Modern marketing as an integrated process, and the importance of marketing

Comment on the statement

The statement describes modern marketing well. Older views equated marketing with selling: disposing of whatever the factory produced. Modern marketing starts before production and continues after the sale, and it is an integrated process with three linked parts:

1. Identification of human wants. Through marketing research, observation of buyers, analysis of sales data and social media, the firm discovers what needs exist, which are unmet and how they are changing.
2. Assessment of wants. The firm then measures and evaluates these wants: the size and growth of demand, buyers' ability to pay, the segments in the market, the strength of competitors and whether the firm can serve the want profitably. On this basis it chooses target markets and a positioning.
3. Satisfaction of wants. The firm designs the product, sets the price, arranges distribution and communicates with buyers, the marketing mix, and follows up with after-sales service and relationship building, so that customers are satisfied and return.

At the heart of the process is exchange: the buyer gives money for an offer that he values more than the money, and the firm gains revenue in return. Marketing's task is to create that customer value; the more value buyers see, the more they buy and return, and the sales, revenue and profit that follow are how the firm meets its own objectives.

The process is integrated because each step depends on the others and because all departments, research, production, finance and service, must work together around the customer. Example: a firm notices that working couples want quick, healthy breakfasts (identification), estimates the size of this urban segment (assessment), and launches ready-to-cook oats in single-serve packs sold through supermarkets and apps (satisfaction).

Importance of marketing

To the firm

1. Generates revenue and profit. Marketing brings in customers and sales, on which survival depends.
2. Guides business decisions. Information about wants guides what to produce, how much and at what price.
3. Helps face competition. Understanding customers better than rivals allows differentiation.
4. Supports growth. It identifies new markets and products, such as rural markets and digital channels.
5. Builds goodwill and loyalty. Satisfied customers repeat purchases and recommend the firm.

To consumers

1. Wider choice of products, brands and prices.
2. Better products and value, because firms compete to satisfy them.
3. Information about new products and their use.
4. Availability of goods at convenient places and times.

To society and the economy

1. Higher standard of living, as new and improved products spread.
2. Employment in sales, advertising, transport, retail, research and logistics.
3. Economic growth, because demand stimulates production and investment.
4. Integration of markets, linking rural producers and consumers with national and global markets.
5. Promotion of social causes such as health, cleanliness and safety through social marketing.

Conclusion

Modern marketing is indeed an integrated process of identifying, assessing and satisfying human wants. Its importance lies in the fact that it links the firm to its customers and benefits the firm, consumers and society alike.