Nature and importance of

Nature and importance of

Meaning of market An actual or nominal place where forces of demand and supplyoperate, and where buyers and sellers interact (directly or through intermediaries) to tradegoods, services, or contracts or instruments, for money or barter.

Markets include mechanisms or means for • (1) determining price of the traded item, • (2) communicating the price information, • (3) facilitating deals and transactions, and • (4) effecting distribution. The market for a particular item is made up of existing and potential customers who need it and have the ability and willingness to pay for it.

Definitions : According to American Marketing Association ,”At every point at which a specific commodity is concentrated for sale a market is found .” According to Carnot, "economists understand by the term market not any particular place in which things are brought and sold but the whole of any region where buyers and sellers are in such free intercourse with one another that the price of the same goods tends to equality, easily and quickly.”

Classification of markets market Commodity markets Capital markets Money market Produce market Share market Manufactured goods market Foreign market Bullion market

commodity markets relate to the purchase and sale of goods. Goods may be divided into two categories :- Commodity markets :- Consumer goods : Consumer goods are those goods which are required for consumption by consumers. Producer goods : Producer goods are those goods which are required by manufacturers for producing more goods.

1. Produce markets It deals in agricultural products such as wheat, rice, cotton , maize etc. The products dealt in these markets are either required for producing further goods or for consumption. Examples : cotton exchanges of Bombay and Liverpool. Jute exchange of Calcutta.

2. Manufactured goods market These are the markets where Manufactured and semi – manufactured goods are purchased and sold. The commodities like sugar, clothes,leather,yarn etc, are traded in these markets. Example : sugar exchange of Liverpool Leather exchange of Kanpur

3.Bullion markets These markets deal in the trade of precious metals like gold, silver etc. These markets are sensitive and influenced by important happenings in the world. Example :- bullion markets of Bombay, Calcutta, Kanpur and Delhi.

Capital market :- The capital market is a market for financial assets whichhave a long or indefinite maturity. The capital market instruments become mature for the period above one year.It is an institutional arrangement to borrow and lend money for a longer period of time. It consists of financial institutions like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of lenders in the capital market. Capital market provides long term debt and equity finance for the government and the corporate sector.

1. Money market Money market are those institutions which provide short term funds to the business. Lenders, borrowers and middlemen are the important constituents of money markets. The middlemen bring together the lenders and borrowers. The price for lending money is interest which borrowers pay to lenders.

2. Share market :- These are the organised markets for purchase and sale of stocks, shares and debentures . Joint stock companies get their shares and debentures registered in these exchanges and investors trade in these securities . Stock exchanges are important centers of channelising investments. Example : the exchanges of Bombay, Calcutta, madras , Delhi and Ludhiana.

Foreign exchange market These markets trade in foreign currencies. They deal in purchase and sale of foreign exchange. The international trade is greatly helped by foreign exchange markets. These markets help in settlement of foreign debts. Example : New York and London are important foreign exchange markets in the world . In India foreign exchange markets are at Calcutta, Bombay, Madras and Delhi.

Marketing is "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.“ it is "the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return". Marketing is used to identify thecustomer, satisfy the customer, and keep the customer it is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

Marketing is the managementprocess through which goods and services move from concept to the customer. As a practice, it consists in coordination of four elements called 4P's: (1) identification, selection, and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer's place, and (4) development and implementation of a promotional strategy.

What can be marketed ?

Approaches to marketing • old approach to marketing : =>views marketing as sum total of physical activities involved in movement of goods from the producers to the ultimate consumers. =>lays emphasis on the selling activities that are undertaken only after goods have been manufactured . = >consists of all efforts which effect transfer in ownership of goods and care for their physical distribution.

OLD APPROACH TO MARKETING ( SALES CONCEPT) ENDS FOCUS MEANS PRODUCT SELLING AND PROMOTING PROFIT MAXIMISATION THROUGH SALES VOLUME

2.New or modern approach to marketing :- =>recoganised that marketing process begins long before the goods go into production and it does not end with the final sale . =>needs of the customers are identified , studied and analysed . =>involves all efforts to create customers for the products and provide maximum satisfaction to them.

NEW OR MODERN APPROACH TO MARKETING FOCUS MEANS ENDS MAXIMISATION OF PROFITS THROUGH SATISFACTION CUSTOMER NEEDS INTEGRATED MARKETING

MARKETING CONCEPT The modern approach to marketing is referred to as the marketing concept. Main essence of marketing concept is that the customer and not the product is the centre of entire business. This concept explains the rationale for a firm’s existence in terms of its ability to satisfy some aspects of consumer needs and recognise main purpose of business as to ‘ create a customer’

Main aim is customer statisfaction not the product selling

DEFINITIONS BY KOLTER - “The marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfy organisational goals “ BY LAZO AND CORBIN- “ Marketing concept is the recognition on the part of management that all business decisions of a firm must be made in the light of customer needs and wants “

DISCUSSION OF ABOVE DEFINITIONS BRINGS OUT FOLLOWING FACTS : • Customer satisfaction guides the whole system ; • To work together to do a better job ; • Maximisation of profits through customer satisfaction; • A firm has determine actual needs , wants and preferences of customers .

IMPLEMENTING MARKETING CONCEPT

Consumer focus • main focus of the enterprise should be on customer while implementing marketing concept . A variety of factors affect customer satisfaction like product quality , product availability and after – sales support such as warranties and services . Organisation must determine what customers need and want and then develop product that satisfy those needs. main focus on consumer needs and their satisfaction

Besides consumer the firm should also focus on profitability for its existence , growth and stability . Profit is also essential to ensure continuity of managerial efforts to solve select consumer problems success of firm is associated with amount of profits it gets for business . Profits are reward of managerial efforts directed towards creating and delivering consumer satisfaction profiteering

Innovation – • It helps in devising suitable and better products for the consumers . efforts are made to change existing product for making it more useful , changing the product itself for creating a better one . innovations may also help in finding new use for old product , improvement in design or even in marketing technique . so innovation is essential for implementing marketing concept in an organisation

Research base of decisions • Marketing decisions should be based on marketing research and not on intuition . Marketing concept requires that needs of Consumer should be assessed before planning a product . Marketing research will identify consumer needs and marketing opportunities with profit potential . The marketing feedback will help in assessing consumer reactions and social reactions to firm ‘s marketing programme . Research will help in taking proper and timely decision for implementing marketing concept.

BRODENED FUNCTIONAL BASE The traditional marketing concentrated on production and delivering of goods to the consumer or users . The function of selling , pricing , advertising and physical distribution were performed by the firms . The marketing concept focus on consumer needs and their statisfaction . The function such as marketing research , product planning etc are also added to traditional functions

Integration of marketing functions • Beside broadening the functional base of marketing , there is a need to integrate these functions . The integration involves organisation of all marketing function in a such a manner that it result in their total integration and co-ordination from the conception of a new product to its consumption by the ultimate user . According to CASCINO , all marketing functions should be put under a separate marketing department , different marketing executives should be responsible for different functions.

Benefits of marketing concept • There is total change in the philosophy in business , customer needs, want and desires receive top consideration in all business activity ; • More emphasis is given on research and innovation; • Greater attention is given to the product planning and development ; • Many changes in the product designs are introduced ; • Marketing research becomes an integral part of marketing process and a managerial tool in decision making ;

PRODUCTION CONCEPT • This concept laid emphasis on production and assumes that consumers will always respond to products that are made available to them. this concept developed when there is a period of manufacturing dominance and there was no competition. It was producers market and hence production problems were of more importance than anything else . The major task of the management was to strive constantly to increase production and there was no selling or marketing problems This concept may boost the sales in the initial stages but it invites the criticism that it is impersonal in its approach and ignores the interests of the consumers .

Product concept With passage of time , it realised that it is not only the quantity of production but also the quality of the product that is important. The product concept assumes that the consumer will respond favorably to the best quality products that’s are reasonably priced and hence major task of the management is to improve the quality of the product it offers to successfully attract and hold customers.

The selling concept assumes that consumer will generally not buy enough of the firm’s products unless there interest is stimulated in its products through substantial selling and promotional activities . In this concept focus is on the product , the means are selling and promotional and the objective is maximisation of profits through sales volumes . MAIN DRAWBACKS OF THIS CONCEPT IS IT INGROES CONSTOMER’S INTEREST AND A FIRM WHICH FOLLOWS THIS CONCEPT MAY FACE DIFFICULTIES IN THE LONG RUN.

APPROACHES TO THE STUDY OF MARKETING marketing is the process of selling something at a market place or at a shop. Some persons thought market as the study of individual commodities and their movement in the market place , some think it as study of institutions and persons who move the product , other take it as study of the behaviour of product movements and the way persons involved move them . Marketing is now concerned with anticipating needs and directing the flow of goods and services from producers to consumers .

Commodity approach In this approach the main focus is on a specific commodity , say sugar , rice , wheat , automobile etc . The subject matter of discussion centers around the specific commodity selected for study . The marketing situations of the commodity selected for study is examined from the view point of sources and conditions of supply , nature and extent of demand , the distribution channels used for supply of commodity , the functions such as buying , selling , advertising , storage , financing etc .

Institutional approach Institutional approach has been associated with authors like COX , NYSTORM. In this approach focus on various middleman and facilitating agencies . the study includes their position in the distribution channels , the purpose for their existence and the various function performed by them . For example when we are to study the wholesalers , we will study the type of function undertaken by them , the services rendered to producers and retailers , the mode of undertaking various activities , method of financing , and problem faced and steps which may help in improving their role

functional approach This approach concentrates on the different functions performed in the process of marketing the product and services . Each function is analysed in the relation to the importance of its performance . The function is related to marketing are buying , selling , financing , risk bearing , transportation etc. by studying and analysing each function and understanded the problems related to them , it will be possible to understand marketing properly . These functions are also studied in relation to given commoditied and marketing institutions in terms of their nature , costs , importance and problems .

Managerial approach In this approach the emphasis is on the decision making process involved in the performance of marketing functions at the level of a firm . Various underlying concepts such as decision influencing factors , alternatives strategies and techniques and methods of problem solving are studied . In managerial approach the thrust is on those functions which are involved in the flow of goods and services from producers to consumers .

system approach This a recent approach and is based on von Bartalanffy ‘ s general theory . He defined system as a “ set of objects together with the relationships among them and their attributes “. System approach assumes the interrelationships and inter connections among components of a marketing system in which products , services , equipment , money and information flow from marketers to consumers. These flows have an impact on the survival or growth capacities of a firm .

Societal approach This approach was born out of criticism of the business that it is more concerned with its profit and expansion and ignores the need and concerns of the society . the focus of the study in societal approach is the interaction between the various environment factors such as legal , political , cultural and impact of marketing decisions on well being of society .

MARKETING AND SELLING • Marketing is not selling , nor is it a sophisticated word for selling but more comprehensive and could be termed as the COCKTAIL SCIENCE .

Advantages of Marketing • Marketing widens the market . • Marketing facilitates exchanges in the ownership and possession of goods and services . • Marketing helps in optimal utilisation of resources . • Marketing accelerates other activities . • Marketing increases the national income . • Marketing raises the standard of living . • Marketing provides gainful employment opportunities . • Marketing stabilses the economic conditions . • Marketing acts as a basis for making decisions . • Marketing provides maximum satisfaction of human wants .

Meaning of Marketing Management

The term marketing management refers to planning , organising , directing and controlling of persons and activities engaged in the marketing division of a business enterprise.

THE AIMS OR OBJECTIVES OF MARKETING MANAGEMENT : • Achieving higher productivity in its marketing operations • Making optimum use of the available resources • Enhancing the profitability of the enterprise • Providing maximum consumer satisfaction • Raising of standard of living of the people • Satisfaction of consumer wants

Meaning of marketing Management MARKETING MANGEMENT ; Is Practical application of marketing techniques and the management of a firm's resources and activities.

Nature and importance of