Definition of Market
Market is the interaction between buyer and seller.
Definition of Marketing According to William Stanton, "Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying goods and services to the benefit of present and potential customers."
Parts of Marketing 1.
Marketing Research - Understanding the needs and Wants of the Customers.
2. Product Planning
3. Production
4. Sales
5. Customer Care
6. Advertising
7. Pricing
8. Distribution Objectives of Marketing 1. Profitability and Growth (a) achieve long-term goals of profitability and growth by satisfying the wants of customers.
(b) modern marketing begins and ends with customers.
2. Creation of Demand (a) first purpose of marketing is to create demand.
(b) marketing needs to find out the needs and preferences of customers.
3. Market Share (a) Every business firm seeks to attain a resonable share of the total demand.
(b) Good quality products and services at resonable rates.
4. Goodwill (a) Marketing aims at building the good reputation.
(b) selling quality products at resonable prices.
5. Standard of living (a) providing better quality products.
(b) supplying new and better quality products
(c) creating more employment opportunities.
6. Customer Satisfaction (a) Modern marketing is customer oriented.
Difference between Marketing and Sales The main points of difference between marketing and selling are as follows
1. Scope : Selling involves exchange of goods for money between the sellers and buyers. Marketing is a wider term. It includes not only selling but other activities such as marketing research, product planning and development and advertising.
2. Focus : Selling focuses on the needs of the seller, and marketing, on the needs of the buyer. Under marketing, needs of customers are determined first and then suitable products are developed to satisfy their needs.
3. Begining and End : Selling begins after the products are manufactured and comes to an end with their transfer to the buyer. Marketing begins before production and continues after the sale.
4. Orientation : Selling is internally oriented while marketing is externally oriented.
5. Demand Creation : Selling presupposes the existence of demand for the firm's product. On the other hand, marketing involves creation and maintenance of consumer demand.
Definition of Product Product is a set of tangible and intangible attributes offered by a seller to the customer.
Definition of Services Services are intangible benefits and satisfaction that are offered for sale.
Difference between Product and Services | Basis of Distinction | Products | Services |
| Tangibility | Fully tangible | Intangible |
| Perishability | Usually durable | Usually Preishable |
| Ownership | Transferable | Not Transferable |
| Risk | can be replaced | cannot be replaced |
| Inventory | can be stored | cannot be stored |
| Quality | can be measured and controlled | Difficult to control and measured |
| Customisation | Increases costs and restricts sales | Increases customer delight |
| Sensitivity to time | Low Sensitivity | Highly Sensitive |
| Brand | Main strategy in product marketing | People are equally important. |