An Overview of Marketing

The process of identifying consumer needs and wants and satisfying them profitably through the exchange of goods and services.

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.

The marketing concept is a business philosophy which states that customer satisfaction is the key to achieving organisational goals. It focuses on identifying the needs and wants of target customers and satisfying them more effectively and efficiently than competitors.

Target market is the specific group of potential customers—defined by demographics, geography, income, lifestyle or buying behaviour—for whom a firm designs its product, price, promotion and distribution efforts.

Marketing is the process of identifying customer needs and wants, and then producing, pricing, promoting, and distributing goods and services to satisfy those needs profitably. It covers all activities from product planning to after-sales service.

Two importance of marketing to consumers:

1. Availability of goods and services: Marketing makes the right products available at the right place and time for consumers.
2. Wider choice and better quality: Competition among marketers gives consumers a variety of products at reasonable prices and improved quality.

Demand is the quantity of a good or service that consumers are willing and able to buy at a given price during a given period of time.

The internal components of the marketing environment are those factors inside the organisation that it can control: the firm's owners and shareholders, top management, employees (human resources), finance, production, research and development (R&D), marketing system, and organisational culture and objectives.

Introduction

Business concepts (philosophies) of marketing are the different orientations that guide how an organisation conducts its marketing activities. Over time, firms have moved from a focus on production to a focus on customers and society. The main concepts are as follows.

1. Production Concept

This is the oldest concept. It holds that consumers prefer products that are widely available and cheap, so management should concentrate on improving production and distribution efficiency and lowering cost. It suits markets where demand exceeds supply or where cost is high and must be reduced.

Example: a manufacturer of basic goods in a shortage economy expands its factory to produce more units at lower cost.

2. Product Concept

It holds that consumers favour products that offer the best quality, performance and innovative features, so the firm should keep improving its product. Its weakness is "marketing myopia": the firm falls in love with its product and ignores whether customers actually want it.

3. Selling Concept

It holds that consumers will not buy enough of the firm's products unless the firm undertakes aggressive selling and promotion. The aim is to sell what the firm has made, not to make what customers want. It is commonly used for unsought goods such as insurance, and it focuses on short-term sales rather than long-term satisfaction.

4. Marketing Concept

It holds that the key to achieving organisational goals lies in identifying the needs and wants of target customers and delivering satisfaction more effectively and efficiently than competitors. It starts with the customer, uses integrated marketing and aims at profit through customer satisfaction. Its slogan is "find a need and fill it".

5. Societal Marketing Concept

It extends the marketing concept. The firm must satisfy customers' needs and also protect or improve the well-being of society (environment, health, resources), while earning profit. It balances three considerations: company profit, consumer wants and public welfare.

Example: a company using biodegradable packaging and avoiding pollution.

Comparison in Brief

Modern firms are expected to follow the marketing and societal marketing concepts.

Introduction

The Nepalese market is the set of buyers and sellers of goods and services within Nepal. It is a developing, small and largely import-dependent market with the following main features.

Features of the Nepalese Market

1. Small market size: Low purchasing power and a limited population of high-income buyers keep the effective market small, which restricts large-scale production.

2. Agriculture-based market: A large share of the population depends on agriculture, so demand and income are influenced by monsoon, harvest and seasonal factors. Demand for many goods rises after harvest and during festivals.

3. Low income and purchasing power: Per capita income is low, so consumers are price-sensitive and prefer cheap, basic and small-pack goods. Remittance income has, however, raised demand in many households.

4. Dependence on imports: Many consumer, industrial and capital goods (fuel, machinery, vehicles, electronics) are imported, mainly from India and China, so the market is affected by foreign prices, exchange rates and trade policies.

5. Diverse culture, language and tradition: Differences in caste, religion, language and region affect tastes and buying behaviour. Festivals such as Dashain and Tihar create seasonal peaks in demand.

6. Geographical difficulty: Mountains, hills and the Terai differ in terrain and access. Poor roads and transport raise distribution costs and make some areas hard to serve, so markets are concentrated in urban and Terai areas.

7. Weak infrastructure and underdeveloped marketing system: Limited storage, transport, communication and credit facilities weaken distribution. Many middlemen and informal traders increase costs.

8. Open border and unofficial trade: The open border with India makes smuggling and cross-border shopping common, which affects local producers and prices.

9. Growing use of modern marketing: Urban areas show growth in supermarkets, branded goods, digital payment, e-commerce and social media promotion, while rural areas still rely on traditional markets (haat bazaar).

10. Increasing competition and consumer awareness: Entry of foreign brands and growing consumer awareness and rights, together with the growth of the service sector (banking, telecom, tourism), are making the market more competitive.

Conclusion

The Nepalese market is small, diverse and developing. Marketers must set prices, products and distribution to suit low incomes, geography and local culture.