International Information Technology University

Foundations of Marketing: Concepts, Functions, and

Department: Cybersecurity
Completed: Nurutdinova Dalila
ID: 31148
Group: SIS-2128

Almaty 2024
1. Meaning and definition.
Marketing is a multifaceted discipline that encompasses the activities and
processes involved in creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large. At its
core, marketing seeks to identify and satisfy customer needs, thereby facilitating
the flow of goods and services from producers to consumers.
According to the American Marketing Association (AMA), marketing is defined as
"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." This definition underscores the importance of value
creation and emphasizes the collaborative nature of marketing.
2. Marketing Concepts
Concept is a philosophy, attitude, a line of thinking, an idea or notion to relating
any aspects of divine and human creations. The philosophy of an organization in
the dynamic creation of marketing is referred to as a marketing concept. Thus,
marketing concept is a way of life in which the resources of an organization are
mobilized to create, stimulate and satisfy the consumer at a profit.
2.1 Traditional Concepts
According to this concept, marketing consists of those activities which are
concerned with the transfer of ownership of goods from producers to consumers.
This approach places significant emphasis on physical distribution and marketing
channels, viewing marketing primarily as the process of making products available
to end consumers from their point of origin. The primary focus here is on the sale
of goods and services, often at the expense of consumer satisfaction. This
perspective assumes that effective selling techniques and robust distribution
networks are sufficient for driving sales, thereby overlooking the importance of
understanding consumer needs and preferences.
2.2 Modern Concepts
In contrast, the modern concept of marketing emphasizes the creation of
consumers and the significance of understanding their needs and desires. As
modern thinker Peter Drucker articulates, marketing is fundamental to the entire
organization and cannot be viewed as a separate function. Instead, it encompasses
the entire business from the customer’s perspective, asserting that business success
is determined not by the producer’s actions but by the satisfaction and engagement
of the customer. This approach places customers at the center of marketing
strategies, recognizing them as the driving force behind business success.
3. Functions of Marketing
Marketing plays a vital role in the success of any business by facilitating the
connection between the organization and its customers. The key functions of
marketing can be summarized as follows:
 3.1 Market Research
Market research is essential for understanding customer needs, preferences, and
behaviors, as well as identifying market trends and competitive dynamics. By
gathering and analyzing data through surveys, focus groups, and other methods,
businesses can gain insights into consumer demands, allowing them to make
informed decisions and tailor their offerings accordingly.
3.2 Pricing
Setting competitive prices is crucial for attracting and retaining customers. Pricing
strategies must reflect the product's perceived value, production costs, and market
demand while also considering competitor pricing. Effective pricing can influence
consumer behavior, maximize profit margins, and enhance market positioning.
3.3 Promotion
Promotion involves communicating the value of a product to the target audience
through various channels, including advertising, public relations, social media, and
sales promotions. This function aims to raise awareness, generate interest, and
encourage purchasing decisions. A well-executed promotion strategy effectively
highlights the unique selling propositions and benefits of the product.
3.4 Distribution
Distribution focuses on ensuring that products are available to consumers at the
right time and place. This includes selecting appropriate distribution channels, such
as physical stores, online platforms, or wholesalers, and managing logistics to
facilitate timely delivery. Efficient distribution strategies enhance product
accessibility and improve customer satisfaction.
3.5 Branding
Branding is a critical function of marketing that involves creating a unique identity
for a product or service in the minds of consumers. This includes developing a
brand name, logo, and messaging that resonate with the target audience. Effective
branding fosters recognition, builds customer loyalty, and differentiates a product
from competitors. A strong brand can evoke emotional connections and influence
purchasing decisions, making it an essential component of a successful marketing
strategy.
3.6 Customer Relationship Management (CRM)
Building and maintaining long-term relationships with customers is a crucial
function of marketing. CRM involves understanding customer needs and
preferences, fostering engagement, and providing excellent customer service. By
nurturing these relationships, businesses can enhance customer loyalty, increase
repeat purchases, and benefit from positive word-of-mouth marketing.
4. Marketing Mix: The 7 Ps of Marketing
The marketing mix is a crucial concept that outlines the key elements necessary for
successfully marketing a product or service. Traditionally, the marketing mix
consisted of four components, known as the 4 Ps: Product, Price, Place, and
Promotion. However, to address the complexities of modern marketing, three
additional elements were added, resulting in the 7 Ps: Product, Price, Place,
Promotion, People, Process, and Physical Evidence.
PRODUCT
Refers to the goods or services offered to meet consumer needs. Key aspects
include features, quality, branding, and packaging, all of which are vital for
attracting customers. Continuous innovation is essential for maintaining relevance
in a competitive market.
PRICE
Involves setting a price that reflects perceived value while remaining competitive.
Pricing strategies should consider production costs, market demand, and
competitor pricing, as well as discounts and payment terms.
PLACE
Encompasses the distribution channels that make the product available, whether in
physical stores, online, or through intermediaries. Effective distribution ensures
timely and convenient access for consumers.
PROMOTION
Involves activities that communicate the product's value to potential customers,
including advertising, public relations, social media, and sales promotions. A
strong promotion strategy builds brand awareness and encourages purchases.
PEOPLE
Highlights the significance of all individuals involved in marketing and delivering
the product. The skills and attitudes of employees impact customer satisfaction,
making training and a customer-centric culture crucial.
PROCESS
Refers to the systems and procedures that facilitate product delivery. Streamlining
processes enhances efficiency, minimizes friction, and improves the customer
experience.
PHYSICAL EVIDENCE
Pertains to tangible elements that support the service or product, shaping customer
perceptions. This includes the physical environment, packaging, and branding
materials, all of which enhance confidence and create positive impressions.
5. Emerging Trends in Marketing
The marketing landscape is continually evolving, influenced by technological
advancements, changing consumer expectations, and a growing focus on
sustainability.
 5.1 Short-Form Video Content
Short-form videos, such as those on platforms like TikTok, Instagram Reels, and
YouTube Shorts, are driving social media strategies. These quick, engaging videos
capture attention, showcase products or messages efficiently, and are easily
shareable. Their popularity has made them crucial for brands aiming to connect
with younger, mobile-first audiences and stay relevant in the fast-paced digital
world.
5.2 Personalized Marketing
Personalization has become essential as consumers expect marketing to be tailored
to their specific preferences, behaviors, and needs. Using data analytics, businesses
can create targeted campaigns, delivering personalized content, product
recommendations, and offers. This improves customer experience, deepens
engagement, and fosters brand loyalty.
5.3 AI Boosts Marketing Efficiency
Artificial intelligence (AI) is revolutionizing marketing by improving efficiency
and effectiveness. AI-driven tools enable businesses to automate tasks, such as
content generation, customer segmentation, and real-time personalized messaging.
AI also enhances decision-making through predictive analytics, helping marketers
anticipate consumer behaviors and trends. This leads to smarter campaigns, better
customer targeting, and optimized marketing efforts.
5.4 7. Influencer marketing
This marketing trend establishes an authentic connection with audiences that
traditional advertising struggles to achieve. Influencers have a strong rapport with
their followers, making their promotional content more engaging, relatable, and
trustworthy. The intersection of influencer marketing, video content, and social
commerce creates a potent combination for brands. As consumers shop directly
from social media, influencers create engaging video content showcasing products,
encouraging followers to click through and make a purchase, amplifying the
impact of influencer marketing on company strategies.