Reading. Buying, selling, market research, transportation, storage, advertising – these are all part of the complex area of business known as marketing

Buying, selling, market research, transportation, storage, advertising – these are all part of the complex area of business known as marketing. Marketing is the process of planning and executing the conception, pric­ing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing makes products available where customers want them by transferring the ownership of products to buyers. The entire business organization is involved in a dual process of satis­fying customer needs and achieving organizational goals. Implementation of marketing concept begins and ends with marketing information about customers — first to determine what customers need, and later to evaluate how well the firm is meeting those needs.

A market consists of people with their needs, the ability to buy, and the desire and ability to sell. Markets are classified as con­sumer and industrial markets.

A business firm controls four important elements of marketing which are called a marketing mix.A firm's marketing mix is the combination of the product, the price of the product, the means for its distribution, and the promo­tion of the product to reach a firm's target market.

A firm can vary its marketing mix by changing any one or more of these ingredients. Thus a firm may use one marketing mix to reach one target market and a second, somewhat different marketing mix, to reach another target market. For example, most automakers produce several different types of vehicles and aim them at different market segments based on age and income.

1) The product ingredient of the marketing mix includes deci­sions about the product's design, brand name, packaging, warran­ties, and the like.

2) The pricing ingredient includes both base prices and dis­counts of various kinds. Pricing decisions are intended to achieve particular goals, such as to maximize profit or even to make room for new models. The rebates offered by automobile manufactur­ers are a pricing strategy developed to boost low auto sales.

3) The distribution ingredient involves not only transportation and storage but also the selection of intermediaries.

4) The promotion ingredient focuses on providing information to target markets. The major forms of promotion include advertis­ing and publicity.

The "ingredients" of the marketing mix are controllable ele­ments. A firm can vary each of them to suit its organizational goals, marketing goals, and target markets.

Comprehension