UNIT 1: INTRODUCTION

o Concept, Nature, Scope and Importance of Marketing

o Evolution of Marketing (Production, Product, Selling, Marketing, Holistic Marketing)
o Selling vs Marketing
o Marketing Mix (4 Ps)
o Marketing Environment: Concept and Importance, Dimensions of
Marketing Environment (Micro-Environment and Macro-Environment)

According to Philip Kotler, marketing is a societal process by which individuals and groups obtain
what they need and want through creating, offering and freely exchanging products and services
of value with others.

1.Needs, Wants, and Demands:

 Needs: These are the basic requirements essential for human survival, such as food, shelter,
and clothing.
 Wants: Desires that go beyond basic needs and are shaped by a person's culture,
personality, and individual preferences.
 Demands: Wants backed by purchasing power. For something to become a demand,
individuals must not only desire it but also have the means to acquire it.
2.Products and Services:
 Products: Tangible items that satisfy needs or wants, ranging from physical goods like
smartphones to consumable products like food.
 Services: Intangible offerings that provide value to customers, such as healthcare, education,
or consulting.
3.Value, Satisfaction, Quality:
 Value: The perception that a product or service provides benefits that outweigh the cost,
considering both tangible and intangible aspects.
 Satisfaction: The positive feeling a customer experiences after using a product or service,
resulting from the fulfillment of expectations.
 Quality: The degree of excellence or superiority a product or service possesses, contributing
to customer satisfaction.
4.Exchanges, Transactions, Relationships:
 Exchanges: The act of obtaining a desired product or service by offering something in return,
typically money. Marketing focuses on creating mutually beneficial exchanges.
 Transactions: One-time interactions between a buyer and a seller involving the exchange of
goods, services, or money.
 Relationships: Building long-term connections with customers, fostering loyalty and repeat
business. Relationship marketing emphasizes continuous engagement beyond individual
transactions.
5.Markets:
 Markets: The aggregate of potential buyers with the willingness and ability to make
exchanges for products or services.
  Market Segmentation: Dividing the market into distinct groups based on characteristics such
as demographics, psychographics, or behaviors to tailor marketing strategies to specific
segments.
 Target Market: The specific group of consumers a company aims to reach with its marketing
efforts.
Traditional Concept of Marketing
According to the traditional concept, marketing means selling goods and services that have been
produced. Thus, all those activities which are concerned with persuasion and sale of goods and
services, are called marketing.
Traditional Concept of Marketing
Focus on Product

Means Selling

Ends Profits through maximization of sales

MODERN CONCEPT OF MARKETING

The modern concept of marketing considers the consumers’ wants and needs as the guiding
spirit and focuses on the delivery of such goods and services that can satisfy those needs most
effectively. Thus, marketing starts with identifying consumer needs, then plan the production of
goods and services accordingly to provide him the maximum satisfaction. In other words, the
products and services are planned according to the needs of the customers rather than according
to the availability of materials and machinery. Not only that, all activities (manufacturing, research
and development, quality control, distribution, selling etc.) are directed to satisfy the consumers.
MODERN CONCEPT OF MARKETING
Focus on Customers’ need

Means Coordinated marketing efforts

Ends Profits through customers’

satisfaction
Nature & Scope of Marketing
Nature of Marketing
1. Economic Process: The exchange of goods and services as well as the creation of
different utilities are the main objectives of marketing. It covers those activities related to
the creation of time (availability of goods and services when consumers want them), place
(availability of goods and services where consumers want them) and possession (ability to
transfer title to goods or services from marketer to buyer) utilities. It is the process by which
an organization relates creatively, productively and profitably to the marketplace.
2. Satisfaction of Consumer Demand: With the creation of proper utility for goods and
services, marketing makes them suitable for satisfying consumer demand. It is usually
called the art of creating and satisfying customers while earning profits.
3. Dynamic Process: Marketing is considered to be a dynamic process because it exhibits
an uninterrupted flow of activities concerning production and distribution of goods and
services. From the perspective of the systems approach, marketing is looked upon as a
dynamic process in order to create styles and standard of living of the consumers, which
are known to continuously change over time.
4. Function of Search: Marketing is responsible for searching for new markets, new
customers and their demands, continuously and uninterruptedly. Through the observation
of environmental factors, marketing should look for opportunities, as the same product is
not treated uniformly in the same market for an indefinite period of time.
5. Social Responsibility: The functions of marketing should not be executed in a manner
that the social responsibility is evaded, i.e. the customers are deceived or confusion is
created in the society. Social responsibility in promoting includes ensuring more
endeavours on drawing in customers who need to have a constructive outcome with their
purchases.

Marketing generates revenues that are managed by financial people and used by the production
people in creating products (goods or services). The challenge of marketing is to generate those
revenues by satisfying consumers' wants at a profit and in a socially responsible manner.
1. First, marketing is a dynamic and matching process by nature. It is both the starting and
finishing point of a business activity. Marketing is essentially concerned with forecasting
and creation of utility value; even ideas.
2. Second, the focus of marketing lies not on the consumers but on their predispositions and
mindset. It is the consumer psyche and process involved in understanding it that forms the
epicentre of marketing activity.
3. Third, it is an exchange function that primarily involves activities like concentration,
dispersion and equalisation. It suggests concentration of action on a widely dispersed
market place and respecting each consumer category in equal terms..
Marketing again is not limited only to business. It has a broad societal meaning.Any interpersonal
or inter-organizational relationship involving an exchange transaction is marketing by nature..
Hence it occurs any time one social unit strives exchange anything of value with another social
unit. In social perspectives therefore, the terms Marketer, Product and Market, all assume much
broader dimensions.

Scope of Marketing
1. Marketing Research: It is a tool used for decision making about the marketing mix’s
elements (i.e. the product, price, promotion and place). Research has to be carried out in
order to identify the customer’s needs, their tastes and preferences, their interests,
economic position, their paying capacity and effectiveness of certain advertisements.
Market research aims at adapting products to the desires of buyers.
2. Pricing: Pricing is extremely important since it directly affects an organization’s sales and
profits. While deciding the price of the product a number of factors have to be kept in mind
like the cost of production, paying capacity of the customer, industry demand, competitor’s
prices and the target profit margin.
3. Advertising and Sales Promotion: In this era of tough competition, sales promotion and
advertisements help to make the customer aware about the product, makes him curious
about the product and thus promote sales. Through advertising marketers are able to
position their products in the minds of the customer using various media like newspapers,
magazines, television, radio, hoardings, window display and internet etc.
4. Channels of Distribution: Distribution channels are an integral part of a complex system
that has evolved from cultural and social patterns in order to facilitate exchange
transactions. There are various media of distribution like retailers, wholesalers,
department stores, chain stores, super markets etc. A number of factors have to be borne
in mind while selecting the medium of distribution like perishability, price of the product,
size and weight, after sales service etc.
5. After-Sales Service: The furnishing of after sales service is very critical for the satisfaction
of the customers. Free repairs, return or exchange of the product during the guarantee
period if the product proves defective or worthless, etc. are included in after-sales service.

Objectives of Marketing
1. Satisfaction of Human Wants:
Marketing aims to identify, understand, and satisfy the diverse needs and wants of
consumers. By offering products or services that meet customer needs, businesses aim
to create value and build customer satisfaction.
2. Profit Maximization:
One of the primary objectives of marketing is to contribute to the overall profitability of
the business. This involves generating revenue through effective sales and managing
costs efficiently.
3. To Develop the Marketing Field:
Marketing also has an objective to contribute to the development and evolution of the
marketing field itself. This includes staying abreast of new trends, technologies, and
consumer behaviors, and adapting strategies to the changing business landscape.
 4. Effective Distribution of Products:
Ensuring that products or services reach the right customers at the right time and place
is a crucial marketing objective. Effective distribution involves logistics, channel
management, and strategic placement to maximize accessibility and convenience for
consumers.
5. To Find Sources for Further Information on Market Problems:
Marketing involves continuous monitoring of the market environment. Seeking and
analyzing information about market problems, challenges, and opportunities enables
businesses to make informed decisions and adapt their strategies to changing
conditions.
6. To Take Appropriate Actions in the Course of Actions:
Marketing is a dynamic field, and objectives include the ability to respond quickly and
appropriately to market changes. This might involve adjusting marketing strategies,
launching new campaigns, or adapting products/services to better meet customer
needs.

FEATURES OF MARKETING
1. Creation of Utilities: Marketing shapes products to meet consumer needs, creating
value through form, place, time, and possession utilities.

2. Generation of Revenue: Marketing drives sales, attracting new customers and

contributing to the financial success of businesses.

3. Delivery of Standard of Living: Marketing communicates product quality and

innovation, enhancing the overall standard of living for consumers.

4. Distribution of Goods and Services: Marketing efficiently manages distribution

channels and logistics to deliver products and services to consumers.
Importance of Marketing
Marketing is important to the business, consumer as well as the society. This is evident from the
following points :
IMPORTANCE TO SOCIETY:
1. Delivers Standard of Living:
Marketing ensures that consumers have access to a variety of products and services, contributing to
an improved standard of living by meeting diverse needs and preferences.
2. Connects Producers and Consumers:
Marketing serves as a bridge between producers and consumers, facilitating the exchange of goods
and services. It helps producers understand consumer needs and preferences, while also informing
consumers about available products.
3. Increases National Income:
By promoting the exchange of goods and services, marketing stimulates economic activity, leading to
increased production and sales. This, in turn, contributes to the growth of national income and
economic prosperity.
4. Provides Employment Opportunities:
The marketing industry itself and the activities it stimulates create numerous job opportunities. From
advertising and sales to market research and logistics, marketing plays a key role in generating
employment.
5. Helps Maintain Economic Stability:
Marketing activities contribute to the overall stability of the economy by promoting a steady flow of
goods and services. Consistent demand and supply balance contribute to economic stability.
IMPORTANCE TO FIRM:
1. Helps in Increasing Profits:
Marketing strategies are designed to attract customers, increase sales, and ultimately boost the
firm's profitability. Effective marketing can lead to higher revenue and profit margins.
2. Helps in Business Planning and Decision Making:
Market research and analysis conducted during the marketing process provide valuable insights.
This information aids in strategic business planning and decision-making, helping the firm adapt to
market trends and changes.
 3. Connecting Link Between Production and Consumption:
Marketing ensures that the goods and services produced by a firm reach the right consumers. It
establishes a connection between what a firm produces and what consumers need or desire.
4. Helps to Improve Productive Efficiency:
Through feedback from marketing efforts, firms can identify areas for improvement in their
products or services. This continuous feedback loop helps enhance the firm's productive efficiency.
5. Creates Revenue:
Marketing activities directly contribute to revenue generation by attracting customers and driving
sales. Effective marketing campaigns can lead to increased market share and customer loyalty.
6. Provides a Channel of Communication:
Marketing facilitates communication between the firm and its target audience. Whether through
advertising, public relations, or social media, it allows the firm to convey its messages and values to
consumers.

7. Increase the Volume of Sales:

By creating awareness, generating interest, and convincing potential customers of the value
of their offerings, marketing directly contributes to increasing the volume of sales for a firm.

Evolution of Marketing
1. Marketing as a concept has evolved through various stages over time. It was a journey from the
days of product orientation to consumer orientation with a small stopover through sales
orientation exercise. The stages through which the concept of marketing evolved over time may be
discussed in eight stages

2. First it was the stage of self sufficiency that highlighted the concept of need that existed naturally
with every human being. This provided the impetus to today's marketers to realize that need as a
characteristic is not something that evolved out of the modern lifestyle of the 21st century. It was
not recognized before because of the absence of organized external agency that could have
addressed those felt needs of primitive civilization in a much better way.
3. The stage of primitive communism refers to the process of distribution among the members of the
commune. Distribution is another vital step further culmination of the concept of marketing taking
a total shape.
4. Simple barter is another important stage in human civilisation that refers to the process of
exchange, another vital element in the concept of marketing.
5. It was through the stage of the local market that people learned to gather together at a given
address at a given point of time to transact business. However, uniformity in the medium of
exchange came into existence with one small development. It is when human civilization enters
the stage of the money economy.
6. The stage of early capitalism witnessed few wealthy civilians in the society trying to invest money in
manufacturing products of common use and appointing sales representatives to sell them within
the locality
7. Mass production is the stage that experiences a large oversupply of commodities calling for
branching out into new markets and at the same time concentrating on efficient distribution
mechanisms. In addition to this, advertisement became a necessity because of the need to
 introduce a product in an unknown market.
8. Finally with the stage of affluent society consumer choices became a priority . Marketing came
full circle. The process became for the consumer, by the consumer and of the consumer. The
concept of branding and brand positioning emerge for fitting a product profile into the choices of
the market segment. Consumers started to exercise their rights. This happened because of the
rapid speed of technological development and growing consciousness among the consumers
about' and what they need and what they do not need. Consumers became the king.

PRODUCTION CONCEPT:
● It aims at achieving the highest output possible through production efficiency, low costs and
mass distribution. Consumers prefer products that are widely available and inexpensive.
• The concept states that customers want basic products that are mass produced , widely available, and at
the lowest price.
• Companies must create standard products, which can be mass produced.
• Companies need to emphasize production efficiency and achieving
economies of scale.
• Mass distribution of products is the key to success.
• Applicable for electricity , water and mass urban transportation.
 Customer- Consumers will favor products that are available and highly affordable
 Goal- Improve production and distribution efficiency

PRODUCT CONCEPT :
● Consumers favour those products that offer the most quality performance or innovative features.
Marketers sometimes become too focussed on improving product quality to lure customers.
They must not forget that a product may not be successful unless it is priced, promoted and
distributed properly
● Consumer- Favor products with best quality, performance, innovative features.
● Goal-Improve product features in a continuous fashion
● Logitech makes very high-quality computer products such as keyboard, mouse, and webcams.
These high-quality products are priced higher but people still buy and they get almost free
advertisement from independent reviews.
1. Customers favour products that are highly engineered.
2. Customers favours products that are of high quality.
3. Customers are interested in innovative products.
4. Companies solely guided by this philosophy may end up creating fantastic products that offer no
real utility to customers.
 5. Concept of Marketing Myopia and Product concept goes alongside.
Marketing Myopia:
1. Developed by Theodore Levitt (1960), marketing myopia suggests that businesses will do better in
the end if they focus on meeting customer needs rather than on simply selling products. Marketing
myopia arises from (i) single-minded focus on selling while ignoring consumers, (ii) overly narrow
definition of consumers and their needs, and (iii) failure to recognize the changed societal context
2. Myopia can acquire several forms and manifests itself in organisations through the following
symptoms :
a) Narrow definition of business
b) Pre- occupation with Product or Technology
c) The belief that a product is forever and has no substitute.
d) Over obsession with Mass production.

SELLING CONCEPT:
Consumers will not buy the product in sufficient quantities unless aggressively pressurized (customers
and businesses, if left alone, will not buy enough of the company’s products). It is practiced most
aggressively with unsought goods (such as insurance, smoke detectors, encyclopaedias etc.) or when
the company is burdened with overcapacity.
● Customers if left alone, exhibit buying inertia.
● Customers have to be coaxed and cajoled into buying products.
● Companies must invest heavily in aggressive selling and promotion.
● Consumer -will not buy enough products unless seller undertakes large scale production and
selling effort.
● Goal -promote product,coax people into buying.
 ● Usefulness-unsought goods-encylcopedia,insurance
● Risk-Dissatisfied customers-will not buy again-will tell 10 people.

MARKETING CONCEPT:
 Customer- Buys product that best satisfies needs and wants
 Goal- Determine needs and wants of target markets
 Deliver the desired satisfaction more effectively and efficiently than competitors
 Risk- Short term focus w.r.t. larger social and ethical issues, Overlooks long term customer
welfare (fast food)
 Customer driven marketing- When customers know what they want
● It focussed on a customer-centric ‘sense-and-respond’ philosophy, where the goal is not to find the
right customers for our products, but to find the right products for our customers.
● Marketing concept can be understood from two perspectives:
(a) Reactive market orientation (understanding and fulfilling customers’ expressed needs), and
(b) Proactive market orientation (understanding and fulfilling customers’ latent needs).
● The marketing concept emphasizes three main principles:
(a) Customer-centric planning and implementation,
(b) coordination of all organizational activities, and
(c) coordinated marketing to achieve organizational goals.
The marketing concept of doing business rests on five pillars:
1. Target markets
2. Understanding customer needs
3. Creating products to satisfy those needs.
4. Integrated marketing to deliver those products to customers.
5. Profitability through customer satisfaction.
Understanding the needs of customers and meeting them through the firm’s product/offer is marketer’s
real job.
Marketing concept Selling concept
Marketing concept is a business orientation Selling concept is a business notion, which
which talks about accomplishing states that if consumers and businesses
organizational goals by becoming better than remain unattended, then there will not be
others in providing customer satisfaction. ample sale of organization's product.
Marketing includes selling and other activities Selling is confined to persuasion of consumers to
like various promotional measures, marketing buy firm’s goods and services.
research, after sales service, etc.
 It starts with research on consumer needs,wants, Selling starts after the production process is over
preferences, likes, dislikes etc., and continues and ends with the handing over the money to the
even after the sales have taken place. seller by the buyer.
Focus is on earning profit through maximization Focus is on earning profit through maximization
of customers’satisfaction. of sales.
Customer’s need is the central point around Fragmented approach to achieve short term gain.
which all marketing activities revolve.
It is an integrated approach to achieve long term All activities revolve around the product that has
goals like creating, maintaining and retaining the been produced.
customers.
Stresses on the needs of the buyer. Stresses on the needs of the seller.
Volume oriented Profit oriented
Compelling consumer's mind towards goods and Directing goods and services towards consumer's
services. mind.

HOLISTIC MARKETING CONCEPT:

• Holistic marketing concept is based on the development,design and implementation of marketing
programs , processes and activities that recognise their breadth and interdependencies.
• Socially responsible marketing - A very relevant concept which involves a broader concern for society at
large. It requires the business to follow certain business ethics and focuses on partnerships with
philanthropic and community organizations.
• Societal Marketing – It can be described as “ marketing concept expanded with societal orientation ,”
whereby a company can satisfy its customers and at the same time fulfill its responsibility to society.
● It is based on the development, design and implementation of marketing, programs, processes and
activities that recognizes their scope and interdependencies.
● It recognizes that ‘everything matters’ in marketing and that a broad, integrated perspective is
often necessary. Thus, holistic marketing attempts to recognize and reconcile the scope and
complexities of marketing activities.
● Holistic marketing includes the following components:
(i) Internal Marketing (marketing department, senior management, other departments):an element of
marketing, is the task of hiring, training, and motivating able employees who want to serve customers
well. It ensures that everyone in the organization embraces appropriate marketing principles, especially
senior management.

(ii) Integrated Marketing (communications, channels, products and services):occurs when the marketer
devises marketing activities and assembles marketing programs to create, communicate, and deliver value
for consumers such that “the whole is greater than the sum of its parts.” Two key themes are that
(1)many different marketing activities can create, communicate, and deliver value and
(2) marketers should design and implement any one marketing activity with all other activities in mind.

(iii) Performance Marketing (sales revenue, community, brand and customer equity, legal, ethics):
requires understanding the financial and nonfinancial returns to business and society from marketing
activities and programs.
Smart marketers go beyond sales revenue to examine the marketing scorecard and interpret what is
happening to market share, customer loss rate, customer satisfaction, product quality, and other
 measures. They also consider the legal, ethical, social
and environmental effects of marketing activities and
programs.

(iv) Relationship Marketing (customers, partners,

employees, financial community): a key goal of
marketing is to develop deep, enduring relationships
with people and organizations that directly or indirectly
affect the success of the firm’s marketing activities.
Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in
order to earn and retain their business.

Four key constituents for relationship marketing are customers,

employees, marketing partners (channels, suppliers, distributors, dealers, agencies), and members of the
financial community (shareholders, investors, analysts).
Societal Concept of Marketing
1. Marketing has evolved beyond the concept of consumer orientation. Today, marketing is more
societal in nature than simply a process of churning out umpteen numbers of variations in a
product category and adding to the frustration and indecision of the consumer.

2. Societal concept aims toward delivering the desired satisfactions of the consumers more
effectively and efficiently than the competitors in a way that maintains and improves the
consumers’ and society's well being. In fact societal aims to optimise the needs of consumer
with relation to what the producer offers. The entire concept of societal marketing
concentrates on two major dimensions:
a) The time dimension.
b) Breadth dimension.
3. Time dimension tries to inspire marketers to produce products that would help the society in
long run. In other words the products should take into account the long run interests of the
society, particularly in terms of protecting environment and promoting sustainable growth

4. Breadth dimension on the other hand promotes such responsibilities upon the Marketers
where they should take into account the task to abstain themselves from damaging the
interests of the nonusers of their products

5. Societal marketing includes some issues of social marketing, which aim towards marketing
certain ideas or concepts, intangible in nature but aimed towards bringing certain behavioural
changes within the society at large.

6. It aims to remove various superstitions, social taboos, false beliefs and evil practices within
the society for the benefit of both the society as well as the marketer.

7. Examples like literacy campaign, campaigns against drug addiction, campaigns against
superstitions, for health and family welfare against child labour, are some of the major areas
of social marketing, specifically, in Indian context.
 8. It holds that the organization’s task is to determine the needs, wants and interests of target
markets and to deliver the desired satisfaction more effectively and efficiently than
competitors in a way that preserves or enhances the consumers’ and society’s long-term well-
being. The societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices.

Marketing Mix Parameters

According to Philip Kotler “Marketing Mix is the set of controllable variables that the firm can use to
influence the buyer’s response”. The controllable variables in this context refer to the 4 ‘P’s [product,
price, place (distribution) and promotion]. Each firm strives to build up such a composition of 4‘P’s, which
can create highest level of consumer satisfaction and at the same time meet its organisational objectives.
Thus, this mix is assembled keeping in mind the needs of target customers, and it varies from one
organisation to another depending upon its available resources and marketing objectives. Let us now have
a brief idea about the four components of marketing mix.

JEROME MCCARTHY-grouped these ingredients into 4 categories known as 4P’s.

1.Product : Product refers to the goods and services offered by the organisation. A pair of shoes, a plate of
dahi-vada, a lipstick, all are products. All these are purchased because they satisfy one or more of our
needs. We are paying not for the tangible product but for the benefit it will provide. So, in simple words,
product can be described as a bundle of benefits which a marketeer offers to the consumer for a price.
While buying a pair of shoes, we are actually buying comfort for our feet, while buying a lipstick we are
actually paying for beauty because lipstick is likely to make us look good. Product can also take the form
of a service like an air travel, telecommunication, etc. Thus, the term product refers to goods and
services offered by the organisation for sale.

2.Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly priced and
made available at outlets convenient to them but the consumer is not made aware about its price,
features, availability etc, its marketing effort may not be successful. Therefore promotion is an important
ingredient of marketing mix as it refers to a process of informing, persuading and influencing a consumer
to make choice of the product to be bought. Promotion is done through means of personal selling,
advertising, publicity and sales promotion. It is done mainly with a view to provide information to
prospective consumers about the availability, characteristics and uses of a product. It arouses potential
consumer’s interest in the product, compare it with competitors’ product and make his choice. The
proliferation of print and electronic media has immensely helped the process of promotion.

3.Place: Goods are produced to be sold to the consumers. They must be made available to the consumers at
a place where they can conveniently make purchase. Woollens are manufactured on a large scale in
 Ludhiana and you purchase them at a store from the nearby market in your town. So, it is necessary that
the product is available at shops in your town. This involves a chain of individuals and institutions like
distributors, wholesalers and retailers who constitute firm’s distribution network (also called a channel
of distribution). The organisation has to decide whether to sell directly to the retailer or through the
distributors/wholesaler etc. It can even plan to sell it directly to consumers .

4.Price: Price is the amount charged for a product or service. It is the second most important element in the
marketing mix. Fixing the price of the product is a tricky job. Many factors like demand for a product,
cost involved, consumer’s ability to pay, prices charged by competitors for similar products, government
restrictions etc. have to be kept in mind while fixing the price. In fact, pricing is a very crucial decision
area as it has its effect on demand for the product and also on the profitability of the firm.

EXAMPLE:
1. Product:
● Apple iPhone is a high-end smartphone with sleek design, advanced
technology, and a range of features.
● Constant innovation, introducing new models with upgraded hardware,
software, and additional functionalities.
2. Price:
● Apple positions the iPhone as a premium product, pricing it higher than
many competitors.
● Utilizes a skimming pricing strategy for new models, gradually reducing
prices over time as newer models are introduced.
3. Place:
● iPhones are available through various distribution channels, including
Apple's own retail stores, authorized resellers, and online through the
official Apple website.
● Global availability ensures accessibility to consumers worldwide.
4. Promotion:
● Apple uses a combination of advertising, including TV commercials, online
ads, and print media, to create a strong brand image.
● Strategic partnerships with mobile carriers for exclusive deals and
promotions.
● Emphasis on word-of-mouth marketing and creating a strong community
of brand advocates.

Marketing Mix 4C’s

Marketing mix 4c's is one of the business tools that you should take advantage of as an internet marketer.
It’s a modern version of the 4Ps (Product, Price, Place, and Promotion).
The 4Cs (Customer/consumer value, Cost, Convenience, and Communication) enables you to think in
terms of your customers’ interests more than your own. From being business-oriented, you’ll become
customer-centric.
Here are some of the best tactics pros use to enjoy the benefits of the 4C's in marketing.

1. Customer
 Considerations include: Product/service worth, competitive advantage and market positioning.
  In order to use the 4Cs marketing concept, you must clearly identify your target customer and keep
in mind that you may be targeting more than one group. When thinking about your target
customer, keep these tips in mind:
 To position your product or service for maximum profitability, you must know what your target
customer needs and wants. It's important to consider how you are going to go about determining
what your customer wants.
 Your product’s market position is determined by the value/worth your customers perceive it to
have.
As you evaluate each element of the 4Cs, keep in mind that the customer drives your decision making

2. Cost
 Considerations include: Affordability, satisfaction and value.
 The 4Ps Matrix approaches cost considerations from the seller or manufacturer’s perspective,
whereas the 4Cs looks at cost from the consumer’s point of view. As you evaluate cost, consider
these guidelines:
 What price will you ask your customer to pay for your product or service? What research have you
done to determine if that figure is reasonable and affordable for your target?
 Is your product or service still profitable at that price your customer is able/willing to pay?
 What will the consumer’s total, or real, cost be for obtaining your product or service? Will the cost
of driving to your location significantly add to their expense? How much more will shipping charges
add to their bill? How will local, state and federal taxes impact the total cost of the product or
service?
 Keep in mind that price alone doesn’t usually convince the consumer to buy, so setting a low price
won’t necessarily drive sales and could hurt your bottom line.Does the value or benefit your product
or service offers the customer support its cost?

3. Communication
 Considerations include: Customer engagement, "What's in it for me?" (WIIFM), and social media.
 When assessing how you will communicate with your customer, keep these thoughts in mind:
 Engaging with your customer through meaningful communication builds customer confidence that
drives sales. You need a communication plan.
  Every customer wants to know “What's In It For Me” (WIIFM). Your communication with the
customer should answer that question.
 Social media is an amazingly powerful communication tool. You can use social media to “promote”
your products (as the 4Ps Matrix would advise) but you can also use it to ask your customers for
their insights. Finding out what your customers like and dislike about current products and learning
what they want allows you to develop products and services they’ll be more likely to purchase.
Create polls, track “Likes” and ask for comments.
 Remember that you must adapt your communication approach to each of your targets. What you
say and where and how you say it is unique to each group.
4. Convenience
 Considerations include: Purchasing barriers and online sales.
 In today’s fast-paced world, convenience is valuable. Don’t underestimate its influence on your
customer’s decision to buy. Make it easy for him or her to buy from you by considering these
points:
 What barriers might the customer face when trying to locate or purchase your product or service?
What are you going to do to reduce or remove these challenges?
 Whether you have a web-based business or operate a brick and mortar one that offers online sales,
your website must be easy to navigate. Ask yourself: Can the customer find what they are looking
for? Can they move from product selection to checkout with just a few clicks? Are product
descriptions detailed enough for the customer to make a purchasing decision?
 Consider offering your product through multiple outlets or use a distributor. Your profit margin
may take a bit of a hit, but making your product more convenient could mean more sales.
 If a customer has a question during the purchasing process, what kind of customer support do you
offer?
Have you thought of creating an app or a mobile edition of your website? Doing so puts your product or
service in the hand of the consumer virtually 24/7.
4 Ps vs 4 Cs: According to Bob Lauterborn, 80 percent of new products fail each year,
because of an incorrect mind-set. He has hence offered a replacement to the traditional 4 Ps
with his 4 Cs, from a buyer’s perspective. They are customer, cost, convenience and
communication.

MARKETING ENVIRONMENT
1. Marketing do not operate in a vacuum; they operate in an environment.
2. Marketing Environment is the sum total of all external and internal factors that influence a
business. You should keep in mind that external factors and internal factors can influence each
other and work together to affect a business. For example, a health and safety regulation is an
external factor that influences the internal environment of business operations. Additionally, some
 external factors are beyond your control. These factors are often called external constraints.
3. To lead an organization efficiently we must know where our company is situated, what are the
outside influences and the inside ones.
4. The marketing environment comprises of the various actors and forces outside the marketing
activities that directly or indirectly affects its ability to build and maintain successful relationships
with its target customers.
5. It offers a combination of strengths, weaknesses, opportunities and threats to the marketers.

6. The marketing environment can be classified under two heads

(i) Micro environment (these comprise of variables that the organization deals with day in and
day out. Here, the elements are largely controllable by the marketer)
(ii) Macro environment (this includes all factors that can influence the entire industry.These
factors are largely uncontrollable by the marketer.)

Basis Micro-Environment of Marketing Macro-Environment of Marketing

Meaning Internal environment of an organization External environment of an organization
Nature Relatively less complex to perceive Relatively more complex to perceive
Marketer’s The marketer interacts with other The marketer interacts with the
Task functional areas of the organization elements prevailing outside the
organization
Extent of Factors may be controlled to a large extent Factors remain largely beyond the
Control by marketers control of marketers
Function Factors reveal the capabilities of an Factors may create an opportunity or
organization to exploit the opportunities pose a threat to the marketing activities
or to combat the threat through its of an organization
marketing activities

Marketing Environment: Importance

1. Planning essential: It is necessary for the management of the company to understand the
importance of marketing environment astutely as it helps in planning of the business operations
such as planning the nature and features of the new products and services to be launched in the
market. it also helps in planning of various marketing and promotional strategies so as to match the
offerings of the company to the current marketing environment.
2. Better understand customers: The various factors of marketing environment such as political
influences, advancements in the realms of technology, increase in the market share of the
competitor’s brands, and change in the government rules and policies have an effect on the tastes
and preferences of the customers. There is a possibility that even the loyal set of customers leave
the brand of their choice and go for the products and services offered by the competitors owing to
their evolving tastes.
3. Tap new trends: Business is known for its volatile nature as the dynamics keep on changing at a
very fast pace with the change in the policies of the government authorities, the onset of
competition from the domestic and international brands, and customers opting for the new and
innovative trends in the market. It is necessary for the brand to understand, tap, and embrace the
new trends that are ruling the market in order to stay relevant and consistent amidst the changing
 dynamics.

4. Better understand competition: A company shall be able to survive and thrive in the competitive
market by keeping a detailed eye on the competitors by checking and understanding that what are
the features and nature of their offerings, levels of customer service experience provided by them,
marketing and promotional strategies, steps opted to retain customers such as loyalty programs,
etc.
5. Foster innovation: A company can be empowered to conceive an innovative line of products and
services to its customers as per contemporary technological advancements, positive impact on the
business with the fruitful government policies, relaxing norms on the tax procedures, and other
such external factors that helps carve a distinctive identity in the marketplace.

Dimensions of Marketing Environment (Macro-Environment)

The macro environment involves a set of environmental factors that is beyond the control of an
organization. These factors influence the organizational activities to a significant extent. Macro
environment is subject to constant change. The changes in macro environment bring opportunities and
threats in an organization.
▪ Demographic Environment: Demographic environment is the scientific study of human population
in terms of elements, such as age, gender, education, occupation, income, and location. It also
includes the increasing role of women and technology. These elements are also called as
demographic variables. Before marketing a product, a marketer collects the information to find a
suitable market for the product.
▪ Economic environment: Economic environment affects the organization’s costs structure and
customers’ purchasing power. The purchasing power of a customer depends on the current income,
prices of the product, savings, and credit availability. Economic factors such as employment, income,
inflation, interest rates, productivity and wealth influence the buying behaviour of consumers.
Economic Environment Overview:
1. Subsistence Economy:
 Characteristics: Nation consumes most of its own output.
 Impact on Purchasing Power: Limited external trade may restrict the variety of available
goods.
 Impact on Spending Patterns: Emphasis on essential needs; limited access to a diverse range
of products.
2. Industrial Economy:
 Characteristics: Rich markets for various goods and services.
 Impact on Purchasing Power: Greater economic development often leads to increased
purchasing power.
 Impact on Spending Patterns: Diverse spending patterns emerge as consumers have access
to a variety of goods.
3. Changes in Income:
 1980s (Roaring Eighties): Increased consumer confidence and spending.
 1990s (Squeezed Consumer): Economic challenges lead to a focus on value marketing.
 2000s: Consumers remain cautious, seeking value in their purchases.
 2010s and 2020s: Economic uncertainties may influence consumer spending habits.
▪ Natural environment: Natural environment consists of natural resources, which are needed as raw
materials to manufacture products by the organization. The marketing activities affect these natural
resources, such as depletion of ozone layer due to the use of chemicals. The corrosion of the natural
environment is increasing day-by-day and is becoming a global problem. Further, the geographic/
natural/ national boundaries protect the rights of products from which it originates (country-of-origin).
▪ Political/ Legal environment: Political and legal environment consists of legal bodies and
government agencies that influence and limit the organizations and individuals. Every organization
should take care of the fact that marketing activities should not harm the political and legal
environment prevailing in a country. The political and legal environment has a serious impact on the
economic environment of a country. The legal factors influence trade agreements between different
governments and states.

Laws, government agencies, pressure groups that influence and limit how a company may operate
Legislation regulates business and is increasing
To protect companies from e.g. unfair competition
To protect consumers from unfair business practices
To protect the interests of the society
Increased emphasis on ethics and socially responsible actions
Socially responsible firms try to “do the right thing” and gain advantage
Privacy in Internet marketing

▪ Socio-cultural environment: Socio-cultural environment comprises forces, such as society’s basic

values, attitudes, perception, and behavior. This includes institutions and other forces that affect the
basic values, behaviours and preferences of the society, which in turn has an effect on consumer
marketing decisions. These forces help in determining that what type of products customers prefer,
what influences the purchase attitude or decision, which brand they prefer, and at what time they buy
the products. The socio-cultural environment explains the characteristics of the society in which the
organization exists.

▪ Technological environment: It consists of those forces, which affect the technology and which can
create new products, new markets and new marketing opportunities. It is vital for competitive
advantage as it is a major driver for product differentiation. Technology contributes to the economic
growth of a country. Organizations that fail to track ongoing technological changes find it difficult to
survive in today’s competitive environment. Technology acts as a rapidly changing force, which creates
new opportunities for the marketers to acquire the market share.

Dimensions of Marketing Environment (Micro-Environment)

The micro marketing environment encompasses certain forces that are part of an organisations marketing
process, but remain external to the organisation. Although the micro marketing environment can be
complex by nature, the company has an element of control over how it operates within this environment.
1. Company/ Organization: One of the most important aspects of the micro environment of an
organization is the self-analysis of the organization itself. It must understand its own strengths and
weaknesses, objectives and goals of the business, and resource availability, and must remain customer-
centric in a very holistic manner. It includes the top management, finance team, research and
development team, purchase, operations and all other departments in an organization.
2. Suppliers: It provides raw material to produce goods and services. Suppliers can influence the
profit of an organization because the price of raw material determines the final price of the product.
Organizations need to monitor suppliers on a regular basis to know the supply shortages and change in
the price of inputs.
3. Marketing Intermediaries: It helps organizations in establishing a link with customers. They help in
promoting, selling, and distributing products. Marketing intermediaries include the following:
o Resellers: It purchases the products from the organizations and sell to the customers. Examples of
resellers are wholesalers and retailers.
o Physical Distribution System: It includes warehousing, transportation agencies, shipping companies,
purchase agents etc.
o Marketing Agencies: It promotes the organization’s products by making the customers aware about
benefits of products. An advertising agency is an example of marketing agency.
o Financial Intermediaries: It provides finance for the business transactions. Examples of financial
intermediaries are banks, credit organizations, and insurance organizations.
4. Customer Markets: Customers buy the product of the organization for final consumption.
Customer markets comprise of individuals and households that buy goods and services for personal
consumption. These goods and services may include FMCGs, perishable food items (such as packed meals,
fruits and vegetables), consumer durables/ white goods and electronic items (PCs, gaming consoles etc.).
The main goal of an organization is customer satisfaction. The organization undertakes the research and
development activities to analyze the needs of customers and manufacture products according to those
needs.
5. Competitors: It helps an organization to differentiate its product to maintain position in the
market. Competition refers to a situation where various organizations offer similar products and try to
gain market share by adopting different marketing strategies. The key to ensuring success in market
competition is to either follow or pre-empt the competitors.
6. Public: A public is any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objectives. It comprises of environmentalists, financial institutions, citizen action
groups, media persons, social activists, employees etc. Companies must put their primary energy into
effectively managing their relationships with their customers, distributors and suppliers. Their overall
success will be affected by how other publics in the society view their activity.

Technological state (R+D):

Technology can bring millions to one company and take millions from another. Organizations on the
frontier usually experience a boom, with many following, but some rivals may go bankrupt. A good
manager has to be aware of change and embrace technology to gain an edge on competition

Social-Cultural environment
This is a very important but also very diverse category. Think of a company in China and a company in
Hungary. A Hungarian company only has to produce for a potential market of about 10 million. A Chinese
company has a potential market of 1.3 billion., which is 130 times as much! That alone is a huge
difference, and we haven't even touched cultural differences. For example in India, McDonalds probably
wont sell any hamburgers made from beef because they don't eat that there. A manager has to keep all
these in mind when leading an organization!

OPEN & CLOSED SYSTEMS

There are two types of systems in organizations: closed systems and open systems.
An open system interacts with its environment through giving and receiving information.
Closed systems are closed off from the outside environment, and all interaction and knowledge is
transmitted within the closed system only.
Closed systems can hamper growth since the flow of information stays within the system and has no
chance to interact with or build on knowledge from the outer environment.