The word ‘Market’ is derived from the Latin word ‘Marcatus’, means a place where business is conducted. A market is a place which allows the purchaser and the seller to invent and gather information and lets them carry-out exchange of various products and services. In other words, the meaning of market refers to a place where the trading of goods takes place. Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges which satisfy individual and organizational objectives Marketing is an effective way of engaging customers Marketing helps to build and maintain the company’s reputation. Marketing helps to build a relationship between a business and its customers Marketing is a communication channel used to inform customers Marketing helps to boosts sales Marketing aids in providing insights about your business Marketing helps your business to maintain relevance Marketing creates revenue options Marketing helps the management team to make informed decisions

1. INTRODUCTION
TO
MARKETING

2. Meaning
Definition
A marketer is an individual who is responsible for creating an involvement chain
between the customer and the product or service offered by the company. This
involvement is garnered by maintaining huge stocks of goods for supply or properly
advertising the product to invite huge sales.
According to Philip Kotler “A market is an area for potential exchanges.”
According to Pyle Market includes both place and region in which buyers
and sellers are in free competition with one another
The word ‘Market’ is derived from the Latin word ‘Marcatus’, means a place where
business is conducted.
A market is a place which allows the purchaser and the seller to invent and gather
information and lets them carry-out exchange of various products and services. In other
words, the meaning of market refers to a place where the trading of goods takes place.
Meaning and definition of Market and Marketer

3. Meaning
Definition
Marketing is the process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchanges which satisfy individual
and organizational objectives
Meaning and definition of Marketing
According to Philip Kotler Marketing is a social process by which individuals and
groups obtain what they need and want through creating and exchanging products and
value with others.
1.What do customers want?
2. Can we develop a while they still
want it?
3. How can we keep our customers
satisfied?

4. Managerial Function: Marketing is all about successfully managing
the product, place, price and promotion of business to generate revenue.
Human Activity: It satisfies the never-ending needs and desires of
human beings.
Economic Function: The crucial second marketing objective is to earn
a profit.
Both Art and Science: Creating demand of the product among
consumers is an art and understanding human behaviour, and
psychology is a science.
Customer Centric: Marketing strategies are framed with the motive of
customer acquisition.
Consumer Oriented: It practices market research and surveys to know
about consumer’s taste and expectations.
Goal Oriented: It aims at accomplishing the seller’s profitability goals
and buyer’s purchasing goals.
Interactive Activity: Marketing is all about exchanging ideas and
information among buyers and sellers.
Dynamic Process: Marketing practice keeps on changing from time to
time to improve its effectiveness.
Creates Utility: It establishes utility to the consumer through four
different means; form (kind of product or service), time (whenever
needed), place (availability) and possession (ownership).

5. Scope of Marketing
1. Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study
is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase.
2. Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of buyer
behaviour helps marketer in market segmentation and targeting.
3. Production planning and development Product planning and development starts with the generation of
product idea and ends with the product development and commercialization. Product planning includes
everything from branding and packaging to product line expansion and contraction.
4. Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs
form product to product. It depends on the level of competition, product life cycle, marketing goals and
objectives, etc.
5. Distribution: Study of distribution channel is important in marketing. For maximum sales and profit
goods are required to be distributed to the maximum consumers at minimum cost.
6. Promotion: Promotion includes personal selling, sales promotion, and advertising. Right promotion mix
is crucial in accomplishment of marketing goals.
7. Consumer Satisfaction: The product or service offered must satisfy consumer. Consumer satisfaction is
the major objective of marketing.
8. Marketing Control: Marketing audit is done to control the marketing activities.

6. Functions of Marketing: According to Clark and Clark
1. Functions of Exchange 2. Functions of Physical Supply 3. Facilitating Functions
Functions of
Exchange
Buying: Involves procuring goods of required quality and quantity at a
satisfactory price. It involves assembling goods under a single
ownership for production, resale or consumption. Buying process may
involve following activities: I. Planning, Negotiating, Contracting and
Assembling
Selling: Involves finding buyers to sell goods at a satisfactory
price. Selling process may involve following activities: I.
Planning, Prospecting, Creating demand/ inducing buyers,
Negotiating and contracting.

7. Functions of
physical
Supply
The function of Physical supply of goods from the producers to consumers involves
Transportation: needs to be speedy, efficient, on-time, hassle-free and
safe delivery. Company has a choice of five modes of transportation:
Rail, Road, Air, Waterways (Shipping) and Pipelines.
Storage and Warehousing: Goods are stored for different reasons such as: Goods produced seasonally may
be used throughout the year and vice versa.
 Manufacturers store raw materials for ready supply
 Goods are also stored in the hope of getting a higher price in future

8. Facilitating
Functions
The function of Physical supply of goods from the producers to consumers involves
Financing
Risk
Taking
Sales
Promotion
Packing
And
Advertising
Branding
Market
Information
Standardization
and Grading
Pricing

9. a) Financing: Marketing department needs capital for Investing in land, buildings, furniture etc.; maintaining inventory and
extending credit to customers. Acquiring funds for these marketing purposes is known as financing.
b) Risk Taking: Marketing may face the risk of loss, fire, theft, natural calamity, price fluctuations, exchange rate fluctuations
etc. Some of these risks may be insured wholly or partly or borne by the businessman.
c) Market Information: The function of collecting, analyzing and communicating information is also important in marketing.
Modern Marketing involves setting up an efficient Marketing Information System and undertaking Market research.
d) Standardization and Grading: Standardization and Grading is a measure of quality consisting of specifications such as
size, color, appearance, shape, chemical contents, flavor etc...
e) Pricing: Generates revenue, all other functions involve costs. Pricing need to be right. Neither too high nor too low.
f) Branding: Branding is the practice of giving a specified name to a product or a group of products from one seller. Branding
helps Identify & differentiate products from those of competitors.
g) Packing and Advertising: Packing provides handling convenience, maintains freshness and quality of the product and
prevent damages or adulteration of the product. Packaging is an attractive display or an eye-catching appearance.
It informs guides, educates and protects buyers, so that they can take right decisions on what to buy.
h) Sales Promotion: are the short term promotion tools designed to stimulate customers to buy and assist sales-force/ retailers
in their sales efforts.

10. Definition of Marketing-Mix:
According to Stanton, Marketing-mix is a combination of four
elements—product, pricing structure, distribution system, and
promotional activities—used to satisfy the needs of an
organisation’s target market(s) and, at the same time, achieve its
marketing objectives.
Meaning of Marketing Mix:
The marketing mix refers to the set of actions, or tactics, that a
company uses to promote its brand or product in the market. The
4Ps make up a typical marketing mix - Price, Product, Promotion
and Place.
in other words, Marketing Mix is a combination of
marketing tools that a company uses to satisfy their target
customers and achieving organizational goals.

11. Marketing-mix is a combination of several-mixes. Marketing-mix encompasses product-mix
(brand, quality, weight, etc.); Price-mix (unit price, discount, credit, etc.); Promotion-mix
(advertising, salesmanship and sales promotion); and Place-mix (distribution channels, transport,
storage, etc.)
4 P’s of Marketing Mix
 Product: refers to the item actually being sold.
 Price: refers to the value that is put for a product
 Place: refers to the point of sale.
 Promotion: this refers to all the activities undertaken
to make the product or service known to the user and
trade.

12.  A product is any good or service that consumers want. It is a bundle of utilities or a cluster of tangible
and intangible attributes.
 Product component of the marketing- mix involves planning, developing and producing the right type
of products and services.
 It deals with the dimensions of product line, durability and other qualities.

13. PRODUCT MIX: Product mix, also known as product assortment, refers to the total number of product
lines a company offers to its customers. The four dimensions to a company's product mix include width,
length, depth and consistency.
1. Width also known as breadth, refers to the number of product lines offered by a company.
2. Length refers to the total number of products in a firm’s product mix
3. Depth refers to the number of variations within a product line.
4. Consistency refers to how closely related product lines are to each other.

14.  Refers to the value you put for your product.
 Pricing is mainly determined by the cost of the product and also how
much the customer would be willing to pay.
 If we price it too high no one buys, if we price it too low, company
makes losses. So we have to devise the right pricing strategy to make
the mix perfect.
 Formulating the right pricing strategy depends upon a number of
factors such as the cost of production, competitor’s pricing strategy,
ability of the target market to pay, supply-demand, brand
personality, and so on. It covers the following aspects:
List Price, Discounts, Allowances, Financing, Leasing Options
Pricing Strategies:
Broadly speaking, there are three approaches to pricing a product:
Cost-oriented Pricing: The profit margin is added on top of the cost of production
Customer-based Pricing: Pricing is decided on the basis of what the market segment
can pay for the product
Competitor Pricing: The prices set by competitors influence the company’s pricing strategy

16.  This element of the marketing-mix involves choice of the place
where products are to be displayed and made available to the
customers.
 The objective of selecting and managing trade channels is to
provide the products to the right customer at the right time
and place on a continuing basis.
 In deciding where and through whom to sell, management
should consider where the customer wants the goods to be
available.
 It implies that a suitable marketing channel is to be chosen,
to reach the customers, because the better the chain of
distribution, the higher would be the coverage.
 This involves a chain of individuals and institutions
like distributors, wholesalers and retailers who constitute
firm’s distribution network (also called a channel of
distribution).
 The channel through which the products are distributed to
the final customer are known as channel of distribution

18. PROMOTIONAL MIX: The term ‘promotional mix’ is used to refer to the combination of different
kinds of promotional tools used by a firm to advertise and sell its products.
Philip Kotler opines, “A company’s total marketing communication mix also called promotion
mix consists of specific blends of advertising, personal selling, sales promotion, public
relations and direct marketing tools that the company use to pursue its advertising and
marketing objectives.”

21. Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge
based economy: People Process Physical Evidence

22. The ‘people’ element of the 7Ps involves anyone
directly, or indirectly, involved in the business-side
of the enterprise. Those people who are involved in
selling a product or service, designing it, managing
teams, representing customers... Etc.,
 The most cost-effective means of
differentiating yourself from the competition is
the degree of customer focus, competence and
efficiency of the People the organisation
employs
 Customers experience this as the degree of
Care and Concern they receive from the
organisation

23.  It includes,
 Marketers: The 7Ps model highlights the importance of hiring the best talent for every
position on your marketing team.
 Sales team members: These are the people who typically handle the first person-to-
person interactions with your customers – and often seal the deal.
 Customer service team: The individuals tasked with keeping your customers happy,
even when things aren’t quite going to plan.
 Recruitment: Hiring the best talent starts with having quality recruitment personnel.
 Training & skills: The people responsible for ensuring all of your team members
encompass the brand ethos and meet your requirements.
 Managers: The people with skills to manage teams, get the best out of everyone and
ensure you hit targets.

24. Processes: Process in the 7Ps model refers to your processes for delivering the product or service
to your customers, as well as any additional customer service and post-purchase systems you have
in place.
 All Processes are concerned with the consistent creation and delivery of Customer Value
 The Customer’s experience is affected directly at those points at which s/he interacts with the
Organisation
 Processes should be continuously reviewed and co-ordinated to improve the customer
experience and demonstrate Customer Consideration.

25.  It involves
 Customer-end delivery: The customer’s process for attaining your product or service,
whether it’s ordered online and delivered via a courier, bought in-store, downloaded from
your website or accessed through an online signup process.
 Business-end delivery: Your processes for facilitating customer-end delivery and
safeguards for resolving any potential issues (eg: technical issues preventing online
purchases).
 Customer service: Your processes, systems and channels for providing customer service
beyond the initial sale.
 Resolutions: Your processes for dealing with problems that prevent usual delivery systems
from completing successfully and instances where customers are unhappy with the
process/service received.
 Incentives: Measures designed to keep unhappy customers engaged with your brand so you
can keep them on board and win them over.
 Returns & refunds: Your systems for dealing with returns, cancellations, refunds and any
other processes for customers who refuse to stay on board.
 Feedback: Your processes for collecting customer feedback and applying these insights to
product/service improvements.

26. Physical Evidence: “The environment in which service is
assembled and delivered Combined with tangible commodities
that facilities performance or communication of service.” It
includes, Infrastructure Physical facilities Sale/Staff contact
experience of brand.
 Physical evidence refers to everything your customers see
when interacting with your business. This includes:
 The physical environment where you provide the
product or service
 The layout or interior design
 Your packaging
 Your branding.

27. To Conclude

28. APPROACHES OF MARKETING
Product Or Commodity
Approach
Institutional Approach
Functional Approach
Management Approach
System Approach
Environmental Approach
Legal Approach
Economic Approach

29. The commodity approach: Single commodity from the farm to the fork
 The commodity approach of marketing is related to demand and supply of commodity.
 Under this approach, the flow of goods from the producers to the consumers is studied. In this
study, emphasis is given to production center, involvement of men in selling and purchasing of the
products, means of transportation, problems in sale and advertisement of goods, problems in
financing, storing, channel of distribution and transportation and other related matters.
 The commodity approach of marketing is practiced mostly in agricultural products, in cotton, jute,
wheat, etc.
Commodity Approach

30. The Institutional approach: Examine the roles of the Middlemen
 Institutional approach of marketing emphasis to the study of marketing institutions and agencies.
Wholesalers, importers, transporters, exporters, business agents, transport organization, banks,
insurance companies, finance companies etc. play their roles in marketing by supplying or
distributing commodities from producers to the consumers.
 The study is, 'how these different institutions and agencies function together for marketing system’
 The cost of marketing can be reduced by selecting proper institutions.
Institutional Approach

31. Functional Approach
 Functional approach of marketing indicates the study of the functions of marketing. Marketing
performs exchange function, physical distribution function and other auxiliary functions.
 Exchange Functions: Exchange function of marketing include purchasing and selling. These are
the basic functions of marketing.
 Physical Distribution Function: Physical distribution function includes transportation and storage.
These functions transport goods/products to right place at right time as desired by the customers.
 Auxiliary Function: The auxiliary functions of marketing include, standardization and
classification, financing, labeling, packaging, risk bearing, information flow etc.

32. Management Approach
 It concentrates upon the activities or marketing functions and focuses on the role of decision-
making at the level of firm.
 This approach is mainly concerned with how managers handle specific problems and situations.
 It aims through evaluation of current market practices to achieve specific marketing objectives.
 Generally there are two factors-controllable and uncontrollable, which are more concerned with
the decision-making.
 Controllable include price adjustment, advertisement etc.
 Uncontrollable-economical, sociological, psychological, political etc. are the basic causes for
market changes. And these changes cannot be controlled by any firm.

33. System Approach
 System approach of marketing supposes marketing as a system which includes input, processing,
output and feedback and gives an integrated picture of marketing and the objectives of marketing
can be achieved effectively from it.
 Goods, price, place and promotion are included in input of this system.
 Environmental effect and buyers' decision are included in processing.
 Profits, costumer's satisfaction and social welfare are included in output and
 The task of sending message asking for redesigning input and processing fall under feedback

34. Environmental Approach
 According to environmental approach, environment affects marketing. So, marketing should be
made suitable to the environment by studying and scanning the environment.
 Environment always becomes dynamic. It changes continuously. The environment of marketing
can be classified into two types as micro-environment and macro-environment.
 Micro-environment Of Marketing: Micro-environment is also called internal environment.
Production, financial resource, human resource, research and development, culture of
organization, suppliers, customers, labor organization, pressure group, competitors, market
intermediaries etc. are the micro-environmental components.
 Macro-environment Of Marketing: Macro-environment is also called external environment.
Macro-environmental components do not remain under control of marketing. Economic, political
and legal, social and cultural and technological components are included in macro-environment.

35. Legal Approach
 Legal approach advocates that marketing should be regularized by laws.
 All the marketing activities should agree with and remain under control of legal provisions.
 Acts, rules and regulations, policy, procedure, working process etc. are included in Law.
 Legal approach of marketing strongly emphasis that all the marketing activities should remain within
legal purview.
 It gives high priority to bearing social responsibility.
 The economic approach of marketing gives emphasis on increase of profit maximization. Buyers and
sellers are the important components of marketing.
 Marketing helps how to utilize limited resources to fulfill the unlimited needs and wants.
 It researches markets, studies and analyzes demand and supply.
 Similarly it believes in sales promotion through advertisement and other promotional activities. It
uses different economic tools in market research and analyzing demand and supply. So, this approach
is popular among economists.
Economic Approach

36. Internal
Environment
Meaning of Marketing Environment:
The marketing environment refers to all internal and external
factors, which directly or indirectly influence the
organization’s decisions related to marketing activities.
Internal factors are within the control of an organization;
whereas, external factors do not fall within its control. The
external factors include government, technological,
economical, social, and competitive forces; whereas,
organization’s strengths, weaknesses, and competencies form
the part of internal factors.
COMPONENTS OF MARKETING
ENVIRONMENT
Micro
Environment
Macro
Environment

37. 01
02
03
04
INTERNAL ENVIRONMENT: The internal environment of the business includes all the forces and factors
inside the organisation which affect its marketing operations. These components can be grouped under the Five Ms
of the business, which are:
05
Men: The
people of the
organisation
including
both skilled
and unskilled
workers.
Minutes: Time
taken for the
processes of the
business to
complete.
Machinery:
Equipment
required by the
business to
facilitate or
complete the
processes.
Materials: The
factors of production
or supplies required
by the business to
complete the
processes or
production.
Money: Money
is the financial
resource used to
purchase
machinery,
materials, , and
pay the
employees.

38. Customers
Suppliers
Market
Intermediaries
Partners
Every business revolves around
fulfilling the customer’s needs
and wants. Thus, each
marketing strategy is customer
oriented that focuses on
understanding the need of the
customers and offering the
best product that fulfills their
needs.
One provides raw material to produce
goods and services. Suppliers can
influence the profit of an organization
because the price of raw material
determines the final price of the
product. Organizations need to
monitor suppliers on a regular basis to
know the supply shortages and change
in the price of inputs.
These are the firms that
benefit the organization to
advertise, sell and distribute
goods to the absolute buyers.
Being in direct touch with
customers they can give
suggestions about customer’s
desires regarding a product
and its services.
are all the separate entities
like advertising agencies,
market research
organisations, banking and
insurance companies,
transportation companies,
brokers, etc. which conduct
business with the
organisation.
EXTERNAL ENVIRONMENT: The external environment of the business includes all the forces and factors outside the
organisation which affect its marketing operations.

39. Competition refers to a situation
where various organizations offer
similar products and try to gain
market share by adopting
different marketing strategies. So
Keeping a close watch on
competitors enables a company to
design its marketing strategy
according to the trend prevailing in
the market.
Public may hold attention in the
business undertakings, and it’s the
duty of the organization to please
the people at large in addition to
competitors and customers. Hence
Public relations are surely a vast
marketing operation which must be
completely taken care of by the
company.

40. Demographic
Environment
Economic
Environment
Physical
Environment
The demographic environment is
made up of the people who
constitute the market. It is
characterised as the factual
investigation and segregation of the
population according to their size,
density, location, age, gender, race,
and occupation.
The economic environment
constitutes factors which influence
customers’ purchasing power and
spending patterns. These factors
include the GDP, GNP, interest
rates, inflation, income distribution,
government funding and subsidies,
and other major economic
variables..
The physical environment
includes the natural
environment in which the
business operates. This
includes the climatic
conditions, environmental
change, accessibility to water
and raw materials, natural
disasters, pollution etc.
The technological
environment constitutes
innovation, research and
development in technology.
As technology is advancing
day by day, the firms have to
keep themselves updated so
that customers needs can be
met with more precision.
Technological
Environment

41. Political &
Legal Factors
Social-Cultural
Environment
With the change in political parties,
several changes are seen in the
market in terms of trade, taxes, and
duties, codes and practices, market
regulations, etc. So the firm has to
comply with all these changes and
the violation of which could
penalize its business operations.
The lifestyle, values, culture, prejudice and
beliefs of the people. since business operates
in a society and has some responsibility
towards it must follow the marketing
practices that do not harm the sentiments of
people. Also, the companies are required to
invest in the welfare of general people by
constructing public conveniences, parks,
sponsoring education, etc.

42. 04
06
01
03
05
02
The Production Concept
Marketing Concepts
Marketing Concepts
The Product Concept
The Selling Concept
The Marketing Concept
The Societal Marketing Concept
The Holistic Marketing Concept
Marketing Concepts

43. The Production Concept
Production Concept: The production concept holds
that the consumer prefer the goods which are easily
available at lower prices. Therefore, it is necessary to
produce in large quantities at lower costs.
FEATURES:
 Production in large volume, at low cost will be
acceptable to customers
 Concentrates on production efficiency
 May do well in distribution
 Rarely appreciated by customers
 Therefore increase production and cut down costs
The Product Concept
Product concept: It is a belief of the management that
consumers favour the products of superior quality, better
performance and innovative features. Therefore, successful
marketing requires continuous product planning and
development and improvement in quality standards.
FEATURES:
 Focuses on design and quality of products
 Believes that customers will automatically buy products
of high quality
 R&D is essential element
 Do not bother to study the market & consumer in depth
 Therefore improves the quality, performance and
features.

44. The Selling Concept The Marketing Concept
Selling Concept: This concept assumes that consumers
will not buy goods voluntarily unless the seller
undertakes a large scale selling and promotional efforts.
FEATURES:
 Believes that customers need to be persuaded to buy
the products
 Involves advertising, large scale promotions,
publicity, discounts, public relations etc.
 Does not take care of the need of the customer
 Therefore promotes sales aggressively
Marketing Concept: This concept holds that the primary
task of a business firm is to study the needs, desires and the
preferences of the potential consumers and produce goods
which are actually needed by the consumers. When an
organisation practices the marketing concept, all it’s
activities are directed to satisfy the consumer.
FEATURES:
 Starts with determination of consumer needs
 Ends with satisfaction of these needs
 Organizational activities revolve around customer
 Products & Services are designed to serve customer need
 Realizing organizational goals including profits
 Therefore they love the customer not the product.

45. The Societal Marketing Concept
The Holistic Marketing Concept
According to this concept, the task of management is to
identify and satisfy consumer wants, in conformity with
social interests. Firms should not only consider consumer
wants and profits but also society interests while making
their marketing decision.
FEATURES:
 It is a Marketing concept (+) Society’s well being
 Balancing of following three considerations while
setting marketing policies :
 Customer’s want satisfaction
 Society’s well being
 Company’s profits
 Therefore it enhances the consumer’s needs and society
well being.
According to holistic marketing concept, even if a business
is made of various departments, the departments have to
come together to project a positive & united business
image in the minds of the customer.
It’s FOUR Components are:
 Internal marketing – Marketing between all the
departments in an organization
 Relationship marketing – Building a better relationship
with your customers, internal as well as end customers
is beneficial for holistic marketing.
 Performance marketing – Driving the sales and revenue
growth of an organization holistically by reducing costs
and increasing sales.
 Integrated marketing – Products, services and
marketing should work hand in hand towards to growth
of the organization.
This concept recognizes that “everything matters” with marketing.
It involves interconnected marketing activities to ensure that the
customer is likely to purchase their product rather than
competition.

46. Value Philosophy in Marketing:
Value Value means utility per unit of price. It reflects
the relationship of benefits to costs, or what we get for
what we give.
Value = Benefits - Cost.
Value: What consumers get for the what they give up
Benefits: what they get
Cost: what they give up
Marketing is the process by which a firm creates value
for its customers. Marketing revolves around value. It
is all about creating, communicating, delivering and
exchanging products or services that have value for
customers and society at large.
Value is created by meeting customer needs.
Marketing is the delivery of value to customers at a
profit. Thus, the two core elements of marketing are
value and profit, providing value and generating
profit on sustainable basis is a characteristic of the
most successful companies, such as Apple and Tesco.

47. Value Philosophy in Marketing:
Value from the Customer’s Perspective
 Value is the ratio of costs (price) to benefits (utilities)
 Value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the
product itself
 Brand image is a critical component
Value from the Seller’s Perspective: Value for the seller takes many forms
 Making a profitable exchange
 Earning prestige among rivals
 Taking pride in doing what a company does well
 Nonprofits: motivating, educating, or delighting the public
Value from Society’s Perspective
 Marketing transactions and company activities influence the world and add or subtract value from society
 Stressing ethical or socially responsible decisions is often good business in the long run

48. Value in marketing can be defined by both
qualitative and quantitative measures.
On the qualitative side, value is the
perceived gain composed of individual's
emotional, mental and physical condition
plus various social, economic, cultural and
environmental factors.
On the quantitative side, value is the actual
gain measured in terms of financial
numbers, percentages, and dollars.
Marketing creates five types of values.
They are functional value, social value,
emotional value, epistemic value and
conditional value. These may be briefly
explained as below:

49. Functional Value: Functional value relates to the product’s or the service’s ability to perform its utilitarian
purpose. Reliability, Durability, Speed of service and Price are the attributes of a product.
Ex: 1. A car may be judged on its miles per litre or the time to go from zero to sixty miles per hour.
2. In considering the purchase of a laptop computer, customers may compare different models on the basis of
weight, battery lifetime, or speed.
Social Value: The extent to which owning a product or engaging in a service allows the consumer to connect
with others.
Ex: 1. Boutique clothing stores often try to convey a chic or trendy environment so that customers feel that they
are on the cutting edge of fashion.
2. Rolex watches try to convey the sense that their owners are members of an economic elite
Emotional value: is derived from the ability to evoke an emotional or an affective response. This can cover a
wide range of emotional responses.
Ex: Food companies and restaurants may wish to stimulate childhood memories or the comfort associated with a
home-cooked meal.
Epistemic value is generated by a sense of novelty or simple fun, which can be derived by inducing curiosity or a
desire to learn more about a product or a service.
Ex: a sense perception or memory

50. Conditional value is derived from a particular context or a sociocultural setting.
Ex: For the vast majority of Americans, Thanksgiving means eating turkey with the family. Supermarkets and
grocery stores recognize this and increase their inventory of turkeys and other foods associated with this period of
the year.
Value Creation and Delivery
In any marketing situation, one can discern four distinct steps in the value providing process:
 Value selection.
 Value creation/value delivery
 Value communication (making a value proposition and communicating it.)
 Value enhancement.
 Marketing planning, buyer analysis, market segmentation and targeting are concerned with value selection.
 Product development, manufacturing, service planning, pricing, distribution and servicing, are concerned with
value creation & value delivery.
 Personal selling, advertising, publicity and sales promotion are concerned with value communication.
 Activities like market research and market control assess the effectiveness of the value delivery process, the
level of satisfaction the customer has actually received for the purpose of enhancing value.

51. Value Creation and Delivery
Value creation: Creating value from their resources into something valuable to others.
Value creation is any process that creates outputs that are more valuable than its inputs. This is the
basis of efficiency and Productivity.
Ex: A farmer uses land, equipment, water, labour, sunlight and seeds to grow onions. This process
creates value from resources.
Value delivery is the manner in which you design your products such that it gives maximum value to
the customer using it. The value delivered to customers can be in the form of products, benefits,
attributes etc. Anything which creates value for your customer should be involved in your value
delivery process.

52. THE VALUE DELIVERY PROCESS
Marketing affects customer value. Successful marketers must focus on delivering value to customers at a profit.
This is accomplished by fine tuning the value delivery process
The value delivery process begins before there is a product and continues through development and after launch.

53. Upstream Marketing V/S Downstream Marketting
Upstream marketing is a type of marketing strategy that focuses on a specific group of customers and identifies
their particular needs.
Downstream Marketing solidifies marketing stratergy. it identifies the ads, branding, promotion, and
communication stratergies use to sell the product.
Upstream marketing focuses on creating long-term goals and considers the future of the business. In contrast,
downstream marketing looks at current customer needs and sets goals that are reachable in a short period of
time.
Value Innovation: Value innovation is a process in which a company introduces new technologies or
upgrades that are designed to achieve both product differentiation and low costs. ... The goal of value
innovation is to create new demand and change the market enough to render the competition irrelevant in that
market.

54. CO-CREATION OF VALUE
Co-creation of value is a business strategy, one that promotes and encourages active involvement from the customer
to create on-demand and made-to-order products.
Co-creation is a marketing strategy based on consumer values. Customers use different forums to share ideas and
problem faced and their knowledge for product improvement. This in turn, creates an additional value to the
product. Personalized experience and loyalty to the product increases its value. This also affords an opportunity
to the manufacturer to earn higher profits.

55. THANK YOU!
CREATIVE AGENCY
P R E S E N T A T I O N T E M P L A T E