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.
In the article presented below, you may find all the substantial differences between market and marketing, take a read.
Content: Market Vs Marketing
|Basis for Comparison||Market||Marketing|
|Meaning||Market is defined as an arrangement whereby buyers and sellers meet each other to conclude the transaction.||Marketing is a function that identifies human and social needs and satisfies them.|
|What is it?||A set up i.e. a place.||A set of processes, i.e. a means of creating utility.|
|Process||Market is a process, that fixes the price of commodities through demand and supply forces.||Marketing is a process that analyses, creates, informs and delivers value to the customer.|
|Concept||Market is a narrow concept.||Marketing is a wide concept that includes diverse activities.|
|Consistency||Market varies by products, place, factors and so on.||Marketing philosophy remains same, no matter where it is applied.|
|Facilitates||Trade between parties.||Link between customer and company.|
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 analysing, 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 organisation 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.
- 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.
- 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.
- The concept of marketing is wider than the concept of a market.
- 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.
- 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.
The term market is a noun which refers to a place, while the verbal form of market is the marketing that represents an action. Since last few decades, with the advancement of technology, these two concepts has gained extreme importance in the business world.