This document provides an overview of marketing principles including definitions of key terms like market and marketing. It discusses the importance of marketing to marketers, consumers, and society. It also outlines several modern marketing concepts like the production, product, selling, and marketing concepts as well as consumer and societal marketing concepts. Additional topics covered include global marketing, e-marketing, telemarketing, and marketing ethics.

1. Principles of Marketing
UNIT I
Prepared By
Dr.V.Vidhya

2. Market & Marketing
Meaning :The word ‘Market’ is derived from the Latin word ‘Marcatus’ Meaning
merchandise, wares, traffic, trade or a place where business is conducted. The
common uses of market means a place where goods are brought and sold. Markets
consist of buyers and sellers with facilities to communicate each other for transactions
of goods and services.
Definition :“Market includes both place and region in which buyers and sellers are in
free competition with one another” – Pyle.
Meaning
Marketing is the economic process by which goods and services are exchanged
between the producers and the consumers and their value determined in terms of
money price.
Definition:
According to AMA’s definitions “Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large”

3. IMPOTANCE OF MARKETING
To the Marketers:
1. Financial Success
2. Marketing is often the Route to the Top
3. Helps Boost Product Sales
4. Builds Company Reputation
5. Marketing is the biggest component of a product
offering
6. To Cope up with the Changing Marketing Environment
To the Consumers:
1. They can buy goods globally
2. Promotes Product Awareness
3. Creating Utilities
To the Society:
1. Protection against Evil Effects of Depression
2. Employment
3. Availability of Various Products

4. Modern marketing concepts means finding out the consumer and make the
goods or services as per their needs rather than to provide them what the seller
has made.
a) Production concept: – The companies which use the production concept
generally focus too narrowly on their own activities because according to this
concept the companies think that consumer will buy the product which comes
in the market.
b) Product concept: – As per this concept companies give importance to the
features or the quality of the product because in long run the product exists
only with the quality it is giving to the consumer.
c) Selling concept: – it is not sufficient for the manufacturer to made the
goods and wait for the customers. Thus, according to this concept it is very
important to inform the consumer about the product which can be done
through different ways of promotion.
d) Marketing concept: – consumer now a day is treated as “GOD”. So it is
very important for the manufacturer to produce the product which the
consumer wants, so that consumer get satisfaction and manufacturer earns
profit.
e) Consumer concept:- now not only marketing concept is sufficient rather
the companies are using consumer concept which means to give attention to
individual consumer it can be done through one to one marketing.
f) Societal marketing concept: – this concept means that company should

5. Definition: “Global marketing involves identifying needs, wants and demand of
global customers and making the products/services available to them either
through own manufacturing or outsourcing and distributing the product/service at
the places convenient for consuming.”
Features
Multiple currencies differing in stability and real value.
2. Diverse, changing policies and procedures.
3. Political factors play a major role.
4. Exchange controls and tariffs obstacles.
5. Payment and credit risks
6. Changing business environments.
7. Markets are diverse and fragmented.
8. Marketing research is expensive and many not give accurate information.
9. Many languages, many nations and many cultures
10. Government influence on business decisions
Elements.
a.Product
b. Price
c. Placement
d. Promotion

6. Advantages:
a. Economies of scale in production and distribution
b. Lower marketing costs
c. Power and scope
d. Consistency in brand image
e. Ability to leverage good ideas quickly and efficiently
f. Uniformity of marketing practices
g. Helps to establish relationships outside of the “political arena”
h. Helps to encourage ancillary industries to be set up to cater for the needs of
the global player
i. Benefits of e-Marketing over traditional marketing
Disadvantages:
a. Differences in consumer needs, wants, and usage patterns for products
b. Differences in consumer response to marketing mix elements
c. Differences in brand and product development and the competitive
environment
d. Differences in the legal environment, some of which may conflict with those
of the home market
e. Differences in the institutions available, some of which may call for the
creation of entirely new ones (e.g. infrastructure)
f. Differences in administrative procedures
g. Differences in product placement.
h. Differences in the administrative procedures and product placement can
occur

7. E marketing also known as online or internet advertising which uses the internet
technology to promote online message to customer. E-marketing examples are email
or social media advertising, web banners and mobile advertising.
Advantage of E-Marketing
• Internet provides 24 hours and 7 days “24/7” service to its users. So you
can build and make customers relationships worldwide, and your customer
can shop or order product at any time.
• The cost of spreading your message on internet is nothing. Many social
media sites like Facebook, Linkedin and Google plus allow you freely
advertise and promote your business.
• You can easy and instantly update your registered customers or
subscribers through email.
• Visitors or potential customers of your website can get up to the minute
information on each visit.
• If you are having a sale, your customers can start shopping at the
discounted prices literally as soon as they open their email.
• If a company has an information sensitive business, like a law firm,
newspaper or online magazine, that company can also deliver its products
directly to customers without having to use a courier.
Disadvantages of E-Marketing
• If you want a strong online advertising campaign you have to spend money.
The cost of web site design, software, hardware, maintenance of your
business site, online distribution costs and invested time, all must be
factored into the cost of providing your service or product online.

8. • Some people prefer the live interaction when they buy any product. And if
your company has a small business with one location, this may also deter
customers from buying who lives on long distances.
• Your company should have updated information on your site. This
requires research and skills and thus timing of updates is also critical.
• Is your company web site secure? There are many incorrect stereotypes
about the security of the internet. As a result, many visitors of your
business web site will not want to use their credit card to make a
purchase. So there is a fear in the minds of your visitors of having their
credit card info stolen.
Telemarketing is the act of selling, soliciting, or promoting a product or
service over the Telephone. Telemarketing is the process of using the
telephone to generate leads, make sales, or gather marketing information.
Telemarketing can be a particularly valuable tool for small businesses, in
that it saves time and money as compared with personal selling, but offers
many of the same benefits in terms of direct contact with the customers.
Advantages:
1. Human interaction
2. Small businesses
3. Customer service
4. Reduces cost
5. Flexibility
6. Response measurement

9. Disadvantages
1. An increasing number of people have become averse to telemarketing.
2. No visual contact with the customer is possible.
3. More people are using technology to screen out unwanted callers,
particularly telemarketers.
4. Government is implementing tougher measures to curb unscrupulous
telemarketers.
5. If hiring an outside firm to do telemarketing, there is lesser control in the
process, given that the people doing the calls are not your employees.
6. A telephone conversation has very short memory.
7. Pre-purchase inspection of goods not possible.
8. It can be extremely expensive, particularly if telemarketing is outsourced to
an outside firm.
Marketing ethics is an area that deals with the moral principles behind
marketing. Ethics in marketing applies to different spheres such as in product,
packing,pricing, Placing (Distribution), promotion & advertising etc..
Product
• Consumer safety
• Product liability and reliability
• Designing for special needs
Packaging
Label information
Packaging graphics
Packaging safety
Environmental implication of packaging

10. Price:
Bid rigging
Supra competitive pricing
Price fixing
Price skimming
PLACING (DISTRIBUTION)
Distribution of product or service is transporting them from manufacture to
stockiest, wholesalers, retailer and then to consumers.
PROMOTION is the link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing
decision.
To present information to consumers as well as others
• To increase demand
• To differentiate a product
The business including producers and traders have to take the social
responsibility. They have to come out with quality goods at reasonable
prices.It is Responsibility of Government,to protect the Innocent and
helpless consumers through enacting legislations. for the protection of
consumer’s right.

11. The opportunity to make an above-average income.
Most jobs in marketing, especially those beyond entry-level positions, are
interesting and varied.
Marketing Occupational Areas:
Hospitality Marketing
Importing/Exporting
International Marketing
Marketing Research
Product Management
Professional Sales
Public Relations
Advertising
Customer Service
E-Commerce
Entrepreneur
Fashion Merchandising
Financial Services
Food Marketing