Principles of Marketing

Marketing:
The process by which companies engage customers, build strong customer
relationships, and create customer value to capture value from customers in
return.

Traditional Marketing Concept:

Traditional marketing concept focuses on products only and it aims in production
and marketing of products and gaining more profit. Traditional marketing is
profit-oriented. It is based on an old marketing concept and refers to a narrow
concept. The traditional marketing concept is based on push marketing. It is one
dimensional as the only target of it is to sell the product and get a profit.

Modern Marketing Concept:

Modern marketing concept focuses on customer’s needs and wants and it aims to
meet the customer’s satisfaction. Modern marketing is customer-oriented. It is
based on a new marketing concept and refers to a broader concept. The modern
marketing concept is based on pull marketing. It is multidimensional as along with
selling products and making a profit it also emphasizes customer satisfaction,
planning, after-sales service, and many other variables.

Philip Kotler defines marketing as “the science and art of exploring, creating and
delivering value to satisfy the needs of a target market at a profit. Marketing
identifies unfulfilled needs and desires. It defines, measures and quantifies the size of
the identified market and the profit potential.
 Difference b/w Marketing and Selling:

Basis Selling Marketing

Meaning
A part of the marketing process An important functional area of
that involves all the personal and management that involves activities
impersonal activities that are undertaken by an organization for the
involved in finding, securing, and promotion of buying and selling of a
developing a demand for a good good or service is known as
or service is known as Selling. Marketing.
Scope As selling is only a part of the As marketing also includes selling, it
marketing process, it has a
has a wide scope. All the activities
narrow scope and is limited to
increasing the sales volume of an concerned with the identification and
organization.
satisfaction of the wants of consumers
are covered in marketing.
Focus Selling focuses on the transfer of The main focus of marketing is to
title and possession of products to achieve maximum satisfaction of the
the users or consumers. needs and wants of consumers.

Objective Selling aims to maximize the Marketing aims at earning profits with
profits of an organization through the help of consumer satisfaction.
an increase in the volume of
sales.
Emphasis The main emphasis of selling is The main emphasis of marketing is on
on the bending or molding of the the development of the product
consumer according to the according to the needs of the
product. consumer.

Strategy Strategies such as promotion and Integrated marketing efforts are used
persuasion for selling the product in this area of management and
are used in it. involve strategies related to product,
price, promotion, and physical
distribution/place.
Start and The selling activities of an The marketing activities start way
End organization start after the before the product is manufactured
product is manufactured or and does not end after the sale of the
developed and end after it is product. It continues even after the
sold. sale of the product by way of after-
sales services, etc.

Demand The organization supposes from Demand is created and maintained in

the beginning that there is a the marketing process
demand for the product in the
market.

Customer Perceived Value:

In marketing terminology, perceived value is the customers' evaluation of the
merits of a product or service, and its ability to meet their needs and
expectations, especially in comparison with its peers.
Customer Needs, Wants & Demands:

Market Offerings:
A marketing offering is a product or service that a company provides to customers
to meet their needs. An offering encompasses more than a single product or
service. It includes the extra value that a business adds to its products, such as
convenience, quality, and support.

Market Myopia:
The term “marketing myopia” describes when a company is so focused on quick
sales and mass production of goods that they lose sight of their long-term goals
and customer needs. This shortsightedness in a marketing strategy or business
model prevents a company from achieving long-term success.

Customer Value & Satisfaction:

Customer value is the difference between the total benefits expected from a
product/service and the total costs incurred to obtain that product or service
Customer satisfaction refers to the difference between the actual performance
experienced by a customer and the expectations of the customer

Exchange & Relationship:

Exchange
The act of obtaining a desired object from someone by offering something in
return.
Market
The set of all actual and potential buyers of a product or service.

Modern Marketing System or Market Players:

Marketing Management:
The art and science of choosing target markets and building profitable
relationships with them.
The company must first decide whom it will serve. It does this by
dividing the market into segments of customers (market segmentation)
and selecting which segments it will go after (target marketing).

Market Segmentation:
Market segmentation is a marketing strategy that involves dividing a
larger and more diverse market into smaller, more homogeneous groups
or segments based on certain characteristics or criteria. The goal of
market segmentation is to better understand and target specific customer
groups with tailored marketing strategies and product offerings. This
approach recognizes that not all customers have the same needs,
preferences, or behaviors, and therefore, a one-size-fits-all marketing
strategy may not be as effective as one that caters to specific segments.

Here are some common criteria or variables used for market

segmentation:

1. Demographic Segmentation: This involves dividing the market

based on demographic factors such as age, gender, income,
education, occupation, marital status, and family size. For
example, a company might target teenagers, working professionals,
or retirees with different products or marketing messages.

2. Psychographic Segmentation: Psychographic factors consider

customers' lifestyles, values, interests, and attitudes. It delves into
the psychological aspects of consumer behavior. For instance, a
 company might target environmentally conscious consumers with
eco-friendly products.

3. Geographic Segmentation: Geographic segmentation divides the

market by location, such as by country, region, city, or even
climate. This is important for businesses that offer location-
specific products or services, like regional food chains or winter
sports equipment.

4. Behavioral Segmentation: Behavioral segmentation categorizes

consumers based on their past behavior or actions, including their
purchasing history, brand loyalty, product usage, and response to
marketing efforts. For instance, a company might target frequent
shoppers with loyalty programs.

5. Usage Rate Segmentation: This involves categorizing customers

based on how frequently they use a product or service. For
example, a smartphone company might target heavy users with
premium models and light users with more budget-friendly
options.

6. Benefit Segmentation: Benefit segmentation focuses on the

specific benefits or solutions that customers seek from a product or
service. Different customer segments may prioritize different
 benefits. For example, a skincare brand might target one segment
for anti-aging benefits and another for acne treatment.

Marketing Strategies:
1. Differentiated Marketing: Tailoring products and marketing
efforts to multiple distinct market segments with varying needs and
preferences. For example, offering different car models to appeal
to various customer groups based on factors like age and income.

2. Undifferentiated Marketing: Treating the entire market as a

single entity and using a standardized marketing mix to reach a
broad audience. For instance, marketing a product like Coca-Cola
to a wide consumer base without significant customization.

3. Niche Marketing: Focusing on a specific, well-defined market

segment that's often too small for larger competitors. Creating
products or services precisely tailored to the unique needs of this
niche. For example, offering organic, gluten-free snacks for health-
conscious consumers.

4. Micro Marketing: Targeting extremely small, specialized market

segments or even individual customers. Using advanced data
analytics and personalized technologies to customize products and
marketing messages. For instance, recommending products to
individual online shoppers based on their history and preferences.