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Market and Marketing Concepts

1. Market

  • Origin: The term “Market” comes from the Latin word “Marcatus”, meaning “a place where business is conducted.”
  • Definition: A place where buyers and sellers interact and finalize transactions.

2. What is Marketing?

Definitions of Marketing:

  1. American Marketing Association (2004):
    Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and managing relationships in a way that benefits both the organization and stakeholders.

  2. American Marketing Association (1960):
    Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.

  3. Social (Societal) Definition:
    Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

3. What is Marketed?

Marketing applies to various entities:

  • Goods (physical products)
  • Services (intangibles like banking, healthcare)
  • Events (sports, concerts)
  • Experiences (theme parks, travel)
  • Persons (celebrities, influencers)
  • Places (tourism, cities)
  • Properties (real estate)
  • Organizations (companies, nonprofits)
  • Information (books, media)
  • Ideas (public health campaigns)

4. Scope of Marketing

  1. Study of Consumer Wants and Needs – Identifies customer motivations.
  2. Study of Consumer Behavior – Analyzes buying patterns to aid market segmentation.
  3. Production Planning and Development – From idea generation to commercialization.
  4. Pricing Policies – Adjusted based on competition, demand, and market conditions.
  5. Distribution – Optimizing supply chains for maximum reach at minimal cost.
  6. Promotion – Includes advertising, sales promotion, and personal selling.
  7. Consumer Satisfaction – Ensuring the product meets customer expectations.
  8. Marketing Control – Conducting audits to refine marketing strategies.

5. Core Marketing Concepts

Who Markets?

  • Marketer: The entity promoting a product/service.
  • Prospect: Potential buyer or customer.

Types of Markets:

  1. Consumer Market – Individual buyers purchasing for personal use.
  2. Business Market – Companies purchasing for operations or resale.
  3. Global Market – International trade and marketing.
  4. Nonprofit & Government Market – Public sector and charitable organizations.

Key Marketing Concepts:

  1. Needs: Basic human requirements (e.g., food, shelter, education).
  2. Wants: Preferences shaped by culture and personality (e.g., choosing pizza over rice).
  3. Demands: Wants backed by purchasing power.
  4. Product: A bundle of benefits that satisfy a need or want.
  5. Utility, Cost, and Satisfaction:
    • Utility: The product’s ability to fulfill a need.
    • Cost: The price of the product.
    • Satisfaction: The degree to which the product meets expectations.
  6. Exchange, Transaction, and Transfer:
    • Exchange: Trading one value for another (e.g., money for a product).
    • Transaction: A completed exchange with agreed terms.
    • Transfer: Gifting or donating without expecting anything in return.
  7. Relationships and Networks:
    • Relationship Marketing: Building long-term customer loyalty.
    • Network Marketing: Collaboration among stakeholders (suppliers, distributors, customers).
  8. Marketing Channels: The platforms businesses use to reach consumers, such as:
    • Email marketing
    • Social media
    • Influencer marketing
    • SEO
    • Websites and blogs
    • Digital advertising

6. Evolution of Marketing

Marketing Concepts Over Time:

  1. Production Concept – Mass production leads to lower prices.
  2. Product Concept – Focuses on quality and features.
  3. Selling Concept – Aggressive sales tactics.
  4. Marketing Concept – Customer-centered approach.
  5. Societal Marketing Concept – Balances customer needs with social welfare.
  6. Holistic Marketing Concept – Considers all business activities as a unified entity.

7. Holistic Marketing

A comprehensive approach integrating different marketing functions:

  1. Relationship Marketing – Builds long-term engagement with customers.
  2. Integrated Marketing – Ensures consistency across all marketing channels.
  3. Internal Marketing – Aligns company culture with marketing goals.
  4. Performance Marketing – Measures results in terms of financial performance and social responsibility.

Performance Marketing Includes:

  • Social Responsibility Marketing – Ethical and sustainable business practices.
  • Financial Accountability – Measuring ROI and profitability of marketing activities.