Marketing: Core Concepts, Scope and as a Discipline

Introduction: Market driven companies invest in Marketing and display customer

concern throughout the business. They know how their products will be evaluated against
competition. Marketing for these companies is regarded for long term consequences.
Such companies invest in customers.

Exchange: It is an act in which you exchange something in return of something. This ia

evident when people moved from villages to towns. This process shall continue until the
societies exist. Some conditions for exchange are:
 Willingness and ability to exchange.
 Possession of something in value for other.
 Freedom of communication.
 Freedom to accept or reject the offer.

Market: It comprises a group of buyers and sellers who can interact using some other
means than usual like telephone, internet. Buyers and sellers make a transaction with
customer satisfaction as a concern.

Different Types of Markets: A market can be distinguished in-between depending upon

following criteria:

Markets on basis of Purchasing and Consumption:

Consumer Market and Industrial Product: Consumer products are bought for personal
use but Industrial products are sold further by the Business buyer to the end customer.

Markets on basis of products in trade:

Basic Goods Market: These are goods such as steel, cement, chemicals very good for the
infrastructural development of the country.

Intermediary goods Market: These are goods like machine tools, equipment,
components, tyres, gears, engine upholstery i.e supplies that comprise the intermediary
market.
Consumer Goods Market: It comprises of following:

Convenience Product: These are convenience products like soft drinks, chocolates,
deodorants, shampoo, and hair-oil i.e. for our own personal use. FMCG (Fast Moving
Consumer Goods) is the other name.

Shopping product: These are the products which are a little more expensive like
televisions, refrigerators.

Specialty Product: Products like Designer Watches, Rolls- Royce Cars, and Restaurant
serving various cuisines. Brand name is the most important criteria for specialty product.

Unsought Product: Products relatively new in the market or the product which the
customers do not actively seek from the market.

Markets on Basis of Magnitude of Selling: They contain Wholesaler; who buy in very
large quantities and sell them to Retailers and Retail Markets are found large in numbers.

Markets on basis of Geographical Coverage: They contain local market, regional

market, national market or international market.

Products and Services

Product: It is the most important part of the Marketing Mix. It satisfies the needs of a
customer. It contains all the functional requirements sought by a customer.

Service: This is what an individual form through experience which is primarily

intangible. It may come with a part of service associated with it like Product- Service Mix
i.e all the products which come along with a service like a car comes with engine service
free for first six months of a new car or a TV with service guarantee for a year.

The other attributes are:

 Service is intangible.
 It may come as a part of Product- Service Mix (these services may come from
supplier).

Needs: There are basic human needs like hunger, thirst, shelter which are called as needs.
Once these desires are fulfilled these needs become wants or are called so.

Demand: It exist in following conditions:

 There is a desire for the product
 Willingness to buy the product
 Ability to buy the product.
 A demand should be planned and assessed properly.
Transaction: It is when an exchange takes place generally for goods or services between
buyer and seller engaging customer satisfaction.

Consumer v/s Customer

Customer in industrial buyer; consumer buys for personal use.
Customer is a retailer or wholesaler (intermediaries); Consumer is end customer in all
the cases.
Customer may be a consumer but never the case as vice versa.

Nature and Scope of Marketing: It is a consideration for generating profits.

Maintaining a good understanding with all the stakeholders. Providing desired value to
customers (The Essence of Marketing). Satisfy the needs for a long term and building
relationships. The main aim is customer service.

Marketing as a Discipline: Marketing is a way of doing business. The main aim is to

serve the real needs of the customer. Every employee of the marketing department is a
marketer. The main criteria is to increase efficiency, effectiveness, revenue, profits.

It also says there is no falsification in the product and its associated service and all the
companies are well organized, there is quality everywhere, and decisions are made
properly with a great effort.