Banking Marketing Aptitude Introduction to Marketing Marketing Aptitude - Introduction to Marketing

Introduction

Marketing is about identifying and meeting human and social needs. It is the process of communicating the value of a product or service to customers, for selling that product or service. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

Nature of Marketing

• Marketing is a human activity.
• Marketing is a social-economic activity.
• Marketing is consumer-oriented process.
• The core of marketing is product or service.
• Marketing is based on exchange.
• Marketing is both art and science.
• Marketing is an universal activity.

Characteristics of Marketing

• Marketing is a socially pervasive process
• Organisation-wide function
• Marketing is both a science and art
• Voluntary exchange of values
• Achievement of organizational objectives and customer needs
• Selection of target markets
• Beneficial to all the stakeholders

Scope of Marketing

• All the decisions related to product like size, colour, design, packaging, etc. are taken with active participation of marketing department of the company.
• All the decisions related to the consumers are taken after having studied the consumers responses with respect to different products, different prices and brands.
• All promotional decisions, like choosing type of marketing media, are also being taken under marketing activity.
• An effective after sales services is formulated by the marketing manager in order to satisfy the consumer.

Objectives of Marketing

• Provide satisfaction to customers
• Increase the demand
• Provide better quality product to the customers
• Create goodwill for the organisation
• Generate profitable sales volume

Difference between Marketing and Selling   

Concepts of Marketing

Marketing is based on many concepts as per the orientation and perception of the firms about the business and market place, those concepts are

• Exchange Concept

This concept of marketing indicates that the exchange of a product between the seller and buyer is necessary.

• Production Concept

Production dominates the thinking process of the consumers. Products produced in a great volume at a low unit cost are supported by the consumers.

• Product Concept

In this concept, quality of the product is focused. Good and quality products are provided to the customer.

• Sales Concept

Large sales promotion is believed to maximise the selling.  Organisations resort to aggressive advertising, high power personal selling. The customer is being neglected in this concept.

• Marketing Myopia

When an organisation gives excessive attention to production or the product or selling at the cost of the customers' actual needs then marketing myopia is created.

• Pillars of Marketing Concepts
• Target Market
• Customer Needs
• Integrated Marketing
• Profitability

Steps of Marketing

Steps of marketing are as follows

• Determination of Organisational Objective these objectives provide direction for all phases of the organisation and serve as standards in evaluating performance.
• Assessing Organisational Resources By evaluating these resources, organisations can pinpoint their strengths and weaknesses. Strengths help organisations set objectives, develop plans for meeting objectives and take advantage of marketing opportunities.
• Evaluating Risks and Opportunities Environmental factors-competitive, political, legal, economic, technological and social-also influence marketing opportunities. The emergence of new   technologies   or innovations may open new opportunities for under-marketed products.
• Marketing Strategy The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment.
• Implementing and Monitoring Marketing Plans At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations.

Types of Marketing

There are two types of marketing

• Marketing to Individuals It is also called consumer goods. Products which are purchased by the ultimate consumers for satisfying their personal needs and desires are referred to as consumer goods, e.g., toothpaste, soap, brush, ediable oil, textiles, shampoo, shoes, etc.

Consumer goods are classified as

(a) Convenience Goods Consumer goods purchased frequently, immediately and with least time efforts are referred to as convenience goods like pen, biscuits, newspapers, medicines, etc.

(b) Shopping Goods Shopping goods are those consumer goods, in the purchase of which buyers devote considerable time to compare the  quality,  price,  style, suitability at different stores before making  final   purchase,   e.g., radio, refrigerator, television, cloth, etc.

(c) Specialty Goods People make special efforts to purchase the service of specialty goods, e.g., restaurant, tailor, etc.

• Marketing to Organisations 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.

Functions of Marketing

The functions of marketing and have been discussed below

• Marketing Research

It is a process of collection and analyzing information regarding customer needs and buying nabits, nature of competition prevailing prices effectiveness of advertising media, etc.

• Product Planning and Development

The task of marketing begins with planning and designing a product for the consumers. It can also be done while modifying and improving an existing product.

• Buying and Assembling

It refers to buying and collection of required goods for resale. It is primarily relevant to those business organisations who are engaged in trading activities.

• Packaging and Labelling

It involves putting the goods in attractive packets, containers according to the convenience of consumers. As suitable and attractive packages increase the demand for the products to a great extent. Labelling means putting identification marks on the package. It contains information about the producer of the product.

• Standardisation and Grading

Standardisation helps in promoting the sale of the product by increasing consumers confidence in the product quality. Grading involves separating products into different classes on the basis of certain predetermined standards related to size and quality.

• Branding

            It refers to giving an attractive name, symbol or identity mark to the product to make it different from other products.

• Pricing

It involves decisions regarding fixation of product prices. Pricing is done keeping in view the product costs, the capacity of customers to pay and the prices of the competitive products.

• Transportation

Transportation means carrying goods from one place to another. It helps in assembling and dispersing the goods. It links together the producers and consumers who are located at different places.

• Promotion

Promotion means all the activities performed by a producer or by a dealer or by a businessman to increase his sales. Main purpose of promotion activities is to encourage and pursuade the consumers to buy a particular product.

• Role of Marketing

Roles of marketing are as follows

• Role of Marketing in Business
• Technological changes are taking place at fast pace.
• Competition has become intense in the market.
• Consumer tastes and preferences are changing very fast.
• Production is organised on a large-scale.
• Role of Marketing in Society
• It makes new and better products available to people, increasing their standard of living.
• It helps in creation of new jobs.
• Importance of marketing.

Importance of Marketing

Importance of marketing can be discussed as follows

• Importance of Marketing to the Consumers
• Provides different information about the product and services.
• Helps to know the different benefits and techniques of products.
• Provides satisfaction by providing different products to meet their demand and tastes when they need.
• Facilitates customers to select the best one according to their demand and capability.
• Importance of Marketing to the Firms
• Easily distribute the products.
• Suggests to manage the transportation and wire-housing systems which help the firm to delivery the product.
• Provides valuable information to make effective plan for future and right decision.
• Suggests to reduce unnecessary costs and utilise the revenue in proper way.
• Accumulates the opinion and ideas of different customers and supplies to the management.
• Importance of Marketing to the Society
• An important source for the creation of employment opportunities.
• Helps in developing the living standard.
• Helps to utilise the different resources such as natural, financial, physical and human resources.

Tit - Bits

• Finance is like blood of business.
• Marketing is successful when salesmen are effectively trained.
• In marketing, it is necessary to identify potential sellers, potential products and services, potential customers and key existing.
• Marketing strategy means ways to improve marketing activities.
• Marketing is definitely required when supply exceeds demand.
• Cross selling means selling other products to existing customer.