mba 1 marketing mgt notes marketing mix

1. Introduction
Defining Marketing:-
Marketing starts with customers and ends with customers. Creation of superior customer value
and delivering high levels of customer satisfaction are at the heart of present day marketing. It
is a matter of common sense to appreciate the key marketing success factors. In case a
company really endeavours to understand customer needs, carefully studies competition,
develops and offers superior value at a reasonable price, makes these products available at
places convenient to customers, and communicates with them effectively and efficiently, such
products have every reason to be in demand and will sell consistently.
The American Marketing Association defines marketing as: “Marketing is an organizational
function and a set of processes for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit the organisation and its
stakeholders.”
Philip Kotler says, “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”.
Keeping in view the definitions of marketing, some important aspects of modern marketing can
be distinguished:
1. Marketing is a societal process.
2. Marketing deals with customer needs, wants, products, pricing, distribution, and promotion.
3. Marketing focuses on delivering value and satisfaction to customers through products,
services, ideas, etc.
4. Marketing facilitates satisfying exchange relationships.
5. Marketing takes place in a dynamic environment.
6. Marketing is used in both for-profit and not-for-profit organisations.
7. Marketing is extremely important to businesses and the economy of a country.

2. Marketing management is “planning, organising, controlling and implementing of
marketing programmes, policies, strategies and tactics designed to create and satisfy the
demand for the firms’ product offerings or services as a means of generating an acceptable
profit.”
Institute of Marketing Management, England, has defined Marketing Management as
“Marketing Management is the creative management function which promotes trade and
employment by assessing consumer needs and initiating research and development to meet
them. It co-ordinates the resources of production and distribution of goods and services,
determines and directs the total efforts required to sell profitably to ultimate user”.
According to Philip Kotler, “Marketing Management is the art and science of choosing target
markets and building profitable relationship with them. Marketing management is a process
involving analysis, planning, implementing and control and it covers goods, services, ideas and
the goal is to produce satisfaction to the parties involved”.
Marketing Management Involves:
1. The setting of marketing goals and objectives,
2. Developing the marketing plan
3. Organising the marketing function,
4. Putting the marketing plan into action and
5. Controlling the marketing programme.
What is Marketing Management – Scope:
Marketing management, like all other areas of management comprises of the function of
planning, organising, directing coordinating and controlling.
1. Marketing research:
Marketing research involves identification of needs, wants taste and preferences of the
targeted customer. Marketing management conducts a continuous analysis of consumer’s
behaviour towards firm’s marketing mix strategies, business environment; competitor’s
marketing strategies in order to plan effectively the marketing activities of future.
2. Determination of Objectives:
Marketing management performs the task of setting marketing objectives. The marketing
objectives are set in accordance with the overall organisational objectives of profit
maximization. Marketing objectives relates to attracting new customers, retention of current

3. customer, expansion of customer base, introduction of new product, improvement of old
product and so on.
3. Planning Marketing Activities:
Planning involves determining the future course of action. Planning helps in accomplishment of
objectives in a systematic manner. Planning of marketing activities relates to determining
product line strategies, planning for product diversification, advertisement and promotional
activities, planning related to selling and distribution process.
4. Product Planning and Development:
Product is the basic element of marketing. Products are goods or services that are offered to
the customer for satisfying their needs and wants. Products are customer oriented and offered
to the customer’s as per their requirement and preferences.
5. Pricing of Product:
Pricing is a complex function of marketing management. In most of the cases prices form the
decision making criterion for purchase decision. Pricing decisions are based on cost of the
manufacturing and distribution of product, competitor’s pricing strategies, customer’s
willingness to pay for the product, customer’s perception about the product.
6. Promotion:
Promotion and advertisement are essential in order to maximise sales. Promotion and
advertisement is essential to provide information to the customers about the product, to
attract new customers, to provide reminder to customers about the product and to continue
purchase, to provide information about product improvement or introduction of new brand.
7. Distribution:
Distribution process facilitates easy availability of goods and services to the customers at right
time and at right and convenient location. Selection of distribution channel depends upon the
nature of the product, price of the product, availability of intermediaries for distribution and
cost involved in the distribution process.
8. Evaluation and Controlling of Marketing Activities:
Marketing management performs the task of evaluation and controlling of the marketing
activities. Evaluation enables identification of effectiveness of marketing plans and actions.

4. Marketing Management – Importance:
1. Analysing Market Opportunities:
Marketing management collects and analyses information related to consumer’s needs, wants
and demands, competitor’s marketing strategies, changing market trends and preferences. This
helps to identify market opportunities.
2. Determination of Target Market:
Marketing management helps to identify the target market that the organization wishes to
offer its product.
3. Planning and Decision Making:
Marketing management helps to prepare future course of action. Planning relates to product
introduction, diversification. Decision making regarding pricing, selection of promotional mix,
selection of distribution channel is taken by the marketing management.
4. Creation of Customer:
Consumers determine the future of the market .Therefore providing the best product to the
consumer according to their preference is the important task of marketing. Marketing
management helps in creation of new customers and retention of current customers.
5. Helps in Increasing Profit:
Marketing caters to the varied and unlimited needs of consumers. Marketing management
helps to increase profit and sales volume. This is achieved by expansion of market and
increasing customers.
6. Improvement in Quality of Life:
Marketing management aims at providing innovative product and services to the customers.
Marketers continuously strive to incorporate new technology and mechanism in their product
to provide more satisfaction to customers than before. This improves quality of life and makes
life of consumers easier than before.

5. Introduction to Modern Marketing Concept:
The consumer-oriented marketing has given rise to a new philosophy in business known as
‘marketing concept’. The marketing concept emphasises the determination of the requirements
of potential customers and supplying products to satisfy their requirements.
Under the marketing concept customer is the fulcrum around which the business moves. The
objective of a firm is not the maximisation of profitable sales volume but profits through
satisfaction of customers. And all the marketing activities in a firm are integrated and directed
towards this objective. The managers practicing this philosophy think in terms of what benefits
the market or what needs are they satisfying.
The marketing concept considers marketing as an integrated process of identification,
assessment and satisfaction of human needs and wants. It regards creation of customer and
satisfaction of his wants as the justification of business.
Determination of wants of the customers takes precedence over production and other business
activities. In other words, production is carried on according to the needs of the customers.
Thus, the emphasis in modern business is on selling satisfaction and not merely on selling
goods.
The marketing concept is based on the following pillars:
(i) Identification of the prospective customers or the target market.
(ii) Understanding the needs and wants of the customers or the target market by connecting
with them.
(iii) Development of products or services for satisfying the needs of the target market.
(iv) Satisfying the needs of target market better than the competitors.
(v) Ensuring profitable sales for the business.
Modern concepts of marketing are broad concepts. It means finding out the consumer and
make the goods as per their needs rather than to provide them what the seller has made. Thus
it is very essential for the seller to get the answer of the question what are the things which the
consumer want? And how these things can be made available to them? Only then he can
survive in the market and earn profit. There are 6 modern concepts of marketing which are very
important from the point of view of marketer.
a) Production concept: – The companies which use the production concept generally focus too
narrowly on their own activities because according to this concept the companies think that
consumer will buy the product which comes in the market.

6. b) Product concept: – As per this concept companies give importance to the features or the
quality of the product because in long run the product exists only with the quality it is giving to
the consumer.
c) Selling concept: – it is not sufficient for the manufacturer to made the goods and wait for
the customers. Thus, according to this concept it is very important to inform the consumer
about the product which can be done through different ways of promotion.
d) Marketing concept: – consumer now a day is treated as “GOD”. So it is very important for
the manufacturer to produce the product which the consumer wants, so that consumer get
satisfaction and manufacturer earns profit.
e) Consumer concept:- now not only marketing concept is sufficient rather the companies are
using consumer concept which means to give attention to individual consumer it can be done
through one to one marketing.
f) Societal marketing concept: – this concept means that company should not only work for
the consumer but also for the society. So the company should make balance between
company’s profits, consumer wants and society welfare.

7. Marketing Mix
Is a major concept in modern marketing and involves practically everything that a marketing
company can use to influence consumer perceptions favourably towards its products or
services so that consumer and organisational objectives are attained. Marketing mix is a model
of crafting and implementing marketing strategy. Prof. Neil H. Borden first used the term
"marketing mix" in 1949 to include in the marketing process factors such as distribution,
advertising, personal selling, and pricing.
These 4 Ps represent the tactical controllable factors and vary in case of different products and
target markets. This classification is believed to be quite popular in marketing circles across the
world
The elements of the Marketing mix, or the 4Ps of Marketing here.
Product
The product is either a tangible good or an intangible service that is seem to meet a specific
customer need or demand. All products follow a logical product life cycle and it is vital for
marketers to understand and plan for the various stages and their unique challenges. It is key to
understand those problems that the product is attempting to solve. The benefits offered by the
product and all its features need to be understood and the unique selling proposition of the
product need to be studied.

8. Price :-Price covers the actual amount the end user is expected to pay for a product. How a
product is priced will directly affect how it sells. This is linked to what the perceived value of the
product is to the customer rather than an objective costing of the product on offer. If a product
is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative
to understand how a customer sees what you are selling.
Place Place or placement has to do with how the product will be provided to the customer.
Distribution is a key element of placement. The placement strategy will help assess what
channel is the most suited to a product. How a product is accessed by the end user also needs
to compliment the rest of the product strategy.
Promotion The marketing communication strategies and techniques all fall under the
promotion heading. These may include advertising, sales promotions, special offers and public
relations. Whatever the channel used, it is necessary for it to be suitable for the product, the
price and the end user it is being marketed to. It is important to differentiate between
marketing and promotion. Promotion is just the communication aspect of the entire marketing
function.

9. Marketing Environment
Definition: The Marketing Environment includes the Internal factors (employees, customers,
shareholders, retailers & distributors, etc.) and the External factors( political, legal, social,
technological, economic) that surround the business and influence its marketing operations.
Some of these factors are controllable while some are uncontrollable and require business
operations to change accordingly. Firms must be well aware of its marketing environment in
which it is operating to overcome the negative impact the environment factors are imposing on
firm’s marketing activities.
The marketing environment can be broadly classified into three parts:

10. 1. Internal Environment – The Internal Marketing Environment includes all the factors that
are within the organization and affects the overall business operations. These factors include
labor, inventory, company policy, logistics, budget, capital assets, etc. which are a part of the
organization and affects the marketing decision and its relationship with the customers. These
factors can be controlled by the firm.
2. Microenvironment- The Micro Marketing Environment includes all those factors that are
closely associated with the operations of the business and influences its functioning. The
microenvironment factors include customers, employees, suppliers, retailers & distributors,
shareholders, Competitors, Government and General Public. These factors are controllable to
some extent.
These factors are further elaborated:
1. Customers– Every business revolves around fulfilling the customer’s needs and wants.
Thus, each marketing strategy is customer oriented that focuses on understanding the
need of the customers and offering the best product that fulfills their needs.

11. 2. Employees– Employees are the main component of a business who contributes
significantly to its success. The quality of employees depends on the training and
motivation sessions given to them. Thus, Training & Development is crucial to impart
marketing skills in an individual.
3. Suppliers– Suppliers are the persons from whom the material is purchased to make a
finished good and hence are very important for the organization. It is crucial to identify
the suppliers existing in the market and choose the best that fulfills the firm’s
requirement.
4. Retailers & Distributors– The channel partners play an imperative role in determining
the success of marketing operations. Being in direct touch with customers they can give
suggestions about customer’s desires regarding a product and its services.
5. Competitors– Keeping a close watch on competitors enables a company to design its
marketing strategy according to the trend prevailing in the market.
6. Shareholders– Shareholders are the owners of the company, and every firm has an
objective of maximizing its shareholder’s wealth. Thus, marketing activities should be
undertaken keeping in mind the returns to shareholders.
7. Government– The Government departments make several policies viz. Pricing policy,
credit policy, education policy, housing policy, etc. that do have an influence on the
marketing strategies. A company has to keep track on these policies and make the
marketing programs accordingly.
8. General public– The business has some social responsibility towards the society in which
it is operating. Thus, all the marketing activities should be designed that result in
increased welfare of the society as a whole.3. Macro Environment-The Macro Marketing
Environment includes all those factors that exist outside the organization and can not be
controlled. These factors majorly include Social, Economic, Technological Forces,
Political and Legal Influences. These are also called as PESTLE framework.

12. The detailed description of Macro factors is given below:
1. Political & Legal Factors– With the change in political parties, several changes are seen
in the market in terms of trade, taxes, and duties, codes and practices, market
regulations, etc. So the firm has to comply with all these changes and the violation of
which could penalize its business operations.
2. Economic Factors– Every business operates in the economy and is affected by the
different phases it is undergoing. In the case of recession, the marketing practices
should be different as what are followed during the inflation period.
3. Social Factors– since business operates in a society and has some responsibility towards
it must follow the marketing practices that do not harm the sentiments of people. Also,
the companies are required to invest in the welfare of general people by constructing
public conveniences, parks, sponsoring education, etc.
4. Technological Factors– As technology is advancing day by day, the firms have to keep
themselves updated so that customers needs can be met with more precision.

13. What is Environmental scanning?
Environmental scanning is an important part of the business process as it is the responsibility of
an organization to keep a check on things which can put negative impacts on their business and
their consumers. The members of the organization look for the prominent internal and external
threats which adversely affect the organization. Not only the issues which directly impact their
consumers and suppliers but also the issues which impact the competitors and overall
environment of the industry are scanned and new strategies are developed to deal with these
issues. Large organizations have employees specially hired for the research purpose who
constantly research and learn about market changes and provide information to the higher
management so that company doesn’t lag behind because of the lack of the knowledge about
the market place changes.
Having knowledge about the issues in the business and market changes, management can take
important decision for the future of the organization.
Followings are the efforts made by the organization to do an environmental scanning:
1. Market research is performed and the data collected from the market research process is
studied in order to make planning for future actions.
2. Comparing the performance of the competitor company in order to learn about their
strategies and business ideas.
3. Learning from the executives of the organization.
4. Analyzing and making decisions on the basis of the demographic data.
5. Collecting information from articles issued, web pages, journals, magazines, and newspapers,
etc.
Importance of Environmental Scanning
Environmental scanning plays an important role in the business process of an organization.
There are many advantages of performing environmental analysis that helps the organization to
stay safe from the business loss and to stay ahead in the competition.

14. 1. By performing environmental analysis, you can learn about the strengths, opportunities,
opportunities available, and threats lurking around the industry. Having knowledge about all
these things you can take a decision regarding your business and can reform your business
strategies.
2. The environmental analysis helps us to determine whether the resources such as human
resource, capital resource, etc. are being used properly or not. It helps us to curb down the
wastage of these important resources.
3. Constant environment scanning helps the organization to learn about the opportunities and
threats occurring in the industry and on the basis of that information future strategies can be
planned and implemented. Hence, it helps the organizations to stay strong in the game.
4. Environmental scanning helps you to learn about the business strategies of your competitors.
You can take ideas from the strategies and can also form your strategies accordingly so that you
can give constant competition to them.
5. The data collected from environmental scanning plays an important role in long-term
business planning.
Components of Environmental Scanning
Business environment of an organization can be divided into two types of environment external
environment and internal environment. there are different components associated with both
the environments. Let us learn about them one by one.
#1 Internal Environmental:
Internal environmental components are the components which lie within the organization and
changes in these components impacts the overall performance of the organization. There are
various internal environmental components such as different resources like human resources,

15. capital resources, technological resources, etc., Objectives, Organizational structure, Value
system, corporate structure, and labor union, etc.
#2 External Environmental:
External components are the components which exist outside the walls of an organization. Even
though these components are not part of the organization, they still impact the business of the
organization. The external environment can be divided into two categories such as
Microenvironmental components and macro environmental components.
A) Micro Environmental:
Micro environment components consist of components such as Competitors, suppliers,
industry, organization, consumers, and market, etc.
B) Macro Environmental:
Macro environmental components consist of components such as Demographical environment,
Economic environment, political environment, cultural environment, technological
environment, etc.
Purpose of Environmental Scanning
Environmental scanning is conducted to collect data on for the various areas such as
competition, employment trends. Geopolitical climate, economic condition, industry,
technological advancement, industry, and global opportunities, etc.
It is important for an organization to consistently track the changing trends and to develop
strategies accordingly. It also helps in decision making, for example, you can learn about the
current demands and expectations of the consumers and produce and sell products accordingly
so that you can expand your business.

16. However, in less dynamic organization environmental scanning can be done once in a year to
just to learn about the issues faced by the organization.
Techniques of Environmental scanning
Environmental scanning is a process where deep analysis of an environment is done in order to
learn about the new opportunities and threats on the basis of which new strategies can be
prepared.
Here, you will learn about the different techniques which are used for environmental scanning
purpose.
#1 Research: Environment scanning is conducted to learn about the latest trends of the industry
and the lurking threats so that opportunities can be exploited and precautionary steps can be
taken to reduce the impacts.
#2 Getting the opinions of experts: In this method, the management of the organization take
the opinion experts who have deep knowledge about the industry and can easily decode its
latest trends and recognize the first appearance of the opportunities.
#3 SWOT analysis: SWOT stands for Strength, Weaknesses, Opportunities, and Threats. This is a
strategic technique opted by an organization to learn about its internal strengths and
weaknesses. It is important to learn about business competition and project planning.
#5 PEST analysis: PEST analysis is done to learn about the external macro environmental
factors. PEST stands for P: Political, E: Economic, S: Social, T: Technological. These external
macro environmental factors put an impact on the business of the organization and it is
important for an organization to keep a track of them.
#5 Analysis of industry: There is a different organization in an industry which can be your direct
or indirect competitors.

17. What Is the Product Life Cycle?
The product life cycle is the process a product goes through from when it is first introduced into
the market until it declines or is removed from the market. The life cycle has four stages -
introduction, growth, maturity and decline. While some products may stay in a prolonged
maturity state, all products eventually phase out of the market due to several factors including
saturation, increased competition, decreased demand and dropping sales.
Additionally, companies use PLC analysis (examining their product's life cycle) to create
strategies to sustain their product's longevity or change it to meet with market demand or
developing technologies.
4 Stages of the Product Life Cycle Generally, there are four stages to the product life cycle,
from the product's development to its decline in value and eventual retirement from the
market.
1. Introduction
Once a product has been developed, the first stage is its introduction stage. In this stage, the
product is being released into the market. When a new product is released, it is often a high-
stakes time in the product's life cycle - although it does not necessarily make or break the
product's eventual success. During the introduction stage, marketing and promotion are at a
high - and the company often invests the most in promoting the product and getting it into the
hands of consumers. It is in this stage that the company is first able to get a sense of how
consumers respond to the product, if they like it and how successful it may be. However, it is
also often a heavy-spending period for the company with no guarantee that the product will
pay for itself through sales. Costs are generally very high and there is typically little

18. competition. The principle goals of the introduction stage are to build demand for the product
and get it into the hands of consumers, hoping to later cash in on its growing popularity.
2. Growth
By the growth stage, consumers are already taking to the product and increasingly buying it.
The product concept is proven and is becoming more popular - and sales are increasing. Other
companies become aware of the product and its space in the market, which is beginning to
draw attention and increasingly pull in revenue. If competition for the product is especially
high, the company may still heavily invest in advertising and promotion of the product to beat
out competitors. As a result of the product growing, the market itself tends to expand. The
product in the growth stage is typically tweaked to improve functions and features.
3. Maturity
When a product reaches maturity, its sales tend to slow or even stop - signaling a largely
saturated market. At this point, sales can even start to drop. Pricing at this stage can tend to get
competitive, signaling margin shrinking as prices begin falling due to the weight of outside
pressures like competition or lower demand. Marketing at this point is targeted at fending off
competition, and companies will often develop new or altered products to reach different
market segments. In this stage, saturation is reached and sales volume is maxed out.
Companies often begin innovating to maintain or increase their market share, changing or
developing their product to meet with new demographics or developing technologies.
4. Decline
Although companies will generally attempt to keep the product alive in the maturity stage as
long as possible, decline for every product is inevitable. In the decline stage, product sales drop
significantly and consumer behavior changes as there is less demand for the product. The
company's product loses more and more market share, and competition tends to cause sales to
deteriorate.
Eventually, the product will be retired out of the market unless it is able to redesign itself to
remain relevant or in-demand. For example, products like typewriters, telegrams and muskets
are deep in their decline stages (and in fact are almost or completely retired from the market).
Examples of the Product Life Cycle
The life cycle of any product always carries it from its introduction to an inevitable decline, but
what does this cycle practically look like, and what are some examples?

19. Segmentation, Targeting, and Positioning
Segmentation, targeting, and positioning together comprise a three stage process. We first (1)
determine which kinds of customers exist, then (2) select which ones we are best off trying to
serve and, finally, (3) implement our segmentation by optimizing our products/services for that
segment and communicating that we have made the choice to distinguish ourselves that way.
Segmentation involves finding out what kinds of consumers with different needs exist. In the
auto market, for example, some consumers demand speed and performance, while others are
much more concerned about roominess and safety. In general, it holds true that “You can’t be
all things to all people,” and experience has demonstrated that firms that specialize in meeting
the needs of one group of consumers over another tend to be more profitable.
Generically, there are three approaches to marketing. In the undifferentiated strategy, all
consumers are treated as the same, with firms not making any specific efforts to satisfy
particular groups. This may work when the product is a standard one where one competitor
really can’t offer much that another one can’t. Usually, this is the case only for commodities. In
the concentrated strategy, one firm chooses to focus on one of several segments that exist
while leaving other segments to competitors. For example, Southwest Airlines focuses on price
sensitive consumers who will forego meals and assigned seating for low prices. In contrast,
most airlines follow the differentiated strategy: They offer high priced tickets to those who are
inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay
over a Saturday. These travelers—usually business travelers—pay high fares but can only fill
the planes up partially. The same airlines then sell some of the remaining seats to more price
sensitive customers who can buy two weeks in advance and stay over.
We might thus decide, for example, that the variables that are most relevant in separating
different kinds of soft drink consumers are (1) preference for taste vs. low calories, (2)
preference for Cola vs. non-cola taste, (3) price sensitivity—willingness to pay for brand names;

20. and (4) heavy vs. light consumers. We now put these variables together to arrive at various
combinations.
Several different kinds of variables can be used for segmentation.
 Demographic variables essentially refer to personal statistics such as income, gender,
education, location (rural vs. urban, East vs. West), ethnicity, and family size.
 Some consumers want to be seen as similar to others, while a different segment wants
to stand apart from the crowd.
 Another basis for segmentation is behavior. Some consumers are “brand loyal”—i.e.,
they tend to stick with their preferred brands even when a competing one is on sale.
Some consumers are “heavy” users while others are “light” users. For example,
research conducted by the wine industry shows that some 80% of the product is
consumed by 20% of the consumers—presumably a rather intoxicated group.
Target one or more segments. Our choice should generally depend on several factors. First,
how well are existing segments served by other manufacturers? It will be more difficult to
appeal to a segment that is already well served than to one whose needs are not currently
being served well. Secondly, how large is the segment, and how can we expect it to grow?
(Note that a downside to a large, rapidly growing segment is that it tends to attract
competition). Thirdly, do we have strengths as a company that will help us appeal particularly
to one group of consumers? Firms may already have an established reputation.
Positioning involves implementing our targeting. For example, Apple Computer has chosen to
position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its
advertising to promote itself, through its unintimidating icons, as a computer for “non-geeks.”
The Visual C software programming language, in contrast, is aimed a “techies.”