Meaning, Nature and Scope of Marketing

Meaning and Definitions of 'Marketing'

Marketing is such an economic activity through which the commodities and services are exchanged in lieu of money. Marketing really refers to those efforts which help in the transfer, of the com modities and services, and manage for their physical transfer.

In ordinary sense, the purchase and sale of commodities is designated as 'marketing. Within the term 'marketing', the activities, preceding and following the purchase or sale, are included.

The following are some of the main definitions of 'marketing':

In the opinion of the American Marketing Association, by 'marketing' is meant the completion of the business activities. These activities direct the flow of commodities and services from the producer to the consumer or the user.

In the opinion of Clark and Clark, in the marketing are in­cluded all those effort which are helpful in the transfer of the owner­ship and the physical distribution of the commodities and services.

In the view of Prof. Pyle, In the marketing are included both the purchase and sale activities. Philip Kotler has felt that marketing is called to be that group of human activities which make the exchange easy, useful and ad­vantageous, Prof. Stanton has opined that by the term 'marketing' is meant that total procedure of the mutual commercial activities which is un­dertaken to satisfy the existing and the prospective customers for planning, determining the prices, promotion and distribution of the goods and services.

Elements of Marketing

On the basis of the above definitions, the following might be enumerated as the elements of 'marketing'

(i)      In the marketing, besides the purchase and sale, those ac­tivities too are included which are concerned with the transportation of the commodities from production to the consumption.

(ii)      The objective of the activities pertaining to marketing is to satisfy the human needs.

(iii)     To satisfy the existing customers and to encourage the prospective customers is also the object of marketing.

(iv)      The transference of commodities and their physical distribu­tion too is covered within 'marketing.

(v)     Plans for developing the business and the activities related to the increase in prices, are also included within marketing.

Thus, within marketing are included all those activities which are concerned with the utility of place, time and ownership. The place utility emerges when the goods and services are available on that spot or place where they are necessary. Time utility emerges when it is needed and the ownership utility is created when in case of need these could be transferred.

Marketing Activities and Place Utility. In the daily or practical life, we find that the utility of some raw materials or com­modities is less at one place and more at the other; hence these are transferred from one place to the other so that these could fully satisfy the needs of people. From the mines, the minerals are transported to the factories, and the corn from villages to the towns for the reason since in comparison to the villages, their utility is much more in the cities. In this way, transfer of the commodities from one place to the other, is an increase in their utility. The transfer of commodities by the businessmen is planned to such places where there is very much utility of the commodities and there is also the possibility of much gain (profit). In this way, the transportation activities too are an important part of the marketing activities.

Marketing Activities and Time Utility. Certain commodities are grown up in some specific seasons but their demand remains existing throughout the whole of the year, hence these are required to be stored. These are stored during the harvesting time. In this way, by the storage too, the utility of the e commodities is enhanced. Storage too is an important constituent of the marketing process. If there is no increase in the utility by the storage of the commodities, the business class would never have stored such items. Time also enhances the utility of the commodities. Now-a-days, the com­modities are stored in warehouses, godowns and cold-storages- In this way, by means of storage, from time to time, their utility is en­hanced.

Marketing Activities and Form Utility. Effecting such changes in the size, form, shape and color of raw materials and other commodities so that their utility gets increased, is considered to be the creation of form utility. Whatever iron ore is extracted out of the mines, making it as finished steel, by the factories, its utility is increased. Some of the traders purchase paddy frorn the farmers and thereafter extract rice from it thus increasing its utility. Pur­chasing sugarcane from the growers, the sugar factories convert its form in the shape of sugar. 'In this way, the activities concerned with transformation too fall in the marketing sphere.

Marketing Activities and Possession Utility. Often some commodity or service, transferred from one person's possession to that of the customer, increases its utility. When in exchange for money, we purchase anything from some shopkeeper, and then we understand that the thing which we are getting is more utility-bearing than the money. By passing on the commodities from the whole seller to the retailer and by transferring the goods from retailer to the con­sumers, their utility is increased. In this way, the activities of pos­session transfer too form part of the marketing, activities.

Marketing Activities and Knowledge Utility. Nowa­days, by providing the knowledge about the new uses of the com­modities to the consumers, or by telling the utility- of any product, the demand of the commodity is created. For creating and increasing the demand of the commodity, by means of advertisements, the con­sumers are acquainted with the prices, qualities and utilities of the products. In this way, by creating the knowledge, the utility of the commodities is increased. The knowledge utility too is an aspect of the marketing.

Scope of Marketing

    The scope of marketing really is related to the old and new concept of ‘marketing’. Formerly the scope of marketing used to remain very much limited since the wants of the consumers too were quite limited. The competition was almost equivalent to nil. In the marketing, the satisfaction of the consumers was not at all con­sidered. The marketing was commodity based and immediately after the sale of the products, the marketing process was over. Nowa­days, the scope of marketing has become quite extensive, and the satisfaction of the customers too is kept in view. The process of marketing continues even after the sales have been affected. Today, the function of conforming the product, in accordance with the changing wants, habits and fashions of people, is undertaken by the process of marketing. Within the scope of marketing, -the following activities are covered:

Decisions and Researches Pertaining to Customers. Now-a-days, the customer is considered to be the crownless ruler of the market: Every producer or manufacturer or business concern in­tends to know as to what is the interest, fashion, economic position, of the customers; where do they live, what is their paying capacity, etc. Taking decisions on the basis of all these things, the producers bring their products to the customers accordingly and by means of their satisfaction, earn the maximum profits.

Decisions Regarding the Commodity. Before manufac­turing the product, various decisions have to be taken up, for in­stance, the size of the product, its shade or colour, design and brand, packing, etc. These all are equally the main components forming the marketing process.

Decisions Regarding Price-Determination. Every produ­cer or manufacturer and the business organization has also to deter­mine beforehand, prior to undertaking its marketing, as to what shall be the price of their product ? While deciding the price of the product, the paying capacity of the customer and the cost of produc­tion has to be borne in mind.

Decisions Regarding the Medium of Distribution. There are various media of distribution.: the multiple or chain shops, the super bazar, the wholesellers, the retailer, etc. The manufacturer or the business concern has also to determine as to what shall remain the medium of distribution of the commodity and how much long shall be its chain, requiring how much of expenditure. While taking the decision of the means of distribution, various matters have also to be borne into mind.

Decisions Regarding Sales Promotion and Advertise­ments. In this age of stiff competition, the sales promotion and ad­vertisements have become almost an inseparable part of the marketing. There are various media of sales promotion and advertisements taking the decisions about which is also an indispensable part of the sphere of marketing management. In the sales promotion, various decisions are required to be taken regarding the training of the sales representatives, their emoluments and the relevant incentives, etc.

Decisions Regarding After-Sales Service. For the satis­faction of the customers, the provision of after-sales service is very necessary. Within the after-sales service, are included the free repairs, the return or exchange of the product during the guarantee period if the product proves defective or worthless, etc. In it is in­cluded the decision that for how much period, what type of service has to be extended to the customers, and through whom.

Nature of Marketing

With regard to the nature of marketing, it is observed as to whether the marketing is a science or an art or both. On this topic, the discussion can be held as follows:

Marketing As a 'Science’. It is essential for being called marketing that there be some of the rules or principles of its own and in it the scientific practices are followed. Marketing proves to be the most effective in the form of a science since it has some of its own principles and rules, and in it are used the scientific methods like those of other social sciences. Today, before undertaking the manufacturing of a product, the producer tries to collect various kinds of researches and knowledge for instance, marketing research, purchaser-behavior research, etc. All these facts prove the marke­ting to be a science.

Marketing As an Art. Along with a special qualification and ability, if some work is undertaken, it is known as 'art'. Within the marketing itself, is covered the salesmanship. On the basis of sales­manship, some of the shopkeepers extend their sales too much in comparison to that of their other contemporary sellers. Marketing too is an art which is acquired by studies and ability and by the proper training this art is led to perfection. The various problems of marketing are solved by a special art only.

After studying both the above, it might be said that marketing is both an art and a science, since in it the scientific techniques and art are used, and thereafter various decisions undertaken.