TOPIC- Marketing: Definition

& Importance of Marketing &

Marketing Concepts.

BY-PUNEET
Marketing Definition:
All activities involved in creation of time,
place and possession utilities. The process
of Planning & Executing the conception,
pricing, promotion and distribution of
ideas, goods and services to create
exchanges that satisfy individual and
organizational objectives.
American Marketing Association by :The
management process responsible for
identifying, anticipating and satisfying
customer requirements profitably.
Market vs Marketing:
•Market is an arrangement to provide an opportunity
to exchange goods.
•Marketing is sum total of all those activities that are
related to flow of goods from production to
consumption.

Marketing, Selling & Merchandizing:

•Marketing is a broader concept which is driven from
customer’s demand.
•Selling is one part of marketing which deals with
persuading customers to buy products that are
available with seller.
•Merchandizing refers to the process offering a
variety of products to a retail consumer in a manner
which stimulates demand.
 IMPORTANCE OF
MARKETING:

1. Marketing helps to achieve, maintain and raise the

standards of living:

• Marketing is means through which production and

purchasing power are converted into consumption

• Better marketing Mass production

• Mass production Low cost

• Low cost More buying power Higher

standard of living
2. Marketing Increases employment
opportunities –
Marketing involves various functions/
subfunctions (Buying, Selling, Transport,
Warehousing, Financing, Risk management
etc)
- These functions create need for different
specializations
- About 30-40% population depends directly
or indirectly on marketing
3. Marketing increases national income:

- More purchasing power increase

in national income.

4. Helps maintain economic stability &

development

- By maintaining demand supply balance

5. Link between producer &
consumer

6. Removes imbalance of supply &

demand by transferring surpluses

7. Helps create utilities of time, place

& possession
IMPORTANCE OF MARKETING –
Business Firms

1. Marketing Generates Revenue, by

generating sales & thereby profits.

2. Marketing helps decision making process

(what, when & how much to produce, store
or transport).

3. Helps change management & innovations.

Marketing Concepts:

1. Exchange Concept:

- Exchange is only a small part of

the total marketing process.
- Other parts of marketing like
customer orientation, satisfaction,
value creation, creative selling etc
are not covered
 2. Production Concept:
Production in large volume, at low
cost will be acceptable to customers:

-Concentrates on production
efficiency

-- May do well in distribution

-- Rarely appreciated by customers

 3. Product Concept:

-Focuses on design and quality of

products
-- Believes that customers will
automatically buy products of high
quality
-- R&D is essential element
-- Do not bother to study the market &
consumer in depth
 4. Sales Concept:

-Believes that customers need to be

persuaded to buy the products

- Involves advertising, large scale

promotions, publicity, discounts,
public relations etc.

- Does not take care of the need of

the customer.
 5. Marketing Concept

Starts with determination of consumer

needs
- Ends with satisfaction of these needs
- Organizational activities revolve
around customer
- Products & Services are designed to
serve customer needs
- Satisfied customer will only produce
profits
 Features of Marketing Concept:

1. Consumer Orientation
2. Integrated management
action
3. Consumer Satisfaction
4. Realizing organizational
goals including profits
 Benefits of Marketing
Concept:
1. Long Term success
2. Faster penetration
3. Better Products
4. Boosts creativity
5. Integrated functions
6. Mostly in profits
7. Better growth of employees
8. Contributes to overall growth of the
society