Introduction to Marketing

The common misconception that marketing means to sell the product by clever ways or sell them anyhow or at the
most the art of selling. But actually it is something more than that;
it is the art of making the right thing and getting it to the right people in the right way or the most efficient way.
Traditionally,
A market was a physical place where buyers and sellers gathered To buy and sell goods & services
Market is the place or lieu where exchange and business takes place. It is the ground for the selling and buying
Economists describe a market as a collection of buyers and sellers who transact over-a particular product or product
class.
For consumer market means the place where they exchange the product with money
For manufacturer market means all the potential buyers group in the society who will buy product if they are
motivated towards it.
Market mechanism
Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn
them into goods and services and then sell finished products to intermediaries, sell them to consumers.
Consumers Sell their labor' and receive money with which they pay for goods and services.
The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses
these goods and, services, to provide public services. Each nation's economy and the global economy consist of complex
interacting sets of markets linked through exchange processes.
KEY CUSTOMER MARKETS:
Consumer Markets:
Companies selling mass consumer, goods and services such as soft drink, cosmetic and athletic shoes and equipment spend a
great deal of time trying to establish a superior brand
Business market:
Companies, selling, business, goods and services often face well-trained professional buyers who are skilled in evaluating
competitive offerings. Business buyers buy goods in order to make or resell a product to other buyers at a profit. Business
marketers must demonstrate how their products will help these buyers achieve higher revenue and lower cost.
Global Markets
Companies selling goods and services in the global marketplace face additional decisions and challenges. They must. decide
which countries to enter, how to enter each country, how to adapt their product and service features to each country; how to
price their products in-different countries; and how to adapt their communications to fit different cultures
What Can Be Marketed?
Goods
Properties

Services
Experiences
Organizations Information

Events
Ideas

Customer :Who just buys the product may be for resale

e.g. Industrial Buyer
Consumer :Who not only buys the product but consumes

Persons Places

e.g. Individual buyer (a kid buying an ice-cream)

Seller
A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is
an act of completion of a commercial activity
Seller is the person, agent, institute or organisation who sell the product or services to the prospect customer in the
market with exchange of money or value
Product
A Product is a set of or a bundle of Attributes , Benefits & Value.
A Product is Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy
a want or a need.
e.g. Car, Mobile, Computer, Washing Powder & etc.
Anything that can be offered to Satisfy a need or want of end user.
A product is not necessarily an object; it can also be a scheme, an exchange offer, a holiday trip or even an idea. All
these things can be referred to as products.
Goods & Services
Goods would be defined as anything that have physical dimensions can be offered to market to satisfy anyone wants
or needs.
e.g. Electronics goods, grocery products, soaps etc..
Services are activities, benefits or satisfactions which are offered for Sale or provided in connection with sale of
goods. Services are human efforts which provide succor to needy.
e.g. Medical service to ailing person, education to student, transportation, insurance, lawyer etc.
How can we obtain products ???
Self production fish hunting

By using force to get product burglary

By begging it homeless person

By offering a product, a service, or money in exchange for something he or she

desires.

Need, Want & Demand

Human Need is a state of felt deprivation of some basic satisfaction
Needs are basic human requirement e.g. People require Food, Clothing, Shelter, Safety
Wants are desire for specific satisfier of these deeper needs
e.g. Food Burger, Clothing- Arrow Car Mercedes
Demands = Want + Support of Money + Willingness to spend
Demands are wants for specific products that are backed by an ability & willingness to buy them. Supported by Purchasing
Power
Exchange , Transaction, Value
Exchange involves obtaining a desired product from someone by offering something in return.
Five conditions must be satisfied
At least two parties.
Each party has something that might be of value to the other party.
Each party is capable of communication & delivery.
Each party is free to accept or reject the exchange offer.
Each party believes it is appropriate or desirable to deal with the other party.
Two parties are engaged in exchange if they are negotiating-trying to arrive at mutually agreeable terms. When an
agreement is reached, we say that a transaction takes place.

A transaction is a trade of values between two or more parties

Value
is worth derived by the customer from owning and using the product.
Value reflect the perceived tangible and intangible benefits and cost to customer
Value can be a combination of Quality, Service & Price.
Customer Satisfaction :When a customer get what he expects from a product. e.g. Bike Average
Satisfaction reflects a persons comparative judgment resulting from a product perceived performance (or outcome)
in his or her expectation.
Customer Delight :When a customer get more that his expectation e.g. Gillet blades (shaving)
Types or Stages of Product Development
1. Core Product :Fundamental Need or a Basic Need
e.g. Hotel Room booking Rest & Sleep
2. Generic Product :Basic Version of Product
e.g Building with rooms & rent
3. Expected Product :Set of attributes & Conditions that a buyer normally expect & agree to when they purchase a
Product .
e.g. Clean bed, Soap, Towel, Telephone.
4. Augmented Product :Additional Service, more than expectation
e.g. TV set, Fresh flowers, e-Payment Facility & etc.
Approaches to Marketing
Product Concept

Consumers Favors quality, performance or innovative features

Managers focus on producing superior Products
Little or No Customer Input
Rarely Examine Competitor's Product
Management commit Better-mousetrap
Leads to marketing Myopia

Production Concept
Concentrate on achieving high production efficiency, low cost & mass distribution
Consumers prefers inexpensive items in Developing countries
Used also in expanding Market
Over Populated Counties Inexpensive Toys, electronics
Selling Concept
Consumers & businesses if left alone, will not buy enough

Undertake aggressive Selling & Promotion

Consumers shows buying inertia until coaxed
Many use it at the time of over capacity or Competition
CONSUMER DURABLES

Marketing Concept

Emerged in mid 1950

Customer centered
Instead of hunting marketing is now Gardening
Not right customer for you product but right product for your customer
More effective than competitors in creating, Delivering, and communicating superior customer Value
Putting People First
Fulfilling Buyers Needs

Societal Marketing
Mass production increases the level of production The product useful for some customer may not be useful for society
as a whole e.g. leather garment & wild life products
Improved technology increases wastage
Social product are not marketed in mass
The societal marketing concept is a management philosophy that believes in assessing the need & wants of consumer
or target market and to adopt the organisation to produce & market goods to give expected satisfaction more effectively than
its competitors in such a way that preserves the consumer & society's well being.
Company has to market those product which will satisfy consumer as will maintain well being of society
Should run .. Health care camp
Children education
Transport development
What is Marketing Myopia?
What is Marketing
Kotlers definition:
Marketing is a societal & Managerial process by which Individuals and groups obtain what they need and want
through creating, offering, and freely exchanging products and services of value with others.
The AMA managerial definition:
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.
Marketing in the continuous process which start from understanding the consumer need, Developing
concept, designing the product, manufacturing the product & making it easy to sell & use.
Marketing is an Art of Satisfying the End User.
It is the art of making the right thing and getting it to the right people in
the right way or the most efficient way.
Marketing can be defined as a system of integrated business activities designed to develop strategies and plans to the
satisfaction of the customer wants.
This can widely be understood as the activities that are required to get the product in the most efficient way to the
customer

Marketing: typically seen as the task of creating, promoting, and delivering goods and services to consumers and
businesses.

Functions of Marketing
Market research
Promotion
Customer service
Event Management

Product development
Advertising
Public, Media,
Market research

Competitor analysis
Pricing strategy
Publicity
Personal selling
Community, Govt. relation

Place strategy
Direct marketing

Market research is for discovering what people want, need, or believe. It can also involve discovering how they act.
Once that research is completed, it can be used to determine how to market your product.
Questionnaires and focus group discussion surveys are some of the instruments for market research
Product development
A Product is a set of or a bundle of Attributes , Benefits & Value.
A Product is Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy
a want or a need
e.g. Car, Mobile, Computer, Washing Powder & etc.
Quality
Sizes

Product Variety Design

Features
After sale Services
Warranty

Brand Name

Packaging

Competitor analysis
Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of
current and potential competitors. This analysis provides both an offensive and defensive strategic context through
which to identify opportunities and threats.
One common and useful technique is constructing a competitor array. The steps include:
Define your industry - scope and nature of the industry
Determine who your competitors are
Determine who your customers are and what benefits they expect
Determine what the key success factors are in your industry
Rank the key success factors by giving each one a weighting - The sum of all the weightings must add up to one.
Rate each competitor on each of the key success factors
Multiply each cell in the matrix by the factor weighting.
Sum columns for a weighted assessment of the overall strength of each competitor relative to each other.
Competitor analysis Basis
Background
Financials
Products
Corporate and marketing strategies

Marketing

Facilities

Personnel

Pricing
Economist :Price is the exchange value of a product or service always express in Money
Price is what is charged for something. That something is generally value of the product attributes or utility value
of the product or service.
Price is the amount of money & or other items with utility needed to acquire a product has price may involve more
than money.

Price is the combination of the specific goods or service that is the object of transaction, Several supplementary
services (Warranty, after sales service), & In a very real sense, the want satisfying benefit provided by the product.
e.g. A table @ Rs. 2000 & 3000
Pricing
For Consumer :Price is a package of expectation & satisfaction
Bundle of expectation or satisfaction
Physical Product + other attributes such as delivery, installation, credit, return privilege, after sales servicing & so on
For Seller :Price is a source of revenue and a main determinant of profit
Price is the important factor in all Marketing Mix because this is the only one way of Revenue in term of money or profit rest
are the Expenditure element.
Price is the only element of marketing mix generating revenue, while all else generate cost.
It is the most important determinant of profitability of a business. Price is what is charged for something. That something is
generally value of the product attributes or utility value of the product or service.
Price is the amount of money & or other items with utility needed to acquire a product. Thus price may involve more than
money.
Price is the combination of the specific goods or service that is the object of transaction.
Pricing refers to the amount of money exchanged for a product. This value is determined by utility to the
consumer in terms of money and/or sacrifice that the consumer is prepared to give for it.
Objectives

Increase sales volume

Increase revenue

Achieve or increase profits

Increase or maintain market share

Eliminate competition

Achieve advantages of mass production

Pricing importance

Price factor controls the sales volume

Price factor determines the mkt share
Price factor determines the total sales revenue
Price factor regulates the rate of return on investment
Price factor decides the level of competition
Price factor controls the margin
Price factor creates impact on unit cost in mass production
Price factor contributes to set the image of the product and firm in the mkt

Place
Channels

Coverage

Assortment

Location

Inventory

Transport

Distribution is the process of handling of produced goods to ultimate customer.

Ultimate purpose of manufacturing any goods is to handover the same to the end users or customer for its utilization. The
whole process or entire function of getting good into the hands of customer is called as distribution
Channel of Distribution or trade channel for a product is the route taken by the title of the goods as they come from the
producer to the ultimate consumer or industrial user.
William Standton.
Channel of distribution is a team of merchant and agents business institutions
that combine physical movement and title movement of products in order to create useful assortments for specific markets
Prof. C. Glenn walter.

Place - Importance
Ensure physical flow
Place & Time utility
To satisfy Customer demand
Transportation
Storage
Information
Promotion
Other
Promotion
Promotion is the process of marketing communication to inform, persuade, remind and influence consumers or users
in favor of your Products, services & ideas.
Promotion is the business of communicating with customers. It provides information that assists them in making a
decision to purchase a product or service.
Promotion is a form of communication with an additional element of persuasion to accept ideas, products & services.
Promotion Mix]
Advertising
The term Advt. originated from The Latin word adverto, which means to turn round. Advertising thus
denote the means employed to draw attention to any object or purpose.
Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an
identified sponsor.
Advertising is a form of communication that typically attempts to persuade potential customers to purchase or
to consume more of a particular brand of product or service.
Purpose of Advertising
Promotion of New Product

Supports to personal selling

Brand Building
Changing Customer Attitude
Immediate Buying
Pre-sold goods
Dealer support

Sales Promotion
Sales promotion is a variety of short-term incentives to encourage trial or purchase of a product or service by the
consumers or the trade (retailers).
Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.
Types of Sales Promotion
1. Consumer Sales Promotion
Consumer sales promotion methods encourage or stimulate consumers to patronize specific retail stores or try
particular products
2. Trade sales promotion
Trade sales promotion methods stimulate wholesalers and retailers to carry a producers products and to market these
products more aggressively.

3. Sales Force Promotion

Sales Force Promotion methods stimulate all the potential customer
Organisation, Individuals &etc.)

(Wholesaler, Retailer, Industry, Institution,

Events and Exhibition

Events & Exhibition is another tool for generating public relation & Brand awareness in the target market with Low
cost.
Sponsorship
When Newsworthy events take place, Business firms associate themselves with such a event as a Sponsor
Public Relation / Publicity
A Public is any group that has an actual or potential interest in or impact on a companies ability to achieve its
objectives
PR involves a variety of programs designed to promote or protect a companys image or its individual products.
Public Relations
Personal Selling
Personal selling is one of the Direct marketing tools which involves direct face to face conversation & sales with
customer.
Personal selling is the activity where companies sales people directly approach to consumer at their own place &
interact with them in accordance to sale the Product or Services.
Direct Marketing
Direct Marketing is the use of consumer-direct (CD) channels to reach & deliver goods & services to consumers
without using marketing middlemen.
Direct marketing is concerned with establishing an individual relationship between the business offering a product or
service and the final consumer.
Direct marketing is the Demassification of the Market
Direct Marketing may be called as NonStore Retailing
Benefits of Direct Marketing

Direct Contact with Consumer.

Individual attention to consumer.
Deliver Perfect solutions to customer problems & query.
Facilitates sharper segmentation & targeting.
End to end communication.
Cost effective.
Customer Relationship building.
Benefits to Consumer.

Forms / Ways / Medias / channels/ Tools of Direct Marketing

Some Examples
Kiosk / Hoardings / Banners
Kiosk is a small building or structure look like a stalls
e.g. newsstands, refreshment stands, costume jewelry outlets, customer order placing machines.
Rotating Kiosk

The Exhibitor Exclusive Rotating Kiosk is a stand alone marketing tool for use by exhibiting companies at trade and
consumer shows to maximize their exposure to all purchasing agents, buyers, and attendees of the show by allowing their
promotional literature to be displayed and picked up at the show entrance.
Hoardings
Hoarding is the large size display design generally displayed at roadside to attract traveling target market.
Banners
Banners are small size display design, generally tied on polls, hanging material, stalls & etc.

Internet
In current market scenario, use of computers & electronic gadget have been increasing people are becoming more
literate towards electronic gadget, large number of people are using internet in their day to day life hence, Internet marketing
is taking place in
E- Mail (Electronic mail)
Many companies are generating the consumer electronic database & sending e-mail the them to attract toward
companies product, to build relationship, Brand awareness & etc
Websites
Large number of companies have their own website to interact with people & the number of website is increasing on
daily basis.
e.g. www.ebay.com, www.amazon.com, www.alibaba.com
The Holistic Marketing Concept or Marketing in 21st Century
Now a days companies need fresh thinking about how to operate & compete in new marketing environment.
Marketers in the 21st century are increasingly recognising the need to have more complete, cohesive approach that
goes beyond traditional application of marketing concepts.
The Holistic concept is based on the development, design and implementation of marketing programmes, processes
and activities that recognises their breadth and interdependencies.
Four components are:

Relationship marketing
Integrated marketing
Internal marketing
Social responsibility marketing

Relationship marketing is a form of marketing developed from direct response marketing campaigns conducted in the
1970s and 1980s which emphasizes customer retention and satisfaction, rather than a dominant focus on point-of-sale
transactions.
Relationship marketing differs from other forms of marketing in that it recognizes the long term value to the firm of
keeping customers, as opposed to direct or "Intrusion" marketing, which focuses upon acquisition of new clients by targeting
majority demographics based upon prospective client lists.
Relationship marketing has the aim of building mutually satisfying long-term relationship with key parties
customer , supplier, distributors and other marketing partners.
Relationship marketing builds strong economic, technical & social ties among the parties.

Relationship marketing involves cultivating the right kind of relationship with the right constituent group.
Marketing must not only do Customer Relationship Management (CRM) but also Partner Relationship Management
Four key constituent of relationship marketing
Customer
Employees
Marketing Partners (channels, suppliers, distributors, dealers, agencies)
Member of the financial community (shareholders, investors, analyst)
The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing:
network. A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers,
distributors, retailers, ad agencies, university scientists, and others) with whom it has built mutually profitable business
relationship.
In 21st century customized product concept has been introduced.
One traditional depiction of marketing activities is in terms of the marketing mix, which has been defined as
the set of marketing tools the firm uses to pursue as its marketing objectives. McCarthy classified these tools into four broad
groups, which he called the four Ps of marketing; product, price, place, and promotion.
Marketing Mix
Traditional Approach to Marketing Communications
Social meaning every thing dealing with the people
Responsibility means accountability between the two
Definition
Corporate social responsibility is operating a business in a manner which meets or excels the ethical, legal, commercial and
public expectations that the society has from the business
The obligation of businessmen to pursue those policies, to make those decisions, or to follow those line of action which are
desirable in terms of objectives and values of society
People Issues
Health Safety Diversity

Ethnicity

Education and Literacy Prevention of Child Labour

Planet Issues
Climate Change
Energy
Water Chemicals, toxics and heavy metals
Ozone layer depletion Ocean and fisheries

Air pollution

Waste Management

Difference Between Charity and CSR

CHARITY

Means donating money, goods, time or effort For poor and needy cause
It is selfless giving toward any kind of social need CSR
It is how company align their value to social cause
It can be people centric or planet centric
It is not self less act, company derive long term benefit from CSR

Internal marketing
(IM) is an ongoing process that occurs strictly within a company or organization whereby the functional
process aligns, motivates and empowers employees at all management levels to consistently deliver a satisfying customer
experience.
According to Burkitt and Zealley, "the challenge for internal marketing is not only to get the right messages
across, but to embed them in such a way that they both change and reinforce employee behaviour"

IM functioning as a continual internal 'upskilling' process.

Alignment of the organizations purpose with employee behavior.
Employees internalizing the core values of the organization.
Motivation, reframing and empowerment of employee attitude.
Inside-out management approach.
Retaining a positive customer experience throughout the business objectives
encourages the internal market (employees) to perform better;
empowers employees and gives them accountability and responsibility;
creates common understanding of the business organisation;
encourages employees to offer superb service to clients by appreciating their valuable contribution to the success of
the business;
helps non-marketing staff to learn and be able to perform their tasks in a marketing-like manner;
improves customers retention and individual employee development;
integrates business culture, structure, human resources management, vision and strategy with the employees'
professional and social needs;
creates good coordination and cooperation among departments of the business.
Problems affecting successful implementation of Internal Marketing.