MCO-06
Important Questions and Answers
Unit-1: Introduction to Marketing
What is Marketing Management?
• Marketing management refers to the functions of planning, organising, directing and
controlling which helps in the movement of goods and services from producers to
consumers.
• It is not only concerned with creating demand but also to maintain it. The aim is to get,
keep and grow the customers.
• Marketing Is the performance of business activities that directs the flow of goods and
services from producer to consumer.
• Marketing starts much before the production of goods and continues even after the sale
of goods.
• It is a process of ascertaining the needs of consumers and converting them into products
and services and finally moving the product to the final consumer to satisfy the needs and
bonds.
Concepts or Philosophies of marketing management
There are basically 5 different marketing concepts such as
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal concept
1. Production concept According to this concept, a business organization should
manufacture only those goods and services which are demanded by the consumers. The
managers should try to produce the goods from available resources at lowest cost.
2. Product concept according to this concept, the consumers gave importance to the
attributes of a product like quality, performance and other features of the product.
Therefore, the managers should focus on developing better quality of goods and services
and improving the existing product.
SANTOSH SHARMA 1
, 3. Selling concept an organization should undertake selling and promotion activities to
increase the sale of the product. consumers need to be guided for buying. Therefore, a
business organization should focus on advertisements and sales promotion activities.
4. Marketing concept According to this concept an organization should try to understand
the needs and wants of the consumers. Marketing concept is one of the widest concepts.
The main aim of marketing concept is to satisfy the consumers ultimately. Therefore, this
concept starts much before the production and continues even after the sale of the
product.
5. Societal concept a business organization must be socially responsible. it should take care
of the society because it is the society which provides factors of production to the firm
and consumes the products and services produced by it.
Processes of Marketing Management.
The marketing process consists of 4 steps:
1. Analysing the marketing environment
2. Selecting target markets
3. Developing the marketing mix
4. Implementing and controlling
1. Analysing the marketing environment this process aims at identifying the needs and
wants of the consumers. It is very important for a business organization to analyse the
marketing opportunities and potential.
2. Selecting target markets in this stage, a business organization divides the market into
various segments. Then each segment is evaluated to find out the specific needs of the
consumers.
3. Developing the marketing mix the 3rd step in the marketing process is to decide about
marketing mix. there are four basic elements of marketing mix such as product, price,
promotion and physical distribution. these are also known as 4 piece of marketing mix.
4. Implementing and controlling this is the last stage in marketing management. In this
stage all the plans and strategies framed or implemented or executed to achieve the goals
of marketing management.
SANTOSH SHARMA 2
,Difference between selling and marketing
Selling Marketing
It is a process of transferring the It is a process of creating, maintaining
ownership of goods from seller to and serving the consumers.
consumer.
The main aim is to earn profits. The main aim is to satisfy consumers.
Selling starts after the production of
Marketing starts before production
goods. and continues even after the sale of
goods.
It persuades a consumer according to It changes the product according to
the product. the needs of consumers.
It is a narrow concept. It is a broad concept.
Functions of marketing
The important functions of marketing are:
1. Collecting market information
2. Marketing planning
3. Standardisation and grading
4. Packaging and grading
5. Branding
6. Customer support service
7. Pricing
8. Promotion
9. Channels of distribution
10. Transportation
11. Warehousing
1) Collecting market information: The very first function of marketing is to gather and
analyse the information from the market to know about the taste and preference of the
consumers. We can know about the various competitors in the market.
2) Marketing planning: The next function of marketing is to prepare plans for production,
distribution, promotion and pricing of the products.
3) Standardisation & grading: Standardisation refers to producing goods according to
certain quality or standard. Grading means to classify the products into groups according
to their quality.
SANTOSH SHARMA 3
, 4) Packaging & labelling: In order to make the products look attractive, proper packaging
and labelling is done. Different products need different types of packing. Packaging also
protects the product from damages and looks attractive.
5) Branding: It refers to naming a particular product. Branding helps to distinguish the
product from other products and thus creates a brand image in the minds of customers.
All this helps to promote sales.
6) Customer support services: These services include after sales services, handling
complaints, maintenance services and technical services. These services help to boost
consumers satisfaction and trust.
7) Pricing: This is one of the most complex functions of marketing management. before
pricing many factors are considered like cost of production, competitors prices,
government taxes, etc.
8) Promotion: It refers to informing the consumers about the quality, price, size and other
features of the product through advertisements, sales promotion schemes, etc. It should
be such that consumers are attracted to buy the product.
9) Channels of distribution: The next step is to decide how to distribute the product. There
are various channels of distribution like selling through wholesalers or traders, selling
directly to consumers, selling through retailers, etc.
10) Transportation: The next important function is to choose the mode of transport
because consumers are spread all over the world. Before that some factors like type of
product, cost, location of market, etc should be considered.
11) Warehousing: To ensure smooth production and distribution of product,
warehousing is needed. Generally, there is a gap between production and selling of goods.
Therefore, we have to store them properly to avoid spoilages and can be supplied as
demanded.
Unit-2: Marketing Environment
Different types of Marketing Environment
Every business firm is affected by micro and macro environment. No business organization can
exist without these factors.
Micro-environment
This type of environment directly affects the working of a business organization. It includes the
following factors or components:
1. Customers
2. Suppliers
3. Resellers
4. Competitors
SANTOSH SHARMA 4
Important Questions and Answers
Unit-1: Introduction to Marketing
What is Marketing Management?
• Marketing management refers to the functions of planning, organising, directing and
controlling which helps in the movement of goods and services from producers to
consumers.
• It is not only concerned with creating demand but also to maintain it. The aim is to get,
keep and grow the customers.
• Marketing Is the performance of business activities that directs the flow of goods and
services from producer to consumer.
• Marketing starts much before the production of goods and continues even after the sale
of goods.
• It is a process of ascertaining the needs of consumers and converting them into products
and services and finally moving the product to the final consumer to satisfy the needs and
bonds.
Concepts or Philosophies of marketing management
There are basically 5 different marketing concepts such as
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal concept
1. Production concept According to this concept, a business organization should
manufacture only those goods and services which are demanded by the consumers. The
managers should try to produce the goods from available resources at lowest cost.
2. Product concept according to this concept, the consumers gave importance to the
attributes of a product like quality, performance and other features of the product.
Therefore, the managers should focus on developing better quality of goods and services
and improving the existing product.
SANTOSH SHARMA 1
, 3. Selling concept an organization should undertake selling and promotion activities to
increase the sale of the product. consumers need to be guided for buying. Therefore, a
business organization should focus on advertisements and sales promotion activities.
4. Marketing concept According to this concept an organization should try to understand
the needs and wants of the consumers. Marketing concept is one of the widest concepts.
The main aim of marketing concept is to satisfy the consumers ultimately. Therefore, this
concept starts much before the production and continues even after the sale of the
product.
5. Societal concept a business organization must be socially responsible. it should take care
of the society because it is the society which provides factors of production to the firm
and consumes the products and services produced by it.
Processes of Marketing Management.
The marketing process consists of 4 steps:
1. Analysing the marketing environment
2. Selecting target markets
3. Developing the marketing mix
4. Implementing and controlling
1. Analysing the marketing environment this process aims at identifying the needs and
wants of the consumers. It is very important for a business organization to analyse the
marketing opportunities and potential.
2. Selecting target markets in this stage, a business organization divides the market into
various segments. Then each segment is evaluated to find out the specific needs of the
consumers.
3. Developing the marketing mix the 3rd step in the marketing process is to decide about
marketing mix. there are four basic elements of marketing mix such as product, price,
promotion and physical distribution. these are also known as 4 piece of marketing mix.
4. Implementing and controlling this is the last stage in marketing management. In this
stage all the plans and strategies framed or implemented or executed to achieve the goals
of marketing management.
SANTOSH SHARMA 2
,Difference between selling and marketing
Selling Marketing
It is a process of transferring the It is a process of creating, maintaining
ownership of goods from seller to and serving the consumers.
consumer.
The main aim is to earn profits. The main aim is to satisfy consumers.
Selling starts after the production of
Marketing starts before production
goods. and continues even after the sale of
goods.
It persuades a consumer according to It changes the product according to
the product. the needs of consumers.
It is a narrow concept. It is a broad concept.
Functions of marketing
The important functions of marketing are:
1. Collecting market information
2. Marketing planning
3. Standardisation and grading
4. Packaging and grading
5. Branding
6. Customer support service
7. Pricing
8. Promotion
9. Channels of distribution
10. Transportation
11. Warehousing
1) Collecting market information: The very first function of marketing is to gather and
analyse the information from the market to know about the taste and preference of the
consumers. We can know about the various competitors in the market.
2) Marketing planning: The next function of marketing is to prepare plans for production,
distribution, promotion and pricing of the products.
3) Standardisation & grading: Standardisation refers to producing goods according to
certain quality or standard. Grading means to classify the products into groups according
to their quality.
SANTOSH SHARMA 3
, 4) Packaging & labelling: In order to make the products look attractive, proper packaging
and labelling is done. Different products need different types of packing. Packaging also
protects the product from damages and looks attractive.
5) Branding: It refers to naming a particular product. Branding helps to distinguish the
product from other products and thus creates a brand image in the minds of customers.
All this helps to promote sales.
6) Customer support services: These services include after sales services, handling
complaints, maintenance services and technical services. These services help to boost
consumers satisfaction and trust.
7) Pricing: This is one of the most complex functions of marketing management. before
pricing many factors are considered like cost of production, competitors prices,
government taxes, etc.
8) Promotion: It refers to informing the consumers about the quality, price, size and other
features of the product through advertisements, sales promotion schemes, etc. It should
be such that consumers are attracted to buy the product.
9) Channels of distribution: The next step is to decide how to distribute the product. There
are various channels of distribution like selling through wholesalers or traders, selling
directly to consumers, selling through retailers, etc.
10) Transportation: The next important function is to choose the mode of transport
because consumers are spread all over the world. Before that some factors like type of
product, cost, location of market, etc should be considered.
11) Warehousing: To ensure smooth production and distribution of product,
warehousing is needed. Generally, there is a gap between production and selling of goods.
Therefore, we have to store them properly to avoid spoilages and can be supplied as
demanded.
Unit-2: Marketing Environment
Different types of Marketing Environment
Every business firm is affected by micro and macro environment. No business organization can
exist without these factors.
Micro-environment
This type of environment directly affects the working of a business organization. It includes the
following factors or components:
1. Customers
2. Suppliers
3. Resellers
4. Competitors
SANTOSH SHARMA 4
