105 Basics of

Marketing

MBA SEM-I
 Unit 1: Introduction to Marketing:

– Definition & Functions of Marketing- Scope of Marketing, Evolution of Marketing, Core

concepts of marketing – Need, Want, Demand, Customer Value, Exchange, Customer
Satisfaction, Customer Delight, Customer loyalty, Concepts of Markets, Marketing V/S
Market Competition, Key customer markets, market places, market spaces, Meta-markets,
Digital Markets, Brick & Click Model. Impact of Globalization, Technology and Social
Responsibility on Marketing. New Consumer Capabilities, New Company Capabilities.
Functions of Marketing Manager. Linkage of Marketing functions with all functions in
the organization.
– Company orientation towards market place: Product –Production - Sales – Marketing
–Societal – Relational, Holistic Marketing Orientation. Selling versus marketing. Concept
of Marketing Myopia. Marketing Process, Understanding Marketing as Creating,
Communicating, and Delivering Value(5+2)
Definition of Marketing

– According to Philip Kotler:

– “Marketing management is the analysis, planning, implementation and control of
programmes designed to bring about desired exchanges with target audiences for
the purpose of mutual or personal gain. It relies heavily on the adaptation and
coordination of project, price, promotion and place of achieving effective
response.”
– According to Stanton:
– “Marketing management is the marketing concept in action.”
– According to Cundiff and Still:
– “Marketing management is a branch of the broad area of management. It is
concerned with the direction of purposeful activities towards the attainments of
marketing goals.”
– According to Davar’s:
– “Marketing management is the process of ascertaining consumer needs,
converting them into products or services and moving the product or services to
the final consumers or users to satisfy needs and wants with emphasis on
profitability ensuring the optimum use of the resources available to the
organisation.”
Functions of Marketing

– Management is the processes of planning, organizing directing motivating and

coordinating and controlling of various activities of a firm.
– Marketing is the process of satisfying the needs and wants of the consumers.
Management of marketing activities is Marketing Management.
1. Buying & Assembling

Buying is first step in the process of marketing. It involves what to buy, what
quality, how much, from whom, when and at, what price. People in business buy to
increase sales or to decrease costs. Purchasing agents are much influenced by
quality, service and price. The products that the retailers buy for resale are
determined by the need and preferences of their customers.
Assembling:
After buying all the materials purchased it should be collected at a central place, it is
called assembling. Assembling is required for all kinds of products whether they are
agriculture product, consumer product of Industrial product.
2. Selling

It is second part of the exchange transaction. It is concerned with the

persuasion of prospective buyers to actually complete the purchase of an
article. Selling is important part in final aim of earning profit. Selling is
enhanced by means of personal selling, advertising, publicity and sales
promotion.
3. Transportation:

Transport is the physical means, whereby goods are moved from the place of
production to the place of consumption. It creates place utility. Transportation is
essential from the procurement of raw materials & for the delivery of finished
products to the customers’ places. Marketing relies mainly on road transport, rail
transport, waterways, pipelines and air transport. The type of transportation is
chosen on several considerations such as suitability, speed and cost.
4. Storage

It involves the holding of goods in proper condition after they are produced until
they are needed & demanded by consumers (in case of finished products) or by the
production department (in case of raw materials and stores). Storing protects the
goods from deterioration and helps in carrying over surplus for future consumption
or use in production. Goods may be stored in various warehouses situated at
different places. Storing assumes greater importance when production is seasonal or
consumption may be seasonal. Retail firms are called “stores”. Stores creates time
utility.
5. Standardization and Grading

– The other activities that facilitate marketing are standardization and grading.
Standardization means establishment of certain standards or specifications for
products based on intrinsic physical qualities of any commodity. This may
involved quantity (weight or size) or it may involve quality (colour, shape,
appearance, material, taste, sweetness etc). Government may also set some
standards e.g., Agmark - in case of agricultural & food products, ISI – for
products other than agriculture products, Hallmark is the standard for Gold &
jewelry. A standard conveys a uniformity of the products.
Grading:

“Grading means classification of standardized products into certain well defined

classes or groups.” It involves the division of products into clauses made up of unit
processing similar characteristics of size and quality. Grading is very important for
“raw material” (such as fruits and cereals), mining products” (such as coal, iron-ore
and manganese) and “forest products” (such as timber). Branded consumer products
may bear grade levels, – A B C.
6. Branding, Packaging & Labeling

“A brand is a name, symbol, term, design of any combination of these which is

used for popularizing the product & to identify the product of particular seller
“Packaging is the group of activities which involves, designing or producing the
container or wrapper for a product.”
“Labeling is affixing a small slip on the product, which gives information regarding
Name & address of the manufacturer, contents, price, batch number, manufacturing
and expiry date etc.”
7. Insurance:

Insurance is the process where one party (insurer) agrees for a sum of money
(premium) which is paid by second party (insured) pay the insured a specified sum
if he should suffer a particular loss.
A business is full of uncertainties & risk, so insurance is necessary for
mitigation of unforeseen losses.
8. Financing

It involves the use of capital to meet financial requirements of the agencies dealing
with various activities of marketing.
The services of providing the credit and money needed to meet the cost of getting
goods into the hands of the final consumer is commonly referred to as finance,
function in marketing.
In marketing, finances are needed for working capital and fixed capital, which may
be secured from three sources – owner capital, bank loans and advances, and trade
credit (provided by the manufactures to wholesaler and by the wholesaler to the
retailers).
9. Risk Taking

Risk means lose due to some unforeseen circumstances in future. Risk-bearing in

marketing refers to the financial risk inherent in the ownership of goods held for an
anticipated demand, including the possible losses due to a fall in price and the losses
from spoilage, depreciation, obsolescence, fire and floods or any other loss that may
occur with the passage of time.
From production of goods to its selling stage, many risks are involved due to
changes in market conditions, natural causes and human factors. Changes in
fashions or interventions also cause risks. Legislative measures of the government
may also cause risks.
10. Securing Market Information

The only sound foundation, on which marketing decisions may be based, is correct
and timely market information. Right facts and information reduce the aforesaid
risks and thereby result in cost reduction.
Business firms collects, analyze and interpret facts and information from internal
sources, such as records, sales people and findings of the market research
department. They also seek facts and information from external sources, such as
business publications, government reports and commercial research firms.
..

Retailers need to know about sources of supply and also about customers buying
motives and buying habits. Manufacturers need to know about retailers and about
advertising media. Firms in both these groups need information about competitors
activities and about their markets. Even ultimate consumers need
market information about availability of products, their quality standards, their
prices, and also about the after-sale service facility Common sources for consumers
are sales people, media advertisements, colleagues etc.
11. Advertising:

American Marketing Association has defined, “Advertising is any form of non personal
presentation and promotion of ideas, goods and services by an identified sponsor
– Explanation of Definition:
– 1. Any form: The advertising is any form of communication. It may be a
– symbol, sign or message in newspaper, magazines, on television, radio
– advertisement, outdoor advertising or direct mail; or new media such as
– websites and text messages.
..

– 2. Paid Form: It means advertising is a paid transaction.

– 3. Non-Personal Presentation: Advertising is not a personal selling & person to
person presentation but it is a non personal presentation i.e. advertising is
addressed to a mass audience.
– 4. Identified Sponsor: Sponsor is agency through which advertising is made.
– Examples: Print ads, radio, television, billboard, direct mail, brochures and
catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner,
ads, and emails.
12. Market Research:

According to American Marketing Association, “Marketing Research is the

function that links the consumer, customer and public to the marketer through
information-information used to identify and define marketing opportunities and
problems, generate, refine and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process.”
Market research is the collection and analysis of information about
consumers, competitors and the effectiveness of marketing programs.
In other words, market research allows businesses to make decisions that make them
more responsive to customers' needs and increase profits.
..

While market research is crucial for business start up, it's also essential for
established businesses. It's accurate information about customers and competitors
that allows the development of a successful marketing plan.
13. Marketing Management:

– Marketing management is “the art and science of choosing target markets and
building profitable relationships with them.” Creating, delivering and
communicating superior customer value is key. Marketing management is the
conscious effort to achieve desired exchange outcomes with target markets.
– The marketer’s basic skill lies in influencing the level, timing, and composition
of demand for a product, service, organization, place, person, idea, or some form
of information. Marketing Management is defined as the analysis, planning,
implementation, and control of programs designed to create, build, and maintain
beneficial exchanges with target buyers for the purpose of achieving
organizational objectives.
Scope of Marketing
– https://www.businessmanagementideas.com/marketing/scope-of-marketing-7-
major-scope-of-marketing/19727
Evolution of Marketing
Marketing Management and its
evolution:

1. Production Orientation Stage-(1860-19200

2. Sale Orientation Stage- (1920-1950)
3. Marketing Orientation Stage- (1950-1970)
4. Social Marketing Orientation Stage-(1970-1990)
5. Relationship Marketing Orientation Stage- (1990- )
Customer Value exchange

– A ‘value exchange’ between consumer and brand is one of the fundamentals of

modern marketing; the basic transaction of swapping rich data for better
experiences, as a means of facilitating commercial transactions and improving
connection and engagement. In fact, there are three stages that work together to
create a ‘value exchange’ between the brand and the customer.
– The trading of money for goods or services.
– The consumer sharing information in return for a reward.
– The promise and delivery of a better consumer experience.
https://logicalread.com/how-to-convert-customer-satisfaction-to-delight-and-w
in-customer-loyalty/
– Customer delight is achieved through a WOW effect, a level of satisfaction that
goes beyond expectation. In terms of market research, a satisfied customer’s
contentment lies somewhere between their expectations and the desired results.
A delighted customer, however, will feel that the desired results have not only
been met, but also exceeded.
– It’s very important to have a clear view of the two elements, as well as taking
into consideration a third one:
– Satisfaction: You did enough to satisfy an expectation;
– Delight: You went above and beyond to satisfy an unexpected desire;
– Loyalty: You satisfied them so much that they will prefer you over any
competitor.
– The fact that some customers might not make any complaints, or might continually purchase
a company’s products, gives sufficient reasoning to some companies to assume that these
customers are loyal. But this is not always the case. Sometimes it may just be out of habit or
pure convenience.
– However, as concluded by Berman and Blanchard, who have studied the differences
between satisfaction and delight, turning a satisfied customer into a delighted customer can
have tremendous benefits for the brand. Companies that have managed to delight customers
have essentially and effectively established a sense of loyalty. Various studies have shown a
strong correlation between customer retention and profits, growth rates and other measures
of market value.
 Concept of Market

– The concept of market is very important in marketing. The

American Marketing Association defines a market as the aggregate demand of
the potential buyers for a product/ service. ... Thus, a market is a group of buyers
and sellers interested in negotiating the terms of purchase/sale for goods/
services.
Competition

– Competition is the rivalry between companies selling similar products and

services with the goal of achieving revenue, profit, and market share growth.
Market competition motivates companies to increase sales volume by utilizing
the four components of the marketing mix, also referred to as the four P's.
Direct Competitors

– A direct competitor is “someone that offers the same products, with the same end game,”
Paul said. “They make money from the same thing you do.”
– A direct competitor is probably what most commonly comes to mind when you think of
the word “competition.” When I was a communications consultant, I used to work with
the competitive sales office of an IT company. They focused on direct competitors –
creating a win/loss report for every deal where the sales team went head-to-head against
other IT companies offering similar products and services.
– Spacely Games Example: In this case, the direct competitor is Zynga. They also make
games aimed at children, and seek to derive revenue directly from those games.
–
Indirect Competitors

– “Indirect competitors offer the same stuff but have a different goal,” Paul said.
“They don’t drive revenue the same way.”
– Here’s where content marketing can really have an impact. Essentially, a
company’s marketing can compete with your paid product, as we’ll see in the
example …
– Spacely Games Example: SuperPretzel is an indirect competitor of Spacely
Games. While it derives revenue from selling soft pretzels and not software, it
produces a free mobile game called “SuperPretzel Factory” as part of its content
marketing that children could choose to play instead of the paid offerings from
Spacely Games
Replacement Competitors
– “A replacement competitor is something someone could do instead of choose
your product,” Paul remarked. “But they’re using the same resources they
could have committed to your product.”
– These are the most challenging competitors to identify. However, we must
remember that our customers define our competition. After all, the competition
is simply the other choices they may choose to make. So we must interview
customers, listen to their social media conversations, and understand macro
trends to gain an understanding of what choices they are really making.
– Spacely Games Example: The Magic Tree House series of children’s books is a
replacement competitor for Spacely Games. Essentially, if children have a free
hour in their day, they can either decide to download a game or to read a book.
– Of course, I’m being a little idealistic assuming the average 8-year-old in 2012 is
really considering reading a book instead of playing a mobile game, but that’s
my end point. You have to be a bit of an anthropologist and really study your
customers to determine what they consider as replacement competition for your
products and services.
– So does an 8-year-old consider a book as competition for a mobile game? I’m
guessing no. However, does a major influencer on that purchase decision (in this
case, the parent) consider a book to be a replacement competitor? Well, this
parent certainly does.
Key customer markets,
– Markets Traditionally, a “market” was a physical place where buyers and sellers
gathered to buy and sell
goods.
– Economists describe a market as a collection of buyers and sellers who transact over a
particular product or product class (such as the housing market or the grain market).
– Manufacturers go to resource markets (raw material markets, labor markets, money
markets), buy resources and turn them into goods and services, and sell finished
products to intermediaries, who sell them to consumers.
– Consumers sell their labor and receive money with which they pay for goods and
services. The government collects tax revenues to buy goods from resource
– manufacturer, and intermediary markets are uses these goods and services to
provide public services. Each nation’s economy, and the global economy,
consists of interacting sets of markets linked through exchange processes.
– Marketers view sellers as the industry and use the term market to describe
customer groups. They talk about need markets (the diet-seeking market),
product markets (the shoe market), demographic markets (the “millennium”
youth market), geographic markets (the Chinese market), or voter markets, labor
markets, and donor markets.
– Figure 1.2 shows how sellers and buyers are connected by four flows. Sellers
send goods and services and communications such as ads and direct mail to the
market; in return they receive money and information such as customer attitudes
and sales data.
– The inner loop shows an exchange of money for goods and services; the outer
loop shows an exchange of information
Key Customer Markets Consider the following key customer markets:

consumer, business, global, and nonprofit .

– Consumer Markets Companies selling mass consumer goods and services such
as juices, cosmetics, athletic shoes, and air travel establish a strong brand image
by developing a superior product or service, ensuring its availability, and
backing it with engaging communications and reliable performance.
– Business Markets Companies selling business goods and services often face
well-informed professional buyers skilled at evaluating competitive offerings.
Advertising and Web sites can play a role, but the sales force, the price, and the
seller’s reputation may play a greater one.
– Global Markets Companies in the global marketplace navigate cultural,
language, legal, and political differences while deciding which countries to enter,
how to enter each (as exporter, licenser, joint venture partner, contract
manufacturer, or solo manufacturer), how to adapt product and service features
to each country, how to set prices, and how to communicate in different cultures.
– Nonprofit and Governmental Markets Companies selling to nonprofit
organizations with limited purchasing
power such as churches, universities, charitable organizations, and government
agencies need to price carefully. Much government purchasing requires bids;
buyers often focus on practical solutions and favor the lowest bid, other things
equal.
What is Marketplace?
– Marketplace is a physical location of buyer and seller interaction. At the
marketplace, the seller and buyer meet each other individually and share
information. Thereafter, negotiations take place and exchange of product or
service occurs. Examples of marketplace are retail stores, outlets, supermarkets,
etc. A marketplace would have a physical address and the buyers may routinely
visit a marketplace to have a look around of what’s in store.
– Also, at a given single marketplace, the number of buyers and sellers are limited
due to demographics factors, which relate to physical presence. For example,
Manchester city will most probably have only their residents as sellers and
buyers. Other city inhabitants such as that of London or Sheffield might not visit
Manchester for their purchasing requirements. So, the demand and supply factors
are decided by less number of people.
– In a marketplace, brand equity is created by manipulating the
content, context, and infrastructure, using the traditional marketing
mix. These three elements are usually interconnected and
inseparable if the buyer is to access the product or
service. Customer perceived value is a combination of product or
service, pricing, communication, and supply chain activity related
to the product or service. For example, a furniture is an aggregated
collection of content (raw material, product design), context
(organization, logo, style), and infrastructure (production plant,
physical distribution system). In order to create value to customers,
producers should aggregate all three into a single value proposition.
Customers cannot access the furniture without it interacting with
context and infrastructure.
What is Marketspace?

– At the marketspace, the traditional marketplace transaction is eliminated.

Marketspace can be defined as the information and communication technology
based electronic or online exchange environment. Physical boundaries do not
possess any interference for such transactions. The buyers and sellers interact
and transact in a virtual environment where direct physical communication is not
required. The sellers may exhibit their products on their own websites or
dedicated sales engines such as eBay® while buyers can perform a targeted
search query to find their relevant requirements.
– For an online selling platform, the numbers of buyers and sellers are not decided
by demographic factors as no any physical boundaries exist. The world itself
can sell and buy through a single platform. So, the demand and supply is decided
by a large number of people. If supply is limited, an auction will be an ideal
choice to fetch a higher price in the marketspace.
– In a marketspace environment, value creation and value proposition are
revolutionized. In the marketspace, the content, context, and the infrastructure
can be disaggregated to create new ways of value additions, lowering costs,
buildings relationships, and rethinking ownership. These three elements of
content, context, and infrastructure can be easily separated in a marketspace. For
example, the same furniture sold via eBay® has different content as large
number of sellers will be exhibiting their products (variety) while, context would
be that of eBay® itself such as prominent sellers listed prominently or allows
customizations. The infrastructure is not fully company owned; it also belongs to
customers such as PC, modem, and telephone also, eBay® infrastructure
facilitates the transaction. Here, though the transaction occurs at eBay®, the
delivery is the responsibility of the seller. Therefore, the value dynamics are
varied and can be managed in different ways.
What is the difference between
Marketspace and Marketplace?

– As we have now understood the two elements individually, we will compare the
two to find the differences in between them based on a variety of factors.
– Definition of Marketspace and Marketplace:
– Marketplace: Marketplace is a physical location where the buyer and seller
meet each other individually and share information.
– Marketspace: Marketspace is an information and communication technology
based electronic or online exchange environment where the buyers and sellers
interact and transact in a virtual environment.
Characteristics of a Marketspace and a Marketplace:

– Physical Presence
– Marketplace: The marketplace has a physical location, physical buyers, and physical
sellers. The transaction occurs by direct negotiations.
– Marketspace: The marketspace is not required to have a physical location nor physical
buyers or sellers. All are electronic based on information and technology infrastructure.
– Cost / Investment
– Marketplace: At the marketplace, the cost can be marginally higher due to the
infrastructure and possibility of less number of customers. Spending on buildings,
maintenance, and staff would incur overheads into the product pricing.
– Marketspace: At the marketspace, the cost can be lowered by ingenious ways of
thinking by reducing the overheads, shared ownership (infrastructure owned by
different parties of the transaction), online money transfer, etc.
– Supply & Demand
– Marketplace: At the marketplace, the supply and demand are decided by less number of
people as it’s limited to a locality of a city or a country. Even if the seller identifies a supply
inadequacy, the response or the price he can collect will be limited due to the less number of
buyers.
– Marketspace: At the marketspace, the supply and demand are decided by a more number of
buyers, and sometimes, in a global scale. So, if the seller senses supply inadequacy, an online
auction would be preferred choice to capture the highest possible rate.
– Value Creation
– Marketplace: At the marketplace, the content, context, and infrastructure are aggregated and
inseparable to have a transaction. Brand equity and value proposition is based on the total of
these factors.
– Marketspace: At the marketspace, the content, context, and infrastructure can be separated and
can become the basis for perceived customer value.
– We have attempted to understand the terms marketplace and marketspace in this article
followed by a comparison to find the key elements differentiating them in between. The basic
difference is the physical elements and value creation modes.
Meta Markets
– The combination of an intangible market such as the internet, promoting closely
related tangible or intangible products is known as a Meta market. For
understanding meta markets lets first outline two definitions.
– Market Places – Markets of physical goods and products is known as Market
places. The market places has presence of companies which manufacture their
own products.
– Market space – The online market space with websites such
as Ebay, Amazon and others is known as Market spaces. These sites do not have
offline products. They only sell others products online.
– Meta Markets – An online website such as the Maruti suzuki website for second
hand cars which promotes the purchase of physical goods (Maruti suzuki cars) is
known as a meta market. Lets take a look at the automobile industry. Whatever
company it may be, an automobile company would involve suppliers, channels,
service providers so and so forth. Thus the meta market will bring all these
buyers and sellers online in one place for one purpose only. Rather than giving
multiple products to one customer, the meta market brings together different
customers of the same product.
– It can also be said that the combination of various entities within the same
industry can be known as a meta market. The meta markets are on the rise
because of the increase in accessibility of internet on both computers as well as
smart phones. Almost every individual in urban areas have access to the
computer and the internet. There are plans being made by the Indian government
to have an internet outlet in every 2 Km of India thus making internet available
to even the rural population.
– The meta market helps facilitate the movement of physical goods through online
medium. Take an example of 99acres.com – a real estate portal. It brings
together buyers and sellers or real estate. Yatra.com brings together the travelers
and the travel providers. Shaadi.com brings the marriage service providers
and the groom/brides family together. So on and so forth. Thus both Yatra.com
and 99acres.com are meta markets for real estate and travelers respectively.
– The factor contributing most to meta markets is the convenience of users.
Nowadays you can make purchases in one click. However, what if instead of
going on ebay or amazon which offer tons of different options, you want to go
for the website which is specific to your niche itself? That’s a meta market.
What is a Brick and Click Store?

– It's a business model used by merchants to operate both an online store and a
physical retail outlet. In other terms, the retailers give their customers both an online
and offline channel to do their shopping. If we look that the current trends, it's
justifiable to say that the e-commerce industry is tremendously gaining traction. On
the other hand, it has been a must priority for most retailers to have physical
premises. This explains why most retailers take steps to sync the two together.
– Making your store visible via a website is quite useful in a number of ways. And here's
the most puzzling question. Is a Brick and Click store worth it? This actively rides on
the customers' behavior. You need to look at their shopping preferences. A much
bigger pointer to be put into consideration is the retailer's niche.
– Not long ago, small retailers were troubled by their giant counterparts. It's
undeniable how the likes of Walmart and Amazon take the bigger share of the
cake. Many thanks to the prevalence of 3rd party E-commerce platforms which
sort of try to neutralize the imbalance. As it stands, a physical store owner can
now make the most out of the online space.
– And here's how.
– What the e-commerce platforms do is let you customize a beautiful online store
which gives you a golden opportunity to sell your products in multiple places. In
actual fact, a business owner gains access to social media, online marketplaces,
web, mobile, as well as pop-up shops.
– In spite of that, there's a crowd of customers who prefer making a purchase
from a physical shop across the streets in the neighborhood or even inside a
mall. Taking note of the two prospects, it's pretty much essential to have a Brick
and Click store in check. And it doesn't end here.
– There's more to it.
– https://ecommerce-platforms.com/glossary/brick-click-store
Impact of Globalization, Technology and Social
Responsibility on Marketing

– The Impact of Globalization on Marketing

– Widened horizon, narrowed focus
– Increased globalisation allows businesses to have a greater impact on their
product or message. Globalisation has broadened the horizons of B2B
marketing by breaking down the borders between countries and extending the
reach to foreign clientele. Access to mass markets can lead to increased sales
for businesses, while consumers can benefit from full product variety and
competitive pricing.
Competition

– As markets and audiences expand due to globalization, so does the

competition. This increase of competition makes it even more important for
your product to stand out. Consumers are aware of the many options they
have, and the means for searching for the best product are becoming even
more targeted—making it easy for consumers to sift through less relevant
brands. For example, making your permanent labor certification ads stand out
amongst competition would mean getting your message to the right people in a
quick and direct way, while also being creative and unique.
– Technology
– It’s difficult to talk about globalization and not mention technology. Technology
allows for the instantaneous exchange of information across the world. The
development of new and improved ways to market products also means
additional cost for companies to have the most up-to-date software. In order to
stay relevant, businesses need to be strategic in their approach to technology
and how to use it cost-effectively.
– Efficiency
– The ease of exchanging information by way of the internet gives companies the
opportunity to be more efficient than ever—both internally and externally. The
ability to be efficient also means that consumers expect this efficiency from the
companies they interact with. Globalization is also impacting the type of work
people do. In many cases, traditional labor jobs are now being replaced with
advanced technology that can get the job done quickly and consistently.
– Remote Hiring
– A strong benefit to globalization is the evolution of the traditional workplace.
Employers now have the ability to hire staff who work remotely—meaning
saved cost on office space and increased diversity. Hiring staff from other
backgrounds and locations allows companies to broaden their perspective as
they can acquire a team with diverse insights.
– Tourism
– Globalization is especially impactful if your company is in the business of
tourism. Traveling, studying, and living abroad have increased substantially due
to the globalized market. Tourism and travel industries have seen a significant
benefit because of accessibility.
– Globalization is inevitable. And, as with most things, it has both positive and
negative impacts on marketing. Understanding the impact that globalization has
is the first step in using it to better your business.
Impact of social responsibility on
marketing
– Enlightened Marketing
– The philosophy of enlightened marketing is a concept that falls under the umbrella of
socially responsible marketing. Enlightened marketing states that “a company’s
marketing should support the best long-run performance of the marketing system.
This concept contains the five principles: consumer-oriented marketing, innovative
marketing, value marketing, sense-of-mission marketing and societal marketing.[1]
– In consumer-oriented marketing, the company “organizes its marketing activities
from the consumer's point of view.” Marketing activities focus on the needs of a
defined user set.[1]
– Innovative marketing states that a company must continue to improve its products
and marketing efforts, recognizing that if it doesn’t, it risks losing business to a
competitor that does.
– The principle of value marketing contends that a company "should put most of
its resources into value-building marketing investments." One criticism of
marketing its short term focus in the sense of promotions and minor
improvements. Value marketing seeks to create long term customer loyalty by
adding significant value to the consumer offer.[1]
– Sense-of-mission marketing suggests a company mission be defined in "broad
social terms" as opposed to "narrow product terms." This technique frames the
business goal in a way that the organization can rally behind a deeper sense of
purpose.[1] Millennials have become cautious of their brand choices as they are
getting affected by socially responsible marketing. They prefer associating with
brands that are honest, environmentally conscious, ethical, and working
towards the betterment of the society. The rise of TOMS to a $400 million
company is a case in point.
New consumer capabilities

– A substantial increase in buying power:

– A greater variety of available goods and services:
– A great amount of information about practically anything:
– A greater ease in interacting and placing and receiving orders:
– An ability to compare notes on products and services:
– Marketplaces, Market spaces and Meta markets:
Functions of Marketing Manager
– Work with top management
– The main function of marketing manager is to work with top management. He is
to assist the top management in determining the marketing plans and policies
so that all the problems of the process of planning may be removed and sound
plans and policies may be formulated.
– Supervise and coordinate business activities
– A marketing manager has to establish effective co-ordination among the
business activities of purchase, sale, packing, storage, transportation,
advertisement, sales promotion, after sale-services, etc.
– Identify Potential Markets
– To create and increase the demand of the goods and services produced by the
enterprise, the marketing manager has to identify new potential markets and
also has to maintain the relationships among the existing markets for their
enterprise and its products.
– Evaluate the Product
– In the technological arena, the needs and demands of the customers changes
time to time. Thus, it becomes necessary for the marketing manager to study all
these changes and evaluate the product periodically so that necessary
modifications and alterations may be made in the product.
– Launch new product or services
– To attract new customers and retain old customers, marketing manager study
needs and demands of the market. According to it, he launches new goods and
services to satisfy the existing customers and to attract new customers (or
consumers).
– Select the Channels of Distribution
– The physical distribution of goods and services through many channels viz.
wholesalers, retailers, etc. is decided by the marketing manager. As per the
needs of the firm, he selects the specific channel and supplies the finished
products from producers to consumers.
– Create a market plan
– According to the marketing nature of the firm, the marketing manager creates
an action plan to determine when, how, where and by whom the marketing
activities viz. sales forecast, advertisement, sales promotion, distribution of
products, etc. should be carried out to achieve marketing goals.
– Study the Economic and Political Environment
– To survive and get success in the business, the marketing manager not only has
to study the economic, social and the political environment of the business
enterprise but also has to follow the government rules and regulations, social
norms and cultural values, regional treaties and global alignment, economic
rules and tax policies of the government. After analyzing all these factors, he
formulates the business strategies for the customer satisfaction and profit
maximization of the enterprise.
– Thus, we can say, business organization is a dynamic entity because it operates
in the dynamic business environment.
– https://www.gktoday.in/gk/functions-and-responsibilities-of-marketing-manag
er/
What is Selling?
– The selling theory believes that if companies and customers are dropped detached,
then the customers are not going to purchase enough commodities produced by the
enterprise. The notion can be employed argumentatively, in the case of commodities
are not solicited, i.e. the commodities which the consumer don’t think of buying and
when the enterprise is functioning at more than 100% capacity, the company intends at
selling what they manufacture, but not what the market requires.
– It the sales process, a salesperson sells whatever products the production department
has produced. The sales method is aggressive, and customer’s genuine needs and
satisfaction is taken for granted.
What is Marketing?
– The marketing theory is a business plan, which affirms that the enterprise’s
profit lies in growing more efficient than the opponents, in manufacturing,
producing and imparting exceptional consumer value to the target marketplace.
– Marketing is a comprehensive and important activity of a company. The task
generally comprises of recognising consumer needs, meeting up that need and
end in customer’s feedback. In between activities such as production,
packaging, pricing, promotion, distribution and then the selling will take place.
Consumer needs are of high priority and act as a driving force behind all these
actions. Their main focus is a long run of business ending up with profits.
– It depends upon 4 elements, i.e. integrated marketing, target market,
profitability customer and needs. The idea starts with the particular market,
emphasises on consumer requirements, regulates activities that impact
consumers and draws gain by serving consumers.
Top 8 Difference Between Selling and
Marketing
Selling Marketing
Definition
The selling theory believes that if companies The marketing theory is a business plan,
and customers are dropped detached, then which affirms that the enterprise’s profit lies
the customers are not going to purchase in growing more efficient than the opponents,
enough commodities produced by the in manufacturing, producing and imparting
enterprise. The notion can be employed exceptional consumer value to the target
argumentatively, in the case of commodities marketplace.
are not solicited.

Related to
Constraining customer’s perception of Leading commodities and services towards
commodities and services. the consumer’s perception.
 Beginning point

Factory Marketplace

Concentrates on

Product Consumer needs

Perspective

Inside out Outside in

Business Planning

Short term Long term

Orientation

Volume Profit

Cost Price

Cost of Production Market ascertained

5 Different Types of Selling

– Aggressive Selling- In this type, the only intention of a salesperson is to sell the product in one
shot.
– Consultative Selling-This type of selling believes in building trust with their customers. A sales
representative main object is not selling the product but building a relationship with their
client.
– Need Oriented Selling-Here, a seller has to perform a smart job by observing the movements
and words of a customer. Under this form, a sales representative notice the customer
accurately by asking different questions and concluding the customer needs.
– Product-Oriented Selling-This method of selling is based on product features and benefits;
the salesperson explains everything about the product until the customer is completely
satisfied. Providing demos are part of this selling process.
– Competition Oriented Selling-Under, this form of sales representative, believe in staying one
step ahead of the competition. They believe in convincing the customers to purchase the
product and never accept a no for an answer.
5 Different Types of Marketing
– Relationship Marketing-This kind of marketing focuses on building a relationship with
the customer, improving existing relationships, and enhancing customer loyalty.
– Word of Mouth-It is the most powerful type of marketing approach. It completely
depends on what impact you leave on the customers with the quality of product and
services. The customers who have opted for the service or bought a product will
promote it on behalf of the company to their friends, colleagues, and neighbours, etc.,
only if they are satisfied. If they are not impressed, then that can result in negative
publicity.
– Digital Marketing-It normally appears over the internet. All the marketing details are
given on the internet and promoted on multiple platforms via various approaches.
– Paid Advertising-It incorporates traditional marketing approaches like TV ads, radio,
and print media advertising.
– Cause Marketing-This approach associates the products and services of a firm to a
social cause or issue. Therefore, It is known as cause-related marketing.
Examples of Selling

– Few examples of selling are:

– Business-to-Business Sales
– Door-to-Door Sales
– Cold Calling
– Personal selling
Examples of Marketing

– Few examples of marketing are:

– Cold Calling
– Newsletters
– Search Engine Marketing
– Meeting customers at Trade shows
– Product placement in Entertainment platform (video games)
Company Orientation towards the
marketplace:

– As the market has changed, so has the way the company deals with the
marketplace. The company orientation towards marketplace deals with the
concepts which a company may apply while targeting a market. There are
basically five different orientations which a company takes towards the
marketplace
– Production Concept – In this concept the company mainly tries to increase
production irrespective of demands of the customer. The production concept is
almost extinct now with companies paying more and more attention to the
customer. Read more about The Production concept.
– The concept is mainly based on the principle that, “as the productivity levels
increase, cost of production decreases, and as a result, customer will be able to
purchase a product at a cheaper rate, which in turn accelerates the sales of the
company.”
– Selling concept – The selling concept believes that customers will not
buy products unless persuaded to do so. As we know, this is true even today in
case of certain products such as insurance. Although the customer should use it,
they rarely do.
– Product Concept – The product concept says that customers will always buy
products which are better in terms of quality performance and features. The
concept is especially applicable in terms of electronics and other techno
gadgets nowadays.
– https://www.marketing91.com/company-orientation-marketplace/
– For a product to be successful under this concept, it should stand apart from
the rest of the crowd. Let’s take Apple and Google for example. The end
products of these companies are not only of the best quality, but are also very
exclusive. Hence, companies willing to adapt ‘product concept’ marketing
strategy should not only keep themselves updated with the ever changing
technical trends, but also the needs of their customers
– Marketing Concept – Just like selling is a necessity, similarly branding and
marketing are a necessity in some products. The marketing concept proposes
that the success of a firm depends on the marketing efforts of the company in
delivering a value proposition. Read more about The Marketing Concept.
– For a company to achieve its sales target, a great marketing strategy coupled
with a proper branding are absolutely important. Marketing concept thus
indicates that for a company and its product to be successful, it needs to
approach the customers with a value proposition and to deliver the same
without fail.
– Societal Marketing Concept – The societal marketing concept leads to a
company orientation which believes in giving back to the society what it had
received from the society. This concept believes that the company is profiting
because of society and hence it should also take measures to make sure the
society also benefits from the company. Read more about the Societal
Marketing Concept.
– If a company has benefited from the society, it should reciprocate the same by
striving towards benefiting the society. This is one of the fastest
growing marketing concepts which is quite capable of creating an indelible
impression in the minds of customers, and along the way, help itself create an
unparalleled brand image.
– The company orientation towards the market place thus depends on the
application of the above 5 concepts. Some of these concepts are not applicable
in todays market whereas others are applicable sector by sector.
What Is Holistic Marketing?

– Holistic marketing is a business marketing philosophy which considers business

and all its parts as one single entity and gives a shared purpose to every activity
and person related to that business.
– A business is just like a human body: it has different parts, but it’s only able to
function properly when all those parts work together towards the same
objective. Holistic marketing concept enforces this interrelatedness and
believes that a broad and integrated perspective is essential to attain best
results.
This philosophy has the following
features:
– A Common Goal
– Holistic marketing concept believes that the business and all its parts should
focus towards one single goal which is a great customer experience.
– Aligned Activities
– All of the services, processes, communication and other business activities
should be directed towards that common goal.
– Integrated Activities
– All activities should be designed and integrated in such a way so as to create a
unified, consistent and seamless customer experience.
Components Of Holistic Marketing

– Holistic marketing focuses on marketing strategies designed to market the brand to

every person related to it, be it employees, existing customers or potential customers,
and communicating it in a unified manner while keeping in mind the societal
responsibility of the business.
– Relationship Marketing
– The relationship marketing aspect of holistic marketing philosophy focuses on a
long-term customer relationship and engagement rather than short-term goals like
customer acquisition and individual sales. This strategy focuses on targeting marketing
activities on existing customers to create a strong, emotional, and everlasting
customer connections. These connections further help the business in getting
repeated sales, free word of mouth marketing and more leads.
– Integrated marketing is an approach to create a unified and seamless
experience for the consumer to interact with the brand by designing and
directing all communication (advertising, sales promotion, direct marketing,
public relations, and digital marketing) in such a way so that all work together
as a unified force and centres around a strong and focused brand image.
Internal Marketing

– There are two types of customers to every business: internal and external. While
focusing on external customers should be a top priority for every business, internal
customers should not be left unnoticed as these internal customers (employees) play
a vital role in marketing the brand and products to the external customers of the
business.
– Internal Marketing treats employees and staffs as internal customers who must be
convinced of a company’s vision and worth just as aggressively as external customers.
It also involves crafting processes which make them understand their role in the
marketing process.
–
Socially Responsible Marketing
– The socially responsible marketing aspect of the holistic marketing concept
involves a broader concern of the society at large. It requires the business to
follow certain business ethics and focuses on partnerships with philanthropic
and community organisations. A business is considered as a part of the society
and is required to repay the same.
– Socially responsible marketing encourage a positive impact on company’s
stakeholders.
Why Is Holistic Marketing Important?

– Brand Building
– According to a study, intangible assets made up 84% of the S&P 500 market
value in 2015 as compared to 1975 where they made up only 17% of the S&P
500 market value.
– The customers’ mindset is changing. They believe in buying a brand and not the
product alone. Holistic marketing empowers the company to build a
brand among all its stakeholders.
– Consistency
– Consistency is important to stay in the market for long. Since holistic marketing
concept involves marketing the brand to all the stakeholders and through
unified communication strategies, consistency is maintained.
– Efficiency
– When every aspect of the business is taken care of, it becomes easier to reduce
(and even eliminate) repetition, become more efficient, and save company’s
time and money. The efficiency can also be seen in tapping opportunities and
spotting potential threats.
– Effectiveness
– Holistic marketing philosophy, by focusing on the big picture, creates a synergy
that effectively reinforces the brand message, brand image, and positions the
brand uniquely in the minds of the customers.
What is marketing myopia?

– Marketing myopia is a situation when a company has a

narrow-minded marketing approach and it focuses
mainly on only one aspect out of many possible
marketing attributes.
– For example, a brand focusing on development of
high-quality products for a customer base that disregard
quality and only focuses on the price is a classic example
of marketing myopia.
 When Does Marketing Myopia Strike
In?
Marketing myopia strikes in when the short term marketing
goals are given more importance than the long term goals.
Some examples being:
– More focus on selling rather than building relationships
with the customers
– Predicting growth without conducting proper research.
– Mass production without knowing the demand.
– Giving importance to just one aspect of the marketing
attributes without focusing on what customer actually
wants
– Not changing with the dynamic consumer environment
Self-Deceiving Cycle

– Growth is never assured. The business environment is everchanging and so

should be a business. Businesses that don’t asses their own capabilities,
competitors, customers’ needs, and changing trends, always tend to get
trapped in a self-deceiving cycle.
– Conditions That Lead To The Self-Deceiving Cycle
– A belief that growth of the business is guaranteed by growth in population.
– The belief that there is no competitive substitute for the company’s product
– Supply creates its own demand, hence mass production.
– Overestimation of product’s qualities without conducting scientific research.
Step-Child Treatment

– Businesses often treat their product as their own child and customers’ needs as
a stepchild. This result in spending most of the resources in the development of
their product and the remaining (less or no) resources on conducting research
and marketing. This backfires on the businesses as the stepchild always turn out
to be the Cinderella of the story.
Examples Of Marketing Myopia

– Here are some companies that are suffering from or have suffered from
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).
Marketing Myopia In Future

– Dry cleaners – New types of fiber and chemicals will result in less demand for
dry cleaners.
– Grocery stores – A shift to the digital lifestyle will make grocery stores to
disappear.
Marketing Process: 5 Steps of
Marketing Process

– Marketing is how companies create value for customers and build strong
customer relationships to capture value from customers in return. 5 step
process of the marketing framework wherein value is created for customers and
marketers capture value from customers in return.
– Understanding The Marketplace And Customer Needs And Wants.
– Designing A Customer-Driven Marketing Strategy.
– Constructing an integrated marketing plan that delivers superior value.
– Build Profitable Relationships.
– Capturing Value From Customers.
– Step 1: Understanding The Marketplace And Customer Needs And Wants
– It is important to understand customer needs, wants, and demands to build want-
satisfying market offerings and building value-laden customer relationships. This
increases long-term customer equity for the firm
– Needs – States of felt deprivation
– They include the physical need for necessities like food, clothing, shelter, warmth,
safety, and individual needs for knowledge and self-expression. The marketers cannot
create these needs as they are a basic part of human markup.
– Wants – The forms of human needs take as shaped by culture and individual
personality.
– Wants are shaped by one’s society and are described in terms of objects that will
satisfy needs.
– For example, an American in Dhaka needs food but wants McDonald’s.
– Demands – Human wants that are backed by buying power.
– Given their wants and resources, people demand products with benefits that add to
the most value and satisfaction.
Step 2: Designing A Customer-Driven
Marketing Strategy

– Focus areas for designing a marketing strategy:

– Selecting customers to serve -defining the target market
– Deciding how to serve customers in the best way – choosing a value proposition
– Selecting customers to serve:
– The company first decides who it will serve and divides the market into
segments of the customer. Then it goes after specific sections of the market or
its target market.
– They target customers based on their level, timing, and nature of demand.
– Choosing a value proposition
– They decide how it will serve their customer. That is how it will differentiate and
position itself in the market. A brand’s value proposition is the set of values and
benefits that it promises to deliver its customers.
– Companies need to design strong value propositions to give them the greatest
advantage in their target markets.
5 alternative concepts for designing a customer-driven
marketing strategy are;
– Production concept: Consumers will favor products that are available and highly affordable.
Management should focus on improving production and distribution efficiency.
– Product concept: Consumers will favor products that offer the most quality, performance, and
innovative features. Focus on making continuous product improvements.
– Selling concept: Consumers will not buy enough of the firm’s products unless it undertakes a
large-scale selling and promotion effort. It is typically practiced with unsought goods that the
company needs to sell and generally results in aggressive selling practices. The company sells
what it makes rather than what the market wants.
– Marketing concept: Organizational goals are achieved by knowing the target markets’ needs
and wants and delivering the desired satisfactions better than competitors do.
– Societal concept: Marketing strategy should deliver value to customers in such a way that
improves both customers as wells as society’s well being and long-run interests.
Step 3: Constructing an integrated marketing
plan that delivers superior value

– The company’s marketing strategy outlines which customers the company will
serve and how it will create value. Then the marketer develops integrated
marketing plans that will the intended value to target customers.
– It consists of the firm’s marketing mix (4Ps), the set of marketing tools the firm
uses to implement its marketing strategy.
– The marketing program builds customer relationships by transforming the
marketing strategy into action.
– For this, it needs to blend all of these marketing tools into a comprehensive,
integrated marketing program that communicates and delivers the customers’
expected value.
Step 4: Build Profitable Relationships

– Customer relationship management is the overall process of building and

maintaining profitable customer relationships by delivering superior customer
value and satisfaction.
– Customer relationship management aims to produce high customer equity, the
total combined customer lifetime values of all of its customers.
– The key to building lasting relationships is the creation of superior customer
value and satisfaction.
– Companies today want to acquire profitable relationships and build
relationships that will increase their share of the customer portion of the
customers purchasing that a company gets in its product categories.
Step 5: Capturing Value From
Customers
– Customer relationship management’s ultimate aim is to produce high Customer equity
– total combined lifetime values of all of the company’s current and potential
customers.
– The more loyal to the company’s profitable customers, the higher are the customer
equity. Customer equity may even be a better way to measure its performance than
market share or current sales.
– Marketers cannot create customer value and build customer relationships by
themselves. They need to work closely with other company departments and with
partners outside the firm.
– In addition to being good at customer relationship management, they also need to be
good at partner relationship management.
– Final Words Managing Marketing Process
– The last step of the marketing process is arranging resources necessary to carry out
the marketing plan, putting the plan in action, and exerting control.
– For the implementation of the marketing plan, the firm needs to build a marketing
organization.
– This type of organization consists of many specialists responsible for carrying out
marketing research, advertising, product development, customer service, etc.
– Such an organization calls for setting up a department called the marketing
department headed up by a Vice-President/Director/GM. He usually performs three
types of tasks.
– First, he coordinates activities performed by different personnel in the
marketing department.
– Second, he must closely work with other key personnel charged with other
responsibilities, such as personnel, finance, etc.
– Third, he must perform several operative and technical functions as selecting,
training, directing, motivating, and evaluating his department’s personnel for
better performance by each of them.
– When the plan is implemented, management must make sure that everything is
going fine. He can ensure this by receiving feedback and taking corrective action
if necessary, i.e., controlling.
Assignment No1.
DOS: 12th March 2021

– Q1. Explain linkage of Marketing functions with all functions in the organization
with suitable example (choose any type of organization). 10M
– Q2. Explain the importance of market places, market spaces and Meta-markets
with suitable example. 10M
– Q3. Explain how marketing process for services industry and production
industry differs. 10M