Basics of Marketing

1. I I S E M E S T E R M B A , P O N D I C H E R R Y U N I V E R S I T Y
MARKETING
MANAGEMENT
Mohammed Umair| M.Com, PGDBA, NET
Department of Commerce
Kristu Jayanti College
Department of Management
St. Joseph’s Evening College&

2. UNIT 1: CONTENTS
• Introduction to Marketing and Marketing Management,
Marketing
• Concepts - Marketing Process Marketing mix -
Marketing environment.
• Consumer Markets and buying behavior - Market
segmentation and targeting and positioning.

3. For a comprehensive
understanding of the subject
you can buy my book by
clicking the below link:
https://sapnaonline.com/
shop/Author/mohamme
d-umair

4. WHAT IS MARKETING?
• Marketing is a planned process through which
organizations primarily identify the needs of people
and then recognize target customer among the
people, satisfy the needs of the customer by selling
products & services and most importantly retain the
customer.
DEFINITION
Philip Kotler says, “Marketing is a societal process by which individuals and
groups obtain what they need and want through creating, offering and
freely exchanging products and services of value with others”.

5. MARKETING & SELLING
Dimension Marketing Selling
Meaning
It is satisfying needs and wants through an
exchange process.
Selling only involves exchange of money for
goods or service or an effort to execute the
exchange process.
Inception
Marketing starts before decision of
production of goods or services.
Selling starts after decision of production of
goods or services
Subject Matter
Marketing accords importance to
satisfaction of consumers wants
effectively.
Selling emphasizes on sale products & stresses
needs of seller.
Environment
Marketing has to take into consideration
both the internal and external factors of
the business.
Selling is concerned with the internal factors
like production and distribution of goods.
Scope
Marketing is a wider term, which, includes
selling, advertising, customer service and
also the distribution of goods.
Selling is the part of marketing and thus it is not
a comprehensive term.
Dynamics
It is an integrated approach that utilizes
various functional areas of business in
order to achieve the long-term objectives
of business. Emphasis on adopting future
technology.
It is short-run-oriented & focuses on today’s
products and markets. It emphasis on staying
with existing technology and reducing costs.

6. MARKETING
PROCESS
1. Business enterprise: The starting point of marketing
process is formulation of a business enterprise and the
prime objective of business is to make profit and avoid
loss.
2. Environmental Scanning: Environmental scanning here
refers to understanding of Market, which can be done
with effective marketing research.
3. Identifying Needs, Wants & Demands: Needs, wants and
demands establishes the base for marketing principles.
Even though they are very simple terminologies yet they
possess a complex meaning behind them. Therefore it is
very prudent for the business enterprises to understand
the target market's needs, wants, and demands.

7. MARKETING PROCESS
4. Products & Services: In today’s competitive market
environment, consumers develop new needs and
wants which need to be met and satisfied. In order
to meet these, business firms have to launch unique
products or services in their effort to remain viable
and competitive.
5. Value, Cost & Satisfaction: The most important
criteria for a customer to buy or select a product
includes value which the customer derives by using
& buying the product, value is ascertained by
combining quality, service & cost.

8. MARKETING PROCESS
6. Exchange process: Exchange is process of transfer
of goods or services from one entity to another by
offering something in return.
7. Customer Relationship Management: The modern
concept of marketing not only focuses on sales but
also lays strong emphasis on understanding the post
purchase behavior of the customer.
8. Customer Orientation & Behavior: Customer
orientation refers to customer-centric business. It is
the behaviour of the consumer which impacts their
decision to purchase or not to purchase the
product.

9. GOALS OF MARKETING
• Cater the wants and needs of customer
• To improve and maintain image of the product or the
business
• To increase market share
• To target an unexplored market
• To target a new market segment in an explored market
• To build trust and rapport with customers
• Attract new customers & retain existing customers
• To illustrate benefits & introduce products
• To boost sales revenue
• To develop new business ideas
• To understand consumer behaviour through marketing
research

10. SCOPE OF MARKETING
• Goods: Physical goods constitute the bulk of most
countries’ production and marketing exercise. The
production of Goods are primarily determined by the
earning capacity of the people to buy & demand
factor influenced by host of forces.
• Services: A type of economic activity that is
intangible. As economies advance, a growing
proportion of their activities are focused on the
production of services.
• Experiences: By incorporating several products and
services a business enterprise can develop a
customer experience. Space tourism is space travel
for recreational, leisure or business purposes.
What can be marketed?

11. SCOPE OF MARKETING
• Persons: Brand ambassadors have become a vital
component of marketing in the present business
environment.
• Events: Sponsoring & promoting an event is an
effective way to simultaneously support producers in
a business area and advertise products, services &
brands of business.
• Places: This includes towns, cities, states and whole
country engaged in attracting tourists, investors,
companies and NRIs.
• Properties: It refers to intellectual rights such as
copyrights, patents and trade-marks etc,
What can be marketed?

12. SCOPE OF MARKETING
• Organizations: It refers to two or more people working
together to achieve something (that often cannot be
accomplished alone).
• Information: In the context of present business
scenario information is the most valuable asset which
can be marketed.
• Ideas: Products & services offered by marketers
possess a basic idea which becomes the basic
essence.
What can be marketed?

13. EVOLUTION OF MARKETING
APPROACH

14. ROLE & SIGNIFICANCE OF
MARKETING
• Marketing scripts organization’s reputation
• Marketing generates revenue
• Marketing makes organization dynamic
• Facilitates demand & product awareness
• Offers wide employment opportunities
• Offers satisfaction of customer requirements
• Ensures healthy competition
• Business value acceleration
• Creates Competitive Advantage

15. FUNCTION OF MARKETING
• Buying: Buying primarily involves decisions on what to buy,
what quality, how much, from whom, when and at what
price.
• Selling: The core objective of marketing is to facilitate sales.
Selling is concerned with the persuasion of prospective
buyers to actually complete the purchase of a product or
service.
• Pricing: Pricing of products or services play a vital role in
marketing and as it directly impacts the profitability of
business.
• Assembling: It is important to note that assembling and
buying are separate functions, assembling starts after the
goods have already been purchased.
A: Exchange Functions

16. FUNCTION OF MARKETING
• Transportation: The success of distribution in marketing system
depends upon an economical and effective transportation
system.
• Storage: Storage refers to the holding and preservation of goods
until they are despatched to the consumers.
• Retailing: The word retailing has its origins in the French verb
“retailer‟, which means “to cut up”, and refers to one of the
fundamental retailing activities which is to buy in larger quantities
and sell in smaller quantities.
• Stock Management
• Inventory or stock management is a significant function of
marketing and reflects the health of the supply chain as well as
the impacts the financial health.
• Standardisation & Grading: Standardization helps the marketers
keep the costs low & target many potential customers. It also
brings in uniformity in establishment of certain standards
B: Supply Chain Functions

17. FUNCTION OF MARKETING
• Financing: The services of providing the credit and
money needed to meet the cost of getting
merchandise into the hands of the final user is
commonly referred to as finance function in
marketing.
• Customer Service: In order to manage customers,
marketers must be concerned with the entire
experience a customer derives from using the
products or services offered by the marketer.
• Marketing information: Marketing information is use
the management information system designed to
support decision making in marketing.
C: Utility Functions

18. MARKETING ENVIRONMENT
• What is Market Environment?
• The market environment refers to various internal &
external factors and forces that affect a firm’s activities
such as marketing plans, customer management,
financial planning etc., directly or indirectly. Successful
companies recognize and respond effectively to trends
in marketing environment.
“The Aggregate of all conditions events and influences that
surround and affect business”. - Davis Keith

19. ENVIRONMENTAL SCANNING
• Environment scanning is a process of monitoring,
forecasting, assessing & collecting information
about various internal & external factors & forces
influencing a marketing firm.
Why analyse needs & trends of environment?
1. Identification of SWOT
2. Explore & exploit business opportunities
3. Respond to new demands & trends
4. To grow & stay alive in competition
5. Ensure effective utilization of resources
6. To build brand reputation
7. Proactive approach & strategy building

20. COMPONENTS OF MARKETING
ENVIRONMENT

21. A: MICRO ENVIRONMENT
• HR and Marketing are closely bonded, HR department
provides appropriate personnel for various marketing jobs and
plan training programs to improve the employee skills, as well
as motivate them.
• For this marketing department makes its marketing budget
and it is cleared by finance department. Marketing and
finance interface has a direct impact on issues such as
product investment decisions, brand valuation, working
capital requirements.
• Often, research and development works closely with the
marketing department. The core activity of R&D department
involves development of new products, which are essential for
marketers to generate profits in medium and long term.
• Marketing is a tool to drive sales and satisfy the needs of the
customers. Therefore the efficacy of the marketing is
dependent on production and operations management to
ensure that a business sells products that meet customer
needs and wants.
1. Functional areas of business

22. A: MICRO ENVIRONMENT
• Suppliers: suppliers are part of the supply chain management
who supplies the resources needed by the firm to produce its
goods and services, this includes manufacturers, importers,
wholesalers, retailers and hire companies.
• Marketing intermediaries: There are different intermediaries
involved in marketing distribution channel from original
producer to the final user.
• Customer: Customers are the most important stake holder of
any business. They are the resource upon which the success of
the business depends.
• Shareholders: Shareholders are the owners of Business.
Depending on structure of the company the shareholding
pattern varies.
• Competitors: In business it is very important to understand who
the competitors are? Analysing competitors closely will help in
framing marketing plans effectively, Competitor analysis is an
important part of designing marketing strategies.

23. B: MACRO ENVIRONMENT
• Political & Legal Environment
• Political System
• Political Risk
• Political Ideologies
• Indicators of Political Instability
• Monopoly controls
• Legislations
Micro-environment refers to all major external factors and forces over
which the marketing firm has no control.
The political environment simply refers to the way a country is being
run in terms of politics. The political environment includes all laws,
government agencies and lobbying groups that influence or restrict
individuals or organisations.

24. B: MACRO ENVIRONMENT
• Economic Environment
• Economic System
• Inflation rates
• Business cycles
• Economic growth rate
• Economic Policies
• Savings, debt, and credit availability
Micro-environment refers to all major external factors and forces over
which the marketing firm has no control.
Economic environment refers to the sum of all economic factors, policies and
nature of an economy, trade cycles, economic resources, level of income,
distribution of income and wealth etc. which acts as a major determinant of
the economic environment within which the business enterprise work.

25. B: MACRO ENVIRONMENT
• Demographic Environment
• Population Growth
• Population Age Mix
• Educational Groups
• Household Patterns
• Geographical Shifts in Population
Micro-environment refers to all major external factors and forces over
which the marketing firm has no control.
Demography is the study of population and demographic environment refers to
trends in County's population composition and its growth, levels of income,
household patterns & regional characteristics and other demographic factors of
the market in which an organization operates.

26. B: MACRO ENVIRONMENT
• Technological Environment
• Degree of Automation
• Emerging Technologies
• R&D Activity
• Technology Transfer
• Use of IT & communication
Micro-environment refers to all major external factors and forces over
which the marketing firm has no control.
Technological Environment means the advancements in the field of
technology which influences business by new inventions of productions and
other innovations in techniques to perform the business operations and
product development.

27. B: MACRO ENVIRONMENT
• Socio-Cultural Environment
• Changes in lifestyles
• Family structures
• Attitudes and values
• Household Patterns
• Social Mobility
Micro-environment refers to all major external factors and forces over
which the marketing firm has no control.
Socio-cultural Environment refers to a set of beliefs, customs, practices,
norms and behaviour that exists within a society which describes relationship
to themselves and others. Socio-cultural factors intensely influence the way
people live and help determine what, where, how, and when customers
buy a firm’s products.

28. B: MACRO ENVIRONMENT
• Natural Environment
• Geographical Location
• Availability of resource
• Access to natural resources
• Concern for environment
• Increased energy cost
Micro-environment refers to all major external factors and forces over
which the marketing firm has no control.
Natural environment refers to combination of natural resources which is
used by business as inputs and affects their marketing activities. This
includes use of raw material from nature for producing goods, all
agricultural inputs are also used in manufacturing not only this
machineries used in business are also made from metals of nature.

29. MARKET SEGMENTATION AND
TARGETING AND POSITIONING
1. Market segmentation is a process of dividing a market
into different sections of customers with common needs
or features and targeting them with distinct marketing
mix.
2. After segmentation of market, marketing firm designs
various marketing strategies such price, promotion, place
etc. according to the tastes of the individuals of particular
segment this process is called Target marketing.
3. Positioning is the final step, Positioning is an act of
creating a distinctive identity in the minds of target
customers for marketer’s product, brand, or organization.

30. MARKET SEGMENTATION AND
TARGETING AND POSITIONING
• A market is a diverse place made up of many different
customers with different backgrounds, culture, religion,
countries of origin, interests, needs and wants.
• Therefore it is more viable dividing up customer into
groups according to particular criteria by using strategy
of Segmentation, Targeting and Positioning. STP strategy
is more suitable when the markets are large and diverse
and by using an appropriate market STP strategy
marketers can provide wide range of products and
services to meet diverse needs of customers which is
attractive, viable and also profitable.

31. STEPS IN THE TARGET MARKETING
PROCESS
• Step :1 Segmentation
• Determine which kinds of customers exist and
describe market segments.
• Step :2 Targeting
• Evaluate segments and decide which the best to
serve.
• Step :3 Positioning
• Communicating the target customer with marketing
• Mix with a distinguished identity, to create a
competitive advantage.

32. SEGMENTATION
• Precise satisfaction of customer needs: understanding of customers requirements, therefore by
developing a distinct marketing mix for each segment of customers a marketers can offer better
solutions for customer needs.
• Increased profits: By following an effective segmentation strategy a marketing firm can respond
more effectively to the wants of potential buyers by meeting their needs through better positioning.
• Effective allocation of resources: Proper market segmentation results in effective allocation of
resources, with help of target marketing communication in the form of promotions and
advertisement customers will be able to identify the products.
• Retain customers: Meeting customer needs by delivering products or services according to their
requirements through segmentation facilitates a marketing firm to retain that customer’s loyalty as
their needs change.
• Segment leadership: Strong market leadership is very necessary to attain maximum profitability,
through market leadership in a segment marketer can achieve economies of scale, in marketing,
production and also have established access to distribution channels.
• Focused marketing communications: Market segmentation permits marketing firms to ascertain
media channels that can particularly reach the target group and also delivers marketing message
to a relevant audience.
According to William J. Stanton "Market segmentation in the process of dividing the total heterogeneous market
for a good or service into several segments. Each of which tends to be homogeneous in all significant aspects."
Why segment?: Need, Purpose, objectives, significance and benefits of Segmentation

33. BASES OF SEGMENTATION
• Demographic Segmentation: Demographic segmentation divides markets into segments taking
into considerations demographic factors such as gender, age, social class, family life cycle,
gender, income, occupation, education, religion, race, generation, nationality. Etc.
• Behavioural Segmentation: Behavioural segmentation is based on product consumption-related
behaviours and can include frequency, volume and type of product usage.
• Psychographic Segmentation: Effective marketing of a product requires a proper understanding
of customers psychology, along with needs, this will ensure product acceptance by the
consumer.
• Cross-Cultural Segmentation: Development in information and technology has paved way for
globalization of economies and a new market place has developed.
• Geographic Segmentation: Geographic segmentation divide’s the target market according to
geographical units such as nations, states, regions, counties, cities, or neighbourhoods.
• Socio-economic Segmentation: The term socio-economic refers to study of both social and
economic conditions relevant to well-being.

34. CRITERIA FOR SEGMENTATION
1. Identifiable and Measurable: The information collected by the firm for segmentation
variables such as size, purchasing power, and characteristics of the segments.
2. Substantial: After identifying and measuring the selected segment the next important
parameter is to ensure that the selected segment is substantial, The market segment
selected should be large enough, in terms of sales and profitability.
3. Accessible: The segment to selected must be effective in term reach, communication,
distribution and servable.
4. Responsive: The major challenge in selecting a segmentation type is that the selected
segment should have all resources to cater for the needs of the target customers.
5. Viable and Sustainable: It is important for a segment to be more practical and viable,
if the segment is narrow in terms of reach then potential for sales growth will be limited
and if it is too wide then it becomes difficult to develop marketing plans to suit all of
the groups included in the segment.
6. Customers price sensitivity: Customer price sensitivity indicates the awareness and
response of the customer to pricing of products or services at the time of making
purchasing decisions.
7. Potential for substitution: The success of a segmentation strategy also depends on the
substitutions already prevailing or that may develop in future.
8. Stage of industry life cycle: Understanding the industry life cycle is very import before
deciding a segment for a simple reason that in the early stages of industry life cycle
competition is very minimal .

35. STEPS IN SEGMENTATION PROCESS
• Profiling of customers
• Identification of Segment
• Evaluating segment attractiveness
• Assessment of segment profitability
• Segment positioning
• Segment testing
• Marketing-Mix Strategy

36. TARGETING
• Targeting is a strategy used by the marketers to
assess the efficacy of each prospective segment
and decide in which of these groups they will invest
resources to try to turn them into customers.
• Target market is the specific group of consumers at
which a company aims its products and services.
Your target customers are those who are most likely
to buy from you.

37. BASIC STRATEGIES FOR TARGET
MARKET SELECTION
1. Selective Marketing (Differentiated Marketing): In selective target
marketing strategy a firms opts and uses selective category of
target customers to generate interest in a specific product
categories while abandoning concentration on product
category or class.
2. Mass Market Targeting (Undifferentiated Marketing): It is quite
opposite to selective targeting, under this strategy a marketer
offers a single product to the entire market and tries to capture all
the potential consumer with single marketing plan.
3. Single Segment Targeting (Concentrated marketing): Developing
a product that would appeal to a mass market is difficult as it
must appeal to all customers and also marketing firm may not be
able to cater the specific needs of the consumers. Therefore a
firm may opt for Single Segment Targeting or Concentrated
marketing. Single segment targeting focuses on use of single
market coverage strategy wherein a product is developed and
marketed for a very well-defined, specific and narrow consumer
group.

38. POSITIONING
• Positioning is an act of creating a distinctive identity
in the minds of target customers for marketer’s
product, brand, or organization.
• Provides identity to marketer and its offerings
• Demonstrates the effects on the consumer mind
• Enhances brand value and goodwill
• Influences consumer buying decision process
• Justifies marketer’s claim
Role & importance of Positioning in Marketing

39. CONSUMER BEHAVIOUR
• Consumer behaviour indicates actions of
consumers with reference to activities that take
place to satisfy their needs, these activities−includes
using products or services, processes used in
selecting, securing of products or services, ideas or
experiences.
Loudon and Bitta say, “Consumer behaviour is the
decision process and physical activity engaged in
when evaluating, acquiring, using or disposing of
goods and services."

40. FACTORS INFLUENCING CONSUMER
BEHAVIOUR
• Consumer behaviour is affected by situation and the
consumer himself, i.e., internal and external factors.
• Internal factors refer to characteristics of individuals such
as perception, motivation, learning, attitude, personality,
age group and Lifestyle.
• External factors refer to situation and environment where
the consumers interrelate, which can affect attitude,
decisions and behaviour.
• Internal and external factors have important influence
on consumer behaviour. However, external factors are
more special. External factors are unpredictable and are
influenced not only by economical situation in state but
also in region and whole world.

41. INTERNAL INFLUENCES
• Culture
• Subculture
• Social class
• Reference Groups
• Opinion leaders
• Gender roles
• Physical environment
• Economic Situation

42. EXTERNAL INFLUENCES
• Perception
• Motivation
• Learning
• Attitudes
• Personality
• Age groups
• Lifestyle
• Income

43. THE CONSUMER DECISION-MAKING
PROCESS
• Stage 1: Need recognition and awareness- In this stage, the
consumer identifies and becomes aware of the need or problem.
(Example: I am tired, I am hungry, I need a bike).
• Stage 2: Information search- Here, the consumer starts searching for
information for providing a solution for the need or problem
identified and responds to creative advertising messages that
stimulate consumers to recognize that their current state .
• Stage 3: Evaluate alternatives- In this stage the consumer evaluates
each alternative solution (Product) based on comparison with
competing product alternatives, product attributes.
• Stage 4: Purchase Decision- In this stage, consumer decides on
product to purchases and executes purchase, for this the consumer
evaluates where to buy, when to buy and makes the purchase.
• Stage 5: Purchase Decision- In this stage, the consumer mentally
evaluates purchase, if product meets expectations, consumer feels
satisfied and if expectation is not, met consumer may suffer anxiety
or regret. This evaluation decides whether the customer will
purchase the product or brand again or not.

44. MARKETING MIX: OVERVIEW
• Marketing Mix is a combination of product, place,
promotion, and pricing strategies designed to produce
satisfying exchanges with predefined consumers. The
components of marketing mix can be controlled by
marketers to influence consumers to purchase its
products.

45. MARKETING MIX
1. Product: Product is the actual offering of the marketer to its
predefined consumers which also includes value added
benefits. The offering can be in the form of tangible (goods)
or intangible (services).
2. Price: Price is the value in monetary terms required to
purchase a product or service. pricing is an important tool in
marketing to attract, retain customer and to fight
competition, further pricing of product or service is a key
element in determining the profitability of business.
3. Place: Place represents distribution channel of a product
that serve as the means for getting the product to the target
customers. Distribution decisions include market coverage,
channel member selection, logistics, and levels of service.
4. Promotion: Promotion helps marketers create and increase
brand awareness, provide information about the products
and services, increases volume of customers and builds sales
and profits.

46. THANK YOU
• Feed back:
umairsunni@gmail.com