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Unit 2.0 Components of Marketing Learning objectives:

Understand the concepts of Marketing Classify markets and understand their buying behavior Critically analyze the Nepali Market Understand and explain the characteristics of institutional and non-institutional customers Understand the concepts of needs, drive, wants and demands Explain the structure of marketing process

2.1 Introduction to MarketsKAUSHAL RAJ SAPKOTA

FACULTY, MARKETING (HSEB 10+2), ULLENS SCHOOL

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Market From the Latin: ‘Marcatus’ place where business is conducted Concepts of Market (Elementary Marketing, Grade XII, K. D. Koirala, Buddha Publication, pg. 38)

Place Concept Demand Concept Cyber Concept

Contemporary: Market Customers/Consumers

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Concepts of Market (Elementary Marketing, Grade XII, K. D. Koirala, Buddha Publication, pg. 38) Place Concept

Market Place where buyers and sellers meet E.g. NEPSE Nepal Stock Exchange Market, New Road Computer Products

Demand Concept Market Category of Demand E.g. Education Market, Fine Dining Market, Construction Market, Film Market

Cyber Concept Not necessarily a physical place e-Commerce: www.amazon.com

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Classification of Market Categorizing Markets Why?

Market Segmentation and Target Marketing Customization Identify Market Gaps and Market Extension Strategizing

How? Area Volume Competition Customer Types Others

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Classification by Area Local Domestic/National International

Regional Transnational Global

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Classification by Volume Retail

Small quantity usually to final customer

Wholesale Sold usually to institutional buyers and retailers Generally large quantity

Case in Point: www.alibaba.com

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Market Spectrum (Types of Competition) Monopoly Duopoly Oligopoly Monopolistic Perfect

Classification Criteria: Number of buyers and seller Buyer and seller power Information to customers Firm as price taker or price setter

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Classification by Competition Monopoly

No competition and consumer choices, firm as price setter, comes with government interventions Nepal Electricity Authority, Nepal Oil Corporation Welfare Vs. Profit Oriented Firms

Monopsony Single buyer

Oligopoly Few sellers

Buyers’ Market Supply > Demand

Sellers’ Market Demand > Supply

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Classification by Customer Consumer Market

Selling to the final consumer

Industrial Market Producer of some other product

Case in point: Your school buying a vehicle vs. you buying it for personal use.

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Other types of Market Financial Market: securities like bonds and stocks. Foreign Exchange Market: foreign currencies Stock Exchange Market: shares of public limited company

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End of the lecture Lecture Review:

Market Concepts of Market Classification of Market

Assignment 15: Find an example for each of the market category discussed in the class.

Thought of the day:

“A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” - Scott Cook, co-founder Intuit