Marketing occupies an important position in the organisation of business unit.

Traditionally
marketing can be viewed as the customer will accept whatever product the seller presents to them.

In this way, the main concern of the producer is to produce without considering the choice or the behaviour
of the customer. But now this point of view of marketing has changed. The modern concept may be viewed
from the customer’s point of view.
Marketing is centred around the customer.
Producer does not produce whatever he likes but whatever consumer waNTS.

Philip Kotler has rightly remarked-”

Marketing is analysis, organising, planning and controlling of the firm’s customer impinging resources,
policies , activities with a view to satisfying the needs and wants of chosen customer groups at a profit.

In this way, marketing performs all those functions which are necessary to pass on goods from
producer to the consumers in a process to satisfy their needs . Thus we can say the prime objective of
modern marketing is the satisfaction of customer’s needs.
Marketing functions are not limited to the functions of buying and selling but they include all
functions necessary to satisfy the customer such as financing ,storage , risk bearing and after sale services
etc.
Market is a place where the aggregate demand of the potential buyers for a product/service.

As per Kotler, market as an area of potential exchange . Thus, a market is a group of buyers
and sellers interested in negotiating the terms of purchase/sale of goods/services.

A market is defined as an area in which buyers and sellers exchange a well defined commodity.
In other sense we can say , market includes both place and region in which buyers and sellers are in free
competition with one another.

Marketing is an exciting, dynamic and contemporary field. It influences us each day in both
our roles as providers of goods and services and as customer. In other way, we can say that we are all
involved with an affected by marketing practices.
Marketing is the process of planning and executing the conception, pricing, promotion
and distribution of ideas , goods and services to create exchange that satisfies individual
and organisational objectives- American Marketing Association

Marketing is the application, management and satisfaction of demand through the

exchange process-Evans & Burman

Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating, offering and exchanging products of value
with others-Philp Kotler

Marketing is a total system of business activities designed to plan , price , promote and
distribute want satisfying goods and services to present and potential customers-
[Link]
In marketing the following activities are found
 It involves the activity of meeting needs
 It is essentially exchanging of goods and services and ends in actual transaction
bringing in the earnings/profits.
 Exchange is from those who have surplus or produce for the purpose of
exchanging to those who needs them . It is for money or money’s worth
 Exchange transactions take place for mutual benefit of both the parties and when
they settle with agreeable terms and conditions.
 Marketing involves continuous market survey and research to know the changing
needs of people.
 Marketing includes all the activities which relate to creation of place, time and
possession utilities.
 In all, it covers all the direct and indirect functions relating to the flow of goods
and services from the point of producers and final consumers.
Marketing is a point of view , a concept , a way of
thinking. It starts where production leaves off.
The marketing concept assumes that the objective of
all business enterprise is to make a return to those
who have invested in it.
In the marketing concept, the consumer is at the top
of the organisation chart
Marketing is a total function which is concerned with
such activities as product planning, product
development , product change , pricing and
packaging, selling and sales promotion and
advertising and marketing research.
 Marketing Research
 Product planning and development
 Buying and assemblling
 Selling
 Packiging
 Storage
 Trasnportation
 Salesmanship
 Adeverising
 Pricing
 Fonacing
 insurance
Needs, wants and demands
Products
Value , cost and satisfaction
Exchange, transactions and relationship
Market
Marketer
 Marketing is the heart of any business organisation as
it affects each person’s life
Marketing aims at satisfying the need of customers
Marketing as a career provides an employment
opportunity to various people
Marketing determines the pattern of consumption
It helps in developing economic resources of any
country
 Marketing Selling

 Emphasis on customer needs and wants  Emphasis is on the product

 Marketer first determines the needs and wants of
 Organisation first makes the product and then
the customers and then delivers the product to
figures out how to sell it
satisfy those needs and wants.
 Planning is long term oriented  Planning is short term oriented
 It emphasis more on the needs of the buyer  It emphasis on needs of the seller
 Marketing makes use of long-term strategies to  Selling makes use of short-term tactics to get
get [Link]. Value added service, customer sales
education, meeting objectives.  Eg.: Free gifts, discounts, rebates etc.
 Marketing creates time , place and possession
 Selling is the transfer of ownership of goods
utilities for satisfactory exchange of goods and
services.  It creates only possession utility
 Marketing is a process which begins far ahead of  Selling is the exchange of gods for a price . It is a
production and lasts much after the sale of the part of marketing process.
product. It begins with planning of the product to
suit the needs of the customers. Selling is one of
the activities of marketing.
starting point focus means ends

Selling Profits through

Factory Existing products sales volume
promoting

The selling concept

Profits through
market Integrated
Customer needs customer
marketing
satisfaction
The marketing concept
The process of marketing involves an exchange
transaction between the buyer and the seller.
The marketing process is influenced by a number of
factors such as
1. Competition
2. The marketing environment
3. Govt. rules and policies
[Link] media of communication
5. The social, political , economic and technological
forces.
 Stages of Marketing Process

B
A Marketing Opportunity
Organisational System *Economic , Social , Political
*Marketing objectives and legal factors
*Marketing capabilities *Competition
*Market selection

c D
Marketing action Strategy Planning
*Implementation *Differential advantage
*Control *Marketing mix product/
service price promotion
Market refers to a place where goods are bought and sold, market is a physical plaCE TO EXCHANGE
GOODS AND SERVICES.
A marketers is someone seeking a resource from someone else and willing to offer it to someone else in
lien of some value in exchange. That means marketer is not a producer
Marketer is one of the parties to exchange:

Potential Buyer

Each party has:

1. Something that may be valuable to the other
2. Freedom to agree or disagree to exchange
3. Ability to communicate with and make available what is being
offered to the other

Potential seller
Demand Concept
The term market is also used to represent total customer demand that means people with needs
to satisfy their wants.

The process of want satisfaction is continuous . From a seller point of view a market offers an
opportunity to seek success through the development and implementation of marketing
programme which will meet customer needs

Buyer behaviour and competition are changing variables in the marketing environment.

Place concept
A market is a convenient meeting place for buyers and sellers together in order to conduct buying
and selling activities . e.g. Wholsale and retain market.

Area Concept
A market develops in any area , small or large , the moment there are three prerequisites for
exchange are fulfilled
i) Two or more individuals unsatisfied wants
ii) They have product(s) to exchange &
iii) They have some means of communication such as phone , correspondence etc.
1. The act of buying and selling
2. Market is an assembly or meeting together of people
for their purchases and sale of goods at a stated time
and place.
3. A place as an open space or a large building where
actual buying and selling takes place.
[Link] is customer focussed:
Marketing intends to satisfy and delight the customers. The activities of marketing must be
focussed at the customer. Generally, customer focus can optimise costs for the customer while
allowing the organisation to focus on its core competencies . Marketers must track customer
needs on a continuous basis.

2. Marketing must deliver value

Marketer have to track customer needs and deliver the product as per their requirements . The
company must satisfy the following equation
Customer value= Benefits/cost

3. Marketing is business
When customer is the focus of all activities, marketer has not to search customers to seek
response to his products . Customer group is decided for whom the product is prepared and
presented.

4. Marketing is a part of total environment

Total environment may be defined as the combination of all resources and institutions which are
directly related to the production and distribution of goods, services ,ideas, places and persons
for the satisfaction of human needs.
[Link] systems affect company strategy
Marketing has its own sub-systems which interact with each other to form complete marketing
system that is responsive to company marketing strategy. through the subsystems i.e. marketing
information system , marketing planning system, marketing organisation and implementation
system and marketing control system that the company monitors and adapts to the total
marketing environment.

[Link] creates mutually- beneficial relationships

The customer is the focus of all marketing activities . But during the last decades, the focus has
shifted to the way of doing business . i .e the strategic aspects of marketing . Here the means of
marketers are their knowledge and experience and the end result is in the form of mutual
beneficial relationship . Thus, marketing is everything that results in the mutually beneficial
relationships with the customer.
7. Marketing is surrounded by customer needs
marketing starts with the identification of customer needs and requirements. These are turned
into probable features that might satisfy the basic needs. The portable form of product is made
out and presented before the customer for approval. The customer suggests changes or
improvement in the portable product and the final product is brought before the customer.

4. Marketing as a discipline
the subject of marketing has emerged out of the business which has derived its existence from
economics . After emerging from business, marketing has got its strength from related areas like
law, psychology, sociology, etc.
1. To increase profits and goodwill of the enterprise
2. To organise direct and control all marketing
activities
3. To enable the successful distribution
4. To supply necessary information for marketing
decisions
5. To inform the customers and society about the
markets
6. To plan and develop the product on the basis of
known customer demand
 Marketing management is the analysis ,
planning , implementation and control of
programmes designed to bring about desired
exchanges with target markets for the purpose of
achieving objectives of the organisation.
Marketing management may be considered as
the process of ascertaining consumer needs,
converting them into products or services and then
moving to the final consumer to satisfy such needs of
specific consumer segment with emphasis on
profitability ensuring the optimum use of the
resources available to the organisation.
To satisfy customers
To increase profits for the growth of the business
To create good image of the organisation
To increase the quality of life of the people
To generate more and more customer base for the
business
 Determining objectives
Planning
Organising
Co-ordination
Controlling
Staffing
Operating
Establishment of marketing policies.
 The Rural Marketing refers to the activities undertaken by the marketers to encourage
the people, living in rural areas to convert their purchasing power into an effective demand for the
goods and services and making these available in the rural areas, with the intention to improve their
standard of living and achieving the company’s objective, as a whole.

The Rural Marketing is a two-way process, i.e.,

* Urban to Rural: FMCG Goods, Agricultural fertilizers, automobiles, etc. are offered by the urban
market to the rural market.
* Rural to Urban: The agricultural supplies viz. Fruits, vegetables, flowers, milk, etc. is offered from the
rural market to the urban market.
Thomsen defined Rural marketing as,” The study of Rural marketing comprises of all the operations,
and the agencies conducting them, involved in the movement of farm produced food, raw materials
and their derivatives, such as textiles, from the farms to the final consumers, and the effects of such
operations on producers, middlemen and consumers.”

According to G.N. Murthy – “Rural marketing is the study of all the activity, agency and policy
involved in the procurement of farm inputs by the farmers and the movement of rural products from
farmers to consumers”.

According to T.P Gopalaswamy – “Rural Marketing is a two-way process which encompasses the
discharge of business activities that direct the flow of goods from urban to rural area (manufactured
goods) and vice versa (agriculture products) as also with in the rural areas”.

According to National Commission on Agriculture are – “Rural Marketing is a process which starts
with a decision to produce a saleable farm commodity and it involves all the aspects of market
structure or system, both functional & institutional, based on technical and economic considerations
and includes pre and post-harvest operations, assembling, grading, storage, transportation and
distribution”.

So we conclude that rural marketing in simple words is planning and implementation of marketing
function for rural areas.
 Rural marketing is a compilation of the developed product, reasonable price, appropriate
placing and right awareness. The marketing rule sates that, the right product, at the right price, at the
right place, at the right time, through the right medium should reach the right customer.
This same rule stands good for rural marketing also . According to the National
Commission on Agriculture,
“Rural marketing is a process which starts with a decision to produce a saleable farm
commodity and it involves all the aspects of market structure or system, both functional and
institutional, based on technical and economic considerations, and includes pre- and post-harvest
operations, assembling, grading, storage, transportation and distribution.”

The marketer in rural area has to investigate:

(a) Market segmentation by market potentials which would help the assessment of the markets by
consumer demand and purchasing ability.
b) Consumer behaviour and the rural consumer’s priorities and preferences in consumer
expenditure, sources of buying, quantum of each purchase, and time and conditions of purchase.
(c) How best to win over the rural consumer, and make effective use of media.
(d) Who are the catalytic agents of change and what role can they perform vis-a-vis ones products?
Examples of companies involved in rural marketing are:

The two major Cola brands Coca-Cola and Pepsi apart from their usual battle over
market share have been trying hard to enter into rural markets. They have come up with many
marketing strategies such as pricing, distribution strategies etc., like providing ice boxes,
refrigerators, credit facilities etc.
Winning the rural market has been the toughest job for both the brands. Though they
are largely popular in urban market, the brand image will not get them loyal customers in rural
market. Both Coke and Pepsi have made huge efforts to penetrate deep into the rural markets by
substantially increasing their retailer and distribution network and with innovative marketing
strategies.
The marketers are following the strategy to “Go Rural” because of the following attractions in the rural
market:
Large Population:
Still, the majority of the population in India resides in Villages and therefore, the marketers find
more potential in the rural areas and direct their efforts to penetrate the rural market.
Increased Income:
The income and the purchasing power of the rural people have increased. With the use of modern
agricultural equipment and technology, the farmers can produce more and can get better returns for
their agricultural produce . The increased income motivates a farmer to improve his livelihood by
purchasing a good quality product and thus, the marketer gets an opportunity to enter into the rural
market.
Competition in Urban Market:
There is a lot of competition in the Urban market, where people are well aware of the goods and
services and have created a brand loyalty . Therefore, the marketers move to the rural market to
escape the intense completion and generate revenues from the untapped areas.
Improved Infrastructure facilities:
Today, many villages are well connected with the roads and transportation facilities that enables the
marketer to access the rural market and promote his goods and services . With the growth in
telecom services, the rural people can be reached easily via mobile phones.
Saturated Urban Market:
Also, the marketers may move to the rural markets, when the urban market has reached the
saturation point, the i.e. market is well stuffed with the products, and the consumers are not likely
to make a frequent purchase due to the varied options available in the market.
Support of Financial Institutions:
Several Co-operative banks and public sector banks offer the loan facility to the rural people at low-
interest rates. With the loan, the purchasing power of an individual increases, thus resulting in a
better standard of living.
New Employment Opportunities:
The Government is running several employment opportunity programmes, with the intention to
engage people in other activities apart from the agriculture occupation . The Integrated Rural
Development Programme (IRDP), Jawahar Rozgar Yojana (JRY), Training Rural Youth for self-
Employment are the certain programmes, designed to increase the livelihood of rural people.
Due to so much potential in the rural areas, the companies are focussing more on the
needs and desires of people living in here and are taking every possible step to stimulate people to
buy products and services and improve their livelihood.