Marketing

Define :

Marketing is the economic process by which goods & services are exchanged
between manufacturer & the consumer and their values determined in terms of
money prices.

Marketing is the performance of business activity that directs the flow of

goods & services from producer to consumer.

Marketing is the total system of interacting business activities designed to

plan, promote and distribute need satisfying products and services to existing
and potential customers.
 Core Concepts of Marketing
• Target markets and Segmentation.
• Marketplace and Marketspace (Metamarket).
• Marketers and Prospectus.
• Needs, Wants and Demands.
• Product, Offering and Brand.
• Customer value and Satisfaction.
• Exchange and Transactions.
• Relationship and Networks.
• Marketing channels.
• Supply chain.
• Competition.
• Marketing environment.
• Marketing program (Marketing Mix of 4 Ps).
Sr. Marketing
No.
1 It is the process of planning the
product as per customers needs.
2 It’s a function – objective is to
satisfy the customers need.
3 Focuses on quality as per needs to
provide satisfaction, leads to higher
sales
4 Prime considerations to customer,
his preferences & satisfaction.
5 Approach to achieve long term
goals.
6 It starts with idea of producing the
product as per needs & ends with
after sales service.
7 Needs & wants are converted into
goods and services.
8 Creation & delivery of a standard of
living to the society.
9 Planning is long - term oriented.
Selling
Selling is exchange of goods for
price.
It’s an activity – designed to meet
sellers needs.
Focus is only on sales volume and
profit.
It is for product, sales volume and
profit.
Approach to design & implement the
short term goals.
Only transfer of physical goods.
Conversion of goods into cash.
Ends with delivery of goods against
money.
It is short – term oriented.
 Functions of Marketing
• Buying.
• Selling.
• Transportation.
• Storage & warehousing.
• Standardisation & grading.
• Financing.
• Risk – taking.
• Product planning & development.
• Packaging.
• Pricing.
• Marketing research.
• Advertising.
• Marketing information.
• Sales promotion.
• Managing sales force.
• Managing distribution network.
• Marketing planning.
Approaches to Marketing - Marketing Management Philosophies
There are six competing business concepts under which organisations
conduct marketing activities :

A] THE PRODUCTION CONCEPT :

- The oldest concept
- It assumes that the consumers prefers products that are widely available & Cheap.
- The managers in such organisations concentrates on achieving high production
efficiency, low cost & mass distribution.

B] THE PRODUCT CONCEPT :

- It assumes that consumers will favour those products that offers the most quality,
performance or innovative features.
- Managers focuses on making superior products & improving them overtime.

MARKETING MYOPIA : Product oriented companies often trust their core team &
on their product & overlooks the competition & the competitor’s products. This
leads to the concept ‘Marketing Myopia’.
C] THE SELLING CONCEPT :

- It assumes that without undertaking aggressive selling & promotion

efforts, consumers will not buy enough products of the organisation.
- It also assumes that company is having a full setup for effective selling &
promotion tools to stimulate more buying.
- Purpose of marketing is to sell more & to get more profit.
- This concept is practiced most aggressively with unsought goods, which
buyers normally don’t think of buying.
- Selling is for overcapacity, sellers are strong with promotion hence public
identifies marketing as hard selling & it is risky.

D] THE MARKETING CONCEPT :

- Emerged in mid 1950’s, challenged all the preceding concepts.
- Customer centered.
- It assumes that the key to achieve the goal consists of the company being
more effective than competitors in creating, delivering & communicating
superior customers value to its chosen markets.
- The concept rests on target market, customer needs etc.
E] THE CUSTOMER CONCEPT :
- It focuses on individual customer.
- Growing competition & schemes, offers focused.
- Focus to get mass business through maximum customers by attacking
them individually.

F] THE SOCIETAL MARKETING CONCEPT :

- It assumes that the organisations task is to determine the needs, wants &
demands to deliver the desired satisfaction more effectively & efficiently in
a way that preserves or enhances the customer’s and society’s well being.
- the ‘humanistic marketing’ & ‘ecological marketing’
- In marketing practices, social & ethical considerations should be there.

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• What is the difference between Goods & Services ?

• Customer Satisfaction, Customer Delight.

 Holistic Marketing

Internal Marketing Integrated Marketing

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Senior management Product & services
Marketing department Channels
Other departments Communication

Holistic Marketing

Socially Responsible
Relationship
Marketing
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Marketing
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