DEFINITION OF MARKET
Market originates from Latin word 'MARCUTUS" which means a place where
buyer and sellers meet for business. Market is used for a place where the buyers
and sellers meet and conduct buying and selling activities. In the traditional
sense, the market means a place where buyers and sellers gather to enter into
transaction involving the exchange of goods and services but today business can
be conducted on telephone, through mail, internet etc.
DEFINITIONS OF MARKET BY DIFFERENT AUTHORS
According to Philip Kotler: "A market consists of all the potential customers
sharing a particular need or wants to might be willing and able to engage in
exchange to satisfy that need or want".
According to Clark and Clark: "A market is a canter about which or an area in
which the forces leading is exchange of title of a particular product operate and
towards which the actual goods trend to travel".
According to Pyle: "Market includes both place and region in which buyer and
seller are in free competition with one another".
TYPES OF MARKETS
Consumer Market: Companies selling mass consumer goods and services such
as soft drinks, cosmetics, air travel and equipment spend a great deal of time
trying to establish a superior brand image.
1. Business Market: Companies selling business goods and services often face
well trained and well-informed professional buyers who are in evaluating
competitive offerings. Business marketer’s buyers buy goods in order to
make or resell a product to others at a profit.
2. Global Markets: Companies selling goods and services in the global market
place face additional decisions and challenges. They must decide which in
countries how to enter each country, how to adopt their products and
service features to each country.
3. Non-Profit and Government Markets: Companies selling their goods to
nonprofit organizations such as Churches, Universities, Charitable
organizations or government agencies need to price carefully because
, these organizations have limited purchasing power. Lower prices effect on
the features and qualities of products.
DEFINITIONS OF MARKETING
According to Philip Kolter “Marketing is defined as a
social and managerial process by which individuals and
groups obtain what they need and want through creating
and exchanging products and value with others.”
According to American Marketing Association: "Marketing
is the performance of business activities that direct the
flow of goods and services from producer to customer or
user."
According to William Stanton: "Marketing is total system
of interacting business activity design to plan price,
promote and distribute want satisfying goods and
services to the benefit of present and potential
consumer".
According to Kotler and Armstrong: Marketing is the
social process by which individuals and organizations
obtain what they need and want through creating and
exchanging value with others.
OBJECTIVES OF MARKETING
A company must be clear with its marketing objectives and it these objectives
must fit in with the overall business objectives for formulation of proper
business strategy. The objectives of marketing the company must take care are:
1. Creation of Demand: The marketing management's first objective is to
create demand through various means. A conscious attempt is made to
find out the preferences and tastes of the consumers by the company.
Demand for the products and services are created by informing the
customers their utility. According the products and services are produced
to satisfy the needs of the customers.
, 2. Customer Satisfaction: The first and foremost marketing manager must
study the demands of customers before offering any product or services.
Marketing begins and ends with the customer. Satisfaction of the
customers is outcome of understanding of needs and meeting them
successfully.
3. Market Share: Every business aims at increasing its market share. It is the
ratio of its sales to the total sales in the economy. For instance, both Pepsi
and Coke compete with each other to increase their market share. For this,
they have adopted innovative strategies. These strategies can be adopted
in marketing, advertising, sales promotion activities and even through
innovative packaging, etc.
4. Generation of Profits: The marketing department is the only department
which generates revenue for the business. Sufficient profits must be
earned as a result of sale of want- satisfying products. If the firm is not
earning profits, it will not be able to survive in the market. Moreover,
profits are also needed for the growth and diversification of the firm.
5. Public Image: To build up the public image of a firm over a period is
another objective of marketing Goodwill of company is created over a
period of time with regular emphasis on customer satisfaction through
continuous improvement in product and services. The marketing
department provides quality products to customers at reasonable prices
and thus creates its impact on the customers.
ELEMENTS OF MARKETING
The dents of marketing are as follows:
1. Two Parties: Though there are several parties involved in the marketing
process but the most vital amongst them are the buyer and seller.
2. Exchange of Value: The parties involved in the process exchange value with
each other.
3. Transportation: In the marketing besides the purchase and sale, those
activities too are included which are concerned with the transportation of the
commodities from production to the consumption.
, 4. Satisfaction: The objective of activities pertaining to marketing to satisfy the
human needs i.e., to satisfy customer and to encourage the prospective
customer is also the object of marketing.
5. Independence: The parties are free to interact and accept or reject the offer
to each other.
6. Growth and Development: Plans for developing the business and the activities
related to the increase in prices, are also included within marketing.
MARKETING UTILITIES
Four marketing utilities, which are the capacities of the product offering to
satisfy the needs of a customer, are enhanced when exchange occurs. These
include:
1. Form Utility: The product is produced, or modified for the customer. An
example of this might be a car manufacturer designing their car so that a
driver will be able to plug in his I-pod or other devices.
2. Time Utility: The consumer's ability to buy the product when he or she
wants to buy the product. A grocer may store certain amounts of certain
foods until the prime season they are bought. It is ensuring customers will
have access to the food when they most desire them.
3. Place Utility: This describes when a consumer is able to buy the product at
a location that is convenient for them. The best example of this is online
sales. Home is the most convenient location for a consumer.
4. Possession Utility: Ownership of the product is transferred from the
marketer to the buyer. An example is getting a loan and then buying a car.
This is concerned with the ease of transferability for the consumer.
STEPS IN MARKETING PROCESS
Following are the steps involved in the Marketing Process:
1. Situation Analysis
2. Marketing Strategy
3. Marketing Mix Decision The Marketing
4. Implementation and Control
Situation Analysis
Market originates from Latin word 'MARCUTUS" which means a place where
buyer and sellers meet for business. Market is used for a place where the buyers
and sellers meet and conduct buying and selling activities. In the traditional
sense, the market means a place where buyers and sellers gather to enter into
transaction involving the exchange of goods and services but today business can
be conducted on telephone, through mail, internet etc.
DEFINITIONS OF MARKET BY DIFFERENT AUTHORS
According to Philip Kotler: "A market consists of all the potential customers
sharing a particular need or wants to might be willing and able to engage in
exchange to satisfy that need or want".
According to Clark and Clark: "A market is a canter about which or an area in
which the forces leading is exchange of title of a particular product operate and
towards which the actual goods trend to travel".
According to Pyle: "Market includes both place and region in which buyer and
seller are in free competition with one another".
TYPES OF MARKETS
Consumer Market: Companies selling mass consumer goods and services such
as soft drinks, cosmetics, air travel and equipment spend a great deal of time
trying to establish a superior brand image.
1. Business Market: Companies selling business goods and services often face
well trained and well-informed professional buyers who are in evaluating
competitive offerings. Business marketer’s buyers buy goods in order to
make or resell a product to others at a profit.
2. Global Markets: Companies selling goods and services in the global market
place face additional decisions and challenges. They must decide which in
countries how to enter each country, how to adopt their products and
service features to each country.
3. Non-Profit and Government Markets: Companies selling their goods to
nonprofit organizations such as Churches, Universities, Charitable
organizations or government agencies need to price carefully because
, these organizations have limited purchasing power. Lower prices effect on
the features and qualities of products.
DEFINITIONS OF MARKETING
According to Philip Kolter “Marketing is defined as a
social and managerial process by which individuals and
groups obtain what they need and want through creating
and exchanging products and value with others.”
According to American Marketing Association: "Marketing
is the performance of business activities that direct the
flow of goods and services from producer to customer or
user."
According to William Stanton: "Marketing is total system
of interacting business activity design to plan price,
promote and distribute want satisfying goods and
services to the benefit of present and potential
consumer".
According to Kotler and Armstrong: Marketing is the
social process by which individuals and organizations
obtain what they need and want through creating and
exchanging value with others.
OBJECTIVES OF MARKETING
A company must be clear with its marketing objectives and it these objectives
must fit in with the overall business objectives for formulation of proper
business strategy. The objectives of marketing the company must take care are:
1. Creation of Demand: The marketing management's first objective is to
create demand through various means. A conscious attempt is made to
find out the preferences and tastes of the consumers by the company.
Demand for the products and services are created by informing the
customers their utility. According the products and services are produced
to satisfy the needs of the customers.
, 2. Customer Satisfaction: The first and foremost marketing manager must
study the demands of customers before offering any product or services.
Marketing begins and ends with the customer. Satisfaction of the
customers is outcome of understanding of needs and meeting them
successfully.
3. Market Share: Every business aims at increasing its market share. It is the
ratio of its sales to the total sales in the economy. For instance, both Pepsi
and Coke compete with each other to increase their market share. For this,
they have adopted innovative strategies. These strategies can be adopted
in marketing, advertising, sales promotion activities and even through
innovative packaging, etc.
4. Generation of Profits: The marketing department is the only department
which generates revenue for the business. Sufficient profits must be
earned as a result of sale of want- satisfying products. If the firm is not
earning profits, it will not be able to survive in the market. Moreover,
profits are also needed for the growth and diversification of the firm.
5. Public Image: To build up the public image of a firm over a period is
another objective of marketing Goodwill of company is created over a
period of time with regular emphasis on customer satisfaction through
continuous improvement in product and services. The marketing
department provides quality products to customers at reasonable prices
and thus creates its impact on the customers.
ELEMENTS OF MARKETING
The dents of marketing are as follows:
1. Two Parties: Though there are several parties involved in the marketing
process but the most vital amongst them are the buyer and seller.
2. Exchange of Value: The parties involved in the process exchange value with
each other.
3. Transportation: In the marketing besides the purchase and sale, those
activities too are included which are concerned with the transportation of the
commodities from production to the consumption.
, 4. Satisfaction: The objective of activities pertaining to marketing to satisfy the
human needs i.e., to satisfy customer and to encourage the prospective
customer is also the object of marketing.
5. Independence: The parties are free to interact and accept or reject the offer
to each other.
6. Growth and Development: Plans for developing the business and the activities
related to the increase in prices, are also included within marketing.
MARKETING UTILITIES
Four marketing utilities, which are the capacities of the product offering to
satisfy the needs of a customer, are enhanced when exchange occurs. These
include:
1. Form Utility: The product is produced, or modified for the customer. An
example of this might be a car manufacturer designing their car so that a
driver will be able to plug in his I-pod or other devices.
2. Time Utility: The consumer's ability to buy the product when he or she
wants to buy the product. A grocer may store certain amounts of certain
foods until the prime season they are bought. It is ensuring customers will
have access to the food when they most desire them.
3. Place Utility: This describes when a consumer is able to buy the product at
a location that is convenient for them. The best example of this is online
sales. Home is the most convenient location for a consumer.
4. Possession Utility: Ownership of the product is transferred from the
marketer to the buyer. An example is getting a loan and then buying a car.
This is concerned with the ease of transferability for the consumer.
STEPS IN MARKETING PROCESS
Following are the steps involved in the Marketing Process:
1. Situation Analysis
2. Marketing Strategy
3. Marketing Mix Decision The Marketing
4. Implementation and Control
Situation Analysis
