INTRODUCTION TO MARKETING AND CONSUMER BEHAVIOR

2. Principles of Marketing

6. SYLLABUS: HOURS
Module 1: Introduction to Marketing 12
Marketing: Introduction- Meaning- Nature - Scope-Importance of Marketing; Concepts
&Approaches of Marketing; Concept of Need-Want-Demand - Customer Value - Customer
Creation; Differences between Selling vs. Marketing; Marketing Management (concept
only).
Marketing Environment: Meaning-Importance-Micro and Macro Environment in Marketing.
Marketing Mix – Product – Price - Place & Promotion ( in brief)
Module 2: Consumer Behaviour & Market Segmentation 12
Consumer Behaviour: Meaning and importance of consumer behaviour-Consumerbuying
decision process; Factors influencing consumer buying behavior.
Market Segmentation: Meaning, importance and bases of market segmentation.
Module 3: Product and Pricing 12
Product: Meaning and features - Product classification- Concept of product line, product
mix, Branding, Packaging and labelling; Product Life Cycle – meaning and Stages in Product
Life Cycle - New product Development- Meaning and stages in NPD
Pricing: Meaning and Significance; Factors affecting price of a product; Types of Pricing and
pricing strategies.

8. Marketing

9. Marketing

10. Natures of Marketing

11. Scope of Marketing

13. Role & Importance Of Marketing
• Marketing Scripts Organization’s Reputation (maggi)
• Marketing Generates Revenue
• Marketing makes Organization Dynamic(itc)
• Facilitates Demand & Product Awareness
• Offers wide Employment Opportunities(ikea)
• Ensures Healthy Competition(online amazon n flipkart)
• Business value Acceleration(employee value, customer value, channel
partner value etc)
• Offers Satisfaction of Customer requirements
• Creates Competitive Advantage

14. What are Needs, Wants and Demand
Marketing concept focuses on the needs, wants and demands of customers. Let
us understand them in brief.
1. Needs:
Needs are basic requirements that enable a healthy and active life. If needs are
not fulfilled, it will result in the dysfunction of the system, which can result in
disability or death. It can be objective as well as physical as in need of food,
water and shelter.
2. Wants:
Wants are something that is desired by the person. These are not required for day
to day functioning. Wants are not necessary for basic survival and are mostly
moulded by cultural influence.
3. Demands:
When the needs and wants are supported by an ability to pay, it becomes a
demand.

15. Marketing Concept
• Marketing concept is a set of strategies that the firms adopt where they
analyze the needs of their customers and implement strategies to fulfil
those needs which will result in an increase in sales, profit
maximization and also beat the existing competition.

16. Types of Marketing Concept
Five types of marketing concepts are as follows:
1. Production Concept
2. Product Concept
3. Selling concept
4. Marketing concept
5. Societal marketing concept

19. Production Concept
This concept was based on the assumption that customers are
primarily interested in products which are accessible and
affordable.
This concept was introduced at a time when business was focused
mainly on production. It says that a business will be able to lower
costs by producing more quantity or mass production of goods.
Examples: McDonald’s and fast food chains in general also aim to
ace their operations.

21. Product Concept
The product concept is based on the assumption that customers
will be more inclined towards products that are offering more
quality, innovative features and top-level performance.
In this type of marketing concept, a business focuses on creating
high-quality products and refining it every time in order to
develop a better and improved product.
Examples: Ford’s automobiles are a very good example of
product. When Ford pushed a large number of automobiles in the
market, more people bought its vehicles.

23. Selling Concept
While the previous two concepts focused on production, the selling
concept is focused on selling. It believes that customers will be
buying products only when the product is aggressively marketed
by the company.
It does not focus on building relationships with customers, and
ensuring customer satisfaction is also not deemed
necessary.(wholesales)
For example, blood donations and insurance policies come under
the category of sale concept, where the marketer believes that their
job is done after making the transaction.

25. Marketing Concept
A marketing concept places the Centre of focus on the customer.
All the activities that are undertaken by an organization are done
keeping the customer in mind.
The organizations are more concerned about creating value
propositions for the customers, which will differentiate them from
the competition.

27. Societal Marketing Concept
• This is the fifth and most advanced form of the marketing
concept. Here the focus is on needs and wants of the customer as
well as ensuring the safety of the customer and society first.
• It believes in giving back to society and making the world a
better place for all human beings.(tata co)
For example, we all like sweet, spicy, and fast foods. We all desire
the same things whenever we go out, but it doesn’t imply that it’s
good for our health and the well-being of the whole society.

29. Customer Value
Customer value is best defined as how much a product or service is worth
to a customer. It’s a measure of all the costs and benefits associated with a
product or service.
Examples include price, quality, and what the product or service can do for
that particular person.
Customer value is the perceived benefit that a customer derives from
consuming or interacting with a product, service, or experience. The
customer value principle can apply to tangible (physical goods) products
and intangible (services) products.
Customer value is not just about the monetary cost of a product or service.
It also includes any non-monetary benefits that customers receive from it -
such as time saved or increased productivity.

33. Customer Creation
Customer development is a process of obtaining customer
insights that can be used to create, review and optimize your
ideas in product development.
Customer development helps you quickly discover the real
problem your customers are trying to solve and whether you
have a valuable solution

35. Selling Marketing
Definition
The selling theory believes that if companies and customers are
dropped detached, then the customers are not going to purchase
enough commodities produced by the enterprise. The notion can be
employed argumentatively, in the case of commodities that are not
solicited.
The marketing theory is a business plan, which affirms that the
enterprise’s profit lies in growing more efficient than the
opponents, in manufacturing, producing and imparting exceptional
consumer value to the target marketplace.
Related to
Constraining customer’s perception of commodities and services. Leading commodities and services towards the consumer’s
perception.
Beginning point
Factory Marketplace
Concentrates on
Product Consumer needs
Perspective
Inside out Outside in
Business Planning
Short term Long term
Orientation
Volume Profit
Cost Price
Cost of Production Market ascertained

36. Marketing Management
• Marketing Management is the process of planning,
organizing, controlling, and implementing marketing
programmes, policies, strategies, and tactics in order to
create and satisfy demand for a company’s products or
services in order to be profitable.

37. Function of marketing Management
• Defining objective
• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Analysis and evaluation

38. Marketing Environment
Marketing Environment: The marketing environment refers to all
internal and external factors, which directly or indirectly influence the
organization’s decisions related to marketing activities.
Internal factors are within the control of an organization; whereas,
external factors do not fall within its control.
The external factors include government, technological, economical,
social, and competitive forces; whereas, organization’s strengths,
weaknesses, and competencies form the part of internal factors.

39. Importance of Marketing Environment
• Identification of SWOT
• Explore & exploit business opportunities
• Respond to new demands & trends
• To grow & stay alive in competition
• Ensure effective utilization of resources
• To build brand reputation
• Proactive approach & strategy building

40. Components of Marketing Environment
•Micro Environment
•Macro Environment

41. Micro Environment
• The micro environment consists of the factors in firm’s immediate
environment that affect the performance of the company.
• Functional areas of business, competitors, suppliers, other marketing
intermediaries and stake holders
• The elements of micro environment can be controlled by business firm
and controlled in order to provide complete customer satisfaction.
• The aim of marketing is to maximize profits by satisfying the
customer requirements and this objective can be accomplished through
modification of the micro environmental factors over which marketer
has control in such a way as to optimize this objective

42. Study methodology
• SWOT analysis: strengths, weakness, opportunities
and threats.

43. Macro Environment
• Macro environment is the indirect action environment as it may not
have an immediate direct effect on the operations but nevertheless
have influence.
• Demographic, political, economic, socio-cultural, technological, legal
and natural environmental.
• The elements of macro environment cannot be controlled by business
firm
• Analysis of macro-environment is essential to understand the external
forces of the organizational boundaries that are helping to shape of the
organization and also macro-environment study provides combines
both facilitating and inhibiting influences on the performance business

44. Study methodology
• PESTEL analysis stands for political, Economical, Social,
Technological, Environmental and legal.

45. Marketing Mix
• Marketing Mix is a set of marketing tool or tactics, used to promote a
product or services in the market and sell it. It is about positioning a
product and deciding it to sell in the right place, at the right price and
right time.
• The product will then be sold, according to marketing and promotional
strategy.
• The components of the marketing mix consist of 4Ps Product, Price,
Place, and Promotion.

47. Product in Marketing Mix
• A product is a commodity, produced or built to satisfy the need of an
individual or a group.
• The product can be intangible or tangible as it can be in the form of
services or goods.
• It is important to do extensive research before developing a product as
it has a fluctuating life cycle, from the growth phase to the maturity
phase to the sales decline phase.
• A product has a certain life cycle that includes the growth phase, the
maturity phase, and the sales decline phase.

48. Price in Marketing Mix
• The price of the product is basically the amount that a customer pays
for to enjoy it. Price is the most critical element of a marketing plan
because it dictates a company’s survival and profit.
• Adjusting the price of the product, even a little bit has a big impact on
the entire marketing strategy as well as greatly affecting the sales and
demand of the product in the market.
• Things to keep on mind while determining the cost of the product are,
the competitor’s price, list price, customer location, discount, terms of
sale, etc.,

49. Place in Marketing Mix
•Placement or distribution is a very important part
of the marketing mix strategy. We should
position and distribute our product in a place that
is easily accessible to potential buyers/customers.

50. Promotion in Marketing Mix
• It is a marketing communication process that helps the company to
publicize the product and its features to the public.
• It is the most expensive and essential components of the marketing
mix, that helps to grab the attention of the customers and influence
them to buy the product.
• Most of the marketers use promotion tactics to promote their product
and reach out to the public or the target audience. The promotion
might include direct marketing, advertising, personal branding, sales
promotion, etc.

51. Module 2: Consumer Behaviour & Market
Segmentation
12 Hrs
Consumer Behaviour: Meaning and importance of
consumer behaviour-Consumer buying decision
process; Factors influencing consumer buying behavior.
Market Segmentation: Meaning, importance and bases
of market segmentation.

53. Consumer Behaviour
• Consumer behavior is the process whereby individuals decide whether,
when, what, how and from where to purchase goods and services.
• Definition of Consumer Behaviour: Defined as the behavior that the
consumers display in searching, purchasing, using, evaluating and
disposing of the services that they except will satisfy their needs

54. Importance of Consumer Behaviour
• Identifying market opportunity
• Selecting target market
• Customer retention
• Dynamic nature of market
• Marketing-mix decisions
• Effective use of productive resources
• Fulfil varied consumer preferences
• Address custom needs

55. Consumer Buying Process

56. Consumer Buying Process
Stage of Problem Recognition
Stage of Information Search
Stage of Alternative Evaluation
Stage of Purchase Decision
Stage of Post Purchase Behaviour

57. Factors Influencing Consumer Behaviour
The consumer decision process explains the internal
process as well as individual behaviour for making
product or service decisions.
1.Cultural Factors
2.Social Factors
3.Personal Factors
4.Psychological Factors
5.Economic Factors

60. Personal Factors influencing Consumer Behaviour:
Age - People of different ages have different needs.
Occupation - Professionals, businessman, salaried-workers have
different demands.
Life Cycle Stage - Newly born, Teenager, Bachelor, Married, Parent,
Grand Parent
Lifestyle - Achievers, Strugglers, Strivers, Makers
Personality - Aggressive, Shy, Introvert, Extrovert, Conservative,
Experimental
• Self-Concept - One's perceptions towards themselves.

65. What is Market Segmentation?
• Market segmentation is the process of dividing a total market into
market groups consisting of people who have relatively similar
product needs, tastes, and preferences.
• The purpose is to design a marketing mix strategy that more precisely
matches the needs of individuals in a selected market segment.

66. Importance of market segmentation
•Adjustment of product and marketing appeals
•Better position to spot marketing opportunities
•Allocation of marketing budget
•Effective competition with rivals
•Effective marketing programme
Evaluation of marketing activities

67. Bases of Market Segmentation