INDIAN SCHOOL MUSCAT

SENIOR SECTION
DEPARTMENT OF COMMERCE & HUMANITIES
MARKETING
UNIT 1 HAND OUT
1 What is meant by term marketing?

Marketing refers to the process of ascertaining consumer needs, converting them into products and
services, and then moving the product or service to the final consumer segment with emphasis on
profitability and customer satisfaction, ensuring the optimum use of the resources available to the
organization.

2 What is needs?

Needs are the state of being deprived of something. Needs can be physical like hunger, clothing,
shelter and sex. If unsatisfied it leaves a person unhappy and uncomfortable. For example, when we are
fasting and didn’t have food since morning the moment a person names our favourite food it is tough for
us to resist. Needs can also be social like love and belongingness, self-esteem like status and self-
actualization needs. Marketing is satisfaction of the needs and wants of the customer.

3 What is wants?

Wants are the form taken by human needs as they are shaped by culture and individual
personality. These are essentially dependent upon needs. For example, a person in North India would
satisfy his hunger with rajma and chawal while a person from South India would like to have fish curry
and rice.

4 What is Demand?

Wants backed by willingness and purchasing power is known as demand. The top marketing
companies like HUL, Idea and Airtel etc. first understand needs and wants of customers and then fulfil
the needs, wants and demands by conducting consumer research and get regular feedback from their
salesmen in the market about unfulfilled customer needs. For example : Big Bazaar a retail store of
Future group, shop floor managers regularly mingle with customers on the shop floor and try to satisfy
every customer.

5 What is market offerings?

‘Market Offerings’ are products and services designed to deliver value to customers—either to
fulfill their needs, satisfy their “wants,” or both. Market offering refers to a complete offer for a
product or service. The product or service that is sold into the marketplace is called as a market offering.

Product: A product is tangible item that can be touched, seen, felt and satisfies need.

Services: Deeds, processes and performances provided by one person for another person

6 What is Customer Value?

Customer value is difference between the values benefits the customer gains from owning a
product and cost of obtaining the product. The cost of product is not limited to price but also time and
energy spent shopping.
Customer Value = Total Customer Benefits – Total Customer Costs

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7 What is Customer satisfaction?

Customer satisfaction is an experience where customer’s expectations match with the actual performance
of the product. Customer satisfaction is the match between customer expectations of the product and the
product’s actual performance. Customer satisfaction differs from one person to another; it’s an
experience which is different for different individuals.

8 A customer satisfaction is a post purchase phenomenon. Comment

Customer satisfaction is defined as a measurement that determines how happy customers are with a
company's products, services, and capabilities. It is a post purchase phenomenon because Satisfaction
can only be measured by comparing pre-purchase expectation and post-purchase experience. A proper
evaluation of a product or service can only be done by experiencing it. It is always a post purchase
phenomenon which is quite emotional in nature.
Customer Satisfaction=Experience – Expectation

9 What is meant by Exchange Process?

Exchange is the act of obtaining a desired object from someone by offering something in return.
Marketing works through exchange. Exchange process means an individual or an organisation obtain and
satisfy a need or want by offering some money in exchange of products or services. For example we go
get a haircut at a salon, we pay for the hair cut. The money paid in lieu of the service taken is an
exchange process. This exchange process extends into relationship marketing and we enter into exchange
relationships all the time. With relationship marketing the purpose is to build a long-term relationship
with the customer.

10 What is Market?

Market originates from Latin word ‘MARCUTUS’ which means a place where buyer and sellers meet
for business. Earlier in India, buyer and seller gathered at a specific place called ‘haats’or ‘melas’. But
with passage of time buyers and sellers need not to meet face to face for transaction, they can meet
virtually through e-commerce platforms.

11 Classification/Types of Market

 Based on Geography/Location – Local, Regional, national and International market

 Based on Time – Very short period, short period and long period markets
 Based on Competition – perfect competition, Monopoly, oligopoly, Monopolistic competition.
 Base on End use – Consumer markets and Industrial markets
 Based on intermediary – Wholesale market – Retail Market

12 What are the Objectives of Marketing?

 Creation of Demand: The marketing management’s first objective is to create demand through
various means. A conscious attempt is made to find out the preferences and tastes of the
consumers by the company. Demand for the products and services are created by informing the
customers their utility.
 Customer Satisfaction: The first and foremost marketing manager must study the demands of
customers before offering any product or services. Marketing begins and ends with the customer.
Satisfaction of the customers is outcome of understanding of needs and meeting them
successfully.
 Market Share: Every business aims at increasing its Market share. It is the ratio of its sales to the
total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase
their market share. For this, they have adopted innovative strategies.

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  Generation of Profits: The marketing department is the only department which generates
revenue for the business. Sufficient profits must be earned as a result of sale of want-satisfying
products. If the firm is not earning profits, it will not be able to survive in the market. Moreover,
profits are also needed for the growth and diversification of the firm.
 Public Image: To build up the public image of a firm over a period is another objective of
marketing. Goodwill of company is created over a period of time with regular emphasis on
customer satisfaction through continuous improvement in product and services. The marketing
department provides quality products to customers at reasonable prices and thus creates its
impact on the customers.

13 What is meant by Demand creation?

Demand creation is the process of increasing the demand for a product or service
using marketing techniques
They are
 Chase the customer :- data base, accounts intelligence, social media etc
 Co –create :-Partner marketing , peers, influencers etc
 Come :- Social media, credentials, starburst etc
 Caught:- Accounts intelligence, website tracking, interactive emails, reverse lookup etc

14 What are the Importance of Public Image?

Every Company strives to build a strong image as it helps in fulfilling their business motives. A strong
brand image has the following advantages –
 More profits as new customers are attracted to the brand.
 Easy to introduce new products under the same brand.
 Boosts the confidence of existing customers. Helps in retaining them.
 Better Business-Customer relationship.
 While a company with a bad image may struggle to operate and might not be able to launch a
new product under the same brand.

15 How marketer converts Profit Generation into Market Share?

Maximizing customer satisfaction makes an important contribution to maximizing profitability. By

maximizing customer satisfaction, you can increase the opportunity for repeat sales to customers, while
reducing the cost of sales and marketing. Customer satisfaction helps to increase customer loyalty,
reducing the need to allocate marketing budget to acquire new customers. Satisfied customers may also
recommend your products or services to other potential customers, increasing the potential for additional
revenue and profit. Which ultimately leads to get market Share.

16 What are the Scope/Area of marketing

 The scope of marketing is determined by the marketing offering of an organization. Market

offering is a combination of goods, services, ideas, persons, places, information, etc. offered to a
market to satisfy specific needs and wants of people.
 Market offerings are not limited to physical goods. They also include services like banking, air
travel, hotel stay, tourism, etc. which are not tangible in nature and can’t be owned by the
buyers.
 Goods – Tangible & Intangible
 Experience- Shopping , Movie ,eating out & Theme Park
 Ideas - AIDS awareness, discouraging-smoking, child labour, domestic violence, wearing of
helmet while driving, blood and eye donation
 Persons -Cricketers, film stars, authors, painters
 Places - Cities, state and nation

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  Information - universities, schools, colleges, newspapers, magazines, books
 Property - Real estate developers
 Events – Sports, Musical, Award night & fashion show

17 Is marketing a Continues Process?

Marketing starts before the production of the goods and continues even after the selling of the products.
So marketing is a continuous process. It includes;
 Activities pertaining to identification of the needs, wants and demands of the customer,
 then designing of a suitable product to meet the needs, giving name to the product and
 converting it to a brand by communicating it to the customers

18 What are the Importance of Marketing?

Marketing plays an important role to the marketer, customers and society.

Marketer
 Marketing Promotes Product Awareness to the Public.
 Marketing Helps In Enhancing Product Sales .
 Marketing Builds Company Reputation
Customers
 Marketing creates Utilities.
 Large number of choices available.
 More platforms available
Society.
 Source of Employment.
 Welfare of Customers and Stakeholders

19 Which are the main marketing philosophies/Concepts?

 Production Concept
 Product Concept
 Sales Concepts
 Marketing Concepts
 Societal Marketing Concepts

20 What is production Concept/philosophy?

 It is the oldest concepts

 Consumer will prefer the product which are widely available and inexpensive
 Business always achieves high production efficiency, which leads low costs and mass
distribution.
 The Mantra for this concept is “Low cost and mass production”

Examples: Companies whose product market is spread all over the world may use this approach. Maruthi
Alto, Lenovo Computers. Any other company whose product’s demand is more than its supply.Eg:
Indian Railway.

Drawback: Customer does not buy products which are inexpensive and easily available.

21 What is product concept/philosophy advocates?

 Consumers will prefer products that have better quality, performance and features.
 It emphasises on continuous innovation to produce better quality products.
 It believes in the ideology that a “good product will sell itself”

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  Product improvement became the key to profit maximisation for firms in product concept.

Example: Companies in the technology industry. Apple( iPhone), Mac(laptop), Gucci(clothing),

Rolex(watches)

22 What is Selling Concepts?

 Customers will not buy enough of the organization’s products unless they are persuaded.
 Selling is the act of influencing a customer to buy a product or service.
 Business does not consider the needs and wants rather thinks that anything and everything can
be sold.

Examples: Companies with short-sighted profit goals. This often leads to marketing myopia. Eg Met life
insurance Co and Fraudulent companies.

23 What are four pillars of Marketing Concepts?

 Identification of target customers of target market

 Understanding of needs and wants of customers
 Developing products or services as per the needs and wants of customers
 Satisfaction of needs of customers

Examples: Companies in perfect competition. Eg Samsung not only creates its product tailored to
customers, but also adds many incentives in its strategy. A good example is their popup store.
Companies who want to stay in the market for a long time.

24 What is societal Marketing concept explains?

 consider the best interest of individuals and society.

 believes in giving back to the society as it believes that the company is profiting because of
society and hence it should also take measures to make sure the society also benefits from the
company
 advocates to deliver the customer satisfaction in a way that preserves or enhances the customer’s
and the society’s well-being.

Example: Aircel is promoting ‘Save Tiger Campaign’, Idea is concerned about increasing population and
deforestation, ITC’s project of spending each rupee from sales generated through Classmate stationery,
Tata Tea Jago Re campaign are some of the prominent companies who are very active in societal
marketing.

25 Difference between Marketing and Selling Concept.

Point of Marketing Concept Selling concept

Deference
Definition Marketing is the process of creating Selling is the process of encoring
value for customer and delivering customers for increasing sales.
goods and services for earning profit
Objective The objective of this concept is to The objective of selling concept
satisfy customer through goods and is to increase sales of goods and
services services
Scope The scope of marketing concept is The scope of selling concept is
wider. narrow.
Emphasis This concept emphasis on customer This concept emphasis on

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 needs products or services.
Profit This concept earns profit through This concept earns profit through
customer satisfaction attractive sales and promotion.

Start This concept starts with actual and This concept starts with existing
potential customers product
Market This concept thinks about market This concept never thinks about
segmentation segmentation deeply market concept.

Marketing mix This concept gives equal importance This concept gives importance
on marketing mix. on only promotion.
Effectiveness This concept is applicable in pure This concept is useless in pure
competition market. competition market
Price Consumers determine price Cost determines price
View on business It views business as a customer It views business a goods
satisfying process producing process.

25 What is "Relationship marketing?

It is a strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed
to develop strong connections with customers by providing them with information directly suited to their
needs and interests and by promoting open communication.

26 What are the benefits of following the marketing concept?

 it is possible to enjoy long-term success when the enterprise recognizes the likes and needs of the
buyers.
 It enables the firm to capitalize on market opportunities.
 Marketing risks can be avoided on knowing the market needs.
 ‘Consumers are the king.’ This prestige gives prominent importance to the consumers.
 Product-planning becomes more effective.
 The demand for goods equalizes the supply position on the basis of research and innovation.
 Marketing concept assures the integration of the different departments of a firm.
 Profit through service is emphasized.
 Marketing research is a management tool for making fruitful decisions and future plans.
 Examples are not few, when ample opportunity for improving after sales services is adopted by
enterprises.

27 What are the limitations in implementing marketing concept?

 lack of market infrastructure development,

 communication gap,
 lack of advertisement,
 inadequate price dissemination,
 poor market intelligence service or information,
 political set up,
 social structure,
 religious barriers,

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