This document provides an introduction and overview of key marketing concepts. It defines marketing as "the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value." The document outlines the advantages of marketing, the scope of marketing in terms of different product categories, and distinguishes between marketing and selling. It also explains important marketing mix elements and core marketing concepts.

1. P R I N C I P L E S O F
M A R K E T I N G
FYBMS SEM 2
Unit 1: Introduction to Marketing
Jyostna Jain

2. DEFINITION OF MARKETING
According to Philip Kotler “Marketing management is the art and science of choosing target
markets and getting, keeping and growing customers through creating, delivering, and
communicating superior customer value.”

3. ADVANTAGES OF MARKETING
 Improves the business profits by boosting sales
 Builds long-term customer relationships by putting customer needs and wants as top priority
Develops better quality products and services
 Prominent promotional tools are direct mail, personal selling, telemarketing, mobile marketing, email,
billboards, newspaper ads, television jingles, web promos, SMS and social media to engage with target
audience / potential and existing customers
 Attracts customer attention and interest which persuades customers to buy
 Identifies real and potential customers and retains them
 Gives detailed information about the product or service that the customer wants which helps in knowing
the brand better
 Encourages new customers and referrals by word of mouth publicity
 Clears misunderstandings about the quality or nature about the product or service
 Fulfills the needs of the customers which leads to business success

4. SCOPE OF MARKETING
Goods : Marketing activities such as product designing,pricing,promotion,distribution are necessary to push and
promote the sale of goods at the market place.
 Services : Services include the work of banks,airlines,hotels,hospital,professional like lawyers ,
accountants,engineers,etc. To promote services,there is a need for efficient and effective marketing.
 Experiences : There is a market for different experiences such as spending an evening with a famous star over a dinner,
attending a summer camp ,swimming,health care camp and so on.
 Events : Marketers work out details in promoting time based events such as world cup , football , hockey , Olympics
etc.
 Persons : Every major film star or sports star or high profile professionals like artists , musicians , doctors, lawyers
hires a personal manger , an agent to market himself or herself.
 Organisations : Organisations try to build corporate image through corporate advertising

6. MARKETING MIX
Definition by Philip Kotler
A set of controllable variables and their levels that the firm uses to influence the target market.
In simple words, set of market tools that a firm uses to pursue its marketing objectives in the
target market

7. ELEMENTS OF MARKETING MIX
Product
Design
Features
Sizes
Packaging
Service
Warranty
• Product variety
Price
Allowances
Payment period
Credit terms
List price
Place
Channels
Location
Logistics
Transportation
Promotion
Advertising
Personal selling
Sales promotion
Public relation
Direct marketing
Target market

8. Who are we
selling to?
How much
will it cost to
serve our
customer?
Is it easy for
our
customers to
buy?
How will we
communicate
with our
customers ?
4 c’s of Marketiing

10. MARKETING V/S SELLING
MARKETING
• Aims towards customer satisfaction
• long terms
• Marketing creates pull
• Marketing is a process
• Marketers undertake marketing research to
identify customer needs and wants.
• Emphasis on after-sales service
• Generates leads
SELLING
• Aims towards product sales volume
• Short term
• Selling creates push
• Selling is a result of marketing
• There is hardly any emphasis on marketing
research.
• Hardly pays emphasis on after-sales service
• Close the leads

11. CORE MARKETING CONCEPTS
• Needs : It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety, shelter.
• Want : Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/ tandoori
chicken. Americans needs food- wants hamburger/ French fries.
• Demand: Want for a specific product backed up by ability and willingness to buy. eg.- Need – transportation.
Want – Car (say, Mercedes)……but able to buy only Maruti. Therefore, demand is for Maruti.
• Exchange: – The act/ process of obtaining a desired product from someone by offering something in return.
For exchange potential to exist, the following conditions must be fulfilled.
• There must be at least two parties.
• Each party has something of value for other party.
• Each party is capable of communication & delivery
• Each party is free to accept/ reject the exchange offer.
• Each party believes it is appropriate to deal with the other party.

12. • TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process towards an agreement. When agreement
is reached, we say a transaction has taken place.
Barter transaction.
Monetary Transaction.
At least two things of value.
Condition agreed upon.
Time of agreement.
Place of agreement.
May have legal system for compliance.
Proof of transaction is BILL/ INVOICE.
• Transfer: – It is one way. Hence, differ from Transaction.
• Products- Goods/ Services/ Place : .Product is anything that can satisfy need/ want.
• Value/ Cost/ Satisfaction:Decision for purchase made based on value/ cost satisfaction delivered by product/ offering. Eg. –
Travel from city A to city B .Need – to reach B ( from A) Method/ Products- Rail/ air/ road or train/ plane . Satisfaction –
Estimated in terms of time lead & travel comfort.

13. The exchange
concept
Exchange of a product
between seller and the
buyer
The
production
concept
Consumers will buy the
products which are
widely available and
low in cost
The product
concept
Consumers will buy the
products that offer best
quality or performance
The selling
concept
Organisations must
undertake aggressive
selling efforts to make
customers buy
The
marketing
concept
The success of the
organization largely
depends on customer
satisfaction
Evolution of marketing