Unit 1

Introduction
Meaning of Marketing
• Marketing is the activities of an organization associated
with buying and selling product/ services. It is the social
process by which individuals and groups obtain what they
need and want through creating and exchanging products
and value with others.
• There are two concepts of marketing. They are narrow
concept and broad concept. Narrow concept of marketing
focuses on telling and selling not consumer satisfaction.
This concept emphasizes on production and selling of
goods.
• Profit maximization is the main objective of narrow
concept. There is no place of consumer welfare in the
narrow concept of marketing.
• On the other hand, broad concept of marketing
focuses on satisfying customer’s needs, not telling and
selling. Earning profit only after customer satisfaction .
• The renowned management guru Peter Drucker once
famously said, “ the aim of marketing always should
be able to make selling an unnecessary component.”
• Marketing insures the right product, in the right place,
at the right time, at the reasonable price for the benefit
of the customers.
• It creates place, time and ownership utilities.
Marketing deals with customers and acts to satisfy
their needs and wants.
Evolution of the Marketing Philosophies
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Social concept
• Holistic concept
1.Production concept
• The production concept is an old concept of marketing.
According to this concept, consumers will prefer
products that are widely available and inexpensive.
• It gives emphasis on mass production. It believes that
the consumers are conscious and sensitive towards
products and their brands, they are well informed
about substitute products and are attracted towards low
priced products.
• Thus, marketers believe on profit through production
efficiency.
• It gives emphasis on mass production and mass
distribution . Price regarded as a crucial factor.
• It gives emphasis on mass production and mass
distribution . Price regarded as a crucial factor.
• Marketers try to reduce product price through
production efficiency and improved technology. This
concept is useful to market expansion but there
remains a chance of poor quality of product/ services.

Starting Point……………….Factory
Focus………..……Mass Production
Means …………………Mass distribution
Ends……………….Profit through production
efficiency
2. Product Concept
• According to product concept of marketing, consumers
will favour those products that offer the most quality,
performance or innovative features.
• Marketers focus on producing superior products and
improving them over time.
• Profit through quality product is the objective of this
concept.
• Thus, marketers remain effortful in regular
improvement in quality of products to meet the needs,
wants and requirements of consumers in the product
concept of marketing.
• It requires research, innovation, performance efficiency and
skills. The aim of this concept is profit maximization through
quality product at a reasonable price.

Starting point……………………………….…..Factory
Focus…………………………………….quality product
Means………..Innovation and performance efficiency
Ends…………………..profit through quality product
3. Selling concept
• According to selling concept of marketing, consumers
will not buy products unless the company undertakes
promotional activities.
• This concept gives emphasis on mass selling and
promotional efforts such advertising, sales promotion,
personal selling and publicity rather than building
long-term profitable customer relationships.
• The selling concept is typically practiced with
unsought products such as insurance, blood donations.
this concept believes on, “ we sell what we make’.
4. Marketing concept
• The marketing concept is a new way of thinking about
the organization’s entire activities.
• The concept is based on the notion that the main task
of the organization is to know the needs, wants and
value of the target market then delivering products that
satisfy those needs and wants.
• The marketing concept believes that the key to
achieving organizational objectives lies in being more
effective than competitors in integrating marketing
activities towards determining and satisfying the needs
and want of the target markets.
Starting point……………..Market
Focus………………customers needs and interest
Means………………integrated marketing
Ends……………….profit through customer satisfaction
Fundamentals principles of Marketing concept/ four
pillars of Marketing concept
1. Target Market
2. Customer needs
3. Integrated marketing
4. profitability
1.Target market
• This concept clearly defines the target market. This
principle emphasizes that no organization-business or
non-business, big or small can operate in every market
and satisfy every category of needs.
2. Customer needs
• This concept focusses on needs and wants of
customers. It believes on “ we make what we can sell.
This concept is very practicable because organizational
effectiveness cannot be attained without the fulfilment
of customers’ needs.
3. Integrated marketing
This concept focuses on customer oriented integrating
marketing activities. Such activities bring effective co-
ordination on marketing efforts.
4. Profitability
• This concept considers the profit as the return of
customer satisfaction.
• It delivers the want satisfying products/ services at a
reasonable price as compared to the competitors. The
objective of this concept is profit through customer
satisfaction.
3. Integrated marketing
This concept focuses on customer oriented integrating
marketing activities. Such activities bring effective co-
ordination on marketing efforts.
4. Profitability
• This concept considers the profit as the return of
customer satisfaction.
• It delivers the want satisfying products/ services at a
reasonable price as compared to the competitors. The
objective of this concept is profit through customer
satisfaction.
Concepts Focus Means End/
objectives
Product Production Mass Profit through
concept orientation production production
Low cost efficiency
Product Product quality High quality Profit through
concept orientation performance quality product
innovation
Selling Seller need Heavy Profit through
concept orientation promotional high sales
activities volume
Marketing Customer need Integrated Profit through
concept orientation marketing customer need
satisfaction
Social concept Social responsibility
Responsible for Profit through
orientation social and customer and
ethical issues social well
being
Holistic Response to changes • Relationship Organizational
concept in the current marketing profits,
marketing • Integrated customer well-
environment marketing being, and
• Internal social well-
marketing being.
• Socially
responsible
marketing
Societal marketing concept
• The social concept is broad concept of marketing.
• The societal marketing concept believes that the
organization should deliver the superior value product
to the market that maintains or improves the
consumer’s and society’s well being.
• Company should aware on pollution control, equal
opportunity, after sales service, public awareness,
return on investment and so on.
• This concept maintains balance between wants
satisfaction, human welfare and profits.
Starting point…….Market
Focus…………..customer’s as well as social needs
Means……protecting customers and social well being.
Ends…profit through customer and social well-being.
6. Holistic concept:
• Holistic marketing concept is considered as newest
approach to marketing and the latest business concept.
• It originated as a response to fundamental changes,
globalization. Keen competition , internet
development, corporate social responsibility and so on.
• The concept recognizes that everything matters within
marketing.
• This concept is an integration of the marketing concept
and societal marketing concept with a focus on
relationship marketing.
• The holistic marketing concept is also based on four
broad themes/ Fundamentals principles of Holistic
Marketing concept
1. Relationship Marketing
2. Integrated Marketing
3. Internal Marketing
4. Social responsibility Marketing
1. Relationship Marketing
• Relationship marketing has the aim of building
mutually satisfying long-term relations with key
parties –customers, suppliers, distributors-in order to
earn and retain business.
• Customer retention and winning back lost customers
are the key strategy in relationship marketing.
2. Integrated Marketing
• The holistic marketing concept believes that there must
be a full integration of the marketing programs to
create, communicate and deliver superior value to
customers.
• The integration should be at the level of marketing
mix( four Ps).
• These 4ps program decisions should focus on
achieving the marketing objectives- profit with
customer satisfaction.
3. Internal Marketing
• The internal marketing concept is based on the notion
that everybody within an organization is a marketer. It
mainly involves hiring, training and motivating staff to
serve the customers well.
• The concept strongly recommends that the top
executives should first be trained on the customer-
oriented philosophy.
4. Social responsibility marketing :
• The holistic marketing concept is based on the societal
marketing concept that calls for socially responsible
marketing by taking seriously the ethical, legal,
environmental and social concerns of people and
society.
• It calls marketing to balance the interest of
organization, customers and the larger society in
performing its activities.
• It also works towards the social welfare by sponsoring
social events.
Marketing Management Concept
• Marketing management is the process of planning and
executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational
goals.
• Marketing management is the art and science of
choosing target markets and getting, keeping and
growing customers through creating, delivering and
communicating superior customer value.
Marketing Management Tasks
The task of marketing management revolves around two
major activities:
Demand Management
The demand management function of marketing
management is centred on three major activities:
1. Understanding demand
2. Stimulating demand
3. Servicing demand
1. Understanding demand:
2. Stimulating demand
3. Servicing demand
Understanding demand:
• Understanding the customer’s needs, wants and
demand is the first activity of marketing management.
• Marketing management usus efficient information
system to know and understand the market trends,
competitor’s products and strategies, customer’s needs
and preference, and the changes taking place in the
various aspects of the socio-economic life of people.
2.Stimulating demand:
• Stimulating demand for a product or service is
achieved through advertising, personal selling, sales
promotion, publicity, public relations, pricing,
packaging, branding and new product and service
offerings.
• Marketing is not expected to benefit unless customer’s
dormant needs are stimulated and turned into active
drives.
• Advertising provides customers with various reasons
to buy. Personal selling is able to persuade consumers
about the merits of the product
• Sales promotions provide immediate buying
incentives.
3. Servicing demand:
• Servicing the stimulated demand is a major marketing
management activity that is achieved through the
marketing channels and marketing logistics functions
such as supply chain management and physical
distribution management,
• Marketing channels provide convenient availability of
the product.
• Marketing logistics help the products physically move
through the channels.
Customer Relationship Management (CRM)
• Relationship marketing shifts attention from short-term
transaction and immediate profits toward a process of
creating customer value through building long-term
relationships with customers.
• Relationship marketing’s focus is not on immediate
sales, rather it is directed at building a large group of
satisfied and loyal customers.
• Customer retention and winning back lost customers
are the key strategies in relationship marketing.
Marketing challenges of the 21st century and firm’s
responses to the challenges:
Marketing firm face major challenges from the
consumers of the 21st century. Consumers have shown
the following challenging behaviour.
1. Expect higher quality
2. Expect better services
3. Brand parity
4. Decreased brand loyalty
5. Internet based information
6. Intelligent shopping
7. Increased price sensitivity
Marketing firms are facing following challenges from
new dynamism in the buying behaviour:
1. Intense competition
2. High promotion costs and low profit margins
3. Change in retail business
4. Direct marketing
Firm’s Response to the challenges
1. Customer relationship marketing
2. Target marketing customization
3. Customer database
4. Integrated marketing communication
5. Partnership marketing
6. Internal marketing
7. Information based decision making
8. Strategic alliances
9. Outsourcing
10. Benchmarking
11. Global
1. Customer relationship marketing:
• Marketing firms are refocusing their business process
from transaction marketing to relationship marketing.
• Transaction marketing emphasis on the number of
customer, immediate sales and immediate profits.
• Relationship marketing focuses on customer
satisfaction, retention and loyalty.
• It emphasizes on building long term relationship with
the customers.
• It is an effort to offer a variety of products focusing on
the customer’s needs so hat the customer purchases
maximum products from the same company.
2. Target marketing
• Target market is the people who are going to be buying
your products or services
• Marketing firms define their market segment more
accurately and specifically and operate within the
boundary of the defined segment. The concept of
selling to everyone has changed to selling well defined
target market.
3. Customization
• Every customer is unique with its set of demands or
needs. which is why it’s important for businesses to
identify that uniqueness and cater to each of them .
• This formula will make it easy for a business to thrive
and succeed in the long run.
• Marketing firms whenever and wherever possible are
trying to individualize and customize offers and
message to customers.
4. Customer database:
• Marketing firms’ today access, collect, store and use
personal data about customer’s demographics,
psychographics, their buying habits and preferences.
• This has given immense power to marketers to
understand their customers more accurately and
pinpoint their marketing efforts on a customer with a
very high success rate.
• This formula will make it easy for a business to thrive
and succeed in the long run.
• Marketing firms whenever and wherever possible are
trying to individualize and customize offers and
message to customers.
4. Customer database:
• Marketing firms’ today access, collect, store and use
personal data about customer’s demographics,
psychographics, their buying habits and preferences.
• This has given immense power to marketers to
understand their customers more accurately and
pinpoint their marketing efforts on a customer with a
very high success rate.
5. Integrated marketing communication
Brand image and value have become very powerful in
the 21st century. Marketers are blending several
communication tools to project a brand image and
personality of their efforts.
6. Partnership marketing
Marketing firms today emphasize on making the
suppliers and channel members as long-term partners
working for mutual benefits.
.
7. Internal Marketing
• Marketing firms are increasingly emphasizing on
reorienting and retraining all company staff including
CEO and other department employee to understand
customer’s needs and preference.
• The concept of every employee is a marketer is being
adopted across marketing organizations.
8. Information based decision making
• Marketing firms are changing their decision process
from intuition-based decision making to decision-
making based on hard data (facts) and information
about the marketplace.
9. Strategic alliances:
• In order to enhance organizational assets and
competencies marketing firms are going into alliances
with other companies to enter into strategic products
and markets.
• Firms even enter into alliances with competitors to
develop new offers and enter new markets.
10. Outsourcing :
Marketing firms are increasingly relying on other
companies to provide customer services.
11. Benchmarking:
According the method and processes of the most
successful companies( best practice) for creating and
delivering offers has gradually improved the quality of
services of marketing firms and made them more
competitive in the global markets.
12. Global :
• Marketing firms are increasingly focusing on the
global markets while working within their national
boundary.
• This has enlarged their market size and supported their
growth.
Components of marketing mix
1. Product
2. Price
3. Place
4. Promotion
1. Product Mix
• Product is one of the most important components of
marketing mix.
• Products are commodities and services that solve
problems and satisfy the needs of consumers. A
product can be tangible, such as a vehicle or a piece of
clothing, or intangible, such as a house cleaning
service.
• Product mix includes following major decisions:
2. Price Mix
Price is critical component of marketing mix.
It is the exchange value which a buyer pays for product/
services.
It directly affects the demand of product/ services.
The price of product is one of the elements which
generates revenues.
A marketing firm can change other mixes as and when
needed,
But changing price mix brings serious complexities
affecting competitor’s
3. Place or Distribution Mix
Place decisions mainly involve how to manage the flow
of products from the factory to the market.
It includes:
• Distribution channel
• Channel motivations
• Channel conflict management
• Physical distribution
4. Promotion Mix
Promotion mix includes determining the promotional
blend to popularize the use of the product in the target
market.
Promotion mix includes:
• Advertising
• Personal selling
• Sales promotion
• Public relation
• Direct marketing
Service Marketing Mix
Due to the unique nature of services that involves
intangibility, variability, three more mixes (3 Ps) people,
physical environment and process are added on the
original 4 Ps- product, place, price, and promotions.
Therefore, the service mix constitutes of 7Ps.
6.People:
• People are the critical part of the service mix as most
services are provided through human resources.
• The selection, training and motivation of employees
are the important activities in service marketing.
• Service marketing not only requires external marketing
through the use of 4 Ps but also effective internal
marketing.
• Internal marketing involves training and motivating
employees to serve the customers well.
• Service organizations also need to practice interactive
marketing- employees’ skill in effective talking to
service motives.
• How these people are dressed, their personal
appearance their attitudes and behaviors all influence
the costumers perceptions of the service
7.Process:
• Service process is a differentiation tool in service
marketing mix.
• Service providers can adopt a variety of delivery
processes and charge different price for their services.
• Differentiation implemented over the delivery process
can contribute to build an image for the service
organization.
• The image can also be used to communicate the
quality of service to customers.
8. Physical Evidence
• The environment in which the service is delivered and
where the firm and customer interact, and any tangible
components that facilitate performance or
communication of the service.
• The physical evidence of service includes all of the
tangible representations of the services – such as
brochures, letterhead, business cards, report formats,
and equipment, furniture, decorations.
 Product:
 The service product requires consideration of
the range of services provided, the quality of
services provided and the level of services
provided. Attention will also need to be given to
matters like the use of branding, warranties and
after-sale service. The service product mix of
such elements can vary considerably and may be
seen in comparisons of service range between a
small local building society and one of the
largest in the country; or between a small hotel
offering a limited menu range and a four star
hotel offering a wide range of meals.
Price considerations include levels of prices,
discounts allowances and commissions, terms of
payment and credit. Price may also pay a part in
differentiating one service from another and
therefore the customers perceptions of value
obtained from a service and the interaction of
price and quality are important considerations in
many service price sub mixes.
 Place:
 The location of the service providers and their
accessibility are important factors in services
marketing. Accessibility relates not just to
physical accessibility but to other means of
communication and contact. Thus the types of
distribution channels used (e.g. travel agents)
and their coverage is linked to the crucial issue
of service accessibility.
 4. Promotion:
 Promotion includes the various methods of
communicating with markets whether through
advertising, personal selling activities, sales
promotion activities and other direct forms of
publicity, and indirect forms of communication
like public relations.
 Inaddition to the traditional four Ps, the
services marketing mix includes people, physical
evidence, and process.
 5. People:
 Allhuman actors who play a part in service
delivery and thus influence the buyer’s
perceptions: namely, the firm’s personnel, the
customer, and other customers in the service
environment. All of the human actors
participating in the delivery of a service provide
cues to the customer regarding the nature of the
service itself. How these people are dressed,
their personal appearance their attitudes and
behaviors all influence the costumers
perceptions of the service.
 The service provider or contact person can be
very important. In fact, for some services, such
as consulting, counselling, teaching, and other
professional relationship – based services, the
provider is the services. In other cases the
contact person may play what appears to be a
relatively small part in service delivery, for
instance, a telephone installer, an airline
baggage handler, or an equipment delivery
dispatcher. Yet research suggests that even
these providers may be the focal point of service
encounters that can prove critical for the
organization.
 Physical Evidence:
 In other cases, such as telecommunication
services, the physical facility maybe
irrelevant..In this case other tangibles such as
billing statements and appearance of the repair
truck may be important indicators of quality.
Especially when consumers have little on which
to judge the actual quality of service they will
rely on these cues just as they rely on the cues
provided by the people and the service process.
Physical evidence cues provide excellent
opportunities for the firm to send consistent and
strong messages regarding the organization’s
purpose, the intended market segments, and the
nature of the service.
7. ProcessThe actual procedures, mechanism and
flow of activities by which, the service is delivered
the service delivery and operating systems. The
actual delivery steps the customer experiences, or
the operational flow of the service, will also
provide customers with evidence on which to
judge the service.
 Some services are very complex, requiring the
customer to follow a complicated and extensive
series of actions to complete the process. Highly
bureaucratized services frequently follow this
pattern, and the logic of the steps involved
often escapes the customer.
 Another distinguishing characteristic of the
process that can provide evidence to the
customer is whether the service follows a
production-line/standardized approach or
whether the process is an
empowered/customized one. None of these
characteristics of the service is inherently better
or worse than another.
 Rather,the point is that these process
characteristics are another form of evidence
used by the consumer to judge service. For
example, two successful airline companies,
Southwest in the United States and Singapore
E- Marketing
• E- Marketing is also known as electronic marketing or
i-marketing, web marketing, digital marketing, internet
marketing or e-commerce .
• It refers to the application of marketing principles and
techniques through electronic media and more
specifically the internet.
• E-marketing helps to have direct contact with every
ultimate customer individually.
• It also helps to maintain long term relationship with
profitable customers.
• E-marketing is the process of marketing products/
services through the internet. It is online shopping
• It helps to have a direct contact between customer and
producer through electronic media.
• E-marketing is suitable for means of transport, hotel
booking, airways ticket booking books, magazines,
clothes, equipment and so on.
• It builds direct, profitable and long term relationship
between producer and customers.
• E-marketing is direct marketing.
• It uses IT in the process of creating, communicating
and delivering value to customers.
• Importance of e-marketing
• in modern times where most of the work and
transactions are happening through online channels, it
becomes every important for marketers to reach out to
customers through right channels.
• Smartphones, tablets, smart TVs, laptops are being
used globally to run businesses and buy and sell goods.
• E-marketing helps in reaching out to your audience on these
channels along with traditional offline channels as well.
Sometimes for some offerings, e-marketing is the only
viable option.
In the times of pandemic, online marketing becomes
even more prominent when the offline or traditional
marketing channels cannot deliver the optimum return on
value.

1.-marketing is cost-effective. Compared to traditional

marketing channels, e-marketing is relatively inexpensive.
This makes it an attractive option for small businesses and
start-ups that have limited budgets.
2. E-marketing is fast and convenient. With e-marketing,
businesses can reach their target markets quickly and
easily. This is especially useful for businesses that want to
3.E-marketing is fast and convenient. With e-
marketing, businesses can reach their target markets
quickly and easily. This is especially useful for
businesses that want to launch new products or services.
4.E-marketing is personal. E-marketing allows
businesses to tailor their marketing messages to specific
individuals. This helps to create a more personal
relationship between the business and the customer

5.E-marketing is measurable. Unlike traditional

marketing channels, e-marketing provides businesses
with detailed data about their marketing campaigns. This
data can be used to improve future marketing efforts.
Green marketing
It is also known as environmental marketing and
ecological marketing.

 Green marketing is developing and selling

environmentally friendly goods or services. It helps
improve credibility, enter a new audience segment, and
stand out among competitors as more and more people
become environmentally conscious.
• Green marketing is environment friendly, sustainable
and socially responsible. According to the American
Marketing Association, ‘green marketing is the
marketing of products that are presumed to be
environmentally safe’.
• Green marketing is a part of the marketing which is
very important from the social, economical and ethical
point of view as it has motive of spreading awareness
among people about environmental issues.
• This is helping to maintain the environment clean and
green by producing eco-friendly products.
Importance of Green Marketing
1.Access to New Markets
The new culture of buying organic and eco-friendly
products has ultimately shifted the focus to the new
domain of marketing i.e. green marketing. A completely
new market of green consumers who are out there to buy
green products than non-green products.
2.Positive Public Image
 With the campaign of “Go Green”, can make your
customers feel that the company has a responsible
outlook towards natural resources.
• This makes the customer think that since the company
is aware of the current scenario, then it also motivates
them to adapt with eco-friendly and clean habits.
• All this results in a good image of the brand in the eyes
of existing and prospective customers.
3.Economic Advantages
• Going green is like a reduction in waste which equals
lower operating costs and more savings, both
environmentally and economically.
• Eco-friendly business equipment and practices such as
– low-wattage or LED lights, use of natural lighting,
water conservation policies, mandatory recycling and
hybrid company vehicles save money on utilities, fuel,
and office supplies. This generates instant cash flow.
4. Sustainability and Efficient Use of Resources
• Adapting a green and eco-friendly lifestyle is all about
sustainability. This sustainability transforms into
profits in green sectors with secure futures.
• Since there is no limit to human needs and demands of
resources is reversely proportional to the current
availability of resources. Greenmarkets need to
facilitate consumers by consuming resources
efficiently.
Causes of Adopting Green Marketing
1. Grab opportunities
2. Government pressure
3. Competitive pressure
4. Social responsibility
5. Costs and profit related issues