FUNDAMENTALS OF MARKETING

BY:
BANITA SHRESTHA
CONTENTS

 Introduction
 Marketing Environment
 Marketing Information System
 Buyer Behavior
 Segmentation, Targeting & Positioning Strategies
 Product Decisions
 Pricing Decisions
 Distribution Decisions
 Promotion Decisions
UNIT – 1
Introduction

Meaning of Marketing:
- process of planning, executing, pricing,
promotion & distribution of goods to create
exchanges.
- satisfying consumers
- delivering values & building relationship
- art & science of satisfying needs
“ Marketing is a total system of business
activities designed to plan, price, promote
& distribute want satisfying goods ,
services and ideas to target market in
order to achieve organisational
objectives.”
- Stanton, Etzel & Walker
Core Concepts Of Marketing

 Needs, Wants & Demand

 Product or Service
 Value, Satisfaction & Expectations
 Exchange, Transactions & Transfer
 Market
EVOLUTION OF THE MARKETING
PHILOSOPHIES( Business Concepts /
Marketing Concepts)

Product Selling

Production Modern Marketing

Holistic Societal
1. The Production Concept
2. The Product Concept
3. The Selling Concept
4. the Modern Marketing Concept
5. The Societal Marketing Concept
6. The Holistic Marketing Concept
1. The Production Concept:
- oldest philosophy that guides
marketers.
- assumes that consumers will prefer
only widely available & affordable goods.
- whole effort is focused on mass
production & cost reduction.
- used for the expansion of the mkt.
Starting point Focus Means Ends
Profit Trough
Factory Mass Low Price Production
Production Mass Distribution Efficiency
2. The Product Concept:
- assumes that consumers will prefer
those goods that offers the most in quality,
performance & innovative features.
- emphasis is on quality assurance
- focused on excellence improved
products, new products.
Starting
Point Focus Means Ends

Product High quality Profit through

Factory
Quality Innovation High performance
Performance proucts
3. The Selling Concept:
- assumes that consumers do not purchase the
goods unless they are persuaded.
- management focuses on stimulating sales.
- various promotional tools are necessary to be
used .
- still used in the sales of unsought goods.
- its Philosophy is “ WE SELL WHAT WE MAKE.”
Starting
Point Focus Means Ends
Aggressive Profit through high sales
Factory Existing Selling volume
Products High promotion
4. The Modern Marketing Concept:
- based on four pillars: targeting,
integration,customer satisfaction& profitability.
- determines the needs & wants of the target mkt.
- its Philosophy is “ WE MAKE WHAT WE CAN
SELL.”
- its principles are : Target Market
Customer Oriented
Integrated Marketing
Profitability
Starting Point Focus Means Ends
Integrated Profit through
Target Consumer Marketing
Market Needs Customer
Satisfaction
5. The Societal Marketing Concept:
- emphasises the social reposibilities of
marketing.
- focuses on customer satisfaction &
societal well-being
- assumes that organisation should sense,
serve & satisfy individual wants for the
customers & society in the long run.
Starting Point Focus Means Ends

Protecting &
Market Social Profit through consumer &
Supporting
Needs Social well-being
Consumer
& social well-being
6. The Holistic Markereting Concept:
- recognises that “ Everything Matters” with
marketing.
- based on the development, design &
implementation of mkg. programs, processes &
activities.
- its components are: Integrated mkg.
Relationship mkg.
Internal mkg.
Socially responsible mkg.
Starting Point Focus Means Ends

Target All marketing Integrated marketing Goals

Market matters Relationship marketing, achievement
Internal marketing; social Through marketing
Marketing; Performance think
marketing
Meaning and Tasks of Marketing
Management

Meaning:
- process of planning, implementing &
controlling marketing activities or practices to
achieve the desired organisational goal.
- deals with planning, organising, directing &
controlling the mkg. Activities.
- also scanning envt. , analysing marketing
opportunities, designing marketing strategies
“ It is the process of planning and executing
the conception, pricing, promotion &
distribution of ideas, goods & services to
create exchanges that satisfy individual and
organisational goals.”
- American Marketing Association
( AMA)
Marketing Management Tasks

 Developing marketing strategy

 Connecting with customers
 Building strong brands
 Shaping the market offering
 Delivering value
 Creating long-term Growth
Marketing challenges of the 21st
Century & firm’s response to the
challenges

Intense competition
Increase in customer demands
Changing habits of consumers
Changing media habit
Creating consumer database
Brand Differentiation
Adoption of Relationship Marketing
Firm’s Response to the Challenges

 Adoption of Relationship Marketing

 Integrated Communication
 Innovative Culture
 Mass Customization
 Digital Marketing
Components of the Marketing Mix for
Products and Services

Meaning of Marketing Mix

- refers to the optimum combination of all marketing
elements.
- a mixture of 4Ps to ensure satisfaction of targeted
customers.
“ Marketing mix is the set of marketing tools that the
firm uses to pursue its marketing objectives in the
target market.”
- Philip Kotler.
Components of Marketing Mix

1. Product Mix
2. Price Mix
3. Place/ Physical Distribution Mix
4. Promotion Mix
1. Product Mix:
- Product is anything offered by the
marketer for customer’s satisfaction.
- includes physical goods,
services,idea,event,experience,person,place,
property etc.
 - product mix includes the following components-
product planning & devt.
- brand name
- design
- features
- variety
- quality
- packaging
- guarantee & warranty
2. Price Mix:
- value given to the product .
- expressed in monetary form
- amount of money paid by the consumers
for the ownership of a product.
- determined by analysing revenue & cost
properly
- often used as competitive tool
 - its components are as follows:
 Setting price level
 Discount
 Allowances
 Payment period
 Credit terms
 Formulation of pricing objectives
3. Place / Physical Distribution Mix:
- concerned with the activities that direct
the flow of goods & servicesfrom
manufacturer to consumers.
- creates time, place & possession utilities.
- it has two major aspects: Physical
distribution and Distribution channel
 - its components are as follows:
 Channels
 Coverage
 Assortments
 Locations
 Inventory
 Transportation
 Logistics
4. Promotion Mix:
- informing the customers about the
product.
- used to perform or persuade actual/
potential consumers
- facilitates exchanges by informing one or
more groups
- its components are: - Advertising
- Personal Selling
- Sales Promotion
- Publicity
- Public Relation
Expanded/ Supportive Components of
Marketing Mix

5. People Mix:
- people mix consists of 2 groups: service
personnel and customers
- service provider must deliver the right
product to customer
- his attitude, style, sense of responsibility
is very important.
6. Physical Evidence Mix:
- this is the environment in which the service is
delivered
- any tangible goods that facilitate the
performance & communication of the service.
- it includes : Entrance & Exit
Comfortable surroundings
Superior Décor
Reception Counter & Furnishing
7. Process Mix:
- refers to the procedures , mechanisms & flow of
activities by which a service is acquired.
- affects how a service is delivered to customers
- includes: Advances in Technology
Systems
Fast Response Times
Relationship Marketing

“ Relationship marketing is the process of

creating, maintaining & enhancing strong,
value-laden relationships with customers &
other stakeholders.”
Kotler & Armstrong
- process of building mutually satisfying long-
term relationship with key stakeholders and
profits will follow.
- focuses on establishing valuable relationship &
creating delivery network with them rather than
personal dealing.

- builds satisfied & loyal customers.

- its main objective is to continue long-term

delivery to the customers & measure their
satisffaction.
Relevance/ Importance of Relationship
Marketing

 Long term Relation

 Customer Satisfaction
 Loyal Customers
 Development of New Partnership
 Long-term Profit
 Identification of Strength & Weakness
 Development of new partnership:
- it involves the partnership marketing.
- under this, markets perform regular
functions for the mutual benefits of
customers & other stakeholders.
- marketers perform for the customer’s
satisfaction as a result there’s a devt. Of
business partnership.
 Long- term relation:
- its main aspect is to build up long-term
relations with customers,suppliers &
distributors.
- such marketing helps in building long-
term, reliable & effective relations with
stakeholders.
 Customer satisfaction:
- it can be delivered through relationship marketing.
- all activities are focused on satisfaction of target
mkt.
- for this, all the personnel should be motivated &
trained.
- its major focus is on delivering better value to the
customers than offered by competitors.
 Loyal customers:
- this marketing focuses on building
economic, technological, social relation with
the related parties.
- it involves a long- term process of
building satisfied & loyal customers.
- builds loyal customers rather than
immediate selling of goods & services.
 Long – term profit:
- helps to earn long-term profit.
- involves interaction with different
stakeholders for solving the problem .
- long –term partnership is developed
through customer satisfaction & in result it
increases sales volume & long-term profit.
Practices of Relationship Marketing

 Basic marketing
 Reactive marketing
 Accountable marketing
 Proactive marketing
 Partnership marketing
Green Marketing

Concept
 a business practice i.e, environmentally responsible
 Concerned with environmental preservation
 Also known as Environmental Marketing, Ecological
Marketing, Sustainable Marketing, Organic
Marketing
 Highlights the superior environmental protection
characteristics of a company’s product & services.
Definition:
“ Green Marketing is the marketing of products that are
presumed to be environmentally safe.”
- AMA
“ It consists of all activities designed to generate &
facilitate any exchanges intended to satisfy human
needs or wants such that the satisfaction of these
needs 7 wants occurs, with minimal harmful impact
on the natural envt.”
- Grundey & Zaharia
Reasons for Adopting Green Marketing

 To enjoy opportunities or competitive

advantage
 To fulfill corporate social responsibilities
 To follow govt. pressures
 To avoid & minimise competitive pressure
 To maintain cost or profit
Relevance/ Importance/Impacts of
Green Marketing

 People are insisting pure products- edible

items, fruits & vegetables based on organic
farming.
 Reducing use of plastics & plastic based
products.
 Increased consumption of herbal products.
 Increasing use of bio- fertilizers instead of
chemical fertilizers & minimum use pesticides
 Recommending use of leaves instead of plastic
pieces; jute & cloth bags instead of plastic
carrying bags.
 Worldwide efforts to recycle wastes of
consumer & industrial products.
 Increased use of herbal medicines, natural
therapy & yoga.
 Strict provisions to protect forests, flora & fauna.
 More emphasis on social & environmental
accountability of producers.
 Declaration of 5th June as the World
Environment Day.
 Strict legal provisions for restricting
duplication or adulteration.
E-Marketing

Concept:
- process of doing marketing electronically or
over internet.
- integration of communications, data
management & security capabilities that
allows the organisations to exchange
information on sale of goods & services.
- doing marketing electronically.
 - benefits consumers by providing them convenience,
speed, cost, customisation, personalisation &
communities.
Features
 Individual communication
 Channel of direct marketing
 Online selling
 Enhance promotion
 Good relationship
 Need of electronic device
Relevance/ Importance of E-Marketing

Direct Marketing
Cost effective ( ommission of middlemen)
Marketing mix can be customised to meet the
needs of individual customer.
Information can be easily gathered &
automatically recorded for market research.
Any time,any place marketing possible.
Business to business marketing is growing.