FMM-II

MODULE-3
MARKETING/ MARKETING MIX/4 P’S
MARKETING MANAGEMENT ORIENTATION
MARKETING
• Marketing is a management process. Marketing creates the value for
customers. For this reason, the marketers need to find, anticipate and
satisfy the customer requirements at profit. Marketing is the name of
large task like create ideas, brand, how to communicate with
customers, how to design, research of consumer behavior etc all
count as part of marketing.
 Needs, Wants and Demands

Marketing
Offerings(Product and
services)

CORE CONCEPTS OF
Value and Satisfaction
MARKETING

Exchanges and Relationships

Market
1. Needs, Wants and Demands
• Most basic or core concept of fundamental marketing is that of human needs, wants and demands. These are explaining
below.

A. Needs
• Identifying of unfulfilled needs is the pre-condition of making successful of marketing activities. Marketers try to satisfy
the needs of customers. Human needs are the one kind of deprivation of one thing of basic satisfaction. A need is a
thinking of mind that reflects the lackness of something. Actually, needs are felt of deprivation. Marketers normally did
not create these needs but they find these needs. So, needs are the deprivation and satisfaction. For example, needs are
food, clothing, warmth, safety, shelter etc.
B. Wants
• Wants are the options of satisfying needs that shaped by culture and individual personality. Human beings must require
food but what type of food they will take that is depended on cultural and social of individually. One person may like a
burger but another person might like rich food. Maximum satisfaction of customers need depends on the quality of a
product. Our assets are limited but our wants are many, for the reason marketers try to fulfill on creating satisfying of
unlimited wants by limited assets.
C. Demands
• When needs arise, wants became for specific products that are backed by the ability and willingness of consumers to
buy the products that is call demands. In demand, there is a vital relation with time. Not all wants are transfer into
demand. The wants become demand when the wants are supported by ability and willingness to buy. Need is a one kind
of wish, want is a selected process of need and the selected thing when it fulfill the ability and willingness then it
become the demand. Thus, a rich man has demand for a Mercedes Car. In addition, rich man will buy it next month. It is
a demand for rich man. But it is need for middle class person and want for poor man. All are actually classified by
Money, ability, and willingness.
 2. Marketing Offerings
• Marketing Offering is that making ensuring of consumers satisfaction. Marketing offer is one kind of offer that
marketer makes as per requirements of a consumer. The marker try to offer standard product that satisfy the need
of a consumer in terms of quality, quantity, price etc. Marketing offering can be ‘tangible’ or intangible’. The
marketing offering is explaining below.
A. Products
• Product is a thing that give the satisfaction of customers. It is provided the satisfaction of physical and psychological
both. Actual, product features are color, branding, packaging, labeling etc. There are two kinds of product is
available that are tangible and intangible. Marketing consider product benefits and services. Therefore, product is
very important for marketing offering because marketing offering is fully dependent on product.
B. Services
• All kinds of things that are offered to a market to satisfy human needs or human wants or consumers that is called
Services. Service is a work or benefit that is given to one party to other party. Service is intangible. For example
service of doctor, lawyer, mason, tailor, hotel service, training service, security service, entertainment service,
beauty parlor service etc.
C. Experiences
• Experience is acquired real knowledge about any thing. Experience is to do, to see, to feel something by acquired
knowledge or skilled. The company wants his experience to do better in future. By using experience company
ordered to manager to make marketing process. Experience in marketing has an experimental value. Normally in
business, experience is very important. Some kind of business organization does not want to appoint their
employee without having experience of this job. A company provides more facility or increase salary or gives
promotion of manager or other employee only for experience.
 3. Value and Satisfaction
• Value and satisfaction is very important on marketing core concept. They are explained below in
details.
A. Value
• Value is the capacity of a product or service. Normally value is determined by the level of satisfaction
of customers. If satisfaction level is low, it means the value of the product is low and consumer will
leave this product. Customers always think about value of a product when they go to buy this product.
It is ever-present in their minds about value of a product. Actual, value is the difference between
consume of a product and the cost of buy this product. Customers spend money, give time, power and
mental labor for buying a product. For this reason, the consumer wants the best value of a product.
B. Satisfaction
• Satisfaction is like a desire of mind that can not be measured or it can not be quantified. Actual, the
purpose of marketing is the satisfaction of customers by creating value of a product and make a long-
term relationship to customers. The satisfaction of customer is also depended on quality of the
product or the quality of the service provided. You have to be careful as a marker in setting your
costumers satisfaction level too low. Then your customers will go to your competitors. On the other
hand, if you set your satisfaction level too high that you can not achieve then also your customers will
go to your competitors. So, you have to determined the level of satisfaction as middle or normal so
that the customers come back and buy your product again.
4. Exchanges and Relationships

• Exchange and relationship is always very important in core concept of marketing. Exchanges
and relationships are explained in below in details.
A. Exchanges
• Exchange is very basic concept of marketing. In fact, another name of marketing is exchange.
Producers and manufactures are trying to make available all sorts of goods that are needed by
the society. Exchange is one kind of activity that creates value and this value is provided to
other party. In exchange money is always needed. Without money the exchange process is not
possible. Every company products are exchange for money. Marketers provide product, service
and idea to the customers in exchange of money.
B. Relationship Marketing
• Customer is the king in the business. If you want to grow up your business, you have to create a
good relationship to customer. You have to keep always busy to make happy of customers by
satisfying his or her needs in terms of quality, price, time, quantity, regularly in supplying. In
relationship, the quality of product is very important. If the customer understands the quality,
value or facilities of your product he will build the goodwill for your company by telling his
friends and relatives because of which this way customers increase.
5. Market

• Marketing follows market. Market is a set of present and future buyer.

Market is a place where buyers and sellers are come in touch with
detailed information about what sellers are offer and what buyers are
ready to buy. Some people do not say that in market a place should
stay. But a market is where different types of transactions happen
that is also call market. In market, the goods flow from the sellers to
the buyers and money flow from buyer to reach sellers to complete
the exchange.
MODERN MARKETING
• The period the human society is going through is now reflected in various
specialized works by names that express its traits (characteristics) in
comparison with previous periods: the new economy, the knowledge
economy, etc.. In the new economy, each science redefines its object, method,
and scientific tool. Marketing is no exception to this trend, its contents being
continuously redefined and reflected in the framework of some concepts that
reported in previous stages of marketing development are grouped in a new
concept, called modern marketing. Modern marketing traces its origin to the
primitive forms of trade. As people began to adopt the techniques of work
specialization, a need for individuals and organizations to facilitate the process
of exchange emerged. Until about 1900, however, marketing was little more
than physical distribution. We can trace the development of modern marketing
through three stages the production era, the Product era and the era of the
sales.
MARKETING MIX

Marketing mix is the set of marketing tools that the firm uses to pursue
its marketing objectives in the target market. Dividing the multitude of
marketing variables or mix into four distinct categories makes it much
easier to formulate a marketing strategy. The four categories are (1)
product, (2) place, (3) price, and (4) promotion, and are commonly
called the “4ps.”
Product
• When creating a marketing strategy, product development and its
related aspects such as packaging, warranty, and branding must be
considered. Analyzing and understanding client needs is important to
remember along with the specific demographics the product aims to
address. Many managers are myopic when thinking about product
development, focusing on procedures instead of the client’s
perception of the product. This myopia goes hand in hand with the
other aspects of product development; branding, features, quality,
and warranty. . Managers tend to see the tactical aspects of the
product, and a clear, client-driven product strategy guides managers
beyond this narrow tactical view.
Place
• Place includes marketing issues such as, channel type, exposure,
transportation, distribution, and location. A product needs to be
available to the client when and where the client wants it. Marketers
describe this process as the “channel.” The channel describes “any
series of firms (or individuals) that participate in the flow of products
from producer to final user or consumer”.
Price
• Marketing plans must include price considerations. The pricing mix
includes competition, cost, markups, discounts, and geography. Even
if all the other aspects of the marketing mix are perfect, with the
wrong price clients will not buy the product. The marketing plan must
include consideration on how flexible prices are, lifecycle pricing, who
gets discounts, and who pays transportation. Marketing managers
must also make sure to base price on customer value rather than
simply on cost. One way to ensure maximum price is by changing the
customer perception of value. Jay Abraham suggests making the
service, assistance or expertise the value, not the product itself.
Promotion
• Promotion is what most people think about when creating a
marketing plan. Promotion is only one fourth of the entire mix and
not necessarily more important than any other part. Sales and selling
are part of promotion and can be either personal or mass selling.
Personal selling is the traditional calling on clients or potential clients
and having a conversation about the problems the product solves.
Personal selling can also involve group presentations, and is not
necessarily one-on-one. Mass sales are comprised mostly of
advertising and publicity. Generally publicity and advertising
accomplish the same goal,
The extended 7 Ps:

• People – All companies are reliant on the people who run them from front line Sales
staff to the Managing Director. Having the right people is essential because they are as
much a part of your business offering as the products/services you are offering.
• Processes –The delivery of your service is usually done with the customer present so
how the service is delivered is once again part of what the consumer is paying for.
• Physical Evidence – Physical evidence refers to what the customer ‘sees’ of your
product. It shows them what it would be like to own or use it. It therefore includes
your website, or your business premises or shop, models wearing your clothes, or
photos of them doing so. It also includes customer testimonials, especially if they are
on an independent reviewing site, and not under your control. Like price, the physical
evidence sends an important signal to your customer about your product, so it is
important that, for example, your website sends the right impression of your product
or service.
MARKETING MANAGEMENT
• The marketing concept is the strategy that firms implement to satisfy
customers’ needs, increase sales, maximize profit, and beat the
competition. There are 5 marketing concepts that organizations adopt
and execute. These are;
• (1) production concept,
• (2) product concept,
• (3) selling concept,
• (4) marketing concept
• (5) Societal Marketing Concept
Production Concept

• This is the oldest concept of marketing under this concept the

company focus on production whatever they produce that is sold in
the market. In this concept, they don’t focus on what customers need.
large production means the product so cheap and affordable that it
will be sold in the market.
• The main disadvantage of this concept is that the customer not
always purchase the easy and cheap available product
Product Concept

• Production concept focuses on the better quality of the product. As

they think the better product means the customer buys the product
easily. But the companies do not care about the customer need and
want. They produce the product as the best of there knowledge.
• The company thinks that the good quality of the product will be sold
easily but in reality, the only quality of the product does not matter
that much the price is also matter
Selling Concept

• In selling concept the marketers think that the production and quality
of the product do not lead to the sale so they start attracting the
customer towards them. The product needs to be sold by the
salesman.
• But the sales of the product does not mean the long term growth as
the product is sold force-fully and the uses of that product are not
good that lead the decrease in the reputation of the company in the
market.
Marketing Concept

• In the marketing concept, companies start to focus on the customer

need and what customer wants and how to satisfy their need. The
company stops selling those products what they produce they change
the production according to the customer need and wants.
• This is the first concept for the long term growth of the company. The
company focus on the long term profit and survival in the market but
the drawback of this concept there is no attention is paid to social
welfare
Societal Marketing Concept

• In this concept, the company focus on the satisfaction of the

customer but also the society will accept it or not. Focus on future
generations’ use of resources on the ground they start the use of
solar power form the thermal power because of renewable energy.
• i.e, the company produce gas stove the uses less LPG which will help
in customer satisfaction and social welfare because it makes less
pollution nowadays the Societal Marketing Concept is used by the
marketers and some firm use the marketing concept. But the
government force the company uses the Societal Marketing Concept
by making rules for CSR (corporate social responsibility)