Paper: 14, Marketing Management

Module: 4, Emerging Concepts in Marketing

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.

Dr. Kulbhushan Chandel

Paper Coordinator Department of Commerce and Management
Himachal Pradesh University, Shimla

Dr. Kulbhushan Chandel

Content Writer Department of Commerce and Management
Himachal Pradesh University, Shimla
 Items Description of Module
Subject Name Management
Paper Name Marketing Management
Module Title Emerging Concepts in Marketing
Module Id Module no.-4
Pre- Requisites Basic knowledge of commerce
Objectives To study the emerging concepts of marketing
Keywords Marketing, e-marketing, social marketing, green marketing

QUADRANT-I

Module 4: Emerging Concepts in Marketing

1. Learning outcome
2. Introduction
3. Meaning of marketing
4. Definition of marketing
5. Objectives of marketing
6. Emerging issues in marketing
7. Conclusion

1. Learning Outcome:
After completing this module, the students will be able to:

 Understand the meaning and definitions of marketing.

 Explain the various objectives of marketing.
 Know the emerging issues in the marketing.
 Explain E-Marketing.
 Understand the concepts of green marketing, social marketing and reverse marketing.
 Explain service marketing, global marketing and rural marketing.

2. Introduction

Marketing is one of the important parts of doing business. Marketing is managing the profitable
customer relationships. The basic objective of marketing is to attract the new customers by promising
and offering superior value and to retain and grow current customers by delivering satisfaction.
Marketing deals with customers more than any other business function and deals mainly with the
customers. Building customer relationships based on the customer value and satisfaction is at the very
core of modern marketing. Sound marketing is essential for the success of any company. Marketing is
practised by the large profit making organisations like Microsoft, IBM, Reliance, Godrej, etc. as well
as it is practiced by the non profit making organisations like churches, schools, colleges and charitable
institutions like CRY, Help Age, etc. . In the modern era, new methods of marketing and concepts
came into way of life. One cannot be successful by sticking to the old. So, in order to survive in this
age of competition, every business concern should adopt the new advancements in production sector,
selling sector as well as in marketing and so on.

The historical evolution of marketing is found to have moved through the distinct stages. The major
eras are the production era, sales era, marketing era and the relationship era. The production era was
based on the philosophy that good products at affordable prices will sell by itself. When this
philosophy failed and piles of unsold inventory resulted as the goods did not sell themselves, the sales
era started. Selling was the prime importance in this era and the major concern was to find customers
for inventories that went unsold. Next came the era of marketing with more importance on the
identification of customer needs and wants prior to producing the product. During the marketing era,
marketing moved to the forefront of the business strategy and satisfying the customer needs become
the responsibility of everyone in the organisation. Then came the relationship marketing era which
stressed on the customer oriented marketing, value and potential of the customer retention and
creating the long-term relationships by providing reasons to keep existing customers.

3. Meaning of Marketing

Marketing is a process through consumer and producer came together to exchange the goods and
services in order to get their respective benefits. In marketing, the product physically and mentally
moves from producer to the consumer. In other words, marketing is an organisational function and is
a set of functions for creating, communicating and delivering values to customers and also for
managing customer relationships in such ways that benefits the organisations and all other
stakeholders. Marketing includes selling also. The main preference is given to the consumers. Thus,
it focuses on the customer needs.
 PRODUCT

MARKETING
PROMOTION INVOLVES PRICE

PLACE

4. Definitions of Marketing

“Marketing is a social and managerial process by which individuals and groups obtain what they need
and want through creating and exchanging of products and value with others.”

--Philip Kotler

“Marketing in a free economy is the skill of selecting and fulfilling consumer desires so as to
maximise the profitability per unit of capital employed in the enterprises”

--Professor Glasser

“Marketing is concerned with all the resources and activities involve in the flow of goods and services
from the producer to the consumer”

--Wheeler

“Marketing includes all those activities having to do with effecting changes in ownership and
possessions of goods and services. It is that part of economics which deals with the creation of time,
place and possession Utilities and that phase of business activity through which human wants are
satisfied by the exchange of goods and services for some valuable considerations.”

--American Marketing Association.

5. Objectives of Marketing

The main aim of any business is to earn maximum profits. Thus, for achieving this aim of earning
higher profits, products and services are to be sold to the consumers in a very effective and efficient
manner in the market. Consumers will buy commodities only if the products satisfy their needs.
Therefore, following are the objectives of the marketing:

 Creation of Demand: The first and foremost step of marketing is to create the demand.
Products should be produced according to the demand and preferences of the consumers as
„consumer is the king of the market‟. Demand can be created by attracting the customers
through creative advertisement, personal selling, sales and promotion.
 Capturing Market Share: Marketing also aims at capturing reasonable market share. More the
share higher will be the profits. New and innovative high quality products can attract the
consumers more. Market share can also be captured through advertisement, low cost products,
and better after sales services and etc.
 Services to the Society: It is the acute need of every business so as of marketing to serve the
society. Marketing aims to provide services to society by-
 Providing large variety of goods and services.
 Supply new and socially useful goods.
 Providing better quality products at very reasonable prices.
 Generating employment opportunity.

 Marketing Policies: Policies are the guidelines to action. Marketing manager must formulate
effective and intelligent policies of marketing for the better results. Marketing objectives can
be achieved by keeping close to the customers and by knowing their tastes and preferences. In
order to fulfil this, policies should be developed and implemented.

 Build Goodwill: Goodwill is the image and reputation of the business. It effects the sales of
the business to a great extent and hence the profits too. Marketing also aims at enhancing the
goodwill through the marketing techniques such as providing good quality products at
affordable prices, timely supply of the goods, satisfying the customer needs and so on.

 Profitability: No business can live without earning the profits. So, marketing plays a vital role
in earning the profits. As profit has direct relation to the sales, therefore, marketing
management tries to increase its sales by market development and exchanging goods.
However, such profits should not be earned at the cost of customers because customer can
affect the sales of the business. In order to earn the products only those goods are to be
produced which are needed by the customers.
6. Emerging Issues in Marketing

Marketing, which originated as mere an exchange of goods and services, has changed its force with
the passage of time and due to economic reforms including globalisation, liberalisation and
privatisation. In the present scenario, various new advancements have taken place which helps in the
growth and development. Enormous issues are there in every field of life whether it is business,
education, medical, banking etc. Moreover, internet has changed the life of everyone. Products and
services can be sold online. This gives rise to many contemporary issues in the area of marketing.
Like online banking, online marketing has also come into existence for the benefit of producers and
consumers. This technology made the life easier for people and it is very economical also.

Various new emerging issues in marketing are as follows:

6.1 E-Marketing: - E-Marketing or Internet Marketing means marketing via electronic medium. It
refers to advertising and marketing efforts that use internet in order to sell the goods to the customers
worldwide by assessing web with the help of electronic commerce. E-Marketing is the application of
the broad range of the information technologies in marketing functions so as to achieve the following:

 Transform marketing strategies to create more customer value through more effective
segmentation, targeting, differentiation and positioning strategies.

 More efficient planning and execution of the conception, distribution, promotion and pricing
of goods and services and ideas.

 Create exchanges that satisfy individual consumer and business customer‟s needs and wants.

E-marketing is the result of application of information technology applied to the traditional marketing.
It increases efficiency in all traditional marketing functions. The technology of e-marketing
transforms many marketing strategies resulting in the new business models that add customer value
and increases the company‟s profitability.

E-marketing evolves from the company‟s overall e-business strategies and selected business models.
It starts from the business environment where legal, technological, competitive, and market-related
and other environmental factors external to the company create both opportunities and threats.
Companies perform SWOT (Strength, Weakness, Opportunity and Threats) analyses to discover what
strengths they have to deploy against threats and towards opportunities. This SWOT analysis leads to
e-business and e-marketing strategies. Companies select e-business strategies and e-business models,
and create e-marketing plans that will help the company accomplish its overall goals. The final step is
to determine the success of the strategies and plans by measuring the results.
Kotler and Armstrong defines internet marketing: “Internet marketing is the company’s efforts to
market products and services and build customer relationships over the internet.”

6.1.1 Types of E-Markets: E-Marketing is basically carried out in the following types:

 B2B: This involves business to business marketing or intercompany business online. Business
organisations sell their products online and services to other business organisations using the
internet. It covers the purchasing, service, support and payment systems.

 B2C: This involves business to customer marketing, where the products and services are
marketed by business organisations directly to the ultimate consumers using the internet.
Activities include sales, services, customer information and customer support.

 C2C: This involves consumer to consumer marketing, where consumers directly sell their
products or services to other consumers using the internet. Firms like eBay provide such
facilities.

Among these types, the maximum e-marketing activities take place and the maximum online
marketing opportunities lie in the B2C where marketers sell directly to ultimate consumers.

6.1.2 Benefits of e- marketing

Benefits to consumers Benefits to companies

Comprehensive product information Reduced cost of sales

Anytime, anywhere service Enhanced brand loyalty

Most economical and saves time Quick adjustment to market conditions

More convenient Relationship building

6.2 Social Marketing: - Social marketing is the systematic application of marketing along with other
concepts and techniques to achieve specific behavioural goals for a social good. It can be applied to
promote, for example make the society avoiding demerit goods and thus to promote the society‟s well
being as a whole. It can include persuading people not to smoke in public areas, using helmets while
driving two-wheelers, and wearing seatbelts while driving cars. Social marketing began as a formal
discipline in 1971, with the publication of “social marketing‟ by father of marketing Philip Kotler and
Gerald Zaltman in 1971 in their article “Social Marketing: An approach to planned social change.”
Social marketing aims at providing benefits to the society as whole and to promote the quality of life
of human beings on long term sustainable basis. Moreover, social marketing has welfare objectives
and is also concerned with ideas, behaviour and practices.
In the words of W. Smith, “Social marketing is a process of influencing human behaviour on a large
scale using marketing principle for the purpose of social benefit rather than commercial profit.”

6.2.1. Features of Social Marketing:

 Consumer oriented process to realise organisational (social) goals.

 Emphasis on the voluntary exchange of goods and services between producers and
consumers.
 Social marketing is consumer oriented.
 It focuses on the consumer behaviour.
 Using social networks for the distribution of products.
 Continuous monitoring and revision of program helps in removing various obstacles and help
to achieve the desired goals.

6.2.2 Evolution of Social Marketing

Social marketing began as a formal discipline in 1971, with the publication of “Social Marketing: An
Approach to Planned Social Change” in the Journal of Marketing by marketing experts Philip Kotler
and Gerald Zaltman. Kotler used the term “Social Change Campaigns” to describe activities expected
to promote behavioural changes. According to him, a social change campaign is an organised effort
conducted by one group which attempts to persuade others to accept, modify or abandon certain ideas,
attitudes, practices or behaviour. In 1988, Craig Lefebure and June Flora introduced social marketing
to the public health community, where it has been most widely used and explored. They were
convinced that there was a need for large scale, broad-based, behavioural change focussed
programmes, to improve public health and outlined eight essential components of social marketing
that still hold good today. They are as following:

 A consumer oriented to realise the organisational goals.

 An emphasis on the voluntary exchanges of goods and services between providers and
consumers.

 Research in audience analysis and segmentation strategies.

 The use of formative research in product and message design and the pretesting of these
materials.

 An analysis of distribution channels.

 Use of the marketing mix- utilising and blending product, price, place and promotion
characteristics in intervention planning and implementation.
  A process tracking system with both integrative and control functions.

 A management process that involves problem analysis, planning, implementation and

feedback functions.

Examples of Social Marketing:

 Ariel: Ariel is a detergent manufactured by Procter and gamble. Ariel runs special fund
raising campaigns for deprived classes of the world specifically the developing countries. It
also contributes the part of earning for the development of the society.

 Body Shop: It is a cosmetic company found by the Anita Roddick. The company uses only
vegetable based materials or the products. It is also against animal testing. Thus completely
follow the concept of social marketing.

6.3 Green Marketing: - The concept of green marketing came into existence for the safety and for
making the environment clean. Green marketing is the holistic marketing concepts in which the
production, marketing, consumption and disposal of products and services happen in such a way that
it cause less or no harms to the environment. It is quite broad concept and includes recycling, reuse,
refill, eco friendly, phosphate free etc. This concept of green marketing is concerned with the
ecological environment. Thus, Green marketing emphasises on protection of long term welfare of the
consumers and society by providing them pure and pollution less goods and services. Green
marketing also affects the health of people in a positive manner.

American Marketing Association defines Green Marketing as “The study of positive and negative
aspects of marketing activities on pollution, energy depletion and non-energy resource depletion.”

Examples of Green Marketing

 Digital Tickets by Indian Railways: - Recently IRCTC has followed its customers to carry
PNR number of their E-Tickets on their laptop and mobiles. Customers do not need to carry
the printed version of their ticket anymore.
 No Polythene Carry Bags For Free: - Forest & Environmental Ministry of India has ordered
to retail outlets like Big bazaar, more, Reliance Stores, d mart etc. that they could provide
polythene carry bags to customers only if customers are ready for pay money for it.

6.3.1. Importance of Green Marketing

Green marketing shows the combined effort for purity in production and consumption of goods.
Various significant points of importance are as follows:

 Providing eco- friendly products to the customers.

  Encouraging customers to not to use plastic bags.
 The firms using green marketing have competitive advantage over those firms which do not
use this concept of green marketing.
 With the use of Green Marketing, companies get higher profits due to cost reduction.
Moreover, it is very time saving and economical.
 It helps in making and keeping the environment and Nation clean as well as pollution free.
 King of the market i.e. consumer is more satisfied with green marketing as compared to
traditional marketing.
 Green products help people to keep fit and healthy. It encourages worldwide efforts to recycle
waste of the consumers and industrial products.
 Increased use of herbal medicines, therapies and yoga.
 It is a long term investment opportunity for the investors and corporate sector. It also taken
into consideration the corporate social responsibility which is becoming mandatory for every
company.
 Green marketing uses the strategies of reconsumption, redirection, reorientation and
reorganisation. It increases the efficiency.
 Green marketing leads to extension of the business. There is optimum utilisation of the
resources when concept of green marketing is adopted.
6.4 Service Marketing: Marketing of different services requires varied approaches. Service
marketing may be defined as the exchange of services from seller to the customer. A service is any act
or performance that one party offers to another which is usually intangible. These are economical
activities.

6.4.1. Classification of Services-

Consumer Services Industrial Services

 Food services  Financial services

 Hotels and Motels  Insurance services
 Personal care services  Transport and warehousing
 Entertainment services  Engineering services
 Communication services  Advertising and Promotion services
 Transport services  Management consultancy services
 Insurance services  Office services

6.4.2. Service Marketing Mix

In addition to the main 4 P‟s of marketing mix, 3 more P‟s are there in service marketing mix. All the
seven factors or P‟s are necessary to provide qualitative and effective service to the customers. Now
the 7 P‟s of service marketing are given below:

 Product: Product here services refers to the activities which are performed by the marketer
and offer the service to the buyer which results in the satisfaction of a need or want of the
customer. So it should be according to the needs and preferences of the ultimate consumer.
These services are intangible in nature and must be of good quality, branded, prompt service.
 Price: Price is the main factor in marketing. It is the consideration to be paid by the customer
to the service provider for getting the service. So the price should be affordable for the
customer. Various pricing strategies should be adopted in order to get higher earnings.
 Place: Place is concerned with the delivering aspect. Here the services are exchanged
between the buyers and sellers. The place should be assessable. There are various distribution
channels to perform the activities like electronic and physical, door to door, wholesaler and
retailer.
 Promotion: It is used to communicate the information about the services to the ultimate
consumers. It can be done through personal selling, advertising on television, radio,
newspaper etc.
 People: Human resources including employees in addition to customers are very essential in
the marketing process. The staff providing services should be skilled and trained. It is
necessary to put the right man on the right job at the right time.
 Physical evidence: Physical evidence means from where the services are delivered. This
element will distinguish the company from its competitors. It includes positivity, clear
cleanliness, tangible facilities, equipments etc.
 Process: The process refers to the method or the way of performing the services. It refers to
the system that is used for delivering the services to the customers.

6.5 Global Marketing

We are living in a borderless world today which is a global market. Global marketing involves a
company focusing its resources and activities on global opportunities and threats. Global marketing
requires the thorough understanding of the relevant concepts, considerations and strategies that must
be skilfully applied in conjunction with the universal marketing fundamentals to ensure the success in
global markets. Global marketing is the process of marketing at global level. It is the process of
planning, producing, placing, promoting the products and services all over the world. It provides
diversified products. Global marketing reflects the trend of selling service and goods at international
level. It is concerned with finding and satisfying global customers. According to Oxford University
Press, “Global marketing refers to marketing on world wide scale reconciling or taking commercial
advantage of global operational differences, similarities and opportunities in order to meet global
objectives.”

There are three main principles of global marketing and these are explained as below:

 Customer Value Creation: The main task of a marketer is creation of customer value. It can
be created and increased by recuperating product or service excellence and benefits or by
dropping price or by both.
 Competitive Advantage: The competitive advantage can exist in any element of the
company‟s offers may be product, price, promotion or distribution of product or service.
 Focus: The focus means deliberation of concentration. This is necessary in current
competitive environment to achieve success in the chore of creating customer value.

6.5.1 Forces Affecting Global Marketing

Global marketing is affected by many forces which could be grouped into driving forces (favourable)
and restraining forces (unfavourable).

 Driving Forces: Technology is a major driving force in global marketing. When a new
technology is developed, it soon becomes available all over the world. Satellite TV, internet,
mobile phones, computers all are examples. Consumer needs and wants around the world are
converging today and global customers are emerging with similarities in product preferences
and buying habits. Heavy cost of new product development is a driving force for going
global, to recover the expenses faster. High quality standards, uniformity and cost reduction
are all driving forces. Economic growth all over the world has been a driving force for the
growth of global marketing. It created market opportunities, reduced local resistance by
governments and introduced privatisation and deregulation of businesses by opening up the
economies.

 Restraining Forces: These forces that restrain a company‟s efforts to go global are mainly of
three types. Myopic or nearsighted management will not consider global marketing
opportunities. National trade controls and trade barriers restrict access in some global
markets.

6.5.2 Examples of Global Marketing

 Coca cola is now selling their products in more than 200 countries.
 McDonald‟s provide different types of eatables in various countries.
 Starbucks also provide different meals in different countries according to the local taste.
6.5.3 Advantages and Disadvantages Of Global Marketing

Global marketing is one of the contemporary issues in the marketing. It is very opportunistic and
came into existence after the economic reforms. It has various advantages and disadvantages:-

Advantages Disadvantages
It spreads the business risk. Main disadvantage is cultural and language
barrier.
It gives opportunity to exploit an existing Due to exchange rate fluctuations many
competitive edge in new markets. problems arise.
It helps in expanding the brand awareness to Religious beliefs.
new audiences.
Revenue is increased if the company adopts Government regulation and interference also
global marketing concept. lead to various problems.
There is possibility of accessing new Political instability
technologies.
Business can be conducted via internet. So it is Another disadvantage is economic downturn.
very economical and time saving.

6.6 Rural Marketing: - It is crystal clear from the name itself that the practice of producing placing
and promotion done for the people of rural areas is called rural marketing. Here, needs and demands
of the rural people are satisfied because more than half of the Indian population is living in rural areas.
The environment is eco-friendly. Thus, rural marketing refers to distinct activity of attracting and
serving rural markets. According to National Commission on Agriculture, Rural Marketing is a
process which starts with the decision to produce a saleable farm commodity and involves all the
aspects of market system and includes pre and post harvest operations i.e. assembling, grading,
storage, transportation and distribution.” Rural marketing is a two way process in which inflow of
products into rural markets for consumption or production along with this there is outflow of products
to urban areas. The rural to urban flow consists of agricultural products like wheat, rice, sugar,
tobacco, cotton & vegetables. Products of cottage & village industries like handloom textiles, silk
saris & handicrafts also enter urban areas. The movement of rural production takes place within rural
areas also. the movement of urban to rural flow consists of agricultural inputs, FMCG like soaps,
detergents, cosmetics, textiles & consumer durables like two wheelers & cars, television sets and
electrical appliances.

6.6.1 Significance of Rural Marketing

The unexploited market provides vast opportunities to the corporate world. There are number of
factors which have attracted the attention of various companies, some of these are:

 Large And Scattered Market: Rural markets in India are quite large in numbers. According to
census 2011, the number of villages in India was 640,867.
 Agriculture Productivity: Due to modernisation, the agriculture productivity has been
improved significantly in the recent time. Many new methods of cultivation came into
existence.
 Increase in literacy and Education level: In India, the literacy rate has improved. Various
programs have been organised by the regulating authorities and corporate houses. This results
into rise in awareness level and thus, income level.
 Strengthen Rural Credit System: The government has taken various initiatives to strengthen
the credit system of rural areas by expanding branches of commercial banks. Moreover,
various housing finance institutions put efforts for the development of rural sector like
NABARD, SIDBI etc.

6.7 Reverse Marketing: - Reverse marketing is that marketing process in which the customer seeks
the firm rather than the seller seeks customer. In other words, reverse marketing is where the customer
becomes marketer. The best example of this is Social Media. Reviews are also the example of reverse
marketing. It is also known as value or attraction marketing. It focuses on building trust and letting
customers to know and assess the brand. It is a great way to increase the goodwill of the firm.

Providing
SUPPLIER PURCHASER

Reverse marketing Initiative

6.8 Introduction of 5th P in marketing

Father of marketing Philip Kotler added 5th P in addition to other 4 Ps in marketing. This P stands for
Purpose. He said purpose of every business is to earn more profits. He felt that this is not enough in
country like India. Every firm should have higher purpose with the regular purpose. The purpose
should be two-fold. The marketer should try to make your country more advanced in technology.
Secondly, you should try to uplift the life of poor people.

7. Summary

Marketing is the activity of selling and buying goods between buyer and seller in an effective way.
With the change in time and advanced technology, various emerging issues have taken place.
Moreover, the Father of Marketing Philip Kotler along with other scholars and professors has
contributed a lot in the concept of marketing and made it broader. Various emerging issues are green
marketing, social marketing, rural marketing, internet marketing, and global marketing. Customers are
more aware now days, so they want to get full information in order to get the good quality products
and services at affordable prices. Furthermore, enhancements in the marketing increase its value as
well as the goodwill of the firm. Today‟s world is a borderless world which is a global market.
Marketing which is done on worldwide level by taking commercial advantage of international
functioning, various available similarities and opportunities for achieving global objectives is called
global marketing. The winning strategy for the corporate world is International Market share. There
are numerous strategies available for pricing products globally. The main objective should be to
contribute to company sales and profits. When customers‟ perceptions are determined by the value
equation then customer oriented strategies can be used. The global marketer has to take many
strategic decisions like how to enter global market, which market to be selected and which products
are to be produced. Unless a company has good position in all the markets worldwide in contrast to its
competitors, it is impossible for it to have a marketing plan. As the company goes globally, all the
“Four P‟s” of marketing i.e., product, price, place and promotion all are influenced. Finally, when the
company goes global, it has to face numerous challenges during creation of global marketing plan.
The application of wide range of information technology in marketing is termed as e-marketing. The
application in numerous areas of marketing including beginning, distribution, pricing of goods and
services, creation of customer value and also in renovating marketing strategies for generation of
effective marketing segmentation, targeting and positioning strategies.