Session 2: Module I Fundamentals of Marketing - Scope of Marketing

Scope of Marketing
Welcome to the world of marketing. The last session explicated how the function of marketing
has changed over the period of years. Let’s start with few definitions. Marketing is about
identifying and meeting human and social needs. American Marketing Association definition:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large. One of the
shortest good definitions of marketing is “Meeting needs profitably.” (Kotler and Keller, 2017)
The video clip from the movie “Badmash Company” shows how marketing can influence people belief in
the product.

What is Marketing Management?

Marketing management is the art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering, and communicating superior customer value.
Marketing management takes place when at least one party to a potential exchange thinks about the
means of achieving desired responses from other parties.

Defining Marketing
Social definition of marketing: Marketing is 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 and Keller, 2017, p. 5). This definition emphasise the role of marketing in the
development of society. In most businesses today, marketing has to graduate from selling products
to marketing solution and achieving deep differentiation (Namakumari, 2010, p. 4). Selling is not
the most important part of marketing; aim of marketing is to know and understand the customer
so well that the product or service fits him and sells itself.

Co-creation of value among consumers and with businesses and the importance of value
creation and sharing have become important themes in the development of modern marketing
thought.

What is marketed?
Ten main types of entities: goods, services, events, experiences, persons, places, properties,
organizations, information, and ideas. (Kotler and Keller, 2017, pp. 5-7).

Goods: Physical goods include food products, cars, refrigerators, televisions, machines, and other
mainstays of a modern economy. These may vary from very basic items like grocery and
vegetables to high priced luxury like cars and airplanes and yachts.

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 Session 2: Module I Fundamentals of Marketing - Scope of Marketing

Services: Represent approximately 60% of the Indian economy, including airlines, hotels,
maintenance and repair people, and accountants, bankers, doctors, and management consultants.

Events: Include time-based events, global and local events. Some of the very successful sports
events in India are IPL, ISL and PKL. Recently we have seen an increased celebration of occasions
like Valentine’s Day or Friendship day. Traditional events like Navratri, Holi, and Diwali are also
marketed in India.

Experiences: Marketers orchestrate several services and goods to create, stage, and market
experiences. Examples of such experiences are theme parks, 4D movie experience, etc.

Persons: Include artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and
other professionals often get help from marketers, and each person has been advised to become a
“brand.”

Places: Cities, states, regions and whole nations compete to attract tourists, residents, factories, and
company headquarters. Make in India is one of such initiative to encourage businesses to locate
their production facilities in India. It also includes economic development specialists, real estate
agents, commercial banks, local business associations, and advertising and public relations
agencies.

Properties: Intangible rights of ownership to either real property (real estate) or financial property
(stocks and bonds).

Organizations: Include museums, performing arts organizations, corporations, and non-profits

that use marketing to boost their public images and compete for audiences and funds.

Information: It is essentially what books, schools, and universities produce, market, and distribute
at a price to parents, students, and communities.

Ideas: Every market offering includes a basic idea. Products and services are platforms for
delivering some idea or benefit.

Careful analysis will however reveal that in all marketing, what is ultimately marketed is the same
thing – value. (Namakumari, 2010, p. 14)

Who Markets? (Kotler and Keller, 2017, p. 7)

A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from
another party, called the prospect. If two parties are seeking to sell something to each other, we call
them both marketers. Markets also refer to demand (Namakumari, 2010, p. 15). Marketers are
skilled at stimulating demand for their products, but they also seek to influence the level, timing,
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 Session 2: Module I Fundamentals of Marketing - Scope of Marketing

and composition of demand to meet the organization’s objectives. Eight demand states are
possible: (Kotler and Keller, 2017, p. 7)

Negative demand—Consumers dislike the product and may even pay to avoid it. People have
negative demands towards saving schemes. Vegetarians feel negative demand for meats of all kinds.
People have negative demand for vaccination, dental work. The marketing technique used in this
case is known as Conversional Marketing.

Nonexistent demand—Consumers may be unaware of or uninterested in the product. Salman

Khan’s movie Tubelight showed no demand in the initial week only. Can be of two types, people
know about it but has no value, like, disposable junk, second people know about it but has no
value in the region like demand for woolens in Mumbai. Third there can be unfamiliar object
and hence no demand like few courses offered by university. Simulation Marketing is used to
inform and educate consumers about the product.

Latent demand—Consumers may share a strong need that cannot be satisfied by an existing
product. The new products introduced in the market have initially slow demand but some of
them pick up later. In the example of Honeywell air purifiers consumers are informed about the need
of the product. Marketing technique used is called as developmental marketing.

Declining demand—Consumers begin to buy the product less frequently or not at all.
Remarketing is the only way to start again. Nokia has tried several times to come up with a new set
of strategies to remarket it.

Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even

hourly basis. Synchro-marketing is used to bring the movements of demand and supply into
better synchronization. Theme parks like Imagica gives discount during off-season to increase the
demand.

Full demand—Consumers are adequately buying all products put into the marketplace. A
condition of full demand is a signal inviting competitive attack. When a new product is doing
well, new suppliers quickly move in and attempt to attract away some of the demand. Tata tea
Jaggo re campaign is made for reminding people about the product in a subtle way. Thus, the task of
the marketer in the face of full demand is maintenance marketing. The task is not as
challenging as other marketing tasks, such as conversational marketing or remarketing, in
which creative new thinking must be given to the future of the product.

Overfull demand—More consumers would like to buy the product than can be satisfied. The
task of reducing overfull demand is called de-marketing. More formally, de-marketing deals
with attempts to discourage customers in general or a certain class of customers in particular
on either a temporary or permanent basis. Cold play show tickets were kept very high to avoid rush.
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Unwholesome demand—Consumers may be attracted to products that have undesirable social

consequences. The task of trying to destroy the demand for something is called counter-
marketing or un-selling. Whereas de-marketing tries to reduce the demand without
challenging the product, counter-marketing is an attempt to designate the product as
intrinsically unwholesome (Kotler, 1973, Vol 2 No. 3). Most of the liquor companies use covert
marketing.

A market is a collection of buyers and sellers who transact over a particular product or
product class (such as the housing market or the grain market). (Kotler and Keller, 2017, p. 7)

Figure 1 Five Basic Markets and their connecting Flows

Manufacturers go to resource markets (raw material markets, labour markets, money

markets), buy resources and turn them into goods and services, and sell finished products to
intermediaries, who sell them to consumers. Consumers sell their labour and receive money
with which they pay for goods and services. The government collects tax revenues to buy
goods from resource, manufacturer, and intermediary markets and uses these goods and
services to provide public services. Each nation’s economy, and the global economy, consists
of interacting sets of markets linked through exchange processes. (Kotler and Keller, 2017, p. 8)

Sellers send goods and services and communications such as ads and direct mail to the
market; in return they receive money and information such as customer attitudes and sales
data. The inner loop shows an exchange of money for goods and services; the outer loop
shows an exchange of information. (Kotler and Keller, 2017, p. 8)

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 Session 2: Module I Fundamentals of Marketing - Scope of Marketing

Figure 2 How sellers and buyers are connected

Consumer Markets typically establish a strong brand image by developing a superior product
or service, ensuring its availability, and backing it with engaging communications and reliable
performance. Example, juices, cosmetics, athletic shoes, and air travel.
Business Markets Companies selling business goods and services often face well-informed
professional buyers skilled at evaluating competitive offerings. Advertising and Web sites can
play a role, but the sales force, the price, and the seller’s reputation may play a greater one.
Global Markets require companies to navigate cultural, language, legal, and political differences
as they make marketing decisions. Issues like how to enter each (as exporter, licenser, joint
venture partner, contract manufacturer, or solo manufacturer), how to adapt product and
service features to each country, how to set prices, and how to communicate in different
cultures.
Nonprofit and Governmental Markets Companies selling to nonprofit organizations with limited
purchasing power such as churches, universities, charitable organizations, and government
agencies need to price carefully. Much government purchasing requires bids; buyers often
focus on practical solutions and favor the lowest bid, other things equal. (Kotler and Keller,
2017, p. 8)

Questions:
1. Write the name of items that you have seen in the video.
2. Write a note about an event marketed heavily in India. What changes have you seen in
recent years in the marketing of the said event?
3. Write the examples of types of demand for
- Cricketers for IPL auction or Indian movie actors
4. Case Study – Celebrity Brands

T
aking cues from international celebrities, Indian film actors and cricketers are
increasingly launching their own clothing and accessories brands to cash in on a
category that industry executives and analysts believe has remained untapped so far in
the country.

US-based venture capital firm Accel Partners has invested about $15 million (Rs 100 crore) in
Sachin Tendulkar backed celebrity fashion company Universal Sports biz Private Ltd (USPL).
USPL is also associated with cricketer Virat Kohli and actress Shraddha Kapoor, whose

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 Session 2: Module I Fundamentals of Marketing - Scope of Marketing

fashion labels—Wrogn and Imara—it launched in October 2014 and February 2015,
respectively. The company also sells celebrity fashion accessories and merchandise on online
platform Collectabillia. The company recently added another celebrity in its portfolio with the
launch of women’s western wear brand Ms Taken by film actor Kriti Sanon. (Ghoshal, 2017)

Actor Shahid Kapoor in October launched his fashion brand Skult, in an exclusive tie-up with
Aditya Birla group-owned online fashion store abof. Anushka Sharma launched NUSH earlier
this month and it went on sale last week. NUSH is available on Jabong, Myntra and Shopper's
Stop. It has, however, already become controversial. Days after it was launched and promoted
by Anushka Sharma on her social media accounts, certain garments in the range were accused
of having been copied from those available on Chinese e-commerce sites. Two bomber jackets
and a parka were among those suspected of being ripped off. Anushka's business partner
released a statement acknowledging the possibility of plagiarized designs but said it had been
unintentional. What was far more damning was his admission that the actress' participation in
the design process was nil, even though promotional videos released in aid of NUSH
appeared to suggest that Anushka was closely involved. (DAS, 2017)

In the past one year, several celebrities, including cricketer Yuvraj Singh and actors Deepika
Padukone and Sonam Kapoor (and her sister Rhea Kapoor), have tied up with designers and
retailers to launch their own apparel brands. Industry executives said the number of celebrity-
owned fashion brands has seen a surge in the past one year.

The inspiration behind these launches, some say, are international celebrities like singers
Justin Timberlake and Jessica Simpson who own and operate large global portfolios of
branded products. “In India, it has always been the popular designers operating in this space.
But now, the mainstream celebrities are also exploring retail space for lucrative investments
just like Hollywood stars,” said an executive in the business who did not want to be named.
(Ahluwalia, 2017)

Manish Mandhana, managing director at Mandhana Retail Ventures, the exclusive global
licensee of actor Salman Khan’s Being Human clothing agreed. The company is planning to
expand its footprint across smaller cities by opening 100 exclusive Being Human stores in the
next four years in cities like Raipur, Bikaner, Guwahati and Vapi.

“The aspirational value for Being Human is very high in tier II and tier III towns. These cities
are growing and the disposable income is good because of which these become the focus
area,” said Mandhana. The royalties from Being Human support education and health care
initiatives of the Salman Khan Foundation. Between 2013 and 2015, Being Human’s sales
turnover expanded nearly four times to Rs 235 crore from Rs 60 crore, according to data from
consulting firm KPMG. Additionally, online marketplaces like Amazon, Myntra and Flipkart
have further helped the brands to penetrate smaller towns and cities. Fashion portal Myntra,
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 Session 2: Module I Fundamentals of Marketing - Scope of Marketing

for instance, is the sole retailer of ‘All About You’ by Deepika Padukone and ‘HRX’ by Hrithik
Roshan.

“Both the brands do extremely well and are among the top 20 brands sold on our platform.
Celebrity-led brands have a very strong and large fan following and have made their brands
extremely popular,” said Manohar Kamath, head, Myntra Fashion Brands (MFB). The
platform also sells other brands like Wrogn, Being Human, Imara, Ms Taken and YWC by
Yuvraj Singh.

However, not everyone is convinced about celebrity-backed brands business. “International

celebs launch limited edition collections but a whole line of celebrity-owned products has seen
limited success globally also. Fans respect the celebrities for their fields. There is a limited
connect fans find with the celebrities beyond their respective fields,” said Rajat Wahi, partner
and head (consumer markets), at KPMG India.
Discussions:
1. What is your opinion about branded clothing market in India?
2. Take a side: Clothing Line by celebrity is good or bad for the brand equity of the celebrity.

Bibliography
Ahluwalia, H. (2017, March 1). Celebrity-backed fashion labels strike a big chord with glamour-struck
consumers. Retrieved from Live Mint:
http://www.livemint.com/Consumer/uhBCZvMWKcE4vjs6c8ztHL/Celebrities-association-
with-fashion-labels-see-a-surge-in-I.html

DAS, S. (2017, October 16). Sonam Kapoor To Anushka Sharma, 6 Celebs Fronting Fashion Lines.
Retrieved from swirlster.ndtv.com: https://swirlster.ndtv.com/style/sonam-kapoor-to-
anushka-sharma-6-celebs-fronting-fashion-lines-1763594

Ghoshal, A. (2017, November 13). Sachin Tendulkar-backed Universal Sportsbiz raises $15 mn from
Accel. Retrieved from VCCircle: https://www.vccircle.com/accel-partners-to-invest-15-
million-in-sports-fashion-firm-universal-sportsbiz/

Kotler and Keller. (2017). Defining Marketing for the New Realities. In K. a. Keller, Marketing
Management 15e. Pearson.

Kotler, P. (1973, Vol 2 No. 3). The Major Tasks of Marketing Management. Marketing Masters -
AMA, 52-56.

Namakumari, V. S. (2010). Marketing Management: Global Perspecective Indian Context. New

Delhi: Macmilllan Publishers India Ltd.

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