This is the Power Point Presentation of the First Unit of Marketing in CBSE syllabus Introduction to Market and Marketing - Part 1 . This session includes : What is Market and the Classifications of Market What is Marketing and its Components What is an Exchange Process Marketing is an Art as well as an Science

1. UNIT 1
INTRODUCTION TO MARKET & MARKETING
SESSION 1

2. WHAT IS A MARKET ?
 The term MARKET is derived from Latin word ‘ mercatus ’ which means merchandise or
a place where business is conducted .
 Thus a Market would imply:
A place where goods and persons are physically present
An assembly of people ( buyer and seller )
An area of Operation
An act of Buying and Selling
A place where consumers wants are satisfied
 In Marketing , Market refers to the group of consumers or organizations that is
interested in the product , has the resources to purchase the product , and is permitted
by law and other regulations to acquire the product.

3. DEFINITIONS
 According to :
Philip Kotler ,
“ Market is an area or atmosphere for exchange. ”
American Marketing Association ,
“ Market is the aggregate demand of potential buyers for the
product. ”

4. WHY DO WE NEED AND UNDERSTAND MARKETS
 Trade refers to the buying and selling of goods and services with the aim of making
profit
 Trade started in ancient times with the phenomenon of Barter System , in which
goods were exchanged for goods .
 Later with the introduction on Currency , goods were exchanged in return for money
 Trade that takes place within the boundaries is known as INLAND / INTERNAL TRADE
 Trade that takes place between two or more countries is known as EXTERNAL TRADE
 People who produce goods are Producers
 People who buy goods and services for personal use are Consumers.
 The group of people who connect the producer with consumers are Traders.

5. CONCEPTS OF MARKETS
 Place Concept : A convenient meeting place for
exchange of goods.
 Area Concept : Any area providing a set of prices
making forces.
 Demand Concept : It stands for the people with need
and wants to satisfy and have purchasing power.

6. CLASSIFICATION OF MARKETS
BASED
ON
AREA
BASED
ON
TIME
BASED OF
NATURE
OF
COMPETI-
TION
BASED
ON
TRANS-
ACTION
BASED
ON
REGUL-
ATION
BASED
OF
NATURE
OF
GOODS
BASED
ON
VOLUME
OF
BUSINESS
BASED
ON
DEMAND
& SUPPLY

7. BASED ON AREA
1. Local Markets : They confine to a locality mostly dealing in perishable and semi
– perishable goods like fish, flowers, vegetables, eggs, milk, and others.
2. Regional Markets : They cover a wider area may be district, a state or interstate
dealing with durables & non durable goods , industrial goods , metals , forest
products , agricultural products.
3. National Markets : The area covered are national boundaries dealing in durable
& non durable consumer goods , industrial goods , metals , forest products ,
agricultural products.
4. World / International Markets : The movement of goods is widespread
throughout the world , making it a single market . Due to latest technologies in
transport and packing even perishables are sold all over the world

8. BASED ON TIME
 Short-period markets : They are for highly perishable goods of
all kinds
 Long-period markets : They are for durable goods of different
varieties that may be produced or manufactured.

9. BASED ON TRANSACTION
 Spot Market : The ones that transaction takes place, delivery takes
place.
 Future Market : The transactions are finalized pending delivery
and payment for future dates.

10. BASED ON REGULATION
 Regulated Market – It is one in which business dealings take place as
per set rules and regulations regarding, quality, price, source
changes and so on.
 Unregulated market – It is a free market where there are no rules and
regulations; even if they are there, they are amended as per the
requirements of parties of exchange.

11. BASED ON VOLUME OF BUSINESS
 Wholesale markets – Those markets featured by large volume
business and wholesalers
 Retail markets - Those markets where quantity bought and sold is
on small scale. The dealers are retailers who buy from wholesalers
and sell back to consumers.

12. BASED ON NATURE OF GOODS
 Commodity markets - It deal in favor of material, produce,
manufactured goods may be consumer and industrial and bullion
market dealing precious metals.
 Capital market - It is a market for finance. These markets can be
subdivided into ‘money’ market dealing in lending and borrowing of
money; ‘Securities’ market or ‘stock’ market, dealing in buying and
selling of shares and debentures and ‘foreign exchange’ market
where it is a forex market dealing buying and selling of foreign
currencies may be hard or soft.

13. BASED ON NATURE OF COMPETITION
 Perfect Markets - It is one which is characterized by large number of
buyers and sellers, prevalence of single lowest price for products those
are ‘homogeneous’, perfect knowledge on the part of buyers and sellers,
free entry and exit of firms in the market. These types for markets exist
hardly.
 Imperfect Markets – Their products maybe similar but not identical,
different prices for a class of goods, no perfect knowledge of the
products by the buyers and sellers and existence of physical and
psychological barriers on movement of goods.

14. BASED ON DEMAND AND SUPPLY
 Sellers’ Market : It is one where sellers are in drivers’ seat and the
buyers are at the receiving end.
 Buyers’ Market : It is one where buyers are in commanding
position, i.e. supply is exceeding the demand for the goods.

15. WHAT IS MARKETING ?
 Marketing is the belt that connects the two major wheels of any economy
namely producer and consumer. It starts well before production commences
and ends only after rendering sales satisfaction.
 It is a process of business by which products are matched with markets and
through which transfers of ownership are affected.

16. DEFINITIONS
 According to :
Philip Kotler ,
“ Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market as a profit. ”
American Marketing Association ,
“ Marketing is an activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offering that have value for
customers , clients, partners , and society at large. ”

17. COMPONENTS OF MARKETING
 OFFER : This is a proposal which may or may not be acceptable by the buyer as an offer is always from the
center. The purchaser does not accept a product. What he accepts is an offer that include every fact which
is likely to encourage / discourage the purchase.
 MARKET : Market is an aggregate demand of the potential buyers commodity or services.
 SYSTEM : Marketing is concerned with flow of goods and services from the point of production to the point
of consumption
 FORCES : The forces of environment influence the nature and character of offer, market and system. It
consist of demography, social, economic, psychological and technological influences which have profound
effect on marketing.

18. MASLOW’S HIERARCHY OF NEEDS
 Maslow posited that human behavior and
decision making are motivated by one of
the five need levels in his hierarchy .
 According to Maslow,
“A marketer can’t create needs.
Marketers have option of identifying ,
analyzing , anticipating and fulfilling the
needs only. ”

19. PHILIP KOTLER’S NEED CONCEPT OF MARKETING
 ‘Marketers don’t create needs.
Needs pre-exist marketers.’ This is
the underlying principle of marketing
philosophy enunciated by Philip
Kotler.
 According to him marketing is an
activity directly to satisfy directed to
satisfy the needs and wants of the
consumer in the exchange process.
Need, want, demand
Product, goods, services, ideas, person
Creating a market offering
Value, cost, satisfaction
Exchange, transaction
Relationships network
Markets and marketing

20. CREATE MARKET OFFERING
 Market Offerings are the products and services designed
to deliver to customers – either to full fill their needs,
satisfy their wants, or both.
 Market Offerings refers to a complete offer for a product
or service . The product or services that is sold into the
marketplace is called as a Market Offerings.

21. CUSTOMER VALUE
 Customers value is the difference between the values benefits the
customers gain from owning a product and cost of obtaining the
product.
 The cost of product of product is not limited to the price but also time
and energy spent shopping
 Customer Value can be shown as an equation as below:
CUSTOMER VALUE = TOTAL CUSTOMER BENEFITS –
TOTAL CUSTOMERS COST

22. CUSTOMER SATISFACTION
 Customer Satisfaction is the match between customer expectations of the
product and the product’s actual performance.
 Customer Satisfaction differs from one person to another; it’s an experience
which is different for different individuals.
 A proper evaluation of a product or service can be only done by experiencing
it. So, customer satisfaction is a post – purchase phenomenon.
 Satisfaction can only be measured by comparing pre – purchase and post
purchase experience. The equation used to determine the level of customer
satisfaction is :
CUSTOMER SATISFACTION = EXPERIENCE -
EXPECTATION

23. EXCHANGE PROCESS
 Exchange is the act of obtaining a desired object from someone by
offering something in return. Marketing works through exchange .
 EXCHANGE PROCESS is simply when an individual or an
organization obtain and satisfy a need or want by offering some
money in exchange of products and services.
 Exchange Process extends into Relationship Marketing & we enter
exchange relationships all the time.
 Hence, Marketing is earning profit by building relationship with
customer through satisfying his needs and wants.

24. NATURE OF MARKETINGMARKETING IS BOTH SCIENCE AS WELL AS ART
 Marketing is ART because many marketing functions like sales and advertising
require people with certain personality traits to be able to do justice to the
functional role. Also, a good advertisement can come from highly creative minds.
Therefore , a good marketing calls for innate traits cannot be transferred easily and
hence it is an ART.
 Good Marketing can be classified as SCIENCE as well. Because many marketing
process like distribution, and setting prices are quite standardized and scientific.
Marketing overall can be described as the standard processing of understanding
needs and wants , creating things aimed at satisfying these needs and wants and
making the things available to consumer in exchange of profit. Because of these
standard and scientific processes of marketing , it could be easily termed as
SCIENTIFIC.