Market

A market is a place where parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be physical
like a retail outlet, where people meet face-to-face, or virtual like an online market, where
there is no direct physical contact between buyers and sellers.

Marketing

Marketing refers to activities a company undertakes to promote the buying or selling of a

product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a
company

Scopes of Marketing
Marketing being a part of social science is highly dynamic and complex in nature. The rapid
changes in various sectors have brought great changes in the concept of marketing.
Traditionally, marketing was concerned with buying and selling of goods and services only
but now its scope has widened and it encompasses a range of activities from consumer
satisfaction to consumer delight and management of customer relationship.
1. Study of Consumer wants and need
Goods are purchase to satisfy consumer wants. Therefore study is conducted to satisfy
consumer needs and wants. These needs and wants motivates customer to purchase.
2. Study of consumer behavior
A marketer performs study of consumer behavior. Analysis of buyer behavior helps
marketers in market segmentation and targeting
3. Product Planning
A product refers to a bundle of benefits that offers satisfaction to the consumers. Product
planning starts with the generation of the idea and continues until the product is ready to
be launched in the market. To create a successful product the company must understand
the needs of the consumer and the currently available competition in the market.
4. Product design
Product design is the fore most important elements in marketing the communication needs
& problems of the consumer have to be considered before marketing a new product design.
5. Implementation of product
Once the decision is finalized about the design of the product more focus should be there on
communication with the production department regarding the implementation of product
features.
6. Pricing of Product
Pricing is the most important aspect of the product because it only decides the major buying
decision of the consumer. So if the product is very new to the market correct & affordable
pricing should be done.
7. Selection of Layout
The layout is the place where actually the product /services will be availed so more focus
should be done on the exact location and layout.
8. Publicity of the product
Publicity means communication about the product and services for creating awareness &
demand for the product by publicity & Advertisement.
9. Distribution channel
Distribution channel means the number of media t or like whole-sellers, Retailers,
distributors, Agent who all are involved in the marketing channel.
10. Selling of Product
Selling involves the actual challenge of marketing. The selling of products and services
involves different strategies like distribution through stores, salesmen, Advertisements,
Exhibitions, trade fairs, etc.

11. Consumer Satisfaction

The productor service offered must satisfy consumer. Consumer satisfaction is the main
objective of marketing.

12. Collecting the Feedback

This begins after the product is marketed and sold collecting feedback regarding
satisfaction or dissatisfaction related features like price, to make availability etc it is to
make changes in the marketing mix

Importance of Marketing
1. Marketing informs
To attract consumers in a crowded marketplace, your target audience needs to know why
they should choose your business over someone else’s. This is where marketing comes in to
educate current and potential customers about your business and how it serves a need they
have.
The content on your website that communicates your business’s mission, product
demonstration videos you post, photos you display that show exactly what your products
look like — elements like these let prospective customers know who you are and what
makes you unique.
2. Marketing engages
It’s one thing to offer a superior in-person experience or an easy online shopping journey.
But marketing keeps your business in people’s minds after a transaction is over — and
before they need you again.
To turn first-time customers into lifelong fans who will sustain your business, you have to
establish and build relationships with the people who’ve interacted with your business.
Sending post-purchase follow-up emails, replying to customers on Twitter and Facebook,
and mailing out postcards with special offers or information on new services are just a few
of the ways that marketing can help you stay in touch with your target audience.
3. Marketing builds reputations
As a business owner or aspiring entrepreneur, you likely already understand how
important your reputation is to your success. It truly can be the deciding factor in whether
or not a consumer chooses to reach out to you or one of your competitors. Because
marketing spreads the word about your business, it’s a major factor in the reputation your
business takes on. Strong, professional marketing indicates that you’re a reputable
business. The connection is undeniable.
Whether it’s a well-designed email campaign, high-quality images in all of your marketing
materials, or engaging website copy that reflects your unique brand voice, marketing can
help you establish credibility, build trust and engender goodwill toward your company.
4. Marketing sells
It’s simple logic — you can’t make a sale if no one knows about your products or services.
And while setting up shop in your neighborhood may bring in some walk-in business,
marketing extends your reach and draws attention to what you’re selling so that people can
buy it.
Emails showcasing new releases, social media posts alerting customers to an upcoming sale
and online business listings that help local consumers find you are a few examples of how
you can use marketing to build the kind of awareness that generates revenue.

5. Marketing grows businesses

This function of marketing is partly the culmination of the first four. Strategic marketing
often results in growth for your business. If you successfully educate customers, keep them
engaged, create a strong reputation in their minds and smartly sell to them, your business
will most likely do well. On top of that, most (if not all) businesses thrive on the acquisition
of new customers. Marketing is how you attract those customers in the first place.

PROCESS OF MARKETING

The marketing process involves five steps: The first four steps create value for
customers and build strong customer relationships in order to capture value from
customers in return.
Stage – 1:- Marketers must assess and understand the marketplace and customers
needs and demands.
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Stage – 2:- Marketers design a customer driven marketing strategy with the goal of
getting, keeping and growing target customers. This stage includes market
segmentation, targeting and position.
Stage -3 :- This step involves designing a marketing program that actually delivers
the superior value. This step includes designing products and services, pricing the
product, distribution and finally promoting the product. .
Stage – 4:-The first three steps provide the basis for the fourth step that is building
profitable customer relationships and creating customer satisfaction.
Stage -5:- And finally, the company reaps the reward of strong customer relationship
and satisfaction by capturing value from customers.
Marketing Mix

The marketing mix refers to the set of actions, or tactics, that a company uses to promote
its brand or product in the market. The 4Ps make up a typical marketing mix-Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several
other Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Understanding Marketing Mix
The four Ps classifications for developing an effective marketing strategy was first
introduced in 1960 by marketing professor and author E. Jerome McCarthy. Depending on
the industry and the target of the marketing plan, marketing managers may take various
approaches to each of the four Ps. Each element can be examined independently, but in
practice, they often are often dependent on one another.

Product
This represents an item or service designed to satisfy customer needs and wants. To
effectively market a product or service, it's important to identify what differentiates it from
competing products or services. It's also important to determine if other products or
services can be marketed in conjunction with it.

Price
The sale price of the product reflects what consumers are willing to pay for it. Marketing
professionals need to consider costs related to research and development, manufacturing,
marketing, and distribution—otherwise known as cost-based pricing. Pricing based
primarily on consumers' perceived quality or value is known as value-based pricing.
Place
The type of product sold is important to consider when determining areas of distribution.
Basic consumer products, such as paper goods, often are readily available in many stores.
Premium consumer products, however, typically are available only in select stores. Another
consideration is whether to place a product in a physical store, online, or both.
Promotion
Joint marketing campaigns also are called a promotional mix. Activities might include
advertising, sales promotion, personal selling, and public relations. A key consideration
should be for the budget assigned to the marketing mix. Marketing professionals carefully
construct a message that often incorporates details from the other three Ps when trying to
reach their target audience. Determination of the best mediums to communicate the
message and decisions about the frequency of the communication also are important.
All the elements of the marketing mix influence each other. They make up the business plan
for a company and handled right, can give it great success. But handled wrong and the
business could take years to recover. The marketing mix needs a lot of understanding,
market research and consultation with several people, from users to trade to manufacturing
and several others.

Marketing Environment?
Marketing Environment is the combination of external and internal factors and forces which
affect the company's ability to establish a relationship and serve its customers. The
marketing environment of a business consists of an internal and an external environment.
Marketing Environment is the combination of external and internal factors and forces
which affect the company’s ability to establish a relationship and serve its customers.
The marketing environment is made up of the internal and external environment of the
business. While the internal environment can be controlled, the business has very less or no
control over the external environment.
Internal Environment
The internal environment of the business includes all the forces and factors inside the
organization which affect its marketing operations. These components can be grouped
under the Five Ms of the business, which are:
 Men
 Machine
 Material
 Money
 Market

The internal environment is under the control of the marketer and can be changed with the
changing external environment. Nevertheless, the internal marketing environment is as
important for the business as the external marketing environment. This environment
includes the sales department, marketing department, the manufacturing unit, the human
resource department, etc.
External Environment
The external environment constitutes factors and forces which are external to the business
and on which the marketer has little or no control. The external environment is of two
types:
Micro Environment
The micro-component of the external environment is also known as the task environment.
It comprises of external forces and factors that are directly related to the business. These
include suppliers, market intermediaries, customers, partners, competitors and the public
▪Suppliers include all the parties which provide resources needed by the organization.

▪Market intermediaries include parties involved in distributing the product or service of

the organization.
▪Partners are all the separate entities like advertising agencies, market research
organizations, banking and insurance companies, transportation companies, brokers, etc.
which conduct business with the organization.
▪Customers comprise of the target group of the organization.

▪Competitors are the players in the same market who targets similar customers as that of
the organization.
▪Public is made up of any other group that has an actual or potential interest or affects the
company’s ability to serve its customers.

Macro Environment
The macro component of the marketing environment is also known as the broad
environment. It constitutes the external factors and forces which affect the industry as a
whole but don’t have a direct effect on the business. The macro-environment can be divided
into 6 parts.

Demographic Environment
The demographic environment is made up of the people who constitute the market. It is
characterized as the factual investigation and segregation of the population according to
their size, density, location, age, gender and occupation.
Economic Environment
The economic environment constitutes factors which influence customers’ purchasing
power and spending patterns. These factors include the GDP, GNP, interest rates, inflation,
income distribution, government funding and subsidies, and other major economic
variables.

Physical Environment
The physical environment includes the natural environment in which the business operates.
This includes the climatic conditions, environmental change, accessibility to water and raw
materials, natural disasters, pollution etc.

Technological Environment
The technological environment constitutes innovation, research and development in
technology, technological alternatives, innovation inducements also technological barriers
to smooth operation. Technology is one of the biggest sources of threats and opportunities
for the organization and it is very dynamic.

Political-Legal Environment
The political &legal environment includes laws and government’s policies prevailing in the
country. It also includes other pressure groups and agencies which influence or limit the
working of the industry and/or the business in the society.

Social-Cultural Environment
The social-cultural aspect of the macro-environment is made up of the lifestyle, values,
culture, narrow-mindedness and beliefs of the people. This differs in different regions.

Importance of Marketing Environment

Every business, no matter how big or small, operates within the marketing environment. Its
present and future existence, profits, image, and positioning depend on its internal and
external environment. The business environment is one of the most dynamic aspects of the
business. In order to operate and stay in the market for long, one has to understand and
analyze the marketing environment and its components properly.

 Essential for planning

An understanding of the external and internal environment is essential for planning for the
future. A marketer needs to be fully aware of the current scenario, dynamism, and future
predictions of the marketing environment if he wants his plans to succeed.
 Understanding Customers
Thorough knowledge of the marketing environment helps marketers acknowledge and
predict what the customer actually wants. In-depth analysis of the marketing environment
reduces (and even removes) the noise between the marketer and customers and helps the
marketer to understand consumer behaviour better.
 Tapping Trends:
Breaking into new markets and capitalizing on new trends requires a lot of insight about the
marketing environment. The marketer needs to research about every aspect of the
environment to create a foolproof plan.
 Threats and Opportunities
Sound knowledge of the market environment often gives a first-mover advantage to the
marketer as he makes sure that his business is safe from future threats and taps the future
opportunities.
 Understanding the Competitors
Every place has different players fighting for the same spot. A better understanding of the
marketing environment allows the marketer to understand more about the competitions
and about what advantages do the competitors have over his business and vice versa.