IGNOU : M.COM : IBO 2 : UNIT 1 : Q - 1. Define marketing and explain its implications. Explain how marketing is different from selling.

Ans. According to the American Marketing Association "marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. This definition is undoubtedly an improvement on the description of marketing as selling. According to this definition, marketing is also encompasses other activities along with selling. If you are an entrepreneur who wants to start a new business, you do not have a product. In fact you will have to decide what product you should manufacture and sell. How do you decide his? This you Can do only when you identify the needs which require satisfaction among human beings. Once you identify the need of a group of human beings, you can determine the product which can satisfy that need. This is a part of the modern philosophy of marketing.

Difference between Selling and Marketing

Many people use the terms marketing and selling as synonyms. In fact, these two terms have different meanings in marketing management. An understanding of the differences between them is necessary for you to be a successful marketing manager.

Selling is an action which converts the product into cash but marketing is the whole process of meeting and satisfying the needs of the consumer. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service. Selling focuses on the needs of the seller whereas marketing concentrates on the needs of the buyer.

Selling is the modern version of the exchange under barter system. When the focus is on selling, the businessman thinks that after production has been completed the task of the sales force starts. It is also the task of the sales department to sell whatever the production department has manufactured. Aggressive sales methods are justified to meet this goal and customer's actual needs and satisfaction are taken for granted.

But marketing is a wider and all pervasive activity to a business firm. The task commences with identifying consumer needs and does not end till feedback on consumer satisfaction from the consumption of the product is received. It is a long chain of activities which comprises production, packaging, promotion, pricing, distribution and then the selling. Consumer needs become the guiding force behind all these activities, Profits are not ignored but they are built up on a long run basis. Distinction between selling and marketing are summarized in the following Table:

                

Selling	Marketing
1.  Emphasis is on the product	Emphasis is on customers wants
2.  Company first makes the product and then figures out how to sell it	Company first determines customers wants and then figures out how to make and deliver a product to satisfy these wants.
3.   Management in sales volume oriented	Management is profit oriented
4.   Planning is short-run-oriented, terms of today" products and markets	planning is long-run-oriented in terms of new products,
5.   Stresses needs of seller	Stresses wants of buyers