( Chapter 1 )
(B.Com IIIrd Semester )
There is no single answer to the question “What is
Marketing”?
Different persons understand meaning of marketing
differently depending on their need, ability and
environment like some considers as shopping. Selling,
cooperative marketing, product designing and retailing.
As a matter of fact, the term ‘Marketing’ is not confine to all
these things only. Actually speaking Marketing is a
comprehensive term and it includes all r1esources and set
of business activities necessary to direct and facilitate the
flow of goods and services from producer to consumer or
user, includes product planning and after sale services, in
the process of distribution
The word MARKET is derived from the Latin word
‘MARCATUS’ which means merchandise or trade or a
place where business is conducted. This concept is
illustrated below:
Market Communication
(Mail, Phone, Internet
and Advertising)
Sellers
(Supply)
Flow of
Market
(Area of exchange)
Products
Feedback Information
(Satisfaction or
dissatisfaction)
Flow of
Money
Buyers
(Demand)
Philip Kotler “The father of Modern Marketing” in his
book, “Marketing Management” has explained the core
concept of marketing as,
Needs, wants
and demands
Products
Value and
satisfaction
Exchange and
transactions
Markets and
marketers
There is no single definition of marketing which is acceptable
to all. But for the sake of simplicity different definitions are
divided into two major groups:
I.
Traditional: Product Oriented Definitions
II. Modern: Customer oriented Definitions
Product oriented definitions: These are based on the
assumption that whatever produce by manufacturer will
be acceptable to the consumer.
Features of product-oriented definitions

Marketing is mainly concerned with production, buying
and selling activities.

Traditional definitions are economics based definitions.

Marketing is considered with transfer in ownership of
goods and services and also with their physical
distribution.
These definitions emphasis on the satisfaction of the
customers. It means only those products are brought to the
market which can satisfy the wants and taste of the
consumers.
Features of customer-oriented definitions
 Marketing is one of the most powerful managerial
function.
 These definitions stress on earning profits in the long run
be increasing customer’s satisfaction and welfare.
 These definitions give more emphasis on after sales
services.
 According to modern definitions marketing start prior to
production and continue even after sales.
The study of nature and scope of marketing has been divided into
two parts:
Nature of Marketing
1.
Nature of Marketing: as a science or an art – After studying the
features of marketing as an art and science, its clear that it is
an art but still developing as a science.
2. Nature of Marketing: as its functional characteristics
(a) Specialized Business Function
(b) Managerial Function
(c) Reflects Business Function
(d) Socially desirable function
(e) Integration with Other Function
(f) Consumer Orientation
(g) Universally applicable to all organization
(h) Adaption to environment Variable
The scope of marketing covers the following activities:
Scope of Marketing
Managerial Activities
Functional Activities
1.
Determining marketing objectives
1. Marketing function
2.
Planning marketing functions
2. Product Planning development
3.
Organizing marketing function
3. Buying & assembling
4.
Staffing marketing function
4. Selling
5.
Directing marketing function
5. Transportation
6.
Coordinating marketing function
6. Storage & warehousing
7.
Controlling marketing function
7. Financing
8.
Analyzing & evaluating marketing function8. Branding & Packaging
Marketing is the performance of business activities that
directs flow f goods & services from producer to consumer.
These activities are called marketing functions.
Functions of Marketing
Research
functions
Exchange
functions
Physical
functions
Facilitating
Functions
Marketing 1. buying & 1. Transportation 1. Branding
Research assembling 2. Storage&
2.Packaging
2. Product Planning
warehousing 3. Pricing
3. Selling
3. Grading
4. Financing
5. Financing
6.After SaleServices
1.
A.
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B.
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Importance of marketing for firms/Manufacturers
Helpful in business planning & decision making
Helpful in distribution
Helpful in increasing profits
Helpful in communication between firm and society
Importance of marketing for the consumers
Increase in consumer satisfaction
Facilitates choice
Increase in knowledge
Providing good quality products
Price stabilization
Increase in standard of living
C. Importance of marketing for the society
 Provides employment
 Increase in national income
 Reduction in distribution cost
 Protection from depression
D. Importance of marketing as a business function
 Basis for business function
 Basis for economic activities
 Creation of utility
 Production of socially useful products
E. Importance of marketing in Economic development
An efficient marketing system ensure that all the factors of
production are fully and profitably employed, which is the
basic requirement for economic development.
Marketing generates employment both in production and
distribution area. Developed marketing is a sign of developed
economy.
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Importance of marketing in different stages of
economic development
Philip Kotler has summarized the importance of
marketing in the economic development in four stages:
Pre-industrial stage
Early-industrial stage
Industrial stage
Post-industrial stage
India is a big consumer country of the world. The growth of
marketing activities has resulted many important achievements
in India such as:
 Balanced growth of the country
 Maximum utilization of available resources
 Improvement in standard of living
 Expansion in scope of marketing
 Increase in profits
 Increase in per-capita income
 Increase in exports
 Development in banking & insurance sectors
 Development of modes of communication
 Development in means of transportation
 Development of packaging industry
 Increase in employment opportunities
Inspite of remarkable progress in every field of economic
development, the major problems of marketing which
India faces are as follows:
 Lack of trained marketing personnel
 Lack of product planning
 Lack of marketing research
 High marketing costs
 Rural economy
A silent revolution is now taking place in the rural areas
of Indian economy. There is a much scope of modern
marketing in India.
Marketing is now having many more objectives as explained
by H.W.Hepner in his book, “Modern Marketing”, such as:
 To develop a broader framework for thinking about
marketing
 To develop new markets within and outside the country.
 To raise living standard of the society.
 To emphasis customer satisfaction at all levels.
 To create new customers.
 To built goodwill of business firm.
 To provide guiding policies regarding marketing
procedures and their effective implementation.
 To supply the factual background and analytical judgement
necessary for dealing with marketing problems.
These two terms are oftenly used to convey same
meaning, but there is a fundamental difference
between selling and marketing.
“Selling is only one and most significant part of
marketing, it is normally considered with the transfer
of goods and services from producer to the consumers
for exchange of money.”
“Marketing is much wider in its application then Selling,
it starts with the product idea and ends with the
consumer satisfaction.”
When comparison is done on the basis of following facts
then it shows that these both terms are not identical.
 Scope
 Orientation
 Emphasis Occurrence
 Profit
 Semantics
 Philosophy
 Costs