Introduction
to
management
Class no. 7
Marketing
What is
marketing? 1/4
•
Marketing is not only much broader than
selling; it is not a specialized activity at
all. It encompasses the entire business. It
is the whole business seen from the point of
view of the final result, that is, from the
customer’s
point
of
view.
Concern
and
responsibility for marketing must therefore
permeate all areas of the enterprise.”
(Drucker, 1954, pp. 38-39.)
WINTER
SEMESTER
2024/2025
MARKETING
2
What is
marketing? 2/4
•
“Human activity directed at satisfying needs
and wants through an exchange process.”
(Kotler, 1986, p. 757.)
•
WINTER
SEMESTER
2024/2025
Marketing
is
to
establish,
develop
and
commercialize
long-term
customer
relationships, so that the objectives of the
parties involved are met. This is done by a
mutual exchange and keeping of promises.”
(Grönroos, 1989, p. 57.)
MARKETING
3
What is
marketing? 3/4
•
WINTER
SEMESTER
2024/2025
Marketing is engaging customers and managing
profitable
customer
relationships.
The
twofold goal of marketing is to attract new
customers by promising superior value and to
keep and grow current customers by delivering
satisfaction.
[…]
the
process
by
which
companies create value for customers and
build strong customer relationships in order
to capture value from customers in return.”
(Kotler – Armstrong,
p. 28., 2016, p.
M A R K E 2010,
TING
4
What is
marketing? 4/4
•
Marketing
is
the
activity,
set
of
institutions, and processes for creating,
communicating,
delivering,
and
exchanging
offerings that have value for customers,
clients, partners, and society at large.”
(American Marketing Association, 2013)
WINTER
SEMESTER
2024/2025
MARKETING
5
Traditional and
modern concept of
marketing
WINTER
SEMESTER
2024/2025
MARKETING
6
Traditional
concept
of marketing
WINTER
SEMESTER
2024/2025
•
The main focus of this concept is on product,
i.e., we have a product and it has to be
sold. So, we have to persuade the consumers
to buy our product.
•
All efforts of the marketing people are
concentrated on selling the product. They
adopt all means like personal selling and
sales promotion to boost the sales.
•
The ultimate goal of all marketing activity
MARKE
TING
is to earn profit
through
maximization of
7
Traditional
concept
of marketing
Traditional concept of marketing
WINTER
SEMESTER
2024/2025
Focus on
Product
Means
Selling
Ends
Profits through
maximization of
sales
MARKETING
8
Modern concept
of marketing
•
WINTER
SEMESTER
2024/2025
The focus of this concept is on
customer orientation. The marketing
activity starts with an assessment of
the customers
needs and plan the
production of items that satisfy these
needs
most
effectively.
This
also
applies
to
all
other
marketing
activities like pricing, packaging,
distribution and sales promotion.
MARKETING
9
Modern concept
of marketing
•
WINTER
SEMESTER
2024/2025
All marketing activities are combined into one as
coordinated marketing efforts. This is called
integrating marketing. It implies:
§
developing a product that can satisfy the needs
of the consumers
§
taking promotional measures so that consumers
come to know about the products, its features,
quality, availability etc.
§
pricing the product keeping
consumers’ purchasing power
pay
§
M A R K E T Ithe
NG
packaging and grading
product to make it more
in mind the target
and willingness to
10
Modern concept
of marketing
Modern concept of marketing
Focus on
Means
Ends
WINTER
SEMESTER
2024/2025
Customers’ need
Coordinated marketing
efforts
Profits through
customers’ satisfaction
MARKETING
11
Exercise 1
•
WINTER
SEMESTER
2024/2025
Followings are the statements
related to different concept of
marketing.
Identify
those
pertain to modern concept by
mentioning
‘MCM’
and
traditional
concept
by
mentioning ‘TCM’
MARKETING
12
Exercise 1
WINTER
SEMESTER
2024/2025
•
It focuses on customer’s need
•
It focuses on product
•
It sells satisfaction
•
It sells goods and services
•
It earns profit by maximization
of sales
•
It
earns
profit
G
maximizationM A R K E T I N of
through
customer
13
Difference
between marketing
and selling
Marketing
§
WINTER
SEMESTER
2024/2025
Selling
Marketing includes selling and
other activities like various
promotional measures, marketing
research, after sales service,
etc.
§
It starts with research on
consumer needs, wants,
preference, likes, dislike
etc., and continues even after
the sales have taken place
§
Focus is on earning profit
through maximization of
customers’ satisfaction
§
Customer’s need is the central
point around whom all marketing
activities revolve
§
Stresses on needs of buyer
§
Selling is confined to
persuasion of consumers to buy
firm’s goods and services
§
Selling starts after the
production process is over and
ends with the handing over the
money to the seller by the
buyer
§
Focus is on earning profit
through maximization of sales
§
All activities revolve around
the product that has been
produced
MARKETING
§
Stresses on needs of the seller
14
A few relevant
terms
of marketing
WINTER
SEMESTER
2024/2025
•
Seller - person or organization who is
directly
involved
in
the
process
of
exchange of goods and services for money.
This includes the wholesaler, retailer,
etc.
•
Buyer - one who is directly involved in
the process of purchase of goods and
services. He/she is one who selects the
MARKETING
goods,
makes
payment
and
takes
the
15
A few relevant
terms
of marketing
WINTER
SEMESTER
2024/2025
•
Consumer - one who actually uses the product or
service. For example, you bought a shirt and
gifted it to your friend who uses it. Here your
friend is the consumer and you are a buyer.
However,
a consumer can also be the buyer
•
Customer - person who takes the buying decision.
For example, in a family, father decides on the
brand of the toothpaste to be used by his
children. Here, the children are the consumers
A R K E Tcustomer.
ING
and the father is Mthe
A customer can
16
A few relevant
terms
of marketing
•
Market - place where goods are bought and sold
But in marketing …
•
•
WINTER
SEMESTER
2024/2025
Market - group of
product or service
buyers
for
a
particular
§
the market for Accountancy textbooks consists
of students in Commerce
§
the
market
for
ladies
readymade
consists of girls and women
garments
Virtual
Market
with
advancement
of
technology,
the
buyer
and
sellers
can,
MARKETING
nowadays, interact with each other by using
17
Exercise 2
•
WINTER
SEMESTER
2024/2025
Following
is
a
list
of
statements regarding features
of ‘marketing’ and ‘selling’.
Identify
the
features
of
marketing by mentioning ‘M’ and
of selling by mentioning ‘S’
MARKETING
18
Exercise 2
WINTER
SEMESTER
2024/2025
•
It starts after the production process is
over
•
All activities revolve around the product
that has been produced
•
Customer is the central point
•
Satisfaction of the customer is the main
focus
•
Target is to achieve short-term gain
•
MARKETING
It is an integrated approach to achieve
19
Objectives/functi
ons
of marketing
WINTER
SEMESTER
2024/2025
MARKETING
20
Exercise 3
Given below are words in two columns, A and B. You
have to match the words of column A with words of
column B, so that the matched words describe an
objective of marketing. Write the serial number of
words in column
B against the matched words
A
B of column
A.
§ Customer
§ Goodwill
WINTER
SEMESTER
2024/2025
§
Increase in
§
Sales volume
§
Profitable
§
Product
§
Better Quality
§
Satisfaction
§
Create
§
Demand
MARKETING
21
Exercise 4
•
Following
are
the
statements
pertaining
functions performed in marketing. Identify
function of marketing from each statement
§
§
§
§
WINTER
SEMESTER
2024/2025
§
to
the
Physical movement of goods from one place to
another
Holding and preserving goods from the time of
their procurement or production till the time of
their sale
Collection and analysis of relevant facts to
solve marketing problems
This
include
advertising,
personal
selling,
sales promotion and publicity
MARKETING
Separating products into different classes on
22
Objectives of
marketing
WINTER
SEMESTER
2024/2025
•
Provide satisfaction to customers
•
Increase in demand
•
Generate profitable sales volume
•
Provide better quality product to
the customers
•
Create
goodwill
organization M A R K E T I N G
for
the
23
Functions
performed
in marketing
WINTER
SEMESTER
2024/2025
•
Transportation - physical movement
goods from one place to another
•
Storage and Warehousing - holding and
preserving goods from the time of their
procurement or production till the time
of their sale
•
Marketing
research
analysis of relevant
marketing problems
MARKETING
of
collection
and
facts to solve
24
Functions
performed
in marketing
WINTER
SEMESTER
2024/2025
•
Promotion
include
selling,
publicity
•
Grading - separating products into
different classes on the basis of
certain predetermined standards
of the product - this
advertising,
personal
sales
promotion
and
MARKETING
25
Thank you for
your attention
WINTER
SEMESTER
2024/2025
MARKETING
26