Introduction to Marketing

Mahesh
 What is Marketing
• 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.-American Marketing Association

• Marketing is “the science and art of exploring, creating, and

delivering value to satisfy the needs of a target market at a
profit.- Philip Kotler
 Why Marketing
• The heart of your business success lies in its marketing. Most
aspects of your business depend on successful marketing.
The overall marketing umbrella covers advertising, public
relations, promotions and sales. Marketing is a process by
which a product or service is introduced and promoted to
potential customers.
• Nokia case, Mc Donald
Evolution of Marketing
 Needs, Want & Demand
Need:
•  “needs” is the basic human requirements like shelter, clothe,
food, water, etc.
• These are essential for human beings to survive.
• If we take the topic further, other needs are education,
healthcare, insurance, pension, etc.
• Needs can be a social thing.
Cont…
Want:
• A want is a product desired by a customer that is not required
for us to survive. So, want is the complete opposite of need,
which is essential for survival.
• For instance, iPhone, CD player, dryer, eating out, Coca-Cola,
big screen TV, satellite, Starbucks Coffee.
• Wants are shaped by one’s society and surroundings. 
Cont…
Demand:
• If a customer is willing and able to buy a need or a want, it
means that they have a demand for that need or a want.

• If we, financially, are strong enough and can allow ourselves

to, it means that we’ve transformed our want/need into a
demand.

• if a customer is willing and able to buy a need or a want, it

means that they have a demand for that need or a want.
 Marketing Mix
• The marketing mix is a set of marketing tools the firm uses to
pursue its marketing objectives in the target market.-Neil H.Borden

• Marketing objectives include the group of goals set by a business

when promoting its products or services to potential consumers
that should be achieved within a given time frame.
• A target market is a group of customers within the serviceable
available market that a business has decided to aim
its marketing efforts towards.
• marketing effort is the total amount of resources which a firm puts
into the MARKETING MIX in order to stimulate demand for its
goods and services 
4P’s of Marketing by E. Jerome McCarthy
 4’P of Marketing
Product
• A Product is anything that can be offered to a customer to satisfy
his/her need or want.
• Brand:
 word, name, symbol, etc., especially one legally registered as atr
ademark, used by a manufacturer or merchant to identify itsprod
ucts distinctively from others of the same type and usually
prominently displayed on its goods, in advertising, etc.
• Variety: A merchandising strategy in which a manufacturer
produces different products in the same category.
• Quality:  refers to the perception of the degree to which the
product or service meets the customer's expectations.
Cont…
• Feature: is a distinctive characteristic of a good or service that sets it
apart from similar items.
• Packaging: The wrapping material around a consumer item that
serves to contain, identify, describe, protect, display, promote and
otherwise make the product marketable and keep it clean .
• Size: refers to quantity offered.
• Services: A valuable action, deed, or effort performed to satisfy a
need or to fulfill a demand.
• Warranties: A warranty describes the conditions under, and period
during, which the producer or vendor will repair, replace, or other
compensate for, the defective item without cost to the buyer or user.
• Returns: Sold merchandise returned by customers for refund
Price:
• Price is the money you pay for any product or service.
• MRP: A maximum retail price (MRP) is a manufacturer
calculated price that is the highest price that can be charged for
a product sold.
• Discounts: is reduced prices or something being sold at a price
lower than that item is normally sold for.
• Allowances: Companies typically reward customers for desirable
behaviour.
• Payment Period: Allowance given to the customer for later
payment.
• Credit Term: Terms of credit for customer.
Place:
• Place is marketing channel/trade channel/distribution channel that the
firm uses to reach to the final customer.
• Distribution Channel: chain of intermediaries that a company employs
and through which a good or service passes until it reaches the end
consumer.
• Coverage: Is the intensity of distribution.
• Assortments: The range of product availability.
• Inventory: Stock holding to service the customer.
• Transportation: is the movement of goods from one location to another.
• Location: Accessible points for the customer to own the
product/service.
Promotion:
• Promotion includes set of tools used by a firm to create awareness among
the target market about the offerings of the firm.
• Sales promotion: Consumer sales promotion is a marketing technique that is
used to entice customers to purchase a product.
• Advertising: Advertising is an audio or visual form of marketing
communication that employs an openly sponsored, non-personal message
to promote or sell a product, service or idea.
• Sales Force: is where businesses use people (the "sales force") to sell the
product after meeting face-to-face with the customer.
• Direct Marketing: a method of contacting customers and potential
customers personally, rather than having an indirect medium between the
company and the consumer.
• Public Relations: Public relations is the practice of managing the spread of
information between an individual or an organization and the public.