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1. Marketing as a business philosophy

At the core of the term «marketing» is the word «market», which means «the market.» So, in the marketing one often understands the philosophy of governance, economic conditions in the market, proclaiming the orientation of the production to meet the needs of specific customers.

Marketing under its widest sense is a social and managerial process by which individuals and groups of people get what they need by creating products and exchanging them. When a person is unable to meet any need, he substitutes them or reduce the level of his requests.

EVOLUTION OF MARKETING

Phase Period Characteristics

I. beginning the twentieth century – 40th

Marketing had a sales character. The motto: «Everything produced must be sold». Sales methods of marketing and advertising were applied

II. 50 years – first half 70s

Marketing has been focused on the study of the market and customer demands.

The principle is: «It is advantageous to produce the products that will be in demand than to produce something that struggles to sell.»

III. second half 70’s – till present

Integrated market system covers the entire cycle of development, production and sale of goods, including market research, implementation of merchandise, pricing, communication and policy, strategic marketing governance and other marketing techniques

Thus, the requirements are translated into specific desires, which in view of monetary opportunities are transformed into market demand on the specific products. It appears the exchange between producers and consumers made out in the form of a particular transaction. It follows that the direct marketing economy to meet the constantly changing needs of the many millions of consumers.

In other words, the marketing is a philosophy of management, direction of its implementation, when the resolution of consumer problems leads to the success of the organization and brings benefit to the society.

At the level of individual economic entities marketing is defined as a complete system for planning the variety and quantity of produced products, pricing, distribution of products between the chosen markets and to promote their sales in order to achieve the diversity of benefits, led to the satisfaction of the interests of both producers and consumers. This definition has a sufficiently broad sense, as it covers the activities of non-profit organizations. Thus, marketing is the activity of the organization for the benefit of its customers.

In a more narrow sense (entrepreneurial) the marketing can be classified as a management system of production and sales management organization aimed at obtaining an acceptable value profit through accounting and active influence on market conditions.

From the above it follows that a variety of marketing applications causes a variety of its definitions.

It seems that as a fairly general definition of marketing can be offered. Marketing is a form of human activity to meet the demand for the material and non-material, social, value through mutually beneficial exchange.

Thus, marketing is also a system of thought and action system.

2. Basic concepts and scope of marketing

The concept of needs is at the core of theories of motivation (Freud, Maslow, etc.), determining the behavior of consumers in the market. The main task of marketing is to find a need and meet it.

Desire is the need to take concrete shape in accordance with the level of culture and personality of the individual. Sometimes it is called concretized need. For example, the total demand for food is transformed into a more private demand in the fruit, which, in turn, concretized results in the need, the desire to buy apples.

Demand is a desire, a specific need, backed by purchasing power. For given resource capabilities people satisfy their needs and desires through the purchase of goods that bring them the greatest benefit and satisfaction.

Product is all that can be offered on the market for the acquisition, use or consumption in order to meet specific needs.

Product is all that can satisfy any needs (physical goods, services, people, organizations, activities, ideas). In the literature on marketing the English term «product» is often translated as «goods». It is understood that the product manufactured by the manufacturer, with translational division by becoming a commodity market.

Exchange is the act of obtaining a desired product from someone by offering him something in return. Exchange is just one of the many ways means of which people get the desired product. Another way is hunting, gardening. This includes theft and begging.

The deal is trading between the two sides, including at least two subjects of interest and agreement on the terms, timing and months, those of its implementation. There are two types of transactions: cash transaction when goods are exchanged for money and barter transaction. The deal involves the performance of the following conditions: the presence of at least two products representing the interest for the mutual exchange, the agreed conditions, time and place of its commission.

The market in the marketing sense is a collection of existing or potential sellers and buyers of any products; it’s a place where deals are made. It is on the market the manufactured product and labor on it expended prove their social importance, acquire recognition among consumers. In modern society, the market does not necessarily have a physical location. To demonstrate the product, its advertising and getting the orders modern means of communication, without physical contact with customers are widely used. (In marketing, the market is the set of consumers of a particular product, they say, the market of metal, grain, etc. On the basis of this principle market segmentation is often carried).