marketing ks (1)

8/8/2019 Marketing Ks (1)

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by- Kavita Jangra

LECTURER-MANAGEMENT


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In early days,

Market is a physical place where buyers andsellers meet.

In modern days , due to the technologicaldevelopment there is no any physical placestill the transactions take place with the help ofinternet, telemarketing shows etc.

So,market is the group of customers ororganisation who have intrest in the product,resources to buy the product,legally permittedto buy the product and other qualifications .


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.

Total population

Potential market

Available market

Qualified market

Target market

Penetrated market


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Marketing is the a social and managerialprocess by which individual and groups obtainwhat they need and want through creating

,offering and exchanging the products of valuewith others.

Marketing is a societal process- bcoz it ishuman activity directed at satisfying needs and

wants through exchange process. It is a managerial process which identify

,anticipate and supplies customerrequirements efficiently and profitably.


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Marketing management-marketing is the artand science of choosing target markets andgetting, keeping and growing customers

through creating ,delivering andcommunicating superior customer value.


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Marketing is consumer oriented.-abusiness exist to satisfy human needs .Therefore ,business must find out what

consumers want then produce goods accordingto the need of the consumers . only such goodsare produced which best satisfy the needs ofthe consumers and at a profit to maker.

Marketing starts and ends with theconsumers-identifying needs(starting point)

Satisfying customers (ending point).


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Modern marketing precedes and succeedsproduction- marketing start before theproduction with the help of marketing the

marketers can identify the needs ,what is theprice customers are willing to pay,where andwhen it is to be wanted,how much they have toproduce and after production this would give

bargaining power to the sellers. .


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Modern marketing is the guiding element ofbusiness-modern marketing is a force capableof controlling the production , infact it is the

market potential not the ,production resourcesthat guide the business today . it is theintegration of various activities from theconception of generation of idea to the

successful selling of product to the consumers.


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Marketing is a science as well as an art.-marketing is multi disciplinary in nature,as itcomes out from different areas of science like

anthropology,psychology,sociology etc.it isalso considered as an art as various rules orprinciples on buying ,selling,financing put intopractice to achive to achieve success in the

economic life of men.


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Marketing is a system. Marketing is a systemconsist of various sub systems,which take inputfrom environment transform these inputs andgive outputs(satisfaction).

Exchange process is the essence of marketing.

All marketing activities revolve aroundexchange process. exchange implies transactionbetween buyers and sellers. Seller hand overthe product to the buyer who in turn givesmoney. The buyers and sellers also exchangeinformation.


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Marketing is goal oriented.-like any otherbusiness activity ,marketing seeks to achive some

useful results,the ultimate aim of marketing is togenerate profits through the satisfaction of humanwants.

Marketing is a process.


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marketing

Functionof

exchange

Functionof physical

supply

Facilitatingfunctions


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Buying and assembling

Selling and dividing


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Buying and assembling-buyingis one of theimportant function of marketing. It is the firststep in the process of marketing.

Manufacturer buy goods for production. Wholesaler buy goods to sell them to retailer .

Retailer buy goods to sell them to consumers.

Assembling starts after the goods have been

already purchased .Buying involves transfer ofownership of goods ,while assembling involvescreating and maintaining the stock of goodspurchased from different sources.


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Selling and dividing- this another importantfunction which transfer the title(ownership )ofgoods to the buyers.

Efficiency in selling is the most importantfactor that effects the existance of the firm.theprime objective of the business concern issucessfully carried out through the sale ofgoods.


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Transportation

Storage or warehousing


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Transportation (movement of goods from oneplace to another) transportation creates the placeutility for the goods. Transportation carry

commodities from where there utility isrelatively low to the place where their utility ishigh.

It also creates time utility with increase in thespeed of various modes of transportation.

Transportation service resulted in regularsupply, lower prices and improved services.


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Storage or warehousing storage is necessaryunder two conditions

1)when production is seasonalwhen production is seasonal

2)2)when consumption is seasonalwhen consumption is seasonal Storage is holding and preserving of goodsStorage is holding and preserving of goods

between time of their production and the time ofbetween time of their production and the time oftheirtheir use.ituse.it helps in steady flow of goods to thehelps in steady flow of goods to themarket throughout the year.market throughout the year.

The storage function is made effective through theThe storage function is made effective through theestablishment ofestablishment of warehouses.warehouseswarehouses.warehouses act as aact as acentral unit from where the supply of goods iscentral unit from where the supply of goods ismade easy.made easy.


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Financing

Risk taking

Standardisation or grading

Market information


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Financingit is difficult to perform variousmarketing functions without the availability ofadequate and cheap finance.

Risk taking- there are innumerable riskwhich a marketing enterprise has to bear in theprocess of marketing goods. Risk may be due

to social hazards such as theft , bad debts,warsetc. some risks may be totally avoided bycareful handling some may be shifted toinsurance or other parties.


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Standardisation-buyers and sellers alwaysprefer to have certain predetermined standardsfor products .this will relieve buyers from

examining the product and wasting time . Thatis why standardisation has now been acceptedas an ethical basis for marketing.

Marketing information-the modern marketingrequires a lot of information accurately ,adequately and promptly(on time) thisinformation becomes basis of many decisionsin marketing.


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Marketing information makes a seller to knowwhen to sell , at what price to sell , who are the

competitors etc.


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The contractual function.

The merchandising function.

The pricing function. The propaganda function.

The physical distribution function. The termination function


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The contractual function. The contractualfunction is the process of searching out themarket , i.e. buyers . it consist of finding out

the potential buyers , where they are locatedand how they could be reached . furtheractivities include:

1)selecting a proper distribution channel

2)choosing appropriate media to reach thecustomers.

3)discovering consumer needs.


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The merchandising function. This is afunction that involve the coordination of sellingwith production . it includes the process of

selecting the product to be produced andstocked with necessary emphasis on size ,appearance, form, quantities to be bought ,time of purchase or production


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The pricing function- Pricing function ismainly based on economic value of theproduct bought or sold. Pricing is veryimportant and would be given veryimportant role . A product is finallyapproved by the customers only if price

is acceptable to them.


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The propaganda function the functioncomprises all methods used by the sellers toinfluence induce the buyers to buy the

products . Normally it include all advertisingand personal selling activities. These activitiesaims at increasing sales.

The physical distribution function the

function relates to transportation and storageactivities .


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Termination function . this function is the finallink in the process of marketing , where buyerand seller arrive at an agreement.

The essential settled at this stage are-thequality , the quantity and the price of theproduct to be exchanged.since all theseelements are subject to negotiation the process

is also termed as negotiation function.


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Identificationof needs

Environmentalscanning

Technical andbusinessanalysis

Productdevelopment

Estimation ofcost

Setting the

price

Designing thedistributionchannel

PromotionsellingAfter salesservices

Consumersfeedback


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Marketing concept is the way of thinkingwhich determine the course of action aboutmarketing function.

Marketing action Marketing concept-thinking (philosophy)


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Development of marketing concepts

1st stage1900 to 1930Production

oriented

2nd stage1930 to 1950

Sales oriented

3rd stage1950 to 1990

customeroriented

4th stage1990 to updatesocial oriented


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Origin of marketing concept was the Americaneconomy.

The philosophy of business at this time was

produce as much as you can as there is limitlessmarket.

Assumption of this philosophy was

1)Anything that can be produced can be sold.

2)The important task of management is to keep theproduction cost minimum.

3)A firm should produce only some basic products.


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American economy progressed in the field ofproduction during this period.Bumperproduction goods creates a new problem,that

is how to sell the output,therefore focus ofbusinessmen diverted towards sales that iswhy this stage is called as sales orientationstage.

During this stage americans realised that aproduct could not be sold by itself it has to bepushed through sales promotion activities.


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The American industrialists had to face strictcompetition at that time. To increase the sales tothe extent production could be adjust was like a

challenge for marketing institutions and themarketing concept became customer oriented.

a)The firm should produce only those products whichare desired by the consumers.

b)Management is to integrate all its activities inorder to develop programmes to satisfy consumerwants.

c)Customers are treated as the king of market.


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