Understand Market,
Marketing, Marketing Management and its various factors with examples and
Practice Question and Answers in End.
MARKET
• Market:- The term “market” in its common usage is used to refer the place where actual buying and selling take place.
•
Definition:- The Market is the sum total of the situation
or environment in which the resources, activities, & attitudes of buyer
& sellers affect the demand for products in a given area.
•
The term Market is used to mean not
any particular geographical meeting place of the buyers and sellers but as the
getting together of buyers and sellers in person.
Marketing
•
Marketing-Definition:-
•
Marketing has been defined as all the
activities involved in the creation of place, time & possession utilities.
•
Marketing is thus concerned with “handling
& transportation of goods from the point of production to the point of
consumption.
Definitions of Marketing
•
Clark & Clark wrote that:-
•
Marketing consists fo those efforts
which effect transfer in ownership of goods & care for their physical
distribution.
•
The American Marketing association
defined as “ The performance of business activities that
direct the flow of goods & services from the producer to the consumer or
user.”
•
According to Philip Kotler:-
•
Marketing is human activity directed
as satisfying needs & wants through exchange process”
•
According to him the existing human
needs & wants should be identified & products should be produced to satisfy
those needs & wants.
•
Paul Mazur gave very short
definition:-
•
“Marketing is the delivery of a
standard of living to the society.”
•
A refinement to this was given by
Malcom Mc. Nair, according to this, “ Marketing is the creation & delivery
of standard of Living to the society.”
Definition of Management
•
Management:- Management is defined as, the process of
Planning, Organizing, Staffing, Directing & Controlling (or evaluating) the
efforts of a group of people towards a common pre-determined goal.
•
The task of choosing implementing
& evaluating the results are the tasks of the Management.
Definition of Marketing Management
u Accordingly
marketing management is :-
u 1. The involvement of management process.
u 2. It is programme to create build &
maintain.
u 3. Mutually beneficial exchanges &
relationship.
u 4. With the target markets- customer.
u 5. The purpose of achieving organizational
objectives.
Example
Concepts of Marketing
u There
are 6 distinct concepts of marketing:-
u 1. The Exchange concept.
u 2. The production concept.
u 3. The product concept.
u 4. The sales concept.
u 5. The Societal concept.
u 6.
The Marketing concept.
Difference between Sales & Marketing
Features of Marketing Concept
u Consumer
orientation.
u 2. Integrated management action.
u 3. Consumer satisfaction.
u 4. Realizing organization goals including
profits. (the concept is against profiteering, but not against profits)
Benefits of Marketing Concept
1.
Success is assured only if needs of
the market are paramount.
2.
Marketing risks are reduced by
knowing & understanding
the market.
3.
Customer
needs, wants & desires receive top considerations.
4.
More
attention is given to product planning & development, so that merchandising
becomes more effective.
5.
Supply
is adjusted to changing demand.
6.
The
interdependence of different departments of business organisation is indicated
in it.
7.
Interests
of the enterprise & society can be harmonised as profit through service
emphasised.
8.
Marketing research is now an integral
part of the marketing process & it is a managerial tool in decision making
in the field of marketing.
Importance of Marketing
Importance of marketing to the Society.
1.
Marketing helps to achieve maintain
& raise the standard of living of the society.
2.
Marketing increases employment
opportunities.
3.
Marketing helps to increase national
income.
4.
Marketing helps to maintain economic
stability & development.
5. Marketing is connecting link between the
consumer and the Producer.
6. Marketing removes the imbalances of supply.
7. Marketing helps in creation of utilities.
u Importance
of marketing to individual business firms.
1.
Marketing
generates revenue to firms.
2.
Marketing
as a basis for making decisions.
3.
Marketing
helps the top management to manage innovations and changes.
u Gross domestic product :-
The total value of goods & services that are produced within a specified
country (including those produced by non-residents) over a period (usually one
year) excluding all goods & services used during that period to produce
further goods and services.
u Gross
National Product:-
The total
value of goods & services that are produced by residents of a specified
country over a period (usually 1 year) excluding all goods & services used
during that period to produce further goods & services. Unlike GDP, GNP
includes income that a country’s own residents derive from assets owned abroad
but excludes the income of foreigners within the country.
Functions of Marketing
1.
Gathering & Analyzing Market
Information.
2.
Marketing Planning.
3.
Product Designing & Development.
4.
Standardization & Grading.
5.
Packaging & Labelling.
6.
Branding.
7.
Customer Support Services.
8.
Pricing of Product.
9.
Promotion.
10. Physical Distribution.
10. Transportation
11. Storage or
Warehousing
Internal Environment is controllable
variable.
There are various other resources at the disposal
& within reach of the organization itself, which could be manipulated, to
attain the objectives of the organization.
These resources can be classified into two.
1.
Non Marketing Resources.
2.
Marketing mix.
•
Non Marketing Resources
•
Human Resources
•
Research & Development
•
Production
•
Company location
•
Company Image
•
Finance
External Environment
External Environment is
non-controllable variable, i.e. it is beyond control of the organization.
External Environment is divided into two:-
1. Micro Environment and 2.
Macro Environment.
Micro Environment
1.
Suppliers
2.
Intermediaries
3.
Customer
4, Competitors
Macro Environment
1)
Demographic
2)
Technological
3)
Economical
4)
Social & Cultural
5)
Political & Legal
6)
Natural
Fill in the
Blanks
1.
Selling revolves around needs &
interests of the _________.
2.
Selling starts with the ____________
of the company & it views business as a task of some how promoting these
Products.
3.
Marketing revolves around the needs
& interests of _________.
4.
Marketing starts with ____________.
5.
The term “___________” in its common
usage is used to refer the place where actual buying & selling takes place.
Description Questions
1.
What is Marketing? Explain. (100-200
words)
2.
List distinct concepts of Marketing.
Short answers
Question 1
A marketer of colour TV having 20% of
the Current market share of the country aims at enhancing the market share to
50% in next 3 years. For achieving this objective he specified an action
programme.
Name the Function of Marketing being discussed above.
Answerà
Market Planning
Question 2
Organisation that subscribe to this
idea, believe that a product should not only satisfy needs & wants but also
it should be environment friendly.
Name the Concept of Marketing here.
Answer- Societal Concept
Question 3
According to this concept the exchange of product
between seller & buyer is the central idea of Marketing.
Name the Concept of Marketing here.
Answer:- Exchange
Concept
Question 4
This concept holds that consumers would support those
products that are produced in great volume at a low unit cost.
Name the Concept of Marketing here.
Answerà Production Concept
Question 5
Organisations that subscribe to this concept of
Marketing believe that the consumers would automatically vote for products of
high quality.
They concentrate on achieving product excellence.
Name the Concept of Marketing here.
Answerà Product Concept
Thank You😀