DEVELOPED BY:

ASHISH GUPTA
MBA- Ist year
The term 'market' originated from Latin word 'marcatus' having a verb
'mercari' implying 'merchandise' 'ware traffic' or 'a place where business is
conducted'. For a layman, the word 'market' stands for a place where goods
and persons are physically present.
 
'fish market', 'mutton market', 'meat market', 'vegetable market', 'fruit market',
'grain market'.
 
For him, it is a congregation of buyers and sellers to transact a deal.
 
However, for us as the students of marketing, it means much more. In a
broader sense, it is the whole of any region in which buyers and sellers are
brought into contact with one another and by means of which the prices of the
goods tend to be equalized easily and quickly.
 DEFINITIONS
According to Professor Jevons:
 
"Market means any body of persons who are in intimate
business relations and carry on extensive transactions in any
commodity".
 
In the words of Mr. Pyle:
 
"Market includes both place and region in which buyers and
sellers are in free competition with one another'.
 CLASSIFICATION OF MARKETS
Markets 'can be classified on different bases of which most
common bases are:
a) AREA
b) TIME
c) TRANSACTIONS
d) REGULATION
e) VOLUME OF BUSINESS
f) NATURE OF GOODS
g) NATURE OF COMPETITION
h) DEMAND AND SUPPLY CONDITIONS
 What is Marketing?
Goods and services do not move automatically from the makers to the users.

There is a definite mechanism that brings about exchange of goods and

services against money or money's worth for the mutual benefit-namely,

satisfaction to the consumers and surplus to the producers and manufacturers.

Marketing is the belt that connects the two major wheels of any economy

namely, producers and consumers. Marketing is the creation of utilities as

goods and services get value added by the time they reach the consumers.
 Marketing is a economic process by which goods
and services are exchanged between the producers
and consumers and their values is determined in
terms of money prices.

Goals of Marketing:

Attract new customers by promising superior value.

Keep and grow current customers by delivering
satisfaction.
 DEFINITIONS
 
Professor Glasser says :
 "Marketing in a free economy is the skill of selecting and fulfilling consumer desires

so as to maximize the profitability per unit of capital employed in the enterprise".

Professor Philip Kotler has defined marketing :

"Marketing is a social and managerial process by which individuals and groups obtain

what they need and want through creating, offering and exchanging products and

values with others".

 
 NATURE OF MARKETING
The characteristics speak of the very nature of marketing. These are :

• It is Operational
• It is Customer Oriented
• It is Mutuality of Benefits
• It is Value Driven
• It is Proactive to the Environment
• It Covers Both Profit and Non-Profit Making Organisation
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 focussing
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. Here,
customer's benefits exceed costs.

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
exposed by firm's leaders are communicated to all those involved in the firm.
 
It is Proactive to the Environment: Marketing firm is a sub-system of super-
system, the environment. The environment is something which is external to the
firm. The environmental forces are ecology, technology, competition, physical
resources, legal-frame work, socio-economic 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, churches, temples, mosques, gurudwaras, hospitals, sports clubs and so
on.
 DISTINCTION BETWEEN "MARKET" AND
"MARKETING"

The distinction between "Market" and "Marketing" can be drawn clearly on following grounds:

1. System Versus Activity

2. Outlet Versus Means

3. Narrow Versus Comprehensive Concept

4. Occurrence of Event

5. Change Versus Consistency

 DIFFERENCE BETWEEN "MARKETING" AND
"SELLING"

There are good many people who use the words 'marketing' and 'selling' interchangeably.
 
The basic difference can be outlined as under:

1. SCOPE
2. EMPHASIS
3. OCCURRENCE
4. PHILOSOPHY
 •Scope:
'Marketing' involves the design of product acceptable to customers and transfer of ownership between the
sellers and buyers.
  'Selling' simply involves obtaining orders from customers and supplying them the products. It is more
 
concerned with the sale of goods already produced.

•Emphasis:
‘Marketing’, the focus is on satisfying the wants of customers
‘Selling’ emphasizes the need of the seller to convert products into cash.
 
Marketing is customer-oriented and seeks to earn profits through customer satisfaction.
Selling is product-oriented and seeks to increase the sales volume.

•Occurrence:
‘Marketing’ begins much before the production of goods and services. It continues even after the sale because, 'after-sale services' may
be necessary for satisfying the wants of customers.
‘Selling’ comes after the production has been completed and it comes around with the delivery of the product to the customer.
 
In other words, marketing begins before the manufacturing cycle, whereas selling comes at the end of this cycle.

•Philosophy:
‘Marketing’ has philosophical and strategic implications. It is directed towards the long-term objectives of growth
and stability.
 
‘Selling’ is mere tactical routine activity with a short-term perspective, under which customers are taken for granted
as one homogeneous unit.
S. No. MARKETING
1 Focuses on Customers needs
2 Begins before Production
3 Continues after Sale
4 A Comprehensive Term in terms of
Meaning
5 Philosophy of Business
6 Profits through Customer
7 Let the Seller be aware
8 Integrated Approach
9 Long-term Perspective
10 Customer first then Product
SELLING
Focusses on Sellers needs
Begins after Production
Comes to an end with Sale
A Narrow Term in terms of Meaning
Routine day to day Physical Process
Profits through Sales Volume
Satisfaction
Let the Buyer be aware
Fragmented Approach
Short-term Perspective
Product first then Customer
 SCOPE OF MARKETING

Marketing itself is the greatest task of creating, promoting and delivering goods
and services to final consumers and business buyers.
In fact, marketing people are involved in marketing of ten types of entities namely,
 
1. Goods
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
1. GOODS
Goods - tangible - constitute the bulk of a country's production
and marketing effort.
 
Advanced country namely, America produces and markets 80 million eggs, 3 billion
chickens, 5 million hair-dryers, 200 million tons of steel, 4 billion tons of cotton 2
billion tons of ground nuts, 1.5 billion maize.
 
As against this, country like India - a developing one, produces 25 billion eggs, 0.25
billion chicken, 90 million tons of steel, 1 billion tons of cotton 0.75 billion tons of
ground nuts 0.25 billion maize-to take a few cases.
 
The major items of goods in case of developing nations are those relating to basic
necessities such as food, shelter, clothing and other basic commodities
 
while the luxury items of high-class society needs are the needs of developed countries.
2. Services
With the advancement of the economies, the growing proportion of their economic
activities are more based towards services.
 
In growing economies, it is growing at lower pace and the ratio ranges between 25:75
and 35:65 percentage. These services can be broadly classed as economic and
non-economic, personal and group, financial and non- financial. They are in a
variety of services of unskilled to highly professionalised services. Market
offerings consist of service and product mix in wider and varying range.

3. Experiences
One can create, stage and market experiences by orchestrating.
U.S.A's Walt Disney, World's Magic Kingdom is a unique experience climbing of
Mount Everest, visiting . a fairy kingdom, a pirate ship or a haunted house, hiking,
trekking ESSELL world, Water Kingdom, Spending a week at base ball camp or
spending a fortnight in meditation centres and so on.
4. Events
Creative marketers promote time based events such as Olympics, trade-shows, sport
events, company anniversaries, artistic performances; holding fashion shows; all
these need good planning by professionals to see that events are a grand success.
Musical concerts etc

5. Persons
Celebrity marketing has become a major growing business. In the past, a, person
seeking name and fame or image used to hire a press to write and publish stories
in news papers and magzines. Today, each professional has an agent or a
personal secretary be it a lawyer, doctor, actor or actress, financiers, CEOS,
musician, magicians.
In world of American art Andy Warhol has applied entrepreneurial marketing
principles to build his own fame.
Indian case, Amitab Bachchan made a come-back in a big way through KBC
Mr. Tom Peter a great management consultant is the master of self-branding and
asked each person to build a brand of his own.
6. Places:
Places - may be cities, states, regions and even the whole country are competing in
attracting tourists, industrialists, employees, professionals, investors, factories, head
offices, new residents.
Ireland is a place marketer has attracted more than 500 companies to locate their plants,
operating Irish Development Board, the Irish tourist Board, the Irish Export Board,
attracting foreign investment, tourists, professionals and importers.
Place marketers include economic development specialists, real-estate agents,
commercial banks, local business associations and public-relations agencies.

7. Properties:
Properties represent intangible rights of ownership of either real property - real estate or
financial property - stocks and bonds. These properties are bought and sold which warrant
a marketing effort. It is our common experience that real estate agents work for sellers
and buyers linking them, stock brokers bring together buyers and sellers of stocks and
bonds. These intermediaries may be individuals or institutions.
8. Organizations:
Organizations like individuals work hard to build their image or personality in the
minds of public- through public-relations techniques. Institutional ads by companies
speak of this.
Philips company-the Dutch electronic company-uses the words "Let's Make
Things Better"
Coca Cola Company has a slogan "Things go Better with Coca Cola."
BPL says "Believe in the Best."
Pepsi Cola company says "Want More."
Sony corporation says only "It is a Sony".
Even universities, Educational Institutions, Museums, Performing Art Units have their
plans to boost their image to compete for more students, participants, audiences, visitors
on one side, and funds on the other.
9. Information:
Information is a valuable product which can be produced and sold. Schools, colleges
and universities and other institutions of learning produce and distribute at a price the
product to students, parents and the communities.
Encyclopedias and non- fiction publications are rich source of information. Periodicals
and journals provide highly specialised and updated information.

10. Ideas:
Each market offering has a basic idea which forms its core or heart. The president of
Japan Life says, "We manufacture beds ranging Rs. 80,000 to 1,25,000 but sell health."
Mr. Charley Reveson of famous Revelon-Cosmetics Company observed." "In the
factory, we make cosmetics; in the store we sell hope."
In this sense, buyer of a drill is buying a hole; purchaser of a spectacles an eye sight.
That is, products and services are the platforms for delivering the ideas or benefits.
 EVOLUTION OF MARKETING CONCEPT
The Production Concept

The Product Concept

The Selling Concept

The Marketing Concept

The Societal Marketing Concept

 Production Concept
Consumers will favour those products that are
widely available and low in cost.

Therefore increase production and cut down

costs.
 Product Concept
Consumers will favour those products that
offer the most quality, performance, or
innovative features.

Therefore, improve quality, performance and

features.

This would lead to increased sales and

profits.
Selling Concept
Consumers , if left alone , will not buy enough of
company’s products.

Therefore, promote sales aggressively.

And, build profit through quick turnover.

Marketing Concept
The key to achieving organizational goals consist
in determining the needs and wants of target
markets and delivering the desired satisfactions
more effectively and efficiently than competitors.

And build profit through customer satisfaction

and loyalty.
Societal Marketing Concept
The societal marketing concept holds that the
organization’s task is to determine the needs, wants,
and interests of target markets and to deliver the
desired satisfactions more effectively and efficiently
than competitors in a way that preserves or enhances
the consumer’s and the society’s well being.

Societal Marketing =
Consumer Satisfaction + Company ‘ s Profits +
Society’s well being.