Market and Marketing.

Market is a collection of buyers and sellers. It is also thought to be a set of individuals or

institutions that have similar needs that can be met by a particular product. For example, the
housing market is a collection of buyers and sellers of residential real estate, and automobile
market includes buyers and sellers of automotive transportation. A market is, therefore, the set of
all actual and potential buyers of a market offer. Until recently, market also meant a physical
location where buyers and sellers met to conduct transactions. These marketplaces, like the
grocery stores, malls etc. still thrive in the society. Most companies conduct research to find out
the credibility of their product in the market, its sales patterns, buyer acceptance levels and most
importantly, to forecast future sales. The company must be able to measure and forecast the size,
growth, and profit potential of each market. The market demand for a product under a specific
marketing activity is the sales volume of the product in the target market for a specified time
period in a particular region. Marketing, on the other hand, is an organizational function and a set
of processes that work in tandem to serve the market effectively, efficiently and profitably. The
American Marketing Association defined marketing as - Marketing is an organizational function
and a set of processes for creating, communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the organization and its stakeholders. A
marketer, by adjusting and optimizing the 4P-s of marketing, has to carry out different marketing
tasks, take care of the task or internal marketing environment, and keep his eyes and ears open
about the happenings in the broad or external environment, in order to compete successfully in
the market. Successful marketing companies will be those who can provide appropriate solutions
to customer needs economically and conveniently and communicate effectively with the targeted
group of consumers.

Marketing and Its Components.

Ans: Marketing is the managerial function responsible for identifying anticipating and
satisfying customer requirement profitably. The component of marketing are four namely
which are :
i) The offer: An offer is the outcome of marketing activities of the firm. An offer is the
proposal which may or may not be accepted by the buyers as offer is from sellers.
ii) The market : Market is the aggregate of forces or conditions within which buyers and
sellers make decision that the result in the transfer of goods and services .In others words it is
aggregate demand of the potential buyers for a commodity or services . it is people with money
money and inclination to buy
iii)The system : Marketing is concerned with flow of goods and services from the point of
production to the points of consumption . there is systematic arrangement of these function of
marketing to move the goods and services to the needy persons
iv) The forces: the final component of marketing is to do with environment in which
marketing takes place .It is taken as a final component because environmental forces influence
the nature and character of the offer market as the system . environmental forces contribute to
every facet of change and adjustment in a marketing network .

Marketing Concept and evolution .

Marketing concept is “an integration of marketing activities directed toward customer
satisfaction “ as define by Prof. Philip Kotler , Marketing concept “is a customer orientation
backed by integrated marketing aimed at generation customer satisfaction ,as the key to
satisfying organizational goals” On the other word of ,marketing concept is a philosophy of
business management based upon a company wide acceptance of the need for customer
orientation, Profit orientation and recognition of the important role of marketing in
communicating the needs of the market to all major corporate department . Mr King .R.L.
define it has a managerial Philosophy concerned with the mobilization , utilization and control of
total corporate effort for the purpose of helping consumer solve selected problems in ways
compatible with planned enhancement of the profit position of firm .

Thus, marketing is the way of life which all the resources of an organization are
mobilized to create stimulate and satisfy the consumer at a profit. Wherever this concept
prevails that marketing organization is future oriented, customer oriented, value oriented, profit
oriented and applies modern management practices to all sales distributions and other marketing
functions.
Evolution of marketing concept

A) Production oriented: This production oriented marketing concept was built on” good wine
needs no bush “ i.e if the product is really good and the price is reasonable there is no need for
special marketing efforts the assumption of this concept are 1) Anything that can be produce can
be sold 2) The most important task of management is to keep the cost of production can be sold
3) The firm should produce only certain basic products

GOOD PRODUCT GOOD SALES

B) Sales Orientation: Effective sales promotion, advertising and public relation are of the top
importance. High pressure salesmanship and heavy doses of advertising are a must to move the
products of the firm .The essence of sales orientation philosophy is goods are not bought but sold
.PRODUCT PROMOTIONS SALES

C)Customer orientation : The enterprise is to commence with the consumer and end with the
requisite product it emphasize the role of marketing research well before the product is made
available in the market place .The assumption are 1) The firm should produced only that product
as desired by the consumer 2) The management is to integrate all its activities in order to
develop programs to satisfy the consumer wants 3) Management is to be guided by long range
profits goals rather than quick sales .

CUSTOMERS-----MARKETING RESERCH------PRODUCTION----SALES PROMOTION---------SALES

D) Social orientation: This philosophy care for not only consumer satisfaction but also
consumer welfare or social welfare speak of pollution free environment and quality of human life
. The assumption of social orientation are1) The firm is to produce only those products as are
wanted by the consumer 2) The firm is to be guided by long term profit goals rather that to
quick sales

CUSTOMERS-----MARKETING RESERCH------R&D------PRODUCTION----SALES PROMOTION---------

SALES
Marketing environment and factors

Firms are affected by lots of different things; a firm's marketing environment is made up of all of
the things that affect the way it operates. Some of the factor's in a firm's marketing environment
can be controlled by the firm but some are uncontrollable. Firms need to understand their
marketing environment so that they can make the most of positive factors and manage the impact
of negative factors. A firm's marketing environment can be spilt into three parts: internal
environment, macro environment and micro environment.

The environmental factors that are affecting marketing function can be classified into :

1) Internal environment and

2) External environment

Internal Environment of Marketing:

This refers to factors existing within a marketing firm. They are also called as controllable
factors, because the company has control over these factors :

There are many internal factors that influence the marketing function, they are :

Top Management: The organizational structure, Board of Director, professionalization of

management..etc..Factors like the amount of support the top management enjoys from different
levels of employees, shareholders and Board of Directors have important influence on the
marketing decisions and their implementation.

Finance and Accounting: Accounting refers to measure of revenue and costs to help the
marketing and to know how well it is achieving its objectives. Finance refers to funding and
using funds to carry out the marketing plan. Financial factors are financial polices, financial
position and capital structure.

Research and Development: Research and Development refers to designing the product safe
and attractive. They are technological capabilities, determine a company ability to innovate and
compete.
Manufacturing: It is responsible for producing the desired quality and quantity of products.
Factors which influence the competitiveness of a firm are production capacity technology and
efficiency of the productive apparatus, distribution logistics etc.,

Purchasing : Purchasing refers to procurement of goods and services from some external
agencies. It is the strategic activity of the business.

Company Image and Brand Equity : The image of the company refers in raising finance,
forming joint ventures or other alliances soliciting marketing intermediaries, entering purchase or
sales contract, launching new products etc.

External Environment of Marketing.

External factors are beyond the control of a firm, its success depends to a large extent on its
adaptability to the environment. The external marketing environment consists of :

a) Macro environment, and

b) Micro environment

a) Micro environment: The environmental factors that are in its proximity. The factors
influence the company’s non-capacity to produce and serve the market.The factors are :

1) Suppliers: The suppliers to a firm can also alter its competitive position and marketing
capabilities. These are raw material suppliers, energy suppliers, suppliers of labor and capital.
According to michael Porter, the relationship between suppliers and the firm epitomizes a power
equation between them. This equation is based on the industry condition and the extent to which
each of them is dependent on the other.

2) Market Intermediaries: Every producer has to have a number of intermediaries for

promoting, selling and distributing the goods and service to ultimate consumers. These
intermediaries may be individual or business firms. These intermediaries are middleman
(wholesalers, retailers, agent’s etc. ), distributing agency market service agencies and financial
institutions.
3) Customers : The customers may be classified as :

i) Ultimate customers: These customers may be individual and householders.

ii) Industrial customers: These customers are organizations which buy goods and services for
producing other goods and services for the purpose of other earning profits or fulfilling other
objectives.

iii) Resellers: They are the intermediaries who purchase goods with a view to resell them at a
profit. They can be wholesalers, retailers, distributors, etc.

(iv) Government and other non-profit customers: These customers purchase goods and
services to those for whom they are produced, for their consumption in most of the cases.

v) International customers: These customers are individual and organizations of other

countries who buy goods and services either for consumption or for industrial use. Such buyers
may be consumers, producers, resellers, and governments

Macro Environment:

Macro environment factors act external to the company and are quite uncontrollable. These
factors do not affect the marketing ability of the concern directly but indirectly the influence
marketing decisions of the company.
Marketing mix and element
Definition: The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price,
Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes
several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Example: cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the
final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more
sugar! It is the same with the marketing mix. The offer you make to you customer can be altered
by varying the mix elements. So for a high profile brand increase the focus on promotion and
desensitize the weight given to price.

4Ps of marketing

Price: Price is also the exchange value of the product and also the amount of money that
customer pay for the product. It refers to the value that is put for a product. It depends on costs of
production, segment targeted, ability of the market to pay, supply - demand and a host of other
direct and indirect factors. There can be several types of pricing strategies, each tied in with an
overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the
image of a product.

 List price
 Discount
 Allowance
 Payment period
 Credit terms
There are many ways to price a product

1. Premium Pricing
2. Penetration Pricing
3. Economy Pricing
4. Skimming Pricing
Product: refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't do
any good.

Product: Three level of product

 Core Product
 Actual Product
 Augmented Product

The CORE product is not the tangible, physical product. You can't touch it. That's because the
core product is the BENEFIT of the product that makes it valuable to you.

So with the car example,:- the benefit is convenience i.e. the ease at which you can go where
you like, when you want to. Another core benefit is speed since you can travel around relatively
quickly.

The ACTUAL product is the tangible, physical product. You can get some use out of it.Again
with the car example, it is the vehicle that you test drive, buy and then collect.

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of
added value, for which you may or may not pay a premium. So when you buy a car, part of the
augmented product would be the warranty, the customer service support offered by the car's
manufacture, and any after-sales service.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making
it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a
premium for the right location. In fact, the mantra of a successful retail business is 'location,.

Promotion: this refers to all the activities undertaken to make the product or service known to
the user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.

Benefits and Cost of market segmentation.

Ans: Market segmentation strategy ,if used properly , can benefit both the marketing
organizations and the consumers .There are some benefits of market segmentations are :

1)A more precise definition of the market . :Market segmentation improves organizations
understanding of why consumer do or don’t buy certain products or services .In other words it
provide as understanding of how best to meet the changing market demand .

2)Amore effective marketing programme: Understanding the consumer to the first step in the
planning the appropriate to meet their need .The information gained from market segmentation
allow the organization to plan a systematic and matching marketing program that reflects the
current market condition and allow for the future modification .That is the firm can make finer
adjustment of its product and appeal

3)Better assessment of the competition; Market segmentation helps in assssing correctly the
strength and weakness of the competitors .If a competing product appear to be deeply
entrenched in one segment , there is hardly any point in wasting precious resource in marketing
to such a group .However ,where the company product fail to relate to a potentially strong
target ,management can take full advantage of the same

4)Better allocation of resources :Once a target segment is clearly define and identified , the
limited resources at that command of the company can be channeled for the best result Thus
promotional campaigns can be coordinated effectively so that the consumer would recognize the
promotional appeal quickly and the marketers would minimize the loses resulting from excess
exposures
Cost of Market segmentation :

1)Product cost : In order to accommodate each market segments the firms goes ahead with
designing specific product . Designing work may be in the range of mare change in lable to
complete rethinking of entirely new product

2)Production cost: Though technological break ---- through have made possible good many
firms to reduce the number of units needed achieve economic of scale ,steel there persist a
problem of high productivity cost .The firm is expected to achieve sufficient sales volume in
each market segment to justify the cost involved in separate production run .

3)Promotion cost : every organization has to develop a promotions strategy that fits to each
market segment . it is but natural that multiple strategies require huge expenditure on both
human and financial resources to design different ads and place them in various media .

4)Management cost :Market segmentation strategies consumes goods deal of valuable time of
management . The management is to design implement coordinated marketing strategy for each
market segment .Such a coordinated strategy deals with product pricing, promotion and
distribution .Many organization employ specialized service of a product or market manager