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UnitI
Structure 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. Introduction MarketandMarketing TheExchangeProcess CoreConceptsofMarketing FunctionsofMarketing ImportanceofMarketing MarketingOrientations Summary TerminalQuestions AnswerstoSAQsandTQs

IntroductiontoMarketing

1.1.

Introduction:

Marketing is an activity which can be seen every where. Any time you try to buy something, marketinghasaroletoplay.Itisoftenviewedbymanyasbeingadvertisingorsalespromotionor marketing research. But it isa concept much larger thanany of them or all of them puttogether. Marketing consists of all activities designed to create exchanges which satisfy human or organizational needs or wants in a way that brings profit for the firm. It performs the task of both identifyingandsatisfyingcustomerneeds.Thishelpsbusinessenterprisesinanticipatingcustomer demand and creating satisfied customers through conception, production, promotion and physical distributionofgoodsandservices.NoexamplecanbetterillustratethisthanthepopularityofMobile Phone.Inlessthanfifteenyears,mobilephoneshavebecomesuchanimportantpartofourlives thatmanyofuscannotthinkofalifewithoutit. Thisunitdealswithmeaning,importanceandfunctionsofmarketing.Theoldconceptsofmarketing under which companies have conducted marketing activities and the modern concepts which are nowbeingusedareexplainedindetail.

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LearningObjectives Thisintroductoryunitwillhelpyougetfamiliarwithimportantconceptsinmarketing.Afterreading thisunityoushouldbeableto 1. 2. 3. 4. 5. Definemarketandmarketing. Understandtheconceptsandfunctionsofmarketing. Explaintheimportanceofmarketing. Differentiatebetweentypesofmarketingorientations. Understandhowmarketingfunctionhaschangedovertheperiod.

1.2.

MarketandMarketing

WhatisMarket? Originally,aMarketwasapublicplaceinatownorvillage,wherehouseholdprovisionsandother objectswereavailableforsale.Thedefinitionofmarkethasexpandedinthisglobalizedworld.The tradersmaybespreadoverawholetown,orcityorregionoracountryandyetformamarket.For example,stockmarket,Oil&Oilseedsmarket,SteelorMetalsmarketetcwherepeopleacrossthe countriescanparticipateinthebusiness.Theessentialsofamarketare(i)acommodity/itemwhich isdealtwith,(ii)theexistenceofbuyersandsellers,(iii)aplacebeitacertainregion,acountryor theentireworldand(iv)interactionsbetweenbuyers&sellerstofacilitatetransactions. 1. OnthebasisofGeographicArea Local Market is the place where the purchase and sale of goods / services involve buyers and sellers of a small local area. The example of local market is a village or a town, market. In this marketdaytodayrequirementlikevegetable,fruits,meatandfisharesold.

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RegionalMarket Whenthepurchaseandsaleofgoodsinvolvebuyersandsellersofaregion,suchasalargetown market catering to needs of a group of villages or towns, such a market is common in case of wholesale/retailsaleoffoodgrains. NationalMarket Whenthepurchaseandsaleofgoodsinvolvebothbuyersandsellersoftheentirenationthenitis calledasnationalmarket.ThistypeofmarketinthecaseofcommoditiessuchasCotton&Textiles MarketlocatedinMumbai,TeaandJuteMarketslocatedinKolkata.Withtheadventofinternet,this conceptisalsogettingobsolete,asyoucanoperateinanymarket,sittinginyourtownorcity. GlobalorWorldMarket Whenthepurchaseandsaleofgoodsinvolvebuyersandsellersofmanynations,thereissaidtobe aWorldorGlobalMarket.ManycommoditiessuchasGold,Silver,Tea,Coffee,Spicesaresoldin suchglobalmarkets.Manymanufacturedproductsandspecializedservicesarealsosoldacrossthe globebymanycompanies.ProducersofCocacolaandSonybrandselltheirproductsintheglobal market in almost all countries. Indian companies like TCS, Infosys, and WIPRO sell and provide theirITenabledservicestomanycompaniesindifferentpartsoftheworld.TheyoperateinaGlobal Market. 2. OnthebasisofNatureofCompetitioninthemarket PerfectMarket Itreferstoamarketormarketsituationwherethereisperfectcompetition.Competitionissaidtobe perfectwhen(a)thesellers&buyersofaparticularproductaresomanythatnoneofthemhaveto sell or buy at a single uniform price. (b) Price is determined by the market forces of supply & demand. ImperfectMarket Incontrasttotheperfectcompetition,theimperfectmarketwillhaveimbalancebetweennumberof buyersandsellers.Thismarketisfurtherdividedintothreeparts.TheyareMonopoly,Monopolistic andoligopoly.Incaseofmonopoly,singlesellerdominatestheentiremarketwhereasinoligopoly
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fewsellersdominatethemarket.Thedetailsofthesetypesofmarketswillbediscussedinthepricing unit. 3. OnthebasisofNatureofGoodsSold ConsumerGoodsMarket Definition: AConsumerGoodsMarketisdefinedasamarketwherethefinaloutputofthefirmgoes fortheconsumptionofindividualorhousehold. ConsumerGoodsMarket This is a market, where the buyers who are individuals and households purchase a variety of productsandservicestosatisfytheirneedsandwants.Forexample,anindividualbuysachocolate for his personal consumption whereas a family buys a refrigerator for household or family consumption.ProductssoldinconsumergoodsmarketareclassifiedasNonDurables,suchwhich arefrequentlypurchasedsuchasbathingsoap,detergentetc.andDurablessuchasrefrigerator,TV Set,Washing Machine, Car, Clothing etc. NonDurables are also known as FMCG Fast Moving ConsumerGoodse.g.Soap,detergentetc... IndustrialGoodsMarket Definition: Abusinessmarketisdefinedasamarketwhereoutputofonefirmgoeseitherasraw material,goodsinprocessorasconsumablesofanotherindustry. ThismarketisalsoknownasorganizationalorB2Bmarket.Itismadeupoforganizationsincluding manufacturing units, service firms, government departments and other business enterprise. The products which are sold in the industrial goods market are typically, raw materials, machines, machinetools,equipments,componentsandsparesetc.Generally,thebuyersofindustrialgoods, purchaseproductsandserviceseitherforproducingotherproductsandserviceswhichcanbesold intheconsumermarketsorforusingthemtofacilitatetheoperationofbusinessenterprise.Inmany such cases, the buyer is an organization whose consumption will depend on how the end users demandwillchange.Hence,inbusinessmarkets,thedemandisaderiveddemand.Demandfor steel will depend on the consumption of steel equipments, rods and other accessories in the constructionandrealestatesector.

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NonProfitandGovernmentMarkets ThismarketwhichconsistsofNonProfitorganizationssuchassocialserviceagencies,educational organizations, charitable organizations and Government Departments and agencies needs special skillstoselltothem.Thesebuyershavelimitedpurchasingpowerwhichiswhypricingtothismarket needstobeplannedcarefully.Government,whichisalargebuyer,makespurchasesonthebasis oftenders,bidsandnegotiation. WhatisMarketing? Marketingisasetofbusinessactivitiesthatfacilitatemovementofgoodsandservicesfromproducer toconsumer.Itisanongoingprocessofdiscoveringandtranslatingconsumerneedsintoproducts andservices,creatingdemandsforthem,servingthecustomerandhisdemandthroughamarketing programme of promotion and distribution to fulfill the companys marketing goals in a competitive environment. It is evident that customer, his needs and wants are very important aspects of todays marketing. Customerfocus is the very essenceof marketing andhis viewpoints should be taken intoaccount whilemakingmarketingdecisions. In this era of rapid changes, it is marketing which keeps the business in close contact with its economic,political,socialandtechnologicalenvironmentandinformsitofeventsandchangesthat caninfluenceitsactivities. AmericanMarketingAssociation(AMA)offersthefollowingdefinitionofMarketing.(AMA2004) Definition:Marketingisanorganizationfunctionandasetofprocessforcreating,communications anddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefitthe organizationanditsstakeholders. TheCharteredInstituteofMarketingdefinesMarketingas: Marketing is the management process responsible for identifying, anticipating and satisfying customerrequirements,profitably.

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HavingunderstoodwhataMarketisandwhatisMarketing,wewillnowlookwhatisanexchange andtheexchangeprocess.

1.3.

TheExchangeProcess

Todaysmarketingsystemhasevolvedfromthetimeofasimplebarterofgoodsthroughthestageof a money economy to todays complex marketing. Throughout all these stages, exchanges have been taking place. In small town and villages there were artisans such as carpenters, weavers, potters blacksmiths, barbers and others such service providers who produced goods and services notonlyfortheirownconsumptionbutalsoforexchangingwithotherswhattheycouldnotproduce but needed. This was barter system of exchange. For a transaction to take place between two parties,itwasnecessarythattherebeneedsandwantsonbothsides.Thedevelopmentofmoney came to act as a common medium, and the exchange process became very easy and convenient.Fig.1.1. below shows the exchange process under money economy in which products andservicesflowtothemarketfromtheproducersandsellersandmoney,thevalueoftheproducts andservices,flowfromthebuyerstothesellers.

Producers Sellers
Figure1.1

FlowofGoods &Services

Market Placeof exchange

FlowofMoney

Buyers

Thus, exchange is an act of obtaining a desired product or service from someone by offering somethinginreturn.Thisexchangeprocesswillcontinueaslongashumansocietyexistsbecause satisfyingonesneedsisthebasicinstinctofhumanbeingsandnoonecanproduceeverythingthat he/sheneeds.Foranexchangeprocesstotakeplace,betweentwoormoreparties,fewconditions havetobemet.Theyare:

1. Eachpartyhassomethingthatcouldbeofvaluetootherparty. 2. Eachpartyhasdesire,willingnessandabilitytoexchange. 3. Eachpartyiscapableofcommunicatinganddelivering. 4. Eachpartyhasthefreedomtoacceptorrejecttheoffer.

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SelfAssessmentQuestions1

1. Marketingperformsthetaskof_______________and_______________customer
needs.

2. In perfect competition, price is determined by the market forces of _________ and

______________.

3. _____________referstoamarketwhereasinglesellercontrolstheentiresupplyofaproductor
service.

4. InIndustrial(Business)Markets,thedemand,inmostcasesis___________. 5. Frequentlypurchasedconsumergoodsareknownas_____________.

1.4.

CoreConcepts

Therearecertainfundamentalconceptsandtaskswhichoneneedstoknowtofullyunderstandthe marketingfunction. These conceptsprovidefoundationfora marketingorientation and to manage themarketingfunction.

1. NeedsandWants
Themarketerstaskliesinsatisfyinghumanneedsandwantsthroughtheexchangeprocess.Itis allegedthatmarketingcreatesneedsandmakespeoplebuythingstheydonotactuallyneed.In reality,marketingormarketersdonotcreateneeds,buttheycreatewants.Needsarethebasic humanrequirementsoffood,clothingshelterwaterandair.Whenwedesirecertainspecificobjects oritemstofulfilltheseneeds,theyarecalledwants.Forexample,whenapersonishungry,hecan satisfy his hunger by taking a simple meal at home. Instead, if he wants to eat a Pizza or a Hamburgerora5StarHotelmeal,itisnotaneedbutawant. The task of a marketer is to influence our wants rather than needs. He does so along with other influential such as sociocultural forces and institutions such as family, religion, and different referencegroups. Marketers, suggest to consumers that aparticular car would satisfy thepersons needfor esteem. Theydonotcreatetheneedforesteem,buttrytopointouthowaparticularproductwouldsatisfy thatneed.
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2. Demand
Humanwantsareunlimited,buttheirresourcesarelimited.Whenawantforanobjectisbackedor supported by buying ability, willingness to spend and desire to acquire a product / service, it becomes a potential demand. The task of assessing or estimating demand is very crucial for a marketer. He should understand the relationship of the demand for his product with its price. Demandforecastingisessentialforallocationofresourcesinacompany.

3. ProductandServices
Productisagenerictermusedtodescribewhatisbeingofferedbyasellerormarketer.Itmaybea good,aserviceoridea,whichcanbemarketedbyofferingasetofbenefitsitofferstocustomersto satisfytheirneeds.However,thereisadistinctionbetweenproductsandservices.Whenwesay productwemeanaphysicaloratangibleproductsuchasatoothpaste,arefrigeratororamobile phone, whereas service refers to an act, performance, a benefit and indicates intangibility and absence of ownership or possession. Services can include banking service, hospitality service, airlinesservice,healthservice,entertainmentserviceetc. Thus, a product can be defined as anythingthatcanbeofferedtomarkettosatisfyaneedorwant.Today,manytypesofentitiessuch asgoods,services,experiences,events,persons,placesandideasarebeingmarketed.

4. TargetMarket
Veryfewproductscansatisfyeveryoneinthemarket.Therefore,marketersdividethemarketinto distinctgroupsofbuyerswhohavesimilarpreferences.Thesegroupsarecalledsegmentswiththeir ownspecificdemographic,psychographicandbehavioralcharacteristics.Themarketerdecidesas towhichofthesesegmentorsegmentsofferhighestopportunityforhiscompany.Foreachofthese targetmarkets,thefirmdevelopsaproduct/servicesuitedtotheirneeds.TATAgrouphasrecently designedaneconomycarcalledNANOispricedaroundRs.1Lakh.Thetargetmarketforthiscar is all aspirants who dream of owning a car but cannot afford cars which are now available for minimum Rs.2.5 Lakh. A Target Market is the group of people at whom a marketer targets his marketingeffortstosellhisgoodsandservices.

5. MarketingManagement
Marketing Management which is also the title of this course refers to all the activities which the marketingmanagers,executivesandpersonnelhavetoundertaketocarryoutthemarketingfunction
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ofthefirm.Itinvolves(i)analyzingthemarketopportunitiesbyundertakingconsumerneedsand changes taking place in the marketing environment, (ii) planning the marketing activities, and (iii) implementing marketing plans and settings control mechanism to ensure smooth and successful accomplishmentoftheorganizationsgoals.MarketingManagementisacriticalfunction,especiallyin highly competitive markets. It provides competitive edge to an organization through strategic analysisandplanning.

6. ValuesandSatisfaction
Indevelopedanddevelopingeconomies,consumershaveseveralproductsorbrandstochooseto satisfy his/her need. Consumers perceptions about value that they can expect from different products or services depend upon several factors. Sources that build the customer expectations include own experience withproducts,friends,family members, consumers reportsand marketing communications. Customer value is the difference between total benefits received and total costs incurred by him in acquiring the product or services. The types of benefits could be products functionalvalue,oritsbrandrelatedimagevalueandanyaccompanyingservicevalue.Thetypesof costsacustomercanincurmaybemonetarycostandenergycost. Valueisprimarilyafunctionofquality,serviceandcost.Valueincreaseswithincreaseinqualityand serviceanddecreaseswithincreaseincost.Valueisanimportantmarketingconceptandthetask ofmarketingistoidentify,create,communicate,deliverandmonitorcustomervalue. Customers generally experience satisfaction when the performance level meets minimum performanceexpectationsofaproductorservice.Whentheperformanceasperceivedexceedsthe expected performance level, the customer will be not just satisfied, but delighted. Thus customer satisfactionordelightmentwithrespecttoaproductorserviceencouragescustomerstocomeback and repurchase the product or service in future. Satisfied customers can be an asset to the marketingcompanyoveraperiodoftime,astheywillspreadfavorablewordofmouthinformationor opinions. SelfAssessmentQuestions2 1. arethebasichumanrequirementslikefood,clothing,waterandair. 2. Servicereferstoanactorabenefit,whichdoesnothaveaphysicalformandthusindicates .
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3. Valuewithincreaseinqualityandserviceandwithincreaseincost. 4. Whentheperformanceofaproductasperceivedbyacustomerexceedshisexpectations,heis . 5. Marketeranalyzesthemarketopportunitiesbymonitoringchangestakingplaceinthemarketing .

1.5.

FunctionsOfMarketing

The delivery of goods and services from producers to their ultimate consumers or users includes many different activities. These different activities are known as marketing functions. Different thinkershavedescribedthesefunctionsindifferentways.Someofthemostimportantfunctionsof marketingarebrieflydiscussedbelow:

1. MarketingResearchandInformationManagement
Marketers need to take decisions scientifically. Marketing research function is concerned with gathering,analyzingandinterpretingdatainasystematicandscientificmanner.Thetypesofmarket information could be analysis of market size and characteristics, consumer tastesand preferences and changes in them from time to time, channels of distribution and communication and their effectiveness, economic, social, political and technological environment and changes therein. A company canprocure such informationfrom specialized market research agencies, governmentor candecidetocollectthemselves.

2. AdvertisingandSalesPromotionAdvertisingisamassmediatoolusedtoinform,persuade
or remind customers about products or services. It is an impersonal message targeted at a chosengroupthroughpaidspaceortime.

3. SalesPromotionisashorttermincentivegiventocustomersorintermediariestopromotesales.
Itsupplementsadvertisingandpersonalsellingandcanbeusedatthetimeoflaunchinganew productorevenduringitsmaturityperiod.

4. Product Planning and Management A Marketer should identify the needs and wants of
consumers, develop suitable products / services and make them available. Marketer is also required to maintain the product and its variations in size, weight, package and price range according to the changing needs and requirements of his customers. Information available
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through Market Research helps product management in taking appropriate decisions while planningthemarketingefforts.

5. SellingThisfunctionofmarketingisconcernedwithtransferringofproductstothecustomer.
Animportantpartofthisfunctionisorganizingsalesforceandmanagingtheiractivities.Sales force management includes recruitment, training, supervision, compensation and evaluation of salesmen. They need to be assigned targets and territories where they can operate. The salesmen interact with prospective purchasers facetoface in order to sell the goods. The purchasermaybeendcustomeroranintermediary,suchasaretaileroradealer.

6. PhysicalDistributionMovingandhandlingofproductsfromfactorytoconsumerscomeunder
thisfunction.Orderprocessing,inventory,management,warehousingandtransportationarethe keyactivitiesinthephysicaldistributionsystem.

7. PricingThisisperhapsthemostimportantdecisiontakenbymarketer,asitistheonlyrevenue
fetching function and success and failure of the product may depend upon this decision. Therefore, the decision regarding how much to charge should be taken such that the price is acceptable to the prospective buyers and at the same time fetches profits for the company. While deciding on the price, the factors to be considered are competition, competitive prices, companysmarketingpolicy,governmentpolicy,andthebuyingcapacityoftargetmarketetc.

1.6.

ImportanceOfMarketing.

PeterDrucker,thefamousmanagementthinkerinoneofhisclassicarticleshassaidMarketingis everything.Allotheractivitiesintheorganizationaresupportservicestothemarketingstrategythat the company pursues. Marketing is important not only to the company but to the consumers and societyandtotheeconomy. Consumer stands to benefit from marketing activities. He has more alternatives to choose from, improved and better quality products are available and he is able to buy goods at convenient locations.Thankstomuchimprovedcustomerservice,aconsumerisabletocomplainandexpects hiscomplainttobeattendedinreasonabletime.Hecannowbuywithcreditordebitcardorcashor oninstallments. Forthesocietyasawhole,marketingisimportantbecauseitactsasachangeagentmakingpeople use latest products and improves the standard of living of the people. As we know, the main
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objective of marketing is to produce products and services for the society as per their needs and tastes,andwhiledoingsoitcreatesdemandforthesegoodsandservices,encouragesthemtouse them,thusleadingtohigherdemandandsales.Thishigherdemandallowsthecompanytoachieve economies of scale in both production and distribution resulting in decrease in production and distributioncostswhichcanbeusedtoreducepricestoconsumers. Foracompanyinanybusiness,marketingisconsideredtobethemostimportantactivity.Ithelpsan organization to keep abreast of changes taking place in the market and consumer tastes and preferencesthroughmarketresearch.Basedonthisreliabledata,itrespondstothesechangesby rectifying any drawbacks in its products or changing its competitive strategy. Thus the companys decisionmakingandplanningarenotbasedonjusthunchesbutonsoundmarketinformation.The firm that follows such practices is sure to prosper under all conditions. Marketing provides an effective channel of communication to the company with its consumers by way of advertising and salespromotion.Marketingthusbringsrevenueandearnsgoodwillforthecompany. Successfuloperationofmarketingactivitiescreates,maintainsandincreasesthedemandforgoods andservicesintheeconomy.Itresultsintheincreasedlevelofproduction.This,inturn,increases thenationalincome,whichisbeneficialtotheeconomy.Marketingoperationsrequiretheservicesof intermediariessuchaswholesalers,retailers,transporters,andserviceprovidesforstorage,finance, insuranceandadvertising.Theseservicesprovideemploymentinlargenumbers. SelfAssessmentQuestions3 1. TheaimofAdvertisingis,andcustomersaboutproductsandservices. 2. Thetasksofmovingandhandlingofproductscomeunder. 3. Forthesocietyasawhole,Marketingactsasachangeagentandimprovesthe ofthepeople. 4. istheonlyrevenuefetchingfunctioninMarketing. 5. CreditCard,DebitCard,CashandInstallmentsareavailabletoacustomerforbuying productsandservices.

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1.7MarketingOrientations Companies adopt different philosophies to market their products and services. An analysis of evolution of marketing thought over last several decades and reliance of marketing managers on specific marketing orientations, leads us to classify marketing concepts into several categories. Thesecategoriesreflectthephilosophiesguidingthecompanysmarketingefforts.Thephilosophy adopted by a company should strike a balance between the interests of the company, customers, societyandpublic.Therearefivecompetingconceptsandanorganizationcanchooseanyoneof themforconductingmarketingactivities.

1. The Production Concept This isoneof theoldest conceptsof marketing andassumesthat

consumers will prefer those products and services that are easily available and affordable. Companieswhichadoptthisphilosophyfortheirmarketingshouldfocusonimprovingproduction anddistributionefficiency. Production concept is a useful philosophyunder situations where demand is more than supply and the companies are trying to increase production and when production costs are high. Companies are trying to achieve economies of scale. Under such conditions, it is likely that qualityofproductsisneglectedandservicetocustomersisveryimpersonal.

2. The Product Concept assumes that consumers will prefer those products that offer quality,
performanceorinnovativefeatures.Managersinsuchcompaniesfocusondevelopingsuperior productsandimprovingtheexistingproductlinesbydevotingtimetoinnovations.Theproblem with this orientation is that managers forget to read the customers mind and launch products basedontheirowntechnologicalresearchandscientificinnovations.Veryoftenitisobserved thatinnovationsenterthemarketbeforethemarketisreadyfortheproduct,orisawareorclear aboutitsbenefits.

3. This productoriented management with excessive attention to product rather than customer
leads to shortsightedness about business. This was termed as Marketing Myopia by Prof. Theodore Levitt of Harvard Business School. He recommended that companies should have a clearerandbroadervisionofbusinesstheyareinandshouldadapttothechangesintheneeds ofthecustomersandintheenvironment.Forexample,acompanylikeKODAKshouldnotthink theyareonlyinthebusinessofsellingcamerasandphotographicfilms.Theyshouldbelievethat theyareinthebusinessofpreservingmemoriesforcustomersandphotographyingeneral
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4. The Selling Concept TheSelling concept assumes that consumers generally, will notbuy a
companys products unless aggressive selling and promotion efforts are undertaken. It also holds that consumers typically do not think of buying these products which are nonessential goods without persuasion or aggressive selling action. Use of this concept leads people to believethatmarketingisallaboutselling.Theproblemwiththisapproachisthebeliefthatthe customerwillcertainlybuytheproductafterpersuasionandwillnotcomplainevenifdissatisfied. In reality, this does not happen and companies pursuing this concept fail in business. This approachisapplicableinthecasesofunsoughtgoodssuchaslifeinsurance,vacuumcleaners thatbuyersnormallydonotthinkofbuying.

5. TheMarketingConceptTheMarketingConceptproposesthatacompanystaskistocreate,
communicateanddeliverabettervaluepropositionthroughitsmarketingoffer,incomparisonto itscompetitorstoitstargetsegmentandthatthiscustomerorientedapproachonlycanleadto successinthemarketplace. To day, marketing function is seen as one of the most important function in the organization. Many marketers put the customers at the centre of the company and argue infavor of such a customer orientation where all functions work together to respond, serve and satisfy the customer. Many successful and well known multinational companies have adopted marketing concept as their business and marketing philosophies. Many Indian companies in the banking and other servicesectorsfollowcustomerorientationandserviceastheirmotto.Accordingtothisconcept, a companys marketing effort must start right from identifying, through Market Research, exact needs&wantsofthetargetmarket. Table1.1.DifferencesbetweenSellingandMarketingConcepts

6. SellingConcept 8. EmphasisonProduct 10.

Goalistosellwhatis produced

7. MarketingConcept 9. Emphasis on Customer needs and

wants

11. 12.

Goal is to produce what is neededby thecustomers 14

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13.

AggressiveSalesand Promotionused

14. 15. 16.

All the departments of the company worktogetherforservingthe customers

17.

Objective is profits throughSalesvolume

18. 19.

Objective is profit through customer Satisfaction

6. TheSocietalMarketingConceptThismarketingconceptemphasizesthatthekeytaskofthe companyisnotonlytodeterminetheneedsandwantsofthetargetmarketsanddeliveringthe desiredsatisfactionbutalsotopreserveandenhancetheconsumersandsocietysoverallwell being. Thisconceptcallsuponmarketerstobuildsocial,ethicalandenvironmentalconsiderationsintotheir marketingpractices.Itseemstobeanappropriatephilosophyformarketingatthistimewhenthere isenvironmentaldegradationandsocialserviceshavebeenneglectedinIndia.Intherecentyears, wehavebeenwitnessingalotofcomplaintsaboutproductsandpackagingthatareharmfultohealth and ecology. Marketers must come forward to protect the interest of both the customers and the environmentandthistheycanachievebyadoptingorfollowingthesocietalmarketingconcept. SelfAssessmentQuestions4 1. Under_________________conceptitislikelythatthequalityofproductsisneglected. 2. Standard Furnitures, makers of office furniture, has a goal of introducing a major product improvement of at least one product every year. The company is following ______________ concept. 3. Firmswhichsellwhattheymakeinsteadofwhatthemarketwantsfollowthe_______________ concept. 4. The _____________ concept says that providing customer satisfaction is the key to fulfilling organizationalobjectives. 5. _______________Marketingconceptcallsformarketerstobalancecompanyprofits,customer needsatisfactionandsocietalwelfare.
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1.8 Summary 1. Marketingisadynamicandallpervasivesubjectinbusiness 2. ThemainfunctionsofMarketingareMarketingResearchandInformationManagement,Product Planning,AdvertisingandSalesPromotion,Selling,PhysicalDistributionandPricing. 3. MarketingplaysanimportantroleintheeconomicdevelopmentofacountrylikeIndia.Itisalso veryimportantfromthecustomerandsocietalpointofviewasithelpsimprovethestandardof livingofpeoplethroughbetterproductandserviceoffers. 4. Marketing as a concept has evolved over a period of time and has witnessed changes and modifications in its philosophy. There are five concepts which describe this development and offer ways to companies on how to conduct their business Production Concept, Product Concept,SellingConcept,MarketingConceptandSocietalMarketingConceptHowever,thefirst threeareoflimitedusetoday. TerminalQuestions 1.DefinethetermsMarketandMarketing. 2.Discusstheimportanceofmarketingforaconsumer,fortheeconomyandforthe societyasawhole. 3.DistinguishbetweenMarketingandSellingconcepts. 4.ExplainthetermMarketingMyopia. AnswerstoSelfAssessmentQuestions SelfAssessmentQuestions1 1.IdentifyingandSatisfying 2.SupplyandDemand 3.Monopoly 4.Derived 5.FMCG SelfAssessmentQuestions2 1.Needs 2.Intangibility
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3.IncreasesandDecreases 4.Delighted 5.Environment SelfAssessmentQuestions3 1.Inform,persuadeandremind 2.PhysicalDistribution 3.Standardofliving 4.Pricing 5.Options SelfAssessmentQuestions4 1.Production 2.Product 3.Selling 4.Marketing 5.Societal AnswerstoTerminalQuestions 1.Referto1.2 2.Referto1.6 3.Referto1.7 4.Referto1.7

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