The document discusses the nature, scope and marketing mix of marketing. It defines marketing as both consumer and competitor oriented, starting with consumers and ending with consumers by satisfying their needs. It notes the long term objective is profit maximization through customer satisfaction. The document then discusses the scope of marketing, including exchange functions, physical distribution functions, facilities functions and core concepts like needs, wants, demands, market offerings, value and satisfaction, exchanges and relationships, and markets. It also defines the marketing mix as the set of controllable tactical tools including product, price, place and promotion.

1. Nature , Scope and Marketing
Mix
Dr. Chhavi Jain

2. Nature of Marketing
 Both consumer – oriented and competitor –
oriented.
 Starts with consumers and ends at consumers
by satisfying their needs.
 Long term objective is profit maximisation
through customer satisfaction.
 Integrated process based on strategies and
models.
 Must deliver goods and services in exchange of
money.

3. Scope of Marketing
Marketing
Functions
Exchange Functions
Physical Distribution
Functions
Facilities Functions

4. Exchange
Functions
Buying
Function
Assembling
Function
Selling
Function

5. Transportation
Inventory
management
Warehousing Material handling
Functions of
physical
distribution

6. Functions
of
Facilities
Financing
Risk Taking Standardisation
After sales
service

8. Core concepts
 Needs, wants and demands
 Market offerings (products, services and
experiences)
 Value and satisfaction
 Exchanges and relationships
 Markets

9. NEEDS
Needs
• Basic physical needs for food, clothing, warmth, safety
• Social needs for belonging and affection
• Individual needs for knowledge and self-expression.
Wants
• Wants shapes by culture and individual personality.
• Bengali-needs food- want rice and fish
Demands
• Wants are shaped by society and are described in
terms of objects that will satisfy needs. When backed
by buying power, wants become demands

10. MARKET OFFERINGS-
 Consumer wants and needs are
fulfilled through market offerings.

11. MARKET OFFERINGS-
• Market offerings are not limited to
physical products.
Products
• Activities or benefits offered for sale
that are essentially intangible.
Services
• Experiences, persons, places,
organisations, information, ideas.

12. Value and satisfaction
Market offerings might satisfy a given
need.
Customers form expectations about the
value and satisfaction that various market
offerings will deliver and buy accordingly.
Satisfied customers buy again and tell
others about their good experiences.
Dissatisfied customers often switch to
competitors.

13. Exchange and relationships
Marketing occurs when people decide
to satisfy needs and wants through
exchange relationships.
Exchange is the act of obtaining a
desired object from someone by
offering something in return.

14. Markets
The concepts of exchange and relationships
lead to the concept of a market.
A market is the set of actual and potential buyers
of a product.
These buyers share a particular need or want
that can be satisfied through exchange
relationships.

21. E. Jerome McCarthy

22. Marketing mix
 The marketing mix is the set of
controllable, tactical marketing tools that
the firm blends to produce the response it
wants in the market.

26. Category Definition/ Explanation Typical Marketing Decisions
Product
A product refers to an
item that satisfies the
consumer's needs or
wants.
Products may be
tangible (goods) or
intangible (services,
ideas or experiences).
 Product design – features,
quality
 Product assortment – product
range, product mix, product
lines
 Branding
 Packaging and labelling
 Services (complementary
service, after-sales service,
service level)
 Guarantees and warranties
 Returns
 Managing products through
the life-cycle

27. Product
 Goods-and-services combination the
company offers to the target market.
 It should fit the task consumers want
it for, it should work and it should be
what the consumers are expecting to
get.

29. Category Definition/ Explanation Typical Marketing
Decisions
Price
Price refers to the amount a
customer pays for a product.
Price may also refer to the sacrifice
consumers are prepared to make to
acquire a product.
(e.g. time or effort)
Price is the only variable that has
implications for revenue.
Price also includes considerations
of customer perceived value.
 Price strategy
 Price tactics
 Price-setting
 Allowances – e.g. rebates
for distributors
 Discounts – for customers
 Payment terms – credit,
payment methods

30. Price
 The amount of money customers must
pay to obtain the product.
 The Product should always be seen as
representing good value for money.

31. Category Definition/ Explanation Typical Marketing Decisions
Place
Refers to providing
customer access
Considers providing
convenience for
consumer.
 Strategies such as intensive
distribution, selective distribution,
exclusive distribution
 Franchising
 Market coverage
 Channel member selection and
channel member relationships
 Assortment
 Location decisions
 Inventory
 Transport, warehousing and
logistics

32. Place
 Company activities that make the product available
to target consumers.
 The product should be available from where your
target consumer finds it easiest to shop.

33. Category Definition/ Explanation Typical Marketing Decisions
Promotion
Promotion refers to
marketing communications
May comprise elements such
as: advertising, PR, direct
marketing and sales
promotion.
 Promotional mix -
appropriate balance of
advertising, PR, direct
marketing and sales
promotion
 Message strategy - what is
to be communicated
 Channel/ media strategy -
how to reach the target
audience
 Message Frequency - how
often to communicate

34. Promotion
 Activities that communicate the merits of product and
PERSUADE target customers to buy it.
 Advertising, PR, Sales Promotion, Personal Selling
and, in more recent times, Social Media are all key
communication tools for an organisation.
 These tools should be used to put across the
organisation’s message to the correct audiences in
the manner they would most like to hear, whether it
be informative or appealing to their emotions.

36. Extended Marketing Mix
 Booms and Bitner

37. Category Definition/ Explanation Typical Marketing
Decisions
People
Human actors who participate in
service delivery.
Service personnel who represent
the company's values to
customers.
Interactions between customers.
Interactions between employees
and customers.
 Staff recruitment and
training
 Uniforms
 Scripting
 Queuing systems,
managing waits
 Handling complaints,
service failures
 Managing social
interactions

38. People
 All companies are reliant on the people who run
them from front line Sales staff to the Managing
Director.
 Having the right people is essential because they are
as much a part of business offering as the
products/services offered

39. Category Definition/ Explanation Typical Marketing Decisions
Process
The procedures, mechanisms
and flow of activities by which
service is delivered.
 Process design
 Blueprinting (i.e. flowcharting)
service processes
 Standardization vs customization
decisions
 Diagnosing fail-points, critical
incidents and system failures
 Monitoring and tracking service
performance
 Analysis of resource requirements
and allocation
 Creation and measurement of key
performance indicators (KPIs)
 Alignment with Best Practices
 Preparation of operations manuals

40. Process
The delivery of your service is usually done with the
customer present so how the service is delivered is
once again part of what the consumer is paying for.

41. Category Definition/ Explanation Typical Marketing Decisions
Physical evidence
The environment in which service occurs.
The space where customers and service
personnel interact.
Tangible commodities (e.g. equipment,
furniture) that facilitate service
performance.
Artifacts that remind customers of a service
performance.
 Facilities (e.g. furniture,
equipment, access)
 Spatial layout (e.g.
functionality, efficiency)
 Signage (e.g. directional
signage, symbols, other
signage)
 Interior design (e.g.
furniture, color schemes)
 Ambient conditions (e.g.
noise, air, temperature)
 Design of livery (e.g.
stationery, brochures,
menus, etc.)
 Artifacts: (e.g. souvenirs,
mementos, etc.)

42. Physical Evidence –
 Almost all services include some physical elements
even if the bulk of what the consumer is paying for is
intangible.
 For example a hair salon would provide their client
with a completed hairdo and an insurance company
would give their customers some form of printed
material. Even if the material is not physically printed
(in the case of PDF’s) they are still receiving a
“physical product” by this definition.

46. Products/Services: How can you develop your
products or services?
Prices/Fees: How can we change our pricing model?
Place/Access: What new distribution options are
there for customers to experience our product, e.g.
online, in-store, mobile etc.
Promotion: How can we add to or substitute the
combination within paid, owned and earned media
channels?
Physical Evidence: How we reassure our customers,
e.g. impressive buildings, well-trained staff, great
website?
People: Who are our people and are there skills
gaps?
Partners: Are we seeking new partners and
managing existing partners well?.

47. Scope of Marketing
 Diverse Subject Areas
 Broadening Customer Values
 Entities of Marketing
 Wide Markets
 Changing Role
 Broadening of Marketing’s Domain
 Nonbusiness field of marketing
 Application areas of marketing
 Marketing in service industries

48. Importance of Marketing

49. lifebuoy
 https://www.youtube.com/watch?v=e_2tQekUDy8

50. Dettol ka dhula
 https://www.youtube.com/watch?v=nakjYbCmvYQ

52.  Cost – According to Lauterborn, price is not the only cost
incurred when purchasing a product. Cost of conscience
or opportunity cost is also part of the cost of product
ownership.
 Consumer Wants and Needs – A company should only
sell a product that addresses consumer demand. So,
marketers and business researchers should carefully
study the consumer wants and needs.
 Communication – According to Lauterborn, “promotion” is
manipulative while communication is “cooperative”.
Marketers should aim to create an open dialogue with
potential clients based on their needs and wants.
 Convenience – The product should be readily available to
the consumers. Marketers should strategically place the
products in several visible distribution points.