Chapter 1

Chapter 1
INTRODUCTION TO MARKETING
MANU H NATESH MBA,M.Com. BMSEAC
manu@bmsec.ac.in

MARKET
• a regular gathering of people for the purchase
and sale of provisions, livestock, and other
commodities.
• an area or arena in which commercial dealings
are conducted.
• advertise or promote (something).
manu@bmsec.ac.in

MARKETING
Dr. Philip Kotler defines marketing as “the science
and art of exploring, creating, and delivering value
to satisfy the needs of a target market at a profit.
“Marketing is concerned with the people and
activities involved in the flow of goods and services
from producer to consumer” - AMA
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manu@bmsec.ac.in

MARKETING MANAGEMENT
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• The management process through which goods and
services move from concept to the customer. It
includes the coordination of four elements called the 4
P's of marketing:
• (1) identification, selection and development of
a product,
• (2) determination of its price,
• (3) selection of a distribution
channel to reach the customer's place, and
• (4) development and implementation of a promotional
strategy.
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CONCEPTS OF MARKETING
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Approaches to study marketing
• Commodity approach - In commodity
approach of marketing we study the flow of a
certain commodity and its journey from
producer to consumers or buyers. We can
have a complete picture of the field of
marketing.
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• Functional approach - Functional approach
attention is draw towards specialized services
or functions or activities performed by the
marketers.
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• Institutional approach - Institutional approach
focuses on the marketing institutions or
agencies like wholesalers, retailers, transport
undertaking, banks, insurance companies etc
who generally participate in discharging their
marketing responsibilities during the
movement of distribution of goods.
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• Systems approach - System approach is a set
of interacting or interdependent components
or groups coordinated to form a uniformed
whole and organized marketing activities to
accomplish a set of objectives, we have the
objective, inputs, processors, outputs and
feedback.
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• Managerial or decision making approach
Finally decision making or management
approach combines some features of the
commodity, institutional, functional
approaches and seek to relate them from the
decision making view point. Areas of
marketing decisions are marketing
organizations, product, distribution, policies,
pricing , advertising and personal selling.
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Functions of marketing
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Recent trends in marketing
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• E – business
• Tele marketing
• Mobile marketing
• Green marketing
• Retailing
• Customer relationship management(CRM)
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• E-business (electronic business) is the conduct of business
processes on the Internet. These electronic business
processes include buying and selling products, supplies
and services; servicing customers; processing payments;
managing production control; collaborating with business
partners; sharing information; running automated
employee services; recruiting; and more.
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E business models
• B2C The business-to-consumer, or B2C, model of
e-business sells products directly to retail
consumers online. Amazon.com is an example of
a B2C model.
• B2B
• The business-to-business, or B2B, model involves
companies using the Internet to conduct
transactions with one other. B2B businesses
generate revenue from direct sales.
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• C2BConsumer-to-business, or C2B, is a unique
e-business model in which consumers create
value and demand for products. Reverse
auctions are a common characteristic of C2B
models, in which consumers drive
transactions and offer their own prices for
products.
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• C2C Consumer-to-consumer, or C2C, e-
business models enable consumers to behave
as buyers and sellers in third-party-facilitated
online marketplaces.
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Tele marketing
• the marketing of goods or services by means of
telephone calls, typically unsolicited, to potential
customers.
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Mobile marketing
• Mobile marketing is
promotional activity
designed for delivery to
cell phones, smart
phones and other
handheld devices,
usually as a component
of a multi-channel
campaign.
manu@bmsec.ac.in

Green marketing
• Green marketing is the marketing of products that
are presumed to be environmentally preferable to
others. Thus green marketing incorporates a broad
range of activities, including product modification,
changes to the production process, sustainable
packaging, as well as modifying advertising.MANU H NATESH MBA,M.Com. BMSEAC
manu@bmsec.ac.in

Retailing
• Retailing is a trading activity directly related to the
sale of goods and services to the ultimate consumer
for personal and non business use.
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Characteristics
• He is regarded as the last link in the chain of
distribution.
• He purchases goods in large quantities from the
wholesaler and sell in small quantity to the consumer.
• He deals in general products or a variety of
merchandise.
• He develops personal contact with the consumer.
• He aims at providing maximum satisfaction to the
consumer.
• He has a limited sphere in the market.
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Functions
• The retailer buys a variety of products from the wholesaler or
a number of wholesalers. He thus performs two functions like
buying of goods and assembling of goods.
• The retailer performs storing function by stocking the goods
for a consumer.
• He develops personal contact with the consumers and gives
them goods on credit.
• He bears the risks in connection with Physical Spoilage of
goods and fall in price. Besides he bears risks on account of
fire, theft, deterioration in the quality and spoilage of goods.
• He resorts to standardization and grading of goods in such a
way that these are accepted by the customers.
• He makes arrangement for delivery of goods and supply
valuable market information to both wholesaler and the
consumer.
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Service of a Retailer
To Customers:
• He provides ready stock of goods and as such he sells and
quantity of goods desired by the customers.
• He keeps a large variety of goods produced by different
producers and thereby ensures a wide variety of choice to
the customers.
• He relives the consumers of maintaining large quantity of
goods for future period because he himself holds large
stock of goods.
• He develops personal relationship with the customers by
giving them credit.
• he provides free-home delivery service to the customers.
• He informs the new product to the customers.
• he makes arrangement for replacement of goods when he
receive complaints.
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To Wholesaler
• He gives valuable market information with regard to
taste, fashion and demand for the goods to the
wholesaler.
• The retailer maintains direct contact with the
customers and so he relieves the wholesaler with
regard to maintenance of direct contact.
• He helps the wholesaler in getting their goods
distributed to the consumer.
• He is regarded as an important link between the
wholesaler and the consumer.
• He creates demand for the products by displaying the
goods to the consumers.
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Customer relationship
management (CRM))
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Customer relationship
management (CRM))
• Customer relationship management (CRM) is
an approach to managing a company's
interaction with current and future customers.
It often involves using technology to organize,
automate, and synchronize sales,
marketing, customerservice, and technical
support.
manu@bmsec.ac.in

Benefits of CRM
• Improved Customer Experience
• Automated Analytics and Reporting
• Better Coordination and Cooperation
• More Administrative Support
• Growth in numbers of customers
• Long term profitability and sustainability
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