INTRODUCTION TO EMARKETING

The term marketing means it is a verb as per any good dictionary, which indicates action (going to the market). In simple terms marketing is helping a manufacturer or the affiliate (intermediary to go to the market). In particular, the role of marketing for a firm includes:

To add value for consumers,

To win customers,

To outperform its competition,

To make a difference to society and

To achieve the firm’s other defined goals.

Marketing is a wide term embracing all resources and eco­nomic activities needed to direct the flow of goods and services from producers to consumers. It is a distribution process so far as busi­nessmen are concerned.

” A total system of interacting business ac­tivities designed to plan, price, promote and distribute want-satisfy­ing products and services to present and potential customers” — William J Stanton. It is a modern activity that has developed about the middle of the current century as a scientific process and organised activity and a body of knowledge.

The Committee of the American Marketing Association, 1960, defined marketing as “the performance of business activities that direct the flow of goods and services from producers or suppliers to the consumers and end-users.”

It is the management function which organizes and directs all those business activities involved in assessing and converting cus­tomer purchasing power into effective demand for a specific product or service and in moving the product or service to the final consumer or user so as to achieve the profit target or other objectives set by a company (U. K. Institute of Marketing).

Nature of Marketing

1. Marketing is an Economic Function

Marketing embraces all the business activities involved in getting goods and services , from the hands of producers into the hands of final consumers. The business steps through which goods progress on their way to final consumers is the concern of marketing.

2. Marketing is a Legal Process by which Ownership Transfers 

In the process of marketing the ownership of goods transfers from seller to the purchaser or from producer to the end user.

3. Marketing is a System of Interacting Business Activities 

Marketing is that process through which a business enterprise, institution, or organisation interacts with the customers and stakeholders with the objective to earn profit, satisfy customers, and manage relationship. It is the performance of business activities that direct the flow of goods and services from producer to consumer or user.

4. Marketing is a Managerial function 

According to managerial or systems approach - "Marketing is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market." 

According to this approach the emphasis is on how the individual organisation processes marketing and develops the strategic dimensions of marketing activities. 

5. Marketing is a social process 

Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham (1981) societal marketing performs three essential functions:-

1. Knowing and understanding the consumer's changing needs and wants;
2. Efficiently and effectively managing the supply and demand of products and services; and
3. Efficient provision of distribution and payment processing systems.

6. Marketing is a philosophy based on consumer orientation and satisfaction

7. Marketing had dual objectives - profit making and consumer satisfaction

Scope of Marketing:

Marketing is a process designed to plan, price, promote and distribute want satisfying products and service. If cov­ers three main activities—concentration, dispersion and equalization. Marketing confines itself to channels of distribution, marketing func­tions, flow of goods and management.

Starting with research to know customer demand through market analysis and investigation, the scope of marketing extends itself to the employment of resources of men, money, materials and management with a view to satisfying customer demand.

So in a nutshell

1. Study of Consumer Wants and Needs

Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase.

2. Study of Consumer behaviour

Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in market segmentation and targeting.

3. Production planning and development

Product planning and development starts with the generation of product idea and ends with the product development and commercialisation. Product planning includes everything from branding and packaging to product line expansion and contraction.

4. Pricing Policies

Marketer has to determine pricing policies for their products. Pricing policies differs form product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc.

5. Distribution

Study of distribution channel is important in marketing. For maximum sales and profit goods are required to be distributed to the maximum consumers at minimum cost.

6. Promotion

Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in accomplishment of marketing goals.

7. Consumer Satisfaction

The product or service offered must satisfy consumer. Consumer satisfaction is the major objective of marketing.

8. Marketing Control

Marketing audit is done to control the marketing activities.

Importance of Marketing:

The importance of marketing cannot be over emphasized. It has a special role to play in a developing country like India. Economic growth, export promotion, and generation of healthy competition are the direct outcome of marketing which has a far-reaching consequence on the economy of a country, particularly a developing country.

Economic growth is promoted by marketing directly “through proper assessment of the nation’s requirement, better planning of products and production, better procurement of inputs and distribution of goods and services and indirectly through widening of the markets, augmentation of demand and stabilization of the price-level.”

Market­ing is a powerful source of foreign exchange eluding through export promotion. Scientific marketing helps in generating an atmosphere of genuine and healthy competition leading to efficiency both in produc­tion and distribution through better utilization of resources.

To sum up, marketing confers certain benefits that are vital to the economy of any country—developed and under-developed. It links agriculture with industry — both farms and factories are benefited. It helps continuous flow of goods from farm to the farm assuring farmer’s legitimate price for their toil and consumers a steady supply of goods at competitive price.

The scope of marketing deals with the question, ‘what is marketed?’ According to Kotler, marketing people are involved with ten types of entities.

1. Goods:

Physical goods constitute the major part of a country’s production and marketing effort. Companies market billions of food products, and millions of cars, refrigerators, television and machines.

BASIS FOR COMPARISON	SELLING CONCEPT	MARKETING CONCEPT
Definition	Selling concept pertains to a business notion. This concept points out that if consumers and businesses are left unattended, then ample sale of the product manufactured by the business will not take place.	Marketing concept pertains to business orientation strategies and activities related to accomplishing organizational goals. It attains results by making an organization’s products better than those of rivals, specifically in terms of providing higher levels of customer satisfaction.
Linked with	Compelling the consumer's mind to understand and buy the goods and services of the firm following the selling concept.	The marketing concept lays emphasis on directing the goods and services offered by the marketing company towards the consumer's mind.
Starting point of the concept	The selling concept gets initiated in the factory where the product is designed and developed.	The target market serves as the starting point of the marketing concept where the marketers ae expected to gain knowledge about the prevailing market conditions and the demand of produced products via in-depth market research.
Focuses on	The main focus of the selling concept deals with the product, its pricing, distribution and purchase by customers with the aim of improving upon overall sales figure. Sales maximization is the main goal of the selling concept.	Customer needs are the main point of focus in the marketing concept. All efforts  of creating brand awareness, creating the buzz, advertising as well as selling processes are directed towards attaining maximum customer satisfaction.
Perspective	The inside-out approach is adopted in the selling concept.	The marketing concept holds ground in the outside-in approach.
Essence of concept	The main essence of the selling concept lies in the transfer of title and the possession of goods by the buyer. Here, the seller rules the market.	Satisfaction of consumers serves to be the primary essence of the marketing concept. Here, the customer is king.
Business Planning	Short term plans are made with a view of impacting customer purchase behaviour in a competitive market space or when the sales figures are not matching up with the above-capacity production of an organization.	Long term plans in relation to product positioning, creating brand awareness, gaining customer loyalty, etc. make marketing a long-drawn process.
Orientation	The sales concept is volume oriented.	It is profit oriented with profit maximization being the main goal of marketing.
Means of implementation	Heavy selling and promotion, along with the inclusion of all means for pushing a brand into the purchase list of buyers forms the goal of the selling concept. Selling efforts encompass luring, convincing, coaxing and attracting of customers to buy new goods and ideas in order to increase overall sales.	Integrated marketing plans and strategies form the base of the marketing concept. In this concept, the strategies linked to a product’s marketing mix come into play – these are the 4 P’s of marketing - product, price, promotion and place (physical distribution).
Price	The price of products is dependent on the overall Cost of Production.	The market determines the product pricing on the basis of various factors, including demand and supply.