Marketing

The concept of markets finally brings us full circle to the concept of marketing.
Marketing means managing markets to bring about exchanges for the purpose of
satisfying human needs and wants. Thus, we return to our definition of marketing
as a process by which individuals and groups obtain what they need and want by
creating and exchanging products and value with others.
Exchange processes involve work. Sellers must search for buyers, identify
their needs, design good products and services, promote them, and store and
deliver them. Activities such as product development, research, communication,
distribution, pricing and service are core marketing activities.
Although we normally think of marketing as being carried on by sellers,
buyers also carry out marketing activities. Consumers do 'marketing' when they
search for the goods they need at prices they can afford. Company purchasing
agents do 'marketing' when they track down sellers and bargain for good terms. A
sellers' market is one in svhich sellers have more power and buyers must be die
more active 'marketers'. In a buyers' market, buyers have more power and sellers
have to be more active 'marketers'.
Figure 1.3 shows the main elements iir a modern marketing system. In the
usual situation, marketing involves serving a market of end users in the face of
eompetitors. The company and the competitors send their respective products
and messages directly to eonsumers or through marketing intermediaries to the
end users. All of the actors in the system are affected by major environmental
forces - demographic, eeonomic, physical, technological, political/legal, social/
cultural. We will address these forces that affect marketing decisions in Chapter 4.
Eaeh party in the system adds value for the next level. Thus, a company's
success depends not only on its own actions, but also on how well the entire value
chain serves the needs of final consumers. IKEA cannot fulfil its promise of Sow
prices unless its suppliers provide merchandise at low costs. And Toyota cannot
deliver high quality to car buyers unless its dealers provide outstanding service.