Relevant Terms on Marketing Part 2

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Relevant Terms on Marketing

Relevant Terms on Marketing

Relevant Terms on Marketing

Market

Normally people understand the term market as a place where goods are bought and sold. But, in the context of Marketing, it refers to a group of buyers for a particular product or service. For example, the market for Accountancy textbooks consists of students in Commerce and specialised Accountancy Programmes; the market for ladies’ readymade garments consist of girls and women.

Marketeer

It refers to the person who organises the various marketing activities such as market research, product planning, pricing, distribution etc.

Seller

It refers to a person or organisation who is directly involved in the process of exchange of goods and services for money. This includes the wholesaler, retailer, etc.

Buyer

A buyer is one who is directly involved in the process of purchase of goods and services. He/she is ne who selects the goods, makes payment and takes the delivery.

Consumer

One who actually uses the product or service. For example, you bought a shirt and gifted it to your friend who uses it. Here your friend is the consumer and you are a buyer. However, a consumer can also be the buyer.

Customer

A customer usually refers to the person who takes the buying decision. For example, in a family, father decides on the brand of the toothpaste to be used by his children. Here, the children are the consumers and the father are the customer. A customer can also be the consumer. Similarly, the buyer may be different from the customer or one can be the customer as well as the buyer.

Virtual Market

With advancement of technology, the buyer and sellers can, now-a days, interact with each other by using Internet. This is called virtual market.

Importance of Marketing

Marketing is important to the business, consumer as well as the society. This is evident from the following points.

  • Marketing helps business to keep pace with the changing tastes, fashions, preferences of the customers. It works out primarily because ascertaining consumer needs and wants is a regular phenomenon and improvement in existing products and introduction of new product keeps on taking place. Marketing thus, contributes to providing better products and services to the consumers and improve their standard of living.

  • Marketing helps in making products available at all places and throughout the year. We are able to get Kashmir shawls and Assam Tea all over India and get seasonal fruits like apple and oranges round the year due to proper warehousing or proper packaging. Thus, marketing creates time and place utilities.

  • Marketing plays an important role in the development of the economy. Various functions and sub-functions of marketing like advertising, personal selling, packaging, transportation, etc. generate employment for a large number of people, and accelerate growth of business.

  • Marketing helps the business in increasing its sales volume, generating revenue and ensuring its success in the long run.

  • Marketing also helps the business in meeting competition most effectively.

Objectives of Marketing

Image of Objectives of Marketing

Image of Objectives of Marketing

Image of Objectives of Marketing

Provide Satisfaction to Customers

All marketing activities are directed towards customer satisfaction. Marketing starts with ascertaining consumer needs and produce goods that satisfy those needs most effectively. Not only that the pricing and distribution functions of marketing are also planned accordingly.

Increase in Demand

Through advertising and other sales promotional efforts, marketing aims at creating additional demand for their products. Satisfied customers also help in creating new customers. For example, if you buy a ‘gel pen’ and feel satisfied, next time also you will buy the same pen and obviously when you tell others about it, they will also feel like giving it a try.

Provide Better Quality Product to the Customers

This is a basic objective of marketing. The business houses try to update and upgrade their knowledge and technology to continuously provide better products. If they do not do so, they will be phased out through competition.

Create Goodwill for the Organisation

Another objective of marketing is to build a good public image and create goodwill for the organisation. This helps in maintaining loyalty to the product and accepting new products of the same company.

Generate Profitable Sales Volume

The ultimate objective of all marketing efforts is to generate profitable sales volumes for the business. Taking care of customer needs and wants by providing the required goods and services at prices they can afford, and at places and timing that are convenient to them ultimately lead to increased sales and profits.

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