Marketing is the process of satisfying the needs of a consumer. It starts with the identification of needs and wants of a market and continues till the needs and wants are satisfied.
Market – A market is an actual or nominal place where buyers and seller meet to trade goods and services.
Marketers – A marketer is a person seeking resources from someone else and is willing to offer it to someone else in lien of some value in exchange. – Phillip Kotler
Marketing – It is a total system of interacting business activities designed to plan, price, promote and distribute, want satisfying goods and services to present and potential customers. – W J Stanton
According to AMA – Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create an exchange that satisfies individual and organizational objectives.
Demarketing – It refers to marketing activities which deal with discouraging customers or a certain section of customers to purchase a particular product or like a particular brand. It consists of all efforts that are made to reduce the demand for a product. Demarketing may be carried out on a temporary or permanent basis.
What is marketed?
Goods – Tangible Products
Services – Intangible Products
Classification of Markets
Nature of Transactions
Spot or Cash Market
Future or Forward market
Volume of Exchange
Nature of Goods
Position of Sellers
Articles of trade
Objectives of Marketing
To satisfy the needs and wants of the customers
To identify what is demanded in the market
To plan and develop goods and services according to customer demand
To spread awareness and disseminate information about a product or service
To increase sales and profits of an organization
To enhance the brand and goodwill of the organization
To organize, direct and control all marketing activities
To establish a reporting and feedback mechanism to develop new products and making informed decisions
Nature of Marketing
Economic function – It involves mobilization of economic resources for production and distribution of ideas, goods and services
Creative function – It involves innovation and implementation of ideas, frameworks and processes to satisfy customers.
Integrated function – It involves communication and integration with various business activities to make effective marketing strategies.
Managerial functional – It involves analysing market opportunities, planning marketing strategies, implementing marketing plans and setting up a control mechanism to achieve organizational objectives.
Dynamic process – Marketing plans are reviewed from time to time with the changes in the marketing environment.
Social process – Marketing aims at customer satisfaction and welfare of the society.
Goal oriented activity – It aims at profit making and customer satisfaction to meet business objectives
Universally applicable – It is applicable to all types of organizations from business for profit motive and to non-profit organizations.
Customer oriented – Marketing starts with identification of customer needs and wants and ends with satisfaction of those needs and wants
System – It is a system of subsystems namely input (4P`s) – process (motivation) – output (increased sales and revenue)
Process – It involves a series of inter-related functions.
Marketing is a science as well as art – As a science, it makes use of frameworks and methods for segmentation and targeting. As an art, it requires creativity to create demand for a product and understand consumer behaviour.
Marketing and Utility
Marketing adds value to products and services by providing the following utilities:
Place Utility – It adds place utility to products by transferring the products from the place of production to the place of consumption i.e. making products available at the right place.
Possession Utility – It adds possession utility to products by enabling transfer of ownership of a product from the producer to wholesaler to retailer to the final consumer.
Time Utility – It adds time utility to products by ensuring that products are available to customers at the time of need or when they want to buy it.
Form utility – It adds form utility to products by producing and supplying finished products to the consumer in the form they can use and benefit from.
Scope of Marketing
The scope of marketing lies in the following:
Study of consumer needs and wants
Study of consumer behaviour
Product packaging and branding
Developing pricing policies
Promotion and distribution of goods and services
After sale services
Enhancing corporate identity and goodwill
Transport and handling
Storage and Warehousing
Processing and packaging
Financing and risk-bearing
Grading and standardization
Demand and supply creation
Identifying market opportunities
Promoting products and services
Strategic Marketing Planning
Importance of Marketing
To the society
Encourages better standard of living
Helps in creation of utility – form, place, time, possession
Aids in consumer protection by keeping customers informed
Provides consumer choice (variety of products)
Introduction of new products and services
To the firm
Helps in product planning and new product development
Helps in Increasing profit (sales & revenue)
Acts as a link between business and society
Enhances goodwill and brand value
Reducing cost of sales and production
Difference between Marketing and Selling MARKETINGSELLINGEmphasis is on customer needs & wantsEmphasis is on the productMarketer identifies the needs and wants of the customer and then delivers a product to satisfy customerOrganization makes the product and then figures out how to sell itProfit oriented through customer satisfactionProfit oriented through sales volumeLong term planningShort term planningFocus is on needs of consumersFocus is on needs of sellerCreates form time, possession and place utilityOnly possession utility (transfer of ownership)It is a system of integrated and inter-related functionsIt is a part of the marketing process
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