Module I

Introduction to
Marketing
Market
A place where the trading of
goods takes place.

Online platforms
Marketing
 Dr. Philip Kotler defines marketing as

“the science and art of exploring, creating and delivering value to

satisfy the needs of a target market at a profit.”
 Features

Organisational Societal process Management

function process

Commercial Generates Process of

function utilities utilising resources
Objectives of Marketing
• Creation of Demand

• Customer satisfaction

• Increase Market Share

• Generation of Profits

• Creation of Goodwill and Public Image

 Evolution of Marketing

• Barter stage

• Production stage (1800 – 1920’s) - mass production

• Sales stage (1920’s – 1940’s) - companies heavily rely on advertisements

• Marketing stage (1940’s – 1970’s) - focusing on customer needs

• Societal orientation stage (1970’s --) - develop strategies that positively impact
the consumers’ well-being and the environment
Benefits to the society
• Improves quality of life

• Provides employment

• Wider access

• Made life more easier

• Create awarenesss
Benefits to the firm
•Helps in identifying target market

•Helps in planning and decision making

•Helps in distribution

•Determines the demand

•Helps in exchanging information

•Helps to earn goodwill

Role of marketing in economic
development
• Increases the entrepreneurial activities

• Maximum utilization of natural resources

• Promotes development of basic industries

• Increases foreign exchange earnings

• Industrial development

• Increase in earnings

• Increase in national income

• Generate employment opportunities

• Improves standard of living

Marketing Utilities

• Time utility – “when” component

• Place utility – “where” component

• Possession utility - actual act of product possession

• Form utility -responsibility of assembly to the consumer

• Information utility – providing the relevant information

Scope of Marketing

• Identify and select the target market

• Identify and select the customer value

• Creation of value

• Communicate the value

• Deliver the value

• Customer relationship

• Marketing research
Marketing Process

• Market analysis

• Formulation of marketing strategy

• Decision regarding the 4P’s (Product, Price, Place and Promotion)

• Implementation and control

Market Vs. Marketing
Types of Market
Place or Geographical Area Markets

Local Market – Regional Market – National Market – International Market

Time Market

Very short period market – Short period market – Long period market

Sales Market

Wholesale market – Retail market

Types of Goods and Markets

Product market – Service market

Use of Goods and Markets

Consumer market – Industrial market

Nature of Goods and Markets

Financial market – Commodity market(hard and soft commodity)

Competitions Markets

Perfect market
No firms enjoys power over the market
Unlimited number of buyers and sellers – Similar/identical products
Free entry and exit – No restriction for starting and closing business
Complete information – price, quality, profit etc.
Imperfect market
Large number of buyers and sellers with differentiated products
Products in an imperfect market are highly differentiated
Monopoly market
Monopolistic competition market
Many sellers producing differentiated products which are closely
identical to one another.
Oligopoly market
Market dominated by small number of sellers.
Duopoly
Only two sellers/producers controlling the market
Nature of Transactions and Market

Spot market – Future market

 Concepts/Orientations of Marketing

• Production concept – reducing cost by way of mass production

• Product concept – introduce the best product (quality and features)

• Sales concept – aggressive sales efforts by distribution channels and advertisements

• Market concept – customers as the key element of marketing process – customers as the king

• Societal concept – highlights social responsibilities – balance between customer satisfaction

and welfare of the society

Marketing Environment

• Micro environment of marketing

• Macro environment of marketing

Micro environment
• The company

• Suppliers

• Marketing intermediaries

• Customers

• Competitors

• Publics – Financial, Govt., Media, Citizen, Local, General, Internal

Macro environment
• Demographic factors

• Economic factors

• Cultural factors

• Natural factors

• Technological factors

• Political factors
Global Marketing Environment
The global marketing environment refers to the external factors and
forces that influence an organization's ability to conduct successful
marketing activities on a global scale.
 Key components of the Global Marketing
Environment
•Cultural factors - Cultural Diversity, Language Considerations

•Economic Factors – Economic conditions, Exchange rates

•Political and Legal Factors - Government Regulations, Political stability

•Technological Factors – Infrastructure, Innovation

•Social and Demographic Factors

•Environmental and Sustainability Factors - Environmental Regulations, Consumer Sustainability Preferences

•Media and Communication Channels - Media Availability, communication Infrastructure

•Global Economic Trends

•Health and Safety Considerations

• Coca Cola – Happy Flag

• Nestle – Case Study

Marketing in the Digital Age brings together the marketing innovations
created by the digital technology revolution with the sage and proven
wisdom of time-tested branding strategies to offer a successful
platform for winning in today’s marketing environment.
 Marketing in the Digital Age
Search Engine Optimization (SEO):
SEO aims to optimize website content to rank higher in search engine results pages (SERPs), enhancing
organic visibility.
Example: Optimizing website content with relevant keywords and improving site speed to boost search
rankings.
Pay-Per-Click (PPC) Advertising:
PPC involves advertisers paying a fee each time their ad is clicked, driving immediate traffic to websites.
Example: Google Ads campaigns targeting specific keywords to appear prominently in search results.
Email Marketing:
Email marketing utilizes personalized emails to nurture leads and maintain customer relationships.
Example: Sending targeted newsletters with product updates and promotional offers to subscribers.
Influencer Partnerships:
Collaborating with influencers to promote products or services to their followers, leveraging their
credibility and reach.
Example: Partnering with a fitness influencer to endorse health supplements on Instagram
Marketing P’s

• Product

• Price

• Place

• Promotion

Class room activity

Marketing Cs

• Consumer

• Cost

• Convenience

• Communication
Market Segmentation
William J. Stanton defines it: "Market segmentation consists of taking
the total heterogeneous market for a product and dividing it into several
sub markets or segments each of which tends to be homogeneous in all
significant aspects".

Case Discussion on McDonald’s Market Segmentation

 Features of Market Segmentation

• Dividing the Market

• Narrowing Focus

• STP Process - Segmentation, Targeting, and Positioning

• Alternative to Mass Marketing

Need and Importance of Market Segmentation
Advantages and Benefits of Market
Segmentation
Better understanding of customers needs and wants
Product differentiation
Designing or redesigning products
Avoid unprofitable markets
Better positioning
New market opportunities
Focus on target markets
Understand behavior and buying motive of consumers

Classification of most profitable and least profitable market segments

Proper allocation of resources

Limitations of Market Segmentation
Limited Scope

Coverage Issues

Cost Increase

Complexity
McDonald’s Market Segmentation Process
Market Segmentation Process
Identification of Market

Identification of Market needs

Division / Segmentation of the market

Study different market segment

Selection of particular market segment

Formulation and implementation of marketing strategies

 Key Bases for Market Segmentation
• Demographic

• Geographic

• Psychological - Personality, lifestyle, values, attitudes, interests, opinions, etc

• Sociocultural - Social class, culture, subculture, family, religion, nationality etc.

• Behavioural - Purchase occasion, benefit sought, user status, Usage rate, loyalty
status
Market Targeting

• It involves the actual selection of segment(s) that a firm wants to serve.

• Market targeting is the process of evaluating each segment's

attractiveness and selecting one or more segments to enter.
Benefits of Market Targeting

• Detailed Analysis

• Comparative Study

• Marketing Strategy

• Resource allocation
Market Targeting – Process

• Evaluation of Market Segments

• Selection of Segments

• Strategy Development
Types of Targeting
• Undifferentiated Targeting (Mass Marketing)

• Differentiated Targeting (Segmented Marketing)

• Concentrated Targeting (Niche Marketing)

• Micromarketing

Local Marketing: Targets local customer segments, cities, neighborhoods, or specific

stores.

Individual Marketing: Also known as "one-to-one marketing," targets individual

customers.
Market Positioning

• It involves creating an impression in the minds of customers and

showing the space of a product in the target market.

• "Positioning is the act of designing the company's offering and image so

that they occupy a meaningful and distinct competitive position in the
target customer's mind" - Philip Kotler
Elements of Market Positioning

Communication
Product

Perception Attributes
Market Positioning Strategies
• Product Attributes and Benefits

• Price

• Use or Application

• Product User

• Positioning by product class

• Positioning by competitor

• Positioning by cultural symbols

• Amul Case Study - Discussion
Consumer Behaviour
Consumer behavior is the study of individuals, groups, or organizations and
all the activities associated with the purchase, use, and disposal of goods
and services.

Refers to the totality of thoughts and actions of a consumer in the market

• The American Marketing Association (AMA) defines consumer behavior
as: "the dynamic interaction of affect and cognition, behavior, and the
environment by which human beings conduct the exchange aspects of
their lives."
Buying Roles
• Initiator - The person who first recognizes the need or problem and starts the buying
process.

• Influencer - The person whose opinions and recommendations influence the buying
decision

• Decider - The person who ultimately makes the final decision about which product or
service to purchase.

• Buyer - The person who actually makes the purchase transaction.

• User - The person or people who will use the product or service.
Importance of Consumer Behavior
Provides information on products and services purchased

Gives valuable inputs for marketing strategies

Enables targeting of specific consumer segments

Reveals pre-purchase and post-purchase behavior

Guides product development and modification

Identifies environmental influences

Factors influencing consumer behaviour
Personal Factors (Age, gender, occupation, education, income, lifestyle)

Psychological Factors (Personality, motivation, perception, learning, belief,

attitude)

Social Factors (Reference group, family, roles and status)

Cultural Factors (Religion, culture)

The Buying Decision Process

• Need recognition

• Information research

• Evaluation of alternatives

• Purchase decision

• Post purchase behavior