What is marketing and what is meant by marketing? All the concepts explained

What is marketing and what is meant by marketing? All the concepts explained
what is meant by marketing?
What is meant by marketing?

What is marketing? (By Philip Kotler)

To the quarter the guru of marketing, his understanding of the term marketing is captured in his definition that,

 “Marketing is an organizational function and a set of processes for creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and all these stakeholders” 

   This is what Philip Kotler had to say about marketing. This is the definition of marketing by Philip Kotler. But what is meant by marketing?

 What is marketing in my words
What is marketing in my words

What is marketing in my words?

You must have heard about millions of definitions about marketing that Phillip Kotler says this, that the author says that. Today will give you my definition of marketing what I think about marketing I Reckon, Marketing is the positioning of offerings better than the competitor.” Now, what’s that? What does positioning of offering better than the competitor means?

Positioning means,

Take an example of Samsung, iPhone, and Motorola. All of them sell phones but whose services and phone you rate highest. You tell me, some think Samsung is better, some think the iPhone and some Motorola. Motorola?? ahh nobody thinks! But the point is that there are only two big brands Samsung and iPhone. Some think the iPhone is superior while others think Samsung is superior.

Those who think the iPhone is better, for them the iPhone positioning is better. Take this in a way that all brands are standing in a queue.  So the positioning is at which place they are standing.

Offerings means,

The positioning of the offerings, it means services of an individual brand.  What brand will give you? iPhone is giving you phone, calling services, particular processor or whatever like a camera. Samsung is giving you similar things. But ultimately you will use the phone for calling purposes. So what’s happening here? They are playing with your brain.

What should I choose? Samsung, iPhone, or Nokia. If I am making a video from Nokia Lumia 1020. For me, the positioning of this is better as a camera. I think the camera is superior to any other because of the company. It has a position in such a way that this camera has a 43 MegaPixel Sensor. Although it only offers Full HD (1080P) Recording. But they have positioned that Nokia’s camera is superior to any other brand.

Nokia’s 5 MegaPixel is better than any other brands 8MP. Megapixel is all about the size and the zooming capability. How many million pixels are there? But we say that Nokia’s 5mp is better than Samsung’s 8mp camera. So marketers create all this myth and they played with your mind. Which is a part of “Positioning”?

I think you must have understood the definition of “Marketing”. Marketing is a positioning of offerings better than the competitor. that I have to position my product better than my competitor, Period!

If you consider the above Philip Kotler’s definition segmentation, targeting and positioning of offerings better than the competitor also yields a profit and a bit complex definition.

Definition of marketing always change by time

So the definition of marketing will change from then and now. Today you are getting what I am saying but if you would ask me a marketing definition again after 5 years. I might give a different answer.  Because the marketing environment keeps on changing continuously.

In the beginning, marketing definition is Marketing is an art of selling something to someone as part of selling something to someone. This was correct if you would have asked me in 1960-1970. When there was a selling concept and now it’s the definition of a sale, selling something to someone. This is the meaning of marketing. But how is marketing started? Let’s understand.

The Evolution Of Marketing infographic
The Evolution Of Marketing infographic

The Evolution of Marketing

What is marketing and what is meant by marketing? All the concepts explained

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We will talk about the evolution of marketing.  How did the marketing evolve?

1930s: Production Orientation

This story started in the initial 19th century around 1904 or 1905. When Ford Motors started working on Mass Production. They started production of their cars at mass scale. Due to which they managed to make cars at a very low cost.  As a result of which pricing was also very low and the sale was very high. Because of all these Production concept evolved from here Chinese Govt. 

It is also doing the same nowadays. If you see, China is the world’s largest production hub. This is because they work on mass scaling. Their industry don’t run for 8 hours, rather they run for 24 hours. Work is done in 3 shifts in a day this reduces their operation cost, and they manage to make available the product at a very low cost. And that is their competitive advantage.

1970s: Consumer Orientation

After that, the product concept was evolved. The company understood that we can do mass production,  but if we don’t sell it by the name of a product, we won’t get any advantage. For eg, they were selling wheat in open. So they packed it and started selling it by the name “Shakti Bhog”. Rice was sold by the name “Basmati Rice”.

They started selling it by packing and doing branding of the product. “This the product of this company, which is basmati rice”.  4 P’s of marketing was evolved at the time of production 4 P’s of marketing. I have told you-Product, Price, Place, and Promotion.

They have highlighted quality, performance, and innovation in that product. They were selling rice only but were labeling it as “25 years basmati rice” after packing it. The other guy was selling the same thing in open, but he couldn’t highlight it.

This continued for some time. After that, people realized “how to reach customers”. From there evolved “door to door” selling services. The insurance sector was initiated at that point of time. The company used to send their salesman from door to door and say “Take this Product”.

In the 1970s, the same thing was happening in India. When a salesman used to ring the doorbell to explain the product and try to sell it to you. And he used to sell it there and then only. Nowadays, the insurance sector is doing the same thing. They come to our house or call us to become aware that we have this product, take it. Nowadays it is known as a person selling.

2010s: Consumer as driver

But earlier it was the only way of selling. As the internet didn’t evolve at that time, there was no social media kind of thing. 

Main problem in selling concept is that you are not making the product as per the need of the customer. You can convince the customer once, but the second time they will not take your product. So from here, the modern-day marketing concept was evolved Company started making a product based on the need of the customers. Providing the right product to the right customer at the right place at the right time, this is the modern-day marketing concept.

So the company started making products as per the need. Company left high production. Companies understood that if we deliver products as per the need of the customers, then only we can become a good company. This is the Actual answer to What is meant by marketing?

For eg, you can see Apple. Apple don’t work on the concept of mass production. But Apple have done branding of their product very well. Their product satisfies the proper needs of the customers. It gives you a look plus. They are providing a combo of hardware and software due to which it will never hang. They are providing you with better support and better customer care. Due to this Apple is a leading brand today.

Types of markets (Marketing Markets)
Types of markets (Marketing Markets)

Marketing Markets

We will talk about marketing markets. What is it and what are its types? So what is the market?

Market is any place where we sell our products and services. This is known as the market.

How many types of markets are there?

Markets are majorly categorized into 4 types. First is the Consumer market, then the Business market, Global market, and Non-profit market.

Let’s understand all this in-depth.

Types Of Markets
Types Of Markets

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1. Consumer market

So what is the Consumer market? These are those where we sell directly to the consumers. Directly means if we are selling a phone, we sell it directly to consumers.

Amazon sells directly to consumers, so it is a consumer marketplace. There are many other platforms like Big Bazaar, where consumers directly take the services. There is no big thing there wherever consumers directly take the services, we call it Consumer Market.

2. Business Market

Second is the Business Market. These are those where we deal directly with the business, which means our product is used by the business. So what comes under this? Like office cubicle which will be taken only by the office, not others. Some specific stationery, letterheads, visiting cards.  All these come under B2B where two businesses are interacting and exchanging their products and services. So this is known as B2B Marketplace.

3. Global Market

Third in Global Market. Global market is like any MNC which does not sell product only in 1 country. It tries to expand in multiple countries. 

 Let’s take an example of MI. MI launches its phone first in China, then it finds its audience about where will its products be sold. And it starts selling its services at those places. Let’s take the example of Mi Mix. Mi Mix is the latest phone which they have launched in China and the US but not in India. As per their strategy, nobody in India will take a Mi phone worth 35000.

The most important thing in the Global market is to analyze what is the need of a country. What products or services can fulfill them.

4. Govt market

Last is the non-profit or govt market. Now, what is this? Where we sell directly to the govt or some non-profit organization, then that is known as a non-profit market. So the prices or margins in the non-profit market is very less.

We have the keep the margin minimum so that we can survive in that competitive environment. So if any company will sell the product in Anganwadi, it will be sold at very cheap rates as they know that supply is in bulk. Additionally, we can get some relaxation from govt over these products. Like we get products at cheap rates at army canteens as there is no tax on that. The products being sold there are part of this market only.

Marketing channels
Marketing channels

Marketing Channels

We will talk about Marketing Channels. Before understanding what is Marketing Channel, we have to understand its types of Marketing channels. It is basically of 3 types.

1. Communication Channel, 2. Distribution Channel and 3. Service Channel

1.  Communication Channel

The medium through which marketers tell about their brands to their target audience is known as communication channel.

So what can be its types? For eg, the internet, newspaper, TV advertisement, magazine, social media, billboards.

2. Distribution Channel

 The medium through which marketers display, sell or deliver their products is known as Distribution Channel.

3. Service Channel

Every company doesn’t make products,they are not product-oriented. Some companies provide services. So this channel is for those companies who provide services.

For eg, banks, insurance sector. They provide services, they do not have any product to deliver. So all this comes under Service Channel.

I hope you understand all topics, what is marketing, what is meant by marketing, its evolution, and types. Okay friends, please share this with your friends and family. Thanks for reading! 

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