Introduction to Marketing: Meaning, Scope, Concepts and Marketing Environment Questions

Question 1

Define marketing.

Accepted Answer

Marketing is the process of identifying customer needs and creating, communicating and delivering value to satisfy those needs profitably.

Question 2

State the difference between need and want (one line).

Accepted Answer

Need is a basic human requirement, while want is a specific desire shaped by culture and personality.

Question 3

What is demand?

Accepted Answer

Demand is a want backed by ability and willingness to pay.

Question 4

What is marketing mix?

Accepted Answer

Marketing mix is the set of controllable tools (Product, Price, Place, Promotion) used to achieve marketing objectives.

Question 5

What is marketing environment?

Accepted Answer

Marketing environment refers to internal and external forces (micro and macro) that affect a firm's ability to serve customers.

Question 6

State one example of macro environment factor.

Accepted Answer

Inflation (economic factor) is one macro environment force affecting marketing.

Question 7

Explain the scope of marketing (any three areas) with examples.

Accepted Answer

Scope of marketing is wide and includes goods, services and even ideas. Any three areas with examples are:

1) Marketing of goods: tangible products like smartphones, FMCG items, clothing.
2) Marketing of services: banking, insurance, hospitals, education, telecom.
3) Social/idea marketing: campaigns like polio vaccination, road safety, anti-smoking.

It also includes experience marketing (tourism/events) and marketing of people/places (celebrity branding, city branding).

Question 8

Explain the marketing concept and its main elements.

Accepted Answer

Marketing concept states that an organisation achieves its goals by identifying the needs and wants of a target market and delivering satisfaction better than competitors.

Main elements:
1) Customer orientation: start with customer needs (research and insight).
2) Integrated marketing: all departments work together (product, price, place, promotion) to deliver value.
3) Profit through satisfaction: long-term profit comes from customer satisfaction, repeat purchase and loyalty.

Thus, marketing concept focuses on value creation rather than pushing sales.

Question 9

Differentiate between selling concept and marketing concept (any three points).

Accepted Answer

Selling concept vs marketing concept:

| Basis | Selling concept | Marketing concept |
|---|---|---|
| Starting point | Product/factory | Customer needs |
| Focus | Persuasion and promotion | Value creation and satisfaction |
| Goal | Profit through volume | Profit through loyalty and satisfaction |

Selling is short-term and product-push oriented, while marketing is long-term and customer-driven.

Question 10

Explain the marketing mix (4Ps) with brief examples.

Accepted Answer

Marketing mix is a combination of controllable tools used to achieve marketing goals. The 4Ps are:

1) Product: quality, features, branding, packaging (e.g., different variants of a phone).
2) Price: pricing level, discounts, credit terms (e.g., festival discount offers).
3) Place: distribution channels, outlets, e-commerce, delivery (e.g., selling via retail stores + online).
4) Promotion: advertising, sales promotion, PR, personal selling (e.g., social media ads and coupons).

A balanced 4P strategy helps satisfy the target market profitably.

Question 11

Explain micro environment factors affecting marketing (any three).

Accepted Answer

Micro environment consists of close forces that directly affect the firm. Any three are:

1) Suppliers: affect input quality, price and timely delivery.
2) Marketing intermediaries: wholesalers/retailers/logistics support distribution and availability.
3) Competitors: influence pricing, product features and promotional strategy.

Other micro factors include customers and publics (media, community, financial publics).

Question 12

Explain macro environment (PESTLE) in marketing with examples.

Accepted Answer

Macro environment includes broader forces affecting all firms. PESTLE factors are:
- Political: government policies, FDI rules.
- Economic: inflation, income levels, interest rates.
- Social: culture, lifestyle, demographics.
- Technological: digital payments, AI, new platforms.
- Legal: consumer protection and advertising regulations.
- Environmental: sustainability concerns and climate impact.

Example: Plastic ban (legal/environmental) forces companies to adopt eco-friendly packaging.

Question 13

Explain the evolution of marketing concepts (production, product, selling, marketing, societal) with suitable examples.

Accepted Answer

Marketing concepts evolved with changes in competition and customer expectations:

1) Production concept
- Idea: customers prefer low-cost and easily available products.
- Focus: mass production, efficiency, distribution.
- Example: basic commodities where availability matters.

2) Product concept
- Idea: customers prefer high quality and best features.
- Focus: continuous product improvement and innovation.
- Risk: marketing myopia (ignoring real needs).
- Example: tech firms focusing only on features without usability.

3) Selling concept
- Idea: customers will not buy enough unless persuaded.
- Focus: aggressive selling and promotion.
- Example: pushing insurance or unsought goods through agents.

4) Marketing concept
- Idea: start with target customer needs; deliver satisfaction better than competitors.
- Focus: research, segmentation, integrated marketing mix, satisfaction.
- Example: brands designing products after customer research and feedback.

5) Societal marketing concept
- Idea: balance customer satisfaction with long-term social welfare.
- Focus: ethical and sustainable marketing.
- Example: reducing plastic packaging, promoting healthier product options.

Thus, marketing evolved from product/production orientation to customer orientation and then to society and sustainability orientation.

Question 14

Explain marketing environment and describe micro and macro environment factors with suitable examples.

Accepted Answer

Marketing environment means internal and external forces that affect a firm's marketing decisions and its ability to satisfy customers. It is broadly divided into micro and macro environment.

A) Micro environment (close forces)
1) Company: internal departments (production, finance, HR) affect marketing decisions (e.g., budget constraints).
2) Suppliers: influence quality and cost of inputs (e.g., raw material price rise affects product price).
3) Intermediaries: wholesalers, retailers, logistics influence availability and service (e.g., fast delivery improves customer experience).
4) Customers: consumer vs business buyers have different needs and buying behaviour.
5) Competitors: pricing, promotion and product strategies are influenced by competitor actions.
6) Publics: media, local community, financial publics impact company image.

B) Macro environment (PESTLE)
- Political: taxes, FDI rules, government stability.
- Economic: inflation, income, recession, interest rates.
- Social: lifestyle changes, demographics (youth population), culture.
- Technological: internet, digital payments, AI marketing tools.
- Legal: consumer protection laws, advertising standards.
- Environmental: sustainability pressure, climate issues.

Example: a plastic ban (legal/environmental) forces brands to redesign packaging and change supplier base.

Hence, understanding environment helps firms identify opportunities and threats and plan marketing strategy.

Question 15

Explain the marketing management process and show how marketing mix decisions are taken (use a simple flow/framework).

Accepted Answer

Marketing management process is a systematic approach to analyse the market, choose target customers and design strategies to achieve objectives.

Steps (exam-style):
1) Market analysis and research
- Understand customer needs, market size, competitors and trends.
- Collect insights through surveys, observation, sales data and feedback.

2) Segmentation, Targeting and Positioning (STP)
- Segment the market into groups (e.g., students, professionals).
- Select target segment(s) based on attractiveness and capability.
- Position the brand clearly (e.g., 'value for money' or 'premium quality').

3) Design marketing mix (4Ps/7Ps)
- Product: decide features, quality, branding, packaging and service support.
- Price: choose pricing strategy, discounts and payment terms.
- Place: decide channels, distribution intensity and logistics.
- Promotion: plan advertising, sales promotions, PR and personal selling.
(For services add People, Process and Physical evidence.)

4) Implementation
- Execute plans: launch product, set distribution, run campaigns, train sales staff.

5) Control and feedback
- Measure KPIs like sales, market share, customer satisfaction and repeat purchase.
- Take corrective action and improve based on feedback.

Simple flow:

```mermaid
flowchart TD
  A[Market research] --> B[STP decisions]
  B --> C[Marketing mix 4Ps/7Ps]
  C --> D[Implementation]
  D --> E[Control & feedback]
  E --> A
```

Thus, marketing management converts customer needs into a practical plan and ensures continuous improvement.

Introduction to Marketing: Meaning, Scope, Concepts and Marketing Environment

8 more questions to unlock