UNIT-1
Introduction of Marketing
This lesson discusses the fundamental concepts related to customers.
Who is a customer?
We all are a part of the global market. Everybody is a customer as each
one of us in some way or the other directly or indirectly purchase
various goods and services.
Meaning of market:
A market is a place which allows the purchaser and the seller to invent and gather
information and lets them carry out exchange of various products and services. In other
words, the Meaning of Market refers to a place where the trading of goods takes place.
The place can be a market place or a street market.
Definition of ‘Marketing Management’
• According to Philip Kotler,” Marketing is analysing, organizing, planning, and controlling of
the firm’s customer impinging resources, policies, activities with a view to satisfy the needs
and wants of chosen groups at a profit”
Marketing is the process of “creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large,” according
to the American Marketing Association.
Nature of Marketing
1. Marketing is an Economic Function
Marketing embraces all the business activities involved in getting goods and services,
from the hands of producers into the hands of final consumers. The business steps through
which goods progress on their way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers
In the process of marketing the ownership of goods transfers from the seller to the
purchaser or from producer to the end-user.
3. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise, institution, or organization
interacts with the customers and stakeholders with the objective to earn a profit, satisfy
customers, and manage relationships. It is the performance of business activities that direct
the flow of goods and services from producer to consumer or user.
4. Marketing is a Managerial Function
According to the managerial or systems approach - "Marketing is the combination of
activities designed to produce profit through ascertaining, creating, stimulating, and
satisfying the needs and/or wants of a selected segment of the market."
5. Marketing is a Social Process
, Marketing is the delivery of a standard of living to society. According to Cunningham and
Cunningham (1981) societal marketing performs three essential functions: -
1. Knowing and understanding the consumer's changing needs and wants;
2. Efficiently and effectively managing the supply and demand of products and services;
and
3. Efficient provision of distribution and payment processing systems.
6. Marketing is a philosophy based on consumer orientation and satisfaction
7. Marketing had dual objectives - profit-making and consumer satisfaction
Scope of Marketing
1. Study of Consumer Wants and Needs
Goods are produced to satisfy consumer wants. Therefore the study is done to identify
consumer needs and wants. These needs and wants motivate the consumer to purchase.
2. Study of Consumer Behaviour
Marketers perform a study of consumer behavior. Analysis of buyer behavior helps marketers
in market segmentation and targeting.
3. Production Planning and Development
Product planning and development starts with the generation of product ideas and ends with
product development and commercialization. Product planning includes everything from
branding and packaging to product line expansion and contraction.
4. Pricing Policies
The marketer has to determine pricing policies for their products. Pricing policies differ from
product to product. It depends on the level of competition, product life cycle, marketing
goals, and objectives, etc.
5. Distribution
The study of distribution channels 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. The right promotion
mix is crucial in the accomplishment of marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy the consumer. Consumer satisfaction is the major
objective of marketing.
8. Marketing Control
The marketing audit is done to control the marketing activities.
Marketing Mix - A mixture of several ideas and plans followed by a marketing
representative to promote a particular product or brand is called marketing mix. Several
concepts and ideas combined together to formulate final strategies helpful in making a brand
popular amongst the masses form marketing mix.
Introduction of Marketing
This lesson discusses the fundamental concepts related to customers.
Who is a customer?
We all are a part of the global market. Everybody is a customer as each
one of us in some way or the other directly or indirectly purchase
various goods and services.
Meaning of market:
A market is a place which allows the purchaser and the seller to invent and gather
information and lets them carry out exchange of various products and services. In other
words, the Meaning of Market refers to a place where the trading of goods takes place.
The place can be a market place or a street market.
Definition of ‘Marketing Management’
• According to Philip Kotler,” Marketing is analysing, organizing, planning, and controlling of
the firm’s customer impinging resources, policies, activities with a view to satisfy the needs
and wants of chosen groups at a profit”
Marketing is the process of “creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large,” according
to the American Marketing Association.
Nature of Marketing
1. Marketing is an Economic Function
Marketing embraces all the business activities involved in getting goods and services,
from the hands of producers into the hands of final consumers. The business steps through
which goods progress on their way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers
In the process of marketing the ownership of goods transfers from the seller to the
purchaser or from producer to the end-user.
3. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise, institution, or organization
interacts with the customers and stakeholders with the objective to earn a profit, satisfy
customers, and manage relationships. It is the performance of business activities that direct
the flow of goods and services from producer to consumer or user.
4. Marketing is a Managerial Function
According to the managerial or systems approach - "Marketing is the combination of
activities designed to produce profit through ascertaining, creating, stimulating, and
satisfying the needs and/or wants of a selected segment of the market."
5. Marketing is a Social Process
, Marketing is the delivery of a standard of living to society. According to Cunningham and
Cunningham (1981) societal marketing performs three essential functions: -
1. Knowing and understanding the consumer's changing needs and wants;
2. Efficiently and effectively managing the supply and demand of products and services;
and
3. Efficient provision of distribution and payment processing systems.
6. Marketing is a philosophy based on consumer orientation and satisfaction
7. Marketing had dual objectives - profit-making and consumer satisfaction
Scope of Marketing
1. Study of Consumer Wants and Needs
Goods are produced to satisfy consumer wants. Therefore the study is done to identify
consumer needs and wants. These needs and wants motivate the consumer to purchase.
2. Study of Consumer Behaviour
Marketers perform a study of consumer behavior. Analysis of buyer behavior helps marketers
in market segmentation and targeting.
3. Production Planning and Development
Product planning and development starts with the generation of product ideas and ends with
product development and commercialization. Product planning includes everything from
branding and packaging to product line expansion and contraction.
4. Pricing Policies
The marketer has to determine pricing policies for their products. Pricing policies differ from
product to product. It depends on the level of competition, product life cycle, marketing
goals, and objectives, etc.
5. Distribution
The study of distribution channels 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. The right promotion
mix is crucial in the accomplishment of marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy the consumer. Consumer satisfaction is the major
objective of marketing.
8. Marketing Control
The marketing audit is done to control the marketing activities.
Marketing Mix - A mixture of several ideas and plans followed by a marketing
representative to promote a particular product or brand is called marketing mix. Several
concepts and ideas combined together to formulate final strategies helpful in making a brand
popular amongst the masses form marketing mix.
