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PRINCIPLES OF MARKETING (PART-1)
INTRODUCTION TO MARKETING
1. INTRODUCTION
Hello students, welcome to the series on marketing management. Today,
we are going to study
Introduction to marketing
In this we will cover:
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The
The
The
The
The
concept of marketing
definition of marketing
functions of marketing
channels of marketing distribution
importance of consumer
Marketing is a broad area which covers most of the activities related to
the sale of the product. Marketing is important because we want to run
businesses; we want to grow the businesses.
According to Patricia, “You don’t close a sale, you open a relationship, if
you want to build a long term successful enterprise”, so whenever you
get a customer or a client you need to build a kind of relationship, this
relationship has to sustain in order to crystallize sales, any business
organization, whether it is a retail sector or a manufacturing sector needs
the support and the impact of marketing in order to enhance the sales.
According to Robert Lewis, “Everyone likes or everyone lives by selling
something, so selling is a basis of the survival of human life itself, every
person who earns money gives something to the other.”
According to Bobbinet, “Affiliate marketing has made businesses
millions, an ordinary people millionaire”, so marketing is a function which
creates wealth into the market, it enhances the profits and the
profitability of the organization because it tries to portray the goods and
tries to increase the awareness the consumer where goods are sold to the
customers.
According to Lisa, “The secret is to make the time to immerse yourself in
the people, you are marketing to, to live them, breath with them and
study them from every angle”, so customer is that important, you have to
live with them, you have to grow with them and this time their need is
the passions and the desires, and suppliers, what they need, marketing is
important because it relates the growth and the development of the
product.
According to Melen,”Business has only two functions that are marketing
and innovation”.
Innovation is the creativity to design the products and give values to the
customers. The new development, the changing trends fashions and the
standards of living in the society are increased by the innovation taken
into the market and in the business concept.
The market portrays the goods in a new way and tries to crystallize the
concepts based on the needs and the desires of the people. Customers
are important, you have rich customers, you have mediocre customers
but we have to focus on customers who generate sales to us or who are
rich people associated with us, who generate profits to the organization,
they are the basis for the sustained growth of the organization.
According to Seth Gordon, “Your best customers are worth far more
than your average customers”
It needs
 Special focus
 Special attention
 Special selling promotions
In order to satisfy these customers, innovation is a concept which impacts
marketing is built on something that is wonderful and something that is
beautiful, it tries to design the things in a creative way, it gives the
beauties and the extensions to the values associated with the product
functions.
According to Bill Gates who is the richest man, he says “Being richest
man in the symmetry doesn’t matter to me, going to bed at night saying
we have done something wonderful that matters me most is important”.
So to design and to give something to society is the function of
marketing, the development, the standards of living, norms and practices
of standardized practices taken into the market have been the gifts of
marketing. Marketing has bestowed human life with the richest and with
the flamboyant products which display the status and the glamour
associated with human life.
Now this was all about the importance of marketing where we take the
introductory aspect to study how marketing impacts lives and businesses.
The technical aspect of marketing- where we will cover few standard
definitions.
According to The Charted Institution of Marketing, “The management
process responsible for identifying, anticipating and satisfying customer
requirements is probably marketing”.
According to Philip Kotler,”Satisfying needs and wants through an
exchange process is marketing”.
According to Learnmarketing.net, “Marketing is not about providing the
products and services; it is essentially about the changing needs and the
demands of the customers”,
The common aspect of all these definition is, we have to meet the needs
of the customers and provide benefits to the customers.
According to Philip Kolter, “A market consist of all the potential
customers sharing a particular need or want who might be willing and
able to engage and exchange to satisfy that particular need and want”.
The American Marketing Association “Marketing is the process of
planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy
the individual and the organizational goals”.
The Charted Institute of Marketing-“Marketing is the management
process responsible for identifying, anticipating and satisfying customer
requirements”.
IMA (2004)-“Marketing is an organizational function and a set of process
for creating, communicating and delivering value to the customers and
for managing customer relationship in ways that benefits the organization
and its stakeholders”.
The role of marketing in the society
The role of marketing is immense, it not only tries to impact the business
but it impacts the life and the standards of living. The life- process, the
standards display the practices into the market, the way the business is
performed.
The sharing of the knowledge and trends shaping the human society are
all the impacts of marketing. Marketing involves the investment of
organizational resources where we have to have an effective match to
the specification needs of the target market, where we have to design
some strategies and behavior which is based on the attainment of the
organizational goals and objectives. By the combination of all these, we
get the customer satisfaction.
Marketing is about customer satisfaction but it is the basis and the
survival of the business. Customer satisfaction is the most essential
function of marketing which needs a kind of an extra focus. The
marketing concept has key issues; the purpose is to
 create a customer
 Live with the customer
 Have a customer
Customer is the king of the business.
According to Theodrallevet, “The purpose of the business is to create
and keep a customer” so the importance of customer can be understood
by this line that how important it is to keep customers because if you
don’t have customers, generally the businesses are going to close.
2. THE CONCEPT OF MARKET
Customers are found in the markets so what is a market?
According to Kotler, “A market consists of all the potential customers
sharing a particular need who want or who might be willing and be able
to engage in the exchange process so as to satisfy the need and want.”
Customer is important because he survives in the market.
According to Kotler (2004) “A market consists of all the potential
customers sharing a particular need or who might be willing and be able
to engage and exchange to satisfy the needs or want”.
The market is that important because here the customers are living and
here the customers do share the concepts related to sharing of the
information and goods.
Types of market The consumer markets
 The industrial market
 The business markets
 The reseller markets
 The retailers and the distributor market
 The public markets, the government, the agencies, the departments
and the institutions buying goods and services
 The international and global market where we have standardized
goods and products sold
The various markets have different kinds of customers and the different
customers need different goods and services. According to the needs and
requirements, the price ratio also differs where the impact has to be
carried. Marketing is also in relation
1. The micro marketing aspects
2. The macro marketing aspects
The micro marketing aspect - it relates to the marketing of a company
The macro marketing - it relates to the whole economy.
The company resides into the nation and nation is economy. The economy
has to sustain in order to stand in the global standards where the brand
name of the country also becomes important.
Micro marketing for a company - Things you need to accomplish
The organizational goals and objectives.
At the macro level we need that the whole economy has to grow so the
whole economy and its flow of goods and services from producers to
consumers in order to earn profits and growth are important and this
enhances the concept of the macro-economic aspects.
Micro marketing is not just selling stuffs but it is also looking at what the
customers want.
How do we enhance the satisfaction? At the macro level we have to look
into the factors at the international and at the national level, looking at
how everybody in the country can have access to the things that they
need. The government has to be responsible in order to give those
particular needs and satisfaction and have faire system where the
consumers can use these products Macro marketing it is associated with
the social concept because the society becomes important and here the
social norms and the social justice and the ethics put a very big impact on
the social marketing.
3. THE SOCIAL MAREKTING
Social marketing- relates to this aspect, it is defined as “the design and
the implementation and control of the programs aimed at increasing the
acceptability of the social idea or a practice in one or more groups of the
target adopters”.
So we have to build a concept which revolves around the social practices
where we have to be fair in businesses, being fair in businesses is to give
the products and services of quality standards.
The customer must get the full return for whatever the value of the
money he has invested and this return and exchange of process and fair
value would sustain market and would sustain society.
The social marketing approach- has seven components related to
 Knowledge
 Desire
 Skills
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Optimism
Facilitation
Stimulation
Reinforcement
Knowledge -it is to build up ideas and to share. The information related
to the religion, the traditions and the product itself.
Desire- is the need and the want of the customer.
Skills -is your competency and ability to serve into the market.
Optimism -is to give the positive aspects to the customer or to provide
positive services and positive goods which can generate value to the
society, there has to be a concept where we have to differentiate what
alcohol can do in the society and what education can do to the society.
So we have weigh the balance in term what the society will benefit and if
the provider of the services is related to the better half or the better
provider the educational values related to the enhancement of the
growth of the society, he will be more accepted into the market and that
leads to the economic growth of the society.
Facilitation- it is to provide connectivity infrastructure where we need to
build up hospitals, schools, roads, railways, everything to facilitate
human life.
Stimulation - is to provide stimulus advertising and generate a desire and
to make people aware that how these facilities are important, how
education is important and how health is important or how money is
important through the banking services.
Reinforcement -is to build a positive impact feedback where the
customers should feel good that they have these services and the
accessibilities to these services, will enhance their growth in life.
Marketing and the brand -has enhancement where you try to increase
the association of product to the consumers and then give a right to the
customers using that product and the customer relates himself to the
organization the brand he uses.
Brand awareness -The percentage of the respondents having heard of a
designated brand i.e. aided or unaided way of hearing, brand awareness
is carried into the market by
 Advertising but it is also by the integrity of your actions
 The integrity of the character
 The integrity of the quality of services which you give to the market
builds up the positive faith of the customers in your minds.
Brand intensity-is the number of respondents and their intensity of
feeling positive or negative towards a specific brand.
Positive productsA. Products would enhance the ability in order to enhance the quality
of human life.
B. Quality of human life has to be enhanced.
C. The valuable services we give in order to generate growth.
D. A growth which is generally aware and empowered customer who
has the ability to define what is good for him.
The intentions to purchase- the intentions is
 The number of people who are planning to buy a particular
specified product or an object within the designated time period
 We have to decide and see what are
 The buying behaviors
 Or what is the consumer behavior
 And what are the desires and motivation
 On the basis of the importance of these factors, we are going to
calculate what has to be highlighted and what could become the
unique selling proposition of the product, the importance of factors
relates the intensity of the influence of each factoring order to
crystallize a utility.
The markets are classified on the basis of the demographic
characteristics where the brands have to relate to each group, the brand
has to speak to the demographic details of the market, the demographic
details talk about the
A. Age
B. gender
C. occupation
D. status
E. income level
And sort of the individuals providing the information, so these are the
micro level segmentations of the market where the brand has to
communicate to each segment according to the relevance and it has to
satisfy the desires and the perceptions required and needed by each
group.
4. MAREKTING AND BRANDING
Branding- becomes important because it relates to the customers
perceptions
According to Cape ferret “Branding is not based on what goes on with
the brand but rather what goes in”. It should be an investigation of the
brands very substance, the facets of brand identity, so it is important
that the concept of brand relates to the identity and the impact it carries
in the minds of the customers. The businesses need to focus on the
vision, the values and the immediate corporate values; we need to have
the long term goals in order to crystallize the benefits given to
customers. The customers need to be related to the company in order to
have loyalty and an impact in terms to increase relationship with the
company.
Brands become important because brands relate to a personality. Identity
is important to the market. Personality relates to the human qualities and
the abstract values associated with the persona of the brand. It is the
product which gives
The benefits
 What the customer wants not only the physical satisfaction
 Utility become important
 The abstract association with the product
 Where the status and the goal of a person to achieve and to carry
particular product becomes status symbol in the society.
 It is the want to increase a likelihood that the customer would
relate to the brand and want to be a part of it because the
successful brand makes the customer successful, it speaks about his
achievements and his goals achieve to a higher level in life
 The competitive differentiation of the product into the market
would make the customer feel apart from the general public
 The unique benefits of the product which communicate to the
customers in terms where he feels inflated.
 We need to compete with the brands in the market and we need to
differentiate the added benefits given to the product or it is the
added advantage increase relations to the customers. Price is a
major identity but still how we position and portray the brand in
the market and how do we relate to the customer’s emotions
becomes very important.
 Now here see the brand pyramid where we have the components of
the brand, we have
 The functional benefits of the brand
 The emotional benefits
 The personality
 The values
 The essence.
 The functional benefits of the brand would speak about the product
benefits the utilities given to the customers, thesis the total
satisfaction their performance of the product given to the
customers
 The emotional benefits- relate to the association of the product in
terms where the desires and the inner perceptions of the customers
are satisfied, it is association of the brand where the person’s
personality and the social norms and terms of acceptance.
 Personality is a reflection of the brand a person where education,
achievement, liberation and inner feelings related to personal
growth become important and the way the brand portrays this
image gets accepted by the customers
 Values are the acceptance the social norms related to religion,
culture and society become important.
 The essence of brand is the self-actualization to crystallize the
values associated with the human survival of being achievement
oriented and of being ethical in the society.
So brand is a concept which relates to marketing in terms where markets
have to be managed. Marketing management apart from brands speaks
about the growth of the product in society where innovation, creativity
and other strategies to design the product become important.
Marketing management- the innovation strategies where the branding
tries to give the new product to the society because the trends are
changing, the times are changing and the customer needs an attitude also
change with the changing political, socio scenario the money invested
into the market. We have a varied customer where education and the
impact of media change fashions and the trends. So we need to innovate
and grow into the market.
The innovation strategies relate to
 The product development into the society
 Build up sustainable business model where the technological impact
on the product would differentiate the product and give a life that
associates with the better performance of the product.
 We have an impact where the cutting edge of the technology
 We need to have strong research department where this impact of
technology has to be met out
 We need to have products which are updated in relation to the
changes happening into the market
Types of products
A. Pioneers
B. Followers
C. Late followers
According to this, we need to relate to the segments of the market and
design where the customers invest more in the products which are
designed in a better way and we have updated trends and technological
features associated and people are ready to invest in these categories.
This innovation and growth will also give edge product differentiation and
relating to the branding of the product, the growth strategy relate to the
horizontal integration, the vertical integration, the diversification and
the intensification.
The Integration- is to capture on the value chain i.e. if we are in textile
industries and we are manufacturing the cloth, the forward integration
would be to give the designer clothes and to capture the market the
complimentary services given to the customers, this is to capture the
total product line in order to enhance the total infrastructure required to
sell to the customers and to capitalize on the cost aspects
The aggressive strategies is to
 Build on the market
 Hold on the market
 Harvest.
The building or the holding of the markets cannot be crystallized unless
and until you have a higher sales turnover. The higher sales turnover can
only be achieved if we try to integrate the value chain and the
distribution channels and we work on these aspects it gives sustainable
edge into the market.
5. THE FACTORS IMPACTING THE MAREKT
The research- the industry and the market modification relate to the
various trends to be studied, not only at the micro level but at the macro
level. The acquisition of the corporate intelligence services relates to the
broad range of topics to be studied, when we talk about the marketing is
a function related to the survival of the organizational growth and
sustainability. The macro economic factors impacting the product
research relate to
 The economy
 The government
 The legal
 The technological
 The ecological
 The socio cultural factors
These factors are important because marketing has to relate and has to
sustain the impact of these factors. The economic growth, the recession
and the inflation, in the society, can impact the product cost and services
and according to the needs of the society we need to generate the prices
of the product which relate to the consumers purchasing power.
The government impacts:
 Changing rules and regulation
 Design the product and services
 Legal aspects the updating
 Changing norms of the society have to be related to the product
growth
 Technological aspects
 Changing technology
 Impact of technology makes the product outdated
we have to give innovative and designer products to the customers like
talking about product like using CD’s would be difficult when we have
MP3’s in the market, so the customers, when get used to higher products,
it is difficult to sell the outdated products
Ecological is to relate to:
 The environmental value
 The quality and the green marketing become important.
Socio cultural impacts relate to:
 The cultural values
 The changing norms of the society
The industry research also has to focus on:
 Market analysis which is analysis done at the detail level the market
definition to which the product is related
 Market size i.e. the market share you want to achieve in the market
 the market segmentation relate to
 The demographic variables of age, gender and education,
 The industry structure is
 Impact of the various competitors existing into the industry.
The Potter’s model gives forces of competition:
1. Competition from the buyers
2. Competition from the suppliers
3. Competition from the substitutes
4. Direct competition.
So these forces of competition impact the differentiation of the services
to be needed in the market, we have the supply chain i.e. the length of
the supply chain, what impact, the cost factor, related to the product
where it reaches to the consumers.
We have the competition at the market share in terms where we need to
study the competitor’s strength and their investment into the market.
The competitor’s strength and weaknesses will design our strategies to
portray and position the product into the market. The market trends, the
changing attitudes of the customers and the fashion have to be studied in
order to position and design the products. So, this is impact where
market has to integrate, all the aspects related to
 People
 product
 Services
We have shown over here model which relates to marketing impacts.
Marketing is concerned with people who are
 Designer
 Consumers
So both have to relate in terms to the perceptions what is needed into
the society and who are the providers. So people and people become
important, here we have
The suppliers- to whom we relate to buy the products and services so
they are the investors, the suppliers supply the innovative products.
Customers - give the building up of the muscular brands into the society.
Community- the powerful co-markets and systems develop infrastructure
and society which is empowered and which is highly standard oriented in
products and services using, a society which is material oriented and
educated, uses advance services and products. The standards of society
can be reflected by the brands used by a particular segment of people.
Marketing is a philosophy associated with human life.
According to Peter Ducker-“Actually, marketing is not just enough to
have a strong sales force and to build interest into market.”
Marketing is not only much broader than selling, it is not specialized
activity at all, it is the whole business seen from point of view of its final
result that is from the customers point of view, so marketing is a
philosophy which is based on the customer.
Customer- customer is a part of society, so marketing reflects the
society; it reflects the total human values religion, culture, education
and the usage pattern of the society, the inner needs and the desires of
the people are reflected by kind of the products and services they use.
According to Raffle veldt immersion, “if you make a better mouse-trap,
the world will beat apart to your door steps”.
If you have better products and services, the customers will come to you,
the acceptance will be there and you will be person who will be
associated with higher values of acceptance into the society. Standard
can be developed into the market if you have quality products and
innovative products related to the latest developments into the society.
Now when we talk about the marketing concept in type of a moving
product, this relates to the selling concept which was a traditional
concept taken into the society.
The traditional organization sustains that they have to manufacture the
goods and give to the consumers and through this process they have to
earn profits.
Supply chain -we have the factory that is manufacturing the existing
products, the selling, promotion, and sales and through this sales volume,
get the profits, so this is the very traditional and the concept of
marketing
Modernize concept of marketing- which changes, we have a
 Market
 The customer wants
 The integrated efforts the marketing
 Need to attain profits to customer satisfaction.
 So we have to study the market in the backward terms, you have to
do
 R&D and research
 The analysis of the industry
 The market analysis desires
 On the basis of those desires you need to do an investment on the
development of the new products and services
The modern marketing concept- is not only based on manufacturing and
selling but it is based on
 The analysis what the consumers want
 And if the satisfaction is there and if the relation is there, the
profits are going to be generated
 Work on the customers
 Try to work on their needs and wants
 Design products according to their desires.
 The marketing concept is shown over here where
 The customers become important
 The senior managers who had to be related to the employees
 The employees use to satisfy the customers
 The customers are at the top priority
The customer goes up the pyramid and the marketing philosophy designs
the functions and the systems according to the needs of the customers,
so these managerial decisions are aimed at the philosophy to maximize
the relational aspect and to give an association to build up a persona in
relation to the society and to the segment to which you relate.
Marketing becomes important because we are in a business scenario
where we need to build awareness relate to product.
According to Barbara Toffler-“When we rationalize a decision, we have
made or an action we have taken”
We often give creditable although often and through reasons,
It is an intrinsic response driven by a need for physiological selfprotection
It is identity which you build where you have action oriented desire to
give the products and services to the market in relation to the concept
for the segments of the growth not only to the human survival but it is
also the growth related to the economic aspects where the total
designing of the infrastructure and the total profits for the economy has
to be generated by the businesses, we take into the society.
We need to study that marketing is not only earning profits but it is
something beyond that. Profits are only a part of sustained growth; where
we need to survive into the market but the values and the ethics speak a
lot about the functions and the desirable aspects of the corporations into
the society.
We have sales people who directly communicate to the customers but it
is communication which is communication from brand to the customers
and this brand has to speak about the values and the ethics of the
organization to the society.
According to Ron Willingham-“A sales person’s ethics and values
contribute more to sales success then to the techniques and the
strategies”
so it’s not only talking about the marketing strategies in a way we relate
to the investment and the profits and cost and returns but it is beyond
that we connect to the human values, a kind of unemotional aspect
where we try to give sustainability fair ethics to the businesses, we have
life beyond a philosophy and we have businesses beyond profits, which
talk about much larger concept given to the customers to relate to the
sensitive human values of being fair, just, fine and being lovable to
people.
The mission in the value statement of the organization is reflected by the
people who sell products and who give products. The products speak
about the promises, the hopes, dreams and the desires of many people.
They relate to the heart of the people and give satisfaction to the soul.
According to Minolta- life insurance company- “We keep our promises, in
our all activities we adhere to the highest standards of ethical conduct,
so giving security giving financial background to the person’s existence
and to cover all the risk is the essence and the duty of the marketing
organizations and business organizations to give the polish services to the
customers.
We have to look to the problems of the people and try to generate
solutions to the people
According to Bob Green- this is about salesman- “I see them everywhere
I have come to understand, they are among the bravest of us, they face
on daily basis, what we call dread of the most, the flat cold rejection.”
Salesman is that bravest soldier who fights with all the rejections of the
customers, who fights with all those of the customers and still tries to
bring smiles to the customers and give the products and services which
are so valuable to the society. A sales person is the only soldier who tries
to update the economy to generate the GDP and the economic growth to
the society. They are the people who generate the happiness to the
growth, the business sustainability. Most of them may never have
imagined that they would end up doing precisely this but as long as there
is life and as long as there are businesses, there will be sales people who
will connect and collaborate with customers brings smiles even in spite of
their rejections and in spite of their nose.
The functions of marketing-relate to the
 Buying
 Selling
 transporting
 Touring
 Grading
 Financing
 Risk taking
 Market information building
So these functions relate in terms where the total business is carried not
only from the designing of the product but ultimately taking the product
to the customers and in this total process, we need to transport, we need
to store and we need to build up the distribution channels. The
distribution channels create relationship with the customers for creating,
maintaining and enhancing the strong value laid in relationships.
Marketing also relates to the entrepreneur growth and professional
discipline approach to enhance the product growth in the market. The
orientation towards marketing has to be evaluation from production,
selling to the marketing concept, now here when we talk about the
selling concept, the starting point where we have shown you the markets,
then profits being built up but the selling concept where we have the
factory and the profits, now when we talk about the market here, we
have the customer needs become important, so customer becomes the
basis of the focus and the survival of the total business scenario.
Marketing management (Philip Kotler)-carries that process which is
planned and executing, so marketing management is the process of
planning and executing and conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational goals”.
We have the marketing mix in terms build up where we have the
 Product
 Price
 Promotion
 Place
Marketing serves the society. The functions relate to the customers.
Customers are the basis of marketing. Everything associated with the
business relates to marketing because that makes the product connected
to the customer. Products give values to the society. We have to build
brands.
According to Kara-“When you serve the customer better, there is always
a return on your investment”, so better brands build better profits in the
market.
According to Lewis-carrel- “One of the deepest secrets of life is that all
really worth is doing what is to do for others, so brand has to perform and
give satisfaction to the others’ and then only we can talk about success
into the market.
According to Tony, “being on par price and quality not only wins you or
gets you the game, service wins the game”.
So customer is important and to build service sector becomes important.
Products and services finally speak about the winning strategy where
everything related to the satisfaction of the customer is the competitive
edge into the market.
I hope the students must have understood the concept of marketing and
the impact of marketing on society, thank you students.