Meaning of Marketing :

Marketing is 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.
Marketing is the process by which companies create
customer interest in products or services. It generates the strategy that
underlies sales techniques, business communication, and business
development. It is an integrated process through which companies build
strong customer relationships and create value for their customers and for
themselves.”
According to Philip kotler , “Marketing is the social process by which
individuals and groups obtain what they need and want through creating and
exchanging products and value with others”
The total of activities involved in the transfer of goods from the
producer or seller to the consumer or buyer, including advertising, shipping,
storing, and selling is known as marketing.
 Generally, by marketing we mean the selling and buying of
goods and services of goods and services. The seller sales goods and services
and, in return, he receives payment from the buyer in the form of money or
something else. But, actually the concept of marketing is much broader than
what the general people think. Marketing is the performance of business
activities that directs the flow of goods and services from producer to consumer
or user.
According to Philip Kotler , “Marketing is a social
and managerial process by which individuals and groups obtain what they want
through creating and exchanging products and value with others”
From the above definition, we can understand marketing
in the following ways :
• Marketing is the performance of business activities.
• Marketing consists of activities facilitating exchanges.
• Marketing is performed within a set of dynamic environmental forces.
• Marketing aims at fulfilling customer, organisational and social goals.
Nature of Marketing :
The nature of marketing are as follows :

i) Marketing is an Economic Function :

Marketing embraces all the business activities involved in
getting goods and services , from the hands of producers into the hands of final
consumers. The business steps through which goods progress on their way to
final consumers is the concern of marketing.

ii) Marketing is a Legal Process by which Ownership Transfers :

In the process of marketing the ownership of goods transfers
from seller to the purchaser or from producer to the end user.

iii) Marketing is a Managerial function :

According to managerial or systems approach - "Marketing is the
combination of activities designed to produce profit through ascertaining,
creating, stimulating, and satisfying the needs and/or wants of a selected
segment of the market."
iv) Marketing is a System of Interacting Business Activities :
Marketing is that process through which a business enterprise,
institution, or organisation interacts with the customers and stakeholders 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.

v) Marketing is a social process :

Marketing is the delivery of a standard of living to society.
According to Cunningham and Cunningham (1981) societal marketing
performs three essential functions:-
a) Knowing and understanding the consumer's changing needs and wants;
b) Efficiently and effectively managing the supply and demand of products and
services; and
c) Efficient provision of distribution and payment processing systems.
Scope of Marketing :
The scope of marketing are as follows :
i) Study of Consumer Wants and Needs :
Goods are produced to satisfy consumer wants. Therefore study is
done to identify consumer needs and wants. These needs and wants motivates
consumer to purchase.

ii) Study of Consumer behaviour :

Marketers performs study of consumer behaviour. Analysis of
buyer behaviour helps marketer in market segmentation and targeting.

iii) Production planning and development :

Product planning and development starts with the generation of
product idea and ends with the product development and commercialisation.
Product planning includes everything from branding and packaging to product
line expansion and contraction.
iv) Pricing Policies :
Marketer has to determine pricing policies for their products. Pricing
policies differs form product to product. It depends on the level of competition,
product life cycle, marketing goals and objectives, etc.

v) Distribution :
Study of distribution channel is important in marketing. For maximum
sales and profit goods are required to be distributed to the maximum consumers at
minimum cost.

vi) Promotion :
Promotion includes personal selling, sales promotion, and advertising.
Right promotion mix is crucial in accomplishment of marketing goals.

vii) Consumer Satisfaction :

The product or service offered must satisfy consumer. Consumer
satisfaction is the major objective of marketing.
Role of Marketing in Organisation & Society
Marketing is important activity to organisation and society which
can be justified from the following points :

A) Importance to the Firm/Organisation :

• It is the basis of organisation’s existence.
• It creates sources of revenue.
• It provides adequate information for planning and decision making.
• It helps in management of innovation and change.

B) Importance to Economy and Society :

• Source of massive employment.

• Maintains supply and demand situation in the country.
• Assures the desired rate of economic growth.
• Marketing helps to increase national income
Core Concepts of Marketing :
The core /basic concepts of marketing are explained with the help
of following points :
i) Need, Wants and Demand:
Marketing begins with human needs and wants. Needs are feelings
of deprivation of some satisfaction. People need food, air, water, shelter to survive.
Wants are desire for satisfaction of needs. Wants which are backed by the
purchasing power become demand.

ii) Products (Goods, Services and Ideas):

A product is anything that can be offered to satisfy a need or want.
A product may consist of three components- physical goods, services and ideas.

iii) Value, Cost and Satisfaction:

Value means the customer's estimate of the product's overall
capacity to satisfy his/her needs. Cost is the price which a customer pays the
products. Satisfaction is inner felling.
iv) Exchange and Transaction:
Exchange is the process of obtaining a desired product from someone by
offering something in return. Exchange leads to transactions.

v) Relationship and Networks:

Relationship marketing refers to the process of building long-term
satisfying relationship with customer, distributors and suppliers.

vi) Marketing Environment:

Marketing environments are divided into two parts. Internal
environment includes customer, suppliers, managements, employees, productions,
etc. On the other hand external environment includes socio cultural environment,
political, technological, economic environment, etc.

vii) Competition:
Competition may come in many forms. A firm always competes with the
existing player. Threat of potential competitor is also taken in consideration.
Substitute product is also a competitor to firm.
viii) Supply Chain:
Supply chain is a longer channel includes backward and forward
logistic. It stretches from raw materials to delivery of finished goods to the
ultimate consumer. Capturing higher value of supply chain gives firm
competitive advantage over competitor firms.

ix) Segmentation , Targeting and Positioning :

Segmentation is a process of dividing a large heterogeneous
market into the smaller and specialized market segments, whose response
differ from one another.
Target markets are the specified or identified market
segments where the marketer wants to enter into for obtaining expected
benefits. In other words, target markets, are those groups of people whom the
firm wants to serve or wants to design product or services to meet their needs
and wants.
Positioning is an act of creating demand or image in the customers
mind for the product offered for sale.