A PROJECT REPORT

ON
INTRODUCTION TO MARKETING & MARKETING ENVIRIONMENT

THE PROJECT IS SUBMITTED TO UNIVERSITY OF DELHI

IN PARTIAL FULFILLMENT OF THE REQUIRMENT OF THE DEGREE OF

B.COM.(H) 2023 UNDER THE GUIDELINES OF THE

PROF.BHAWNA RAJPUT

PROFESSOR IN DEPARTMENT OF COMMERCE

SUBMITTED BY

STUDENT NAME – SHRISTY , MANISHA, PRERNA, ANSHU, AKANSHA

ROLL NO – 2106141, 2106124, 2106113,2106097,2106092

COLLAGE NAME – ADITI MAHAVIDYALAYA

 CERTIFICATE
This is to certify that SHRISTY, MANISHA,
PRERNA, ANSHU, AKANSHA students of B.Com.
(H) of ADITI MAHAVIDYALAYA have successfully
completed their final project entitled " Pricing
and Distribution" as a Partial fulfilment of
academic curriculum.
ACKNOWLEDGEMENT
I sincerely thank to Honourable 'Prof. Bhawna
Raiput' without whom we would not have
completed this project report.
It's our proud privilege to express deep gratitude
to Co-ordinator of Honourable' sirs and other
faculty members of our department for their
useful suggestion, encouragement, and support,
which helped us accomplish project.
And above all, we are thankful to all our friends
who have helped us for the completion of this
project report.
SHRISTY, MANISHA, PRERNA, ANSHU, AKANSHA
 DECLARATION
We SHRISTY, MANISHA, PRERNA, ANSHU, AKANSHA
do hereby declare that this project report entitled as

"INTRODUCTION TO MARKETING & MARKETING

ENVIRIONMENT" is a bona-fide record of project work
carried by us during the academic year 2023 in partial
fulfilment of the requirements of the award of the
degree of B.Com.(H) of the University of Delhi. This
work has not been undertaken or submitted
elsewhere in connection with any academic course.

We SHRISTY, MANISHA, PRERNA, ANSHU, AKANSHA

of B.Com.(H) at ADITI MAHAVIDYALAYA hereby
declare that the project work entitled "Pricing and
Distribution" is an authentic work developed by us
for the fulfilment of the award for the degree of
B.Com.(H).

SHRISTY, MANISHA, PRERNA, ANSHU, AKANSHA

(21002504034,21002504024,21002504029,210025040
04,21002504001 )

V Semester [B.Com.(Hons.)]
 INDEX

S.No Particulars Page no.

1 An Introduction to Marketing 6
2 Definition 7
3 Nature of Marketing 8-9
4 Scope of Marketing 10-12
5 Importance of Marketing 13-17
6 Approaches of Marketing 18-21
7 Marketing 21-23
Concept/Philosophy/Orientation
8 What is Marketing Environment 24-29
9 Marketing Mix 30-32
10 Importance of Marketing Mix 33
11 Characteristics / Features/Nature of 34-38
Marketing Mix
12 The 7P’s 39-41
13 Factors affecting Marketing Mix 42-45
14 Marketing Factors 46-51
15 Understanding Services Marketing 52-61
16 Micro Environment 61-65
17 Macro Environment 66
18 Socio -Cultural Environment 67-71
19 Bibliography 72-73
 AN INTRODUCTION TO
MARKETING

A market is one of the many varieties of systems,

institutions, procedures, social relations and
infrastructures whereby parties engage in
exchange. While parties may exchange goods
and services by barter, most markets rely on
sellers offering their goods or services (including
labor) in exchange for money from buyers. It can
be said that a market is the process by which the
prices of goods and services are established.

“Marketing
is the process of determining consumer
demand for a product or service,
motivating its sales and distributing it
into ultimate consumption at a profit”.

DEFINITION
 Marketing may be narrowly defined as a process
by which goods and services are exchanged and
the valued determined in terms of money prices.
Customer-oriented Definition - According to
Cardiff and Still. “Marketing is the business
process by which products are matched with the
markets and through which transfers of
ownership are effected.” System-Oriented
Definition - William J. Stanton has given a system
oriented definition of marketing. “Marketing is a
total system of interacting business activities
designed to plan, price, promote and distribute
wants satisfying products to target markets to
achieve organisational objectives. Kotler’s
Definition- Kotler has defined marketing as a
social and managerial process by which
individuals and groups obtain what need and
want through creating, offering and exchanging
products of value with others

NATURE OF MARKETING
Marketing is a complex function and does not
sum up to sales alone:

o NATURE OF MARKETING
o MANAGERIAL FUNCTION
o HUMAN ACTIVITY
o ECONOMIC FUNCTION
o BOTH ART AND SCIENCE
o CUSTOMER CENTRIC
o CONSUMER ORIENTED
o GOAL ORIENTED
o INTERACTIVE ACTIVITY
o DYNAMIC PROCESS
o CREATES UTILITY

Managerial Function: Marketing is all about

successfully managing the product, place, price
and promotion of business to generate revenue.
• Human Activity: It satisfies the never-ending
needs and desires of human beings.
• Economic Function: The crucial second
marketing objective is to earn a profit.
• Both Art and Science: Creating demand of the
product among Consumers is an art and
understanding human behaviour, and
psychology is a science.
 Customer Centric: Marketing strategies are
framed with the motive of customer
acquisition.
 Creates Utility: It establishes utility to the
consumer through four different means;
form (kind of product or service), time
(whenever needed), place (availability) and
possession (ownership).

SCOPE OF MARKETING
The scope of marketing includes all activities
involved in the creation, promotion, and
distribution of products and services. It
encompasses market research, product
development, pricing, advertising, sales, and
customer service. Therefore the study is
done to identify consumer needs and wants.
These needs and wants motivate the
consumer to purchase.
1.Study of Consumer Wants and Needs
Goods are produced to satisfy consumer
wants. Therefore the study is done to
identify consumer needs and wants. These
needs and wants motivate the consumer to
purchase.

2. Study of Consumer Behaviour

Marketers perform a study of consumer
behavior. Analysis of buyer behavior helps
marketers in market segmentation and
targeting.
3. Production Planning and Development
Product planning and development starts
with the generation of product ideas and
ends with product development and
commercialization. Product planning
includes everything from branding and
packaging to product line expansion and
contraction.

4. Pricing Policies
The marketer has to determine pricing
policies for their products. Pricing policies
differ from product to product. It depends on
the level of competition, product life cycle,
marketing goals, and objectives, etc.

5. Distribution
The study of distribution channels is
important in marketing. For maximum sales
and profit, goods are required to be
distributed to the maximum consumers at
minimum cost.
 6. Promotion
Promotion includes personal selling, sales
promotion, and advertising. The right
promotion mix is crucial in the
accomplishment of marketing goals.

7. Consumer Satisfaction
The product or service offered must satisfy
the consumer. Consumer satisfaction is the
major objective of marketing.

8. Marketing Control
The marketing audit is done to control the
marketing activities.

IMPORTANCE OF MARKETING
Since marketing is consumer oriented, it has a
positive impact on the business
firms. It enables the entrepreneurs to improve
the quality of their goods and
services. Marketing helps in improving the
standard of living of the people by offering a
wide variety of goods and services with freedom
of choice, and by treating the customer as the
most important person.
Marketing generates employment both in
production and in distribution areas.
Since a business firm generates revenue and
earns profits by carrying out marketing
functions, it will engage in exploiting more and
more economic so they the following points
which shows the importance of marketing:

IMPORTANCE OF MARKETING
Raise Standard of Living
Creates Employment
Development of Economy
Towards Company
Source of Revenue
Source of New Ideas
Marketing
Towards Society
1) Helpful in raising and maintaining the
standard living of the community
Marketing
Marketing is the creation and delivery of
standard of living to the society by
making available the uninterrupted supply of
goods and services to consumers at a
reasonable price. Society comprises of three
classes of people i.e. rich, middle and
poor. Everything which is used by these different
classes of people is supplied by
marketing.
2) Creates Employment
Marketing is complex mechanism involving many
people in one form or the other.
The major marketing functions are buying,
selling, financing, transport,
warehousing, risk bearing etc. In each such
function different activities are
performed by a large number of individuals and
bodies. Thus, marketing gives
employment to many people.
3) Helpful in Development of an Economy
Marketing is the key to sets the economy
revolving. The marketing organization,
more scientifically organized, makes the
economy strong and stable, the lesser the
stress on the marketing function, the weaker will
be the economy.
B. TOWARDS COMPANY
4) Helps in Transfer, Exchange and Movement of
goods
Marketing makes goods and services available to
customers through various
intermediaries like wholesalers and retailers etc.
Marketing is helpful to both
producers and consumers.
5) Source of Income and Revenue
Marketing generates revenue by providing many
opportunities in the process of
buying and selling the goods, by creating time,
place and possession utilities. This
income and profit are reinvested in the concern,
thereby earning more profits in
future.
6) Source of new ideas
The concept of marketing is a dynamic concept.
It has changed altogether with the
passage of time. Such changes have far reaching
effects on production and
distribution. With the rapid change in tastes and
preference of people, marketinghas to come up
with the unique products.

APPROACHES OF MARKETING
The following are the most significant
approaches of marketing and are:-
1) Commodity Approach
In this approach the focus of study is on specific
commodity. Under this approach
the study focuses on the flow of a certain
commodity and its journey from the
original producer right upto the final customer
and it includes conditions of
supply, nature and extent of demand, the
distribution channels used etc.
Agricultural products like wheat, jute, cotton
represent the commodity approach.
2) Institutional Approach
Under this approach, the interest of marketer
centers around the marketing
agencies i.e. transport and service agencies viz.,
wholesalers, retailers, banks,
transport undertakings, insurance companies
etc., who participate in discharging
their marketing responsibilities during the
movement of distribution of goods.
3) Functional Approach
Under this approach, marketer concentrates his
attention on the specialized
functions or activities like buying, selling,
storage, risk bearing, transport, finance
etc. These functions are also studies in relation
to given commodities and
marketing institutions in terms of their
operational methods and systems.
4) Managerial Approach
This approach is also known as Decision- making
approach. The focus of this
approach is on the decision-making process. The
study encompasses discussion on
planning, organizing, controlling, directing etc.
This approach is considered the
most useful way of studying marketing activities.
5) Societal Approach
This approach focuses on the social contributions
and costs created by various
marketing activities and institutions. In this
approach the focus of study will be on
the interactions between the various
environmental factors and their impact on the
well-being of society.
6) System Approach
The approach recognizes the inter-relations and
inter-connections among the
components of a marketing system in which
products, services, money,
equipments and information flow from
marketers to consumers. The focus of this
approach will be on the analysis of marketing
flows and communication.

MARKETING
CONCEPT/PHILOSOPHY/ORIENTATION
According to Prof. Robert F Hartley, Marketing
concept/philosophy/orientation is
“an integration of marketing activities directed
towards customer satisfaction”. This
marketing philosophy undergone a thorough and
gradual change since the Industrial
Revolution. This gradual change can be traced
under four periods and are explained
below:-
1) Production Orientation Philosophy
This production-oriented marketing concept was
built on “Good wine needs no
push.” This philosophy states that if the product
is really good and the price is
reasonable, there is no need for special
marketing efforts. The assumptions of this
concept are:-
-
Anything that can be produced can be sold.
-
The most important task of management is to
keep the cost of production
down.
-
A firm should produce only certain basic
products.
2) Sales Orientation Philosophy
The essence of this philosophy is “Goods are not
bought but sold.” That means
mere making available the best product is not
enough; marketing becomes fruitful
only when they get into aggressive salesmanship.
Effective advertisement, sales-
promotion and public relations etc are top most
important for creating demand.
The assumptions of this philosophy are:-
-
Producing the best possible product.
-
Finding the buyer for the product.
-
The management’s main task is to convince the
buyers through high

WHAT IS MARKETING
ENVIRONMENT?
 What is environment?
 It refers to the situation / surrounding /
atmosphere / circumstances
within business activities that are required to be
conducted
 What is Business Environment?
 It is socio – economic and political situation
within which the business
enterprises have to operate
 This environment has many components
WHAT IS MARKETING ENVIRONMENT
 Marketing activities are influenced by several
factors
INTERNAL & EXTERNAL
 These factors / forces influencing marketing
decision making are
collectively called MARKETING ENVIRONMENT
 Marketing environment must be treated as a
part and parcel of
total business environment
 Marketing business operate within the
marketing environment
 Have to search the environment for new
marketing opportunities
to expand marketing activities
 Environment creates new opportunities /
threats before marketing
enterprises which must be faced with proper
planning.FEATURES / NATURE OF MARKETING
 Marketing environment is the situation/
surrounding within which marketing firms
have to operate
 It may be favorable / unfavorable
 It may create new opportunities / threats to
marketing enterprises
 Marketing enterprises have to face the
marketing environment boldly through
appropriate marketing
plans and policies
 Marketing firms have practically no control on
the marketing environment
 Marketing firms have no capacity to fight with
the marketing environment
 Marketing firms have to study the changing
marketing environment and adjust their
activities
accordingly
 Marketing environment is the net result of the
various socio economic factors:-
 Factors influencing environment may be
 MACRO / EXTERNAL ENVIRONMENT :
Demographic; economic; technological; political
and cultural
 MICRO / INTERNAL ENVIRONMENT :
Competitors; suppliers; marketing intermediaries
and customers
 Marketing environment and marketing
management are closely related concepts
 Study of marketing environment is a must for
efficient marketing managementFEATURES /
NATURE OF MARKETING
 Marketing environment is always flexible
 It may remain stable for a short period
 Major or minor changes will develop due to
internal or external factors
 Marketing environment is external in character
 Marketing environment influence the
operations and marketing activities of
business enterprises
 Business environment has to study / analyze
the environment and operate
within its fold
 Marketing firms have to keep constant watch
on the changing marketing
environment
 Business environment have to make suitable
adjustment in their policies and
activities as per the need of the situation
 Marketing firms should be ready to face all
sorts of environmental changes
 Favorable environment creates growth
opportunities for marketing firm
 Unfavorable environment creates environment
threat
 A challenge posed by an unfavorable trend
may lead to lower sales / profit Political
 Economic
 Social
 Technological
 Demographic and
 International
 MARKETING MIX -
DEFINITIONS
 The marketing mix refers to
 the set of actions,
 or tactics,
 that a company uses to promote its brand or
product in the market.
 The 4Ps make up a typical marketing mix –
 Price
 Product
 Promotion and
 Place.
 Nowadays, the marketing mix increasingly
includes several other Ps like
 Packaging
 Positioning,
 People and
 Even Politics as vital mix elements.MARKETING
MIX - DEFINITIONS
 Referring to E. Jerome McCarthy's 4 P
classification for developing an effective
marketing strategy, encompasses:
 product,
 price,
 placement (distribution) and
 promotion.
 When it's a consumer-centric marketing mix, it
has been extended to include three
more Ps:
 people,
 process and
 physical evidence, and
 three Cs:
 cost,
 consumer and
 competitor.
 Depending on the industry and the target of
the marketing plan, marketing
WHAT IS THE IMPORTANCE
OF THE MARKETING MIX?
 All the elements of the marketing mix influence
each other.
 Marketing Mix make up the business plan for a
company and
handled right, can give it great success.
 But handled wrong and the business could take
years to recover.
 The marketing mix needs
 a lot of understanding,
 market research and
 consultation with several people,
 From users to trade to manufacturing and
several others.

CHARACTERISTICS/
FEATURES/NATURE OF MM
1. Marketing mix is the crux of marketing
process:
 Marketing mix involves many crucial decisions
relating to each element
of the mix.
 The impact of the mix will be the best when
proper weightage is
assigned to each element and they are
integrated
 the combined effect leads to the best results.

2. Marketing mix has to be reviewed constantly

in order to meet the
changing requirements:
 The marketing manager has to constantly
review the mix and conditions
of the market
 Make necessary changes in the marketing mix
 According to changes in the conditions and
complexity of the market.

3. Helps to achieve organizational goals:

 An application of an appropriate marketing mix
helps to achieve
organizational goals
 such as profits and market
share.CHARACTERISTICS/FEATURES/NATURE OF
MM
4. Changes in external environment necessitate
alterations in the mix:
 Changes keep on taking place in the external
environment.
 For many industries, the customer is the most
fluctuating variable of
environment.
 Customers‘ tastes and preferences change very
fast.
 Brand loyalty and purchasing power also
change over a period.
 The marketing manager has to carry out
market analysis constantly
to make necessary changes in the marketing mix.

5. Changes taking place within the firm also

necessitate changes in
marketing mix:
 Changes within the firm may take place
 due to technological changes,
 changes in the product line or
 changes in the size and scale of operation.
 Such changes call for similar changes in the
marketing
mix.CHARACTERISTICS/FEATURES/NATURE OF
MM
6. Applicable to business and non-business
organization:
 Marketing mix is applicable not only to
business organizations but
also to non-business organizations,
 such as clubs and educational institutions.
 For instance, an educational institution is
expected to provide
 the right courses (product),
 charge the right fees (price),
 promote the institution and the courses,
 and provide the courses at the right place.

7. Concentrates on customers:
 A thorough understanding of the customer is
common to all the
four elements.
 The focus point of marketing mix is the
customer, and
 the marketing mix is expected to provide
maximum customer
satisfaction.
THE 7P’S OF MARKETING MIX
 PRODUCT: means the goods and services
combination the
company offers to the target market
 PRICE: Is the amount of money customers have
to pay to obtain
the product
 PLACE: Includes company activities that make
the product
available to target consumers
 PROMOTION: means activities that
communicates the merits of
the product and persuade target customers to
buy itNEW ELEMENTS OF 7P’S
5. People
 This is a vital element of the service marketing
mix.
 When a service is being delivered, the person
delivering it is not unique from the service itself.
 When dining at a restaurant, if a rude waiter is
encountered, the entire experience will be
labeled as bad service.
 This is why many businesses invest in defining
the right kind of person to fill their service role
 then making efforts to find or train people to fit
this definition.
6. Process
 Since service provision needs to strike a
balance between customization and
standardization,
 the processes involved in the activity require
special mention and attention.
 A process needs to be clearly defined for the
service provider.
 This basic process should ensure the same level
of service delivery to every customer, at any
time of day, on any day.
 Within this process, there should be defined
areas where a customer preference can be
accommodated to provide a unique experience.

7. Physical Evidence
 The location of the service delivery also takes
on significance.
 The level of comfort and attractiveness of a
service location may make a lot of difference to
the
user experience.
 A calm and soothing environment with
thoughtful comfort measures may provide a
sense of
security to a new customer which will make
them return.

FACTORS AFFECTING
MARKETING MIX
Large number of factors influencing or affecting
marketing mix
 Factors relating to Market (Market Factors)
 Market factors are uncontrollable
 It relates to external environment
 Companies do not have control on market
factors
 They affect the marketing activities of the
company
 Factors relating to Marketing
 Marketing factors are controllable
 These relates to internal environment
 Companies have complete control on the
marketing factorsMARKET FACTORS
 Consumer Behavior
 MM must be designed only after studying the
consumer behavior
 The marketer has to study the needs, wants,
tastes, habits,, preferences etc.
of consumers
 It is also necessary to understand how
consumers take the purchase
decision
 Competition
 It heavily influences the demand of goods and
services of an organisation
 Before deciding on the marketing mix,
marketing manager should study the
competitive conditions in the market
 Before preparing the marketing mix, marketing
manager should
 consider the characteristics of competitors
products and
 their marketing strategiesMARKET FACTORS
 Pattern of distribution system
 Marketing manager should consider the
various forms of
distribution system
 Nature and behavior of distributors before
deciding upon
the marketing mix of his company
 Government controls
 The government makes different marketing
laws regarding
 Product
 Quality
 Price
 Advertising
 Packaging
 Marketing mix should be as per these laws

MARKETING FACTORS
 Product Planning
 The product should have the quality of
satisfying the customer’s needs &
 It should plan and devise its products
accordingly
 Product Planning is
 the act of making out and supervising the
search
 Screening development and commercialization
of new products
 Modifications of existing lines and
 The discontinuation of marginal or unprofitable
items
 The product quality can be improved to suit the
customers needs
 Brand Policy
 Branding is very important
 It creates brand loyalty
 Protects the brand from imitation
 Marketing manager may select single brand for
al the products or
 Different brand for different
productsMARKETING FACTORS
 Packaging Policy
 Marketers are adopting innovative and
attractive packaging due to increase
in competition
 Packaging affects the demand for a product
 Packaging serves three main purposes
 Protection of goods
 Enhancement of the product value
 Advertising the product
 It improves the total profit of the company
 by increasing total demand
 Due to improved public image
 Personal Selling
 Marketing manager decides whether to
promote the sale through personal
selling
 It involves decision regarding recruitment,
training and organisation of
salesman, to sell the products of the
companyMARKETING FACTORS
 Distribution channels
 Marketing manager decides about the
appropriate distribution channels for his
product
 He has to consider factors while making
selection of distribution channel
 He may opt for one type of distribution channel
for all product or different channels
for different product
 Advertisement Policy
 Advertisement is used to
 Increase demand of the product
 To maintain the demand of the existing
product
 To give product information
 The marketing manager has to decide
regarding
 The advertisement Copy
 Time of advertisement
 The advertisement Message
 The advertisement Media
 The advertisement Budget
 Evaluating the Effectiveness of
advertisementMARKETING FACTORS
 Sales Promotion
 The marketing manager has
 To take help of different sales promotion
programs for increasing the product demand
 Physical distribution
 The marketing manager has to decide policy of
physical distribution of goods
including
 Transportation
 Warehousing
 Finance management
 To ensure that the product may be made
available at right time and place
 With minimum distribution cost to the right
consumers
 Product Life Cycle (PLC)
 The marketing manager adopts different
marketing strategies in different stages of
PLC
 The marketing mix of the product depends
upon the stage which the product is
inMARKETING FACTORS
 Market segmentation
 Marketing mix depends upon the market
segment the marketer has selected
 Market Research
 MR provides valuable information regarding
consumer preferences,
competitors policies etc.
 The necessary information for taking marketing
decisions is collected only
through MR
 Marketing manager can use such information
in preparing the marketing mix

Understanding Services
Marketing

Services marketing refers to the promotion and

selling of intangible products or services rather
than tangible goods. It involves unique strategies
due to the intangibility, inseparability,
variability, perishability, and heterogeneity of
services.
*Meaning of Services Marketing:*

1. *Intangibility:* Services are intangible,

meaning they cannot be touched or seen before
the purchase. This characteristic makes the
marketing of services more challenging
compared to tangible goods. Thus, marketers
often rely on cues and communication to convey
the benefits and quality of services.

2. *Inseparability:* In services, production and

consumption often happen simultaneously and
are inseparable. For instance, when you visit a
salon, the service (haircut) is produced and
consumed at the same time. This impacts the
marketing strategies, as the customer experience
is crucial and needs to be managed effectively
during service delivery.
3. *Variability:* Services are variable due to
factors like human involvement, different service
providers, or changing circumstances.
Consistency in service quality becomes a
challenge, and maintaining quality standards is
essential for successful service marketing.

4. *Perishability:* Services can't be stored or

inventoried, making them perishable. If not
utilized, the opportunity to sell that service is
lost. This characteristic necessitates effective
demand management and pricing strategies.

5. *Heterogeneity:* Services can be highly

customized based on the customer's
preferences, leading to variations in the service
encounter. This poses challenges in
standardization and requires personalized
marketing approaches.
### Understanding Services Marketing
Services marketing involves the promotion and
sale of intangible products rather than physical
goods. It's a distinctive field within marketing
due to the unique characteristics of services that
differentiate them from tangible products.
Understanding these specific traits is crucial in
developing effective marketing strategies for
services.

#### *Characteristics of Services marketing*

1. *Intangibility:* Services are intangible,

meaning they can't be touched or felt before
purchase. This aspect makes it challenging for
consumers to evaluate the service's quality
beforehand. To overcome this, marketers focus
on creating strong brand images, testimonials,
and reviews to build trust.
2. *Inseparability:* Services are often produced
and consumed simultaneously. The service
provider and the consumer interact directly
during the service delivery process. This leads to
a significant reliance on the quality of
interactions and the customer's experience.

3. *Heterogeneity:* Services are variable

because they depend on the people who deliver
them and the circumstances under which they
are performed. Achieving consistency in service
quality can be a challenge, leading to the need
for stringent training and standardization of
processes.

4. *Perishability:* Services can't be stored or

inventoried. They are perishable in the sense
that the provider can't save unsold services for
later use. This results in fluctuating demand and
the necessity for effective pricing and capacity
management.
#### *Key Concepts in Services Marketing:*

1. *Relationship Marketing:* Services often

involve ongoing relationships between the
provider and the consumer. Emphasizing
customer satisfaction, loyalty programs, and
personalization becomes pivotal in services
marketing.

2. *Service Quality:* Ensuring consistent quality

is a critical aspect. Tangible cues (like the
physical environment or communication) and
intangible elements (such as reliability,
responsiveness, assurance, empathy, and
tangibles) play a significant role in how
consumers perceive service quality.

3. *Service Differentiation:* Standing out in the

market becomes essential due to intense
competition. Unique value propositions,
innovative service designs, and customization
are key strategies in services marketing.

4. *Service Blueprinting:* This technique

involves mapping out the entire service process,
identifying crucial touchpoints and potential
areas for improvement, allowing companies to
refine service delivery and enhance customer
experiences.

#### *Marketing Strategies for Services:*

1. *People-Centric Approach:* Recognizing that

people are integral to service delivery, focusing
on employee training, motivation, and
empowerment is crucial for ensuring consistent
service quality.
2. *Creating Tangible Elements:* Incorporating
tangible elements (such as physical
environments, collateral, and communication
materials) becomes crucial to help consumers
visualize the service and assess its quality.

3. *Emphasis on Customer Experience:*

Developing exceptional experiences becomes a
significant part of services marketing. This
includes ease of access, personalized
interactions, and prompt issue resolution.

4. *Integrated Marketing Communications:*

Utilizing multiple channels to communicate
service benefits, using testimonials, case studies,
and interactive content to demonstrate value to
potential customers.

In conclusion, services marketing represents a

unique and challenging domain due to the
intangible nature and distinctive characteristics
of services. Understanding and effectively
managing these specific traits is pivotal in
developing successful marketing strategies in
this sector. The focus on relationship building,
service quality, differentiation, and customer
experience remains crucial in catering to the
needs and expectations of consumers in the
ever-evolving service industry.

Understanding these foundational concepts can

aid marketers in developing tailored and
effective strategies to succeed in the dynamic
landscape of services marketing.

MICRO ENVIROMENT

The micro environment relates to the immediate

periphery of an organization and directly
influences the organization on a regular basis.
Hence, it is also known as the task environment.
It is important for an organization to monitor
and analyze all the elements of its micro
environment like customers, competitors, etc.

Elements of Micro
Environment
Let’s take a quick look at all elements of a
micro environment:

Customers and Consumers

Customers are people who buy an organization’s
products/services. In simple words, an
organization cannot survive without customers.
A consumer, on the other hand, is the ultimate
user of the product/service.

For example, a husband might purchase a

product for his wife. In this case, the husband is
the customer and the wife is the consumer.A
successful business keeps a close watch on both
customers and consumers of its
products/services. It must monitor and track any
changes in tastes and preferences of the
consumer along with changes in the buying
habits of the customer.

Competitors
Every business has competition. Competitors are
other organizations that compete with each
other for both resources and markets. Hence, it
is important that an organization is aware of its
competitors and in a position to analyze threats
from its competition. A business must be aware
of its competitors, their strengths and
weaknesses, and the most aggressive and
powerful competitors at all times.
interests are met.
Employees – People who work in the
organization are major contributors to its
success. It is important that all employees
embrace the organization’s goals and objectives.
Market
The market is much more than the sum of all the
customers. The organization must study the
market in terms of its actual size, the potential
for growth, and its attractiveness. Some
important issues are:

The cost structure of the market

Price Sensitivity of the market
Technological structure of the market
The existing distribution system of the market
The maturity of the market
Suppliers
Suppliers are another important component of
the micro environment. Organizations depend on
many suppliers for equipment, raw material, etc.
to maintain their production. Suppliers can
influence the cost structure of the industry and
are hence a major force.

Intermediaries
Intermediaries are also a major determining
force in business. Most customers are unaware
of the manufacturer of the products they buy
since they approach retailers, departmental
store, chain stores or online stores for
their purchase.
 MACRO ENVIROMENT
Macro Environment
Macro environment is the remote environment
of the firm, i.e the external environment in
which it exists. As a rule this environment is not
controllable by the firm, it is to huge and to
unpredictable to control.
Hence the success of the company, to a large
extent will depend on the company’s ability to
adapt and react to the changes in the macro
environment.
Primarily the company has to closely monitor the
various elements of macro environment.

Socio-Cultural Environment
The social values and culture of an environment
play a huge role in the functioning of the
company. So when the social environment
changes it can have a direct or indirect effect on
the company.

For example in recent time society has seen a

shift, and people no longer retire at 60. They
work five to ten years more after sixty. So this
has had a huge impact on companies.
Cultural forces also have a significant impact on
the success of a company in the long run.
Especially in a country like India where the
cultural influences are strong and complicated.

2] Technological Environment

In the times we live in, technology is constantly

changing it is important that the business can
keep up with the changes. Technology does not
only confine to computers and IT services. It
includes products, manufacturing processes,
techniques etc.

The technological developments can be a huge

advantage for a firm. But at the same time of the
technology used by the firm becomes obsolete
due to such developments, then it can also be a
threat to the firm.
3] Economic Conditions of the Market

The economic conditions of the economy and the

performance of a business have a very close
relationship. A business depends on the
economy for all its inputs and factors of
production. It also sells its products and services
in the same market.

A market is never in one stable condition. It is

always in a flux. If there is a boom in the market
then all businesses will benefit from the
favorable conditions. The income will be higher,
rate of interests will be low, new capital will be
available etc. Also, the opposite is also true in
case of a bust.

4] Ecology and Physical Environment

Ecology and physical environment play a huge
part in the performance of any business. This is
especially true for manufacturing/production
companies. Let us take the example for global
warming.

This change in our physical environment has

started affecting the rainfall in certain regions.
This in turn may affect the crops and cause a
shortage in raw materials such as jute, cotton,
rubber etc.

Weather conditions, topographical elements,

geographical location, climate changes and other
ecological factors are a very important element
in the macro environment of a business.

5] Political and Legal Factors

The political environment of a country is the
combination of three branches of the
government – legislature, executive and the
judiciary. The political environment of a country
will mainly depend on the political beliefs and
ideologies of the party in power at the state and
central levels.

The legal environment refers to the rules, laws,

regulations, and judgments etc. that affect the
functioning of a business. And this will also
include the taxation laws and the Budget for the
given year. So stable legal and political
government is really important if the business
and the economy as a whole has to succeed.
 BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS
• Kotler, P., Armstrong. G and Agnihotri, P. -
"Principles of Marketing" (17 edition)
• Sharma K., & Swati Aggarwal- "Principles of
Marketing"
• Chhabra, T.N. - "Principles of Marketing"
• Jain Pooja - "Principles of marketing"
WEBSITES
•https://www.priceintelligentiy.com/blog/bid/
164830/5-must-know-pricing:
strategy-cthics-issues
https://ide.co/case-studies/marketingestrategy-
of-tata-
https://www.tatatelebusiness.com/articles/
digital-transformation-initiatives-for=
the-retail-and-wholesale-sectors/
https://en.wikipedia.org/wiki/Tata_Group

https://www.tata.com/
https://lide.co/case-studies/marketing-strategy-
of-tanishq/