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Marketing Introduction.

M.S.R.Sesha Giri. MBA

 Assistant Professor Department of Management Studies

Gayatri Vidya Parishad-45.

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Philip Kotler 

Marketing Guru.

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�The term µmarket¶ is derived from the Latin word

 µmercatus¶, which means µto trade¶ .

�It also means merchandise, ware traffic and

place of business.

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The Chartered Institute of Marketing definesmarketing as follows:

³Marketing is the management processfor identifying, anticipating & satisfyingconsumer¶s requirements profitably.´ 

 American Management Association is as follows:³Marketing is the process of planning and executing the conception,

 pricing, promotion & distribution of ideas, goods & services to create

exchanges that satisfy individual and organizational objectives.´ 

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The follow successful exchange Needs

At least two parties must be involved.

Each party must have something that interests theother party.

Each party must be able to communicate and deliver.

Each party must be free to accept or reject any offerfrom the other party.

Each party must consider it desirable, or at leastacceptable, to deal with the other party.

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Marketing Concepts

The Exchange Concept:

Holds that the exchange of a product between the seller and the

buyer is the central idea of marketing.

Exchange covers the distribution aspect and the price mechanism

involved in marketing .

The Production Concept. (industrial revolution, and remained such until the early 20th century.)

Holds that customers favour those products with low offer price and

easy availability.

�

Holds that high production efficiency and wide distribution

coverage would sell the product offered to the market.

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The Product Concept:

Holds that customer favours quality, performance, innovativefeatures etc.

Firms following this philosophy believe that by making superiorproducts and improving their quality overtime, they will be able toattract customers.

The Selling Concept: (early 20th century)

Holds that customer, if left alone, would not buy enough of thecompany¶s products.

The organisation must, therefore undertake an aggressive selling andpromotion effort

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TMarketing Concept(1950s-60s)�Holds that marketing starts with the determination of consumer wants

� and ends with the satisfaction of those wants.

�The concept puts the customer both at the beginning and at the end.

�The Societal Marketing Concept: This concept holds that the organization's task

� is to determine the needs, wants and interests of target markets and do deliver the

�desired satisfactions more effectively and efficiently than competitors in a way that

�preserves or enhances the consumer¶s and the society¶s well-being.

�The societal marketing concept calls upon marketers to build social and ethical

�considerations into their marketing practices. They must balance the often

� conflicting criteria of company profits, consumer want, satisfaction and public

� interest.

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Concepts or  

Philosophies

Stage 1 Stage 2 Stage 3 Result of  

Stage 1-3

Profits

Production

Concept

Vague idea

about

customer 

wants

Mass

Production

Mass

Production

Product

availability at a

low price

Profit through

mass

standardization

Product

Concept

Vague idea

about

customer 

needs

Superior 

product by

R & D

Distribution

without

proper 

marketing

mix

Superior 

performance

product

availability

Profit through

marketing

myopia

Selling

Concept

Vague idea

about

customer 

needs

Mass

production

and

distribution

Maximum

use of 

selling

technique

Product

availability

buyer inertia

Profit through

hard-sell

Marketing

Concept

 Analyse

target market

Know what

customer 

needs

Integrated

marketing

Product as per 

customer 

requirements

Profit through

customer 

satisfaction

Social

Marketing

Concept

 Analyses

target market

and know

customer 

needs

Study

customer 

needs in

the light of 

ecologicalimpurities

Integrated

market with

ecological

constraints

Product as per 

customer 

requirements

and ecological

constraints

Profit through

human

satisfaction

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G.B. Giles described seven functions of marketing:

(1) Marketing Research,

(2) Marketing planning,

(3) Product development,

(4) Advertisement and sales promotion,

(5) Selling and distribution,

(6) After sale services and

(7) Public relations.

Tousley,Clark and Clark, have described eight functions of marketing:

(1)Purchasing,

(2)Standardization,

(3)Collection,

(4)Transportation,

(5)Finance,

(6)Risk bearing,

(7)Marketing promotion and (8) Sales.

Functions of Marketing