MKT 108 INTRODUCTION TO MARKETING
2.0 OBJECTIVES
At the end of this unit, you should be able to:
define the term ‘marketing’
outline the concepts underlying marketing
discuss the importance of marketing
describe the evolution of marketing.
3.0 MAIN CONTENT
3.1 Definition of Marketing
Marketing has been viewed differently by different people. This is based on individual
perception. Marketing is a crucial human activity. It embraces the activities we engage
in to satisfy economic needs and wants. Let us pause to examine some definitions by
some scholars, as outlined below.
(a) Marketing is the business process by which products are matched with markets
and through which transfer of ownership is effected (Cundiff and Stanton,
1964).
(b) Marketing is a total system of business activities designed to plan, price,
promote and distribute want-satisfying goods and services to present and
potential customers (Stanton, 1964).
(c) Marketing consists of the performance of business activities that direct the flow
of goods and services from producer to consumer or user (American Marketing
Association).
(c) Marketing is a social process by which individuals and groups obtain what they
need and want, through creating and exchanging products and value with others
(Kotler, 1984).
(d) Marketing is the business function that identifies customers’ needs and wants,
determines which target markets the organisation can serve best, and designs
appropriate products, services, and programmes to serve these markets (Kotler
and Armstrong, 1996).
(e) Marketing is the set of activities that facilitates exchange transactions involving
economic goods and services for the ultimate purpose of satisfying human
needs (Nwokoye, 1981).
In sum, marketing embraces activities related to the product itself, the pricing, the
distribution, communication or promotion, post-sale activities, marketing research and
sales forecasting. However, it should be noted that for marketing or exchange to take
place, the following conditions must subsist (a) there has to be two or more parties
who have unsatisfied wants, (b) some products or services and money to exchange,
and (c) some means of communication between the parties involved. From the above
definitions, it thus implies that a broad range of participants engage in marketing
activities which include:
2
,MKT 108 MODULES
1. a manufacturer or processor
2. a farmer who produces for local or export markets
3. middlemen- wholesaler, agents, brokers and the ultimate buyers
4. a transportation company which moves goods and traders
5. an advertising agency which handles product advertising and
6. a marketing research firm which identifies useful marketing information and
researches buyer needs.
SELF-ASSESSMENT EXERCISE
In your own words, define marketing.
3.2 Basic Concepts Underlying Marketing
Now, we shall be looking at a number of issues here.
a. Needs
The most basic concept underlying marketing is that of human needs. Human needs
are states of felt deprivation. These needs include basic physical needs for food,
clothing, shelter and safety; social needs for belonging and affection; and individual
needs for knowledge and self-expression. The needs are in-built in human nature
itself. It is not invented by marketers. That is, they naturally exist in the composition
of human biology and human condition. When the needs are not satisfied, a person
will try to reduce the need or look for an object that will satisfy it.
b. Wants
Human wants are desires for specific satisfaction of deeper needs. For example, a man
in the village need rain, need food and wants fertilizer. Also, a man may want yam,
rice, body cream, a bag, a wrist-watch, etc. -but needs money. Human needs may be
few, but wants are numerous. These wants are continually shaped and reshaped by
social forces and institutions such as families, church, schools and business
corporations. Marketers don’t create needs, needs pre-exist in markets. Marketers
along with other inferential in the society, influence wants. They suggest and inform
consumers about certain products and persuade them to purchase, stressing on the
benefits of such products.
c. Demands
People have almost unlimited wants, but limited resources. The want to choose
products that provide the most value and satisfaction for their money. When backed
by purchasing power, wants become demands. That is, demands are wants for specific
products that are backed up by an ability and willingness to buy them. For example,
many desire a car such as Mercedes Benz, Toyota, BMW, Honda etc., but only a few
are really willing and able to buy one. It is therefore important for marketing
3
,MKT 108 INTRODUCTION TO MARKETING
executives to measure not only how many people want their company’s products, but
also measure how many of them would actually be willing and able to buy them.
d. Products
People, normally, satisfy their wants and need with products offered into the market.
Broadly, a product can be defined as anything that can be offered to someone to
satisfy a need or want. Specifically, a product can be defined as an object, service,
activity, person, place, organisation or idea. It should be noted that people do not buy
physical objects for their own sake. For examples, a lipstick is bought to supply
service-aid looking good (beauty); toothpaste for whiter teeth – prevent germs; aid
fresh breath or sex appeal. The marketer’s job is to sell the service packages built into
physical products. If one critically looks at physical products, one realises that their
importance depend, not so much in owning them, as in using them to satisfy our
wants. For example, we do not buy a bed just to admire it, but because it aids resting
better.
e. Exchange
Marketing takes place when people decide to satisfy needs and wants through
exchange. Exchange is, therefore, the act of obtaining a desired object from someone
by offering something in return. Exchange is only one of the many ways people can
obtain a desired object. For example, hungry people can find food by hunting, fishing
or gathering fruits. They could offer money, another food or a service in return for
food. Marketing focuses on this last option. As a means of satisfying needs, exchange
has much in its favour, people do not have to depend on others, nor must they possess
the skills to produce every necessity for them. They can concentrate on making things
they are good at making and trade the needed items made by others. Thus, exchange
allows a society to produce much more than it would.
However, Kotler (1984) states that for exchange to take place, they must satisfy five
conditions, namely:
i. there must be, at least, two parties
ii. each party has something that may be of value to the other party
iii. each party is capable of communication and delivery
iv. each party is free to accept or reject the offer; and
v. each party believes it is appropriate or desirable to deal with the other party.
These five conditions make exchange possible. Whether exchange actually takes
place, however, depends on the parties coming to an agreement. If they agree, it is
often concluded that the act of exchange has left both of them better off, or at least not
worse off. Hence, exchange creates value, just as production creates value. It gives
people more consumption possibilities.
4
, MKT 108 MODULES
f. Markets
A market is defined as a set of all actual and potential buyers of a product and service.
These buyers share particular needs or wants that can be satisfied through exchange.
The size of a market depends on the need of people with common needs, and who
have resources to engage in exchange, and are willing to offer these resources in
exchange for what they want.
To the African, the word ‘market’, almost invariably, means the market place where
buyers and sellers gather to exchange their goods- whether it is a period market as in
the rural areas or daily market, mostly found in the urban areas. However, economists
often use the term to refer to a collection of buyers and sellers who transact in a
particular product class, such as clothing market, electronic market, cattle market, etc.
g. Marketers
A marketer is someone seeking a resource from someone else, and willing to offer
something of value in exchange. A marketer could be a buyer and/or a seller.
SELF- ASSESSMENT EXERCISE
State conditions under which exchange take place.
3.3 The Evolution of Marketing
Marketing develops as the society and its economic activities develop as well. The
need for marketing arises and grows as the society moves from an economy of
agriculture and self-sufficiency to an economy built around division of labour,
industrialisation and urbanisation.
During agrarian economy, the people are largely self-sufficient – they grow their own
food, produce their own clothes, build their own houses, etc. There was no marketing,
because, little or no exchange was in place.
However, in the course of time, the concept of division of labour began to evolve.
People concentrated on producing more than the quantity they needed; and whenever
people make more than they wanted, the foundation is laid for trade, and trade
(exchange) is at the heart of marketing. At first, the exchange process was a simple
one. The emphasis was largely on the production of basic needs which usually was in
short supply. Little or no attention was devoted to marketing, and exchange was very
local.
Then came the era of marketing; this came about when some producers began to
manufacture their goods in large quantities in anticipation of future demands. At this
juncture, it can be stated that marketing evolved in the United States as a by-product
of the industrial revolution.
5
2.0 OBJECTIVES
At the end of this unit, you should be able to:
define the term ‘marketing’
outline the concepts underlying marketing
discuss the importance of marketing
describe the evolution of marketing.
3.0 MAIN CONTENT
3.1 Definition of Marketing
Marketing has been viewed differently by different people. This is based on individual
perception. Marketing is a crucial human activity. It embraces the activities we engage
in to satisfy economic needs and wants. Let us pause to examine some definitions by
some scholars, as outlined below.
(a) Marketing is the business process by which products are matched with markets
and through which transfer of ownership is effected (Cundiff and Stanton,
1964).
(b) Marketing is a total system of business activities designed to plan, price,
promote and distribute want-satisfying goods and services to present and
potential customers (Stanton, 1964).
(c) Marketing consists of the performance of business activities that direct the flow
of goods and services from producer to consumer or user (American Marketing
Association).
(c) Marketing is a social process by which individuals and groups obtain what they
need and want, through creating and exchanging products and value with others
(Kotler, 1984).
(d) Marketing is the business function that identifies customers’ needs and wants,
determines which target markets the organisation can serve best, and designs
appropriate products, services, and programmes to serve these markets (Kotler
and Armstrong, 1996).
(e) Marketing is the set of activities that facilitates exchange transactions involving
economic goods and services for the ultimate purpose of satisfying human
needs (Nwokoye, 1981).
In sum, marketing embraces activities related to the product itself, the pricing, the
distribution, communication or promotion, post-sale activities, marketing research and
sales forecasting. However, it should be noted that for marketing or exchange to take
place, the following conditions must subsist (a) there has to be two or more parties
who have unsatisfied wants, (b) some products or services and money to exchange,
and (c) some means of communication between the parties involved. From the above
definitions, it thus implies that a broad range of participants engage in marketing
activities which include:
2
,MKT 108 MODULES
1. a manufacturer or processor
2. a farmer who produces for local or export markets
3. middlemen- wholesaler, agents, brokers and the ultimate buyers
4. a transportation company which moves goods and traders
5. an advertising agency which handles product advertising and
6. a marketing research firm which identifies useful marketing information and
researches buyer needs.
SELF-ASSESSMENT EXERCISE
In your own words, define marketing.
3.2 Basic Concepts Underlying Marketing
Now, we shall be looking at a number of issues here.
a. Needs
The most basic concept underlying marketing is that of human needs. Human needs
are states of felt deprivation. These needs include basic physical needs for food,
clothing, shelter and safety; social needs for belonging and affection; and individual
needs for knowledge and self-expression. The needs are in-built in human nature
itself. It is not invented by marketers. That is, they naturally exist in the composition
of human biology and human condition. When the needs are not satisfied, a person
will try to reduce the need or look for an object that will satisfy it.
b. Wants
Human wants are desires for specific satisfaction of deeper needs. For example, a man
in the village need rain, need food and wants fertilizer. Also, a man may want yam,
rice, body cream, a bag, a wrist-watch, etc. -but needs money. Human needs may be
few, but wants are numerous. These wants are continually shaped and reshaped by
social forces and institutions such as families, church, schools and business
corporations. Marketers don’t create needs, needs pre-exist in markets. Marketers
along with other inferential in the society, influence wants. They suggest and inform
consumers about certain products and persuade them to purchase, stressing on the
benefits of such products.
c. Demands
People have almost unlimited wants, but limited resources. The want to choose
products that provide the most value and satisfaction for their money. When backed
by purchasing power, wants become demands. That is, demands are wants for specific
products that are backed up by an ability and willingness to buy them. For example,
many desire a car such as Mercedes Benz, Toyota, BMW, Honda etc., but only a few
are really willing and able to buy one. It is therefore important for marketing
3
,MKT 108 INTRODUCTION TO MARKETING
executives to measure not only how many people want their company’s products, but
also measure how many of them would actually be willing and able to buy them.
d. Products
People, normally, satisfy their wants and need with products offered into the market.
Broadly, a product can be defined as anything that can be offered to someone to
satisfy a need or want. Specifically, a product can be defined as an object, service,
activity, person, place, organisation or idea. It should be noted that people do not buy
physical objects for their own sake. For examples, a lipstick is bought to supply
service-aid looking good (beauty); toothpaste for whiter teeth – prevent germs; aid
fresh breath or sex appeal. The marketer’s job is to sell the service packages built into
physical products. If one critically looks at physical products, one realises that their
importance depend, not so much in owning them, as in using them to satisfy our
wants. For example, we do not buy a bed just to admire it, but because it aids resting
better.
e. Exchange
Marketing takes place when people decide to satisfy needs and wants through
exchange. Exchange is, therefore, the act of obtaining a desired object from someone
by offering something in return. Exchange is only one of the many ways people can
obtain a desired object. For example, hungry people can find food by hunting, fishing
or gathering fruits. They could offer money, another food or a service in return for
food. Marketing focuses on this last option. As a means of satisfying needs, exchange
has much in its favour, people do not have to depend on others, nor must they possess
the skills to produce every necessity for them. They can concentrate on making things
they are good at making and trade the needed items made by others. Thus, exchange
allows a society to produce much more than it would.
However, Kotler (1984) states that for exchange to take place, they must satisfy five
conditions, namely:
i. there must be, at least, two parties
ii. each party has something that may be of value to the other party
iii. each party is capable of communication and delivery
iv. each party is free to accept or reject the offer; and
v. each party believes it is appropriate or desirable to deal with the other party.
These five conditions make exchange possible. Whether exchange actually takes
place, however, depends on the parties coming to an agreement. If they agree, it is
often concluded that the act of exchange has left both of them better off, or at least not
worse off. Hence, exchange creates value, just as production creates value. It gives
people more consumption possibilities.
4
, MKT 108 MODULES
f. Markets
A market is defined as a set of all actual and potential buyers of a product and service.
These buyers share particular needs or wants that can be satisfied through exchange.
The size of a market depends on the need of people with common needs, and who
have resources to engage in exchange, and are willing to offer these resources in
exchange for what they want.
To the African, the word ‘market’, almost invariably, means the market place where
buyers and sellers gather to exchange their goods- whether it is a period market as in
the rural areas or daily market, mostly found in the urban areas. However, economists
often use the term to refer to a collection of buyers and sellers who transact in a
particular product class, such as clothing market, electronic market, cattle market, etc.
g. Marketers
A marketer is someone seeking a resource from someone else, and willing to offer
something of value in exchange. A marketer could be a buyer and/or a seller.
SELF- ASSESSMENT EXERCISE
State conditions under which exchange take place.
3.3 The Evolution of Marketing
Marketing develops as the society and its economic activities develop as well. The
need for marketing arises and grows as the society moves from an economy of
agriculture and self-sufficiency to an economy built around division of labour,
industrialisation and urbanisation.
During agrarian economy, the people are largely self-sufficient – they grow their own
food, produce their own clothes, build their own houses, etc. There was no marketing,
because, little or no exchange was in place.
However, in the course of time, the concept of division of labour began to evolve.
People concentrated on producing more than the quantity they needed; and whenever
people make more than they wanted, the foundation is laid for trade, and trade
(exchange) is at the heart of marketing. At first, the exchange process was a simple
one. The emphasis was largely on the production of basic needs which usually was in
short supply. Little or no attention was devoted to marketing, and exchange was very
local.
Then came the era of marketing; this came about when some producers began to
manufacture their goods in large quantities in anticipation of future demands. At this
juncture, it can be stated that marketing evolved in the United States as a by-product
of the industrial revolution.
5
