“Marketing is a social and managerial process by which individual and groups obtain what they need and want

through creating and exchanging products and values with others”






Fig: Key elements

of Marketing


A human need is a state of deprivation of some basic satisfaction.( food, cloth & shelter).Wants are desires for specific satisfiers of these deeper needs. Demands are wants for specific products that are backed up by an ability and willingness to buy them. Marketers don’t create the need for social status but try to point out how a particular good would satisfy that need. Marketers try to influence demand by making the product attractive, affordable and easily available.

PRODUCTS Product is “Anything that can be offered to someone to satisfy a need or want”. It may be physical object (Television, Car, Soft drinks,etc) or intangible one ( places,ideas,activities,etc). Therefore product is a combination of offers, satisfiers and resources. UTILITY, VALUE AND SATISFACTION Utility is “The quality of being practical use”. Value means a numerical quantity measured or the quality (positive or negative) that renders something desirable. Satisfaction is “State of being gratified” In marketing there are number of product options for a human needs. So the guiding concept is known as utility , utility per cost is value and then sum of utility with positive value is termed as satisfaction. EXCHANGE, TRANSACTION AND RELATIONSHIP Market does not base on needs and wants. It emerges when people decide to satisfy needs and wants through exchange. Exchange may be in four ways, i.e. self production, coercion, begging and exchange. Exchange is the act of obtaining a desired product from someone by offering something in return. Transaction is the basic unit of exchange. It consist of a trade value. Different transactions are barter transaction, commercial transaction, employment transaction, civic transaction, religious transaction, charity transaction, etc. Relationship means a state of connectedness or relatedness between people. Transaction is a part of relationship marketing. Because it is very much essential to keep relationship with customers, distributors, dealers and suppliers. MARKETS

“A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want”. Industry is a group of sellers and Market is a group of buyers.


Goods/ Services Industry (Collection of Sellers) Money Market (Collection of buyers)


Market is also divided according to customers. Such as need market, product market, demographic market, geographic market, industrial market, etc. Marketing and Marketers Marketing is the human activity taking place in relationship to market. Marketer is someone seeking a resource from someone else and willing to offer something of value in exchange. So marketer may be a seller or buyer.

Therefore marketing may be defined as “A social and managerial process by which individual and groups obtain what they need and want through creating and exchanging products and values with others”

CONCEPTS OF MARKETING . Now the question arises, what philosophy should guide these marketing efforts? What weights should be given to the interests of the organization, the customers, and society? Very often these interests conflict. Clearly, marketing activities should be carried out under some well-thought-out philosophy of effective and responsible marketing. PRODUCTION CONCEPT The production concept holds that consumers will favor those products that are widely available and low in cost. Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution coverage. The assumption that consumers are primarily interested in product availability and low price holds in at least two types of situations. First is where the demand for a product exceeds supply, and therefore customers are more interested in obtaining the product than in its fine points. The suppliers will concentrate on finding ways to increase production. The second situation is where the product's cost is high and has to be brought down through increased productivity to expand the market. Texas Instruments provides a contemporary example of the production concept. Texas Instruments, the Dallas-based electronics firm, is the leading American exponent of the "get-out-production, cut-theprice" philosophy that Henry Ford pioneered in the early 1900s to expand the automobile market. Ford put all of his talent into perfecting the mass production of automobiles to bring down their costs so that Americans could afford them. Texas Instruments puts all of its efforts into building production volume and improving technology in order to bring down costs. PRODUCT CONCEPT

The product concept holds that consumers will favor those products that offer the most quality, performance, and features. Managers in these product-oriented organizations focus their energy on making good products and improving them over time. These managers assume that buyers admire well-made products, can appraise product quality and performance, and are willing to pay more for product "extras." Many of these managers are caught up in a love affair with their product and fail to appreciate that the market may be less "turned on" and may even be moving in a different direction. They say, "We make the finest men's tailored suits" or "We make the finest television sets" and wonder why the market doesn't appreciate this. There is a story about an office-files manufacturer complaining that his files should be selling better because they are the best in the world. "They can be dropped from a four-story building and not be damaged." "Yes," agreed his sales manager, "but our customers aren't planning to push them out of four-story buildings." SELLING CONCEPT The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the organization's products, the organization, must therefore undertake an aggressive selling and promotion effort. The concept assumes that consumers typically show buying inertia or resistance and have to be coaxed into buying more. The selling concept is practiced most aggressively with "unsought goods," those goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots, These industries have perfected various sales techniques to locate prospects and hard-sell them on the benefits of their product. Hard selling also occurs with sought goods, such as automobiles. From the moment the customer walks into the showroom, If the customer likes the floor model, salesman may be told that there is another customer about to buy it and that he should decide on the spot. If the customer balks at the price, the salesman offers to talk to the manager to get a special concession. The customer waits ten minutes and the salesman returns with "the boss doesn't like it but I got him to agree." The aim is to "work up the customer" to buy on the spot. The selling concept is also practiced in the nonprofit area, by fund-raisers, college admissions

offices, and political parties. A political party will vigorously sell its candidate to the voters as being a fantastic person for the job. The candidate stomps through voting precincts from early morning to late evening shaking hands, kissing babies, meeting donors, making breezy speeches. Countless dollars are spent on radio and television advertising, posters, and mailings. After the election, the new official continues to take a sales-oriented view toward the citizens. There is little research into what the public wants and a lot of selling to get the public to accept policies that the politician or party wants. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what they can sell. MARKETING CONCEPT The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. It can be expressed in many colorful ways. • • • • • ‘Find wants and fill them’ ‘Make what will sell instead of trying to sell what you can make’ 'Love the customer and not the product' 'Have it your way’ (Burger King) 'You're the boss’ (United Airlines)

Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller's need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product. The marketing concept rests on four main pillars, namely, a market focus, customer orientation, coordinated marketing, and profitability.

Marketing management takes place when at least one party to a potential exchange gives thought to objectives and means of achieving desired responses from other parties. We will use the following definition of marketing (management) approved in 1985 by the American Marketing Association: Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. This definition recognizes marketing management as a process involving analysis, planning, implementation, and control; that it covers ideas, goods, and services; that it rests on the' notion of exchange; and that the goal is to produce satisfaction for the parties involved..

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