chapter
10
Marketing
Learning Objectives Where Do Companies Do Their Business?
In the Markets or in the Society?
After studying this chapter,
It is an undisputed fact that a company’s survival
you should be able to: does not depend upon its consumers alone, but a
diverse set of stakeholders like the government,
¾¾ explain the meaning of religious leaders, social activists, NGOs, media,
‘marketing’; etc. Hence, earning the satisfaction of these
segments is also as imperative as they add to the
¾¾ distinguish between power of the brand by word of mouth.
‘marketing’ and The social concern adds to the strength of the
‘selling’; brand. Corporates that embraced the deepest
social values, have been successful in building
¾¾ l i s t o u t i m p o r t a n t powerful brand, and, eventually, robust customer
functions of marketing; relationship. The area of corporate social justice
fall under two broad categories. The issues such
¾¾ examine the role of as the nutrition of children, child care, old-age
marketing in the homes, amelioration of hunger, offering aid to
development of an those affected by natural calamities, etc. needing
economy in a firm, instant attention with humanitarian perspective,
to the society and to comes under the first category.
consumers; The issues that contribute to making society a
pleasant place to live in the long run, may be grouped
¾¾ explain the elements of under the second category. The issues which come
marketing-mix; under this category are health awareness and aid,
education, environmental protection, women’s
¾¾ classify products into employment and empowerment, preventing unjust
different categories; discriminations (on the basis of caste, community,
religion, ethnicity, race, and sex), eradication
¾¾ analyse the factors of poverty through employment, preservation
affecting price of a of culture, values, and ethics, contribution to
product; research, etc.
Procter and Gamble’s (P&G) philosophy is that it
¾¾ l i s t o u t t h e t y p e s should lead the industry in implementing a global
of channels of environmental programme. P&G is one of the
distribution; and first companies in the world to actively study the
influence of consumer products on the environment
¾¾ e x p l a i n t h e m a j o r and introduce concentrated products, recycled
tools of promotion, viz. plastic bottles, and refill packages to the industry.
P&G contributes to sustainable development
advertising, personal
and addresses environmental and social issues
selling, sales promotion connected with its products and services.
and publicity.
Source: Adapted from ‘Effective Executive’
Rationalised 2023-24
Ch_10.indd 242 10-08-2022 10:04:27
, Marketing
243
The term marketing has been described pricing are required. All these activities
by different people in different ways. are referred to as marketing activities.
Some people believe that marketing is Thus, ‘merchandising’, ‘selling’ and
same as ‘shopping’. Whenever they go distribution are all parts of a large
out for shopping of certain products or number of activities undertaken by
services, they describe it as marketing. a firm, which are collectively called
There are some other people who marketing.
confuse marketing with ‘selling’ and It may be noted here that marketing
feel that marketing activity starts is not merely a post- production
after a product or service has been activity. It includes many activities
produced. Some people describe it to that are performed even before goods
mean ‘merchandising’ or designing a are actually produced, and continue
product. All these descriptions may be even after the goods have been
partly correct but marketing is a much sold. For example, activities such
broader concept, which is discussed as identification of customer needs,
as follows: collection of information for developing
Traditionally, marketing has been the product, designing suitable product
described in terms of its functions or package and giving it a brand name are
activities. In this respect, marketing performed before commencement of
has been referred to as performance of the actual production. Similarly, many
business activities that direct the flow follow up activities are required for
of goods and services from producers maintaining good customer relations
to consumers. for procuring repeat sale.
As we know, most of the In modern times, emphasis is placed
manufacturing firms do not produce on describing marketing as a social
goods for their own consumption process. It is a process whereby people
but for the consumption or use exchange goods and services for money
by others. Therefore, to move or for something of value to them. Taking
the goods and services from the the social perspective, Phillip Kolter has
producer to consumers, a number of defined marketing as, “a social process
activities, such as product designing by which individual groups obtain what
or merchandising, packaging, they need and want through creating
warehousing, transportation, offerings and freely exchanging products
branding, selling, advertising and and services of value with others”.
“Business is not financial science, it’s about trading, buying and selling. It’s about
creating a product or service so good that people will pay for it.”
— Anta Roddick
“Marketing takes a day to learn. Unfortunately it takes time to master.”
— Philip Kotler
Rationalised 2023-24
Ch_10.indd 243 10-08-2022 10:04:27
, BUSINESS STUDIES
244
Understanding Market
In the traditional sense, the term ‘market’ refers to the place where buyers and sellers
gather to enter into transactions involving the exchange of goods and services. It is
in this sense that this term is being used in day to day language, even today. The
other ways in which this term is being used is in the context of a product market
(cotton market, gold or share market), geographic market (national and international
market), type of buyers (consumer market and industrial market) and the quantity
of goods transacted (retail market and wholesale market).
But in modern marketing sense, the term market has a broader meaning. It refers
to a set of actual and potential buyers of a product or service. For example, when a
fashion designer designs a new dress and offers it for exchange, all the people who
are willing to buy and offer some value for it can be stated to be the market for that
dress. Similarly, market for fans or bicycles or electric bulbs or shampoos refers to
all the actual and potential buyers for these products.
Thus, marketing is a social process Needs are basic to human beings
where in people interact with others, and do not pertain to a particular
in order to persuade them to act in product. Wants, on the other hand,
a particular way, say to purchase are culturally defined objects that are
a product or a service, rather than potential satisfiers of needs. In other
forcing them to do so. A careful analysis words, human needs shaped by such
of the definition shows the following factors as culture, personality and
important features of marketing: religion are called wants. A basic need
1. Needs and Wants: The process for food, for example, may take various
of marketing helps individuals and forms such as want for dosa and rice
groups in obtaining what they need for a South Indian and chapatti and
and want. Thus, the primary reason or vegetables for a North Indian person.
motivation for people to engage in the A marketer’s job in an organisation
process of marketing is to satisfy some is to identify needs of the target
of their needs or wants. In other words, customers and develop products and
the focus of the marketing process is services that satisfy such needs.
on satisfaction of the needs and wants 2. Creating a Market Offering: On
of individuals and organisations. the part of the marketers, the effort
A need is a state of felt deprivation involves creation of a ‘market offering.
or feeling of being deprived of Market offering refers to a complete
something. If unsatisfied, it leaves a offer for a product or service, having
person unhappy and uncomfortable. given features like size, quality, taste,
For example, on getting hungry, we etc; at a certain price; available at a
become uncomfortable and start given outlet or location and so on. Let
looking for objects that are capable of us say the offer is for a cell phone,
satisfying our hunger. available in four different versions,
Rationalised 2023-24
Ch_10.indd 244 10-08-2022 10:04:27
, Marketing
245
on the basis of certain features such offering the same by giving something
as size of memory, television viewing, in return. For example, a person
internet, camera, etc., for a given price, feeling hungry may get food by offering
say between ` 5,000 and ` 20,000 to give money or some other product
(depending on the model selected), or service in return to someone who
available for sale at say firm’s exclusive is willing to accept the same for food.
shops in and around all metropolitan In the modern world, goods are
cities in the country. A good ‘market produced at different places and are
offer’ is the one which is developed after distributed over a wide geographical
analysing the needs and preferences of area through various middlemen,
the potential buyers. involving exchanges at different levels
3. Customer Value: The process of distribution. Exchange is, therefore,
of marketing facilitates exchange of referred to as the essence of marketing.
products and services between the For any exchange to take place, it is
buyers and the sellers. The buyers, important that the following conditions
however, make buying decisions on are satisfied:
their perceptions of the value of the (i) Involvement of at least two parties
product or service in satisfying their viz., the buyer and the seller.
need, in relation to its cost. A product (ii) Each party should be capable
will be purchased only if it is perceived of offering something of value to
to be giving greatest benefit or value the other. For example, the seller
for the money. The job of a marketer, offers a product and the buyer,
therefore, is to add to the value of the money.
product so that the customers prefer it
(iii) Each party should have the ability
in relation to the competing products
to communicate and deliver the
and decide to purchase it.
product or service. No exchange
4. Exchange Mechanism: The process can take place if the buyers and
of marketing works through the sellers are not able to communicate
exchange mechanism. The individuals with each other or if they can not
(buyers and sellers) obtain what they deliver something of value to
need and want through the process of
the other.
exchange. In other words, the process
of marketing involves exchange of (iv) Each party should have freedom to
products and services for money or accept or reject other party’s offer.
something considered valuable by (v) The parties should be willing to
the people. enter into transaction with each
Exchange refers to the process other. Thus, the acceptance or
through which two or more parties rejection of the offer takes place on
come together to obtain the desired voluntary basis rather than on the
product or service from someone, bases of any compulsion.
Rationalised 2023-24
Ch_10.indd 245 10-08-2022 10:04:27
10
Marketing
Learning Objectives Where Do Companies Do Their Business?
In the Markets or in the Society?
After studying this chapter,
It is an undisputed fact that a company’s survival
you should be able to: does not depend upon its consumers alone, but a
diverse set of stakeholders like the government,
¾¾ explain the meaning of religious leaders, social activists, NGOs, media,
‘marketing’; etc. Hence, earning the satisfaction of these
segments is also as imperative as they add to the
¾¾ distinguish between power of the brand by word of mouth.
‘marketing’ and The social concern adds to the strength of the
‘selling’; brand. Corporates that embraced the deepest
social values, have been successful in building
¾¾ l i s t o u t i m p o r t a n t powerful brand, and, eventually, robust customer
functions of marketing; relationship. The area of corporate social justice
fall under two broad categories. The issues such
¾¾ examine the role of as the nutrition of children, child care, old-age
marketing in the homes, amelioration of hunger, offering aid to
development of an those affected by natural calamities, etc. needing
economy in a firm, instant attention with humanitarian perspective,
to the society and to comes under the first category.
consumers; The issues that contribute to making society a
pleasant place to live in the long run, may be grouped
¾¾ explain the elements of under the second category. The issues which come
marketing-mix; under this category are health awareness and aid,
education, environmental protection, women’s
¾¾ classify products into employment and empowerment, preventing unjust
different categories; discriminations (on the basis of caste, community,
religion, ethnicity, race, and sex), eradication
¾¾ analyse the factors of poverty through employment, preservation
affecting price of a of culture, values, and ethics, contribution to
product; research, etc.
Procter and Gamble’s (P&G) philosophy is that it
¾¾ l i s t o u t t h e t y p e s should lead the industry in implementing a global
of channels of environmental programme. P&G is one of the
distribution; and first companies in the world to actively study the
influence of consumer products on the environment
¾¾ e x p l a i n t h e m a j o r and introduce concentrated products, recycled
tools of promotion, viz. plastic bottles, and refill packages to the industry.
P&G contributes to sustainable development
advertising, personal
and addresses environmental and social issues
selling, sales promotion connected with its products and services.
and publicity.
Source: Adapted from ‘Effective Executive’
Rationalised 2023-24
Ch_10.indd 242 10-08-2022 10:04:27
, Marketing
243
The term marketing has been described pricing are required. All these activities
by different people in different ways. are referred to as marketing activities.
Some people believe that marketing is Thus, ‘merchandising’, ‘selling’ and
same as ‘shopping’. Whenever they go distribution are all parts of a large
out for shopping of certain products or number of activities undertaken by
services, they describe it as marketing. a firm, which are collectively called
There are some other people who marketing.
confuse marketing with ‘selling’ and It may be noted here that marketing
feel that marketing activity starts is not merely a post- production
after a product or service has been activity. It includes many activities
produced. Some people describe it to that are performed even before goods
mean ‘merchandising’ or designing a are actually produced, and continue
product. All these descriptions may be even after the goods have been
partly correct but marketing is a much sold. For example, activities such
broader concept, which is discussed as identification of customer needs,
as follows: collection of information for developing
Traditionally, marketing has been the product, designing suitable product
described in terms of its functions or package and giving it a brand name are
activities. In this respect, marketing performed before commencement of
has been referred to as performance of the actual production. Similarly, many
business activities that direct the flow follow up activities are required for
of goods and services from producers maintaining good customer relations
to consumers. for procuring repeat sale.
As we know, most of the In modern times, emphasis is placed
manufacturing firms do not produce on describing marketing as a social
goods for their own consumption process. It is a process whereby people
but for the consumption or use exchange goods and services for money
by others. Therefore, to move or for something of value to them. Taking
the goods and services from the the social perspective, Phillip Kolter has
producer to consumers, a number of defined marketing as, “a social process
activities, such as product designing by which individual groups obtain what
or merchandising, packaging, they need and want through creating
warehousing, transportation, offerings and freely exchanging products
branding, selling, advertising and and services of value with others”.
“Business is not financial science, it’s about trading, buying and selling. It’s about
creating a product or service so good that people will pay for it.”
— Anta Roddick
“Marketing takes a day to learn. Unfortunately it takes time to master.”
— Philip Kotler
Rationalised 2023-24
Ch_10.indd 243 10-08-2022 10:04:27
, BUSINESS STUDIES
244
Understanding Market
In the traditional sense, the term ‘market’ refers to the place where buyers and sellers
gather to enter into transactions involving the exchange of goods and services. It is
in this sense that this term is being used in day to day language, even today. The
other ways in which this term is being used is in the context of a product market
(cotton market, gold or share market), geographic market (national and international
market), type of buyers (consumer market and industrial market) and the quantity
of goods transacted (retail market and wholesale market).
But in modern marketing sense, the term market has a broader meaning. It refers
to a set of actual and potential buyers of a product or service. For example, when a
fashion designer designs a new dress and offers it for exchange, all the people who
are willing to buy and offer some value for it can be stated to be the market for that
dress. Similarly, market for fans or bicycles or electric bulbs or shampoos refers to
all the actual and potential buyers for these products.
Thus, marketing is a social process Needs are basic to human beings
where in people interact with others, and do not pertain to a particular
in order to persuade them to act in product. Wants, on the other hand,
a particular way, say to purchase are culturally defined objects that are
a product or a service, rather than potential satisfiers of needs. In other
forcing them to do so. A careful analysis words, human needs shaped by such
of the definition shows the following factors as culture, personality and
important features of marketing: religion are called wants. A basic need
1. Needs and Wants: The process for food, for example, may take various
of marketing helps individuals and forms such as want for dosa and rice
groups in obtaining what they need for a South Indian and chapatti and
and want. Thus, the primary reason or vegetables for a North Indian person.
motivation for people to engage in the A marketer’s job in an organisation
process of marketing is to satisfy some is to identify needs of the target
of their needs or wants. In other words, customers and develop products and
the focus of the marketing process is services that satisfy such needs.
on satisfaction of the needs and wants 2. Creating a Market Offering: On
of individuals and organisations. the part of the marketers, the effort
A need is a state of felt deprivation involves creation of a ‘market offering.
or feeling of being deprived of Market offering refers to a complete
something. If unsatisfied, it leaves a offer for a product or service, having
person unhappy and uncomfortable. given features like size, quality, taste,
For example, on getting hungry, we etc; at a certain price; available at a
become uncomfortable and start given outlet or location and so on. Let
looking for objects that are capable of us say the offer is for a cell phone,
satisfying our hunger. available in four different versions,
Rationalised 2023-24
Ch_10.indd 244 10-08-2022 10:04:27
, Marketing
245
on the basis of certain features such offering the same by giving something
as size of memory, television viewing, in return. For example, a person
internet, camera, etc., for a given price, feeling hungry may get food by offering
say between ` 5,000 and ` 20,000 to give money or some other product
(depending on the model selected), or service in return to someone who
available for sale at say firm’s exclusive is willing to accept the same for food.
shops in and around all metropolitan In the modern world, goods are
cities in the country. A good ‘market produced at different places and are
offer’ is the one which is developed after distributed over a wide geographical
analysing the needs and preferences of area through various middlemen,
the potential buyers. involving exchanges at different levels
3. Customer Value: The process of distribution. Exchange is, therefore,
of marketing facilitates exchange of referred to as the essence of marketing.
products and services between the For any exchange to take place, it is
buyers and the sellers. The buyers, important that the following conditions
however, make buying decisions on are satisfied:
their perceptions of the value of the (i) Involvement of at least two parties
product or service in satisfying their viz., the buyer and the seller.
need, in relation to its cost. A product (ii) Each party should be capable
will be purchased only if it is perceived of offering something of value to
to be giving greatest benefit or value the other. For example, the seller
for the money. The job of a marketer, offers a product and the buyer,
therefore, is to add to the value of the money.
product so that the customers prefer it
(iii) Each party should have the ability
in relation to the competing products
to communicate and deliver the
and decide to purchase it.
product or service. No exchange
4. Exchange Mechanism: The process can take place if the buyers and
of marketing works through the sellers are not able to communicate
exchange mechanism. The individuals with each other or if they can not
(buyers and sellers) obtain what they deliver something of value to
need and want through the process of
the other.
exchange. In other words, the process
of marketing involves exchange of (iv) Each party should have freedom to
products and services for money or accept or reject other party’s offer.
something considered valuable by (v) The parties should be willing to
the people. enter into transaction with each
Exchange refers to the process other. Thus, the acceptance or
through which two or more parties rejection of the offer takes place on
come together to obtain the desired voluntary basis rather than on the
product or service from someone, bases of any compulsion.
Rationalised 2023-24
Ch_10.indd 245 10-08-2022 10:04:27
