Marketing is a vital business function that goes beyond selling, focusing on creating value for customers and society. Procter & Gamble (P&G) exemplifies this by leading in sustainable practices, like introducing recycled plastic bottles and concentrated products, enhancing brand strength through social responsibility.
Example: P&G’s environmental initiatives, such as refill packages, build customer trust and promote sustainable development.
Marketing involves business activities that direct the flow of goods and services from producers to consumers. It’s a social process where individuals exchange products/services for value, as defined by Philip Kotler: “a social process by which individuals obtain what they need and want through creating and exchanging products and services of value.”
Features:
Example: A fashion designer creates a dress, offering it at ₹5,000 in exclusive stores, targeting buyers who value its style.
Marketing is broader than selling, encompassing planning, pricing, promotion, and distribution to satisfy customer needs. Selling focuses on transferring product ownership through promotion techniques like advertising and salesmanship.
| Aspect | Marketing | Selling |
|---|---|---|
| Scope | Includes planning, pricing, promotion, distribution | Limited to promotion and sales |
| Focus | Customer needs and satisfaction | Product transfer for cash |
| Activities | Product design, market research, branding | Advertising, salesmanship, incentives |
Example: A TV manufacturer plans models, sets prices, and selects outlets (marketing), while salespeople promote it to buyers (selling).
Marketing philosophies guide a firm’s efforts, evolving over time:
| Philosophy | Starting Point | Main Focus | Means | Ends |
|---|---|---|---|---|
| Production | Factory | Quantity | Availability, affordability | Profit via volume |
| Product | Factory | Quality, features | Product improvements | Profit via quality |
| Selling | Factory | Existing product | Selling, promotion | Profit via sales volume |
| Marketing | Market | Customer needs | Integrated marketing | Profit via satisfaction |
| Societal | Market, society | Customer needs, social welfare | Integrated marketing | Profit via satisfaction, social welfare |
Example: P&G’s societal marketing includes eco-friendly products, balancing customer needs with environmental concerns.
Example: A TV news channel uses SMS polls to gather viewer preferences, aiding content planning.
Example: In India, word-of-mouth from peers influences car purchases, highlighting marketing’s social role.
Marketing mix comprises four elements (4 Ps) to achieve marketing objectives:
Example: Hindustan Lever’s Close-Up toothpaste is branded, priced competitively, distributed via retailers, and promoted through ads.
Consumer Products: Purchased for personal use, classified by shopping effort and durability.
Industrial Products: Used in production, classified as:
Example: Amul’s butter (consumer, convenience) vs. Tata Steel’s steel (industrial, material).
Branding: Assigning a name/symbol to differentiate products (e.g., Bata, Lifebuoy). Good brand names are short, suggestive, distinctive, and legally protectable.
Packaging: Designing containers/wrappers. Levels: primary (e.g., toothpaste tube), secondary (e.g., cardboard box), transportation (e.g., corrugated boxes).
Functions of Packaging: Product identification, protection, convenience, promotion.
Labelling: Tags/graphics on packages, describing contents, identifying brands, grading products, promoting sales, and providing legal information.
Example: Maggie’s Noodles’ packaging and vibrant label enhance identification and appeal.
Example: A drug priced at ₹20/strip may be regulated to prevent charging ₹200, balancing cost and public interest.
Distribution channels involve intermediaries (wholesalers, retailers) to deliver products to consumers. Types include:
Factors Determining Choice: Product nature, market size, costs, control, and intermediary efficiency.
Example: Tea from Assam reaches Tamil Nadu via wholesalers and retailers (two-level channel).
Advertising: Paid, impersonal communication via media (e.g., newspapers, TV).
Personal Selling: Face-to-face communication to persuade buyers.
Sales Promotion: Short-term incentives (e.g., discounts, free samples).
Publicity: Non-paid, credible communication via media (e.g., news about a water-powered car engine).
Public Relations: Manages organizational image via publicity, press releases, corporate communication, lobbying, and counseling.
Example: A carmaker’s “₹10,000 discount” campaign (sales promotion) boosts sales, while a news feature on its eco-friendly engine (publicity) enhances credibility.
Short Answer Type: Question: What is marketing? What functions does it perform in the process of exchange of goods and services? Explain.
Answer: Marketing is a social process directing the flow of goods/services from producers to consumers, satisfying needs through exchange. Functions include gathering market information, planning, product design, standardisation, packaging, branding, customer support, pricing, promotion, distribution, transportation, and warehousing, ensuring efficient exchange and customer satisfaction.
Marketing directs goods/services from producers to consumers, satisfying needs via exchange. It’s broader than selling, involving planning, pricing, and distribution. Marketing management philosophies (production, product, selling, marketing, societal) guide efforts, with the societal concept balancing customer and social welfare. Functions like market research, branding, and promotion ensure customer satisfaction. Marketing boosts firm profits, economic growth, and living standards. The marketing mix (product, price, place, promotion) creates value. Products are consumer (convenience, shopping, speciality, durable/non-durable, services) or industrial (materials, capital items, supplies). Branding, packaging, and labelling differentiate products. Pricing considers costs, demand, and competition. Distribution channels (direct, one-level, two-level) and promotion tools (advertising, personal selling, sales promotion, publicity, public relations) ensure market reach and persuasion.