PRINCIPLES OF MARKETING As per New Revised NEP Syllabus of [Link] (BH) and [Link] Courses of University of Delhi and other Central Universities in India Prof. (Dr.) Ruchi Gupta Professor Department of Commerce Shaheed Bhagat Singh College, University of Delhi. Er. Jayakar Sodagiri Assistant Professor Department of Commerce Shaheed Bhagat Singh College, University of Delhi. Trevose Tech PressAll Rights Reserved : No part of this book, including its style and reproduced: stored in a retrieval system, or transmitted in pis form or bea may electronic, mechanical, photo-copying, recording or otherwise without the prior iether of the author. pain Warning : The doing of an unauthorised act in relation to a coy civil claim for damages and criminal prosecution, Special Note : Photocopy or Xeroxing of educational books without the writt : publisher is illegal and against Copyright Act. ‘en permission of General : While every effort has been made to present authentic information and the author and the publisher are not responsible for the consequences of any ae errors, the basis of this book. fakenag Limits of Liability/Disclaimer of Warranty : The publisher and the author make n, representation or warranties with respect to the accuracy or completeness ofthe conte gs this work and specially disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotions] material. The advice and strategies contained herein may not be suitable for every situation, This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If professional assistance is required, the services. of, a competent professional person should be sought. Neither the publisher nor the author shall be liable for damages arising here from. The pics used in the book are copyright free and/or have been given proper attribution. PYtight work may result in both SCHOLAR “Tech Press An Imprint of MKM PUBLISHERS Pvt. Ltd. New Delhi . Sales Office : MKM Publishers Pvt. Ltd. 4782, 23 Darya Ganj, New Delhi-110002 Phones : 011- 40224951, Mob: 9810153571 . © Authors . First Edition : 2023 Second Revised Edition : 2024 . Printed in India at : Nice Printing Press Sahibabad, Ghaziabad, UP.: ACKNOWLEDGEMENTS Writing a book requires support and encouragement from a lot of people. We shall be failing in our duty if we do not thank all these people. First and foremost, we are grateful to our family and friends, who, near or far, in their small and big ways, have shown their faith in us and encouraged us to reach newer heights. We are indebted to our teachers and professors, especially Prof. D.P.S. Verma, Prof. S.K. Jain, Prof. Ajay Kumar Singh, Prof. Kavita Sharma, Prof. Ritu Sapra and Prof. Amit Kumar Singh, for their guidance and support. We would also like to thank Mr. Jayant Shah, Executive Director, Academy of Indian Marketing, for constantly inspiring us. Our sincere thanks to the entire team of our publisher, Scholar Tech Press, especially to Mr. Atul Malik and the creative staff for giving a wonderful design and shape to the book. Caselets, Marketing Insights and in-text examples form an integral part of the book. These cases and insights are intuitive illustrations of essential marketing concepts that bridge the physical and digital divide with the help of QR codes. You can scan and visualize the concepts with the help of the same. We thank the QR code generators for making this handy. We also wish to express our heartfelt thanks and gratitude to the Principal, our dear colleagues and the entire administrative staff at Shaheed Bhagat Singh College, University of Delhi, for their constant support. Above all, we thank the Almighty God for his blessings. We hope that the book will be a good read for all those for whom it is intended. feren carte fora ferry afd Tara WReTETaia wed Ta: GEA PROF. (DR.) RUCHI GUPTA ER. JAYAKAR SODAGIRIER PREFACE ‘The book ‘Principles of Marketing’ has been written keeping in view the National Educat Policy (NEP), 2020, syllabus of [Link]. (Hons.) and [Link]. courses of University of Delhi a other Central Universities of India. The following are the highlights of the book. = Full coverage of the prescribed syllabus. = Simple and lucid language for easy understanding. = Various examples from the marketing world to relate theory to practice. = Opening caselets in every chapter. Some of these include the cases on Lenskart, Colgate, Jio Prime, Tupperware, Mamaearth, Reliance Digital, Whisper, and more, © Extensive use of ‘Marketing Insights’ to give detailed examples of marketing practices in the real world. Some of these include Sustainability initiatives of Wow Skin Science, Festivals as a fart of Socio-Cultural Environment, Promotional Campaign of ‘Barbie Movie, Impact of Technological Environment on the Marketing Decisions of the Firms, Omnichannel Retail Strategies of Lenskart, IMC Campaign of Airtel “Har Ek Friend Zaroori Hota Hai”, Sustainability initiatives by retail clothing chain ZARA, how the ‘shower’ ad by Hindustan Unilever Ltd. urges people to save water, how AR Mirrors in Tommy Hilfiger stores create experiences for customers, how Starbucks creates unique customer experiences and fosters customer loyalty, how Coke creates Consumer Experience through QR Code on its Label, and many more. * Questions are given at the end of each chapter to give students an opportunity to test their understanding of the topic. Since the book has many recent Indian cases, marketing insights and in-text examples, students will be able to develop a connect with the world of marketing. The book has been written keeping in mind the curriculum requirements from academic Perspective as well as intended at true knowledge addition for students. Suggestions are welcome so as to make necessary improvements in the subsequent editions of the book. PROR (DR.) RUCHI GUPTA ER. JAYAKAR SODAGIRI email: [Link]@[Link] email j ayakar.s13@mibdu.oSYLLABUS DISCIPLINE SPECIFIC COURSE- 3.3(DSC-3.3): PRINCIPLES OF MARKETING [Link](HONS.) Unit 1: Introduction to Marketing and Marketing Environment (9 hours) Introduction to Marke ting: Scope and Importance; Core concepts of marketing; Marketing Philosophies; Services Marketing, Marketing Mix. Marketing Environment: Need for studying marketing environment; Micro environmental factors- company, suppliers, marketing intermediaries, customers, competitors, publics; Macro environmental factors - demographic, economic, natural, technological, politico-legal and socio- cultural. Unit 2: Consumer Behaviour and Market Selection (9 hours) Consumer Behaviour: Need for studying consumer Behaviour; Stages in Consumer buying decision process; Factors influencing consumer buying decisions. Market Selection: Choosing market value through STP. Market Segmentation- bases of segmenting consumer markets. Market Targeting, Product Positioning - concept and bases Unit 3: Product Decisions and New Product Development (9 hours) Product Decisions: Concept and classification; Levels of Product. Designing value: Product- mix, Branding- types, significance, and qualities of good brand name; Packaging and Labelling- types and functions; Product support services. New Product Development: New product development process; Product life cycle - concept and marketing strategies. Unit 4: Pricing Decisions and Distribution Decisions (9 hours) Pricing Decisions: Objectives, Factors affecting price of a product, Pricing methods, Pricing strategies. Distribution Decisions: Delivering Value: Channels of distribution- types and functions; Wholesaling and retailing; Factors affecting choice of distribution channel; Logistics decisions. Unit 5: Promotion Decisions and Developments in Marketing (9 hours) Promotion Decisions: Communicating Value: Communication process; Importance of Promotion. Promotion-mix tools advertising, personal selling, sales promotion, public relations, publicity and direct marketing; Integrated Marketing Communication.Developments in Marketing: Sustainable Marketing- concept and issues. Rural market characteristics and rural marketing mix. Social marketing- concept and issues, Digit, marketing- concepts and tools. igital . r = : ‘The learners are required to: 1. Analyse the marketing environment of any firm of your choice. 2. Prepare a marketing mix for a product of your choice to be targeted to a rural market. 3. Select any product and analyse its segmentation strategy in comparison to its immediate competitive product. 4. Examine the marketing strategies followed by companies to prolong the maturity stage and defer its decline. $ 5. Suggest an appropriate distribution strategy of a product of your choice. 6. Draft promotion mix strategy for a hypothetical e-commerce firm.SYLLABUS DISCIPLINE SPECIFIC COURSE- 3.3(DSC-3.3): PRINCIPLES OF MARKETING [Link] Unit-1: Introduction to Marketing and Marketing Environment (9 hours) Introduction to Marketing: Meaning, Scope and Importance; Marketing Philosophies; Marketing Mix for goods and services. Marketing Environment: Need for studying marketing environment; Micro environmental factors- company, suppliers, marketing intermediaries, customers, competitors, publics; Macro environmental factors - demographic, economic, natural, technological, politico-legal and socio- cultural, Unit-2: Consumer Behaviour and Market Selection (9 hours) Consumer Behaviour: Need for studying consumer behaviour; Stages in Consumer buying decision process; Factors influencing consumer buying decisions. Market Selection: Market Segmentation: Concept and Bases. Market Targeting, Product Positioning - concept and bases. Unit-3; Product Decisions and New Product Development (9 hours) Product Decisions: Concept and classification; Levels of Product. Product mix; Branding- concept, types, significance, qualities of good brand name; Packaging and Labeling-types and functions; Product support service; New product development process; Product life cycle - concept and marketing strategies. Unit-4: Pricing Decisions and Distribution Decisions (9 hours) Pricing Decisions: Objectives, Factors affecting price of a product; Pricing methods and strategies. Distribution Decisions: Channels of distribution- types and functions. Factors affecting choice of distribution channel; Distribution logistics decisions. Unit-5: Promotion Decisions and Developments in Marketing (9 hours) Promotion Decisions: Communication process; Importance of Promotion. Promotion mix tools: Distinctive characteristics of advertising, personal selling, sales promotion, public relations, and direct marketing.Developments in Marketing: Sustainable Marketing, Rural marketing, Digital marketing - an overview. ERE TS CTT Social market coreg ‘The learners are required to: L 2 Submit a report on any one marketing aspect of an organisation/group/cell/society/uniy ‘department operating in your College/Institute. : ‘Choose any company engaged in sustainable marketing and prepare a presentation of the analysis of its marketing mix. Propose changes to enhance its marketing mix. Describe and analyse the STP strategy of a multinational company of your choice. With reference to the concept of levels of a product examine the ‘marketing strategy of any ‘company which has customized the augmented product and has gained customer satisfaction, Visit two bank branches (one being a public sector and the other being an international bank branch) and meet the PRO/ manager or a suitable staff member. Outline the key elements of the marketing strategy pursued by the branch managers and compare the implementation of the same. Prepare a report about these observations with a critical analysis of the same.Introduction to Marketing 1.1 - 1.40 + Terms Used 2 + Nature/Features of Marketing 4 + Scope of Marketing (Functions of Marketing) 13 + Importance of Marketing 16 + Marketing Philosophies/Marketing Concepts 21 + Difference between Marketing and Selling Concept 27 + Ethical Issues in Marketing 34 + Concluding Note 39 * Questions for Discussion 39 Marketing Mix 21 - 2.19 + Meaning 2 + Elements of Marketing Mix 3 + Determining the Marketing Mix 7. + Marketing Mix is a Dynamic Concept 7 + Packaging: The Sth P of Marketing 8 + Marketing Mix in Case of Service Industries: 7ps 10 + Services Marketing 15 + Meaning of Services 15 + Characteristics of Services 16 + Concluding Note 19 * Questions for Discussion 19 Marketing Environment 3.1 - 3.27 + Micro Environment 2 + Company 3 + Suppliers 3 + Marketing Intermediaries 3 + Customers 4+ Competition : + Publics : + Macro Environment i + Demographic Environment : + Economic Environment : + Technological Environment : + Politico-Legal Environment : + Socio-Cultural Environment 8 + Natural Environment 2 + Need and Importance of Environmental Scanning a + Concluding Note % + Questions for Discussion % Consumer Behaviour 41 - 4.26 + Definitions of Consumer Behaviour 2 + Need for Studying Consumer Behaviour 2 + Buying Roles of Consumers 5 + Stages in Consumer Buying Decision Process * Cognitive Dissonance + Factors Influencing Consumer's Buying Decisions i + Concluding Note % * Questions for Discussion : Market Segmentation 51-58 + Meaning of Market Segmentation ‘ + Need for Market Segmentation : + Requirements of Effective Segmentation ’ + Bases for Segmenting Consumer Markets ' * Geographic Segmentation : + Demographic Segmentation t + Psychographic Segmentation : + Behavioural Bases of Segmentation i + Benefit Segmentation : 5 + Occasion Segmentation + Usage Rate Segmentation+ Loyalty Segmentation 19 + Market Segmentation Strategies 20 + Factors Affecting the Choice of Segmentation Strategy 24 + The Concept of STP ~ Segmentation, Targeting, and Positioning 25 + Targeting - Identifying Target Markets 26 + Positioning 28 + Bases of Product Positioning 29 + Concluding Note 31 + Questions for Discussion 32 Product Decisions 6.1 - 6.39 + Product - The Concept 2 + Levels of a Product 5 + Classification of Products 8 + Product Decisions i + Basic Product Decisions 11 + Product Mix 12 + Branding 7 + Characteristics of a Good Brand Name 19 + Individual Brand Name Vs. Family Brand Name Strategy 21 + Advantages of Branding 23 + Packaging 26 + Role and Importance of Packaging in Marketing 27 + Labelling 32 + Functions of Labelling 33 + Types of Labels 35 + Product Support Services 36 + Concluding Note 39 + Questions for Discussion 39 Product Life Cycle and New Product Development 7.1-7.18 + Product Life Cycle 2 + Factors Affecting PLC 9 + Limitations of the PLC Concept 9 + New Product Development 13+ Why Do New Products Fail? + Concluding Note « Questions for Discussion Pricing Decisions + Importance of Pricing Decision + Pricing Objectives «Factors Affecting Price of a Product + Price Setting In Actual Practice « Cost-Based Pricing Vs. Value-Based Pricing « Pricing Strategies + Cost-Plus Pricing (Mark-Up Pricing) « Break-Even Analysis + Differential Pricing/Price Discrimination + Perceived Value Pricing + Going Rate Pricing + Tender Pricing + Psychological Pricing Strategy + Loss Leader Pricing + Product Line Pricing + Geographical Pricing + Pricing a New Product + Resale Price Maintenance + Discounts and Allowances + Concluding Note * Questions for Discussion Channels of Distribution and Distribution Logistics + Factors Affecting the Choice of Distribution Channels Functions of Middlemen in a Distribution Channel + Types of Middlemen + Wholesalers + Retailers + Hlimination of Middlemen10. + Intensity of Distribution + Channel Conflicts + Channel Integration + Distribution Logistics/Market Logistics + Distribution Logistics Decisions + Order Processing + Warehousing «Inventory Management + Transportation + Significance of Distribution Logistics Decisions + Concluding Note + Questions for Discussion Retailing + Store Based Retailing + Non-Store Based Retailing + Changing Scenario of Retailing in India + Retailing in the Evolving Digital Era + Concluding Note * Questions for Discussion . Promotion Decisions and Integrated Marketing Communications + Communication Process + Integrated Marketing Communications (IMC) + Factors that have Led to the Growth of Integrated Marketing Communications + Promotion - An Important Element of the Marketing Mix + Push and Pull Strategy of Promotion + Factors Affecting Promotion Mix * Concluding Note * Questions for Discussion - Tools of Promotion + Advertising * Significance of Advertising Criticism of Advertising 18 20 22 25 25 26 27 28 30 32 = 33 10.1 - 10.23 3 9 12 18 22 23 11.1 - 11.19 2 6 10 12.1 - 12.28 2 2 6Advertising Objectives Advertising Media Personal Selling Advantages of Personal Selling Qualities of a Good Salesperson What Knowledge Should a Salesperson Possess Buying Motives Personal Selling Process Differences between Advertising and Personal Selling Sales Promotion Tools of Sales Promotion Publicity Public Relations Direct Marketing Concluding Note Questions for Discussion 13. Developments in Marketing Digital Marketing Sustainable Marketing Rural Marketing Social Marketing Relationship Marketing, Concluding Note Questions for Discussion Question PapersChapter 1 Introduction to Marketing _—— ee ee ee CASELET - MITTICOOL -'SOUL OF THE SOIL' This is a story about commitment, passion, and tenacity. The eco-friendly and inexpensive “MittiCool” refrigerator was created by Mansukhbhai Prajapati, who gave India a cooling system that can be used without power. Mansukhbhai has come a long way from pedalling an old bicycle through rural areas, selling handmade clay pots and pans, to creating Mitticool Private Limited, a company with an annual turnover of Rs. 5-10 crore (Source: [Link] [Link]/) Due to the distinctiveness of his products and the fact that he was operating in rural areas, Mansukhbhai Prajapati encountered a number of challenges. There was little knowledge of the clay products. It was! challenging to persuade customers about the superiority of clay products | jp MittiCool Clay over more well-known substitutes. Targeted marketing was Ee Refrigerator 50 liter necessary to demonstrate how traditional clay can be creative, | ™*: is effective, and environmentally friendly. There was a preference for contemporary goods in the semi-urban areas. The challenge was getting beyond this prejudice and showing how useful clay Products are in urban settings. Due to the fragile nature of the goods and the requirement for specialized packaging to prevent damage during transit, distributing clay items across regions Presented logistical issues. Clay items must be priced strategically to balance perceived value and cost in order to remain competitive without sacrificing their artisanal quality and sustainability. Image Source: [Link]/product/mitticool-clay-refrigerator50-liter/ Moreover, it was difficult to promote a cultural shift in favour of clay items over traditional alternatives without gradually altering consumer behaviour. At this point Mansukhbhai Prajapati attempted to understand and apply the basics ofmarketing ‘[Link] a result, his brand, MittiCool, now operates in 63+ cities, 9+ states (including in remote areas like Ernakulam and Thrissur in Kerala and Bengaluru in Karnataka) with 200+ channels 204 90+ awards won (as on July, 2023). To read more about the brand, scan this QR Code.12 Principles of Markey, hy Image Source: [Link] Marketing is a dynamic and multifaceted discipline that plays an important role in today's business landscape. It encompasses a broad range of activities aimed at creating, communicating, delivering, and exchanging value for products or services. At its core, marketing is about understanding customers’ needs and wants, and strategically positioning offerings to meet those demands effectively. In a rapidly evolving marketplace, successful marketing requires a deep understanding of consumer behaviour, market trends, and competitive landscapes. It involves conducting thorough market research, segmenting target audiences, and developing compelling value propositions to differentiate products or services from competitors. Furthermore, marketing involves designing persuasive messages and selecting appropriate communication channels to reach and engage the intended audience. This can encompass traditional advertising, social media, public relations, and more. Effective marketing campaigns aim to build brand awareness, foster customer loyalty, and ultimately drive profitable customer actions. Additionally, in today’s digital age, technology has revolutionized marketing by offering innovative tools and platforms to reach global audiences. As such, marketers must stay up to date with the latest trends and leverage data-driven insights to make informed decisions and achieve measurable results. Let us understand a few terms that we are going to use throughout the course, before we go on to explain the nature of marketing. TERMS USED Needs and Wants Needs and wants are fundamental concepts in marketing that help understand consumer behaviour and drive purchase decisions. According to Kotler and Keller, “Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment. These needs become wants whet they are directed to specific objects that might satisfy the need” For instance, an America? needs food and wants ahamburger. A person may feel the need for recreation and entertainment and may want to watch his favourite series on Netflix. Thus, needs are the basic, essential human requirements for survival and well-being. The) include necessities such as food, water, shelter and clothing Additionally, needs also encompas>Introduction to Marketing 3 higher-level needs like recreation, education, social interaction, and entertainment. These needs are inherent to human existence and are not influenced by external factors. On the other hand, wants arise when specific objects or products are sought to satisfy those needs. Wants are shaped by personal preferences, cultural influences, social factors, and individual desires. In the example given, the need for food can translate into a want for a hamburger, as it represents a specific object that can fulfil the need for nourishment. Similarly, the need for recreation and entertainment can result ina want to watch a popular series on Nettlix. Understanding the distinction between needs and wants is essential for marketers. They need to identify and align their products or services with the wants of their target market, as satisfying those wants ultimately leads to the fulfilment of underlying needs. By understanding consumer needs and wants, marketers can create and communicate value propositions that resonate with their target audience, triggering desire and driving purchase decisions. Marketing “Marketing is the performance of those business activities that direct the flow of goods and services from producer to consumer or user” —American Marketing Association Marketing is defined as ‘the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return? —Philip Kotler The ultimate goal of marketing is to create mutually beneficial exchanges where companies offer products or services that satisfy customer needs and wants, and customers willingly provide value in return. The process of marketing involves several interconnected activities. First, it entails understanding customer needs, desires, and preferences through market research and analysis. By gaining insights about customer behaviour and market trends, companies can identify opportunities and develop offerings that align with customer expectations. Once customer needs are understood, marketing involves creating and communicating value propositions. Companies must develop compelling messages that highlight the benefits and unique qualities of their products or services, positioning them as the best solutions to fulfil customer needs. Effective communication channels and strategies are employed to reach and engage the target audience. Building strong customer relationships is a central aspect of marketing. By providing excellent customer experiences, addressing customer concerns, and fostering positive interactions, companies can cultivate customer loyalty and retention. Additionally, marketing involves ongoing customer engagement and relationship management through activities such as personalized communication, loyalty programs, and customer feedback analysis. Ultimately, successful marketing results in the creation of customer value and satisfaction, which in turn leads to positive word-of-mouth, customer loyalty and repeat purchases. Market “A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want” —Philip Kotler14 Principles of Marky Thus, a market refers to the set of actual and potential buyers of a product who have willingness and the capacity to satisfy a particular need or a want. Consider, a factory wor and a CEO of a company, both wanting to buy a Mercedes car. The factory worker ha, willingness to buy but may not have the capacity (purchasing power to buy the prody, ° thus, will not constitute the market for the product (Mercedes car). The CEO, on the hand, has the willingness and the capacity to buy the product, and thus, is a part of the atl for Mercedes car. The concept of a market goes beyond a physical place or a specific group of people,j encompasses all the potential customers who share a common need or want and have th willingness and ability to engage in an exchange to satisfy that need or want. A market i characterized by the presence of both actual buyers who have already made a purchase anj potential buyers who may be interested in making a purchase in the future. Understanding the market is crucial for businesses as it allows them to identify and target their potential customers effectively. By analysing the characteristics, needs, preferences, and purchasing power of the market, companies can tailor their marketing strategies, produc offerings, pricing, and distribution channels to align with the specific requirements and demands of the target market. Marketing Management “Marketing management is the process of planning and executing the conception, pricing Promotion and distribution of ideas, goods and services to create exchanges that sa individual and organisational goals” —American Marketing Association The planning function involves setting clear marketing objectives and developing strategies to achieve them. This includes conducting market research to understand customer preferences, analysing competition, and identifying market trends. Marketing managers use this information to formulate comprehensive strategies that determine target markets, product Positioning, and differentiation. They also decide on product offerings, pricing strategies, Promotion tactics, and distribution channels. Planning also involves allocating resources effectively and creating a timeline for implementation. Once the merketing plan is in place, the execution function comes into play. This involves translating the strategies and decisions outlined in the plan into actionable steps. Marketing teams create and implement campaigns, design advertisements, develop content, and leverage various channels such as social media, traditional media, and online platforms to reach the target audience. Coordination among team members is crucial to ensure a consistent and cohesive message across all touchpoints. Monitoring progress is also a part of the execution function, allowing managers to track the performance of campaigns, assess theif effectiveness, and make necessary adjustments in real-time. NATURE/FEATURES OF MARKETING “1, Marketing is Consumer- oriented: Customer orientation is an important feature ! marketing that aims at un y derstanding and meeting the needs of customers. By aligningIntroduction to Marketing Aa marketing efforts with customer preferences, businesses can develop products and services that resonate with their target audience. Customer orientation emphasizes putting the customer at the centre of all marketing efforts and aligning the company’s strategies and activities accordingly. This customer-centric approach is crucial for building strong relationships, enhancing customer satisfaction, and ultimately driving business success. A company that adopts customer orientation recognizes that different customers have unique needs, preferences and requirements. By tailoring its product offerings to individual customer segments, the company can provide more value and enhance the overall customer experience. For instance, Sensodyne came out with a toothpaste that has been specially designed for people who have a sensitivity problem in their teeth (a segment whose needs were not being met before) and claims to provide relief from sensitivity in 60 seconds. (Image Source: [Link] relief-ad/) Another example of customer orientation in marketing is the implementation of personalized marketing communications. By understanding customer preferences, behaviours, and demographics, companies can tailor their marketing messages to individual customers or specific target segments. This allows them to create more relevant and engaging experiences, leading to increased customer engagement and loyalty. An example of this is customised product recommendations made by the e-commerce sites. On the basis of the shopping history of the consumer, the e-commerce sites suggest specific product recommendations to consumers and these recommendations are unique/personalised for every consumer and is, therefore, different for every consumer, SS ee a} HANDPICKED FOR YOU aun uoon munassoon (200 em e100 nee Image Source: [Link]» Principles of Market, (Note that this becomes possible because of artificial intelligence technology that is able, understand the likings of every customers ~ products liked, preferred colours, prefer time of shopping, ete based on their shopping history, products in their shopping cay browsinghistory etc). The same principle applies for Netflix recommendations toits viewer Marketing Starts and Ends with the Customer: Marketing is a comprehensive proces, that revolves around understanding and satisfying customer needs and desires. It begin, with the customer and ends with the customer, as every aspect of marketing aims tg connect with, engage, and deliver value to the target audience. Marketing revolves around the customer from start to finish. It begins with understanding their needs, designing offerings to meet those needs, and crafting compelling messages to engage them. It continues by fostering relationships, actively listening to feedback, and adapting strategies accordingly. The end goal is to create customer value, satisfaction, and loyalty, ensuring a mutually beneficial relationship between the customer and the brand. Marketing Precedes and Succeeds Production: Marketing activities start far ahead of production and continue even after the product is ready. The producers first ascertain what the consumers want and then produce goods according to the needs of the consumers. There is a systematic effort to sell goods and services through suitable outlets and distribution channels, at reasonable prices. Thus, marketing plays a vital role in both the pre-production and post-production stages of a product. Let us understand this in detail here. Before producing a product or service, marketers conduct extensive market research to understand consumer needs, preferences, and market dynamics. This research helps identify potential demand, target audiences, and competitive landscape, etc. Marketing insights obtained from market research contribute to the development and refinement of the product or service. Marketers collaborate with product managers and designers to align the product's features, design, and functionality with the identified consumer needs and desires. Marketing continues after production to promote the product and communicate its value proposition to the target audience. Through advertising, content marketing, social media campaigns, influencer collaborations, and other promotional activities, marketers aim to increase brand awareness, generate leads, and drive sales. Marketing also involves collaborating with intermediaries to ensure effective distribution and availability of the product. This includes determining distribution channels, managing relationships with retailers and distributors, and implementing sales strategies to maximize product reach and accessibility. Marketing also plays a crucial role in engaging customers post-purchase to build loyalty and log-term relationship with them. Activities such as customer support, loyalty programs, and gathering feedback contribute to customer satisfaction and help drive repeat purchases. Pecan be cence as well as an Art: Any body of knowledge that has systematised ly of knowledge that can be taught and learnt in classrooms is a science. This bodyIntroduction to Marketing co of knowledge may consist of theories, principles and practices that relate to that particular discipline. Marketing is a science as it has a systematic body of knowledge that is in existence. It has certain theories, principles, practices, case studies etc. that can be taught and learnt by budding marketers for efficient performance and in strategic thinking while formulating marketing plans for an organisation. Marketing is also an art as it involves practical application of the knowledge learnt into practice. Every marketing manager may have his/her own unique way of applying knowledge to action. Art is a creative expression of oneself, and thus, when marketing managers design marketing strategies according to their own creative capabilities, aligning with their values and thought process, marketing emerges as an art in true sense. For instance, two marketing managers may have learnt the same marketing lessons going to a common school. However, while designing promotional strategy, one may want to use a popular celebrity to endorse the brand as he might think that this will get more attention of the consumers while the other may want to use a catchy jingle in the ad to attract attention. Thus, marketing is both a science as well as an art. 5. Marketing is a Profession: Marketing is an important profession and a lot of people get their employment due to a lot of job opportunities existing in the field of marketing. Marketing has emerged as a very popular career in recent times. Professionals and experts in the area of marketing enjoy a high premium in the job market. Professional marketers are expected to conduct themselves with integrity, transparency, and fairness in their interactions with customers, stakeholders, and the general public. With marketing evolving as a result of integration of technology with the marketing strategies, the creative talent in this industry has no dearth of opportunities available in the market, Even the young professionals in the industry are doing some great work as they are experimenting with how technology can be used in various areas of marketing, creating experiences for the consumers in i Himanshu Goel e3. 1<: Bene Weve Cg Fe ral here , eteborananess One of the young 7 Beep marketing professionals Bee f eae A 0 Tint rotenone, in India, Himanshu 2 ao, Goel, has created India’s first virtual influencer ‘Kyra. Kyra has an Instagram account and is already doing some paid Partnerships with big Image Source: [Link] /tigshid brands. To see Kyra’s =MTc4MmM1YmI12Ng%3D%3D Paid partnership withPrinciples of Market ‘American Tourister in an Instagram reel, scan this QR Code. Exchange Process is the Essence of Marketing: The exchange process is considered the essence of marketing because it lies at the core of every marketing transaction, Marketing revolves around creating, facilitating, and enhancing exchanges between buyers and sellers. Marketing recognizes that successful exchanges should benefit both parties involved—the buyer and the seller. Buyers seek products or services that fulf) their needs and desires, while sellers aim to generate revenue and achieve their marketi objectives. Through effective marketing strategies, the exchange process seeks to align these interests and create a mutually beneficial transaction. . Marketing is Goal-oriented: Marketing is indeed a goal-oriented discipline, as its primary purpose is to achieve specific objectives and drive desired outcomes for a business or organization. These goals can vary depending on the organization's overall strategy and may include increasing sales, expanding market share, enhancing brand awareness, generating leads, improving customer retention, or launching a new product. These goals can vary depending on the organization, industry, and marketing campaign. These goals provide direction and focus for marketing efforts, allowing businesses to measure their success and effectiveness of the marketing campaigns. For instance, if the objective of marketing is to create brand awareness and induce brand trial of a new brand of coloured contact lenses, marketing activities may consist of sponsorship of college festivals (place where you will find your target market), on- ground activities like free trials in shopping malls and college fests, promotion on Instagram as sponsored posts or reels made by a fashion influencer (as figures on [Link] reveal that young consumers are most active on Instagram as compared to other social media platforms). To take another example, during the COVID lockdown in 2020, the demand for online Virat Kohli & Anushka Sharma’ [UWE on Unacasemy Dreams Hard Werkand dr neamiesone Image Source: [Link] ?utm_source=ig_embe: [Link]/p/B_MrpZSiDK/ -d8cutm_campaign=loadingtroduction to Marketing in courses saw a surge. In order to create awareness and encourage enrolment, education technology company, Unacademy roped in celebrities such as Virat Kohli, Anushka Sharma and Shashi Tharoor to conduct live classes on the official website. These celebrities shared the post for the classes on their Instagram and Twitter pages, which helped to attract a sizable audience for their live sessions. (Note in the picture that Virat Kohl’s Instagram post received more than 10 lakh likes). Virat Kohli and Anushka Sharma's live session was attended by more than 50,000 students. Additionally, Shashi Tharoor's three live classes were a great success, drawing more than 30,000 learners to each session. Other goals of a marketing campaign can be brand building, meeting competition, increasing the market share, etc. To take other examples, the objective of a promotional campaign of a tourist place is to attract tourists to the place (example, “Kushboo Gujarat Ki” campaign), and the goal of a political marketing campaign is to win the votes of the voters. Scan the following QR codes to see soe of the ads of the popular campaign “Kushboo Gujarat Ki”. Kuch Din to Guzaaro GUJARAT mein. — = Khushbo Gogarat ki Image Source: [Link] advertisement-campaigns/ 8. Marketing is Creative: Marketing is often referred to as creative because it involves the process of developing innovative strategies and tactics to promote products, services, or ideas to a target audience. Creativity plays a crucial role in marketing as it allows businesses to stand out from competitors, capture attention, and engage with their customers in meaningful ways. Be it designing of products, creating brand mascots, designing product packages, creating jingles for the ad, use of engaging storylines in advertisements or even creating memes around some trending ads, all come out of the creative hats of the marketers. Consider the following marketing campaigns - Amul's creative illustration on the110 Principles of Marty. | ackage of Amul butter (inspired by the movie “Kabhi Khushi Kabhi Gam’), Cor Papal campaign ‘Indiranagar ka Gunda Hoon Main’ featuring Rahul Dravid (jn : avatar never seen before) for its creative storyline, Zomato’s interesting take on a same and the popular jingle (another example of creativity) of Airtel’s ‘Har Ek Frig. Zaroori Hota Hai’ campaign. Scan the QR Codes to see these examples of CTeativig, SLL biooe Be er Pa) be Kabhi bread 1 ET yatta) ae Image Source: hitps://[Link]/content/amul-girls-50th-birthday-look-wittiest-quips, [Link] INDIRANAGAR ey. TT LB Image Source: bttps:// [Link]/pulse/fy20cred-spent-rs727-earn-rupee-saish- waingankar deliveries in be = Jndienagar miight be late today due to Amage Source: bttps:!/ wwwhindustanti gunda-ad-creates-confusion-« '[Link]/trending/zomatos-post-on-rahul-dravid-s- ‘company-clarifies-101618037388137,htmlIntroduction to Marketing in har friend zaroori Prete Te eters Coes Image Source: [Link] In the present digital age, with social media having a lot of prominence and digital content consumption of people going up, creativity in marketing has started embracing new avenues. For example, a fitness apparel brand might publish blog articles with workout tips and nutrition advice to establish itself as an authority in the fitness industry. The brand may also sign a fitness influencer to develop content and post reels on Instagram and other social media handles for promoting the brand. Celebrity influencers who have a right fit the brand may also be used. sal your Tweet tee Ua sreane sherecancrjbeone rang - 7 me (ess 3 RWITH is aly Image Source: [Link] [Link]/top-8-indian-fitness-influencers-that-will-motivate- you-to-hit-the-gym-right-now/ erin f Vt Lol) WORKOUT _ With STAR Laletabealaedes Image Source: [Link] celebrities-and-announces-cult-live-masterclass-masterclasses-conducted-with-mandira-bedi yyasmin-karachiwala-and-padma-vibhushan-mary-kom/Li2 Principles of Creating innovative, immersive experiences for the consumers, especially With coming of augmented reality (AR) and virtual reality (VR), are also creative Stra that help a marketer connect with customers in a unique way. To see an example of mirrors installed in Tommy Hilfiger stores, scan this QR Code. Image Source: [Link] Oapp_the-future-is-here-introducing 2er010s- activity-704497883 1899668480-E65i?utm_source=share&utm_ medium=member_android 9. Marketing is a Process (managerial process, social process and dynamic process: Marketing is a managerial process as involves performing of managerial functions o planning and controlling. Marketing is also an important functional area of ‘management | Marketing is also a social process as it deals with people, that is, the customers. One ol the primary objectives of marketing is to satisfy customer needs. Marketing is considered a social process because it involves interactions and exchanges between individuals and groups within a society. Marketing also has the power to shape and influence societal norms, values, and behaviours. Many of the social marketing campaigns aim to breaking the old-age taboos and stereotypes existing in the society. For instance, Ariel’s “Share the Load” campaign challenged the notion that ‘household chores’ is only the domain of women and urged men to take an equal role in housework Particularly when it comes to doing the laundry. Scan these QR Codes to see some of the ads in this series. Curent] WNTIntroduction to Marketing nel Also, scan this QR code to see this Geeta Phogat ad by JSW Steel to see how it intends to break the stereotypes related to women existing in the Indian society. The voice-over in the ad depicts the traditional stereotypes that exist in the society and the visuals of the ad depict entirely the opposite of what is being said (trying to break the stereotype thinking). Marketing is also a dynamic process as it is important to keep changing/adjusting product offerings and other marketing strategies according to changes taking place in the environment of business. Scan this QR code to see how restaurants and food joints quickly adapted to the growing concerns for health, safety and hygiene soon after the lockdown conditions after the first and second Covid-19 wave in India. Also read Marketing Insight 3.1 from chapter 3 to understand how changes in technology are driving changes in marketing strategies of companies. SCOPE OF MARKETING (FUNCTIONS OF MARKETING) The scope of marketing is defined by the various functions that are performed within its realm. These functions can broadly be classified into four broad categories (functions of research, functions of exchange, functions of physical treatment and functions that facilitate exchange) and are discussed below. I. Functions of Research 1. Market Research: This involves gathering and analysing data about market trends, customer preferences, and competitor activities. Market research facilitates informed decision-making and helps marketers identify market opportunities and consumer needs, For instance, a company might conduct surveys and focus groups to understand customer preferences before launching a new product. 2. Product Design and Development: Product design and development in marketing refers to the process of creating and improving goods or services to meet customer needs and preferences. It involves conceptualizing, designing, and refining products from ideationAe Principles of Ma, to launch, Product design encompasses the aesthetic, functional, and experiential of a product, while development involves turning the design concept into a offering. This process requires market research, prototyping, testing, and iteration ensure that the final product aligns with customer expectations, market trends, business goals. Il. Functions of Exchange Exchange is a fundamental concept in marketing that involves the transfer of goods, or value between a buyer afd a Seller. The key functions involving exchange are the foll 1, Buying and Assembling: The function of buying involves identifying, selecting, procuring products or services from suppliers or other businesses. It includes activities) such as supplier evaluation, negotiating contracts, and managing purchasing processe Buying ensures that the organization acquires the necessary goods and services ty meet customer demands or support its operations. Assembling, also known a Production or manufacturing, involves the physical or logistical process of combiniay or integrating various components, parts, or resources to create finished products. 2. Selling: Selling is the function of persuading and influencing customers to make: purchase. It involves understanding customer needs, presenting product information) addressing objections, and closing the sale. Selling encompasses various activities suct as personal selling, online sales, telemarketing, and sales promotions. The goal is t create a favourable buying experience for customers and generate revenue for the) organization. III. Functions of Physical Treatment The functions of physical treatment contribute to the overall product value and customer satisfaction. They ensure product consistency, quality, and availability, while also enhancing the product's marketability, convenience, and protection throughout its lifecycle. These include the following. 1. Standardization, Grading and Branding: Standardization involves establishing uniform specifications, features, and characteristics for Products or services. It ensures consiste0q and quality across diffe: ae rent batches or versions of a product, Standardization simplifs Production processes, improves efficiency, and facilitates customer understanding comparison. For example, standardized clothing sizes or standardized electrical plugs coy is the process of categorizing products based on quality, size, or other attributes srcments nes to make informed choices by selecting products that meet their speci feauifements Branding, on the other hand, involves creating and promoting a uniqu® raul identity for products or services, It helps differentiate offerings from competitors sstablishes customer loyalty, and signifies a certain level vt saline Packaging: Packaging encom i It serves multiple eee functions such as ipl Protecting Storage, providing information to customers, a materials, and presentation of produ the product during transportation » and promoting the brand. Effectiv®itroduction to Marketing 115 packaging enhances product visibility, appeal, and convenience, contributing to customer satisfaction and brand recognition. Storage: Storage involves the proper management and preservation of products before they are sold or consumed. It includes activities such as inventory management, stock rotation, and maintaining suitable storage conditions (e.g., temperature control for perishable goods). Efficient storage practices ensure product availability, minimize spoilage or damage, and support timely order fulfilment. Transportation: Transportation refers to the physical movement of products from one location to another, such as from manufacturing facilities to distribution centres or retailers. It includes selecting appropriate transportation modes (e.g., trucks, ships, planes) and optimizing logistics to ensure timely and cost-effective delivery. Efficient transportation is crucial for maintaining supply chain flow, meeting customer demands, and minimizing transit-related risks or delays. IV. Functions that Facilitate Exchange These functions work to facilitate the exchange of products or services between businesses and customers and the overall achievement of marketing goals. lL. Advertising: Advertising involves the use of various media channels and communication tools to promote products, services, or brands to a target audience. It aims to create awareness, generate interest, and influence consumer behaviour. Advertising helps businesses reach a wide audience, build brand recognition, communicate product benefits, and persuade customers to make purchasing decisions. Personal Selling: Personal selling is a direct communication process between a salesperson and a prospective customer. It involves building relationships, understanding customer needs, presenting products or services, addressing concerns, and closing sales. Personal selling allows for personalized interactions, tailored product recommendations, and the ability to address specific customer inquiries or objections. Pricing: Pricing refers to the process of determining the monetary value assigned to a product or service. It involves considering factors such as production costs, competitor pricing, market demand, and perceived value of the product. Pricing strategies can vary, such as penetration pricing, premium pricing, or value-based pricing. Effective pricing strategies ensure that the price reflects the product's value proposition while remaining competitive in the market. Financing: Financing involves providing customers with payment options or assistance in acquiring products or services. This can include offering credit terms, instalment plans, or financing options through partnerships with financial institutions. By facilitating customer financing, businesses can overcome financial barriers and enable customers to afford their offerings, ultimately increasing sales. Risk-Taking: Risk-taking refers to the willingness of businesses to assume uncertainties and potential losses in pursuit of opportunities. This involves launching new products,