What is marketing? Definition, essence and scope

Table of contents:

What is marketing? Definition, essence and scope
What is marketing? Definition, essence and scope
Anonim

Today, marketing does not function well enough in Russian organizations. This is due to the fact that there are few domestic scientific developments in marketing, thanks to which organizations could competently manage the company's activities in today's market.

In the system of the modern economy, no company exists without a marketing service. This is due to the fact that the needs of consumers are constantly growing or changing. However, each subject has personal preferences.

Today, the management of an organization's marketing activities is an integral link, without which it is impossible to ensure successful efficient production.

In practical terms, not all Russian organizations have yet introduced marketing processes for managing, investing and modeling activities in the context of the transformation of the Russian economy, which determined the relevance of the topic of the article.

Marketing concept

At the very beginning of this article, the main task is: "Define marketing."

Today in modernIn the literature, you can find many different concepts that can use both complex and other characteristics of this issue, considering the field of knowledge from various aspects.

However, consider one definition of marketing given by Philip Kotler, professor of international marketing at the JL Kellogg Graduate School of Management at Northwestern University, who has the right to be considered the founder of modern marketing theory. From the point of view of F. Kotler, marketing is a type of human activity aimed at meeting needs and requirements through exchange.

marketing definition
marketing definition

The modern definition and concept of marketing was adjusted in 2007 by the American Marketing Association (AMA; American Marketing Association). It looks like this: it is an activity, a set of tools and processes that ensure the creation, information, delivery and exchange of offers that have value for consumers, customers, partners and society as a whole.

The greatest effect and benefit in a company from marketing is achieved if it works as a holistic management concept and a system for managing the activities of a subject (organization) in market conditions.

The definition and concept of marketing lies in the following expression: the word comes from the English market - “market”, that is, the total system for organizing the production, marketing and research activities of an enterprise, which is focused on the deepest satisfaction of consumer demand;aims to establish, strengthen and maintain beneficial exchanges in order to achieve specific goals and generate profits.

basic definitions of marketing
basic definitions of marketing

Basic concepts

The definition of marketing objectives is as follows:

  • conquest of a niche in the market;
  • studying consumer needs;
  • create a favorable company image;
  • improving the quality of life of customers;
  • selection of the most optimal profit mechanism;
  • sales increase;
  • growth in output;
  • cost reduction.

Let's consider the main tasks of the concept under study for today:

  • analysis and monitoring of the market situation;
  • study of consumer preferences;
  • use of internal marketing elements;
  • control and monitoring of clients;
  • creating communications;
  • product promotion;
  • price monitoring.
product definition marketing
product definition marketing

Planning

Under the definition of a marketing plan, one should understand a special document that is an integral part of the company's strategic development plan, which defines all the company's market goals, presents methods for achieving them, and outlines the budget for this.

This type of plan is developed by the company, as a rule, for 3-5 years. It contains the long-term goals of the company, defining the marketing position, taking into account available resources.

The need for a marketing plan is duethe following facts:

  • in case of its absence, the actions of the firm are spontaneous;
  • there is a conflict of possible options for the development of the company;
  • no accuracy in determining the target audience of the company;
  • no order in the procurement and marketing of products.

The process for developing a marketing plan for a company is as follows:

  • determining the mission of the company;
  • SWOT analysis;
  • development of company goals and strategy;
  • problem development;
  • drawing up a marketing plan;
  • determining the marketing budget;
  • monitoring its execution.

Under the marketing budget can be understood as a plan for the amounts of income, costs and profits as a result of its implementation.

In this case, income is a forecast value, and costs are calculated based on the costs incurred for activities according to the developed plan.

Profit is calculated as the difference between income and expenses.

The structure of the marketing plan will look like this:

  • company's historical results (as the basis of the plan);
  • analysis and market forecast;
  • designed goals and objectives;
  • developed market strategy;
  • price, marketing, communication policy of the company;
  • deadlines;
  • budget plan.
definition and concept of marketing
definition and concept of marketing

Marketing leadership

The definition of marketing management is an impact mechanismenterprise and its management to the market demand in order to achieve the final result of the company's profit.

Marketing management is a complex process of analyzing, planning, organizing and monitoring a company's activities to establish and maintain contacts with target consumers, as well as achieve company goals such as increasing revenues, increasing sales, increasing market share, etc..

Basic definitions of marketing involve key points. The key points in terms of managing an organization's marketing are:

  • a process in which analysis, planning and control over the implementation of plans interact together;
  • management process covering the implementation of services, ideas and goods;
  • process acting on the concept of exchange;
  • satisfaction of all participants in the process (exchange/transaction).

Marketing management is targeted at specific objects and implemented by various entities.

defining marketing goals
defining marketing goals

Basic definitions of marketing involve the study of its object and subject.

The marketing management object is what the actions of the management subject related to sales, distribution, and advertising are oriented towards. The role of marketing objects can be material values, services, movable and immovable property, information. "Object of management" reflects the functioning of the organization to choose a market niche, to choose a marketing policy and strategy, taking into account a total of factors such asexternal and internal environment.

Marketing management entity – a legal or natural person performing various marketing functions. Various subjects of marketing management perform functions peculiar only to them.

The functions performed by marketing management entities are shown in the table below.

Control subject Function to run
Manufacturer or technical facility Production of goods or provision of services
Trade Company Sale of goods, warehousing, transportation
Marketing Organizations Market analysis, forecasting, promotion of goods and services

Managing the organization's marketing activities is a work aimed at researching the interests of consumers. This work includes:

  • research and forecast of actions, behavior of competitors;
  • creation and development of new goods and services that will be competitive;
  • control over the sale of finished products, pricing.
definition of a marketing plan
definition of a marketing plan

The main goal of marketing management is to ensure that actions aimed at stimulating the market are carried out accurately.

The value of marketing management of an organization is quite large, because those companies that pay due attention to it are leaders in the marketeconomy in its segment. In the first place should be the actions to meet the needs of customers and establish a long-term relationship between them and the organization. To be the first among competitors, you need to study the market, know how it works and what its needs are. In other words, marketing plays a significant role in the transformation of the Russian economy.

The essence of an organization's marketing definition can be viewed from three angles:

  • as a kind of human activity: activity aimed at exchange in market relations;
  • as a management system: focus on customer satisfaction;
  • as a concept or philosophy of activity: it is important that the organization's activities are aimed at finding needs and requirements in its market segment, and most importantly, they need to be implemented in a more efficient way than competitors.

Based on this, the conclusion follows that the essence of marketing management lies in the rule: produce only what the client (buyer) needs, and do not impose what will not resonate in the market.

Marketing usually not only reacts to the development of the market, but itself is the initiator of its development, releasing new products, thereby expanding it. For the successful functioning of the marketing activity management mechanism, it is necessary to fully study the market system, functions, its pros and cons.

marketing management definition
marketing management definition

The definition of marketing involves the study of the management process. Management processmarketing consists of four important stages, which are discussed in more detail below:

  • market opportunity analysis;
  • selection of target markets;
  • Developing a marketing mix;
  • the embodiment of marketing activities.

The marketing management system includes functions, a set of goals, methods, principles, ways to manage them, as well as a management structure.

The marketing management system of an organization is a complex issue, the solution of which is possible only with a cumulative approach. The marketing system is quite flexible and adaptable, even small organizations include both external and internal factors that need to be taken into account when analyzing the company's activities. Proper management of the marketing system allows you to respond in time to all changes in the market environment.

The goals of marketing management include the company's awareness of the interests of all market participants, actions aimed at making a profit and ensuring effective activity in the market. The implementation of tasks occurs due to the implementation of management functions. Bringing the company's goals to life is easier to achieve by creating a goal tree. Its creation allows entering both long-term and operational goals, as well as quantitative and qualitative ones.

marketing is a short definition
marketing is a short definition

The organization's marketing management process technology contains:

  • gathering and researching data about competitors and their behavior in the market;
  • research on the possibility of force-major circumstances in the market;
  • research followed by modeling the decisions of the psychology of potential buyers.

Management of the organization's market position is carried out by means of process-oriented operations of marketing management. These operations include the latest information technology, reengineering and economics with its modern trends.

Reengineering is the process of transforming an organization by means of modernizing previously implemented technological solutions. The purpose of this phenomenon is to increase the efficiency of the organization.

The latest technologies are manifested in the implementation of CRM and SCM management systems. CRM (Customer Relationship Management) - software that allows you to interact with customers. SCM (Supply Chain Management) is a supply chain management system. Marketing management logistics operations regulate the company's market position through the competent organization of the distribution and movement of material and information resources.

determining the marketing budget
determining the marketing budget

Defining marketing involves examining its basic elements. The main elements of the organization's marketing management process technology are:

  • creating company management goals in the market (by means of tactical and strategic marketing);
  • preparation (planning) of marketing management decisions;
  • execution of strategies and marketing plans, as well as control over their implementation.

Marketing Management Systemactivities of the organization draws up a program to change the company's market position and boils down to a program of marketing activities related to the process of interaction with market segments.

Governance principles

Defining marketing management involves examining its principles. The formation and management of the organization's market position follows from the principles of marketing management. The principles of marketing management are rules derived from economic laws, as well as operating on the basis of various stages of market development (in times of crisis / risks). The principles are the link between intra-company relations and the organizational units of the company, and also establish a connection with the external market environment. Consider one of the approaches in the system of principles of marketing management, presented by I. M. Blue:

  • principle of organizational behavior lies in quality risk prevention and service;
  • the principle of profitability and efficiency is expressed in control over the implementation (execution) of the strategy, competitiveness and demand;
  • the principle of professionalism of management is formed from the information security of employees and their stimulation by management;
  • principle of control and accounting, includes internal and external audit, environmental and labor safety;
  • principle of the optimal ratio of centralization and decentralization, expressed in the distribution of powers, as well as in anti-crisis management.
1 definition of marketing
1 definition of marketing

The main types of marketingactivities

The marketing activity of the organization is aimed at promoting the market of goods and services by means of analyzing the needs of buyers and consumers, as well as meeting these needs. Based on this activity, stages are formed for the competent distribution of goods and services to the final buyer.

Marketing activities are carried out to improve the efficiency of the organization. It is customary to distinguish four main types of marketing activities. The definition of marketing types is reflected in the table below

The company's main marketing activities:

Activities Characteristic
Grocery Orientation on the technical characteristics of the goods. Market demands are not given due attention, which can lead to losses today, but in the future the product may become in demand.
Industrial The output of production volume is based on the solvency of buyers. But a loss is possible, since there may be an oversupply of products on the market.
Sales Focused on turnover and increased sales. This can result in a small amount of revenue because there is no attention paid to consumer demand in the market.
Consumer demand Dedicated to customer satisfaction. Responds quickly to changesaccording to the needs of customers, a new range is being produced. This activity is typical for companies with a stable financial position.

Complex marketing

For the first time the concept of "marketing complex" (complex marketing) appeared thanks to the professor at Harvard Business School N. Borden in 1964. In his opinion, the marketing mix is a set of such components as product, price, method of distribution and methods of stimulation. Today there are many definitions of this concept.

Currently complex marketing (marketing mix) is the connection and proper organization of all elements and marketing tools. It focuses on the development and implementation of a dynamic marketing strategy that anticipates the volatility and complexity of the market. It is customary to single out four fundamental aspects of the marketing mix that form the marketing strategy. This is a combination of goals, problems, ways to solve them, which determine the way the product is sold, pricing and sales. To refer to this set in 1960, J. McCarthy synthesized the marketing mix from such concepts as product (Product), price (Price), promotion (Promotion), distribution (Place), putting forward the “4P” model. This is the concept that the marketing mix is made up of four interconnected elements.

definition of marketing strategy
definition of marketing strategy

Strategic moments

Determination of the marketing strategy of an enterprise should be carried out on the basis of a complete analysis of the financial activities of the company. Assessment of the company's market opportunitiesand the marketing environment of the market is a possible means of providing management information on changes in marketing to improve the management system as a whole.

In this regard, it is possible to use a decision support system for marketing analysis in order to realize business opportunities. Business opportunity analysis includes the following aspects: analysis of the financial performance of the enterprise, analysis of competitive opportunities.

Main Marketing Strategies:

  • concentration strategy (the organization defines a narrow direction of its activities);
  • functional specialist strategy (an organization specializes in one function, serving all groups of consumers of this function);
  • customer specialization strategy (the organization focuses on a specific group of customers, trying to fully satisfy their needs);
  • strategy of selective specialization (products of various kinds are produced for different markets);
  • Full coverage strategy (a rich assortment of products that satisfies all consumer groups).

Marketing Purpose

Determining the functions of marketing is a very important element of its study.

At each stage of the company's activities, marketing management functions are implemented. The company achieves results by executing a set of tasks for each function. It is customary to distinguish four groups of marketing functions.

Marketing Function Groups:

Function name Explanation
Analytic function Includes: scientific analysis; market research; study of the external and internal environment of the organization.
Commodity production function Includes: creation of a product offer of the company; production of goods; production of packaging; the formation of a variety of assortment; elaboration of the quality of the goods, which will be competitive.
Sales function Includes: ensuring the sale of goods, the implementation of pricing policy; communication with the buyer, the choice of advertising campaigns.
Organization function

Includes: interaction with marketing systems and marketing information; planning and control.

Marketing develops and oversees marketing strategies and programs.

marketing function definition
marketing function definition

Product marketing

The definition of a product in marketing is everything that can satisfy the customer's need, as well as what is offered to the market to attract the attention of the consumer.

The main components of a product in terms of marketing are:

  1. Product as a way to meet customer needs. The task of marketing is to create a favorable image of the product.
  2. Product support as a measure to improve the efficiency of its use,storage, sale.
  3. Marketing tools.

Commodity policy is a marketing activity that involves planning and implementing a set of activities and strategies to create positive product benefits.

Product policy provides the ability to manage the life cycle of a product at different stages.

define marketing
define marketing

CV

Marketing is a brief definition of the function of the organization, the processes of creating and promoting among consumers the goods and services provided and produced by the company, as well as the study and adjustment of the system of relationships with these consumers in order to maximize the company's profit.

Marketing activity in the organization is one of the leading functions. It determines the company's policy both from the technical and production sides, and from the side of the style, the nature of the management of all business activities of the company. Based on the analyzes and research done, the marketing department specialists try to convey to the company's employees, whether they are engineers or developers, what product is needed now, how potential consumers want it to be, at what price they are ready to purchase it and in what period of time it will be needed.

The correct definition of marketing goals allows the company to achieve the final performance in terms of revenue generation and profitability in the short term.

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