Final answer:
Marketing is the process of identifying and satisfying customer needs and is a central component of business operations. It includes understanding concepts like market, supply, demand, and other economic factors. Advances in technology and globalization have expanded the traditional scope of market definitions.
Step-by-step explanation:
The definition of marketing has evolved significantly over time. Marketing is the business process of identifying, anticipating, and satisfying customers' needs and wants. Because marketing is used to attract customers, it is one of the primary components of business management and commerce. Marketers can direct product to other businesses (B2B marketing) or directly to consumers (B2C marketing).
- Market - An arrangement that brings sellers and buyers together for economic transactions.
- Supply - The total amount of goods and services that are offered for sale at various prices.
- Demand - The total amount of goods and services that consumers are willing to buy at various prices.
- Equilibrium Price - The price at which the quantity supplied in the market matches the quantity demanded.
- Absolute Advantage - When a producer can create goods and services more cost-effectively than other producers.
- Comparative Advantage - When a producer can create goods and services at a lower opportunity cost than other producers.
- Specialization - The development of skills and knowledge in a particular area of expertise.
- Pure Competition - A market structure with many producers supplying identical products and minimal barriers to entry.
Additionally, the definition of a market has expanded due to advancements in communication technologies and globalization. With the internet, consumers can now engage in economic transactions globally, altering the traditional boundaries of local markets and increasing competition. The rise of business-to-business platforms has also influenced how markets are defined by facilitating global transactions between businesses.