Download MARKETING

Chapter-1
Marketing
“Marketing is a social and managerial process by which individual and groups obtain what
they need and want through creating and exchanging products and values with others”
NEEDS, WANTS
&
DEMANDS
PRODUCTS
EXCHANGE,
TRANSACTION &
RELATIONSHIP
MARKETS
UTILITY,
VALUE &
SERVICES
MARKETING
&
MARKETERS
Fig: Key elements of Marketing
NEEDS,WANTS & DEMANDS
A human need is a state of deprivation of some basic satisfaction.( food, cloth & shelter).Wants are
desires for specific satisfiers of these deeper needs. Demands are wants for specific products that are
backed up by an ability and willingness to buy them.
Marketers don’t create the need for social status but try to point out how a particular good would
satisfy that need. Marketers try to influence demand by making the product attractive, affordable and
easily available.
1
Author- Mr. Sushanta Tripathy
Chapter-1
Marketing
PRODUCTS
Product is “Anything that can be offered to someone to satisfy a need or want”. It may be physical
object (Television, Car, Soft drinks,etc) or intangible one ( places,ideas,activities,etc). Therefore
product is a combination of offers, satisfiers and resources.
UTILITY, VALUE AND SATISFACTION
Utility is “The quality of being practical use”. Value means a numerical quantity measured or the
quality (positive or negative) that renders something desirable. Satisfaction is “State of being
gratified”
In marketing there are number of product options for a human needs. So the guiding concept is
known as utility , utility per cost is value and then sum of utility with positive value is termed as
satisfaction.
EXCHANGE, TRANSACTION AND RELATIONSHIP
Market does not base on needs and wants. It emerges when people decide to satisfy needs and wants
through exchange. Exchange may be in four ways, i.e. self production, coercion, begging and
exchange.
Exchange is the act of obtaining a desired product from someone by offering something in return.
Transaction is the basic unit of exchange. It consist of a trade value. Different transactions are barter
transaction, commercial transaction, employment transaction, civic transaction, religious transaction,
charity transaction, etc. Relationship means a state of connectedness or relatedness between people.
Transaction is a part of relationship marketing. Because it is very much essential to keep relationship
with customers, distributors, dealers and suppliers.
MARKETS
“A market consists of all the potential customers sharing a particular need or want who might be
willing and able to engage in exchange to satisfy that need or want”. Industry is a group of sellers
and Market is a group of buyers.
2
Author- Mr. Sushanta Tripathy
Chapter-1
Marketing
Communication
Goods/ Services
Industry
(Collection of
Sellers)
Market
(Collection
of buyers)
Money
Information
Market is also divided according to customers. Such as need market, product market, demographic
market, geographic market, industrial market, etc.
Marketing and Marketers
Marketing is the human activity taking place in relationship to market. Marketer is someone seeking
a resource from someone else and willing to offer something of value in exchange. So marketer may
be a seller or buyer.
Therefore marketing may be defined as “A social and managerial process by which individual and
groups obtain what they need and want through creating and exchanging products and values with
others”
3
Author- Mr. Sushanta Tripathy
Chapter-1
Marketing
SELLING CONCEPT
The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the
organization's products, the organization, must therefore undertake an aggressive selling and
promotion effort.
The concept assumes that consumers typically show buying inertia or resistance and have to
be coaxed into buying more. The selling concept is practiced most aggressively with
"unsought goods," those goods that buyers normally do not think of buying, such as
insurance, encyclopedias, and funeral plots, These industries have perfected various sales
techniques to locate prospects and hard-sell them on the benefits of their product. Hard
selling also occurs with sought goods, such as automobiles.
From the moment the customer walks into the showroom, If the customer likes the floor
model, salesman may be told that there is another customer about to buy it and that he should
decide on the spot. If the customer balks at the price, the salesman offers to talk to the
manager to get a special concession. The customer waits ten minutes and the salesman
returns with "the boss doesn't like it but I got him to agree." The aim is to "work up the
customer" to buy on the spot. The selling concept is also practiced in the nonprofit area, by
fund-raisers, college admissions offices, and political parties. A political party will
vigorously sell its candidate to the voters as being a fantastic person for the job. The
candidate stomps through voting precincts from early morning to late evening shaking hands,
kissing babies, meeting donors, making breezy speeches. Countless dollars are spent on radio
and television advertising, posters, and mailings. After the election, the new official
continues to take a sales-oriented view toward the citizens. There is little research into what
the public wants and a lot of selling to get the public to accept policies that the politician or
party wants. Most firms practice the selling concept when they have overcapacity. Their aim
is to sell what they make rather than make what they can sell.
MARKETING CONCEPT
The marketing concept holds that the key to achieving organizational goals consists in
determining the needs and wants of target markets and delivering the desired satisfactions
more effectively and efficiently than competitors.
It can be expressed in many colorful ways.
4
Author- Mr. Sushanta Tripathy
Chapter-1
Marketing

‘Find wants and fill them’

‘Make what will sell instead of trying to sell what you can make’

'Love the customer and not the product'

'Have it your way’ (Burger King)

'You're the boss’ (United Airlines)
Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is
preoccupied with the seller's need to convert his product into cash; marketing with the idea
of satisfying the needs of the customer by means of the product. The marketing concept rests
on four main pillars, namely, a market focus, customer orientation, coordinated marketing,
and profitability.
5
Author- Mr. Sushanta Tripathy