SCOPE OF MARKETING

SCOPE OF MARKETING

Market is a place where buyers and sellers of commodity/ services interact. The scope of marketing in modern days covers besides goods and services, other entities like experiences, events, persons, places, properties, organizations, information and ideas. Marketing is a combination of business management and the philosophy of business.

MARKETING CONCEPT

Concept of Marketing is different from selling. Marketing is understanding the needs of the customer before he understands what he wants. A doubt may arise as to how we can penetrate in to the minds of customer to know what he wants? Here it is listening skill that enables a marketing person to understand the needs of the customer, i.e., if he allows more time to the customer to talk the mind set of the customer and his actual requirement/ risk apatite can be assessed and a suitable product can be suggested by sowing a seed of a need. Marketing is also difference between what the customer has and what the customer afford to buy. A sales person should explain the FAB -Features, Advantages and Benefits because ultimately the customer w ants Benefits only .

Many MNC products are sold even in rural market because of their understanding the needs of the customers, including rural area people, w ho m ay not afford to purchase 50 grams shampoo or 50 gram s tooth paste.

The MNC product manufacturers have customized the products to suit the requirement of these low income group people and started manufacturing Rs 6 /- soft drink, Rs 1 /- shampoo packet, Rs 5/- tooth paste etc. This is called actual marketing. Earlier day s the market is driven by Sellers/ Manufacturers. But now it is Buyer's market. Buyer is dictating w hat he w ants with specifications required for his Laptop or Mobile.

In view of increasing awareness among the customers and development of technology like Internet , Electronic and Print Media customers are able to think, judge and take a decision as to What to buy , How to buy , From whom to buy , Where to buy , and At w hat price to buy ?. Based on customer’s requirements, manufacturers are producing the goods. The following table clarifies striking difference between Marketing and Selling:

Marketing concept

1 . The starting point is the identification of customer needs before products are designed.

2 . Customer is the focal point of attention of the marketer.

3 . Marketing concept is outward looking.

4 . Marketing seeks to maximize customer satisfaction

Selling concept

1 . Products are designed on the basis of perceptions of the seller.

2 . Product is the focal point of attention of the seller.

3 . Selling concept is inward looking.

4 . Selling seeks to maximize Profits.

Types of market : Markets are classified into different types as furnished here under:

Geographical Area : Local market, Regional Market, National Market, World/global market

Product: Cotton/ Tea/ Share market/ Bullion market, capital market, real estate Market, retail loan market

Nature of transactions : Cash/ Spot Market , Futures Market, Commodity market

Volume of transactions: Retail Market (Small ticket loans/ products) and Wholesale Market (Big ticket advances/ Products)

7 P's of Marketing:

¤ For manufacturing Industry the four Ps are adopted in marketing like Place, Product, Promotion and Price. Whereas the service industry consists of other 3 Ps like Process, Physical evidence and People.

¤ Value Addition refers to increase in worth of a product or service as a result of a particular activity . In the context of marketing, the added value is provided by features and benefits over and above those representing the 'core product'.

¤ Marketing depends on Service Delivery System which is at present the striking difference between the Public Sector and Private Sector.

¤ Customers want to be called by name and wish to be recognized inviting him by name.

If Service delivery system is < expected level Customer Dissatisfaction

If Service delivery system is = expected level Customer Satisfaction

If service delivery system is > expected level Customer delight

¤ A study on service delivery system proved that 80% of the satisfied customers are

shifting their loyalty to some other organization. That means though the customers

are satisfied with the services, they are preferring to purchase their services from other

organization means, he/she is expecting delighted services. Delighted services means

services should be extended beyond the customer's expectations.

ADVERTISING

The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is 'to giv e public notice or to announce publicly'.

Sales process involves a process of (ODPEC) Opening a call, Developing a call, Proposing a right product, Eliminating doubts, if any, in customer's mind and Closing the call. Buying process consists of (AIDA) Attract, Interest, Desire and Action.

1 . Marketing seeks to maximize-

Ans. Customer Satisfaction

2 . Customization means-

Ans. Minimization of cost

3 . The four Ps of Marketing does not include-

Ans. Production

4. Different types of markets include-

Ans. Local market, Regional Market, National Market, World/ global market

5. As regards service, Customer is expecting-

Ans. Delighted services

6 . A m ix of the Four Ps of marketing is called-

Ans. Marketing Mix

7 . Data collected for the first time and for a specific purpose is called-

Ans. Primary Data

8. Data culled out from various sources, which w as already collected and com piled for some other purpose is called:

Ans. Secondary data

9 . The cheapest and best source of promotion channel is:

Ans. Word of Mouth

1 0. What is moment of truth?

Ans. Experience of the customer, good or bad, in a particular moment

11 . Buyers market means-

Ans. Buyers demanding the features of the product/services as per their requirements

1 2 . ‘Your dream s are not y ours alone’ is the slogan of-

Ans. Union Bank of India

13. EMI stands for -

Ans. Equated Monthly Installments

1 4 . Charging different prices for the same product is called -

Ans. Product differentiation

1 5. What is share of wallet?

Ans. Size of the wallet of customer, Capacity to invest in share market, How much a customer gains from bank/ organization, The share of an organization v is-a-v is total investment by the customer.

1 6 . What does the letter 'F' represents in FAB

Ans. Features

17. B2 B refers to-

Ans. Marketing activity directed from one business to another

1 8. What is co- branding?

Ans. Branding involving two or m ore products

1 9 . AIDA is said to be the customer buying process. What does AIDA stands for?

Ans. Attract, Interest, Desire, Action

2 0. ODPEC is said to be the sales process. ODPEC stands for:

Ans. Opening a call, Developing a call, Proposing (right product), Eliminating, Closing