Introduction to Marketing

Marketing is a management of satisfaction of demands by trade.
Marketing — is a system of studying and regulating of market processes, sales management of the company.
Marketing — is the ordered and purposeful process of comprehension by the company of consumers’ problems and satisfaction of their needs (requirements).
The majority of the researchers converge in opinion, that marketing — is a process. It begins with research of a target segment of the market, for which the company is going to work. Marketologs determine demand and opportunities that is they stay in constant search of the buyers, whose requirements are not satisfied sufficiently or who has implicit interest to the certain goods or services. In process of marketing is made a segmentation of the market and choice of those its parts — target segments, which the company is capable to serve in the best way. The firm develops the plans of creation and finishing production up to the consumer, and also concrete strategy marketing mix influence on demand through the goods, price, and channels of distribution and methods of goods promotion. It is necessary to create system of marketing audit, which will allow the company to estimate results of spent measures and to study on its own experience, constantly developing and filling up own methods of influence on the customers. Thus it is necessary to take into account that the marketing begins not only with the goods, but with search of requirements of the market in the new and old goods, services and ideas.
There is also more simple definition of marketing offered by Alex Novikov: «Marketing is activity directed on achievement of the purposes to organization at the expense of interaction with the market». In other words, the activity of any organization can be divided into operational manufacture, logistics, finance etc.) and marketing, that is, interaction with the market. The contents of the interaction with the market and the purposes everyone will define for himself. For someone this is profit getting, for others -- this is reception of pleasure getting, etc.

Concepts of marketing management
There are five basic approaches, on the basis of which the commercial organizations carry out management of the marketing activity: the concept of perfection of manufacture, concept of perfection of the goods, concept of the intensifications of commercial conditions, concept of marketing and concept of social - ethic marketing. These concepts were formed in the various periods of market economy development. The common tendency of development of marketing is accent shift from manufacture and goods to commercial efforts, to the consumer and increasing orientation to consumer and social ethics problems.
The concept of perfection of manufacture (the production concept) is based on the fact that the consumers will be benevolent to the goods, which are widely distributed and are accessible for the prices, and, hence, management should concentrate the efforts on perfection of manufacture and increase a system of effectiveness of distribution.
The application of the concept of perfection of manufacture approaches in two situations. The first is when demand for the goods exceeds the offer. In this case the authority should concentrate on research of ways to increase manufacture. The second is when the cost price of the goods is too great and it is necessary to lower it, for this it is necessary to increase productivity.
The concept of perfection of the goods (product concept) has its roots in that the consumers will show interest to the goods which offer the best quality, best operational characteristics and properties, and, hence, organization should concentrate the energy on constant perfection of the goods.
Using this concept can ensure a firm with the certain advantages only in the short-term plan, however in the whole concept of perfection of the goods results to «of marketing short-sightedness». Giving all attention to the given kind of production, the seller can miss from attention of need of the consumers. So, for example, in the USA the management of rail roads believed that the trains are necessary to the consumers, instead of the means of transport and has not noticed threat on the part of airlines and vehicle. The manufacturers of logarithmic rulers considered, that the rulers are necessary to the engineers, instead of opportunity to make accounts, and have missed threat on the part of pocket calculators.
The concept of commercial efforts intensification (selling concept) recognizes that the consumers will not buy the goods of firm in enough quantity, if it does not undertake sufficient efforts in the sphere of selling and stimulation.
The concept of marketing (marketing concept) recognizes that by a pledge of achievement of the purposes of organization are definitions of both needs (requirements) of the conditional markets and maintenance of desirable satisfaction more effective and more productive, in comparison with competitors methods. The object of attention in the concept of marketing is not the goods, but firm clients with their needs and requirements. The profits thus the firm receives due to creation and maintenance of consumer satisfaction.
Comparing the last two concepts we can also notice that the concept of intensification of commercial efforts is a characteristic feature for example, for a Russian market in general, and marketing concept is used very rarely, only in VIP building construction.
The concept of social - ethic marketing (societal marketing) recognizes that by a task of firm is the establishment of needs, requirements both interests of the target markets and maintenance of desirable satisfaction more effective and more productive (than competitors have) ways with simultaneous preservation both strengthening of the consumer well-being and society as a whole.
This concept was generated rather recently, after the conclusion about insufficiency of the concept of pure marketing from a position of an environment protection, shortage of natural resources and number of other social - ethic problems was made. At the end, the pure marketing concept does not consider a problem of the possible conflicts between the buyer requirements and his long-term well-being. The concept of social - ethic marketing requires equation of three factors: profits of firm, purchasing needs(requirements) and interests of a society.

How marketing became so important
eras in marketing evolution of manufacturing

Here is another division of marketing concepts.
1. Era of the perfection of manufacture and goods concept
"Production Era "
The concept was based on the statement, that any products (goods and services), which are submitted in the market and are accessible for the price, will be claimed by the buyers.
o Businessmen concentrated on perfection of technology and organization of manufacture of maximal volume of the goods for reception of economy at the expense of mass manufacture and, hence, decrease of the cost price and price of production.
o Such approach is quite justified, when the demand essentially exceeds the offer or, when the cost price of a unit of production is big enough and it is necessary to reduce at the expense of organization of mass manufacture.
o In a world economic history a classical example of realization of such concept is the automobile company Ford.. Ford has put to himself the purpose in perfection of manufacture of the automobile of "Т" model so that at the expense of decrease(reduction) of its cost price to make the automobile more accessible for the consumer. As the result, Ford made the automobile not only mass goods and means of movement, instead of subject of luxury, as it was earlier, but also appreciably promoted formation of the market of the consumer, having increased wages by the worker and having set it up to 5 dollars per day, that in 2,5 times exceeded a level at other enterprises of America.
o the Era of orientation on manufacture can be limited to the following temporary frameworks - end XIX of century - 20 years XX of century.
2. Era of the concept of selling, "Sales Era "
According to this concept the consumers will not get production of organization in enough quantity, if it will not undertake significant efforts in sphere of selling and stimulation.
o This era is characterized by prevalence in the conducting industrially advanced countries of a new level of manufacture-marketing processes caused by substantial growth of manufacture of the goods, which volume exceeded real demand.
o In a basis of the given concept lays the system of measures of stimulation of the sellers (commission, fee, premium) and consumers (discount, coupons, premiums, competitions). A method of personal sales in this case is widely used.
o Such approach existed approximately about at first 60 years XX of century.
3. Era of the marketing concept "Marketing Concept Era "
In the end 50-60-th the new concept has arisen:" To make what is possible to sell instead of trying to sell what is made ".
o This era was probably started by the annual report General the Electrician in 1952. However this has received wide spreadness only in 1960.
o In 1960 motto of the manufacturers became: "we are in business for satisfaction of requirements and desires of the consumers "
o Many companies have found out, that the realization of the marketing concept causes difficulties in them.
4. Era of orientation on the market of selling "Market Orientation Era "
The further development of the marketing concept became market orientation, at which the manufacturer focuses the efforts on: (1) continuous information picking about clients requirements and actions of the competitors; (2) distribution of this information on all departments of the enterprise; (3) uses of this information to create value for the client (customer).
o Using the given concept the manufacturer reaches an advantage:
- By concentrating efforts on definition of requirements and demand of the buyers receives an opportunity to ensure them with those goods and services, which are necessary for them, and probability of their purchase is rather high;
- By a concentrating efforts on definition of segments of the general market and concentration of the attention on one or several of them, which are preferable, goes directly on those buyers, with who they should have the greatest success;
- Using results of research of the market for production function optimization – makes easier and facilitates the function of selling goods by manufacture, having high probability of purchase in the target market;
o This concept has received a wide circulation by the end 80 years of the past century in all countries with the advanced market economy.
5. Modern direction of development of marketing:
"Customer Relationship Management (CRM) "!
A modern direction of the marketing concept development is the concept - Management of mutual Relation with the Buyer.
o This concept means a complex of measures, which include:
- Identification of the prospective buyers;
- Understanding them up to depth of soul;
- Development of favorable long-term recognition of organization and its production so that the buyers give them back preference in the market of selling.

1. Adapted from Kotler, Armstrong, Brown Adam & Chandler, (1998) Marketing 4th edition, Pearson Education, Australia.
2. Milestones of Marketing by George Burton Hotchkiss, The MacMillan Company, New York, 1938, page vii
3. "Passionate & Profitable: Why Customer Strategies Fail and 10 Steps to Do Them Right!", Lior Arussy, John Wiley & Sons, 2005
4. "Marketing Management: Strategies and Programs", Guiltinan et al, McGraw Hill/Irwin, 1996
5. "Swarming the shelves: How shops can exploit people's herd mentality to increase sales?", The Economist, 2006-11-11, p. 90.
6. Marketing Nutrition: Soy, Functional Foods, Biotechnology, and Obesity (2005), Brian Wansink, Champaign, IL: University of Illinois Press