Chapter – 5
5.1 Marketing
5.2 Marketing Research
5.3 Marketing management
5.4 Marketing Mix
,5.1 Marketing
The objective of all business enterprises is to satisfy the needs and wants of the society.
Marketing is, therefore, a basic function of all business firms. When a salesperson sells washing
machines, a doctor treats a patient or a Government asks people to take their children for getting
polio drops, each is marketing something to the targets. Traditionally, small firm owners did not
give as much importance to marketing as to other functions such as accountancy, production and
selling. Training programmes, enterprise development and the current thrust for competitiveness
have now given high priority to promoting marketing awareness among small business owners,
and marketing is now assuming its rightful place along with other business functions.
Since early 1990s there has been a change in the thinking of businessman from product
orientation to consumer orientation. Modern business concerns lay emphasis on ‘selling
satisfaction’ and not merely on selling products. The activities have to be coordinated so as to
develop the marketing mix, which provides maximum satisfaction to the customers. That is why
marketing research and product planning occupy an important role in marketing. The other
important functions of marketing include: buying and assembling, selling, standardisation,
packing, storing, transportation, promotion, pricing and risk bearing. Thus, the scope of
marketing is very wide and no more restricted to merely selling of products.
Marketing may be narrowly defined as a process by which goods and services are
exchanged and the values determined in terms of money prices. That means marketing includes
all those activities carried on to transfer the goods from the manufacturers or producers to the
consumers.
We shall be learning later in the lesson that marketing is more than a mere physical process of
distributing goods and services. It is the process of discovering and translating consumer wants
into products and services. It begins with the customer (by finding their needs) and ends with the
customer (by satisfying their needs).
Marketing is the process of communicating the value of a product or service to customers, for the
purpose of selling the product or service. It is a critical business function for attracting customers
Definitions of Marketing by different authors:
“The science and art of exploring, creating, and delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled needs and desires. It defines measures and
quantifies the size of the identified market and the profit potential. It pinpoints which segments
the company is capable of serving best and it designs and promotes the appropriate products and
services.” By Dr. Philip Kotler.
,“Marketing is the process by which a firm profitably translates customer needs into revenue.” By
Mark Burgess.
From a societal point of view, marketing is the link between a society’s material requirements
and its economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. It is the process of communicating the
value of a product or service through positioning to customers. Marketing can be looked at as an
organizational function and a set of processes for creating, delivering and communicating value
to customers, and managing customer relationships in ways that also benefit the organization and
its shareholders. Marketing is the science of choosing target markets through market analysis and
market segmentation, as well as understanding consumer buying behavior and providing superior
customer value.
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.” By The American Marketing Association
If we read the definition closely, you see that there are four activities, or components, of
marketing:
Creating. The process of collaborating with suppliers and customers to create offerings
that have value.
Communicating. Broadly, describing those offerings, as well as learning from customers.
Delivering. Getting those offerings to the consumer in a way that optimizes value.
Exchanging. Trading value for those offerings.
The traditional way of viewing the components of marketing is via the four Ps:
1. Product. Goods and services (creating offerings).
2. Promotion. Communication.
3. Place. Getting the product to a point at which the customer can purchase it (delivering).
4. Price. The monetary amount charged for the product (exchange).
Introduced in the early 1950s, the four Ps were called the marketing mix, meaning that a
marketing plan is a mix of these four components.
If the four Ps are the same as creating, communicating, delivering, and exchanging, we might be
wondering why there was a change. The answer is that they are not exactly the same. Product,
price, place, and promotion are nouns. As such, these words fail to capture all the activities of
marketing. For example,
exchanging requires mechanisms for a transaction, which consist of more than simply a price or
place. Exchanging requires, among other things, the transfer of ownership. For example, when
you buy a car, you sign documents that transfer the car’s title from the seller to you. That’s part
of the exchange process.
, Even the term product, which seems pretty obvious, is limited. Does the product include services
that come with your new car purchase (such as free maintenance for a certain period of time on
some models)? Or does the product mean only the car itself?
5.1.1 Value
Value is at the center of everything marketing does. What does value mean?
Source: Sylor.com
Marketing is composed of four activities centered on customer value: creating, communicating,
delivering, and exchanging value.
When we use the term value, we mean the benefits buyers receive that meet their needs. In other
words, value is what the customer gets by purchasing and consuming a company’s offering. So,
although the offering is created by the company, the value is determined by the customer.
Furthermore, our goal as marketers is to create a profitable exchange for consumers. By
profitable, we mean that the consumer’s personal value equation is positive. The personal value
equation is:
Value = benefits received – [price + hassle]
Hassle is the time and effort the consumer puts into the shopping process. The equation is a
personal one because how each consumer judges the benefits of a product will vary, as will the
time and effort he or she puts into shopping. Value, then, varies for each consumer.
5.1 Marketing
5.2 Marketing Research
5.3 Marketing management
5.4 Marketing Mix
,5.1 Marketing
The objective of all business enterprises is to satisfy the needs and wants of the society.
Marketing is, therefore, a basic function of all business firms. When a salesperson sells washing
machines, a doctor treats a patient or a Government asks people to take their children for getting
polio drops, each is marketing something to the targets. Traditionally, small firm owners did not
give as much importance to marketing as to other functions such as accountancy, production and
selling. Training programmes, enterprise development and the current thrust for competitiveness
have now given high priority to promoting marketing awareness among small business owners,
and marketing is now assuming its rightful place along with other business functions.
Since early 1990s there has been a change in the thinking of businessman from product
orientation to consumer orientation. Modern business concerns lay emphasis on ‘selling
satisfaction’ and not merely on selling products. The activities have to be coordinated so as to
develop the marketing mix, which provides maximum satisfaction to the customers. That is why
marketing research and product planning occupy an important role in marketing. The other
important functions of marketing include: buying and assembling, selling, standardisation,
packing, storing, transportation, promotion, pricing and risk bearing. Thus, the scope of
marketing is very wide and no more restricted to merely selling of products.
Marketing may be narrowly defined as a process by which goods and services are
exchanged and the values determined in terms of money prices. That means marketing includes
all those activities carried on to transfer the goods from the manufacturers or producers to the
consumers.
We shall be learning later in the lesson that marketing is more than a mere physical process of
distributing goods and services. It is the process of discovering and translating consumer wants
into products and services. It begins with the customer (by finding their needs) and ends with the
customer (by satisfying their needs).
Marketing is the process of communicating the value of a product or service to customers, for the
purpose of selling the product or service. It is a critical business function for attracting customers
Definitions of Marketing by different authors:
“The science and art of exploring, creating, and delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled needs and desires. It defines measures and
quantifies the size of the identified market and the profit potential. It pinpoints which segments
the company is capable of serving best and it designs and promotes the appropriate products and
services.” By Dr. Philip Kotler.
,“Marketing is the process by which a firm profitably translates customer needs into revenue.” By
Mark Burgess.
From a societal point of view, marketing is the link between a society’s material requirements
and its economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. It is the process of communicating the
value of a product or service through positioning to customers. Marketing can be looked at as an
organizational function and a set of processes for creating, delivering and communicating value
to customers, and managing customer relationships in ways that also benefit the organization and
its shareholders. Marketing is the science of choosing target markets through market analysis and
market segmentation, as well as understanding consumer buying behavior and providing superior
customer value.
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.” By The American Marketing Association
If we read the definition closely, you see that there are four activities, or components, of
marketing:
Creating. The process of collaborating with suppliers and customers to create offerings
that have value.
Communicating. Broadly, describing those offerings, as well as learning from customers.
Delivering. Getting those offerings to the consumer in a way that optimizes value.
Exchanging. Trading value for those offerings.
The traditional way of viewing the components of marketing is via the four Ps:
1. Product. Goods and services (creating offerings).
2. Promotion. Communication.
3. Place. Getting the product to a point at which the customer can purchase it (delivering).
4. Price. The monetary amount charged for the product (exchange).
Introduced in the early 1950s, the four Ps were called the marketing mix, meaning that a
marketing plan is a mix of these four components.
If the four Ps are the same as creating, communicating, delivering, and exchanging, we might be
wondering why there was a change. The answer is that they are not exactly the same. Product,
price, place, and promotion are nouns. As such, these words fail to capture all the activities of
marketing. For example,
exchanging requires mechanisms for a transaction, which consist of more than simply a price or
place. Exchanging requires, among other things, the transfer of ownership. For example, when
you buy a car, you sign documents that transfer the car’s title from the seller to you. That’s part
of the exchange process.
, Even the term product, which seems pretty obvious, is limited. Does the product include services
that come with your new car purchase (such as free maintenance for a certain period of time on
some models)? Or does the product mean only the car itself?
5.1.1 Value
Value is at the center of everything marketing does. What does value mean?
Source: Sylor.com
Marketing is composed of four activities centered on customer value: creating, communicating,
delivering, and exchanging value.
When we use the term value, we mean the benefits buyers receive that meet their needs. In other
words, value is what the customer gets by purchasing and consuming a company’s offering. So,
although the offering is created by the company, the value is determined by the customer.
Furthermore, our goal as marketers is to create a profitable exchange for consumers. By
profitable, we mean that the consumer’s personal value equation is positive. The personal value
equation is:
Value = benefits received – [price + hassle]
Hassle is the time and effort the consumer puts into the shopping process. The equation is a
personal one because how each consumer judges the benefits of a product will vary, as will the
time and effort he or she puts into shopping. Value, then, varies for each consumer.
