Module 1 – Introduction to Marketing

Contents
Marketing Concept and its Evolution - Nature, Scope and Importance of Marketing -
Role of Marketing in Modern Business - Marketing Mix: Four Ps-Extended Ps -
Marketing Information Systems - Strategic Marketing Planning – An Overview.

Contents
Marketing – Meaning & Definition .................................................................................................... 1
History / Evolution – Various concepts of marketing ..................................................................... 2
Nature of marketing ............................................................................................................................ 6
Scope of marketing .............................................................................................................................. 7
Importance of marketing .................................................................................................................... 8
Role of marketing in modern business .............................................................................................. 8
Marketing mix ...................................................................................................................................... 9
Marketing Information System ........................................................................................................ 11
Strategic marketing planning ........................................................................................................... 12

Marketing – Meaning & Definition

Marketing is the process of identifying customers and "creating, communicating,
delivering, and exchanging" goods and services for the satisfaction and retention of
those customers for a return.
Dr. Philip Kotler defines marketing as “the science and art of exploring, creating and
delivering value to satisfy the needs of a target market at a profit”.
The history of marketing details the evolution of various concepts of marketing:
History / Evolution – Various concepts of marketing

1. Production concept
❖ Production concept entails concentrating effort on increasing manufacturing
efficiency and guaranteeing the company’s goods and services everywhere
possible via its distribution system.
❖ Customers believe low prices and product availability are the main factors for
them to perceive goods and services as having higher value.
❖ At this point, the demand for products typically outstripped the supply, and
businesses had little trouble finding consumers.
❖ Companies concentrated primarily on increasing production and distribution
efficiency.
❖ Positives:
❖ Economies of scale
❖ High production efficiency
❖ Mass distribution
❖ Drawbacks:
❖ No orientation to customer need
❖ Lack of Creativity
❖ Market saturation
2. Product concept
❖ The primary focus at this phase is on product quality.
❖ It implies that customer value is inextricably connected to the availability of high-
quality, high-performance goods.
❖ The marketing function was to deliver goods that the firm thought was of the
“best value” to the consumer.
❖ This method focuses on product research and development, as well as continual
change throughout their life cycles, in order to keep potential consumers’
attention.
❖ Management concentrates on developing high-quality goods that can be sold at
a reasonable price while paying low attention to what customers truly need and
desire.
❖ Advantages:
❖ High quality
❖ Develops curiosity
❖ Earn high margin
3. Selling concept
❖ Firms that use the selling concept believe that the organization’s success is a
result of different strong promotional methods intended at influencing
consumers to choose the firm’s product or brand over rivals’ products.
 ❖ As a result, no matter how wonderful a product is, consumers will not be able to
contemplate purchasing it if they are not made aware of it.
❖ Drawbacks:
❖ Only focus to boost sales
❖ No focus on customer pleasure
❖ No focus on customer long-term relationship
4. Marketing concept
❖ A marketing concept is a business approach that focuses on producing goods that
are designed to meet the wants, needs, and expectations of customers, as well
as product functionality and production efficiency.
❖ To satisfy target consumers, the firm must first determine their requirements
and desires and then build the marketing mix elements to suit those needs and
desires more efficiently and effectively than rivals.
❖ Businesses research and analyze their market to understand their customers.
Thereby gathering information that will be handy in their marketing strategy.
❖ Positives
❖ Customer satisfaction
❖ Increased brand loyalty
❖ Better USP
❖ Drawbacks
❖ Effort required
❖ Higher cost
❖ Customer dynamics
5. Societal marketing concept
❖ This ideology is concerned not just with customer happiness, but also with
consumer welfare or societal welfare. It includes a clean environment and a high
quality of life.
❖ The societal marketing concept holds that “marketing strategy should deliver
value to customers in a way that maintains or improves both the consumer’s and
society’s well-being.”
 ❖ Example: A car must be not only fuel-efficient but also less polluting.
❖ Using appropriate pricing, distribution, and promotion strategies, most
businesses now emphasize their level of environmental friendliness in order to
attract customers.

6. Holistic marketing concept

❖ It is a marketing approach that examines the entire organization in which all
other corporate divisions collaborate to generate a positive business image in
the eyes of customers.
• Holistic marketing connects the market around shared goals and visions,
relationship-oriented, and socially responsible.

Summary of marketing concepts

Nature of marketing
• Integrated Process: Marketing is a managerial process in so far as it involves planning
and control functions.
• Customer Oriented: The basic objective of a business is to satisfy human needs. What
the consumers want and then produce goods according to the needs of the
consumers
• Starts and Ends with the Consumer: Identify the needs of customers, taking feedback
survey from customers
• System: It obtains the inputs from the environment, transforms these inputs and
supplies the output (customer satisfaction, profits, etc.).
• Creative: The elements of marketing are designed creatively to attract customers.
• Precedes and Succeeds Production: Marketing activities must start far ahead of
production. It is not enough if the activities are begun after the product is ready.
• Marketing is Goal Oriented: Marketing seeks to achieve benefits, for buyers and
sellers. The ultimate aim of marketing is to earn profits through the satisfaction of
human wants.
• Pervasive: Marketing is needed in business as well as in social and other
organizations. In other organizations, marketing is necessary for spreading socially
useful ideas and programmes.
• Continuous Process: Marketing is not an isolated, static process but is a complex,
continuous and interrelated process. It involves continuous planning,
implementation and control. It is a significant functional area of management.
• Selection of Target Markets: A marketer has to select target markets rather than to
win every market and be all things to all people.
Scope of marketing
Importance of marketing

▪ Marketing helps to increase brand awareness through advertising. People recalls

brand sometimes.
▪ Offers come under marketing, which increases the people to purchase.
▪ Customer satisfaction is improved through public relations and they’ll become
loyal.
▪ Customer relationship can be built.
▪ All of these efforts increase the company’s profits to a greater height.

Role of marketing in modern business

• Innovation and New Product Development: Marketing contributes to the
identification of market gaps and opportunities, guiding innovation. Companies like
Google continually innovate based on market trends, using marketing insights to develop
new products and stay ahead of competitors.
• Customer Identification and Segmentation: It enables to identify and segment
target customers to tailor strategies. A fitness app might use marketing to identify and
target a specific segment of health-conscious individuals.
• Brand Building and Awareness: Marketing is essential for creating and maintaining
a strong brand presence. Apple, through its sleek and innovative product launches
coupled with strategic advertising
• Product Positioning and Differentiation: Marketing aids in positioning products in
the minds of consumers, highlighting unique features. Tesla, differentiates itself in the
electric car market by emphasizing technological advancements.
• Customer Engagement and Relationship Building: Marketing facilitates ongoing
communication with customer leading to customer engagement and loyalty.
Starbucks, with its mobile app and personalized rewards program, offers incentives and
built a strong relationship
• Market Research and Analysis: Marketing conducts research to understand market
trends and consumer behavior. Netflix, through data-driven marketing analysis,
continually adapts its content strategy to align with viewer preferences.
• Demand Generation and Sales Support: Marketing generates demand for products
and supports sales efforts. Amazon utilizes online advertising and recommendations, to
drive demand for its products and enhance the overall shopping experience.
• Digital Presence and E-commerce Integration: Marketing is vital for establishing a
strong digital presence and integrating e-commerce strategies.

Marketing mix
Marketing mix is the basis of marketing management. It includes 4 Ps:
1. Product
2. Price
3. Place
4. Promotion
Extended marketing mix includes other three elements:
5. People
6. Process
7. Physical evidence
Marketing Information System
A marketing information system, or an MIS, is a system for gathering, storing, analyzing
and distributing valuable marketing data to help marketers make better decisions. The
input of a marketing information system focuses on collecting relevant internal and
external data to analyze and interpret.
What is Analyzed?
❑ Sales data
❑ Market trend
❑ Customer review

Components of MIS
Benefits / Importance:
• Conducting thorough demand and supply analysis
• Increasing competitiveness and market share
• Identifying business development opportunities
• Implementing a consumer-oriented approach
• Identifying and managing business risks
• Improving the overall marketing strategy of the company
• Keeping an eye on competition
• Having better control over all marketing operations.

Strategic marketing planning

It is the process in which the company develops marketing strategies to meet its
strategic goals and objectives.
Stages:
• Identifying the company's current situation
• Analyzing its opportunities and threats
• Creating marketing action plans for implementation.
Benefits / uses of strategic marketing planning:
Stages of strategic marketing planning
1. Vision and Mission: Articulate the organization's purpose (mission) and its desired
future state (vision) to guide strategic decisions.
2. Situation Analysis: Assess internal and external factors influencing the business to
understand its current position in the market.
3. Analysis of Marketing Mix: Examine the elements of product, price, place, and
promotion to create an effective marketing strategy.
4. Evaluation of Alternatives: Generate and assess various strategic options to
identify the most promising opportunities for achieving objectives.
5. Selection of Alternatives: Choose the most viable and effective strategies based on
the evaluation, aligning with the organization's goals and capabilities.
6. Implementation of Alternatives: Put the chosen strategies into action, aligning
resources and activities to execute the marketing plan effectively.
7. Analysis/Control: Continuously monitor and evaluate the performance of
implemented strategies, making adjustments as needed to ensure alignment with
goals.

Some previous questions from question papers of 2023, 2022, 2021

2021:
1. What is marketing? (2)
2. Describe different concepts of marketing (5)
3. Write a note on marketing mix (5)
2022:
1. What do you mean by marketing information system? (2)
2. Explain the steps in strategic marketing planning process (5)
2023:
1. What is marketing? Discuss its features (5)
2. Explain the marketing mix (5)