The main purpose of this paper is to answer on the question from marketing sphere. If to be exact in the question formulation we can say that the main question of this paper is include in the title of the paper: Does marketing create or satisfy needs? This question has dual nature and it is necessary to discuss it with more details. There can be different answers on this question, and they could be different in their depth, for example, but I think that two part of this question are right and there is no necessity to choose one right variation.
Discussing this question, we see that debate about this topic has real base under it. According to Kasper and Helsdingen (1999) it is understandable that “on one hand you have those who primarily see marketing as merely the promoting, and in most cases pushing, a certain product, concept, or value onto an unwilling, or at least unprepared, consumer. On the other hand you have those who describe marketing as merely the process through which value is created for a consumer by various means of communication.” In my opinion, marketing does both, because it satisfies and creates customers’ needs at the same time. Marketing always has an impact on our interests. The essence of the marketing system is revealed through a set of socio-economic categories.
Thinking about the essence of the concept marketing, we see that marketing is a system of organizing and managing supply chain and commercial activities of enterprises, businesses in free trade conditions. Therefore, in system-organized response of the business of any economic entity, it played an important role, because participates in the implementation of their goals and objectives directly objectified product of a commodity, which promotes the market. Marketing – is an integrated higher-level system, focused on creating conditions for the allocation of such factors.
The term “marketing” is derived from the English word “market”, and mean activity in the market. However, marketing as a system of economic activity -is a broader concept. The main thing in marketing – is dual and complementary approach. On the one hand, it is thorough and comprehensive review of market demand, tastes and needs, focus on their production, targeting products. On the other hand – an active influence on the market and the existing demand, the formation of the needs and buying preferences. In industrialized countries, consumer preferences are the main driving force of creative labor. Even the work of the highest level for the production of a desired public goods of the highest quality and lowest cost of production may ultimately unproductive just because a product has not found its buyer, did not get to the final consumption. It can occur for the reason that a potential customer did not know about it the right product or do not know where to buy it.
American Marketing Association (2007) demonstrated scientific definition of marketing in the next way: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
It will be good to link the manufacturer and consumer, to help them find each other and thereby make the work of the first truly productive – this, in fact, is the main goal of any marketing activity.
Therefore, marketing is a form of human activity, aimed at meeting the needs and wants through the exchange. This definition is based on the following basic concepts: needs, demands, requests, wants, commodity exchanges, trade and market.
The needs of people are conformable and complex: there are physiological needs for food, clothing, security, social needs in spiritual intimacy, influence, affection, and personal needs in knowledge and self-expression. They form the efforts of advertising agencies, and emanate from human nature. If the need is not satisfied, then the person feels deprived and unhappy. Moreover, the more need means the more person experiences with the inability to satisfy it. Dissatisfied with it person will be able to do one of two things: either will find an object that can satisfy the need, or try to suppress own desire (need silence).
Need – it is a necessity to adopt a specific form in accordance with the cultural level and personality of the individual. Needs are expressed in objects that can satisfy the needs in a way that is inherent in cultural, and economic development level of the society. As the company grows and needs of its members.
People are faced with increasing numbers of objects, provoking their curiosity, interest and desire. Shenoy (2010) stated that manufacturers, for their part, are taking concerted action to stimulate the desire to possess goods. They are trying to form a connection between what they produce, and the needs of people. This product is promoted as means of satisfying one or a number of specific needs.
Needs of people are almost limitless, but resources for addressing them are limited. A person will choose those products that are delivered to him the greatest satisfaction as part of its financial capabilities. Thus, the question – is the need, backed by purchasing power. But the need – is not a reliable indicator. People are bored things now run, and they are looking for diversity for the sake of variety. According to website www.marketingprofs.com we see that change of choice may be the result of changes in prices or income. Products – this is essentially a set of properties and people stop choosing those products that provide them with obtaining the best set of benefits for their money. So, the car “Volkswagen” embodies the basic means of transport, affordable purchase price, fuel economy and the European move, and “Cadillac” – the high comfort, luxury and prestige. Man selects merchandise, the set of properties that gives him the greatest satisfaction for this price, taking into account their specific needs and resources.
Each type of marketing operates with a certain commodity, which is inherent in the specific characteristics of an economic nature, so good acts are the cause of the system of economic relations, and marketing – is a consequence. Bradley (2003) proved that all goods are able to meet the needs of the buyer, called the product range of choice. The more complete product meets the desires of the consumer, the manufacturer will achieve greater success. He should look for potential customers to ascertain their needs and then create a product as closely as possible to satisfy these needs.
The concept of “goods” is not limited to physical objects. The goods can be called anything that could be of service, i.e. meet the need. In addition to the products and services, this may be the person, place, organization, activities and ideas. According to Kotler, Armstrong, Wong and Saunders (2008) the consumer decides what is entertainment to see on television, where to go on vacation, how to help organizations which support the idea. And if the use of the term “goods” at times it seems unnatural, it can be replaced by others – “satisfactory needs”, “recovery tool” or “offer”. All these words have certain value significance for different people.
Marketing occurs when people decide to satisfy their needs and wants by the exchange. Exchange – is the act of obtaining from anyone object of desire by offering something in return. I want to say in this part of the work that marketing sometimes reflects (it is possible to say satisfies) the needs and wants of customers and in some cases it shapes (or creates) consumer needs and wants.
According to the first statement, Lentini (1993) said that “marketing merely reflects the needs and wants of customers, because we all need to eat, drink and sleep and reproduce, this is all part of who we are as human beings. Therefore at the basic level companies will strive to satisfy these functions and keep doing so by once in a while showing advertisements that tells the public that they are around and can provide the products they need.” For the acknowledgement of the second statement, McCalley 1992 added “marketing shapes consumer needs and wants. After seeing so many television commercials and advertisements both on the Internet and on newspapers I have concluded that some companies construct their ads to create a need in the consumer’s mind even if originally they were not interested in the product. I took some time to research some of the words that advertisements commonly use and I found an interesting mix of words and phrases. The word “free” is the most common denominator I found in the ads, free is used in combinations such as free home trial, free inspection, buy one get one free, free installation, free estimates, free parking, free demonstration and free consultation. The word free is usually a powerful catalyst that springs the consumer into buying that particular product or idea even though he or she might not need it. I think other terms also kind of bait people into buying things they don’t need.”
In marketing a product is interaction characteristics and consumer properties, i.e. ability of goods to fulfill its function – to meet the needs that under different external conditions are a combination of product requirements and compliance with them by the choice of goods, depending on setting goals and priorities of the buyer.
I also want to add that marketing as every system has its direction, methods and tasks of realization, and exactly these above numerated parameters help to create and satisfy needs in many cases. Let us look at them attentively and define main direction of marketing. Marketing’s direction implies a policy of quality and product mix, pricing, marketing, communications. We should mention that methods used in marketing, typically include: accounting, analysis, modeling, forecasting and planning, adjustment.
Marketing system involves the following tasks:
– Comprehensive market research;
– Identification of potential demand and dissatisfied needs;
– Planning of product lines and prices;
– Development of measures to fully meet the existing demand;
– Planning and implementation of marketing;
– Development of measures to improve governance and organization of production.
Solving of these problems is based on the use of the above stated methods. It is necessary to remember that in the case when marketing should be effective, the analysis in marketing also should be comprehensive, objective and critical in the sense that the current practice should be compared with accepted standards and principles of the theory. This should be achieved through systematic market research, supplemented if necessary by special occasional studies on specific issues. This creates an information base for projections, which are the basis for developing programs and strategies. Typically, for the immediate future is a detailed short-term forecast, but for more remote and uncertain future forecast periods should refer to common features.
Thus, based on all above stated information we could come to the conclusion that marketing creates and satisfies needs. In the body of the paper it was analyzed the essence of marketing activity that allows us to understand how and in what way it happens. I think that at the core of marketing, are the needs of people. As it was defined in the paper, needs – are experienced by an individual sense of a lack of something, when person need something. Needs of people are diverse and complex by their nature and it give us a possibility to say that due knowledge of them marketing is able to create and satisfy them at the same time.
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