Class 12 Marketing: Chapter One
Concept, Evaluation and Importance of Marketing and Marketing Mix
Modern/Broad/New Concept of Marketing
In modern concept marketing is related to satisfaction of the consumers need. Marketing refers the entire activities from developing ideas of any goods and services to the after sales services. It identifies needs and wants of consumers and produced goods accordingly. The activities of developing ideas innovation and production of goods and services, branding, pricing, promotion, distribution providing service after sales are known as marketing. It is customer oriented marketing.
Evolution of Marketing
The evolution of marketing can be explained under following mention six stages:
1. Self- Sufficient Economy Stage
In the early days of human civilization needs and wants of people were limited. People moved one place to another in searching of food. They lived on hunting and gathering and gradually began to produce what they needed by hunting as well as raising livestock and farming. There was no concept of exchange at all. People were able to fulfil their needs by themselves.
2.Primitive barter Economy
After the stage of self- sufficient the stage of barter economy began. Due to the development of economic life human needs also started increasing. At this stage, some groups were able to produce goods quicker than the other. They were specialized in producing certain kinds of goods. Now, they started exchanging the surplus goods with the goods they didn’t produce. This involves some search and negotiation. The concept of exchange was developed at this stage.
3.Local Market Economy Stage
Barter system encouraged the emergence of local markets. Initially people were engaged in temporary affairs such as trade fair taking place once a week or during festivals. But, soon they took on more permanent shops, stalls, bazar etc.
4.Money Economy Stage
Difficulty in barter exchange gave rise to money economy stage. There were many difficulties of life, double coincidence of wants, carrying of goods from one place to other, storage difficulty, common and standard measure of value etc. People use money in different forms like fish, sheep, cow, shells, etc. Later metallic coin and paper money were introduced. They quickened the pace of trade.
5.Early capitalism stage
Some people were efficient act accumulating goods or services. They employed other persons to sell their goods in market. Thus, there were two classes that is propertied class and labor class. Though there were no packaging, advertising, branding, grading etc. These people were able to distribute goods in different places of towns. In this stage the business activities involved in searching for customers or markets and movement of goods from producer to consumers for the purpose of the seller’s gain.
6.Mass production stage
In this stage, industrial revolution took place, new machine and equipment were introduced, means of transportation and communication were also developed. This resulted in production of goods and services at mass quantity. The concept of management that is managing man materials, money and machines was developed. They targeted increased profit through increased sells. The concept of wholesaler agents, retailers etc. all come into prominence at this stage. The practice such as branding, advertising, packaging etc come into the forth at this stage.
7.Affluent society stage
This is the modern stage where different amenities of life are developed. There is complexities in wants of customers. Producers are concerned about satisfaction of customer’s needs. They are investing huge capital on research and development activities so as to identify changing needs of customers. Organization which are able to satisfy customer’s needs are successful to date. Salespersons were increasingly used to provide feedback on evolving customer wants. Advertising is used to inform buyers of new goods designated to meet new want
Importance of marketing
# Importance of Marketing to the consumers:
1.Provide information:
Consumer get information like product features, performance, price on various products available in the market through various media. It uses benefits, performance, cost or price, features etc through this consumers can compare the product with other product or similar products of other brands.
2.Provide satisfaction:
Marketing satisfy consumer by providing them with goods whatever they need. It is engaged in providing goods according to change in interest and preference of customers or consumers.
3.Selection facility:
Consumer can make choice among different products available in the market through marketing. For this different promotional campaigns and marketing, effort are used.
4.Increase in living standard:
Goods consumed or service used reflect living standard of a customer. It is perceived that one has higher living standard if they consume high quality goods. Marketing helps the consumer to buy and use better quality product.
5. Reasonable price:
Producer have to compete with each other through different marketing stages so that the needs of consumers are fulfilled. In order to survive and have a large market, share, producer supplies goods at reasonable price.
Importance of marketing to the firms:
i) Business planning and decision making:
Producers plan what to produce, what quantity to produce, where to sell etc through demand forecast and changing behavior of customers. The production planning must be based on sales forecast. Marketing provide these information to the marketer and guided a marketer.
ii) Develops exchange relationship:
Marketing activity helps firm to develop exchange relationship with its customers. Firm must provide and produce right kind of goods at right place at reasonable price through correct distribution channel. Distribution channel are whole seller and retailer.
iii) Profit maximization:
Marketing activities helps the organization for profit maximization. Marketing is concerned about satisfy customers’ needs and wants. When customers are satisfied, they demand for more product. This increases volume of sells which in turn increases revenue and profit.
Link with Society:
Marketing helps to establish link with society by different activities like advertising campaign, sells promotion and publicity. Marketing is an important means of communication between the firms and the society.
3) Importance of Marketing to the Society:
i) Provide Employment:
Marketing helps to provide employment to people in different sector like production, distribution, whole selling retailing, transportation, communication, advertising, ware house etc. Almost of the world`s population are engaged in marketing activity. Business is operated in continuously changing environment and employment opportunities in marketing are also increasing.
ii) Delivery of standard living:
Producer produce goods as per needs of consumers. Marketing provide information of these product through advertising and promotional campaign. Consumers get high quality goods which represent higher living standard.
iii) Protection from depression:
Depression is the state in an economy when there is excess supply than demand. Marketing assist in finding new market and supplying goods in the place where there is excess supply. Thus, marketing helps in removing depression aware from the economy.
iv) Increase Revenue of the Government:
Marketing is concerned about satisfying customers. This increase demand which in turn increase sells as the result revenue and profit also increase. The producer as well as employee can pay higher tax through higher income which increases revenue of the government.
v.Optimum utilization of resources
Marketing helps in proper utilization of natural, physical, financial human resources and means available in the society. Marketing plays an important role in the economic development of a country.
Concept of Marketing:
The Production Concept
The production concept is one of the oldest concept of marketing. This concept assumes that consumer will be bought those product and services that are easily available in the market. So, producer is concerned in producing goods at larger quantity and cover a wider distribution area. They also try to improve production efficiency so that, the cost of produced is reduced at easy affordable.
The Product Concept
The product concept of marketing assumes that consumer purchase those product and services that are of high quality, performance and uniqueness. So, business firm should focus on developing quality product, high production efficiency and continuously improving it.
The Selling Concept
The selling concept of marketing assumes that consumers won`t buy goods and services until and unless they are persuaded to do so. Different marketing tools like advertisement, publicity, sells promotion are used to sell goods in large volume. Producers sells what they make. They are not concerned about building long term satisfying relation with customers.
The New or Modern Marketing Concept:
The modern marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently. This concept of marketing focuses on customers’ satisfaction. It tries to build long term satisfying relation with customers and provide goods accordingly. It sales what it makes.
The Societal Marketing Concept:
Societal concept of marketing is newer concept of marketing. According to this concept the primary task of a business firm is to fulfil the needs wants and interest of a consumer with focus on consideration of society’s well-being. Extra use of resources, rapid population growth, environmental pollution, economic problems, social disharmony and gender inequality by the protection of women as sex symbols etc led to emergency of this concept of marketing. It tries to balance between customers’ satisfaction, societal well-being and companies profit maximization.
Marketing Mix:
Marketing mix refers to those marketing tools that assists organization to achieve its predetermined goals in a target market. It is the mixture of necessary elements of marketing to build successful exchange relationship. Marketing mix consists of following elements:
Product:
A product is one of the most important component of marketing mix. Product is anything that is offer by the marketer for customer’s satisfaction. It could be physical goods, services, ideas, events, information etc. It involves product planning and development. Product mix deals with product range, feature, design, colour, size, quality, packaging, grading, branding, etc.
Price:
Price is one of the major component of marketing mix. Price is the amount that customer pay to obtain product or use the service. Price determination is critical factor for marketers. It should be fixed in such a way that it meets purchasing power of customers and companies profit. The price of any product or service should be agreed with the quality of goods and services. It includes price level determination, the amount of discount and allowances establishing, pricing objectives grading policies terms and conditions and developing price strategies.
Place :
Place is also one of the important component of marketing mix. It is also known as distribution mix. The place mix includes selection of channels of distribution and physical distribution of goods and services. Physical distribution includes transportation, warehousing, inventory management, order processing, material handling etc. Distribution channel refers to the path through which products and services travel from the place of production to place of consumption. It includes selection of proper market, wholesalers and retailers.
Promotion:
Promotion is one of the important component of marketing mix. Promotion helps to create demand by informing customers about the goods available in the market and persuading them to buy. Promotion includes use of different advertising media, sells promotion, personal selling, publicity and public relation.
Importance of marketing mix:
The importance of marketing mix are mentioned below:
1.Co-ordination between business firm and customers:
Marketing mix serves as a link between business firm and its customers. It tries to satisfy customers. Thus, it helps in pursuing customer oriented marketing.
2.Increase in sale or profit:
Marketing mix satisfy customers. It helps in increasing volume of production and sales. The high volume of sales help to earn higher profit to the business firm. Marketing mix also helps to increase in national income.
3.Priorities to various elements of marketing system:
Marketing mix considers various element or marketing system i.e. product, price, place and promotion and establish balance relationship with them for example the price of product depends upon its features and branding, packaging, etc.
4.Customers’ satisfaction:
It is deriving more benefits from product in comparison to the cost paid for it. Since, companies provide high quality product at reasonable price, at right time and right place, customer needs are satisfy. This is done through efficient and effective distribution channel.
5.Provide Employment Opportunity:
Marketing mix helps to create employment opportunities in a society. Various jobs are created to engage people in marketing services such as retail and wholesale trade, transportation sector, communication and advertising sector salesmanship etc.
6.Social welfare:
Marketing mix promotes social welfare is comprised of ethnic and income groups. Consumers of all income group are benefited in one way or another. While determining marketing mix, marketing managers need to consider the welfare of the society.