The concept of marketing is the process by which a business organization promotes, attracts and engages the product or services it has to offer to the target market. It is a process of planning, strategizing, organizing and communicating in the right place and at the right time for best effective results (Baker 2014).
There are some core concepts of Marketing: Needs, wants and demands- Needs are the basic requirements of us human beings, whereas wants are the requirements which are backed up by influence of an external factor. Demand is the requirements of an individual which is supported by the purchasing power that we posses. Products: is the basic good or service that a business organization has to offer in exchange of money. Value satisfaction and quality: the quality of the product or service of the business should have a satisfactory quotient for the exchange of the money that we pay in return. Exchange and relation- the relation with existing customers or building new relations with potential customers are a requisite for a successful business. Markets: it is the place where the transaction of good and service occur.
According to me what I have understood is that the first step to marketing is to create a marketing mix. There are traditionally four Ps in a marketing mix: product, price, place and promotion. With the modernization of technology and more research scholars have come up with more Ps like placement logistic, physical evidence, process and people. A business organization if not a non-profit seeking then the ultimate aim of the organization is to earn profit and to grow the business in the long run in order to do so the company must perceiver to build a healthy relationship with the customers. With customer marketing relationship, social networking and customer services increased the trends companies can now have a more interactive and a more insightful relation with the consumers (Shields 2015).
The landscapes of the marketing process of the business organization are changing with the advancement and growth of technology. Marketing is a dynamic process and hence it is required to upgrade itself with regards to the internal and external change in the business environment.
The business organizations should focus their ideas on the customers than making profit. If the customers is satisfied and the value proposition of the item that is being served is of high value then the customers are sure to become loyal and then go on to advocate for the company which in turn is anyway going to fetch profit and increase the sales of the organization. The price and the product or service should be at par with each other for the item to work successfully in the market. In this process it is important for the company to study the target market of the business. The company should have a clear idea about who they want their products to sell. The demographic, behavioral, psychographic and geographic factors should be taken in to consideration (Turnbull and Valla 2013).
A business operates in two environments internal and external. Both these environments heavily affect the business and should be taken into consideration while making any policies of the organization or taking any other business decisions. One such business environment is the economy of the country that the business is based. Some of the general issues of an economy are: the gross domestic product or the GDP it is the amount of the total value of the goods and services produced at any given time; economic growth; unemployment; inflation and the balance of payment. The government of any country has these economic goals in the mind: economic growth, falling unemployment, keeping inflation low and stable, and avoiding balance of payments problems (Iyengar 2014).
A very important concept of Macroeconomic which affects the marketing of an organization is the circular flow of money it is the way monetary transactions take place and explains how the flow of money in an economy in a diagrammatic representation. The inner circle shows the transaction that takes place in between firms and households. Monetary value flows from firms to households in the form of factor payments, and then this money goes back again as consumer expenditure on domestically produced goods and services (Kubiszewski et al., 2013).
The growth in the rate of GDP of a country in a particular financial year is the actual growth of the company. Whereas, the speed at which the company will grow is the potential growth of the economy. Unemployment or the amount of people who are not earning despite of having skills and training is one of the main reasons for the slow rate of economic development. Inflation is another problem with any economy it is the tendency of price rise in an economy due to various reasons (Argy and Nevile 2016).
I think consumer behavior can be defined as the study of the way an individual, an organization or a group of people choose to use or to discard a product, service, experiences, or ideas. The buying behavior that we as a consumer have is directly dependent on the disposable income or the earning of that person (Schiffman et al., 2013). All of us think before we spent even a penny. There are a lot of criterions to consider before making any kind of buying decision. The decision depends on the type of product or service, the cost of the product or service, the time taken to decide on the purchase of the item. The fundaments of this concept are that a shopper is not a buyer a potential customer will not always buy the product (Baker and Saren 2016).
Before ultimately choosing an item and ending up paying for it the customer goes through several steps or stages of purchase. A range of aspect is dependent on an individual’s buying tendencies like: cultural influence, social, personal or psychological influences as well (Solomon 2014).
Form the organization point of view it is very crucial for the management to understand and analyze the buying behavior of the target market group. It is very vital for business organizations to understand what encourages a consumer to buy a particular product or service and what prevents him or her from buying (Solomon, Russell-Bennett and Previte 2013).
I have concluded that marketing and the whole business endeavor is a dynamic process that grows and strives to expand. The management of an organization works together to arrange the proceedings in a planned manner and hence various research and studies are taking place in all the leading universities and educational centers to understand the dynamic nature of business better
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Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Iyengar, M., 2014. Money Matters: Macroeconomics and Financial Markets. International Journal on Global Business Management and Research, p.117.
Kubiszewski, I., Costanza, R., Franco, C., Lawn, P., Talberth, J., Jackson, T. and Aylmer, C., 2013. Beyond GDP: Measuring and achieving global genuine progress. Ecological Economics, 93, pp.57-68.
Schiffman, L., O'Cass, A., Paladino, A. and Carlson, J., 2013. Consumer behaviour. Pearson Higher Education AU.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.
Solomon, M.R., Russell-Bennett, R. and Previte, J., 2013. Consumer behaviour: Buying, having, being. Pearson Australia.
Turnbull, P.W. and Valla, J.P. eds., 2013. Strategies for international industrial marketing. Routledge.