Do You Know the Difference between Market and Marketing?
A market is where all specific marketing activities occur. It also represents buyers and sellers who gather and interact. And they exchange goods and services based on demand and supply. Sellers meet buyers in the market through their marketing activities.
The difference between market and marketing is huge.
A market is a concept or area affected by various regional or industry-specific factors. In contrast, marketing refers to a function necessary for any business to thrive in the market.
Got it?
We will unravel how market and marketing differ today, first in a quick outline and then by elaborating on key areas. Read on!
Market vs Marketing | Parameters
| Parameters | Market | Marketing |
|---|---|---|
| Definition | The interaction of buyers and sellers | The activities involved in promoting and selling products or services |
| Concept | Broader concept encompassing economic activities and exchanges between buyers and sellers | Specific function within the market focused on promotion, sales, and customer satisfaction |
| Scope | Includes the entire marketplace and all transactions within it | Concentrates on the strategic and tactical activities aimed at reaching and engaging target customers |
| Objective | Balancing demand and supply to facilitate exchange | Creating awareness, generating interest, and/or driving sales of products or services |
| Elements | Buyers, sellers, demand, supply, pricing, competition, and market dynamics | Advertising, branding, market research, product development, pricing, distribution, and customer relationship management |
| Role | The market acts as the ecosystem where economic activities take place | Marketing acts as a facilitator and driver of business growth within the market |
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What is a Market?
The term market refers to physical and conceptual aspects of economic transactions.
Traditionally, it means a place of transaction, derived from the Latin word ‘Marcatus’. But it is not just an area. Also, the market is a process that lets buyers and sellers interact to exchange commodities.
It can also be defined in various ways depending on the context.
Contextual Concepts of Market
Geographic Definition of Market
It refers to an area which can be local, regional, national, or global. The boundaries of the market are defined by where the buyers and sellers are geographically.
Product- or Service-Based Definition of Market
This refers to a particular category of a product or service. It can be clothing, automobile, food and beverages, or similar.
Segments in Market
Consumer preferences, purchase behaviour, lifestyle, etc., are different market segments. These customer segments create opportunities for different business to target their marketing efforts accordingly.
Commodity Concept of Market
The interaction between buyers and sellers for a commodity is a market. Instead of an area, it is the commodity that drives this interaction.
Types of Market
Physical Market
In a physical market, buyers can meet the sellers at a geographical location and purchase products. It can be a shopping mall, a wholesale market, a retail market, etc.
Virtual Market
It refers to shopping online instead of going to a physical store. Buying from Amazon or Zomato is an example of it.
Factors that Influence the Market
The market is always dynamic due to several reasons.
Economic
Inflation, unemployment, GDP growth, and interest rates can substantially impact the market.
Think of consumer purchasing power, business investments, and all economic activity. These collectively shift demand and supply within the market.
Competition
The market competition level affects pricing, product differentiation, and market share.
Technological
The technological landscape disrupts the market every time. This leads to innovation and creates new markets.
Governmental
This refers to trade regulations, taxation, laws on consumer protection, and others.
Further Reads
What is Marketing?
The term marketing refers to the promotion of products or services and delivering value to consumers.
The scope of marketing goes beyond advertising. It entails various processes, including marketing research, target market identification, product development, branding, distribution, pricing, and more.
Related Reading
Objectives of Marketing
A business can have multiple marketing objectives depending on how it stands in the market. Some common ones are mentioned below.
Improving Brand Awareness
Marketing, when done right, can establish and strengthen brand awareness. Brand reach can be improved by informing target customers of a brand’s existence, values, and offerings.
Customer Loyalty and Retention
By delivering exceptional customer experiences, providing value-added services, and maintaining open communication, businesses retain existing customers and encourage repeat purchases.
Maintaining a long-term relationship with customers is one of the most important marketing objectives today. According to PR Newswire, ‘81% of companies view customer experience as a competitive differentiator.’
Related Reading
Elements of a Marketing Strategy
The common elements of a marketing strategy for any industry go like this.
- Market Analysis – To understand the target market – demographics, and trends.
- Competitive Analysis – Identify the key competitors and create a brand’s USP.
- Setting Marketing Objectives – What a business should achieve first and how.
- Marketing Mix – Working around how the product will be commercialised.
- Marketing Communication – Determine the most effective channels to reach and engage the target audience. It can be advertising, public relations, digital marketing, etc.
Read about Different Types of Digital Marketing Strategies
Parting Thoughts
Both concepts have a deep correlation, but they differ. Hope you are now more sure on how to distinguish between market and marketing.
Further Reads
FAQs
What is market in marketing?
A market in marketing refers to the consumers who have the power and right to purchase a product or service
How do marketing objectives contribute to business success?
Marketing objectives serve as guiding principles for businesses. They direct their efforts towards achieving specific goals such as improving brand awareness, enhancing customer loyalty, and increasing market share.
Why is market analysis crucial for developing a marketing strategy?
Market analysis provides businesses with valuable insights into their target audience, including demographics, preferences, and trends. By understanding the market landscape, competitors, and industry dynamics, businesses can identify opportunities, mitigate risks, and develop strategies that resonate with their target customers.
Aquib is a seasoned wordsmith, having penned countless blogs for Indian and international brands. These days, he's all about digital marketing and core management subjects - not to mention his unwavering commitment ... Read Full Bio
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