Marketing is defined by the American Marketing Association as 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. The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services.
The Chartered Institute of Marketing defines marketing as "The management process responsible for identifying, anticipating and satisfying customer requirements profitably."
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distributionReturn to investors of the accumulated income of a trust or mutual fund and distribution of capital gains. and selling. However, because marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also infamous for re-inventing itself and its vocabulary according to the times and the culture.
A common set of conditions are present in the marketplace, viz.,
1) Buyers outnumber sellers
2) Any individual buyer is weaker than any individual seller economically, but
3) The total economic power of even a fraction of the buyers is enough to assure the existence of, or to put out of business, most sellers or groups of sellers, and
4) Consequently, the sellers compete to sway the largest number of buyers they can to their, rather than another seller’s (competitor’s) offerings. Finally and intriguingly,
5) The sellers in their attempt to meet competition and attract the largest number of buyers, are influenced as well, regularly modifying their behaviours so they will have more success, with more buyers, over time.
Examples:
Form Utility : Conversion of raw materials and components into finished goods and services example : Biscuit made of several ingradients.
Time Utility : Availability of goods and services when consumers want them example: dial-a-cab service
Place Utility: Availability of goods and services where consumers want them example: home deliveryPresentation of securities with transfer deeds in fulfillment of a transaction. services of Pizza Hut
Ownership Utility : Ability to transfer title to goods or services from marketer to buyer : sales of a motorcycle.
It is different from ABC analysis which is a technique that has been used in business management for a long time is the categorization of large data into groups.
Market comprises not only the actual buyers but also the potential buyers of a product or service. The potential buyers are those people who profess some level of interest in a good / service/ information and who can afford it. For example, a mill produces a cotton cloth. The mill (manufacturer & seller) and all the potential and actual buyers of the cloths will constitute the market.
The presence of sellers and actual & potential buyers of a products or services over the Internet is known as "Online market" or "web market".
In a broadest sense: A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby person’s trade, and goods and services are exchanged, forming part of the economyeconomy. It is an arrangement that allows buyers and sellers to exchange things"
Can Two Persons make a Market?
Two persons can trade. However to create a market it takes at least three persons to have a market, so that there is competition on at least one of its two sides.
The offerings may include physical products, Services, Ideas and information. These offerings have values for their customers.
"Exchange" is central to marketing. Exchange in which two or more parties give something of value to each other to satisfy felt needs is the core of the market place. Exchanges may include tangible goods for money or also intangible services.
Features of Markets:
The economists call this value “utility”. Utility is the want-satisfying power of a good or service. The utility is of four kinds- form utility, time utility, place utility and ownership utility.
Form utility is created when the firm converts raw materials and component inputs into finished goods and services. Any firm’s production function is responsible for creating form utility and marketing provides important inputs that specify consumer preference. Marketing creates the other three utilities, time utility, place utility and ownership utility. Time and place utility occur when consumers find goods and services available when and where they want to purchase them. EBay and other online retailers have a 24X7 format. This format emphasizes the time utility. Cola vending machines at malls and complexes focus on providing place utility for people buying snacks and soft drinks. Similarly, dial a pizza creates place utility. ATMs in banks also create the place utility. The transfer of title to goods or services at the time of purchase creates ownership utility.
Utility is created by marketing. The firms determine what products or services may be of interest to customers. In simple words, the strategy to use in sales, communications and business development is called marketing. Marketing is an integrated process through which a firm creates value for customers and builds strong customer relationships in order to capture value from customers in return.
Just like transaction is central to a market, customer is central to marketing. Marketing involves identifying, retaining and satisfying the customer.
Marketing is not an isolated process. it is an integrated process which involves the planning, execution, pricing, distributionReturn to investors of the accumulated income of a trust or mutual fund and distribution of capital gains. , promotion and after sales service. The American Marketing Association as has defined the marketing as:
"Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives"
The latest definition of MarketingMarketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products ..... by AMA in October 2007 was revised as:
"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."
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably"
The selling starts from the factory in case of tangible goods, while marketing starts in the market place. The focus of selling is "product or service" which exists, while the focus of marketing is "customer needs". The means of selling is a sale and to conclude a sale depends upon the "Persuading art" of the sales person, means of marketing is a complex, integrated and interdependent factors.
The ultimate end of selling is profit while the ultimate end of the marketing is "Customer satisfaction".
A common person, due to continuous exposure to advertising and personal selling links marketing and selling. There are some misconceptions or myths regarding the selling and marketing, biggest of which is "Marketing and selling are synonymous". The other myths are:
1. Marketing job is to create good advertising campaign
2. Marketing means to push the product to customer.
3. Marketing is transaction oriented.
4. Marketing is short term strategy
5. Marketing is an independent function.
6. Marketing is part of selling.
Both marketing and selling promote a product or service but marketing involves selling, promoting, educating and exciting people about a product or service. Marketing builds a brand.
The word "customer" has derived from custom, which means a habit (of going to frequently to a shop). In today's cutthroat competition, "the Customer is a King". Marketing professionals ironically say “Customer is always right".
The biggest challenge is for an organization is - how to create a customer?
Creating a customer means identifying needs in the marketplace, finding out which needs the organization can profitably serve and developing an offering to convert potential buyers into customers. (Guiltinan and Paul)
The marketing professionals are mostly responsible to create customers. The activities, which are necessary to create customers, are as follows:
Marketing has changed over the centuries, decades and years. The production centered system systematically changed into relationship era of today and over the period; the specializations have emerged such as sales versus marketing and advertising versus retailing. The overall evolution of marketing has given rise to the concept of business development. Marketing has taken the modern shape after going through various stages since last the end of 19th century. The Production oriented practice of marketing prior to the twentieth century was conservative and hidebound by rules-of-thumb and lack of information. Science & technology developments and specially the development of information technology have now changed the way people live, the way people do business and the way people sell and purchase. Following is a short summary of the various stages of evolution of marketing.
The following sentences summarize the above evolution of marketing.
1. Production era: ‘Cut costs. Profits will take care of themselves’
2. Product era: ‘A good product will sell itself’
3. Sales era: ‘Selling is laying the bait for the customer’
4. Marketing era: ‘The customer is King!’
5. Relationship marketing era: ‘Relationship with customers determine our firm’s future’
Form utility is created when the firm converts raw materials and component inputs into finished goods and services. Although marketing provides important inputs that specify consumer preference, the organization’s production function is responsible for the actual creation of form utility. Marketing function creates time, place and ownership utilities.
Time and place utility occur when consumers find goods and services available when and where they want to purchase them. Online retailers with 24*7 format emphasize time utility.
Vending machines focus on providing place utility for people buying snacks and soft drinks.
The transfer of title to goods or services at the time of purchase creates ownership utility.
Q 2. If you are a Marketing Manager of a Firm, How you will "Create a Customer"?
‘creating’ a customer means identifying needs in the marketplace, finding out which needs the organization can profitably serve and developing an offering to convert potential buyers into customers. Marketing managers are responsible for most of the activities necessary to create the customers the organization wants, These activities include:
Q 3Recently, Felix Baumgartner jumped from the edge of space, attempting to break a series of records which have stood for more than 50 years. The ...... What is the meaning of " Relationship Marketing" ?
Relationship Marketing focuses on needs/ wants of target markets and delivering superior value. Besides it also means to develop 'Long-term relationships with customers and other partners lead to success
Q 4Recently, which among the following Indian banks has entered into a memorandum of understanding (MoU) with Ecobank Transnational Incorporated (Africa) to serve the growing needs ...... Which are the eras of Evolution of MarketingMarketing has changed over the centuries, decades and years. The production centered system systematically changed into relationship era of today and over the period; the ..... ?
There are five eras in the history of marketing the production era, the product era, the sales era, the marketing era and the relationship marketing era.
Q 5. What was the focus of marketing in production Era?
In the production era, the production orientation dominated business philosophy. Indeed business success was often defined solely in terms of production victories. The focus was on production and distributionReturn to investors of the accumulated income of a trust or mutual fund and distribution of capital gains. efficiency. The drive to achieve economies of scale was dominant. The goal was to make the product affordable and available to the buyers.
Q 6. What was the focus of Marketing in Product Era?
In the product era, the goal was to build a better mouse trap and it was assumed that buyers will flock the seller who does it. However, a better mousetrap is no guarantee of success and marketing history is full of miserable failures despite better mousetrap designs. Inventing the greatest new product is not enough. That product must also solve a perceived marketplace need. Otherwise, even the best-engineered. Highest quality product will fail.
Q 7. What did the firms attempt in Sales Era?
In the sales era, firms attempted to match their output to the potential number of customers who would want it. Firms assumed that customers will resist purchasing goods and services not deemed essential and that the task of selling and advertising is to convince them to buy. But selling is only one component of marketing.
Q 8. Describe the marketing Era of Marketing History:
During marketing era the company focus shifted from products and sales to customers’ needs. It can be explained best by the shift from a seller’s to a buyer’s market – one with an abundance of goods and services.
The advent of a strong buyer’s market created the need for a customer orientation. Companies had to market goods and services, not just produce them. This realization has been identified as the emergence of the marketing concept.
The keyword is customer orientation. All facets of the organization must contribute first to assessing and then to satisfying customer needs and wants.
Q 9. What is the meaning of Relationship Marketing?
Organization’s carried the marketing era’s customer orientation one step further by focusing on establishing and maintaining relationships with both customers and suppliers. This effort represented a major shift from the traditional concept of marketing as a simple exchangeRegulated market place where capital market products are bought and sold through intermediaries. between buyer and seller.
Relationship marketing, by contrast, involves long-term, value-added relationships developed over time with customers and suppliers.
Q 1Recently, which among the following country has launched the Practice-9 A and Practice-9 B satellites into space?
[A]USA
[B]China
[C]Russia
[D]France
Answer: China
The Practice-9 A and B are the first .....0. The statement " Customer is King" comes from which era of marketing History ?
Marketing Era
Q 11. Today Marketing is Customer Oriented or Product Oriented or profit oriented?
Customer oriented
Q 12. What is the center Point of Marketing Concept?
Customer
Q 13. Which will you keep in modern marketing concept? "Make & Sell" or "Sense & Respond" ?
Sense & Respond
The marketing Management refers to planning, organizing, directing, control of the activates which facilitate the exchangeRegulated market place where capital market products are bought and sold through intermediaries. of goods and services between the producers to end consumers. Firms today need to spend money to create time, place and ownership utilities .The main features of modern marketing are as follows:
Here is a brief Description of the fundamental marketing concepts:
Customer value is a guiding principle. The customer may rank the products as per his / her estimate of a products’ capability to satisfy a need. The price attached to the product may also affect this ranking. Ultimately, the customer chooses a product, which gives him / her best value of his / her money.
Here is a brief Description of the fundamental marketing concepts:
Customer value is a guiding principle. The customer may rank the products as per his / her estimate of a products’ capability to satisfy a need. The price attached to the product may also affect this ranking. Ultimately, the customer chooses a product, which gives him / her best value of his / her money.
Every marketer has to understand some basic questions before making a marketing plan. The first set of areas of analysis is 5C’s of the market viz. Customers, Company, Competitors, Collaborators & Context.
The above specification leads to analyze the market prerequisites. It is followed by specification of the target market.
A target market is a set of customers that the firm decides to aim its marketing efforts.
A well-defined target market is the first element to a marketing strategy. The selected market needs to be segmented on the basisIn a futures market, basis is defined as the cash price (or spot price) of whatever is being traded minus its futures price for the ..... several of geographic, demographic/socio-economic, psychographic, behavioral & product-related criteria and this is called market segmentation. Apart from this, the firms need to create an image or identity in the minds of the target market for its product/ service, brand or organization.
Next comes the Marketing Mix.
Neil Borden first used the term market mix in 1953. Neil Borden used this term in his American Marketing Association presidential address.
Marketing Mix refers to Product, Price, Place and Promotion. Place here means the channel of distributionReturn to investors of the accumulated income of a trust or mutual fund and distribution of capital gains. . Most important is the pricing decision.
The 4P’s altogether creates value for the customer and creates value for the firm too. This leads to Customer acquisition and customer retention for a long-term profit for the firm.
List of Topics :Marketing Aptitude for Banking Examinations
Marketing EnvironmentEnvironment refers to the forces or variables of the outer and inner environment of a firm that affects the marketing management’s ability to build and maintain the successful relationships with the customer. The marketing environment framework consists of macro environment and micro environment.
Microenvironment variables are close to the firm and include the suppliers, marketing intermediaries, customer markets, competition & publics. Microenvironment also refers to the internal environment of the company and affects not only marketing but also all the departments such as management, finance, research and development, Human resources, purchasing, operations and accounting.
Macro-environment deals with the Demographic, economic, Technological, Natural, socio-cultural and politico-legal environment of the markets.
The following graphic shows the environmental framework.
List of Topics :Marketing Aptitude for Banking Examinations
(P,E)
List of Topics :Marketing Aptitude for Banking Examinations
