The document provides an introduction to modern marketing concepts. It defines key terms like market, marketers, and marketing. It discusses the exchange process in marketing and the conditions required for effective exchange. It also covers the nature and characteristics of marketing management, focusing on it being a human activity, sensing customer needs, and involving exchange. The document then discusses the evolution of marketing philosophies from the production, product, and selling concepts to the modern marketing concept. It concludes by introducing the marketing mix and its key elements of product, price, place, and promotion.

1. UNIT-1
INTRODUCTION TO MODERN
MARKETING
PREPARED BY- PRAKASH SINDHAL

2.  DIFFERENCE BETWEEN MARKET, MARKETERS
AND MARKETING:
Market:
According to Philip kotler, “Market is a group of present and
potential consumers, organisation intends to serve.”
Marketers:
According to william Stanton, “Marketers are the people and
organisations that we used to make exchanges.”
Marketing:
“ Marketing is a social and managerial process by which
individuals and groups obtain what they need and want through
creating offering an exchange in product of value with others.”
. - Philip kotler.

3.  Exchange in marketing
 “Exchange is process of satisfying needs and wants to getting
products and services by offering something in exchange return.”
Exchange can be fruitfully completed only when following
conditions are fulfilled.
(1) Existence of Two social units.
(2) Both the parties have something to offer to another party and
which is valued by both.
(3) They should freely communicate and are able to deliver the
products and services.
(4) Both parties have economic and financial capacity and
willingness to create exchange.

4. (5) both the parties have freedom to accept offer and reject terms and
conditions of the offer.
If above conditions are fulfilled then there is possibility of exchange to
create effective exchange following aspect should be taken care of
(A) each party should understand each other’s expectation.
(B) both the parties should be comfortable with terms and conditions of
each other.
(C) there should be a scope of negotiations because exchange process
creates value to both parties and process should end up with mutual
agreeable terms and conditions.

5. Outcome of exchange process,
(1) Something of value by both the parties.
(2) Terms and conditions of agreement.
(3) Time and place of agreement.
After the successful exchange it creates good relationship between
both the parties.
Customer gets satisfaction by using goods and services well
marketer gets profit by selling the product service.

6.  Nature and characteristics of marketing
management:
1. It is human activity and it involves interaction between
two social units:
Marketing is basically a social process, in which marketers
offer goods and services to consumers.
2. It deals with sensing needs of market and convert
them ito profitable market opportunities:
Marketer always focus o latent needs of customer and try to
fulfill those needs and wants through research.
Ex. Sugar free.

7. 3. It involves exchange process:
Marketing can be successful only when the enrie process
results into fruitful exchange. It is a process offering
something to other party and getting something in return
from other.
4. It is a comprehensive and managerial process which
involves various marketing acivities:
 Determining target market
Formulating marketing strategy including designing
product, setting price, promoting product and ultimately
delivering products to the end users.

8.  Nature and importance of marketing:
A. FOR COMPANY
B. FOR CUSTOMER
C. FOR SOCIETY AND ECONOMY
A. For company:
1. Increase in sales:
By advertisement and promotional efforts it can increase the
sales for the company.
2. Exploiting new market opportunities:
The task of marketer is to identify, understand and exploit
them into profitable opportunity
Ex. Sugar free for diabetic people.

9. 3. Increase in market share:
The marketing strategy solely focuses on satisfying consumer
needs in faster, superior and efficient manner than
competitions.
B. For consumers:
1. Better products and services:
 To survive in market company’s are truing to produce
creative and innovative product as a result customer is getting
benefit of superior goods at reasonable price.
2. Customer satisfaction:
customer gets satisfaction by using advanced and superior
quality product at a reasonable price.

10. 3. Enriched buying decision:
Today consumer buys products on the basis of information
that is available through various media of advertising.
Advertising enables customer to know product type, variants,
feature and price.
C. For society and economy:
1. Improvement in standard of living:
Standard of living can be judged by the type of product and
services people consume.
Due to research, price competition various products are
available at reasonable price to every class of society.
Ex. Television, cell phone etc.

11. 2. Economic growth
Production
Consumption
Employment

12.  Evolution of Marketing
Marketing philosophies or concepts are set of presumptions held by
marketing managers in executing marketing strategies and
programs. It is also called as stages in which marketing as a
concept' has grown.
Marketing is a discipline which comes from practice. It is also
called as viable match between situation and strategy. Hence from
past to the present, marketing has to pass through the test of various
situations and from this, various concepts are evolved..

14. (1) The Production Concept: The production concept believes
that consumer prefers those products which are largely available
and reasonably priced". The concept focuses on following aspects
(1)Consumers buy those products which are easily accessible and
widely available.
(2) Consumers are price conscious and they seek low priced
 (3) Product cost may be high and it has to be lowered down
byproducts. The concept is relevant when demand exceeds
supply. Increasing productivity and maximizing output
(4) the concept is relevant when demand exceeds supply.

15. Main points of this concept are,
Manufacturing efficiency
Large scale production
Minimising cost of production
In short this concept has main three pillars
(1)output
(2) price
(3) Wide distribution

16.  (2) Product concept:
production concept loses its brilliance when market is
moving from communities to product and to brands.
due to some of the major changes in the market and
environment like awareness of consumers, varieties of of
product, awareness regarding quality e increase in research
potential etc. gave birth to the product concept.
“Consumers gradually become quality conscious and they
prefer to buy those products which are best in quality and
superior in performance does prime focus of managers is
on the research, upgradation and innovation in the
products”

17. brighter side of this philosophy is it has initiated quality consciousness
among marketers and their by many researches were promoted which
have resulted in new superior and innovative product.
(3) The selling concept:
due to emergence of environmental factors and trends like,
Increasing consumer awareness and education.
Emergence of media and Advertising tool.
Introduction of selling techniques and promotional
tools.
“The selling concept believes that consumers are to be stimulated to
buy products by selling and promotional effects”
the concept assumes that, consumer’s are unaware of the product.
They need to be stimulated and motivated to buy the products.
Organisation must undertake hard selling efforts to create sales.

18. This concept is applicable when there is,
Extensive competition.
At the time of launching new product.
Over stocking of goods.
this concept use aggressive selling and promotional efforts to
achieve desired and profit.
Drawback of this concept is it focuses on sellers perception and
ignore consumer needs and wants.
The concept believes in “Try to sell what we can make” instead of
“Trying to make what we can sell”

19.  (4) The marketing concept:
 “The Marketing concept believes that company or organisation should
identify consumer needs and wants and try to fulfil those needs. It should
match products and services with market requirement to create satisfied
consumer base.”
 In the words of Philip kotler, “The Marketing concept holds that the key to
achieve organisational goals consist in determining that needs and wants off
target market and delivering desired satisfaction more efficiently and
effectively then competitors.”
 Analysis of the concept reveals following crucial elements,
 (1) consumer satisfaction is a focal point in business.
 (2) know your customer and find their needs.
 (3) focus on the specific target market.
 (4) offer superior products and services than your competitors.
 (5) profit is just outcome of consumer satisfaction.

20. Ex. Bajaj auto changed its focus from scooters to motorbikes.
Ex. US food chains like McDonalds and Pizza Hut are also
Indianicing their recipes.
Modern marketing starts and ends-with consumer
Process of marketing concept includes,
Select market segment,
Design suitable product and services,
Promotion and delivery of product to customers.
The crux of the entire process is to serve target market more superior
efficient and faster than competitors.

21. • Difference between marketing and selling
 1. Meaning:
Marketing concept:
It is the first step of any business activity. Marketing starts with need of
identification and ends with customer satisfaction. It is a total system of
interacting business activities designed to plan, price, promote and
distribute want satisfying product and services to present and potential
customers.
Selling concept:
It basically deals with exchange of ownership of goods and services
with customers. It is one of the element of marketing. It provides
finished goods to the customers.

22. 2. Scope:
Marketing concept:
Marketing scope is too broad. It includes need identification,
designing product, price, and promotion and satisfied customer
with after sales services.
 Selling concept:
Selling is a part of marketing. It is only concerned with distribution
of finished goods to the customers. It is only concerned with selling
and ignores customer needs and wants.

23. 3. Objective:
Marketing concept:
The objective of marketing is to earn profit through customer
satisfaction. Customer satisfaction is the sole aim of marketing.
 Selling concept:
The objective of selling is to earn maximum profit by selling more
number of products in the market.
4. Focus Area:
Marketing concept:
Marketing is basically customer-focused and efforts are made to satisfy
customer needs.
Selling concept:
Selling basically focuses on manufacturing and distribution of goods.

24.  5. Problem solving approach:
 Marketing concept:
 In Marketing concept, responsibility for any issue or problem is on the producer.
 Selling concept:
 In selling concept, responsibility for any issue or problem is on the middleman
like retailer.
 6. Customer relations:
 Marketing concept:
 Customer satisfaction is the sole aim of marketing. A marketer maintains good
relations with customers at a pre -sale and post-sale stages.
 Selling concept:
 Distribution and selling of more number of products is the main aim of selling
concept. Therefore, selling only deals with exchange of ownership from one
person to another.

25. The difference can be elaborated as follows:
 1. The main focus of selling concept is to gain maximum sales volume
while the centre point of marketing is satisfying customer needs and
wants. Sales is just an outcome.
 2. Selling concept starts from factory or production house while marketing
process starts with identifying and knowing consumer needs.
 3. In selling concept, when company fails to conquer market then actions
are taken. It means the approach is reactive while marketing plans and
senses pulse of market in advance, which minimises chances of failure.
And it holds proactive approach.
 4. In selling approach, man weapon to grab market is hard selling and
promotional tools. While in marketing, series of activities are performed
like marketing research, product designing, pricing, distribution etc. Thus,
scope of marketing is very wide while selling is part of marketing.

26. 5. Finally sellers perspective dominates in selling concept while,
marketing revolves around consumer satisfaction.
Hence, marketing is a very comprehensive process touching all
managerial and business functions. This latest marketing
philosophy stresses on concentrating on key areas.

27. 5. Societal concept:
According to Philip kotler, “The organisation’s task is to
determine the needs and wants and interest of target markets
and to deliver the desired satisfaction more efficiently and
more effectively then competitors in a way that preserves or
enhance the consumer and societies' well being.”
It focus is on following aspects:
1. Long run welfare of consumers.
2. Reducing and marketing environment friendly product.
3. How old is leading product propositions.

28. Societal concept came into existence due to consumerism,
environment awareness, stringent legal and government
policies have made it mandatory for marketers to exhibit
public and social concerns in applying marketing
activities. Many marketer have changed a strategy keeping
in mind societal concept.
For example, Samsung has launched eco-friendly cell
phones.

29.  Conclusion:
Marketing has been passed through various phases from
production to product, selling to marketing to societal concept.
Hence, we can say that marketing is dynamic and innovative
field it changes with time to retain customer satisfaction and to
maximize profit.
Marketing is flexible field and it will Change in future also.

30. Introduction to Marketing Mix:
 “Marketing mix is the site of marketing tools that the firm uses
to pursue its marketing objectives in target market.”
In short marketing mix includes various ingredients of marketing
recipe. The process of designing proper mix of marketing is very
important as it determines chances of survival, brand penetration
and sustaining and increasing market share of the company.
Marketing mix made of 4Ps(Product, Price, Place and Promotion)
which are inter related and inter dependent, which are used in
different combination to attract, convince and satisfy consumer
needs and wants

31. 1. Product Mix:
Product mix decision is a prime decision of any marketer. It deals with
deciding product line, it’s variant and total types of product company
should offer.
Product is used in very broad term. It includes idea, physical product and
services.
Can be defined as, “A bundle of utilities that can satisfy consumer
needs and wants.”
It consists of,
Physical features,
Functional characteristics,
Asthenic features.

32. The product mix decision focus is on various aspects like,
Quality specification
Technical specification
Designing
Branding strategy
Product variants
Multiple usage of product
For example, hindustan unilever offers more than 110 brands of
different products.

33. 2.Price Mix:
Price is economic value of a product dominated in terms of
money.
Price occupies important place in marketing mix because price
is the element which can Influence customer decision
regarding whether to purchase or not to purchase the product.
The decision regarding pricing includes following crucial
elements,
1. Methods of pricing
Skimming pricing
Penetration pricing.

34.  2. Which factors to be considered while designing pricing
strategies,
 Level of demand
 Cost of production
 Competition
 Customer’s perception
 3. Other elements of pricing like discounts, allowance and cretdit
terms.
 4. Differential pricing, it includes different price for different
segments.
 5. Legal considerations: some products are their where pricing
should be decided according to government norms.

35. 3. Promotion mix:
Promotion simply means to create awareness,
persuade(motivate), and convince target market so they
take purchase decision.
Elements of promotion:
1. Advertisement
2. Person selling
3. Sales promotion
4. Public relations

36. 4. Place mix:
Place mix is concerned with deciding about channel of
distribution.it concerned with number of distributors
involved.
There are three kinds of distributions,
1. Exclusive distribution: ex. precious or branded products
2.Selective distribution: ex. consumer durables like scooters,
electronic items.
3. Intensive distribution: ex. FMCG products.

38.  Factors affecting Marketing Mix:
1. Target market:
nature and type of target segment is a center point in
deciding combination of marketing elements.
Ex. Nirma focuses on lower economic groups
 Surf excel focuses on higher income groups.
2. Marketing Budget:
MNC- High budget
SSI- Low budget

39. 3.Nature of product:
Type of product, services and concept are major factors while
designing marketing mix.
For ex. Industrial product and consumer product are marketed
differently
4. Size and effectiveness of competition:
Competition is driving factor of marketing actions. Higher the
competition and higher the expenditure on promotion.
5. Marketing objectives:
The entire marketing programs are designed to achieve
specific goal or mission.
Ex. “Tata Nano” used publicity and created hype in marker to
position itself the most affordable car.

40. 6. Product life cycle:
Introduction stage- skimming or penetration pricing can be
decided.
Growth stage- focused made on modification in product.
At every stage in PLC different decision are required to made
by the marketer.