2. Introduction
The term ‘market’ originates from the Latin noun “Marcatus” which means “a place
where business is conducted.” A layman has somewhat similar connotations of the
word ‘market’ which brings to his mind the vista of place where the buyers and sellers
personally interact and finalize.
The word of marketing refers to the processes involved in the distribution of exchange
of goods and services. Marketing activities are those most directly concerned with the
demand.
3. Introduction to Marketing
A human need is a state of felt deprivation of some basic satisfaction. People require
foods, clothing, shelter, safety, belonging, esteem etc. these needs exist in the very
nature of human beings. Human wants are desires for specific satisfiers of these needs.
For example, cloth is a needs but Raymond's suiting may be want. While people’s
needs are few, their wants are many. Demands are wants for specific products that are
backed up by an ability and willingness to buy them. Wants become demands when
backed up by purchasing power.
4.
5. Market
Market is a place where buyers and seller together and exchange their goods and
services for money and money worth.
A public place where buyers and sellers make transactions, directly or via intermediaries.
A market consist of all the existing and potential consumers sharing a particular need or
want who might be willing and able to engage in exchange to satisfy that need or want
Definition
“It is a place or area of potential exchange” ---- Phillip Kotler
6. Classification of Market
1. On the basis of area
2. On the basis of time
3. On the basis of transactions
4. On the basis of regulations
5. On the basis of volume of business
6. On the basis of nature of goods
7. On the basis of nature of competition, and
8. On the basis of demand and supply
7. Marketing
Marketing is recognized as a special management function just like organizing,
staffing, financing, and producing. But the significance of marketing as a vital
function has been understood not by many.
In fact, the marketing function is closely related to the basic objective of business.
Marketing Management is a business discipline which is focused on the practical
application of marketing techniques and the management of a firm's marketing
resources and activities.
8. Marketing
Marketing is as old civilization. Its started with the use of symbols and signs to
transact and communicate with consumer.
Marketing is challenging and exciting. The solving of marketing problems requires
insight, experience and analytical ability.
Marketing is very important for company and consumer. Company has selling the
goods by market and customers have buying the goods by market. Market is
coordinate between company (business) and consumer.
9.
10. Importance of Marketing
Marketing process brings goods and services to satisfy the needs and wants of the
people. It helps to bring new varieties and quality goods to consumers. By making
goods available at all places, it brings equipment distribution.
Marketing converts latent demand into effective demand. It gives wide employment
opportunities It creates time, place and possession utilities to the products. Efficient
marketing results in lower cost of marketing and ultimately lower prices to
consumers.
It is vital link between production and consumption and Primarily responsible to
keep the wheel of production and consumption constantly moving. It creates to
keep the standard of living of the society
11. Definitions of Marketing
There are many definitions of marketing.
“Marketing is nothing but demand creation and customer satisfaction.” In which,
Discover and translate consumer need and wants into product and service and further
expand the demand.
Managerial definition: “ Marketing is the art of selling products.”
American Marketing Association defines: “Marketing is the process of planning and
executing the conception, pricing, promotion, and distribution and ideas, goods,
services to create exchange that satisfy individual and organizational goals.”
Social (societal) definition: “Marketing is a societal process by which individuals and
groups obtain what they need and want through creating, offering and freely
exchanging products and services of value with others.”
12. Definitions
P. Kotler defines “Marketing as the set of human activities directed at facilitating and
consummating exchange. The essence of marketing is exchange of products and the
transactions to satisfy human needs and wants. All business activities facilitating the
exchange are included in marketing.”
“Marketing is defined as an ongoing social process for the creation and delivery of
standards and style of life.”
“Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and freely exchanging products and services of
value with others.”
“Marketing is a system of integrated business activities designed to develop strategies and
plans to the satisfaction of customer wants of selected market segments or targets.”
13. Definitions
P. Drucker says that, “ Marketing is not merely a function of business entire but it is the
business and it is synonyms with the whole business unit or a view of the entire
business as the economic organ to provide goods and services .”
Leslie Rodger define: “Marketing is the primary management function which organizes
and directs the aggregate of business activities involved in converting customer
purchasing power into effective demand for a specific product or service and in moving
the product or service to the final consumer or user so as to achieve the company-set
or other objectives.”
Paul Mazur defines, “The delivery of a standard of living to society.”
14. Marketing
Marketing is a societal process by which individuals and groups obtain what they
(consumers) need and want through creating, offering and freely exchanging
products and service of value to each other.
Today competitions are very high and consumer demand increase. Thus
Marketing management is very important for take sure decisions for business
and set objectives. Marketing is the main pillar to achieve business goals.
15. Nature/ Characteristics of Marketing
It is operational in nature
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 organizations
16. Objectives of Marketing
1. To apply effective and intelligent modern marketing policies
2. To develop the market field
3. To develop and implement guiding policies for better results
4. To suggest solutions by studying the problems relating to marketing
5. To find sources for further information concerning the market problems
18. Production Concept
Production Concept:
This is a old marketing concept till 1930’s. The main aim of the concept is utilization of
complete organization capacity. In this stage the management thinks that the sales department
will sell whatever the production department produces. No need of special marketing efforts.
This is suitable in two situations
Where demand for a product is more than supply
Where the cost of the production is high Examples is Hindustan motors and premier
automobiles
19. Product Concept:
Product Concept
This concept prevailed in between 1930-1940. the customers offers best quality
products always. So the management should improve the product continuously.
Where the product have quality customer response is more. Here no need of
promotion activates.
The main concept involved in this is “GOOD WINE NEEDS NO BUSH”.
If the product is good and price is reasonable there is no need for special marketing
efforts. If manufacturer adopted product concept it is like a Blind Love. This concept
called “Marketing Myopia”(Prof. T. Levitt)
20. Selling Concept:
Selling or sales concept. This is after 1940. This concept said that available the best
product is not enough. Higher pressure salesmanship and heavy doses of advertisement
are essential to move the products in the market.
Even the best product cannot be sold out in the market with out the help of sales
promotion and aggressive salesmanship. The essence of this concept is “Goods are not
bought but sold”. This concept states that goods are not bought but they have to be
sold with the help of salesmanship, advertisement and service.
21. Maketing / Customer orientation:
It was started in 1950’s in USA. The main aim is to satisfy the needs, wants, desires of potential
customers. Here the starting point is customer than product Finding wants and needs of
customer and filling them is the main aim of this concept.
Market research provides information relating to wants, needs, desires, wants, aspirations etc.
of the consumers. Theme is “Organization likes customer not the product” All business
operations are revolve around customer satisfaction & services under it.
22. Societal Oriented Concept
It is a broadest marketing concept. It takes into consideration not only consumer
satisfaction but also social welfare. Social welfare speaks of pollution free
environment and quality of human life.
Every organization should adopt socially responsible marketing polices and plans in
order to assure social welfare in addition to consumer welfare.
23. INDIAN MARKETING ENVIRONMENT
“Surrounding which influence a particular activity” is called Environment.
The market is also influenced by a number of forces which are part of the marketing environment
Marketing Environment a force and actors that effect the ability of a company to develop and
maintain successful relationships with its target customers.
The organization which are producing a number of products, services are influenced by a group of
factors which are operating within and outside the organization. The different forces of environment
provide a number of opportunities and threats to the organization. Hence a marketer must develop
marketing mix decisions as per the changes in the marketing environment
25. TYPES OF MARKETING ENVIRONMENT NEED
Audit of environment assess nature of environment Key environment factors Identify
opportunities & Threats Strategic Decision Making.
The Marketing environment may be classified as under
Internal External
It can be classified as
Micro Macro
Further another classification is as under
Controllable Uncontrollable
26. Factors
External Factors The variables of Macro Environment may be classified as Economic Environment: It
was divided into economic conditions prevailing in a country, industrial conditions and availability of
resources for production Demographic Environment: It was divided based on population, city size,
nationality, age, sex, education, martial status, family size, religion, family life style etc.
Social Cultural Environment: The social environment of a country influence the value system of the
country which effects the marketing the product. Break up of the joint family system Women
employment Changes in the attitude towards physical fitness Increase in the attitude towards
education Change in life style of people Growth of consumerism.
Political & Legal Environment Marketing Decisions are also affected by the forces of political and
legal environment. The political changes may take the following forms
1. Stability of tenure of government 2. Political parties and their philosophies
27. Factors
Political & Legal Environment Essential commodities Act 1955 Consumer protection act
1986 Environment Protection act 1986 Monopolies & Restrictive Trade Practices Act 1969
Trade & Merchandise Markets Act 1958 Drugs & Cosmetics Act and Weights & Measures
Act, Essential Commodities act 1955
Technological environment: This environment provides on opportunity and a threat for the
growth of the organization.
The factors to be considered in 1. Expenditure on research and development 2.
Concentration on product improvements 3. Unlimited innovations in technology 4.
Emphasis on regulation of technological change
28. Importance of Environmental Analysis
Importance of Environment Analysis, It helps to create a general understanding about
changes in the environment It guides to better planning of strategies relating to
government and other departments It also suggest necessary changes in allocation of
scarce resources.
It also helps to identify various opportunities and threats which are posed by environment
It provides a broad and general education for managers to implement necessary
strategies
29. Role of marketing department in an
organization
Focus on the Customer
Monitor the Competition
Own the Brand Create New Ideas(customer acquisition campaigns, keep-in- touch
programs, new product promotions, retention efforts).
Communicate Internally
Manage a Budget
Understand the ROI
Set the Strategy, Plan the Attack, and Execute Find & Direct Outside Vendors
30.
31. Difference between Selling & Marketing
Selling starts with the seller, Marketing starts with the buyers.
Selling emphasizes on profit Marketing emphasizes on identification of a market Opportunity.
Selling views business as a “Goods producing processes”. Marketing views business as a
customer satisfying process.
It over emphasizes the ‘exchange’ aspect It concerns primarily with the ‘vale satisfactions’
Seller’s convenience dominates the formulation of the ‘marketing mix’. Buyer determines the
shape of the ‘marketing mix’.
32. Difference between Selling & Marketing
The firm makes the product first the then decides how to sell it and make profit. The
customer determines what is to be offered as a ‘product’ and the firm makes a ‘total
product offering’ that would match the needs of the customers.
Seller’s motives dominate marketing communications. Marketing communications acts as
the tool for communicating the benefits/ satisfactions of the product to the consumers
Costs determine price. Consumer determines price.
There is no coordination among the different functions of the total marketing task.
Emphasis is on integrated marketing approach.
‘Selling’ views the customer as the last link in the business. ‘Marketing’ views the customer
as the very purpose of the business
33. Market Segmentation
A market segment is a meaningful buyer
group having similar wants. Segmentation is
a consumer oriented marketing strategy.
market segment is the portion of the market
defined on the basis of the shared
characteristics of people it covers
According to Philip Kotler: Market
Segmentation is the sub-dividing of a market
into homogeneous sub-set of customers
where any sub-set may conceivably be
selected as a market target to be reaches
with a distinct marketing mix.
34.
35. Benefits of market Segmentation
A more precise definition of the market
A more effective marketing program
Better assessment of the completion
Better allocation of resources
37. Geographic segmentation takes place
based on regional differences in consumer
tastes for products as whole are well-
known.
It helps the marketer to concentrate their
efforts to the exact places, organizational,
promotional, and distributional efforts.
38. Demography is the study of human
population in terms of its size, density, and
distribution.
It also includes, family income, size of the
family and home ownership
39. Socio-cultural segmentation includes age,
group, gender, family size, income,
occupational level of educational religion
ethnic status, social class and the like.
40. Psycho-graphic characteristics include
personality attitudes and life styles.
Personality variables are- dominance,
aggressiveness, objectivity, achievement,
motivation and the like.
Lifestyle include, opinion, interests and
values.
41. Identified unstated attitude towards
product or services
Develop new product
Increasing advertising response
Increase market share
The Why instead of What of purchase
decision
Increase purchase size
Refine and enhancing the data mining
results
Increase customer loyalty
Increase frequency of purchase
42. Advantages of segmentation
Advantages of Segmentation Various advantages of market segmentation are:- Helps
distinguish one customer group from another within a given market Facilitates proper
choice of target market. Facilitates effective tapping of the market. Helps divide the
markets and conquer them. Helps crystallize the needs of the target buyers Makes the
marketing effort more efficient and economic Helps spot the less satisfied segments and
succeed by satisfying such segments. Makes the marketing effort more efficient and
economic Helps spot the less satisfied segments and succeed by satisfying such segments
Brings benefits not only to the marketer but also to the customer as well.
43. Effective Market Segmentation
Effective Market Segmentation includes:
Measurability (Interms of size and purchasing power)
Accessibility (Reached and served through suitable means of distribution of
promotion)
Substantiality(Large and profitable)
Differentiability (Clearly distinguishable)
Actionability(to be effective makers of segmentation should be compatible with
the manpower, financial and managerial resources)
44. Target Marketing
Market targeting refers to picking a specific
group or small set of groups to which a
business will advertise. It is based on the
idea that, because it's not really possible to
make or do something that will please
everyone, a business has to specialize.
Companies select an advertising group to
strengthen their brands, as well as to get an
idea of potential sales for production or
financing purposes. They can use three main
approaches for this: universal, selective or
concentrated. It is common for an
organization to reevaluate its target groups
and related campaigns over time because
markets are always somewhat flexible
45. Target Market Strategies
A successful segmentation involves,
1. Great deal of knowledge
2. Application of segmentation theory
through data collection and analysis of
market
3. Apply the criteria namely, identification
and measurement, importance, economic
assessability, divergence in response to
marketing effort and stability.
4. Develop the action plan program
46. Undifferentiated Marketing:
it is primarily defended on the grounds
of cost economics. This strategy is more
vulnerable to competition than the other
targeting strategies.
Differentiated Marketing:
in this strategy, a firm decides to operate
in several or all segments of the market but
designs separate products and marketing
programmes for each.
47. Concentrated Marketing Strategy, focuses
on only one or a few segments, instead of
spreading itself thin in many parts of the
market.
Customized marketing strategy focuses on
narrow market. Marketer produce tailor-
made products to the customer.
48. Requirement of market Segmentation
The Company Resources: financial resources of the company dictated the choice of strategy
The Product Homogeneity: most of the customer do not perceive differences in the
commodities such as salt, steel, grapes etc undifferentiated strategy is applicable than any other
strategy
The Product Life Cycle: when a firm introduces a new product based on the firm’s interest. As the
product moves through its stages towards saturation stage through the mature stage of the PLC
the firm tends to purse a strategy of differentiated marketing
The Market Homogeneity: it refers to the degree to which the consumers are alike in their needs,
preferences, and other characteristics.
The competitor’s marketing strategy: this refers to what the firm’s competitors are doing, the
firm compete through undifferentiated marketing approach.
The policy of the government: every marketer gives due weightage to the impact of
governmental policy on his line of activities.
