Modern Marketing

Unit – 1: Introduction to Marketing

Meaning & definition

Market

The word Market has been derived form latin word ‘Matketus’ which means refers to the Place of contact
between buyers & sellers.

Philip Kotler defined Market as “Market is an area for potential exchanges”

Actually market is a much wider term. It means the entire geographical area or local, at trends changing, the
whole nation, even the entire world where buyers & sellers are exchange their products & & online virtual
platform which allows buyers & sellers to transact.

Marketing

Marketing is about identifying & meeting human & social needs.

According to Philip Kotler “Marketing is a human activity directed at satisfying needs & wants through
exchange process.” Marketing is an effort made by marketer to reach customers.

Goals of Marketing

Marketing is continues series of activities with the at most goal of increasing the sales. Therefore, the following
are the objectives of marketing in the present situation.

1) Identification o f needs & wants: In present competitive situation marketer need to identify needs and
wants of customer. It includes varies aspects of product & customer expectations such as quality price
durability etc.,
“Marketer do not create needs” needs preexist in the market. They might promote the idea that would
satisfy a person’s need.
2) Get an appropriate Product Design: Marketer always design suitable product to match the customer
expectations. They can achieve increase in sales.
3) Create Demand: Increase in demand results in positive sales. To achieve better sales figure marketer
need to create demand in the minds of customers. Creating demand should include ethical practices in
the market.
4) Make Market Arrangement: Marketing not only includes identifying needs, product design & demand
creation to achieve their goals. Markets should make proper market arrangements to reach their products
to customers.
5) Market Research: analyzing the marketing environment to sell their products plays vital role. Marketer
should conduct market research before developing the product. This gives response form customers.

Core Marketing Concepts / Marketing Philosophy

Marketing Concepts refers to understanding the market, idea, view or thinking an organization has regarding
market. Marketing wants to design techniques that will helps to create profitable relationship with
customers. Marketing concepts or Philosophy guides marketer to frame those techniques.
 1) The Production Concept: This is the oldest concept of marketing that guides the seller. The idea
behind this concept that consumers will buy products which are available & highly affordable.
Manufacturer has to concentrate on production, distribution & price them affordably to sell large
quantities of goods.
This also focuses on policy sell whatever is produced. This concept will not understand needs & wants
of customers. Following are relevant circumstances where manufacturer adopt production concept;
a) When demand is more than the supply.
b) When the product cost is very high to bring it down.
c) In case of Monopoly.
2) The Product Concept: This concept is ahead of production concept. Here the idea that consumer will
buy products that offer the most quality, performance & features. Under this concept organization
concentrates on continuous product improvements.
3) The Selling Concept: Customers will not buy enough products unless a large scale selling & promotion
efforts. This is aggressive selling efforts, focuses on creating sales transactions rather than on building
long – term profitable customer relationships. But these are usually poor assumptions.
4) The Marketing Concepts: This philosophy guides marketer to lead customer where they want they
want to go before they know when they want to go. Under marketing concept original goals can be
achievable if it depends on knowing the needs & wants better than competitors.
Instead of a product centered “Make & Sell” philosophy, marketing concept is customer centered “Sense
& Respond” philosophy.
5) The Societal Marketing Concept: A principle of enlightened marketing that holds that a company
should make good marketing decisions by considering consumer requirements, the companies
requirements in long-run & society’s interest in long-run. Marketing strategy should deliver value to
customers & the society’s well being. This concept suggests to maintain balance between all society,
consumers & company.
Society
(Human Welfare)

Consumers Company
(Want Satisfaction) (Profits)

Approaches of marketing
1. The trade approach: Before the inception of industrial revolution, the emphasize was on captive
consumption. People consumed most of what they produced. Any excess household production was bought
 town and sold or rate for other goods. This concept can be termed as barter system this concept came to an
end with emergence of industrial revolution.
2. The product approach: The product oriented approach was started during when product started being sold
at low cost this focused on more efficient work principle introduced by F W Taylor. This leads to reducing
cost of production in mass production industry. This allowed the passing cost savings to customers in the
form of lower prices.
3. Sales orientation approach: On account of industrial revolution competition among the marketer was on
the Rise and focus turn from product to selling. The sales orientation approach emphasizes on enhancing
sales volume with promotion which includes efficient salesmanship, advertisement and public relations.
4. Customer orientation approach: The approach was introduced in 1956 and advocated that essential
activity of marketing is the understanding the needs, wants, Desire, demands and values of customers.
Under this approach customer opinion is taken through marketing research before product is produced.
Includes 4 steps they are marketing research, customer need assessment, product development,
advertisement and promotion and sales.
5. Social orientation approach: This approach takes the societies well-being into account in addition to the
satisfaction of customers needs wants. The social orientation focuses on production of product and services
does not harm environment and condition of public health or safety.
6. Relationship marketing approach: Relationship marketing case the processes in which marketer develop
a long-term satisfying relationship with its customer in order to retain the customer’s loyalty in buying their
forms product. This helps to build customer loyalty and encourage repeat buying.
7. Virtual marketing approach: Virtual marketing environment is an Avenue for online community
concerned with Marketing. It consist of many elements like search engines, social, media web applications,
etc. virtual Marketing concept is a model that combines the internet Trends, internet users, web marketing
opportunities. Virtual marketing is a component of online world.
8. Branding approach: Effective and efficient branding provides marketers and edge in highly competitive
markets. A brand communicates its customers what they can expect from products and services and it
differentiates offering more by marketers from its competitors.
FUNCTIONS OF MARKETING

I) Exchange functions
1) Buying: Buying primary activity in market decisions on what to buy, what quantity, how much, from
whom, when and at what price. Buying decisions are highly influenced by demand and supply for the
product. Buying function is carried out by all the entities in the marketing chain. Manufacturer buys raw
materials from their suppliers, distributors from their manufacturers, wholesale buy from distributors,
retailers buy from wholesalers and Consumers buy from retailers thermosphere vary depending on
channels of distribution.
2) Selling: The core objective of marketing is to facilitate sales selling is concerned with the preservation of
prospective buyers to actually complete the purchase of a product or services in other words transfer of
ownership the volume of sales has added correlation with the profit of a business concern and plays an
important role in realizing the earning profit.
 3) Pricing: Pricing of products or services play a vital role in marketing and as it directly impacts on
profitability of business success of product or services mostly depends on pricing and it is not always
easy to get the pricing right if the price is too high demand will reduce. Price is too low your sales
volume in may not generate enough revenue to cover the cost associated with your business
4) Assembling: It is an important to note that assembling being separate functions. Sending goods are
usually procured various sellers are suppliers and then assembly at one place under the control of buyer.
II) Supply chain function
1) Transportation: The success of distribution in Marketing System depends upon economical and
effective Transportation system is important to know that available resources required by industries such
as labour, raw materials are scattered on concentrated in certain geographical regions.
2) Storage: Storage refers to the holding and preservation of goods until they are dispatched to the
consumer’s story or warehousing is very significant in marketing and aims at protection of the quality
and quantity of the stored products. The purpose of warehouse is to compensate for the time difference
that arises due to the time gap between production and consumption of the products they for
warehousing fills the cap by creating the time utility.
3) Retailing: Functional retailing activities are to buy in large quantities and sell in small quantities.
Retailers an intermediary in the marketing channels who actually plays a dual role of marketing and
consumer retail space special troll as they interact with customers and producers.
4) Stock management: Inventory or stock management is a significant function of marketing and reflects
the health of the supply chain as well as impact the financial health every organization constantly strives
to maintain optimum inventory to be able to meet this requirement and avoid over and under inventory
that can impact differential figures. High inventory turnover ratio indicates that company is efficient in
managing its inventory and is having high sales.
III) Utility functions
1) Financing: The financial functions of marketing deals providing credit facilities to all the entities
involved in the marketing channel such as distributor wholesaler retailer and consumers the services of
providing the credit and money needed to be the cost of getting merchandise into the hands of the final
users. Differential facility may be secured from various sources such as commercial banks, lending
Institutions both organized and unorganized and trade credit.
2) Customer service: cannot manage customers, marketers must be concerned with the entire expenditure
as a customer drives from using the products or services offered by the marketer.Customers accept value
directly from the use of products of services they buy. It includes non-product benefits.
3) Marketing Information: Information is the use of management information system designed to support
decision making in marketing in order to ensure success of marketing decisions the market decision
 should be based on the correct and timely market information marketing Information Department should
correct and analyze the information from internal sources and external sources.
4) Promotion: Promotion helps marketer to create and increase brand awareness provide information
about the products and services increase volume of customers and in sales and profits. Promotion is a
major tool to increase the customer to purchase a products or services. it includes personal selling
advertising sales promotions and Public Relations.

Recent trends in marketing.

Over the last few years marketing has changed drastically. In the past the sales executive had the most of
Information and we as customers were depended on sales professionals to inform and guide in our decisions,
but now the development in Information Technology has changed everything
List of recent trends in marketing
Telemarketing, M-business, Green business.
Tele-marketing.
Telemarketing is one of the method of direct marketing of products and services offered by marketer.
Remarketing is a process of persuading prospective customers to buy products or services using
telecommunication Technology.
telemarketing is interactive medium and it helps a marketer to address the prospect of customers questions
or concerns and to overcome the customers problems. The following are the different varieties of
telemarketing,
 interactive voice response
 voice chat
 voice and text messages
 tele-shopping
 Call Centres and BPOs
 broadcast fax
Merits of telemarketing
 Economical in terms of cost provides employment.
 Direct interactions with customers
M business
M business is a branch of Electronic Commerce which includes buying and selling of goods and services
through wireless handheld devices such as cellular telephone and personal digital assistants.
Features of M business
 Anytime and anywhere transaction capability.
 Services through wireless handled devices.
 wider reach
 Attractive interactive and collaborate.
 Provides headquarter security.
Pros M business: Cons of M-business
 Saves time and costs.  Use of Limited graphics due to low bandwidth.
 Not limited by geographical boundaries.  Expensive to set mobile infrastructure up.
 Helps in maintaining competitive edge.  Compatibility constraints of mobile devices.
 Conduct business from remote locations.  Security of data and transactions.
M-business Applications
 mobile ticketing  information services.
 mobile banking  Weather updates
 mobile stock trading  Traffic information’s
 mobile utility payments  Stock trackers
 mobile marketing  New services
 mobile repairing  Local maps
 mobile auctions  Learning & training

Green Marketing
According to American Marketing Association Green Marketing “is the marketing of products that are
presumed to environmentally safe.” On account of increasing global warming and other ecological disorder in
need for environmental friendly products and services has arisen and market of these days due to government
pressure or as a social responsibility has taken up Green Marketing that is marketing products and services
based on environmental factors are available
Green marketing characteristics.
 Naturally grown products.
 Products are recyclable, usable and biodegradable.
 Products contain natural ingredients without preservatives.
 eco friendly packing
 products do not damage or pollute the environment.
Green Marketing need, benefits and importance.
 Growing interest amount consumers all over the world regarding protection of environment
 Quality of life is increasingly impacted
 To fulfill the application of social responsibility towards the society.
 To comply with governmental policies and pressure.
Green Marketing Problems & Challenges
 False information
 Lack of education
 Lack of uniformity in policies
 Huge capital requirements
 Difficult to change in people mindset
Retail Marketing
A retailer is an intermediary in the marketing channel who connects producer to consumer. No intermediaries
like wholesaler, distributor & retailer. According to Philip kotler “Retailing includes all the activities involved
in selling goods or services directly to final consumers for personal & non-business use.
Features of Marketing
 Focuses customer relation.
 Removes intermediaries.
 Reduces cost.
 Develops personal contact.
 Easy interaction with customers
Relationship Marketing
It includes a set of activities and strategies aimed at developing customer loyalty, interaction, managing trust
& long term engagement with all the stake of holders of the business.
Benefits
  Builds trust & loyalty
 Regain lost customers
 Builds reputation & brand value
 Creates business opportunities
 Competitive edge from competitors
Customer Relationship Marketing
Business strategy indented towards understanding, interacting, anticipating & respond to the needs of current &
potential customers using technology. It is strategy that a company uses to handle customer interactions. e-
CRM concept is derived from e-commerce. To involves use of hardware & use of new web-based technologies
to handle customer interactions.
It focuses on building and maintaining long-term relationships with customers. The goal is to foster customer
loyalty through personalized interactions and services.

 Definition: CRM is a strategy that involves managing a company’s interactions with current and
potential customers by using data and personalized communication to enhance the customer experience
and build loyalty.

 Importance:

o Enhances customer satisfaction by addressing individual needs.

o Encourages customer loyalty and repeat business.

o Helps gather valuable customer insights to refine products and services.

o Helps to increase customer loyalty

o Acquires customer needs & wants

o Profiling of individual customer

o Develops communication channels

o Expands business operations

o Increase sales Increase efficiency

 Key Features:

o Data-driven marketing: Using data analytics to personalize offerings.

o Customer loyalty programs: Rewards for repeat purchases.

o Two-way communication: Engaging with customers through various channels like social media
and customer support.

 Example: Amazon’s personalized recommendations, loyalty programs (like Prime), and responsive
customer service are key examples of CRM in action.

Needs of CRM
 To facilitate marketing & sales process
  To provide better customer service
 To attract new customers
 To sell products effectively
 To reduce cost
 To understand customer needs & wants

Societal Marketing

Societal marketing is a marketing concept that emphasizes not just the satisfaction of consumer needs but also
the welfare of society. It focuses on ethical, environmental, and social responsibilities while balancing business
profitability.

 Definition: Societal marketing is a principle that holds that a company should make good marketing
decisions by considering consumers' wants, the company’s requirements, and society's long-term
interests.

 Importance:

o Promotes socially responsible products and practices.

o Balances profitability with social welfare.

o Builds brand trust and consumer loyalty by aligning with ethical practices.

 Example: Companies promoting eco-friendly products, reducing carbon emissions, or supporting social
causes like fair trade and sustainability (e.g., Patagonia and The Body Shop).

Holistic Marketing

Holistic marketing is an all-encompassing approach that recognizes the interdependence of various marketing
efforts. It focuses on viewing the entire business and all its stakeholders as a single, cohesive unit.

 Definition: Holistic marketing is a strategy that integrates internal marketing, integrated marketing,
relationship marketing, and socially responsible marketing to create unified and consistent marketing
efforts.

 Key Elements:

o Internal marketing: Engages employees and aligns them with the company’s vision and goals.

o Integrated marketing: Ensures consistency in all marketing communications.

o Relationship marketing: Builds long-term relationships with customers, partners, and suppliers.

o Socially responsible marketing: Balances profit-making with societal well-being.

 Importance:

o Ensures that all marketing activities are cohesive and aligned with business goals.

o Helps create a unified brand message and customer experience.

 o Facilitates strong relationships with all stakeholders (customers, employees, and society).

 Example: Apple uses holistic marketing by maintaining consistent brand messaging, promoting
innovation, engaging employees, and supporting environmental sustainability.

Integrated Marketing

Integrated marketing refers to ensuring that all marketing efforts are consistent across all channels and
platforms to deliver a cohesive brand message to the target audience.

 Definition: Integrated marketing is the practice of creating a seamless experience for consumers by
ensuring that all forms of communication and marketing messages are carefully linked together across
all channels.

 Importance:

o Ensures consistency in messaging across multiple marketing platforms (digital, print, social
media, etc.).

o Enhances brand recognition and recall.

o Creates a unified brand experience for customers, strengthening brand perception.

 Key Elements:

o Consistency in messaging: Across all advertising and promotional platforms.

o Cross-channel coordination: Ensures that offline and online marketing strategies work together
harmoniously.

o Brand coherence: The brand message and visual identity remain the same in all marketing
efforts.

 Example: Coca-Cola’s “Share a Coke” campaign was consistent across TV, social media, outdoor
advertising, and in-store promotions, providing a unified customer experience.

Internal Marketing

Internal marketing focuses on treating employees as internal customers, ensuring that they are motivated,
well-informed, and aligned with the company’s marketing goals.

 Definition: Internal marketing involves creating a culture where employees are engaged, understand the
company’s objectives, and are motivated to deliver high-quality service to customers.

 Importance:

o Ensures employees are well-informed about the company’s mission and marketing strategies.

o Motivates employees to deliver excellent customer service.

o Improves employee satisfaction and retention, leading to better performance.

 Key Elements:
 o Employee engagement: Ensuring that employees understand and support the company’s
marketing goals.

o Training and communication: Providing staff with the necessary tools, resources, and
information to align with the company’s vision.

o Internal branding: Promoting the company’s values and goals within the organization.

 Example: Southwest Airlines is known for its strong internal marketing, fostering a culture where
employees are empowered and encouraged to deliver excellent customer service.

Performance Marketing

Performance marketing focuses on measuring the success of marketing activities based on specific,
measurable outcomes, such as ROI, lead generation, and sales conversions.

 Definition: Performance marketing is a results-driven strategy that emphasizes measuring and

optimizing marketing campaigns based on specific key performance indicators (KPIs), such as return on
investment (ROI), customer acquisition costs, and lead conversions.

 Importance:

o Provides measurable results that justify marketing expenses.

o Focuses on accountability and optimizing marketing efforts.

o Allows businesses to assess what is working and allocate resources effectively.

 Key Metrics:

o Return on Investment (ROI): The revenue generated in relation to the marketing investment.

o Customer Acquisition Cost (CAC): The cost of acquiring a new customer.

o Conversion Rate: The percentage of leads that turn into paying customers.

 Example: Google Ads is a performance marketing tool where companies can track and optimize their ad
spend based on click-through rates, conversions, and cost-per-click (CPC).