Question

Please explain the followings with examples:

1. Nature of marketing

2. Exchange of relationship in marketing

3. Functions of marketing

4. Consumer benefit

Answer 1

Marketing is defined as a systematic activity which not only include the buying & selling of goods or services to the customer, but it also includes value creation to the customers in such a way that it results in gaining profit to the company.

1. Nature of marketing.

1. Marketing is a goal-oriented process. The aim of marketer is to gain profit by providing value-oriented product or service to its customer. For example: Every company do marketing to sell products or services with the purpose of achieving profit & creating value to its customers through it.

2. Marketing is a continuous, development based process. It is complex, continuous, and interrelated process which requires continual improvement for its effective working. For example: Company always need to improve & enhance its marketing activities to remain in competition.

3. Marketing of a customer-oriented process, because it always deals with the satisfying the needs of customers. For example: Companies create product or service only to satisfy the needs of customer, because 'Customer is the king of the market' for whom companies develop product.

2. Exchange of relationship in marketing.

Marketing is as an activity of exchange of relationship among customers and service providers. For example: Whenever company offers product or service to the customer, and customer buy the product or service, then there is a kind of relationship established between them i.e., exchange of relationship occurs among them.

Exchange process between buyer & seller is an essential marketing element. A successful exchange of relationship among the buyer and seller results in creation of valuable, long-term, and loyal customer. It also helps to build & form positive image of the company/service provider. It is necessary to build great relationship with customers, suppliers, or other individuals who play essential role in development of marketing channel. Exchange of relationship in marketing occurs whenever customer purchase companies' product. Purchase of product creates a mutual relationship among customers and companies. For example: whenever student purchase a pen, then exchange of relationship occurs between student & company which produce that pen.

3. Functions of marketing.

1. Marketing function include research and development about product, customer, targeted market, marketing environment, etc. Research and development is an important function of marketing activity, as to become a successful service provider, companies need to do essential research and development activity. For example: Whenever a company decides to launch a new product, they need to do detailed research and development before launching.

2. Marketing is also a managerial function. Marketing is a very vast activity that requires effective & continuous management including, planning, organizing, directing, implementing, and controlling activities. For example: To bring change in existing product line companies need to do opt for proper management plan.

Managerial function also plays a key role whenever company decided to withdraw its product from the market, it requires proper planning and execution.

3. Financial activities are also important functional area of marketing. Finance plays a key role in marketing activities. It involves formulation & drafting of budget for various process involved in marketing. For example: Finance plays important role while allocating budget to advertisement activity.

4. Supply chain & distribution of goods or services to the customers is also important marketing function. Supply chain & distribution channel is the bridge between the buyer and seller through which customer purchase goods or services created by the companies, and companies get profit from their purchase. For example: Companies manufactures product which is provided to the customer with the means of supply chain or distribution channel including, retailer & wholesaler.

4. Consumer benefit.

Every marketing activities revolve around the customers. 'Customer is the king of the market' for whom companies develop product. Consumer benefit is defined as process of designing products or services for customers which can be able to generate value to them by satisfying their needs. Companies design their product or service to satisfy the needs of the customer which creates value to them. Value creation plays an important role in marketing activity, as every company become successful, if and only if, companies works on the providing benefit to the customers. Whenever customers feel satisfied, and receives the same value what he perceives from the product or service, then the company is successful in creating consumer benefit. A customer become a consumer when he buys & consume the product of a company, and if he become satisfied, then it shows consumer benefit has been created through the purchase. ''More the consumer benefit, more will be the competitive advantage to the company.'' Creating consumer benefit automatically makes the company's profit more strong. For example: A car manufacturing company provide consumer benefit to its customer by providing extra benefits to its customers through its car. This can be done by adding extra features such as color, safety & security measures, great music system, etc.

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