Chapter : 7

Prepared by : Chandani Karn

Course content (LH 5)

 Concept of marketing

 Role of market research

 Conducting market research

 Marketing research – goal setting and understanding the market

 Marketing mix – product or service, promotion, price, people, process

and physical evidence

 Evaluation of marketing
Concept of Marketing

Marketing refers to all activities a company does to promote

and sell products or services to consumers.

Marketing makes use of the “marketing mix”. Also known as the

four Ps (4Ps) i. e. product, price, place, and promotion.

At its core, marketing seeks to take a product or service,

identify its ideal customers, and draw the customers’ attention
to the product or service available .

American Marketing Association’s definition, “Marketing is the

organization of the sale of a product, for example, deciding on
its price, the areas it should be supplied to, and how it should
be advertised”.
 Actors Image Meaning

For a producer/manufacturer The activity of production of

products or services is
marketing.
For a seller The activity of selling products
or services is marketing.

For a buyer The activity of purchasing

products or services is
marketing.
For an advertiser The activity of promoting the
sale of products or services by
making effective
advertisements is marketing.
For a general public The activity of promoting sale
of products or services through
effective advertisement is
called marketing.
Marketing
 Marketing is a social process by which individuals and groups obtain what they need
and want through creating , offering and freely exchanging products and services of value
with others.

 The marketers work hard to discover the needs and wants of customers and try to
develop products or services which would satisfy them.

 All the firms try to produce the products which will be demanded by satisfying
customers needs and wants.

 There are three primary purposes of marketing :

i. Capturing the attention of your target market.
ii. Persuading a consumer to purchase your product.
iii. Providing the customer with a specific, low-risk action that is easy to take.

 The New York Times described it as : “the art of telling stories so enthralling that
people lose track of their wallets.”

 Traditionally there was no difference between selling and marketing but modern age is
the age of globalization where consumers play a very important role and marketing
strategies also have become very important.
Concept of Marketing
Or Evolution of Marketing
1. The Production Concept :
 During the earlier days of industrial revolution, the demand for industrial
goods started picking up but the number of producers were limited.
 As a result, the demand exceeded the supply. Selling was no problem.
Anybody who could produce the goods was able to sell. The focus of
business activities was, therefore, on production action of goods.
 This concept is the oldest of the concepts in business. It holds that
consumers will prefer products that are widely available and inexpensive.
 Managers focusing on this concept concentrate on achieving high
production efficiency, low costs and mass distribution.
 They assume that consumers are primarily interested in product
availability and low prices.
 This orientation makes sense in developing countries, where consumers
are more interested in obtaining the product than in its features.
 This concept is “telling and selling” concept based on “we sell what we
make”.
2. The Product Concept :
 Emphasis on production capacity during the earlier days, the position of
supply increased over period of time. Mare availability and low price of
the product could not ensure increased sale and as such the survival
and growth of the firm.
 Thus, with the increase in the supply of the products, customers started
looking for products which were superior in quality, performance and
features.
 This orientation holds that consumers will favor those products that offer
the most quality, performance, or innovative features.
 Managers focusing on this concept concentrate on making superior
products and improving them over time.
 They assume that buyers admire well-made products and cam appraise
quality and performance. However, these managers are sometimes
caught up in a love affairs with their product and do not realize what the
market needs.
 Management might commit the “better-mousetrap” fallacy, believing
that a better mousetrap will lead people to beat a path to its door.
3. The Selling Concept :

 With the passage of time, the marketing environment underwent further

change.
 The increase in scale of business further improved the position with respect
to supply of goods, resulting in increased competition among sellers.
 The product quality and availability did not ensure the survival and growth
of firms because of the large number of sellers selling quality products.
 This is another common business orientation. It holds that consumers and
business, if left alone, will ordinarily not buy enough of the selling
company’s products.
 The business philosophy changed. It was assumed that the customers would
not buy, or not buy enough, unless they are adequately convinced and
motivated to do so.
 The organization must, therefore, undertake an aggressive selling and
promotion effort.
 It also assumes that the company has a whole battery of effective selling
and promotional tools to stimulate more buying.
 Most firms practice the selling concept when they have overcapacity.
 Their aim is to sell what they make rather than make what the market
wants.
4. The Marketing Concept :
 This is a business philosophy that challenges the above three business
orientations.
 Its central terms crystallized in the 1950s.
 Marketing orientation implies that focus on satisfaction of customer’s
needs is the key to the success of any organization in the market.
 This concept is based on “we make what we can sell”. In other words, all
the decisions in a firm are taken from the point of view of the customers.
New marketing is considered as Demand Management in a broad sense.
 Its holds that the key to achieving its organizational goals (goals of the
selling company) consists of the company being more effective than
competitors in creating , delivering, and communicating customer value to
its selected target customers.
 It assumes that in the long run an organization can achieve its objective
of maximization of profit by identifying the needs of its present and
prospective buyers and satisfying them in an effective way.
 The marketing concept rests on four pillars : target market, customer
needs, integrated marketing and profitability.
5. The Societal Marketing Concept :
 The marketing concept, as described in the preceding section cannot
be considered as adequate if we look at the challenges posed by
social problems like environmental pollution, deforestation, shortage
of resources, population explosion and inflation.
 It is so because any activity which satisfies human needs but is
detrimental to the interests of the society at large cannot be justified.
The business orientation should, therefore, not be short-sighted to
serve only consumers’ needs. It should also consider large issues of
long-term social welfare, as illustrated above.
 This concept holds that the organization’s task is to determine the
needs, wants, and interests of target markets and to deliver the
desired satisfactions more effectively and efficiently than competitors
(this is the original Marketing Concept).
 Additionally, it holds that this all must be done in a way that
preserves or enhances the consumer’s and the society’s well-being.
6. The Holistic Marketing Concept :

 A 21st century marketing is known as holistic marketing. Today marketing

concept is change.
 This concept is based on the development, design and implementation of
marketing programs, processes, and activities that recognizes their breath
and interdependencies.
 Factors affecting holistic marketing Globalization, Technology,
Deregulation, Competition.
 Parts of holistic marketing :
i. Relationship marketing
ii. Integrated marketing
iii. Internal marketing
iv. Performance marketing
v. Societal marketing

 Holistic marketing recognizes that “everything matters” in marketing-that a

broad, integrated perspective is often necessary.
Time Marketing Starting Main Focus Means Ends (Goal)
frame concept Point

Before Production Factory Production Production of products at Profit through

1920 A.D. Concept Oriented affordable/low cost production efficiency

1920- Product Factory Quality Production of high quality Profit through quality
1930A.D. Concept Oriented product assurance

1930- Selling Factory Seller’s need Aggressive selling and Profit through sales
1950A.D. Concept Oriented heavy promotions volume

1950- Marketing Target Customer Integrated marketing Profit through

1970A.D. Concept Market Oriented customer satisfaction

1970- Societal Target Society Integrated marketing with Goal achievement

1980A.D. Marketing Market Oriented social ethics/ socially through social
Concept responsible norms responsibility

From Holistic Target All marketing Integrated marketing; Goals achievement

1980A.D.- Marketing Market matters relationship marketing; through marketing
Till Concept internal marketing; think
societal marketing;
performance marketing
Marketing research
Marketing Research has two words, i.e. marketing and research
1. Marketing means buying and selling activities.
2. Research means a systematic and complete study of a problem. It is done by
experts. It uses scientific methods.

 Thus, we can say, “Marketing Research is a systematic method of collecting,

recording and analyzing of data, which is used to solve marketing
problems.”

 In other words, marketing research consists of people, equipment and

procedures to gather, sort, analyze, evaluate, and distribute needed timely and
accurate information to marketing decision makers.

 Marketing research does not itself make the decisions, nor does it
guarantee success. Rather, marketing research helps to reduce the
uncertainty surrounding the decisions to be make.
Role of Market Research
 Improve communication
It drives your communication not only with your current customer base but with target
prospects as well. Market research shows you where your customers can be reached, as
well as what language will be most effective in attracting their attention and resonating
with them on an emotional level.

 Identify opportunity
Market research helps you identify both high-level and more accessible opportunities for
reaching and converting new customers. It can be the best way to discover new platforms
for advertising, consumer concerns you were unaware of, and gaps within your market that
you can fill.

 Lower your risk

Concrete data keeps you focused on the real opportunities and helps you avoid
unproductive effort. When you understand your customers, you can use your resources to
reach them more effectively, with less risk of wasting time, money, and effort on
marketing initiatives that don't work. Market research also helps you identify low-risk,
high-reward areas where your company can expand or offer new services.
Conducting Market Research
Data
1. Primary Data :
 Primary data refers to the first-hand data gathered by the researcher himself.
 it is the data that is collected for the first time through personal experiences or evidence,
particularly for research. It is also described as raw data or first-hand information.
 Like: surveys, observations, experiments, questionnaire, personal interview, etc.
 It is an expensive research.
 Always specific to the researcher’s needs.

2. Secondary Data :
 Secondary data means data collected by someone else earlier.
 It is a second-hand data that is already collected and recorded by some researchers
for their purpose, and not for current research problem.
 It is accessible in the form of data collected from different sources such as government
publications, censuses, internal records of the organization, books, journal, articles,
websites and reports, etc.
 It is an economical research.
 May or may not be specific to the researcher’s need.
Conducting Market Research
How to Conduct Research for Your Business / Marketing Research
Process
Though they look at different aspects of your business, both market research and
marketing research should follow the same pattern of data collection and analysis.

1. Define the problem

2. Determine your budget and timeframe
3. Design your method and needs
4. Choose a sampling method
5. Plan for data analysis
6. Data collection
7. Analysis of the data
8. Create your report
1. Define the problem
It is highly said that “ a problem well defined is half-solved”.
Start by identifying the focus of your research. Knowing what question you are trying to
answer will help you structure your research effectively.
Poorly defined problems create confusion and do not allow the researcher to develop a
good research design.

2. Determine your budget and timeframe

 How much can you afford to spend on the research process? How soon will you need to
have data collection completed?
Like all the strategies that you use to grow your business, research should be conducted
within your available resources.
 However, depending on the urgency of the questions you are answering, it may be
worth spending more money to get the most comprehensive results possible.

3. Design your method and needs

Identify what data needs to be collected and how you will gather it. Some options are
observation, surveys, telephone calls, or focus groups and also by secondary source.
 If you are unsure how to structure your data collection, consider working with a
professional research firm.
4. Choose a sampling method
How will you select the participants for your research? You may need a random sampling
from the general population of consumers, a group that all have a single lifestyle factor in
common, or responses only from people who are already your customers.
Create a plan for identifying and contacting your participants.

5. Plan for data analysis

 Decide how you will analyze your data. Will you need quantitative data for statistical
analysis or qualitative, observational data to give you a broad picture? Will you use
software or do it by hand?
Take time to learn about various methods of analysis to find the one that will best answer
your research question.

.6. Data collection

Once you know what question you want to answer and have designed a research method
to answer it within the constraints of your available budget and time, it's time to collect
data.
Many businesses work with professional firms or consultants to conduct their actual
research.
7. Analysis of the data
No matter how straightforward your data seems at first glance, you'll want to use
specific methods of analysis to ensure that you understand what it is telling you.
The methods of analysis that you use will depend on the type of data you collected.
 This should also be when you check for errors, which can occur in your sampling
method, data collection, and analysis.

8. Create your report

The final step of the research process is drafting a report on your findings.
 Your report should outline the entire research process, from developing your
problem statement to the results of your data analysis.

If you were unable to answer your research question, that doesn't mean your research
was done incorrectly.
Goal setting and understanding the market

Successful businesses undertake market research on a regular basis to:

 identify potential new customers

 learn more about existing customers

 inform their decisions regarding existing and new products or services

 better understand their competitors

 test new markets

 identify performance, pricing or promotion opportunities

Marketing Mix – Product
or Service
 A marketing mix includes multiple areas of (4Ps)

focus as part of a comprehensive marketing

plan. The term often refers to a common
classification that began as the four Ps: product,
price, placement, and promotion.
 4ps known as product marketing mix.

 The 7Ps of marketing, also known as the

marketing mix, is a concept established by E.
Jerome McCarthy in the 1960s. The 7Ps (7Ps)
comprise Product, Price, Place, Promotion,
People, Process, and Physical evidence.
 7ps known as service marketing mix.
7Ps of marketing

 Products/ Services :
A product mix is the total number of product lines and individual products or
services offered by a company.
i.e. how can you develop your products or services

 Price/Fees :
PRICE MIX is the value of the product determined by the producers. Price mix includes
the decisions as to: Price level to be adopted; discount to be offered; and, terms of
credit to be allowed to customers.
i.e. how can you change our pricing model

 Place/ Access :
Place mix or distribution mix is an arrangement of channels, both physical and non-
physical, through which the product is made available to customers for purchase.
i. e. when new distribution option are there for customers to experience our product,
e.g. offline, online
 Promotion :
A promotional mix is a combination of marketing methods including advertising,
sales, public relations and direct marketing to achieve a specific marketing goal.
i.e. how can we add to or substitute the combination within paid, owned and earned
media channels

 Physical evidence :
The physical evidence element of the marketing mix refers to the physical environment
experienced by the customer. This could mean the design and layout of a shop or
website.
i.e. how we reassure our customers, e.g. impressive buildings, well-trained staff, great
website

 Process :
It is a strategy which involves dividing a broad market into small sections heaving similar
needs. & thus the heterogeneous market is converted .
Product-process mix helps us understand why and how manufacturing organizations
change their production operations. With changes in products ..
i.e. are there internal process barriers in the way to delivering the best customer value
People :
People, in the marketing mix, refers to anyone directly or indirectly involved in the
business side of the enterprise. That means anyone involved in selling a product or
service, designing it, marketing, managing teams, representing customers, recruiting
and training.
i.e. who are our people and what are there skills gaps?
 Evaluation of Marketing
Evaluation has its origin from the Latin word “Valupure”
Which means the value of a particular thing, idea or action.
Evaluation means findings out the value of something.

The term evaluation means to make a judgment by improving

and providing marks and grades based on level of achievement.
Concept of evaluation of market

Evaluation is a judgmental process, it held in the end of findings or learnings.

Market evaluation is a research of a marketplace aimed at determining

whether a new company can perform well and succeed in a new business
environment. It helps receive insights into competitors, market trends and make
strategic business decisions.

 Market evaluation, or market analysis, is a research and assessment

of a specific marketplace and the dynamics within it.

By Tyler, “Evaluation is the process of determining degree to

which goals of a learner have been achieved.”

 This process includes the gathering of both quantitative and qualitative

data: market size, statistical figures, average prices within the target market, the
consumers' buying behaviors, and more.
 Marketing evolution refers to the changes that have taken
place in the field of marketing over the past two
hundred years as societies have evolved from agrarian
(relating to cultivated land or the cultivation of land) societies to
industrial societies to post-industrial societies.

It guides the researcher also how they should improve their skills.
Evaluation of Marketing

PESTEL : Political, Economical, Social, Technological, Environmental, Legal

Who needs it?

There are four main types of businesses who need market evaluation most:

 New businesses (startups)

 Businesses that are already operating and plan to expand

into new markets

 Companies looking to make a pivot toward a different

market

 Existing companies that are launching new products or

services onto the markets they currently occupy
Questions About The Evaluate a Market
How attractive is the market for your idea?

Are there other markets that may be more promising?

Can you alter the idea to appeal to a more attractive market?

How to evaluate your business

1. Analyze your target audience and rivals

2. Assess your potential marketplace

3. Find come adjacent opportunities

4. Explore your business environment