In this article, I will be writing on Introduction to Marketing: Meaning, types of market, Market segmentation, types of utility, also the importance And functions of marketing.
Contents
- Definition of Market
- Types of Market
- Market segmentation
- Functions Of marketing
Introduction To Marketing
Definition of Marketing: Marketing consists of the performance of business activities that direct the flow of goods and services from the producer to the consumer or users in order to satisfy consumers and accomplish the company’s objective. It compasses all activities aim at facilitating exchange.
Marketing creates time, please and possession. It arranges for production and making goods available at the right time, in the right place and form. Marketing embraces all the activities relating to the product itself. This activities include the pricing, distribution, promotion, research and sales of forecasting.
Definition of Market
Market: A market may be defined as a place where goods and services are exchanged. It is an avenue for buying and selling. In other words, a market is a place, point or any means of communication whereby the transfer of title or ownership of goods and services can be effected.
Market and Types of Market
Market for into three categories namely
- Consumer market: This type of market consists of the purchasers in the household who intend to consume or benefit from the purchase products and who do not buy products for the main purpose of making profits.
- Industrial markets: This types of market consists of individuals, groups or organizations that purchase a specific kind of product for direct use in producing other products or day to day operation.
- Producer markets: This types of market consists of individuals or businesses that purchase product for the purpose of making profit by using them to produce other products.
MARKETING SEGMENTATION
In introduction to marketing we have what is called marketing segmentation. Market segmentation is the process of dividing a total market into market groups, consisting of people who have relatively similar product need. The market will be subdivided into homogeneous subset of customers where any subset may be selected as a target market to be reached with a distinct mix.
Put in another way, market segmentation is the division of a market into identifiable sub markets for the purpose of reaching target customers with the most appropriate marketing mix. It enables the seller to make appropriate set of product mix, quality, price are advertisement.
Usually there are two segmentation strategies employed by marketing professionals. These are:
- Concentration segmentation: This its when an organization direct is marketing effort towards a single market through one marketing mix, e.g. Roll Royce produces luxurious cars.
- Multi-segment strategy: This is one where the organization direct its effort at two or more segment by developing a mix for each selection segment.
TYPES OF UTILITY
- Form Utility: Form utility is created by changing the form of raw materials into finished goods, e.g, production in agriculture or manufacturing great form utility.
- Place Utility: This is reflected in the transportation of the product from the point of production to the final consumers.
- Possession Utility: Possession utility is reflected in the transfer of title and in providing information about the product so that the buyer may use or enjoy it to the best advantage
Importance of Marketing in an economy
Below we are going to be looking at the important of marketing:
- Marketing Bridges the gap between the producer and the consumer
- It also reduces wastage through marketing research thus indirectly increasing production
- Marketing convert people’s need into profitable company opportunities, through the movement of industrial goods to rural consumers by promotion and consumer education.
- Marketing is a creative employer because all the numerous activities performed there in are possible employment Avenues.
- The exercise improves the standard of living by making goods produced in one area available in another area.
- Another importance of marketing is that it assist in the transfer of goods from the producers to the consumer.
- Marketing inform the consumers about the availability of goods and services.
- It also ensures consumer satisfaction.
Functions Of Marketing
Below are the various Functions of Marketing:
- Risk bearing: This involves anticipating business risk and taking appropriate measures to reduce their impact by taking the necessary insurance cover.
- Financing: This covers the provision of funds through the period of production to the point of selling through loans and credit facilities.
- Storage/warehousing: This makes it possible for goods to be produced ahead of demand so that they can be available when needed.
- Buying/selling/exchange: This is another functions of marketing, because it’s covers purchase of raw materials and goods from so many sources and transfer of ownership of such goods to the consumer at the right quality.
- Grading and standardizing: It involves ensuring that the good conformed to the required standard and quality with respect to shape, color, taste, etc.
- Marketing information research is another functions of marketing. This involves collection of information from many sources and dissemination to producers and distributors.
- Transportation: This covers movement of goods from where they are produced to the point where they are required.
- Pricing: Marketing, assisting in fixing price at a level reasonable enough to give profit to the company.
In conclusion on this article on introduction to marketing, marketing is very important in economy. So you should note the importance, the functions especially and types of market.