Importance, Scope, and

Concepts of Marketing
Module 1
BBA 3rd Semester
Prepared by Faiz Rasool

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What is Marketing
Good marketing is no accident. It is both an art and a science resulting
from careful planning and execution using state-of-the-art tools and
techniques. In this book, we describe how skillful marketers update classic
practices and invent new ones to find creative, practical solutions to new
marketing realities. In the first chapter, we lay our foundation by reviewing
important marketing concepts, tools, frameworks, and issues.

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The Value of Marketing
Finance, operations, accounting, and other business functions won’t
really matter without sufficient demand for products and services so
the firm can make a profit. In other words, there must be a top line for
there to be a bottom line. Thus, financial success often depends on
marketing ability. Marketing’s value extends to society as a whole. It
has helped introduce new or enhanced products that ease or enrich
people’s lives

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Marketing Decision Making
CEOs recognize that marketing builds strong brands and a loyal
customer base, intangible assets that contribute heavily to the value
of a firm.3 Many firms, even service and nonprofits, now have a
chief marketing officer (CMO) to put marketing on a more equal
footing with other C-level executives such as the chief financial
officer (CFO) or chief information officer (CIO).

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Winning Marketing
Skillful marketing is a never-ending pursuit, but some businesses are adapting and
thriving in these changing times. Consider American Express.
American Express: Small Business Saturday Launched in 2010 via radio and TV
ads, social media, and PR, American Express’s Small Business Saturday program
encouraged people to shop at smaller, local retailers on the Saturday after
Thanksgiving. Among businesses that participated, sales rose 28 percent. In 2012,
American Express provided social media marketing kits, e-mail templates, and
signage to help spread the word. More than 350 small business organizations
supported the initiative, more than 3 million users “liked” the Small Business
Saturday Facebook page, and 213,000 related tweets were posted on Twitter

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Other top marketers are following suit. Using a Web-only campaign, BMW claimed a
$110 million revenue gain for its 1-series. More than 3 million people saw a five-video
teaser campaign, and 20,000 gave their contact details BMW also targeted influential
bloggers and used feedback from social media as inpu to styling and sales forecasts.

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The Scope of Marketing
To be a marketer, you need to understand and try to find out the
answers to the following questions
What is marketing?
What is marketed?
How it works?
Who does it?

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What is marketing?

Marketing is about identifying and meeting human and social

needs. One of the shortest good definitions of marketing is
“meeting needs profitably.” When Google recognized that people
needed to more effectively and efficiently access information on
the Internet, it created a powerful search engine that organized and
prioritized queries.
When IKEA noticed that people wanted good furnishings at
substantially lower prices, it created knockdown furniture.
These two firms demonstrated marketing savvy and turned a
private or social need into a profitable business opportunity.
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What is marketing?
The American Marketing Association offers the following formal
definition:
Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
Coping with these exchange processes calls for a considerable
amount of work and skill. Marketing management takes place when
at least one party to a potential exchange thinks about the means of
achieving desired responses from other parties.

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What is Marketing Management?
We can explain Marketing management as the art and science of
choosing target markets and getting, keeping, and growing customers
through creating, delivering, and communicating superior customer
value.
We can distinguish between a social and a managerial definition of
marketing.
A social definition shows the role marketing plays in society; for
example, one marketer has said that marketing’s role is to “deliver a
higher standard of living.” Here is a social definition that serves our
purpose

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Social Marketing

Marketing is a societal 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. Cocreation of value among
consumers and with businesses and the importance of value creation and
sharing have become important themes in the development of modern
marketing thought

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Managerial Marketing
Managers sometimes think of marketing as “the art of selling products,” but
many people are surprised when they hear that selling is not the most
important part of marketing! Selling is only the tip of the marketing iceberg.
Peter Drucker, a famed management theorist, put it this way.
There will always, one can assume, be a need for some selling. But marketing
aims to make selling superfluous.
Marketing aims to know and understand the customer so well that the product
or service fits him and sells itself. Ideally, marketing should result in a
customer who is ready to buy. All that should be needed then is to make the
product or service available.

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What is Marketed
What is marketed" refers to the products, services, or experiences
that businesses and organizations promote to consumers. Marketing
is the process of making these products and services available to
buyers in a way that encourages them to buy.
Marketers market 10 main types of entities: goods, services, events,
experiences, persons, places, properties, organizations, information,
and ideas. Let’s take a quick look at these categories.

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What is Marketed
Goods:
Physical goods constitute the bulk of most countries’ production and marketing efforts. Each
year, U.S. companies market billions of fresh, canned, bagged, and frozen food products and
millions of cars, refrigerators, televisions, machines, and other mainstays of a modern
economy.
Services:
As economies advance, a growing proportion of their activities focuses on the production of
services. The U.S. economy today produces a services-to-goods mix of roughly two-thirds to
one-third. Services include the work of airlines, hotels, car rental firms, barbers and
beauticians, maintenance and repair people, accountants, bankers, lawyers, engineers, doctors,
software programmers, and management consultants. Many market offerings mix goods and
services, such as a fast-food meal.

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What is Marketed
Events:
Marketers promote time-based events, such as major trade shows, artistic
performances, and company anniversaries. Global sporting events such as the
Olympics and the World Cup are promoted aggressively to companies and fans. Local
events include craft fairs, bookstore readings, and farmer’s markets.
Experiences:
By orchestrating several services and goods, a firm can create, stage, and market
experiences. Walt Disney World’s Magic Kingdom lets customers visit a fairy
kingdom, a pirate ship, or a haunted house. Customized experiences include a week at
a baseball camp with retired baseball greats, a four-day rock and roll fantasy camp, and
a climb up Mount Everest.
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What is Marketed
Persons:
Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other professionals
often get help from marketers.12 Many athletes and entertainers have done a masterful job of
marketing themselves—NFL quarterback Peyton Manning, talk show veteran Oprah Winfrey, and
rock and roll legends The Rolling Stones. Management consultant Tom Peters, himself a master at
self-branding, has advised each person to become a “brand.”
Places:
Cities, states, regions, and whole nations compete to attract tourists, residents, factories, and
company headquarters. Place marketers include economic development specialists, real estate
agents, commercial banks, local business associations, and advertising and public relations
agencies. The Las Vegas Convention & Visitors Authority has met with much success with its
provocative ad campaign “What Happens Here, Stays Here,” portraying Las Vegas as “an adult
playground.”

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What is Marketed
Properties:
Properties are intangible rights of ownership to either real property (real estate) or financial property
(stocks and bonds). They are bought and sold, and these exchanges require marketing. Real estate
agents work for property owners or sellers, or they buy and sell residential or commercial real estate.
Investment companies and banks market securities to both institutional and individual investors.
Organizations:
Museums, performing arts organizations, corporations, and nonprofits all use marketing to boost
their public images and compete for audiences and funds. Some universities have created chief
marketing officer (CMO) positions to better manage their school identity and image, via everything
from admission brochures and Twitter feeds to brand strategy.

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What is Marketed
Information:
Information is essentially what books, schools, and universities produce, market, and distribute at a
price to parents, students, and communities. Firms make business decisions using information supplied
by organizations like Thomson Reuters: “We combine industry expertise with innovative technology
to deliver critical information to leading decision makers in the financial, legal, tax and accounting,
healthcare, science, and media markets, powered by the world’s most trusted news organization.”
Ideas:
Every market offering includes a basic idea. Charles Revson of Revlon once observed: “In the factory
we make cosmetics; in the drugstore we sell hope.” Products and services are platforms for delivering
some idea or benefit. Social marketers promote such ideas as “Friends Don’t Let Friends Drive
Drunk” and “A Mind Is a Terrible Thing to Waste.”

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Who does Marketing
A marketer is someone who seeks a response—attention, a purchase, a vote, a
donation—from another party, called the prospect. If two parties are seeking to
sell something to each other, we call them both marketers.
Marketers are skilled at stimulating demand for their products, but that’s a limited
view of what they do. They also seek to influence the level, timing, and
composition of demand to meet the organization’s objectives. Eight demand
states are possible:

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Reasons for doing Marketing
1. Negative demand—Consumers dislike the product and may even pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of or uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product.
4. Declining demand—Consumers begin to buy the product less frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly
basis.
6. Full demand—Consumers are adequately buying all products put into the marketplace.
7. Overfull demand—More consumers would like to buy the product than can be satisfied.
8. Unwholesome demand—Consumers may be attracted to products that have undesirable social
consequences.

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What is Market
Markets Traditionally, a “market” was a physical place where buyers and sellers
gathered to buy and sell goods. Economists describe a market as a collection of
buyers and sellers who transact over a particular product or product class (such as
the housing market or the grain market).
Five basic markets and their connecting flows are Manufacturers go to resource
markets (raw material markets, labor markets, money markets), buy resources and
turn them into goods and services, and sell finished products to intermediaries, who
sell them to consumers. Consumers sell their labor and receive money with which
they pay for goods and services. The government collects tax revenues to buy goods
from resources,

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What is Market

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