Basics of Marketing

1. Basics of Marketing
Subject Code - 105

2. Basics of Marketing (106)
Subject Type: Compulsory Generic Core
Course
Credits: 3
Comprehensive Concurrent Evaluation
(CCE) (50 Marks)
End Semester Evaluation (ESE)
Marks(50 Marks)

3. 105 – Basics of Marketing
 1. Introduction to Marketing:
 2. Marketing Environment:
 3. Segmentation, Target Marketing &
Positioning: Segmentation
 4. Consumer Behavior:
 5. Marketing Mix:

4. To be covered…
 Introduction to Marketing
 Definition & Concept of marketing
 Difference between selling and Marketing
 Impact of Globalization, Technology and Social
Responsibility on Marketing
 Functions of Marketing Manager
 Marketing Process

5. Why to Study Marketing????
 Diverse career choice
 Understand the customer
 Experience the global marketplace firsthand
 Take stock of Brand Equity
 Go behind the perceptions

6. Basics of
Marketing

7. Marketing Meaning & Definition
 “Marketing is the performance of business activity
that directs the flow of goods and services from the
producer to consumer.” - The American Marketing
Association
 “Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.” –
New Definition By AMA
 “Marketing is the creation and delivery of standard
of living to society.” - Paul Mazur
 Marketing is the process of determining consumer
demand for a product or service, motivating its sales
and distributing it into ultimate consumption at a

8. Functions of Marketing
 Identifying customers need
 Planning
 Product Development
 Packaging and Labeling
 Branding
 Pricing
 Promotion
 Distribution
 Setting up Customer Support Services … etc

9. Core Concepts of Marketing
• States of felt deprivation
• Physical needs –Food Clothing, warmth,
safety, shelter
• Social Needs – Belonging and affection
• Individual Needs – Knowledge,
education, self expression
• Doesn’t requires push
Need
• Form taken by human needs when shaped
by culture and individual personality
Want
• Human wants that are backed by willingness
and buying power
Demand

10. Needs:
 Physiological Needs – Food companies
(Nestle, Pepsi, Coca Cola)
 2. Safety Needs – Insurance companies (ICICI
Prudential, Tata AIG, HDFC Life)
 3. Social Needs – Social networking sites
(Facebook, Twitter, Instagram)
 4. Esteem Needs – Luxury brands (iPhone,
Mercedes, Estee Lauder)
 5. Self-actualization needs – Non-Profit
organizations and NGOs (UNICEF, Teach for
India)

11. Wants:
 "Wants" are a step ahead of needs Wants aren’t
essential for humans to survive.
 Wants aren’t permanent and it regularly changes.
As time passes, people and location change,
wants change accordingly.
 Its emerges form needs
 Eg. TV ,Mobile ,Car, AC, Fridge

12. Demand:
 Demands when a customer is willing and
having the ability to buy that needs or wants.
 You might want a BMW for a car or an iPhone for
a phone.
 But can you actually buy a BMW or an Iphone?
You can, provided you have the ability to buy
them. Example of demands –Luxury cars, 5 star
hotels etc.

13. Forms of Markets
 Physical Market
 Which is in its
physical form
 Retail shops, Malls,
Other outlets
 Virtual Market
 Which is intangible
 TV commercial – Naaptol,
Skyshop18,etc.
 Online paltform – Flipkart,
Amazon, Snapdeal,etc
 Trading Sites – Alibaba,
TradeIndia, etc.

14. Customer Value
Customer value is the customer's perception of the worth
of your product or service. Worth can mean several
things: the benefit these products or services provide to your
target market, or the value for money they offer.

15. Customer Value
The Drivers of Value:
Product function Points of differentiation Quality
Service Marketing Branding
Price Existing relationships or experience

16. Customer Satisfaction
Performance = Expectation
of Product/Services of the customer
Satisfaction
Loyal Customer
Repurchase

17. Customer Delight

18. Functions of Marketing Manager
 Determining the marketing mission for both the long and the short terms-
market expansion, market diversification, product and services diversification,
higher return on investments, etc.
 Planning the marketing programmed - stage of product planning to the
product promotion
 Coordinating the activities of production, finance, storage and warehousing,
dispatch, and service functions operating in an enterprise
 Organizing the selling function vis-a-vis the advertising function in regard
to the following specific matters like: Directions to maximize the selling
efforts, Organizing the sales territories and fixing sales quota, Selecting,
training, and placing personnel in the positions in a manner that will consolidate
the present market pressure in the industry to which the unit belongs,
Developing and controlling the channels of distribution in a way that will
improve the relations with the dealers and customers, and Selecting the
advertising media and sales promotion devices that will help increase the
selling potentialities in the existing and new markets.
 Reviewing competition and product position with special emphasis on the
aspects like market size, market share, status of competitors, relative
technical/commercial advantages and disadvantages, marketing mix

19. Functions of Marketing Manager
 Work with top management
Determining the marketing mission
Planning the marketing programme
 Supervise and coordinate business activities
 Identify Potential Markets
 Evaluate the Product
 Launch new product or services
 Select the Channels of Distribution
 Create a market plan

21. Evolution of Marketing

22. Evolution of Marketing

23. Evolution of Marketing
1. Production Concept/Orientation:
 This was a stage where producers, concentrated
on the mass production of goods for the
purpose of profit.
 They cared very little about the customers.
 Developing countries
 Increase supply as it decreases its costs
 Manger high production efficiency.
 Low prices validly available with lowest price.
 Eg. Hindustan motors. The company was the
largest car manufacturer in India before the rise
of Maruti Udyog.

24. Evolution of Marketing
2. Product Concepts/Orientation:
 High Quality of product
 Superior Products with new features.
 Time To Time
 Innovative
 High princess good Performance
 Eg: Apple's products are perceived to be very
high quality with innovative features and great
performance

25. Evolution of Marketing
3.Sales Concepts/Orientation:
 The selling activity becomes the dominant factor,
without any efforts for the satisfaction of the
consumer needs
 Just offering god product could not guarantee
marketing success as the consumer had an
opportunity to choose from many products of
same quality.
 Organization must take and most focus on Selling
& promotional activity
 Assumed that company has effective selling
 Eg: The consumer durable market of
Refrigerators, TV Washing Machines are flooded
with a number of brands.

26. Evolution of Marketing
4. Marketing Concepts/Orientation:
 Customers’ importance was realized but only as a
means of disposing of goods produced.
 Competition became more stiff. Aggressive
advertising, personal selling, large scale sales
promotion etc., are used as tools to boost sales.
 Need wants target market
 Customer orientated (King of Market)
 Good advertising
 Making your brand best

27. Evolution of Marketing
5.Social Marketing:
 Presence on social media is vital these days.
 According to a 2012 study by A Sales Guy Consulting,
78 percent of salespeople who utilize social media
outperform their peers, and the same is true in all
areas of marketing.
 Use social media to initiate two-way conversations
with customers about new product ideas, new
markets and new promotions.
 Set up customer support resources to handle service
issues in public forums.
 Develop brand champions through relationship
marketing via social media to spur word-of-mouth
advertising and cultivate lasting relationships

28. Scope of Marketing

29. Brick and CLick Model
 Branding
 Supplier Network
 Distribution
 Costs

31. Digital Markets
 Digital marketing
refers to advertising
delivered through
digital channels such
as search engines,
websites, social
media, email, and
mobile apps.
 Including online
video, display ads,
search engine
marketing, paid social
ads and social media

32. Meta Markets

33. Meta Markets
 The combination of an intangible market such as the
internet, promoting closely related tangible or
intangible products is known as a Meta market.
 The meta market will bring all these buyers and sellers
online in one place for one purpose only
Eg: An online website such as the Maruti suzuki website
for second hand cars which promotes the purchase of
physical goods (Maruti suzuki cars) is known as a meta
market
Example: of 99acres.com – a real estate portal
Eg: Yatra.com brings together the travelers and the travel
providers.
Eg: Shaadi.com brings the marriage service providers
and the groom/brides family together.

34. Impact of Globalization, Technology and
Social Responsibility on Marketing
 Increased Competition
 Improved Efficiency
 Remote Hiring
 Improved transportation, shipping and communication
 Deregulisation of Laws, liberalizing the policies
 Use of S/w for conducting various activities
 Use of online Medium for communication
 Concentrating/Taking up social responsibility activities
 Designing products that take care of the society and not
make negative impact on them
 Developing new and improvised outlook for the society as
whole
 “State what is Write and Throw what is wrong”

35. New Customer and New Companies
Capabilities
 Consumer
Capabilities
Availability of Internet
Improved Buying Power
Consumer Information
Consumer Participation
Consumer Resistance
Customer is the king
 Companies Capabilities
Increased geographical
reach
More scope for Research
Prompt Customer feedback
Many promoting tools –
social media, etc
Customization of products
can be done more easily

36. Linkage of marketing function with
all functions in the organization
Marketing and Finance
Marketing and
Production
 Budgets needed to implement
strategies and marketing plans
 Budgeting and profitability
analysis are key aspects of
marketing planning and control,
which implies financial tools
 A new product decision is made,
financial instruments and criteria
should be used to evaluate the
investment
 The development of any financial
plan requires marketing inputs
such as – sales and revenues
forecasts
 Production determines the
number and type of products
which can be marketed
 Marketing provides accurate
prediction of sales forecast for
each product for efficient
production
 The relationship between the
design of new products and
production facilities is based
on marketing research based
on estimates of demand

37. Linkage of marketing function with all
functions in the organization
Marketing and
Procurement
Marketing and Research &
Development
 Procurement is aimed at
identification and evaluation of
new raw materials and benefits of
sources of supply
 Marketing research provides
consumer acceptance of the
products which are modified due
to the shortage of raw materials
 It is used as an input for efficient
planning of procurement activities
 R & D focuses on the new product
development
 Marketing provides inputs about the
market to the R & D
 Each of the new product development
stages, from idea generation to the
final product development stage,
requires close interaction between
marketing and R & D
 HR is concerned about the hiring,
training and management of the
marketing personnel
 Marketing collaborate with the personnel
department in developing job
descriptions, screening candidates,
Marketing and HR

38. Company Orientation

39. Company Orientation
 Production Concept
 “consumers favor products that are available and
highly affordable”
 as the productivity levels increase, cost of production
decreases, and as a result, customer will be able to
purchase a product at a cheaper rate, which in turn
accelerates the sales of the company.”
 Product Concept
 customers will always buy products which are better in
terms of quality performance and features

40. Selling and Marketing Concept

41. Company Orientation
 Societal Concept
 giving back to the society what it had received from the
society
 company is profiting because of society and hence it
should also take measures to make sure the society
also benefits from the company
 Relationship Concept
 Maintaining customer relationship
 Customer feedback
 Customer queries solving

42. Market space and Marketplace
 Marketplace: Marketplac
e is a physical location
where the buyer and
seller meet each other
individually and share
information.
 The marketplace has a
physical location,
physical buyers, and
physical sellers. The
transaction occurs by
direct negotiations.
 Examples: retail
stores, outlets, supermar
kets, D mart, Big Bazaar
 Market space: Market
space is an information and
communication technology
based electronic or online
exchange environment
where the buyers and
sellers interact and transact
in a virtual environment.
 The market space is not
required to have a physical
location nor physical buyers
or sellers. All are electronic
based on information and
technology infrastructure.
 e-commerce platforms, etc.

43. Holistic Marketing
 Holistic marketing is marketing communications.
The job of marketing communications is to send
the right message to the target group. By
approaching various customer contact points, a
uniform message can be sent to the customer.
This consistency is likely to raise confidence in
the customer for your company thereby raising
the brand image.
 Samsung is an example of Holistic marketing
where the products are developed keeping the
customer in mind, The showrooms are branded in
the proper manner, the customer service is polite
and the service is fast. Thus Samsung is an

44. Holistic Marketing
 Considering business and all its parts as one single entity and giving a
shared purpose to every activity and person related to that business.

46. Holistic Marketing Orientation

47. Marketing Myopia

48. Marketing Myopia
 Marketing Myopia is a situation when a company has a
narrow-minded marketing approach and it focuses
mainly on only one aspect out of many possible
marketing attributes.
 Marketing myopia strikes in when the short term goals
are given more importance than the long term goals.
Some examples being –
 More focus on selling rather than building relationships with
the customers
 Predicting growth without conducting proper research.
 Mass production without knowing the demand.
 Giving importance to just one aspect of the marketing
attributes without focusing on what customer actually wants
 Not changing with the dynamic consumer environment

49. Marketing Myopia
 by Theodore Levitt in Harvard Business Review
 a short-sighted and inward looking approach to
marketing
 focuses on fulfillment of immediate needs of the
company rather than focusing on marketing from
consumers’ point of view.
 Examples: Hollywood didn’t even tap the
television market as it was focused just on movies.
 Nokia Mobile Nokia losing its marketing share to
android and IOS.
 I phone Mobile
 Eg: Pepsi vs coca cola competitors PepsiCo under
bards Lays Innovation
 Yahoo (worth $100 billion dollars in 2000) lost to
Google and was bought by Verizon at approx. $5
billion (2016).

51. Marketing Process

52. Paper Pattern Application Based
question
 5 question of 2 marks (may include short notes,
definition of imp terms and explain them in short)
 2 question of 5 marks (short notes or concept
based)
 3 question of 10 marks(Application based
question)