Category : Banking
Introduction
Marketing is about identifying and meeting human and social needs. It is the process of communicating the value of a product or service to customers, for selling that product or service. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.
Nature of Marketing
Characteristics of Marketing
Scope of Marketing
Objectives of Marketing
Difference between Marketing and Selling
Marketing |
Selling |
(1) Marketing includes selling and other activities like various promotional measures, marketing research, after sales services. Etc. |
Selling is confined to persuasion of consumers to buy firm?s goods and services. |
(2) It starts with research on consumer needs, wants, preference, like, dislikes, etc. and continues even after the sales have actually taken place. |
Selling starts after the production process is over and ends with the handing over the money to the seller by the buyer. |
(3) Focus is on earning profit through maximization of customers satisfaction. |
Focus is on earning profit through maximization of sales. |
(4) Customers need is the central point around whom all marketing activities revolve. |
All activities revolve around the product that has been produced. |
(5) It is an integrated approach to achieve long-term goals like creating, maintaining and retaining the customer. |
Fragmented approach to achieve short-term gain. |
(6) Stress on needs of the buyer. |
Stress on needs of the seller. |
(7) In marketing the consumer is king. |
In selling the product is king. |
Concepts of Marketing
Marketing is based on many concepts as per the orientation and perception of the firms about the business and market place, those concepts are
This concept of marketing indicates that the exchange of a product between the seller and buyer is necessary.
Production dominates the thinking process of the consumers. Products produced in a great volume at a low unit cost are supported by the consumers.
In this concept, quality of the product is focused. Good and quality products are provided to the customer.
Large sales promotion is believed to maximise the selling. Organisations resort to aggressive advertising, high power personal selling. The customer is being neglected in this concept.
When an organisation gives excessive attention to production or the product or selling at the cost of the customers' actual needs then marketing myopia is created.
Steps of Marketing
Steps of marketing are as follows
Types of Marketing
There are two types of marketing
Consumer goods are classified as
(a) Convenience Goods Consumer goods purchased frequently, immediately and with least time efforts are referred to as convenience goods like pen, biscuits, newspapers, medicines, etc.
(b) Shopping Goods Shopping goods are those consumer goods, in the purchase of which buyers devote considerable time to compare the quality, price, style, suitability at different stores before making final purchase, e.g., radio, refrigerator, television, cloth, etc.
(c) Specialty Goods People make special efforts to purchase the service of specialty goods, e.g., restaurant, tailor, etc.
Functions of Marketing
The functions of marketing and have been discussed below
It is a process of collection and analyzing information regarding customer needs and buying nabits, nature of competition prevailing prices effectiveness of advertising media, etc.
The task of marketing begins with planning and designing a product for the consumers. It can also be done while modifying and improving an existing product.
It refers to buying and collection of required goods for resale. It is primarily relevant to those business organisations who are engaged in trading activities.
It involves putting the goods in attractive packets, containers according to the convenience of consumers. As suitable and attractive packages increase the demand for the products to a great extent. Labelling means putting identification marks on the package. It contains information about the producer of the product.
Standardisation helps in promoting the sale of the product by increasing consumers confidence in the product quality. Grading involves separating products into different classes on the basis of certain predetermined standards related to size and quality.
It refers to giving an attractive name, symbol or identity mark to the product to make it different from other products.
It involves decisions regarding fixation of product prices. Pricing is done keeping in view the product costs, the capacity of customers to pay and the prices of the competitive products.
Transportation means carrying goods from one place to another. It helps in assembling and dispersing the goods. It links together the producers and consumers who are located at different places.
Promotion means all the activities performed by a producer or by a dealer or by a businessman to increase his sales. Main purpose of promotion activities is to encourage and pursuade the consumers to buy a particular product.
Roles of marketing are as follows
Importance of Marketing
Importance of marketing can be discussed as follows
Tit - Bits
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