|← CAPM and Sources for Capital||National Debt →|
Nowadays, the life is constructed in the way that every person needs some goods, products or services which are considered necessary for a good living. Supermarkets, grocery stores, bureau and offices for everyone’s taste are located everywhere in the city streets. Naturally, everything of the above mentioned is very popular. However, thanks to the technical development, all those services become easily accessible through internet, so there is no need to leave home.,Satisfying the needs this way is normal for society and no one really thinks about the fact that purchasing and granting products/services is an important system called marketing. However, several questions arise, in particular, the questions relating to the definition of marketing. How does the marketing system works? Why is this system so necessary for humanity and how to succeed in marketing?
In order to understand the sense of marketing system it is important to provide its definition. This term can be defined in several ways. In the book called “Marketing Management”, Phillip Kotller provided the following definition: “Marketing is a social process directed to satisfy needs and wishes of individuals and groups of people by creating proposals with the value of goods and services with free exchange” (Kotller, 2009). American Marketing Association (AMA) provided another definition of marketing, according to which: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (AMA, 2012). Combining both of the above mentioned definitions give us the conclusion that marketing is the process of exchange for different goods and services between customers and producers. For the buyer it is important to find a necessary product in the store and for the seller (the owner of the store) it is important to sell products from the store at their best price. Customers do not just buy different products. They buy the concept of what this product will do for them, and the advantage that it will provide.
Therefore, the main functions of marketing activities and strategies result in making products available and satisfy customers while making profit for the companies. Simply stated, marketing is everything the producer does to place his products and/or services in the hands of potential customers. Clients want to have good quality products and marketing system helps them to achieve this aim by the method of excluding low-quality product companies. The best way to illustrate this concept is through giving the examples:
- When analyzing “Siemens” one can see that at the very beginning it was a flourishing business with the help of advertisement. However, few years later, their products were proven defective. As the result, “Siemens” ended up bankrupt.
- Another example is “Nestle” company which has been providing customers with food for decades. Producing quality goods “Nestle” approved its reputation and has a high demand all over the world.
- Another example of excluding method of marketing is “Carrefour” supermarket network. This network cooperates with many producing companies and the point of “Carrefour” is that they sell the same good quality products with much lower prices than any other supermarket. That is why people go shopping to “Carrefour” realizing that it is the cheapest way to buy necessary products. Concluding all these examples, we can notice how marketing is important for customers.
Working in a sphere of marketing it is important to follow all the rules of selling goods and providing services. The pledge of success is in quality and accessibility of products. In such circumstances, customers will be satisfied and keep on cooperating.
In conclusion it will be right to mention that there is no similar system like marketing and marketing will always be developing. People used, use and will use different services and products. The better quality production – the more people will use it and will be confident in what they buy or use.