This document discusses the nature and scope of marketing. It defines marketing as an economic, legal, social, managerial, and philosophical process. Marketing involves transferring ownership of goods from producers to consumers through business activities. It aims to satisfy customer needs and wants to earn profits. The scope of marketing includes studying consumer behavior, production planning, pricing, distribution, promotion, and ensuring customer satisfaction. Marketing management involves planning, organizing, directing, coordinating, and controlling marketing activities to achieve goals. An effective strategic marketing plan guides a company's operations and decisions. It involves market research, segmentation, and developing promotional strategies to penetrate new markets.

1. Nature of Marketing
1. Marketing is an Economic Function
Marketingembracesall the businessactivitiesinvolvedingettinggoodsand services,fromthe hands of
producers into the hands of final consumers. The business steps throughwhich goodsprogress on their
way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers
In the process of marketing the ownership of goods transfers from seller to the purchaser or from
producer to the end user.
3. Marketing is a System of Interacting Business Activities
Marketingis that processthroughwhicha businessenterprise,institution,ororganisationinteractswith
the customers and stakeholders 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.
4. Marketing is a Managerial function
According to managerial or systems approach - "Marketing is the combination of activities designed to
produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a
selected segment of the market."
According to this approach the emphasisis on how the individual organisation processesmarketing and
develops the strategic dimensions of marketing activities.
5. Marketing is a social process
Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham
(1981) societal marketing performs three essential functions:-
1. Knowingandunderstandingthe consumer'schangingneedsandwants;
2. Efficientlyandeffectivelymanagingthe supplyanddemandof productsandservices;and
3. Efficientprovisionof distributionandpaymentprocessingsystems.
6. Marketing is a philosophy based on consumer orientation and satisfaction
7. Marketing had dual objectives - profit making and consumer satisfaction

2. Scope of Marketing
1. Study of Consumer Wants and Needs
Goods are producedto satisfyconsumerwants.Therefore studyis done toidentifyconsumerneedsand
wants. These needs and wants motivates consumer to purchase.
2. Study of Consumer behaviour
Marketersperformsstudyof consumerbehaviour.Analysisof buyerbehaviourhelpsmarketerinmarket
segmentation and targeting.
3. Production planning and development
Productplanninganddevelopmentstartswiththe generationof productideaandendswiththe product
developmentandcommercialisation.Productplanningincludeseverythingfrombrandingandpackaging
to product line expansion and contraction.
4. Pricing Policies
Marketer has to determine pricing policies for their products. Pricing policies differs form product to
product.It dependsonthe level of competition,productlife cycle, marketing goals and objectives, etc.
5. Distribution
Studyof distributionchannel isimportantinmarketing.Formaximumsalesandprofitgoodsare required
to be distributed to the maximum consumers at minimum cost.
6. Promotion
Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in
accomplishment of marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer satisfaction is the major objective of
marketing.
8. Marketing Control
Marketing audit is done to control the marketing activities.

3. Importance of Marketing | MarketingManagement
(1) MarketingHelps in Transfer,Exchange and Movementof Goods:
Marketingisveryhelpful intransfer,exchange andmovementof goods. Goodsandservicesare made
available tocustomersthroughvariousintermediaries’viz.,wholesalersandretailersetc.Marketingis
helpful tobothproducersandconsumers. Tothe former,ittellsaboutthe specificneedsand
preferencesof consumersand tothe latterabout the productsthat manufacturerscanoffer.According
to Prof.HaneyHansen“Marketinginvolvesthe designof the productsacceptable tothe consumersand
the conduct of those activitieswhichfacilitatethe transferof ownershipbetween sellerandbuyer.”
(2) MarketingIs Helpful InRaising And MaintainingThe Standard Of Living Of The Community:
Marketingisabove all the givingof a standard of livingtothe community.Paul Mazurstates,“Marketing
isthe deliveryof standardof living”.ProfessorMalcolmMcNairhasfurtheraddedthat “Marketingisthe
creationanddeliveryof standardof livingtothe society”. Bymakingavailablethe uninterruptedsupply
of goodsandservicestoconsumersat a reasonable price,marketinghasplayedanimportantrole in
raisingandmaintaininglivingstandardsof the community.Communitycomprisesof three classesof
people i.e.,rich,middleandpoor.Everythingwhichisusedbythese differentclassesof peopleis
suppliedbymarketing. Inthe moderntimes,withthe emergence of latestmarketingtechniqueseven
the poorersectionsof societyhave attainedareasonable levelof livingstandard.Thisisbasicallydue to
large scale productionandlesserpricesof commoditiesandservices.Marketing hasinfact,
revolutionisedandmodernisedthe livingstandardof people inmoderntimes.
(3) MarketingCreates Employment:
Marketingiscomplex mechanisminvolvingmanypeopleinone formorthe other.The majormarketing
functionsare buying,selling,financing,transport,warehousing,riskbearingandstandardisation,etc.In
each suchfunctiondifferentactivitiesare performedbya large numberof individualsandbodies. Thus,
marketinggivesemploymenttomanypeople.Itisestimatedthatabout40% of total populationis
directlyorindirectlydependentuponmarketing.Inthe moderneraof large scale productionand

4. industrialisation,role of marketinghaswidened. Thisenlargedrole of marketinghascreatedmany
employmentopportunitiesforpeople.Converse,HuegyandMitchell have rightlypointedoutthat“In
orderto have continuousproduction,there mustbe continuousmarketing,onlythenemploymentcan
be sustainedandhighlevel of businessactivitycanbe continued”.
(4) Marketingas a Source of Income and Revenue:
The performance of marketingfunctionisall important,because itisthe onlywaythroughwhichthe
concerncouldgenerate revenue orincome andbringinprofits.Buskirkhaspointedoutthat,“Any
activityconnectedwithobtainingincomeisamarketingaction.Itis all tooeasyfor the accountant,
engineer,etc.,tooperate underthe broadassumptionthatthe Companywillrealise manydollarsin
total salesvolume. However,someone mustactuallygointothe marketplace andobtaindollarsfrom
societyinorderto sustainthe activitiesof the company,because withoutthese fundsthe organisation
will perish.”Marketingdoesprovide manyopportunitiestoearnprofitsinthe processof buyingand
sellingthe goods,bycreatingtime,place andpossessionutilities.Thisincomeandprofitare reinvested
inthe concern,therebyearningmore profitsinfuture.Marketingshouldbe giventhe greatest
importance,since the very survival of the firmdepends onthe effectiveness of the marketingfunction.
(5) MarketingActs as a Basis for Making Decisions:A businessmanisconfrontedwithmanyproblemsin
the form of what,how,when,howmuchand for whomto produce?Inthe past problemswaslesson
account of local markets.There wasa directlink betweenproducerandconsumer.
In moderntimesmarketinghasbecome averycomplex andtedioustask.Marketinghasemergedas
newspecialisedactivityalongwithproduction. Asaresult,producersare dependinglargelyonthe
mechanismof marketing,todecide whattoproduce andsell.Withthe helpof marketingtechniquesa
producercan regulate hisproductionaccordingly.
(6) MarketingActs as a Source of New Ideas:
The concept of marketingisa dynamicconcept.Ithas changedaltogetherwiththe passage of time.
Such changeshave far reachingeffectsonproductionanddistribution.Withthe rapidchange intastes

5. and preference of people,marketinghastocome up withthe same. Marketingas an instrumentof
measurement,givesscope forunderstandingthisnew demandpatternandtherebyproduceandmake
available the goodsaccordingly.
(7) MarketingIs Helpful InDevelopmentOf An Economy:
AdamSmithhas remarkedthat“nothinghappensinourcountryuntil somebodysellssomething”.
Marketingisthe kingpinthatsetsthe economyrevolving.The marketingorganisation,more
scientificallyorganised,makesthe economystrongandstable,the lesserthe stressonthe marketing
function,the weakerwillbe the economy.
Market Development Defined
Market developmentisabusinessstrategywherebyabusinessattemptstofindnew groupsof buyers
as potential customersforitsexistingproductsandservices.Inotherwords,the goal of market
developmentistoexpandintountappedmarkets.Thesepotential customergroups mayalreadybe
servedbycompetitorsormaynot be currentlymarketedtoby anyone forthe product.
The Processof Market Development
Market developmentisatwo-stepprocess.Itstartswithmarketresearch.You needtoengage in
segmentationanalysistodeterminewhichmarketsegmentsare worthpursuing.A segmentissimplya
small slice of anoverall market.Youcan segmenta marketalongdemographic,geographic,
psychographic(basedonvaluesandlifestyles),andproduct-benefitlines.
Once you have determinedwhichmarketsegmentsare worthpursuing,the secondstepof market
developmentinvolvescreatingapromotional strategytopenetrate the new market.Forexample,you
may decide toengage inan aggressive televisionanddirectmail campaign.You'll alsohave toconsider
the pricingof your product.If there are competitorsinthe market,thenyoumayopt for penetration
pricing,where youaggressivelyprice yourproductlowerthanthe competitioninordertoquicklyobtain
a large share of the market and customerloyalty.
Examplesof Market Development
If you lookat the commercial worldaroundyou,you'll probablynotice alotof marketdevelopment
goingon.Here are a handful of examples:
A consumerelectroniccompanynoticesthatindividualsaged over60 do notbuy itsproductseven
thoughthe productsserve unmetneedsandwants.The companydecidestoenterthe marketthrough
aggressive advertisingandproductdemonstrationsatlocal seniorcommunityevents.

6. Meaning & Functions of Marketing Management
Management is the processes of planning, organizing directing motivating and coordinating and
controllingof variousactivitiesof afirm.Marketingisthe processof satisfyingthe needsandwantsof the
consumers. Management of marketing activities is Marketing Management. Marketing Management
focuses upon the psychological and physical factors of Marketing. The Marketing managers are
responsible forinfluencingthe level,timing,andcompositionof customerdemandaccepteddefinitionof
the term. While the psychological factors focus upon discovering the needs and wants of the consumer
and the changing patterns of buying behavior, habit etc. the physical factors focus upon fulfilling those
needs and demands buy better product design, channel of distribution and other functions. Marketing
Management has the responsibility of to perform many functions in the field of marketing such as
planning,organizing,directing,motivating,coordinatingandcontrolling.Allthesefunctionaimtoachieve
themarketinggoals.
Following is a brief summary of functions of Marketing
1. Marketing Objectives:marketing management determines the marketing objectives. The marketing
objectives may be short term or long term and need a clear approach. They have to be in coherence
with the aims and objectives of the organization.
2. Planning:After objectively determining the marketing Objectives, the important function of the
marketing Management is to plan how to achieve those objectives. This includes sales forecast,
marketing programmes formulation, marketing strategies.
3. Organization: A plan once formulated needs implementation. Organizing functions of marketing
management involves the collection and coordination of required means to implement a plan and to
achieved predetermined objectives. The organization involves structure of marketing organization,
duties, responsibilities and powers of various members of the marketing organization.
4. Coordination:Coordination refers to harmonious adjustment of the activities of the marketing
organization. It involves coordination among various activities such as sales forecasting, product
planning, product development, transportation, warehousing etc.
5. Direction:Direction in marketing management refers to development of new markets, leadershipof
employees, motivation, inspiration, guiding and supervision of the employees.

7. 6. Control: Control referstothe effectivenesswithwhichamarketingplanisimplemented.Itinvolvesthe
determination of standards, evaluation of actual performance, adoption of corrective measures,
7. Staffing:Employmentof rightandableemployeesisverycrucial tosuccessofamarketplan.The market
managercoordinateswiththe HumanResource Manager of an organizationtobe able to hire the staff
with desired capability.
8. Analysis and Evaluation: The marketing management involves the analysis and evaluation of the
productivity and performs mace of individual employees.
https://www.cleverism.com/strategic-marketing-process-complete-guide/
What IsMarketing Strategy Planning?
Strategicmarketingplanningisthe processthatthe operational andmanagerial staff of acompanygoes
throughto create and implementeffective marketing strategies.Strategicmarketingplanningtakes
several aspectsof companymarketingandpromotionintoconsideration.The aspectsthatcontribute to
strategicmarketingplanningincludeidentifyingpromotional opportunitiesandevaluatingthe marketing
opportunities;researching,analyzingandidentifyingthe targetmarkets;developingastrategicposition
for the companyto pursue andhow to implementthe strategy;preparationandimplementationof the
marketingplan;andmeasuringandevaluatingthe resultsof the marketingeffortsof the company.
Strategic Marketing Plans
Strategicmarketingplanninginvolvescombiningcustomerexperienceswiththe overall directionthe
companywantsand needstotake in orderto succeed.Forexample,marketsegmentation playsavital
role instrategicmarketing.Geographicanddemographicdifferencesinacompany’stargetmarketscan
affectthe purchasinghabitsof consumers.Strategicmarketingplanningallowscompaniestogothrough
the processof identifyingwhatthese differencesare,andthenadjustingmarketingmessagesand
presentationof the companyandthe productsand servicesof the businesstomeetthe individual needs
of the differentsegmentsof the market.Forexample,the BabyBoomersgenerationhascreated asurge
inneedforproducts andservicesthatrange drastically.Some companieshave adjustedexisting
productsand servicestomeetthe increase indemand,while othercompanieswiththe foresightto
strategicallyplanforthe increase,developednew productsandservicestomeetthe demand.
Use
Once a strategicmarketingplanisinplace,the companycan use the planas a guide inconductingits
dailybusinessaswell asmakingshort-termandlong-termdecisions.Implementationof the strategic
marketingplantypicallyleadscompaniestothe tactical marketingportionof conductingbusiness.The
strategicmarketingplantransitionsintothe company’splanforproductandservice development;the
communicationplanonhowthe companyintendsonpromotingthe businessofferings;developingthe
salesplan;andfinallyputtingtogetherthe customerserviceplanonhow the companyintendson
interactingwithcurrentandpotential customers.

8. Benefits
The primarybenefitof astrategicmarketingplan isthat itputs a writtenguide inplace fora businessto
followtoreachitsgoals andobjectives.The secondmajoradvantage of strategicmarketingplanningis
that isallowsthe businesstocreate andutilize consistentmessaginginternallyandexternally.
Consistentmessaginginmarketingcreatesefficientcompaniesbecause employeesandcustomers
understandwhatthe companyoffersandhow the companyoffersit.Theyworktowarda commongoal.
Efficientcompaniestypicallyseeanincrease inrevenuesandmarketshare,whileitseesadecrease in
expenses.Ultimately,itall leadstoanincrease incompanyprofitability.
Time Frame
Strategicmarketingplanningisnota one-time action,butratheranongoingprocess.Typically,a
companycreatesa strategicmarketingplanthatcoversshort-term(one year) andlong-term(twoyear,
three yearand five yearplans) periods.Whenastrategicmarketingplanisputinplace,the company
usesitas a guide forsix monthstoone year at a time.The companythenevaluatesthe strategicplanby
measuringthe resultsof the marketingprogramsthe planputinplace.Afterevaluatingthe strategic
marketingplanona six-monthorone-yearbasis,the companymaytweakthe plantoimprove efforts
that didn’tgoas plannedorto mimicthe resultsof plansthat achievedsuccess.
Considerations
Effective strategicmarketingplanningrequirescompaniestoconducta great deal of researchand to
reallygetto knowitstargetmarket.Companiesneedtofullygettoknow whothe targetmarketis,how
theythinkandfeel,whattheydo,howoldtheyare,where theylive,whattheirhobbiesare andmore.
Companiesneedtobe able tolive,think,breatheandfeel like theirtargetmarkettodevelopproducts
and servicesthatfit the needsof the targetmarket.Companiesneedtorememberthatproductand
service developmentneedstohave anexistingmarketingtosell,ratherthandevelopingproductsand
services,andthenseekingoutatarget marketinwhichto sell it.
THE MARKETING MIX – FROM 4 PS TO 7 PS
Marketingisa continuallyevolvingdiscipline andassuchcan be one that companiesfindthemselvesleft
verymuch behindthe competitionif theystandstillfortoolong.One example of thisevolutionhas
beenthe fundamental changestothe basicMarketingmix.Where once there were 4Ps to explainthe
mix,nowadaysitismore commonlyacceptedthata more developed7Ps addsa muchneeded
additional layerof depthtothe MarketingMix withsome theoristsgoingevengoingfurther.
The MarketingMix 4 Ps:
 Product - The Product shouldfitthe taskconsumerswantitfor, itshouldworkand itshouldbe
whatthe consumersare expectingtoget.
 Place – The productshouldbe available fromwhereyourtargetconsumerfindsiteasiest toshop.
Thismay be High Street,Mail Orderor the more currentoptionviae-commerce oranonline shop.
 Price – The Productshouldalwaysbe seenasrepresentinggoodvalue formoney.Thisdoesnot
necessarilymeanitshouldbe the cheapestavailable;one of the maintenetsof the marketing
conceptis thatcustomersare usuallyhappytopaya little more forsomethingthatworksreallywell
for them.
 Promotion – Advertising,PR,SalesPromotion,Personal Sellingand,inmore recenttimes,Social
Mediaare all keycommunicationtoolsforanorganisation.These toolsshouldbe usedtoputacross

9. the organisation’smessagetothe correct audiences inthe mannertheywouldmostliketohear,
whetheritbe informativeorappealingtotheiremotions.
In the late 70’s it was widelyacknowledgedbyMarketersthatthe MarketingMix shouldbe updated.
Thisledto the creationof the ExtendedMarketingMix in1981 by Booms& Bitnerwhichadded3 new
elementstothe 4 PsPrinciple.Thisnowallowedthe extendedMarketingMix toinclude productsthat
are servicesandnotjustphysical things.
The extended7 Ps:
 People – All companiesare reliantonthe people whorunthemfromfrontline Salesstaff tothe
Managing Director.Havingthe rightpeople isessential because theyare asmucha part of your
businessofferingasthe products/servicesyouare offering.
 Processes–The deliveryof yourservice isusuallydonewiththe customerpresentsohow the
service isdeliveredisonce againpart of what the consumeris payingfor.
 Physical Evidence – Almostall servicesincludesome physical elementsevenif the bulkof whatthe
consumerispayingforis intangible.Forexampleahairsalonwouldprovide theirclientwitha
completedhairdoandaninsurance companywould give theircustomerssome formof printed
material.Evenif the material isnotphysicallyprinted(inthe case of PDFs) theyare still receivinga
“physical product”bythis definition.