Nature and Functions of Marketing

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  • Q1

    What is societal marketing concept of marketing?

    Marks:3
    Answer:

    Societal marketing concept is an extension of modern marketing concept. Societal marketing concept emphasises social welfare along with the interests of the firm and its customers. This concept includes social implications in the process of decision-making. According to this concept, firms should consider welfare of the society as well as consumer satisfaction.

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  • Q2

    What is marketing management? Briefly explain the features of marketing management. (1+4)

    Marks:5
    Answer:

    Marketing management means management of all the activities related to marketing. It refers to planning, organising, directing and controlling the activities which result in exchange of goods and services.

    The features of marketing are:

    i. Need and want: The focus of marketing is need and want of customers. All the activities in the market are carried out with the main motive of satisfying need and wants of customers and organisations.

    ii. Creating market offering: Market offering means offering a product or service by specifying its features, shape, size, colour etc. The market offer should be made keeping the satisfaction of customers in mind.

    iii. Customer value: Customer pays the price for the product when the product utilities are matched with the price. Customer values the product on the basis of satisfaction and service offered by the product.

    iv. Exchange mechanism: The process of marketing involves exchange of products and services for money. In an exchange, customer pay money and in return they take product or services which satisfy their needs and wants. It can take place directly between manufacturer and customer or through middlemen. This is the essence of marketing.

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  • Q3

    ‘Marketing starts with customer and ends with customer’. In light of the statement explain the modern concept of marketing.

    Marks:4
    Answer:

    The present day marketing is customer-oriented rather than product-oriented. Marketing management deals with planning, organising, directing and controlling the activities related to the marketing of goods and services to satisfy the consumer’s wants. It assumes that an organisation

    can achieve its objective of maximisation of profit by identifying the needs of its present and prospective buyers and satisfying them in an effective way. All the

    decisions in a firm are taken from the point of view of the customers. For example, what product will be produced, with what features and at what price shall it be sold, or where shall it be made available for sale.

    The marketing concept of marketing is based upon the following pillars:

    i. Identification of the target – market or customers.

    ii. Understanding needs and wants of customers in the target market.

    iii. Development of products or services for satisfying needs of the target market.

    iv. Satisfying needs of target market better than the competitors.

    v. Undertaking all these activities for a profit.

    Thus, all the activities of marketing revolve around customer.

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  • Q4

    Briefly explain production concept of marketing .

    Marks:4
    Answer:

    Production concept of marketing believes that customers are interested only in low priced, easily and extensively available goods; and finer points of the product are not very important to them. Hence, they believe that they must concentrate only on efficient (economical) and extensive (large scale) production.

    As per this concept, it is believed that profits can be maximised by producing at a large scale, reducing the average cost of the product. The key focus is on availability and affordability of the product.

    A company which believes in this approach, concentrates on achieving high production efficiency and wide distribution coverage resulting in lower cost of production.

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  • Q5

    Differentiate between Production concept and Product concept of Marketing.

    Marks:3
    Answer:

    Basis

    Production Concept

    Product Concept

    Focus

    Is on quantity of product

    Is on quality of product

    Means

    Through availability and affordability of product

    Through improvement of quality of products

    Ends

    To earn profits through large volume of production

    To earn profits through quality of product

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