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DIGITAL MARKETING

UNIT: 1
INTRODUCTION

Nature and scope of marketing

Genesis & evolution of Marketing concepts
7 Ps of marketing
Concept of market segmentation and its Importance
Bases for market segmentation
Target marketing and positioning
Types of positioning
Digital Marketing Vs Traditional Marketing
POEM framework.
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1.1 Nature and scope of marketing

What is marketing?
“A societal 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.”
Kotler
“Marketing is the combination of activities designed to produce
profit through ascertaining, creating, stimulating, and satisfying
the needs and/or wants of a selected segment of the market.”
Eldridge

“Marketing is the performance of business activities directed

toward, and incident to, the flow of goods and services from
producer to consumer or user.”
AMA (1948)

Nature of marketing

1. Marketing is an Economic Function

Marketing embraces all the business activities involved in getting
goods and services, from the hands of producers into the hands
of final consumers. The business steps through which goods
progress on their way to final consumers is the concern of
marketing.
2. Marketing is a Legal Process by which Ownership Transfers
In the process of marketing the ownership of goods transfers
from seller to the purchaser or from producer to the end user.
3. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise,
institution, or organization interacts with the customers and
stakeholders with the objective to earn profit, satisfy customers,
and manage relationship. It is the performance of business
activities that direct the flow of goods and services from producer
to consumer or user.
4. Marketing is a Managerial function
According to managerial or systems approach - "Marketing is the
combination of activities designed to produce profit through
ascertaining, creating, stimulating, and satisfying the needs
and/or wants of a selected segment of the market."
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According to this approach the emphasis is on how the individual

organization processes marketing and develops the strategic
dimensions of marketing activities.
5. Marketing is a social process
Marketing is the delivery of a standard of living to society.
According to Cunningham and Cunningham (1981) societal
marketing performs three essential functions
 Knowing and understanding the consumer's changing needs
and wants;
 efficiently and effectively managing the supply and demand
of products and services; and
 Efficient provision of distribution and payment processing
systems.
6. Marketing is a philosophy based on consumer orientation and
satisfaction
7. Marketing had dual objectives – profit making and consumer
satisfaction
8. Creates Market Offering
Marketing provides offers of various goods and services to
potential customers. It is the one that communicates all
information regarding products like its prices, uses, quality, and
technology to customers.
9. Exchange Oriented
It is a process which aims at exchanging products among buyer
and seller. Marketing attracts and influences people to buy the
products of the company.
10. Continuous Activity
Marketing is a regular and continuous activity of business for
selling their products. Businesses always need to monitor
the marketing environment and should accordingly plan,
implement, and control all marketing programs.
11. Goal-Oriented
Marketing is a goal-oriented business activity that aims at
achieving the desired sales and profitability. It focuses on
approaching more and more customers and thereby satisfying
their needs by delivering them the required goods or services.
12. Creates Utilities
Marketing creates various utilities such as form utility, time
utility, and place utility. It creates form utility by manufacturing
the right product using inputs, time utility by storing goods in
warehouses, and place utility by delivering goods properly to end
customers.
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Scope of Marketing

1. Study of Consumer Wants and Needs

Goods are produced to satisfy consumer wants. Therefore study
is done to identify consumer needs and wants. These needs and
wants motivates consumer to purchase.
2. Study of Consumer behavior
A marketer performs study of consumer behavior. Analysis of
buyer behavior helps marketer in market segmentation and
targeting.
3. Production planning and development
Product planning and development starts with the generation of
product idea and ends with the product development and
commercialization. Product planning includes everything from
branding and packaging to product line expansion and
contraction.
4. Pricing Policies
Marketer has to determine pricing policies for their products.
Pricing policies differs form product to product. It depends on the
level of competition, product life cycle, marketing goals and
objectives, etc.
5. Distribution
Study of distribution channel 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. Right promotion mix is crucial in accomplishment of
marketing goals.
7. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer
satisfaction is the major objective of marketing.
8. Marketing Control
Marketing audit is done to control the marketing activities.
9. Create Awareness
Informing customers about the company’s products is a must for
attracting them to buy products. Marketing is the medium
through which companies communicate with the public and
explain the features or benefits of their products. Marketing helps
in creating wide publicity of goods and services in the market.
10. After-Sales Services
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The term marketing includes after-sale services to be provided by

the business to its customers. Resolving issues of the customer’s
and problems in case of any product failure will help in
developing better relations with customers.
11. Collects Feedback
It involves collecting the feedback or suggestions of customers
once the product is sold. Through this, satisfaction or
dissatisfaction level of customers can be easily identified which
helps in improving the service quality using suggestions provided
by them.

1.2 Genesis and evolution of Marketing concepts

Production Product Sales Customer Social Orientation

Orientation Orientation Orientation Orientation
Products were Goods and Sales volume Based on what Customer satisfaction
mass-produced services are of a was more the customer plus social welfare.
and reasonably good standard. important to wanted and
priced. businesses than expected.
Client
satisfaction.
Businesses used Focus on By Pushing or First, Produce high-quality
to think that if producing a selling a product understanding goods that were also
they created better product whether the the needs and environmentally
something, with more buyers wanted it pain points of friendly.
someone would unique features. or not, they don’t the customer
buy it, care. and then
increasing their launching the
profits. product.
Focused more on Focus more on Focus more on Focus on Focus on the
quantity than quality than sales volume. customer environment and the
quality. quantity. satisfaction well-being of
rather than consumers.
‘quick sales.’
Profit through Profit through Profit through Profit from long- Profit through
mass product quality. max. sales lasting, healthy customer satisfaction
production. relationships and social welfare.
with customers
Goods are easily Prices are higher Advertisements Take the Providing humans with
available at any due to the on a variety of feedback from a quality lifestyle and a
place. limited edition. media, including the customer pollution-free
radio, print, and and then works environment.
television, on the
improvement of
the product.
Eg- Pens are Eg- Good beer Eg- Selling Online courses Eg- Avoid plastic
produced in bulk needs no push, if Insurance were needed at packaging, and selling
and sold for very the product is Policies the time of pollution-free cigarettes
little money. good there is no Corona, so began
need for offering them to
Marketing. customers.
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1.Production Orientation

 Under this people believed that when a product’s quality is

good enough it doesn’t require any additional efforts in
promotion as people will anyhow purchase it. This was the
widely used approach during the industrial revolution.
 People focused on more production at a low cost so that it
can fetch better returns. Before the revolution maximum
products were handmade and this entire process made the
production cost of the product go high.
 Due to a high production cost, producers had no option but
to sell it at higher prices.
 After the introduction of machinery, this production cost
came comparatively down and the products were being sold
at 1/10th of the original price.
 Customers were ready to buy this product with happiness
as it was cheaper for them than ever. In this case, there was
hardly any requirement for marketing, and the products
were being sold with ease.
 Though when we are going through this philosophy of
production orientation we need to know that a few
assumptions were taken while framing this philosophy; as
everything that was being produced with the machinery
could be sold, the production cost was kept to a minimum
only, and so on.
 Manufacturers during this phase of the evolution of
marketing concepts were eyeing more efficient production
which is coming out of low-cost as to attain the maximum
profit.

Production Manufacture Aggressive

Customers
Capabilities product sales efforts

2. Product Orientation

 Here, a more competitive approach was taken during the

production process in order to produce the most ideal
product they can.
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 An assumption was made during this phase that if the

people are already having a product of certain quality they
will only expect you to produce a product of better quality
than that.
 If they are already benefited from the core features of a
product then if you want to sell your product, you will have
to create something different and better.
 What was happening in this phase was, that every
production process was setting a standard before itself.
 Since customers were seeking a product with more and
more unique features, manufacturers were also aiming
toward producing a better and better product. They were
doing their best to solve the problem of the diverse needs of
customers.
 But there was a downside during this approach to
production – the prices of the product were going up at a
high rate.
 Every time the product contained more and more features,
this leads the manufacturers to increase the price of the
product, and sometimes even the customer themselves were
not in a position to pay the prices for what they seek were
seeking from the product.

3. Sales Orientation

 By this time people started to recognize the importance of

the promotion process and why they should introduce
marketing to their business.
 Producers started to realize that the mere production of
quality products is not enough for their business’s growth
rather they will also have to invest in the promotion process.
 They realized that it was extremely difficult for them to move
the product out of their firm without proper promotion or
advertising.
 What we know today about marketing was realized during
that period of time. They started to feel that no matter how
much quality their products contain, people won’t buy them
if they are kept to mum.
 During this phase, the manufacturers were only eyeing two
things – producing the best quality product they can and
convincing the people at their best to buy the products that
they produced.
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 They started using different tactics to influence people to

buy their products. Even high-pressure tactics were being
introduced to boost up sales.
 This philosophy is being followed since the 1940s and the
marketing which we are following currently is entirely based
on the same philosophy

4. Customer Orientation

 Under this philosophy, the main aim of businesses is to

understand and satisfy the expectations of the customer.
 This is undoubtedly the most ideal condition of any
business where they try to figure out what are the actual
needs of the customer and what they expect from their
seller.
 Since the 1950s this philosophy has been considered the
fundamental aim of any business.
 Customer satisfaction was the main aim of businesses
during this phase of the evolution of marketing. They
focused on the customer more than just their product.
 What they produced depended upon what the customer
desired and expects from them.
 First of all the businesses commence with the customer and
once they are all clear about their needs and desires, they
move on to the next step; production.
 What they are going to produce and how the production
process will proceed depends on the above-mentioned
factors.
 Under this philosophy many assumptions were made as
well like; as firms are going to produce only those products
that are desired by the customer, the entire management
will work to enhance their programs for the prime
satisfaction of their customer and the business focuses on
the long-term goals rather than the quick sales.
 Under this philosophy, marketing campaigns grew as well.
 Businesses came to know about their audience’s desires
only through their marketing campaign and they were able
to be aware of their product through their marketing
campaigns only.

5. Social or Societal Marketing Orientation

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 Till now marketing campaigns were completely oriented

toward business, sales, products, and customers. We were
not paying attention to the environmental degradation that
was happening due to our activities.
 Marketing theory went through a refinement during this
phase when the marketers and the business owners started
paying attention to the environment.
 They started to recognize how their activities are harming
nature and eventually creating harm for our society as well.
 Consumer welfare came into play during this phase of the
evolution of marketing. Here the aim of businesses shifted
towards providing humans with a quality lifestyle and along
with that ensuring a pollution-free environment around us.
 Now the businesses were not just focusing on producing
quality products rather they were focused on producing
environment-friendly products.
 Their aim shifted from complete customer satisfaction to
customer welfare as well as social welfare.
 Environment safety was the major aim of businesses and
this philosophy of environmental protection is being
followed even today and that is what we call Green
Marketing.