Marketing is the creation and

delivery of a standard of living. It

involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/service
Marketing is the creation and
delivery of a standard of living. It
involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/service
1
Marketing is the creation and
delivery of a standard of living. It
involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/service
Marketing is the creation and
delivery of a standard of living. It
involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/service
2
Marketing is the creation and
delivery of a standard of living. It
involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/service
Marketing is the creation and
delivery of a standard of living. It
involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/service
3
Marketing is the creation and
delivery of a standard of living. It
involves:
(i)Finding out what the consumers
want
(ii)Planning and developing the
product that will satisfy those wants
(iii)Determining the best way to
price, promote and distribute that
product/serviarketing principles are:
UNIT 1

4
 1. Fundamentals of 2
Marketing / Four P’s of
Marketing

2. Scope and Significance of 3-4

Marketing
5
3. Market Analysis
6
4. Marketing Plan and Budget.
7
5. Core concepts of marketing
Need, Want, Desire,
Benefits, Demand

6. Value and Exchange applied 8

to Goods & Services
7. Marketing Myopia 9

8. Selling versus marketing 10

9. Approaches to Marketing– 11
Product–Production-Sales–
Marketing– Societal–
Relational

Fundamentals of Marketing / 4 P’s of Marketing

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1. Product - The first of these seven marketing principles is product. A
product can be defined as simply an item that addresses a consumer’s
wants or needs. Some products are goods, or tangible objects.

2. Price - The price is simply the amount a consumer pays for a product.
Coming up with your pricing, however, isn’t always that easy.

3. Place - Place is the location where your product is available for

consumers to purchase. Place is all about providing access for the
consumer. It doesn’t have to be a physical, brick-and-mortar store; it
could also be a website or other online location.

4. Promotion - Promotion is the marketing communications put out by

your brand. Your promotional efforts should be geared toward your
target audience. Your goal is to make them aware of who you are and
what you have to offer. Then you can start to move them through the
sales funnel.

5. People - The people you’re selling to — and the people in your company
who are doing the selling — are an important aspect of marketing.
People are a component of your marketing that you can’t overlook.

6. Process- Process is what happens behind the scenes as you create your
product or service. From the employees who are doing the hands-on
work, to the employees who sit in offices answering emails, it’s all part of
your business’ process.

7. Packaging - Physical evidence consists of anything your customer sees or

experiences when interacting with your business. Is your store clean? Is
your website well-designed? Do you have good customer reviews? These
can all serve as signals to a potential customer that you’re a reputable
business and you’ll be easy to work with.

Scope of Marketing

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When compared to other functions of the business, marketing’s scope seems
to be a bit more vast. It flows within almost all of the business activities and
present at all stages of the customer buying cycle.

Even a separate type of marketing, known as digital marketing, has evolved to

expand the scope of marketing over the internet.

 Market Research: Researching consumer demands and consumer

behaviour.

 Product Planning and Development: Planning and developing the

offering according to what’s needed in the market.

 Product Pricing: Pricing the offering according to the product value and
the buyer’s paying capacity to maximise profits.

 Distribution: Distributing the offering, so it is available wherever and

whenever the customer demands it.

 Promotion: Communicating the right message that results in demand

creation.

 Sales: Offering incentives that increase sales.

 After-Sales: Providing after-sales support to the customer to maintain a

good brand image in the market.

Significance of Marketing

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 1. Revenue Generation - Marketing is the primary driver of sales and
revenue for businesses. Effective marketing strategies can lead to
increased sales and profitability

2. Market Expansion - Marketing allows organizations to explore new

markets and customer segments, facilitating growth opportunities.

3. Customer Satisfaction - By understanding and addressing customer

needs and preferences, marketing contributes to higher levels of
customer satisfaction and loyalty.

4. Global Reach - Marketing allows businesses to reach a global audience,

enabling international expansion and trade

5. Brand Building - Marketing is essential for creating and maintaining a

strong brand identity, which can lead to brand loyalty and premium
pricing.

6. Marketing generates employment

7. Marketing makes available new variety of useful and quality goods to

consumers.

8. Marketing raises the level of economic activity. There is a positive

relation between marketing activity and economic activity of a country

9. Marketing converts latent demand of the consumers into effective

demand and thus enables to raise the standard of living

Market analysis
Market analysis is a detailed assessment of your business’s target market and the
competitive landscape within a specific industry. This analysis lets you project the

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success you can expect when you introduce your brand and its products to
consumers within the market.

Conducting a market analysis can benefit you in several ways by helping you to:
 Spot trends in your industry
 Differentiate your business from competitors
 Reduce the risks and costs of launching a new business
 Tailor products and services to your target customers’ needs
 Analyze successes and failures
 Optimize your marketing efforts
 Reach new market segments
 Monitor your business’s performance
 Pivot your business in new directions

How to do a market analysis in 6 steps

1. Research your industry.
2. Investigate the competitive landscape.
3. Identify market gaps.
4. Define your target market.
5. Identify barriers to entry.
6. Create a sales forecast.

Marketing Plan and Budget

A marketing plan is a detailed roadmap that outlines your marketing strategies,

tactics, costs and projected results over a period of time. Your marketing plan
and budget keeps your entire team focused on specific goals – it’s a critical
resource for your entire company.

A good marketing plan typically includes:

 Financial goals
 Positioning strategy
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  Brand strategy
 Product/service overview
 Detailed goals
 Sales plan
 Major marketing campaigns
 Detailed budget
 Dates to review progress

A marketing budget is an outline of the costs your company will spend to market
or promote your brand, products, or services. A budget in marketing covers all
the expenses of your marketing strategy for a finite period of time, which could
be anywhere from a quarter to a year.
Some statistics have shown that up to 85% of small- to mid-size companies
operate from a budget only — without a written plan

6 steps to set up your marketing budget:

1. Determine your business’s goals

2. Establish your sales cycle
3. Know your outside costs
4. Understand your market
5. Get an idea of what strategies you want to use
6. Research strategy prices

Core concepts of marketing

1. Needs - Human needs are the most basic concept underlying

marketing. A need is a thinking of mind that reflects the lackness of
something. Humans have many complex needs

 Basic needs, physical needs for food, clothing, warmth, and safety.
 Social needs for belonging and affection.
 Individual needs for knowledge and self-expression.


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 2. Wants - A human want is the form that a human need takes as shaped
by culture and individual personality. E.g. If some peoples are hungry
and they want eat something, Hungry shows the needs of the peoples
which is same for everyone but the want will be different according to
their culture, taste, personality etc.

3. Demands - are human wants that are backed by buying

power.Consumers view products as bundles of benefits and choose
products that give them the best bundle for their money .

4. Desire - Desire is a strong willingness or longing to possess a particular

product or service. It goes beyond mere want and often involves
emotions and personal preferences. Effective marketing strategies aim
to cultivate desire for a brand or product.

5. Benefits - Benefits refer to the positive outcomes or values that

customers derive from a product or service. These benefits can be
functional, emotional, or psychological.
6.

Value and Exchange applied to Goods & Services

The concepts of "value" and "exchange" are fundamental in the field of

marketing, and they apply to both goods and services.

 Value
1. Goods - In the context of goods, value refers to the benefits that a
product provides to customers. It's the difference between what
the customer receives (benefits) and what they give up (the cost,
including the price and any other sacrifices, such as time or effort).
For example, a smartphone's value might be its ability to provide
communication, access to information, entertainment, and
convenience.

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 2. Services - Value in the services is also based on benefits. Services
can provide intangible benefits such as expertise, convenience,
time savings, or peace of mind. For instance, a financial advisory
service offers value by helping clients make informed investment
decisions, potentially leading to financial security.

 Exchange

1. Goods - The exchange of goods involves the transfer of ownership

from the seller to the buyer in return for a mutually agreed-upon
value, typically in the form of money. This exchange is straight
forward in the case of tangible goods, with the customer paying
the price for the product. For example, a customer buys a laptop
by paying the specified price.

2. Services - In the case of services, the exchange is less tangible. It

typically involves a contract or agreement between the service
provider and the customer. The customer agrees to pay for the
service, and in return, they receive the benefits associated with
that service. For example, a customer signs a contract with a
fitness trainer to receive personal training services in exchange for
a fee.

Marketing Myopia

Marketing myopia is a situation when a company has a narrow-minded

marketing approach and it focuses mainly on only one aspect out of many
possible marketing attributes.

A brand focusing on the development of high-quality products for

customers who disregard quality and only focus on the price is a classic
example of marketing myopia.

Eg- Nokia losing its marketing share to android and IOS

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Preable

Marketing myopia strikes in when the short term marketing goals are given
more importance than the long term goals.

Some examples are:

 More focus on selling rather than building relationships with the

customers.
 Predicting growth without conducting proper research.
 Mass production without knowing the demand.
 Giving importance to just one aspect of the marketing attributes
without focusing on what the customer actually wants.
 Not changing with the dynamic consumer environment.

Selling Versus Marketing

Selling Marketing
Selling starts with the seller and is Marketing starts with the buyer and
preoccupied all the time with the focusesconstantly on buyer's needs.
seller's needs.
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Seeks to convertProductsintoCash
Views business as a goods
producing process.
Cost determines the price.
Internal company orientation
Sales is the primary motive
The main job is to find the
customers for your products.
It assumes: "Let the buyer beware"
The mindset is "Hook the customer"
Selling and conversational skills are
required.
Beginning point Factory
Orientation Volume
Seeks to convert
customer needsproducts.
Views business as a customer
satisfying process.
Consumers determine the price;
price determines Cost
External market orientation
Customer satisfaction" is the
primary motive
The main job is to find the right
products for your customers.
It assumes: "*Let the seller beware"
The mindset is *What is that we can
make here or source from outside
to satisfy the needs of the target
customers'
Conceptual and analytical skills are
required.
Beginning point Marketplace
Orientation Profit

An important functional area of management that involves activities

undertaken by an organisation for the promotion of buying and selling of a
good or service, is known as Marketing.

A part of the marketing process which involves all the personal and
impersonal activities that are involved in finding, securing, and developing a
demand for a good or service is known as Selling.

Approaches to Marketing–Product–Production-Sales–
Marketing– Societal–Relational

1. Production Orientation

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 This approach emphasizes production efficiency and cost reduction as
the primary drivers of business success.
They believe that if they can produce goods at a lower cost, consumers
will naturally choose their products.
 Eg - Ford's Model T production process in the early 20th century, which
focused on mass production and cost minimization.

2. Product Orientation
 This approach centers on product quality, features, and innovation as the
main sources of competitive advantage.
They believe that a superior product will attract customers on its own
merits.
 Eg - Companies like Apple, known for continuously innovating and
improving their products, exemplify a product-oriented approach.

3. Sales Orientation
 This approach places a strong emphasis on aggressive sales tactics and
promotion to drive sales.
They often use high-pressure sales techniques and promotions to boost
sales.
 Eg - Used extensively in industries like timeshare sales, where the
emphasis is on closing deals rather than long-term customer
relationships.

4. Marketing Orientation
 This approach centres on understanding and satisfying customer needs
and wants as the foundation of business success.
Customer satisfaction and long-term relationships are prioritized.
 Eg - Companies like Procter & Gamble and Coca-Cola are known for their
strong marketing orientation, where they invest heavily in market
research and customer-focused strategies.

5. Societal Orientation

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 This approach extends the marketing orientation to consider not only
customer needs but also the well-being of society and the environment.
They aim to balance profitability with ethical and socially responsible
practices.
 Eg - Brands like Patagonia, known for their commitment to
environmental sustainability and ethical sourcing, embody a societal
marketing orientation.

6. Relational Orientation
 This approach emphasizes building and maintaining long-term, mutually
beneficial relationships with customers.
They recognize the lifetime value of a customer and invest in efforts to
keep customers satisfied and engaged.
 Eg - Companies like Amazon and Starbucks use relational marketing
strategies, such as loyalty programs and personalized recommendations,
to cultivate strong customer relationships.

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