Principles of Marketing

MIM301
Module 1
Introduction to Marketing
Part 2
 Marketing Concept
• Marketing is a multifaceted discipline aimed at creating value
and building relationships between organizations and their
customers.
• It involves understanding customer needs, creating products
and services to meet those needs, and communicating their
benefits effectively.
• To understand the concept of Marketing, we need to know how
marketing is applied on the following categories:
• Goods, Services, Events,
• Experiences, Persons, Places,
• Properties, Organizations, Information, Ideas
• Marketing in each of these categories involves understanding
the unique characteristics and needs of the target audience
and developing strategies to effectively reach and engage
them. 2
 Goods
Definition: Tangible products that can be seen, touched, and owned.
Marketing Approach:
• Product Development: Ensuring the product meets customer
needs.
• Pricing: Setting a price that reflects value and is competitive.
• Distribution: Ensuring availability in locations where customers
shop.
• Promotion: Using advertising, sales promotions, and personal
selling to raise awareness and generate demand.

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 Services
Definition: Intangible offerings that cannot be owned but experienced.
Marketing Approach:
• Service Design: Tailoring services to customer expectations.
• Quality Control: Maintaining high standards to ensure satisfaction.
• Customer Experience: Managing interactions to create positive
experiences.
• Promotion: Highlighting benefits, reliability, and customer
recommendations.

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 Events
Definition: Occasions or activities that are planned and managed.
Marketing Approach:
• Event Planning: Creating a compelling and organized event.
• Promotion: Using media, partnerships, and influencers to attract
attendees.
• Sponsorships: Collaborating with brands to fund and promote
the event.
• Engagement: Ensuring participants are actively involved and have
a memorable experience.

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 Experiences
Definition: Personal or emotional engagements created for customers.
Marketing Approach:
• Experience Design: Crafting immersive and engaging interactions.
• Storytelling: Using narratives to connect emotionally with customers.
• Sensory Marketing: Engaging multiple senses to enhance the
experience.
• Feedback: Collecting and utilizing feedback to improve future
experiences.

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 Persons
Definition: Marketing individuals such as celebrities, politicians, or
professionals.
Marketing Approach:
• Personal Branding: Building a distinct and appealing public image.
• Public Relations: Managing media relations and public appearances.
• Social Media: Using platforms to engage with followers and build a fan
base.
• Endorsements: Associating with brands to enhance credibility and
visibility.

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 Places
Definition: Marketing locations to attract visitors, residents, or businesses.
Marketing Approach:
• Destination Branding: Creating a unique identity and appeal.
• Tourism Marketing: Promoting attractions, culture, and amenities.
• Economic Development: Highlighting opportunities for investment and
business.
• Events: Hosting events to draw attention and visitors to the location

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 Properties
Definition: Marketing of real estate and intellectual property.
Marketing Approach:
• Property Presentation: Staging and presenting properties attractively.
• Listing Services: Using online and offline platforms to reach buyers.
• Open Houses: Allowing potential buyers to experience the property.
• Intellectual Property: Promoting the value and utility of patents,
trademarks, and copyrights.

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 Organizations
Definition: Marketing entities such as businesses, non-profits, or
government bodies.
Marketing Approach:
• Branding: Developing a strong, recognizable identity.
• Public Relations: Building and maintaining a positive public image.
• Corporate Social Responsibility: Highlighting efforts to contribute to
society.
• Stakeholder Engagement: Communicating effectively with employees,
customers, investors, and the community.

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 Information
Definition: Marketing data, knowledge, or content.
Marketing Approach:
• Content Marketing: Creating and distributing valuable content to attract
and engage audiences.
• Educational Campaigns: Informing and educating target audiences
about specific topics.
• Digital Marketing: Using SEO (Search Engine Optimization), social media,
and email to disseminate information.
• Authority Building: Positioning as a thought leader through whitepapers,
research, and expert insights.

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 Ideas
Definition: Promoting concepts, beliefs, or philosophies.
Marketing Approach:
• Advocacy: Raising awareness and support for causes or issues.
• Social Marketing: Encouraging behaviour change for societal benefit.
• Campaigns: Using strategic communication to spread and reinforce
ideas.
• Influence: Leveraging influential figures and networks to promote ideas.

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 Types of Market
1. Business-to-Business (B2B):
• This market involves transactions between businesses.
• Companies sell products or services to other businesses.
• B2B transactions often involve larger quantities, longer sales
cycles, and more complex negotiations compared to consumer
markets.
• The focus is on building long-term relationships and providing value
through efficiency, quality, and reliability.

Examples: Manufacturers selling raw materials to factories, or

software companies providing enterprise solutions to other firms.

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 Types of Market
2. Business-to-Consumer (B2C):
• This market involves businesses selling products or services
directly to individual consumers.
• B2C transactions are typically characterized by shorter sales cycles,
higher volumes of smaller transactions, and a focus on marketing
and customer experience.
• Companies in this market often use advertising, promotions, and
customer service to attract and retain customers.
Examples include online retailers like Amazon, or a local grocery store.

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 Types of Market
3. Consumer-to-Consumer (C2C):
• This market involves transactions between consumers, often
facilitated by a third-party platform.
• C2C markets control technology to connect buyers and sellers,
providing a platform for individuals to trade goods and services.
• Trust and security are critical factors, often managed through user
reviews and ratings.
Examples include eBay, where individuals can buy and sell items to each
other, or peer-to-peer rental services like Airbnb.

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 Types of Market

4. Business-to-Government (B2G):
• This market involves businesses providing goods or services to
government entities.
• B2G transactions often involve formal procurement processes,
including bids, tenders, and contracts.
• The focus is on compliance with regulations, transparency, and
delivering value to the public sector.

Examples: Companies that supply office equipment to government

agencies or contractors that build infrastructure projects.

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 Types of Market
5. Consumer-to-Government (C2G):
• This market involves individuals interacting with government services.
• C2G interactions are increasingly facilitated by digital platforms,
making it easier for citizens to access services, provide feedback, and
engage with government initiatives.
• The focus is on convenience, accessibility, and improving the
efficiency of public services.

Examples include paying taxes online, applying for government

services, or participating in public consultations.

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 Types of Market
6. Business-to-Business-to-Consumer (B2B2C):
A business model where a company sells products or services to another
business, which then sells them to the end consumer.
B2B2C models combine elements of both B2B and B2C markets, requiring
companies to manage relationships with both business partners and end
consumers.

Examples include a wholesaler selling products to a retailer, who then

sells them to consumers.

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 Types of Market
7. Direct-to-Consumer (D2C):
• Businesses sell directly to consumers without intermediaries.
• D2C models allow companies to have greater control over their brand,
pricing, and customer experience.
• They often influence digital marketing and e-commerce platforms to
reach and engage consumers directly.

Examples include brands that sell their products through their own
websites or physical stores.

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 Types of Market

8. Peer-to-Peer (P2P):
• Similar to C2C, but often used in the context of financial transactions,
such as peer-to-peer(associates) lending platforms where individuals
lend money to each other.
• P2P markets influence technology to connect individuals directly,
bypassing traditional financial institutions.
• Trust and security are critical factors, often managed through platform
policies, user reviews, and ratings.

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 Types of Market
9. Consumer Market:
• This market involves individuals or households purchasing goods and
services for personal use.
• Consumer markets are driven by factors such as consumer
preferences, trends, and purchasing power.
• Companies in this market focus on understanding consumer
behaviour, creating appealing products, and delivering a positive
customer experience.

Examples include groceries, clothing, and electronics.

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 Types of Market
10. Global Market:
• This market encompasses international trade, where goods and
services are exchanged across national borders.
• It involves navigating different cultures, regulations, and economic
conditions.
• Companies operating in the global market must consider factors such as
exchange rates, trade policies, and cultural differences.
• The focus is on expanding market reach, adapting products to local
preferences, and managing global demand-supply chains.

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 Types of Market
11. Non-Profit Market:
• This market includes organizations that operate not for profit but to
serve a social cause.
• They often rely on donations, grants, and volunteers.
• Non-profit markets focus on creating social value, raising awareness,
and mobilizing resources to address societal issues.
• Marketing efforts often emphasize storytelling, community
engagement, and building trust with donors and stakeholders.
Examples include charities, educational institutions, and healthcare
organizations.

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 Types of Market
12. Government Market:
• This market involves transactions where government entities are the
buyers.
• Governments purchase goods and services for public use, such as
infrastructure projects, defense equipment, and public services.
• Government markets are characterized by formal procurement
processes, strict regulations, and a focus on accountability and
transparency.
• Companies in this market must navigate complex bidding processes
and demonstrate their ability to deliver value to the public sector.

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 Types of Market
13 Industrial Market:
• Businesses that purchase goods and services for use in the
production of other goods and services.
• Industrial markets are characterized by large-scale transactions, long-
term contracts, and a focus on quality, reliability, and efficiency.
• Companies in this market often engage in complex negotiations and
build long-term relationships with suppliers.

• Examples include raw materials, machinery, and equipment.

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 Types of Market
14. Institutional Market:
• Organizations such as schools, hospitals, and prisons that purchase
goods and services for the people they serve.
• Institutional markets are characterized by large-scale purchases,
formal procurement processes, and focus on quality and cost-
effectiveness.
• Companies in this market must navigate complex regulations and
demonstrate their ability to meet the specific needs of institutional
buyers.

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 Types of Market
15. Reseller Market:
• Businesses that purchase goods to resell them at a profit.
• Reseller markets involve intermediaries who buy products from
manufacturers and sell them to end consumers or other businesses.
• The focus is on managing inventory, pricing, and distribution to
maximize profitability.

• Examples include wholesalers and retailers.

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 Types of Market
16. Monopoly:
• A market structure where a single firm controls the entire market.
• This firm has significant market power and can set prices without
competition.
• Monopolies can arise due to factors such as exclusive control over
resources, government regulation, or technological superiority.
• While monopolies can lead to higher prices and reduced consumer
choice, they may also bring innovation and economies of scale in
certain industries.

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 Types of Market
17. Oligopoly:
• A market structure characterized by a few large firms that dominate the
market.
• These firms have significant market power and can influence prices.
• Firms in an oligopoly may engage in strategic behaviour, such as price
fixing or conspiracy, to maintain their market position.
• Competition is often based on factors such as innovation, branding,
and customer loyalty.
• Oligopolies are common in industries such as telecommunications,
automotive, and airlines.

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 Types of Market
18. Monopolistic Competition:
• A market structure where many firms sell similar but not identical
products.
• Each firm has some degree of market power and can differentiate its
products through branding, quality, or other features.
• Firms compete on factors such as price, product differentiation, and
marketing, leading to a diverse range of choices for consumers.
• Monopolistic competition is common in industries such as retail,
restaurants, and consumer goods.

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 Types of Market

19. Perfect Competition:

• A theoretical market structure where many small firms compete
against each other.
• No single firm has significant market power, and all firms sell
identical products.
• In perfect competition, prices are determined by supply and demand,
and firms can freely enter and exit the market.
• This market structure is characterized by high levels of efficiency and
consumer welfare, but it is rarely found in practice.

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 Marketing Types
Societal Marketing:
• Societal marketing is an approach that considers not only the needs and
wants of consumers but also the long-term interests of society.
• Companies adopting this concept aim to balance company profits, consumer
satisfaction, and societal well-being.
• The focus is on sustainable practices, ethical marketing, and social
responsibility.
Example
• Tata Group is known for its commitment to societal marketing.
• Tata Steel, for instance, has numerous initiatives focused on community
development, environmental sustainability, and ethical business practices.
• Their programs include education and healthcare initiatives in rural areas, as
well as efforts to reduce carbon emissions and promote sustainable mining
practices.

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 Marketing Types
Societal Marketing:
Example
• Another example is Hindustan Unilever with its Project Shakti, which
empowers rural women by training them to become direct-to-home
distributors of Unilever products, thereby improving their livelihoods
and promoting economic development.

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 Marketing Types
Holistic Marketing:
• Holistic marketing is a comprehensive approach that considers the
entire business and its various components as interconnected parts
of a whole.
• It integrates all aspects of marketing—relationship marketing,
integrated marketing, internal marketing, and socially responsible
marketing—to create a seamless and unified brand experience.
Example:
• Amul is a prime example of holistic marketing in India. Amul’s marketing
strategy integrates various elements such as product quality, brand
consistency, and community engagement.
• Their iconic Amul girl advertisements are not only humorous and
topical but also reflect the brand’s commitment to quality and
consumer engagement.
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 Marketing Types
Holistic Marketing:
Example
• Amul’s cooperative structure ensures that the benefits of their success
are shared with the farmers who supply the milk, aligning their
business practices with societal well-being.
• Another example is Reliance Jio, which revolutionized the telecom
industry by offering affordable data plans, thereby integrating
customer needs, technological innovation, and competitive pricing
into a combined strategy.

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 Marketing Types
Customer-Generated Marketing:
• Customer-generated marketing involves leveraging content created by
customers to promote a brand or product.
• This can include reviews, testimonials, social media posts, and other
forms of user-generated content.
• The idea is to harness the power of word-of-mouth and social proof to
build trust and trustworthiness.
Example:
• Zomato effectively uses customer-generated content in its marketing
strategy.
• The platform encourages users to leave reviews and ratings for
restaurants, which helps other users make informed decisions.
• Zomato also features user-generated photos and reviews on its social
media channels, creating a sense of community and trust among its
users. 36
 Marketing Types
Customer-Generated Marketing:
Example:
• Another example is Nykaa, which controls customer reviews and
social media posts to promote its beauty products.
• Nykaa’s customers often share their experiences and product reviews
on social media, which the company then features on its platforms to
build reliability and engage with its audience.

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 Marketing Orientation
• Marketing Orientation is a business approach that prioritizes identifying
and meeting the needs and desires of consumers.
• Companies that adopt this orientation focus on understanding their
target market and developing products or services that satisfy
customer preferences.
• The primary focus is on the customer.
• Companies conduct extensive market research to understand
consumer needs, preferences, and behaviours.
• This information guides product development, marketing strategies, and
overall business decisions.

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 Key Aspects of Marketing Orientation
- Market Research: Businesses use various tools and techniques, such as
surveys, focus groups, and data analysis, to gather insights about their
target market. This helps them identify trends, preferences, and unmet
needs, allowing them to create products that align with consumer
expectations.
- Value Creation: The goal is to create value for customers by offering
products or services that meet their needs better than competitors. This
involves not only the product itself but also aspects like customer service,
brand experience, and after-sales support.
- Integrated Marketing Efforts: All departments within the company, from
R&D to sales, work together to ensure that the marketing orientation is
embedded in the corporate culture. This alignment helps in delivering a
consistent and cohesive customer experience.

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 Key Aspects of Marketing Orientation
- Long-Term Relationships: Companies aim to build long-term
relationships with customers by consistently meeting their needs and
exceeding their expectations. This leads to customer loyalty, repeat
business, and positive word-of-mouth.
- Adaptability: Businesses must be flexible and responsive to changes in
consumer preferences and market conditions. This requires continuous
monitoring of the market and the ability to quickly adapt strategies and
offerings.

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 Marketing Channels
• Marketing channels are the pathways through which goods and
services travel from the producer to the consumer.
• They encompass all the people, organizations, and activities
necessary to transfer the ownership of goods from the point of
production to the point of consumption.
• Marketing channels are crucial for ensuring that products are
available to consumers at the right place and time, and
• They play a significant role in a company’s overall marketing
strategy.

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 Importance of Marketing Channels
Reach: They help businesses reach a wider audience by making products
available in various locations and through different platforms.
Efficiency: They streamline the process of getting products from the
manufacturer to the consumer, reducing costs and improving delivery times.
Customer Experience: Effective marketing channels ensure that products are
available where and when customers want them, enhancing customer
satisfaction.
Competitive Advantage: A well-managed marketing channel can provide a
competitive edge by improving market penetration and customer loyalty.

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 Types of Marketing Channels
Communication Channels
• These channels are the mediums through which companies convey
messages to their target audience.
• These channels are essential for building brand awareness, engaging
customers, and promoting products or services.
Some key communication channels:-
Advertising: This includes traditional media such as TV, radio, newspapers,
and magazines, as well as digital advertising on websites, social media, and
search engines. For example, Coca-Cola uses TV commercials and social
media ads to reach a broad audience.
Public Relations (PR): PR involves managing the company’s image and
building relationships with the media and the public. Press releases, events,
and media coverage are common PR tools. Tata Group often uses PR to
highlight its corporate social responsibility initiatives.
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 Types of Marketing Channels
Communication Channels
Some key communication channels:-
Social Media: Platforms like Facebook, Instagram, Twitter, and LinkedIn are
used to engage with customers, share content, and build communities.
Zomato effectively uses social media to interact with users and share updates
about new restaurant listings and promotions.
Email Marketing: Sending targeted emails to customers to inform them about
new products, promotions, and company news. Amazon uses email marketing
to send personalized recommendations and special offers to its customers.
Content Marketing: Creating and sharing valuable content to attract and
engage a target audience. This includes blogs, videos, infographics, and
eBooks. HubSpot is known for its extensive content marketing efforts,
providing valuable resources on marketing and sales. 44
 Types of Marketing Channels
Sales Channels
• They represents the pathways through which products or services are sold
to customers.
• These channels can be direct or indirect and are crucial for reaching the
target market and generating revenue.
Some key sales channels:-
Direct Sales: Selling products directly to consumers without intermediaries.
This can be done through company-owned stores, websites, or sales teams.
Apple sells its products directly through its retail stores and online store.-
Retailers: Selling products through third-party retail stores. This includes
supermarkets, department stores, and specialty stores. Nestlé sells its
products through various retail chains like Walmart and Spencer.
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 Types of Marketing Channels
Sales Channels
Some key sales channels:-
E-commerce: Selling products online through company websites or third-
party platforms like Amazon, Flipkart, and eBay. Myntra is an example of an
e-commerce platform that sells fashion and lifestyle products.
Distributors: Using intermediaries to distribute products to retailers or end
consumers. Distributors handle logistics, storage, and sales. Samsung uses
distributors to reach various retail outlets and markets.
Franchising: Allowing independent operators to use the company’s brand
and business model in exchange for a fee. McDonald’s operates through a
franchise model, allowing it to expand rapidly across different regions.
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 Types of Marketing Channels
Distribution Channels
• These channels are the pathways through which products move from the
manufacturer to the end consumer.
• These channels ensure that products are available at the right place and
time.
Some key distribution channels:-
Wholesalers: Intermediaries that buy products in bulk from manufacturers
and sell them to retailers or other businesses. Metro Cash & Carry operates as
a wholesaler, supplying products to small businesses and retailers.
Retailers: Stores that sell products directly to consumers. This includes
supermarkets, department stores, and specialty stores. Smart Bazaar is a
well-known retail chain in India that offers a wide range of products.
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 Types of Marketing Channels
Distribution Channels
Some key distribution channels:-
Online Marketplaces: Platforms that connect buyers and sellers,
facilitating online transactions. Amazon and Flipkart are examples of online
marketplaces that offer a vast selection of products.
Direct-to-Consumer (D2C): Companies sell products directly to consumers
through their own websites or physical stores. Lenskart is an example of a D2C
brand that sells eyewear directly to customers.
Logistics Providers: Companies that handle the transportation, warehousing,
and delivery of products. DHL and Blue Dart are logistics providers that ensure
products reach their destinations efficiently. 48