BBA- 113

BASICS OF MARKETING

Let’s delve into the fundamentals of marketing and explore some key concepts:

1. What is Marketing? Marketing encompasses the strategies and tactics that brands
use to promote their products and services to consumers. It involves everything
from market research to writing ad copy. At its core, marketing aims to connect with
the right audience, analyze consumer behavior, and effectively communicate value
propositions.

2. The 7 Ps of Marketing: In the late 20th century, marketing thought leaders developed
the concept of the “Marketing Mix”, which consists of seven fundamental elements:

o Product: What are you selling? Whether it’s a shiny new business widget, a
hand-crafted luxury item, or chicken tacos, understanding your product’s
features and specifications is crucial.
o Price: Research your competitors’ pricing and determine how much
consumers are willing to pay for your offering.
o Promotion: Choose the right channels (from radio ads to social media
banners) to promote your product effectively.
o Place: Ensure your customers can find and purchase your product. Consider
online availability and inventory management.
o People: Optimal customer service and a strong marketing team contribute to
brand reputation and customer loyalty.
o Process: Efficient delivery processes are critical for maintaining a
competitive advantage.
o Physical Evidence: While we operate in a digital ecosystem, physical
evidence (such as a store or office) still matters1.

3. Marketing Concepts:
o Needs, Wants, and Demand: These concepts form the foundation of
marketing. Needs are basic human requirements (like food, water, and
 shelter). Wants represent specific desires for products or services Demand
refers to the amount of a product or service people are willing to buy at a
given price.

4. AMA’s Definition of Marketing: The American Marketing Association (AMA) defines

marketing as “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” .

Remember, successful marketing involves understanding your audience, adapting to their

preferences, and effectively communicating the value your product or service brings to the
table.

Let’s explore the nature of marketing, which encompasses various essential aspects:

1. Marketing is a part of the total Environment:

o The business environment defines both threats and opportunities. A
marketing system is directly related to the distribution and production of
goods, ideas, services, places, and individuals to satisfy human needs.
o It’s essential to consider the broader environment in which any marketing
organization operates.

2. Marketing is Consumer-oriented:
 o Marketing activities must be focused on the customer. The main objective is
to gratify customer needs and desires.
o By satisfying existing needs and creating new wants for improved products,
marketing shapes consumption patterns and enhances individuals’ standard
of living.

3. Marketing is a Specialized Business Function:

o Unlike the past, where selling didn’t require specialized skills, modern
marketing demands expertise.
o Business firms must absorb new approaches, ideas, and marketing
demands to stay competitive.

4. Marketing as a Discipline:
o Marketing is an essential part of business, drawing from economics and
related fields such as psychology, law, sociology, anthropology, and
statistics.
o These related areas significantly impact consumer behavior, research on
consumer needs, advertising media, legal aspects, pricing methods, and
more.

5. Marketing is a System:
o It operates as an interconnected system, involving various functions and
processes.
o From market research to product development, distribution, and promotion,
marketing functions holistically.

6. Marketing is a Social Function:

o It plays a crucial role in society by connecting producers and consumers.
o Marketing facilitates the exchange of goods and services, contributing to
economic growth.

7. Marketing Starts and Ends with the Consumer:

o Understanding consumer preferences, needs, and behavior is fundamental.
 o Successful marketing begins by addressing consumer requirements and
ends with their satisfaction.

8. Marketing Creates Mutual Relationships:

o Building strong relationships with customers, suppliers, and other
stakeholders is vital.
o Effective marketing fosters trust and loyalty, benefiting both parties.

Remember, marketing is dynamic, evolving, and central to business success. It combines

art, science, and strategy to connect products with people in meaningful ways.

Let’s explore the scope and importance of marketing:

1. Scope of Marketing:
o Marketing is the lifeblood of a business, connecting it with its customers and
driving growth.
o Its scope extends far beyond sales and advertising, encompassing a wide
range of functions that shape a company’s strategy, products, brand, and
customer relationships.
o Here are some key aspects of marketing’s scope:
▪ Market Research: Understanding customer needs, preferences, and
market trends.
▪ Product Development: Creating and enhancing products that meet
consumer demands.
 ▪ Pricing Strategies: Determining optimal pricing based on market
conditions.
▪ Distribution Channels: Deciding how products reach consumers.
▪ Promotion and Advertising: Communicating value propositions
effectively.
▪ Branding and Positioning: Building a strong brand identity.
▪ Customer Relationship Management (CRM): Nurturing long-term
customer loyalty.
▪ Digital Marketing: Leveraging online platforms for outreach.
▪ Global Marketing: Expanding into international markets.
▪ Social Responsibility: Addressing ethical and societal concerns.

2. Importance of Marketing:
o Marketing plays a pivotal role in business success:
▪ Understanding Customer Needs: Through market research,
businesses grasp actual customer needs, wants, and desires.
▪ Holistic Approach: Marketing integrates various departments
(product development, distribution, sales, and advertising) to align
with customer expectations.
▪ Strategic Planning: Marketing guides research and analysis, helping
organizations design winning strategies.
▪ Competitive Edge: Effective marketing gives companies an
advantage over competitors.
▪ Economic Development: Marketing drives economic growth by
stimulating demand and creating jobs.
▪ Customer Satisfaction: Satisfied customers lead to repeat business
and positive word-of-mouth.
▪ Innovation: Marketing encourages innovation and adaptation to
changing markets.

3. Role of Marketing in Economic Development:

o Marketing fuels economic progress by promoting trade, investment, and
consumption.
o It facilitates the flow of goods and services, contributing to overall prosperity.
o Marketing and Other Business Functions:
 ▪ Marketing collaborates with other functions like finance, operations,
and human resources.
▪ It ensures alignment across the organization to achieve common
goals.

In summary, marketing touches us every day in every sphere of our lives. It’s not just about
selling; it’s about understanding, connecting, and creating value for both businesses and
consumers.

Let’s delve into the fundamental distinctions between selling and marketing:

1. Selling:
o Focus: Product-centric.
o Scope: Short-term tactic.
o Communication: One-to-one.
o Objective: Immediate transaction.
o Process: A salesperson sells existing products.
o Assumption: Customer needs are taken for granted.
o Goal: Selling goods for profit.

2. Marketing:
o Focus: Customer-centric.
o Scope: Long-term strategy.
o Communication: One-to-many.
o Objective: Creating interest and demand.
 o Process: Comprehensive—includes planning, pricing, promotion, and
distribution.
o Assumption: Consumer needs drive all actions.
o Goal: Delivering exceptional value to the target market.

In summary, selling is about converting goods into money, while marketing revolves around
serving and satisfying customer needs. Marketing encompasses a broader spectrum of
activities, including understanding consumer requirements, meeting those needs, and
ensuring long-term business success. Remember, marketing creates market demand,
whereas selling responds to existing demand.

Balancing these two functions effectively is crucial for businesses to attract and retain
customers.