• MARKET = TRADITIONAL SENSE= PLACE WHERE

BUYERS N SELLERS MEET FOR EXCHANGE

• MARKET= MODERN SENSE= BUYERS( ACTUAL N
POTENTIAL )
• MORE BUYERS = GOOD MARKET
• LESS BUYERS= NO MARKET
MARKET IN TRADITIONAL SENSE

– The word market is derived from a Latin word, “Marcatus”,

which means a place of business, in other words, it is a location
where buyers and sellers of goods assembles to facilitate
exchange, market thus refers to a place.
– 1. Product market (Pepper market, Vegetable market, share market
etc.)

– 2. Geographical market – (Local market, national market,

international market)

– 3. Based on types of buyers (Consumer market and industrial market)

– 4. Based on quantity of goods (Wholesale and Retail market)

– Market = ?
– Demand = ?
– Market= demand
– Demand= high= buyers are more= market
– Demand= less= buyers are less= market
MARKET IN MODERN SENSE

The term market has a wider meaning; it refers to a set of

actual and potential buyers of a product or service. For
example, we say the market for car is booming, we are
referring to the enhanced collective demand for cars by
its actual and potential buyers.
 Marketing = selling
– Big process
– Starts before the product has produced
– Continues even after the product is sold to customer
– Search the target market( kids clothes)
– Needs and wants
– Product produce= ( package, labelling)
– Price
– Distribute( transportation, warehouse, middleman)
– Promotion( advertising)
– Customer care service, grievance call, after sale service.
– Amazo or flipkart ?=== amazon
– Marketing = aim
– Best customer satisfaction= loyal= switch.
– Product= satisfy no= re purchase=?long term survival ?
– Company= profit max by customer satisfaction= marketing main aim
MEANING OF MARKETING
– Traditionally marketing was defined in terms of those functions or
activities which facilitate transfer of goods and services from
producers to ultimate consumers.(MARKETING= SELLING)
– It included product designing, packaging, branding,
advertising,warehousing, pricing and selling.
– Basically it was consisdered as a post production activity only.
But marketing is not merely a post production activity( after production).

Rather it also includes various activities which are performed before the
goods are produced and continue even after the sale of goods.
Before+ during+ sold====marketing
For example- Identifying customer needs, developing appropriate market
plans, designing suitable package, deciding the brand name are
performed before actual production.

It also includes after sales service, handling customer complaints,

maintainence services to bring repeat sales and to built the brand
loyalty.➔ after selling.
 MARKETING

– In modern times, emphasis is placed on describing marketing as a social process.

– Marketing is a process whereby people exchange goods and services for money or
for something of value to them.
– It is a social process where in people interact with others, in order to persuade
them to act in a particular way, say to purchase the goods or a service rather than
forcing them to do so. BINGO
– It is exchange of goods and services from producers to consumers in such a way
that maximizes customer satisfaction.
PILLARS OF MARKETING CONCEPT

• IDENTIFICATION OF MARKET OR CUSTOMERS WHO ARE CHOSEN AS TARGET. (GIRLS)

• UNDERSTANDING NEEDS AND WANTS OF THE TARGET MARKET.
• DEVELOPING GOODS OR SERVICES TO SATISFY NEEDS OF THE TARGET MARKET.
• SATISFYING NEEDS OF TARGET MARKET BETTER THAN COMPETITORS.
• DOING ALL THIS AT PROFIT.
 FOCUS OF MARKETING

– THUS THE FOCUS OF MARKETING CONCEPT IS ON CUSTOMER NEEDS AND THE

CUSTOMER SATISFACTION BECOMES THE MEAN TO ACHIEVE FIRM OBJECTIVE
OF MAXIMISING PROFIT.
– THE PURPOSE OF MARKETING IS TO GENERATE CUSTOMER VALUE OF PROFIT.
– PRODUCT= ADVERTISING= DISSAPPOINTMENT= ?? GOODWILL, REPEAT PURCHASE ??
– COMPANY== MKT= LONG TRM
– “Marketing is the performance of business activities that direct the flow of
goods and services through producers to consumers or users.” – American
Marketing Association

– According to Philip Kotler – “Marketing is a social 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.”
– VALUABLE= WORTH IT
FEATURES OF MARKETING
•Need is a state of felt •Market offering refers to
deprivation a complete offer for a
•Wants are culturally product and service.
defined that are Having certain features
potential satisfiers of like size, quality, taste
needs CREATING
NEEDS AND etc. at a certain price
MARKET available at a certain
WANTS
OFFERING location/outlet

•Refers to the process

EXCHANGE CUSTOMER • A product is
through which two or MECHANISM purchased only
VALUE
more parties come when it is
together to obtain the perceived to be
desired product or giving greatest
service from someone, benefit or value for
money to the
by giving something in buyers
return
 Marketing process helps the people in
1. Needs and getting what they want.
Wants The focus of marketing is on the
satisfaction of their needs and wants.
A marketer’s job is to identify the needs of
consumers and develop products or
services accordingly.
Market offering means providing complete
2. Creating a information about the product like size,
market offering quality, taste, price, availability etc.
Good market offer is made after
(product) identifying the customer needs and wants.
EG- COMPANY OFFERING 15 VARIETIES OF
PHONE RANGING FROM 6,000 TO 15,000
IN ALL PARTS OF THE COUNTRY.
 Consumer buys a product based on its
3. Customer value to satisfy their need. So the
value(benefits) marketer should always add value to his
products, so that the customer prefers
it. He will buy when value offered > cost
of product. BENEFIT>COST, 15>10
It refers to a process through which two or
4. Exchange more parties come together to obtain the
desired product or service from someone, in
Mechanism return making a payment to the other.
It is the essence of marketing.
EG- PERSON FEELING HUNGRY MAY GET FOOD
BY OFFERING TO GIVE MONEY.
a. Two parties – buyer and seller.

b. Offering something – Seller offer

a product and the buyer, money.

c. Ability to communicate – Each

party should communicate and
deliver the product or service.
d. Freedom – Each party has the
freedom to accept or reject the
offer.

e. Voluntary – Acceptance or
rejection of the offer must not be
on compulsion, should be voluntary
What can be marketed???
Products Mobile Phones, clothes, TV etc.
Services Insurance, Health care, Service of doctors, CAs, Online trading etc.

Ideas Blood donation by Red Cross, Polio vaccination , Swachh Bharat Abhiyan etc.
Persons Political parties for election of candidates.
Place Tourist centres like Udaipur ,Singapore, Pilgrim places etc. (God’s own
country by Kerala Tourism)
Experience Lunch with a celebrity, mountaineering , horse riding, movies etc.
Events Sports events, Fashion show, Horse race, Film festival etc.

Information Marketing information, Technology information etc. e.g., T V Channel rating

Organizations Companies communicate with people. E.g., Philips says “Let’s make things
better” , TATA, Maruti Udyog etc.
 Marketing
Management
Activities in marketing

– Target market
– Needs n wants
– Developing the product= branding, advertise, packaging, price
– After sale service
– Transportation
– Managing all these activities= MARKETING MANAGEMENT.
– It means management of marketing function.
– It refers to planning,organising,directing and controlling
the activities which facilitate exchange of goods and
services between producers and consumers.➔
MARKETING
– It is not only concerned with creating demand but
managing the demand effectively as per the situation in
the market.
– MARKETING MGT= CREATE DD+ MAINTAIN DD
– DEMAND CREATE
– MAITAINING DEMAND
– JOSHUA = BUSINESS= WOLLEN CLOTHES= WOMEN+ MEN= 18 A BOVE
– QUALITY= CREATE DEMAND= MARKETING
– GURSIMAR=== OUT OF STOCK=== MAINTAINING DD ???= ENSURE REGULAR
SUPPLY OF UR PRODUCT.
1. CHOOSING THE TARGET For a text book publisher the target
market is a group of teachers and
MARKET schools, colleges and universities.

2. CREATE THE DEMAND FOR Here the marketing management should

try to increase the demand for their
YOUR PRODUCT products by ensuring the customer
satisfaction,
1. CHOOSING THE TARGET MARKET so that more
customers will be attracted.
S

3. CREATE SUPERIOR VALUES In order to attract more customers, the

marketing management
FOR THE CUSTOMERS ( can add more superior values to the
EXTRA BENEFIT) product or service. E.g., free insurance
and maintenance on purchase of a
vehicle.
– MARKETING=== WISH = APRODUCT= ADVERTISE= SERVICE= KUD PURCHASE
– LESS NEED TO FORCE THE CUSTOMER
– SELLING CONCEPT= PURSUE= Y0U FORCE THE CUSTOMER TO BUY THE
PRODUCT= BEND THE CUSTOMER
– MARKETING CONCEPT===== LESS NEED FOR SELLING = LESS NEED TO FORCE
THE CUSTOMER
MARKETING PHILOSOPHIES
Production concept

– Focus= MAXIMUM PRODUCTION = QUANTITY OF PRODUCT

– FOLLOW= EK CONCEPT BENEFIT YOU GET= ECONOMIES OF SCALE.
– ECONOMIES OF SCALE= WITH INCREASE IN PRODUCTION , PER UNIT COST WILL
FALL.
– PROFIT MAX= MAX PRODUCTION.
– FOCUS= AVAILABILITY PLUS AFFORDABILITY OF PRODUCT
– MORE AVAILABLE PLUS POCKET FRIENDLY= MORE PPL WILL BUY YOUR
PRODUCT.
PRODUCT CONCEPT

– FOCUS ON QUALITY OF THE PRODUCT.

– BEST QUALITY, SUPERIOR PRODUCT, BEST FEATURES= QUALITY CONSCIOUS
– TRY TO ADD NEW FEATURES TO YOUR PRODUCT = BETTERMENT=
IMPROVEMENT OF PRODUCT
– PROFIT MAX BY PROVIDING SUPERIOR VALUES TO UR CUSTOMER
– QUALITY
SELLING CONCEPT

– FOCUS= SALES MAXIMISATION

– PROFIT EARNING BY MAX SALES
– FORCE THE CUSTOMER
– WHATEVER IS PRODUCED THE PRODUCER TRIES TO SELL IT
– STRATEGY OPT= MORE N MORE FOCUS ON PROMOTION OF YOUR PRODUCT
– HEAVY PROMOTION N PURSUE= CUSTOMER WILL BE AWARE OF UR
PRODUCT= HE WILL PURCHASE IT.
MARKETING CONCEPT

– FOCUS- CUSTOMER SATISAFACTION= PROFIT MAX

– STEPS=➔
– TARGET MARKET
– NEEDS N WANTS IDENTIFY
– PRODUCE PRODUCT
– ADVERTISEMENT
– AFTER SALE SERVICE
SOCIETAL/ SOCIAL
MARKETING CONCEPT
– MARKETING CUSTOMER + SOCIETY WELFARE.
– CUSTOMER SATISAFACTION + SOCIAL WELFARE
– TREES, POLLUTION == ENVIRONMENT
– ENVIRONMENT FRIENDLY TECHNIQUE OF PRODUCTION.
– EMERGING CONCEPT
INTEGRATED MARKETING

– MARKETING CONCEPT + SOCIETAL MARKT CONCEPT

– FOCUS ON ====4Ps
– Research, need identification
– Product =( packaging, branding , labelling)
– Price set=
– Place (distribute = mode of transportation )
– Promotion (techniques )
SOCIAL MARKETING/
SOCIETAL
– MARKETING CONCEPT + TAKE CARE OF THE SOCIETY ( ENVIRONMENT )
– TREES, ENV, HEAVY CHEMICALS
– SATISY YOUR CUSTOMER PLUS TAKE CARE OF THE ENVIRONMENT.
– BEST AND NEW EMERGING CONCEPT.
 MARKETING CONCEPT

– TARGET MARKET CHOOSE( WOMEN= CLOTHES)

– NEEDS AND WANTS IDENTIFY
– PRODUCT PRODUCE
– ADVERTISE
– EXTRA BENEFIT
– AFTER SALE SERVICE
– PROFIT
– AIM==➔ CUSTOMER SATISFACTION
– NO NEED TO FORCE THE CUSTOMER TO BUY THE PRODUCT.
SELLING CONCEPT

– FOCUS= MAXIMISATION OF SALE OF THE PRODUCT.

– YOU FORCE THE CUSTOMER TO BUY THE PRODUCT WHATEVER IS PRODUCED.
– STRATEGY= ?? PROMOTIONAL TECHNIQUES
– HEAVY PROMOTION= HEAVY ADVERTISEMENT
– MORE PROMOTION= MORE DD
– PROFIT MAX BY SALES MAX
 Production concept
– Maximum production of the product.
– Benefits= ECONOMIES OF SCALE
– MACHINE= 1,00,000
– MAXIMUM CAPACITY= 10,000
– CURRENT DD= 5,000= PRODUCTION
– PER UNIT COST= 1,00,000/5,000= 20
– FULL PRODUCTION= 1,00,000/10,000=10
– SO WITH INCREASE IN PRODUCTION➔ PER UNIT COST HAS FALLEN.
– AS A PRODUCER= 5, 10
– YOU WILL PREFER= 5
– EASILY AVAILABLE PLUS POCKET FRIENDLY= PROFIT MAX
– OUT OF ST0CK=
PRODUCT CONCEPT

– FOCUS ON THE QUALITY OF THE PRODUCT.

– SUPERIOR QUALITY
– BETTER QUALITY= CUSTOMER= QUALITY CONSCIOUS WILL PURCHASE YOUR
PRODUCT
– BETTER FEATURES WE PROVIDE TO CUSTOMERS.
PRODUCER= LESS COST

– ECONOMIES OF SCALE
– MACHINE= 1,00,000
– MAX CAPICITY= 10,000
– CURRENT= 5,000
– PRODUCE= 5,000
– PER UNIT COST= 1,00,000/5,000= 20
– MAX CAPCITY= 1,00,000/10,000=10= PER UNIT COST
– MORE PRODUCTION= REDUCTION OF PER UNIT COST
 INTEGRATED MARKETING
– NEEDS= PRODUCT DEVELOP= BRANDING, PACKAGING
– PRICE SET
– DISTRIBUTION= MODE OF TRANSPORTATION
– PROMOTION= TECHNIQUES ?
– PRODUCT
– PRICE
– PLACE( DISTRIBTION)
– PROMOTION

– 4 Ps of marketing
Means=== best quality, best services
end= customer satisfaction, profit max

– MEANS= HOW YOU WILL DO ? SMART WORK ? 4 HOURS = HOW YOU WILL ACHIEVE THE
TARGET ?
– I HAVE TAKEN A CAB.
– TARGET= HOW YOU WILL ACCOMPLISH / WHAT YOU WILL DO TO COMPLETE II.
– NIGHT STUDY
– END= RESULT= 90 PERCEMNT= ASSIGNMENT COMPLETION
– TO REACH SCHOOL= I REACHED ON TIME
FUNCTIONS OF MARKETING

GATHERING AND ANALYSING MARKET INFORMATION/MARKET RESEARCH

MARKETING PLANNING
PRODUCT DESIGNING AND DEVELOPMENT
STANDARDIZATION AND GRADING
PACKAGING AND LABELLING
BRANDING
CUSTOMER SUPPORT SERVICE
PRICING OF PRODUCT
PROMOTION
PHYSICAL DISTRIBUTION
TRANSPORTATION
STORAGE AND WAREHOUSING
MARKETING MIX
 Marketing mix
– Marketing main focus= profit max by customer satisfaction.
– In order to fulfill this objective
– Firms needs to manage 4 factors= 4ps of marketing= MARKETING
MIX=PRODUCT, PRICE, PLACE, PROMOTION.
– IF ANY FIRM WHO MANGES THESE 4 PS EFFECTIVELY WILL BE ABLE TO
ACHIEVE ITS OBJECTIVE.
– MARKET STUDY==TREND==CUSTOMER= PRICE= EXPECTATIONS=SWOT
ANALYSIS
– MARKETING MIX = ELEMENTS= 4 PS= PRODUCT, PRICE,PLACE
AND PROMOTION.
– PROMOTION MIX= ELEMENTS=ADVERTISING, PERSONAL
SELLING, SALES PROMOTION AND PUBLIC RELATION.
DEFINITIONS
 4 P’S OF MARKETING
MIX
– PRODUCT
– PLACE
– PRICE
– PROMOTION
 1.Product
Product means goods or
– services or anything of value which is offered for sale in the
market.
– It is the most important component of marketing mix, which
involves planning, developing and producing the right type of
goods and services needed by the consumer.
– BRANDING
– PACKAGING
– LABELLING
 Refers to the process of giving a name, sign, symbol or
a combination of all to a product for creating its
identity.
 Terms related to branding
BRAND: Is a name, term, sign, symbol, design or some other
combination of them for identification of a product
Ex: LG, Reebok, Volkswagen etc…
BRAND NAME: The part of the brand, which can be spoken
 Maggie, Lux, Ambuja Cement, etc…
BRANDMARK: The part of the brand, which cannot be spoken
 Maharaja sign of Air India, Red and Blue ball of Pepsi, apple sign of
Apple
VARIOUS BRAND MARKS
– Trade mark – It is a legal version of a brand. It is a brand name or
brand mark registered with legal authorities. Once it is registered it is
legally protected and others cannot use this as a duplicate.

– Generic name – It means the name of whole class of a product. E.g.,

soap, book, pen, camera, paracetamol etc.
BRAND CONTD…
– Short and simple
– Suggests the benefit of product
– Distinctive
– Adaptable
– Versatile
– Legal protection – the brand should be capable of being registered.
– Staying power --- name chosen as brand name should not get outdated. (“3G
Mobiles” is an outdated brand.
 Packaging refers to the designing and developing the
package or wrapper for a product.
 Types of packaging

– 1.Primary packaging – The immediate container of a product is called primary

packet. e.g., the plastic cover of a shirt, tube for shaving cream, tooth paste and a
bottle for horlicks.
– 2.Secondary packaging – It gives an additional protection for the product. E.g.,
the card board box for a tooth paste tube. It is generally thrown when we begins
to use the product.
– 3.Transportation packing – It is a further packaging of products for storage and
transportation. E.g., a toothpaste manufacturer may send the goods to the
retailers in a large box containing 100 pieces.
 Labelling refers to designing and developing the label to be
put up on the package. It is the carrier of information about
the product like name of product, name and address of
manufacturer, ingredients , how to use, expiry date, MRP etc.
 FUNCTIONS OF LABELLING
1. Describe the product and specify its contents and it may give its
usage, precautions to be taken etc.eg- Package of maggie specifies
procedure of cooking.
2. Identification of product or brand - eg we can identify cadbury
chocolates out of others.
3. It also gives information about the name and address of
manufacturer, net weight, MRP etc.
4. Grading of products such as Green label for 1st quality, Yellow for 2nd
quality and Red for 3rd quality.
5. Helps in promotion of products - a well designed label will catch the
attention of consumers. “Free Tooth Brush inside”, “Save Rs.10/-“, “Free
Mobile Recharge Rs.50/-” etc.
6. Providing information required by law, e.g., statutory warning on the
package of cigarette, “Smoking is injurious to health” etc.
STANDARDIZATION
STANDARDIZATION AND
GRADING CONTD…
EXAMPLES OF STANDARDIZATION AND
GRADING
 SUMMARY
– 4Ps of MARKETING
– PRODUCT ---- BRANDING, PACKAGING AND LABELLING
– PRICE---- FACTORS AFFECTING PRICE OF PRODUCT.
– PLACE/PHYSICAL DISTRIBUTION---- TYPES OF CHANNELS (ZERO LEVEL, ONE
LEVEL , TWO LEVEL, THREE LEVEL AND COMPONENTS OF PHYSICAL DISTRIBUTION.
– PROMOTION- ADVERTISMENT, PERSONAL SELLING, SALES PROMOTION.
Price of a product is the amount of money paid by the buyer (or
received by the seller) in consideration of purchase of a product
or service. Pricing is the function of determining product value in
terms of money before it is offered to consumers for sale.
Factors affecting price
determination
– Product cost –
– Utility and demand
– Extent of competition –
– Government and legal regulations –
– Pricing objectives –
– Marketing methods used
(EXPLANATION IN NOTES)
3.PLACE (PHYSICAL
DISTRIBUTION)
– In order to ensure availability of products at the right
Place, in right quantity at right time, so the customers
can purchase it.
– Two factors require consideration; a) they are Channel
of distribution(wholeseller and retailer).
b) Physical distribution(managing inventory, order
processing, warehousing ).
ZERO LEVEL------------------------

ONE LEVEL------------------------

TWO LEVEL------------------------

THREE LEVEL----------------------
COMPONENTS OF PHYSICAL
DISTRIBUTION
– All activities connected with informing and persuading the
customers are collectively known as promotion mix.
– ELEMENTS OF PROMOTION ARE;
– Promotion mix= advertising, sales promotion, prsonal selling and
public relation.
– Marketing mix= product, price, place and promotion.
– Product mix= branding, packaging and labelling.
– Branding= name, sign, picture, logo
– Packaging= decide the container in which we will be packging the
product.
– Labelling= information to be put on the package.
– Promotion mix= advertising , personal selling , sales promotion
public relation.
– Marketing mix= product, price, place and promotion.
– Product= 3 decisions/ elements= branding, packaging, labelling