MARKET
Originates from the Latin word “ MARCATUS”
It means:
“A Place where business is conducted.”
OR
A place where buyers & Sellers personally
interact & finalise the deal.
Acc to Definition:
Market is a place or region in which buyers &
sellers Functions.
CONT’D….
Aggregate of condition within which buyers &
sellers make decision that result in the transfer
of goods & services.
Aggregate of demand of the potential buyers of
goods & services.
Marketing is not only advertisement, sales
promotion, Business research or merely selling
along with this it is demand generation and
above this it is a concept, process and
managerial function.
DEFINING
Acc to Kotler:-
“Margeting Management is the analysis,
planning, implementation & control of
programmes designed to bring about desired
exchange with target audiences for the purpose
of mutual or personal gain. It relies heavily on
the adaption & co-ordination of product, price,
promotion & place for achieving effective
response”
MEANING OF MARKETING
Marketing is the basic reasons for the existence of a business organisation. It is a powerful mechanism which alone can satisfy the needs & wants of consumers at the place & price they desire.
The success of a business depends largely on the effectiveness with which its marketing strategies are formulated & implemented.
Marketing helps in having a good range of products in constant demands & suggests to the management the scope for improving & developing new products to satisfy the changing customer needs.
TRADITIONAL
Industry
(A collection of Sellers)
Market
(A collection of Buyers)
Communication
Information
Goods / Services
Money
Elements of a Modern Marketing systems
Supplier
Company
Competitors
Marketing
Intermediaries Final
Consumers
KEY CUSTOMER MARKETS
Consumer Markets
Business Markets
Global Markets
Government Markets & Non Profit
WHO IS THE KING OF THE MARKET NOW A DAY ?
CUSTOMER
Traditional Organisation
Chart
Front Line People
Middle Mgmt
Top Mgmt
CUSTOMER
Modern Customer- Oriented
Organisation
Chart
Top Mgmt
Middle Mgmt
Front Line People
CUSTOMER
DIFF B/W NEED, WANT & DEMAND
Need
Need are the basic human requirement.
eg. Air, food, water, clothing & shelter to survive.
NEED BECOME WANTS
Want
When they are directed to specific objects that might satisfy the
need.
USA: Hamburger, French-fries, Soft drink
INDIA: Chapattis, rice, curry etc.
CONT’D…
Demand
Are wants for specific product backed by an ability to pay.
Companies not only measure how many people want their
product, but also how many actually be willing to buy their
product.
E.g., Mercedes, only a few are willing and able to buy one.
Marketers spends time and money for a market research to
understand the customer’s needs, wants, and demands.
CONT’D…
Customer decide what product suit their need.
So, Marketing satisfies our need by providing
utility. Utilities are:
Form Utility
Person Utility
Exchange Utility
Place Utility
Time Utility
CONT’D…
Form Utility
Person Utility
Raw Material Finished Goods
Converting into
Understanding Customer Requirement
Marketer Customer
Establish Contact
CONT’D…
Exchange Utility
Place Utility
Seller Buyers
Transfer Goods
Channels of
Distribution Customers
Physical
distribution &
Logistic
MARKETING AS A CONCEPT
Mahatma Gandhi preached customer is the
king- product and services satisfy the needs of
the customer
The Essences of this is:-
A) Customer oriented concept
B) Competition oriented
C) Ability to respond to environmental changes
DIFF B/W MARKETING & SELLING
MARKETING
Customer Wants
Aimed at consumer
Volume of profits
It is for long run
(Marketing place new
products, tomorrow’s
markets & future growth).
Emphasis on the buyer’s
needs
SELLING
Focuses on product
Aim of business or money
Focuses on the volume of
sales
Planning is for the short
run / for today’s product &
market
Mainly emphasis on the
seller’s needs.
CONT’D…
MARKETING SELLING
Identifying Consumer Need
Developing an appropriate
product /service to attain
consumer satisfaction
Accomplish organisational goals
through integrated marketing
approach
Produce what Manufacture feel
appropriate
Emphasis only on higher sales
volume
Consumption
(By-End –User)
MARKETING AS A PROCESS-HOW?
Process of marketing involves an exchange of
transactions between buyer and seller
The Essences of this is:-
A) Marketing is an exchange process
B) Both buyer & seller must gain
C) Today’s competitive world it should rest in
long term satisfying relationship between both
of them.
MARKETING PROCESS
Figure 1
Understand
The marketplace
And customer needs
And wants
Design a
Customer-driven
Marketing strategy
Construct a
Marketing program
That delivers
Superior value
Build profitable
Relationships and
Create customer
delight
Capture value from
Customers to
Create profits and
Customer quality
MARKETING AS A MANAGERIAL FUNCTION
The Essences of this is:-
A) Understanding consumer needs
B) Environmental scanning & market opportunity analysis
C) Development of competitive plans & strategy
D) Implementation of marketing plans & development of tactical plans to overcome problems at the market
E) Development of control mechanism
ROLE OF MARKETING IN MODERN ORGANISATION
Main role is of integrating the needs & wants of
the customers to other organisation functions
like production, R&D, finance, personnel etc.
Marketing performs the role of integration
INTEGRATIVE FUNCTION OF MARKETING
Today marketing is not a function of one
department
Responsibility to market the products & to
expand the market & maintain the market
share rests on every individual in the
organization.
OBJECTIVES OF MARKETING
Main Objective:
Demand generation
Match the demand with supply position of the company
Satisfaction of Human Need.
Other Objectives are:
To develop the marketing field.
To develop guiding policies & their implementation for a good
result.
To suggest solution by studying the problems relating to
marketing.
To revive existing marketing function, if something are found.
To take appropriate action in the course of action.
To determine the Marketing Mix.
To satisfy needs & wants of customers.
To raise the standards of life.
CONT’D…
NATURE OF MARKETING
Marketing is both Consumer-Oriented & Competitors-Oriented.
It starts with customers & ends at Customers.
Marketing is the most important function of Management.
Long term objective of marketing is profit maximisation through Customer Satisfaction.
It is a integrated process. (strategies & model)
CONT’D…
It must deliver Goods/Services in exchange of money.
It emphasises the necessity of Consumer-orientation of
the entire business.
It reflects the business mission of a firm.
It has universality.
Marketing increases the standard of living of the
society.
MANAGERIAL ACTIVITIES
Determing Marketing Objectives
Planning the Marketing Function
Organising the Marketing Function
Staffing the Marketing Function
CONT’D…
Directing the Marketing Function
Co-ordinating the Marketing Function
Contolling the Marketing Function
Analysing & Evaluating the Marketing Function
IMPORTANCE OF MARKETING
For the Firm/Manufacturer
For the Consumers
For the Society
As a Business Function
In the Developed Economy
FOR THE FIRM/MANUFACTURER
Helpful in Business Planning & Decision Making
Helpful in Distribution
Helpful in Increasing Profits
Helpful In Communication b/w Firm & Society
FOR THE CONSUMERS
Increase in Customer Satisfaction
Facilitates Choice
Increase in Knowledge
Providing Good Quality Product
FOR THE SOCIETY
Provide Employment
Increase in National Income
Reduction in Distribution Cost
Protection from Depression
AS A BUSINESS FUNCTION
Bases for Business Function
Creation of Utility
Bases for Economic Activities
Production of Socially Useful Products