Principles of Marketing

Module -1
Introduction and overview
• Definitions of Marketing, Marketing Vs selling,
history of business orientations, meaning of
exchange and value, types of market and ethics in
marketing.
Introduction in marketing
concepts

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What is the difference between
a need, a want and a demand?

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 What is the difference between a
need, a want and a demand?
• Millions of children are dying of hunger and
malnutrition in most of the remote countries of
Africa - They NEED food.

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 What is the difference between a
need, a want and a demand?
• Infants are dying even before they're fully able to
see the world(as their vision will be blurry for few
weeks), pregnant women are giving birth to half
dead babies, some are dying even before giving
birth - They WANT proper medication.

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 What is the difference between a
need, a want and a demand?
• A group of notorious and brainstormed in humans
are killing hundreds of innocent citizens and
beheading responsible journalists - They are
DEMANDING a state.

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What is the difference between a
need, a want and a demand?

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 What is the difference between a
need, a want and a demand?
• Need- the things without which you can’t survive or
the basic ammenities of life. Ex:- food, water,
clothes, home etc
• Want- desires.. the luxuries you want to have to
make your life easy and comfortable.. ex- an
expensive watch, jeweery etc.
• Demand- when a person is able (have enough
financial sources) and willing(can spend that
finance on that particular article) to buy something
at given time at the given price then it is called his
demand.
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 Products
• A product is anything that can be offered to a
market to satisfy a need or want.
• People satisfy their needs and wants with products
• Marketers often use the expressions goods and
services to distinguish between physical products
and intangible ones

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What is Exchange

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 The Concept of Exchange
At
At Least
Least Two
Two
Parties
Parties Something
Something of
of
Value
Value

Necessary Ability
Ability to
to
Necessary Communicate
Conditions Communicate
Conditions Offer
Offer
for
for Exchange
Exchange
Freedom
Freedom toto
Accept
Accept or
or Reject
Reject
Desire
Desire to
to Deal
Deal
With
With Other
Other Party
Party
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The Concept of Exchange

The idea that people give

up something to receive
something they would
rather have.

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Conditions for Exchange
• There must be at least two parties
and each party…

• Must have something the other party

values
• Must communicate and deliver goods
• Must be free to accept or reject offer
• Must want to deal with other party

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 1
The Concept of Exchange

 Exchange may not take place

even if conditions met

 An agreement must be
reached

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 What is Transaction
• Transaction is the deal that takes place between the
parties of the exchange namely buyer and the
seller.

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What is Market

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 What is Markets
• It is coming together of buyers and sellers in person
or in contact with any means where they are in
touch with the detailed information about what
sellers are having to offer and what buyers are
ready to buy.
• It is a mechanism that facilitates price fixation easily
and quickly for the mutual benefit of buyers and
sellers, Physical presence of goods and people at a
point is not market.

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What is Marketing,

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What is Marketing?
 Personal Selling?

 Advertising?

 Making products available in stores?

 Maintaining inventories?

All of the above, plus much more!

©2003 South-Western
What is Marketing?

A Philosophy A Set of Activities,

An Attitude including:
Products
A Perspective
A Management Pricing
Orientation Promotion
Distribution

©2003 South-Western
What is Marketing?
American Marketing Association Definition

Marketing is the process of planning and

executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational goals.

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 EXAMPLE
 When Google recognized that people needed to more
effectively and efficiently access information on the Internet,
it created a powerful search engine that organized and
prioritized queries.

 When IKEA noticed that people wanted good furnishings at

substantially lower prices, it created knockdown furniture.
 These Two firms demonstrated marketing savvy and turned a
private or social need into a profitable business opportunity.
THE FIVE MARKETING
CONCEPTS
 THE PRODUCTION CONCEPT
 The production concept is based on the approach that a
company can increase supply as it decreases its costs.
Moreover, the production concept highlights that a
business can lower costs via mass production.
 A company oriented towards production believes in
economies of scale (decreased production cost per unit),
wherein mass production can decrease cost and maximize
profits. As a whole, the production concept is oriented
towards operations.
THE PRODUCTION CONCEPT
 EXAMPLES OF PRODUCTION
CONCEPT OF MARKETING
MANAGEMENT PHILOSOPHIES
 Companies whose product market is spread all over the
world may use this approach.
 Companies having an advantage of monopoly.
 Any other company whose product’s demand is more than
its supply.
 THE PRODUCT CONCEPT
 This concept works on an assumption that customers
prefer products of greater quality and price and availability
doesn’t influence their purchase decision. And so company
develops a product of greater quality which usually turns
out to be expensive.
 Since the main focus of the marketers is the product
quality, they often lose or fail to appeal to customers
whose demands are driven by other factors like price,
availability, usability, etc.
THE PRODUCT CONCEPT
 EXAMPLES OF PRODUCT
CONCEPT OF MARKETING
MANAGEMENT
 Companies in PHILOSOPHIES
the technology industry.
 Companies having an advantage of monopoly
 THE SELLING CONCEPT
 Production and product concept both focus on production
but selling concept focuses on making an actual sale of the
product.
 Selling concept focuses on making every possible sale of
the product, regardless of the quality of the product or the
need of the customer.
 The selling concept highlights that customers would buy a
company’s products only if the company were to sell these
products aggressively.
 This philosophy doesn’t include building relations with the
customers. This means that repeated sales are rare, and
customer satisfaction is not great.
THE SELLING CONCEPT
 EXAMPLES OF SELLING
CONCEPT OF MARKETING
MANAGEMENT
PHILOSOPHIES
 Companies with short sighted profit goals. This often leads
to marketing myopia.
 Examples of Marketing Myopia
 Kodak lost much of its share to Sony cameras when digital
cameras boomed and Kodak didn’t plan for it.
 Nokia losing its marketing share to android and IOS.
 Hollywood didn’t even tap the television market as it was
focused just on movies.
 Yahoo (worth $100 billion dollars in 2000) lost to Google
and was bought by Verizon at approx. $5 billion (2016).
 Fraudulent companies
 MARKETING CONCEPTS
 Marketing concepts relate to the philosophy a business use
to identify and fulfill the needs of its customers, benefiting
both the customer and the company.
 Same philosophy cannot result in a gain to every business,
hence different businesses use different marketing
concepts (also called marketing management
philosophies).
MARKETING CONCEPTS
 EXAMPLES OF MARKETING
CONCEPT OF MARKETING
MANAGEMENT
 Companies in PHILOSOPHIES
perfect competition.
 Companies who want to stay in the market for a long time.
 THE SOCIETAL MARKETING
CONCEPT
 This is a relatively new marketing concept. While the
societal marketing concept highlights the needs and wants
of a target market and the delivery of better value than its
competitors, it also emphasizes the importance of the well-
being of customers and society as a whole (consumer
welfare or societal welfare).
 The societal marketing concept calls upon marketers to
build social and ethical considerations into their marketing
practices. They must balance and juggle the often
conflicting criteria of company profits, consumer want
satisfaction, and public interest.
The societal marketing concept

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 Definition and Different types of
Markets
• A set up where two or more parties engage in
exchange of goods, services and information is
called a market. Ideally a market is a place where
two or more parties are involved in buying and
selling.
• The two parties involved in a transaction are called
seller and buyer.

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 Types of Markets
• Physical Markets - Physical market is a set up where
buyers can physically meet the sellers and purchase
the desired merchandise from them in exchange of
money. Shopping malls, department stores, retail
stores are examples of physical markets.
• Non Physical Markets/Virtual markets - In such
markets, buyers purchase goods and services
through internet. In such a market the buyers and
sellers do not meet or interact physically, instead
the transaction is done through internet. Examples
- Rediff shopping, eBay etc.
• Auction Market - In an auction market the seller
sells his goods to one who is the highest bidder. 41
 Types of Markets
• Market for Intermediate Goods - Such markets sell
raw materials (goods) required for the final
production of other goods.
• Black Market - A black market is a setup where illegal
goods like drugs and weapons are sold.
• Knowledge Market - Knowledge market is a set up
which deals in the exchange of information and
knowledge based products.
• Financial Market - Market dealing with the exchange
of liquid assets (money) is called a financial market.
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Dos & Don’ts Of Ethical
Marketing
• Try to be transparent.
• Respect data privacy
• Prioritize the concerns of consumer
• Maximizing the benefits
• Minimize the risks
• Don’t overemphasize or exaggerate
• Don’t make false or unverified claims.
• Don’t make false comparisons.
• Don’t harm the emotions.
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World Fair Trade Organization

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Project (J)

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 Marketing Practices of XYZ Ltd
• Company Profile
• History of Company
• Mission
• Vision
• Goals & Objectives
• Products & Services
• Key Milestones

• Marketing Mix
• Products
• Price
• Distribution Strategies
• Promotional Activities
• STP Practices
• Conclusion
• Major Suggestions
• Recommendations
• References
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