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Fundamental principles of costing

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Marketing concept


Pic.1 Marketing
Marketing is perhaps the most complex and challenging function performed by every business firm. The term marketing is a very comprehensive one. Marketing starts well before production commences and end sonly after rendering after-sale satisfaction. It is the set of those activities necessary and incidental to bring about exchange relationships.
It is the skill of selecting and fulfilling consumer desire in such a way that a dose of money put in brings back maximum return.
According to William J. Stanton, “marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to present and potential customers”.
According to Prof. Harry L. Herman, “marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these product and services, and then, in turn, expanding this demand”.
According to Philip Kotler, “marketing is the analysis, planning, implementation and control of programmes designed to bring about desired exchange with target audiences for the purpose of personal and mutual gain. It realizes heavily on the adoption and coordination of product, price, promotion and place for achieving effective response”.   
This definition covers a good deal of marketing function. It contains the main elements of modern marketing management, comprise, administrative activities and suggest ideas of marketing mix and marketing segmentation.
The term marketing can be defined from two viewpoints-micro and macro marketing.
Micro-Marketing
The thrust of the micro-marketing is on the individual firms. It may be described as the process of formulating and implementing certain policies by a firm like product strategy, pricing, promotion and distribution that ensures flow of goods and services from one end to another profitability.
Micro-marketing reveals two aspects, first, ti must ensure need satisfying goods. Marketing should begin with the custom and not with the production. Secondly, marketing, but not production should decide what products are to be made. These two aspects based on consumer oriented approach of marketing i.e., consumer is at the centre of all marketing activities.
Macro-marketing
Under this system, marketing may be viewed as a complex system of organization and processes by which the nation’s resources are distributed among the people to satisfy their needs. Macro-marketing is not emphasized on the activities of an individual organization but is on the total system. In a wider sense, macro-marketing is concerned with how effectively a society uses its scarce resources and how fairly it allocates its output of goods and services, both in the short run and in long run. In the words of Malcom P. McNair, macro-marketing is a fundamental societal process which necessarily and inherently evolves within a society to facilitate the effective and efficient resolution of the society’s needs for exchange of consumption values.


Also read:
Evolution of marketing
Importance of marketing in an economy

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