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1.1 Nature - Scope of Maketing

The document defines marketing and discusses its nature and scope. Marketing is defined as a social and managerial process to satisfy human needs through exchange. The nature of marketing involves it being a human activity, consumer-oriented, an art and science, focused on exchange processes, starting and ending with customers, and creating utility. The scope of marketing includes functions like research, product planning, development and exchange to generate revenue by satisfying customer needs.

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17 views2 pages

1.1 Nature - Scope of Maketing

The document defines marketing and discusses its nature and scope. Marketing is defined as a social and managerial process to satisfy human needs through exchange. The nature of marketing involves it being a human activity, consumer-oriented, an art and science, focused on exchange processes, starting and ending with customers, and creating utility. The scope of marketing includes functions like research, product planning, development and exchange to generate revenue by satisfying customer needs.

Uploaded by

hadianoor103
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

1 NATURE & SCOPE OF MARKETING


Definition of Marketing
 Traditional Concept: The term ‘traditional marketing’ can be expressed as the
business activity through which goods and services directly move from producers to
consumers or users.
 Modern Concept: The term ‘modern marketing’ can be expressed as the
achievement of corporate goals through meeting and exceeding customer needs better
than the competition.
According to Philip Kotler, the term ‘marketing’ is a social and managerial process by which
individual groups obtain what they need and want through creating, offering and freely
exchanging product and services of value with others.
The Nature of Marketing (or Modern marketing) may be studied under the following points:
1. Human activity: Originally, the term marketing is a human activity under which
human needs are satisfied by human efforts. It’s a human action for human
satisfaction.
2. Consumer-oriented: A business exist to satisfy human needs, hence business must
find out what the desire of customer (or consumer) and thereby produce goods &
services as per the needs of the customer. Thus, only those goods should be produce
that satisfy consumer needs and at a reasonable profit to the manufacturer (or
producer).
3. Art as well as science: In the technological arena, marketing is the art and science of
choosing target markets and satisfying customers through creating, delivering, and
communicating superior customer value. It is a technique of making the goods
available at right time, right place, into right hands, right quality, in the right form and
at right price.
4. Exchange Process: All marketing activities revolve around commercial exchange
process. The exchange process implies transactions between buyer and seller. It also
involves exchange of technology, exchange of information and exchange of ideas.
5. Starts and ends with customers: Marketing is consumer oriented and it is crucial to
know what the actual demand of consumer is. This is possible only when required
information related to the goods and services is collected from the customer. Thus, it
is the starting of marketing and the marketing end as soon as those goods and services
reach into the safe hands of the customer.
6. Creation of Utilities: Marketing creates four components of utilities viz. time, place,
possession and form. The form utility refers to the product or service a company
offers to their customers. The place utility refers to the availability of a product or
service in a location i.e. Easier for customers. By time utility, a company can ensure
that products and services are available when customers need them. The possession
utility gives customers ownership of a product or service and enables them to derive
benefits in their own business.
7. Goal oriented: Marketing seeks to achieve benefits for both buyers and sellers by
satisfying human needs. The ultimate goal of marketing is to generate profits through
the satisfaction of the customer.
8. Guiding element of business: Modern Marketing is the heart of industrial activity that
tells what, when, how to produce. It is capable of guiding and controlling business.
9. System of Interacting Business Activities: Marketing is the system through which a
business enterprise, institution or organization interacts with the customers with the
objective to earn profit, satisfy customers and manage relationship. It is the
performance of business activities that direct the flow of goods and services from
producer to consumer or user.
10. Marketing is a dynamic processe. series of interrelated functions: Marketing is a
complex, continuous and interrelated process. It involves continuous planning,
implementation and control.

Scope/Functions of Marketing
The major purpose of marketing manager is to generate revenue for the business by selling
goods and services to the consumers. It lies in insuring the customer needs and converting
them into product or services and moving the product and services to the final user or
customer, to satisfy the wants and needs of specific segment of customers with emphasis on
profitability and ensuring the optimum use of resources available with the organization. The
marketing manager has to perform the research functions and exchange functions.

Functions of Research
The modern marketing activities start with consumer research. It is referred with the analysis
of consumer attitudes, tastes, habits, reactions and preferences to the company’s product so
that the products may be produced according to the needs of the consumers. The major
functions of research are as follows:
Marketing Research: The marketing research is helpful in analyzing the customer’s
behavior, popularity of product, effectiveness of advertising, pricing policy, etc. In other
words, it is the systematic gathering, recording and analyzing of data about problems relating
to the marketing of goods and services. For making correct and timely decisions, the
marketing manager analyses all the available opportunities, threats, strengths and weaknesses
of the organization and determine the best opportunity to be pursue for it.
Product planning and development: Under modern marketing activities, product planning
is determined before the start of actual production. It is the process in which shape, size,
color, weight, design, packing, etc. of the product is determined on the basis of information
gathered with the help of market research. Product development involves decisions regarding
shape, size, color, weight, design, quality, brand, label, etc. as per the needs of the consumer,
which will give maximum satisfaction to the consumer and reasonable profit to the
manufacturer.

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