Marketing Management

Subject:- MBA18G008
Reg. No.- 215012301077
Specialization:- Information Technology
Management

Nature and Scope of Marketing

The term "Marketing" is derived from "Marketplace", which can be defined
as - "where buyers and sellers come together to buy and sell products".
But marketing isn't just about selling; because in order to sell products, we
need to know the needs (basic requirements) of our customers.

"Marketing is a social process by which individuals and groups obtain what

they need and want by creating, providing, and exchanging products and
services of value with others." - `Social definition`

"Marketing is the process of planning and executing the design, pricing,

promotion, and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational goals. " - American
Marketing Association.

The term "Marketing" is derived from "Marketplace", which can be defined

as - "where buyers and sellers come together to buy and sell products".

But marketing isn't just about selling; because in order to sell products, we
need to know the needs (basic requirements) of our customers.

So, marketing is all about identifying customer needs and satisfying those
needs profitably with the help of a product.
Example - Procter & Gamble (P&G) determined that people needed
delicious but low-calorie food and introduced Olestra
(oats).

Definition:
“Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering, and exchanging products and
services of values with others.” – ‘Social Definition’

“Marketing is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchange
that satisfy individual and organizational goals.” – ‘The American Marketing
Association’

The main aim of marketing is to identify the meeting the human and social
needs profitably with the help of product. The product offered by an
organization must be considered as a solution by the customers.

Marketing personnel are involved in the promotion of the following 10

sorts of entities:

i) Goods - A good can be described as anything physical that can be

supplied to clients to satisfy their desires (e.g., Maggi noodle)
ii) Services - Services are intangible, variable, and perishable goods and
services that can be provided by one party to another (e.g., medical
services, defense, etc.)
iii) Experiential Marketing - An experience can be sold as a product. A
company can develop stage and market experiences by combining
various services and items (for example, Walt Disney World's Realm
exemplifies experiential marketing — customers visit a fairy kingdom, a
pirate ship, or a haunted house).
iv) Events — Marketers also promote and market events that take place at
specific times (e.g., Sports events like IPL etc.)
v) Individuals – Inadvertently, each of us is marketing ourselves through
our acts or inactions, and our marketing efforts are supplemented by
family and friends. The marketing of celebrities or well-known people is
 a big business. Every movie star now has an agent or a public relations
officer to assist with marketing (e.g., Sachin Tendulkar)
vi) Place — Cities, states, regions, and nations compete aggressively to
attract tourists, businesses, and other visitors (e.g., tour packages etc.)
vii) Real estate - Real estate is bought and sold, which necessitates
marketing. Intangible rights of ownership of actual property (e.g., real
estate) or financial property are referred to as properties (e.g., stocks
and bonds).
viii) Organization - Organizations strive hard to grab the attention of their
stakeholders. With the help of public relations, they attempt to create a
powerful and good image in the minds of their stakeholders (e.g., Free
dental checkup campy by Colgate and Indian Dental Association).
ix) Information - Information is a product that may be created and sold
(e.g., Research and Development services, Encyclopedias)
x) Idea - Ideas can also be manufactured and sold. In fact, generating
ideas is the initial stage in developing a new product. Every market
offering has a core concept (e.g., Business ideas, etc.)

Conclusion:

Any stakeholder can be the target audience for all of the aforementioned
entities that might be called products. Anyone who is actively or indirectly
involved with the organization's business is referred to as a stakeholder.
Customers, workers, shareholders, dealers, distributors, agents, research
agencies, and other service providers are all examples of stakeholders.

Used in Two Ways: Old or Narrow and New or Broad

Ways
The goal of marketing is to make the customer happy. The consumer must be
at the centre of marketing activity. Marketers can only stay in the minds of
customers if they give them value for their money. Customer focus allows the
company to focus on its core competencies while lowering expenses for the
customer.
Quality, affordability, and benefits are all constantly traded off by today's
customer. Customers must thus be allowed to prescribe product specifications
and quality standards to marketers. Customers' demands, not market shares,
should be the focus of marketing activities. Marketers must keep a constant
eye on their customers' requirements in order to achieve this.

Business activities are classified into two parts:

1. Production

2. Distribution
The terms nature and scope of marketing are employed in two different ways:
one is old and narrow, while the other is new and broad. Marketing, in the
traditional or restricted definition, refers to activities that involve the flow of
goods and services from producers to buyers. Marketing operations begin
even before production begins, in the broadest sense.

For example, creating a product based on the preferences and needs of

customers. It also includes work on sales promotion when a decision is made
on the product's packaging and trademark.

"Marketing operations begin even before actual production is initiated,"

Stanton said in this regard. "Similarly, marketing activities do not terminate
with the ultimate sale of the product."

The consumer must be satisfied in order for the product to be sold again. In
order to do this, buyers are given with not only product guarantees, but also
after-sales service.

Marketing entails providing society with low-cost, high quality goods. It is

crucial for the society's high level of living to be maintained.

"Marketing is the act of recognising and converting consumer needs and

wants into product and service specifications, creating demand for these
products and services, and then extending this demand," says one definition.
Marketing analysis is the first step in organising and monitoring a work
schedule to ensure that the necessary exchanges take place in order to
achieve the goal of personal and social benefit.

Its scope includes the under-mentioned activities:

1. Consumer Research:

The process of obtaining, recording, and analysing pertinent facts concerning

any subject is known as research. Marketing research is concerned with all of
the elements that influence product and service marketing.

It covers topics such as product planning and development, pricing strategies,

advertising and sales promotion, distribution system, competitive strengths
and weaknesses, buyer behaviour, and so on. In purchasing, pricing,
forecasting, and facing competition, the risk of loss can be lowered by
performing research.

2. Determination of Product Policies:

Product planning is the beginning point for a company's complete marketing

strategy. It refers to the creation of a product that meets market demands.
From the genesis of an idea through its successful commercialization, product
development is a long process.

It involves making a decision regarding colour, form, quality, size, and other
factors in order to achieve a product balance that maximises profit for
manufacturers while providing maximum satisfaction for consumers.

3. Determination of Distribution Channel:

A product's distribution channel is the path taken by the title of the items as it
passes from the manufacturer to the customer. In marketing management,
determining the distribution route is crucial. It functions as a link between
manufacturers and consumers.

4. Product Promotional Decisions:

Product promotion decisions are one of the most significant criteria of modern
marketing, without which it is difficult to sell a product in the market.
In order to increase product sales, advertisements and other forms of
promotion are used. The company must arrange for the salespeople's training.
Marketing is in charge of making decisions about all of these things.

The promotion mix is made up of four key elements:

i) Publicity
ii) Personal selling
iii) Promotion of sales
iv) Promotion

5. Determination of Pricing:

Business and industrial businesses must make the most significant decisions
of their lives when it comes to pricing. Price must be decided after taking into
account a variety of elements, including the cost of production, transportation,
distribution, advertising, demand for the product, and market competition,
among others.

"Price policies offer the guidelines under which pricing strategy is established
and implemented," Cundiff and Still write.

6. Aftersales Service:

Consumer satisfaction is at the heart of modern marketing. They are given

after-sales services in exchange for it. After-sales services include free
product repair and replacement during the warranty period, as well as a
money-back guarantee.

As a result, marketing encompasses all activities relating to the transfer of

products from the point of manufacture to the point of consumption. It entails
research into advertising, sales policies, pricing, product planning, and market
analysis in terms of current and potential customers.
Nature and Scope of Marketing – 5 Key Points
1. Marketing is Customer Oriented:

Marketing begins and ends with the customer. The job of the marketing is not
only to satisfy the consumer but even to delight him/her. All the activities of an
organization must be directed and focused towards the consumer.

The organizations cannot ignore emerging technologies, materials,

instruments and new ways of organizing the things but with the considerations
of consumers. Therefore, marketers must allow their customers to dictate
product specifications and standards regarding quality. The job can only be
performed if consumers’ needs are continuously monitored.

2. Marketing is the Delivery of Value:

When a consumer derives satisfaction from a particular product on the basis

of product’s overall capacity and performance is known as value in
consumer’s perception. The consumers today make a trade-off between cost
and benefit of the product and they consider the product’s value and price
before making a decision.

At times they will have to give up a particular product to obtain the other one
since first one involves a big cost. Thus, he will choose the product that gives
him more value per rupee. According to De Rose, “Value is the satisfaction of
customer requirements at the lowest possible cost of acquisition, ownership,
and use”. Thus, the organization’s strategies must be aimed at delivering
greater customer value than that of their competitors.

3. Marketing is a Network of Relationships:

The customer is at the centre-stage and focus of all marketing activities. From
1990s onwards the focus is not only to identify the needs and delivers it to
customers but is shifting towards relationships marketing. The marketers who
are smart enough maintain their relationships by delivering high quality
products in time, better services and fair prices in comparison with their
counterparts.
4. Marketing as a Separate Discipline:

There used to be the days when marketing was treated as a part of

economics. But now it is recognized as a full-fledged separate discipline. With
the emergence of marketing concept, the issues of green marketing and
environmental protection have come up and regarding that various laws have
been framed.

When we talk of knowing consumer behavior, it leads us to entirely a new

world of human behavior and for that matter; a marketer must possess the
knowledge of psychology. Therefore, marketing has emerged as separate
discipline and got its strengths from the related areas like law, psychology,
anthropology, sociology and statistics etc.

5. Marketing is Business:

When it is said that marketing is business, the contention is that the all
activities starts from marketing i.e.; through knowing consumer and end up on
the consumers i.e.; knowing consumer dissonance. It means the entire
business revolves round the marketing.

According to Peter F Drucker, “Marketing is so basic that it cannot be

considered as a separate function. It is the whole business seen from the
point of view of its final result, that is, from the customer’s point of view.
Business success is not determined by the producer but by the customer”. So,
business seeks customers because they are the business providers and
ultimately marketing is business.

Nature of marketing can be studied under the following terms

which will explain it in a better manner:
1. Marketing is a Science as Well as an Art:

A science is something that is done in a systematic manner following certain

standard processes. Science is a systematic body of knowledge regarding a
particular subject. Marketing too has a very systematic approach and
practices. Right from developing a new product or service, understanding
needs and wants through research, segmentation, targeting, positioning,
pricing etc. or taking feedback from customers, everything is done in a
systematic manner.

Marketing is a never ending process. At every stage of the process a marketer

undertakes research to offer excellent products to customers, thus proving
that marketing is based on scientific practices.

Art is the expression of human imagination and skill, it has an emotional

connect. In Marketing we see this aspect in areas of customer relationship,
product positioning, advertising, packaging, pricing etc. The process of
segmentation, targeting and positioning is done in a systematic manner, but it
also possesses creativity in communicating the message to the customer.

This creativity and emotional connect makes marketing an art. How effectively
the marketer segments, targets and places the product in the minds of
customers depends on the systematic process adopted and the creative skills
applied. Either it is packaging of a product or placing products on the shelves,
everywhere, we can see the application of science and art.

2. Marketing is Customer Oriented:

The key objective of marketing is to provide goods and services as per the
needs of the customers. Before developing and providing a product,
marketers try to find out, what exactly customers are looking for? Based on
the findings, the product is created and provided to customers.

Once customer consumes or experiences the product or service, the marketer

again does research about the performance of the product and service. So
Marketing is totally customer oriented, which starts with customers and ends
with customer.

3. Marketing Involves Human Actions:

Humans are an integral part of all marketing activities. Right from marketing
research, product development, delivery consumption, post consumption etc.
Humans help to satisfy other human beings needs and wants. Without proper
human actions marketing would be impossible.
4. Marketing is an Exchange Process:

By exchange we mean transfer of something for one party to another. Every

stage of marketing is an exchange and therefore we can rightly say that
marketing is an exchange process. There is exchange between buyers and
sellers, sellers offer products and buyers give money in exchange for the
products. There is exchange of ideas and views between Company and
Customer, Marketer offers some benefits in exchange for customer feedback.

Advertising agencies offer their services in return for money. There is an

exchange of ideas, communication, money, products, experiences,
technology etc. between all stakeholders and the Marketer.

5. Marketing is Strategy:

Strategy is a plan of action to achieve long term or overall goals. Marketing

involve short term and long term goals. Every function of marketing needs a
systematic plan of action. Questions such as, “What to Produce”, “What to
Sell”, “When to Sell”, “Whom to Sell to”, etc. is answered only thorough
strategy of the Organization.

6. Goal Oriented:

The main goal of marketing is customer satisfaction, all activities or functions

of marketing are undertaken for achievement of one major goal that is
customer satisfaction. To achieve the major goals many smaller goals need to
be addressed by marketing. Therefore it is rightly said that Marketing is Goal
Oriented.
Nature and Scope of Marketing- In India (With Examples)
Nature:
Marketing is ever evolving process. whenever we feel to have understood the
market, it changes color sort of a chameleon. Relaxed and compassionate
marketer is predicted to get bewildered. Marketing is amazingly creative
process, where an individual could unleash his full imagination to explorer
marketing opportunities, but at same time it might be dangerous if got caught
in fanciful dreaming.

Some key points highlighting the character of marketing could be as follows:

1. Marketing may be a complex process.

2. Marketing is dynamic and ever evolving.

3. Marketing demands integrated and coordinated efforts.
4. Marketing is filled with creativity and innovation.
5. Marketing is value driven and customer focused process.
6. Marketing is about being empathetic and sacrificing. that's why an
author has articulately compared marketing as ‘Gardening’.

Scope:
Marketers and other people related to marketing always relate marketing to
goods and services but the horizon of marketing touches other verticals
also such as experiences, events, persons, places, properties,
organizations, information and concepts . Marketing concepts are
often used effectively to market these entities.

1. Goods:

They are tangible in nature and are offered to market to satisfy a need or
want. for instance , FMCG products and other tangible offerings.

2. Services:

Services are often defined as any performance that one party can offer to

another that is essentially intangible and does not result in the ownership of
anything. Its production may or might not be tied to a physical product.
Services include the work of hotels, airlines, banks, insurance companies,
transportation corporations etc. also as professionals like lawyers, doctors,
teachers etc.

Many market offerings contains a variable mix of goods and services. At the

pure service end would be psychiatrist taking note of a patient or watching
movie in a cinema hall; at another level would be the landline or mobile
phone call that is supported by a huge investment in plant and equipment;
and at a more tangible level would be a fast food establishment where the
consumer consumes both a good and a service.

3. Experiences:

It is a satisfaction a customer gets after being part of a place For example

water parks, zoos, museums etc. provide the experiences which aren't the
part of routine life. there's a market for different experiences such as
climbing Mount Everest or Kanchenjunga, travelling in Palace on Wheels,
river rafting or a visit to Moon.

4. Events:

Marketers promote time-based, theme-based or special

events like Olympics, company anniversaries, sports events (Samsung
Cup, India Pakistan Cricket Series), artistic performances (Lata
Mangeshkar live concert, Jagjit Singh live concert), trade shows
(International Book Fair at Pragati Maidan, Automobile fair), award
ceremonies (Filmfare awards, Screen awards), beauty contests (Miss
World, Miss Universe, Miss India, Miss Chandigarh), model hunts
(Gladrags Mega Model) etc.

There is a whole profession of event planners who work out the details of
an event and stage it. In India event management companies are growing
and just in case of organizing Miss World at Bangalore and World Cricket
Cup (Hero Cup) they won the acclaim from all over the world.
Our committee Organizes biggest event in the world.

Elections for the upper house within the largest democracy in the world.

Other notable example is organizing of ArdhKumbh and MahaKumbh at
Hardwar, Ujjain, and Nasik etc. during different years.

5. Persons:

Celebrity marketing has become a serious business. Years ago, someone

seeking fame would hire a publicity man to plant stories in newspapers and
magazines. Today, most of cricket players like Sachin Tendulkar, Saurav
Ganguly, Rahul Dravid etc. are drawing help from celebrity marketers to
urge the maximum benefit.

Even the channel “Star Plus” focused more on Amitabh Bachchan to

promote their program Kaun Banega Crorepati and this program turned
around fortunes of both Star Plus and Amitabh Bachchan. Even within
the 14th Lok Sabha election BJPs’ election strategy revolves around Mr.
Atal Bihari Vajpayee, that’s power of personality. Mr. Shiv Khera is busy in
building his business empire and is busy telling others the way to achieve
this or that through books and lectures.

6. Places:

Places, cities, states, regions and whole nation compete actively to draw
in tourists, factories, company headquarters and new residents. India and
China are competing actively to draw in foreign companies to build their
production hubs. Cities like Bangalore, Hyderabad and Gurgaon are
promoted as center for software development.

Bangalore is considered software capital of India and Hyderabad is

emerging as the hub of biotechnology industry. Gurgaon and Noida are
competing for call centers to open their offices. Kerala, Himachal Pradesh,
Uttarkhand and Rajasthan, they're also aggressively promoting themselves
to attract local as well as foreign tourists.

Due to its cost effectiveness and competitive ability of Indian doctors

coupled with ancient therapies, India is fast emerging as country which
will provide excellent medical treatment at minimum cost. If developed
properly, Bihar has strong potential to emerge as ultimate destination for
Buddhists.
7. Properties:

Properties include all immovable assets like land, building etc. and also

movable like share and debentures. Then there are company like Mantri
and Brigade who build and sell property. Property dealers in India work for
property owners or seekers to sell or buy plots, residential or
commercial land . Brokers and sub-brokers buy and sell securities on
behalf of individual and institutional buyers.

8. Organizations:

Organizations actively work to create a strong, favorable image within

the mind of their publics. We see advertisements of Reliance Infocomm,
which is trying to supply communication at lower rates, Dhirubhai Ambani
Entrepreneur program is trying to market entrepreneurship among the
Indians.
Companies can gain immensely by associating themselves with the social
causes. Universities and colleges try to boost their image to compete
successfully for attracting students for admissions by mentioning their
NAAC grades in the advertisements and information brochures.

9. Information:

This is one of the oldest form of marketing, within the form of newspaper

and then with the evolution television and radio and now internet.
Wikipedia is one among the best examples of information marketing.
Magazines like Fitness and Muscle provide information about staying
healthy, Business India, Business Today and Business World provide
information about business activities that are happening in various
organizations.

Outlook Traveler provides information about various national and

international tourist destinations. There are number of magazines which
are focused on automobiles, architecture and interior designing,
computers, sound system , television programs, etc. which cater to the
knowledge needs of the customers.
We buy CDs and visit websites to obtain information. In fact, production,
packaging and distribution of data is one of the society’s major industry.
More and more companies are using professional research agencies to
get the information they need.

10. Ideas:

Film makers, marketing executives and advertising agencies

continuously search for a creative spark or an idea that can immortalize
them and their work. Idea here means the social cause or a problem that
can change the life of many. “Narmada Bachao Andolan” was triggered to
bring the plight of displaced people and to urge them justice.

Endorsement by “Amitabh Bachchan” to Pulse Polio Immunization drive

and pledge by “Aishwarya Rai” to donate her eyes after her death gave
immense boost to those programs. Various government and non-
government organizations try to promote a cause or issue which can
directly and indirectly alter the life of many. for instance , Traffic police
urges to to not mix drink and drive, central and government urging
individuals not to use polyethylene as carrying bags for groceries.

It is typically understood that marketing is the task of creating,

promoting and delivering goods and services to consumers and
businesses.

In fact marketing process can be applied for the below ten types of
entities:

1. Goods – Ex. Food, Commodities, Clothes etc.

2. Services – Ex. It includes the work of airline, hotels, hire car firms,

barbers and beauticians.

3. Experience – Ex. Spending every week at a Cricket camp playing with

some retired Cricketers.
4. Events – Ex. Organization of Sports activities, Miss World contest etc.

5. Persons – Ex. Sachin Tendulkar, Shahrukh Khan, Mukesh Ambani etc.

6. Places – Ex. Shiridi, Prayag, Haridwar etc.

7. Properties – Ex. Financial properties like bonds and stocks. real

estate like the real estate.

8. Organizations – Ex. Taj Mahal, Lucknow Universities, Lal Quila etc.

9. Information – Ex. Purchase of C.D and visit of Internet.

10. Ideas – Ex. Every market offering includes a basic idea at its core.
Fairness cream Fair and wonderful carries the idea of more beauty among
women that could bring success and recognition.