MODULE I

MEANING AND DEFINITION OF MARKETING

 MARKET
• Market is a location-real or virtual, where buyers and sellers meet to
exchange goods and services at prices determined by the forces of supply
and demand
 MARKETING
• Philip Kotler “ Marketing is a social and managerial Process by which
individuals and groups obtain what they need and want through
creating and exchanging products and values with others”.
 FEATURES/IMPORTANCE/BENEFITS OF MARKETING

• Marketing creates some value or utilities to the society; Product, place time
and possession utilities;

• Helps in the growth and development of the economy;

• Maintains economic stability by balancing production and consumption;

• Connecting link between the producers and consumers;

• Provides employment opportunities;

• Consumer satisfaction
 01
SCOPE OF MARKETING
Study of consumer
02 needs and wants

Study of Buyer
03 Behaviors

04 Product Planning and

Development

05 Pricing Policies

06 Distribution

Scope of 07 Promotion
Marketing
08 Consumer Satisfaction

Marketing Control
SELLING V/S MARKETING/ MERKET
ORIENTATION Vs SELLING
ORIENTATION
 EVOLUTION OF MODERN MARKETING CONCEPT

Production
02
01 Orientation

Social Product
Orientation Orientation

03
06

Evolution Of Modern Marketing

Marketing Selling
Orientation Orientation

04
05 Customer
Orientation
 PRODUCTION ORIENTATION PHILOSOPHY

The focus for the business is to reduce cost through mass

production

It is based on the belief that economies of scale generated by mass

Production production will reduce cost
Orientation
A production oriented business needs to avoid production efficiency
processes which affect product design and quality

Compromising product design and quality for the sake of production

is likely to reduce the product’s appeal to customers
 PRODUCT ORIENTATION PHILOSOPHY

A product oriented company believes that its product’s high quality

and functional features make it a superior product

Such a company believes that if they have a superior product

Product customers will like it as well
Orientation
The problem with this approach is that superiority alone does not
sell products; superior products will not sell unless they satisfy
customer needs
 SELLING ORIENTATION PHILOSOPHY

A selling oriented company’s focus is to make the product, and then

sell it to the target market
Selling
Orientation
This type of orientation involves the organisation making what they
think the customer needs without relevant research
 CUSTOMER ORIENTATION PHILOSOPHY

Customer orientation is a business approach that puts the needs of

the customer over the needs of the business

Customer-oriented companies understand that the business won't

Customer thrive unless it consistently improves customer focus.
Orientation
It's a way of thinking that aligns your business goals with your
customers' goals.
 MARKETING ORIENTATION PHILOSOPHY

Market orientation prioritizes identifying the needs and desires of

consumers and creating products and services that satisfy them.

Companies that have a market orientation consider the opinions

Marketing and needs of their target market as a critical component of their
Orientation research and development for new products

Established businesses like Amazon and Coca-Cola use market

orientation principles to improve or expand their products or
services
 SOCIAL ORIENTATION PHILOSOPHY

Enterprises adopt social oriented philosophy prioritize the needs

and wants of society as well as its well-being, while also thinking
about the satisfaction of the customer’s demands.

Social
Orientation Unlike other orientation types, social orientation is less focused on
increasing the profitability of a company and more on improving
the community it operates in

Social orientation involves such means as developing products or

services needed by the society as a whole, offering discounts or
special deals to public organizations, and using environmentally-
friendly production methods.
ROLE OF MARKETING IN MODERN ORGANISATION

1 Boosting sales
2
Integrating the needs
3
Helps to build up company reputation

4 Fostering healthy competition

5
Promoting awareness

6 Developing products
7
Developing product distribution system
8
Generation of profit
 MARKETING MIX - CONCEPT
• The term "marketing mix" refers to a set of controllable elements or
variables that a company uses to influence and meet the needs of its target
customers in the most effective and efficient way possible.

• The marketing mix is defined by the use of a marketing tool that combines a
number of components in order to become harden and solidify a product’s
brand and to help in selling the product or service. Product based companies
have to come up with strategies to sell their products, and coming up with a
marketing mix is one of them
MARKETING MIX - COMPONENTS
MARKETING MIX - COMPONENTS
 MARKETING MIX
Product Mix
• Product mix refers to the composite Place Mix
products offered for sale by a firm • Physical distribution is the delivery
or a business unit; of products at the right time and at
• PRODUCT 02
Combination of all the product lines
constitutes the product mix of a
01 the right place;
• The distribution mix is the
company; combination of decisions relating to
• The product mix combines the marketing channels, storage
physical products, product services, facility, inventory control, location,
brand and packages. PRICE transportation, warehousing etc.
• It covers all ingredients that
constitute the right product.
Promotion Mix

03
06

Price Mix
MARKETIN Promotion is basically a
communication process;
• Price mix is the value of a G Products may be made known to the
product determined by the consumers;
producers; MIX PLACE
Firms must undertake promotion work
• Price mix is the combination of including advertising, sales promotion
and personal selling;
the decision variables like
The complexities of modern marketing
pricing objectives, pricing made the promotional activities
policies, terms of credit, 04
significant in marketing;
discount and allowances etc. PROMOTION Promotion mix is the combination of
• Pricing is very important in advertising, sales promotion and
marketing personal selling for promoting the
products.
IMPORTANCE OF MARKETING MIX

1 Helps in new product development

2
Helps to increase the product portfolio
3
Helps as a guide to improve a business

4 It helps in differentiation
5
Helps the business to be dynamic

6 Promotes better utilization of limited resources

7
Helps in goal achievement
8
Provides customer satisfaction
NEW HORIZONS OF MARKETING
 GLOBAL MARKETING
• Global marketing is the overall marketing
framework which an international enterprise
adopts to design, introduce, distribute,
promote and maintain its products in the
global arena;

• It is marketing on a world wide scale,

reconciling or taking commercial advantage
of global operational differences, similarities
and opportunities in order to meet global
objectives.
 GLOBAL MARKETING-IMPORTANCE
1. Revenue Potential;

2. Serving more people;

3. Pooling of skills and talents;

4. Improves goodwill;

5. Foreign investment opportunities

6. Global feedback

7. Lower costs

8. Continuous markets
 SERVICE MARKETING
• Service is an intangible consideration or
Characteristics
benefit that provides satisfaction to human
1. Intangibility
wants;
2. Inseparability
• Service is defined by the American Marketing
3. Perishability
Association as “activities, benefits or
4. Heterogeneity
satisfactions which are offered for sale or are
5. Customer participation
provided in connection with sale of goods”
6. Ownership
 SERVICE MARKETING
• Service marketing is a systematic and co-
ordinated effort of a service organisation to
expand its market by delivering the best
possible services to its customers;

• It is the integrated system of business

activities designed to plan, price, promote
and distribute appropriate services for the
benefit of existing and potential customers to
achieve organisational objectives.
PRICING OF SERVICES

Low price in low demand

periods

Requirement for
advance payment

Negotiated price

Bids for higher priced

services
 SOCIAL MARKETING (CAUSE MARKETING)

• Social marketing is the systematic application

of marketing along with other concepts and
techniques to achieve specific behavioural
goods for a social good;

• A management orientation aimed at

customer satisfaction and long run public
welfare as the key to satisfy organisational
goals and responsibilities (Philip Kotler).
 SOCIAL MARKETING- APPLICATION & ADVANTAGES
Application
Advantages
• Health promotion campaigns 1. Consumption of socially desirable products
• Environment protection campaigns 2. Promotes health consciousness

• Social campaigns 3. Green marketing initiatives

4. Helps to eradicate social evils

5. Improvement of standard of living

6. Cheapest way of marketing

ONLINE MARKETING/E-MARKETING/INTERNET MARKETING/CYBER MARKETING )

• Online marketing is a set of powerful tools

and methodologies used for promoting of
products and services through internet;

• Sharing of business information, maintaining

business relationship and conducting
business transactions by means of electronic
and tele communication network.
 ONLINE MARKETING - ADVANTAGES
ADVANTAGES

1. LESS EXPENSIVE

2. ANYTIME BUSINESS

3. CUSTOMER RELATIONSHIP

4. FLEXIBILITY

5. MASS MEDIUM

6. ADAPTATION TO EXTERNAL MARKET

7. INCREASED CUSTOMERS

8. CHEAPER PRODUCTS

This Photo by Unknown Author is licensed under CC BY-NC 9. INFORMATION

10. EASY ANALYSIS

 SUSTAINABLE MARKETING

• Sustainable marketing is the marketing and

promotion of environment friendly and socially
responsible products, practices and brand values;

• It is marketing practice predicted upon the

commitment to avoid depleting and degrading
the environment;

• The concept of sustainable marketing holds that

organisation should meet the needs of its present
consumers without compromising the ability of
future generation to fulfil their own needs(Philip
Kotler).
SUSTAINABLE MARKETING – IMPORTANCE/BENEFITS

1. Promotion of pure quality goods

2. Fair dealing with customers and society

3. Protection of ecological environment

4. Less pollution

5. Concern for future generation

 MICRO MARKETING

• Micro marketing is a marketing strategy in

which marketing and advertising efforts are
focused on a small group of tightly targeted
consumers for marketing of specific products
and services;

• An activity used to market products or

services directly to targeted groups of
individuals based on specific information that
has been collected about them
MICRO MARKETING – IMPORTANCE/BENEFITS

1. Highly Targeted

2. User-generated growth

3. Cost Effective
 RELATIONSHIP MARKETING

• Relationship marketing is a system of

marketing with conscious intention to
develop and manage long-term or trusting
relationship with customers, suppliers,
distributors or other parties in the marketing
environment;

• It builds strong economic, technical and

social ties among the parties
STEPS TO DEVELOP RELATIONSHIP MARKETING

1. Identification of key customers;

2. Assigning duties to skilled relationship managers;

3. Assigning duties to overall managers

 STEPS TO DEVELOP RELATIONSHIP
SAMPLE DESIGN MARKETING

Multi-Stage Random Sampling

Proactive 04 The company works continuously with its
customers to help to improve performance

sales person calls the customers to ensure

Accountable 03 whether the product is working properly

Reactive 02 sales personnel sell the products and encourages the customers
to call for any clarification required and also for any enquiries

Sales personnel makes direct sales to the final customers

Basic 01
RELATIONSHIP MARKETING– IMPORTANCE/BENEFITS

1. Great reviews

2. More feedback

3. More word of mouth

4. Higher return on investment

5. Multiplication of sales

6. Less advertisement cost

 CUSTOMISED MARKETING

• An advertiser tries to customise the message

to the unique needs of specific customer or

specific group of customers;

• It is tailoring a particular product to the

specific needs of an individual customer

PRODUCT CUSTOMISATION– IMPORTANCE/BENEFITS

1. Generate more sales

2. Increased profit margin

3. Stand out from the competition

4. No need for higher inventory cost

5. Better customer insight

6. Increases customer loyalty