CHAPTER-1
AN INTRODUCTION TO MARKETING
,MEANING AND DEFINITION
Marketing is a form of communication between a business house and its customers with the goal
of selling its products or services to them. Goods are not complete products until they are in the hands of
customers. Marketing is the management process through which goods and services move from concept
to customer. Marketing has less to do with getting customers to pay for a product than it does with
developing a demand for needs.
According to the American Marketing Association (AMA) Board of Directors, 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.
Dr. Philip Kotler
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
Thus, marketing refers to all the activities involved in the creation of place, time, possession and
awareness utilities and beyond.
MARKETING CONCEPTS- TRADITIONAL AND MODERN
Concept is a philosophy, attitude, a line of thinking, an idea or notion to relating any aspects of divine
and human creations. The philosophy of an organization in the dynamic creation of marketing is
referred to as a marketing concept. Thus, marketing concept is a way of life in which the resources of an
organization are mobilized to create, stimulate and satisfy the consumer at a profit.
TRADITIONAL/ CLASSICAL CONCEPT
According to this concept, marketing consists of those activities which are concerned with the transfer of
ownership of goods from producers to consumers. Here, the role of physical distribution and marketing
channels is over emphasized. It refers to marketing as the process by
, which goods are made available to ultimate consumers from their place of origin. The emphasis of
marketing is on sale of goods and services. Consumer satisfaction is overlooked.
MODERN CONCEPT
According to this concept, marketing is concerned with the creation of consumers. According to the
modern thinker Peter Drucker, Marketing is so basic that it cannot be considered as a separate function. It
is the whole business seen from the point of success is not determined by the
producer but the customer.
Thus, the modern concept lays greater emphasis on customers and considers them as kings. Marketing is
not merely a physical process but is something beyond that. It is the managerial philosophy which
centres around the wants and desires of customers.
TRADITIONAL CONCEPT vs. MODERN CONCEPT
1. Traditional marketing starts from production and ends with sale but modern marketing
includes planning, product, price, promotion, place, people, after sale service etc.
2. Traditional marketing concentrate on favorable products, but modern marketing concentrates
on customer needs, wants and satisfaction.
3. In traditional marketing, only those products are sold which the producer produces. No focus is
laid on consumer preference. On the other hand, modern marketing indulge in production only
after analyzing consumer demands.
4. Traditional marketing is product and production oriented while modern marketing is consumer
oriented.
5. The target of traditional marketers was to earn maximum profit by maximizing sales. But, the
main motive of modern marketers is to earn profits through satisfaction of consumer needs.
6.
the principle followed by modern market is i.e., the vendor
SELLING vs. MARKETING
It is a common error committed when people say they are going for marketing when they actually go to
the market to purchase goods/ services. Well, it is simply buying from
marketing.
AN INTRODUCTION TO MARKETING
,MEANING AND DEFINITION
Marketing is a form of communication between a business house and its customers with the goal
of selling its products or services to them. Goods are not complete products until they are in the hands of
customers. Marketing is the management process through which goods and services move from concept
to customer. Marketing has less to do with getting customers to pay for a product than it does with
developing a demand for needs.
According to the American Marketing Association (AMA) Board of Directors, 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.
Dr. Philip Kotler
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
Thus, marketing refers to all the activities involved in the creation of place, time, possession and
awareness utilities and beyond.
MARKETING CONCEPTS- TRADITIONAL AND MODERN
Concept is a philosophy, attitude, a line of thinking, an idea or notion to relating any aspects of divine
and human creations. The philosophy of an organization in the dynamic creation of marketing is
referred to as a marketing concept. Thus, marketing concept is a way of life in which the resources of an
organization are mobilized to create, stimulate and satisfy the consumer at a profit.
TRADITIONAL/ CLASSICAL CONCEPT
According to this concept, marketing consists of those activities which are concerned with the transfer of
ownership of goods from producers to consumers. Here, the role of physical distribution and marketing
channels is over emphasized. It refers to marketing as the process by
, which goods are made available to ultimate consumers from their place of origin. The emphasis of
marketing is on sale of goods and services. Consumer satisfaction is overlooked.
MODERN CONCEPT
According to this concept, marketing is concerned with the creation of consumers. According to the
modern thinker Peter Drucker, Marketing is so basic that it cannot be considered as a separate function. It
is the whole business seen from the point of success is not determined by the
producer but the customer.
Thus, the modern concept lays greater emphasis on customers and considers them as kings. Marketing is
not merely a physical process but is something beyond that. It is the managerial philosophy which
centres around the wants and desires of customers.
TRADITIONAL CONCEPT vs. MODERN CONCEPT
1. Traditional marketing starts from production and ends with sale but modern marketing
includes planning, product, price, promotion, place, people, after sale service etc.
2. Traditional marketing concentrate on favorable products, but modern marketing concentrates
on customer needs, wants and satisfaction.
3. In traditional marketing, only those products are sold which the producer produces. No focus is
laid on consumer preference. On the other hand, modern marketing indulge in production only
after analyzing consumer demands.
4. Traditional marketing is product and production oriented while modern marketing is consumer
oriented.
5. The target of traditional marketers was to earn maximum profit by maximizing sales. But, the
main motive of modern marketers is to earn profits through satisfaction of consumer needs.
6.
the principle followed by modern market is i.e., the vendor
SELLING vs. MARKETING
It is a common error committed when people say they are going for marketing when they actually go to
the market to purchase goods/ services. Well, it is simply buying from
marketing.
