SYLLABUS FOR BBM PROGRAM

Unit 1: Introduction
Unit 2: Marketing environment
Unit 3: Marketing information system
Unit 4: Buyer behaviour
Unit 5: Segmentation, Targeting, and positioning strategies
Unit 6: Product decisions
Unit 7: Pricing decisions
Unit 8: Distribution decisions
Unit 9: Promotion decisions
BOOK: Fundamentals of Marketing Dr Prakash shrestha,
 Chapter 1
Introduction

2
 UNIT : 1

• Meaning of marketing
• Evolution of the marketing philosophies-Basic principles of the production ,
product, selling, marketing and Holistic concepts
• Meaning and tasks of Marketing management
• Marketing challenges of the 21st century and firm’s responses to the challenge
• Concept, relevance and practices of relationship marketing, green marketing,
and e-marketing.
• Components of the marketing mix for products and services
 Chapter 1:
INTRODUCTION
CONCEPT OF MARKETING

A simple meaning of 'Marketing is selling of goods and

services. To the general public, marketing is selling through
advertising. However, selling and advertising are only the tips
of marketing iceberg. The term 'Marketing ' has a wider
coverage. It is a comprehensive term which includes a group of
business activities in order to create and promote consumer
demand and to direct the flow of products from the original
producer to the final consumer in the process of distribution
 MARKETING DEFINED

• Development of marketing is tied up with the

development of human society

• Some form of marketing was practiced by the

human society since people produced surplus
of food and other necessary items
• Barter System
• Use of Money
5
• Marketing is a social process

• The practice of marketing is closely

associated with the socio-economic
development of a society

• Marketing comes in a wide variety of

flavors based on audience, media platform
and business in today’s evolving and
dynamic marketplace 6
AMERICAN MARKETING ASSOCIATION (AMA)
DEFINITIONS
• Marketing was formally defined for the first time in
1960 by the American Marketing Association (AMA).

• In 1960, the major issue in marketing was

distribution. Accordingly, AMA viewed marketing as:
"The performance of business activities that direct
the flow of goods and services from the producer to
consumer or user.”
7
• AMA revised the definition of marketing in 1985.

• Marketing in 1985 was defined as a management

process that involved planning and implementation
of the marketing mix (4Ps).

• AMA’s 1985 definition was as follows:

"Marketing is the process of planning and executing
the conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges that
8
satisfy individual and organizational objectives."
• AMA’s definition of marketing in 2013 is as follows:
“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.
(Approved July 2013)”

9
PHILIP KOTLER’S DEFINITIONS
• In 1990, Kotler’s definition of marketing was as follows:
“Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating and exchanging products and value with
others.”

• Kotler’s definition of marketing in 2010 was as follows:

“Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering, and freely exchanging products and services of
value with others".

• In 2014, Kotler’s definition of marketing was as follows:

"Marketing as the science and art of exploring, creating,
and delivering value to satisfy the needs of a target 10

market at a profit.”
OTHER DEFINITIONS
• Marketing is the process by which a firm profitably
translates customer needs into revenue. –Mark
Burgess
• Marketing is creating irresistible experiences that
connect with people personally and create the desire
to share with others. – Saul Colt
• Marketing is delighting a consumer, customer
and/or user to achieve a profit or other pre-
established goal. – Steve Dickstein
• Marketing is the act of developing an engaging
relationship with every single human being that
shows an interest in you. –Paul Flanigan
• Marketing is the art and science of persuasive 11

communication. –Dave Kerpen

• Marketing is anything you create or share that tells your story. –
Ann Handley
• Marketing is the process of building relationships with prospects
and customers so that you can profitably develop and promote
products and services. – Chris Garrett
• Marketing is an ongoing communications exchange with
customers in a way that educates, informs and builds a
relationship over time. –Renee Blodgett
• Marketing is the art and science of creating, delighting and
keeping customers, while making a profit and building enterprise
value. – Max Kalehoff
• Marketing is discovering what the prospect wants and demands 12
and delivering it more efficiently and effectively than the
competition. –Paul Kulavis
• Marketing defines the business opportunity, identifies profitable
customers and products/services that will meet customer needs,
builds customer relationships, drives customer demand and
communicates corporate or product/services value. –Ann Z.
Marshman
• Marketing is the art and science of creating demand to drive
profitable growth. David W. Mischler – President, Altascend
Consulting
• Marketing is the unique opportunity to establish respect and a
relationship with your target audience in a way that compels them
to become addicted to your products or service, your support. –
Jeanniey Mullen
• Marketing is all activities designed to attract and connect
customers with the products and services they need. –Patrick
Prothe
• Marketing strives to connect a product or service with a market for
thatproduct or service. –Michael Puican
13
• Marketing is about focusing efforts to develop deep insights into
customer behavior and overall market conditions to drive sustainable
profitable growth for the company. –Humphry Rolleston
• Marketing is understanding your buyers really, really well. Then
creating valuable products, services, and information especially for
them to help solve their problems. –David Meerman Scott
• Marketing is marshaling all available resources to deliver constantly
on the fundamental principle that it’s not what you want to sell, but
what customers are looking to buy. –Jim Siegel
• Marketing is the belief that profitable sales and satisfactory returns
on investment can be achieved by identifying, anticipating and
satisfying customer needs and desires. –Peter Drucker
• Marketing is the “business activity of presenting products or
services to potential customers in such a way as to make them eager
to buy.” –Encarta Dictionary
14
IMPLICATIONS OF THE DEFINITIONS
The definitions so far presented before us imply that:
• Marketing deals with identifying and meeting human
and social needs; or more specifically, marketing
means meeting customers’ needs profitably through
the exchange and transaction process.
In view of the emerging marketing thoughts and
practices, our definition of marketing is as follows:
• Marketing is exploring, creating and delivering value
and satisfaction to the target market with
appropriate design and implementation of marketing
mix.
15
 Features of marketing

From the different definition of marketing, it has following

features,
a) Marketing consists of activities i.e product, price, place
and promotion related activities
b) Marketing activities satisfy customer's needs, wants, and
demands.
c) Marketing activities facilitate exchange relationships.
d) Marketing helps organization to achieve objectives
CORE CONCEPT OF MARKETING
Needs, → Products → Value &
Wants, (goods, services, ideas, Satisfaction
Demand etc.)
s

↑ ↑

Marketi ← Market ← Exchange &

ng Transaction
 Needs, Wants & Demands

→ Needs are a state of deprivation of some basic satisfaction. Marketing starts with human needs.
People have various needs i.e. physical needs, safety needs, social needs, ego -related needs etc.
→ Wants are specific satisfiers of needs. Wants are shaped by social cultural forces, Institutions,
Individual etc
→ Demands are wants for specific products backed by ability and willingness to buy. Wants backed by
purchasing power (money) and willingness to spend money become demands.

Needs exist in the individual. They are not influenced by marketing. It influence wants through the
provision of specific products. Marketing also influences demand through the offer of appropriate products.
 Products
A product is anything that can be offered to satisfy a
need or want. Products can be:
→ Goods: Physical goods like food, books, cosmetics,
computer etc.
→ Services: Secretarial services, Electronic goods
repairing, legal services.
→ Ideas: Environment protection, family planning,
property rights to women.
→ Experiences: Rafting tour in the river, balloon flying.
→ Events: Exhibition, concert, games.
→ Places: Nepal, Pokhara, Mankamana
→ Personalities: Political leaders, film actors, players.
→ Organizations: Sanyo, Akira, Sony, Nepal Red Cross
society
 Value & Satisfaction

• Value is the customer's estimate of the products capacity to

satisfy needs. Costs are considered in estimating the value of
the product. Marketing offers as much value as possible for
the price.

• Satisfaction is the customer's perceived performance

from a product in relation to expectation.
 Exchange & Transactions

Exchange is the act of obtaining a desired product from

someone by offering something of value in return. Exchange is the essence
of marketing.

Transaction is a trade of values between two or more parties. It can be

barter or monetary forms. It builds relationship & network .Marketing
focuses to create life time customers and develop networks with suppliers,
distributors, technological, partners etc.
 Markets

• A market consists of all potential customers having a

particular need or want who passes ability and willingness to
engage in exchange to satisfy that need or wants. In other
words, there should be:
•→ People or organizations with needs or wants to satisfy.
•→ Money to spend.
•→ Willingness to spend through exchange.
 Marketing:

Marketing encompasses all the activities aimed at satisfying the

needs of the customers through the exchange relationships to achieve
organization goals with social responsibility.
Marketing is composed of three activities; seeing the opportunity,
converting the opportunity into products and services, and delivering value
to buyers through the products and services.
Marketing is a total system of business activities designed to plan , price,
promote, and distribute want-satisfying goods and services to present and
potential customers.
 IMPORTANCE OF MARKETING

Marketing is recognized as the most significant activity in our society. Marketing is all
around us. Our very existence, our entire economic life, our lifestyles are continuously
affected by a wide range of marketing activities. The food we eat, the clothes we wear,
the housing that shelters us, the comforts and amenities we enjoy in our home and at
work places, the health and welfare activities, which give us peace of mind, all these are
profoundly affected each day by marketing system. Marketing alone can put goods and
services we want and need at our doorsteps. It can satisfy our varied and innumerable
needs and wants. Our entire economic life shall be simply paralyzed if marketing system
fails to shoulder its main responsibilities i.e. discovering and serving the market demand.
Importance of marketing can be explained under the following heads:
Importance of marketing to the consumers

i. Creation of utilities (Value addition)

a. Form utility
b. Place utility
c.Time utility
d. Information utility
e. Possession utility
ii.Increased standard of living
iii Provide satisfaction
iv Reasonable price and quality products
v. Selection of facilities/ product assortment
vi. Improving quality of life
vii.Enhance beliefs and life styles
 Importance of marketing to the
society

i Provide employment
ii Poverty alleviation (Breaks the vicious circle of poverty)
iii. Protection from depression
iv. Delivery of standard of living
v. Optimum utilization of resources
vi. Increased national income
vii. Provide ethical and useful offers
viii. Social well-being
 Importance of marketing to the
firm/organization/Individual business enterprises

i. Business planning and decision making

ii Developing successful exchange
iii. Helpful in increasing profits/Revenue earning
iv. Communication between firm and society
v. Stimulating demand for the firm’s products
vi. Environmental adaptation
vii. Management of innovation and change
 EVOLUTION OF MARKETING
PHILOSOPHIES/ DEVELOPMENT OF
MARKETING CONCEPT
The development of marketing is directly linked with human development. It has
developed in an evolutionary rather then revolutionary fashion. Its development
has been influenced by the progress of civilization and the economic
development of nations. Various marketing concepts are evolved with the
development of industrialization. Business concepts are the philosophies under
which the organization conducts their operations. It is the business concept that
guides marketing effort of an organization. The organizations conduct their
marketing activities under these concepts:

1
 1. The Production Concept:

The production concept believes that consumers will favor those products that are
widely available and low in cost.

→ This concept holds that customers favour widely available and low cost product.
→ Production orientation, high production, wide distributions are the main features
of this concept.
→ Under this concept, managers concentrate on increasing production volume,
reducing costs and widening distribution.
→ Many Nepalese organizations are still working under the production concept.
 Characteristics Marketing Focus

Production efficiency through Low priced standardized

economies of scale products

Mass production Mass distribution and

selling

Achieve lowest production and High faith in production

distribution costs managers

Price-key marketing variable Cost reduction efforts

Key role in organization Production manager

30
 2. The Product Concept:

The product concept believes that consumers respond to good quality

products that are reasonably priced.

→ This concept holds that customers favour products that offer

quality, performances or innovative feature.
→ Quality orientation, well made product, no concern for customers need,
quality improvement are the features of this concept.
→ Under this concept, managers focus their energy on making superior
products and disregard customer preferences.
 Characteristics Marketing Focus

Product quality High performing durable products

supported by long-term warranties

Reasonable price Cost reduction

Product design High faith on engineers

Key role in organization Design engineers

32
 3. The Selling Concept:

The selling concept is based on the idea that people will buy more goods and services if
aggressive selling methods are used.
It believes that people ordinarily will not buy the organization's product unless they are
persuaded to buy.
→ This concept holds that customers should be persuaded into buying through
aggressive selling & promotion effort.
→ Selling orientation, aggressive promotion, are the features of this concept.
→ No concern for customers need or customers retention.
→ Under this concept, managers focus on stimulating sales through a battery of
promotion tools like advertising, sales promotion, public relation and personal selling.
 Characteristics Marketing Focus

Persuasive selling High faith on powerful salesmanship

and sales promotions

Transaction marketing Focus on one-time sales

No consideration for customer Useful in political marketing and

satisfaction and repeat bying marketing of unsought products

Key role in organization Sales manager

34
 4. The Marketing Concept:

The marketing concept believes that the key to achieving organizational objectives lies in
being more effective than competitors in integrating marketing activities toward
determining and satisfying the needs and want of the target markets.
→ This concepts hold that the key to achieving organization objectives consists
of market orientation and integration of marketing activities to satisfy the needs of
customers.
→ Well defined target market, customer orientation, integration of all the marketing
activities, objective achievement through customer need satisfaction.
→ Under this concept, manager focus all activities at determining customer needs in
target market and then satisfying them through coordinated marketing efforts to achieve
objectives.
 Characteristics Marketing Focus

Target market focus Identification of the target market

through market segmentation,
targeting, and product positioning

Knowledge of customers' needs, Marketing research, produce and

wants and values deliver products that match the
customers' needs, wants and values

Customer satisfaction and repeat Relationship marketing

buying

Integration and coordination of Marketing mix planning and

various tools and techniques of integrated marketing
marketing

Key role in organization Marketing manager

36
 5. The Societal Marketing Concept:

→ This concept holds that organisational objectives should be achieved

through the satisfaction of customer needs in a way that preserves or enhances the
consumer and the society's well- being.
→ Social responsibility orientation, customer needs satisfaction in target market,
integrated marketing efforts, profitability through positive consideration to consumer
and social welfare.
→ Under this concept, managers endeavor to strike a balance regarding
customer need satisfaction, profitability and public interest.
 Selling Factors Marketing

Product Emphasis Customers’ needs and

wants

First manufacturing and Process First determining market

then selling prospects and then
manufacturing

Sales volumes Orientations Customers’ needs

Aggressive salesmanship Tools Identifying needs

Advertisements Discovering demands
Sales Promotions Delivering satisfaction
Transaction marketing Obtaining loyalty
Maintaining
relationships
Marketing function wise Approach Integration of all
operation. Each marketing functions and
department works processes to achieve
independently. common marketing goals

Short-term focusing on Planning Long-term focusing on

current products and future products and
competition potential competition
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Costs determines price Pricing Customers determine
price
6 . HOLISTIC MARKETING ORIENTATION
According to Philip Kotler, “the holistic marketing
concept is based on the development, design, and
implementation of marketing programs, processes,
and activities that recognizes their breadth and
interdependencies”.
The holistic marketing concept is based on the
development , design, and implementation of
marketing programs, processes, and activities that
recognizes their breadth and interdependencies.
39
 Internal Integrated
Marketing Marketing

Senior management Communication

Marketing department Products and services
Other departments Holistic Channels
Marketing

Performance Relationship
Marketing Marketing

Sales Revenue Channel

Brand & customer equity Customers
Environment Parterns
Legal
Ethics
40
Community
 • Relationship Marketing
Relationship marketing has the aim of building
mutually satisfying long-term relations with key
parties – customers, suppliers, distributors- in order
to earn and retain business.
• Integrated Marketing
Four Ps Four Cs
Product Customer Solution
Price Customer Cost
Place Customer Convenience
41

Promotion Communication
• Internal Marketing
• Marketing department level
• Other departments’ level

• Performance Marketing
• Financial accountability
• Social responsibility

42
 Business Concepts-A Comparison
Business Startin Main Means Means Organizational Goal
concepts g point focus
Producti Factory Product Production Low priced Profit through mass
on efficiency products production and
concept merchandising
Product Factory Product Product Product Profit through long-lasting
concept quality and quality and and high performance
performance performance products
guarantee
Selling Factory Product Aggressive Promises of Profit through high sales
concept selling and product volume
promotion superiority
and extra
benefits
Marketin Market Customer Integrated Customer Profit through customer
g s' needs marketing satisfaction satisfaction
concept
Societal Market Customer Integrated Consumer Profit through social
marketin s' needs marketing welfare welfare
g
concept
Holistic Society Individual Relationship Social Profit through customer 43
Marketin and Marketing Welfare satisfaction, strong brands
g Social Integrated and social welfare
Concept Needs Marketing
DIFFERENCE BETWEEN SELLING CONCEPT & MARKETING
CONCEPT
Selling Concept Marketing Concept

a.
Emphasis on the product. The emphasis is on customer's needs &
wants.
b.
Company first makes product and Company first determine customers'
then figures out how to sell it. need and then figures out how to make
and deliver a product to satisfy these
wants.
c.
Management is sales volume Management is profit oriented at the
oriented. cost of customers' satisfaction.
d.
Planning is short run oriented in Planning is long-run oriented in terms
terms of today's products and of new product, tomorrow's markets
markets. and future growth.

e.
Stresses on needs to sellers. Stresses on wants of buyers.

f.
Promises of product superiority Customer Satisfaction.
and extra benefits.
Fundamental Principles of
Marketing Concept
• Target Market Focus
• Customer Oriented
• Integrated Marketing / coordination of marketing
• Profitability / objective achievement

45
 1. Target Market
An organization can do better if it can define the
boundaries of its operation and follow a market
tailored business strategy.
→ A market is the set of all actual and potential
buyers of product.
→ A target market consisting a group of
homogenous customers is carefully selected for
marketing purpose.
→ The focus is on a group of customers is a well-
defined market whose needs can be satisfied. For
example, the target market for the mountain flights of
Nepalese airlines is foreign tourists.
46
 2. Customer Oriented
Once an organization adopts the marketing concept
customer satisfaction becomes its main focus.
All planning & operations are customer oriented.
Customer needs are defined from the customer's
point of view.
→ The marketing activities begin and end with
customers. The customer is the King/Queen. The
key to organisational success is customer need
Customer-oriented Organization Chart

satisfaction. Customers

Front-line people

Middle
management
Top 47
manage-
ment
 3. Integrated Marketing / coordination of marketing
The principle of integrated marketing calls for a full coordination and
integration of the various marketing activities performed within the
organization.
→ All marketing activities are organizationally coordinated under the
marketing department to satisfy customer needs.
→ Various marketing functions must work together. Such functions are
product management, marketing research, pricing distribution,
advertising, public relations, sales force, etc. Marketing department is
responsible for all such activities. It must be well coordinated with
other departments like finance, production, personnel and research and
development to faster team work. All the departments and employee
should work together to serve the customer's interest.
The coordination has to be achieved at three levels.
1. Marketing activities 48
2. Interdepartmental coordination
3. External partners
 4. Profitability/ objective achievement
The principle of profitability calls for an analysis of every business
opportunity from the view point of profitability and survival of the
organization.
The ultimate purpose of the marketing concept is the achievement of
organisation objectives. For private business, the objective is profit
market share, sales, etc. For public and non-profit organization it is
surviving and attracting fund to perform their work.
→ The marketing concept stresses that organization can best achieve
objectives by providing customer need satisfaction. However to
survive, organization should not only satisfy customer needs but also
achieve their performance
→ Objective achievement through customer satisfaction.
The marketing concept emphasized customer orientation and 49
coordination of marketing activities to achieve the organizations'
performance objectives.
• CONCEPT
Marketing Management
Marketing management is the process of decision making,
planning, and controlling the marketing aspects of a
company.
Marketing management is the process of planning,
organizing, directing, and controlling the conception,
pricing, promotion, and distribution of ideas, goods, and
services . It creates exchanges that satisfy individual and
organizational objectives.
The broad functions of marketing management are
generally centered on three major activities:
• Understanding demand 50

• Stimulating demand
• Servicing demand
 Definitions of marketing
management
According to AMA, ‘’ Planning , production, and control of entire marketing
activity of a firm or a division of a firm, including the formulation of marketing
objectives, policies, programmes, strategies and reappearing product
development organization to carry out the plans, professional working
operations and controlling performance’’
According to Philip Kotler, ‘’It is the analysis planning, implementation and
control of programmes designed to bring about desired exchange with larger
audiences for the purpose of personal or mutual gain. It relies heavily on the
adaptation and coordination of product-price-promotion and place for
achieving effective response.’’
• TASKS OF MARKETING MANAGEMENT
• Developing marketing strategies and plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• shaping the market offering /Designing offers
(Marketing mix)
• Delivering value
• Communicating customer value
• Creating long term growth or sustainable growth 52
• THE MARKETING MANAGEMENT PROCESS

Market Opportunity Analysis

Product/Market Selection
Market Segmentation

Develop Marketing Plan

Market Targeting

Market Positioning Implement and Control

53
Develop Marketing Mix
• Stage 1: Opportunity analysis
• Stage 2: Market targeting
• Stage 3: Positioning
• Stage 4: Develop Marketing mix

54
Marketing challenges of the 21st
1.Intense competition
century
2.Increase in customer demands
3.Changing habit of consumers
4.Changing media habit
5.Creating consumer database
6.Brand differentiation
7.Adoption of relationship marketing
8.Rapid globalization
9.More ethics and social
responsibility
10.The new digital age
 Firm’s response to cope with the
challenges of 21st century

• Adoption of relationship marketing

• Integrated communication
• Innovative culture
• Mass customization
• Digital marketing
 Emerging concepts of marketing

1.Relationship marketing
2.Green marketing
3.E-marketing
Relationship marketing

According to Philip Kotler and Gary Armstrong, ‘’ Relationship marketing is the process of
creating, maintaining, and enhancing strong, value-laden relationships with customers and
other stakeholders’’
Long term partnership between marketing expert and customers is called relationship .
Relationship marketing gives emphasis on establishing valuable relationship and creating
delivery network with them rather than personal dealings. It builds relationship with all
stakeholders of marketing activities.
Relationship marketing is building long-term mutually satisfying relations with customers .
 Relevance/ importance of
relationship marketing

• Long term relation

• Customer satisfaction
• Loyal customers
• Development of new partnership
• Long-term profit
• Identification of strength and weakness
 Customer relationship building
process
• Suspect
• Prospect
• First time customer
• Repeat customer
• Clients
• Members
• Advocates
• partners
Practices of relationship marketing

• Basic marketing
• Reactive marketing
• Accountable marketing
• Proactive marketing
• Partnership marketing
 APPROACHES OR STRATEGIES FOR
RELATIONSHIP MARKETING

1 Quality assurance
2 Financial benefits
3 Social benefits
4 Technical benefits
 Green marketing
American marketing association ,’’Green marketing is the marketing of products
that are presumed to be environmentally safe.’’
Michael jay Polonsky,’’ Green or environmental marketing consists of all activities
designed to generate and facilitate any exchanges intended to satisfy human
needs or wants, such that the satisfaction of these needs and wants occurs, with
minimal detrimental impact on the natural environment.’’
Green marketing promotes environmental protection through marketing efforts.
Green marketing is also known as environmental marketing, ecological marketing,
sustainable marketing and organic marketing.
The beginning of the concept of green marketing can be traced to the Earth summit
conference held in 1992 at Rio de Jeneiro, Brazil.It emphasized the importance of
protecting the environment by raising environmental awareness among consumers
and business people.
Green marketing is all activities designed to generate and facilitate any exchange
intended to satisfy human needs or wants such that satisfying of these needs and
wants occur with minimal detrimental input on the national environment. it is
concerned with environmental preservation.
 Requirements for green
marketing
• Commitment
• Pollution control
• New technology
• Use of recyclable materials
• Legal framework
• Use of eco labels
• Consumer consciousness
 Benefits of adopting green
marketing
• Profitability
• Competitive advantage
• Increased market share
• Better products
• Personal rewards
• Better physical environment
• Sustainable development
 E-marketing
E-marketing is an act of conducting marketing transaction via electronic
medium. It is the means for E-business. It is the fastest growing and most
exciting branch of marketing.
E-marketing consists of buying and selling of products as services over
electronic system such as internet, computer networks and other digital
/electronic devices. Computer, laptops, scanners, mobile phone, software apps,
fax, e-mail, videoconferencing ,social networking, television et c are tools and
mediums are use d in E-marketing.
E-marketing is often called e-commerce, online marketing, or internet
marketing.
E-commerce marketing is establishing exchange business relations through e-
mail, internet and electronic platforms to satisfy individual needs of customers.
 Features of E-marketing

• Individual communication
• Online selling
• Elimination of middleman
• Data depository
• Enhance promotion
• Global alliance
• Good relationship
• Need of electronic devices
 Methods of E-marketing

• Business to business(B2B)
• Business to consumers (B2C)
• Consumers to business (C2B)
• Consumers to consumers (C2C)
 Benefits of E-marketing

1.Benefits to consumers:
a. choice
b. Convenience
c. Information
d. Less hassle
e. Low cost
 Contd..

2.Benefits to companies
a.It minimizes cost.
b.Relationship building
c.Globalize
d.Customized promotion
e.New market opportunity
 MARKETING MIX
Marketing mix is the set of marketing tools that organization uses to pursue their
marketing objectives in the target market. Organizations must create and maintain an
effective marketing mix that satisfies customer needs. Marketing mix includes product,
price, place and promotion. Therefore, it is called 4Ps of marketing. The marketers must
combine these elements or component of marketing mix in order to achieve both
competitive advantages in the market place and company objectives.
"Marketing mix is the controllable variables which the company puts together to
satisfy its target market." - Jerom McCarthy (1960)
The components of marketing mix are known as 4 Ps. Neil Borden of the Harward
business school popularized the term marketing mix. Marketing mix is the combination of
4ps i.e product, price , place, and promotion.
→ Marketing means satisfying customers. To satisfy customer, there are four tools
called 4ps i.e right product design, right pricing, right placement, and right
promotion
→ The four elements of marketing mix are inter-related. Decision in one element
usually effects action in other. These are mutually interconnected and interdependent.
→ The organization adopts an adequate blend of the four Ps in relation to a product
 Components of marketing mix
1) Product Mix (Product Assortment):
A product is anything that can be offered to satisfy customer needs.
Product is the fundamental element of basic action in marketing mix. All
activities in marketing process start with product mix. Components of Product
mix consists,
→ Related to product planning & development
→ Product design (size, shape, colors, etc.)
→ Product variety (line & items)
→ Product quality (standardization & grading)
→ Product features
→ Branding & Trademark
→ Packaging
→ Services
→ Warranties
→ Analyzing product life cycle
 Contd.

2) Price Mix:
Price is the amount of money that customers pay for the product. The
price of product should be affordable and acceptable. Price is a charge on
customer’s pocket. Correct prices are necessary to be fixed, neither too high nor
too low.
→ Setting list price (based on pricing objectives)
→ Discounts & allowances to provide price flexibility
→ Terms of sale (credit terms, payment period, payment mode etc.)
 Contd.
3)Place Mix (Distribution):
Place mix is the link between producers and consumers. It carries
products from producers to consumers. It is a distribution network.
Place includes the various activities undertaken to make the
product accessible and available to target customers. A right
place is one where maximum demand for its products
exists and maximum products consumed
→ Channels (direct or middleman)
→ Physical distribution (order processing, warehousing & location,
material handling, inventory management, Transportation)
→ Channel promotion & motivation
 Contd.
4) Promotion Mix:
Promotion mix includes all activities necessary to bring products to
the notice of customers and influence them to buy the products
Promotion includes all the activities undertaken to
communicate and promote products to the target market. The
components of promotion mix consists,
→ Advertising
→ Sales promotion
→ Personal selling
→ Publicity and
Public relation
 4Ps and 4Cs
4 Ps 4 Cs

a)
Product Customer solution

b)
Price Cost to the customer.

c)
Place Convenience to customer.

d)
Promotion Communication
 Contd.
5) Additional Ps:
4ps of marketing mix cannot cover whole marketing activity. Business
organization should decide other marketing decision. Helen Wodruffe (1992)
proposed the concept of 7Ps) for service marketing activities. Additional
3Ps are as follows:
a. Process mix: It includes important decisions about internal system and
level of customer service.
b. People mix: It is related to human resource management of organization.
c. Physical evidence mix: It is related to physical accommodations i.e. plant
and machinery, furniture, tools and equipment, layouts etc. If these
resources are sufficient available, the work efficiency of an organization
will be increased.