NATURE OF MARKETING

1. Marketing is Consumer-oriented:
A business exist to satisfy human needs. Therefore, business must find out
what the
customers want and then produce goods according to the needs of the
consumers. Only
such products should be produced which best satisfy consumer needs and at
the profit to
the maker.
2. Marketing Starts and ends with the consumer:
Marketing is concerned only with the flow of goods and services from the
producer to the consumer. Under consumer-oriented marketing its is essential to
know what the customers really want and this is only possible if we collect
information from consumers.
3. Modern Marketing Precedes and succeeds Production.
Today, all the organization s accept that the marketing activities must start far
ahead of production. It is not enough if the activities are begun after the product
is ready. Marketing would have authority over product innovation and planning,
production scheduling as well as over the sale. In companies operating under the
marketing concept entire marketing is designed to serve consumer needs.
4. Modern Marketing is the guiding element of the business:
Marketing has become a pervasive force capable of guiding and even controlling
production. In fact, it is the market potential and not production resources that
guide a business today. This involves the integration of a number of activities
from the conception of a product idea to its profitable selling and ultimate
consumption.
5. Marketing is a Science as well as Art:
Marketing is an art in the sense that a considerable body of rules or principles on
buying, selling, financing, standardization, market information etc. have been put
into practice to achieve success in the economic life of man.
But later development have changed the art base of marketing into a science
base. Many aspects of marketing are becoming increasingly technical. This has
created the need for complex tools of measurement and experimentation. Hence,
it is not wrong to say marketing is science-based.

6. Marketing is a System:
Marketing is a System consisting of several interdependent and interacting subsystems. It obtain the inputs from the environment (Supra system), transforms
these inputs and supplies the output (customer satisfaction, profits etc )
7. Exchange process is the Essence of Marketing
Exchange implies transactions between buyers and seller. The seller hands over
a product or service to the buyer who in turns give money.there is exchange of
information etween buyers and sellers.
8. Marketing is Goal-oriented:
The ultimate aim of marketing is to generate profits through the satisfaction of
human wants.
The following aims are sought to be achieved by studying marketing:
1. To provide guiding policies regarding marketing procedures and their
implementation.
2. To study marketing problems according to circumstances and to suggest
solutions.
3. To analyse the shortcomings in the exiting pattern of marketing.
4. To enable managers to assess and decide a particular course of action.
5. To develop an intelligent appreciation of modern marketing practices.
9. Marketing is a Process:
It is a dynamic process because it keeps on adjusting to the changes in the
environment of business. Marketing is also a social process in the sense that it is
concerned with human needs. Marketing is a managerial process as it involves
the functions of planning and control

SCOPE OF MARKETING
The scope of marketing is very wide. It may be analyzed in the term of marketing
performance through various functions. These functions are to be performed on the
basis of various utilities.

A)
Functions
of
Exchange

MARKETIN
G
FUNCTION
S

B) Functions
of Physical
Dustribution

C) Functions
of
Facilities

1. Buying Function
2. Assembling Function
3. Selling Function

1.
2.
3.
4.

Transportation
Inventory Management
Warehousing
Material Handling

1.
2.
3.
4.

Financing
Risk Taking
Standardisation
After Sales Service

A) Functions of exchange:
Buying Function: A manufacturer is required to buy raw materials for production
purposes. Similarly, a wholesaler has to buy goods from manufacturer for the
purposes of sales to retailers. Aretailer has to sell the goods to consumers. Thus
functions of buying have to be performed at various levels.
Assembly Function: Assembling is different and separate from buying. Buying
involves transfer of ownership of the goods from seller to the buyer; whereas in
assembling, goods are purchased from various sources and assembled at one
place to suit the requirement of the buyer.
Selling Function: Selling involves transfer of ownership from seller to the buyer.
Selling function is vital to the success of any firm. Its importance has been

continuously increasing in all organizations due to the emergence of severe

competition. Producing goods is easy but it is very difficult to sell them.
B) Functions of Physical Distribution:
Transportation: it is the function of transformation to carry commodities from where
utility is relatively low to places where it is higher.
It includes decision to be taken on
Modes of transport
Claims etc
Service
selection
Freight consolidation
Processing,
vehicle scheduling

VECHILE SCHEDULING
Vehicle Scheduling is part of the component Transportation Planning. It enables the
transportation planner to optimally use available capacities of trucks, trains, ships, and
airplanes with the goals of more efficiently planning loading capacities and lowering
costs, since most customers nowadays depend completely on external transportation
companies for optimum transportation (which means deliveries that are on time and
cost saving).

PROCESSING
The aim of transportation processing is to complete the formalities involved in getting a
shipment ready for dispatching to the customer. Tasks in transportation processing
include weighing the shipments, loading, and goods issue posting as well as recording
information on the means of transport such the drivers details, the weight of the truck,
and the time it arrive premises.

Inventory Management :
It includes

Short term sales forecasting

JIT or push or
pull
strat
egies
Product mix at stocking points

Number, Size & location

of stocking points

Warehousing:
Warehousing help in having a central place for keeping goods from where the
distribution could be made easily and according to needs. Ultimately, it tends to
adjust the supply to demand so as to equalize them in the interest of the
manufacturers, middlemen and consumers.
It includes

Space determination
Stock layout and design

Stock placements

Material Handling:
It includes

Equipment Selection
Equipment replacement
retrieval

Order picking procedure

Stock storage &

C) Functions of Facilities:
1. Financing
Arrangement of finance has become an increasingly important function.
Therefore, a marketer can plan for various kinds of finance: short term finance,
Medium term finance and Long term finance.
There are various sources of finance for example, commercial banks, cooperative banks, credit societies, government agencies etc.
2. Risk Taking :
There are innumerable risks in the process of marketing of goods and services.
Risks arise due to unforeseen circumstances. Risks can be insured also. For
example, the risk due to fire and accidents may be covered by insurance. But the
risks due to changes in government policies, risks due to increased competition,
technological risks and business cycle risks cannot be insured.
3. Standardization:
Buyers and sellers always prefer to have standardized goods and services. This
will relieve buyers from examining the product and wasting time. That is why
standardization has now been accepted as a convenient and ethical basis of
marketing.
4. After sales service:
The importance of after sales service facilitates as a marketing tool cannot be
ignored. Hence arrangement of after sales service has become an increasingly
important function. Therefore, a marketer has to plan for after sales service.
For example: Repairs, replacements, maintenance etc.
5. Marketing Information:
Modern marketing requires a lot of information accurately, adequately and
promptly. This information becomes the basis of many decision in marketing.
Marketing information makes a seller know when to sell, at what price to sell,

who are the competitors etc. marketing information and its proper analysis has
led to marketing research.