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Marketing

Uploaded by

laleshsutharr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 8: Marketing

Market
The term ‘Market’ is derived from the Latin word ‘Mercatus’, which means ‘to trade’ or ‘to
trade merchandise’ or ‘a place where business is transacted’. In simple words market is a
place where two or more parties are involved in buying and selling.
Marketing
Business could have amazing products or services, but if no one knows it exists then business
will not be able to sell it. There is a need to use marketing to promote business. Without
marketing, it is difficult to reach the potential customers.

Importance of Marketing
A. Importance of Marketing to the Society:
1. Provides Employment (It is a system which involves many functions and thus provides
job opportunities)
2. Increase in Standard of Living (identify needs of the customers and take an initiative
to provide quality goods at the cheaper prices)
3. Increase in National Income (helps in economic development which results in
increase in National Income)
4. Decreases Distribution Costs (through effective utilization of channel of distribution)

5. Consumer Awareness (provides relevant information of goods and services to


customers)
6. Managing Consumer Expectations (Marketing Research helps in developing of
product which fulfills customer expectations)
B. Importance of Marketing to the Firm:
1. Source of New Ideas (Research & Development of Marketing helps in Innovation and
Inventions)
2. Basis for Making Decisions (helps in (What, How, When, How much and For Whom?)
decision makings)
3. Increases Awareness (Creates Brand Awareness - helps in creating awareness about
the existing, upcoming products)
4. Increases Sales (Marketing campaigns helps in increasing Sales of the organization)
5. Creates Trust (Building a relationship between customers and the organization)
6. Tackling the Competition (Marketing helps to tackle all the types of Competitions of
Business by building Trust & Brand, making Innovation, by R&D, Increasing Sales)
Importance of Marketing to the Consumers:
1. Promotes Product Awareness (Consumers come to know about different products
and services available)
2. Provides Quality Products (helps in providing Quality products by creating Moral
Pressure over organization)
3. Provides Variety of Products (Helps in providing variety of products by Market
Segmentation)
4. Helps in Selection (helps to choose best products and services from options
available)
5. Consumer Satisfaction (Marketing leads to consumer satisfaction through honest
advertising, assurance of quality products and innovative products)
6. Regular Supply of Goods (Efficient channel of distribution of marketing helps in
regular supply of goods)

Functions of Marketing:
1. Marketing Research (identify the needs and wants of the consumers)
2. Buying and Assembling (collecting and assembling raw material)
3. Market Planning (organizing and defining the marketing objectives and creating
strategies to achieve them)
4. Product Development (develop the product that suits the needs of the consumers)
5. Standardization and Grading (to determine standards) (classification of products
according to their quality)
6. Packaging and Labelling (package and label creates the first impression)
7. Branding (creating a unique identity in consumer’s mind)
8. Pricing of Product (High prices – lose customers) (Low prices – suffer losses)
9. Warehousing (store goods for the time between production and consumption)
10. Promotional Channels (Advertising, Personal Selling, Publicity and Sales Promotion)
11. Distribution (set of activities concerned with movement of finished goods from the
place of production to the place of consumption) (Transportation, Warehousing,
Material Handling, Inventory Control, Order Processing, Market Forecasting, etc.)
12. Transportation (physical movement of finished goods from the place of production to
the place of consumption)
13. Customer Support Service (timely support services help to gain customer’s loyalty)

Marketing Mix
Marketing Mix is putting the right product, at the right time, at the right price in the right
place. The 4 P’s of marketing Mix were introduced by E. Jerome McCarthy in 1960. It was
further extended by Booms and Bitner in 1981 by adding 3 new P’s.
Types of Marketing Mix:
- Product Marketing Mix (4 P’s)
- Service Marketing Mix (7 p’s)
1. Product (quality of product) (customer satisfaction)
2. Price (High price – lose customers) (Low price – suffer losses)
3. Place (distribution channel) (selecting the proper channel distribution of channel)
4. Promotion (Advertising, Direct Marketing, Sales Promotion, Personal Selling, etc.)

5. People (right people at right place)


6. Process (steps involved in delivering products and services to the customer) (standard
process)
7. Physical Environment (location, layout, interior design, packaging, branding, dress of
the staff, waiting area, etc.)

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