MEANING AND SCOPE OF MARKETING FOR NTA-NET-UGC COMMERCE AND MANAGEMENT

• NTA-NET-UGC COMMERCE AND MANAGEMENT
  MARKETING MANAGEMENT
  LECTURE 1
  MEANING OF MARKET

• THE WORD MARKET HAS BEEN DERIVED FROM LATIN WORD “MARCATUS” WHICH REFERS TO PLACE OF TRADE OR A PLACE WHERE BUSINESS IS CARRIED ON. IN COMMON USAGE THE WORD MARKET REFERS TO A PLACE WHERE GOODS ARE PURCHASED AND SOLD LIKE VEGETABLE MARKET,CLOTH MARKET ETC
• IN SIMPLE WORD.IT REFERS TO PLACE WHERE ACTUAL BUYERS AND SELLERS MEET TO EFFECT PURCHASES AN SALES.
• THE TERM MARKET DOES NOT ONLY MEAN A PARTICULAR PLACE WHERE GOODS ARE BOUGHT AND SOLD BUT THE WHOLE OF ANY REGION IN WHICH BUYERS AND SELLERS PURCHASE AND SELL
• MARKET MEANS ANY BODY OF PERSONS WHO ARE IN INTIMATE BUSINESS RELATIONS AND CARRY ON EXTENSIVE TRANSACTION IN ANY COMMODITY.
• EVOLUTION OF MARKETING
• THE FUNDAMENTAL REASON WHY MARKET AND MARKETING DEVELOPED :

1. SCARCITY OF RAW MATERIALS
2. SPECIALIZATION OF LABOUR
3. CONSUMER SATIATION

·         TRIBES OF DIFFERENT TYPES LIVED IN VERY DIFFERENT GEOGRAPHICAL LOCATIONS. THE TRIBES BEGAN PROCESSING THE AVAILABLE RAW MATERIALS AND TRADING BETWEEN THEM. ADDING VALUE BY PROCESSING RAW MATERIALS,INVENTING NEW PRODUCTS,PRODUCING THEM,DISTRIBUTING THEM AND TRADING THEM SUCH MARKETING ACTIVITIES EVOLVED SLOWLY.

·         IN 1700 THE ECONOMISTS ADAM SMITH GAVE GUIDELINES TO THE BRITISH GOVERNMENT ON HOW TO COMPETE IN NEW GLOBAL MARKET PLACE BEING CREATED BY INDUSTRIAL REVOLUTION,EMPHASIZING THE BENEFITS OF LABOUR SPECIALIZATION PARTICULARITY IN TEXTILE MANUFACTURE

• WHAT ADAM SMITH GIVEN IN HIS BOOK,THE WEALTH OF NATIONS IS STILL RELEVANT TODAY. THE LEARNING PROCESS OR SPECIALIZATION OF LABOUR OCCURS IN ALL ORGANIZATION AND CONTRIBUTES TO SKILL DEVELOPMENT.
• TRADING EVOLVED SPONTANEOUSLY AND THRIVED BECAUSE OF CUSTOMER NEED,WANTS,DESIRES AND PREFERENCES FOR VARIETY OF PRODUCTS
• THE HISTORICAL EVOLUTION OF MARKETING IS FOUND TO HAVE MOVED THROUGH DIFFERENT SATGES:

1. PRODUCTION ERA:-BASE ON PHILOSOPHY THAT GOOD PRODUCTS AT AFFORDABLE PRICE WILL SELL BY IT SELF
2. SELLING ERA:-FIND CUSTOMERS FOR UNSOLD INVENTORIES
3. MARKETING ERA: IDENTIFY THE CUSTOMER NEEDS AND SATISFY THE CUSTOMER NEEDS
4. RELATIONSHIP ERA:-STRESSED CUSTOMER ORIENTED,VALUE AND POTENTIAL OF CUSTOMER RETENTION AND LONG TERM RELATIONSHIP

• MARKETING IN MODERN TIMES
• MARKETING IN MODERN TIMES MEANS LEARNING FROM CUSTOMERS.LISTENING TO CUSTOMERS AND TRANSFORMING THE ORGANIZATION AROUND THE CUSTOMERS
• AS C.K PRAHALAD ,FUTURE LIES IN CO –CREATION –A PROCESS WHERE COMPANIES AND THEIR CUSTOMER WILL COLLABORATE TO COME WITH PRODUCTS AND SERVICES
• IN THE PRESENT HIGHLY COMPETITIVE ECONOMY ,CAN BE CALLED BUYER’S MARKET,IT IS THE CUSTOMER WHO WIELDS FULL POWER. HE CAN MAKE OR WRECK A COMPANY.
• SLOGAN IS SERVE THE CUSTOMER OR DELIGHT THE CUSTOMER
• COMPANIES HAVE TO FULLY CUSTOMER ORIENTED TO SUCCEED IN THE PRESENT COMPETITIVE SCENARIO AND SHOULD THINK CUSTOMER,SMELL CUSTOMER AND BUILD CUSTOMER RELATIONS.
• MEANING OF MARKETING
• IN SIMPLE WORDS WE CAN SAY THAT
• MARKETING IS MANAGING PROFITABLE CUSTOMER RELATIONSHIP. THE TWO FOLD GOALS OF THE MARKETING :-

1. ATTRACTING NEW CUSTOMERS BY PROMISING SUPERIOR VALUE
2. TO KEEP AND GROW CURRENT CUSTOMERS BY DELIVERING SATISFACTION.

·         TODAY MARKETING MUST BE UNDERSTOOD NOT IN THE OLD SENSE OF MAKING A SALE –TELLING AND SELLING BUT IN NEW SENSE SATISFYING CUSTOMER NEEDS.

·         PETER DRUCKER,” THE AIM OF MARKETING IS TO MAKE SELLING UNNECESSARY.SELLING AND ADVERTISING ARE ONLY A PART OF A LARGER MARKETING MIX-A SET OF MARKETING TOOLS THAT WORK TOGETHER TO SATISFY CUSTOMER NEEDS AND BUILD CUSTOMER RELATIONSHIP.

• TRADITIONALLY MARKETING REFERS TO THE PERFORMANCE OF BUSINESS ACTIVITIES IN SUCH A WAY THAT IT FACILITATES FLOW OF GOODS AND SERVICES FROM THE PRODUCERS TO THE CONSUMERS.
• MODERN CONCEPT IS VERY WIDE:
• ACCORDING TO PHILIP KOTLER,” MARKETING MANAGEMENT IS THE ART AND SCIENCE OF CHOOSING TARGET MARKETS AND BUILDING PROFITABLE RELATIONSHIP WITH THEM. THIS INVOLVES GETTING,KEEPING AND GROWING CUSTOMERS THROUGH CREATING,DELIVERING AND COMMUNICATING SUPERIOR VALUE. THUS MARKETING MGMT INVOLVES MANAGING DEMAND WHICH IN TURN INVOLVES MANAGING CUSTOMER RELATIONSHIPS.
• MEANING AND DEFINITION OF MARKETING
• PHILIP KOTLER :- MARKETING IS A SOCIAL PROCESS BY WHICH INDIVIDUALS AND GROUP OBTAIN WHAT THEY NEED AND WANT THROUGH CREATING, OFFERING, AND FREELY EXCHANGING PRODUCTS AND SERVICES OF VALUE WITH OTHERS.
• THE AMERICAN MARKETING ASSOCIATION DEFINES:-

·         “ MARKETING IS AN ORGANIZATIONAL FUNCTION AND SET OF PROCESSES FOR CREATING, COMMUNICATING AND DELIVERING VALUE TO CUSTOMERS AND FOR MANAGING CUSTOMER RELATIONSHIP IN WAYS THAT BENEFIT THE ORGANIZATION AND ITS STAKEHOLDERS.

• MARKETING IS THE PROCESS BY WHICH COMPANIES CREATE VALUE FOR CUSTOMERS AND BUILD STRONG CUSTOMER RELATIONSHIP IN ORDER TO CAPTURE VALUE FROM CUSTOMERS IN RETURN
• MAJOR MARKETING OBJECTIVES

1. TO SATISFY THE CUSTOMER
2. TO INCREASE PROFITS FOR THE GROWTH OF THE BUSINESS
3. TO GENERATE CUTOMER BASE FOR BUSINESS
4. TO DETERMINE MARKETING MIX
5. TO INCREASE THE QUALITY OF LIFE

• KEY CUSTOMER MARKETS

1. CONSUMER MARKETS:- COMPANIES SELLING MASS CONSUMER GOODS AND SERVICES. SPEND DEAL OF TIME ESTABLISHING A STRONG BRAND IMAGE BY DEVELOPING A SUPERIOR PRODUCT,PACKAGING AND BACKING IT WITH ENGAGING COMMUNICATION AND RELIABLE SERVICE.
2. BUSINESS MARKETS:-COMPANIES SELLING BUSINESS GOODS AND SERVICES OFTEN FACE WELL INFORMED PROFESSIONAL BUYER SKILLED AT EVALUATED COMPETITIVE OFFERING
3. GLOBAL MARKETS: MUST DECIDE WHICH COUNTRIES TO ENTER AND HOW TO ENTER,HOW TO ADAPT AND HOW TO PRICE
4. NON PROFIT AND GOVERNMENT MARKET:- COMPANIES SELLING TO NON PROFIT ORGANIZATION WITH LIMITED PURCHASING POWERS. GOVERNMENT CALLS FOR BID.

• MEANING OF MARKET PLACES,MARKET SPCAE AND META MARKETING
• MARKET PLACE IS PHYSICAL SUCH AS STORE ONE SHOP IN
• MARKET SPACE IS DIGITAL AS ONE SHOP ON THE INTERNET.
• META MARKETING FIRST COINED BY E.J KELLY
• MOHAN SAWHNEY HAS PROPOSED THE CONCEPT OF A META MARKET TO DESCRIBE A CLUSTER OF COMPLEMENTARY PRODUCTS AND SERVICES CLOSELY RELATED IN THE MINDS OF CONSUMERS BUT SPREAD ACROSS A DIVERSE SET OF  INDUSTRIES.
• THE AUTOMOBILE META MARKET CONSISTS OF AUTOMOBILE MANUFACTURER,NEW AND USED CAR DEALERS,FINANCING COMPANIES,INSURANCE COMPANIES,MECHANICS,SPARE PARTS DEALERS,SERVICE SHOP,AUTO MAGAZINES,CLASSIFIED AUTO ADS IN NEWSPAPERS AND AUTO SITES ON THE INTERNET.
• MEANING OF META MARKET
• A META MARKET PLACE WILL BRING ALL BUYERS AND SELLERS AT ONE PLACE FOR ONE PURPOSE. INSTEAD OF GIVING MULTIPLE PRODUCTS TO ONE CUSTOMERS, A META MARKET BRINGS TOGETHER DIFFERENT CUSTOMERS WHO NEED NOT NECESSARY DIFFERENTIATE BETWEEN CLOSELY RELATED PRODUCTS.
• FOR EXAMPLE A CAR SELLING IN A META MARKET WOULD BE WEBSITE THAT SELLS CAR,BUT ONE COULD FIND CAR PARKS,COLORS FOR CARS ,SPARE PARTS ETC
• WHAT IS MARKETED ( SCOPE OF MARKETING)

1. GOODS:-PHYSICAL GOODS CONSTITUTE THE BULK OF MOST COUNTRIES PRODUCTION AND MARKETING EFFORTS.
2. SERVICES:- SERVICES INCLUDE THE WORK OF AIRLINES,HOTELS,CAR RENTAL FIRMS,BARBERS AND BEAUTICIANS,MAINTENANCE AND REPAIR PEOPLE,BANKERS,LAWYERS ETC MANY MARKET OFFERING MIX GOODS AND SERVICES SUCH AS FAST FOOD MEAL
3. EVENTS:PROMOTE TIME BASED EVENTS SUCH AS MAJOR TRADE SHOWS,ARTISTIC PERFORMANCE,OLYMPICS,WORLD CUP ETC
4. EXPERIENCES:-BY ORCHESTRATING SEVERAL SERVICES AND GOODS A FIRM CAN CREATE STAGE AND MARKET EXPERIENCES. AMUSEMENT PARK OR A WATER PARK CUSTOMERS ENJOY THE THRILL PROVIDED BY THESE EXPERIENCES. THEME BASED RESTAURANT
5. PERSONS:-ARTISTS,MUSICIANS,HIGH PROFILE LAWYERS AND OTHER PROFESSIONAL ALL GET HELP FROM CELEBRITY MARKETER
6. PLACES:-CITIES,STATES,REGIONS AND WHOLE NATIONS COMPETE TO ATTRACT TOURISTS,RESIDENTS,FACTORIES ETC
7. PROPERTIES:-PROPERTIES ARE INTANGIBLE RIGHTS OF OWNERSHIP TO EITHER REAL PROPERTY OR FINANCIAL PROPERTY.INVESTMENT COMPANY AND BANKS MARKET SECURITIES TO BOTH INSTITUTIONAL AND INDIVIDUAL INVESTORS.
8. ORGANIZATION:-WORK TO BUILD A STRONG FAVORABLE AND UNIQUE IMAGE IN THE MINDS OF THE TARGET MARKET

9. INFORMATION: INFORMATION IS ESSENTIALLY WHAT BOOKS SCHOOLS AND UNIVERSITIES PRODUCE,MARKET AND DISTRIBUTE AT PRICE TO PARENTS,STUDENTS AND COMMUNITIES
10. IDEAS : EVERY MARKET OFFERING INCLUDE A BASIC IDEAS. CHARLES REVSON OF REVLON ONCE OBSERVED THAT IN THE FACTORY WE MAKE COSMETIC IN THE DRUGSTORE WE SELL HOPE. LIKE MARKETER HAS IMPORTANT ROLE CREATING AWARENESS FOR AIDS,FAMILY PLANNING ETC