Principles of marketing

Meaning of Market

•The word "Market is derived from the Latin word "MARCATUS" which means merchandise or trade or
a place where business is conducted.

• Market is a place , arrangement or area where buyer and seller meet for exchanging goods and
services for money.

Meaning of Marketer

• Marketers are those firms or companies which exist in the market along with their competitors.

Definition of Marketing

• According to Harry W. Hepner "Marketing includes every activity that has to do with the movement of
goods from the point where they are produced to the point where they are consumed. It includes
product planning, pricing ,advertising and analysis of market in terms of its present and potential
customers".

1. Product-oriented Definition

• These definitions are based on the assumption that whatever is produced by the manufacturer will be
acceptable to the consumer. It means the producer is concerned only with the production without
taking into account the need, choice or behaviour of the consumer.

• According to Pyle "Marketing comprises both buying and

selling activities"

2. Customer-oriented Definition

• These definitions emphasise on the satisfaction of the consumers. It means only those products are
brought to the market which can satisfy the wants and taste of the consumers.

• According to Paul Mazur "Marketing is the delivery of standard of living".

• According to Malcolm Mc Nair "Marketing is the creation and delivery of standard of living."

Nature/ Characteristics/ Features of Marketing

1.Human activity: Marketing is a human activity under which human needs are satisfied by human
efforts. I's a human action for human satisfaction.

2.Consumer-oriented: Marketing is consumer oriented. It find out the desire of consumer and only
those goods should be produced that satisty consumer needs and at a reasonable profit to the producer.

Lecturer :Shafqat Rafique (The Superior Group Of Colleges Okara Campus)

 Principles of marketing

3.Universaly applicable to all organisation: Marketing can be applied to both profit- motive and
non-profit motive organisations. Non profit motive organisations like educational institutions also USe
marketing techniques in popularizing their services.

4. Creation of Utilities: Marketing creates four types of utilities i.e. time, place, possession and form.

a. The form utility refers to the product or service a company offers to their customers.

b. The placo utility refers to the availability of a product or service in a ocation ie. easier for customers.

C. By time utility, a company can ensure that products and services are available when customers need
them.

d. The possession utility gives customers ownership of a product or service and enables them to derive
benefits in their own business.

5. Goal oriented: Marketing seeks to achieve benefits for both buyers and selers by satisfying human
needs. The ultimate goal of marketing is to generate profits through the satisfaction of the customer.

6. Exchange Process: The exchange process implies transactions between buyer and seller. It also
involves exchange of technology, exchange of information and exchange of ideas.

7. Guiding element of business: Modern Marketing is the heart of industrial activity that tells what,
when, how to produce. It is capable of guiding and controlling business.

8. Integration with other functions: Marketing combines with other business functions such as
production, finance, personnel, buying. selling. sales promotion ,advertising, transportation etc. to
achieve business objectives.

9.Marketing is a dynamic process: Marketing practice keeps on changing from time to time
according to environment to improve ts effectiveness.

Scope of Marketing

1. Study of Consumer Wants and Needs: Goods are produced to satisty consumer wants. Therefore
study is done to identify consumer needs and wants. These needs and wants motivates consumer to
purchase.

2. Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of

buyer behaviour helps marketer in market segmentation and targeting.

3. Production planning and development: Product planning and development starts with the
generation of product idea and ends with the product development an commercialization. Product
planning includes everything from branding and packaging to product line expansion.

Lecturer :Shafqat Rafique (The Superior Group Of Colleges Okara Campus)

 Principles of marketing

4. Pricing Policies: Maketer has to determine pricing policies for their products. Pricing policies differs
fom product to product. It depends on the level of competition, product life cycle, marketing goals and
objectives, etc.

5. Distribution: Study of distribution channel is important in marketing. For maximum sales and profit
goods are required to be distributed to the maximum consumers at minimum cost.

6. Promotion: Promotion includes personal selling. sales promotion, and advertising. Right promotion
mix is crucial in accomplishment of marketing goals.

7. Consumer Satisfaction: The product or service ofered must satisfy consumer. Consumer
satisfaction is the major objective of marketing.

8. Marketing Control: Marketing audit is done to control the marketing activities.

Lecturer :Shafqat Rafique (The Superior Group Of Colleges Okara Campus)