The concept was there even much earlier before it gained the name of marketing. Just togive you an example, suppose let us say you are an individual who has become veryhungry, but you know how to make food by yourself. One of the alternative option that isavailable to you is to produce your own food, this is called self production.Suppose you are not able to produce your own food; you see some other person havingfood. You are a very strong man that person maybe not a very strong person. What canyou do? You can go coercion to part with food, this is called coercion. Now, suppose thereverse happens that is you are a weak person and you desperately want to have food; theother person is a strong person having food, then what can you do? You can beg him togive you some food, this is called supplication.Now, you do not want to do either of this coercion or supplication and you do not knowhow to produce your own food. Now, what could be the other process that you can think
of? You can go to a right royal method that is called exchange. You can approach theother person and say look you have got food, I have got in return for your food thismoney, can we change this food to this money. This is called exchange. So, thisexchange happens to be one of the 4 alternative options that is available to an individual.He has got four options - self-production, coercion, supplication, and exchange. So, thisexchange happens to be a better under right royal option. The conditions for thisexchange are there are two parties involved, each party has something of value to theother, that is he can offer something of value to the other party. Then each party iscapable of communication and delivery that is he can communicate with the other personand also deliver whatever product is required by the other person.With all this this exchange may not take place, because the fourth condition of exchangeis that each party is free to accept or reject the offer of the other. You may be thinkingthat the other person might be interested in your product, but at the end of this process ofcommunicating to him; he may say I am not interested in your product or offering.This is the fourth condition of the exchange process, that is each party is free to accept orreject the offer of the other. If you look at a market, what is a market? This market can belooked at as an arena for potential exchanges – i.e. there is a potential for the exchange totake place however need not necessarily take place.Markets, if you see worldwide, they serve as an arena for potential exchange, but most ofthe times the exchange process will not take place. So, a marketer has to be prepared forthis eventuality that, the exchange may or may not take place ok. If you look at thepresent day’s fiercely competitive market this becomes even more obvious.So, when people, when suppliers up approach a consumer and the consumer has a lot ofbasket from which the same product is available from different suppliers, he would liketo evaluate the product of the different suppliers. Then he will zero in on one particularsupplier, and then he may go in for the process of exchange.If you go to a place like Big Bazaar you can see so many things on offer; everythingappears to be interesting when you see it for the first time. When you look at it more andmore in depth you may take a decision yes it is interesting, but I am not going in for thisoffer, you may decide against going in for the offer.
This is where markets are heading towards now. In other words the buyer in the Indianmarket is having lot of options in the present-day scenario. It is no longer a supplier’smarket, it is a market where the buyers have a lot of choice, they can choose from a largevariety of offerings. And, from this large variety of offerings the buyer can zero in onthat particular product which he thinks is most suited for him.When we looked at what is a product this product is something which is capable ofsatisfying a want. So, product is something that is viewed as capable of satisfying a want.We looked at this person who is a hungry man and what is going to satisfy him-food isgoing to satisfy his hunger. Now, in the offering of the food itself there maybe variety offoods which the consumer right now can have and say I will have this offer 1, or offer 2,or offer 3, this is more suitable to me like that.This becomes what is called a product offering, this product offering to satisfy the needsof the consumer. So, when we look at all this, how can we define marketing formally? If,you look at this this marketing can be defined formally in this manner the top that iswhere you see it is a social and managerial process, by which individuals and groups oftime what they need and want through creating and exchanging products and value withcustomers.What is the social process? Because, people are involved in this process of marketing;so, for marketing to take place you require people that is there should be at least twoparties in an exchange process, there may be more number of parties also. It is also amanagerial process. What is this managerial process? Why it is a managerial process?Because as a consumer you have to take the decision, whether you are going in for theproduct or not going in for the product. So, in other words decision making is involved.It is both a social and a managerial process, by which individuals and groups of timewhat they need and want, there is there are two terms, which are placed here one is need,another is want. What does it mean? Need maybe something basic that is you require thatwant is something above this ok. You wanted a 4 wheeler; you can have a basic 4wheeler without any automatic options, that is satisfying your need.Now, when you looked at the other person having automatic options of windows closing,remote locking all those types of things. You may like to graduate from this need tohaving those options. So, whatever earlier was want for you it may become need? So, the
needs and wants many times are getting addressed according to the situation and theaffordability of the consumer.A basic model of computer you may want to be the need that is in the present-daycircumstances, but the party might want I would like to have advanced options ofdifferent programs, different calculations, different settings which are required whereyou are going into the next level. That next level is where you say I want all these typesof offerings on my computer.So, these individuals and groups of time what they need and want to through creatingand exchanging products and value with customers. So, when you are looking for higheroptions automatically the value of the product, which is going to be offered to you willalso be more. And, if you can afford to have that your needs and wants to go through aninterchange process, that is whatever was your want earlier, it may become your need ok.Some years back when computer was really not there as an offer, this computer was awant. Now, what is the present-day scenario? Computer has become a need - your littleson or daughter may like to use that computer whether it is an iPad and that may be usedin his or her class by the teachers also for imparting education.So, whatever was a want earlier that is you did not want to have that, now as the time hasprogressed that is in our terminology as the environment has changed this want hasbecome a need ok. So, earlier when mobility was not all that significant you could walkto your workplace.Now, if you see the present-day scenario, you are covering a lot of distance to reach yourplace. Mobility becomes extremely important. You may use your own car, you may usebus, or you may use a metro. Earlier, what was a want, now has become a need.You must say my house will be about 20 kilometers away from the workplace, I shuttleto the workplace through this different options, I come to the metro station by a bus fromthe metro station I catch the metro and reach the destination, again from the destination Ireach that workplace again by a another bus. All these have options are made available tothe consumer right now.
This is one formal method of defining marketing. Suppose you want to simplify thisdefinition of marketing - you can look at marketing as a human activity, kindly note thatall this activity been performed by humans only directed at satisfying needs and wantsthrough the exchange process.Human activity is directed at satisfying needs and wants through exchange process. Welooked at what is exchange. Exchange is one of the 4 alternative options that is availableto an individual, we looked at a person who is hungry he has got these four options toexercise, that is he can produces his own food or he can if he is a very strong personmake that weak person the other person to part with food.If he is a weak person and the other person is strong, he can beg him to give food. Hedoes not want to do any of these he can go into the exchange process saying that I willgive you a money give food. This is where the marketing can be looked at as a humanactivity directed at satisfying needs and wants through the exchange process.There are different types of marketing. And, some of the if you look at the different typesof marketing. The, you can have a human need type of marketing or you can have aproduct type of marketing, and examine main example of human need type of marketingcan be your relaxation market, what is this relaxation market?
If you look at the present-day scenario, you find that you are tensed through the week-that is you have put a lot of stress right from the morning up to the night. And, then you
may during the weekend like to relax. This relaxation may take different forms like itmay it can be going to a resort, or it can be going to a spot treatment, or it can be goingto meditation, or it can be going through yoga, or it can be a combination of all this.The result is there are providers of this relaxation for the humans. They are looking at therelaxation market. And, if you look at the present-day ads in different media, whether itis a print media or the visual media, you find lot of advertisements on this relaxationmarket coming up, these are trying to satisfy the needs of the individual who is dressedup in the workplace.The second type is your product type market, starting from the basics for an individualfor him to look a little better and also comfortable for example, he may like to haveshoes. The shoes is a very big market in the present day circumstances, you have all
types of shoes, it can be a formal shoe, it can be a non formal shoe all this coming underthe shoes market.The third type of market is called the demographic market or the youth market. If youlook at the present-day scenario, many of the products which are being sold in themarkets, they may be targeting the youth, what could be a good example? A goodexample can be your two-wheeler market, in the two-wheeler you may look at the bikes,bikes are likely to appeal to individuals.These individuals are going to look at bikes, which can zoom at a very high speed
perhaps they want to exhibit that they can driver at big speeds. If you look at the present-day market of for these bikes you may see this bullet us making lot of noise and also
zooming. The present-day Indian youth is fond of taking these types of bikes.If you are a middle-aged person or an aged person, you may not like this sound of thisbike, but for this youth, that is the sound which he wants. These many products whichare offered in the present-day scenario make an appeal to the youth, whether it is theproduct which I just mentioned the bike or it may be a product a different productaltogether, which he may like to use. So, which he may which may appeal to him for aparticular age group.So, a person in the 20 to 25 he may like a few things, 25 to 30 year a few additionalthings, 30 to 35 a few more additional things like that. We will look at all these things inmore detail when we go along. The fourth one is what is called the geographic market.What do you mean by this geographic market? This is best explained by an example ofthe French market. What is this French market? This French market is well known forcreating fashion.So, there is a story which dates to more than perhaps the 1800s period, when women arewearing long skirts - European women. For one of these girls who was wearing this longskirt, this skirt had given way at the bottom that is it had got tore on at the bottom, andthis tore on piece of the skirt was in fact, more or less sweeping the road on which shewas going. Many people observed this tore on piece of the skirt.They said this is a new fashion, the result was the next few days followed by many girlswearing a skirt, which is tore on at the bottom and which has more or less sweeping the
road. Now, if you look at the women’s dress in the market right now, the same piecewhich was more or less sweeping the road is still there, but it is there at the top of theskirt. So, these are the different types of markets which are available to you and this ishow markets are broadly categorized, that is it can be a human need market, it can be aproduct type market, or it can be a demographic market, or a geographic market.Human needs market is based on the needs of the individual, product type markets basedon the products which are offered for the individual, demographic market, beingcharacterized by the age of the market, that is the individuals the geographic market fromthe regions that is concerned ok.We will stop here we will take up in the next class, that is the next lecture the nextaspects of market.