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. a particular place.

Market is selling and buying of goods and services in

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 witho 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?

Goods Services Events Experience Persons Places Properties Organization Information Ideas

Evolution of marketing
The fundamental reason why markets and marketing

developed is attributed to three primary conditions1. Scarcity of raw materials 2. Specialization of labour 3. 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 the1. The production era 2. The sales era 3. The marketing era and 4. The relationship era

Various Marketing concepts:

The marketing mainly deals with the 5 concept. They

are as follows: The Production concept The Product concept The Sales concept The Marketing concept The 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
It focuses on the needs of

Marketing
It 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.

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

It aims at long term

object. It aims at selling a product which has already produced. Selling activities are organized and directed by marketing department.

objects. It forecast the customer demand to undertake production activity. Marketing policies and strategies are directed by the top management.

Selling
Product Manufacturing is first then sell it Sales orientation Planning is short-run Views business as a goods producing process Existing technology

Marketing
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

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

Core concept of marketing:

Needs, wants and demands
Marketing offers(produc ts, services and experiences)

Markets

Exchanges, transaction s& relationshi ps

Value and satisfacti on

Core concept of marketing:

In the core concept we learn customer needs, wants and demands.
Needs:

Needs are the basic human requirement.

People needs Air, Food, Water, Clothing and Shelter to survive.

People also have strong needs for Recreation, Education and Entertainment.

Wants: Wants are nothing but needs which are directed to

specific objectives that might satisfy the need. Ex: A person needs food, but may want rice to eat. Here food is the need and rice is the want.
Demands:
These are wants for specific products backed by the

ability and willingness to pay for it. Ex: Many people wants Mercedes but only few are willing and able to buy one.

Eg: Need, want and demand of an MBA student

Need: Transportation- The MBA student has to reach

college in time. Buses are not dependable. Want: The student wants a motorcycle, which looks grand, has many latest features and is dependable. E.g. Bajaj or Honda Demand: Purchasing power is provided by the boys father, who also has the willingness to buy the bike, which his son wants.

 Exchange: This is the process of obtaining a desired product from

some one by offering something in return. Products: Are anything offered for sale to satisfy a need or want, including services and ideas. Transaction: Is a trade of values between two or more parties. Market: Is a collection of buyers and sellers who transact over a particular product or product class.

Positioning:
Is the process by which marketers try to create an

image or identity in the mind of their target market for its product, brand or organization. Target market: This is the market segment to which a particular product is marketed. Its often based on age, gender, geography etc.,

Market segmentation:
Is the process in marketing of dividing a market into

distinct subsets that behave in the same way or have similar needs.

Types of demand:
There are 8 types of Demand. They are as follows;

1.Negative Demand 2. Nonexistent Demand 3. Latent Demand 4. Declining Demand 5. Irregular Demand 6. Full Demand 7. Overfull Demand 8. Unwholesome Demand

1.Negative Demand: Consumer dislike the product and may even pay a price to avoid it.
Ex.Vaccination ,Dental work.

2. Nonexistent Demand: Consumer may be unaware of that product (or) uninterested in the product. Ex: *Farmers may not be interested in new farming methods 3. Latent Demand: Consumer may share a strong need that cannot be satisfied by an existing product. Ex. *More fuel efficient cars. 4. Declining Demand: Consumer begin to buy the product less frequently (or) not at all.

5. Irregular Demand: Consumer purchase vary on a seasonal, monthly, weekly, daily, or even hourly basis. Ex: *Markets :- visited on weekend not weekdays. 6. Full Demand: Consumers are adequately buying all product put into the market place. Ex: Maruti at the time of bookings made open. 7. Overfull Demand: More consumers would like to buy the product than can be satisfied. Ex: Quota system for new car registration by a
fixed percentage annually.

8. Unwholesome Demand: Consumers may be attracted to product that have undesirable social consequences. Ex: Un-selling campaigns have been
conducted against cigarettes, alcohols, hard drugs etc..