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Basics of Markweting

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Evolution of Marketing
• In marketing concept the firms analyze the needs of their customers
and then make decisions to satisfy those needs, better than the
competition.

• The alternative concepts are not restricted to historical periods only.

They are still practiced by some companies.

• Alternative approach

1) The Production Concept.

2) The Product Concept.

3) The Selling Concept.

4) The Marketing Concept.

5) The Societal Marketing Concept.

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• Production Concept

• assumes that consumers are mostly interested in product availability at

low prices

• its implicit marketing objectives are cheap, efficient product and intensive
distribution.

• It makes sense when consumer are more interested in buying what is

available rather than wait for what they really want.

• Idea here is that a firm should focus on products that gives production
more importance and create supply of low-cost products. Such products
itself create demand.

• produced was sold easily by a sales team at decided cost of production

• The term production concept was coined by ‘Henry Ford’ (1920s)

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• Product Concept

• Consumers will buy the product that offers them highest quality, best
performance, and most features

• Example : Google & Apple striving for the best Product

• This often leads to “marketing myopia” that is focusing on the product

rather than the customer needs

• Sales Concept

• consumers are unlikely to buy the product unless they are aggressively
persuaded to do so – mostly through “hard sell” approach.

• Today marketers use it for unsought products – that people are unwilling
to buy (such as life insurance)

• The problem in this concept is that it fails to satisfy a customer.

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• It paid little attention to ‘need’ of customer satisfaction

• Goal simply was to beat the competition in sales

• Marketing Concept

• With increased income, customers could afford to be selective and buy

only those products that precisely met their changing needs

• Consumer need and wants became the firm’s primary focus

• places the consumer at the center of the organization

• All department works towards customer needs & wants

• The marketing concept emphasizes the “pull” strategy". This means that 

a brand is so strong that customers would always prefer your brand to
others’

• Market research , consumer research , branding & promotion are the tools
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• Societal Marketing Concept

• Develop such product that benefits the society

• Organization should deliver the product , services in a more better way to

the competitor in a such a way that it improves customers & society well
being

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Marketing Mix 7P & 4C

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• The marketing mix definition is simple. It is about putting the right
product or a combination thereof in the place, at the right time, and
at the right price

• Product

• A product is an item that is built or produced to satisfy the needs of a

certain group of people. Product Tangible or Intangible

• during the product development phase, the marketer must do an

extensive research on the life cycle of the product that they are creating

• marketers must ask themselves the question “what can I do to offer a

better product to this group of people than my competitors”

• Product features & specifications should be inline with customer needs &
wants. As well as additional to create the interest.

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• Price

• The price of the product is basically the amount that a customer pays for
to enjoy it

• It is also a very important component of a marketing plan as it

determines your firm’s profit and survival.

• Pricing always help shape the perception of your product in consumers

eyes.

• Always remember that a low price usually means an inferior good in the
consumers eyes

• prices too high will make the costs outweigh the benefits in customers
eyes

• examine competitors pricing and price accordingly

• There are three major pricing strategies, and these are:

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• Market penetration pricing ,Market skimming pricing , Neutral pricing
• Place

• Placement or distribution is a very important part

• You have to position and distribute the product in a place that is

accessible to potential buyers.

• This comes with a deep understanding of your target market. Understand

them inside out and you will discover the most efficient positioning and
distribution channels that directly speak with your market.

• Promotion

• it can boost brand recognition and sales

• Promotion is comprised of various elements like:

• Sales Organization

• Public Relations

• Advertising
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• Sales Promotion
• Advertising typically covers communication methods/ tools / vehicles
like TV ads, radio commercials, print media, and internet
advertisements.

• Public relations includes non paid press releases, exhibitions,

sponsorship deals, seminars, conferences, and events

• Word of mouth is also a type of product promotion by satisfied

customers to other.

• People

• Of both target market (Customer) and people directly related to the

business (Stakeholders).

• the company’s employees are important in marketing because they are

the ones who deliver the service.

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• Process

• The systems and processes of the organization affect the execution of the
service.

• a well-tailored process in place to minimize costs.

• It could be process of all departments in the organization.

• Tweaking and enhancements can come later to “tighten up” a business to

minimize costs and maximize profits.

• Physical Evidence

• In the service industries, there should be physical evidence that the

service was delivered

• It is the physical evidence of a business’ presence and establishment. A

concept of this is branding. For example, when you think of ‘fast food’,
you think of McDonalds.
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• 4C

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• Cost – According to Lauterborn, price is not the only cost incurred
when purchasing a product. Cost of conscience or opportunity cost is
also part of the cost of product ownership.

• Consumer Value (Wants and Needs) – A company should only sell a

product that addresses consumer demand. So, marketers and
business researchers should carefully study the consumer wants and
needs.

• Communication – According to Lauterborn, “promotion” is

manipulative while communication is “cooperative”. Marketers
should aim to create an open dialogue with potential clients based on
their needs and wants.

• Convenience – The product should be readily available to the

consumers. Marketers should strategically place the products in 14
several visible distribution points.
Marketing Environment
•  The Marketing Environment includes the Internal factors
(employees, customers, shareholders, retailers & distributors, etc.)
and the External factors( political, legal, social, technological,
economic) that surround the business and influence its marketing
operations.

• Broadly classified as

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• Internal Environment 

• includes all the factors that are within the organization and affects the
overall business operations & relation with customers.

• These factors include labor, inventory, company policy, logistics, budget,

capital assets, etc.

• These factors can be controlled by the firm.

• Microenvironment

•  Includes all those factors that are closely associated with the operations
of the business and influences its functioning

• The microenvironment factors include customers, employees, suppliers,

retailers & distributors, shareholders, Competitors, Government and
General Public. (Stake Holders)

• These factors are controllable to some extent

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• Macro Environment

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• Therefore, marketing environment plays a crucial role in the
operations of a business and must be reviewed on a regular basis to
avoid any difficulty.

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Marketing Trends
• Below are the Major Current Trends

• More Emphasis on Quality, Value, and Customer Satisfaction

• Today’s customers place a greater weight to direct motivations

(convenience, status, style, features, services and qualities) to buy
product)

• Today’s marketers give more emphasis on the notion, “offer more for
less.”

• Ex- Xiomi , Samsung Budget Series Phone, Nokia

• More Emphasis on Relationship Building and Customer

Retention

• Today’s marketers are focusing on lifelong customers

•  Large companies create, maintain and update large customer database

containing demographic, life-style, past experience, buying habits, degree
of responsiveness to different stimuli, etc.,
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• design their offerings to create, please, or delight customers who remain
• More Emphasis on Managing Business Processes and
Integrated Business Functions

• shifting their thinking from managing a set of semi independent

departments, each with its own logic, to managing a set of fundamental
business processes, each of which impact customer service and
satisfaction

• Companies are assigning cross-disciplinary personnel to manage each

process.

• Marketing personnel are increasingly working on cross- disciplinary terms

rather than only in the marketing department.

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• More Emphasis on Global Thinking and Local Market Planning

• today’s customers are global, or cosmopolitan

• They exhibit international characteristics

• This is due to information technology, rapid means of transportation,

liberalization, and mobility of people across the world

• Companies are pursuing markets beyond their borders

• Companies redefining their perspective about customers in view of

globalization & localization.

•  Decisions are taken by local representatives, who are much aware of the
global economic, political, legal, and social realities

• “Act locally, but think globally.”

• Ex – Mc Donald's , Dominos , PepsiCo

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• More Emphasis on Strategic Alliances and Networks

• A company cannot satisfy customers without help of others

• Company needs to involve in partnering with other organisations, local as

well as global partners who supply different requirements for success

• top-level management spends an increasing amount of time for designing

strategic alliance and network that create competitive advantages for the
partnering firms

• Ex- Tata Coffe & Star Bucks , Vodafone & ICICI Bank for Payment Gateway

• More Emphasis on Direct and Online Marketing

• Information technology and communication revolution promise to change

the nature of buying and selling

• Companies follow direct channel in term hiring salesmen, setting own

distribution network, designing network marketing, applying online
marketing, and contracting with giant shopping/retailing malls 22
 • People anywhere in the world can access the Internet and companies’
home pages to scan offers and order goods. 

• As a result of advances in database technology, companies can do more

direct marketing and rely less on wholesale and retail intermediaries

• Greater buying & selling efficiency

• B2C , B2B, C2C , C2B

• Ex – Flipkart , Amazon , Pantaloons , Snapdeal , Famous Mithai Shops ,

OLX, Indiamart etc.

• More Emphasis on Services Marketing

• As per general survey, about 70% people are, either directly or indirectly,
involved in service marketing

• they pose additional challenges compared to tangible good marketing

• Marketers are increasingly developing strategies for service firms that sell
insurance, software, consulting services, banking, insurance, and other
services 23
One to One Marketing
• One-to-one marketing is a strategy that relies on getting to know the
individual choices made by a customer, and then tailoring marketing
outreach to each customer differently based on those choices.

• It’s an approach that is not used to get the customer’s attention, but
to keep their attention and their business.

• There are two basic types of 1:1 marketing:

• Personalization - the company learns the personal preferences and

tastes of each consumer and customizes its marketing plan to them.

• Ex-Amazon.com

• Customization - the company doesn’t learn the preferences of each

customer, but instead gives the individual customer the ability to
customize the product to their own tastes

• Ex- Customized laptop offering , News app allowing you to select the
preferences 24
Permission Marketing
• Permission marketing is an approach to selling goods and services in
which a prospect explicitly agrees in advance to receive marketing
information

• Opt-in e-mail, where Internet users sign up in advance for

information about certain product categories, is a good example of
permission marketing

• Advocates of permission marketing argue that it is effective because

the prospect is more receptive to a message that has been requested
in advance and

• more cost-efficient because the prospect is already identified and

targetted

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Experiential marketing
• True magic happens when brands put individual customers or groups
of consumers in an immersive branded experience.

• One of the most important aspects of this immersive marketing

approach is putting the consumer first 

• Marketers also understand the power of storytelling, and experiential

marketing lends itself to storytelling extremely well.

• We experience well-told stories rather than simply listening to them.

• PEPSI, in business of creating experiences for consumers through

events, placement of coolers etc

• Similarly Colgate is also adopting this strategy for the marketing

• Tata Tiago Tripling Series

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Core Concept of Marketing

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• Needs , Wants and Demands

• Needs : basic human requirement – Food ,Air , water , Clothing , Sheltar

• Wants : When need directed to specific objects that satisfy the need.

• Demand: Are wants for specific product backed by ability to pay

Ex: Mihir is looking for food. (Need)

for Paneer Tikka Burger. (Wants)

for MCDonalds Paneer Tikka Burger. (Demand)

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Product

• Product can also be referred as a bundle of satisfaction

• As per the definition, anything which can satisfy need and want can
be a product.

• A product is an item that is built or produced to satisfy the needs of a

certain group of people. Product Tangible or Intangible

• during the product development phase, the marketer must do an

extensive research on the life cycle of the product that they are
creating

• marketers must ask themselves the question “what can I do to offer

a better product to this group of people than my competitors”

• Product features & specifications should be inline with customer

needs & wants. As well as additional to create the interest.

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value, Cost, and Satisfaction
• Value means overall capacity of product to satisfy need and want

• Every product has varying degree of value

• Customer select product with degree of value which is going to

satisfy his needs.

• Cost means the price of product

• The charges a customer has to pay to avail certain services can be

said as cost.

• He will select such a product that can offer more value for certain
price

• Satisfaction closely concerns with fulfillment of all the

expectations of buyer

• Satisfaction is possible when buyer perceives that product has more

value compared to the cost paid for.
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• more utility/value with less cost results into more satisfaction.
Exchange, Transaction, and Transfer
• Exchange is in the center of marketing

• People can satisfy their needs and wants by self-production,

coercion/snatching, begging, or exchanging

• Exchange is an act of obtaining a desired product from someone by

offering something in return

• Obtaining sweet by paying money is the example an exchange

• It implies that people are negotiating and moving toward the

agreement. When an agreement is reached, it is transaction.

• Transaction is the decision arrived or commitment made.

• For example, Mr. X pays Rs. 25000 and obtains a computer

• There are various types of transactions, such as barter transactions,

monetary transactions, commercial transactions, employment
transactions, civic transactions, religious or charity transactions
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• Transfer involves obtaining something without any offer or offering
anything without any return

• For example, Mr. X gives gift to Mr. Y

• Transfer is a one-way process

• One transfers something with some unexpressed expectations

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Relationships and Network
• Marketing practice based on relation building can be said as
relationship marketing

• Relationship marketing is the practice of building long-term profitable

or satisfying relations with stakeholders to retain the long term
preference.

• Relationship marketing needs trust, commitment, cooperation, and

high degree of understanding.

• Relationship marketing results into economical, technical, social, and

cultural tie among the parties

• Network is the ultimate outcome of relationship marketing

• A marketing network consists of the company and its supporting

stakeholders 

•  A good network of relationships with key stakeholders results into

excelling the marketing performance over time.
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Market, Marketing, Marketer, and
Prospect
• A market consists of all potential customers sharing a particular
need or want and ready to pay for that.

• Marketing is social and managerial process by which individuals and

groups obtain what they need and want through creating and
exchanging product and value with others

• Marketer is one who seeks one or more prospects (buyers) to

engage in an exchange. Here, seller can be marketer as he wants
other to engage in an exchange. Normally, company or business unit
can be said as marketer.

• Prospect is someone to whom the marketer identifies as potentially

willing and able to engage in the exchange.

• Generally, consumer or customer who buys product from a company

for satisfying his needs or wants can be said as the prospect

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Differentiation & Integration in the
Organization
• When businesses give autonomy and power to each of their divisions and departments,
the result is differentiation, in which each section develops its own cultures and
methods.

• When a company brings its separate parts together under one leader or a single
mission, the business undergoes integration.

• Integration leads to a unified and cohesive company structure.

• Companies select between a differentiated and an integrated structure depending on

their industry, personnel and leadership

• Differentiation within a Company

• Differentiation occurs in large companies when different departments, sections or

branch offices create their own corporate culture within the parent company's
overall structure

• Companies also can be differentiated based on product lines

• Coca-Cola produces soft drinks under brand names such as Coke, Sprite and Diet
Coke, but the company also produces Minute Maid fruit juices and Powerade sports
drinks.

• Brand differentiation comes when a company produces a single type of product, but
wishes to market that product to different audiences
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• Integration of Different Areas of a Company

• Integration relates to how the different areas of the company coordinate

their operations

• Vertical integration brings together two aspects of an industry that

work at different points on the production line

• if a manufacturer develops or acquires a chain of retail outlets, the two

companies join in a vertical integration strategy, with each portion
working with the others to achieve overall company goals

• Apple controls nearly all aspects of its hardware manufacturing, software

development, marketing efforts and retail outlets.

• Horizontal integration is a strategy that involves a company merging

with or taking over another firm at the same stage of production

• Horizontal integration gives the acquiring company more resources and a

larger market share

•  Vodafone & IDEA is the latest example of it.

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• The challenge facing organisations, therefore, is how to achieve
integration in an increasingly differentiated environment.

• One response has been the delayering of management and the

creation of self-managing teams. For example, in a large organisation
catering may be done by a subcontractor who is responsible for
ensuring that a quality product is delivered

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Value in Marketing
• Value = Benefits-Efforts-Risks-Price 

• Value 

• A fair return or equivalent in goods, services or money for something

• Relative worth, utility or importance: precise significance

• Something intrinsically desirable

• Value can be

• Quality Integrity

• Product Mindset

• Benefit Stake Holders

• Easy Brand

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• Value is Bundle of Benefits

• Value is equal to the benift to the customer

• Value is Customer satisfaction

• Value Process

• Value Selection (By Visiting market , Observation ,Sales force opinion)

• Value Creation (By Identifying FAB)

• Value Proposition – (ATL – Out of Office Campaign , BTL – In office

Campaign

• Value Delivered – (Right place right price right time right qty)

• Value Enhancement & Reflection (Feedback , Refinement , Innovate &

Improve)

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Marketing & Sales
Marketing Sales
Definition Marketing is the systematic A sale a transaction between
planning, implementation and two parties where the buyer
control of business activities to receives goods (tangible or
bring together buyers and intangible), services and/or
sellers. assets in exchange for money.
Approach Broader range of activities to sell Make customer demand match
product/service, client the products the company
relationship etc.; determine currently offers.
future needs and has a strategy
in place to meet those needs for
the long term relationship.
Focus Overall picture to promote, Fulfill sales volume objectives
distribute, price
products/services; fulfill
customer's wants and needs
through products and/or services
the company can offer.

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Process Analysis of market,
distribution channels,
competitive products and
services; Pricing strategies;
Sales tracking and market
share analysis; Budget
Scope Market research; Advertising;
Sales; Public relations; Customer
service and satisfaction .
Horizon Longer term
Strategy Pull
Priority Marketing shows how to reach to
the Customers and build long
lasting relationship
Identity Marketing targets the
construction of a brand identity
so that it becomes easily
associated with need fulfillment.
Usually one to one
Once a product has been
created for a customer need,
persuade the customer to
purchase the product to fulfill
her needs
Short term
Push
Selling is the ultimate result of
marketing.
Sales is the strategy of meeting
needs in an opportunistic,
individual method, driven by
human interaction. There's no
premise of brand identity,
longevity or continuity. It's
simply the ability to meet a
need at the right time 41
Characteristic of Good Marketer
• Good Observer

• Good at Understanding & Identifying Value needs

• Good Problem Solver & Decision Maker

• Able to create successful Product or service based on the demand

• Understand the critical variable of market and accordingly form

strategy

• Good at communication skill

• He is adaptable to ever-changing situation

• Thirst of Knowledge

• Accountable

• Honesty 42