FLASHBACK NOTES// CLASS XI // MARKETING
CHAPTER 1-INTRODUCTION TO MARKETING
MEANING OF MARKETING
Marketing refers to the process of
ascertaining consumer needs, converting
them into products and services, and then
moving the product or service to the final
consumer segment with emphasis on
profitability and customer satisfaction,
ensuring the optimum use of the resources
available to the organization.
As per Philip Kotler, the marketing guru, marketing is a social and managerial process by
which individuals and groups obtain what they need and want through creating and
exchanging products and value with others.
MEANING OF MARKET
Market originates from Latin word ‘MARCUTUS’ which
means a place where buyer and sellers meet for business.
Earlier in our country buyer and seller gathered at a specific
place called ‘haats’or ‘melas’. But with passage of time
buyers and sellers need not to meet face to face for
transaction, they can meet virtually through e-commerce
platforms.
MASLOW’S NEED HIERARCHY THEORY OF MOTIVATION
(i)Physiological Needs: These needs are
most basic in the hierarchy and
correspond to primary needs. Hunger,
thirst, shelter, sleep are some examples of
these needs
(ii) Safety/Security Needs: These needs
provide security and protection from
physical and emotional harm. Examples:
job security, stability of income, Pension
plans etc.
(iii) Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness,
acceptance and friendship.
(iv) Esteem Needs: These include factors such as self-respect, autonomy status, recognition
and attention.
(v) Self Actualisation Needs: It is the highest level of need in the hierarchy. It refers to the
drive to become what one is capable of becoming. These needs include growth, self-
fulfilment and achievement of goals
, FEATURES OF MARKETING
1. Needs and Wants: A marketer’s job in an organisation
is to identify needs of the target customers and develop
products and services that satisfy such needs. The process
of marketing helps individuals and groups in obtaining
what they need and want. Thus, the primary reason or
motivation for people to engage in the process of
marketing is to satisfy some of their needs or wants.
2. Creating a Market Offering: Market offering refers to a
complete offer for a product or service, having given features like
size, quality, taste, etc; at a certain price; available at a given
outlet or location and so on. A good ‘market offer’ is the one
which is developed after analysing the needs and preferences of
the potential buyers.
3. Customer Value: The buyers, however, make buying decisions on
their perceptions of the value of the product or service in satisfying
their need, in relation to its cost. A product will be purchased only if it
is perceived to be giving greatest benefit or value for the money.
4. Exchange Mechanism: The process of
marketing involves exchange of products and
services for money or something considered
valuable by the people. Exchange refers to the
process through which two or more parties
come together to obtain the desired product or
service from someone.
Customer Value
Customers are smart and they evaluate between benefits they are
acquiring and price they are paying for those benefits. Customer
value is difference between the values benefits the customer gains
from owning a product and cost of obtaining the product. Customer
value can be shown as an equation as below:
Customer Value = Total Customer Benefits – Total Customer Costs
Customer Satisfaction
A Customer is said to be satisfied if their expectations
match with the actual performance of the product.
Customer satisfaction differs from one person to
another; it’s an experience which is different for
different individuals. Satisfaction can only be
measured by comparing pre-purchase expectation
and post-purchase experience. The equation used to determine the level of a customer’s
satisfaction is: Customer Satisfaction=Experience – Expectation
CHAPTER 1-INTRODUCTION TO MARKETING
MEANING OF MARKETING
Marketing refers to the process of
ascertaining consumer needs, converting
them into products and services, and then
moving the product or service to the final
consumer segment with emphasis on
profitability and customer satisfaction,
ensuring the optimum use of the resources
available to the organization.
As per Philip Kotler, the marketing guru, marketing is a social and managerial process by
which individuals and groups obtain what they need and want through creating and
exchanging products and value with others.
MEANING OF MARKET
Market originates from Latin word ‘MARCUTUS’ which
means a place where buyer and sellers meet for business.
Earlier in our country buyer and seller gathered at a specific
place called ‘haats’or ‘melas’. But with passage of time
buyers and sellers need not to meet face to face for
transaction, they can meet virtually through e-commerce
platforms.
MASLOW’S NEED HIERARCHY THEORY OF MOTIVATION
(i)Physiological Needs: These needs are
most basic in the hierarchy and
correspond to primary needs. Hunger,
thirst, shelter, sleep are some examples of
these needs
(ii) Safety/Security Needs: These needs
provide security and protection from
physical and emotional harm. Examples:
job security, stability of income, Pension
plans etc.
(iii) Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness,
acceptance and friendship.
(iv) Esteem Needs: These include factors such as self-respect, autonomy status, recognition
and attention.
(v) Self Actualisation Needs: It is the highest level of need in the hierarchy. It refers to the
drive to become what one is capable of becoming. These needs include growth, self-
fulfilment and achievement of goals
, FEATURES OF MARKETING
1. Needs and Wants: A marketer’s job in an organisation
is to identify needs of the target customers and develop
products and services that satisfy such needs. The process
of marketing helps individuals and groups in obtaining
what they need and want. Thus, the primary reason or
motivation for people to engage in the process of
marketing is to satisfy some of their needs or wants.
2. Creating a Market Offering: Market offering refers to a
complete offer for a product or service, having given features like
size, quality, taste, etc; at a certain price; available at a given
outlet or location and so on. A good ‘market offer’ is the one
which is developed after analysing the needs and preferences of
the potential buyers.
3. Customer Value: The buyers, however, make buying decisions on
their perceptions of the value of the product or service in satisfying
their need, in relation to its cost. A product will be purchased only if it
is perceived to be giving greatest benefit or value for the money.
4. Exchange Mechanism: The process of
marketing involves exchange of products and
services for money or something considered
valuable by the people. Exchange refers to the
process through which two or more parties
come together to obtain the desired product or
service from someone.
Customer Value
Customers are smart and they evaluate between benefits they are
acquiring and price they are paying for those benefits. Customer
value is difference between the values benefits the customer gains
from owning a product and cost of obtaining the product. Customer
value can be shown as an equation as below:
Customer Value = Total Customer Benefits – Total Customer Costs
Customer Satisfaction
A Customer is said to be satisfied if their expectations
match with the actual performance of the product.
Customer satisfaction differs from one person to
another; it’s an experience which is different for
different individuals. Satisfaction can only be
measured by comparing pre-purchase expectation
and post-purchase experience. The equation used to determine the level of a customer’s
satisfaction is: Customer Satisfaction=Experience – Expectation
