The document discusses key marketing concepts including: - The definition of marketing as a social and managerial process to satisfy needs through product creation and exchange. - The objectives of marketing which include increasing sales, creating goodwill, profit through customer satisfaction, and more. - The distinction between marketing and selling, where marketing focuses on customer needs and selling focuses on product sales. - Marketing classifications based on place, time, and competition. - An overview of marketing management and the production, product, selling, marketing, and societal concepts in marketing.

1. MARKETING-
INTRODUCTION
Principles of Marketing – Outcome 1 –
Chapter 1

2. What is Business?
Production and distribution of
goods and services
for sale
Profit

3. GENERAL TYPES OF BUSINESS
ORGANIZATIONS
 For-Profit (Business) Organizations
 Nonprofit (Business) Organizations

4. Objective of Business
 Economic Objectives
 Social Objectives

5. Factors of production
 Land
 Labor
 Capital
 Materials

6. Functions of a Business
Organization
 Human Resource Management.
 Sales and Marketing.
 Research and Development.
 Production/Operations.
 Customer Service.
 Finance and Accounts.
 Administration and IT.

7. Marketing
 Marketing touches every aspect of our life
 Our entire life ,our life styles and our existence
are continuously affected by marketing
 Marketing plays an important role satisfying
customer’s needs and wants
 Examine your daily life

8. Examine Daily life
 Write –products and services we use in our
daily life

9. Basic terms
 Market
 Need
 Want
 Demand
 Products
 Exchange and Transaction
 Value and Satisfaction

10. MARKET
 ‘Market’ originates from the Latin noun
‘Marcatus’
 ‘a place where business is conducted’
 arrangement that provides an opportunity of
exchanging goods and services for money.

11. MARKET
 Philip Kotler has defined the term market as
 “an arena for potential(possible) exchanges”.
 Market is the place where all buyers and
sellers meet for business transaction.
 Market is also described as a place where
goods and services are offered for sale,
buyers and sellers meet and the title to
goods is transferred.

12. NEED- Necessity, Human
requirement

13. Need
 Human needs are state of felt deprivation.
 It includes food, cloth, shelter, affection and
safety.
 For example:
 If we are hungry we will have a need for food

14. Want
 Wants are desires for specific satisfiers of
needs
 Wants emerge from needs
 Needs are general –Wants are specific
 Needs are natural, not created by marketers
 But Wants are created by marketers
 For example, A hungry person needs
 Food but wants chicken burger

15. Want- the form taken by a human
need
 Want-shaped by culture and individual
personality

16. Demand
 Human wants that are backed by buying
power.
 Wants become demands when people are
willing and able to spend money to buy the
products and services

17. Market Classification

18. Definition of Marketing
 A social and managerial process
 whereby individuals and groups obtain
 what they want
 by creating and exchanging products and
value with others.

19. Market and Marketing
Market Marketing
It is a group of future
customers for a
particular product
It is a process by means
of which goods and
services are exchanged
Market is narrow
concept
Marketing is a wide
concept
It includes place in
which buyers and
sellers exchange goods
and services
It includes the whole
process of distribution
and the process before
distribution

20. Nature of Marketing:
 Marketing is both consumer-oriented and
competitors-oriented.
 It starts with consumers and ends at
consumers by satisfying their needs.
 The long-term objective of marketing is profit
maximization through customer satisfaction.

21. Nature of Marketing
 Marketing must deliver goods and services in
exchange of money.
 Marketing is the most important function of
management.
 Marketing tries to satisfy and delight the
customers.
 Marketing deals with products, pricing,
distribution and promotion (4 P’s of marketing
Product, Price, Place, and Promotion).

22. Objectives of Marketing
 Objectives of Marketing: The basic objective of
marketing is to satisfy the customer needs and wants.
The other objectives of marketing are given below-
 Increase in consumption or Increase sales
 Creation of Goodwill or Make good name for
company
 Profit through customer satisfaction or Make
money by making customer happy
 Providing wide choice of Goods or provide many
types of products
 Improving quality of life or Make life better
 Satisfying the consumer or making the customer
happy

23. Objectives of Marketing
 Increase in consumption or Increase sales:
One of the objectives of marketing is to
increase the consumption of goods and
services a company produces.
 Creation of Goodwill or Make good name
for company: Marketing helps a firm in
building goodwill through selling quality goods
at reasonable prices to customers.

24. Objectives of Marketing
 Profit through customer satisfaction or
Make money by making customer happy:
Modern marketing aims at satisfying the
customer needs and wants. It recognizes the
fact that profit can be earned only through
customer satisfaction.
 Providing wide choice of Goods or provide
many types of products: Marketing aims at
providing a wide variety of products to the
customers.

25. Objectives of Marketing
 Improving quality of life or Make life better:
Marketing aims at improving quality of life of
the customers by supplying quality goods at
reasonable price.
 Satisfying the consumer or making the
customer happy: Marketing aims at getting to
know the needs of the consumer, devise a
product or service to satisfy that need and also
to effectively earn consumers goodwill.

26. Marketing Mix
 Marketing Mix is an important tool used by the
marketing managers to design the process of
marketing in an organization.
 The term “marketing mix” was introduced by
Prof. Neil H. Borden of the Harvard Business
School.

27. Marketing Mix
 Consumers requires
 Right product ,Right price, Right promotion,
Right time ,Right place(distribution system)
 The 4 P’s must be mixed in such a way as to
suit to the target market
 Marketing Mix provide maximum
satisfaction to customers and maximum
profit to the company

28. Marketing Mix
 Marketing mix
 is the set of controllable variables and their
levels that
 the firm uses to influence its target market.
 It describes combination of the four inputs
which constitutes the core of a company’s
marketing system- the product, the distribution
system, the price structure and the promotional
activities.

29. The 4 P’s of Marketing
Product Mix
 Quality, Technology
 Packaging
 Labeling
 Branding
 Trade Mark
 Merchandising
 Size, design, color, features
 Services
 Warranty
 Product line and range
Place mix
 Distribution channels
 Transportation
 Warehousing and storage
 Inventory level
 Positioning
Price Mix
 Pricing policies
 Credit terms
 Cost and profit
 Allowances and discounts
 Competition
 Terms of delivery
Promotion Mix
 Advertising
 Sales promotion
 Personal selling
 Public relations
 Publicity
 Direct responses

30. To create the right marketing mix, businesses
have to meet the following conditions:
 The product has to have the right features - for
example, it must look good and work well.
 The price must be right. Consumer will need to
buy in large numbers to produce a healthy profit.
 The goods must be in the right place at the right
time. Making sure that the goods arrive when and
where they are wanted is an important operation.
 The target group needs to be made aware of the
existence and availability of the product through
promotion. Successful promotion helps a firm to
spread costs over a larger output.

31. Marketing Management
 Marketing Management: – The art and science
of choosing target markets and building profitable
relation with them.
 There are mainly five marketing concepts under
which organizations conduct the marketing
activities.
 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing

32. Production Concept
 This states that consumers will buy goods that
are available and highly affordable.
 (consumers choose the products which are
easily available at lower prices)
 So management should focus on improving
production and distribution efficiency. In case
of production concept, emphasis is mainly laid on
achieving high production efficiency and wide
distribution coverage. The concept was based on
high demand low supply and never recognized the
importance of customers

34. Product concept
 In this concept the marketers believe that by
making superior products and improving
their quality over time, they create customers.
 This concept states that consumers will buy
products that offer most in quality,
performance and innovative (new or modern)
features.
 Superior quality
 Better performance
 New features

36. Selling Concept
 This states that consumers will not buy
enough of the product unless it undertakes an
aggressive selling (large scale selling)and
promotional efforts.
 In this concept a company uses various
selling and methods to persuade customers
to buy its products.
 The aim is to sell what they make rather
than make what the market wants.

38. Marketing concept
 This states that delivering better satisfaction by
knowing the consumers’ needs than the
competitors do.(organization finds right
product for the customers)
 Societal Marketing
 It is aimed at generating customers’
satisfaction and long-term consumer and
public welfare as a key to satisfying
organizational goals and responsibilities

39. Marketing Process
 The marketing process is a sequence of steps
used to carry out the marketing activity in any
organisation.
1.The process starts with analysis of market
environment or situation analysis to identify
opportunities in the market.
2.The second step includes fixing/ selecting
marketing targets.
3.Setting marketing strategy.
4. Decisions are taken on the marketing mix
(combination of 4P’s)
5. A follow- up or feedback links the final step
marketing controlling to the first step to rectify/

40. Marketing Process

41. Marketing Vs Selling
Marketing Selling
1. Emphasis is on customer 1. Emphasis is on the
product
2. Organization first
determines what the
customer wants and how to
make and deliver the
product to satisfy customer
2. Organization makes the
product and figure outs how
to sell the product
3. Emphasis is on in
integrated approach using
all the 4 P’s
3. Emphasis is on “Some
How Selling” to the
customer

42. Marketing Vs Selling
Marketing Selling
4. Marketing uses customer
as main purpose of business
4. Selling using customer as
a last link in the business
5. Marketing concerns with
value of satisfaction
5. Selling emphasis on
exchange aspects without
caring for value satisfaction.

43. Few more………
 Exchange of goods: The process of
obtaining a desired object from someone by
offering something in return.

44. Customer Satisfaction
 Customer Satisfaction: The extent to which
product satisfies the buyers expectations.

45. Customer Life Time Value:
 Customer Life Time Value: The value of the
entire purchases that the customer would
make over a life time.

46. De-marketing:
De-marketing: Marketing to reduce demand.
The aim is not to destroy demand but only to
reduce it or shift it.

47. Niche marketing:
 Niche marketing: It is a technique where
marketer plays a specialist role in a particular
market.
 For example: quality specialist, service
specialist, product line specialist etc.
 It is also a small market segment. For
example, sports channels like STAR Sports,
ESPN, STAR Cricket, and Fox Sports target a
niche of sports enthusiasts.

48. Review
 What is a market? Write the definition of
market.
 What are the various objectives of marketing?
 Distinguish between marketing and selling.
 Describe the market classification based on
place, time and competition.
 What is marketing management?
 What are the various concepts of marketing?