Introduction to Marketing | UNIT - 1 | M 104 | Rajasthan Technical University

1. Introduction to Marketing
UNIT – 1

2. What is ‘Marketing’?
• Philip Kotler defines marketing as “the
science and art of exploring, creating, and
delivering value to satisfy the needs of a
target market at a profit”
• Marketing identifies unfulfilled needs and
desires of the customers. It defines, measures
and quantifies the size of the identified
market and the profit potential

3. What is ‘Marketing’?
• “Marketing is the process of planning and
executing the conception, pricing, promotion
and distribution of ideas, goods and services to
create exchange that satisfy individual and
organizational goals.”
• - By American Marketing Association

4. What are the functions of ‘Marketing’?
• Marketing has various functions. Certain key
functions are:
Finding customer requirement
Pricing
Promotion
Distribution of products
Marketing research

5. Functions of ‘Marketing’

6. What is the scope of ‘Marketing’?
• Marketing has immense scope, it can be applied
to [and to many more entities]:
Goods – tangible products [phones, cars]
Services – intangible offerings [banking, health]
Experience – tourism & travelling [incredible
India]
Events – Sports events such as IPL, world cup
Persons – Brand ambassadors like Rahul Dravid
Organizations – Universities, hospitals etc

7. Philosophies of Marketing
• Marketing management has four philosophies
to achieve the objectives of any organization:
Production Concept
Product Concept
Sales Concept
Marketing Concept

8. Philosophies of Marketing
Production Concept: It is the first philosophy
or concept of marketing which says that if the
product is manufactured at low cost [in large
numbers], it will create demand for itself in the
market.
Product Concept: Product concept focuses on
the product’s features and qualities. It says that
a good quality product that fulfils customer’s
needs will create demand for itself.

9. Philosophies of Marketing
Sales Concept: the sales concept focuses on
sales of the product. It says that if proper sales
strategy is adopted for selling the product, the
company will meet with success.
Marketing Concept: marketing concept is the
latest philosophy of marketing which focuses
on understanding customer’s needs,
developing good quality product and taking
feedback etc from the customer for its usage.

10. Elements of Marketing
• Need: need refers to the basic need of food,
clothing and shelter without which the person
cannot survive
• Want: want refers to the desire to have a
specific kind of product like pizza [in case of
food]. Want may or may not be accompanied
by power of purchasing
• Demand: when want is accompanied by power
of purchasing, it becomes demand

11. Elements of Marketing
• Customer: a customer is a person who buys the
product/services
• Consumer: a consumer is a person who
consumes [uses] the product/services
• Customer and consumer may or may not be the
same persons e.g. person A purchasing a gift
for person B

12. Markets & Marketers
• Market can be defined as an arrangement
through which the buyer and seller can make a
sales transaction
• The meaning of market has expanded from
being a physical marketplace like a shopping
mall
• Apart from physical marketplace, market also
covers online market [E-Commerce], E-Mail
orders, Telephonic orders etc

13. Types of Markets
• Based on the number of buyers and sellers,
markets can be of the following types:
Monopoly: consists of only one seller, many
buyers
Duopoly: consists of only two sellers, many
buyers
Oligopoly: consists of only few sellers, many
buyers

14. Types of Markets [Contd.]
Competitive Market: Consists of many sellers,
many buyers
Perfectly competitive market: consists of
infinite sellers, infinite buyers, same product.
Such market exists only in theory.
Monopsony: Consists of only one buyer, many
sellers

15. Types of Markets [Contd.]
Depending on the parties interacting with each
other, market can also be classified as:
B2C: Business to Consumer, where companies
interact with final consumers
B2B: Business to Business, where companies
interact with other companies
C2C: Consumer to Consumer, where
consumers interact with consumers

16. Sales Vs Marketing
Sales is a one time exchange activity, marketing
has many functions [including sales]
Sales is a narrow concept, marketing is a wider
concept
Sales involves push strategies, marketing involves
pull strategies
Sales has a short term perspective, marketing has
a long term perspective
Sales is the outcome of marketing, marketing is
the entire process

17. Marketing Mix: Definition
• Marketing mix is a set of elements which are
helpful to the company for satisfying the
customers and achieving its marketing objectives
• Marketing mix for a product are also called 4Ps,
there were promulgated by E.J. McCarthy in 1960
• Marketing mix for services are also called 7Ps,
the additional 3Ps were added by Booms and
Bitner in 1981.

18. Marketing Mix: The 4Ps
Product: Product refers to the offering given to
the customer for satisfying his/her needs. It can
be a tangible product or an intangible service
Price: Price refers to the amount of money
customer has to pay in order to acquire the
product or avail the service
Place: Place refers to how the product is made
available to the customer. It is related with the
distribution aspect

19. Marketing Mix: The 4Ps
Promotion: Promotion refers to the process of
making the consumer aware of the product
offering available for sale in the market. There
are many methods of promotion like:
 Advertizing
 Sales Promotion
 Personal Selling
 Pubic Relations [PR]
 Direct Marketing

20. Marketing Mix: The Additional 3Ps
• In addition to the 4Ps, Booms and Bitner
added 3 more Ps in case of marketing mix for
services. It was observed that delivery of
service was not possible without these three
Ps. The additional 3Ps are:
People
Process
Physical Evidence

21. Additional 3Ps
People: People refers to the human resource
engaged in delivery of the service to the
customer. Unless automated, services cannot
be delivered without people
Process: Process refers to the sequence of
activities which need to be done in order to
deliver the service. E.g. opening of a bank a/c
Physical Evidence: Physical evidence refers to
the proof that service was delivered. E.g. bills,
manuals etc

22. The Marketing Mix

23. Holistic Marketing Concept
• Holistic marketing refers to a marketing
strategy that considers the whole of a business.
And all the different marketing channels as a
system.
• Under a this approach, a business with
different departments comes together. As a
result, departments collaborate in
interconnected marketing activities.

24. Holistic Marketing Concept [Contd.]
There are four components of holistic marketing:
 Relationship Marketing: The goal of relationship
marketing is to build strong, long-lasting
relationships with various stakeholders and other
important parties connected to the business
Integrated Marketing: Within the integrated
marketing component of a holistic strategy,
businesses work towards making marketing
decisions that create value for stakeholders
through a clear, concise marketing message

25. Holistic Marketing Concept [Contd.]
Internal Marketing: Internal marketing is
aimed at catering to the specific needs of the
business's own employees.
Societal Marketing: The last component of
holistic marketing is societal or socially-
responsible marketing. This component
extends a company's reach beyond the
customers consuming its product or service to
society in general

26. Co-Creation
Co-creation, in the context of a business,
refers to a product or service design process in
which input from consumers plays a central
role from beginning to end.
Less specifically, the term is also used for any
way in which a business allows consumers to
submit ideas, designs or content.
Co-Creation is a recent trend in marketing

27. Co-Creation [Contd.]
Example of Co-Creation:
IKEA - furniture maker company
A product they just launched in early 2018
might be helpful for us to imagine how will
the co-creation work – ‘Delaktif’ is an “open
source” sofa launched recently,
and IKEA opens the door for customers to
experiment their ideas.

28. Customer Engagement
Customer engagement is the process through
which the companies encourage the customers
to spend more time in interacting with them,
going through their product offerings,
enquiring about their offerings etc
Customer engagement is a primary
requirement for successful marketing in
today’s competitive world.

29. Customer Engagement [Contd.]
Customer engagement can be done offline as
well as online [on website, social media etc]
For customer engagement, the companies must
make the customer aware of the latest offering
and how it will benefit the customers
The higher the customer engagement, the
higher are the chances for good sales for the
company

30. Customer Engagement Strategies