What is marketing? Definition, nature and scope

Today marketing does not function well enough in Russian organizations. This is due to the fact that there are few domestic scientific developments in marketing, due to which organizations could competently manage the activities of the company in the modern market.

In the system of modern economics, no company exists without a marketing service. This is due to the fact that the needs of consumers are constantly growing or changing. Moreover, each subject has personal preferences.

Today, the management of the organization’s marketing activities is an integral part, without which it is impossible to ensure successful efficient production.

In practical terms, far from all Russian organizations have introduced marketing processes for managing, investing and modeling activities in the context of the transformation of the Russian economy, which determined the relevance of the topic of the article.

Marketing concept

At the very beginning of this article, the main task is: “Give a definition of marketing.”

Today in modern literature you can find many different concepts that can use both complex and other characteristics of this issue, considering the field of knowledge from various aspects.

However, consider one definition of marketing given by the international marketing professor at the Graduate School of Management, J.L. Kellogg at Northwestern United States University, Philip Kotler, who has the right to be considered the founder of modern marketing theory. From the point of view of F. Kotler, marketing is a type of human activity aimed at satisfying needs and requirements through exchange.

The current definition and concept of marketing was revised in 2007 by the American Marketing Association (AMA; American Marketing Association). It looks like this: it is an activity, a set of tools and processes that provide for the creation, communication, delivery and exchange of proposals of value to consumers, customers, partners and society as a whole.

The greatest effect and benefit of a company from marketing is achieved if it works as a holistic management concept and a system for managing the activity of a subject (organization) in market conditions.

The definition and concept of marketing consists in the following expression: the word comes from the English market - “market”, that is, the total system of organization of production and marketing and research activities of the enterprise, which is focused on the most profound satisfaction of consumer demand; aims to establish, strengthen and maintain profitable exchanges in order to achieve specific goals and profit.

Basic concepts

The definition of marketing goals is as follows:

• gaining a niche in the market;
• consumer research;
• creating a favorable image of the company;
• improving the quality of life of customers;
• selection of the most optimal mechanism for making a profit;
• increase in sales;
• growth in output;
• cost reduction.

Consider the main tasks of the studied concepts for today:

• analysis and monitoring of the market situation;
• study of consumer preferences;
• application of elements of internal marketing ;
• customer control and monitoring;
• creation of communications;
• promotion of goods;
• price monitoring.

Planning

The definition of a marketing plan should be understood as a special document, which is an integral part of the strategic development plan of the company, which defines all the market goals of the enterprise, presents methods for their achievement and indicates the budget for this.

This type of plan is developed by the company, usually for 3-5 years. It contains the long-term goals of the company, determining the marketing position based on available resources.

The need for a marketing plan is due to the following facts:

• if it is absent, the actions of the company are spontaneous;
• there is a conflict of possible options for the development of the company;
• there is no accuracy in determining the target audience of the company;
• there is no order in the procurement and marketing of products.

The process of developing a marketing plan for a company has the following sequence:

• company mission definition;
• conducting SWOT analysis;
• development of company goals and strategies;
• task development;
• drawing up a marketing plan;
• determination of the marketing budget;
• control over its execution.

Under the marketing budget, we can understand the plan for the amounts of income, costs and profit as a result of its implementation.

In this case, the income is a forecast value, and the costs are calculated based on the costs incurred for activities according to the developed plan.

Profit is calculated as the difference between income and expenses.

The structure of the marketing plan will be as follows:

• company results for past periods (as the basis of the plan);
• market analysis and forecast;
• developed goals and objectives;
• developed market strategy;
• pricing, marketing, communication policy of the company;
• deadlines;
• budget plan.

Marketing management

The definition of marketing management is a mechanism for the impact of the enterprise and its leadership on market demand in order to achieve the final result of the company's profit.

Marketing management is a complex process of analysis, planning, organization and monitoring of the company’s activities in establishing and maintaining contacts with target consumers, as well as achieving company goals such as increasing revenue, increasing sales, increasing market share, etc.

Key marketing definitions suggest key points. The key points in the concepts of organization marketing management are:

• A process in which analysis, planning and monitoring of the implementation of plans work together;
• management process, covering the implementation of services, ideas and goods;
• process acting on the concept of exchange;
• satisfaction of all participants in the process (exchange / transaction).

Marketing management is aimed at specific objects and is implemented by various actors.

The basic definitions of marketing involve the study of its object and subject.

The object of marketing management - this is what the actions of the subject of management are related to the sale, distribution, advertising. The role of marketing objects may be material values, services, movable and immovable property, information. “Management Object” reflects the functioning of the organization by choosing a market niche, by choosing a marketing policy and strategy, taking into account the factors of both the external and internal environment.

Marketing management entity - a legal entity or an individual performing various marketing functions. Various subjects of marketing management perform their unique functions.

The functions performed by the subjects of marketing management are presented in the table below.

Management of the marketing activities of the organization is a work aimed at researching the interests of consumers. This work includes:

• research and forecast of actions, competitors' behavior;
• creation and development of new goods and services that will be competitive;
• control over the sale of finished products, pricing.

The main goal of marketing management is to guarantee the accurate implementation of actions aimed at stimulating the market.

The organization’s marketing management value is quite large, because those companies that pay due attention to it are leaders in the market economy in their segment. Actions to fulfill the needs of customers and establish long-term relationships between them and the organization should come first. To be the first among competitors, you need to study the market, to know how it works and what its needs are. In other words, when transforming the Russian economy, marketing plays a significant role.

The essence of the definition of marketing an organization can be considered from three sides:

• as a type of human activity: activities aimed at the exchange in market relations;
• as a management system: the main focus is on satisfying the interests of consumers;
• as a concept or philosophy of activity: it is important that the organization’s activity is aimed at finding the needs and requirements in its market segment, and most importantly, they need to be implemented in a more efficient way than competitors.

Based on this, it follows that the essence of marketing management is the rule: produce only what the client (buyer) needs, and do not impose that which will not find a response in the market.

Marketing usually not only responds to market development, but is itself the initiator of its development, releasing new products, thereby expanding it. For the successful functioning of the marketing management mechanism, it is necessary to fully study the market system, functions, its pros and cons.

The definition of marketing involves the study of the management process. The marketing management process consists of four important steps, which are discussed in more detail below:

• analysis of market opportunities;
• selection of target markets;
• development of a marketing mix;
• the embodiment of marketing activities.

The marketing management system includes functions, a set of goals, methods, principles, ways to manage them, as well as a management structure.

The organization’s marketing management system is a difficult issue, the solution of which is possible only with an integrated approach. The marketing system is quite flexible and adaptable, even small organizations include both external and internal factors that need to be considered when analyzing the company's activities. Proper management of the marketing system allows you to respond on time to all changes in the market environment.

The goals of marketing management include the recognition by the company of the interests of all market participants, actions aimed at making a profit and ensuring effective activity in the market. The implementation of the tasks is due to the implementation of management functions. Realizing the goals of a company is easier to accomplish by creating a goal tree. Its creation allows the introduction of both promising and operational goals, as well as quantitative and qualitative.

The technology of the organization’s marketing management process contains:

• collection and research of data on competitors and their market behavior;
• investigation of the possibility of force majeure in the market;
• research followed by modeling the decisions of psychology of potential buyers.

Management of the market position of the organization is carried out by means of process-oriented operations of marketing management. These operations include the latest information technology, reengineering and the economy with its current trends.

Reengineering is the process of transforming an organization by means of modernizing previously implemented technological solutions. The purpose of this phenomenon is to increase the effectiveness of the organization.

The latest technologies are manifested in the implementation of CRM and SCM control systems. CRM (Customer Relationship Management) - software that allows you to interact with customers. SCM (Supply Chain Management) - a supply chain management system . Logistic marketing management operations regulate the market position of the company due to the competent organization of the distribution and movement of material and information resources.

The definition of marketing involves the study of its basic elements. The main elements of the technology of the organization’s marketing management process are:

• the creation of goals for managing the company in the market (by means of tactical and strategic marketing);
• preparation (planning) of marketing management decisions;
• execution of marketing strategies and plans, as well as control over their implementation.

The organization’s marketing management system compiles a program to change the company's market position and reduces to a program of marketing actions related to the process of interaction with market segments.

Management principles

The definition of marketing management involves the study of its principles. The formation and management of the market position of the organization follows from the principles of marketing management. The principles of marketing management are the rules stemming from economic laws, and also acting on the basis of various stages of market development (during a crisis / risk). The principles are the link between intra-company relations and organizational units of the company, and also establish a connection with the external market environment. Consider one of the approaches in the system of principles of marketing management, presented by I.M. Sinyavoy:

• The principle of organizational behavior is the qualitative prevention of risks and services;
• the principle of profitability and efficiency is expressed in the control over the implementation (execution) of the strategy, competitiveness and demand;
• The principle of professionalism of management is formed from the information security of employees and their incentives by management;
• the principle of control and accounting, includes internal and external audit, environmental and labor safety;
• the principle of the optimal ratio of centralization and decentralization is expressed in the distribution of powers, as well as in crisis management.

The main types of marketing activities

The organization’s marketing activities are aimed at promoting the market of goods and services by means of analyzing the needs of customers and consumers, as well as meeting these needs. Based on this activity, stages are formed for the competent distribution of goods and services to the end customer.

Marketing activities are carried out in order to increase the efficiency of the organization. It is customary to distinguish between four main types of marketing activities. The definition of marketing types is shown in the table below.

The main types of marketing activities of the company:

Complex marketing

For the first time, the concept of “marketing mix” (marketing mix) appeared thanks to the professor of Harvard Business School N. Borden in 1964. In his opinion, the marketing mix is ​​a set of components such as product, price, distribution method and incentive methods. Today, there are many definitions of this concept.

Currently complex marketing (marketing mix) is a combination and proper organization of all elements and tools of marketing. It focuses on the development and implementation of a dynamic marketing strategy, providing for the variability and complexity of the market. It is accepted to single out four fundamental aspects of the marketing mix, which form the marketing strategy. This is a combination of goals, problems, methods of solving them, which determine the path of product sales, pricing and marketing. To denote this aggregate in 1960, J. McCarthy synthesized a marketing mix from concepts such as product (Product), price (Price), promotion (Promotion), distribution (Place), putting forward the 4P model. This is the concept according to which the marketing mix is ​​four interconnected elements.

Strategic moments

The determination of the marketing strategy of the enterprise should be based on a complete analysis of the financial activities of the company. Evaluation of the company's market capabilities and the marketing environment of the market is a possible means of providing management information about changes in marketing to improve the overall management system.

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Product marketing

The definition of a product in marketing is all that can satisfy the customer’s needs, as well as what is offered to the market to attract consumer attention.

The main components of the product in marketing terms are:

1. Product as a way to meet customer needs. The task of marketing is to create a favorable image of the product.
2. Product support as a measure to improve the efficiency of its use, storage, sale.
3. Marketing tools.

Commodity policy is a marketing activity that is associated with the planning and implementation of a set of measures and strategies to create positive advantages of a product.

Product policy provides the ability to manage the product life cycle at different stages.

Summary

Marketing is a brief definition of the function of the organization, the processes of creating and promoting among consumers the goods and services provided and produced by the company, as well as the study and adjustment of the system of relations with these consumers in order to maximize the company's profit.

Marketing activities in the organization occupies one of the leading functions. It determines the policy of the company both from the technical and production sides, and from the side of style, nature of management of all business activities of the company. Based on the analysis and research done, marketing specialists are trying to convey to the company employees, whether engineers or developers, what product is needed now, what potential consumers want it to be, what price they are willing to buy it and in what period of time it will be needed.

The correct definition of marketing goals allows the company to achieve final performance in terms of generating revenue and profitability in the near future.