INTRODUCTION TO MARKETING

Introduction
The concept of Marketing is a wide term. The early stage of the
growth of this discipline marketing was considered as selling and no
distinction was made between the two terms marketing and selling.
Many organizations involved in developing marketing activities to
satisfy the needs of various groups of customers. This division of
consumers has helped the development of new products and services and
even specialization in selling is being attained. Many new concepts like
network marketing, relationship marketing, and direct marketing are
developed and are implemented to reach as many consumers as possible.
Satisfying the consumer is the main MOTTO in todays marketing
activity. The first concept to be understood in marketing management is
MARKET. The main function of market activity is EXCHANGE.
According to AMA, A market is an aggregate demand of the
potential buyers for a product/service.
Various definitions given also focus on the following aspects of
markets

Aggregate demand of potential buyers

Area for potential exchanges
Buyers and sellers exchange goods or services for a price
Exchange may take place in a specific location or through the
channels.
Element of competition exists.

Definitions:
According to Philip Kotler, Marketing is a societal process by
which individuals and groups obtain what they need and want through
creating, offering and freely exchanging products and services of value
with others.
According to AMA, Marketing is the preference of business
activities that directs the flow of goods and services from producer to
consumer or user.
Meaning:
Marketing organization is the structure of the marketing function
within the organization. Marketing management is the process of
planning and executing the concepts, pricing, promotion and distribution
of goods, services and ideas to create exchanges with target groups that
satisfy customers and organizational objectives.
Marketing management activities involve

Designing the marketing plan

Setting marketing goals
Organizing marketing functions
Implementing the marketing plan
Market plan
Marketing research

Goals of Marketing (Appanaiah 17, 18, 19, 20)

Core concepts of Marketing

Needs, wants and demands
Need A need is a state of felt deprivation. It is a basic human
requirement. Physiological needs involve food, clothing and shelter.
Marketer cannot create need. It always exists. The products satisfy the
needs.
Want need becomes a want, when they are directed to specific objects
that might satisfy the need. Wants are shaped by both the internal and
external factors.
Demands demands are wants for specific products that are backed by
an ability and willingness to buy them. Wants become demand when
supported by purchasing power.
Products and services
A product is anything that can be offered to a market to satisfy
their needs and wants. Ex: toothpaste, biscuit.
Intangible products accounting, banking, consultancy, education,
etc, are the services.
Value, satisfaction and quality
Value it is the ratio between what benefits the customer gets and what
he spends.
Value = benefits/ cost
Benefits = functional benefits + emotional benefits
Costs = monetary cost + time cost + energy cost +psychic cost + so on

Marketing should provide value to the customers by raising

benefits and reducing costs (value addition to product).
Satisfaction it is the customers perceived performance from a product
in relation to the expectations.
Quality it is perception of product excellence by customers. Quality
improvement is the major concern for the organization to satisfy the
customers.
Exchange, transactions and relationship
Exchange is the act of obtaining a desired object from someone by
offering something in return.
Transaction is a trade between two parties that involves at least two
things of value, agreed upon conditions, a time of agreement and a place
of agreement.
Relationship is building long-term mutually satisfying relations with
customers, suppliers, distributors in order to retain their long-term
preference and business.
Markets
A market consists of all the potential customers sharing a particular need
or want who might be willing and able to engage in exchange to satisfy
that need or not.

Scope of Marketing
Marketing covers number of activities

Buying and assembling

Selling
Transportation
Storage and warehousing
Standardization and grading
Financing or supply of capital
Risk-baring
Market research
Advertising
Personal selling
Sales promotion

Nature and characteristics of marketing

It is consumer oriented process

It starts and ends with customers
It is the guiding element of business
It is a system
It is a goal oriented process
It is a process of exchange