Unit 1: Introduction to Marketing

Introduction, Definitions of market and

marketing, Selling Vs marketing, The
Exchange Process, Elements of Marketing
Concept, Functions of Marketing, Old
Concept or Product oriented Concept,
New or Modern or Customer- oriented
Concept, Marketing Myopia, Marketing
Environment analysis, (Micro and
Macro), Marketing in the 21st century
opportunities, challenges & Ethics.
Assignment 1
 Define market.
 Define Marketing.
 Explain Selling v/s Marketing with the help of relevant example.
 By taking Nandini Milk as example, explain the exchange process in marketing.
 Assume that you are a car manufacturer, explain the elements of marketing
concept.
 By considering Shoppers Stop as example discuss functions of marketing.
 Differentiate between Old and New concept of marketing by using relevant
examples.
 Mention the company name, explain the failure story of a company due to
marketing myopia.
 Being marketing consultant, to launch electric vehicles in India, analyze the
marketing environment.
 Assume that you are management consultant to super market selling groceries,
discuss the opportunities and challenges to cater to the ever changing needs of
consumers.
 Define viral marketing.
 Define guerilla marketing.
Definitions of market and marketing
 A market is a place where buyers and sellers meet to
buy or sell products.
 Fish market, vegetable market, grain market, online market.
 Sellers or marketers are treated as the industry and
buyers are the market.
Types of Markets
 Consumer markets.
 Business markets.
 Institutional markets (non-profit).
 Government markets.
 Global markets.
 Meta markets.
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.” (Philip Kotler)
 “Marketing is the performance of business
activities that directs the flow of goods and
services from producer to customer or user.”
(American Mgt Association)
Core Marketing Concepts
Maslow’s Hierarchy of Needs
Selling v/s Marketing
The Exchange Process:
Marketing Offers
Tangibles Non-tangibles Others

Non-durables Services Persons, Ideas

Durables Activities Places, Events

Organisations
Information
Experiences
The Marketing Mix Variables, 4 P’s of
Marketing
Elements of a Modern Marketing
System
Functions of Marketing
Marketing Orientations or Concepts
1. The Production Concept.
( Production efficiency, wide distribution,
availability, low cost, standard product, rising
output levels)
2. Old Concept or The Product oriented
Concept ( Focus on product improvement).
3. The Selling Concept ( Sales Volume).
4. The Marketing Concept ( Customer
satisfaction).
5. The New or Modern or Customer Oriented
Concept.
6. The Societal Marketing Concept.
Product v/s Production concept
The New or Modern or Customer
Oriented Concept
Societal Marketing Concept
Marketing Myopia
(Defective vision of distant objects)
 Coined by Theodore Levitt
 Refers to Short Sightedness
 The Marketer want to sell the products
and services, without much focusing on
the customer demands / needs.
PESTLE Analysis
Examples of Opportunities Posed by
Marketing Environment in India
1. The New Economic Policies of the Government of India in
general.
2. The New Industrial Policy.
3. Liberalisation of industrial licensing.
4. Foreign Exchange Regulation Act (FERA) and Monopolies
and Restrictive Trade Practices Act (MRTP) liberalization.
5. Curtailment of and disinvestments in public sector.
6. The New Trade Policy – lowering of import tariffs, abolition
of import licenses, convertibility of rupee, globalisation, etc.
7. Fiscal and monetary reforms, banking sector reforms,
capital market reforms.
8. Removal or phasing out of subsidies.
9. Encouragement to foreign direct investment (FDI).
10.Dismantling of price controls and introduction of market-
driven price environment.
Examples of Threats Posed By
Marketing Environment In India
1. Entry of Multi-National Companies (MNCs) into the Indian
market on a large scale increases the competition for products and
services.
2. ‘Survival of the fittest’ rule forces many weaker and small-scale
companies to close down due to non-viability.
3. Big players start buying smaller players through mergers and
acquisitions.
4. Removal of subsidy affects profitability and viability of many
industries. (Fertiliser industry is one such affected sector where
units had to close down or stop products of certain products).
5. Banks and insurance sector came under competitive
environment and were compelled to operate viably, at par with
the private sector.
6. In general, many industrial units across India faced a
destabilization consequent to the economic reforms. Their
markets, market shares and profits came under severe pressure and
viability became a big question.
Marketing in 21st century
Google AdWords
 Google AdWords is Google's online
advertising program, the program allows
you to create online ads to reach
audiences that are interested in the
products and services you offer.
The AdWords platform runs on pay-per-
click (PPC) advertising, i.e. you have to
pay every time a visitor clicks your ad.
Search engine optimization
Search engine optimization (SEO)
is the process of increasing the
quality and quantity of website
traffic by increasing the visibility
of a website or a web page to users of
a web search engine.
SEO
Viral marketing
 Viral marketing or viral advertising is a
business strategy that uses existing social
networks to promote a product.
 Its name refers to how consumers
spread information about a product
with other people in their social
networks, much in the same way that a
virus spreads from one person to another.
Viral Marketing
Ethics
ETHICS IN MARKETING
 Ethics are a collection of principles of
right conduct that shape the decisions people
or organizations make.

 Practicing ethics in marketing means

deliberately applying standards of fairness, or
moral rights and wrongs, to marketing decision
making, behavior, and practice in the
organization.
Links in Marketing
Forum
Forum marketing can be an effective way to make your
online business stand out from the crowd.
Forum users are generally tech savvy and open to making
online purchases.
Many forum users are also respected experts and bloggers
on the specific topics covered by the forum
Forum marketing
Using Forums…..
Affiliate marketing
 Is the process of earning a commission by
promoting other people's (or company's)
products.
 You find a product you like, promote it to
others and earn a piece of the profit for
each sale that you make.
Blogs
Blogs
 A Blog is a regularly updated website or
web page, and can either be used for
personal use or to fulfill a business need.
 Formerly Known as weblog.
 Regular updating is required to engage
customers.
Guerrilla marketing
Is an advertisement strategy in which a
company uses surprise and/or
unconventional interactions in order to
promote a product or service. It is a
type of publicity.
Guerilla Marketing
Guerilla Marketing
Guerilla Marketing
Unit 2 :
Buyer Behavior Analysis
Meaning and Characteristics, Importance,
Factors Influencing Consumer Behaviour,
Consumer Purchase Decision Process,
Buying Roles, Buying Motives.
The black box model of Consumer
behaviour.
B2B marketing Vs Consumer Marketing.
Buyer Behavior Meaning
Consumer behaviour or buyer
behaviour is defined as the behaviour
that consumers display in searching
for, purchasing, using, evaluating
and disposing of products and
services that they expect will satisfy
their needs
 Factors Influencing Consumer
Behaviour
1. Cultural 2. Social 3. Personal 4. Psychological
Culture, Reference Age and life Motivation,
groups, cycle stage, Learning beliefs,
Subculture, Family, Occupation, Perception
Social class, Roles and Economic situation,
status. Lifestyle, and attitudes.
Personality and
self-concept.
Culture
Reference group
Life cycle
Life style
Life style
Life style
Personality
Personality types
Self esteem scale
Beliefs
Perception
Attitude
Consumer Purchase Decision Process
Characteristics of Business Markets
1. Fewer buyers
2. Larger buyers
3. Geographically concentrated buyers
4. Derived demand
5. Inelastic demand
6. Fluctuating demand
7. Professional purchasing
Organizational Buying Process
Organizational Buying Process………
Buying Roles
Buying Motives
The black box model of Consumer behaviour
B2B marketing Vs Consumer Marketing