( 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: Flow of Flow of Products Money Market Communication (Mail, Phone, Internet and Advertising) Buyers (Demand) Sellers (Supply) Feedback Information (Satisfaction or dissatisfaction) Market (Area of exchange)

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: 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 Scope of Marketing Managerial ActivitiesFunctional Activities

Marketing is the performance of business activities that directs flow f goods & services from producer to consumer. These activities are called marketing functions. 1. 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 Functions of Marketing Research functions Exchange functions Physical functions Facilitating Functions

A. 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 B. 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.

 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