SECTION 1. MARKETING
THEME 1. MODERN CONCEPT OF MARKETING
1. Marketing as a business philosophy
At the core of the term «marketing» is the word «market», which means «the market.» So, in the marketing one often understands the philosophy of governance, economic conditions in the market, proclaiming the orientation of the production to meet the needs of specific customers.
Marketing under its widest sense is a social and managerial process by which individuals and groups of people get what they need by creating products and exchanging them. When a person is unable to meet any need, he substitutes them or reduce the level of his requests.
EVOLUTION OF MARKETING
Phase Period Characteristics
I. beginning the twentieth century – 40th
Marketing had a sales character. The motto: «Everything produced must be sold». Sales methods of marketing and advertising were applied
II. 50 years – first half 70s
Marketing has been focused on the study of the market and customer demands.
The principle is: «It is advantageous to produce the products that will be in demand than to produce something that struggles to sell.»
III. second half 70’s – till present
Integrated market system covers the entire cycle of development, production and sale of goods, including market research, implementation of merchandise, pricing, communication and policy, strategic marketing governance and other marketing techniques
Thus, the requirements are translated into specific desires, which in view of monetary opportunities are transformed into market demand on the specific products. It appears the exchange between producers and consumers made out in the form of a particular transaction. It follows that the direct marketing economy to meet the constantly changing needs of the many millions of consumers.
In other words, the marketing is a philosophy of management, direction of its implementation, when the resolution of consumer problems leads to the success of the organization and brings benefit to the society.
At the level of individual economic entities marketing is defined as a complete system for planning the variety and quantity of produced products, pricing, distribution of products between the chosen markets and to promote their sales in order to achieve the diversity of benefits, led to the satisfaction of the interests of both producers and consumers. This definition has a sufficiently broad sense, as it covers the activities of non-profit organizations. Thus, marketing is the activity of the organization for the benefit of its customers.
In a more narrow sense (entrepreneurial) the marketing can be classified as a management system of production and sales management organization aimed at obtaining an acceptable value profit through accounting and active influence on market conditions.
From the above it follows that a variety of marketing applications causes a variety of its definitions.
It seems that as a fairly general definition of marketing can be offered. Marketing is a form of human activity to meet the demand for the material and non-material, social, value through mutually beneficial exchange.
Thus, marketing is also a system of thought and action system.
2. Basic concepts and scope of marketing
The concept of needs is at the core of theories of motivation (Freud, Maslow, etc.), determining the behavior of consumers in the market. The main task of marketing is to find a need and meet it.
Desire is the need to take concrete shape in accordance with the level of culture and personality of the individual. Sometimes it is called concretized need. For example, the total demand for food is transformed into a more private demand in the fruit, which, in turn, concretized results in the need, the desire to buy apples.