Prof. N. N. Panda
GIACR ENGG. COLLEGE, RAYAGADA
Marketing is ancient art. Its emergence as a
management discipline is of relatively recent
origin. And within this relatively short period, it
has gained a great deal of importance. In fact
today marketing is regarded as most important
of all management functions of business. All of
us involved in marketing in one-way or the
“Marketing is a societal process by which individuals
and groups obtain what they need and want through
creating, offering and freely exchanging products and
services of value with others” - Philip Kotler
Marketing is a key function of management. It brings
success to business organization. A business
organization performs two key functions producing
goods and services and making them available to
potential customers for use.
An organization business success largely
depends on how efficiently the products and
services are delivered to customers and how
differently do the customers perceive the
difference in delivery in comparison to the
Quality production and efficient marketing are
the key success factors in building sustainable
competitive edge for every Business
American Marketing Association – “It is the
process of planning & executing the conception,
pricing, promotion & distribution of ideas, goods
& services to create exchange that satisfy
individual & organizational goals.”
1. The Production Concept: This is one of the oldest
concepts guiding the sellers. This concept holds that
consumers will favour those products that are widely
available and low in cost. Managers of production oriented
organizations concentrate on achieving high production
efficiency and wide distribution coverage.
2. The Product Concept: This concept holds that consumers
will favour those products that offer most quality
performance, or innovative features. Managers in these
product-oriented organizations form their energy on
making superior products and improving them over time.
Thus, the product concept leads to “Marketing myopia”, a
focus on the product rather than on the customer’s need.
3. The Selling Concept: this concept holds that
customers, if left alone, will ordinarily not buy
enough of the organization’s product. The
organization must, therefore, undertake an
aggressive selling and promotion effort.
4. The Marketing Concept: This concept
emphasizes the determination of the
requirements of potential customers and
supplying products to satisfy their requirements.
5. The Societal Marketing Concept: The societal
marketing concept holds that the organization’s
task is to determine the needs, wants, and
interests of target markets and to deliver the
desired satisfaction more effectively and
efficiently than competitors in a way that
preserves or enhances the consumer’s and the
In most of the business enterprises, marketing
department is set up under the supervision of the
marketing manager. The major purpose of this
department is to generate revenue for the business
by selling want satisfying goods and services to the
In order to achieve this objective, marketing
manager performs the following functions:
1. Marketing Research: Marketing research is
the systematic search for and analysis of facts
related to a marketing function. It helps in
analyzing the buyers habits, relative popularity
of a product, effectiveness of advertisements,
etc. It provides up-to-date information in regular
intervals of time regarding marketing and thus,
helps in decision making.
2. Product Planning and Development: It is
always necessary to plan and develop products
which meet the specifications of the customers.
Product planning and development involves a
number of decisions. viz., What to produce ?
How to have its packaging? How to fix its price
and how to sell it?, etc.
3. Buying and Assembling: Buying and
assembling are important functions of
marketing. Buying is different from marketing.
Buying involves determination of requirements,
finding the sources of supply placing the order
and receiving the goods. But assembling means
collection of goods already purchased from
different sources at a common point. It is also
used in another sense. Raw materials are
purchased and assembled in order to produce
goods and services as per the need of customer.
4. Selling: This is an important function of
marketing under which ownership of goods is
transferred from the seller to the buyer. This is
done at a price. There are two different forms of
selling, viz., negotiated selling and auction
5. Standardization, Grading and Branding:
Standardization means setting up of
specifications of a product. The gradation is
done on the basis of these specifications and
standards. At last a brand name is given to a
product for identification. In general branding is
a way for an organization to identify its offerings
and distinguish them from those of competitors.
6. Packaging: A good package represents a
combination of the designer’s creative skills and
the product as well as marketing and sales
knowledge of the manufacturer’s management
team. Packaging has became one of the
essential services of modern marketing. Now, it
is used by the manufacturer to establish his
branded products as distinct from those of
rivals. Packaging also gives protection to the
products. Thus, packaging acts as a multipurpose arrangement.
7. Storage: Storage of goods in warehouse has
become an indispensable service these days.
Goods are stored in the warehouses to protect
them from any kind of damage till they are
actually sold in the market. In addition, modern
warehouses perform certain marketing services
like grading, packaging, labelling, etc.
8. Transportation: Transportation provides the
physical means which facilitate the movement
of persons, goods and services from one place
to another. It plays significant role in the socioeconomic development of a country. It also
plays a crucial role in the price mechanism. It
tends to equalize and stabilize the price of
various commodities by moving them from the
areas where they are surplus to those areas
where they are scarce.
9. Salesmanship: Salesmanship or personal selling is
widely used in retail marketing. It involves direct and
personal contact of the seller or his representative
with the purchaser.
10. Advertising: Advertising has become an
important function of marketing in the competitive
world. It helps to spread the message about the
product and thus, promote its sale.
11. Pricing: Determination of price of a product is an
important function of a marketing manager. Price of a
product is influenced by the cost of production, profit
margin, prices fixed by the rival firms, and Govt.
12. Financing: Financing of customer-purchasing
has become an integral part of modern
marketing. The provision of goods to the
customers on credit basis is an important device
to increase the volume of sales.
13. Insurance: A large number of risks are
involved in exchange of goods and services.
Insurance helps to cover these risks. It facilitates
the smooth exchange of goods by covering risks
in storage and transportation.
The Marketing Mix (The 4 P's of Marketing)
Marketing decisions generally fall into the
following four controllable categories:
c. Place (distribution)
Product - A tangible object or an intangible service
that is mass produced or manufactured on a large
scale with a specific volume of units. Intangible
products are service based like the tourism industry
& the hotel industry or codes-based products like
cell phone load and credits. Typical examples of a
mass produced tangible object are the motor car
and the disposable razor. A less obvious but
ubiquitous mass produced service is a computer
operating system. Packaging also needs to be taken
Here are some examples of the product decisions to
Repairs and Support
Accessories and services
Price – The price is the amount a customer pays for
the product. It is determined by a number of factors
including market share, competition, material costs,
product identity and the customer's perceived value
of the product. The business may increase or
decrease the price of product if other stores have
the same product.
Some examples of pricing decisions to be made
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Place – Place represents the location where a
product can be purchased. It is often referred to as
the distribution channel. It can include any physical
store as well as virtual stores on the Internet. Place
is not exactly a physical store where it is available
Place is nothing but how the product takes place or
create image in the mind of customers. It depends
upon the perception of customers.
Some examples of distribution decisions include:
Market coverage (inclusive, selective, or
Specific channel members
Promotion- Promotion represents all of the
communications that a marketer may use in the
marketplace. Promotion has four distinct elements:
advertising, public relations, personal selling and sales
promotion. A certain amount of crossover occurs when
promotion uses the four principal elements together,
which is common in film promotion. Advertising covers
any communication that is paid for, from cinema
commercials, radio and Internet adverts through print
media and billboards. Public relations are where the
communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences,
seminars or trade fairs and events.
Word of mouth is any apparently informal communication
about the product by ordinary individuals, satisfied customers
or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word
of mouth and Public Relations (see Product above). In Short,
promotion represents the various aspects of marketing
communication, that is, the communication of information
about the product with the goal of generating a positive
Marketing communication decisions include:
Promotional strategy (push, pull, etc.)
Personal selling & sales force
Public relations & publicity
Marketing communications budget
The Fundamental Needs of Customers
The Six Basic Needs of Customers are:
Friendliness is the most basic of all customers needs,
usually associated with being greeted graciously and
with warmth. We all want to be acknowledged and
welcomed by someone who sincerely is glad to see
us. A customer shouldn’t feel they are an intrusion on
the service provider’s work day!
2. Understanding and empathy
Customers need to feel that the service person
understands and appreciates their
circumstances and feelings without criticism or
judgment. Customers have simple expectations
that we who serve them can put ourselves in
their shoes, understanding what it is they came
to us for in the first place.
We all need to feel we are being treated fairly.
Customers get very annoyed and defensive
when they feel they are subject to any class
distinctions. No one wants to be treated as if
they fall into a certain category, left wondering if
“the grass is greener on the other side” and if
they only received second best.
Control represents the customers’ need to feel
they have an impact on the way things turn out.
Our ability to meet this need for them comes
from our own willingness to say “yes” much
more than we say “no.” Customers don’t care
about policies and rules; they want to deal with
us in all our reasonableness.
5. Options and alternatives
Customers need to feel that other avenues are
available to getting what they want
accomplished. They realize that they may be
charting virgin territory, and they depend on us
to be “in the know” and provide them with the
“inside scoop.” They get pretty upset when they
feel they have spun their wheels getting
something done, and we knew all along a better
way, but never made the suggestion.
“Tell me, show me – everything!” Customers
need to be educated and informed about our
products and services, and they don’t want us
leaving anything out! They don’t want to waste
precious time doing homework on their own –
they look to us to be their walking, talking,
Channel of Distribution
A channel of distribution always includes both the
producer and the final consumers for the product in
its present form as well as any middleman such as
retailers and wholesalers. Channels play a vital role in
marketing. Firms rely on the marketing channels for
generating customer satisfaction and for achieving
differentiation over competitors. The distribution
channels right from the producer to the final
consumer is designed in such a way that it provides
sufficient value to the customer and creates a
competitive advantage to the producer.
“A channel is a pipeline/ path/ route through
which a product flows on its way to the
or “ The Marketing channels are sets of
independent organizations involved in the
process of making a product or service available
for use or consumption”.
Role of Distribution Channel
1. Facilitate selling by being physically close to customer.
2. They gather information about potential and customers,
competitors, other actors and forces of the environment.
3. Provide distributional efficiency by bridging the manufacturer
with the user, efficiently and economically.
4. Assemble products into assortments to meet buyers needs,
match “segments of supply” with “segments of demand”.
5. Assist in sales promotion.
6. Assist in introducing new product.
7. Assist in implementing the price mechanism.
8. Assist in developing sales forecast.
9. Provide market intelligence and feedback.
10. Maintain records.
11. Take care of liaison requirements.
12. Standardize transaction.
Advertising is a form of non personal
communication intended to persuade an audience
(viewers, readers or listeners) to purchase or take
some action upon products, ideals, or services. It
includes the name of a product or service and how
that product or service could benefit the consumer,
to persuade a target market to purchase or to
consume that particular brand.
Modern advertising developed with the rise of
mass production in the late 19th and early 20th
centuries. Mass media can be defined as any
media meant to reach a mass amount of people.
Several types of mass media are television,
internet, radio, news programs, and published
pictures and articles.
Commercial advertisers often seek to generate
increased consumption of their products or services
through branding, which involves the repetition of
an image or product name in an effort to associate
related qualities with the brand in the minds of
consumers. Different types of media can be used to
deliver these messages, including traditional media
such as newspapers, magazines, television, radio,
outdoor or direct mail; or new media such as
websites and text messages.
Advertising is the promotion of a company’s
products and services carried out primarily to
drive sales of the products and services but also
to build a brand identity and communicate
changes or new product /services to the
customers. Advertising has become an essential
element of the corporate world and hence the
companies allot a considerable amount of
revenues as their advertising budget.
There are several reasons for advertising some
of which are as follows:
1. Increasing the sales of the product/service
2. Creating and maintaining a brand identity or
3. Communicating a change in the existing
4. Introduction of a new product or service.
5. Increasing the buzz-value of the brand or the
Types of Advertising
1. Print Advertising – Newspapers, Magazines,
The print media have always been a popular
advertising medium. Advertising products via
newspapers or magazines is a common practice. In
addition to this, the print media also offers options
like promotional brochures and fliers for advertising
purposes. Often the newspapers and the magazines
sell the advertising space according to the area
occupied by the advertisement, the position of the
advertisement (front page/middle page), as well as
the readership of the publications.
2- Outdoor Advertising – Billboards, Kiosks,
Tradeshows and Events
Outdoor advertising is also a very popular form of
advertising, which makes use of several tools and
techniques to attract the customers outdoors. The
most common examples of outdoor advertising are
billboards, kiosks, and also several events and
tradeshows organized by the company. The billboard
advertising is very popular however has to be really
terse and catchy in order to grab the attention of the
passers by. The company can organize trade fairs, or
even exhibitions for advertising their products.
3- Broadcast advertising – Television, Radio and the
Broadcast advertising is a very popular advertising
medium that constitutes of several branches like
television, radio or the Internet. Television
advertisements have been very popular ever since they
have been introduced. The cost of television advertising
often depends on the duration of the advertisement, the
time of broadcast (prime time/peak time), and of course
the popularity of the television channel on which the
advertisement is going to be broadcasted. The radio
might have lost its charm owing to the new age media
however the radio remains to be the choice of small-scale
4- Covert Advertising – Advertising in Movies
Covert advertising is a unique kind of advertising in
which a product or a particular brand is incorporated
in some entertainment and media channels like
movies, television shows or even sports. There is no
commercial in the entertainment but the brand or
the product is subtly( or sometimes evidently)
showcased in the entertainment show. Some of the
famous examples for this sort of advertising have to
be the appearance of brand Nokia which is displayed
on Tom Cruise’s phone in the movie Minority Report,
or the use of Cadillac cars in the movie Matrix
5- Surrogate Advertising – Advertising Indirectly
Surrogate advertising is prominently seen in cases
where advertising a particular product is banned by
law. Advertisement for products like cigarettes or
alcohol which are injurious to heath are prohibited by
law in several countries and hence these companies
have to come up with several other products that might
have the same brand name and indirectly remind
people of the cigarettes or beer bottles of the same
brand. Common examples include Fosters and
Kingfisher beer brands, which are often seen to
promote their brand with the help of surrogate
6. Public Service Advertising – Advertising for
Public service advertising is a technique that
makes use of advertising as an effective
communication medium to convey socially
relevant messaged about important matters and
social welfare causes like AIDS, energy
conservation, political integrity, deforestation,
illiteracy, poverty and so on.
7- Celebrity Advertising
Although the audience is getting smarter and smarter
and the modern day consumer getting immune to the
exaggerated claims made in a majority of
advertisements, there exist a section of advertisers
that still bank upon celebrities and their popularity
for advertising their products. Using celebrities for
advertising involves signing up celebrities for
advertising campaigns, which consist of all sorts of
advertising including, television ads or even print
ADVERTISING GOALS / IMPORTANCE OF
1. Building Brand Image
Building a strong global brand and corporate
image is one of the most important advertising
goals. A strong brand creates brand equity.
Brand equity is a set of characteristics that make
a brand seem different and better to both
consumers and businesses. These benefits can
be enhanced when they combine effective
advertising with quality products.
2. Providing Information
Besides building brand recognition and equity,
advertising serves other goals. For example,
advertising often is used to provide information to
both consumers and business buyers. Typical
information for consumers includes a retailer’s store
hours, business location, or sometimes more detailed
product specifications. Information can make the
purchasing process appear to be convenient and
relatively simple, which can entice customers to
finalize the purchasing decision and travel to the
One of the most common goals of advertising programs
is persuasion. Advertisements can convince consumers
that a particular brand is superior to other brands. They
can show consumers the negative consequences of
failing to use a particular brand. Changing consumer
attitudes and persuading them to consider a new
purchasing choice is a challenging task. As described
later, advertisers can utilize several methods of
persuasion. Persuasive advertising is used more in
consumer marketing than in business-to-business
situations. Persuasion techniques are used more
frequently in broadcast media such as television and
radio rather than in print advertising.
4. Supporting Marketing Efforts
Another goal of advertising is to support other marketing
functions. For example, manufacturers use advertising to
support trade and consumer promotions, such as theme
packaging or combination offers. Any type of special sale
(diwali offer sales, buy-one-get-one-free, pre-Christmas
sale) requires effective advertising to attract customers to
the store. Both manufacturers and retail outlets use
advertisements in conjunction with coupons or other
special offers. When ads are combined with other
marketing efforts into a larger, more integrated effort
revolving around a theme, the program is called a
5. Encouraging Action
Many firms set motivational goals for
advertising programs. A television commercial
that encourages viewers to take action by dialing
a toll-free number to make a quick purchase is
Consumerism is a social and economic order that is
based on the systematic creation and fostering of a
desire to purchase goods or services in ever greater
amounts. The term is often associated with
criticisms of consumption starting with Thorstein
Veblen or, more recently by a movement called
Enoughism. Veblen's subject of examination, the
newly emergent middle class arising at the turn of
the twentieth century, comes to full fruition by the
end of the twentieth century through the process of
It also may refer to a movement seeking to
protect and inform consumers by requiring such
practices as honest packaging and advertising,
product guarantees, and improved safety
standards. In this sense it is a movement or a set
of policies aimed at regulating the products,
services, methods, and standards of
manufacturers, sellers, and advertisers in the
interests of the buyer.
In economics, consumerism refers to economic
policies placing emphasis on consumption. In an
abstract sense, it is the belief that the free choice of
consumers should dictate the economic structure of
a society (Producerism, especially in the British
sense of the term).
Environmentalism is a broad philosophy and social
movement regarding concerns for environmental
conservation and improvement of the state of the
environment. Environmentalism and environmental
concerns are often represented by the color green.
Environmentalism as a social movement
Environmentalism can also be defined as a social
movement that seeks to influence the political
process by lobbying, activism, and education in
order to protect natural resources and ecosystems.
In recognition of humanity as a participant in
ecosystems, the environmental movement is
centered on ecology, health, and human rights.
An environmentalist is a person who may speak out
about our natural environment and the sustainable
management of its resources through changes in
public policy or individual behavior by supporting
practices such as not being wasteful. In various
ways (for example, grassroots activism and
protests), environmentalists and environmental
organizations seek to give the natural world a
stronger voice in human affairs.