Marketing

Generally, Marketing is understood to mean the sale

and purchase of goods and services but it is too
view to understand it so. The term marketing is
much wider in nature and scope. It is not limited
only to sale and purchase of goods and services. It
means entire process of satisfying the needs of
consumers. It starts with discovery of needs and
wants of the consumers. Its starts with discovery of
needs and wants of consumers, and it continues till
the wants are satisfied.
Need :- Necessity. Something that is required to
survive or to sustain. For example:- Food, water,
shelter etc.

Want:- Desire. Things without which we can survive,

but we need them for higher satisfaction.

Demand :- willing and able to buy. Things that you

demand that thing.
 Definition

According to William J. stanton, “Marketing is a total

system of interacting business activities designed to
plan, price, promote and distribute want-satisfying
products and services to present and potential
customers”.

According to Prof. Malcolm McNair, “Marketing is the

creation and delivery of standard of living to society.”

According to Theodore Levitt, “ Marketing is getting &

keeping the customer.”
Marketing is not only about providing products or
services but also about providing changing benefits
to the changing needs and demands of the
customers. Marketing is thus the sum total of all the
activities and processes including creating,
communicating, delivering and exchanging offerings
that have value for customers, clients, partners, and
society at large.
 Nature of Marketing

1. Specialized Business Function

2. Socially Desirable Function
3. Integrative Function
4. Reflects The Business Mission
5. Adaptation to Environment Variables
6. Universal Function
7. Management Function
8. Consumer Orientation
9. Science as well as an art
10.System Approach
11.Social Approach
12.Dynamic Process
 Scope of Marketing

1. Good
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Organization
9. Information
10.Ideas
 Functions of Marketing

Marketing Functions

1. Transportation 1.Financing 1. Identifying

2. Storage and 2. Pricing opportunities
1. Buying warehousing 3. Risk – Bearing 2. Promoting
2. Assembling 3. Choosing and 4. Standardization Products and
3. Selling motivating 5. Marketing Services
channel of information 3. Planning
distributing 6. Managing Product Marketing
Activity
 Importance of Marketing

1. Importance of Marketing to the Society

a. Delivery of Standard of Living to the Society
b. Decrease in Distribution Cost
c. Increase in Employment Opportunities
d. Protection against Business Recession
e. Increase in National Income
2. Importance of Marketing to the Firm
a. Helpful in Business Planning and Decision-Making
b. Helpful in Increasing Profit.
c. Helpful in Communication between Firm and
Society.
 Marketing Versus Selling

Marketing is Simply the act of “bringing the Product

to market”. Selling on the other hand is the final
step which leads to close a sale, convert a
prospective buyer into a customer, or making a
conversion.
 Starting Point Focus Means Ends

Factory Factory Selling and Profit

Promoting through
Sales Volume

Market Customer Coordinated Profit through

Needs Marketing Customer
satisfaction
 Difference between Selling and Marketing

Basis of Selling Marketing

Difference
Emphasis On Product On Consumer Needs and Wants.
Approach Company Manufactures the Product Company first determines customers
first and then decides to sell it. needs and wants and then decides on
how to deliver a product to satisfy
these wants

Orientation Management is sales- volume Management is Profit- oriented.

oriented.
Planning Planning is Short-term oriented, in Planning is long-term oriented, in
terms of today’s products and terms of new products, tomorrow’s
markets. markets and future growth.

Need Stresses needs of seller Stresses needs and wants of buyers.

priority
Motive Sales Customer Satisfaction
Basis of Firm Oriented Market oriented
Orientation
Customers Selling Views customers as the last Marketing Views the customers as the
link in business. very beginning of a business.
 Marketing Management

Marketing Management is compound word “Marketing

plus Management”. Marketing is the total system.

Marketing is the total system of business activities

while management is the art of getting things done
in a coordinated and harmonious way.

According to Phillip Kotler, “Marketing management is

the process of planning and executing the
conception, pricing and promotion and distribution
of goods, services and ideas to create exchanges with
target groups that satisfy customer and
organizational objectives.”
 Objectives of Marketing Management

1. Creating New Customers

2. Satisfying the needs of customers
3. Enhancing the profitability of business
4. Raising the standard of living of people
5. Determining the marketing mix
 Process of marketing management

Setting Marketing Objectives

Analyzing Marketing Opportunities

Researching and selecting target markets

Designing marketing Strategies

Planning Marketing programmes

Organizing, implementing and Controlling Marketing effort

Marketing Mix
Marketing Mix is a set of marketing tool or tactics,
used to promote a product or services in the market
and sell it. It is about positioning a product and
deciding it to sell in the right place, at the right price
and right time. The product will then be sold,
according to marketing and promotional strategy.
The components of the marketing mix consist of 4Ps
Product, Price, Place, and Promotion. In the
business sector, the marketing managers plan a
marketing strategy taking into consideration all the
4Ps. However, nowadays, the marketing mix
increasingly includes several other Ps for vital
development.
• Product in Marketing Mix: A product is a commodity, produced or
built to satisfy the need of an individual or a group. The product
can be intangible or tangible as it can be in the form of services or
goods. It is important to do extensive research before developing
a product as it has a fluctuating life cycle, from the growth phase
to the maturity phase to the sales decline phase.

• Price in Marketing Mix: Price is a very important component of

the marketing mix definition. The price of the product is basically
the amount that a customer pays for to enjoy it. Price is the most
critical element of a marketing plan because it dictates a
company’s survival and profit. Adjusting the price of the product,
even a little bit has a big impact on the entire marketing strategy
as well as greatly affecting the sales and demand of the product in
the market. Things to keep on mind while determining the cost of
the product are, the competitor’s price, list price, customer
location, discount, terms of sale, etc.,
• Place in Marketing Mix: Placement or distribution is a very
important part of the marketing mix strategy. We should
position and distribute our product in a place that is easily
accessible to potential buyers/customers.

• Promotion in Marketing Mix: It is a marketing

communication process that helps the company to
publicize the product and its features to the public. It is the
most expensive and essential components of the
marketing mix, that helps to grab the attention of the
customers and influence them to buy the product. Most of
the marketers use promotion tactics to promote their
product and reach out to the public or the target audience.
The promotion might include direct marketing, advertising,
personal branding, sales promotion, etc.
What is 7 P of Marketing:
• The 7Ps model is a marketing model that modifies the 4Ps model. As Marketing mix 4P is
becoming an old trend, and nowadays, marketing business needs deep understanding of the
rise in new technology and concept. So, 3 more new P’s were added in the old 4Ps model to
give a deep understanding of the concept of the marketing mix.
• People in Marketing Mix: The company’s employees are important in
marketing because they are the ones who deliver the service to clients. It is
important to hire and train the right people to deliver superior service to the
clients, whether they run a support desk, customer service, copywriters,
programmers…etc. It is very important to find people who genuinely believe in
the products or services that the particular business creates, as there is a huge
chance of giving their best performance. Adding to it, the organisation should
accept the honest feedback from the employees about the business and
should input their own thoughts and passions which can scale and grow the
business.

• Process in Marketing Mix: We should always make sure that the business
process is well structured and verified regularly to avoid mistakes and minimize
costs. To maximise the profit, Its important to tighten up the enhancement
process.

• Physical Evidence in Marketing Mix: In the service industries, there should be

physical evidence that the service was delivered. A concept of this is branding.
For example, when you think of “fast food”, you think of KFC. When you think
of sports, the names Nike and Adidas come to mind.
 Marketing Environment

Environment
Environment literally means the surroundings,
external objects, influences or circumstances under
which someone or something exists. The
environment of any organization is the aggregate of
all the conditions events and influences that
surrounds and affects it. Since the environment
influences an organization in many ways, its
understanding is of crucial importance.
Marketing activities of a business firm are affected by
a large number of environmental factors that
surrounds the company. These factors or forces
influences the decision-making capability of
enterprise. The factors or forces are collectively
called marketing environment. It comprises those
forces, which have an impact on market and
marketing efforts of the enterprise.

According to Phillips Kotler, “ Marketing environment

refers to external factors and forces that affects the
company’s ability to develop and maintain
successful relationship with its targets customers.”
 Characteristics of Marketing Environment

1. Marketing Environment is complex

2. Marketing Environment is Dynamic
3. Marketing Environment is Multi-Faceted
4. Marketing Environment has a far-Reaching Impact
 Types of Marketing Environment

There are certainly various factors that have both

positive as well negative impacts over marketing
function of a company.

1. Internal Environment/Controllable elements

2. External Environment/ uncontrollable elements
 Internal Environment

a. Top Management
b. Research and Development
c. Purchasing
d. Financing and Accounting
e. Manufacturing
f. Company Image and Brand
 External Marketing Environment

a. Micro Environment

i. Supplier
ii. Customer
iii. Competitors
iv. Public

b. Macro Environment
i. Demographic Environment
ii. Economic Environment
iii. Physical and legal Environment
iv. Technical Environment
v. Social – Cultural Environment
vi. Political Environment
vi. International Environment
 Process of Marketing Environment Analysis

1. Monitoring the Nature of the Environment

2. Audit Environmental Influences
3. Identify key Competitive Forces through structural
Analysis
4. Identify Strategic Position
5. Identify Key Opportunities and Threats.
Significance of analyzing Marketing Environment

1. Knowledge of Marketing Environment is central to

Marketing Management.
2. Strategic Response to environment is possible only
with proper Environment Analysis.
3. Spotting the opportunities and threats.
4. Task involved in marketing Environment Analysis.
Steps in Consumer Decision Making

• Consumer decision making process involves the consumers to identify their

needs, gather information, evaluate alternatives and then make their buying
decision. The consumer behavior may be determined by economic and
psychological factors and are influenced by environmental factors like social
and cultural values.
• The consumer decision making behavior is a complex procedure and
involves everything starting from problem recognition to post-purchase
activities. Every consumer has different needs in their daily lives and these
are those needs which make than to make different decisions. Decisions can
be complex, comparing, evaluating, selecting as well as purchasing from a
variety of products depending upon the opinion of a consumer over a
particular product. This renders understanding and realizing the basic
problem of the consumer decision making process for marketers to make
their products and services different from others in the marketplace.
5 Stages of Consumer Decision Making Process

• The buying behavior model is one method used by marketers for identifying
and tracing the decision making process of a customer from the start to the
end. The process is categorized into 5 different stages which are explained
as follows:

Need Recognition
• Need recognition occurs when a consumer exactly determines their needs.
Consumers may feel like they are missing out something and needs to
address this issue so as to fill in the gap. When businesses are able to
determine when their target market starts developing these needs or wants,
they can avail the ideal opportunity to advertise their brands. An example
who buys water or cold drink identifies their need as thirst. Here; however,
searching for information and evaluating alternatives is missing. These
consumer decision making steps are considered to be important when an
expensive brand is under buying consideration such as cars, laptops, mobile
phones, etc.
Information Search

• The information search stage in the buyer decision process tends to change
continually as consumers require obtaining more and more information about
products which can satisfy their needs. Information can also be obtained through
recommendations from people having previous experiences with products. At this
level, consumers tend to consider risk management and prepare a list of the
features of a particular brand. This is done so because most people do not want to
regret their buying decision. Information for products and services can be obtained
through several sources like:

• Commercial sources: advertisements, promotional campaigns, sales people or

packaging of a particular product.
• Personal sources: The needs are discussed with family and friends who provided
product recommendations.
• Public sources: Radio, newspaper and magazines.
• Experiential sources: The own experience of a customer of using a particular brand.
Evaluation of Alternatives
• This step involves evaluating different alternatives that are
available in the market along with the product lifecycle. Once it
has been determined by the customer what can satisfy their
need, they will start seeking out the best option available. This
evaluation can be based upon different factors like quality,
price or any other factor which are important for customers.
They may compare prices or read reviews and then select a
product which satisfies their parameters the most.
Purchase Decision
• When all the above stages have been passed, the customer has
now finally decided to make a purchasing decision. At this
stage, the consumer has evaluated all facts and has arrived at a
logical conclusion which is either based upon the influence
from marketing campaigns or upon emotional connections or
personal experiences or a combination of both.
Post Purchase Behavior
• The purchase of the product is followed by post-
purchase evaluation which refers to analyzing as to
whether the product was useful for the consumer
or not.
• If the product has matched the expectations of the
customer, they will serve as a brand ambassador
who can influence other potential consumers which
will increase the customer base of that particular
brand. The same is true for negative experiences;
however, it can halt the journey of potential
customers towards the product.
• What Is the Industrial Market ?

The industrial market consists of business-to-business

sales. One business serves as a consumer,
purchasing goods or services from another
business. For example, Bussiness is a company that
provides cleaning, laundering, and other facility
service needs to various businesses. The company
services many different types of companies and
needs to work on its structure to improve efficiency
and increase profit.
 Importance of Industrial Marketing

➢ Deciding the target markets

➢ Finding out the needs and wants of the target
markets
➢ Developing products and services to meet the
requirements of those markets
➢ Evolving marketing programmes or strategies to
reach and satisfy target customers
Segmentation, Targeting, and Positioning
Definition
• Market Segmentation:
– Dividing a market into distinct groups with distinct
needs, characteristics,
or behavior who
might require
separate products
or marketing
mixes.
 1. Demographic segmentation

• Age
• Gender
• Ethnicity
• Income
• Level of education
• Religion
• Profession/role in a company
 2. Psychographic segmentation: The why

Psychographic segmentation is focused on your customers’

personalities and interests.

• Personality traits
• Hobbies
• Life goals
• Values
• Beliefs
• Lifestyles
 Geographic segmentation: The where

By comparison, Geographic Location is often one of the

easiest to identify, grouping customers with regards to their
physical location.

• Country
• Region
• City
• Postal code
 4. Behavioral segmentation: The how

Behavioral Segmentation, is possibly the most useful of all for e-

commerce businesses. 

• SPENDING HABITS
• PURCHASING HABITS
• BROWSING HABITS
• INTERACTIONS WITH THE BRAND
• LOYALTY TO BRAND
• PREVIOUS PRODUCT RATINGS
Advantage and Disadvantage of Segmentation

10 benefits of market segmentation

• Increase sales
• Increase the growth rate
• High profit
• Increase the market share
• Provide adequate marketing direction
• Facilitate proper marketing selection
• Helps the targeting and positioning
• Attract new customers.
• Provide a competitive advantage
Disadvantage of segmentation
• Cost Increase when the company attempts several segments of the market
• Expenditure on marketing when the company used different programs is
used.
STP Approach in Marketing
Steps in Market Segmentation, Targeting, and Positioning
Thank You