Prepared By,

Sagar M Gadekar
Paul Mauser, Marketing is delivery of a standard of
living to society.
Philip Kotler, Marketing is the beginning and end of all
the business activity.
The American Marketing Association, Marketing
includes all activities which are connected with the
transfer of ownership and possession of goods and
activities.
The Chartered Institute of Marketing (CIM) says:
The management process responsible for identifying ,
anticipating and satisfying customer requirements
profitability.
Dennis Adcock defines marketing as
The right product, in the right place, at the right time, at
the right price.


W.J. Stanton, Marketing is total system of
interacting business activities designed to plan, price,
promote and distribute want satisfying products and
services to the present and potential customers.
According to William Stanton
Marketing and System : A system of business
activities.
Designed to : Plan, Price, Promote and distribute.
Object of Action : Want satisfying goods and
services.
Beneficiaries of action : The Market present and
potential house hold consumers or industrial users.
This definition treats marketing as one of the most powerful functions.
It consider the necessity of consumer orientation. Customer wants
must be recognized and satisfied effectively.
This definition suggests that marketing is business dynamic process. It
clearly points out that marketing is not any activity, but it is the result
of interaction of many activities.
The satisfaction of consumer wants is most important. The marketing
is incomplete without the satisfaction of consumer wants completely.
Marketing activities should be carried out with maximum
effectiveness and at the minimum cost. Marketing must maximize
profitability sales over a period.
Thus, it can be stated that marketing is the process by which the
products are made available to ultimate consumer from the place of
manufacturer. Marketing consists of all those activities which are
meant to ensure the flow of goods and services from the producer to
the consumer.
The main focal point in marketing is customer
needs.
In order to maintain long-term relations with
customers, future needs have to be identified
and predicted.
Marketing is not the duty of marketing
department only but the everyone in the
organization.

What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
Marketing people are involved in marketing the
following 10 types of entities as explained below :
1.Goods Physical products, consumer products,
consumer durables, etc.
2.Services Transport, repair & maintenance, legal,
financial, consultancy, hotel, specialized skills,
professionals, etc.
3.Events Trade shows, sports, world cups, vintage
car rally, fashion shows, artistic performance, annual
functions, event management, etc.
4.Experiences Theatres, opera, Disney-world,
trekking, mountaineering, ocean cruise, cinema,
music concerts, etc.

5.Persons Celebrity marketing, film stars, politicians,
artists, performers, advertisers, and now also CEOs of
companies.
6.Places Cities, states, countries for tourism, leisure
& place for industrialization, real estate agents &
business, etc.
7.Properties Ownership of tangible properties like
real estate, house, apartment, farm house, precious
metals and intangible properties like financial
portfolio of various securities, stocks, bonds.

8.Organizations Building up identity, image,
reputation, and brand value in the minds of
consumers.
9.Information It can be produced, packaged &
marketed as a product text books, encyclopedias,
magazines & journals on literature, science,
technology, medicine info, available thru internet
10.Ideas The concept regarding a utility, business
opportunity, advertising / marketing ideas, scientific
& technical, social, financial, psychological etc.

Market size and share - to increase market share or sales.
Product range and innovation - to introduce new products to the
range.
Developing brand loyalty - to develop ways of gaining customer
loyalty and repeat purchases.
Aiming to survive to build a customer base that is big enough to
make the business secure.
Widening product appeal - to move into new sections (segments) of
existing markets or enter new markets.
Corporate image - to use marketing to convey a certain corporate
image. For example, the firm may stress the ethical nature of the
business or a degree of environmental responsibility.
Diversification - developing new products in new markets
Position in market - to focus on a particular section (segment) of the
market and note its characteristics.
The main features of modern marketing are as follows:
CONSUMER ORIENTED- A business exists to satisfy
human needs. Therefore, business must first find out
what the consumers want and then produce goods or
services according to the needs of the consumers. Only
such products should be produced which best satisfy
consumer needs and at a profit to them.
MARKETING IS A SYSTEM- Marketing is a system
consisting of several inter-depend and interacting
sub-system. It obtains the inputs from
the environment ,transform these inputs and
supplies the output.


GOAL ORIENTED- Like any other business activity, marketing
seeks to achieve some useful result. The ultimate goal of the
marketing is to generate profits through the satisfaction of
human needs.
EXCHANGE- All the marketing activities revolve around
exchange process. Exchange implies
transaction between buyer and seller. There is also exchange
of information between buyers and sellers.
MARKETING PRECEDES AND SUCCEEDS PRODUCTION- Today
all the organizations accept that the marketing activities must
start far ahead of production. It is not enough if the activities
begun after the product is ready. Thus , marketing ,through its
studies and research , will determine for the engineer, designer
and the manufacturers man ,what the consumer wants in a
given product, what price he is willing to pay and where and
when it will be wanted.



MARKETING IS PROCESS-
It comprises a series of function which are
inter-related. It is a dynamic process because
it keeps on adjusting to the changes in the
sense that it is concerned with human needs.

MARKETING IS SCIENCE AS WELL AS ART-

Marketing is inter-disciplinary in nature ,orientation and design. It has
borrowed heavily from economics, law, sociology, etc. Marketing is an
art in the sense that a considerable body of rules or principles on buying
, selling, financing, marketing information, etc.
Art is the practical application of a set of rules or principles into
practices. On the other hand science is a system of facts and principles
concerning any subject. Marketing is an art in the sense that a
considerable body of rules or principles on buying, selling, financing ,
standardization, market information etc.
Later development changed the art into science (behavior of the
individuals can be studied at the market place) Human behavior can not
be measure. Since its rule or principles cannot b accurate as those of
physics or chemistry, it was contended that marketing is purely an art.
So Marketing is a art based science.


Selling
The term Selling refers to an activity with sale in any
business enterprises. It is concerned with the transfer of the
goods and properties and of associated services from seller
to buyer against money consideration.
The primary object of a business concern is to earn profit
and this profit objective is realized through the activity of
selling.
This term encompasses all routine function and efforts
necessary for the transfer of finish goods from the
manufacturer to the buyers, without being concerned with
the need and preference of the consumer.
Selling is the act of persuading or influencing a customer to
buy (actually exchange something of value for) a product or
service.
Production Distribution Sales Buyers Through
Transfer of
Ownership and
Transfer of product
And services
Marketing
The term marketing is wider in its concept and
application than selling. Marketing refers to functions
and activities involved in the production and
distribution of those goods and services what are
needed and desired by the customer or consumer.
It can be stated that the concept of marketing
encompasses all functions and activities that ends
with the satisfaction of consumers.
Marketing starts with the assessments of the
consumer needs for product or services much before
the production of generation of such goods and ends
with satisfaction even after sales. Its, a concept hence
includes the planning, predicting, distributing, selling,
and serving the customer.
Thus the global concept of marketing function
of the marketing function involves decision
making as well as actuating and directing the
criteria like changes in the range of product,
quality, shape, size, design, color,
characteristics, price, channel of distribution,
after sales service etc.
Customer
Surveys
Production
Product
and
Market
Research
and
Analysis
Promotion Customer
Satisfaction
Sales
S
N
O
Selling Marketing
1 Focus is on the product. Focus is on customer needs and wants.
2 Starts from factory gates, that is
right after manufacturing.
Starts from understanding the customer
expectation.
3 Stresses upon the need of seller. Stresses upon the needs of the buyer.
4 Producing and selling the product is
objective.
Customer satisfaction through mutual
benefit is objective.
5 Selling is the one time process. Marketing is continuous process.
6 Comparatively sales planning is short
term.
Marketing planning is long term.
7 Sales plans are based on the
marketing plan.
Marketing plan acts as a basis for
designing sales plan.
8 Cost of production determines the
price.
Other factors like consumer ability to
purchase, competition etc. decide the
price.
The Marketing Concepts/Evolution of
marketing in India
The marketing concept is the philosophy that urges
organization to focus on their customers needs.
Analyzing their needs and making such decisions that
satisfy those needs in a better way than competitors.

To have a better understanding of marketing
concept, its worthwhile to review the other
philosophies that once were dominated and are still
being practiced by some of the firms.


Self Sufficient Stage
Exchange Concept
The Production Concept (Industrial
revolution 1920s)
The Sales Concept (1930s)
Product Concept
The Marketing Concept
Holistic Marketing Concept


There was economic self sufficiency at the
early stage of human history. Every family was
self sufficient unit to satisfy their own needs
and there was no exchange, therefore, the
concept of marketing was not at all at time,
but there was no need of marketing effort if
the product is good and reasonable price.
This is the primitive & fundamental concept of
marketing. Exchange of goods and services
between two agencies called buyer and seller,
or exchange of goods and services for money
or barter system.
This involves the process of obtaining a desired
product or service from someone else by
offering something (money or any other item)
in return.
This concept is one of the oldest, and suggests that the
consumers will like to buy the products which are
available easily, cheaply & widely. So the marketers must
have a mass production facility (efficient production) with
low price (cost efficiency) and make it available very near
to the customers (mass distribution). This concept is
normally adopted when the Company wants to expand.
The basic idea behind production concept was: The firms
will produce what they can produce efficiently. This will
ensure enough supply of the products at low-cost and
demand will be created by itself.
Production concept prevailed into late 1920s because
most of the products being produced were the basic
necessities and there was a huge unfulfilled demand for
them.

The Sales Concept (1930s)
This concept involves aggressive selling and promotional effort.
The purpose of marketing is to sell more stuff to more people
more often for more money in order to make more profit. This
kind of marketing is practiced for goods & services which buyers
normally dont like to buy, like insurance, dictionaries,
encyclopedia, etc.
The aim of the marketers is to sell what they produce, rather
than make what the market wants.
By early 1930s, competition had increased in production and on
the other hand there was less unfulfilled demand. So, all the
firms turned towards sales concept.
Now the companies were not only producing the product but
also sell it to customers through personal selling and
advertisement.
There was no concept of need identification, firms were just
interested in beating competition by selling more but neglecting
customers satisfaction. We can call it hard selling.

This is the next step of evolution of marketing
concepts. It depicts that customers will go for
those products which offer quality, utility,
features, performance, value, benefits, etc.
So the marketers must improve the products
in an innovative way & continuously. This is
more often accompanied by a suitable pricing,
distribution, promotion (all the 4Ps of
marketing) programme.
This concept was evolved in the 1950s, and for the first
time the attention was shifted to Customers. Instead of
concentrating on the Products / Production / Selling, the
business became "Customer Oriented".
The "Make & Sell" philosophy gave way to the "Sense &
Respond" philosophy. Instead of finding the right
customer for the product, the marketer now has to find
the right product for the customer.
The perceptive contrast between the selling and
marketing concepts selling focuses on the needs of the
seller, marketing on the needs of the buyer. This concept
holds the secret of the company being more effective than
its competitors in creating, delivering & communicating
superior value to the targeted customers.

After World War II, there was a variety of products available in the market
and customers having discretionary income could make choices and
purchase what really fulfill their needs. In that situation, firms were forced
to think about what their customers need , when they need it and how to
keep them satisfied which is the Marketing Concept.
The main focus of all the firms turned from hard selling towards
Identification of customer needs, making decision to fulfill those need and
maintaining long-term relation with customers by satisfying their changing
needs.
The Marketing concept resulted in a separate marketing department in
organization and today we can see many organization have structured
themselves as marketing organization where every employee is
contributing towards customer satisfaction whether or not hes a
marketing person.
So, The marketing concept totally relies upon marketing research that
helps in identification of segments, their sizes, needs, target market and
then by using the right Marketing Mix, marketing teams makes such
decisions that results in customers satisfaction.
In the new marketing environment, companies wonder how to
operate & compete. Marketers in the current age are increasingly
recognizing the need to have a more complete & cohesive approach
that goes beyond traditional application of marketing concepts.
This concept is based on the development, design and
implementation of marketing programs, processes and activities that
recognize their breadth and inter-dependencies.
Holistic Marketing recognizes that everything matters with
marketing - and that a broad integrated perspective is often
necessary.
The important components are :
a. Integrated Marketing,
b. Internal Marketing,
c. Relationship Marketing,
d. Social Responsibility Marketing.

Need:
State of felt deprivation including physical, social, and individual
needs. Need are not created by marketer, but they are inner
feeling derived from the soul of the individual. Need is a state of
felt deprivation of some basic satisfaction. Need is inseparable
part of inner feeling.
Physical needs: Food, clothing, shelter, safety
Social needs: Belonging, affection
Individual needs: Learning, knowledge, self-expression
Want:
Form that a human need takes, as shaped by culture and
individual personality. Want are desires for specific
satisfier of the deeper needs. Wants, thus emerges from
needs. People needs are few but their wants are
unlimited.



Want:
Wants are a step ahead of needs and are largely
dependent on the needs of humans themselves.
For example, you need to take a bath. But take baths
with the best soaps. Thus Wants are not mandatory part
of life. You DONT need a good smelling soap. But you
will definitely use it because it is your want. In the above
image, the baby needs milk but it WANTS candy


Needs & wants are fulfilled through a Marketing
Offering:
Products:
Persons, places, organizations, information, ideas.
Services:
Activity or benefit offered for sale that is
essentially intangible and does not result in
ownership.
Experiences:
Consumers live the offering.

Demand
Demand are those wants for specific products that are
backed by ability and willingness to buy them. Wants are
converted to demand when they are supported by
purchasing power.
Wants + Buying Power = Demand
You might want a BMW or a Mercedes for a car. You might
want to go for a cruise. But can you actually buy a BMW or
go on a cruise? You can provided you have the ability to buy
a BMW or go on a cruise. Thus a step ahead of wants is
demands. When an individual wants something which is
premium, but he also has the ability to buy it, then these
wants are converted to demands. The basic difference
between wants and demands is desire. A customer may
desire something but he may not be able to fulfill his desire.


Products-
Products are any thing that can be offered to satisfy a need or
want. A product is a set of tangible and intangible attribute,
including packaging, color, price, manufacturer and retailers
prestige and their services.
Value of Exchange-
Every product is valued in terms of its customer value. In
modern era of marketing, cost is not only consideration in
selecting and purchasing the product, but customer value and
want satisfaction are more important.
Exchange is the act of obtaining a desired product from
someone by offering something in return. It is social concept
of marketing. Successful complexion of the exchange is in
return. It is the social concept of marketing.
Successful complexion of the exchange is called transaction.
Transaction-
There is two type of transaction,
1. Money Transaction
2. Barter Transaction.
Monetary transaction involves exchange of goods and service
for cash or credit, however, in case of barter transaction,
goods and services are offered in lieu of products or services.
Market-
Market is the place where the buyer and seller involved in the
exchange of process. It is a physical place for the exchange of
goods and services.
The size of market depends upon the number of persons
having unsatisfied needs and are potentially capable of doing
the exchange.

11-37
Product: bundle of physical, service, and
symbolic attributes designed to enhance
buyers want satisfaction
It is intangible.
It does not result in ownership.
It may or may not be attached with a physical
product
Physical goods Services
Tangible Intangible
Production and distribution are
separated from consumption
Production, distribution and
consumption are simultaneous
processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-seller
interaction
Customers do not participate in the
production process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership
Figure shows the relationship between the industry and the
market. Seller and buyers are connected by four flows. The
seller send goods and services and communications such
as ads and mail to the market; in return they receive money
and information such as customer attitudes and sales data.
The inner loop shows an exchange of money for goods and
service, the outer loop shows an exchange of information.
Five basic markets and their connecting flows are shown in the figure.
Manufacturing go to resource markets (raw material market, money market),
buy resources and turn them into goods and services, and then sell finished
products to intermediaries, who sell them to consumers. Consumers sell
their labors and receive money with which they pay a goods and services.
The government collect tax and revenue to buy the goods from resource,
manufacturer, and intermediary markets and use this goods and services to
provide public services. Each nations economy and the global economy,
consist of complex interacting sets of market linked through exchange
process.
11-42
Goods-services continuum: device that
helps marketers to visualize the differences
and similarities between goods and services
The goods and services continuum enables marketers to see
the relative goods/services composition of total products. A
product's position on the continuum, in turn, enables
marketers to spot opportunities. At the pure goods end of the
continuum, goods that have no related services are
positioned. At the pure services end are services that are not
associated with physical products. Products that are a
combination of goods and services fall between the two ends.
For example, goods such as furnaces, which require
accompanying services such as delivery and installation, are
situated toward the pure goods end. Products that involve
the sale of both goods and services, such as auto repair, are
near the center. And products that are primarily services but
rely on physical equipment, such as taxis, are located toward
the pure services end.

The second approach to categorizing products is to
classify them on the basis of their uses. This organization
facilitates the identification of prospective users and the
design of strategies to reach them.
The major distinction in this system is between
consumer and industrial products. Consumer goods and
services are those that are purchased for personal,
family, or household use. Industrial goods and services
are products that companies buy to make the products
they sell
How to Design
a Service, G.L.
Shostack,
European
Journal of
Marketing, 1982,
Vol. 16, No. 1,
pp. 32-36



Service-
Dominant
Entities
Goods-
Dominant
Entities
SALT
NECKTIE
HOUSE
AUTO
TAILORED SUIT
FAST FOOD
TELEVISION
ADVERTISING AGENCY
THEATRE
NURSING
TEACHING
The dichotomy between physical goods and intangible services
should not be given too much credence; these are not discrete
categories. Most business theorists see a continuum with pure
service on one terminal point and pure commodity good on the other
terminal point. Most products fall between these two extremes. For
example, a restaurant provides a physical good (prepared food), but
also provides services in the form of ambiance, the setting and
clearing of the table, etc. And although some utilities actually deliver
physical goods & services; like water utilities which actually deliver
water utilities are usually treated as services.
In business, people sometimes talk about the marketing of products
and services. This is clearly tautological - services are products.
Marketers must draw on the same set of principles and skills to
market all products, whether they are apples, oranges or haircuts.
Like economists, marketers too view goods and services as two ends
of a continuum.

Traditional Concept of
Marketing
Modern Concept of Marketing
Orient
ation
Old traditional concept of
marketing was mainly
concerned with the physical
movement of goods
Modern concept of marketing is customer
oriented. Its beginning is the identification of
customer needs and its end is involved in the
satisfaction of these needs.
Aim Traditional concept of
marketing was aimed at
fulfill the want of small
fraction of the total
population since population
was less.
Modern marketing concept emphasizes that
the production activities should be directed by
the requirement of the people of the country.
The environmental factors responsible for the
adoption of the modern marketing concept as
follows, Population growth, Growth in
Dispensable Income, Growing Number of House
Holds, New attitude towards life, Growth of
Mass communication Media, Development of
Marketing Channel.
Metho
ds
Traditional Marketing was
easy and simple.
Marketing is a complex and complicated area of
management. Dynamic changes likely to take
place in future with the changes in the attitude
and values of society.
Traditional Concept of
Marketing
Modern Concept of Marketing
Marketing
Research
There are no scope for
planned activities and
Marketing Research under
traditional concept of
Marketing.
There is tremendous scope for planned
activities and modern marketing research.
Product
Innovation
and Product
Planning
Under traditional concept of
Marketing there was no
product innovation and
product planning. should be
recognized and emphasized.
Where under modern concept of marketing
product innovation and product planning
should be recognized and emphasized.
Co ordination
of Marketing
Activities
There was no need of
integration and coordination
of various marketing activities
since the activities were
limited.
But under modern concept of marketing
markets are ever growing and rapidly
changing. The society depends more and
more on marketing system. Hence, various
marketing activities are required to be
integrated and well coordinated.
Uncertainty- Consumers frequently do not know what
they want, or they can not articulate their want in words,
that are meaningful to the business firms.
Practicability- Many consumers do not know what they
want until they are presented with reasonably specific
choices. Often, they must see these in the form of
tangible products before they can judge, because they
can not perceived how the attributes of product are
connected with their need until they try it.
Inconsistency- Many consumers are inconsistent in
stating their preference and need. For instance,
consumers want durability.
Limitation of Marketing
1. Marketing is criticized for its high cost:
The Marketing is expensive because the commodity of service made
available to the doors of the consumers by Marketing system.
2. There is dearth in qualified and trained personnel:
It is difficult to get qualified an the trained personnel in marketing field.
The people leaving the organization for getting attractive
remuneration and other benefit are more.
3. Government attitude:
Marketing is still not held on high esteem by the government official.
4. Lack of experienced marketers:
The lack of experienced marketers in developing countries is a
handicap.
5. Inefficient management and operation
In marketing field , in certain units there is inefficient management
and the operation is not on strict commercial principals.
Malpractices and Unethical Behavior
In certain marketing activities, malpractices play a
dominant role. There should be efficient
management and operation on commercial
principles. It is necessary to observe ethical code of
conduct.

The following are the advantage s of marketing
1. Marketing efforts in new product, new packaging idea, new and better
product:
Marketing develops better or upgrade product and provide maximum
satisfaction to customer. Marketing continuously improve new or better
product . For example fuel efficient pollution free motorcycle, car,
readymade garments.
2. Better an effective distribution network:
Marketing technique aims at better and effective distribution network
resulting in improved product availability at reduce cost. It provide
maximum satisfaction to consumers and may result in higher scale an profit
of company. The example of effective distribution network are : Coca cola,
Philips, Dunlop, BPL, MRF Tyres, Pepsi etc.
3. Marketing helps in economic growth of societies by producing acceptable
quantities of goods:
Due to ever increase competition investment in manufacturing unit,
transport, warehousing distribution network, retail outlets all contribute
to the economic growth activities e.g. development of cement , iron and
steel, electronic goods
4. Marketing helps in advertising , sales promotion, activities:
Marketing helps in improve volume of business due to advertising , sales
promotion, direct selling activity etc. It also helps to improve the product and
services quality.
5. Marketing gives to competition:
Due to competition the customer are getting advantage like availability ,
quality of product fair and reasonable price of the product . If there is more
competition the consumer will get more benefit.
6. Marketing help to provide better and more effective packaging of consumer
product:
in modern days, when sophisticated consumers get attracted by light , handy,
well design and convenient packs. For example soaps, food products,
readymade garment etc.
7. Marketing is a source of new idea:
The marketing idea is ever changing as promote by the dynamic variable in the
marketing environment. Marketing is an instrument of measurement that gives
wider horizons of understanding the changing need making marketing
organization effective. Adaptive and innovative approach keeps the marketing
organization alive.
9. Marketing is helpful in decision making:
Marketing is in vital production decision to be taken. It acts like
a stethoscope to understand the pulse of market. Marketing
research is helpful in solving manufactures as well as consumer
problem.
10.Marketing helps in generating gainful employment
opportunities:
Marketing is a complex mechanism which involve number of
function and sub-function warranting the service of highly
specialized and talented people. There is all around requirement
of manpower at manufacturing unit, buying, selling, transport,
warehousing, distribution etc. it is said that nearly 40% of the
population is directly and indirectly engaged in marketing activities
. Thus in a developing country where there is a problems of
poverty and unemployment exist, Marketing activities are very
important in improving employment potential.

1. Product or Commodity Approach-
2. Functional approach
3. Institutional Approach
4. Management Approach
5. Societal Approach
6. Economic Approach
7. Legal Approach
8. System Approach
Product or Commodity Approach-
Under commodity approach a particular product is selected then
and then detailed study is made regarding various sources of its
supply, quality of product, its characteristics, its uses, limit of
market for the product, the intervening middlemen/ agent
engaged in the work of distribution, the various means of
transport which actually carry the goods to the consumer and
after sales services
For eg, if we want study of marketing of wheat or rice or any
other products, then we shall detail study of the sources of
supply of these commodities, their kinds different uses, their
buyers and actual customers, suppliers and various other means
transport used to carry them from the actual place of production
to the market and then how these products actually reach the
hand of users by the effort of retailers. The problem related to
storage classification and gradation.
The commodity can be classified under various
groups such as agricultural, mineral and
industrial products. Marketing problems have to
be studied separately in all respect of each
product for they differ widely in their
characteristics.
Merit of commodity approach is that it gives
into the inherent problem underlying the
marketing of each particular product.
But greater disadvantage of this approach is
that it takes long time to study the process of
marketing.
Under the functional approach, the marketing functions right
from production stage of the good and services up to their
reaching the hand of consumer are studied. These marketing
operation includes purchase, classification, standardization
and gradation, transport, storage advertisement, financing
and risk bearing.
A.W.Shaw holds a credit of designing this approach who
stated the function of middlemen as sharing the risk,
transporting the goods, financing the operation, selling,
assembling, assorting and reshaping.
L D H Weld introduced some notable changes in the concept
by pointing out that the above function are not always
performed by middlemen but also partly by the producers
and partly by consumers.
The functions of various institution engaged in the
task of marketing is studied scientifically. These are
the days of mass production. Consumption is made
by people spread over throughout the word.
Actual marketing is done by specialized institutions.
Their help is vital as the marketing process. Theses
are wholesalers, retailers, advertising agencies,
transport agencies, commercial banks, insurance
companies, ware house marketing, research
institutions etc.
All these institution help in one or the other way to
take the good the hands of actual users i.e the
consumers.
The nature of the product is dominant factor in the
selection of these institutions, for example, for
industrial product direct selling is preferable. For
consumer product like Soap, cloth the help of
wholesalers, retailers is essential for distribution
work.
The main thing about consumer good is that they are
purchased by the consumers generally in small
quantities and not in bulk.
The most important advantage of the institutional
approach is that it provides complete knowledge of
each institution engaged in particular part of
marketing.
Management approach combines certain features
of the other three approaches. The basis of this
approach is that marketing is a purely a
management function. Here the focus of marketing
study is on the decision making process involved in
the performance of marketing function at the level
of firm.
The areas of decision making are the organization,
product, distribution policies and physical
distribution system, pricing, transport, advertising,
sales promotion, and personal selling.
The approach has been originated recently.
Here the entire marketing process is regarded
as a means by which society meets its own
consumption needs.
Here the focus of the study is the interaction
between the various environmental factors
(sociology, cultural, legal, political) and
marketing decision and their impact on the
well being of the society.
This approach is identified with Philip kotler,
Feldman and Gist.
Under this approach marketing is considered
from the economic point of view i.e creation
of value, demand and price. Through these
elements are very important in marketing
mechanism, the narrow approach is incapable
of giving idea of marketing.
This approach is very narrow as it concentrate
only on one aspect i.e the effect of transfer of
title in a legal way. In India this aspect has
particular significance. There are many
enactment passed in India which regulate
control the marketing activities.
Eg sales of goods act, contract act, Common
carries act.
This approach is said to be an advancement of
management or decision making approach. A
system group of interrelated and
interdependent element who work together
in a co ordinate way to achieve the desired
objectives.
For instance, business as a whole is body but
is composed of separate functional areas like
production, marketing, financing and
personnel. These functions can be split down
into subsystem or elements
Customer satisfaction Customer Delight
A customer can be said satisfied when he
knows that he has gained something from
deal.
A customer is delighted when he is happy or
enthusiastic about a particular thing which
may get soon.
When customer is always satisfied with
what he gets, he can be said of the nature,
I like what I Get
When customer is always delighted with
what he may get soon, he can be said of the
nature, I get what I Like.
A customer can also be satisfied if he has a
doubts about something in an object and
when it is cleared.
A customer can also be delighted when he
has no doubt about the deal and is sure that
it will be carried on smoothly.
If the needs of the customer are fulfilled in
the deal. It can be said a case of consumer
satisfaction.
If the deal will be making the customer
more happy with what he/she has , it can
be said a case of consumer delight.
When customer knows that he has not
made a loss in the deal it can be said a case
of consumer satisfaction.
When customer is glad to carry out the deal
it can be said a case of consumer delight.
Complaints and Suggestion System
A customer centered organization makes it easy for the customer
to register complaints. Some customer centers companies like
Procter and Gamble, Whirlpool established hot lines with toll free
number. Companies are also using Website and Email for quick
two way communication.
Customer Satisfaction Survey
Studies shows that although the customers are dissatisfied with
one out of every four purchases, less than 5 percent will
complaints. Most customers buy less or switch the suppliers.
Responsive companies measure customer satisfaction directly by
conducting periodic survey. While collecting customer
satisfaction data, it is also useful to add additional questions to
measure repurchase intention and to measure the like hood or
willingness to recommend the company and brand others.
Ghost Shopping
Companies can be hire people to pose as potential
buyers to report on strong and weak points
experienced in buying the company and competitors
products.
These mystery shoppers can even test how the
company sales personnel handle the various situation.
Managers themselves should leave their offices from
time to time enter company and competitors sales
situation where they are unknown, and experiences
first hand treatment they receive.

Patronage Awards
Organization rewards customers for patronizing the
products i.e purchasing it repeatedly by either giving
discount on future purchase or by crediting points in
their account which could be useful to them in future.
Collaborative marketing
Sometimes, organization offering supplementary
products comes out with joint offers. For instance, a
manufacturer of car may tie up within organization
providing finance. In such a case both of organization
and the customer benefit. The customer benefits as they
get additional value from the brand.
Cross selling
A company having more than one brand in its portfolio
which are supplementary to each other, may comes with
joint offer. Such an offer unable the companies to
increase the sale of both brands.
For example Colgate sells toothpaste and tooth brush.
The company may offer a discount if both products are
purchased simultaneously.
Single Service Window
A company having various outlets may find it difficult to
serve the customers with varieties of products. By
having a single window service i.e a single outlet, it
might be in position to serve the customers better and
thereby delight them.
Proactive Marketing
It involves identifying the customer needs
before they release and offer them the
product accordingly. For example, mobile
phone companies keep on adding additional
features to their phones they are on
continuous research on what are the
customer wants are.

The concept of Marketing Myopia was developed by the
American Professor Theodore Lewitte in the 1960.
Short sighted and inward looking approach to marketing
that focuses on the needs of the firm instead of defining
the firm and its products in terms of the customers need
and wants.
Marketing Myopia is short sighted, narrow mined view of
marketing and its environment, it must be avoided at all
costs. Marketing myopia is inefficient marketing Approach.
Firms that focus on production orientation tend to develop
a narrow view of market which sees consumers as a
homogeneous group that will satisfy with basic function of
product.
However, according to Lewitte in developing
the market based business definition, the
management should avoid too narrow and
too broad definition .
Professor Lewitte opinions that the business
must be viewed as a customer satisfying
process rather than goods producing process.

A marketing strategy that is developed by
thinking about the business as a whole, its
place in the broader economy and society,
and in the lives of its customers. It attempts to
develop and maintain multiple perspectives
on the companys commercial activities.


In the new marketing environment, companies wonder how to
operate & compete. Marketers in the current age are increasingly
recognizing the need to have a more complete & cohesive approach
that goes beyond traditional application of marketing concepts.
This concept is based on the development, design and
implementation of marketing programs, processes and activities that
recognize their breadth and inter-dependencies.
Holistic Marketing recognizes that everything matters with
marketing - and that a broad integrated perspective is often
necessary.
The important components are :
a. Integrated Marketing,
b. Internal Marketing,
c. Relationship Marketing,
d. Social Responsibility Marketing.

Importance of Marketing to Society
Importance of Marketing to Companies
Importance of Marketing to Consumers
Importance of Marketing to Economy

Provides Employement
Raises standard of living
Reduces Cost
Solves social problems
Makes life easier
Helps in Income generation
Helps in Planning & Decision making
Helps in distribution
Helps in exchanging information
Helps adapt to changing environment
Expands global presence
Helps to earn goodwill

Provides quality product
Provides variety of products
Improves knowledge of consumers
Helps in selection
Consumer satisfaction
Saves economy from depression
Increase in National Income
Economic growth
Ploughing back if resources
A simple model of the marketing process:
Understand the marketplace and customer
needs and wants.
Design a customer-driven marketing strategy.
Construct an integrated marketing program
that delivers superior value.
Build profitable relationships and create
customer delight.
Capture value from customers to create
profits and customer quality.