INTRODUCTION TO

MARKETING
Needs and Wants

• "The term 'needs' is defined as an individual's basic

requirement that must be fulfilled, in order to survive.
Wants are described as the goods and services, which an
individual like to have, as a part of his caprices.
• An individual needs are limited while his wants are unlimited.
• There are needs in everyone's life which we have to fulfill,
and there are unlimited wants which all of us like to fulfill.
• Modern Marketing focuses on consumers, their needs, wants,
and how to satisfy needs profitably.
Demands – when our desires, needs, and wants are backed
by our ability to pay, they become demands.
What is Marketing?

• According to American Marketing Association,"

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”.
• According to Philip Kotler," Marketing is human
activity directed at satisfying needs and wants
through exchange processes."
Nature of Marketing

1)Managerial function
Marketing is identifying and satisfying consumers needs and wants profitably. It
requires managerial skills to identify needs with the help of many techniques,
research and satisfy them effectively by proper planning and implementation.
Therefore Marketing is a managerial function.
2Human activity
Marketing is a need/ want satisfying function profitably, it requires organizing skills,
professional knowledge, resource optimization and leadership ability to efficiently
operating. And this requires competent, qualified, skilled human resource, therefore
marketing is a human activity.
3) Economic function
Effective Marketing leads to economic development in the country. Marketers
optimize the opportunities and provide needs satisfying products and services to
consumer for a price or fees. Economic development leads to growth in employment.
Thus, it is a economic function too.
4) Marketing is both Art & science
Marketing is a science, as it collects data about
consumers, analyzing them with many techniques,
forecasting, testing the results of analyzing, etc. 

Marketing is also an art, as leading workforce,

creativity, innovation, effective promotion ideas,
consumer relations are not related to science, but
related to manager's ability, his/ her art.
5) Consumer centric
Modern marketing is consumer centric in nature. All strategies and activities in
marketing are directed towards the consumer. Organizations are giving importance to
concepts such as customer satisfaction, relationship marketing, customer experience.
6) Market research
Successfully conducting Marketing activities require research about consumers, their
characteristics, needs, thinking. Nowadays, environment is changing so quickly, just
like in a snap.
7) Goal oriented
Marketing is a goal oriented process. Organizations try to satisfy consumer needs by
offering them products and services in exchange of a amount to earn profit. Every
organization wants to be successful in long term, and effective marketing helps to
achieve the goals.
 
8) Dynamic process
Marketing activities are affected by many
environmental factors such as consumer, supplier,
economy, political, technological, social etc. All
these factors keep change from time to time.
Marketers should evolve with these changes. So,
Marketing is a dynamic process.
Functions/ Scope of Marketing.

1) Market Research
Market research is a systematic collection, analyzing, interpreting
data about market components such as consumers, competitors,
price prevailing, opportunities, threats etc. 
2) Planning about product/service design
It consists of planning about how we are going to satisfy consumers.
Design of product will be decided in this plan. Its materials, size,
features etc. are vital factors while performing in the market
3) Organizing Resources

This function is about gathering all resources in a proper structure to

perform all activities. There are resources such as Financial resource,
Material resource, Human resource, Physical resource.
4) Packaging & labeling
Packaging and labeling is vital for the product to be
safe, more attractive, able to appeal, informative to
customers. 
5) Branding
A brand is a name, sign, logo, symbol, mark etc. to
differentiate the product from competitors and
other related ones in the market. An effective
branding strategy will lead to more customer
attraction, increased sales, enhanced image,
customer loyalty etc.
6) Pricing of product
Price is the exchange value which the marketer gets against his
offerings. Proper research should be done before taking pricing
decisions.

7) Promotion of product
Promotion consists of communication between company and
consumers regarding the products. The objective is to spread
awareness of product and to persuade the people to buy their
offering. Nowadays, online promotion is growing in a rapid speed.
8) Selling & distribution
After all the hard work, selling the product is most vital task,
isn't it? It gives the company earnings and profit for which
they are putting efforts.

9) After sales services & customer relations

This point is important for customer retention. Increasing
new customers is not a tougher task than retaining present
customers, it leads to customer loyalty, which indirectly
attract perspectives to actual customers.
Importance of Marketing.

1) Need/ Want satisfaction

Marketing is all about identifying consumer's needs
and wants either unfilled or new, and utilizing those
opportunities and satisfying them effectively and
profitably.
2) Economic growth
Marketing leads to economic growth as it creates
business opportunities which provides want
satisfying products or services through distribution
system. All these activities helps in continue flow of
money in the economy.
3) Generates employment
As we saw in above point, marketing leads to
economic growth, this continue growth creates
new business opportunities, which leads to growth
in employment  opportunities.
4) Enhance standard of living
We saw above marketing leads to economic growth
and generates employment, so, it improves the
standard of living of all those people who earn
from marketing activities.
5) Attain Goals
Every organization have some goals to achieve in long term.
Effective marketing strategy aids the management to earn
good amount of profit continuously, which leads to attaining
long term goals.
6) Development of new products
Marketing is a continuous activity, and to be successful in long
term, companies have to continuously modify their products,
bring new ideas & products.
7) Enhanced product quality
Modern marketing tries to get customer feedback about the
product, which helps companies to regularly monitor product
performance and it's quality. 
Marketing concepts.
1) Production concept
This concept thinks that, customers will consume
those products which are cheap and widely
available. Organization try to increase their scale
of production and try to reduce cost. It doesn't
consider customer's point of view, their needs,
satisfaction etc.
2) Product concept

In this concept, organizations stress on product

quality and performance. In this, it is assumed
that quality products will be easily sold to
customers.
This concept believes in improving products
quality, it doesn't consider consumers choice,
needs, customization etc.
3) Selling concept

• This concept also doesn't consider consumer's

needs, wants, customer loyalty etc. In this,
organization assume that any product will not be
sold until we push them to consumers. It
assumes company should use promotion
techniques like heavy advertising, personal
selling, push & pull strategy etc. 
4) Marketing concept
Marketing concept came in mid 1950s. It starts
considering consumers needs, wants, satisfaction.
This concept believes that marketer should
identify consumer needs and try to satisfy them.
That means it should start with consumers and end
with consumers. It believes in "we should sell what
can be sold, not what is made“
5) Societal concept

• It considers society as its target. It is society

oriented.
• This concept thinks that marketing activities
should be done for the society as a whole.
• It shifts the focus from consumers to society.
Define market

A market is a place where

buyers and sellers can meet to facilitate
the exchange or transaction of goods and
services.
• Markets can be physical like a retail
outlet, or virtual like an e-retailer. The
two parties involved in a transaction
are called seller and buyer
1. Consumer market

Markets for products and services bought by

individuals for their own or family use.
Fast moving consumer goods (FMCG)
Newspapers, milk, vegetables, fruits etc
Consumer durables- Fridge, Washing machine,
TV etc
Soft goods- Clothes, shoes etc
Services – Hair dressing, dentists, childcare etc
2. Industrial/ Business market

Sale of goods between businesses.

Selling finished goods- office furniture,
computer system etc
Selling raw materials/components- steel, coal,
gas etc
Selling services to business- waste disposal,
security, accounting and legal services etc.
3. Global market

• The market in which goods and services of one

country are traded (purchased or sold) to
people of other countries.
• Global marketing allows you to sell more
products, attract more customers and enlarge
your market share in different countries
• Fast-moving consumer goods, clothing,
automobiles, and fast food companies are all
prime examples of global marketing
4. Government market

• Government is the biggest provider of services to

the people.
• Example, Army. Railways, post, roadways, Police
etc.
Non profit market

These organization supports a particular issue or a

charity and create awareness among the public
and try to obtain financial and non financial
support.
Goals /Objectives of marketing

Increase sales
Increase brand awareness
Conduct market research
Increase market share
Customer retention
Customer education
MARKETING VERSUS SELLING

MARKETING SELLING
• Focuses on • Focuses on seller’s
Customer’s needs. needs.
• Customer enjoys • Product enjoys
supreme importance. supreme importance.
• Converting customer’s • Converting product
needs into product into cash
 MARKETING
• Profits through customer
satisfaction.
• Emphasis is given on product
planning and development to
match products with the market.
• Integrated approach to
marketing is practiced.
• The principle of caveat venditor
(let the seller beware) is
followed
SELLING
• Profits through sales volume.
• Emphasis is placed on sale of
products already produced.
• Fragmented approach to
selling is practiced.
• The principle of caveat
emptor (let the buyer
beware) is followed.
 MARKETING
ENVIRONMENT
MEANING

A marketing environment encompasses all the

internal and external factors that drive and
influence an organization's marketing activities.

Marketing managers must stay aware of the

marketing environment to maintain success and
tackle any threats or opportunities that may affect
their work
Definition

• According to Philip Kotler, “ Marketing

environment refers to the external factors and
forces that affects the company’s ability to
develop and maintain successful relationships
with its target customers”.
 COMPONENTS/
FACTORS INFLUENCING
MARKETING ENVIRONMENT
INTERNAL ENVIRONMENT

• The marketing environment of a business consists of

an internal and an external environment.
• The internal environment is company-specific and
includes owners, workers, machines, materials etc.
• The internal environment of the business includes
all the forces and factors inside the organization
which affect its marketing operations. These
components can be grouped under the 5 Ms of the
business- Men, Materials, Machinery, Money and
Management.
Value system
Mission and objectives of the firm
Organizational structure
Financial capability
Human Resource Management
EXTERNAL ENVIRONMENT

The external environment constitutes factors and

forces which are external to the business and on
which the marketer has little or no control. The
external environment is of two types:

• Micro marketing environment

• Macro marketing environment
Micro Environment

• The micro-component of the external

environment is also known as the task
environment.
• It comprises external forces and factors that are
directly related to the business. These include
suppliers, market intermediaries, customers,
partners, competitors and the public.
• It refers to the company’s immediate
environment.
Suppliers include all the parties which provide
resources needed by the organisation.
Market intermediaries include parties involved
in distributing the product or service of the
organisation.
Partners are all the separate entities
like advertising agencies, market research
organisations, banking and insurance companies,
transportation companies, brokers, etc. which
conduct business with the organisation.
Customers comprise of the target group of the
organisation.
Competitors are the players in the same market
who targets similar customers as that of the
organisation.
Public is made up of any other group that has an
actual or potential interest or affects the
company’s ability to serve its customers.
Macro Environment

• The macro component of the marketing

environment is also known as the broad
environment.
• It constitutes the external factors and forces
which affect the industry as a whole but don’t
have a direct effect on the business.
• The macro-environment can be divided into 7
parts.
• Demographic Environment- The demographic
environment is made up of the people who constitute the
market. It is characterized as the factual investigation
and segregation of the population according to their size,
density, location, age, gender, race, and occupation.
• Economic Environment- The economic environment
constitutes factors that influence customers’ purchasing
power and spending patterns. These factors include the
GDP, GNP, interest rates, inflation, income distribution,
government funding and subsidies, and other major
economic variables.
• Natural Environment/ Physical environment-
The physical environment includes the natural environment in
which the business operates. This includes the climatic
conditions, environmental change, accessibility to water and
raw materials, natural disasters, pollution etc.
• Technological Environment-
The technological environment constitutes innovation,
research and development in technology, technological
alternatives, innovation inducements also technological
barriers to smooth operation. Technology is one of the biggest
sources of threats and opportunities for the organisation and it
is very dynamic.
• Political-Legal Environment
The political & Legal environment includes laws and
government’s policies prevailing in the country. It also
includes other pressure groups and agencies which
influence or limit the working of the industry and/or
the business in the society.
• Social-Cultural Environment
The social-cultural aspect of the macro-environment is
made up of the lifestyle, values, culture, prejudice and
beliefs of the people. This differs in different regions.
• Global environment-
It is the global environment that helps in
integration with the World economy through
unification calls for removal of all the trade
business among Countries.
DEMOGRAPHIC ENVIRONMENT
DEMOGRAPHIC ENVIRONMENT

Demographics is about the characteristics of the 

population in a specific area and includes multiple
factors like age, race, income, education, caste, religion
etc.
This refers to the size, density, distribution and growth
rate of population.
All these factors have a direct bearing on the demand
for various goods and services.
For example, a country where population rate is high
and children constitute a larger section of population,
there is more demand for baby products.
ECONOMIC ENVIRONMENT

• Economic environment consists of economic

factors that influence the business in a country.
• These factors includes corporate profits, inflation
rate, employment, balance of payments, interest
rates etc.
Components
Income and wealth
Employment
Productivity
Economic factors affecting
business

Economic conditions
Economic system- capitalist, socialist, mixed
Economic policies
Economic growth
Rate of interest
Currency exchange
Impact of economic environment
on business

Financial development and growth

Income and employment
Common Price level
Industry cycles
TECHNOLOGICAL ENVIRONMENT

• Technological environment refers to the external factors

in technology that impact business operations.
• Technological environment includes the level of
technology available in a Country.
• Technological factors include production techniques,
information and communication resources,
production, logistics, marketing, and e-commerce
technologies.
• These affect how an organization operates, sells its
products, interacts with, and gathers intelligence on
customers, suppliers, and competitors
Factors affecting technological
environment

• ICT
• Research and development
• Automation
• E-commerce
Automated car production is an
example of a technological factor
ICT

• ICT can make processes and communication

within a business quicker and more efficient.
• Firms also need to keep their software and
hardware up to date. If they don’t, they risk
being seen as old fashioned by customers and in
danger of becoming obsolete
Research and development

• Research and development refers to the steps

businesses take in the innovation of new products,
systems and services. In recent years research and
development has led to the introduction of:
• 3D printers
• smart phones
• tablets
• a multitude of apps
• Innovations can have a major impact on firms and
sometimes can destroy a traditional business
Automation

• Automation refers to the introduction of

machines to do work that was previously done by
people.
• For example the introduction of self-scan
checkouts in supermarkets means that fewer
employees are needed on the tills.
• With driverless cars and deliveries by drone on
the way, businesses will need to think about:
E-commerce

• More and more firms are online. 

E-commerce:
• widens the number of customers
• lowers the costs of production
• is highly competitive
POLITICAL ENVIRONMENT

• It comprises of political stability and the policies

of the government
• Ideological inclination of political parties,
personal interest on politicians, personal interest
on politician , influence of party forums etc
create political environment.
• Political environment means the set of activities
of the government which includes plan, policies,
programs and control which directly or indirectly
involve with the business.
Impact of political environment
on business

Political factors can impact a business by making the

market environment more or less friendly for that
business.
Tax and economic policies: Increasing or decreasing
rate of taxes is a good example of a political
component. Government regulations may raise the
tax rate for some businesses and can lower the same
for others due to specific reasons. This decision will
directly impact businesses. This is why maintaining a
strategy which can deal with such situations is very
important.
Political stability: Lack of political stability
within a country can significantly impact the
operations of a business. This can especially be
true for businesses that are operating on the
global scale
Foreign Trade Regulations: Every business has a
need to expand business operation to other
countries. However, political background of a
country can influence the desire for a business to
expand its operations
• Employment Laws: Employment laws are made
to protect the rights of employees and include
every aspect of employer/employee relationship.
Employment law is an aspect that is very
complex and involves several pitfalls as well. 
Legal Environment

• The government in every country regulates the

business according to its defined priorities.
• Legal system of a country is framed by the
government.
• The laws which are passed by the government for
business operation is called legal environment.
Importance of legal environment

• Laws on production or sale- selling of dangerous

drugs, guns and explosives are restricted.
• Consumer Protection- laws ensuring consumers
are treated fairly by business
• Employee protection- laws to protect employees
against race, color, religion, gender etc.
• Tax and financial laws- regulates accountancy
practices, interest rates on loans, taxes etc.
Socio –Cultural Environment

• Socio – Cultural environment is related to the social and

cultural practices, beliefs, traditions within a particular
society.
Meaning of social environment
Social environment of a business means all factors which
affects business socially.
Elements of Societies and its effect on business
Family
Educational institutions
Religion
• Meaning of culture
Culture is a set of learned core values, beliefs,
standards, knowledge, morals, laws and behaviors
shared by individuals and societies determination on
how an individual acts, feels and views oneself and
others”
Meaning of cultural environment
It refers to the institutions and other forces that affect
the business values, behaviors and preferences of the
society all of which have an effect on consumer marketing
decisions.
Factors of socio- cultural
environment

• Language
• Material culture
• Aesthetics
• Social organization
• Religious beliefs, attitudes, values
Natural environment

• Natural environment encompasses all living and

non living things occurring naturally on earth or
some region .
• It includes natural resources, weather, climatic
conditions, etc.
Natural environmental Factors
affecting business

• The Potential for Natural Disaster

• Impact of Climate on Business
• Providing Raw Materials
• Access to Waterways- A waterfront location is
always attractive for the views and the cool
breezes, but for business purposes, a location
near a waterway can be really crucial