Page 1 - Lesson Note 1

SAI INTERNATIONAL SCHOOL

CLASSS XII

SUBJECT: BUSINESS STUDIES

CHAPTER -11, MARKETING MANAGEMENT

Topics: Market, marketing, features, functions.

(Lesson note-40)

WHAT IS A MARKET

In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather
to enter into transactions involving the exchange of goods and services.

It is in this sense that this term is being used in day to day language, even today. The other ways

in which this term is being used is in the context of a product market (cotton market, gold or

share market), geographic market (national and International market), type of buyers
(consumer market and industrial market) and the quantity of goods transacted (retail market

and wholesale market).

But in modern marketing sense, the term market has a broader meaning. It refers to a set

of actual and potential buyers of a product or service.
For example, when a fashion designer designs a new dress and offers it for exchange, all the

people who are willing to buy and offer some value for it can be stated to be the market for

that dress.

WHAT IS MARKETING
The term marketing has been described by different people in different ways. Some people

believe that marketing is same as ‘shopping’. Whenever they go out for shopping of certain

products or services, they describe it as marketing.

There are some other people who confuse marketing with ‘selling’ and feel that marketing

activity starts after a product or service has been produced.