Maharashtra Board Class 12 Organization of Commerce and Management Chapter 8 Marketing PDF Download

Marketing

8.1 Introduction

There is a cut throat competition in almost all walks of life and business is not an exception. It is difficult to survive on the basis of past performance in the product market. Innovative and variety of products are introduced in the market which gives lot of choices to the customers. It is difficult for the companies to retain consumers' loyalty. There are many sources like internet, television, newspapers etc. which are available for collecting necessary information about products and services. It makes very difficult for the businesses to retain and expand the brand in the minds of the customers.

Marketing is a part and parcel of modern day's life. Marketing is pervasive in nature and it affects our day-to-day life in every possible manner. Marketing is both an art as well as a science. Competitive environment motivates organizations to understand marketing as a discipline of management. In fact today marketing is regarded as most important of all management functions of business.

Need of marketing arises because of the increasing production and lower demand of goods and services over the years. Every organization wants to increase market share by presenting themselves different than their competitors. Marketing is important where the competition is very high. Marketing provides a competitive edge to business. It helps to gain loyal customers through implementing good marketing plan. Convincing somebody to do something or not to do something is a part of marketing.

Teacher's Note

Marketing is everywhere in our life. When a shop owner puts attractive things in his window to make people buy, that is marketing. Just like how a vegetable seller calls out "Fresh vegetables!" in the market, that is also marketing.

Exam Trick

Remember: Marketing = Creating Need + Telling People + Making Them Buy. Think of how Maggi noodles ads show happy families eating together - they are not just selling noodles, they are selling happiness!

Points to Remember

Marketing helps businesses survive in tough competition.
Marketing makes products known to people.
Marketing is both a science and an art.
Good marketing creates loyal customers.

8.2 Meaning And Definition

Marketing is a key function of modern management. We are exposed to marketing of products and services and ideas almost every day. Study of marketing plays an important role as everyone of us performs marketing activities in one or the other form. Marketing has different meanings based on audience, media platform and business in changing market.

Definition:

Therefore, marketing is defined in many ways as stated below:

1) American Marketing Association: "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."

2) Philip Kotler: "Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others".

3) World Marketing Association: "Marketing is the core business philosophy which directs the processes of identifying and fulfilling the needs of individuals and organizations through exchanges which create superior value for all parties."

Teacher's Note

All these definitions are saying the same thing in different words: Marketing is about understanding what people want and giving it to them. When a teacher explains a topic in different ways so all students understand, that is like marketing - the message is the same but said in different ways.

Exam Trick

Remember: American Marketing Association definition has 4 words - creating, communicating, delivering, exchanging. Memorize these 4 words and you can answer any question about marketing definition!

Points to Remember

Marketing is about creating value for customers.
Marketing includes communicating with people about products.
Marketing means exchanging goods for money fairly.
Marketing focuses on customer needs and wants.

8.3 Concept Of Market

To understand 'marketing' it is necessary to understand the concept of 'market'.

The term market is derived from the Latin word 'mercatus', which means 'to trade', 'to trade merchandise' or 'a place where business is transacted'. In simple words market is the place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers. The transaction of buying and selling takes place with exchange of money.

There are many concepts associated with the word 'market' and according to the concept, different definitions of the term market are given below:

1) Place Concept Of Market

The term market is commonly understood as the place where transaction of buying and selling of goods and services takes place in exchange of money or money's worth. It is the place where buyers, sellers and other intermediaries come together and exchange goods or services. In olden days, place played an important role in defining market. But in the age of information technology the term 'market' has wider meaning than just a place.

2) Commodity Concept Of Market

In the commodity concept of market, emphasis is given on 'buying and selling of goods or services'. In this concept the process of buying and selling of goods or services is important and not the place of exchange. In this process buyer and seller as well as the commodity exchanged among them plays an important role.

3) Exchange Concept Of Market

Exchange concept of market has given emphasis on exchange of goods or services between buyer and seller with free consent as well as mutual trust. There should not be any Fraud or Misrepresentation or Coercion or undue influence during the exchange. The exchange should be voluntary between buyer and seller.

4) Area Concept Of Market

The area concept of the market is related to exchange concept. This concept gives emphasis on free association between buyers and sellers to fix the price of goods for buying and selling. The price fixed between buyer and seller implies in the certain area only. In this concept it is not necessary for buyer and seller to meet in person. For fixing the price buyers and sellers can regularly take the help of different modern communication media and exchange goods or services.

5) Demand Or Customer Concept Of Market

Customer is the king of the market. One of the important perspectives of the market is to assess the need or demand of the customer. Market can be studied from the perspective of demand or customer. According to this concept, the aggregate demand by potential buyers for any product is market.

6) Space Or Digital Concept Of Market

Emergence of Information Technology gave birth to the new concept of the market called as Space or Digital Concept. New and sophisticated E-Commerce Portals and Mobile Applications make the buying and selling easy and convenient for buyers as well as sellers. The communication media like telephone, mobile, computer, Internet etc. have made direct contact between customer and seller. It is easy for the customers to know about quality, features, price, terms and conditions etc. of any products of any company.

Digital Market can be defined as "Market which uses Information Technology for buying and selling of the products or services and facilitate communication of quality, features, price and terms of exchange among them"

Teacher's Note

In India, we see all these market concepts working together. A vegetable market in your neighbourhood is a physical place concept. When you order things online from Amazon, that is digital concept market. Both are markets!

Exam Trick

Remember: Old market = Physical place (like the sabzi mandi). New market = Digital (like Flipkart). The concept of market has changed with technology.

Points to Remember

Market comes from the Latin word 'mercatus' meaning to trade.
Place concept is about physical location like a bazaar.
Commodity concept focuses on the goods being bought and sold.
Digital concept uses technology like phones and internet.
Customer concept means any place where buyers want to buy.

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