Definition: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.(Source: The American Marketing Association (AMA), www.ama.org). Marketing is about meeting human and social needs profitably.
What is marketed?
Things that are marketed are as follows:
- Goods: Goods include physical things which are cars, machines, trucks, scooters etc.
- Services: It includes work of engineers, doctors, lawyers etc.
- Events: Events may include trade shows, sports events etc.
- Persons: Famous personalities, CEOs etc
- Places: Cities, states, regions etc
- Experiences: A water park represents experiential marketing, by taking rides their customers enjoy the experience
- Properties: Selling and buying of properties (real estate) include marketing
- Organizations: Organizations market themselves by doing social activities etc.
- Ideas: Ideas are family planning, blood donation etc which can be marketed
- Information: Information is what books, institutes etc markets to students
The marketer is the person who markets the above-mentioned things to the people called prospects in the market.
What is a market?
Market refers to the group of potential customers for a marketer. Potential customers are the ones who share common needs, wants and demands. Now, what are needs, wants, and demands? Needs are the basic human requirements which they require to survive examples include, food, labor, water, clothing etc. Needs become wants when they are directed to specific objects examples include, a person may want rice or chapattis as food. Wants become demands when backed by the ability to pay.
Types of markets
The above figure shows the basic markets and the arrows show the various flows between them. Steps that explain the various flows are as follows:
- Producers/ manufacturers go to resource markets to collect resources from there. Resource markets include raw material market, labor markets etc.
- Manufacturers then convert those resources into goods and services and sell them to intermediaries
- Intermediaries sell these goods to consumers
- Consumers sell their labor for which they get money with which they pay for goods and services
- Government collect taxes to buy goods from resource markets, manufacturer markets and intermediary markets and use these goods and services to provide various services to public.