INTRODUCTION:

The word “MARKETING” is originated from the Latin noun

“MORCATUS”, which means “A place where business is
conducted”. It is a place where buyers and sellers meet, and
exchange goods and services for money.
Definition

Marketing management can be defined as “the art and

science of choosing target markets and getting, keeping and
growing customers through creating, delivering and
communicating superior customer value.
 Exchange and transactions:
Exchange, which is the core concept of marketing,
is the process of obtaining a desired product from someone by
offering something in return. For exchange to take place there
must be atleast 2 parties involved, each party must have
something that might be of value to the other party, each party is
capable of communication and delivery & each party is free to
accept or reject the exchange offer.
A transaction is a trade of values between two or
more parties.
Evolution of Marketing:

1. The stage of Barter:

2. The stage of Money Economy:

3. The stage of Industrial Competition:

4. The Stage of Competition:

5. The Emergence of Marketing:

6. The Growing Role of Services:

THE NATURE AND SCOPE OF MARKETING

1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
MARKETING ORIENTATION.
There are five alternative concepts under which organizations
design and carry out their marketing strategies:
1. The production concept.
2. The product concept.
3. The selling concept.
4. The marketing concept.
5. The societal marketing concept.
 THE PRODUCTION CONCEPT.

This is one of the oldest orientation that guides seller. The

production concept holds that consumers will favor products that are
available and highly affordable. Here the management focuses on
improving production and distribution efficiency. Firms have
assumption that anything that is produced can be sold. Production
concept can lead to marketing myopia.
 THE PRODUCT CONCEPT

According to Product Concept, the consumer will favor

products that provides best quality, performance and innovative
features. Firms focuses on making continuous product
improvements. But a better mouse track will not sell unless the
manufacturer designs, packages and prices are attractive.
 THE SELLING CONCEPT

Selling concept states that mere making available the best

product is not enough, unless the firm undertakes a large scale
selling and promotion efforts. This concept is practiced with
unsought goods- those goods buyer do not normally thing of buying
such as insurance, consumer durables.
Such aggressive selling carries high risk. It focuses on creating
sales transaction rather than on building long term, profitable
consumer relationship.
 THE MARKETING CONCEPT

Under marketing concept, the fundamental task of business

undertaking is to study and understand the needs and wants of
target market and produce goods in light of this findings and
delivering the desired satisfaction better than competitors. The
job is not to find right customers for your product, but to find
right product to your customers.
THE SOCIETAL MARKETING CONCEPT

According to societal marketing concept, company should make

good marketing decisions by considering:
• Companies requirement (Profit)
• Consumer long run interest
• Societies welfare
For example: The products wrapped in convenient packaging but
this leads to waste and pollution.
 IMPLEMENTATION OF MARKETING CONCEPT

Marketing implementation is the process that turns marketing

strategies and plans into marketing actions in order to accomplish
strategic marketing objectives. Implementation involves day to day,
month to month activities that effectively put the marketing plan to
work.
 CUSTOMER ORIENTATION

The concept enables the industrial and business firms to

understand the nature and the mission of their business form the point
of view of customer.
Basically company’s sales each period come from 2 groups: new
customers and repeat customers. It always costs more to attract new
customers than to retain current customers.
E.g. Motorcycle Company Harley- Davidson has created a club
(the Harley owners group) for bike owners. It offers more than
650000 members insurance, travel planning, roadside emergency
service, free safety lessons, etc.
 INTEGRATED MANAGEMENT ACTION
Integrated management action simply means that all the
different management functions in the business must be tightly
integrated with one another.
In organization that do not practice integrated management
the different functions/depts. of the organization are preoccupied
with the optimization of their specific activities often at the cost
of optimization of the overall result.
In organizations that practice integrated management
marketing, the management insists on absolute coordination of all
company actions keeping marketing customer as the focus.
E.g. Sony, Honda.
 CONSUMER SATISFACTION
The marketing concept believes that it is not enough if a firm
has customer orientation it is essential that such an orientation
lead to consumer satisfaction.
The concept believes that it is not enough if a firm markets its
products successfully in the short run. It must keep growing,
keeping consumer satisfaction as the foundation of its growth.
The concept effectively contracts the temptations of short
sighted management attitudes by its emphasis on consumer
satisfaction.
 REALISING ORGANISATIONAL GOALS

If a firm has succeeded in generating customer satisfaction, if

basically implies that a firm has given a quality product and
company has offered competitive price and prompt service.

Only when these factors act and interact, complementary and

supporting one another, will a product with all the attendant
features necessary to satisfy the consumers emerge.
 MARKETING CONCEPT

DEFNITION
“The Marketing concept is a point of view on business. It
enumerates that any business is essentially a need satisfying
process”. It also enunciates that all the goals of the organization
including profit are realized three ‘customer orientation’.
Integrated management action and generation of customer
satisfaction.
BENEFITS OF MARKETING CONCEPT

1. Concept benefits in the organization

2. Concept benefits of customer.
3. Concept benefits to the society
 CONCEPT BENEFITS IN THE ORGN:

•Concept enables the organization to keep abreast of changes.

•Long term success is assured to an enterprise only if it

recognizes that the needs of the market are paramount.

•Concept gives great importance to planning, research and

innovation and its decisions are no longer based on lunch, but on
reliable data relating to the consumers.

•It enables the firm to move more quickly to capitalize on market

opportunities
 •Greater attention is given to the product planning and
development to that merchandising can become more effective.

•Demand side of the equation of exchange is honored more and

supply is adjusted to changing demand. Hence more emphasis is
given to research and innovation.

•Marketing system based on the marketing concept assures

integrated view of business operations and indicated
interdependence of different departments of a business
organization.

•Interests of the enterprise and society can be harmonized as

profit through service is emphasized.
 CONCEPT BENEFITS OF CUSTOMER.

Low price, better quality and ready stocks at convenient

locations are some of the benefits that accuse to the customers.
He can chose, he can bargain, he can complain and the
complaint will be attended to.
He can buy on cash or on credit or on installments. He can even
return it material if he is not satisfied with it.
 CONCEPT BENEFITS TO THE SOCIETY

•If a guarantee that only products that are required by the

consumers are produced there by it ensures that the country’s
economic resources are channelized in the right direction.
•If acts as a ‘change agent’ and a value adder is society
•It makes economic planning more meaningful and more
relevant to the life of the people.
•It creates good entrepreneurs and managers in the society
and also improves the standard of living.
IMPORTANCE OF MARKETING:
CREATING UTILITY:
A Customer purchases a product because it provides
satisfaction. The want satisfying power is called its utility. it
comes in many forms. It is through marketing that much of a
product’s utility is created. There are different kinds of utilities:-

Form utility:
R.M Converted to Finished product. Understand customers
Requirements
Form utility is primarily associate with production- the
physical or chemical changes that make a product more valuable.
Eg: Lumber is made into furniture is an example of form
utility
 Place Utility

Place utility exists when a product is readily accessible to

potential customers. An auction on the net can increase the
number of buyers and sellers, but once products are purchased
they still have to be delivered quickly and in condition.

Time Utility

•Warehouse making available goods customer

•When needed as per customers Requirement
 Person Utility:

Marketer Established Contact Customer Understand

Customers Requirements

Exchange Utility

Seller Transfer Goods to Buyer as per Customers Requirement

MARKETING FUNCTIONS

FUNCTION 1.Buying Function

OF EXCHANGE 2.Assembly Function
3. Selling Function.
 
FUNCTION OF 1.Transporation
PHYSICAL 2.Inventory Management
DISTRIBUTION 3.Ware Housing
4. Material Handling
 
FUNCTION 1. Financing
OF FACILITIES 2. Risk Taking
3. Standardization
4. After Sales Service
 1 FUNCTIONS OF EXCHANGE

•BUYING FUNCTION:
A Manufacturer is required to buy raw material for production
purposes similarly a wholesaler has to buy good from manufacturer for
selling it to retailer. A retailer sells the goods to the customers. The
function to buying has to be done at various levels. Buying involves
transfer of ownership form seller to buyer.
•ASSEMBLY FUNCTION:
Goods purchased from various sources and assembled at one place
to suit the requirement of the buyer.
•Selling Function:
Selling function involves sales of goods from seller to buyer.
Selling function is very important to all organizations due to the fact
the selling has to be done against severe competition.
II FUNCTION OF PHYSICAL DISTRIBUTION:
•TRANSPORATION:
This include mode of transport selection of transporter or carrier freight consideration
like freight paid or to pay routing, scheduling, processing claim in case of transit
damage etc.,
•INVENTROY MANAGEMENT:
a.Short term fore casting
b.Product size and location of warehouse
c.Just in time
d.Push or pull strategy adoption.
•WARE HOUSING:
a.Space requirement
b.Suitability of location
c.Layout design
d.Physical arrangement
MATERIAL HANDING:
a.Equipment Selection
b.Equipment Replacement
c.Storage methods
d.Receipts and issue (F I F O or L I F O )
 III FUNCTIONS OF FACILITIES:
•FINANCING :
This means extending credit facilities during selling. It an organization has
to do this. It must have adequate working capital. Marketer has to plan.
a.Short term finance
b.Long term finance
This financier’s are provided by
•Banks like nationalized or
•Financial institutions like ICICI, IDBI
•Credit societies
•Government agencies like KIDB, KSFC etc.,
•RISK TAKING
There are innumerable risks. Which a marketer has to bear while marketing
a product. Risk arises due to unforeseen circumstances. Risks can be insured
also.
Eg. Risks due to fire and accidents.
But some risks cannot be insured.
Eg. Changes due to Govt. policies, risks due to increased
Competition, technological risks and business cycle risks.
 •STANDARDIZATION:
Buyers refer standardized goods. This will prevent the buyer form
wasting his time in inspecting or examining the goods. Standardization and
growing is a part of marketing function. Standardization is a process of
setting up standards to manufacture products which confirms to a set of
Specifications. Standardization, Size, shape, dimension color etc.,
Grading is also a part of standardization. It is a process of sorting our
goods into a number of graded, according to some characteristics such as
quality and size grading is usually necessary for those products over which
the producer cannot exercise any control in terms of physical properties.
Example: Food Grains, Fruits etc.,

•AFTER SALES SERVICE

This is very important in case of industrial products whether final
product or an intermediate. Hence, arrangement of after sales service has
become an increasingly important function. Therefore, marketer has to plan
for after sales service.
Eg. Repairs, replacement, maintenance, etc.
OTHER FUNCTIONS OF MARKETING
In addition to the above, marketing has several other functions as follows:
a.Product planning and development
b.Packaging
c.Pricing
d.Market Research.
e.Promotion etc.,
 DIFFERENCE BETWEEN SELLING AND MARKETING

SELLING MARKETING
•Selling is Sales Oriented •Marketing is Consumer Oriented
•Selling starts with seller. •Marketing starts with buyer and focuses on
needs of buyer.
•Selling converts products into cash •Marketing converts consumer needs into
products
•Selling has short term goals. •Marketing has long term goals and strategies.
•In selling activity, product is the prime •In marketing consumer’s needs, wants, and
concern preference is prime concern
•Selling views business as goods •Marketing views business as customer
producing process. satisfying process
•In selling, cost determine price •In marketing, consumer determines price.
•Selling views customer as last link in Price determines cost.
business •Customer is very purpose of the business.
•Selling focuses on sales volume in turn •Marketing focuses on consumer satisfaction
profit in turn profit.