Introduction to Marketing

LECTURE OUTLINE
Understand some definitions of Marketing and marketing
management
Nature of Marketing
Scope of Marketing
Importance of Marketing
Functions of marketing
Definitions of marketing

In economic jargon "marketing" refers to "all the activities

involved in the creation of place, time, possession and
awareness utilities" .
Professor Glasser says : "Marketing in a free economy is
the skill of selecting and fulfilling consumer desires to
maximize the profitability per unit of capital employed in
the enterprise".
In the words of Professors Cundiff and Still : "Marketing is
the business process by which products are matched with market
and through which transfers of ownership are effected".
Theodore Levitt Says "Marketing is getting and keeping
the customer'
CONT…
Professor Philip Kotler has defined marketing: According to Harry L. Hansen:
"Marketing is the process of discovering and translating consumer needs and wants into
product and service specifications, creating demand for these products and services and
then, expanding the demand".

"Marketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating exchanging if products and value with others".

“Marketing management is the analysis, planning, implementation and control of

programmers designed to bring about desired exchanges with target markets for the
purpose of achieving organizational objectives.
The American Association of Marketing define marketing
management as the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods and services in order to create, exchange and satisfy
individual and organizational objectives.
Marketing involves the design of the products acceptable to
the consumers and the conduct of those activities which
facilitate the transfer of ownership between seller and buyer.
NATURE OF MARKETING

The characteristics speak of the very

nature of marketing.
1. It is Operational.
2. It is Customer Oriented.
3. It is Mutuality of Benefits.
4. It is Value Driven.
5. It is Proactive to the Environment .
6. It Covers Both Profit and Non-Profit Making Organizations.
It is Operational: That is, managers must think and act to achieve results.
Benefits of marketing will not emerge from a passive attitude to the exchange
process emphasizing the statement "no gains without pains".
It is Customer Oriented: That is, marketing firm is to be the keen observer
focusing its attention on needs of customers. Its effectiveness lies in finding
solutions to the challenges posed by these demands.
It is Mutuality of Benefits: Exchange of goods and services work and persist
because it is the mutual interest of both parties to continue. Both the
marketer and customer benefit through supply of quality goods and services
in return for profit.
It is Value Driven: The culture of the marketing firm are based on a desire to
build the business through meeting the needs and responding to the market
where the values lay down by firm's leaders are communicated to all those
involved in the firm.
It is Proactive to the Environment: A marketing firm is
a sub-system of a super-system, the environment. The
environment is external to the firm. The environmental
forces are ecology, technology, competition, physical
resources, legal-frame work, socioeconomic factors,
which are to be accepted by the marketing unit where it is
to be proactive and not reactive.
It Covers Both Profit and Non-Profit Making
Organizations: Marketing is not confined to only profit
making organizations but covers non-profit-making
organizations or charitable institutions that sell services
such as educational institutions, temples, hospitals, sports
clubs and so on.
Scope of Marketing

1. Study of consumer wants and needs.

2. Study of buyer behavior.
3. Product planning and development.
4. Distribution.
5. Promotion.
6. Consumer satisfaction.
7. Marketing control.
1. Study of Consumer wants and needs : Goods are produced to satisfy
human wants. Therefore the Marketer has to study the wants and
need of consumers. These wants and needs motivate consumers to
purchase goods and services.
2. Study of Buyer Behavior: Modern marketing emphasizes on the
study of buyer behavior. Analysis of the behavior pattern of the
customers is helpful for market segmentation and targeting.
3. Product Planning and Development : Product is the core of
marketing . Product planning and development starts with the
generation of product idea and ends with the development and
commercialization of the product. Product planning covers the
decisions like branding ,packaging ,labeling ,grading etc. and
expansion or contraction of existing product lines.
4. DISTRIBUTION : Study of marketing channels is one of the major areas of
marketing . Goods are to be distributed at the minimum possible cost to the largest
number of consumers. Thus suitable distribution channels should be selected.

5. PROMOTION: It includes advertising, sales promotion and personal selling. These

promotional activities are very essential for the accomplishment of marketing goal.

6. CONSUMER SATISFACTION : In the modern world consumer is the king. The

consumers determine what should be the business and where it should be prosper.
Thus every marketer should importance to consumer satisfaction. In other words
consumer satisfaction is one the major goals of marketing

7. MARKETING CONTROL: Marketing also covers marketing control through

marketing audit and annual reports.
1. Marketing Helps in Transfer, Exchange and Movement of Goods:
Marketing is very helpful in transfer, exchange and movement of goods.
Goods and services are made available to customers through various
intermediaries’ viz., wholesalers and retailers etc.
2. Marketing Is Helpful In Raising And Maintaining The Standard Of
Living Of The Community: By making available the uninterrupted
supply of goods and services to consumers at a reasonable price,
marketing has played an important role in raising and maintaining living
standards of the community.
3. Marketing Creates Employment: The major marketing functions are
buying, selling, financing, transport, warehousing, risk bearing and
standardization, etc. In each such function different activities are
performed by a large number of individuals and bodies.
4. Marketing as a Source of Income and Revenue: The performance of
marketing function is all important, because it is the only way through
which the concern could generate revenue or income and bring in profits.
5. Marketing Acts as a Basis for Making Decisions: A businessman is
confronted with many problems in the form of what, how, when, how much
and for whom to produce? Marketing has emerged as new specialized
activity along with production. With the help of marketing techniques a
producer can regulate his production accordingly.

6. Marketing Acts as a Source of New Ideas: Marketing is an instrument of

measurement, gives scope for understanding this new demand pattern and
thereby produce and make available the goods accordingly.

7. Marketing Is Helpful In Development Of An Economy: Adam Smith has

remarked that “nothing happens in our country until somebody sells
something”. Marketing is the king pin that sets the economy revolving.
FUNCTIONS OF MARKETING
(1) FUNCTIONS OF RESEARCH:-

Marketing Research.
Product design and development.

(2) FUNCTIONS OF Exchange:-

Buying and assembling.

Selling.

(3) FUNCTIONS OF Physical treatment:-

Standardization, Grading and Branding.
Packaging.
Storage.
Transportation
Cont…

(4) FUNCTIONS OF FACILITATE EXCHANGE:-

Personal selling.
Advertising.
Pricing.
Financing.
Risk-taking.