MARKETING

BS-CBSE-XII
Professor & Lawyer Puttu Guru Prasad
VIVA-VVIT-GUNTUR
 Understanding Marketing
• For a proper understanding of marketing, a number of questions need to be
answered.

These include:

What do we mean by a market?

What can be marketed?

Is it products or services or something more?

Who is a marketer?

What is marketing management?

These points have been taken up for discussion in the following sections.
 What is a Market
•In the traditional sense, the term ‘market’ refers
to the place where buyers and sellers gather to
enter into transactions involving the exchange of
goods and services.

•But in a modern marketing sense, the term

market has a broader meaning. It refers to a set
of actual and potential buyers of a product or
service.
 Marketing Activities
• Traditionally marketing has been described in terms of its functions or
activities. In this respect, marketing has been referred to as the
performance of business activities that direct the flow of goods and
services from producers to consumers.

#Therefore, to move the goods and services from producers to

consumers, a number of activities such as
• Product Designing or Merchandising,
• Packaging, Warehousing, Transportation, Branding,
• Selling, Advertising, and Pricing are required.
• All these activities are referred to as marketing activities.
Phillip Kolter’s Marketing Definition
• Taking the social perspective, Phillip Kolter has defined marketing as,

“a social process by which individual groups

obtain what they need and want through
creating offerings and freely exchanging
products and services of value with others”.
 WHAT CAN BE MARKETED
•The question commonly coming to mind is
what can be marketed. Is it a product or
service or something else?
•Thus, anything that is of value to the other
can be marketed. It can be a product or a
service or a person or a place or an idea or
an event or an organization or experience or
properties.
 What can be Marketed
Physical Products DVD player, Motor cycle, ipods, Cell phone, Footwear, Television, Refrigerator.
Services : Insurance, Health Care, Business Process Outsourcing, Security, Easy Bill service, Financial Services
(Investment),Computer Education, Online Trading.
Ideas : Polio Vaccination, HelpAge, Family Planning, Donation of Blood (Red cross), Donation of money on Flag Day
(National Foundation for Communal Harmony).
Persons : For Election of Candidates for Certain Posts.

Place : ‘Visit Agra – ‘City of Love’, ‘Udaipur – ‘The City of Lakes’, ‘Mysore – The City of Gardens’, ‘When Orisa
celebrates, Eleven the God Join In’.
Experience : Customized Experiences as Dinner with a cricketer (say Dhoni); Lunch with a celebrity (say Bill Gates or
Aishwarya Roy) or experience of Balloon Riding, mountaineering, etc.
Properties : Intangible rights of ownership of real estate in financial property (Shares, Debentures).

Events : Sports events (say Olympics, Cricket series), Diwali mela, fashion show, music concert, film festival, elephant
race (Kerala Tourism).
Information : Production packaging and distribution of information by organisations such as by universities, research
organisation, providing information as market information (marketing research agencies), technology
information.
Organisations : For boosting their public image organisations such as Hindustan Lever, Ranbaxy, Dabur, Proctor and Gamble,
communicate with people. Example, Phillips says, Let’s make Things Better’.
 Who is a marketer?
• Marketer refers to any person who takes a more
active part in the process of exchange.
• Normally it is the seller who is more active in the
exchange process as he analyses the needs of the
potential buyers, develops a market offering, and
persuades the buyers to buy the product.
• In situations of rare supply, the buyer may be taking
extra efforts in persuading the seller to sell the
product to him/her.
 Marketing management
•Marketing management refers to planning,
organizing, directing, and control of the activities
which facilitate the exchange of goods and
services between producers and consumers or
users of products and services.
•Thus, marketing management is not only
concerned with creating demand but with
managing the demand effectively, as per the
situation in the market.
 MARKETING AND SELLING
• Many people confuse ‘selling’ for ‘marketing’. They consider
these two terms as one and the same. Marketing refers to a large
set of activities of which selling is just one part.
• In short, marketing involves the whole range of activities relating
to planning, pricing, promoting, and distributing the products
that satisfy customers’ needs.
• The function of selling, on the other hand, is restricted to the
promotion of goods and services through salesmanship,
advertising, publicity, and short-term incentives so that title of
the product is transferred from seller to buyer or in other words
product is converted into cash.
 SALES MARKETING
Selling is only a part of the process of marketing and is Marketing is a much wider term consisting of number
concerned with promoting and transferring possession of activities such as identification of the customer’s
and ownership of goods from the seller to the buyer. needs, developing the products to satisfy these needs,
fixing prices and persuading the potential buyers to
buy the same.
The main focus of selling is on affecting transfer of title Marketing activities put greater thrust on achieving
and possession of goods from sellers to consumers or maximum satisfaction of the customer’s needs and
users wants.
All selling activities are directed at maximizing sales Marketing is concerned with customer satisfaction and
and, thereby, the profits of the firm. thereby increasing profit in the long run.
Selling activities start after the product has been Marketing activities start much before the product is
developed produced and continue even after the product has
been sold.
In selling, the emphasis is on bending the customer In marketing, the attempt is to develop the product
according to the product and other strategies as per the customer’s needs.
Selling involves efforts like promotion and persuasion Marketing uses integrated marketing efforts involving
strategies in respect of product, promotion, pricing,
and physical distribution.
 Functions of Marketing
1. Gathering and Analyzing Market Information:
2. Marketing Planning:
3. Product Designing and Development:
4. Standardisation and Grading:
5. Packaging and Labelling:
6. Branding:
7. Customer Support Services:
8. Pricing of Products:
9. Promotion:
10.Physical Distribution:
11.Transportation:
12.Storage or Warehousing:
 Role of Marketing
Role of Marketing in a Firm
1. Marketing plays an important role in achieving the objectives
of a firm.
2. It lays utmost importance on customer satisfaction which is
considered a key element for the survival and growth of the
firm.
3. It helps any kind of organization to achieve its goals
effectively.
4. It assists the firm/organization in identifying and analyzing
customer needs which will help in designing and producing
products or services as per customer needs.
5. Further, it will help the firm/organization to make products
available in the market at an affordable price.
 Role of Marketing
• Role of Marketing in an Economy
1) Marketing plays an important role in the development of the economy.
2) It acts as a catalyst for economic development.
3) It inspires people to undertake new activities and to set up enterprises for
producing goods that are needed by customers.
4) It helps in overcoming the hurdles posed by high prices due to imbalances in
the levels of production and consumption.
5) It helps in maintaining the smooth flow of goods through efficient
arrangements made for the physical distribution of goods.
6) It acts as a link between the business and consumption centers and accelerates
economic activity leading to higher incomes and more consumption, as well as
increased savings and investment.
 MARKETING MIX
• Marketing mix means the set of various marketing tools used by an organization
to achieve the desired objectives of marketing.
• In an organization, various decisions with respect to marketing are affected by a
large number of factors, some of which are controllable, while others are non-
controllable.
• Controllable factors refer to factors that can be controlled/influenced by the firm;
for instance, price, branding, and advertising.
• Non-controllable factors refer to factors that cannot be controlled at the level of
a firm; for example, government policies, inflation, or the policies of commercial
banks.
• To achieve the various objectives of marketing, a firm continuously alters the
various controllable factors. These factors, also known as marketing tools, form
the basic pillars of marketing.
• From the various available marketing tools, a firm chooses the most suitable and
best combination. This combination of marketing tools used by the firm is called a
marketing mix.
 ELEMENTS OF MARKETING MIX
Product PRICE
Product Mix
Product Quality Price Level
New Product Product Quality
Design and Margins
Development
Packaging Pricing Policy
Labelling Pricing Strategies
Branding Price Change

Place Promotion
Channel Strategy Promotion Mix
Channel Selection Advertising
Channel Conflict Personal Selling
Channel Cooperation Sales Promotion
Publicity Physical Distribution
Public Relations
Classification of the Product
Classification of industrial Goods
 Bundle of Utilities from a Product
• A consumer derives satisfaction from the consumption of a product. So,
when a customer decides to purchase a product, his/her main focus is on
the utility which he would receive on consuming it.
• A product is a bundle of utilities. A customer derives various kinds of
satisfaction/benefits from the consumption of a product:
• Functional benefits refer to the utility derived from the basic functions
performed by the product. For instance, a cooking gas range provides
functional utility as a medium of cooking.
• Psychological benefits refer to benefits in the form of pride and self-
esteem derived from owning the product. For instance, a consumer can
derive psychological benefit from owning a cooking gas range which he
uses as a modern means of cooking.
• Social benefits refer to benefits in the form of acceptance among the peer
group such as consumption or use of a particular product.
 (i) Product mix
• Product mix Refers to essential decisions related to product quality,
design, packaging and assortment, i.e. number of products or items a
particular producer offers to the market.
Components of Product Mix
1) Branding Refers to the process of giving a unique name, sign, symbol or
term for the identification of a product. The name can be either a generic
name or brand name. The brand name acts as a basis of differentiation of
the firm’s product with that of its competitors.
• 2) Packaging is the process of developing, designing and producing a
container or wrapper of a product. It is one of the most important functions
of marketing
• 3) Labelling refers to providing information about the product in the form
of a tag or a label on the package of the product. Information provided on
these tags or labels contains descriptions about a product’s name, date of
manufacturing, quality, price, contents, method of use etc.
 (ii) Price and Price Mix
Price mix It refers to important decisions related to price levels, pricing
strategy and price policies of an organization.
1. Price is the money paid by a buyer (or received by a seller) in consideration of the
purchase of a product or a service. It plays an important role in the marketing of
goods. It is often used as a regulator of product’s demand and act as effective tool
during stiff competition. Price affects the revenue and profits of a firm. .
2. Importance of Pricing
 A product cannot be launched without a price. At least some guidelines for pricing
are always there while launching the product.
3. Example of Pricing
 Products: Price of Car, laptop, Bread etc.
 Services: Fee of Doctor/lawyer, Fare of Bus/Train/Airplane, Premium of Life
Insurance etc.
 (iii)Promotion mix
• Promotion mix- It refers to informing the customers
about the product and persuading them to purchase
these products.
• This job is done by the company through the medium
of advertisement, personal selling, sales promotion,
and public relations.
• Decisions with regard to all these factors directly
influence the sale of the product.
 (iv) Place mix
• Place mix (Physical distribution) It includes decisions
about channels of distribution, means of transportation,
warehousing, inventory control, etc.
• Place mix is concerned with linking the sellers and buyers.
• The choice of channels of distribution depends on
• nature of the product,
• competition,
• willingness of middlemen and
• producer’s financial resources.