Category : Banking
Market means Actual and Potential customers involving exchange of goods and services.
According to American Marketing Association Aggregate demand of potential buyers for a product /service is called Market".
According to Philip Kotler: "Market is a group of buyers and sellers interested in negotiating the terms of purchase/sale of goods/services.
It is an area for potential exchange.
Definition of Marketing
Traditional Meaning: Traditionally marketing has been described in terms of its functions or activities. Marketing has been referred to a performance of business activities that direct the flow of goods and services from producers to consumers. Thus, merchandising, selling and shopping are all parts of a large number of activities undertaken by a firm, which are collectively called Marketing.
Traditional Marketing: It emphasized on the basis of production and distribution. The objective was to earn more profit through higher sales volume Production and sales were the main activities included in the marketing functions.
Modern Meaning: It is an ongoing process of planning and executing the marketing mix of products, services or ideas to create exchange between individuals and organizations.
According to Philip kotler: "Marketing is a social and management process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
According to American Marketing Association: "Marketing is the performance of business activities which direct the flow of goods and services from producer to consumer. Marketing can be described as: "Getting the right goods, at the right time, at the right place, with the right communication, to the right people, at the right price.
The marketing functions may be:
(a) Contractual: The searching of buyers and sellers.
(b) Merchandising: Matching the products to customer needs and desires: Marketing, Economics and Banking
(c) Pricing: Determining the optimum price.
(d) Promotion: Persuading the buyers to favor the firm and its products.
(e) Physical Distribution: The transport, warehousing and inventory control.
The different steps in the Marketing Process:
The different steps in the Marketing Process are as follows:
1. Strategy formulation: The development of the broadest marketing business strategies with the longest term impact
2. Marketing planning: The development of longer-term plans which have generally stronger impact than the short-term plans.
3. Marketing Programing, allocating and budgeting: The development of short-term programs which generally focuses on integrated approaches for a given product and on the allocation of scarce resources such as sales effort or product development time across various products and functions
4. Marketing implementation: The actual task of getting the marketing job done.
5. Monitoring and auditing: The review and analysis of programs, plans and strategies to assess their success and to determine what changes must be made.
6. Analysis and resource: The deliberate and careful acquisition and examination of qualitative and quantitative data to improve decision making
Types of Marketing
There are two types of marketing
(i) Marketing to individuals: It is also called Consumer goods Products which are purchased by the ultimate consumers or users for satisfying their personal needs and desires are referred to as Consumer Goods. For example- Toothpaste, Soap, Fan, Brush, Editable Oil, Textiles etc.
Consumer goods are classified on the following bases:
(a) Convenience goods
(b) Shopping Goods
(c) Specialty Goods
(a) Convenience goods: Consumer goods purchased frequently, immediately and with least time efforts are referred to as convenience goods.
Example ? pen, biscuits, newspaper, medicines etc. Convenience goods have low unit value and are bought in small quantities.
(b) Shopping goods: are those consumer goods, in the purchase of which buyers devote considerable time to compare the quality, price, style, suitability, at several stores before making final purchase. Example - Radio, Freeze, Television, Cloth etc.
(c) Specialty goods: Specialty goods are goods people make special efforts for in their purchase. Example- restaurant, tailor etc.
(ii) Marketing to Organizational: It is also called Industrial Goods. Industrial goods are goods /which are used as inputs in producing other products. The examples of such products are raw material, engines/ lubricants, fabricating material, installation, operating suppliers etc.
Differed concept of marketing: It is understood that marketing influences the demand for a product or service. Now there are different routes to achieve this goal. The path adopted by a company depends on the basic philosophy or orientation of the company in question. Mainly there are five orientations adopted by the company and those are as follows:
(i) Product concept: In this concept a company believes that price must be kept low in order to increase demand. The concept holds that Consumers would, as a rule, support those products that are produced in great volume at a low unit cost. Therefore efforts are made for minimizing all kinds of wastage, evolving better methods of mass production etc. Many
Japanese companies in the field of electronics followed this principle.
(ii) Product Concept: It Is also called customer response approach.
The customer response or buyer behavior may be considered in relation to product benefit, product usage, store patronage, and brand loyalty. The Company believes that customer will purchase only those goods which are of the best quality and therefore effort must be made to design and manufacture the best possible product. However this approach leads to the short sighted' view of marketing which is known as the phenomenon of Marketing myopia
(iii) Selling concept: In this concept the company increases the scale of business which further improves the position with respect to supply of goods, resulting in increased competition among sellers. The product quality and availability did not ensure the survival and growth of firms because of the large and persuading customers to buy the product. It indicates that in the absence of salesmanship, aggressive advertising and intensive sales promotion the company will not be able to generate enough volume sales. The main objective is to get the sale anyhow and not worry about the after effect? whether the customer is satisfied or not.
(iv) Marketing Concept: Under this approach the Company begins with identifying the target customer and their actual needs and proceed to deliver satisfaction more effectively than the competitors. It implies that focus on satisfaction of customers, need is the key to success of any organization in the market. The basic role of a firm then is to 'identify a need and fill it". The concept implies that products and services are bought not merely because of their quality, packaging or brand name, but because they satisfy a specific need of a customer. Marketing concept is based on the following things.
(a) Identification of target market or customer.
(b) Identification of desire needs and wants of target customer.
(c) Development of products or services for satisfying needs of the target customer.
(d) Satisfying need of target customers better than the competitors.
(v) Societal Marketing Concept: It is also called social responsibility or human orientation towards the market place. It means intelligent and objective concern for the welfare of society which prevents a company from engaging in any activity which is injurious to public interest. The belief is that customers will not only like to purchase good quality products but also to become good corporate citizens. Hence societal marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals of social goods.
Difference between Selling and Marketing
1.satisfies the need of the seller
satisfies the need of the buyers
2. Deals with Pushing the Product to costumer
Deals with Pulling the Customer to the Product
3. Aims at Profit through Sales Volume
Marketing: Aims at Profit by Serving Customer
4. Selling considers the customer as the last link of business
Marketing considers the Customer as the very purpose of business
5. Transportation, storage and warehousing are considered as a mere are extension of product function,
Transportation, storage, and warehousing are considered as essential services keeping the customers in mind.
5 C's of Marketing Decision Making
Following are the five major areas of analysis (5 Cs) that underlie marketing decision making:
1. Customer needs: What needs do we seek to satisfy?
2. Company skills: What special competencies do we possess to meet
3. These needs? Competition: Who competes with us in meeting these needs?
4. Collaborators: Who should we enlist to help us and how do we motivate them?
5. Context: What environmental (say, cultural, technological or legal factors limit what is possible?
Nature of Marketing:
1. Marketing is a universal activity.
2. Marketing is an art as well as science.
3. Marketing is a human activity.
4. Marketing is a socio-economic activity.
5. Product or service is the subject matter of marketing.
6. For marketing the presence of market is a must.
7. The basis of marketing is exchange.
8. Marketing is consumer-oriented and not product-oriented
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