DIFFRENCE BETWEEN “MARKETING & SELLING”
The major differences between selling and marketing are listed as below
Basis Selling
Part of the Process vs Selling is only a part of the
Wider Term process of marketing and is
concerned with promoting and
transferring possession and
ownership of goods from the
seller to the buyer.
Transfer of Title vs The main focus of selling is on
Satisfying affecting transfer of title and
Customer Needs possession of goods from sellers
to consumers or users.
Profit through The emphasis is on profit
Maximising Sales vs maximisation through
Customer maximisation of sales.
Satisfaction
Start and End of the Selling activities start after the
Activities product has been developed.
Difference in the In selling, the emphasis is on
Emphasis bending the customer according
to the product
Difference in the Selling involves efforts like
Strategies promotion and persuasion
Marketing
Marketing is a much wider term
consisting of number of activities
such as identification of the
customer’s needs, developing the
products to satisfy these needs,
fixing prices and persuading the
potential buyers to buy the same.
Marketing activities put greater
thrust on achieving maximum
satisfaction of the customer’s needs
and wants.
A marketing organisation, thus,
attaches highest importance to
customer satisfaction as a route to
profit maximisation.
marketing activities start much
before the product is produced and
continue even after the product
has been sold
The attempt is to develop the
product and other strategies as per
the customer needs.
Marketing uses integrated marketing
efforts involving strategies in respect
of product, promotion, pricing and
physical distribution.
 MARKETING MANAGEMENT PHILOSOPHIES

FUNCTIONS OF MARKETING

Marketing is concerned with exchange of goods and services from producers to consumers or
users in such a way that maximises the satisfaction of customers’ needs. The basic functions of
marketing are:

1. Gathering and Analysing Market Information: One of the important functions of a

marketer is to gather and analyse market information. This is necessary to identify the
needs of the customers and take various decisions for the successful marketing of the
products and services. For example, rapid growth is predicted say in the use of internet,
market for Cell phones; therefore, more and more companies are using interactive sites
on the internet, to gather customer views and opinions, before taking important business
decisions.

2. Marketing Planning: Another important activity or area of work of a marketer is to

develop appropriate marketing plans so that the marketing objectives of the organisation
can be achieved.

3. Product Designing and Development: Another important marketing activity or

decision area relates to product designing and development. The design of the product
contributes to making the product attractive to the target customers.
4. Standardisation and Grading: Standardisation refers to producing goods of
predetermined specifications, which helps in achieving uniformity and consistency in the
output. It ensures the buyers that goods conform to the predetermined standards of
quality, price and packaging.
Grading is the process of classification of products into different groups, on the basis of
some of its important characteristics such as quality, size, etc. Grading ensures that goods
belong to a particular quality and helps in realising higher prices for high quality output.

5. Packaging and Labelling: Packaging refers to designing the package for the products.
Labelling refers to designing the label to be put on the package. Label may vary from a
simple tag to complex graphics.
Packaging and labelling have become so important in modern day marketing that these
are considered as the pillars of marketing as they serve as a promotional tool.

6. Branding: Brand name helps in creating product differentiations, i.e., providing basis for
distinguishing the product of a firm with that of the competitor, which in turn, helps in
building customer’s loyality and in promoting its sale.

7. Customer Support Services: A very important function of the marketing management

relates to developing customer support services such as after sales services, handling
customer complaints and adjustmen etc.. All these services aim at providing maximum
satisfaction to the customers.

8. Pricing of Products: Price is an important factor affecting the success or failure of a

product in the market. The demand for a product or service is related to its price. The
marketers have to properly analyse the factors determining the price of a product and take
several crucial decisions in this respect.

9. Promotion: Promotion of products and services involves informing the customers about
the firm’s product, its features, etc. and persuading them to purchase these products.

10. Physical Distribution: Managing physical distribution is another very important

function in the marketing of goods and services. The two major decision areas under this
function include (a) decision regarding channels of distribution and (b) physical
movement of the product from where it is produced to a place where it is required by the
customers for their consumption or use.

11. Transportation: Transportation involves physical movement of goods from one place to
the other. A marketing firm has to analyse its transportation needs after taking into
consideration various factors such as nature of the product, cost etc.

12. Storage or Warehousing: Usually there is a time gap between the production or
procurement of goods and their sale or use. In the process of marketing, the function of
storage is performed by different agencies such as manufacturers, wholesalers and
retailers.
 Basis CAPITAL MARKET
Participants Participants are financial
institutions, banks, corporate
entities, foreign investors and
ordinary retail investors from
the public
Instruments Equity shares, debentures,
Traded bonds, preference shares, etc
Investment outlay Does not require huge
investment outlay as value of
units of securities is low
Safety Risky both in terms of returns
and principal repayment
Duration Deals in medium and long
term securities
Liquidity Low liquidity
Expected returns Generally yields high returns
Basis NSE(I)
Size of company Paid up capital 3 crores & above Paid up capital 30 lakhs and
Securities traded Trades in Equity, debentures,
treasury bills, PSU, bonds, etc
Settlement Payment within 15 days of
transaction
Objective Nationwide, ringless transparent Serves as an exchange for
trading facility for both capital securities of small companies
and money market
Basis Primary Market(New Issue
Market)
Securities trading It is a market for new securities
Sale of securities Securities are sold to investors
directly by the company or
through their intermediary
Flow of funds It directly promotes capital
formation as flow of funds is
from savers to investors
Location It has no fixed geographical
location. Shares can be traded
from anywhere.
Prices Prices are determined by
management of the company
MONEY MARKET
Participants are institutions such s
RBI, Banks, Financial Institutions
and finance companies
Treasury bills, trade bills,
commercial papers, certificates of
deposit
Requires huge investment outlay as
instruments are quite expensive
Safer with minimum risk of default
Deals in short term securities from
1 day up to 1 year
High degree of liquidity
Generally yields low returns
OTCE(I)
above
Equity, debentures, etc
Payment within 7 days of the
transaction
Secondary Market(Stock
Exchange)
It is a market for existing securities
Securities are exchanged between
investors without involvement of
the company
It indirectly promotes capital
formation as it enhances liquidity
of shares
It has a fixed location and fixed
working hours
Prices are determined by demand
and supply of the securities