Download introduction to marketing

Definition of Market
 An actual or nominal place where forces of demand and supply
operate, and where buyers and sellers interact (directly or through
intermediaries) to trade goods, services, or contracts or instruments,
for money or barter.
 Market is the accumulation of buyers and sellers where
competition between buying and selling is established.
Traditionally, we think that market is a place where buying and
selling is occurred. But in economics market is not denoted by
place.
 According to economic theory, market means a commodity
market. As for example- Jute market, gold marker, fish market etc.
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Condition of market
Commodity
2. Buyers and sellers
3. Competition between Buyers and
sellers regarding buying and
selling.
 1.
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Marketing
Definition
 According to Philip Kotler, “marketing is a human
activity directed at satisfying needs and wants through
exchange process.”
 Marketing means working with markets, which in turn
means attempting to actualize potential exchanges for
the satisfying human needs and wants.
 Thus we return to our definition of marketing as
human activity directed at satisfying needs and wants
through exchange processes.
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 Marketing is not just selling. It is about
knowing and understanding your customer.
 Marketing is the management process
through which goods and services move
from concept to the customer. It includes the
coordination of four elements called the 4
P's of marketing:
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 1) Identification, selection and
development of a product,
 (2) Determination of its price,
 (3) Selection of a distribution channel to
reach the customer's place, and
 (4) Development and implementation of a
promotional strategy
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The Marketing Mix
Product
Place
Price
Promotion
Scope of Marketing
 Marketing Research
 Product Planning & Development
 Pricing
 Advertising & Publicity
 Sales Promotion
 Packaging
 Branding & Labeling
 After Sales Service
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Difference between Market and Marketing
Market
Marketing
1. Market is the accumulation of buyers and
sellers with a view to buying and selling.
1. Marketing is the sum of total activities to
reach the products from producer to consumer.
2. Price is determined in the market through
competition between buyers and sellers.
2. Marketing is concerned with changing the
ownership of products.
3. Market deals with buyers and sellers.
3. Marketing deals with the buyers and sellers
concerning with the activities of buying and
selling.
4. Market is a place where determination of
price is occurred.
4. Marketing deals with the way of how a
person can be profited from marketing of
goods.
5. Market is concerned with point of time.
5. Marketing is concerned with period of time.
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Importance of marketing
 There are several important reasons to study
marketing; marketing plays an important role in
society, marketing is important to business,
marketing offers outstanding career opportunities
and marketing affects our life every day.
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 1. Marketing plays an important role in society
The total population of Bangladesh exceeds 16 crore
people. Think about how many transactions are needed
each day to feed, cloth, and shelter a population of this
size. The number is huge and yet it all works quite well,
partly because the well-developed Bangladeshis
economic system efficiently distributes the output of
farms and factories.
Marketing makes food available when we want it, in
desired quantities, at accessible locations and in sanitary
and convenient packages and forms (such as instant and
frozen foods).
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2. Marketing is important to
business
 The fundamental objectives of most business are
survival, profits, and growth. Marketing contributes
directly to achieving these objectives. Marketing
includes the following activities, which are vital to
business organizations: assessing the wants and
satisfactions of present and potential customers,
designing and managing product offerings, determining
prices and pricing policies, developing distribution
strategies, and communicating with present and
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potential customers.
3. Marketing offers outstanding career
opportunities
 Marketing offers great career opportunities in such
areas as professional selling, marketing research,
advertising, retail buying, distribution management,
product management, product development, and
wholesaling. Marketing career opportunities also exist
in a variety of non-business organizations, including
hospitals, museums, universities, the armed forces, and
various government and social service agencies.
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4. Marketing affects our life every day
 Marketing plays a major role in our everyday life. We
participate in the marketing process as a consumer of
goods and services. About every taka we spend pays for
marketing costs, such as marketing research, product
development, packaging, transportation, storage,
advertising, and sales expenses. By developing a better
understanding of marketing, we will become a betterinformed consumer. We will better understand the
buying process and be able to negotiate more effectively
with sellers.
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Five Marketing Philosophies
 The five marketing philosophies help determine the
management of marketing. Companies approach and
conduct business in different ways in order to achieve
their organizational goals. The five competing concepts
by which companies are guided in their marketing
efforts are:
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 The Production Concept
 Kotler (1996) has defined the production concept as a
philosophy that holds consumers who will favor those
products that are available and highly affordable and
therefore management should concentrate on improving
production and distribution efficiency.
 The Product Concept
 The product concept as defined by Kotler (1996) holds that
the consumer will favor those products that offer the most
quality, performance and features and therefore the
organization should devote its strategy to making continuous
product improvement.
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 The Selling Concept
 Kotler (1996) has defined the selling concept, which
says that the consumer will not buy enough of the
organization’s product unless the organization
undertakes substantial selling and promotion efforts.
 The Marketing Concept (1950’s – 1960’s)
 The marketing concept as defined by Kotler (1996) is
that the key to achieving organizational goal is for the
organization to determine the needs and wants of the
target market and to adapt itself to delivering the
desired satisfaction more effectively than its
competitors. The product concept and the selling
concept have given way in many successful firms to the
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 The Societal
present)
Marketing
Concept
(1960’s
 Kotler (1996) has defined that the societal
marketing concept holds that the organization’s task
is to determine the needs, wants, and interest of
target markets and to deliver the desired satisfaction
more effectively and efficiently than competitors in a
way that preserves or enhances the consumer’s and
society’s well-being.
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Marketing utility
 Utility will refers to the value of marketing which
adds to goods and services. The marketing function will
allow to create utility. There are five types of utilities,
namely;
 Form utility
 To change the raw materials to a finished products.
Example, palm oil bunch to edible cooking oil.
 Time utility
 Making the products
convenient hours.
is available during the
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 Place utility
 Making the products and services available in
convenience location and place.
 Possession utility
 Making the exchange of goods and services between
the buyers and sellers.
 Information utility
 To inform the buyers that the products exist, how to
use it, the price and other related information of the
products availability.
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