Marketing

Outlines

 Introduction
 Definitions of the marketing
 Concepts of the marketing
 Importance of the marketing
 Objectives of the marketing
 Characteristics of the marketing
 Components of the marketing
 Functions performed in marketing
 Scope of the marketing
 Approach of the marketing
 Strategic marketing planning process
 References
 Marketing

Introduction

Marketing is an ancient art and has, since the day of Adam and Eve,
been practiced in one form or the other. In the modern world, Marketing
is everywhere; most of the task we do and most of the things we handle
are linked to marketing. Marketing is an activity. Marketing activities and
strategies result in making products available that satisfy customers while
making profits for the companies that offer those products.

A market is any such person, group or organization which has

existing or potential exchange relationship. It starts with customers and
ends with customers. Creation of superior customer value and delivering
high levels of customer satisfaction are at the heart of present day
marketing. Companies today, needs to understand customer needs, study
completion, develop and offer superior value at reasonable price, and
make the product available to customer at convenient place.

Definitions of the marketing

 Marketing refers to the various groups of activities that take place in a

market. These activities are either planned or spontaneous. For example,
production, assembling, distribution and storage could be planned,
consumption is often spontaneous.

 Market is an organizational function and a set of process for creating,

communicating value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.
Normally people understand the term market as a place where goods are

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 bought and sold. But, in the context of marketing, it refers to a group of
buyers for a particular product or service.

 Marketeer: It refers to the person who organizes the various marketing

activities such as market research, product planning, pricing, distribution
etc.

 Seller: It refers to a person or organization who is directly involved in the

process of exchange of goods and services for money.

 Buyer: A buyer is one who is directly involved in the process of purchase

of goods and services.

 Consumer: One who actually uses the product or service.

 Customer: A customer usually refers to the person who takes the buying
decision.

 Virtual Market: With advancement of technology, the buyer and sellers

can, now-a days, interact with each other by using Internet. This is called
virtual market.

Concepts of the marketing

Traditional concept of marketing

According to the traditional concept, marketing means selling goods

and services that have been produced. Thus, all those activities which are
concerned with persuasion and sale of goods and services are called
marketing. This concept of marketing emphasizes on promotion and sale
of goods and services and little attention is paid to consumer satisfaction.
This concept has the following implications:

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a) The main focus of this concept is on product, i.e., we have a product and it
has to be sold. So, we have to persuade the consumers to buy our product.
b) All efforts of the marketing people are concentrated on selling the product.
They adopt all means like personal selling and sales promotion to boost the
sales.
c) The ultimate goal of all marketing activity is to earn profit through
maximization of sales.

Modern concept of marketing

The modern concept of marketing considers the consumers’ wants

and needs as the guiding spirit and focuses on the delivery of such goods
and services that can satisfy those needs most effectively. Thus,
marketing starts with identifying consumer needs then plan the
production of goods and services accordingly to provide him the
maximum satisfaction.

In other words, the products and services are planned according to

the needs of the customers rather than according to the availability of
materials and machinery. Not only that, all activities (manufacturing,
research and development, quality control, distribution, selling etc.) are
directed to satisfy the consumers. Thus, the main implications of the
modern concepts are:

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a) The focus of this concept is on customer orientation. The marketing
activity starts with an assessment of the customers' needs and plan the
production of items that satisfy these needs most effectively.

b) All marketing activities like product planning, pricing, packaging,

distribution and sales promotion are combined into one as coordinated
marketing efforts. This is called integrating marketing. It implies:

 developing a product that can satisfy the needs of the consumers;

 taking promotional measures so that consumers come to know about the
products, its features, quality, availability etc.;
 pricing the product keeping in mind the target consumers’ purchasing
power and willingness to pay;
 packaging and grading the product to make it more attractive and
undertaking sales promotion measures to motivate consumers to buy the
product; and
 Taking various other measures (e.g., after sales service) to satisfy the
consumers’ needs.

c) The main aim of all effort is to earn profit through maximization of

customer satisfaction. This implies that, if the customers are satisfied,
they will continue to buy, and many new customers will be added. This
will lead to increased sales and so also the profits.

Five orientations (philosophical concepts to the marketplace have

guided and continue to guide organizational activities:

1. The Production Concept: This concept is the oldest of the concepts in

business. It holds that consumers will prefer products that are widely
available and inexpensive. Managers focusing on this concept concentrate
on achieving high production efficiency, low costs, and mass distribution.

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2. The product concept: Is a management orientation that assumes the
consumer will desire those products that are good and reasonable priced.
Such products require minimal marketing strategies to achieve
satisfactory sales and profits. In health care the physician as consumer of
the product will respond to good product (services) and facilitates there
are marketing strategies to ensure sufficient use. Nurse executives are also
consumer who are seeking new products that will enhance services to
clients. Both profit and not for profit organization can operate according
to product concept.

Figure 1: Five concepts of marketing

3. Selling concept: Is a management orientation that assumes that users will

usually not purchase enough of the organization products unless they are
approached with a considerable selling. The major focus here is obtaining
sufficient sales for products. The concept is based on the assumption that
customers will buy again but even if they don't sufficient number of other
customers will buy a product this practice has many disadvantages.
Particular when customer satisfaction is secondary to selling the product
or services.

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4. Marketing concept: Proposes that in order to satisfy the organizational
objectives, an organization should anticipate the needs and wants of
consumers and satisfy these more effectively than competitors. Given the
centrality of customer needs and wants in marketing, a rich understanding
of these concepts is essential:

Needs: Something necessary for people to live a healthy, stable and safe
life. Needs can be objective and physical, such as the need for food, water
and shelter; or subjective and psychological, such as the need to belong to
a family or social group and the need for self-esteem.

Wants: Something that is desired wished for or aspired to. Wants are not
essential for basic survival and are often shaped by culture or peer-groups.

Demands: When needs and wants are backed by the ability to pay, they
have the potential to become economic demands.

Differences between marketing and selling

The terms ‘marketing’ and ‘selling’ are related but not

synonymous. ‘Marketing’ as stated earlier, emphasizes on earning profits
through customer satisfaction. In marketing, the focus is on the
consumer’s needs and their satisfaction. ‘Selling’ on the other hand
focuses on product and emphasizes on selling what has been produced. In
fact it is a small part of the wide process of marketing wherein emphasis
is initially on promotion of goods and services and eventually on increase
in sales volume.

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 Marketing has long term perspective of winning over consumer
loyalty to the product by providing him maximum satisfaction. However,
selling has short-term prospective of only increasing the sales volume.

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 In marketing, the consumer is the on king whose needs must be
satisfied. In selling, the product is supreme and the entire focus is its sale.
Marketing starts before production and continues even after the exchange
of goods and services has taken place. It is so because provision of after
sale service is an important component of marketing process. Selling
starts after the production and ends as soon as the exchange of goods and
services has taken place.

5. The Societal Marketing Concept. This concept holds that the

organization‘s task is to determine the needs, wants, and interests of target
markets and to deliver the desired satisfactions more effectively and
efficiently than competitors (this is the original Marketing Concept).

Importance of the marketing

Marketing is important to the business, consumer as well as the

society. This is evident from the following points.

1. Marketing helps business to keep pace with the changing tastes, fashions,
preferences of the customers. It works out primarily because ascertaining
consumer needs and wants is a regular phenomenon and improvement in

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 existing products and introduction of new product keeps on taking place.
Marketing thus, contributes to providing better products and services to
the consumers and improve their standard of living.

2. Marketing helps in making products available at all places and throughout

the year. We are able to get Kashmir shawls and Assam Tea all over India
and get seasonal fruits like apple and oranges round the year due to
proper warehousing or proper packaging. Thus, marketing creates time
and place utilities.

3. Marketing plays an important role in the development of the economy.

Various functions and sub-functions of marketing like advertising,
personal selling; packaging, transportation, etc. generate employment for
a large number of people, and accelerate growth of business.

4. Marketing helps the business in increasing its sales volume, generating

revenue and ensuring its success in the long run.

5. Marketing also helps the business in meeting competition most

effectively.

Objectives of the marketing

After knowing the points of importance of marketing let us discuss

on the basic objectives of marketing.

1. Provide satisfaction to customers

All marketing activities are directed towards customer satisfaction.

Marketing starts with ascertaining consumer needs and produce goods
that satisfy those needs most effectively. Not only that the pricing and
distribution functions of marketing are also planned accordingly.

2. Increase in demand

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 Through advertising and other sales promotional efforts, marketing
aims at creating additional demand for their products. Satisfied customers
also help in creating new customers. For example, if you buy a ‘gel pen’
and feel satisfied, next time also you will buy the same pen and obviously
when you tell others about it they will also feel like giving it a try.

3. Provide better quality product to the customers

This is a basic objective of marketing. The business houses try to

update and upgrade their knowledge and technology to continuously
provide better products. If they do not do so, they will be phased out
through competition.

4. Create goodwill for the organization

Another objective of marketing is to build a good public image and

create goodwill for the organization. This helps in maintaining loyalty to
the product and accepting new products of the same company.

5. Generate profitable sales volume

The ultimate objective of all marketing efforts is to generate

profitable sales volumes for the business. Taking care of customer needs
and wants by providing the required goods and services at prices they can
afford, and at places and timing that are convenient to them ultimately
lead to increased sales and profits.

Characteristics of the marketing

1. Flexibility: to adjust the strategy to the situation.

2. Courage: to make a decision and stand by it.

3. Boldness: to act without hesitation when the time‘s right.

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4. Knowing the facts: to formulate strategy from the ground up.

5. Knowing the rules: but internalizing them so they can be forgotten.

6. Lucky: marketing warfare has an element of chance; a good strategy only

makes the odds more favorable.

Components of the marketing

Marketing is defined by the American Marketing Association as

the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large, there are four activities,
or components, of marketing:

1. Creating. The process

of collaborating with suppliers and customers to create offerings that have
value.
2. Communicating. Broadly, describing those offerings, as well as learning
from customers.
3. Delivering. Getting those offerings to the consumer in a way that
optimizes value.
4. Exchanging. Trading value for those offerings.

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 When we use the term value, we mean the benefits buyers receive
that meet their needs. In other words, value is what the customer gets by
purchasing and consuming a company’s offering. Marketing is composed
of four activities centered on customer value: creating, communicating,
delivering, and exchanging value.

The traditional way of viewing the components of marketing is via

the four Ps:

1. Product. Product refers to the goods and services offered by the

organization (creating offerings).

2. Promotion. Promotion is done through means of personal selling,

advertising, publicity and sales promotion (Communication).

3. Place. Getting the product to a point where the customer can purchase it
(delivering).

4. Price. The monetary amount charged for the product or service

(exchange).

Introduced in the early 1950s, the four Ps were called the

marketing mix, meaning that a marketing If the four Ps are the same as
creating, communicating, delivering, and exchanging, you might be
wondering why there was a change. The answer is that they are not
exactly the same. Product, price, place, and promotion are nouns. As
such, these words fail to capture all the activities of marketing.

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 Functions performed in marketing

You have learnt that marketing is the performance of those business

activities that direct the flow of goods and services from producers to
consumers or users. Let us now learn what those activities are? These are
briefly discussed hereunder.

1. Marketing Research

Marketing research involves collection and analysis of facts

relevant to various aspects of marketing. It is a process of collecting and
analyzing information regarding customer needs and buying habits, the
nature of competition in the market, prevailing prices, distribution
network, effectiveness of advertising media, etc. Marketing research
gathers records and analyses facts for arriving at rational decisions and
developing suitable marketing strategies.

2. Product Planning and Development

As you know marketing starts much before the actual production. The
marketers gather information regarding what are the needs of the
consumers and then decide upon what to produce. So, the task of
marketing begins with planning and designing a product for the
consumers. It can also be done while modifying and improving an already
existing product. For example, now-a-days we find much better soaps and

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 detergent powders than we used to get earlier. Similarly, we have many
new products introduced almost on a regular basis.

3. Buying and Assembling

Buying and assembling activities as a part of marketing refer to buying

and collection of required goods for resale. This function of marketing is
primarily relevant to those business organisations that are engaged in
trading activities. In the context of manufacturing organisations, buying
and assembling involves buying raw materials and components required
for production of finished goods.

4. Packaging

Packaging involves putting the goods in attractive packets according to

the convenience of consumers. Important considerations to be kept in
view in this connection are the size of the package and the type of
packaging material used. Goods may be packaged in bottles (plastic or
glass), boxes (made of tin, glass, paper, plastic), cans or bags. The size of
the package generally varies from a few grams to a few kilograms, one
piece to a number of pieces of a product, or in any other suitable quantity
in terms of weight, count, length etc. Packaging is also used as a
promotional tool as suitable and attractive packages influences the
demand of the products. It may be noted that packaging is different from
packing, which refers to putting goods in suitable containers for
transportation purposes.

5. Standardization and Grading

Standardization refers to development of standards for production of

goods with respect to shape, design, colour and other characteristics. If

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 products are standardized, customers are able to identify a product and its
characteristics very well. So goods can be sold by sample or description.
Standardization helps in promoting the sale of the product by increasing
consumers’ confidence in the product quality. Grading involves
separating products into different classes on the basis of certain
predetermined standards relating to size and quality. Grading is required
in case of agricultural, forest and mineral products such as cotton, sugar
cane, iron ore, coal, timber, etc.

6. Branding

Branding means giving an attractive name, symbol or identity mark to the

product to make a product different from others so that it is known by that
name or symbol or mark.

7. Pricing the Product

Pricing involves decisions regarding fixation of product prices, keeping in

view the product costs, the capacity of customers to pay, and the prices of
the competitive products.

8. Promotion of the Product

Promotional activities include advertising, personal selling, sales

promotion and publicity. All promotional activities involve
communication with the existing and prospective customers whereby they
are made aware of the product, its distinctive features, price, availability
etc. The objective of promotional activities is to motivate the customers
to buy the product

9. Distribution

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 Distribution refers to those activities that are undertaken for sale of
products to the customers and the physical transfer thereof. The objective
of distribution activities is to ensure that consumers get the goods and
services at the place and time most convenient to them and in the desired
quantity.

10.Selling

Selling is an important function of marketing whereby the ownership of

goods and services is transferred from the seller to the buyer for a
consideration known as price. To initiate and complete the process of
selling, the seller has to inform the prospective buyer about availability of
goods, the nature and uses of products, their prices and the needs of the
customers that may be effectively satisfied by the product

11.Storage and Warehousing

Storage refers to holding and preserving goods from the time of their
procurement or production till the time of their sale. In other words
storage involves making suitable arrangements for preserving the goods
till they are bought by the consumers and delivered to them. Warehousing
is synonymous to storage but is normally used for large-scale storage
facility for goods and commodities.

12.Transportation

Transportation refers to the physical movement of goods from one place

to another. In marketing, transport as an activity refers to physical
movement of raw materials as well as finished goods from the place of
production to place of consumption.
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 Scope of the marketing

Under marketing management a marketing programme is

prepared on the basis of needs, wants, tastes and fashions of the
customers. It involves decision making in regard to pricing of the
products, publicity, distribution and after-sales service. Thus marketing
management is an action science consisting of principles for improving
the effectiveness of exchange. It represents professionalization in the
carrying out of exchange relationships. In recent times marketing
management has become a self conscious craft. It is the analysis,
planning, implementation and control of programmes designed to bring
about designed exchanges for the purpose of personal or mutual gain. It
relies heavily on the adaptation and coordination of product, price,
promotion, and place for achieving effective response

Approaches of the marketing

In layman terms marketing is the process of selling something at a

shop or market place. A brief description of these different approaches is
given below, reflecting their respective focus and characteristics.

1. Commodity approach

In this approach, the subject matter of discussion centers around

the specific commodity selected for the study and includes the sources
and conditions of supply, nature and extent of demand, the distribution of
channels used and the functions, such as buying, selling, financing,
advertising, storage, etc. performed by the various agencies.

2. Functional Approach

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 In the functional approach, the emphasis on the study of marketing
functions is at the macro level and its scope extends to those functions
only which are involved during the flow of goods and service from
producers to consumers.

3. Managerial approach

In the managerial approach, the focus of marketing study is on the

decision making process involved in the performance of marketing
function at the level of a firm. In the managerial approach, the emphasis
shift to the micro parts of the economy and settles at the level of a
business firm which performs all those functions which impinge upon and
are involved in the creation and distribution of goods and services desired
by the market. The managerial approach thus entails the study of
marketing at the micro-level-level of a business firm – of the managerial
functions of analysis, planning, execution, coordination and control in
relation to the marketing functions of creating, stimulating, facilitating
and valuing transactions.

4. Institutional Approach

In the institutional approach to the study of marketing, the focus is

on the study of the various middlemen and facilitating agencies. The
study includes their position in the distribution channels, the purpose of
their existence, the functions performed and service rendered by them,
their operating methods, the cost involved, and the problems faced by
them.

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5. Societal Approach

In the societal approach to the study of marketing, the entire

marketing process is regarded not as means by which business meets the
ends of consumers but as a means by which society meets its own
consumption needs. In it, the focus of study, therefore, is the interactions
between the various environmental factors (sociological, cultural,
political, legal) and marketing decisions and their impact on the well-
being of society.

6. Systems Approach

Among the recent approaches to the study of marketing, the one

that has been engaging considerable attention lately is the systems
approach. It is based on Von Bartalanffy‟s “general system theory”. He
defined system as a “set of objects together with the relationships among
them and their attributes. Systems thinking recognize the inter-relations
and interconnections among the components of a marketing system in
which products, services, money, equipment and information flow from
marketers to consumers. The focus of systems approach is, there sore, the
analysis of these marketing flows and communication. It stresses built-in
organizational capacity to adapt business to a changing ecosystem.

Strategic marketing planning process

Stanton defines strategic marketing planning as the process of

setting marketing goals, selecting target markets and designing a
marketing mix to satisfy these markets and achieve these goals. The
functional strategy like marketing strategy sets the boundaries for all the
action programmes related to marketing. According to staton, the six
stages involved in strategic marketing planning process are:

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1. Situational analysis – with a purpose to determine where we are and
where are we going.
2. Determine the objectives – these goals should be specific and realistic
3. Select and measure target markets – identify present and potential
customers
4. Design marketing mix strategies and tactics – How do we get to where
we want to go.
5. Prepare annual marketing plan – the how to do it guide to yearly
marketing operations.
6. Implementation and evaluation – How are we doing? Did we do what
we said we would do?

The first stage is situation analysis consists of an analysis of external

environmental forces and the non-marketing resources that influence an
organization's marketing programmed. These factors are: political,
economic, competitive, socio cultural, historical, etc. this analysis also
reviews and evaluates an organization's existing marketing mix so as to
identify the flaws and problems associated with them. This analysis will
help an organization to know where it is and where it should reach in
future, which may be called the first stage.

The second stage is to formulate the objectives. This includes both the
corporate objectives as well as marketing objectives. At the time of
setting the marketing objectives, care should be taken to make it specific,
measurable and in conformity with the corporate objectives. It will be
better to spell them out in writing so that there is no scope for confusion.

In the third stage, the organization should identify the present and
potential customers. This is what is called selection of target markets.
Apart from analyzing the existing market for its products, the
organization should try to identify the new market for its products. For

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this purpose, the company has to adopt the marketing segmentation
technique. Once the market is segmented, it is necessary to forecast the
market for the product in each segment.

The fourth stage is to design a strategic marketing mix that enables

the organization to satisfy the wants of its target markets and to achieve
the marking objectives. The design and later the operation of the
marketing mix components constitute the bulk of a Company's marketing
effort.

In the fifth stage, the strategic marketing planning is prepared. A

series of short term marketing plans are prepared. Usually a period of one
year is covered. They are called annual marketing plans. It includes a
statement of objectives, identification of target markets, strategies relating
to the marketing mix, information regarding the budgetary support for the
marketing activity.

After formulating the strategic marketing planning in the above

manner, the last stage is, it should be implemented and evaluated
periodically. This is done to understand how for the organization is
following plan. If there are deviations, the causes and consequences of
such deviations are analyzed. Further, to design the future course of
action, there is a need to analyze the changing marketing environment.
The actual performance of the strategic plan has to be critically evaluated
so as to accomplish the objectives of the company as desired and as
planned. In the process of evaluation, it any defect is found, corrective
measures should be incorporated immediately. It would also be wise to do
this evaluation segment – wise so that the strategy developed for each
segment can be perfected. It is also good to study the strategic planning of
the competitor to come out with new ideas and plans.

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References

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management function in nursing. 7th ed. Strategic and operational
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│Lippincott Williams & Wilkins. China.

Roussel, L., and Swansburg, R. (2009): Management and Leadership

for Nurse Administrators. 5th ed. strategic planning and management,
chapter 9, Pp. 288-333 by Jones and Bartlett publishers. Boston. USA.

Armstrong, M. (2009): ARMSTRONG‘S HANDBOOK OF

MANAGEMENT AND LEADERSHIP, A guide to managing for
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Graphics. India.

Patricias. And Yoder-Wise. (2007): leading and managing in nursing,

fourth edition, part 3: changing the status quo (strategic planning), pp:
305- 320.

Schermerhorn, J. (2005): Management. 8th ed. Planning and

controlling, chapter 8, Pp. 188-215 by John Wiley& Sons. USA.

Thomas, L. (2005): Capacity building for local NGOs: A guidance

manual for good practice. Chapter 3: Strategic planning, Pp. 41-70 by
the Catholic Institute for International Relations. London. UK.

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Philip Kotler,(2004): Ten Deadly Marketing Sins (Hoboken, NJ: John
Wiley & Sons, 2004) pp. 10, 145–148.

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