3. What is Marketing?
Marketing is as old as civilization. The basic objective
of marketing is to attract new customers by promising and
offering superior value and to retain and grow current
customers by delivering satisfaction. Marketing process
includes ways in which value can be created for the
customers to satisfy their requirements. It is an endless
series of actions and reactions between the customers and
the companies making attempt to create value for and satisfy
the needs of customers.
4. Paul Mazur, ““The creation and delivery of a standard of living to
society.”
Pyle, “Marketing comprises both buying & selling activities.”
American Marketing Association, “Marketing is an
organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders.”
Philip Kotler, “Marketing is a societal process by which
individuals and groups obtain what they need and want through creating,
offering, and freely exchanging products and services of value with
others.”
Peter Drucker, “Marketing is the human activity directed at
satisfying needs and wants through an exchange process.”
5. Features/Nature/Characteristics of
marketing
1- Exchange of goods, services with the medium of money
2- societal process
3- Start from identification of customer needs & wants
4- Customer oriented process
5- Focus on customer satisfaction
6- Creation and delivery of a standard of living
7- Multidisciplinary
8- Dynamic process
9- Marketing is both arts & science
10- Managerial function
6. NEEDS,WANTS AND DEMANDS
1-NEED : A state of felt deprivation of some
basic satisfaction (Food, Clothing, Shelter,
Belonging etc. )
2- WANTS : Wants are desires for specific
satisfiers of the deeper needs. Needs are few
and wants are many .
3- DEMANDS : are wants backed by------Ability
to buy and Willingness to buy
8. Functions/scope of Marketing
• Buying functions
• Assembling functions
• Selling functions
Functions of exchange
• Transportation
• Warehousing
• Inventory management
• Material handling services
Functions of physical distribution
• Financing
• Risk controlling & Insurance
• Standardisation & grading
• After sales service
Functions of Facilitating
9. Marketing Selling
1- Marketing is a modern universal
concept.
1- Selling is traditional & outdated
concept.
2- Marketing is consumer oriented. 2- Selling is product oriented.
3- The main aim of marketing is to
convert customer ‘need into product &
focus on to provide satisfaction of needs
& wants.
3- The main aim of selling is to convert
product into cash & maximise sales
volume.
4- Marketing involves emphasis on
market needs.
4- Selling involves emphasis on
company needs.
10. 5- The scope of marketing is wider i.e.
satisfaction, growth of business, increase market
share, etc.
5- The scope of selling is limited up to
conversation of goods into cash only.
6- Marketing involves that what our customer
want?, planning & development of product that
will satisfy those wants and determining the best
way of to price, promote, & distribute the
product.
6- Selling is the process whereby products are
received by the buyers from sellers against
certain sum of money.
7- The approach of marketing works on customer
is the king of market & product should meet his
wants & preferences.
7- The approach of selling works on once goods
are sold, seller doesn’t think about the customer.
8- Marketing focuses on General or specific
targeted group.
8- Selling activity involves only individuals or
small groups.
11. Marketing concepts
Marketing concept has undergone a drastic change over years. Earlier it
was production or later selling which was key to marketing idea but
moving ahead now these have given way to customer satisfaction rather
delight developing a modern marketing concept.
Traditional
marketing
concepts
Exchange
concept
Production
concept
Product
concept
Selling
concept
Modern
marketing
concepts
Marketing
concept
Societal
concept
Holistic
marketing
concept
12. 1- The Exchange/Barter concept-
a) Marketing involves exchange of products between buyer
& seller & only exchange is central idea of marketing.
b) Valuation on the based of requirements, later money.
c) Narrow concept
d) Unmet customer’s wants
e) Lack of marketing strategies, marketing mix,
satisfaction, innovation, etc.
13. 2- The production concept-
It holds that consumers will prefer products that are
widely available and inexpensive. Managers of production-
oriented business concentrate on achieving high production
efficiency, low costs, and mass distribution. The key questions
are given below.
a) Can we produce the item?
b) Can enough of it be produced?
It is necessary to produce large quantity at lower cost
Example- Chinese products
14. 3-The product concept
It proposes that consumers favour products that offer the
most quality, performance, or innovative features. The product
concept believes that consumers will favour products that offer
the most in quality, performance, and innovative features.
Continuous improvements in product and quality are essential for
companies that follow this concept.
Example- Maruti’s swift Dzire (LXI, VXI, VXI AMT, ZXI, ZXI AMT,
ZXI+, ZXI+AMT)
15. 4- The selling concept-
It holds that consumers and businesses, if left alone,
won’t buy enough of the organization’s product. The
organization must therefore undertake an aggressive selling and
promotion effort. The key questions are given below.
a) Can we sell the item?
b) Can we account enough for it?
The selling concept believes that consumers will not buy enough
of the company’s products unless it undertakes pressure selling
tactics and heavy promotion efforts. Buyers are believed to have
a buying inertia.
Example- Insurance policy
16. 5- The marketing concept-
The marketing concept holds that the key to achieving
organizational goals is being effective than competitors in
creating, delivering, and communicating superior customer
value to your chosen target markets. It believes that achieving
the company’s objectives depends on understanding the
needs and wants of target markets and delivering the desired
satisfaction in a better way than what the competitors are
doing. The customer is considered THE KING, and the
company produces and markets what the customer wants.
Example- Packed ITC’ Aashirvaad aata to fulfil requirement of
hygiene & nutrition
17. 6- Societal marketing concept-
Societal Marketing concept is based on the principle of
societal welfare. It emphasizes that an organization must make
strategic marketing decisions keeping in mind the consumer
wants, the organizational needs and most important the long
term interests of the society. Organizations are expected to
integrate three considerations while fostering marketing
strategies. These considerations include the following.
a) Society Human welfare (providing eco-friendly products,
recycling, health care product, etc.)
b) Consumer satisfaction
c) Earning profit
18. 7- Holistic marketing concept/ Modern
The trends and forces defining the 21st century are leading
business firms to a new set of beliefs and practices. This concept is
based on the development, design, and implementation of marketing
programs, processes and activities that recognizes their breadth and
interdependencies. Holistic marketing recognizes that “everything
matters” in marketing- and that a broad, integrated perspective is often
necessary. Holistic marketing is thus an approach that attempts to
recognize and reconcile the scope and complexities of marketing
activities.
Example- Five star hotels
