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, organisations, information and ideas. Marketing is a combination of business management and the philosophy of business.
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 wants Benefits only.
Many MNC products are sold even in rural market because of their understanding the needs of the customers, including rural area people, who may not afford to purchase 50 grams shampoo or 50 grams tooth paste. The MNC product manufacturers have customised 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 days the market is driven by Sellers/ Manufacturers. But now it is Buyer's market. Buyer is dictating what he wants 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 what price to buy?. Based on customers requirements, manufacturers are producing the goods.
The following table clarifies striking difference between Marketing and Selling:
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 recognised 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 organisation. That means though the customers are satisfied with the services, they are preferring to purchase their services from other organisation means, he/she is expecting delighted services. Delighted services means services should be extended beyond the customer's expectations.
The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is 'to give 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 maximise-
Ans. Customer Satisfaction
2. Customisation means-
Ans. Minimisation of cost
3. The four Ps of Marketing does not include-
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 mix 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 was already collected and compiled for some other purpose is called:
Ans. Secondary data
9. The cheapest and best source of promotion channel is:
Ans. Word of Mouth
10. 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
12. ‘Your dreams are not yours alone’ is the slogan of-
Ans. Union Bank of India
13. EMI stands for -
Ans. Equated Monthly Installments
14. Charging different prices for the same product is called -
Ans. Product differentiation
15. 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/ organisation, The share of an organisation vis-a-vis total investment by the customer.
16. What does the letter 'F' represents in FAB-
17. B2B refers to-
Ans. Marketing activity directed from one business to another
18. What is co- branding?
Ans. Branding involving two or more products
19. AIDA is said to be the customer buying process. What does AIDA stands for?
Ans. Attract, Interest, Desire, Action
20. ODPEC is said to be the sales process. ODPEC stands for:
Ans. Opening a call, Developing a call, Proposing (right product),Eliminating , Closing