LECTURE 23

Difference between Marketing and Selling

Marketing
Marketing starts before decision of
production
Marketing is a total system and selling is
one of its part
Marketing is a long term process
Selling
Selling starts after decision of production
Selling is the transfer of owner ship
Selling is a short term process

CLASSIFICATION OF PRODUCTS

There are two types of products

1: Consumer products

2: Industrial products

• Consumer products are consumed after certain uses. e.g. Tea, soap, tooth
paste, shaving cream, cooking oil etc.
• Industrial products are used in industry. e.g. Raw material, machinery,
chemicals, computer hardware and software.

Relationship Marketing

Developing a long term relationship with the customers, by making phone calls to
the customers, sending gifts to customers etc.

Transactional Marketing

Transaction with the customer, it is a business strategy that focuses on single, "point
of sale" transactions. The emphasis is on maximizing the efficiency and volume of
individual sales rather than developing a relationship with the buyer.

FACTORS INFLUENCING THE MARKETING SYSTEM

• External Marketing Environmental Factors

• Internal Marketing Environmental Factors
 THE MARKETING ENVIRONMENT

The powerful forces of the external marketing environment heavily influence

marketing programs by posing opportunities and threats.

a. Political and legal environment: From taxes to regulations to laws, the

political and legal environment has a profound impact on marketing. This
is especially true for certain industries, such as telecommunications,
automobiles, and tobacco.
b. Social and cultural environment: Trends in this arena, present enormous
opportunities for companies those are both farsighted and flexible.
Issues and changes include increasing diversity in the U.S., more single-
parent families, a rapidly growing senior population, etc.
c. Technological environment: New technologies create new goods and
services, but also make some existing products obsolete (witness the
growing dominance of DVDs at Blockbuster). In recent years, the
emergence of the Internet has had the greatest impact on marketing.
d. Economic environment: Inflation, interest rates, recession, and
recovery-both in the U.S. and (to an increasing extent) abroad-have a
dramatic influence on every element of the marketing mix.
e. Competitive environment: Creating a competitive advantage is a
fundamental goal of marketing that can only be accomplished by
carefully and continually monitoring every element of the competitive
environment.
The competitive environment drives many marketing decisions. By
studying the competition, marketers determine how best to position
their own products. Knowing the alternatives available to your
customers, who your competitors are and what they offer is as vital to
success as watching for the next big food or fashion craze or
technological innovation. There are three specific types of competition:
1. Substitute product competition: Products that are dissimilar
from those of competitors, but can fulfill the same need (e.g.
television and computer games are very different from one
another, but both fulfill the need for entertainment).
2. Brand competition: Occurs between similar products (e.g. Zest
bar soap and Irish Spring bar soap).
3. International competition: matches the products of domestic
marketers against those of foreign competitors (e.g. Neutrogena
skin care products vs. L'Oreal skin care products, or Heineken vs.
Budweiser).

MARKETING MANAGER
A person who plans and executes all marketing activities.

Role of Marketing Manager

• To identify the unsatisfied needs of the customers.

• To design the product.
• Product Development.
• Pricing Decisions.
• Product Distribution.
• Communication with the customers.
• Marketing Research.
• Appointment of staff in marketing department.

MARKETING PLAN
A plan for marketing programs.

Components of marketing plan are:

• Executive Summary.
• Current market situation.
• Opportunity Analysis.
• Marketing objectives.
• Marketing Strategies.
• Projected income statement.
• Control.