Semester I 104

GC 04 – Basics of Marketing

Compulsory Generic Core Course

Credits FA SA Marks
50 100
3 50

Dr. Vinod N.Sayankar

1. Introduction to Marketing: Evolution of marketing in India from ancient times to the
present day. Definition & Functions of Marketing- Scope of Marketing, Core concepts of
marketing –Customer Delight, Customer loyalty, Concepts of Markets, Marketing V/S
Market, Competition, Key customer markets, Brick & Click Model, Functions of
Marketing Manager, Linkage of Marketing functions with all functions in the
organization, Company orientation towards market place: Production - Sales – Product-
Marketing –Societal – Relational, Holistic Marketing Orientation, Selling versus
marketing, Marketing 1.0 to Marketing 6.0, Concept of Marketing Myopia, Digital
Natives, informed Vs Distracted customers, Integrating Traditional Marketing, digital
Marketing and Sustainable Marketing, Digital Transformation in Marketing: AI, big data,
and machine learning transforming marketing strategies, Customer Experience (CX),
Sustainable Marketing
Suggested Text Books:

• Marketing Management, Philip Kotler, Kevin Lane Keller,

Abraham Koshy, Mithileshwar Jha, Pearson
• Marketing Management, Rajan Saxena, TMGH
• Marketing, Lamb Hair Sharma, Mc Daniel, Cengage Learning

Suggested Reference Books:

• Principles of Marketing, Philip Kotler, Gary Armstrong, Prafulla

Agnihotri, Ehasan Haque, Pearson
• Marketing Management- Text and Cases, Tapan K Panda, Excel
Books
• Marketing Management, Ramaswamy & Namakumari,
Macmillan.
• Marketing Whitebook
• "Indian Marketing: Cases and Concepts" by S. Neelamegham
Evolution of marketing in India from ancient times to the
present day
•Ancient times: Traders competed to sell luxury goods to the wealthy and royal.
•Industrial Revolution: Technological advances made goods more widely available
to the public, leading to the term "marketing" being used in the late 19th century.
Marketing evolved in India through four eras:
• 1940-1970: Management and advertising associations and business schools
were formed with the involvement of American players.
• 1970-1990: Marketing became more prominent in corporate discourse, and
firms began to employ marketing managers.
• 1990-present: Marketing became even more prominent in public and
corporate discourse, alongside a consumption boom in India.

1983: Maggi Noodles became an overnight success.

1984: Hum Log, Doordarshan's first soap opera in color, was launched.
1990: The internet became a new medium for marketing, with the launch of
websites and internet advertising.

Marketing has evolved from being manufacturer-focused to being customer-centric.

Present day, marketing is about building relationships, earning customer trust, and
targeting a niche audience.
Definition & Functions of Marketing-

Marketing

• Form of communication between a business house

and its customers

• With the goal of selling its products or services to

customers

• Goods are not complete products until they are in

the hands of customers
Dr. Philip Kotler defines marketing as -

• The science and art of exploring, creating and

delivering value to satisfy the needs of a target
market at a profit.
• Marketing identifies unfulfilled needs and
desires.
• It defines, measures and quantifies the size of
the identified market and the profit potential.
• It pinpoints which segments the company is
capable of serving best and it designs and
promotes the appropriate products and services.
 FUNCTIONS OF MARKETING
Research & Development To identify the size, behavior, culture, gender, demands etc
Function
Buying Function To assist the purchase and supply department by sending
specifications of the materials

Standardization To achieve uniformity in the product

Grading The marketer can get higher price for quality product
-
Packaging To protect the goods from damage in transit and to facilitate easy
transfer of goods to customers
Labeling Part of a product which contains information about the producer
and the product.
Branding Means giving a distinct individuality to a product.
Raymond , Airtel, Sony, Lux, Nirma etc.
Pricing Price is influenced by cost of product and service offered, profit
margin desired, prices fixed by rival firms, government policy,
etc.
To make known to consumers about the availability of products
Promotion Function in the market
FUNCTIONS OF MARKETING

Physical Distribution To transfer ownership of goods to customers and also making

available goods at the right place and time.

Transportation Facilitate the movement of persons, goods and services from

one place to another.

Warehousing To meet the expected demands of consumers, goods are

produced or procured well in advance and stored in
warehouses till they are transferred to customers
Possible loss due to a fall in prices and the losses from
Risk- taking function spoilage, depreciation, obsolescence, fire and floods etc.

Customer Support
Services These services provide maximum customer satisfaction and
develop brand loyalty for a product.
 Scope of Marketing
Study of Consumer • To be familiar with the expectations and expenditure patterns of the
Behavior consumer in general.
• Understanding of what like to purchase? When do that? How much
expense?
Identify Wants and • Streamlined product launch and satisfy the user demand.
Requirements • Requires a complete understanding of the consumer lifestyle.
Planning & Product • To determine the correct branding strategy that addresses consumer
Development demands and desires.
Pricing and Policy • To identify the correct pricing.
Determination – Existing competition in the market and the expenditure pattern of
the target customer
Distribution • To identifying the proper distribution channel for the product is vital
to optimise company’s return of interest.
• To ensure the desired amount of sales, the distribution line must
ensure wider target group outreach at the minimum cost.
Promotion • Marketers can use a mix of online and offline marketing channels to
promote the product or service.
Consumer • Every product or service is created and distributed in the market with
Satisfaction the end goal of satisfying the user’s demand or making their life
easier.
Marketing Control • Marketers perform an in-depth audit to determine the utility of the
 Shaped by Backed by an ability to pay
Wants Demands
one’s society e.g. Pizza Eg: BMW
Burgar etc
Customer Delight
Means surprising a customer by exceeding their expectations. Creating
a positive emotional reaction.

Purpose of Customer Delight

1. Make customers loyal. Finding new customers costs 4 to 9 times
more time and money than reselling to an existing client. retain as
many clients as possible.
2. When all other elements are correct, clients accord less importance
to price
3. Clients talk positively about product, brand or shop, word of mouth.
Delighted clients can be a valuable source of advertisement for a
company.
Gifts
A quick way to build customer delight is to offer a gift. Gifts make
customers feel appreciated and valued. They show you care about them
and are willing to go above and beyond to make them happy.
Customer Loyalty

• When customers reward a company with repeat business over time.

• Loyal buyers consistently choose to do business with a particular brand and often
defend it against its competitors.

• Loyal customers are brand champions: Happy customers boost brand by

leaving good reviews, telling friends and family, posting on social media about
their ratings.
• Loyal customers spend more: Repeat customers trust your brand and will spend
more in the checkout line.
• Loyal customers are more valuable than new customers: Retaining customers
is much more cost-effective than acquiring new ones. Merely a 5-percent increase
in customer retention can boost profits by 25 to 95 percent .
• Loyal customers are easier to sell to: A repeat customer is more likely to buy
from you again. The more loyal customers you have, the easier it is to repeat
sales, and the less you have to spend on conversion tactics.
• Loyal customers are more likely to forgive you for a mistake: 74 percent of
consumers say they will forgive a company for its error after receiving excellent
service.
Loyalty
Status
Hard Core
10

Split Loyals

Shifting Loyals

Switchers
Concepts of Markets

• Refers to a set up where potential buyers and sellers can meet to exchange goods
or services in any way.
Traditional
• A physical location or place, like a bazaar or a shopping mall.
• According to the products being sold. Example: cotton market, iron market, share
market
• Based on geographical locations, like a local market or international market
• By the types of buyers involved, example: consumer market, industrial market etc
• The quantity of goods transacted between parties like a wholesale market or a retail
market
Modern World
• In the world of e-commerce and start-ups, a market is no more just a meeting point
for buyers and sellers. It actually represents a set of all the potential buyers in
an environment.
• In case of launching a new product, market will be every potential buyer of the said
product, wherever they are.

• It is not restricted to a geographical location, or to the meeting of buyers and sellers.

Marketing V/S Market
Market Marketing
An environment for the transaction of goods The set of activities aimed at facilitating these
and services transactions
To facilitate exchange To identify and meet customer needs
Customer oriented. Where customers make Business oriented. Involves strategies to
purchase decisions influence customer behavior
Refers to a specific place or area where trading Wider concept that includes market research,
happens product development, distribution, sales, and
customer service
Value is realized through the exchange of Value is created through the development and
goods and services for money promotion of products or services that meet
customer needs
Communication between buyers and sellers Strategic communication to influence buying
behavior
Changes with consumer preferences, Changes based on a company's strategies and
competitive forces business goals
Crucial for setting a business strategy Executing the business strategy
Competition in Marketing

• The rivalry between existing companies, services or products

that exists within a specific market.

• Differentiate themselves from the other market competitors.

• Rivalry can have a positive effect.

• Can influence positive industry changes, better products and

services and increased innovation.

• Can also create unfavourable conditions for businesses that can't

remain competitive.

• Company be more competitive in its industry.

 Key Customer Markets

Business to Consumer (B2C)

• Businesses sell products or services directly to consumers.

• Retail market online store to purchase mobiles or groceries,packet
Food, juices, dresses, etc.,
• Consumer behaviour is often driven by marketing, brand
recognition, and cost.

Business to Business (B2B)

• Transactions between businesses, such as a manufacturer and

wholesaler or wholesaler and retailer.
• Relationships in B2B markets are longer-term.
• Reputation of the seller and their value matters a lot.
• Limited advertising
• Sold from one business to other business
Key Customer Markets

Consumer to Consumer (C2C)

• One consumer sells directly to another, typically through online

platforms.

• The C2C market has grown significantly with the internet’s rise,
facilitating easy peer-to-peer transactions.

Customer to Business (C2B)

• Where individuals offer products or services to businesses.

• For example, an influencer offering promotion services to brands

or a freelancer developing software for a company.
• In Customer to Business markets, as the customer, set price, and
businesses respond to offer.
Brick & Click Model

• The brick-and-click model is a business model that allows

companies to sell products through various channels both
physical stores and online stores i.e. hybrid approach.
• The term "brick" refers to the physical store ( physical shop)
• "click" refers to the online store ( e-business).
• This model is sometimes referred to as click-and-mortar or
omnichannel retail.

Principles of Brick-and-Click Store

- A small, mid-size, or big business, the principles tend to be the

same.
- Operational flexibility to purchases and deliveries
- Enhanced customer experience
- Exponential brand growth (to a wider target audience)
Advantages And Disadvantages Of Brick-and-Click Store
Advantages :

• Can reach more clients by providing in-enterprise and online

channel buying experiences;
• Real-time analytics from website shop can help improve in-
enterprise experiences;
• Offer solutions based on consumer preferences, can buy either
online or in-enterprise.

Disadvantages :

• Operation costs can go overboard pretty quick, to manage both

online and tangible enterprises
• This model can be pretty frightening for new businesses due to a
steep learning curve
• Requires more time and commitment before the model eventually
becomes successful in terms of profitability.
Functions of Marketing Manager

• To work with top management.

• To assist the top management in marketing plans and policies
• Supervise and coordinate business activities
• Identify Potential Markets.
• Evaluate the Product
• Launch new product or services
• Select the Channels of Distribution
• Create a market plan
• Study the Economic and Political Environment

Responsibilities of Marketing Manager

• Responsibilities towards Enterprise

• Responsibilities towards Employees
• Responsibilities towards Society
• Responsibilities towards Customers
Linkage of Marketing Functions with all Functions in the Organization

Research and To identify customer needs and preferences

Development
Purchasing Required knowledge of supply chain, invoice and inventory
procedures and transportation and logistics issues.

Production/ Responsible for producing right products in right quantities at

Manufacturing right time for right cost.

Operations Used for creating and providing services. Example: In a hotel,

front-desk people, doormen, waiters and waitress ie.,managing
the process of converting the input into output.
Finance Focuses on evaluating profit on different business actions
Marketing Executives: Focus on asking budgets for
advertising, sales promotions and sales force.
Supply Chain Planning for expedite the product delivery within time frame
Quality Control To Check the quality during manufacturing process as per
standard.
 Company Orientation Towards Market Place: Production - Sales – Product-
Marketing –Societal – Relational
Production • Consumers favour those products that are widely available and low in cost.
• Focus is on efficiency and wide distribution.
Eg, – Maruti Udyog Ltd. At the time of launch of M800

Product Consumer will favour those products that offer superior quality, innovation,
performance features.
Eg.- Honda City , Chitale Bhakarwadi , Apple Mobile , Philips Oven

Selling Focus is on aggressive selling & promotion effort.

Marketing Integrate marketing activities towards determining & satisfying needs/ wants of
target market more effectively than competition.
Societal Consciousness of social services or social awareness.
Eg.- Chemical companies – Effluent management systems.
Use of Bio- degradable paper bags in lieu of plastics.
Two way (reusable) soft drinks bottle in lieu of disposable bottles.

Relational • Focus on building relationships with customers

• Focus on understanding and meeting customer needs
Holistic Marketing Orientation
• Each person from sales to operations to HR to marketing and others, work towards
one common goal.
Features of Holistic Marketing Philosophy
Common Goal - All parts of the business focus on a single goal to provide a great
customer experience.
Aligned Activities - All activities, processes, and communication that occur within the
business should be aligned towards the achievement of the common goal.
Integrated Activities - All activities done within the business should be designed and
integrated to provide a seamless and consistent customer experience.
Raymond’s Marketing Mix
Marketing Mix Description
Elements
A diverse range of products, including readymade garments, designer wear,
Product
suiting fabrics, engineering products, and more.
Price A premium pricing strategy that reflects the high quality and exclusivity of
Raymond’s products.
Place Strong presence in both domestic and international markets through retail
stores and online platforms.
Promotion Utilizes print, digital, and social media channels to promote its products
and create brand awareness.
 MARKETING VS SELLING
MARKETING SELLING
Begins before sale and continues after Begins after production and ends with
sale. the sale.

Focuses on consumer needs. Focuses on seller’s needs.

Long term perspective aiming for Short-term perspective.
growth and stability.

Philosophy of business. Routine day to day physical process

Customer comes first, then product. Product comes first, then customers

Wider scope. Scope is narrower as compared to

marketing
Marketing 1.0 to Marketing 6.0
Marketing 1.0 • A concept that first emerged in the 1930s.
• The first stage of marketing, consists of several
models: production, product, selling, and marketing
• The main objective of this stage was to sell
products
• Boom in the needs of the consumers- provided a
need for Marketing

Marketing 1.0 two stages

a. Post World War Two (1950’s): Marketing was

focused on the product life cycle. Tools like Brand
Image, Marketing Segmentation were prominently
used during this stage.
b. Growing (1960’s): Marketing began to mature, and
it led to the development of the Four P's of
Marketing: Price, Product, Promotion and Place.
This facilitated more effective segmentation and
targeting.
Marketing 1.0 to Marketing 6.0

Marketing 2.0 • Prompt advancement in technology, liberalisation,

globalisation and privatisation led to a modification in
the social and business life
• The economic conditions and the demand for the
goods in the market enhanced the buyer power
• The utilisation of Web 2.0 and the collaborative
resources it offers to open interactive communication
channels between the consumers and businesses
• Web 2.0 Tools like, Facebook, YouTube, Wikipedia,
etc
• Utilised for developing strategies based on the
consumer based on the demographic and the current
trends in the market.
• Web 2.0 also helps in identifying and satisfying the
needs of the consumers, highlighting their feelings
• Focused on the 4 C’s of Communication (clarity,
coherence(correlation), control and
credibility(believability))
Marketing 1.0 to Marketing 6.0
Marketing 3.0 • Known as value-driven marketing applications
• Focus was slowly shifting to the emotional benefits of a product and
treating the consumer as a human who has a mind and emotions that can
impact sales.
• Globalisation is directly linked to technology, the exchange of goods and
services, technology, and flows of investment, people, and information
Marketing 3.0 -two main steps
a. Planning Phase
i. Consumer: recognition of mission priority over financial results, change
in consumers’ perception, attitudes, behaviours
ii. Business: defining corporate values, creating platforms where
employees can make a change
b. Implementation Phase
i) Consumer: using the discussion as a new type of advertising,
communicating brand personality based on values
ii) Business: demonstrating values through daily behaviours within the
company, focusing on aligning values with behaviours
Marketing 1.0 to Marketing 6.0
Marketing 4.0 • Explained as the “marketing approach that combines the online and
offline interaction between companies and consumers”
• Explained as the approach that merges artificial intelligence with other
technologies to increase productivity and increase human-to-human
connectivity, thus improving the customer interaction process
Customer Path Stages of Customer Behaviour
a. Aware
Learn about the brand from others or are exposed to the advertisements.
b. Appeal:
Become attracted to the brand and develop a set of prospective brands to
purchase from.
c. Ask:
Search about the product online and compare prices, features, etc.
d. Act:
Buy online or in-store and proceed to use the product for the first time.
e. Advocate:
Recommend the brand to others and keep using it themselves.
Marketing 1.0 to Marketing 6.0

Marketing 5.0 • Three Important Factors of Marketing 5.0: Technology, Sustainability

and Society
• In the Age of the Covid-19 pandemic, where distancing and masking is
the basic regime
• New ways of interacting with customers to keep business and capture
new clients and customers by maintaining that personal connection
• Information procured by AI and other technological channels (Data-
Driven Marketing) is inputted into the three different types of marketing
techniques that are prominent now: Predictive, Augmented and
Contextual This gives rise to “Agile Marketing”.
Marketing 1.0 to Marketing 6.0
Marketing 6.0 • Marketing 6.0 engages customers, with the significance of
sustainability themes and cutting-edge technologies.

• Addresses global concerns and evolving customer expectations.

• Marketing 6.0 goes one step further with Meta Marketing, which
blurs the lines between the digital and physical worlds to offer a
seamless and immersive customer experience.

• Powered by advanced technologies.

Internet of Things (IoT) – Real-time data from physical

surroundings is captured via the Internet of Things (IoT),
allowing for location-based and timely client engagement.

Artificial intelligence (AI) – By mimicking human cognitive

abilities,artificial intelligence (AI) enables customized one-to-one
marketing campaigns based on current data from Internet of
Things (IoT) sources.
Marketing 1.0 to Marketing 6.0

• Products (1.0)
• Interacting with people (2.0)
• Adopting human values (3.0)
• Embracing digitalization (4.0)
• Artificial intelligence driven (5.0)
• Immersive
Concept of Marketing Myopia

• When a company is so focused on quick sales and mass production refers to a

narrow-minded approach to marketing of goods it lose sight of its long-term
goals and customer needs

• This short-sightedness in a marketing strategy or business model prevents a

company from achieving long-term success.

• Examples-

• Kodak - Focused solely on producing film for cameras while failing to adapt to
the rising popularity of digital photography.

• Blockbuster, Video rental industry - Focused on their brick-and-click stores

failed to recognize the potential of online streaming services like Netflix.

Overcome Marketing Myopia Issues

• To focus towards understanding their target market
• Identifying customer needs
• Delivering value that goes beyond just the features of its own products.
Digital Natives

• Growing up in the digital age, surrounded by modern technology

such as computers, smartphones and the internet.

• Characteristics of Digital Natives

1. Proficiency in technology
2. Communication preferences
3. Multitasking
4. Educational preference

• Impact on the market

1. Technology Adaptation –
2. Changing Organisational Culture
3. Innovation and Creativity
Informed Vs Distracted customers

• Informed customers are generally better able to make informed

decisions about Purchasing.
• Distracted customers may consider fewer purchase options. The
abundance of information available to customers can also lead to
distraction and make it difficult for brands to capture their attention.
Integrating Traditional Marketing

• Traditional marketing is the oldest form of marketing.

• Use marketing channels, like newspapers, print ads, television, telephone,

and direct mail to connect with their audience and increase offline
promotions.

• Many benefits of effective traditional marketing tactics is that it’s

personalized.
For example, humans cherish and save the flyers given during advertising
campaigns.

• Some popular television ads, he will remember and probably sing the
song featured during the TV ads
Digital Marketing and Sustainable Marketing
Digital Marketing
• The use of websites, apps, mobile devices, social media,and other digital means to
promote and sell products and services
• Digital marketing channels have evolved since the 1990s
• Website Marketing - Websites represent the brand and its products and services in
a clear and memorable way
• Pay-Per-Click (PPC) Advertising - Enables marketers to reach audiences on news
and other websites and digital platforms through paid ads
• Content Marketing - To reach potential customers through the use of written,
visual, or video content that interests customer
• Email Marketing , Social Media Marketing
• Text Messaging , Video Marketing

Sustainable Marketing
• An approach to marketing that considers the environmental and social impact of a
company's products or services.
• It takes into account the needs of both the present and future generations
• Example - An innovative rainwater collection system eco-friendly
eco-friendly practices, solar energy, and regenerative environmental activities.
Digital Transformation in Marketing: AI, big data, and machine
learning transforming marketing strategies
Artificial Intelligence (AI)
• Artificial Intelligence (AI) is ornamental to the strategic decisions of consumers
and its competitive nature and has rapidly transformed the dynamics of the
emerging digital world.
• AI’s role has been increased in operational marketing, such as design and
selection of ads, customer targeting and customer analysis.
Big Data
• Big data in marketing refers to the vast and complex sets of information generated
by various sources, such as social media platforms, websites, and customer
interactions.
• It encompasses both structured and unstructured data and includes text, images,
video, and more.
Machine Learning
• Machine learning falls under the umbrella of artificial intelligence.
• Describes systems and software applications that are designed to “learn” based on
analyzing data sets.
Customer experience (CX):

• The sum total of customers' perceptions and feelings resulting from

interactions with a brand's products and services.

• Examples of touch points include –

1. Product offerings
2. Buying the product online or in person
3. Opening a product's packaging,
4. Reading the instruction manual,
5. Speaking to a customer service agent
6. Having the product repaired and exchanging the product for a different
model.