Marketing Aptitude Study Material – Introduction to Marketing

Marketing Aptitude Study Material – Introduction to Marketing

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Marketing is about identifying and meeting human and social needs. It is the process of communicating the value of a product or service to customers, for selling that product or service. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

Nature of Marketing

• Marketing is a human activity.
• Marketing is a social-economic activity.
• Marketing is consumer-oriented process.
• The core of marketing is product or service.
• Marketing is based on exchange.
• Marketing is both art and science.
• Marketing is an universal activity.

Characteristics of Marketing

• Marketing is a socially pervasive process
• Organisation-wide function
• Marketing is both a science and art
• Voluntary exchange of values
• Achievement of organisational objectives and customer deeds
• Selection of target markets
• Beneficial to all the stakeholders

Scope of Marketing

1. All the decisions related to product like size, color, design, packaging, etc are taken with active participation of marketing department of the company.
2. All the decisions related to the consumers are taken after having studied the consumers responses with respect to different products, different prices and brands.
3. All promotional decisions, like choosing type of marketing media, are also being taken under marketing activity.
4. An effective after sales services is formulated by the marketing manager in order to satisfy the consumer.

Objectives of Marketing

• Provide satisfaction to customers
• Increase the demand
• Provide better quality product to the customers
• Create goodwill for the organisation
• Generate profitable sales volume

Difference between Marketing and Selling

Marketing	Selling
Marketing includes selling and other activities like various promotional measures, marketing research, after sales services, etc.	Selling is confined to persuasion of consumers to buy firm’s goods and services.
It starts with research on consumer needs, wants, preference, likes, dislikes, etc and continues even after the sales have actually taken place.	Selling starts after the production process is over and ends with the handing over the money to the seller by the buyer.
Focus is on earning profit through maximisation of customers satisfaction.	Focus is on earning profit through maximisation of sales.
Customer’s need is the central point around whom  all marketing activities revolve.	All activities revolve around the product that has been produced.
It is an integrated approach to achieve long-term goals like creating, maintaining and retaining the customers.	Fragmented approach to achieve short-term gain.
Stress on needs of the buyer.	Stress on needs of the seller.
In marketing, the consumer is king.	In selling, the product is king.

Concepts of Marketing

Marketing is based on many concepts as per the orientation and perception of the firms about the business and market place, those concepts are

• Exchange Concept
  This concept of marketing indicates that the exchange of a product between the seller and buyer is necessary.
• Production Concept
  Production dominates the thinking process of the consumers. Products produced in a great volume at a low unit cost are supported by the consumers.
• Product Concept
  In this concept, quality of the product is focused. Good and quality products are provided to the customer.
• Sales Concept
  Large sales promotion is believed to maximise the selling. Organisations resort to aggressive advertising, high power personal selling. The customer is being neglected in this concept.
• Marketing Myopia
  When an organisation gives excessive attention to production or the product or selling at the cost of the customers’ actual needs then marketing myopia is created.

Pillars of Marketing Concepts

• Target Market
• Customer Needs
• Integrated Marketing
• Profitability

Steps of Marketing

Steps of marketing are as follows

1. Determination of Organisational Objective These objectives provide direction for all phases of the organisation and serve as standards in evaluating performance.
2. Assessing Organisational Resources By evaluating these resources., organisations can pinpoint their strengths and weaknesses. Strengths help organisations set objectives, develop plans for meeting objectives and take advantage of marketing opportunities.
3. Evaluating Risks and Opportunities Environmental factors—competitive, political, legal, economic, technological and social-also influence marketing opportunities. The emergence of new technologies or innovations may open new opportunities for under-marketed products.
4. Marketing Strategy The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment.
5. Implementing and Monitoring Marketing Plans At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations.

Types of Marketing

There are two types of marketing

1. Marketing to Individuals It is also called consumer goods. Products which are purchased by the ultimate consumers for satisfying their personal needs and desires are referred to as consume goods, e.g, toothpaste, soap, brush, ediable oil, textiles, shampoo, shoes, etc.
   Consumer goods are classified as
   • Convenience Goods Consumer goods purchased frequently, immediately and with least time efforts are referred to as convenience goods like pen, biscuits, newspapers, medicines, etc.
   • Shopping Goods Shopping goods are those consumer goods, in the purchase of which buyers devote considerable time to compare the quality, price, style, suitability at different stores before making final purchase. e.g, radio, refrigerator, television, cloth, etc.
   • Speciality Goods People make special efforts to purchase the service of speciality goods, e.g., restaurant, tailor, etc.
2. Marketing to Organisations It is also called industrial goods. Industrial goods are goods which are used as inputs in producing other products. The examples of such products are raw material, engines, lubricants, fabricating material, installation, operating suppliers, etc.

Functions of Marketing

The functions of marketing and have been discussed below

• Marketing Research
  It is a process of collection and analysing information regarding customer needs and buying habits, nature of competition prevailing prices effectiveness of advertising media, etc.
• Product Planning and Development
  The task of marketing begins with planning and designing a product for the consumers. It can also be done while modifying and improving an existing product.
• Buying and Assembling
  It refers to buying and collection of required goods for resale. It is primarily relevant to those business organisations who are engaged in trading activities.
• Packaging and Labelling
  It involves putting the goods in attractive packets, containers according to the convenience of consumers. As suitable and attractive packages increase the demand for the products to a great extent.
  Labelling means putting identification marks on the package. It contains information about the producer of the product.
• Standardisation and Grading
  Standardization helps in promoting the sale of the product by increasing consumer’s confidence in the product quality. Grading involves separating
  products into different classes on the basis of certain predetermined standards related to size and quality.
• Branding
  It refers to giving an attractive name, symbol or identity mark to the product to make it different from other products.
• Pricing
  It involves decisions regarding fixation of product prices. Pricing is done keeping in view the product costs, the capacity of customers to pay and the prices of the competitive products.
• Transportation
  Transportation means carrying goods from one place to another. It helps in assembling and dispersing the goods. It links together the producers and consumers who are located at different places.
• promotion
  Promotion means all the activities performed by a producer or by a dealer or by a businessman to increase his sales. Main purpose of promotion acitivities is to encourage and pursuade the consumers to buy a particular product.

Role of Marketing

Roles of marketing are as follows
Role of Marketing in Business

• Technological changes are taking place at fast pace.
• Competition has become intense in the market.
• Consumer tastes and preferences are changing very fast.
• Production is organised on a large-scale.

Role of Marketing in Business

• It makes new and better products available to people, increasing their standard of living.
• It helps in creation of new jobs.

Importance of Marketing

Importance of marketing can be discussed as follows

 Importance of Marketing to the Consumers

• Provides different information about the product and services.
• Helps to know the different benefits and techniques of products
• Provides satisfaction by providing different products to meet their demand and tastes when they need.
• Facilitates customers to select the best one according to their demand and capability.

Importance of Marketing to the Firms

• Easily distribute the products.
• Suggests to manage the transportation and wire-housing systems which help the firm to delivery the product.
• Provides valuable information to make effective plan for future and right decision.
• Suggests to reduce unnecessary costs and utilise the revenue in proper way.
• Accumulates the opinion and ideas of different customers and supplies to the management.

Importance of Marketing to the Society

•  An important source for the creation of employment opportunities.
• Helps in developing the living standard.
• Helps to utilise the different resources such as natural, financial, physical and human resources.

Tit-Bits

• Finance is like blood of business.
• Marketing is successful when salesmen are effectively trained.
• In marketing, it is necessary to identify potential sellers, potential products and services, potential customers and key existing.
• Marketing strategy means ways to improve marketing activities.
• Marketing is definitely required when supply exceeds demand.
• Cross selling means selling other products to existing customers.

Check Your Skills

1. The aim of successful marketing is

1. to increase the sale
2. to increase the profit
3. to increase the output of sellers
4. All of the above
5. None of the above

2. Which among the following come under ‘facilitating’ category of marketing functions?

1. Standardising and grading
2. Standardising and grading, financing and risk taking
3. Standardising and grading, financing risk taking, securing market information
4. All of the above
5. None of the above

3. Which among the following is the most basic concept underlying marketing?

1. Product
2. Market
3. Needs, wants and demands
4. All of the above
5. None of the above

4. The need or want for a particular product becomes a demand, when

1. the product/service is available
2. it is backed by buying power
3. a product represents that particular need
4. All of the above
5. None of the above

5. Which among the following is called like blood of business?

1. Marketing
2. Product
3. Finance
4. All of the above
5. None of the above

6. Which among the following is included in marketing decisions?

1. Promotion decision
2. Project cost decision
3. Finance decision
4. All of the above
5. None of the above

7. Which among the following is a customer oriented concept?

1. Selling concept
2. Marketing concept
3. Production concept
4. ll of these
5. one of these

8. Social marketing concept is based upon

1. large target market with active buyers
2. customer satisfaction and customer welfare
3. realisation of maximum profit through service of society
4. All of the above
5. None of the above

9. Which among the following may be called a pillar of marketing concept?

1. Customer orientation
2. Product planning
3. Cost budgeting
4. All of the above
5. None of the above

10. Find the true statement.

1. Marketing is a waste of the employee’s time
2. Marketing is not required in India due to its vast population
3. Marketing involves additional work
4. Marketing involves team work
5. Marketing is not required today due to IT advancement

11. Market information means

1. knowledge of shops and bazaars
2. knowledge of shopping malls
3. knowledge of customer prftfile and product mix
4. knowledge of various languages
5. None of the above

12.If marketing is done effectively which ,1 the following is not required?

1. Advertisement
2. Publicity
3. Market research
4. Market segmentation
5. None of the above

13. Profit by customer satisfaction is a tool of

1. old concept of marketing
2. new concept of marketing
3. production
4. price
5. None of the above

14. Nature of marketing involves

1. promotion decision
2. determiiiation of distribution channel
3. after sale service
4. All of the above
5. None of the above

15. Marketing is successful when

1. demand exceeds supply
2. supply exceeds demand
3. salesmen are effectively trained
4. All of the above
5. None of the above

16. Marketing is best defined as

1. facilitating satisfying exchange relationships
2. distribution of products at lower price to the stores
3. distribution of products at higher price to the stores
4. promoting the products
5. selling the products

17. The marketing concept is a way of thinking or a management philosophy that affects

1. only marketing activities
2. only the efforts of sales personnel
3. most efforts of the organisation
4. only customer relationships
5. None of the above

18. Aggressive marketing is necessitated due to

1. globalisation
2. increased competition
3. increased production
4. increased job opportunities
5. All of the above

19. The exchange concept of marketing takes place between and

1. seller, buyer
2. customer, consumer
3. consumer, buyer
4. buyer, purchaser
5. None of the above

20. Marketing stress is on needs of the buyer, whereas selling stress on the need of

1. market
2. seller
3. product
4. consumer
5. None of the above

21. Marketing research involves

1. collection of facts
2. analysis of facts
3. gathering records
4. developing suitable marketing strategies
5. All of the above

22. Which of the following is/are the marketing concepts?

1. Exchange concept
2. Production concept
3. Product concept
4. Sales concept
5. All of the above

23. Which of the following is/are function of marketing?

1. Marketing research
2. Product planning
3. Buying and assembling
4. Branding and packaging
5. All of the above

24. Which of the following is the function of promotional activities?

1. To motivate the customer to buy the product
2. To sell the goods to the customers
3. To fix the price of the product
4. To store the unsold goods
5. To produce more goods

25. Marketing involves earning profit through maximisation of

1. sales
2. production
3. expansion
4. customer’s satisfaction
5. None of the above

26. Selling involves earning profit through maximisation of

1. j sales
2. profit
3. marketing
4. production
5. None of these

27. In marketing, the consumer is king, whereas in selling is king.

1. product
2. production
3. promotion
4. customer
5. None of the above

28. Which of the following is/are objective of marketing?

1. Satisfying customers
2. Increasing demand
3. Creating goodwill for the organisation
4. Providing better quality products
5. All of the above

29. Understand marketing as

1. only selling
2. meeting human and social needs profitably
3. to focus on customer
4. to focus only on producing
5. Both ‘2’ and ‘3’

30. Marketing is [SBI Clerk 20081

1. consumer oriented
2. competitors oriented
3. producer oriented
4. Both ‘1’ and ‘2’
5. Both ‘2’ and ‘3’

31. Proper marketing requires [SBI Clerk 2008]

1. planning
2. sympathy
3. Knowledge of products
4. Both 1’ and ‘2’
5. Both ‘1’ and ‘3’

32. In marketing, it is necessary to identify [SBI Clerk 2008]

1. potential sellers
2. potential products and services
3. key existing and potential customers
4. Both ‘1’ and ‘2’
5. All of the above

33. Marketing is influenced by [SBI Clerk 2009]

1. product demand
2. public taste
3. buyer behaviour
4. brand image
5. All of the above

34. The sale aim of marketing is to [SBI Clerk 2010]

1. increase sales
2. increase the number of employees
3. increases profits
4. increases production
5. All of the above

35. The ultimate aim of marketing is to provide [SBI Clerk 2011]

1. more business to the company
2. more profit
3. more staff
4. more production
5. more products

36. Selling process includes [SBI Clerk 2011]

1. publicity
2. lead generation
3. cross country contacts
4. product designing
5. product redesigning

37. Marketing strategy means [SBI Clerk 2011]

1. idea for further income
2. old techniques of sales
3. ways to improve marketing activities
4. ways to increase production
5. networking

38. Product design is a function of [SBI Clerk 2011]

1. front office staff
2. back office staff
3. management
4. marketing and research team
5. loan section

39. Marketing has taken a prominent position during the last decade due to [SBI Clerk-2012]

1. increased competition
2. better literacy rate
3. foreign compulsions
4. government instructions
5. Reserve Bank of India Policy guidelines

40. Marketing is definitely required when demand exceeds supply [SBI Clerk 2012]

1. supply exceeds demand
2. supply equals demand
3. staff is in excess
4. there is no monopuly

41. The traditional marketing style involves

1. door-to-door campaigns
2. sending E-mails
3. telemarketing
4. SMS campaigns
5. virtual marketing

42. The task of marketing involves [SBI Clerk 2012]

1. opening new branches
2. buying a company
3. selling a company
4. selling products and services of company
5. mergers

43. Selling is [SBI Clerk 2012, 09]

1. same as marketing
2. more than marketing
3. offering discounts
4. a sub-function of marketing
5. nothing to do with marketing

44. Marketing is the function of [SBI Clerk 2012]

1. only sales persons
2. only counter staff
3. only qualified persons
4. top bosses
5. a collective function of all staff

45. The sale aim of marketing is to [SBI Clerk 2012]

1. improve the balance sheet figures
2. increase recruitment
3. increase profits
4. increase production
5. increase branch network

46. ‘Cross selling’ means [SBI Clerk 2012]

1. selling to enemies
2. selling new products
3. reversal of a sale
4. selling other products to existing customers
5. public relations

47. Marketing opportunities means

1. availability of sales persons
2. availability of data
3. new product launching
4. scope for marketing
5. evaluation of performance

Answer Key