Table of Contents

CHAPTER 1: MARKETING............................................................................................................................... 2
1.1 Definition ............................................................................................................................................ 2
1.2 Concept ............................................................................................................................................... 2
1.3 Orientations ...................................................................................................................................... 3
1.3.1 Product ......................................................................................................................................... 3
1.3.2 Sales ............................................................................................................................................. 3
1.3.3 Production.................................................................................................................................... 4
1.3.3.1 Societal marketing. ................................................................................................................... 4
CHAPTER 2: THE MARKETING MIX (4 P’s) ..................................................................................................... 4
2.1 Origins ................................................................................................................................................. 5
CHAPTER:3 BRIEF OUTLINE ........................................................................................................................... 6
3.1 Criticisms ............................................................................................................................................. 6
3.2 Modifications and extensions ............................................................................................................. 7
CHAPTER 1: MARKETINGi

1.1 Definition1
Marketing is defined by the American Marketing Association as "the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large."[4] The term developed from the original meaning
which referred literally to going to market with goods for sale. From a sales process
engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions" of a business aimed at achieving customer interest and
satisfaction.[5]
Philip Kotler defines marketing as :-marketing is about Satisfying needs and wants through an
exchange process.
The Chartered Institute of Marketing defines marketing as "the management process responsible for
identifying, anticipating and satisfying customer requirements profitably."[6] A similar concept is
the value-based marketing which states the role of marketing to contribute to increasing shareholder
value.[7] In this context, marketing can be defined as "the management process that seeks to
maximise returns to shareholders by developing relationships with valued customers and creating a
competitive advantage."[7]
Marketing practice tended to be seen as a creative industry in the past, which
included advertising, distribution and selling. However, because the academic study of marketing
makes extensive use of social
sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the
profession is now widely recognized as a science,[8][not in citation given]allowing numerous universities to offer
Master-of-Science (MSc) programs.[9][not in citation given]
The process of marketing is that of bringing a product to market in which includes these steps: broad
market research; market targeting and market segmentation; determining distribution, pricing and
promotion strategies; developing a communications strategy; budgeting; and visioning long-term
market development goals.[10] Many parts of the marketing process (e.g. product design, art
director, brand management, advertising, copywriting etc.) involve use of the creative arts.

1.2 Concept
The 'marketing concept' proposes that in order to satisfy the organizational objectives, an
organization should anticipate the needs and wants of potential consumers and satisfy them more
effectively than its competitors. This concept originated from Adam Smith's book The Wealth of
Nations, but would not become widely used until nearly 200 years later.[11] Marketing and Marketing
Concepts are directly related.
Given the centrality of customer needs and wants in marketing, a rich understanding of these
concepts is essential:[12]
Needs: Something necessary for people to live a healthy, stable and safe life. When needs
remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be
objective and physical, such as the need for food, water and shelter; or subjective and

1
Anything which is problem is definition
 psychological, such as the need to belong to a family or social group and the need for self-
esteem.
Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic
survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the potential to
become economic demands.
Marketing research, conducted for the purpose of new product development or product
improvement, is often concerned with identifying the consumer's unmet
needs. [13] Customer needs are central to market segmentation which is concerned with
dividing markets into distinct groups of buyers on the basis of "distinct needs,
characteristics, or behaviors who might require separate products or marketing
mixes." [14] Needs-based segmentation (also known as benefit segmentation) "places the
customers' desires at the forefront of how a company designs and markets products or
services." [15] Although needs-based segmentation is difficult to do in practice, it has
been proved to be one of the most effective ways to segment a market. [16] In addition, a
great deal of advertising and promotion is designed to show how a given product's
benefits meet the customer's needs, wants or expectations in a unique way.[17]

1.3 Orientations
Main article: History of marketing § Orientations or philosophies that inform marketing
practice
A marketing orientation has been defined as a "philosophy of business
management." [18] or "a corporate state of mind" [19] or as an "organisation[al]
culture" [20] Although scholars continue to debate the precise nature of specific
orientations that inform marketing practice, the most commonly cited orientations are as
follows: [21]

1.3.1 Product
A firm employing a product orientation is mainly concerned with the quality of its own
product. A product orientation is based on the assumption that, all things being equal,
consumers will purchase products of a superior quality. The approach is most effective
when the firm has deep insights into customers and their needs and desires derived
from research and (or) intuition and understands consumers' quality expectations and
price they are willing to pay. For example, Sony Walkman and Apple iPod were
innovative product designs that addressed consumers' unmet needs. Although the
product orientation has largely been supplanted by the marketing orientation, firms
practising a product orientation can still be found in haute couture and in arts
marketing. [22]

1.3.2 Sales
A firm using a sales orientation focuses primarily on the selling/promotion of the firm's
existing products, rather than determining new or unmet consumer needs or desires.
Consequently, this entails simply selling existing products, using promotion and direct
sales techniques to attain the highest sales possible.[23] The sales orientation "is typically
practised with unsought goods." [24] One study found that industrial companies are more
 likely to hold a sales orientation than consumer goods companies. [25] The approach may
also suit scenarios in which a firm holds dead stock, or otherwise sells a product that is
in high demand, with little likelihood of changes in consumer tastes diminishing demand.
A 2011 meta analyses[26] has found that the factors with the greatest impact on sales
performance are a salesperson's sales related knowledge (knowledge of market
segments, sales presentation skills, conflict resolution, and products), degree of
adaptiveness (changing behaviour based on the aforementioned knowledge), role clarity
(salesperson's role is to expressly to sell), cognitive aptitude (intelligence) and work
engagement (motivation and interest in a sales role).

1.3.3 Production
Further information: History of marketing § Production orientation
A firm focusing on a production orientation specializes in producing as much as possible
of a given product or service in order to achieve economies of scale or economies of
scope. A production orientation may be deployed when a high demand for a product or
service exists, coupled with certainty that consumer tastes and preferences remain
relatively constant (similar to the sales orientation). The so-called production era is
thought to have dominated marketing practice from the 1860s to the 1930s, but other
theorists argue that evidence of the production orientation can still be found in some
companies or industries. Specifically Kotler and Armstrong note that the production
philosophy is "one of the oldest philosophies that guides sellers... [and] is still useful in
some situations." [27]
1.3.3.1 Societal marketing.
Main article: Societal marketing
A number of scholars and practitioners have argued that marketers have
a greater social responsibility than simply satisfying customers and
providing them with superior value. Instead, marketing activities should
strive to benefit society's overall well-being. Marketing organisations that
have embraced the societal marketing concept typically identify key
stakeholder groups such as employees, customers, and local
communities. They should consider the impact of their activities on all
stakeholders. Companies that adopt a societal marketing perspective
typically practice triple bottom line reporting whereby they publish social
impact and environmental impact reports alongside financial
performance reports. Sustainable marketing or green marketing is an
extension of societal marketing. [30]

CHAPTER 2: THE MARKETING MIX (4 P’s)

Main article: Marketing mix
The four Ps, often referred to as the marketing mix or the marketing
program,[31] represent the basic tools which marketers can use to bring
their products or services to market. They are the foundation of
managerial marketing and the marketing plan typically devotes a
section to each of these Ps.
 2.1 Originsii
During the 1940s, the discipline of marketing was in transition. Interest
in the functional school of thought, which was primarily concerned with
mapping the functions of marketing was waning while the managerial
school of thought, which focussed on the problems and challenges
confronting marketers was gaining ground. [32] The concept of marketers
as "mixers of ingredients," was first introduced by James Culliton, a
Professor at Harvard Business School. [33] At this time theorists began
to develop checklists of the elements that made up the marketing mix,
however, there was little agreement as to what should be included in
the list. Many scholars and practitioners relied on lengthy classifications
of factors that needed to be considered to understand consumer
responses.[34] Neil Borden developed a complicated model in the late
1940s, based upon at least twelve different factors.[35]

The original marketing mix or the 4Ps

Inspired by the idea of marketers as mixers of ingredients, Neil

Borden one of Culliton's colleagues at Harvard, coined the phrase
the marketing mix and used it wherever possible. According to Borden's
own account, he used the term, 'marketing mix' consistently from the
late 1940s. [36] For instance, he is on record as having used the term,
'marketing mix,' in his presidential address given to the American
Marketing Association in 1953. [37] In the mid-1960s, Borden published a
retrospective article detailing the early history of the marketing mix in
which he claims that he was inspired by Culliton's idea of 'mixers', and
credits himself with coining the term, 'marketing mix'.[38] Borden's
continued and consistent use of the phrase, "marketing mix,"
contributed to the process of popularising the concept throughout the
1940s and 50s.
The "marketing mix" gained widespread acceptance with the
publication, in 1960, of E. Jerome McCarthy's text, Basic Marketing: A
Managerial Approach which outlined the ingredients in the mix as the
memorable 4 Ps, namely product, price, place and promotion. [39] The
marketing mix is based upon four controllable variables that a company
manages in its effort to satisfy the corporation's objectives as well as
the needs and wants of a target market.[35] Once there is understanding
of the target market's interests, marketers develop tactics, using the
4Ps, to encourage buyers to purchase product. The successful use of
the model is predicated upon the degree to which the target market's
needs and wants have been understood, and the extent to which
 marketers have developed and correctly deployed the tactics. Today,
the marketing mix or marketing program is understood to refer to the
"set of marketing tools that the firm uses to pursue its marketing
objectives in the target market".[40]

CHAPTER:3 BRIEF OUTLINE

Product
The product aspects of marketing deal with the specifications of the actual goods or services,
and how it relates to the end-user's needs and wants. The product element consists of
product design, new product innovation, branding, packaging, labelling. The scope of a
product generally includes supporting elements such as warranties, guarantees, and
support. Branding, a key aspect of the product management, refers to the various methods
of communicating a brand identity for the product, brand, or company.
Pricing
This refers to the process of setting a price for a product, including discounts. The price need
not be monetary; it can simply be what is exchanged for the product or services, e.g. time,
energy, or attention or any sacrifices consumers make in order to acquire a product or
service. The price is the cost that a consumer pays for a product--monetary or not. Methods
of setting prices are in the domain of pricing science.
Place (or distribution)
This refers to how the product gets to the customer; the distribution channels and
intermediaries such as wholesalers and retailers who enable customers to access products
or services in a convenient manner. This third P has also sometimes been called Place,
referring to the channel by which a product or service is sold (e.g. online vs. retail), which
geographic region or industry, to which segment (young adults, families, business people),
etc. also referring to how the environment in which the product is sold in can affect sales.
Promotion
This includes all aspects of marketing communications; advertising, sales promotion,
including promotional education, public relations, personal selling, product
placement, branded entertainment, event marketing, trade shows and exhibitions.

3.1 Criticisms
Morgan, in Riding the Waves of Change (Jossey-Bass,
1988), suggests that one of the greatest limitations of
the 4 Ps approach "is that it unconsciously emphasizes
the inside–out view (looking from the company
outwards), whereas the essence of marketing should
be the outside–in approach". An inside-out approach is
the traditional planning approach where the
organisation identifies its desired goals and objectives
which are often based around what has always been
done. Marketing's task then becomes one of "selling"
the organisation's products and messages to the
"outside" or external stakeholders.[43] In contrast,
an outside-in approach first seeks to understand the
needs and wants of the consumer. [44]
From a model-building perspective, the 4 Ps has
attracted a number of criticisms. Well-designed models
should exhibit clearly defined categories that are
 mutually exclusive, with no overlap. Yet, the 4 Ps
model has extensive overlapping problems. Some of
the Ps are only defined in vague terms. Several
authors stress the hybrid nature of the fourth P,
mentioning the presence of two important dimensions,
"communication" (general and informative
communications such as public relations and corporate
communications) and "promotion" (persuasive
communications such as advertising and direct selling).
Certain marketing activities, such as personal selling,
may be classified as either promotion or as part of the
place (i.e. distribution) element. [45] Some pricing tactics
such as promotional pricing can be classified as price
variables or promotional variables and therefore also
exhibit some overlap.
Other important criticisms include that the marketing
mix lacks a strategic framework and is therefore unfit to
be a planning instrument, particularly when
uncontrollable, external elements are an important
aspect of the marketing environment. [46]

3.2 Modifications and extensions

 Expanded marketing mix for services

 To overcome the deficiencies of the 4 P model, some
authors have suggested extensions or modifications
to the original model. Extensions of the four P's
include "people", "process", and "physical evidence"
and are often applied in the case of services
marketing[47] Other extensions have been found
necessary in retail marketing, industrial marketing and
internet marketing:
 Industrial or B2B marketing needs to account for the
long term contractual agreements that are typical
in supply chain transactions. Relationship
marketingattempts to do this by looking at marketing
from a long term relationship perspective rather than
individual transactions.[48]
 Services marketing needs to account for the unique
characteristics of services (i.e. intangibility,
perishability, heterogeneity and the inseparability of
production and consumption). In order to recognize
the special challenges involved in selling services, as
opposed to goods, some authors advocate extending
the model to 7 Ps for service industries by
 adding; Process - the way in which orders are
handled, customers are satisfied and the service is
delivered; Physical Evidence - is tangible evidence
with which customers interact and with the potential to
impact on the customer's service
experience; People -service personnel and other
customers with whom customers interact and form
part of the overall service experience. [49]

Expanded marketing mix for retail


Retail marketing needs to account for the unique facets of retail stores. A number of
authors have argued for the inclusion of two new Ps,
namely, Personneland Presentation since these contribute to the customer's unique
retail experience and are the principal basis for retail differentiation. Some scholars also
recommend adding Retail Format (i.e. retail formula) since it contributes to customer
expectations. [50] The modified retail marketing mix is often called the 6 Ps of
retailing. [51][52]
 Internet marketing presents both marketing practitioners and scholars with special
challenges including: customer empowerment, new communication modes, real-time
interactivity, access to global markets, high levels of market transparency and difficulty
maintaining competitive advantages. While some scholars argue for an expanded
marketing mix for internet marketing, most argue that entirely new models are
required. [53]
Some authors cite a further P - Packaging - this is thought by many to be part of Product, but in
certain markets (Japan, China for example) and with certain products (perfume, cosmetics) the
packaging of a product has a greater importance - maybe even than the product itself.

A
M
achieve economies of scale or economies of scope -- 4
marketers ---------------------------------------------------------- 4, 5

B
T
Borden ----------------------------------------------------------------- 5
the American Marketing Association ----------------------- 2

intermediaries ------------------------------------------------------- 6
i
Anything which is problem is definition

ii
Starting from the beginners