Unit-1

Marketing

Introduction

The term market is derived from Latin word Mercatus Means to

‘trade’. It also means a place of business- (i) A place where market is
held (ii) An area of operation (buying & selling) (iii) An act of buying
and selling (iv) From economic point of view, market is demand for
commodity. (v) From management point of view, market is social
responsibility (It fulfills need & requirement of people)

- Marketing is a comprehensive term and it improves all resources

and set of activities necessary to direct & facilitate the flow of goods
and services from produces to consumer or end user in the process
of distribution.

- Businessman regards marketing as the management function to

plan, promote and deliver product to the consumer.

Definition

(1) A market can be viewed as any person, group or organization

with which an individual, potential exchange relationship.
(2) Marketing is an organizational function and a set of process for
creating, to communicating and delivering values to customer
& for managing customer relationship is ways that benefits the
organization & its stake holders.
-By American Marketing
Association (AMA)
(3) “Management is a process of increasing the effectiveness and
efficiency by which market activities are performed by
individual or organization”.
-By Ben M.Vmic
(4) “Marketing management as a branch of the broad area of
management, market- management is concerned with a
direction of purposeful activities towards the attainment of
market goals”.
-By E.W. Candiff. & R.R. Stic
(5) Ma5rketing is the economic process by which goals & services
are exchanged between the maker or produce and user or
consumers and their value is determined in terms of money.

Conclusion:-

- From the above definition we conclude that ‘marketing

management is the process of ascertaining consumer needs,
converting them into products or services and then planning,
organizing directing, controlling and evaluating the efforts of group
of people towards achieving of common goals of providing
maximum satisfaction to the consumer with an optimum use of
available resources.
* Traditional concept or system of marketing.

Exchange of goods

Individual A individual B

Money

Fig;- Traditional concept

Modern concept of marketing

Money Flow

Fig: Modern Marketing Process

 - In the process of exchange both producer & costumer give
something and gain something in return.

- The producer gets the surplus value in the form of profit which
is for delivering customer satisfaction.

- The costumer gets the surplus value in the form of utility or

individual satisfaction the marketing process influenced by
competition, got rules and policies, suppliers etc. Marketing
Environment effects both customer and producers.

Marketing Process Covers

i) Marketing agencies or channels of distribution.

ii) Marketing function.
iii) Flow of goods to satisfy market demand.
iv) Directing & controlling the marketing of goods and
accomplish the primary marketing objective. viz. satisfaction
of market demand.

Scope of Marketing Management

▪ The scope of marketing management is quite wide According to

‘R.S Davor’. “Market Management includes the process of a
sustaining consumer’s need, converting them into product or
services to the final consumer or user to satisfy such needs and
wants of specific customer segment with emphasize on
profitability ensuring the optimum or maximum use of
resources available to the organization”.
▪ Actually speaking the activities of market management starts
before the start of Production and ends after the satisfaction of
 the consumer. According to W.J Stanton “Just as market does
not begin at the end of production line its does not end with
final sale”. Market management Programme is prepared on the
basis of needs, wants, taste & preferences of the customers.

Market Management has following scope:-

1) Consumer Research -
2) Determination of Product & price policies.
3) Promotional decision, advertizing and sales promotion method
& Techniques.

Determination and establishment of channels of distribution

(Wholesaler, Manufacturer, Retailer, Agent, Customer) Profitability
through customer satisfaction.

Customer satisfaction including after sales services if any. eg-

Electronics, Vehicles Optimum use of available resources (Men,
Material, Money, Machines, Methods etc.

Importance or Significance of Marketing Mgmt:-

1.) Customer needs, wants & desires receive top consideration in

all business activities.
2.) Greater attention is given to the Product planning &
development so that the merchandising can become more
effective
3.) Demand side of the equation of exchange is honored more and
supply is adjusted to changing demand.
4.) Marketing system based on the marketing concept assures
integrated view of business operation and indicates
 interdependence of different department of business
organization. (H.R. Finance, Production, IT, R & D)
5.) Interest of the Enterprise and Society can be harmonized as
profit through service is emphasized.
6.) Marketing research is now an integral part of marketing
process and it is a managerial tool in decision making in the
field of marketing.
7.) Marketing generate revenues for the business firms.
8.) Marketing is an important activity in the competitive economy.
9.) All the department depends upon the marketing dept. to
generate funds to support them.

Marketing V/s Selling

Selling Marketing

Company Product Costumer need and wants

Production efforts Integrated Market Efforts

Profit through high sales Profit through costumer

volume needs
 Organization Firms- For whom Primary Tools to
Focuses business Profit achieve

Inward Selling of Everybody Max. Sales Primary

goods Volume Promotion
Sales and
Orientation services.

Outward Satisfying Specific Customer Coordinated

needs Group Satisfaction use of all
Marketing and People marketing
Orientation wants activities.

Selling
1. Starts with the seller and
focus on the need of the
seller.
2. It seeks to quickly convert
products into cash.
3. It views business as a good
producing process.
4. Starts with company’s
existing activities.
5. Cost determine Price (Cost ✓
of Production)
6. The firm make product first ✓
and than figures out to sale
it and make profit.
7. Selling views the customer ✓
as the last link in the
business.
8. Production Central function ✓ Marketing
and seller is secondary
function.
Marketing
✓ It starts with the buyer and
focuses constantly on the
needs and wants of buyers.
✓ It seeks to convert customer
needs into products.
✓ It views business as a
customer satisfying process.
✓ All activities take their
direction from the customer
and his needs.
Customer determining price,
Price determination cost.
(Income of customer High,
Medium & lower)
The firm makes a total
product offering that will
match and satisfy the
identified needs of consumer.
It views the customer or the
Process of business.
is the central
function.
 9. Seller determines What ✓ Buyer determines What
product is to offered. product is to be offer. Seller
makes total product offering
as per buyer requirements.
10. Product ✓ Customer enjoys the
enjoys the supreme supreme importance.
importance.
11. Emphasis on ✓ Emphasis on market needs.
corporate needs. (Customer’s needs)
12. Selling aims ✓ Marketing aims at long- term
at short-term objectives. objectives.
13. Top priority ✓ Top priority is given to
is given to sales volume profitable volume of sales and
rather than Profit- market share at fair prices
increasing sales, rising and reasonable risk.
commission to salesman.

The Market Concept: Definition

➢ The Concept of market is very important in marketing. The

American Marketing Association (AMA) defines a “Market as the
aggregate demand of the potential buyers for a product/
service”.
P. Kotler defines “A market as a Place or area for potential
exchanges”.
Thus, A market is a group of buyers of sellers
interested in negotiating the terms of purchase/ sale for goods
and services.
➢ It can be village mandi, local market, national market or
International Market.

Three Concept of Marketing

1. Place Concept.
2. Area Concept.
3. Demand Concept.
1. Place Concepts:-
A market is a place where buyers and sellers gather together in
order to conduct buying and selling activities. Eg- A spot, cash or
Physical Market, Wholesale or retail market.
2. Area Concept:-
A market is an area, small or large in which Price- making forces
of demand and supply tends to operate freely through Modern
means of communication such as Phone, telex, correspondence
etc.
3. Demand Concept
The term market is used to represent customers needs or demand.

Fig- The Market

Marketing Mix
Meaning:-
Marketing Mix refers to the set of actions or tactics that a company
uses to promote its brand or product in the market.
 The 4 Ps make a typical marketing mix i.e. Product, price, Place,
Promotion.
4 Ps of marketing is a Traditional concept but
now there are 7Ps i.e. people, Process and Physical evidence has
been included.
Marketing-mix is a foundation model for business used to promote
and sell goods and services. It is an Excellent way to help ensure
that “Putting the right product in the right place”. will act as a
crucial element in the success of a business.

1. Product- It is either a tangible good or an intangible services that

is seem to meet a specific customer need or demand.

Following Points should be kept in mind before designing any

Product
• What does the customer wants from the product/ services.
• What features does it have to meet these needs?
• How and where will the customer use it.
• What does it look like? How will customer experience it.
• What size, color and so on it should be?
• What is it to be called?
• How it is branded
 • How it is different from your competitors.
2. Price- The price of the product is basically the amount that a
customer pays for to enjoy it, It is very important component of a
marketing plan as it determines your firm’s profit and survival.

- Pricing strategy always helps in shaping the perception of your

product in consumers eyes.

While setting the product price, marketers should consider the

perceived value that the product offers. There are three major
pricing strategies and there are-

a) Market penetration pricing

b) Market Skimming pricing
c) Neutral pricing.

Key points

• What is the value of the product or services to the buyer.

• Are there established price point for product or services in this
area.?
• Is the customer price sensitive?
• What discount should be offered to trade customer or to other
specific segments?
• How will your price compare with your competitors?

3. Place

Placement or distribution is a very important part of the product

tax.

- There are many distribution strategies including-

• Intensive distribution
• Exclusive distribution
• Selective distribution
• Franchising.
 * Here are some of the questions that you should answer in
developing your distribution strategy.

* How do you access the different distribution channels?

* How is your distribution strategy different from your

competitors

* Do you need a strong sales force?

* Do you need to attend trade fairs?

* Do you need to sell in an online store?

4. Promotion-

It is very important component of marketing as it can boost

brand recognition and sales promotion is comprised of various
elements like-

* Sales organization

* Public relation

* Advertising

* Sales promotion

- Public relation on the other hand are communication that are

typically not paid for.
This includes press releases, exhibitions, Sponsorship deals,
seminars, conferences, events etc.

* Word of mouth is an informal communication about the

benefits of the product by satisfied customers and ordinary
individuals.

* Key points

• Where and when you get your marketing messages across

to your target market.
 • Will you reach your audience by T.V. radio, PR, Internet
etc.
• When is the best time to promote?
• How do your competitors do their promotions?

7 Ps of Marketing Mix

5. People-

All companies are reliant on the people who run them from front
line sales staff to the managing director. Having the right people
at the right place at right time is essential because they are part
of the business offering product/services to the customers.

Excellent customer service not only increase sales, but can

increase customer base by referrals. So, it is very important that
everyone who is representing business or brand or deals with
customers must be fully trained sales professionals with and
intimate knowledge of product, its uses features etc.

6. Process-
The process of delivering product to the customer should not be
only designed for maximum efficiency and reliability, but may also
include features that are in line with brand, such as
environmentally or sustainably focused.

Which the right in online shopping, physical partnership and

logistic have become and integral part of marketing deals.

7-Physical evidence- Almost all services include some physical

elements even if the bulk of what the consumer is paying for is
intangible.

For example- Test drive given to the consumer is billing to by

vehicle.

It will include sales/staff

Contact

Experience of brand

Product Packaging

Online experience
 The 4Ps vs The 7Ps

The 4Ps were designed at a time where business were more likely to
sell products, rather than services and the role of customer service
in helping brand development wasn’t well known. Over time, Booms
and Pitner added three extended ‘service mix P’s’: Participants
Physical evidence and Processes, and later Participants was renamed
People. Today, it/s recommended that the full 7Ps of the marketing
mix are considered when reviewing competitive strategies.

The 7Ps helps companies to review and define key issues that affect
the marketing of its products and services and is often now referred
to as the 7Ps framework for the digital marketing mix.

Companies can also use the 7Ps model to set objectives, conduct a
SWOT analysis and undertake competitive analysis. It’s a practical
framework to evaluate an existing business and work through
appropriate approaches whilst evaluating the mix element as shown
below and ask yourself the following questions:

• Products/Services: How can you develop your products or

services?
• Prices/Fees: How can we change our pricing model?
• Palce/Access: What new distribution options are there for
customers to experience our product, e.g. online, in-store,
mobile etc.
• Promotion: How can we add to or substitute the combination
within paid, owned and earned media channels?
 • Physical Evidence: How we reassure our customers, e.g.
impressive buildings, well-trained staff, great website?
• Processes: Are there internal process barriers in the way to
delivering the best customer value?
• People: Who are our people and are there skills gaps?

Green Marketing

Introduction-“Green or Environmental Marketing consists of all

activities designed to generate and facilitate any exchange intend to
satisfy human needs or wants, such that the satisfaction of these
needs and wants occurs, with minimal determental impact on the
natural Environment.”

➢ In other word we can say that the marketing of products that

are presumed to be environmentally safe.
➢ It include a broad range of activities, including product
modification, changes to the production process, sustainable
packaging as well as modifying advertising.

❖ Why Green Marketing?

• Opportunities or competitive advantages.
• Corporate social responsibilities (CSR)
• Govt. Pressure
• Competitive pressure.
• Cost or profit issues.
• Rising green demand of customers.
• Mutual Benefit.
Definition-

A 3 Way Definition

i) (Retaining definition) The marketing of products that are

presumed to be environmentally safe.
 ii) (Social Marketing definition) –The development and
marketing of products designed to minimize negative effects
on the Physical Environment or to improve its quality.
iii) (Environmental definition)- The Efforts by organisation to
produce, promote, package and reclaim products in a
manner that is sensitive or responsive to Ecological concerns.
Eg- Mc donald's have stopped packaging their hamburgers etc.
In polystyrene containers and now use cardboards which comes
from a renewable resource and is biodegradable or recyclable.

Green Aspects in Services

I. Financial Services:-
➢ Use of electronic printing Media
➢ Use of technology to cut short the usage of paper.
➢ Use of air conditioner with high star- rating and CFL
lights to reduce power consumption.
➢ Green planting spread within the working space.
II. Transportation Services
➢ Wide spread public transport system.
➢ Heavy investment to avoid use of diesel.
➢ Using recyclable products.
➢ Electric vehicles for rent.
III. Educational Institution
➢ Use of Electronic media to avoid paper and other
stationary.
➢ Make students participate in social welfare activities.
➢ Maintain Greneryin the campus.
➢ Use power Efficient equipment.

Retail Services
▪ Discourage plastic bags.
▪ WAR paper printing.
▪ Online trading
▪ Moderate light.
▪ Promote green product.
 ▪ Online trading

Rural Marketing

Concept:- Rural Marketing is the compilation of the developed

product, reasonable price, appropriate placing and right awareness.

➢ It is process of developing, pricing, promotingand distributing

rural specific goods & services to desired exchange with rural
customers to satisfy their needs and wants and also to achieve
original objective.
➢ The rural population has shown a trend of moving to a state of
gradual urbanization in terms of Exposure, habits, lifestyle and
lastly, consumption pattern of good and services.
➢ Rural per capita consumption Expenditure grew by 11.5% while
the urban Expenditure grew by 9.6%. There is a tremendous
potential for consumer durables like two- wheelers, small cars,
T.V, refrigerator, household appliances in rural India.
➢ The concept of rural marketing in India Economy has always
played an influential role in the lives of people.

The rural market in India generates bigger revenues in the country

as the rural regions comprises of the maximum consumers in the
country.

➢ The rural market in Indian economy generates almost more

than half of the country's income.
❖ Rural marketing in Indian Economy can be classified under two
broad categories:-
i) The market for consumer goods that comprises of both
durable and non-durable goods.
ii) The market for agricultural inputs that include fertilizers,
pesticides, seeds and so on.
 Fig- Potential of Rural Marketing

Phases of Rural Marketing

Phase I- From Independence to green revolution.
Agricultural Marketing
Phase II- Green Revolution to Pre- Liberalization.
Marketing to agricultural inputs.
Phase III- Post Liberalization in 20th century.
Rural Marketing
Phase-IV 21st century.
Developmental Marketing.

Rural marketing strategies

Product Strategies
❖ Importance of Rural Marketing
i) Size of Rural Market.
ii) Rural Target Population
iii) Better living
iv) Employment of opportunity
v) Contribution to national income.
vi) Increase in farm income.

❖ Features of Rural Market.

i) Low standard of living.
ii) Large and Scattered Market.
iii) Traditional outlook
iv) Agriculture is major source of income.
v) Development of infrastructure
vi) Diverse socio- Economic Background
vii) Seasonal Demand
viii) Low literacy level
ix) Heterogeneous (different) Market
 Consumer Protection

Consumer- It refers to any individual or household that are goods

& services.

➢ Consumer protection is a concept that are designed to ensure

fair competition and the free flow of truthful information in the
marketplace.
➢ It is a practice of safeguarding buyers of goods and services and
the pubic, against unfair practices in the marketplace. For this
purpose in 1986 consumer protection Act has been established.
Such laws are intended to prevent business from engaging in
fraud or specified unfair practices in order to gain advantages
over competitors or to mislead consumers.
➢ Consumer protection is linked to the idea of consumer rights
and to the formation of consumer organisation, which helps
consumer make better choices in the marketplace and pursue
complaints against business.

Why do consumer need to be protected?

➢ There are a number od products in the market which are

injurious to the health of the consumer like adulteration, false
weights, monopoly and unfair trade practice are some of the
issues that need to be tackled annd are to be addressed to
protect the consumer against it.

How do we protect the consumer?

• The consumer should be educated on their rights and

responsibilities.
• Their grievances should be redressed.
• The judicial body require to provide them with the justice.
Importance of consumer protection

❖ From consumer part of view

i) Consumer ignorance
ii) Unorganised consumer
iii) Wide spread Exploitation of consumer
❖ From Business point of view:-
i) Long term interest in business.
ii) Business uses society's Resources.
iii) Social responsibility.
iv) Moral Justice.
v) Government Intervention

Consumer Protection Act 1986

The consumer protection Act, 1986 is an act of the parliament of

India enacted in 1986 to protect the interest of consumers in India.
It is replaced by the consumer protection Act 2019.

Objective

i) Right to protect against the marketing of goods and services

which are hazardous to life and property.
ii) Right to inform about the quality, quantity, potency, purity,
standard & price of goods & services so as to protect the
consumer against unfair trade practices.
iii) Right to assure, whereas possible access to variety of goods
& services at competitive prices.
iv) Right to hear& to assure that the consumers interest will
receive due consideration at appropriate forum