4.1 The market

Market

Market is a mechanism where buyers and sellers interact to exchange the ownership of commodities. Market may either be:

·         a marketplace where people physically come together to exchange goods and services, eg, shopping malls, super markets, boutique store, stock market, etc.

·         a virtual market wherein buyers and sellers buy and sell commodities in an online market through the aid of internet.

Marketing

Marketing is a concept of satisfying needs and wants of customers.

Evolution of marketing / Product vs Market orientation

·       The production orientation era

Demand > Supply

For much of the industrial revolution goods were generally scare and the focus of marketing was on production. Producing at lowest possible cost, reducing distribution cost and opening new markets were considered to be marketing management.

·       The sales orientation era

Supply > Demand

From the start of the 20^th century following the Second World War competition grew and the focus of marketing turned to selling. Communications, advertising and branding were of vital importance to sell the increasing outputs in increasingly crowded market.

·       The market orientation era

From the 1960s onwards the markets have mostly become saturated, where there is intense competition for customers as the size of the market remains stagnant. In modern days marketers research markets by carry on surveys, etc to find out the needs and wants of customers. They are also immensely interested in brandings and ensuring employees understand marketing. Unlike the prior concepts, here the ultimate aim of marketing is to satisfy the customers by giving emphasis on the marketing mix.

Marketing objectives

Marketing objectives are goals set by a company to promote its products or services to the potential customers to achieve within a particular time period. Marketing objectives include:

·         Increasing product awareness

·         Providing information about product features

·         Increasing market share

·         Rebranding a product

Marketing strategies / plan

Marketing strategy is a set of plans which helps to achieve the marketing goals. The marketing strategies include:

·         Raising the price

·         Improving packaging

·         Offering special offers available

·         Distributing through exclusive outlets

Market share

The percentage of an industry or market’s total sales captured by a particular company or brand. It shows the size of a company to its market and competitors.

The formula:

Market share = (Total product or business sales / Total sales in the whole market) x 100

Marketing mix / 4Ps

·         Product

·         Price

·         Promotion

·         Place