Markets, Marketing Concepts and Marketing versus Selling (ISC Class 12 Commerce)
Updated 18 October 2026 · Fact-checked
A market is the whole system of buyers and sellers who come into contact to trade a product at a price. Marketing is the process of identifying customer needs and satisfying them profitably through creating, offering and exchanging products of value. The traditional concept produces first and then sells; the modern concept starts with customer needs and aims at satisfaction, with the societal view adding social welfare. Selling is only a part of marketing.
Notice where each flow starts: selling begins at the factory and ends with sales, while marketing begins with customer needs and ends in satisfaction.
Illustration drawn for QuestionBuddy.
Understand Markets, Marketing Concepts and Marketing versus Selling
1. Meaning of a market. Not just a place: the whole system of buyers and sellers who come into contact, physically or electronically, to buy and sell a product at a price.
2. Types of markets
- By area: local, regional, national, international.
- By time: very short period (supply fixed, e.g. fresh fish), short period, long period (supply can adjust).
- By nature of goods: commodity, capital, money and foreign exchange markets.
- By volume of transactions: wholesale and retail.
- By competition: perfect and imperfect (monopoly, monopolistic competition, oligopoly).
- By mode: physical and online.
3. Marketing. A social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others. In business terms: identifying customer needs, developing products to meet them, pricing, promoting and distributing them, and satisfying customers profitably.
*Features*: needs and wants; creating a market offering; customer value; exchange mechanism; customer orientation and satisfaction; integrated approach; continuous process.
4. Traditional versus modern concept
| Basis | Traditional | Modern |
|---|---|---|
| Focus | Product (sell what we make) | Customer (make what customers want) |
| Starting point | Factory | Market and customer research |
| Means | Aggressive selling and promotion | Integrated marketing mix |
| Aim | Profit through sales volume | Profit through customer satisfaction (and social welfare) |
| Time horizon | Short term | Long term |
The societal marketing concept adds concern for long-term social welfare (environment, health).
5. Marketing versus selling
| Basis | Marketing | Selling |
|---|---|---|
| Scope | Wide: research, product planning, pricing, promotion, distribution, after-sales service | Narrow: a part of marketing; transfer of ownership |
| Focus | Customer needs and satisfaction | Product and the seller's needs |
| Starts | Before production | After production |
| Ends | Continues after sale | Ends with the sale |
| Aim | Profit through customer satisfaction | Profit through sales volume |
| Approach | Integrated, long term | Short term, pushing products |
6. Illustration (imaginary). Under selling, a firm makes 10,000 sets and sells 6,000 after heavy discounts; unsold = 4,000. Under marketing, research shows demand for 7,500 sets; it makes 7,500 and sells 7,200; unsold = 300. Unsold stock falls from 4,000 to 300, a reduction of 3,700 sets.
Markets, Marketing Concepts and Marketing versus Selling: key facts
- Marketing
- Identify needs
- Create offering
- Exchange
- Satisfy customer
- Profit
- Starts before production.
- Concepts
Traditional produce then sell Modern need first, then produce Societal add social welfare - Three views.
- Marketing and selling
- Selling
- Is a part of
- Marketing
- Marketing is wider.
How to answer Markets, Marketing Concepts and Marketing versus Selling questions
Questions ask for types of markets, features of marketing, or a case classified as the traditional or modern concept, or marketing versus selling.
- 1Ask which came first: the product or the customer's need.
- 2If research on needs came first, it is the modern concept; if the factory output came first, traditional.
- 3For markets, name the basis of classification: area, time, nature, volume, competition or mode.
- 4For distinctions, use at least four bases.
Markets, Marketing Concepts and Marketing versus Selling in real life
The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.
Very short period market
Suppose a vendor at a village mandi must sell the morning's harvest of strawberries by afternoon because they cannot be stored.
Which market by time is this?
Try it first, then show the solutionSolution
- Supply cannot be changed in the short time available.
Answer: Very short period market.
Memory hook: Perishable means very short.
Modern concept
Imagine a bicycle company surveys college students, learns that they want foldable cycles that fit in hostel rooms, and then designs and prices such a cycle.
Which concept of marketing is followed?
Try it first, then show the solutionSolution
- It began from customer needs.
- It then produced to satisfy them.
Answer: Modern (marketing) concept.
Memory hook: Customer first, factory second.
Tricks to remember Markets, Marketing Concepts and Marketing versus Selling
Short memory aids. Say each one aloud once, then use it on a question the same day.
Traditional = Make then sell, Modern = Find then make
Traditional: make and then sell. Modern: find the need and then make.
Use it when: Classifying a concept.
Selling is a sub-set
Selling is one step inside marketing.
Use it when: Marketing versus selling.
Markets, Marketing Concepts and Marketing versus Selling: solved examples
Ordered from board level to HOTS. Try each one before you open the solution.
Example 1: Identify the concept · 1 mark · MCQBoard level
A company makes 5,000 pressure cookers and then runs aggressive advertising and discount offers to sell them. This follows the:
(a) modern concept
(b) societal concept
(c) traditional concept
(d) customer concept
Try it first, then show the solutionSolution
- Produce first, then push sales: traditional.
Answer: (c)
Example 2: Meaning and features · 2 marks · Short answerBoard level
Explain the meaning of marketing and state two of its features.
Try it first, then show the solutionSolution
- Marketing is a process of identifying customer needs and satisfying them profitably through creating, offering and exchanging products of value.
- Features: customer orientation and satisfaction; it is a continuous process.
Answer: Process of satisfying needs profitably; customer orientation, continuous.
Example 3: Unsold stock · 4 marks · Short answerHarder board level
Firm A makes 10,000 sets and sells 6,000 after heavy discounts. Firm B surveys the market, finds demand for 7,500, makes 7,500 and sells 7,200. Calculate unsold stock for each and the percentage of output unsold, and name the concept each follows.
Try it first, then show the solutionSolution
- A unsold = 10,000 - 6,000 = 4,000 sets; 4,000 / 10,000 x 100 = 40%. Traditional concept.
- B unsold = 7,500 - 7,200 = 300 sets; 300 / 7,500 x 100 = 4%. Modern concept.
- B started with customer needs and so avoided most unsold stock.
Answer: A 4,000 (40%) traditional; B 300 (4%) modern.
Example 4: Marketing versus selling · 4 marks · Short answerHarder board level
Suppose a salesman says, 'Marketing and selling are the same as both aim to sell goods.' Show on four bases why this is wrong.
Try it first, then show the solutionSolution
- Scope: marketing is wide (research, pricing, promotion, distribution, after-sales); selling is narrow and a part of marketing.
- Focus: marketing focuses on customer needs; selling on the product and the seller's needs.
- Start and end: marketing starts before production and continues after sale; selling starts after production and ends with the sale.
- Approach: marketing is integrated and long term; selling is short term.
Answer: Differences in scope, focus, start and end, and approach.
Example 5: Shift to the modern concept · 8 marks · Long answerHOTS / competency
Suppose a long-established soap company still makes what its factory is used to making and pushes it through heavy discounting, while sales fall and new brands grow. Advise it on moving to the modern and societal concepts, with five specific steps.
Try it first, then show the solutionSolution
- Research customers' needs and preferences before deciding what to make.
- Design soaps (for example, gentle or herbal) to match findings and price them at a value customers accept.
- Use an integrated marketing approach: product, price, promotion and distribution work together.
- Provide after-sales feedback and service, since marketing continues after the sale.
- Societal view: use environment-friendly packaging and safe ingredients for long-term social welfare.
- Aim at profit through customer satisfaction, not just sales volume.
Answer: Research, matched product and price, integrated mix, feedback and societal concern.
Where students lose marks in Markets, Marketing Concepts and Marketing versus Selling
The slips examiners see most often, and what to write instead.
Mistake: Defining marketing as selling
Marketing is wider.
Wrong working
Marketing means selling goods to customers.
Right working
Marketing identifies customer needs and satisfies them profitably; selling is only a part.
Do this: Say needs and satisfaction.
Usually costs: 1-2 marks.
Mistake: Reversing the concepts
Traditional starts with product; modern with customer.
Wrong working
Modern concept: produce first, then sell.
Right working
Modern concept: find customer needs first and then produce.
Do this: Modern starts with the customer.
Usually costs: 1 mark.
Mistake: Describing a market as only a place
The definition covers buyers and sellers, physical or online.
Wrong working
A market is a place where goods are sold.
Right working
A market is the system of buyers and sellers in contact to trade at a price, physically or electronically.
Do this: Buyers and sellers.
Usually costs: 1 mark.
Exam tips
- Marketing carries 20 marks across three chapters, so learn both tables.
- Always bring out customer need as the starting point of the modern concept.
- Name the basis when classifying a market.
- Use four bases in marketing versus selling.
Practice questions on Markets, Marketing Concepts and Marketing versus Selling
Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.
Q1 · 1 mark · Very short answerBoard level
What is a market in the commerce sense?
Hint
Not only a place.
Answer
The whole system of buyers and sellers who come into contact to trade a product at a price.
Q2 · 2 marks · Short answerBoard level
Name two types of market based on area.
Hint
Local to global.
Answer
Local, regional, national and international (any two).
Q3 · 2 marks · Short answerHarder board level
Why is the societal marketing concept called an extension of the modern concept?
Hint
Welfare.
Answer
It keeps the customer-satisfaction focus of the modern concept and adds concern for the long-term welfare of society, such as the environment and health.
Q4 · 4 marks · Short answerHarder board level
A firm makes 8,000 units and sells 5,600 under the traditional approach. After market research it makes 6,400 and sells 6,080. Calculate the unsold percentage under each approach.
Hint
Unsold over output.
Answer
Traditional: unsold 2,400, i.e. 2,400 / 8,000 x 100 = 30%. Modern: unsold 320, i.e. 320 / 6,400 x 100 = 5%. The modern approach cut unsold stock sharply.
Q5 · 4 marks · Short answerHOTS / competency
A mobile company says, 'Marketing starts when the product reaches the shop.' Examine the statement.
Hint
Before and after.
Answer
The statement is wrong. Marketing begins before production, by identifying customer needs, and continues after the sale through service and feedback. What begins when the product reaches the shop is selling, which is only a part of marketing.
Test your recall
Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.
1.Which concept begins with customer needs?Show answer
The modern (marketing) concept.
2.Which is wider: marketing or selling?Show answer
Marketing.
3.What does the societal concept add?Show answer
Long-term social welfare.
4.Name a market by competition.Show answer
Perfect or imperfect (monopoly, oligopoly).
Markets, Marketing Concepts and Marketing versus Selling: frequently asked questions
Is an online store a market?
Yes, markets can be physical or online.
Is promotion the same as marketing?
No, promotion is one part of marketing.
Where do I find functions of marketing?
On the objectives, importance and functions topic page of this chapter.