Introduction to Marketing
Unit 1
What is marketing?
• Organization’s planned process where the
needs are identified
• Target market is identified
• Satisfy their needs
• Retain the customers
Definition
• AMA, “ It’s a process of planning and
executing the conception, pricing, promotion
and distribution of ideas, goods and services
to create exchanges that satisfy individual and
organization goals.”
Marketing and Selling
• Meaning- needs and wants through exchange
• Inception- before production
• Subject matter- customer satisfaction, only
sales
• Scope- wider term, part of marketing
• Environment- internal & external, only
internal
Nature/Characteristics of marketing
• Customer centric
• Managerial function
• Dynamic process
• Economic function
• Continuous process
• Dual objectives – profit maximization &
customer satisfaction
Scope/Elements
Primary elements Auxiliary Elements
(additional)
• Goods
• Services • Consumer behaviour
• Experience • Marketing research
• Events • Customer satisfaction
• Places (video) • 4 p’s of marketing
• Persons
• Properties
• Information – eg:
truecaller
Core concept of marketing:
1. Business Enterprise
2. Environmental Scanning (needs, wants and
demand)
3. Product/Services (unique and different from
competitors)
4. Value & Satisfaction
5. Exchange process (selling)
6. Customer Relationship management
Marketing Environment
• MICRO FACTORS • MACRO FACTORS
(Internal) (External)
1. Employees 1. Political
2. Finance 2. Economic
3. R&D (improvise the 3. Legal
existing) 4. Socio-cultural
4. Suppliers 5. Demographics
5. Customers(stakeholder)
6. Distribution channels
7. Competitors
Marketing
orientation/concepts/philosophy
1 •Production concept
2 •Product concept
3 •Selling concept
4 • Marketing concept
5
• Societal marketing concept
6 • Holistic concept
The Production Concept
• Oldest
• Consumer prefers products that are widely
available and inexpensive
• Production orientation efficiency, low cost
and mass distribution
• Product quality is not given importance
The Product Concept
• Consumers favors products that are of better
quality & features
• Good product Good sales
“Good wine needs no push”
The Selling Concept
• Consumers if left alone wont buy enough of
the organisation’s products
• Sales orientation hard selling strategies
• Product Promotion Sales
“Goods are not bought but
sold”
The Marketing Concept
• Modern outlook of marketing begins
• Customer centered
• Understand the needs, wants and demands of
consumer produce
• Sense-and-respond philosophy
• Right product for customer not right customer
for product
Societal Marketing Concept
• Offshoot of marketing concept
• Catering not only to customer satisfaction but
also to social welfare
• Organizational goals without compromising
customer satisfaction and ensure social
welfare.
The Holistic Marketing Concept
• Interdependency, interconnected
• Holistic marketing recognizes that ‘everything
matters’
• Integration between various departments
Importance of marketing
• Transfer, exchange &movement of goods
• Financial success
• Value creation
• Strong brand
• Loyal customer base
• Facilitates decision making – helps on making
decisions, helps regulate production process.
Marketing Mix
Jerome Mc Carthy (1960) – concept of 4P’s
• Product- quality, shape, size, colour, weight,
durability, branding, packing, labelling, logos,
tag lines
• Price – pricing strategy, discounts, credit terms
• Place – warehouse, inventory, transportation,
channels.
• Promotion- advertisement techniques,
internet, public relations, sponsorships
Marketing Management
The analysis, planning, implementation, and
control of programs designed to create, build,
and maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives.
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Marketing management
Refers to planned activities that emphasis
on application of marketing resources &
techniques of a company in order to
identify, anticipate and satisfy customer
requirements profitably.
Marketing Management Involves:
• Demand Management : The organization has a
desired level of demand for its products. At any point
in time, There may be no demand, adequate
demand, irregular demand, or too much demand,
and marketing management must find ways to deal
with these different demand states.
• Building Profitable Customer Relationships : Beyond
designing strategies to attract new customers and
create transactions with them, companies now are
striving to retain current customers and build lasting
customer relationships.
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