Marketing

Chapter 1
Nature and scope of Marketing
Concept of marketing:
Offering something of value and in return getting something of value, intended to
satisfy human or organizational need
Exchange: exchange is one of three ways can be fulfilled

Make it yourself
Theft
Offering something of value and in return getting something of value

Conditions of exchange:

Two or more people or organization must be involved each having needs or

wants
The parties in exchange must be involved voluntary
Each party must have something of value to contribute in exchange and must
believe that it will be benefited from exchange
The parties must communicate with each other

Parties in exchange

The marketer: who stimulate and facilitate the exchange, develop marketing
plans and implement that.
Market: consist of people or organization with need to satisfy, money to
spend and willingness to spend it

Object of exchange can be product, service, idea, person or place

Marketing
Marketing is a total system of business activities design to plan, price, promote,
place and distribute want satisfying products to the target market in order to
achieve organizational objectives.
Evolution of marketing
Product orientation stage:

Focus of quality and quantity of output assuming consumer will buy

reasonable and well made products

Demand exceed supply:

Focus was on efficiency and cost control.
Companys only have sales department and jobs heads
was to supervise sales force.

Sales orientation stage:

Resulted due to great depression in 1920s i.e. economic crisis, problem was
found was not to manufacture efficiently by how to sell output.
Substantial post sale effort was observed.
Sales promotion comes into existence i.e. promotional activities like heavy
advertisement and there was respect of sales executives.
Some companies went for aggressive selling i.e. hard sells.

Market orientation stage:

When supply caught up demand manufactures went to look back to sales but nit
successfully this time as war changed consumers who are now more
1.
2.
3.
4.
5.
6.

Sophisticated.
Knowledgeable.
Experienced.
Less easily influence.
Women went out and start working.
The requirement was to produce what customer wants and not what business
wants to sell.
7. Several tasks was performed by other departments becomes tasks to
marketing. For example inventory control warehousing and product planning.
8. Everyone should be market oriented.

Marketing concept
1. Nature and rationale:
Complete satisfaction of customers need i.e. everyone should be
customer oriented.
Hub and spoke concept by FedEx i.e. customer is hub in a wheel.
Coordination: elements of marketing mix i.e. 4Ps should be coherent and
consistant with each other.
Organization: performance object is may include return on investment,
stock, price, profit, market share et casa well as social contribution.
2. Implementation:

Customer orientation: The concept of customer relationship

management (CRM) trust and mutual respect lot of time and effort,
and are not appropriate exchange satisfaction.
Mass customization: Mass production and mass marketing is
challenged by mass customization which was possible due to
advertisement information, communication and manufacturing
technology.
Coordinated marketing activities: Quality is the priority of every
company and its at least requirement for going international.
(a) Total Quality Management (TQM) i.e. is system implementing
organization-wide commitment to quality that involves every
employee accepting this responsibility for continuous quality
improvement.
(b) Volume Creation: Values and benefits can be
Functional i.e. roominess of a van
Aesthetic i.e. attractiveness of a van
Psychological i.e. safety of a van.
Organizational objectives:
These includes
Return on investment, profit, market share, brand acceptance and
customer satisfaction.
The Societal Marketing concept:
A company should work in societys interest, taking care of
environmental issues and customer rights
A Companys marketing program
Marketing segments: the consumers of the organizations that share similar wants
buying preferences or product use behavior.
Divide the market into identifiable 3 approach

Target market: refers to a market segment at which a firm directs its

market program
Position: establishment a unique image or place in the prospects mind
is called positioning.
Marketing mix:
Product: strategies required to introduce new products manage
exsisting products and dropping products that are no longer viable.