Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

What is Marketing?

Marketing is a set of activities related to creating, communicating, delivering,

and exchanging offerings that have value for others.

What is the Function of Marketing?

Marketing brings value to customers, whom the business seeks to identify,

satisfy, and retain.

The Marketing Principles or Principles of marketing are agreed- upon

marketing Ideas companies use for an effective marketing strategy. They are the
principles upon which we build product promotion strategies. We can use the marketing
principles for the effective promotion of either goods or services.

There are four original principles of marketing referred to as 4Ps or

4P marketing Matrix that companies use for their marketing strategy. These four
basic marketing principles Product, Price, Place, and Promotion are
interconnected and work together; hence, they are also known as Marketing Mix.

The Marketing mix is an acronym that encompasses 7Ps: Product, Place,

Price, Promotion, Physical Evidence, People, and Processes

The 7 Ps of marketing

The 7 Ps are a set of recognized marketing tactics, which you can use in any
combination to satisfy customers in your target market. The 7 Ps are controllable, but
subject to your internal and external marketing environments. Combining these different
marketing tactics to meet your customers' needs and wants is known as using a 'tactical
marketing mix'.

Product

Product refers to what you are selling, including all of the features, advantages and
benefits that your customers can enjoy from buying your goods or services. When
Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

marketing your product, you need to think about the key features and benefits your
customers want or need, including (but not limited to) styling, quality, repairs, and
accessories.

You can use research and development to inform the development of new products in
your business.

Price

This refers to your pricing strategy for your products and services and how it will affect
your customers. You should identify how much your customers are prepared to pay,
how much mark-up you need to cater for overheads, your profit margins and payment
methods, and other costs. To attract customers and retain your competitive advantage,
you may also wish to consider the possibility of discounts and seasonal pricing.

Learn more about pricing your products.

Promotion

These are the promotional activities you use to make your customers aware of your
products and services, including advertising, sales tactics, promotions and direct
marketing. Generally, these are referred to as marketing tactics.

Learn more about promotional activities.

Place

Place is where your products and services are seen, made, sold or distributed. Access
for customers to your products is key and it is important to ensure that customers can
find you.

You can set yourself apart from your competition through the design of your retail space
and by using effective visual merchandising techniques. If you are not a retail business,
Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

place is still an important part of your marketing. Your customers may need a quick
delivery turnaround, or want to buy locally manufactured products.

If you are starting a new business, finding the right business location will be a key
marketing tactic.

People

People refer to the staff and salespeople who work for your business, including yourself.

When you provide excellent customer service, you create a positive experience for your
customers, and in doing so market your brand to them. In turn, existing customers may
spread the word about your excellent service and you can win referrals.

Give your business a competitive advantage by recruiting the right people, training your
staff to develop their skills, and retaining good staff.

Process

Process refers to the processes involved in delivering your products and services to the
customer. It is also about being 'easy to do business with'.

Having good process in place ensures that you:

 repeatedly deliver the same standard of service to your customers

 save time and money by increasing efficiency.

Learn more about business processes, procedures and standards.

Physical evidence

Physical evidence refers to everything your customers see when interacting with your
business. This includes:

 the physical environment where you provide the product or service

Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

 the layout or interior design

 your packaging

 your branding.

Physical evidence can also refer to your staff and how they dress and act.

Consider how your store's layout, fixtures and signage can build your brand and
increase your sales.

Marketing (8 Major Approaches)

The study of marketing has been approached in more than one way. To some it
has meant to sell something at a shop or market place; to some it has meant the study
of individual product and its movement in the market; to some it has meant the study of
persons-wholesalers, retailers, agents etc., who move the products and to some it has
meant the study of behaviour of commodity movement and the way the persons
involved to move them. The approach to the study of marketing has passed through
several stages before reaching the present stage. There is a process of evolution in the
development of these approaches.

1. Product or Commodity Approach:

Under the commodity approach the focus is placed on the product or it is an approach

on the marketing on commodity wise basis. In other words, the study relates to the flow

of a certain commodity and its movement from the original producer right up to the

ultimate customer. The subject-matter, under this study, is commodity.

When one studies the marketing on this basis—commodity approach, one must begin to

study and analyses the problems relating to a commodity i.e., sources and conditions of

supply, nature and extent of demand, mode of transporting, storage, standardization,

packing etc. Again, take an example of a commodity, say rice.

Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

One has to study the sources of rice, location, people involved in buying and selling,

means of transport, problems of selling the product, financing, storage, packing etc.

Thus, we get a full picture of the marketing from the original producer to the ultimate

consumer. The method of study is repeated for each item.

The system claims that it is simple and gives good result over the marketing of each

product; description study is possible. But at the same time this approach is time-

consuming and repetitive process which is a drawback.

Under the commodity approach the focus is placed on the product or it is an approach

on the marketing on commodity wise basis. In other words, the study relates to the flow

of a certain commodity and its movement from the original producer right up to the

ultimate customer. The subject-matter, under this study, is commodity.

When one studies the marketing on this basis—commodity approach, one must begin to

study and analyses the problems relating to a commodity i.e., sources and conditions of

supply, nature and extent of demand, mode of transporting, storage, standardization,

packing etc. Again, take an example of a commodity, say rice.

One has to study the sources of rice, location, people involved in buying and selling,

means of transport, problems of selling the product, financing, storage, packing etc.

Thus, we get a full picture of the marketing from the original producer to the ultimate

consumer. The method of study is repeated for each item.

The system claims that it is simple and gives good result over the marketing of each

product; description study is possible. But at the same time this approach is time-

consuming and repetitive process which is a drawback.

Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

2. Institutional Approach:

In the institutional approach, the focus is on the study of institutions- middlemen,

wholesalers, retailers, importers, exporters, agencies, warehousing etc., engaged in the

marketing during the movement of goods. The approach is also known as middlemen

approach. Here, emphasis is given to understand and analyses the functions of

institutions, who are discharging their marketing functions.

The activities of each institution form a part of marketing and collectively complete the

marketing functions. In the process of moving the goods from the producer to the final

consumers, a large number of persons are engaged. This system pays attention to the

problems and functions of marketing institutions-transporting, banks and other financial

institutions, warehousing, advertising, insurance etc. This method does not give

adequate knowledge of the entire marketing functions and also’ fails to explain the

interrelations of different institutions.

3. Functional Approach:

The functional approach gives importance on the various functions of marketing. In

other words, one concentrates attention on the specialized services or functions

performed by marketers. In this approach, marketing splits into many functions-buying,

selling, pricing, standardization, storage, transportation, advertising, packing etc. This

may be studied one after another. Here each function is studied in detail in order to

understand it and analyses the nature, need and importance of each function.

In this approach, marketing is regarded as “business of buying and selling and as

including those business activities involved in the flow of goods and services between

producers and customers.” This system gives too much importance to various

marketing functions and fails to explain how such functions are applied to the specific

business operations.
Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

4. Management Approach:

This approach is the latest and scientific. It concentrates upon the activities or marketing

functions and focuses on the role of decision-making at the level of firm. This approach

is mainly concerned with how managers handle specific problems and situations. It aims

through evaluation of current market practices to achieve specific marketing objectives.

Generally there are two factors-controllable and uncontrollable, which are more

concerned with the decision-making. Controllable include price adjustment,

advertisement etc. Uncontrollable-economical, sociological, psychological, political etc.

are the basic causes for market changes. And these changes cannot be controlled by

any firm.

But controllable can be controlled by the firm. The uncontrollable limit the marketing

opportunities. As such, managerial approach is concerned with the study of

uncontrollable and then taking decisions for controllable within the scope set by

uncontrollable. Managerial or decision-making approach emphasizes on the practical

aspects of marketing, but ignores the theoretical aspects of marketing. At the same

time, this approach, provides an overall information of the entire business.

5. System Approach:

The system approach can be defined as “a set of objects together with the relationships

among them and their attributes.” Systems focus on interrelations and interconnections

among the functions of marketing. The system examines marketing connections

(linkage) inside as well as outside the firm. Inside the firm there is a co-ordination of

business activities-engineering, production, marketing, price etc.

On the basis of feedback information proper control is exercised to modify or alter in the

producing process, so that the desired output can be produced. Here, the aim is to
Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

secure profit through customer-satisfaction. Markets can be understood only through

the study of marketing information. For instance, business is composed of many

functions, which are composed of sub functions. Each function or sub-function is

independent, but interrelated and enables the other to achieve marketing objectives.

6. Societal Approach:

This approach has been originated recently. The marketing process is regarded as a

means by which society meets its own consumption needs. This system gives no

importance as to how the business meets the consumer’s needs. Therefore, attention is

paid to ecological factors (sociological, cultural, legal etc.) and marketing decisions and

their impact on the society’s well-being.

7. Legal Approach:

This approach emphasizes only one aspect i.e., transfer of ownership to buyer: It

explains the regulatory aspect of marketing. In India, the marketing activities are largely

controlled by Sales of Goods Act, Carrier Act etc. The study is concentrated only on

legal aspects, leaving other important aspects. This does not give an idea of marketing.

8. Economic Approach:

This approach deals with only the problems of supply, demand and price. These are

important from the economic point of view, but fail to give a clear idea of marketing.

Goals of Marketing

For profit companies: Increase profits by selling products or services to customers

Not for profit organizations: Promote the mission by attracting donors or participants

or by raising awareness of an issue or cause

Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia

Difference Between Customers and Consumers

• Customers are the individuals who buy the product

• Consumers are the individuals who actually use the product

• The customer and the consumer are not always the same

• Example: A food distributor’s customer is the restaurant, not the diner who is the

consumer.

GOALS’ Characteristics
ATTAINABILITY Goals must be realistic so that important parties who will be
reaching must see each goal as reasonable. CONSISTENCY management should exert
to set goals that are consistent with one another. COMPREHENSIVENESS the process
of goal-setting must be comprehensive. Simply it means that each functional area must
be able to formulate its own goals that relate to the organization’s goals.
INTANGIBILITY planners often confuse goals with strategies, objectives and even
tactics. A goal is not an action the firm can take, it is an outcome of the organization
wishes to realize.

GOALS OF MARKETING Examples of noteworthy marketing goals:

1. Identifying the target market
2. Increasing sales and profits
3. Increasing brand awareness
4. Increasing market share
5. Countering competitive strategies
6. Reputation
7. Increasing distribution channels
Principles of Marketing Grade 12_ABM_ MELCs_K-12 CG Code_ ABM_PM11-Ia