1. INTRODUCTION OF MARKETING
UNIT- I

2. INTRODUCTION:
MEANING & DEFINITION:
•
Acc. to William j.stanton “ A total system of interacting
business activities design to plan, promote, price and
distribute want satisfying products and services to present
and potential customers”
• Marketing management is the analysis, planning,
implementation and control of programs designed to bring
out desired exchanges with target audiences for the purpose
of mutual or personal gain it relies heavily on adaptation and
co-ordination of product, price, promotion and place for
achieving effective response.” - PHILIP KOTLER.

3. SCOPE OF MARKETING:
•
•
•
•
•
•
•
•
•
•
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas.

4. Definition of marketing by American Marketing
Association:
“ Marketing consists of the performance of business
activities that direct the flow of goods and services from
producers or suppliers to consumers/ end users”.
Definition by PHILIP KOTLER:
“Marketing is defined as a social and managerial process
by which is individual and groups what they want and need
through creating and exchanging products and values with
others”.

5. NATURE OF MARKETING:
• Marketing is both consumer oriented and competitor
oriented.
• It starts with consumers and ends with consumers by
satisfying their needs.
• Marketing is the most important function of management
• The long term objective of marketing is profit
maximization through customer satisfaction.
• Marketing is an integrated process which is based on
strategies and models.
• Marketing must deliver goods and services in exchange of
money.

6. • Marketing is a science as well as an art.
• Marketing is a system.
•Marketing is goal oriented.
• Marketing is the guiding element of the business.
• Modern marketing precedes and succeeds production.
• Exchange process is the essence of marketing.
MARKETING AND OTHER FUNCTIONAL AREAS:
1. Marketing and manufacturing
2. Marketing and financing
3. Marketing and personnel.

7. APPROACHES TO THE STUDY OF MARKETING:
1.
2.
3.
4.
5.
6.
7.
Product or commodity approach
Institutional approach
Functional approach
Decision making or management approach
Legal approach
Economic approach
Systems approach

8. MARKETING CONCEPTS:
• Production concept:
The production concept holds that consumer will
favor those products that are widely available and low in
cost. Managers of production oriented organizations
concentrate on achieving high production efficiency and
wide distribution coverage.
• Product concept:
The product concept holds that the consumer will favor
that offer the most quality, performance and innovative
features managers in these product oriented organizations
focused their energy on making superior products.

9. • Selling concept:
The selling concept holds that consumers, if left alone,
will ordinary not buy enough of the organization’s products.
The organization therefore, undertake aggressive selling
and promotion effect.
• Marketing concept:
Marketing concept holds that the key to achieving
organizational goals consists in determining the needs and
wants of target markets and delivering the desired
satisfaction more effectively and efficiently than the
competitors.

10. • Societal marketing concept:
Societal marketing holds that the organization task is to
determine the needs, wants and interest of target markets
and to deliver the desired satisfactions more effectively and
efficiently than competitors in a way that preserves or
enhances the consumers and the society’s well being.
society
consumers
company

11. • Holistic marketing concept:
RELATIONSHIP
MARKETING
H.M
CORE
MARKETING
CONCEPT
SOCIETAL
CONCEPT

12. Role of marketing in economic development:
 Any reduction in the cost of marketing is really a benefit
to society. How prices are a boom to the entire population.
 The nation’s income is composed of goods & services
which money can buy. Any increase in a lower cost of
distribution, lower prices to consumers mean a real
increase in the national income.
 Marketing process brings new varieties of useful &
quality goods to consumers. This raises the standard of
living of the people.
 Marketing provides wide employment opportunities.
 It is marketing which has converted yesterday’s luxuries
into today’s necessities.

13.  Marketing converts latent demand into effective
demand.
 Marketing is the creation and delivery of standard of
living.
Marketing myopia:
• This term was given by prof. Theodore Levitt.
• The disadvantage of excessive pre-occupation with the
product or production or selling, ignoring the customer in
the process. It means colored or crooked perception of
marketing and short sightedness about business.
• Excessive attention to production, product or selling
aspects at the cost of the customer and his actual needs
creates this myopia.

14. SELLING V/S MARKETING:
Marketing
Selling
• Focuses on consumer needs
• Customer’s enjoy supreme
importance
• Focuses on seller’s needs
• Product enjoys supreme
importance
• Product planning &
development to match products
• Integrated approach to achieve
Long term goals
• High pressure selling to sell
goods already produced.
• Fragmented approach to
achieve immediate gains
• Converting customer’s needs
into products.
• Market determines price
• Converting product’s into cash
• Cost determines price
• Profits through customer’s
• Profits through sales volume
satisfaction
• Customer is the very purpose of • Customer is the last link in the
the business
business

15. SELLING V/S MARKETING:
CONCEPTS
STARTING
POINT
FOCUS
MEANS
ENDS
Selling
concept
Factory
Products
Selling &
promoting
Marketing
concept
Market
Consumer
needs
Integrated
marketing
Profits
through
sales
volume
Profits
through
customer
satisfaction

16. RECENT INNOVATIONS IN MODERN MARKETING:
1.
2.
3.
4.
5.
Social marketing
De marketing
Re marketing
Over marketing
Meta marketing
It is synthesis of all, managerial, traditional, scientific,
social and historical prospective.

17. Marketing mix: {4p’s}
PRODUCT:
Variety
Quality
Design
Features
Brand name
Packaging
services
PRICE:
List price
Discounts
Allowances
Payment periods
Credit terms
Marketing
mix target
consumers
PLACE [DISTRIBUTION]:
PROMOTION:
Advertising
Sales promotion
Personal selling
Public relations
Publicity
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics

18. FOUR C’S:
Product – customer solution
Price – customer cost
Promotion – communication
Place {distribution} – convenience
MARKETING MANAGEMENT TASK:
1.
2.
3.

Sales & marketing analysis
Determination of marketing goals
Sales forecasting and marketing budget
Formulation of marketing strategies, policies &
procedures

19.  Evolving an appropriate marketing mix or program:
1. Organizing of all marketing activities like product wise, area wise,
customer wise or acc. To specific requirements.
2. Assembling of necessary resources such as marketing personal,
finance, physical facilities.
3. Active participation in the product planning & development to
establish best co-relation between the product attributes and
customer demands.
4. Management of distribution channels & physical distribution.
 Effective communication, proper control and co-ordination of
all marketing functions.
 Post sales servicing during the warranty period
e.g.: electronic items.

20. RURAL MARKETING:
Rural marketing:
740 million rural population acc. To 2001 censes almost
70% of total population.
Occupation pattern:
• 27% agriculture labor – 50% depend on agriculture.
• Remaining are petty traders, salary earner’s are negligible.
• Income generation 70% is from agriculture

21. Location:
6,30,000 villages; 3700 towns & cities
Expenditure pattern:
• 12,000 crores in rural areas
• 6,000 crores in urban areas
• Non-food items in rural area is 1.47 times more than urban area
• 65,000 crore from FMCG [ fast moving consumer goods]
• 5,000 crore on durables
• 45,000 crores on agriculture inputs
Literacy level:
• 80% literacy in urban area
• 30 – 40% in rural areas

22. Land distribution:
• 75% land holdings account for 25% of total cultivated area.
• 25% land holding account for 75% of land.
Land usage pattern:
• 70% of land is used for food crops
• 30% used for commercial crops
Development programs:
• IADP- Intensive agriculture district program
• HYVP- High yielding varieties program
• SFDA- Small farmers development agency
• HADP- Hill area development program
• IRDP- Integrated rural development program
• Operation flood [ white revolution ]

23. Rural infra - structure:
70% of Indian villages are today connected through
Road but 60% remain inaccessible during the monsoon
Season.

24. FEATURES
RURAL
URBAN
Demand pattern
Seasonal demand
Uniform demand
Spread
Widely spread
Concentrated
Literacy level
Low
High
Sources of supply
Inadequate supply
Adequate supply
Physical communication
facilities
Poor
Very good
Product knowledge
Not – known
Known
Awareness of needs
Not – known
Known
Sources of information
Word of mouth,
Any media
panchayaths, doordarshan
Timeliness of supply
Un - timely
Timely
Per – capita income
Low
High
Consumer protection
Rarely available
Easily available

25. PROBLEMS IN RURAL MARKETING:
 Transportation
 Ware – housing
 Packaging
 Media
 Seasonal – marketing
 Low – per capita income
 Low level of literacy

26. RURAL MARKETING STRATEGIES:
I.



Product strategies:
Small unit packing
Low quality products
Brand name
II.



Pricing strategies:
Economy packs
Low priced products
Credit system works
III.




Promotion strategies:
TV
Cinema
Radio
Print media

27.  Wall paintings/ hoardings
 Direct marketing
IV. Place strategies [ distribution]:
 Local retail stores
 Fair price shops [ ration shops]
 Panchayaths
 Weekly markets
 Mobile distribution

28. DIRECT MARKETING
Three basic properties of direct marketing:
1. A definite offer to the consumer.
2. All the necessary information is provided to make a decision.
3. A mechanism to respond to the offer within this frame work
fall all direct marketing offers – sales letters, catalogues,
tele – marketing, direct response , T.V advertisements & the
internet
e.g.: Magazines, news letter publishers, mail order
merchandiser, fund risers, book clubs.

29. Direct marketing is attractive for several reasons:
 Investment required is low.
 It does not required specialized skills.
 All that is required is a data base with consumer profiles.
 Returns are quick and its effectiveness can be measured to the last
rupee.
 Consumer reaction can be known immediately.

30. ADVANTAGES OF DIRECT MARKETING:
o Focused approach.
o Cost effective.
o Measurable & attributable.
o Immediate & flexible.
o Ability to test, measure the impact of single variables.
o Easy international reach.
o Tailored messages.
o Alternative distribution channel.
o Opportunity to built a data base..

31. DISADVANTAGES OF DIRECT MARKETING:
• May be seen as competing with existence
intermediaries.
• May be seen as intrusive from consumers.
• Cost is high.

32. ONLINE MARKETING
Internet commerce is classified as follows:
 B 2 C – Business to Consumer
 C 2 C – Consumer to Consumer
 C 2 B – Consumer to Business
 G 2 B – Government to Business
 B 2 B – Business to Business

33. ADVANTAGES:
•
•
•
•
•
•
•
•
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Convenience – 24 Χ 7
Information
Fewer hassles
Quick adjustments to market conditions
Lower cost
Relationship building
Audience sizing
Both small & large firms can effort it
No real limit on advertising space, information access and
retrieval is fast
• Any 1, at any place, ant time in the world can buy
• Shopping can be done privately.

34. CONDUCTING ONLINE MARKETING :
• Electronic presence
• Corporate website { company website }
• Marketing website

35. CHALLENGES OF ONLINE MARKETING:
• Limited consumer exposure & buying
• Skewed user demographics & psychographics
• Security
• Ethical concerns
• Confusion and clutter

36. MARKETING IN THE NEW MILLINIEUM:
• Rural markets raise high.
• Online marketing.
• More competition.
• Fittest will survive.
• Global competition.
• More consumer friendly.