Overview
This lecture covers core concepts of marketing and market types, the features and objectives of marketing, differences between marketing and selling, and detailed functions of marketing.
Meaning and Concepts of Market
- The market includes all actual and potential buyers of a product or service.
- Actual buyers currently purchase, potential buyers have the desire to purchase.
- Place concept: Market as a physical location for exchange (e.g., mall, shop).
- Area concept: Market as a geographical region (e.g., European market).
- Demand concept: Market is defined by total demand.
- Exchange concept: Market as the system facilitating transactions (e.g., stock exchange).
- People concept: Market includes buyers, sellers, and intermediaries.
Types of Market
- By geographical area: Local (small area), Regional (specific region), National (within a country), International (across countries).
- By volume of business: Wholesale (bulk to retailers), Retail (small quantities to consumers).
- By subject of exchange: Commodity market (goods), Capital market (long-term finance), Money market (short-term finance).
- By position of buyers/sellers: Primary (producers to wholesalers), Secondary (wholesalers to retailers), Terminal (retailers to consumers).
- By nature of transaction: Spot market (immediate delivery), Forward market (future delivery).
- By nature of goods: Consumer market (personal use), Producer market (further production/industrial goods).
Meaning and Features of Marketing
- Marketing includes activities directing goods/services from producer to consumer.
- Features: Customer-focused (aims at satisfaction), Integrated process (varied activities), Creative (utility creation), Dynamic (adapts to environment), Multidisciplinary (draws knowledge from various fields), Pervasive (needed beyond business).
Marketing Concepts: Traditional vs Modern
- Traditional: Focuses on selling goods, starts after production, ends at sale, product-oriented.
- Modern: Focuses on customer satisfaction, includes planning, pricing, promotion, research, and continues after sale.
Difference Between Marketing and Selling
- Marketing: Wide scope, customer satisfaction focused, long-term, customer-oriented.
- Selling: Narrow scope, focuses on selling, short-term, product/seller-oriented.
Objectives of Marketing
- Customer satisfaction.
- Profitability for the business.
- Service to society (reasonable prices, quality goods).
- Coordination and integration of product, price, place, promotion.
Importance of Marketing
- Foundation of business activities.
- Source of revenue.
- Customer satisfaction.
- Improves standard of living, provides employment, aids national development.
- Basis for business decision-making.
Functions of Marketing
- Exchange: Buying (by sample/description/grade), Assembling, Selling, Distribution.
- Physical: Transportation (moving goods), Storage and warehousing (holding goods).
- Facilitating: Marketing research (problem-solving), Product planning and development, Standardization and grading (ensuring quality), Packing (safety) and packaging (attractiveness), Branding (distinct name/symbol), Labelling (information tags), Pricing (setting price), Advertising (creating demand), Salesmanship (personal selling), Financing (funds for marketing), Risk taking (handling uncertainties).
Key Terms & Definitions
- Market — All actual and potential buyers of a product/service.
- Marketing — Activities moving goods/services from producers to consumers.
- Wholesale market — Sells goods in bulk to retailers.
- Retail market — Sells goods in small quantity to consumers.
- Branding — Assigning a unique identity to a product.
- Labelling — Providing information about a product on its package.
- Standardization — Setting quality standards for products.
- Grading — Sorting products by quality.
- Spot market — Immediate exchange/delivery of goods.
- Forward market — Exchange for future delivery.
Action Items / Next Steps
- Review and memorize types and features of market and marketing.
- Prepare key differences between marketing and selling.
- Complete sample paper 1 before 10 pm discussion.
- Attend next class on marketing mix.
- Download and study free notes from the application.