Marketing is the management and study of exchange relationships. Marketing pertains creating relationships with customers and satisfying their needs. Marketing is an important component of business management. Marketing is designed to identify, satisfy and anticipate all the needs of the parties involved in a transaction.
Marketing does not take place in a vacuum; an exchange must occur. Goods and services must be exchanged for a consideration known as the price. The process of buying and selling goods and services forms the subject matter of marketing.
The term marketing utility refers to the capacity of a good or service to satisfy a customer’s needs. There are four marketing utilities. They include:
This is the process of enhancing the attractiveness of a product or service to its consumers. This is done by altering the physical appearance of a product. In business, form utility is the process of producing goods that are ready for consumption.
This refers to the availability of goods and services; when the customer needs them. Form utility is usually addressed by a firm’s business plan and the logistics of manufacturing and delivery. In the service industry, time utility ensures that services are ready when customers require them.
Time utility includes considering when it is possible to avail goods and services to customers: hours and days. The goal is to ensure that customers receive an added value for engaging a business. This being the case, a business might choose to offer goods and services round the clock.
Place utility is achieved by making goods and service readily available to customers. By increasing convenience, a business is able to attract and retain its customers. A business that offers easy access to customer care and technical assistance offers its customers an added value. When your firm’s goods are available in different stores and locations, you offer convenience to your clients.
This refers to the benefit your customers get from owning goods from your company. This utility can also be achieved by offering favorable terms for purchasing a product. By doing this, you enhance the value customers get from buying your products.
Marketing Management Concepts
There are four concepts of managing marketing that a business can employ. The four concepts work towards the achievement of your company’s objectives and success. They also increase the profitability of your establishment. The manners which these concepts are used differ from one business to the other. Nonetheless, all firms have to choose one of these concepts. They include:
This involves conducting a detailed investigation of the dynamics of a product. This is done by marketers so as to showcase a product’s best qualities. A lot of time, money and research are spent in order to achieve this goal. Normally, a marketer will consider a product concept before advertising it to customers.
This concept is anchored on the notion that clients prefer goods that have the best quality, features, and performance; however, there are clients who prefer products that are simple and easy to use.
This concept provides that customers will not buy enough of a firm’s products unless major selling and promotional efforts are conducted. This concept is used to advertise goods that are not bought often. These goods are sold aggressively to a target consumer and are sold based on the benefits they offer the consumer.
This concept requires marketers to have the society’s long-term interests when marketing a product. In a nutshell, a marketer should not only consider what the customer wants. The work of a marketer is to ascertain the wants, interests, and needs of the consumer, and deliver them in an effective and efficient manner; compared to the competition.
This is the philosophy that businesses should consider the needs of their target market and then work toward satisfying those needs. While doing this, the company must ensure that it executes this decision better than the competition.
By adhering to these basic principles of marketing, you ensure that your firm does not become one of creative destruction examples. Creative destruction is the process where new firms replace obsolete firms in the economy.