Module – 1

Concepts of Marketing
Meaning and Definition of Marketing
What is Marketing?
• Marketing is all about identifying and meeting human and
Social needs ( Meeting needs Profitability).

• AMA – “Marketing is the activity , set of institutions, and

process for creating, communicating, Delivering and
exchanging offerings that have value for customers
,clients, partners & society at large.”
Importance of Marketing can be studied as follows
(1) Marketing Helps in Transfer, Exchange and Movement of Goods
(2) Marketing Is Helpful In Raising And Maintaining The Standard Of
Living Of The Community
(3) Marketing Creates Employment.
(4) Marketing as a Source of Income and Revenue
(5) Marketing Acts as a Basis for Making Decisions
(6) Marketing Acts as a Source of New Ideas
(7) Marketing Is Helpful In Development Of An Economy
Objectives of Marketing
1.Creation of Demand:
The marketing management’s first objective is to create demand through various
means. A conscious attempt is made to find out the preferences and tastes of the
consumers. Goods and services are produced to satisfy the needs of the customers.
Demand is also created by informing the customers the utility of various goods and
services.
2. Customer Satisfaction:
• The marketing manager must study the demands of customers before offering
them any goods or services. Selling the goods or services is not that important as
the satisfaction of the customers’ needs. Modern marketing is customer-
oriented. It begins and ends with the customer.
3. Market Share:
• Every business aims at increasing its market share, i.e., the ratio of its sales to the
total sales in the economy. For instance, both Pepsi and Coke compete with each
other to increase their market share. For this, they have adopted innovative
advertising, innovative packaging, sales promotion activities, etc.
4. Generation of profit: The marketing department is the only
department which generates revenue for the business. Sufficient
profits must be earned as a result of sale of want-satisfying products. If
the firm is not earning profits, it will not be able to survive in the
market. Moreover, profits are also needed for the growth and
diversification of the firm.
5. Creation of Goodwill and Public Image:
• To build up the public image of a firm over a period is another
objective of marketing. The marketing department provides quality
products to customers at reasonable prices and thus creates its
impact on the customers.
Needs, Wants, and Demands
Needs:
• The most basic concept underlying marketing is that of human needs.
• Human have many complex needs:
• Physical needs for food, clothing, warmth, and safety
• Social needs or belonging and affection
• Individual needs for knowledge and self – expression
Wants:
• Want are the form taken by human needs as they are shaped by culture and individual personality.
• People have almost unlimited wants but limited resources.
• They want to choose products that provide the most value and satisfaction for their money.
Demands:
• When backed by buying power, wants become demands.
• Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.
customer Value
customer Value is the incremental benefit which a customer
derives from consuming a product after paying in return. The
term value signifies the benefits that a customer gets from a
product. It is the difference between the benefits (sum of
tangible and intangible benefits) and the cost. Customer value
is dependent on the three factors – Quality, Service and Price.
Hence, these three together form the ‘Customer Value
Triad(triangle).
value creation

The performance of actions that increase the worth of

goods, services or even a business. Many business
operators now focus on value creation both in the
context of creating better value for customers
purchasing its products and services, as well as for
shareholders in the business who want to see their
stake appreciate in value.
Marketing as an Exchange Process
Approaches in Marketing
1) Product Approach:
• This approach refers to the study of a product in detail. The marketing situation of each product chosen for study is
examined from such viewpoints as sources and conditions of supply, producer marketing organizations, policies, different
middlemen (wholesalers and retailers etc.) who take part in distributing the product.
(2) Organizational Approach:
• This approach relates to various marketing business units as institutions viz., wholesalers, retailers etc., engaged in
marketing. In applying this approach, a thorough study with regard to a particular middleman is undertaken. For example,
in retailing, nature and significance of retailing in terms of functions and services performed and rendered by retail
institutions like departmental stores, multiple shops, etc.
(3) Activities based Functional Approach:
• As the very name suggests this approach comprises of the study of various activities performed in the process of
marketing of goods and services. It analyses each function in relation to the importance of its performance.
• By analyzing and studying every function in detail and problems confronted in the performance of each function, it is
possible to understand marketing properly.
(4) The Decision Making Approach:
• This approach is of vital importance from the viewpoint of marketing management. Various decisions are taken at every
level of management. In successful marketing, decision making occupies an important place. The marketing manager
should be very expert and competent in his job so that he takes proper decisions for marketing the goods and services.
Difference between Marketing and selling
• marketingvsselling-130917023523-phpapp01 (1).pdf