BASICS OF MARKETING- DETAILED NOTES (session 1)

Q1) What is the definition of Marketing?

Ans- It is a social and managerial process which identifies needs, wants and demands of customers and accordingly
produce goods and services to ensure greater customer satisfaction and profit earning. It also creates demands and
fulfills social responsible activities.

Definition: Marketing is 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.

Example- Patanjali recognized the growing concern of health among customers so they launched whole new product
line into Ayurvedic products.

Q2) Explain needs, wants and demands with examples.

Ans- Needs- it includes the necessities of life which are essential for survival. Example- food to eat, shelter, water.
Another example is, a person needs to take bath everyday to maintain health and hygiene. Needs is of three types

 Basic- food, shelter, clothing, water

 Social- belongingness, social status, recognition, appreciation
 Individual- love, friendship, acceptance

Wants- needs are converted to wants when they are shaped by culture and personality. When things are needed in
life to make it more enjoyable and comfortable, they are categorized as wants. A person can have unlimited wants.
Example- for bathing a person wants soap or a shampoo OR a person have internet connection and his want is to have
Netflix.

Demand- wants gets converted into demands when they are backed by buyer power. The purchasing capacity and
willingness of the consumer plays important role.

Example- person can afford soap only to bath because he has limited resources.

Q3) “demands are backed by buying power” justify the statement.

Ans- Statement is true that ‘demands are backed by buying power’ as when the person has ability and
willingness to buy the product then only he is capable to create a demand. His wants are converted into
demand when he has resources to acquire it.

WANTS + BUYING POWER = DEMANDS

Example- a person wants burger and pizza to quench his hunger but he can only afford burger because of
limited money OR a person wants to travel from one place to another and demand a car but can’t afford it so
he opts for public transportation.
Q4) what is the definition of product?
Ans- A product is something which is offered by the company to its customers at fixed price and with
desirable qualities to satisfy the needs. Ownership is transferred in return of monetary value. It can be both
tangible and intangible eg, ideas or skills. Product is tangible i.e countable, touchable and visible eg, FMCG
goods. It is placed in the market for attention, acquisition, use or consumption. It can be,

 Physical objects
 Services
 Persons
 Organizations
 Ideas
 Events
 Skills
 Places
 Properties
 Information

Example- Nivea products, the blue color of its packaging attracts consumer attention and people want
to buy it because of its all purpose cream which can be used in all seasons OR when a person buys a
house, he will examine every nook and corner of it.

Q5) explain service, idea and person as a product with examples.

Ans- Service- the benefit which is intangible in form and is offered by company to consumer for a price.
Service is mainly given to build trusts and relationships among customers. It is difficult to compare the
qualities of service as we do in products. Moreover once the service is consumed it cannot be reversed.
Example- airlines, hotels, car rental firms and barbers.

Idea- the goal of every company in placing the product or service in the market lies in their idea. Example-
social marketers promote ideas such as ‘friends don’t let friends drive drunk’ OR ‘smoking kills’. Products and
services is a platform to deliver some idea or benefit.

People- persons are endorsed in the advertisements by the marketers to build brand-image. They are also
made brand ambassadors to promote products and services. Example- in the ad of Gujarat Tourism we see
Amitabh Bachan promoting tourism and asking people to visit the state.
Q6) EXPLAIN SERVICE WITH SPECIAL ATTENTION TO INTANGIBLE AND
OWNERSHIP PROPERTIES.
Ans- The benefit which is intangible in form and is offered by company to consumer for a price is known as
service. One cannot see or touch the services, it can only be felt and can be measured with the level of quality
and satisfaction which one receives. It is mainly given to build trusts and relationships among customers. It is
difficult to compare the qualities of service as we differentiate in products. Moreover once the service is
consumed it cannot be reversed. Example- services of airlines, hotels, car rental firms, barbers, manicures.
Ownership is not transferred in case of services. One can only have a temporary benefit. Ex- the services of
lawyer, teacher, broadband services.

Q7) EXPLAIN CUSTOMER VALUE WITH SUITABLE EXAMPLES.

Ans- The difference between benefits that the customer gains after acquiring the product and the cost which
he pays for it, is known as customer value. If the benefit is more as compared to cost then there is high
customer value. The aim of marketing is also to understand the needs of the customers so well that it has
potential to sell itself and give higher customer satisfaction. Value is combination of quality, service and price,
known as Customer Value Triad. Value perceptions increases with quality and services but decreases with
price. Example- while purchasing a high end car say Ferrari, if the benefits overshadow the cost, then
customer get high value OR when Jio made data services free, customer value increased.

Q8) DEFINE CUSTOMER SATISFACTION AND EXPLAIN SATISFIED, DISSATISFIED

AND DELIGHTED CUSTOMERS.
Ans- The difference between the expectations of the consumers and the performance of the product or
service is known as customer satisfaction. If performance falls short of expectations, the customer is
dissatisfied. If it matches expectations, the he is satisfied. If it exceeds them then customer is delighted.
Example- when purchasing a laptop, if it has all latest features then customer is satisfied but when the seller
offers bag and pendrive with it then he is delighted.

Q9) HOW ‘QUALITY’ RELATED TO ‘CUSTOMER SATISFACTION’? SUPPORT WITH

EXAMPLES.
Ans- The characteristics and features that the product or service offers to the consumers is known as quality.
Quality has direct relation with the customer satisfaction i.e when quality increases, satisfaction level also
increases and vice versa. The USP (unique selling proposition) makes the product stands out in the market
which adds to its quality.

Example- the quality of content that google displays on various web pages and websites, gives users great
satisfaction. It matches the needs of the consumers without wastage of much time and efforts.
Q10) WHAT IS EXCHANGE?
Ans- The act of obtaining a desired object from someone by offering something in return. Exchange can be
monetary or non-monetary also. Example- currency exchange between banks or countries, often referred to
as Foreign Exchange Market OR when goods or services produced but not exchanged for money, like when a
mother who is a teacher herself teaching her own child.

Q11) EXPLAIN TRANSACTION WITH REFERENCE TO AN INVOICE?

Ans- The agreement or trade between two parties to exchange goods and services at a particular place and at
a particular time is known as transaction. It is an exchange or instance where business is done or something is
bought or sold.

An invoice is what u send to a client after you’ve delivered your product, but before you get paid. It is a proof
that transaction has took place. Types of invoice includes paper receipt, a bill of sale, sales invoice, debit note
or online electronic record. It outlines payment terms and modes, unit costs, shipping handling, etc. example-
sale in cash or credit to the customer, purchase fixed asset, record transaction, investment in business.

Q12) EXPLAIN RELATIONSHIP MARKETING WITH EXAMPLES?

Ans- The process of creating, maintaining and enhancing strong and value laden relationships with partners,
customers, financial community and employees which can help the company in the long run is known as
Relationship Marketing. These relations affect the success of the firm directly or indirectly, therefore it is
necessary to pay attention on them. The aim is to create marketing networks and conduct mutually profitable
business relationships and retain business.

Example- coca- cola advertises its beverages with touching messages about family and friends. The bottle
itself says that you should share it with someone special OR Apple also tries to retain its customers by focusing
upon teaching them to love and appreciate the benefit of having an iPhone or iPad.

Q13) WHAT IS MARKET? HOW DO WE DETERMINE THE SIZE OF THE MARKET?

Ans- The market is a physical place were buyers and sellers gather to buy and sell goods. The seller offers
products or services that fits the demands and needs of the customer. Example- trade fairs

The size of the market is determined by its number of sellers and buyers. It there is huge number of buyers
and sellers, then the market is also large. Example- the market share of Reliance Industries Limited is one of
the highest in India as there is huge number of its customers.
Q14) WHAT IS DEMARKETING? SUPPORT WITH EXAMPLE.”DEMARKETING HAS
TO BE USED CAREFULLY”, JUSTIFY THIS STATEMENT.
Ans- It is the process of reducing or eliminating the demand of a particular service or product from the
market temporarily or permanently. The demarketing strategies include higher prices, scaled-down
advertising and product redesign. It is considered as one of the marketing pros. It is subtle way of saying no to
unwanted customers. The reasons for which the company undertakes demarketing can be-

 Supply cannot meet the demand

 Resources is limited
 Cost of advertising the product is high
 Inadequate or absence of distribution channel
 Price of selling in a particular area or segment is high
 Save the consumer from potential harm, such as from tobacco or alcohol

Example- TATA group discouraged consumers to buy Tata Nano when it proved to be a failure in
market. The company stopped its promotion and switched to promoting other products of TATA group
OR the strategy followed by five-star hotels by making its menu suitable for high-end customers only
and making parking lot for two-wheelers far from hotel. This discourages the common man from using
their services and thus maintains their exclusivity.

Demarketing has to be applied carefully as it can have negative or undesired affects also. It can lead to
whole loss of consumer base also. Example- even after imposing ban on smoking, the results showed
drastic increase in smokers though the aim of government was to discourage people.

Q15) “SELLING AND MARKETING CONCEPTS CONTRASTED”ELABORATE THIS

STATEMENT WITH SUITABLE EXAMPLES.

Ans- Selling concept emphasizes on seller’s need and aim is to convert product into cash. The goal is to sell
what they make rather than what the market wants. Whereas in Marketing concept emphasize is on
customer’s need and provide larger customer value and satisfaction. Customer is considered as a king. The
aim is not to find the right customers for your product but making right products for the customers.

Example of selling concept- Henry Ford said “You can have it in any color as long as it is black”. Initially the
cars which was produced by Ford was only in black color and it continued for several years. But as customer
gain awareness and its demand increased, they started manufacturing it in various colours as well.

Example of marketing concept- Dell does not make PC or laptop for its target market, rather it provides
product platform to its customers to customize the features he or she desires in the machine.
Q16) “SOCIETAL MARKETING MUST IMPROVE THE CONSUMER’S AND SOCIETY’S
WELL BEING.”JUSTIFY THIS STATEMENT WITH SUITABLE EXAMPLE.
Ans- Societal marketing concept deals with long term benefits of the customers as well as society’s well-
being. It uses regulatory issues and puts efforts to protect the consumers. It is important for the society,
environment and the business. It helps business to survive in the long run, earn profits and build strong social
relationships. Since business is the part of society and makes uses of the resources which belong to society, it
is the responsibility of business to provide better quality products and services to the society in return. The
company should look into ethical, social and legal aspects also which will differentiate them from competitors.

example- during IPL matches we can see players wearing pink ribbons to spread awareness about breast
cancer OR Coca Cola release an ad that shows people of different ethnicity and singing “America is Beautiful”
in different language.

Q17) STATE JEROME McCARTHY’S 4 P’S OF MARKETING.

Ans- The 4 P’s are-

 Product- it includes the goods and services offered by company in the market. It includes packaging,
labelling, brand name, features, designs, warranties, size, returns.

 Price- it is the amount that consumer pays to acquire the product or service. It includes list price,
discounts, credit terms, payment period.

 Place- it is the location where the product or service is available. It includes transport, warehouses,
channels, inventory.

 Promotion- the advertising aspect comes in promotion. The aim is to bring awareness and in
knowledge about the product or service to the customers. It includes direct marketing, sales
promotion, public relation.

Q18) WHAT IS THE RELEVANCE OF NEW P’S- PEOPLE, PROCESS AND PHYSICAL
EVIDENCE? cITE EXAMPLE FOR EACH.
Ans- People- employees are the asset of the organization therefore they are taken care of by the company. It
is said that ‘marketing will only be as good as the people inside the organization.’ Moreover company must
have a broad view when it comes to product designing. It should do detail research about the lives of the
customers rather them merely seeing them as shoppers. Example- the staff is well-trained in hotels to cater
better services to customers.

Process- marketers must involve creativity, discipline and subtle structures in marketing management. It
should not involve haphazard planning and decision-making process which confuses the customers also along
with employees. Example- the online payment process of google pay is much more easy and simple as
compared to paytm OR the website of Amazon is very creatively designed to cater the needs of customers.

Physical evidence – physical evidence includes company’s brochures, catalogue, financial statements or office
location. Through all these customers get assurance that company is credible and they can rely on it. Example-
when we visit garment shop, they first show us the catalogue to choose among them.

Q19) STATE 4 C’S WITH EXAMPLE.

Ans- The 4 C’s are-

 Cost- it is related to the price of the product or service that the consumer is able and willing to give.
 Customer- it refers to the people who are going to consume the products. If there are no customers,
then business can’t exist. The products are designed according to customer needs only.
 Convenience- it refers to with what ease the customer is able to reach market and make purchases.
 Communication- it refers to promoting the products and bringing in knowledge that there exists
product in the market.

These 4 C’s are alternative to 4 P’s and are more customer-oriented.

Q20) STATE 4 A’S WITH REFERENCE TO RURAL MARKETING.

Ans- The 4 A’s are-

 Acceptability- by making changes in brand-image, packaging, designing and positioning, company

can make the product more acceptable in the market. It is the extent to which the firm’s total
product offering exceeds the customer’s expectations.
 Affordability- it has two dimensions, economic(ability to pay) and psychological(willing to pay)
 Awareness- it is the extent to which the customers are informed about the product characteristics,
persuaded to try it and reminded again to re-purchase. It has two dimensions: brand awareness
and product knowledge.
 Accessibility- the extent to which the customer are able to readily acquire the product. It has two
dimensions: availability and convenience.

These 4 A’s focuses on Rural Markets. Example- when people in rural areas or consumers belonging to lower
income groups found difficult to purchase shampoo bottles then the companies found an alternative to make
it available at lower price i.e started manufacturing sashes.

Q21) EXPLAIN ‘MARKETING MYOPIA’ WITH SUITABLE EXAMPLES.

Ans- When the company pays more attention on selling the product and fulfilling its own immediate needs
rather than on the needs of the consumer, it is known as marketing myopia. The company focuses more on
sales than marketing and is likely to risk itself. The company pays more attention to its short-term goals rather
than long-term goals. Company suffers when management lacks decision-making or is disorganized in
conducting marketing research.

Example- mass production of goods without knowing the demand OR a shift to digital lifestyle will make
grocery stores to disappear.