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CONTENTSUNIT – I
Lesson 1.1 Introduction to marketingLesson 1.2 Marketing conceptsLesson 1.3 Marketing processLesson 1.4 Marketing environmentLesson 1.5 Buyer BehaviourLesson 1.6 Market segmentation, targeting and positioningLesson 1.7 Introduction to marketing mixAnswer keyGlossary of termsReferences
 
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Unit – ILesson 1.1Introduction to MarketingObjectives
In this lesson, we will introduce you to the business function of marketing. After youwork out this lesson, you should be able to:
 
Define marketing and the utility (value) it creates for the customer
 
Trace the origin of marketing and explain how it has evolved
 
Describe the elements of a marketing strategy
 
Understand the scope of marketingIn this lesson, we will discuss the following:
 
What is marketing?
 
Evolution of marketing
 
Marketing framework 
 
Extending the traditional boundaries of marketing
 
Functions of marketing
Introduction
Production and marketing of goods and services are the essence of economic life in anysociety. All organizations perform these two basic functions to satisfy their commitmentsto their stakeholders – the owners, the customers and the society, at large. They create abenefit that economists call utility which is the want-satisfying power of a good orservice. There are four basic kinds of utility – form, time, place and ownership utility.Form utility is created when the firm converts raw materials and component inputs intofinished goods and services. Although marketing provides important inputs that specifyconsumer preference, the organization’s production function is responsible for the actualcreation of form utility. Marketing function creates time, place and ownership utilities.Time and place utility occur when consumers find goods and services available when andwhere they want to purchase them. Online retailers with 24*7 format emphasize timeutility. Vending machines focus on providing place utility for people buying snacks andsoft drinks. The transfer of title to goods or services at the time of purchase createsownership utility.
 
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Type Description Examples Responsiblefunction
Form Conversion of rawmaterials andcomponents into finishedgoods and servicesPizza made fromseveral ingredientsProductionTime Availability of goods andservices when consumerswant themDial-a-pizza;delivery guaranteedin 30 min.MarketingPlace Availability of goods andservices whereconsumers want themDelivery at yourdoorstepMarketingOwnership(possession)Ability to transfer title togoods or services frommarketer to buyerPizza sales (inexchange for rupeesor credit cardpayment)MarketingTo survive, all organizations must create utility. Designing and marketing want-satisfying goods, services and ideas is the foundation for the creation of utility.Management guru, Peter F.Drucker emphasized the importance of marketing in hisclassic book,
The Practice of Management 
as:‘If we want to know what a business is, we have start with its purpose.And its purpose must lie outside the business itself. In fact, it must lie insociety since a business enterprise is an organ of society. There is onevalid definition of business purpose: to create a customer’.
How does an organization create a customer? Guiltinan and Paul explain it thisway:
Essentially, ‘creating’ a customer means identifying needs in themarketplace, finding out which needs the organization can profitably serveand developing an offering to convert potential buyers into customers.Marketing managers are responsible for most of the activities necessary tocreate the customers the organization wants, These activities include:
 
Identifying customer needs
 
Designing goods and services that meet those needs
 
Communication information about those goods and services toprospective buyers
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