UNIT-1

• The term marketing refers to the promotion of

purchasing or selling a product or service. It
consists of the actions that a firm engages in to
achieve this goal. Advertising, making sales,
and delivering items to end users or other
companies are all components of the marketing
process. In addition, affiliates do some aspects
of a company’s marketing on the company’s
behalf.
• Marketing is considered an art. A
comprehensive marketing plan addresses all
four aspects of marketing, which are referred to
as the “four Ps”: product, pricing, Place, and
promotion.
• Advertising is one of the primary methods
that those who work in a company’s marketing
and promotion departments utilize to attract
the attention of key potential audiences.
• Key Takeaways
• The term “marketing” refers to all the many
actions a firm does to advertise and sell its
goods or services to end users.
• Traditional marketing tactics, such as those
using television, radio, mail, and word-of-
mouth, used to be the primary focus of the this
industry.
• Email, social networking, affiliate and content
marketing are just some of the tactics now
available to businesses due to the rise of
digital marketing.
• The fundamental goal of marketing is to take a
product or service, determine its ideal clients,
and attract the attention of those customers to
the fact that the product or service is available
for purchase.
• According to American Marketing
Association," Marketing is the activity,
set of institutions, and processes for
creating, communicating, delivering,
and exchanging offerings that have
value for customers, clients, partners,
and society at large."
•
According to Philip Kotlar,"
Marketing is human activity directed at
satisfying needs and wants through
exchange processes."
NATURE/SCOPE/IMPORTANCE
OF MARKETING
 NATURE OF MARKETING
1) Managerial function

Marketing is identifying and satisfying consumers needs and wants

profitably. It requires managerial skills to identify needs with the help
of many techniques, research and satisfy them effectively by proper
planning and implementation. Therefore Marketing is a managerial
function.

2) Human activity

As we saw in above point, marketing is a need/ want satisfying function

profitably, it requires organizing skills, professional knowledge, resource
optimization and leadership ability to efficiently operating. And this
requires competent, qualified, skilled human resource, therefore
marketing is a human activity.

3) Economic function

Effective Marketing leads to economic development in the country.

Marketers optimize the opportunities and provide needs satisfying
products and services to consumer for a price or fees. Economic
development leads to growth in employment. Thus, it is a economic
function too.
4) Marketing is both Art & science

Marketing is a science, as it collects data abouy consumers, analyzing them with many
techniques, forecasting, testing the results of analyzing, etc.

Marketing is also an art, as leading workforce, creativity, innovation, effective promotion

ideas, consumer relations are not related to science, but related to manager's ability, his/
her art.

5) Consumer centric

Modern marketing is consumer centric in nature. All strategies and activities in marketing
are directed towards the consumer. Organizations are giving importance to concepts
such as customer satisfaction, relationship marketing, customer experience.

6) Market research

Successfully conducting Marketing activities require research about consumers, their

characteristics, needs, thinking. Nowadays, environment is changing so quickly, just like
in a snap.

So, companies should keep doing research about business environment to survive & be
successful in this ever changing environment.
• Scope of Marketing.
• Market Research
Market research is a systematic collection, analyzing, interpreting data about market components
such as cosumers, competitors, price prevailing, opportunities, threats etc.

2) Planning about product/service design

It consists of planning about how we are going to satisfy consumers. Design of product will be
decided in this plan. Its materials, size, features etc. are vital factors while performing in the
market.

3) Organizing Resources
This function is about gathering all resources in a proper structure to perform all activities. There
are resources such as Financial resource, Material resource, Human resource, Physical resource.
• Packaging & labeling
Packaging and labeling is vital for the product to be safe, more attractive, able to appeal,
informative to customers.

5) Branding
A brand is a name, sign, logo, symbol, mark etc. to differentiate the product from
competitors and other related ones in the market. An effective branding strategy will lead
to more customer attraction, increased sales, enhanced image, customer loyalty etc.

6) Pricing of product
Price is the exchange value which the marketer gets against his offerings. Proper
research should be done before taking pricing decisions.
• 7) Promotion of product
Promotion consists of communication between company and consumers regarding the
products. The objective is to spread awareness of product and to persuade the people
to buy their offering. Nowadays, online promotion is growing in a rapid speed.

8) Selling & distribution

After all the hard work, selling the product is most vital task, isn't it? It gives the company
earnings and profit for which they are putting efforts.

9) After sales services & customer relations

This point is important for customer retention. Increasing new customers is tougher task
than retaining present customers, it leads to customer loyalty, which indirectly attract
perspectives to actual customers.
• Importance of Marketing.
• 1) Need/ Want satisfaction
Marketing is all about identifying consumer's needs and wants either unfilled or new, and utilizing
those opportunities and satisfying them effectively and profitably.

2) Economic growth
Marketing leads to economic growth as it creates business opportunities which provides want
satisfying products or services through distribution system. All these activities helps in continue
flow of money in the economy.

3) Generates employment
As we saw in above point, marketing leads to economic growth, this continue growth creates new
business opportunities, which leads to growth in employment opportunities.

4) Enhance standard of living

We saw above marketing leads to economic growth and generates employment, so, it improves the
satandard of living of all those people who earn from marketing activities
• 5) Attain Goals
Every organization have some goals to achieve in long term. Effective marketing strategy
aids the management to earn good amount of profit continuously, which leads to
attaining long term goals.

6) Development of new products

Marketing is a continuous activity, and to be successful in long term, companies must
continuously modify their products, bring new ideas & products.

7) Enhanced product quality

Modern marketing tries to get customer feedback about the product, which helps
companies to regularly monitor product performance and it's quality.
• The term “marketing evolution” describes the various
stages that businesses have gone through as they looked
for fresh and creative ways to generate, maintain, and
grow income through customer sales and relationships.
• The evolution of marketing started during the
Industrial Revolution that took place in the 18th and 19th
centuries. We can trace the entire evolution of marketing
in four different phases-
• Production Orientation
• Product Orientation
• Sales Orientation
• Customer Orientation
• Social Orientation.
• 1. Production Orientation
• Till 1930s, there prevailed a strong feeling that
whenever a firm has a good product, it results in
automatic consumer response and that needed little or
no promotional efforts. This production-oriented
marketing concept was built on “Good wine needs no
push.” That is, if the product is really good and the
price is reasonable, there is no need for special
marketing efforts.
• Product
Orientation
• The attitude changed slowly and approach shifted from
production to product and from the quantity to quality.
The prevailing attitude of this period was that
consumers favor products that offer the most quality,
performance and innovative features and the mantra for
marketers was ‘A good product will sell itself’, so does
not need promotion.
• Sales Orientation Philosophy:
• The failures of the production orientation philosophy of
1930s paved the way for change in the outlook that was
possible during 1940s. This reshaped philosophy was
sales-orientation that holds good to a certain extent
even today.
• It states that mere making available the best product is
not enough; it is futile unless the firm resorts to
aggressive salesmanship.
• Effective sales-promotion, advertising and public-
relations are of top importance. High pressure
salesmanship and heavy doses of advertising are a
must to move the products of the firm.
• 3. Customer Orientation Philosophy:
• This philosophy was brought into play during 1950s and
points out that the fundamental task of business
undertaking is to study and understand the needs, wants,
desires and values of potential consumers and produce the
goods in the light of these findings so that consumer
specifications are met totally.The management is to be
guided by ‘long-range profit goals’ rather than ‘quick sales.’
• Social Orientation Philosophy:
• There has been a further refinement in the marketing
concept particularly during 1970s and 1980s.
Accordingly, the new concept goes beyond
understanding the consumer needs and matching the
products accordingly.
• This philosophy cares for not only consumer
satisfaction but for consumer welfare or social welfare.
Such social welfare speaks of pollution-free
environment and quality of human life.
Thus, a firm manufacturing a pack of cigarettes for
consumer must not only produce the best cigarettes but
pollution-free cigarettes; an automobile not only fuel
efficient but less pollutant one.
Core
Marketing
Concepts
• 1. Needs:
• Existence of unmet needs is
precondition to undertake
marketing activities. Marketing
tries to satisfy needs of
consumers. Needs are
physiological in nature. People
require food, shelter, clothing,
esteem, belonging, and likewise.
Note that needs are not created.
They are pre-existed in human
being. Needs create physiological
tension that can be released by
consuming/using products.
• 2. Wants:
• Wants are the options to satisfy a specific
need. They are desire for specific
satisfiers to meet specific need. For
example, food is a need that can be
satisfied by variety of ways, such as
sweet, bread, rice, sapati, puff, etc.
These options are known as wants. In
fact, every need can be satisfied by using
different options.
• Maximum satisfaction of consumer need
depends upon availability of better
options. Needs are limited, but wants are
many; for every need, there are many
wants. Marketer can influence wants, not
needs. He concentrates on creating and
satisfying wants.
3. Demand:
• Demand is the want for specific
products that are backed by the
ability and willingness (may be
readiness) to buy them. It is always
expressed in relation to time. All
wants are not transmitted in demand.
Marketer tries to influence demand by
making the product attractive,
affordable, and easily available.
Marketing management concerns with
managing quantum and timing of
demand. Marketing management is
called as demand management.
 4. Product:
• Product can also be referred as a
bundle of satisfaction, physical and
psychological both. Product includes
core product (basic contents or
utility), product-related features
(colour, branding, packaging,
labeling, varieties, etc.), and product-
related services (after-sales services,
guarantee and warrantee, free home
delivery, free repairing, and so on).
So, tangible product is a package of
services or benefits. Marketer should
consider product benefits and
services, instead of product itself.
• 5. Utility (value), Cost, and Satisfaction:
• Utility means overall capacity of product to
satisfy need and want. It is a guiding concept to
choose the product. Every product has varying
degree of utility. As per level of utility, products
can be ranked from the most need-satisfying to
the least need-satisfying.
• Cost means the price of product. It is an
economic value of product. The charges a
customer has to pay to avail certain services can
be said as cost. The utility of product is
compared with cost that he has to pay. He will
select such a product that can offer more utility
(value) for certain price.
• Satisfaction means fulfillment of needs.
Satisfaction is possible when buyer perceives
that product has more value compared to the
cost paid for. Satisfaction closely concerns with
fulfillment of all the expectations of buyer.
• 6. Exchange, Transaction, and Transfer:
• Exchange is in the center of marketing. Marketing management tries to
arrive at the desired exchange. People can satisfy their needs and wants
in one of the four ways – self-production, coercion/snatching, begging, or
exchanging.
• Exchange is a process, not event. It implies that people are negotiating
and moving toward the agreement. When an agreement is reached, it is
transaction. Transaction is the decision arrived or commitment made.
• For example, Mr. X pays Rs. 25000 and obtains a computer. There are
various types of transactions, such as barter transactions, monetary
transactions, commercial transactions, employment transactions, civic
transactions, religious or charity transactions.
• Transfer involves obtaining something without any offer or offering
anything without any return. For example, Mr. X gives gift to Mr. Y.
Transfer is a one-way process. But, pure transfer is hardly found in
practice. One transfers something with some unexpressed expectations.
Offer of money to beggar is to get the favour of God.
7. Relationships and Network:
• Today’s marketing practice gives more
importance to relation building. Marketing
practice based on relation building can be said as
relationship marketing. Relationship marketing
is the practice of building long-term profitable or
satisfying relations with key parties like
customers, suppliers, distributors, and others in
order to retain their long-term preference in
business.
• A smart marketer tries to build up long-term,
trusting, and ‘win-win’ relations with valued
customers, distributors, and suppliers.
Relationship marketing needs trust,
commitment, cooperation, and high degree of
understanding.
• Network is the ultimate outcome of relationship
marketing. A marketing network consists of the
company and its supporting stakeholders –
customers, employees, suppliers, distributors,
• 8. Market, Marketing, Marketer, and Prospect
• In marketing management, frequently used words are
markets, marketing, marketer, and prospects. A
market consists of all potential customers sharing a
particular need or want who might be willing and able
to engage in exchange to satisfy this need or want.
• Marketing is social and managerial process by which
individuals and groups obtain what they need and
want through creating and exchanging product and
value with others.
• Marketer is one who seeks one or more prospects
(buyers) to engage in an exchange. Here, seller can
be marketer as he wants other to engage in an
exchange. Normally, company or business unit can be
said as marketer.
• Prospect is someone to whom the marketer identifies
as potentially willing and able to engage in the
exchange. (In case of exchange between two
companies, both can be said as prospects as well as
marketers). Generally, consumer or customer who
buys product from a company for satisfying his needs
or wants can be said as the prospect.
• Production Concept
• The idea of the production concept – “Consumers will
favor available and highly affordable products.” This
concept is one of the oldest Marketing management
orientations that guide sellers.
• If a firm decides to operate based on this concept, it will try
to minimize production costs by making the production
process efficient. Moreover, for its products to be favored by
the consumers, it will try to make its distribution as extensive
Production Concept example:-
as possible.
You see, on Amazon or retail stores, the market is flooded with cheap
products from china. Everything from the cheap plastic product from
China is on your cart now.
The best example of the production concept is Vivo, the Chinese
smartphone brand. Their phones are available in almost every corner of
the Asian market. You can walk into any phone shop in Asia and can walk
out with the latest and greatest smartphone from Vivo.
• PRODUCT CONCEPT
• The product concept holds that consumers will favor products that
offer the most quality, performance, and innovative features.
• Manufacturers were facing excess production capacity and competition for
customers. They started realizing that buyers will favor well-made products
and are willing to pay more for product extras, and the product concept
started taking place in many producers’ minds.
• The product concept assumes that consumers will favor those products that
are superior in quality, performance, innovative features, designs, and so on.
• Product Concept example:-
• For example, suppose a company makes the best quality Floppy disk. But
does a customer need a floppy disk?
• She or he needs something that can be used to store the data. It can be
achieved by a USB Flash drive, SD memory cards, portable hard disks, etc.
So that the company should not look to make the best floppy disk; they
should focus on meeting the customer’s data storage needs.
• Selling Concept
• The selling concept holds the idea- “consumers will
not buy enough of the firm’s products unless it
undertakes a large-scale selling and promotion
effort.”
• Here the management focuses on creating sales transactions
rather than on building long-term, profitable customer
relationships.
• In other words, the aim is to sell what the company makes
rather than making what the market wants. Such an
aggressive selling program carries very high risks.
• Selling Concept example:-
• Every seen an ad online or TV commercial that you almost
can’t escape and hide from? The Selling Concept is in play.
• Almost all companies eventually fall into this concept.
“Mountain Dew” ads are hard to miss. If people like
Mountain Dew or not is debatable, but you can see that
PepsiCo is pushing it hard using ads.
• Almost all soft drinks and soda drinks follow the selling
concept. These drinks have no health benefits (they
actually harm your health more); you can easily replace
them with water ( the most available substance on the
earth).
• And the soft drink companies know it, and they run ads
24×7, spending millions,
• Marketing Concept
• The marketing concept holds- “achieving
organizational goals depends on knowing the
needs and wants of target markets and delivering
the desired satisfactions better than competitors
do.”
• Here marketing management takes a “customer first”
approach. Under the marketing concept, customer focus
and value are the routes to achieving sales and profits.
• The marketing concept is a customer-centered “sense
and responds” philosophy. The job is not to find the
right customers for your product but to find your
customers’ right products.
• Marketing Concept example:-
• Restaurants and startups do follow the marketing
concept. They try to understand the consumer and
deliver the best product or service, which is better for
the competition.
• ‘Dollar shave club’ is the best example. They changed
the Men’s grooming market. They have understood that
people are unhappy with their previous grooming
products and prices.
• Whereas other companies’ grooming products will cost
hundreds to buy for just one month. ‘Dollar shave club’
charges a couple of bucks a month with higher quality
products and home delivery convenience.
• Holistic Marketing
• Holistic Marketing is a concept, that considers business as one
entirety. As per this approach, the business is treated as a whole
wherein all the departments viz. R&D, Marketing, Finance and HR are
integrated and work as a group towards the marketing and sale of a
product.
• As a result, it proposes a shared aim and goal for all the activities and
for every person who is associated with it. It defines a strategy that
lays emphasis on viewing the marketing efforts of the firm as a
whole. So, it helps in developing a comprehensive or say holistic
marketing plan.
• This approach is quite popular these days. The reason for its
popularity is the increased competition in the market. All the
companies are doing their best to increase their customer base by
creating a positive image of their company in the market.
• Holistic marketing relies upon a 360-degree view approach.
In this, the firm considers ideas and suggestions from
everyone who is directly or indirectly related to the business.
This enables the firm to match up with the changing
marketing trends. Further, the approach gives equal
importance to every department which can contribute to the
success of the product.
• Components of Holistic
Marketing
Holistic marketing concept
• Holistic marketing is a business marketing philosophy which considers business and all
its parts as one single entity and gives a shared purpose to every activity and person
related to that business.
• A business is just like a human body: it has different parts, but it’s only able to function
properly when all those parts work together towards the same objective. Holistic
marketing concept enforces this interrelatedness and believes that a broad and
integrated perspective is essential to attain best results.
 Features of Holistic marketing concept
• A Common Goal
• Holistic marketing concept believes that the business and all its parts should focus
towards one single goal which is a great customer experience.
• Aligned Activities
• All of the services, processes, communication and other business activities should be
directed towards that common goal.
• Integrated Activities
• All activities should be designed and integrated in such a way so as to create a unified,
consistent and seamless customer experience.
• Why is Holistic Marketing important?
• Brand Building
• According to a study, intangible assets made up 84% of the S&P 500 market value in
2015 as compared to 1975 where they made up only 17% of the S&P 500 market
value.
• The customers’ mindset is changing. They believe in buying a brand and not the
product alone. Holistic marketing empowers the company to build a brand among all
its stakeholders.
• Consistency
• Consistency is important to stay in the market for long. Since holistic marketing
concept involves marketing the brand to all the stakeholders and through unified
communication strategies, consistency is maintained.
• Efficiency
• When every aspect of the business is taken care of, it becomes easier to reduce (and
even eliminate) repetition, become more efficient, and save company’s time and
money. The efficiency can also be seen in tapping opportunities and spotting potential
threats.
• Effectiveness
• Holistic marketing philosophy, by focusing on the big picture, creates a synergy that
effectively reinforces the brand message, brand image, and positions the brand
uniquely in the minds of the customers.