Unit – 1

intRODUCtiOn
MaRket :
“A market is the sum total of all the buyers and sellers in the area or region
under consideration. The area may be the earth, or countries, regions, states, or cities.
The value, cost and price of items traded are as per forces of supply and demand in a
market”.
MaRketing :
“Marketing refers to the activities of a company associated with buying,
advertising, distributing, or selling a product or service”.
ManageMent :
“Management is a process of planning, decision making, organizing, leading,
motivation and controlling the human resources, financial, physical, and information
resources of an organization to reach its goals efficiently and effectively”.
MaRketing ManageMent :
“Marketing management is a process of controlling the marketing aspects,
setting the goals of a company, organizing the plans step by step, taking decisions for the
firm, and executing them to get the maximum turn over by meeting the consumers'
demands”.
“Marketing management involves developing and implementing strategic
marketing programs, processes, and activities that align with wider business objectives,
while utilizing customer insights, tracking metrics, and optimizing internal processes to
achieve success.”
event MaRketing :
“Event marketing describes the process of developing a themed exhibit,
display, or presentation to promote a product, service, cause, or organization. It leverages
in-person engagement to connect with customers. Events can occur online or offline. You
can participate in, sponsor or host an event yourself.”
“Event-based marketing is a type of marketing that focuses on creating and
hosting events that promote a product, service, or brand. Event-based marketing can take
many forms, from product launches and trade shows to more intimate events like meetups
and workshops.”
Meaning Of MaRketing :
The term Marketing is derived from the word ‘Market’. The word ‘Market’
has been derived from the ‘Latin’ word ‘Mercatus’ means trade or market place or
merchandise. The father of Marketing – Philip Kotler.
“The place or geographical area where buyers and sellers gather and enter into
transactions involving transfer of ownership of goods and services.”
“Marketing is the process of identifying, anticipating and satisfying customer
needs and wants through the creation, promotion, and distribution of products and
services.”
“It is a business function that includes market research, product development,
pricing, advertising, branding, and promotion, among other activities.”
“The goal of marketing is to create a positive image for a product, service or
brand and to increase sales and revenue.”
DefinitiOn Of MaRketing :
aCCORDing tO PhiliP kOtleR :
“A social and managerial process by which, the individual groups obtain what
they need and want through creating, offering and freely exchanging product and
services of value with others.”
aCCORDing tO aMeRiCan MaRketing assOCiatiOn (2004) :
"Marketing is an organizational function and set of processes for creating,
communicating and delivering value to customers and for managing relationships in a
way that benefits both the organization and the stakeholder.“

aCCORDing tO aMeRiCan MaRketing assOCiatiOn (1960) :

"Marketing is the performance of business activities that direct the flow of
goods and services from producer to consumer or user.“

aCCORDing tO elDRiDge (1970) :

"Marketing is the combination of activities designed to produce profit through
ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected
segment of the market."
 natURe Of MaRketing

1. hUMan aCtivity:
Human needs are satisfied by human efforts.
2. COnsUMeR-ORienteD:
A business exist to satisfy human needs. Business must find out what the
desire of customer (or consumer) and thereby produce goods & services as per the
needs of the customer. Only those goods should be produce that satisfy consumer
needs and at a reasonable profit to the manufacturer (or producer).
3. aRt as well as sCienCe :
In the technological arena, marketing is the art and science of choosing
target markets and satisfying customers through creating, delivering, and
communicating superior customer value. It is a technique of making the goods
available at right time, right place, into right hands, right quality, in the right form
and at right price.
4. exChange PROCess :
Implies transactions between buyer and seller; also involves exchange of
technology, exchange of information and exchange of ideas.
5. staRts anD enDs with CUstOMeRs:
Marketing is consumer oriented and it is crucial to know what the actual
demand of consumer. This is possible only when required information related to
the goods and services is collected from the customer. Thus, it is the starting of
marketing and the marketing end as soon as those goods and services reach into the
safe hands of the customer.
6. CReatiOn Of Utilities :
Time (ensure that products and services are available when customers need
them), Place (Availability of a product or service in a location i.e. Easier for
customers), Possession (gives customers, ownership of a product or service and
enables them to derive benefits in their own business) and Form (the product or
service a company offers to their customers).
7. gOal ORienteD :
Marketing seeks to achieve benefits for both buyers and sellers by satisfying
human needs. The ultimate goal of marketing is to generate profits through the
satisfaction of the customer.
8. gUiDing eleMent Of bUsiness:
Modern Marketing is the heart of industrial activity that tells what, when,
how to produce. It is capable of guiding and controlling business.
9. MaRketing is a DynaMiC PROCess: seRies Of inteRRelateD
fUnCtiOns:
Marketing is a complex, continuous and interrelated process. It involves
continuous planning, implementation and control.
10. systeM Of inteRaCting bUsiness aCtivities:
Marketing is the system through which a business enterprise, institution or
organization interacts with the customers with the objective to earn profit, satisfy
customers and manage relationship. It is the performance of business activities that
directs the flow of goods and services from producer to consumer or user.
sCOPe Of MaRketing
1. stUDy Of COnsUMeR wants anD neeDs:
Goods are produced to satisfy consumer wants. Therefore the study is
done to identify consumer needs and wants. These needs and wants motivate
the consumer to purchase.
2. stUDy Of COnsUMeR behaviOR:
Marketers perform a study of consumer behavior. Analysis of buyer behavior
helps marketers in market segmentation and targeting.
3. PRODUCtiOn Planning anD DevelOPMent:
Product planning and development starts with the generation of product
ideas and ends with product development and commercialization. Product
planning includes everything from branding and packaging to product line
expansion and contraction.
4. PRiCing POliCies:
The marketer has to determine pricing policies for their products. Pricing
policies differ from product to product. It depends on the level of competition,
product life cycle, marketing goals, and objectives, etc.
5. DistRibUtiOn:
The study of distribution channels 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. The right
promotion mix is crucial in the accomplishment of marketing goals.
7. COnsUMeR satisfaCtiOn :
The product or service offered must satisfy the consumer. Consumer
satisfaction is the major objectives of marketing.

8. MaRketing COntROl:
The marketing audit is done to control the marketing activities.
 CORe MaRketing COnCePts
The marketing concept is customer orientation aimed at generating customer-
satisfaction through integrated marketing. Marketing may be narrowly defined as a
process by which goods and services are exchanged and the values determined in terms
of money prices.
The main core marketing concepts are Needs, Wants, Demand, Products,
Utility cost, Exchange, Relationship, Marketer.
 MODeRn MaRketing COnCePt
Modern marketing concept is a broad concept. It relates to finding out the
consumers and to develop a product as per their needs rather than providing them
with the already manufactured goods. Modern marketing concept aims at complete
customer satisfaction by fulfilling their needs and wants.
Traditional marketing starts from production and ends with sale but modern
marketing includes planning, product, price, promotion, place, people, after sale
service etc.
The main five marketing concepts are production, product, selling, marketing,
and societal. Companies utilize these five concepts in regards to the product, price,
distribution, and promotion of their business. Others modern marketing concepts are
Green, Web(online), Tele, Cross Culture, Mobile, Relationship, Buzz marketing.
1. PRODUCt COnCePt :
A product concept, also known as a concept statement, is a description or
vision of a product or service, typically developed at an early stage of the
product lifecycle.
2. PRODUCtiOn COnCePt :
The production concept suggests that people prefer products and services
that are easily available and affordable, which is essentially the idea of mass
production.
3. selling COnCePt :
The selling concept is a part of marketing management and one of several
concepts that make up a marketing strategy. A sales concept analyzes buying and
selling effects to place the focus primarily on generating sales transactions.
4. MaRketing COnCePt :
The Marketing Concept is preoccupied with the idea of satisfying the
needs of the customer by means of the product as a solution to the customer's
problem (needs). The Marketing Concept represents the major change in today's
company orientation that provides the foundation to achieve competitive advantage.
5. COnsUMeR COnCePt :
The concept of consumer is a natural person who purchases, uses goods
or accepts services for the purposes of daily consumption. The rights and
interests of consumers shall be protected by these regulations.
6. sOCietal MaRketing COnCePt :
This concept holds that the organization's task is to determine the needs,
wants, and interests of target markets and to deliver the desired satisfactions more
effectively and efficiently than competitors (this is the original Marketing
Concept).
7. hOlistiC MaRketing COnCePt :
Holistic marketing is a marketing strategy that focuses on the whole
business as one entity. In a holistic marketing strategy, all the company's
departments and all the different components of the marketing strategy work
together to accomplish shared goals and support the company's purpose.
 selling COnCePt MaRketing COnCePt

Selling involves planning, direction and control of Marketing involves: (a) finding out what the
the personal selling activities of a business unit consumers want (b) planning and developing a
including recruitment, selection, training, motivation, product or service that will satisfy those wants, and
compensation of Sales force. (c) determining the best way to price, promote and
distribute the product or service.
Emphasis is on the product. Emphasis is on consumer wants
Company makes a product and then finds out how Company first finds out what the consumer wants
to sell it. and then develops and supplies the product to satisfy
those wants.
Emphasis is on company needs. Emphasis is on market needs.
Selling is production-oriented Marketing is consumer-oriented.
Selling assumes that the goods can be easily sold. Marketing believes that the consumer is the king
and goods should meet his wants and preferences.
In selling, once the goods are sold, the seller does All marketing activities start with the consumer
not think about the consumer. and end with the consumer.
Selling aims at profit maximization by increasing Marketing believes in profitable sales through
sales volumes and profit is the primary aspect in customer satisfaction.
selling.
Selling aims at converting goods into cash and has Marketing has long range objectives such as
narrow perspective. customer satisfaction, growth and market share
Selling concept is traditional and outdated Marketing concept is modern and accepted
 MaRketing Mix (4Ps)
Marketing Mix is a set of marketing tool or tactics, used to promote a
product or services in the market and sell it. It is about positioning a product and
deciding it to sell in the right place, at the right price and right time. The product will
then be sold, according to marketing and promotional strategy.
 MaRketing Mix (7Ps)

The 7Ps of marketing are product, price, place, promotion, people, process and
physical environment.
1. PRODUCt :
A product is the item offered for sale. A product can be a service or an
item. It can be physical or in virtual or cyber form. Every product is made at a cost
and each is sold at a price. The price that can be charged depends on the market,
the quality, the marketing and the segment that is targeted.
2. PRiCe :
Price refers to the cost of the product or service. Properly determining
product price includes an analysis of the competition, the demand, production
costs, and what consumers are willing to spend.
3. PlaCe :
Place in the marketing mix refers to the channel, or the route, through which
goods move from the source to the final user. Place could be the intermediaries,
distributors, wholesalers and retailers.
4. PROMOtiOn :
Promotion is a marketing tool, used as a strategy to communicate between
the sellers and buyers. Through this, the seller tries to influence and convince the
buyers to buy their products or services. It assists in spreading the word about the
product or services or company to the people.
5. PeOPle :
People consist of those individuals who are directly or indirectly involved in
the marketing of goods and services. These people are involved in the production,
marketing, promotion, distribution and delivery of the product or services to the
customers.
6. PROCess :
Process, as part of the extended marketing mix, refers to the systems and
procedures that a company uses to produce and deliver its products or services to
customers. It encompasses the entire process of creating, delivering, and managing
the customer experience.
7. PhysiCal enviROnMent :
A natural environment, or physical environment, refers to both the location a
business operates and the place it sources any natural resources it needs.

MaRketing ManageMent PROCess

“The marketing process consists of analyzing marketing opportunities, researching
and selecting target markets, designing marketing strategies, planning marketing
programmes and organizing, implementing and controlling the marketing effort.”
MaRketing ManageMent PROCess: a stRategiC PeRsPeCtive

Research and
Setting Market Analyzing Market Designing Marketing
Selecting target
Objectives Opportunities Strategies
Markets

Organizing Implementing and Planning Marketing

Controlling Market Efforts Program
steP 1: setting MaRketing ObjeCtives :
The process of marketing management starts with the activity of setting
objectives. The organizational mission provides the priorities for scanning the environment and
finding out the opportunities.
MaRketing ObjeCtives :
 Increase sales volume
 Increase growth rate
 Increase market share
 Increase market penetration
 Maximize return on investment
 Promote positive company image
 Promote social responsibility
steP 2: analyzing MaRket OPPORtUnities :
Analysis of opportunities in the light of company strengths and weaknesses both
internal and external. The task may be to analyze long-run opportunities or even medium-
term
This helps the company to know the needs and wants of their customers, their
locations, buying, social practices and so on.
steP 3: ReseaRChing anD seleCting taRget MaRket :
To select target market, company needs to know how to measure the
attractiveness of any given market. This requires estimating the market’s overall size,
growth and profitability
The modern marketing is divided into major segments, evaluating them,
selecting and targeting those market segments that the company can best serve.
The Company must know techniques for measuring market potential and
forecasting future demand

steP 4: Designing MaRket stRategies :

The marketing strategy spells out the game plan for attaining the business
objectives or project/market objectives
Marketing strategy defines the broad principles by which the business units
expects to achieve broad objectives in the target market.
It consists of basic decisions on total marketing expenditure, marketing mix and
marketing expenditure.
steP 5: Planning MaRketing PROgRaM :
It is not enough to formulate only the board of strategies by which the
business excepts to achieve its marketing objective, but also plan the supporting
marketing mix program

Decisions have to be taken regarding the features, packaging, branding,

servicing policies, etc., of the product.
steP 6: ORganizing, iMPleMenting anD COntROlling
MaRketing effORts :
The final stage in marketing management process is organizing the
marketing resources, implementing and controlling marketing plan.
The company is required to design a marketing organization that will be
able to degenerate the marketing plan up to work, i.e. implementing its effort;.
 CUstOMeR QUality
Customer quality management refers to all the processes undertaken by contact
centers to meet customer expectations and ensure customer satisfaction.
CUstOMeR PeRCeiveD valUe:
It is the difference between the prospective/future customer’s evaluation of all
the benefits and all the costs of an offering and the perceived alternatives

DeteRMinants Of CUstOMeRs PeRCeiveD valUe

a. tOtal CUstOMeR benefits: is the perceived value of economic,
functional and physiological benefits customer expects from market offering.

b. tOtal CUstOMeR COst: is the perceived bundle of costs customer expect to

incur in evaluating, obtaining, using given market offering
 valUe anD satisfaCtiOn
valUe: relationship between benefits and costs
satisfaCtiOn: comparison between customer’s expectation and product performance
Satisfaction Depends on: PRODUCTAND SERVICE QUALITY.
“Quality is the totality of features and characteristics of a product or service that bears
on its ability to satisfy stated or implied needs. The seller has delivered quality
whenever its product or service meets or exceeds the customers expectation.”
MaRketing helPs tO DeliveR high QUality gOODs :
Correctly identifying customer needs
Communicating customer expectations properly to product designers
Making sure that customers orders are filled correctly and on time
Checking that customers have received proper instructions, training, and technical
assistance for product usage
Staying in touch after the sale to ensure customers are and remain satisfied
 MaRket Planning
Marketing planning is the process of defining activities that will support
business goals and establishing a timeline for when that work will be completed. The
conversation should be rooted in your marketing strategy — this represents the “why”
and keeps the team focused on ideas that will be most impactful.
Marketing Strategy or steps :
1. Set Measurable Goals.
2. Conduct Market Research and Identify Your Target Audience.
3. Determine Your Overall Approach.
4. Craft Key Brand Messaging.
5. Select Marketing Channels and Tactics.
6. Establish Your Budget and Timelines.
7. Track and Monitor Progress.
 MaRketing COntROl
 Set of practices and procedure employed by the firms to monitor and
regulate their marketing activities in achieving their marketing objectives are
called marketing control.

 Marketing control is the process of monitoring the propose plans and proceed by
adjusting where necessary.

DefinitiOns :
“Marketing control is the process of taking steps to bring actual results and desired
results closer together.” - PhilliP kOtleR

“It is concerned with analyzing the performance of marketing decisions,

uncovering the performance problems of opportunities and taking corrective actions to
resolve the problems or to take advantages of the opportunities.” - CaRvens
MaRketing COntROl PROCess :

Measure Evaluate Take Corrective

Set Goals
Performance performance Actions

signifiCanCe Of MaRketing COntROl :

 Place the organization in the right direction (it helps the manager in tracing the
deviation from the expected course)
 Identifies the responsibility (Helps to identify responsibilities of executives, strengths
and weaknesses)
 Respond to changes in environment (adjust with the environmental forces like PEST)
 Absorb organizational complexity (expanding in size and more complex in nature.
Growth size created problems of co-ordination and control)
 Changes in formulation of plans (a well developed and effectively operated
marketing system is capable of introducing new change)
Scope or Techniques of Marketing Control :
1. annUal Plan COntROl :
Sales Analysis, Market share analysis, Marketing Expense Analysis,
Financial Analysis, Consumer Attitude Tracking.
2. PROfitability COntROl :
Profitability control and efficiency control allow a company to closely
monitor its sales, profits, and expenditures. Profitability control demonstrates the
relative profit-earning capacity of a company's different products and consumer
groups.
3. effiCienCy COntROl:
Micro-level analysis of the various elements of the market mix (sales
force, advertising, sales promotion and distribution).
4. stRategiC COntROl:
Marketing department having policies, objectives, strategies and programs
are to be reviewed and changed periodically.