Ppt

1. 1-1
Introduction
• The word market is derived form the Latin word “Marcatus”
meaning goods or trade or a place where business is conducted.
The term marketing is defined as a ‘business activity planned at
satisfying to a reasonable extent, consumer or customer needs
and wants, generally through an exchange process’.
• According to American Marketing Association, "Marketing is an
organisational function and a set of processes for creating,
communicating and delivering value to customers and for
managing customer relationships in ways that benefit the
organisation and its stakeholders”

2. 1-2
Definition of Marketing
 A popular definition is that “marketing is the performance of
business activities that direct the flow of goods and services
from producer to consumer or user”
 The American Marketing Association (AMA) - Marketing is
the process of planning and executing the conception, pricing,
promotion, & distribution of ideas, goods, & services to create
exchanges that satisfy individual and organizational goals.
 According to Philip Kotler (2000) - "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."

3. 1-3
Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

4. 1-4
Key Concepts of Marketing
Product or Offering
Value and Satisfaction
Needs, Wants, and Demands
Exchange and Transactions
Relationships and Networks
Target Markets & Segmentation
Marketing Channels
Supply Chain
Competition
Marketing Environment

5. 1-5
NEEDS, WANTS AND DEMANDS
 A human need is a state of felt deprivation of some basic
satisfaction. People require foods, clothing, shelter, safety,
belonging, esteem etc. these needs exist in the very nature of
human beings.
 Human wants are desires for specific satisfiers of these needs.
For example, cloth is a needs but Raymond's suiting may be
want. While people’s needs are few, their wants are many.
 Demands are wants for specific products that are backed up by an
ability and willingness to buy them. Wants become demands
when backed up by purchasing power

6. 1-6
Products
 Products are defined as anything that can be offered to some one
to satisfy a need or want.
A product or offering can consist of as many as following
components:
 Physical good(s)
 Service(s)

7. 1-7
Value and Satisfaction
 Consumers choose among the products, a particular product that
give them maximum value and satisfaction.
 E.g A customer needs to travel for a work – he could use
several products for his need. A bicycle, motor cycle, a car, a
taxicab or a bus – these alternatives will constitute his
product choice set.
 Value is the consumer’s estimate of the product’s capacity to
satisfy their requirements.
 The customer has to decide to which product will deliver the
most total satisfaction

8. 1-8
Exchange and Transactions
 Exchange is the act of obtaining a desired product from
someone by offering something in return.
 A transaction involves at least two thing of value,
conditions that are agreed to, a time of agreement and a
place of agreement.

9. 1-9
Market
 A market consist of all the existing and potential
consumers sharing a particular need or want who might be
willing and able to engage in exchange to satisfy that need
or want.

10. 1-10
IMPORTANCE OF MARKETING
1. Marketing process brings goods and services to satisfy the
needs and wants of the people.
2. It helps to bring new varieties and quality goods to consumers.
3. By making goods available at all places, it brings equipment
distribution.
4. Marketing converts latent demand into effective demand.
5. It gives wide employment opportunities.

11. 1-11
IMPORTANCE OF MARKETING
6. It creates time, place and possession utilities to the products.
7. Efficient marketing results in lower cost of marketing and
ultimately lower prices to consumers.
8. It is vital link between production and consumption and
primarily responsible to keep the wheel of production and
consumption constantly moving.
9. It creates to keep the standard of living of the society.

12. 1-12
Nature of Marketing
1. Marketing is an Economic Function
Marketing embraces all the business activities involved in getting
goods and services , from the hands of producers into the hands of
final consumers. The business steps through which goods progress
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 Managerial function
According to managerial or systems approach the emphasis is on
how the individual organisation processes marketing and develops
the strategic dimensions of marketing activities.

13. 1-13
Nature of Marketing
4. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise,
institution, or organisation interacts with 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.
5. It is a philosophy based on consumer orientation and satisfaction
6. Marketing had dual objectives - profit making and consumer
satisfaction

14. 1-14
Marketing Management
 Marketing management is defined as “the analysis, planning,
implementation and control of programmes designed to create
purpose of achieving organizational objectives”.
 “Marketing management is the process of planning and
executing the conception, pricing, promotion and distribution of
ideas, goods, and services to create exchanges that satisfy
individual and organizational goals”. By American Marketing
Association