MODULE-1

INTRODUCTION TO MARKETING
 INTRODUCTION TO MARKETING

• The term Marketing is derived from the word ‘Market’. Here, Market refers to the place or
geographical area where buyers and sellers gather and enter into transactions involving transfer of
ownership of goods and services.

•Definition of Marketing
 Traditional Concept: The term ‘traditional marketing’ can be expressed as the business activity
through which goods and services directly move from producers to consumers or users.
 Modern Concept: The term ‘modern marketing’ can be expressed as the achievement of
corporate goals through meeting and exceeding customer needs better than the competition.
•According to Philip Kotler, the term ‘marketing’ is a social and managerial process by which
individual groups obtain what they need and want through creating, offering and freely exchanging
product and services of value with others.
Marketing

• Marketing is the process of exploring, creating, and delivering value to meet the
needs of a target market in terms of goods and services; potentially including
selection of a target audience;

• The term marketing, what is commonly known as attracting customers,

incorporates knowledge gained by studying the management of exchange
relationships and is the business process of identifying, anticipating and satisfying
customers' needs and wants.
DEFINITION
• Marketing is currently defined by the American Marketing Association (AMA) as
"the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large". However, the definition of marketing has evolved
over the years. The AMA reviews this definition and its definition for "marketing
research" every three years.The interests of "society at large" were added into the
definition in 2008. The development of the definition may be seen by comparing
the 2008 definition with the AMA's 1935 version: "Marketing is the performance
of business activities that direct the flow of goods, and services from producers to
consumers". The newer definition highlights the increased prominence of other
stakeholders in the new conception of marketing.
DEFINITION
• Recent definitions of marketing place more emphasis on the consumer
relationship, as opposed to a pure exchange process. For instance, prolific
marketing author and educator, Philip Kotler has evolved his definition of
marketing. In 1980, he defined marketing as "satisfying needs and wants through
an exchange process", and in 2018 defined it as "the process by which companies
engage customers, build strong customer relationships, and create customer value
in order to capture value from customers in return". A related definition, from the
sales process engineering perspective, defines marketing as "a set of processes
that are interconnected and interdependent with other functions of a business
aimed at achieving customer interest and satisfaction".
Concept

•The "marketing concept" proposes that to complete its organizational objectives, an

organization should anticipate the needs and wants of potential consumers and
satisfy them more effectively than its competitors. This concept originated from
Adam Smith's book The Wealth of Nations but would not become widely used until
nearly 200 years later. Marketing and Marketing Concepts are directly related.
•Given the centrality of customer needs, and wants in marketing, a rich
understanding of these concepts is essential:
Concept-contn.,
• Needs: Something necessary for people to live a healthy, stable
and safe life. When needs remain unfulfilled, there is a clear
adverse outcome: a dysfunction or death. Needs can be objective
and physical, such as the need for food, water, and shelter; or
subjective and psychological, such as the need to belong to a
family or social group and the need for self-esteem.
• Wants: Something that is desired, wished for or aspired to. Wants
are not essential for basic survival and are often shaped by culture
or peer-groups.
• Demands: When needs and wants are backed by the ability to pay,
they have the potential to become economic demands.
 Nature and Scope of Marketing

•The Nature of Marketing (or Modern marketing) may be studied under the
following points:
1. Human activity: Originally, the term marketing is a human activity under which
human needs are satisfied by human efforts. It’s a human action for human
satisfaction.
2. Consumer-oriented: A business exist to satisfy human needs, hence business
must find out what the desire of customer (or consumer) and thereby produce
goods & services as per the needs of the customer. Thus, only those goods should
be produce that satisfy consumer needs and at a reasonable profit to the
manufacturer (or producer).
Nature and Scope of Marketing-contn.,
3.Art as well as science: In the technological arena, marketing is the art and science of choosing
target markets and satisfying customers through creating, delivering, and communicating superior
customer value. It is a technique of making the goods available at right time, right place, into right
hands, right quality, in the right form and at right price.
4.Exchange Process: All marketing activities revolve around commercial exchange process. The
exchange process implies transactions between buyer and seller. It also involves exchange of
technology, exchange of information and exchange of ideas.
5.Starts and ends with customers: Marketing is consumer oriented and it is crucial to know what
the actual demand of consumer is. This is possible only when required information related to the
goods and services is collected from the customer. Thus, it is the starting of marketing and the
marketing end as soon as those goods and services reach into the safe hands of the customer.
Nature and Scope of Marketing-contn.,
6.Creation of Utilities: Marketing creates four components of utilities viz. time,
place, possession and form. The form utility refers to the product or service a
company offers to their customers. The place utility refers to the availability of a
product or service in a location i.e. Easier for customers. By time utility, a company
can ensure that products and services are available when customers need them. The
possession utility gives customers ownership of a product or service and enables
them to derive benefits in their own business
7.Goal oriented: Marketing seeks to achieve benefits for both buyers and sellers by
satisfying human needs. The ultimate goal of marketing is to generate profits
through the satisfaction of the customer.
Nature and Scope of Marketing-contn.,
8.Guiding element of business: Modern Marketing is the heart of industrial activity
that tells what, when, how to produce. It is capable of guiding and controlling
business.
9.System of Interacting Business Activities: Marketing is the system through
which a business enterprise, institution or organization interacts with the customers
with the objective to earn profit, satisfy customers and manage relationship. It is the
performance of business activities that direct the flow of goods and services from
producer to consumer or user.
10.Marketing is a dynamic process and series of interrelated functions:
Marketing is a complex, continuous and interrelated process. It involves continuous
planning, implementation and control.
Scope/Functions of Marketing

• The term scope of marketing can be understood in terms of the functions of the
marketing manager. The major purpose of marketing manager is to generate
revenue for the business by selling goods and services to the consumers. It lies in
insuring the customer needs and converting them into product or services and
moving the product and services to the final user or customer, to satisfy the wants
and needs of specific segment of customers with emphasis on profitability and
ensuring the optimum use of resources available with the organization. The
marketing manager has to perform the research functions and exchange functions.
•They are discussed below:
•Functions of Research
• The modern marketing activities start with consumer research. It is referred with the
analysis of consumer attitudes, tastes, habits, reactions and preferences to the
company’s product so that the products may be produced according to the needs of
the consumers. The major functions of research are as follows:
• Marketing Research: The marketing research is helpful in analyzing the
customer’s behavior, popularity of product, effectiveness of advertising, pricing
policy, etc. In other words, it is the systematic gathering, recording and analyzing
of data about problems relating to the marketing of goods and services. For
making correct and timely decisions, the marketing manager analyses all the
available opportunities, threats, strengths and weaknesses of the organization and
determine the best opportunity to be pursue for it