1
Introduction
to Marketing
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.
“Marketingis the
social process by which
individuals and groups
obtain what they need
and want through
creatingand exchanging
products and value
with others.”
Philip Kotler
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 organisational objectives and customer needs
Selection of target markets
Beneficial to all the stakeholders
Scope of Marketing
1. All the decisions related to product like size, colour, design, packaging,
etc are taken with active participation of marketing department of the
company.
2. All the decisions related to the consumers are taken after having studied
the consumer’s responses with respect to different products, different
prices and brands.
2
Marketing
3. All promotional decisions, like choosing type
of marketing media, are also being taken
under marketing activity.
4. 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
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Marketing includes
selling and other
activities like various
promotional measures,
marketing research, after
sales services, etc.
Selling is confined to
persuasion of consumers
to buy firm’s goods and
services.
It starts with research on
consumer needs, wants,
preference, likes, dislikes,
etc and continues even
after the sales have
actually taken place.
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 Focus is on earning profit
through maximisation of through maximisation of
sales.
customers satisfaction.
Customer’s need is the All activities revolve
central
point
around around the product that
whom
all
marketing has been produced.
activities revolve.
It
is
an
integrated Fragmented approach to
approach to achieve achieve short-term gain.
long-term
goals
like
creating, maintaining and
retaining the customers.
Stress on needs of the Stress on needs of the
seller.
buyer.
In marketing, the
consumer is king.
In selling, the product is
king.
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
(i) Determination of Organisational Objective
These objectives provide direction for all
phases of the organisation and serve as
standards in evaluating performance.
3
Introduction to Marketing
(ii) 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.
(iii) 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.
(iv) Marketing Strategy The marketing strategy
is the overall company program for selecting a
particular target market and then satisfying
consumers in that segment.
(v) 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
(i) 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) Speciality Goods People make special
efforts to purchase the service of speciality
goods. e.g., restaurant, tailor, etc.
(ii) 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 analysing
information regarding customer needs and
buying habits, 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 consumer’s confidence in
the product quality. Grading involves separating
4
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 acitivities 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.
Marketing
Importance of Marketing
Importance of marketing can be discussed as follows
(i) 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.
(ii) 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.
(iii) 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.
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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.
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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 customers.
Check Your Skills
1. The aim of successful marketing is
(1)
(2)
(3)
(4)
(5)
to increase the sale
to increase the profit
to increase the output of sellers
All of the above
None of the above
2. Which among the following come under
‘facilitating’ category of marketing functions?
(1) Standardising and grading
(2) Standardising and grading, financing and
risk taking
(3) Standardising and grading, financing risk
taking, securing market information
(4) All of the above
(5) None of the above
3. Which among the following is the most basic
concept underlying marketing?
(1)
(2)
(3)
(4)
(5)
Product
Market
Needs, wants and demands
All of the above
None of the above
4. The need or want for a particular product
becomes a demand, when
(1)
(2)
(3)
(4)
(5)
the product/service is available
it is backed by buying power
a product represents that particular need
All of the above
None of the above
5. Which among the following is called like blood
of business?
(1)
(2)
(3)
(4)
(5)
Marketing
Product
Finance
All of the above
None of the above
6. Which among the following is included in
marketing decisions?
(1)
(2)
(3)
(4)
(5)
Promotion decision
Project cost decision
Finance decision
All of the above
None of the above
7. Which among the following is a customer
oriented concept?
(1)
(2)
(3)
(5)
Selling concept
Marketing concept
Production concept (4) All of these
None of these
8. Social marketing concept is based upon
(1) large target market with active buyers
(2) customer satisfaction and customer welfare
(3) realisation of maximum profit through
service of society
(4) All of the above
(5) None of the above
9. Which among the following may be called a
pillar of marketing concept?
(1)
(2)
(3)
(4)
(5)
Customer orientation
Product planning
Cost budgeting
All of the above
None of the above
10. Find the true statement.
(1) Marketing is a waste of the employee’s
time
(2) Marketing is not required in India due to
its vast population
(3) Marketing involves additional work
(4) Marketing involves team work
(5) Marketing is not required today due to IT
advancement
11. Market information means
(1) knowledge of shops and bazaars
(2) knowledge of shopping malls
(3) knowledge of customer profile and product
mix
(4) knowledge of various languages
(5) None of the above
12. If marketing is done effectively which of the
following is not required?
(1) Advertisement
(2) Publicity
(3) Market research
(4) Market segmentation
(5) None of the above
6
Marketing
13. Profit by customer satisfaction is a tool of
(1)
(2)
(3)
(4)
(5)
old concept of marketing
new concept of marketing
production
price
None of the above
14. Nature of marketing involves
(1)
(2)
(3)
(4)
(5)
promotion decision
determination of distribution channel
after sale service
All of the above
None of the above
15. Marketing is successful when
(1)
(2)
(3)
(4)
(5)
demand exceeds supply
supply exceeds demand
salesmen are effectively trained
All of the above
None of the above
16. Marketing is best defined as
(1) facilitating
satisfying
exchange
relationships
(2) distribution of products at lower price to
the stores
(3) distribution of products at higher price to
the stores
(4) promoting the products
(5) selling the products
17. The marketing concept is a way of thinking or a
management philosophy that affects
(1)
(2)
(3)
(4)
(5)
only marketing activities
only the efforts of sales personnel
most efforts of the organisation
only customer relationships
None of the above
18. Aggressive marketing is necessitated due to
(1) globalisation
(2) increased competition
(3) increased production
(4) increased job opportunities
(5) All of the above
19. The exchange concept of marketing takes
place between ......... and.......... .
(1) seller, buyer
(2) customer, consumer
(3) consumer, buyer
(4) buyer, purchaser
(5) None of the above
20. Marketing stress is on needs of the buyer,
whereas selling stress on the need of
(1)
(2)
(3)
(4)
(5)
market
seller
product
consumer
None of the above
21. Marketing research involves
(1)
(2)
(3)
(4)
(5)
collection of facts
analysis of facts
gathering records
developing suitable marketing strategies
All of the above
22. Which of the following is/are the marketing
concepts?
(1)
(2)
(3)
(4)
(5)
Exchange concept
Production concept
Product concept
Sales concept
All of the above
23. Which of the following is/are function of
marketing?
(1)
(2)
(3)
(4)
(5)
Marketing research
Product planning
Buying and assembling
Branding and packaging
All of the above
24. Which of the following is the function of
promotional activities?
(1) To motivate the customer to buy the
product
(2) To sell the goods to the customers
(3) To fix the price of the product
(4) To store the unsold goods
(5) To produce more goods
25. Marketing involves earning profit through
maximisation of
(1)
(2)
(3)
(4)
(5)
sales
production
expansion
customer’s satisfaction
None of the above
26. Selling involves
maximisation of
(1) sales
(3) marketing
(5) None of these
earning profit through
(2) profit
(4) production
7
Introduction to Marketing
27. In marketing, the consumer is king, whereas in
selling .............. is king.
(1)
(2)
(3)
(4)
(5)
product
production
promotion
customer
None of the above
Satisfying customers
Increasing demand
Creating goodwill for the organisation
Providing better quality products
All of the above
(1) only selling
(2) meeting human and social
profitably
(3) to focus on customer
(4) to focus only on producing
(5) Both ‘2’ and ‘3’
(1)
(2)
(3)
(4)
(5)
(1)
(2)
(3)
(4)
(5)
needs
[SBI Clerk 2008]
[SBI Clerk 2008]
planning
sympathy
Knowledge of products
Both ‘1’ and ‘2’
Both ‘1’ and ‘3’
[SBI Clerk 2008]
potential sellers
potential products and services
key existing and potential customers
Both ‘1’ and ‘2’
All of the above
33. Marketing is influenced by
(1)
(2)
(3)
(4)
(5)
product demand
public taste
buyer behaviour
brand image
All of the above
(1) more business to the company
(2) more profit
(3) more staff
(4) more production
(5) more products
publicity
lead generation
cross country contacts
product designing
product redesigning
37. Marketing strategy means
(1)
(2)
(3)
(4)
(5)
[SBI Clerk 2011]
[SBI Clerk 2011]
idea for further income
old techniques of sales
ways to improve marketing activities
ways to increase production
networking
38. Product design is a function of [SBI Clerk 2011]
32. In marketing, it is necessary to identify
(1)
(2)
(3)
(4)
(5)
[SBI Clerk 2011]
(1)
(2)
(3)
(4)
(5)
consumer oriented
competitors oriented
producer oriented
Both ‘1’ and ‘2’
Both ‘2’ and ‘3’
31. Proper marketing requires
increase sales
increase the number of employees
increases profits
increases production
All of the above
36. Selling process includes
29. Understand marketing as
30. Marketing is
(1)
(2)
(3)
(4)
(5)
35. The ultimate aim of marketing is to provide
28. Which of the following is/are objective of
marketing?
(1)
(2)
(3)
(4)
(5)
34. The sale aim of marketing is to [SBI Clerk 2010]
[SBI Clerk 2009]
(1)
(2)
(3)
(4)
(5)
front office staff
back office staff
management
marketing and research team
loan section
39. Marketing has taken a prominent position
during the last decade due to [SBI Clerk 2012]
(1)
(2)
(3)
(4)
(5)
increased competition
better literacy rate
foreign compulsions
government instructions
Reserve Bank of India Policy guidelines
40. Marketing is definitely required when
(1)
(2)
(3)
(4)
(5)
demand exceeds supply
supply exceeds demand
supply equals demand
staff is in excess
there is no monopuly
[SBI Clerk 2012]
41. The traditional marketing style involves
(1)
(2)
(3)
(4)
(5)
door-to-door campaigns
sending E-mails
telemarketing
SMS campaigns
virtual marketing
8
Marketing
42. The task of marketing involves [SBI Clerk 2012]
(1)
(2)
(3)
(4)
(5)
43. Selling is
(1)
(2)
(3)
(4)
(5)
[SBI Clerk 2012, 09]
same as marketing
more than marketing
offering discounts
a sub-function of marketing
nothing to do with marketing
44. Marketing is the function of
(1)
(2)
(3)
(4)
(5)
45. The sale aim of marketing is to
[SBI Clerk 2012]
opening new branches
buying a company
selling a company
selling products and services of company
mergers
(1)
(2)
(3)
(4)
(5)
46. ‘Cross selling’ means
(1)
(3)
(4)
(5)
[SBI Clerk 2012]
improve the balance sheet figures
increase recruitment
increase profits
increase production
increase branch network
[SBI Clerk 2012]
selling to enemies (2) selling new products
reversal of a sale
selling other products to existing customers
public relations
47. Marketing opportunities means
(1)
(2)
(3)
(4)
(5)
only sales persons
only counter staff
only qualified persons
top bosses
a collective function of all staff
availability of sales persons
availability of data
new product launching
scope for marketing
evaluation of performance
Analyse Yourself
1.
11.
21.
31.
41.
(4)
(3)
(5)
(5)
(1)
2.
12.
22.
32.
42.
(3)
(2)
(5)
(5)
(4)
3.
13.
23.
33.
43.
(3)
(2)
(5)
(5)
(4)
4.
14.
24.
34.
44.
(2)
(4)
(1)
(5)
(5)
5.
15.
25.
35.
45.
(3)
(3)
(4)
(1)
(3)
6.
16.
26.
36.
46.
(1)
(1)
(1)
(2)
(4)
7.
17.
27.
37.
47.
(2)
(3)
(1)
(3)
(4)
8.
18.
28.
38.
(2)
(2)
(5)
(4)
9.
19.
29.
39.
(1)
(1)
(5)
(1)
10.
20.
30.
40.
(4)
(2)
(4)
(2)