Unit:1 Introduction to Marketing Fundamentals

Meaning and Definition of Marketing

●​ Definition:​
Marketing is the process by which companies create value for
customers and build strong customer relationships to capture value
from customers in return.
●​ Key Aspects:
1.​ Creating Value: Understanding customer needs and delivering
products or services that meet or exceed expectations.
■​ Example: Apple creates value with its ecosystem of
products like iPhones, iPads, and Macs, which integrate
seamlessly.
2.​ Customer Relationships: Fostering loyalty through excellent
customer experiences.
■​ Example: Amazon Prime builds strong customer
relationships with fast delivery, exclusive content, and
discounts.

Scope of Marketing

1.​ What Is Marketing?​

Marketing involves identifying customer needs, designing products or
services to meet those needs, pricing them appropriately, distributing
them efficiently, and promoting them effectively.
○​ Example: Coca-Cola’s marketing includes product innovation
(e.g., Coke Zero Sugar), global distribution networks, and
advertising campaigns like "Share a Coke."
2.​ What Is Marketed?
○​ Goods: Tangible physical products.
■​ Example: Toyota markets vehicles by emphasizing
reliability, innovation, and fuel efficiency.
○​ Services: Intangible activities or benefits.
■​ Example: Netflix markets its streaming service as a source
of diverse, on-demand entertainment.
○​ Events: Occasions organized for a purpose.
 ■​ Example: FIFA markets the World Cup as a global
celebration of soccer, attracting fans and sponsors
worldwide.
○​ Experiences: Memorable interactions or moments.
■​ Example: Disneyland markets itself as "The Happiest Place
on Earth," offering magical family experiences.
○​ Persons: Individuals who build their brand image.
■​ Example: Elon Musk markets himself as a visionary
innovator to support his ventures like Tesla and SpaceX.
○​ Places: Locations for tourism, residence, or investment.
■​ Example: Dubai markets itself as a luxury tourist and
business destination.
○​ Organizations: Companies, institutions, or nonprofits.
■​ Example: UNICEF markets its campaigns to raise funds for
global child welfare initiatives.
○​ Ideas: Social or environmental causes.
■​ Example: Greenpeace markets the idea of environmental
conservation through campaigns against deforestation and
pollution.
3.​ Who Markets?
○​ Companies: Businesses selling goods and services.
■​ Example: Samsung markets its smartphones globally with
cutting-edge technology and strong advertising campaigns.
○​ Nonprofits: Organizations promoting causes.
■​ Example: WWF markets campaigns to raise awareness
about endangered species.
○​ Individuals: Personal branding and self-promotion.
■​ Example: A YouTube influencer markets themselves to
grow their audience and attract sponsors.

Evolution of Marketing Concepts

1.​ The Production Concept:

○​ Focus: Efficient production and distribution to make goods
affordable and widely available.
○​ Example: Henry Ford’s Model T, which was produced in large
volumes and sold at low prices to make cars accessible to the
masses.
2.​ The Product Concept:
○​ Focus: Quality, performance, and innovation.
 ○​ Example: Sony’s emphasis on cutting-edge technology, like 4K
televisions or noise-canceling headphones.
○​ Risk: Companies might overlook whether customers want or
need these improvements.
3.​ The Selling Concept:
○​ Focus: Aggressive sales and promotion to ensure products are
sold.
○​ Example: Life insurance companies often rely on aggressive
selling to convince potential buyers of the need for policies.
4.​ The Marketing Concept:
○​ Focus: Identifying and satisfying customer needs better than
competitors.
○​ Example: Starbucks focuses on creating a personalized coffee
experience, emphasizing customer satisfaction and ambiance.
5.​ The Holistic Marketing Concept:
○​ Focus: Integrating all aspects of marketing to create consistent
value.
○​ Examples of Holistic Marketing Elements:
■​ Internal Marketing: Ensuring employees understand and
align with the brand.
■​ Example: Google fosters an employee culture of
innovation and customer-centricity.
■​ Integrated Marketing: Coordinating tools like advertising,
PR, and digital campaigns.
■​ Example: Apple’s synchronized product launches,
retail experiences, and ads.
■​ Relationship Marketing: Building long-term loyalty.
■​ Example: Amazon Prime’s membership model
encourages repeat customers.
■​ Social Responsibility Marketing: Prioritizing societal and
environmental good.
■​ Example: Patagonia markets its commitment to
environmental sustainability through recycled
materials and activism.

Core Marketing Concepts

1.​ Needs, Wants, and Demands:

○​ Needs: Basic human requirements like food, clothing, and
shelter.
■​ Example: A person needs clean drinking water.
 ○​ Wants: Shaped by culture and individual preferences.
■​ Example: A person in Japan might want sushi, while
someone in Italy wants pasta.
○​ Demands: Wants backed by purchasing power.
■​ Example: A customer with the means to buy chooses a
Tesla Model S over other cars due to its features.
2.​ Offerings and Brands:
○​ Offerings: A combination of goods, services, and experiences
that create value.
■​ Example: Airbnb combines accommodations and unique
travel experiences.
○​ Brands: Distinctive symbols, names, or designs that represent a
product or company.
■​ Example: Nike’s swoosh logo and "Just Do It" slogan
convey athletic excellence and inspiration.
3.​ Value and Satisfaction:
○​ Value: Customer’s perception of benefits relative to costs.
■​ Example: Costco provides value by offering high-quality
products in bulk at lower prices.
○​ Satisfaction: How well a product meets or exceeds expectations.
■​ Example: Customers are highly satisfied with Amazon’s
efficient delivery and hassle-free returns.
4.​ Marketing Channels:
○​ Communication Channels: Platforms to deliver messages.
■​ Example: Coca-Cola uses social media, TV ads, and
packaging to communicate its brand.
○​ Distribution Channels: Ways products are delivered to
customers.
■​ Example: Walmart distributes goods through its retail stores
and online channels.
○​ Service Channels: Supporting customers post-purchase.
■​ Example: Apple offers support through its Genius Bar in
stores and online resources.
5.​ Supply Chain:
○​ Includes all processes from sourcing raw materials to delivering
the final product.
■​ Example: Zara’s fast-fashion supply chain ensures rapid
design, manufacturing, and distribution of trendy clothing.
6.​ Competition:
○​ Direct Competitors: Companies offering similar products.
 ■​ Example: Pepsi and Coca-Cola compete in the soft drink
market.
○​ Indirect Competitors: Companies offering substitute products.
■​ Example: Coffee brands like Starbucks compete indirectly
with soft drinks.

Marketing Environment

1.​ Microenvironment:​
Factors that directly affect a company’s ability to serve customers:
○​ Customers, suppliers, intermediaries, competitors, and publics.
○​ Example: For Tesla, key suppliers (e.g., battery manufacturers)
and competitors like BMW shape its microenvironment.
2.​ Macroenvironment:​
Broader societal forces that impact the market:
○​ Demographic: Population characteristics.
■​ Example: Aging populations in developed countries create
demand for healthcare products.
○​ Economic: Economic conditions affecting purchasing power.
■​ Example: Recession leads to increased demand for budget
brands like Walmart’s Great Value products.
○​ Natural: Environmental factors.
■​ Example: Companies like Unilever adopt sustainability
practices in response to climate change.
○​ Technological: Innovations influencing markets.
■​ Example: The rise of 5G technology boosts demand for
compatible smartphones.
○​ Political/Legal: Government policies and regulations.
■​ Example: Stricter emissions laws influence automakers to
invest in electric vehicles.
○​ Cultural: Social norms and values.
■​ Example: Increased interest in veganism creates demand
for plant-based foods like Beyond Meat.