Meaning and Definition of Marketing
Nature of Marketing
Importance of Marketing
Marketing vs. Selling
Scope of Marketing
Core Concepts of Marketing
What is Marketing?
Marketing deals with identifying human and social
needs and meeting those needs profitably.
“Marketing is defined as a social and managerial
process by which individuals and group obtain
what they need and want through creating and
exchanging products and services of value with
– Philip Kotler
Definition of Marketing by AMA
“ Marketing is an organizational function and a set
of processes for creating, communicating, and
delivering values to customers and for managing
customer relationship in ways that benefit the
organization and its stakeholders.”
Nature of Marketing
Specialized business function requiring specialized
Social function requiring constant interaction with
Integrative function combining other business
functions like production, finance, personnel, R & D
Universal function which can be applied to both profit-
motive and non-profit motive organizations.
Science as well as an art.
Nature of Marketing Management.
Both consumer oriented and competitors oriented.
It starts with consumers and ends at consumers.
Marketing is a Process.
It Involves a Mix of Product, Pricing, Promotion, and
It Is Intended to Satisfy Individual and Organizational
Importance of Marketing
Financial success often depends on the marketing
Marketing enables the organizations to keep abreast
Customer satisfaction, Increases sales and ultimately
Uplifting the standard of the society as a whole
Importance of Marketing . . . .
Marketing help in economic growth and
Marketing management helps in improving
quality of products or services
Marketing philosophies has undergone a
thorough and gradual change
This gradual change can be traced by studying
different concepts or periods
What philosophy should guide a company’s
What relative weight should be given to the
interests of organization, the customer and the
1. Production Concept
One of the oldest concept of business.
Based on the assumption that whatever is
produced will be accepted by the customers.
It prevailed before 1930s.
It holds that consumer will prefer those products
which are widely available and inexpensive.
Managers concentrate on achieving high
production efficiency, low cost and mass
1. Production Concept. . . . .
Ford car model T.
ITI(Indian Telephone Industry) has monopoly and
was producing only black colored instruments.
Similarly household electrical appliances like
fridge, washing machine geyser, microwave oven
etc. were available only in white color (sometime
called as white goods).
2. Product Concept
It holds that customers will accept those products
that offer most quality, performance and
Till 1930s, there prevailed a strong feeling that
whenever a firm has a good product, it results in
automatic consumer response and needed little
or no promotional efforts.
“Good wine needs no push”.
Managers focus on making superior products and
improving them over time.
2. Product Concept. . . . .
However sometimes these managers caught up
in a love affair with their products.
Over emphasis on product excellence may lead
to ignorance of customer needs and wants.
This is called the phenomenon of marketing
myopia or short-sightedness.
3. Selling Concept
The failure of production and product concept
paved the way for change in outlook that was
possible during 1940s.
It states that mere making best product is not
It is futile unless the firm resorts to aggressive
Effective sales promotion, high advertising and
public relations are of top importance.
The essence is “Goods are not bought but sold”.
3. Selling Concept. . . . .
The manager’s main task is to convince the
buyers through high pressure tactics.
The aim is to sell what company’s make rather
than what customers want.
This concept is used for unsought goods which
buyers do not think of buying.
4. Marketing Concept
Emerged in mid 1950s.
It believes that company’s objectives depend
upon understanding the needs and wants of
Company must deliver the desired satisfaction in
a better way than the competitors are doing.
The job is not to find right customers for your
products, but right products for your customers.
It was found that companies who embrace the
marketing concept achieve superior performance.
5. The Societal Marketing
The societal marketing concept hold that
marketing strategy should deliver value to the
customers in away that maintains or improves
both the consumers and society’s well being.
Long run welfare than short run wants
1. Needs, wants and demands
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
• Need directed by specific objects which are shaped
by culture and societyWants
• Wants backed by buying powerDemands
Customer Needs, Wants, and Demands
2. Marketing Offers/ The scope of
3. Segmentation, Targeting and
Segmentation- Dividing the market into different
segments based on different parameters
Targeting- Selecting the segment offering greatest
potential and profitability
Positioning- Placing the product/service in the
minds of the targeted customers.
4. Value and Satisfaction
The offering will be successful if it delivers value
and satisfaction to the targeted buyers
Value: the difference between the
benefits(Tangible/Intangible) received by using a
product/service and the cost(monetary
cost/searching cost/psychological cost) of buying
Satisfaction: Reflects a person’s comparative
judgment resulting from a product’s perceived
performance to his expectations