Function and Understanding of the Marketing System
Exchange function
With marketing buyers can buy products from producers either by exchanging money with products or exchanging products for products (barter) for their own use or for resale.
Physical Distribution Function
Physical distribution of a product is done by transporting and storing products. Products transported from producers approach consumers' needs in many ways through water, land, air, etc. Storage of products prioritizes maintaining product supply so as not to lack when needed.
Intermediary Function
To deliver products from the hands of producers to consumers, it can be done through marketing intermediaries that link exchange activities with physical distribution. Intermediary function activities include risk reduction, financing, information search and product standardization / classification.
Marketing concept
The core concepts of marketing include: needs, wants, demands, production, utilities, values and satisfaction; exchanges, transactions and market relations, marketing and markets. We can distinguish between needs, wants and requests. The need is felt the absence of a state certain basic satisfaction. Desire is a strong desire for satisfaction that is specific to deeper needs. Whereas Demand is the desire for specific products that are supported by the ability and willingness to buy it.
Types of Marketing Concepts
The marketing concept says that the key to achieving organizational goals consists of determining the needs and desires of the target market and providing the expected satisfaction more effectively and efficiently than competitors.
In marketing there are six concepts that are the basis of the implementation of an organization's marketing activities, namely: the concept of production, product concepts, sales concepts, marketing concepts, social marketing concepts, and global marketing concepts.
Production concept
The concept of production believes that consumers will like products that are available everywhere and the price is cheap. This concept is oriented towards production by exerting all efforts to achieve high product efficiency and broad distribution. Here the task of management is to produce as many goods as possible, because consumers are considered to be receiving products that are widely available with their purchasing power.
Product concept
The product concept says that consumers will like products that offer the best quality, performance and characteristics. The task of management here is to make quality products, because consumers are considered to like high-quality products in appearance with the best features.
Sales concept
The concept of sales holds that consumers, simply left, organizations must carry out aggressive sales and promotion efforts.
Marketing concept
The marketing concept says that the purpose of achieving organizational goals consists in determining the needs and desires of the target market and providing expected satisfaction more effectively and efficiently than competitors.
The concept of social marketing
The concept of social marketing argues that the task of an organization is to determine the needs, desires and interests of the target market and to provide the expected satisfaction in a more effective and efficient manner than competitors, while preserving or improving the welfare of consumers and society.
The Concept of Global Marketing
In this global marketing concept, executive managers try to understand all the environmental factors that influence marketing through sound strategic management. the ultimate goal is to try to fulfill the wishes of all parties involved in the company.
Understanding of the Marketing System
The system is a group of items or parts that are interconnected and interrelated permanently in forming an integrated whole. So it can be interpreted as a marketing system is a collection of institutions that do the task of marketing goods, services, ideas, people, and environmental factors that mutually influence and shape and influence the company's relationship with its market.
In marketing a group of items that are interconnected and interrelated it includes:
Combined organizations that carry out marketing work.
Products, services, ideas or people being marketed.
Target market.
Intermediaries (retailers, wholesalers, transport agents, financial institutions).
Environmental constraints (environmental constraints).
The simplest marketing system consists of two interrelated elements, namely marketing organization and its target market. The elements in a marketing system are similar to the elements that exist in a stereo radio system. Work separately, but when met appropriately.
Types of Marketing Systems
Marketing system with vertical channels
In this system producers, wholesalers, and retailers act in a cohesive manner.
Purpose :
Control channel behavior
Prevent disputes between channel members
Marketing system with horizontal channels
In this system, there is a collaboration between two or more companies that join to take advantage of marketing opportunities that arise.
Multiple channel marketing system
In this system, several styles of distribution with the arrangement of distribution and management functions are combined, then from the back is centrally led.