spreading information about the existence of a product or service that can provide satisfaction to the needs and wants of the market, it also involves activities that will pursue the target market to purchase a products or services based on its benefits and image that guarantees the sales for a business.
State and explain different core concepts of marketing.
The core concept of marketing primary revolves around the market. The market is the place where you can found a certain group of people that have needs, wants, and demands for something.
The needs refer to something necessary for the survival of an organism. It can be distinguished into three: physical, social, and individual needs. We can also refer to the Maslow's Hierarchy of Needs in which he arranges the human needs into five levels. The first (psychological needs) and second level (safety needs) of Maslow's hierarchy fall under the physical needs or basic needs. Basically, these are the things necessary to maintain our physical being such as food, clothing, shelter, safety, and security. The next levels of Maslow's Hierarchy fall under the social needs. Man is a social animal that is why there is a need for belongingness, affection, and relationships. The highest level of Maslow's hierarchy is under the individual needs which refer to the needs of self-fulfilment, knowledge, and self-expression. If these needs are satisfied, human will crave for more; this is where Wants will appear. Wants are shaped by culture and personality; these are the desires of humans greater than their needs. Humans have unlimited wants, but there are only limited resources to fulfil it, therefore the wants become a demands.
Products are something that is offered in sale in the market to satisfy the needs, wants, and demands of the consumers. It can be a physical goods, services, places, persons, organizations, or ideas.
With wide number of products that can satisfy the consumers, they uses their perceptions of the product's value to choose what products can provide them the most satisfaction.
If the consumers finally choose what product can satisfy them, the exchange and transaction of the products takes place. This is an act of obtaining and offering of equal value between two parties. The deal that has occurred within these two parties can lead to relationship which is a bond that promises consistent transaction and exchange. This concept of relationship and transaction is occurred in the market.
The market is influenced by micro and macro- environment. The micro environment is the factors that affect the performance and decision- making of the market. These include the suppliers, company, competitors, marketing intermediaries, customers, publics. The company is legal entity that is responsible for the offerings in the market. Competitors are companies that offer similar products. Suppliers are referred to the sources of raw materials for the production of product and services. Marketing intermediaries are independent firms that assist the flow of product and services from the production to the final consumers. Customers are final consumers. And, public is where you can find the customer. On the other hand, macro environment are the external factors that affects the firm's ability, it includes the demographic, economic, natural, technological, political, and cultural. Demographic refers to the structure of the population. Economic is concerned with the production, distribution, and consumption of goods and services. Natural refers to something that happens within the nature. Technological refers to technological progress, institutional arrangements for development and application of new technology. Political are the factors affecting the laws that governs the market. And, cultural which consists of the influence of religious, family, educational, and social systems.
Expound the different stages of the evolution of marketing orientation.
Production concept - the increasing population is equal to increasing needs which has resulted in the scarcity of goods. To solve the scarcity in goods, the production of goods transitioned from home manufacturing to factories to be able to have mass production and meet the increasing demands. The only goal for this concept is to increase the supply of the products to be available for the increasing demand in the market. But, the continuous production has resulted to the increasing supply, therefore to maximize profit; they offered the products at the low price.
Product Concept- as the demands of the consumers have been satisfied with large scale supply of products, marketers come up with an idea to stay competitive in the market. They offer new kind of satisfaction to the customers through product development, performance and quality. The maximization of profit focuses in the superior product performance. The product with the best performance will mostly like to stay and compete in the market.
Sales Concept- the scarcity of goods have been solved through the mass production, as it also increase the supply of the product, it has resulted in the scarcity of the market. The increase in the supply, decrease the demand. The competition in the market with the best performing products has been growing, and consumers have a wide range choice of products. To be able to increase the profit and stay competitive in the market, marketers begin in creating a demand from the customer by attracting and pursuing them to buy the products.
Marketing Concept- these is where the firm’s objective has been aligned with the needs, wants and demands of the market. This is where the marketers analyze its market to provide them satisfaction while achieving the organizational goals.
State and discuss the goals of Marketing Systems and give example for each goal.
Maximize Consumption- the primary goal in this system is to meet the demands of the consumers through production of sufficient supply. It is usually related in satisfying the basic of needs of the consumers. For instance, production of enough supply of rice for the daily consumption.
Maximize Consumer Satisfaction - The goal in this system is to achieve customer satisfaction to be able to retain them which will lead to reducing the allocated marketing budget for acquiring new customers. The satisfied and loyal customers will market the product themselves which will help to reduce the need for marketing, and help build the brand of the product. For example, many consumers trusted the products of Apple Inc. because of the satisfaction that customer experience from their high-quality phones and gadgets. Even without advertisement, many customers will prefer Apple brand phones for its reputation.
Maximize Choice- the goal of this system is provide choices of product and services that will sustain the needs, wants, and lifestyle of the consumers. For example, offering wide variety of house models based on the preferences of the consumers, like the size of the house and the number of the members of the household that will live in it.
Maximize Life Quality- the goal of this system is to uplift the quality of life of the consumers by offering products and services that not only will satisfy them, but also will help make their everyday life easier. For instance, offering new products during Covid pandemic like innovative facemask/ shield that will prevent the people to be infected by the virus.