Exchange is the Focus of Marketing

The basis for marketing is exchange, a way to satisfy a want.Exchange is to give or receive something of value for another thing. value is the worth of a product, usually in money. "Something of value" exchanged by the marketer can be an idea, good, or service and is not limited to physical objects. Marketers, as well as many businesspeople, use the term product to encompass anything that can be offered to a market that might satisfy a need or want. This could include persons, places, organizations, and activities, as well as ideas, goods, and services. Or as Charls Revsonwas reported to say, "In the factory we make cosmetics. In the store we sell hope."

The customer is the individual or organization that actually makes the exchange or purchase. The consumer is the person or organization that actually uses or consumes the product. Even though customer and consumer are differentiated, he or she can be one and the same person. Existing or potential customers can be considered a market. A market is a group of customers who have the need, the ability, and the authority to purchase a specific product. Thus, buyers constitute a market.

Natural separations exist between exchange parties. Buyers and sellers might be separated by geographical location, lack of information, and timing in production versus demand. Five different forms of separation between potential exchange parties include spatial, temporal, perceptual, ownership, and value. Marketers bridge these separations by performing the functions of exchange (buying and selling), logistics (transporting and storing), and facilitating (financing, risk taking, providing information, standardizing/grading).

Marketing creates and provides utility (usefulness or value) for the consumer. Utility is the attribute in an item that makes it capable of satisfying wants. Form utility is the physical change that makes a product more valuable. Strictly speaking, this is a function of production but marketing plays a vital role in directing the ultimate shape, size, quality, and design of products. Place utility makes a product accessible to potential customers where they want it. Time utility makes a product available when they want it. Possession utility is created when ownership is transferred to the buyer.

Importance of Marketing

The American Marketing Association (AMA) defines marketing as 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 goals. This definition of marketing first appeared in Marketing News on March 1, 1986. It is included in the Dictionary of Marketing Terms, 2d edition, edited by Peter D. Bennett, published by the American Marketing Association, 1995.

The definition of marketing describes the nature of the process. Ralph Mroz of ad lineam defines marketing as the process that aligns the desires of customers with the capabilities of the enterprise. Marketing is a continuous cycle that involves satisfying customer needs and wants by creating mutually beneficial exchanges. A need is a state of felt deprivation. A want is the conscious recognition of a need. Marketing begins with an idea about a want-satisfying product and does not end until customers' wants are completely satisfied, which sometimes occurs after the sale. 

The desire for a product together with the ability to pay for it is known asdemand More specifically, it is the quantity of a product that will be sold during a period of time at different prices. Demand comes from new customers and repeat customers. Marketers must find demand, as well as increase or decrease demand. Demarketing is the marketing task used to reduce or shift demand. Marketing is essentially management of supply and demand.. Outstanding marketers go to great lengths to learn about and understand their customers' demands.

Purpose of Marketing

In today's competitive environment, a strong focus on customer satisfaction is essential to the success of any organization. Rapid globalization means that companies now compete in markets all over the world. Foreign and domestic organizations are realizing that profit will only be achieved through the use of marketing. Marketing is the business function that focuses on satisfying the needs and wants of coustemers through exchange processes. It is the only revenue-producing activity for the organization. Drucker says, "Because its purpose is to create a customer, the business has two - and only two - functions: marketing and innovation. Marketing and innovation create value, all the rest are costs." (See Drucker, Peter F., People and Performance, Harper college Press, 1977, p. 90) Thus, sound marketing is critical to the success of the organization, whether for-profit or not-for-profit, foreign or domestic. 

The idea that profit is not the primary goal of business is not a new. In 1954, Peter Drucker made the point in his book, The Practice of Management. "Profit is not the explanation, cause or rationale of business behavior and business decisions, but the test of their validity." Profits are an essential result of business success. Again, the true purpose is the creation of customers: the efficient provision of goods and services which people want to buy. Satisfy customers and profit will follow. 

Many people think that marketing is just selling and advertising. Peter Drucker explains marketing this way: "The aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service fits him or her and sells itself." This is not to say that selling and advertising are unimportant, but rather that they are part of a larger "marketing mix" that must be orchestrated for maximum impact on the marketplace. 

Jerome McCarthy delineates the marketing mix as the four Ps (product, price, promotion, and place). Thus, a marketing mix is a specific combination of four strategies -- product, price, place or distribution, and promotion or marketing communications -- designed to satisfy customers. The focus of marketing is to do such an excellent job of developing, pricing, promoting, and distributing a product to customers that the product practically sells itself.

Introduction to Marketing

Marketing plays a major role in our daily lives. Each day is filled with consuming products made available by marketers. We pay for marketing each time we buy a product. In fact, half of every dollar spent at the retail level goes to cover marketing costs. Marketing is responsible for satisfying customers, which in turn increases our standard of living and quality of life.

GS holds the key to score high marks in UPSC Mains

The Civil Services (Main) Examination 2011 is scheduled in October . Over the years, there has been a rise in preparation awareness among aspirants, but this exam continues to throw a surprise element calling for newer strategies.

The papers have clearly shown that the UPSC seems to be determined to select those aspirants who are able to cover most of the topics in the syllabus with focus on current affairs.

The number of questions in the General Studies question papers has been doubled from 30 to 60, says P.S. Ravindran, director, Vajiram and Ravi Institute for IAS Examination, New Delhi. “As UPSC covers a large number of areas, General Study’s preparation should be comprehensive,” he says. He stressed the need to score more than 320 marks in both the optional subjects as scoring in the General Studies has become more challenging.

A good number of aspirants in the previous mains examination were not able to score more than 270 out of 600 in both the GS papers.

Many questions pertaining to current affairs of the month of October 2010 were unexpected and candidates found it quite tough to write them properly in the 2010 mains.

Candidates who were able to read at least two broadsheet newspapers such as The Hindu regularly were able to answer those questions. “Reading of two newspapers and Frontline is necessary. Questions based on less prominent news is also being asked,” says Mr. Ravindran.

Instead of reading tons study materials, candidates are advised to select two source materials and concentrate on that with four rounds of quick revision.

A thorough preparation of in statistics and Indian Economy is key for high score. The questions would cover Indian economy and issues relating to planning, mobilization of resources, growth, development, Panchayati Raj, International events and employment.

Issues arising from the social and economic exclusion of large sections from the benefits of development, economic and trade issues such as foreign trade, foreign investment, economic and diplomacy issues relating to oil, gas and energy flows, the role and functions of IMF, World Bank and WTO which influence India's economic interaction with other countries and international institutions are important.

The aspirants who score more than 300 in the GS papers are those with excellent understanding of the subjects at the secondary and higher secondary school level.

They do not need to have any specialized study in any of the subjects for the GS. NCERT books of geography, polity, economy, history and statistics continue to be useful for revising the syllabus for the main examination.

IGNOU study materials on optional subjects could be of great used for understanding the basic for the General Studies and the optional subjects.

The CSAT-2011 had 14 questions on current affairs of May 2011. Over 70 questions in the CSAT -2011 were related to current affairs. This trend is likely to continue in the civil services main examination as well.

“Many first-timers have cleared the prelims. So presentation of answers will be more important,” says Ganesa Subramanian, Director, Ganesh's IAS. Questions pertaining to the celebration of the 150 years of existence of the Comptroller and Auditor General of India, diamond jubilee celebrations of the Election Commission of India, Union Budget, Constituent Assembly and Reserve Bank of India may be of significance, he says.

Current affairs based on newspaper reports from September 2010 to October 2011 are the important areas. The aspirants must be able to think and formulate views based on their subject knowledge based primarily on NCERT material.

Last year, questions on news covered in the period between October 1 and 15 oct took candidates by surprise.

More surprises may be in store of UPSC for them this year. Commission is expected to continue testing the analytical ability of candidates in this main exam . Environment, ecology, biodiversity and climate change may be key segment.

Reading editorials of newspapers has been a helping strategy for Essay paper and for answering questions on polity and social issues.

 Economic Survey and publications such as Yojana,Kurukshetra may be useful. Lok Sabha channel debates may throw light on social issues and helpful of opening the windows of the mind. Weekly group discussions or joint study with other candidates would enrich the understanding of key areas.