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Understanding Market:

Before we understand the meaning of marketing, we should know what a market is. Market is a

place where buyers and sellers meet each other to enter into transactions. The transactions

involve transactions of ideas, goods, services and information. The exchange of goods or

services for money is a transaction.

Market comprises not only the actual buyers but also the potential buyers of a product or service.

The potential buyers are those people who profess some level of interest in a good / service/

information and who can afford it. For example, a mill produces a cotton cloth. The mill

(manufacturer & seller) and all the potential and actual buyers of the cloths will constitute the

market.

The presence of sellers and actual & potential buyers of a products or services over the Internet

is known as "Online market" or "web market".

In a broadest sense: A market is any one of a variety of different systems, institutions,

procedures, social relations and infrastructures whereby person‟s trade, and goods and services

are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers

to exchange things"

Can Two Persons make a Market?

Two persons can trade. However to create a market it takes at least three persons to have a

market, so that there is competition on at least one of its two sides.

The offerings may include physical products, Services, Ideas and information. These offerings

have values for their customers.

"Exchange" is central to marketing: Exchange in which two or more parties give something of

value to each other to satisfy felt needs is the core of the market place. Exchanges may include

tangible goods for money or also intangible services.

Features of Markets:

As mentioned above, two people can trade but cannot create a market. In markets, the

buyers outnumber sellers.

An individual buyer is weaker than any individual seller is economically, but the total

economic power of even a fraction of the buyers is enough to assure the survival or death

of most businesses.

The sellers compete to sway the largest number of buyers they can to their, rather than

another seller‟s (competitor‟s) offerings and attempt to meet competition and attract the

largest number of buyers, are influenced as well, regularly modifying their behaviors so

they will have more success, with more buyers, over time.

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Definition of Marketing:

After understanding the Market in the last chapter, now let us understand what the marketing is.

In market, the sellers and buyers exchange ideas, goods, services and information for money.

The ideas, goods, services and information possess a value for the customer. Every organization

or firm has to create a value for its product or service and this is very much essential for its

survival. The economists call this value “utility”. Utility is the want-satisfying power of a good

or service. The utility is of four kinds- form utility, time utility, place utility and ownership

utility.

Form utility is created when the firm converts raw materials and component inputs into finished

goods and services. Any firm‟s production function is responsible for creating form utility and

marketing provides important inputs that specify consumer preference. Marketing creates the

other three utilities, time utility, place utility and ownership utility. Time and place utility occur

when consumers find goods and services available when and where they want to purchase them.

EBay and other online retailers have a 24X7 format. This format emphasizes the time utility.

Cola vending machines at malls and complexes focus on providing place utility for people

buying snacks and soft drinks. Similarly, dial a pizza creates place utility. ATMs in banks also

create the place utility. The transfer of title to goods or services at the time of purchase creates

ownership utility.

Utility is created by marketing. The firms determine what products or services may be of interest

to customers. In simple words, the strategy to use in sales, communications and business

development is called marketing. Marketing is an integrated process through which a firm

creates value for customers and builds strong customer relationships in order to capture value

from customers in return.

Just like transaction is central to a market, customer is central to marketing. Marketing involves

identifying, retaining and satisfying the customer.

Marketing is not an isolated process. It is an integrated process which involves the planning,

execution, pricing, distribution, promotion and after sales service. The American Marketing

Association as has defined the marketing as:

"Marketing is the process of planning and executing the conception, pricing, promotion

and distribution of ideas, goods and services to create exchanges that satisfy individual

and organizational objectives"

The latest definition of Marketing by AMA in October 2007 was revised as:

"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."

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Difference between Selling and Marketing

The market is a place for economic transactions. The buying and selling are two sides of the

same "coin" that is "transaction'. Selling is different from marketing. While selling means

offering to exchange something (intangible or tangible) of value for something else, marketing

means much more. Selling is a part or component of marketing. Marketing may start even

before production of goods and services. Marketing involves analyzing consumer needs,

securing information needed to design and produce goods or services that match buyer

expectations, creating, and maintaining relationships with customers and suppliers.

The selling starts from the factory in case of tangible goods, while marketing starts in the market

place. The focus of selling is "product or service" which exists, while the focus of marketing is

"customer needs". The means of selling is a sale and to conclude a sale depends upon the

"Persuading art" of the sales person, means of marketing is a complex, integrated and

interdependent factors.

The ultimate end of selling is profit while the ultimate end of the marketing is "Customer

satisfaction".

A common person, due to continuous exposure to advertising and personal selling links

marketing and selling. There are some misconceptions or myths regarding the selling and

marketing, biggest of which is "Marketing and selling are synonymous". The other myths are:

1. Marketing job is to create good advertising campaign

2. Marketing means to push the product to customer.

3. Marketing is transaction oriented.

4. Marketing is short term strategy

5. Marketing is an independent function.

6. Marketing is part of selling.

Both marketing and selling promote a product or service but marketing involves selling,

promoting, educating and exciting people about a product or service. Marketing builds a brand.

Who is a customer?

A customer, also known as a client is a current or potential buyer of a product -good or service.

The firm or organization is seller. A potential customer is also known as prospective customer or

client. A customer may view, check or experience the service but not purchase.

The word "customer" has derived from custom, which means a habit (of going to frequently to a

shop). In today's cutthroat competition, "the Customer is a King". Marketing professionals

ironically say “Customer is always right".

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The biggest challenge is for an organization is - how to create a customer? Creating a customer

means identifying needs in the marketplace, finding out which needs the organization can

profitably serve and developing an offering to convert potential buyers into customers.

(Guiltinan and Paul) The marketing professionals are mostly responsible to create customers.

The activities, which are necessary to create customers, are as follows:

To identify the customer needs.

To design the goods and services that meet those identified needs

To communicate the information about those goods and services to prospective buyers

To make goods and services available at times and places that meet customers‟ needs

To price goods and services to reflect costs, competition and customers‟ ability to buy

To provide necessary service and follow-up to ensure customer satisfaction after the

purchase

Evolution of Marketing

Marketing has changed over the centuries, decades and years. The production centered system

systematically changed into relationship era of today and over the period; the specializations

have emerged such as sales versus marketing and advertising versus retailing. The overall

evolution of marketing has given rise to the concept of business development. Marketing has

taken the modern shape after going through various stages since last the end of 19th century. The

Production oriented practice of marketing prior to the twentieth century was conservative and

hidebound by rules-of-thumb and lack of information. Science & technology developments and

specially the development of information technology have now changed the way people live, the

way people do business and the way people sell and purchase. Following is a short summary of

the various stages of evolution of marketing.

Production Orientation Era: The prevailing attitude and approach of the production

orientation era was -"consumers favor products that are available and highly affordable" .

The mantra for marketing success was to “Improve production and distribution". The rule

was "availability and affordability is what the customer wants". The era was marked by

narrow product-lines; pricing system based on the costs of production and distribution,

limited research, primary aim of the packaging was to protect the product, minimum

promotion. Advertising meant, "Promoting products with a lesser quality".

Product Orientation Era: The attitude changed slowly and approach shifted from

production to product and from the quantity to quality. The prevailing attitude of this

period was that consumers favor products that offer the most quality, performance and

innovative features and the mantra for marketers was „A good product will sell itself‟, so

does not need promotion.

Sales Orientation Era: The increased competition and variety of choices / options

available to customers changed the marketing approach and now the attitude was

"Consumers will buy products only if the company promotes/ sells these products". This

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era indicates rise of advertising and the mantra for marketers was “Creative advertising

and selling will overcome consumers‟ resistance and convince them to buy".

Marketing Orientation Era: The shift from production to product and from product to

customers later manifested in the Marketing Era which focused on the "needs and wants

of the customers” and the mantra of marketers was " „The consumer is king! Find a need

and fill it‟. The approach is shifted to delivering satisfaction better than competitors are.

Relationship Marketing Orientation Era: This is the modern approach of marketing.

Today's marketer focuses on needs/ wants of target markets and aims at delivering

superior value. The mantra of a successful marketer is „Long-term relationships with

customers and other partners lead to successes

The following sentences summarize the above evolution of marketing.

1. Production era: „Cut costs. Profits will take care of themselves‟

2. Product era: „A good product will sell itself‟

3. Sales era: „Selling is laying the bait for the customer‟

4. Marketing era: „The customer is King!‟

5. Relationship marketing era: „Relationship with customers determine our firm‟s future‟

Features of Marketing:

The marketing Management refers to planning, organizing, directing, control of the activates

which facilitate the exchange of goods and services between the producers to end consumers.

Firms today need to spend money to create time, place and ownership utilities .The main features

of modern marketing are as follows:

1. Marketing is a science as well as art: Marketing has evolved from the economics but it

has a closer relationships with social and behavioral sciences. Marketing is closely

associated with streams of science as well humanities and subject lines such as

Economics, Law, Psychology, Anthropology, Sociology, Information Technology etc.

Marketing heavily depends upon the demographic features of the target market, political

environment, philosophy, mathematics, statistics etc.

2. Exchange is essence of marketing: Marketing revolves around commercial exchange.

This also involves exchange of technology, exchange of information and exchange of

ideas.

3. Marketing is Goal Oriented: The ultimate goal of marketing is to generate profits

through the satisfaction of the customer.

4. Marketing is a continuous process: Marketing is not an isolated, static process but is a

complex, continuous and interrelated process. It involves continuous planning,

implementation and control. It is an important functional area of the management.

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5. Marketing is Consumer Oriented: All firms exist because of their business to satisfy

the human needs, wants and demands. The ultimate objective of marketing is to find out

what the consumer wants and how to fulfill consumer need. This leads to production of

the goods and services as per the needs of the customer.

6. Marketing starts with consumer and ends with consumer: Marketing is consumer

oriented and it is very important to know what the consumer wants.

Functions of Marketing:

The ultimate aim of marketing is exchange of goods and services from producers to consumers

in a way that maximizes the satisfaction of customer‟s needs. Marketing functions start from

identifying the consumer needs and end with satisfying the consumer needs. The universal

functions of marketing involve buying, selling, transporting, storing, standardizing and grading,

financing, risk taking and securing marketing information. However, modern marketing has

some other functions such as gathering the market information and analyzing that information

(Market planning and strategy formation). To assist in product designing and development also

comes under the marketing functions. The marketing functions have been discussed here briefly:

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1. Market Information: To identify the needs, wants and demands of the consumers and

then analyzing the identified information to arrive at various decisions for the successful

marketing of a firm‟s products and services is one of the most important functions of

marketing. The analysis involves judging the internal weaknesses and strengths of the

organization as well politico-legal, social and demographic data of the target market. This

information is further used in market segmentations.

2. Market Planning: Market-planning aims at achieving a firm‟s marketing objectives.

These objectives may involve increasing market presence, dominate the market or

increase market share. The market planning function covers aspects of production levels,

promotions and other action programs.

3. Exchange Functions: The buying and selling are the exchange functions of marketing.

They ensure that a firm's offerings are available in sufficient quantities to meet customer

demands. The exchange functions are supported by advertising, personal selling and sales

promotions.

4. Product Designing and development: The product design helps in making the prodyct

attractive to the target market. In today‟s competitive market environment not only cost

matters but also the product design, suitability, shape, style etc. matter a lot in taking

production decisions.

5. Physical Distribution: The physical distribution functions of marketing involve

transporting and storing. The transporting function involve moving products from their

points of production to locations convenient for purchasers and storing function involve

the warehousing products until needed for sale.

6. Standardization and Grading: Standardization involves producing goods at

predetermined specifications. Standardization ensures that product offerings meet

established quality and quantity. It helps in achieving uniformity and consistency in the

output product. Grading is classification of goods in various groups based upon certain

predetermined characteristics. It involves the control standards of size, weight etc.

Grading helps in pricing decisions also. The higher quality goods and services attract

higher prices.

7. Financing: The financing functions of marketing involve providing credit for channel

members or consumers.

8. Risk Taking: Risk taking is one of the important marketing functions. Risk taking in

marketing refers to uncertainty about consumer purchases resulting from creation and

marketing of goods and services that consumers may purchase in future.

9. Packaging, labeling and branding: packaging involves designing package for the

products, labeling means putting information required / specified on a product‟s covering.

Packaging and labeling serve as promotional tools now a days, Branding distinguishes

the generic commodity name to a brand name. For example, Wheat Flour is a generic

name of a commodity while “Ashirvad Aata” is a brand name. In service industry, also

branding matters a lot.

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10. Customer Support: Customer support is a very important function of marketing. It

involves pre sales counseling, after sales service, handling the customer complaints and

adjustments, credit services, maintenance services, technical services and consumer

information. For example, water purifier comes with an onsite service warranty of 7 years

helps in marketing and is an important marketing function as well.

Importance of Marketing:

Whether a firm is a profit making organization or a nonprofit making organization, marketing

has to play a very important role in the firm‟s business, society and country. While raising the

standard of living by designing products suitable to needs and wants of the customers, marketing

also helps in development of the national economy. Producing goods and services for the society

according to the needs and create demand for them and thus improving the standard of living of

the people is one of the most important role played by marketing. For a firm, marketing helps in

reducing the cost of business by reducing market distribution cost. Marketing also helps in

increase in the employment opportunities. The successful marketing channel involves services of

wholesalers, retailers, transporters; storage functionaries finance professionals, insurance

services and so on. By creating, maintaining and increasing the demand marketing indirectly

adds to the national income. Marketing also helps to build a cushion against slack business and

recession.

Meaning and Functions of Marketing Management:

Management is the processes of planning, organizing directing motivating and coordinating and

controlling of various activities of a firm. Marketing is the process of satisfying the needs and

wants of the consumers. Management of marketing activities is Marketing Management.

Management Guru Philip Kotler defines marketing as “Marketing Management is the analysis,

planning, implementation and control of programs designed to bring about the desired exchanges

with target audiences for the purpose of personal and mutual gain. It relies heavily on adoption

and coordination of the product, price, promotion and place for achieving response”:

In other words, a business discipline, which is focused on the practical application of marketing

techniques and the management of a firm‟s marketing resources and activities, is Marketing

Management.

Marketing Management focuses upon the psychological and physical factors of Marketing. The

Marketing managers are responsible for influencing the level, timing, and composition of

customer demand accepted definition of the term. While the psychological factors focus upon

discovering the needs and wants of the consumer and the changing patterns of buying behavior,

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habit etc. the physical factors focus upon fulfilling those needs and demands buy better product

design, channel of distribution and other functions.

In summary, Marketing in action is marketing Management.

Marketing Management has the responsibility of to perform many functions in the field of

marketing such as planning, organizing, directing, motivating, coordinating and controlling. All

these function aim to achieve the marketing goals.

Following is a brief summary of functions of Marketing

1. Marketing Objectives: Marketing Management determines the marketing objectives.

The marketing objectives may be short term or long term and need a clear approach.

They have to be in coherence with the aims and objectives of the organization.

2. Planning: After objectively determining the marketing Objectives, the important

function of the marketing Management is to plan how to achieve those objectives. This

includes sales forecast, marketing programs formulation, marketing strategies.

3. Organization: A plan once formulated needs implementation. Organizing functions of

marketing management involves the collection and coordination of required means to

implement a plan and to achieve pre-determined objectives. The organization involves

structure of marketing organization, duties, responsibilities and powers of various

members of the marketing organization.

4. Coordination: Coordination refers to harmonious adjustment of the activities of the

marketing organization. It involves coordination among various activities such as sales

forecasting, product planning, product development, transportation, warehousing etc.

5. Direction: Direction in marketing management refers to development of new markets,

leadership of employees, motivation, inspiration, guiding and supervision of the

employees.

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6. Control: Control refers to the effectiveness with which a marketing plan is implemented.

It involves the determination of standards, evaluation of actual performance, adoption of

corrective measures.

7. Staffing: Employment of right and able employees is very crucial to success of a market

plan. The market manager coordinates with the Human Resource Manager of an

organization to be able to hire the staff with desired capability.

8. Analysis and Evaluation: The marketing management involves the analysis and

evaluation of the productivity and performs mace of individual employees.

Basic Marketing Concepts:

Anything that has a value can be marketed. It can be a product, a service, a place, a person, an

idea, information, event, organization, property or even experiences. However, there are some

basic concepts of marketing, which are interrelated, and one building on one before it. These

concepts are summarized in the following figure.

Here is a brief Description of the fundamental marketing concepts:

1. Needs, wants and demands: A need is a state of felt deprivation or feeling of being

deprived of something. Human need is the most basic concept underlying the marketing.

Need is a part of human nature. There are many kinds of needs such as physical needs,

social needs, spiritual needs, etc. Needs are shaped up by culture, personality and religion

and they become wants when the need indicate an object to fulfill that need. Wants

depend upon the internal as well as external factors. Want is defined in terms of an

object that will define the need. If thirst is need, water, a cola drink, or a fruit juice may

be the want. If hunger is need, pizza, burger, bread, or chapatti is a want. There may be

more than one object that may fulfill a need and this is called a want-list. People have

choices to choose a desired object or service from the want-list to fulfill a particular need.

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However due to limited resources, people want best value of their money. When a want

is backed by buying power, it becomes a demand. So if no buying power, no demand.

Money is required to create as well as fulfill a demand. This is the most fundamental

concept of marketing. The marketer has to know the potential want list of his target

market and make them available the best value for their money.

2. Product: Anything tangible or intangible that is offered to satisfy a need or want is a

product. They are called goods (tangible) and services (intangible). The tangible products

are physical products, which can be touched or felt or tested, while the intangible

products can only be experienced. For example, a service of a hotel can be experienced

(intangible) while food in the restaurant in the same hotel can be tested (tangible). Cars,

groceries, computers, places, persons, ideas and information -everything are objects that

have the capability of fulfilling the needs and wants. When products are offered in the

markets they are called market offering. A good market offering has to have a good

value for money.

3. Value & Satisfaction: The potential want list may have many products, which may

fulfill the need and want of a customer. However, a customer chooses what gives him or

her best value for money. There are market offerings for the objects in their potential

want list. The market offerings have to provide the best value of the money and

satisfaction of fulfilling a want. This is the fundamental concept of marketing, that when

there are so many offerings in the market, the customer buys a product on his / her

perception. Based upon their perception the customers estimate the product value and

judge whether, it has the capacity of fulfilling their need.

Customer value is a guiding principle. The customer may rank the products as per

his / her estimate of a products’ capability to satisfy a need. The price attached to

the product may also affect this ranking. Ultimately, the customer chooses a

product, which gives him / her best value of his / her money.

4. Exchange, Transactions and Relationships: As mentioned above, the wants backed by

buying power create demand. The demand is fulfilled through exchange. Exchange is the

act of obtaining a desired object from someone by offering something in return.

Barter is also an exchange. One person cannot make exchange happen. To make

exchange happen, two people are required at least. However, the transaction between two

people can be a trade. Two people cannot create a market. Three people are at least

required to create a market, so that there is competition from at least one side. For

exchange to take place, two people are needed. Both of them must have something to

offer each other and both of them should have a value to offer each other. Each of them

must be free to accept or reject the offer. Both of them must be able to communicate with

each other and must be able to deliver what they offering to each other. These are some

basic conditions to make exchange happen. Exchange cannot be forced. Both the people

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must be independent and able to accept or reject one another‟s offer. Exchange may be

for profit or also for no profit. Whether for profit or no profit, an exchange must give

some value to the exchange partners. A successful exchange is a transaction. The

transaction is the unit of measurement in marketing. The value associated with

transactions is the trade values. A monetary transaction involves money for goods /

services and a barter transaction involves good/ service for good / service.

A marketer does not want a single transaction. His aim is to continuously make

market offerings and the continuous exchanges / transactions create relationships.

Today‟s marketing is relationship marketing. The focus of marketing is not to get

maximum profit from a single transaction but to get long running relationship with the

customers. If there are good relationships, the transactions will follow and run long term.

5. Markets: As we have discussed, an exchange may take place between two people, but

three people are required to create a market. There are always many potential buyers and

many potential sellers and the set of these potential buyers and sellers is market. A

market essentially needs competition (except in absolute monopoly). A market may be a

physical market with few shops to a large complexes and shopping malls. A market also

can be virtual and today virtual markets are no inferior to the physical markets, thanks to

greater access to information technology.

Basics of Marketing Process:

The predetermined objectives of marketing are to maximize the profits and maximize the share

in the market. To achieve these objects, a well-formulated marketing plan is needed. Marketing

plan involves the important decisions and route map to achieve enterprise goals. A plan is

implemented and reviewed through marketing process. A well designed marketing process

achieves the marketing goals due to effective decision making, while a faulty process may lead

to wrong decisions which further lead to marketing failure.

The overall process of marketing has been divided into various steps by various marketing

philosophers. To understand the marketing in simple way, we have divided the marketing

process in following 6 steps.

1) Strategy Formulation

2) Marketing Planning

3) Marketing Programming, Allocating and Budgeting

4) Marketing Implementation

5) Monitoring and Auditing

6) Analysis and Research

Each step is interrelated with other steps, as marketing is a complex and continuous process. The

relationships are shown as below in the figure. There are only vague and unclear dividing lines

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between any two parts of the process as precise boundaries are not as important as the general

concept.

Following is a brief Description about each of the above steps:

1) Strategy Formulation: Marketing strategy formation involves the development of the

broadest marketing/business strategies with the longest-term impact. Through marketing

strategy, the organization is allowed to concentrate its limited resources on the greatest

opportunities to increase sales and achieve a sustainable competitive advantage. A

marketing strategy should be centered on the key concept that customer satisfaction is the

main goal. Marketing strategy also defines the principles on which competition is faced

successfully. At the strategy formulation stage, complex integration with other corporate

functions is required. A marketing strategy has to be in rhythm with other functional

strategies and overall corporate strategy. In fact, marketing strategy and overall corporate

strategy are meld into a unified strategy. The overall target of strategy formulation is to

achieve a sold positioning of the product or service of the firm.

2) Market Planning: Market Planning is the base of the marketing. It involves objectives

and plans with a 2-5 year time horizon and is thus further from day-to-day activity of

implementation with an objective to make the best possible utilization of all the human &

physical resources of a firm. A well-formulated marketing plan helps in establishing the

effective coordination among various activities / departments of a firm. Most marketing

plans are broad in nature and have a long term impact. Plans have to be developed by a

combination of the specialists as well as the line managers who are responsible for

carrying out a plan.

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3) Programming, Allocating & Budgeting: Market Programming, allocating and

budgeting involves detail and focuses relatively on a shorter duration generally.

Programming is like creating functional implementation program keeping in view one or

more elements of the marketing mix. Programming depends upon the nature of the firm,

its organizational structure.

Allocating means allocation of the resources of the firm on various elements of the

marketing program such as advertising or distribution etc. Through allocation, the firm

decides what to do and what not to do and also how much and how long to do. Allocation

is not based upon optimism of the marketer but involves hard decisions within the limits

of priority of firm and market environment.

Budgeting involves the quantitative forecasts and estimates of each marketing function. It

involves forecast cash flows and needs, sales forecasts etc.

4) Market Implementation: This is the most functional stage of marketing process. The

first three phases lead to marketing implementation. Market implementation is the

execution phase. This phase produces the actual results. The best strategies carved out by

the best marketing specialists may get busted if the implementation is poor.

Implementation depends upon the human resources of the organization very much. For

different personnel the meaning of implementation is different and set within his/ her

work area. For example, for a sales person, the implementation means to go through

effectively all the sales steps. While for a sales manager, the implementation is to

organize the sales team/ force. Marketing implementation is people oriented and focuses

on prospects, customers, distributors, retailers, and wholesalers. Marketing

implementation needs support, coordination, and a well-developed network for successful

results.

5) Monitoring & Auditing: In general, audit is evaluation of a person, organization,

system, process, enterprise, project or product and monitoring is act of supervising. In

marketing, the monitoring and auditing involve to identify those existing (external and

internal) factors, which will have a significant impact on the performance of firm.

Therefore, it involves the assessment of performance against quantitative goals. The

comprehensive audit also involves review of the processes as well qualitative and non-

quantifiable aspects of marketing operation. The audit has to be done on a certain

occasions while the monitoring refers to the day-to-day supervision and review activity.

6) Analysis and Research: Analysis and Research is the end and beginning of marketing

process. The marketing decisions need to be based upon the careful analysis and research.

This may be quantitative based upon mathematics, statistics, and other quantitative

disciplines and qualitative based upon psychology, behavioral science, moral science,

anthropology and other disciplines. All the above activities are interrelated to each and

other. The marketing is the front end of a corporate while bearing the lateral connections

with all other functional departments.

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Marketing Process: The Basic Schematic

Marketing process is a complex & complicated set of various activities. The given graphic makes

you understand the basic schematic of the marketing process.

Every marketer has to understand some basic questions before making a marketing plan. The

first set of areas of analysis is 5C‟s of the market viz. Customers, Company, Competitors,

Collaborators & Context.

1) Customers: Customer is the king and ultimate goal of marketing process is to derive

profit as well as satisfy the customer needs. The marketer has to find out what are the

needs and demands of the customers and how the firm would seek to satisfy those

demands. Customer is central to marketing as well as business and existence of a firm.

2) Company: Today‟s markets are competitive and here goes the principle “survival of the

fittest”. The company has to have some competencies and abilities to survive and

flourish. The marketer has to judge, analyze and make marketing plans and strategies

within the limits of the competencies and capabilities of the firm.

3) Competition: Market essentially has competition. Competition makes choices & options

available to customers as well as provides the best value for money to the end consumers.

The marketer has to find out who competitors are and how to meet that competition.

There is always competition in the market offerings and unless the competition taken into

account, the marketer may lead the firm in wrong direction.

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4) Collaborators: Someone who assists in a programme is a collaborator. The collaborator

term in marketing involves all the people whose help required meeting the marketing

goals. The personnel of the company as well as external collaboration such as advertising

agencies, direct sales agents etc. need to be discussed.

5) Context: Context deals with the external and internal environment of the firms and

markets. The efficient marketer has to judge the political, legal, social, cultural and

technological environment of the market and decide upon the factors, which may affect

the course of marketing process.

The above specification leads to analyze the market prerequisites. It is followed by specification

of the target market.

A target market is a set of customers that the firm decides to aim its marketing

efforts.

A well-defined target market is the first element to a marketing strategy. The selected market

needs to be segmented on the basis several of geographic, demographic/socio-economic,

psychographic, behavioral & product-related criteria and this is called market segmentation.

Apart from this, the firms need to create an image or identity in the minds of the target market

for its product/ service, brand or organization.

Next is Marketing Mix.

Neil Borden first used the term market mix in 1953. Neil Borden used this term in

his American Marketing Association presidential address.

Marketing Mix refers to Product, Price, Place and Promotion. Place here means the channel of

distribution. Most important is the pricing decision. The 4P‟s altogether creates value for the

customer and creates value for the firm too. This leads to Customer acquisition and customer

retention for a long-term profit for the firm.