UNT II HOSPITALITY MARKETING (MARKET AND MARKETING & Key Differences) I

 Market and Marketing

 In the business world, you have heard about the terms market and marketing, end number of times. but have you ever wondered, as, they are same or different? Market refers to a place where buyer and sellers can come in contact with each other either directly or indirectly, so as to trade goods and services for value. Its main function is to determine the price of the commodity, with the help of demand and supply factors.

 The term marketing is derived from the term market and implies a process that involves some activities which creates value for customers, clients and society as a whole. It encompasses the promotion of business or its products/services so as to increase sales and thus the profit.

Definition of Market

The term market is defined as a place where the parties meet and exchange their goods, services and information for consideration. The purchase and sale of commodities between parties are known as the transaction. The two parties engaged in an exchange are buyer and seller. The transaction can proceed, either directly or through intermediaries like agents or institutions.

There are numerous buyers and sellers in a market; that plays a significant role in fixing prices of goods and services. The buyers decide the demand, whereas sellers determine the supply. It is a set up where trade is easily concluded, and resources are allocated, among different members of the society.

Markets at present, are not confined to a physical location only, rather they are extended virtually also i.e. media market, internet market (e-commerce) are a good example of that. Market are bifurcated as local, national or global, that can be for a short period or long period. It can also be divided as a wholesale market, retail market, financial market and so on.

Definition of Marketing

Marketing is all about analyzing, identifying and satisfying consumer needs. It refers to a set of activities in which the company is engaged in researching, ascertaining, creating, communicating and supplying a product that creates a utility to the customers. The objective of marketing is to build and maintain a strong relationship with the customers so that the whole organization will reap benefits. It creates a link between company and customer.

Marketing activities are divided into four elements, i.e. product, price, place and promotion. It is a societal activity through which individual and communities get what they demand, by creating, offering and exchanging, provisions and livestock of value.

Key Differences Between Market and Marketing

The important points of differences between market and marketing are indicated below:

The market is defined as a physical or virtual set up where the buyers and seller need to proceed exchange of goods and services. Marketing is a set of activities that identifies, creates, communicates and supplies consumer needs.

1. A market is a place, i.e. physical or non-physical. On the other hand, marketing is an act (abstract) of creating a utility of the product.
2. The market is a process which sets the price of the product with demand and supply forces. Conversely, Marketing is a process which analyses, creates, informs and delivers value to the customers.
3. The concept of marketing is wider than the concept of a market.
4. The market varies by product, place and other factors. As opposed to marketing, the philosophy can be consistently applied, irrespective of product, place and any other factor.
5. Market facilitates trade between the parties. Unlike marketing, that creates a link between the customer and company, to provide the right product at a right time at right place.