Module 1

Introduction: Nature and scope of Marketing, Evolution, Various

Marketing orientations, Marketing Vs Selling concept, Consumer Need,

Wants and Demand concepts.

Meaning:• The word marketing has been derived from Latin

word, “MORCATUS” which means, “A place where Business is conducted.”

• Market is selling and buying of goods and services in a particular place.

Marketing is about identifying and meeting human and social needs.

Marketing is “Meeting needs Profitability”.

Definition: According to “American Marketing Association”

“Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customers relationships in ways that benefit the organization and its stakeholders.

According to Philip Kotler, “ Marketing is a societal process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others”.

According to American Marketing Association(AMA) marketing is, “ The performance of the business activities that direct the flow of goods and services from producer to consumer or user.”

Marketing activities are all those associated with-

o Identifying the particular wants and needs of a target market of customers.

o Going about satisfying those customers better than competitors.

o This involves doing market research on customers, analyzing their needs and then making strategic decisions about the product design, pricing, promotion and distribution.

What is marketed?GoodsServicesEventsExperiencePersonsPlacesPropertiesOrganizationInformationIdeas

Evolution of marketingThe fundamental reason why markets and marketing

developed is attributed to three primary conditions-1. Scarcity of raw materials2. Specialization of labour3. Consumption satiation The most fundamental reason for the natural

evolution of markets, marketing and trade was this varying access to important raw materials resources.

• The tribes began processing the available raw materials and trading them between them.

People developed skills in processing some specific raw materials in specific locations(leather, iron, gold, cotton, silk, etc.,)through labour specialization.

• This learning process or specialization of labour occurs in all organizations and contributes to skill improvement.

The main reason why trading occurs on the demand side is that people like to acquire and use a variety of goods and services rather than live in isolated existence in which they consume only what they produce.

• Consumption satiation leads people to swap what they have in excess for something they are short of.

The historical evolution of marketing is found through distinct stages or eras.

The major eras are the-1. The production era2. The sales era3. The marketing era and4. The relationship era

Various Marketing concepts:The marketing mainly deals with the 5

concept. They are as follows:The Production conceptThe Product conceptThe Sales concept The Marketing conceptThe Holistic marketing concept

1. The Production concept:The Production concept was the idea that a

firm should focus on those products that it could produce most efficiently and that the creation of the supply of low cost products would in and of itself create the demand for the product.

2. The Product concept:This concept believes that customers will

favour those products that offers the most quality, performance or innovative features.

3. The Sales concept:This concept believes that a company cant

secure enough customers response to its products without aggressive marketing.

4. The Marketing concept:This concept believe that the key to achieve

organizational goal consists of the company, being more effective than competitors in creating, delivering and communicating superior customers value to its chosen target markets.

5.The Holistic marketing concept:This concept is based on the development,

design and implementation of marketing programmes, processes and activities that recognize their breadth and interdependence.

4 components of holistic marketing:1. Relationship marketing.2. Integrated marketing.3. Internal marketing.4. Social responsibility marketing.

Marketing Vs Selling concept:In general we use ‘marketing’ and ‘selling’ as

synonyms but there is a substantial difference between both the concepts.

It is necessary to understand the differences between them for a successful marketing manager.

Selling MarketingIt focuses on the

needs of the sellers.It refers to moving

the products from outlets.

It gives supreme importance to products.

It emphasis on sales volume and profit maximization.

It focuses on the needs of the customers.

It refers to obtaining the customers to move the goods.

It gives unique importance to customers.

It emphasis on customers satisfaction.

It aims at short term object.

It aims at selling a product which has already produced.

Selling activities are organized and directed by marketing department.

It aims at long term objects.

It forecast the customer demand to undertake production activity.

Marketing policies and strategies are directed by the top management.

• Product• Manufacturing is first then

sell it• Sales orientation• Planning is short-run• Views business as a goods

producing process• Existing technology• Different department work in

separate• Selling views customer as a

last link in business• Selling is micro part• Selling focuses on the needs

of the seller• Seller needs to convert his

product into cash

Needs and wants Needs and wants then deliver it Profit orientation Planning is long-run Views business as a consumer

satisfying process Innovative technology All the department works

together Marketing views consumer as

very purpose in nature Marketing is macro part Marketing focuses on the needs

of the buyer Marketing marketer need idea

of satisfying needs of consumer

Selling Marketing

Core concept of marketing:Needs,

wants and demands

Marketing offers(products,

services and experiences)

Value and satisfactio

n

Exchanges, transactions

& relationships

Markets