DEVELOP A MARKETING PLAN

•DEFINITION OF MARKETING
•MARKETING FUNCTION
•MARKETING VS. SELLING CONCEPT
 DEFINITION OF MARKETING

• Professor Kotler defined marketing as a set of human

activities directed at facilitating exchange.
• The definition of Kotler includes three elements:
• 1. two or more persons who are potentially interested in
exchange
• 2. each person having things of value to offer the others, and
• 3. each of them is capable of communication and delivery.
 DEFINITION OF MARKETING

• The American Marketing Association defines marketing as the performance of

business activities that directs the flow of goods and services from producer to
consumer.
• It is a process of stablishing natural satisfaction in exchange relationships between
buyer and seller.
• Professor William Slanton explains that the marketing is a transaction intended to
satisfy human needs. Aside from goods and services, ideas, people and places are
also marketed.
DEFINITION OF MARKETING

• Prof. Slanton also defines market as:

• A market is people with:

• needs to satisfy
• money to spend
• willingness to buy
Marketing refers to all activities a company does to promote and
sell products or services to consumers.

Marketing makes use of the "marketing mix," also known as the

four Ps—product, price, place, and promotion.

At its core, marketing seeks to take a product or service, identify

its ideal customers, and draw the customers' attention to the
product or service available.
 UNDERSTANDING MARKETING

• Marketing as a discipline involves all the actions a company undertakes to draw in customers and
maintain relationships with them.
• Networking with potential or past clients is part of the work too, and may include writing thank you
emails, playing golf with prospective clients, returning calls and emails quickly, and meeting with
clients for coffee or a meal.
• At its most basic level, marketing seeks to match a company's products and services to customers who
want access to those products.
• Matching products to customers ultimately ensures profitability.
THE FOUR PS OF MARKETING
THE FOUR PS OF MARKETING

• Product- refers to an item or items the business plans to offer to customers.

The product should seek to fulfill an absence in the market, or fulfill
consumer demand for a greater amount of a product already available. Before
they can prepare an appropriate campaign, marketers need to understand
what product is being sold, how it stands out from its competitors, whether
the product can also be paired with a secondary product or product line, and
whether there are substitute products in the market.
THE FOUR PS OF MARKETING

• Price refers to how much the company will sell the product for. When establishing a
price, companies must consider the unit cost price, marketing costs, and distribution
expenses. Companies must also consider the price of competing products in the
marketplace and whether their proposed price point is sufficient to represent a reasonable
alternative for consumers.
THE FOUR PS OF MARKETING

• Place refers to the distribution of the product. Key considerations include

whether the company will sell the product through a physical storefront,
online, or through both distribution channels. When it's sold in a
storefront, what kind of physical product placement does it get? When it's
sold online, what kind of digital product placement does it get?
THE FOUR PS OF MARKETING

• Promotion, the fourth P, is the integrated marketing communications campaign.

Promotion includes a variety of activities such as advertising, selling, sales promotions,
public relations, direct marketing, sponsorship, and guerrilla marketing.

• Promotions vary depending on what stage of the product life cycle the product is in.
Marketers understand that consumers associate a product’s price and distribution with its
quality, and they take this into account when devising the overall marketing strategy.
FUNCTIONS OF MARKETING

• A marketing function is a specialized activity performed in marketing. A marketing

function is necessary to take goods from the place of origin to the place of consumption.
• it is an act or operation or service in order to link the original producer and the ultimate
consumer.
• The marketing functions are built around the process of marketing involving
concentration, equalization and dispersion.
• These functions help the manufacturer in taking his products from the place of their
manufacture to the places of the consumer.
 A. FUNCTIONS OF EXCHANGE

• Transfer of ownership is the primary objective of the market­ing process. Hence, performance of buying and selling
functions assumes a unique importance. Let us describe briefly merchandising, buying and selling functions.
• Merchandising:
• Merchandising covers the activities involved in planning and supervising the adjustment of a product line to
customer wants and needs. It is essential in wholesale and retail trade. What is bought has to be resold at a profit.
Merchandising function tries to analyze the market and the products to be sold.
• Merchandis­ing function alone can assure the right product, at the right time, at the right place, at the right price,
with the right amount of goods to the right customers.
MAJOR MARKETING FUNCTIONS

• 1. Exchange Functions 3. Facilitating functions

a. merchandizing a. financing
b. buying b. standardizing
c.. selling c. risk taking
• 2. Distribution functions d. Marketing information
• a. transporting
• b. storing
A. FUNCTIONS OF EXCHANGE

• Buying
• Buying is one side of the equation of exchange — the counter­part of selling the other side
of exchange.
• The buying function involves planning of purchases, selection of proper sources of
supply, selection of goods to be sold, or to be used in business, assembling of goods in
right quantity, at the right place and time and at the right price.
• The primary purpose of buying is to assemble goods upon demand, for resale or use in
production or personal consumption.
 A. FUNCTIONS OF EXCHANGE

• Selling:
• Selling and buying must complement each other.
• The selling func­tion is most important in any business. The primary objective in marketing is to sell goods
or services at a profit.
• The selling function involves a number of subsidiary activities- (a) product planning and development i.e.,
merchandising, (b) search of buyers, (c) creation of demand through all means of promotion, (d)
negotiation of terms of sale such as quality, quantity and price and (e) sale contract leading to transfer
of title and possession of goods.
PHYSICAL SUPPLY:
DISTRIBUTION FUNCTIONS
• 1. Transportation: ( transporting)
• Transport offers this particular service and a buyer can enjoy the physical possession only when the
goods bought are duly transported from a seller to a buyer.
• Transportation as a marketing function assumes unique impor­tance when we have mass
production, mass distribution, and ever- widening markets.
• Transportation is the movement of products from the centers of production to centers of processing
or manufacturing and then from the factories to the markets (right up to consumers’ resi­dences).
Thus it is an essential marketing service at every stage in the flow of goods during concentration as
well as dispersion in the process of marketing
PHYSICAL SUPPLY:
DISTRIBUTION FUNCTIONS
• 2. Storage:
• Storage creates time utility by holding and preserving stock of goods for different periods
of time during the marketing process. Storage enables equalisation process over period of
time, whereas transport enables equalisation of supplies place-wise.
• trans­port and storage facilitate the function of physical distribution.
• By means of transport and storage a marketer can easily equalise and regulate supplies
place-wise and time-wise so that supply can be adjusted with changing market demand in
all markets as well as throughout the period.
 FACILITATING MARKETING FUNCTIONS:

• The important facilitating functions smoothening the marketing process are:

• Standardization and Grading:
• Standardization means prescribing basic limits or grades on the basis of which products may be sorted and to which
producer of goods must conform. Grading is the actual sorting of a supply of a given commodity as per specified or
fixed norms or standards.
• Standardization is necessary in agricultural as well as manufactured products. Standardization and grading are
important marketing functions as they enable widening of markets. Buying and selling become easier. Consumer
confidence can be secured. We can have uniform quality, size, type, etc. Marketing costs also can be reduced
considerably.
 FACILITATING MARKETING FUNCTIONS:

• Financing:
• Financing is the self-blood of industry. It is required for production as well as for marketing. In the
modern market, exchange operations are based on money and credit. There is a certain time interval
between the purchase of raw materials and the manufacturing of finished products and from the
time goods are made till the consumer pays for them.
• Manufacturer gets bank loan for manufacturing and marketing operations.
• Banks help merchants to finance for holding of stocks of goods lying in the warehouses.
FACILITATING MARKETING FUNCTIONS:

• The financing function in marketing involves the use of capital to finance the marketing agencies
(wholesalers and retailers) in their various activities, plus the financing of goods moving into and
through the channels of distribution.

• Risk Management:
• We have three major marketing risks- (i) Physical loss or damage of goods, (ii)
Economic loss of values in goods, (iii) Credit losses.
• Though the risk of loss cannot be eliminated, it can at least be transferred to
insurance companies by insurance policies.
FACILITATING MARKETING FUNCTIONS

• there is no insurance coverage as yet available against loss of value caused by a fall in
the market demand or price or from new competition. Protection against these losses can
be secured only through minimizing the losses with the help of able and competent
marketing management.
• However, risk cannot be totally eliminated. Some can be shifted. Others can be
minimized. Some are unavoidable. Hence, element of risk is significant in the total cost
of marketing. Intelligent management of risk is the main job of a marketer.
FACILITATING MARKETING FUNCTIONS

• Marketing Information:
• Information is a vital resource in any business. It has to be collected, processed and
interpreted. Decisions are based on facts and figures. Market intelligence means
spreading of market information among buyers and sellers.
• Marketing executives are interested in knowing trends in market demand, supply, prices
and related market information. Equipped with latest market information, risk of loss can
be reduced in marketing, in pricing, in forecasting market demand and in facing,
competition in the market.
FACILITATING MARKETING FUNCTIONS

• Marketing information service has assumed a unique importance in our business system
as decision making process in the field of marketing can be based on adequate, up-to-
date, reliable and timely information.
• Modern means of communication can be employed for dissemination of market
information. Organized markets, banks, government agencies act as clearing houses of
vital market information.
MARKETING CONCEPT VS SELLING CONCEPT

• Marketing includes an integration of various functions, such as marketing research, new

project development, advertising, consumer service, distribution and selling.

• Marketing concept determines the needs of the costumers first, then develops the product
and service to satisfy such needs.
• Marketing is consumer oriented.
MARKETING CONCEPT VS SELLING CONCEPT

• The selling concept uses a reverse strategy.

• The enterprise makes the product first.
• The focus of selling in on the needs of the seller instead of the buyer.

• To implement the marketing concept, an enterprise must:

• 1. Get information about its customers and potential customers.
• 2. Determine customers needs and how well the products of the firm and its competitors satisfy such needs.
• 3. Direct the marketing resources and activities of the firm to improve products and services, together with
reasonable prices for consumers’ maximum satisfaction.
DIFFERENCE BETWEEN MARKETING AND
SELLING CONCEPT
• The marketing concept concentrates on the buyer’s needs and then the means are
identified to meet out those needs.
• Therefore, the customer is regarded as the king of the market.

• On the other hand, selling concept stresses on the needs of the seller and so, it is the
seller who rules the market.
 COMPARISON CHART

BASIS FOR COMPARISON SELLING CONCEPT MARKETING CONCEPT

Meaning Selling concept is a business notion, Marketing concept is a business

which states that if consumers and orientation which talks about
businesses remain unattended, then accomplishing organizational goals
there will not be ample sale of by becoming better than others in
organization's product. providing customer satisfaction.

Associated with Compelling consumer's mind towards Directing goods and services towards
goods and services. consumer's mind.
Comparison Chart
BASIS FOR COMPARISON SELLING CONCEPT MARKETING CONCEPT
Starting point Factory Target Market
Focuses on Product Customer needs
Perspective Inside-out Outside-in
Essence Transfer of title and possession Satisfaction of consumers
Business Planning Short term Long term
Orientation Volume oriented Profit oriented
Means Heavy selling and promotion Integrated marketing

Price Cost of Production Market determined

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