Introduction to

Marketing Concept

Market
A place where business is conducted
Where buyers and sellers meet, goods and
services are offered for sale and transfer of
ownership occur

Types or markets
1) Area covered
2) Commodities transacted
3) Volume of business
4) Final use of product

Marketing

Socio economic activity

Supplements production by distributing
goods and services
Local marketing to global marketing
Concept of customer orientation
Means understanding and responding to the
needs, interests and expectations of
consumers

Need for marketing

To satisfy human needs

It encourages large scale production
Convenience to manufacturers, traders and
consumers
Facilitates social economic and industrial
growth

Definition
marketing is a total system of business
activities
designed to plan, price, promote and
distribute
want satisfying products
to target markets
to achieve organizational objectives

Features of marketing
Regular and continuous activity
Facilitates satisfaction of human wants
Relates to goods and services
Brings transfer of ownership
Wider socio economic significance
Importance of 4 Ps
Core aspect of business
Evolutionary concept
Precedes and follows production

Marketing management

Is the process of planning and executing

the conception, pricing, promotion and
distribution
of goods, services and ideas
to create exchanges with the target groups
that satisfy customers and
organizational objectives

Marketing Functions

Transfer of
Goods
-buying
selling

Physical
handling
Of goods
-Packing
-Transportation
-Storage
-Warehousing
-Inventory
control

By service
agencies
-Std and
grading
-Branding
-Pricing
-Financing
-Promotion
-advtg

Related to
R&D
-Product
planning
-Marketing
research
-MIS

Benefits of marketing
Satisfies human wants
Provides profit and goodwill
Facilitates specialization and division of
labor
Widens markets
Improves std of living
Brings economic growth
Provides channels of communication to
business firms
Facilitates price control
Intro to new products

Scope of Marketing
1) Marketing Research
2) Product planning and development
3) Pricing
4) Advertising and publicity
5) Sales Promotion
6) Packaging
7) Branding and labelling
8) After sale service
9) Test marketing
10) Miscellaneous areas product positioning,
channels of distribution, Marketing Info
System (MIS), recruitment, training and
motivation

FOCUS

MEANS

OBJECTIVE

SELLING
PRODUCTS SELLING
CONCEPT
&
Selling Vs Marketing
PROMOTION

PROFIT THRU
SALES VOL

MARKETING CONSUMER
CONCEPT
NEEDS

PROFIT THRU MODERN

CONSUMER
CONCEPT
SATISFACTION

INTRGRATED
MARKETING

TRADITIONAL
CONCEPT

SELLING
Directs the flow of
goods & services from
producer to consumer
Concentrates on how
to sell the goods and
earn profit
Cost of prod & dist
determines the price
Profit is primary
Position of MR
Homogenous target
Role of packaging
Production decisions

MARKETING
Directs want satisfy
goods & services to
present & potential
customers
Concentrates on
satisfaction of
customers
Cost
of
mktg,
demand, competition
determines the price
Profit is secondary
Position of MR
Heterogeneous target
As an advertising aid
Production is adjusted

Traditional concept
Results in transfer of
ownership of goods
Production or sales
oriented
Sell what you have or
what you can produce
Profit maximization
Absence of after sales
service
No attention to social
responsibility

Modern concept
Wider concept than
physical distribution

Consumer oriented

Produce or supply
what is required by
the consumers

Consumer satisfaction
Attention to after
sales service

Special attention to
different social groups

Marketing of Services
Intangible products

banking, insurance, transportation, retail,

hotel etc

Activities, benefits or satisfaction which are

offered for sale or are provided in
connection with the sale of goods

Features of Services
Are varied in characters
Provide convenience
Storage is not possible
Services are produced and consumed
together. Extra production in anticipation of
demand is not possible
They are highly perishable
Are normally distributed directly to
consumers

E-marketing
Internet marketing
Means
Creating a single webpage
Registering with a search engine
Sending emails
Marketing and selling products and services
on the net

Features of E-marketing
Anyone, anywhere, anytime
Cost effective and economical
Not restricted by political boundaries of the
countries
Obtains customer feedback immediately
Follows pull strategy of marketing
Achieves cross promotion easily

4Ps of E-marketing
1. Personal
It provides tailor-made communication
Can screen the info to take what is relevant to
them
2.

3.

4.

Pervasive
Is present all over at the same time
Permission
It has defined target audience
Only to those who have shown interest or
willingness
Privacy