Essay about The Definition and Functioning of Marketing

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Introduction Marketing is entwined and entangled in our everyday lives. As we become more connected, more informed and more prosperous, we desire and have the capacity to demand more products and services. These products and services are aimed to satisfy our basic needs, and the wants that evolve from them. It is the process of marketing which creates and develops a relationship between the organisation that produces the products or service, and us: the …show more content…
The American Marketing Association (2013) and Kotler (1983) both refer to marketing as a process of exchange of value to satisfy the needs and wants of the customer. To give context to these definitions, it is important to understand the key terms. Kotler & Armstrong (2012, p. 6) provide the following explanation of key terms:
Needs “States of felt deprivation”
Wants “The form human needs take as they are shaped by culture and individual personality”
Exchanges “The act of obtaining a desired object from someone by offering something in return”

What are the marketing philosophies?
The marketing philosophies are five different approaches to carry out strategies to build profitable relationships with customers (Kotler & Armstrong, 2012). Generally, they could each be applied to any organization however each have a different focus.

Table 1 Marketing Philosophy Description
Production “The idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency to reduce costs and thus reduce the selling price of their product” (Kotler, 2012, p. 10).
Product “The idea that consumers will favour products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements” (Kotler & Armstrong, 2012, p. 10).
Selling Focus on persuasion of customers to

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