2. INTRODUCTION
Marketing is everywhere and it affects our day- to-day life in every
possible manner.
Formally or informally people and organizations engage in a vast
number of activities that could be called as Marketing.
Good marketing is no accident, but a result of careful planning and
execution. It is both an art and science.
3. DEFINITION
• Marketing has been defined as all activities involved in the creation of
place, time and possession utilities.
• Marketing is concerned with handling and transportation of goods
from the point of production to the point of consumption.
• Marketing is the performance of business activities that direct flow of
goods and services from producer to consumer.
4. IMPORTANCE OF MARKETING TO COMPANIES
Sound marketing is critical to the success of the organisation in the
following ways:
Helps in income generation.
Helps in planning and decision-making
Helps in distribution.
Helps in exchanging information.
Helps to adapt to changing environment.
Expands global presence.
Helps to earn goodwill.
5. IMPORTANCE OF MARKETING TO CONSUMERS
Provides quality products.
Provides variety of products.
Improves knowledge of consumers.
Helps in selection.
Consumer satisfaction.
Protects from cheap products
satisfies the needs and wants
6. IMPORTANCE OF MARKETING TO SOCIETY
Marketing bridges the gap between firm and society.
Provides employment.
Raises standard of living.
Creates utilities.
Reduces costs.
Solves social problems.
Makes life easier.
Enriches society.
7. IMPORTANCE OF MARKETING TO ECONOMY
It stimulates research and innovation
Saves the economy from depression.
Increase in national income
Economic growth.
Ploughing back of resources
8. Functions of Marketing
Functions of Exchange Functions of Physical
supply
Facilitating Functions
-Product planning -Transportation -Financing
-Buying and assembling -Storage -Risk taking
-Selling and advertising -Warehousing -Collecting market
information
-Standardization and
grading
10. Production Concept (before 1930)
Those companies who believe in this philosophy think that if the
goods/services are cheap and they can be made available at many
places, there cannot be any problem regarding sale.
Keeping in mind the same philosophy these companies put in all their
marketing efforts in reducing the cost of production and strengthening
their distribution system.
Continues…
11. In order to reduce the cost of production and to bring it down to the
minimum level, these companies indulge in large scale production.
This helps them in effecting the economics of the large scale
production.
Consequently, the cost of production per unit is reduced.
The utility of this philosophy is apparent only when demand exceeds
supply.
12. Product Concept: (1930- 1940)
Those companies who believe in this philosophy are of the opinion
that if the quality of goods or services is of good standard, the
customers can be easily attracted.
The basis of this thinking is that the customers get attracted towards
the products of good quality.
On the basis of this philosophy or idea these companies direct their
marketing efforts to increasing the quality of their product.
Continues…
13. It is a firm belief of the followers of the product concept that the
customers get attracted to the products of good quality.
This is not the absolute truth because it is not the only basis of buying
goods.
The customers do take care of the price of the products, its
availability, etc.
A good quality product and high price can upset the budget of a
customer.
Therefore, it can be said that only the quality of the product is not the
only way to the success of marketing.
14. Selling Concept: (1940-1950)
• Those companies who believe in this concept think that leaving alone
the customers will not help.
• Instead there is a need to attract the customers towards them.
• They think that goods are not bought but they have to be sold. The
basis of this thinking is that the customers can be attracted.
Continues….
15. • Keeping in view this concept these companies concentrate their
marketing efforts towards educating and attracting the customers.
• In such a case their main thinking is ‘selling what you have’.
• This concept offers the idea that by repeated efforts one can sell-
anything to the customers.
• This may be right for some time, but you cannot do it for a long-time.
16. Marketing Concept :(1950 after)
• Those companies who believe in this concept are of the opinion that
success can be achieved only through consumer satisfaction.
• The basis of this thinking is that only those goods/service should be
made available which the consumers want or desire and not the things
which you can do.
• In other words, they do not sell what they can make but they make
what they can sell.
Continues…
17. • Keeping in mind this idea, these companies direct their marketing
efforts to achieve consumer satisfaction.
• In short, it can be said that it is a modern concept and by adopting it
profit can be earned on a long-term basis.
18. Societal Marketing Concept
oThis concept stresses not only the customer satisfaction but also gives
importance to Consumer Welfare/Societal Welfare.
oThis concept is almost a step further than the marketing concept.
oUnder this concept, it is believed that mere satisfaction of the
consumers would not help and the welfare of the whole society has to
be kept in mind.
Continues…
19. oFor example, if a company produces a vehicle which consumes less
petrol but spreads pollution, it will result in only consumer satisfaction
and not the social welfare.
oPrimarily two elements are included under social welfare-high-level of
human life and pollution free atmosphere.
oTherefore, the companies believing in this concept direct all their
marketing efforts towards the achievement of consumer satisfaction
and social welfare.
20. Difference between Marketing and Selling
S.NO SELLING MARKETING
1 Selling starts with the seller. Marketing starts with the buyers.
2 Selling emphasizes on profit Marketing emphasizes on
identification of a market Opportunity.
3 Selling views business as a “Goods
producing processes”.
Marketing views business as a
customer satisfying process
4 It over emphasizes the ‘exchange’
aspect
It concerns primarily with the ‘vale
satisfactions’
5 Seller’s convenience dominates the
formulation of the ‘marketing mix’.
Buyer determines the shape of the
‘marketing mix’.
21. 6 The firm makes the product first the then
decides how to sell it and make profit.
The customer determines what is to be offered
as a ‘product’and the firm makes a ‘total
product customers.
7 Seller’s motives dominate marketing
communications.
Marketing communications acts as the tool
for communicating the benefits/ satisfactions
of the product to the consumers
8 Costs determine price. Consumer determines price.
9 There is no coordination among the different
functions of the total marketing task.
Emphasis is on integrated marketing
approach
10 ‘Selling’views the customer as the last link
in the business. ‘
Marketing’views the customer as the very
purpose of the business.
23. Marketing Mix
• Marketers use different tools in order to get the desired response from
the customers or best satisfy their needs.
• These tools are known as The Marketing Mix.
• Marketing Mix is probably the most famous term in marketing.
• Marketing Mix is a combination of marketing tools that a company
uses to satisfy their target customers and achieving organizational
goals. Continues….
24. McCarthy classified all these marketing tools under four broad
categories:
Product
Price
Place
Promotion
These four elements are the basic components of a marketing plan and
are collectively called 4 P’s of marketing.
4 P’s pertain more to physical products than services.
Continues….
25. Below is an illustration for marketing mix.
The important thing to note is that all these four P’s (variable) are
controllable, subject to internal and external constraints of marketing
environment.
Marketers, using different blends of these variables, can target
different group of customers having different needs.
So, a customer may call marketing mix “the offering”.
26. Product:
• Product is the actual offering by the company to its targeted customers
which also includes value added stuff.
• Product may be tangible (goods) or intangible (services).
• While formulating the marketing strategy, product decisions include:
• What to offer?
• Brand name
• Packaging
• Quality
• Appearance
• Functionality
• Accessories
• Installation
• After sale services
• Warranty
27. Price:
Price includes the pricing strategy of the company for its products.
How much customer should pay for a product?
Pricing strategy not only related to the profit margins but also helps in
finding target customers.
Pricing decision also influence the choice of marketing channels.
Continues…
28. Price decisions include: Pricing Strategy (Penetration, Skim, etc)
List Price payment period Discounts Financing Credit terms
Using price as a weapon for rivals is as old as mankind.
But it’s risky too.
Consumers are often sensitive for price, discounts and additional
offers.
Another aspect of pricing is that expensive products are considered of
good quality.
29. Place:
(Placement) it not only includes the place where the product is placed,
all those activities performed by the company to ensure the availability
of the product to the targeted customers.
Availability of the product at the right place, at the right time and in the
right quantity is crucial in placement decisions.
Placement decisions include:
Placement
Distribution channels
Logistics
Inventory
Order processing
Market coverage
selection of channel members
30. Promotion:
Promotion includes all communication and selling activities to persuade
future prospects to buy the product.
Promotion decisions include:
Advertising
Media Types
Message
Budgets
Sales promotion
Personal selling
Public relations
Direct marketing
31. INDIAN MARKET & ITS ENVIRONMENT
It is difficult to analyze the environmental factors affecting Indian
market.
Ours is a vast country with various religions, caste, sub-caste,
languages, culture, etc.
Each of these factors operates at different levels & art different places.
1. Vast Market:
2. Rural Market:
3. Cultural & Religion:
4. Economic Conditions:
5.Government:
6.Intermediaries:
7.Press:
8.Technology:
32. Vast Market:
The Indian market is the second largest in the world considering its
population.
If consumption is considered, it has one of the lowest levels of consumption.
Hence, it can be said that majority of the market for various products has
been left untapped.
Region-wise, the Indian Market can be broadly classified into Four Parts:
a. Northern Market
b. Southern Market
c. Western Market.
d. Eastern Market
33. Rural Market:
Majority of the Indians live in rural areas.
Hence, rural markets have a significant influence on the company’s
marketing strategy
Cultural & Religion:
India is a country with many religions each religion has its own culture
& most of the Indians are religious.
The culture affects the habits of people.
Hence, it has to be considered before deciding what is to be sold.
Eg: Jainism completely prohibits the consumptions of meat. Hence, it is
difficult to sell meat where Jains are living
34. Economic Conditions:
India is one of the fastest developing countries.
The standard of living is increasing every year.
This indicates that the marketing opportunities in our country are vast.
Government:
We are following the policy of mixed Economy i.e., Market is neither
totally free (Capitalism) nor it is fully controlled (Socialism).
The government encourages consumerism & hence he marketers are
gradually accepting the marketing concept.
35. Intermediaries:
Our country has two types of distribution system.
They are:
a. Public distribution system, where essential commodities are directly
sold to the consumers through government agencies.
b. Open distribution system, where the products are sold in the open
market.
Continues…
36. The open distribution system in our country is the traditional one.
The chain of distribution is one of the most efficient chains of the world.
Wholesalers, retailers, brokers, etc are the intermediaries operating in
our country.
37. Press:
Press in our country is not as sophisticated as in the developed
countries.
Most of the newspapers & magazines are controlled by big business
houses.
Technology:
Most of the company/companies in our country import the technology
from other countries.
Investment in research is one of the lowest in the world.
