Basics of Marketing, 4Ps

1. BASICS OF MARKETING

3. INTRODUCTION
 Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of your ideas, goods or services to
satisfy the needs of individual consumers or organisations.
 Marketing is a critical tool for establishing awareness, attracting new
customers and building lasting relationships.
 Marketing is a crucial aspect of your business and requires research,
time, planning, and appropriate budget allocations.

4. What is Market?
 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. The place can be a
market place or a street market.

5. Who is a
Customer?
 Any person who enters the business or receives a product – either a
good or a service from an organization is a potential customer.

6. Definition of
Marketing
 “Marketing is the performance of business activity that directs the
flow of goods and services from the producer to consumer.”
-TheAmerican MarketingAssociation
 “Marketing is the creation and delivery of standard of living to
society.”
-Paul Mazur
 “Marketing is the process of determining consumer demand for a
product or service, motivating its sales and distributing it into
ultimate consumption at a profit.”
-E.F.L. Breach

7. Functions of
Marketing

8. Functions of
Marketing
1. Promotion
 Promotion is the effort to inform, persuade, or remind potential
customers about a business’s products or services.
 As such, it plays a key role in communicating value to customers, which
makes it part of the seven functions of marketing.
 From a marketing perspective, promotion can include everything from
content marketing and email marketing to social media and influencer
marketing.

9. Functions of
Marketing
2.Selling
 Selling provides a key link between creation of value and delivery of
value to the customer.
 It reflects the change of ownership of value and provides customers
with the goods and services
 The selling process influences purchasing decisions and enhances
future business opportunities.

10. Functions of
Marketing
3. Product
Management
 Product management
is obtaining,
developing, and
improving a product or
a product mix in
response to market
opportunities.

11. Functions of
Marketing
4. Marketing
Information
Management
 Sound business and marketing decisions rely on rich information about
customers, trends, and competing products.
 Gathering this information, storing it, and analyzing it are part of
marketing information management.

12. Functions of
Marketing
5. Pricing
 Pricing is one of the seven functions of marketing that you also find in
the marketing mix.
 Pricing decisions can be based on costs, competitors‘ prices, and value
delivered to customers.

13. Functions of
Marketing
6. Financing
 Financing is getting the money that is necessary to pay for setting up
and running a business.

14. Functions of
Marketing
7. Distribution
 Distribution is the process of deciding how to get goods in customers’
hands.
 Distribution also involves the systems that track products so that they
can be located at any time.

15. Scope of
Marketing
 Marketing is a global phenomenon. The scope of marketing goes beyond
satisfying the customer’s need.
 “Marketing management is the analysis, planning, implementation and
control of programmes designed to bring about desired exchanges with
target markets for the purpose of achieving organisational objectives.
(Philip Kotler)

16. Scope of
Marketing

17. Nature of
Marketing
• Customers are the central theme for
all marketing activities.
• Organisations focus on developing
their offerings for a specific group of
customers or target market.
Marketing focusses
on customers
• Exchange is the core process that
takes place between customers and
organisations in terms of the transfer
of any goods or services against
money.
Marketing focusses
on satisfying
exchange
relationships
• Marketing is a process that takes
place in an active environment.
• The environment includes various
factors, such as political, economic,
socio-cultural, technological, legal,
demographic, and global factors.
Marketing happens
in a dynamic
environment

18. Evolution of
Marketing concept
 A ‘concept’ is a philosophy, an attitude, a course of thinking, an
idea or a notion relating to any aspect of divine and human
creations.
 The philosophy of an organisation in the dynamic realm of
marketing is referred to as a ‘marketing concept.’
 marketing concept is the way of life in which all the resources of
an organisation are mobilized to create, stimulate and satisfy the
consumer at a profit.
 Marketing philosophy has undergone a thorough and gradual
change since the great Industrial Revolution that took place during
the latter-half of the 18th and first-half of the 19th centuries.

19. Evolution of
Marketing concept
 This gradual change can be traced under four periods and captions
namely:
 production orientation period,
 sales-orientation period,
 customer-orientation period and
 social orientation period.

20. Evolution of
Marketing concept
1. Production
Orientation
Philosophy
 Whenever a firm has a good product, it results in automatic
consumer response and that needed little or no promotional
efforts.
 This production-oriented marketing concept was built on “Good
wine needs no push.”
 The assumptions of this concept are:
 Anything that can be produced can be sold
 The most important task of management is to keep the cost of
production down.
 A firm should produce only certain basic products.

21. Evolution of
Marketing concept
2.Sales
Orientation
Philosophy
 It states that mere making available the best product is not
enough; it is futile unless the firm resorts to aggressive
salesmanship.
 Effective sales-promotion, advertising and public- relations are of
top importance.
 The essence of sales orientation philosophy is “Goods are not
bought but sold”.
 The assumptions of this philosophy are:
 Producing the best possible product.
 Finding the buyer for the product,
 The management’s main task is to convince the buyers through
high pressure tactics, if necessary.

22. Evolution of
Marketing concept
3.Customer
Orientation
Philosophy
 The fundamental task of business undertaking is to study and
understand the needs, wants, desires and values of potential
consumers and produce the goods
 The starting point is the customer rather than the product.
 The assumptions are:
 The firm should produce only that product as desired by the
consumer.
 The management is to integrate all its activities in order to
develop programmes to satisfy the consumer wants.
 The management is to be guided by ‘long-range profit goals’
rather than ‘quick sales.’

23. Evolution of
Marketing concept
4.Social
Orientation
Philosophy
 This philosophy cares for not only consumer satisfaction but for
consumer welfare or social welfare.
 Social welfare speaks of pollution-free environment and quality of
human life.
 The assumptions of social-orientation philosophy are:
 The firm is to produce only those products as are wanted by the
consumers,
 The firm is to be guided by long-term profit goals rather than quick
sales.
 The firm should discharge its social responsibilities,
 The management is to integrate the firm’s resources and activities to
develop programme to meet these individual consumer and social
needs.

24. CoreConcept of
Marketing
 The core concepts of marketing are:
 1. Needs
 2.Wants
 3. Demand
 4. CustomerValue
 5. Exchange
 6. Customer and Consumer
 7. Customer Satisfaction
 8. Customer Delight
 9. Customer Loyalty
 10. MarketingV/s Market

25. CoreConcept of
Marketing
1. Needs
 Needs are the basic requirements which human beings require for
existence.
 These mainly consist of air, water, food, clothing and shelter.
 The need actually pre-exists in the market; the marketer just has to
identify these needs, make the customers aware of these needs, and
make the customers believe that only their company can satisfy these
needs.
 The needs can be further classified into 5 types as:
 Stated Needs: These are the clearly defined needs of the customer; i.e.
the customer clearly tells his needs to the company.
 Real Needs:These are the actual needs of the customers which he may
not be able to pinpoint to the salesperson.
 Unstated Needs: These are the benefits which are not asked by the
consumers but they expect them naturally with the products/services
offered.
 Delight Needs:When a customer gets more than what he needs and if
that makes him happy, then it is called as delight needs.
 Secret Needs:These are the needs which customer does not want to
disclose but still gives indication to have it from the seller.

26. CoreConcept of
Marketing
2.Wants
 The wants are a step ahead of needs and are largely dependent on the
human needs.
 A need becomes a want when a need is directed to a specified object.
 Wants are designed according to the taste and preferences of the
society.

27. CoreConcept of
Marketing
3. Demand
 A demand is generated when a customer is willing to buy a particular
product and has an ability to pay for it.
 Demand = Willingness to pay + Ability to pay

28. CoreConcept of
Marketing
4.CustomerValue
 Value reflects the sum of the perceived tangible and intangible benefits
and costs to customers.
 A product or services is successful when it delivers value and satisfaction
to the buyers.
 Value is usually a combination of quality, service, and price.
 Value increases with quality and service and decreased with price.
 Value changes based on time, place, and people in relation to changing
environmental factors.
 E.g. Online parcel tracking facility provided by the courier companies
without any additional cost can be one of the best examples of
customer value.

29. CoreConcept of
Marketing
5. Exchange
 It is act of obtaining an object which one needs from another by offering
some other thing in return.
 Marketing occurs when individuals decide to satisfy needs and wants
through exchange.
 For an exchange to happen:
 There should be at least two parties involved for any kind of
exchange.
 Each party must have something or other that interests the other
party.
 Each party must be willing to have an exchange with other party
and must have a desirable or at least acceptable opinion about the
other party.
 Each party must be totally free from any obligation regarding
accepting or denying the offer.
 Each party must be able to communicate and deliver the product
as per the requirement of the other.

30. CoreConcept of
Marketing
6.Customer &
Consumer
 Customers and consumers are used interchangeably to define the same
individual but there is a difference.
 If an individual purchases an item for his own use, then that individual is
a consumer; however, if the individual buys the product as a gift or
purchases it for someone else for any reason then the person
purchasing that product is the customer.
 The customer can be a consumer but a consumer may or may not be a
customer.

31. CoreConcept of
Marketing
7. Customer
Satisfaction
 Satisfaction reflects a person’s judgment of product’s perceived
performance in relationship to expectations.Customer satisfaction with
a purchase depends on how well the product’s performance lives up to
the customer’s expectations.
 If the performance falls short of expectations, the customer is
dissatisfied.
 Performance < Expectation → Dissatisfied Customer
 If it matches expectations, then the customer is satisfied.
 Performance = Expectations → Satisfied Customer
 If it exceeds the expectations, then the customer is delighted.
 Performance > Expectations → Delighted Customer

32. CoreConcept of
Marketing
8.Customer
Delight
 Customer delight can be defined as the effect of delivering a product or
service that surpasses customer expectations in a favorable experience.
 Performance > Expectations → Delighted Customer

 Customer Delight directly affects sales and profitability of a
company as it distinguishes the company and its products and
services from the competition.

33. CoreConcept of
Marketing
9.Customer
Loyalty
 Loyalty can be defined as a customer’s strong continuing belief that a
particular organization’s products/services offer remains their best
option.
 Loyalty also means customers hanging in there, even when there
may be a problem with the company’s products or services.
 The loyalty can be measured by measuring the strength of the
relationship between buyer and seller or between the
organization and its customer.

34. CoreConcept of
Marketing
10. Marketing vs.
Market
 Marketing is the process of trying to get group of people interested in
buying company’s products or services.
 It is an organizational function and a set of processes that work in
tandem to serve the market effectively, efficiently and profitably.
 Marketing is all those activities that facilitate trade.These include
activities that identify consumers’ needs such as market research
and those activities that satisfy consumers’ needs e.g., packaging
and distribution.
 Market is a collection of buyers and sellers. A market, colloquially,
is a group of people who are willing to buy something.
 It is a place where goods are offered for sale.
 A market is the set of all actual and potential buyers of a market
offer.
 This space can be a produce market, a shop, internationally
between countries, or over the internet.

35. CoreConcept of
Marketing
10. Marketing vs.
Market
 Marketing is the process of trying to get group of people interested in
buying company’s products or services.
 It is an organizational function and a set of processes that work in
tandem to serve the market effectively, efficiently and profitably.
 Marketing is all those activities that facilitate trade.These include
activities that identify consumers’ needs such as market research
and those activities that satisfy consumers’ needs e.g., packaging
and distribution.
 Market is a collection of buyers and sellers. A market, colloquially,
is a group of people who are willing to buy something.
 It is a place where goods are offered for sale.
 A market is the set of all actual and potential buyers of a market
offer.
 This space can be a produce market, a shop, internationally
between countries, or over the internet.

36. Linkage of
Marketing
functions with all
functions in the
organization
 "Marketing is not only much broader than selling, it is not a
specialized activity at all. It encompasses the entire business. It
is the whole business seen from the point of view of the final
result, that is, from the customer's point of view.Concern and
responsibility for marketing must therefore permeate all areas of
the enterprise.“
Peter Drucker
 What Drucker is saying is that marketing should be seen as a
business philosophy, in that the existence of any business depends
on satisfying customer needs and wants.This cannot be the sole
responsibility of the marketing department.
 Developing an effective marketing plan will require close links with
other functional areas of the business.

37. Linkage of
Marketing
functions with all
functions in the
organization Marketing
Production
Finance
HR
M
R & D
IT &CRM
HRM

38. Linkage of
Marketing
functions with all
functions in the
organization
 Operations management/production:
 The marketing department will need to work closely with the
production department to ensure that:
 Adequate research and development is planned to satisfy current
and future customer needs
 The item can be manufactured to the quality and design
specifications laid down by the consumer
 The volume of orders generated by marketing can be met within
the time schedule required for delivery
Production

39. Linkage of
Marketing
functions with all
functions in the
organization
 Finance department:
 The marketing department will need to work closely with the
finance department to ensure that:
 There is an adequate budget to meet the needs for research,
promotion and distribution
 The finance department have a whole organisation brief to ensure
that all the business operates within its financial capabilities.

40. Linkage of
Marketing
functions with all
functions in the
organization
 Human Resource Management:
 The marketing department will need to work closely with the HRM
to ensure that appropriate skills and staffing levels are in place to:
 Research and develop new product ideas
 Meet production targets
 Create an ambitious and competent sales team

41. Linkage of
Marketing
functions with all
functions in the
organization
 Human Resource Management:
 The marketing department will need to work closely with the HRM
to ensure that appropriate skills and staffing levels are in place to:
 Research and develop new product ideas
 Meet production targets
 Create an ambitious and competent sales team

42. Companies
Orientation
towards Market
 As the market has changed,
so has the way the company
deals with the marketplace.
 The company orientation
towards marketplace deals
with the concepts which a
company may apply while
targeting a market.
 There are basically five
different orientations which
a company takes towards
the marketplace.

43. Companies
Orientation
towards Market
 Production Concept – In this concept the company mainly tries to
increase production irrespective of demands of the customer.
 Consumers will favour those products that are widely available and
low in cost. Hence, focus is on efficiency and wide distribution.
 It’s applicable when:
 Product demand is more than product supply.
 Product cost is to be lowered to expand market through scale
economies.
 Hence, in scale economies, fixed cost comes down.
 Scale economies are economics of production achieved through
higher level of product in due to fixed cost(overheads) getting
distributed over a larger market share.

44. Companies
Orientation
towards Market
 Product Concept: Consumer will favour those products that offer
superior quality, innovation, performance features.
 Eg.- Gillete, Nokia, Intel, Sony,Toyota.
 This concept may lead to marketing myopia. PIP (picture in picture)
television of Samsung is innovative product, but didn’t sell due to
complications.
 This is marketing myopia.
 Marketing myopia is when a business focuses on short-term
marketing strategies.
 What causes marketing myopia?
 The root cause of marketing myopia is that companies believe
they're in a growth industry, or that their products are inherently
desirable.

45. Companies
Orientation
towards Market
 Marketing Concept: Integrate marketing activities towards
determining & satisfying needs/ wants of target market more
effectively than competition.
 This is the key to achieving organization goals.
 MarketingActivities – Activities to create/ deliver/ consume the
product to satisfy/ identify need/ want.
 Four Pillars of Marketing concept –
 Target market.
 Customer needs.
 Integrated market.
 Profitability.

46. Companies
Orientation
towards Market
 Marketing Concept: Target market.
 Normally, any company may not be able to operate in every market
to satisfy every need.
 Needs/Wants are/ can be quite special/ different for different
conditions
 Hence, a company needs to identify specific target market which it
can address or whose specific needs it can fulfil.
 Need –Thirst- thirst satisfier.
 Want – Bottled drink/ Packaged drink.
 Product – Pepsi- carbonated artificial flavoured.
 Fruity- non carbonated/ fruit based.
 Energy- non carbonated/ milk based..

47. Companies
Orientation
towards Market
 Marketing Concept: Customer needs
 Customers needs need to be fully understood.This may involve,
 going deeper into needs
 understanding possible trade- off.
 Needs could be ( InexpensiveCar).
 Stated Need- Inexpensive car
 Real Need- Good fuel economy
 Unstated Need- Good service from dealer
 Delight Need- Free accessories
 Secret Need- Seen in good light by friends

48. Companies
Orientation
towards Market
 Marketing Concept: Integrated Marketing
 All departments within an organisation work together to serve
customer’s interest.
 It occurs at two levels:
 -Within marketing department/ functions. Like, Services/
advertising / sales / product management/ market research
 -Marketing department with other company department.
 Like, Purchase/ production/ finance/ HR/ R & D.
 Internal Marketing – Directed at people within organization.
 External Marketing – Directed at people outside organization.
 Every staff member must be conscious of how his/ her work impacts
other customers.

49. Companies
Orientation
towards Market
 Marketing Concept: Profitability
 Ultimate Purpose: –Achieve organizational goals(profit).
 Key : – Do job well and achieve profits as a by-product.
 Doing job well: – Satisfying customer needs better than competition.
 In Reality: Many/ Most organizations embrace marketing concept due to
situation.
 Situation could be
 Declining sales.
 Slow growth.
 Changing buying pattern.
 Increase in competition.
 Increase in marketing expenditure.
 While converting to a marketing oriented organization, a company faces/ may
face internal hurdles.

50. Companies
Orientation
towards Market
 Selling concept – The selling concept believes that customers will
not buy products unless persuaded to do so.
 Assumptions:
 Customer shows buying inertia.
 Company has effective selling & promotion tools to stimulate
buying.
 Used when:
 Goods that buyers normally do not think of buying. Eg.- insurance,
credit cards.
 Companies have over capacity.

51. Companies
Orientation
towards Market
 Societal marketing concept:
 Organization’s task is-
 To determine Needs/Wants/ Demands/ interests of target market.
 To deliver desired satisfaction more efficiently & effectively than
competition.
 To preserve/ enhance consumers/ societies well being while doing
so. i.e., build social/ ethical considerations in marketing practice.

52. Companies
Orientation
towards Market
 Holistic Marketing:
 Holistic marketing concept is a
part of the series on concepts of
marketing and it can be defined
as a marketing strategy which
considers the business as a
whole and not as an entity with
various different parts.
 Holistic marketing concept
involves interconnected
marketing activities to ensure
that the customer is likely to
purchase their product rather
than competition.

53. Selling v/s
Marketing

54. Selling v/s
Marketing