Introduction to

Marketing
What is
Marketing?
Marketing is about identifying and meeting human and social needs.

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. (AMA)

Marketing Management is the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value.
 Goods- Car, machines, watches, cosmetics
Services- airline, hotels, ola, uber. zomato
Events- Global sports events, Olympics, world cups
Experiences- Water park, amusement parks
What is Persons- Artists, Lawyers, Financiers
Markete Places- Tourism industry
d? Properties- Real Estate, Financial property
Organizations- Education, Health,
Information- Books, Health care Information technology
Ideas- Creating awareness about HIV, blood donation
 A marketer is someone who seeks response –
attention, a purchase, a vote, a donation- from
another party called the Prospect.

Who
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.
 Needs- are the basic human requirements such as
air, water, food, clothing and shelter.

Core Wants- These are desires for specific satisfiers of

Marketing needs. Eg. Food is a need but Chicken can be a
want.
Concepts

Demands- are wants for specific products backed

by an ability to pay. Eg. Many people want a
Mercedes; only a few are able to buy one.
 Value- It is the consumer's
estimate of the products
overall capacity to satisfy
his/her's needs.

Core
Cost- Cost is what a person
Marketin has to forgo in order
to acquire something.
g Concep
ts
Satisfaction- It is explained
as the person's
perception of what he
expected and what he
perceives he has received.
 Marketing focuses on moving the product from the company to
the market (through product launches and awareness
campaigns), while sales focuses on moving the product from the
market to the customer. Sales focuses on the needs of the
company, while marketing focuses on the needs of the market.

Is Sales aims at maximising profits, while marketing aims at

Marketi increasing market share and customer satisfaction.

ng and
Sales Marketing attracts the customers towards the product, while
same? sales pushes the product to the customers.

Sales requires convincing and conversational skills, while

marketing requires analytical skills.
 Marketing Management
Philosophies
1. Production Era: Early marketing focused on producing large volumes of goods. Companies believed that
customers preferred products that were affordable and available in large quantities. This era emphasized
efficiency and mass production.

2. Product Era: In this stage, the focus shifted to product quality. Companies believed that customers would
favor superior products, so they concentrated on product improvements and innovations.

3. Sales Era: As competition grew, businesses adopted aggressive sales techniques to convince customers to
buy their products. The emphasis was on selling rather than addressing customer needs.

4. Marketing Era: Here, the focus shifted towards understanding customer needs and wants. Companies
realized that satisfying the customer was key to achieving long-term success.

5. Societal Marketing Era: This modern phase focuses not just on customer satisfaction but also on societal
well-being. Companies consider the impact of their marketing strategies on society and the environment
Marketing
Mix- is a set
of Product- Product Price- List price,
Variety, Quality, Discount, payment
controllable, Design, Features, period, Credit
tactical Brand Name Terms
marketing
tools that a
company uses
to produce
the response Promotion- Person
al Selling, Sales
it wants in the Place- Channel, Cov
Promotion, Public
erage, Location,
target market. Transport
Relations, Direct
Mail, Advertising,
Email Marketing
Elements of the Marketing Mix
(4 Ps)
1. Product-The product refers to the goods or services offered by a company to fulfill customer needs or
wants. It encompasses everything from the tangible item or service itself to its packaging, branding, and
associated services.
• Key Decisions:
• Product design
• Quality
• Features
• Brand name
• Packaging
• Warranties and after-sales services
• Example:
Apple's iPhone: Apple emphasizes sleek design, cutting-edge technology, and branding to create a product that is
highly sought after. The packaging, software updates, and accessories are also part of the product offering.
2. Price- Price is the amount of money customers must pay to acquire the product. It
reflects the perceived value of the product and must be set at a level that reflects its
worth while still being competitive in the market.
• Key Decisions:
• Pricing strategy (e.g., premium, penetration, competitive)
• Discounts
• Payment terms
• Credit terms
• Example:
• Tesla: Tesla uses a premium pricing strategy for its electric vehicles, positioning
them as high-quality, innovative products. Tesla's pricing reflects the value
customers perceive in terms of sustainability, technology, and brand prestige.
3. Place (Distribution)- Place refers to how the product is distributed and where it is
made available for purchase. It involves choosing the right locations, channels, and
distribution methods to ensure that the product reaches the target market effectively.
• Key Decisions:
• Distribution channels (e.g., online, retail, wholesale)
• Inventory management
• Logistics
• Market coverage (intensive, selective, or exclusive distribution)
• Example:
• Amazon: Amazon uses an extensive online distribution model, making products
easily accessible to customers globally. They utilize warehouses, efficient logistics,
and a vast network of delivery services to reach customers quickly and efficiently.
4. Promotion- Promotion includes all the activities undertaken by a company to
communicate the product's benefits and persuade target customers to purchase it. It
involves advertising, public relations, sales promotion, Digital marketing, Direct
marketing and personal selling.
• Key Decisions:
• Advertising (e.g., TV, digital, print)
• Public relations and sponsorships
• Social media marketing
• Sales promotions (e.g., discounts, coupons)
• Personal selling and direct marketing
• Example:
• Coca-Cola: Coca-Cola’s promotion strategy includes iconic TV advertisements,
social media campaigns, and global sponsorships (e.g., the Olympics). These
promotions emphasize the brand’s global recognition and emotional appeal of
"happiness" and "togetherness."
 Price: Since Google offers
Product: Google has a suite of many different products and
products and services focusing services, the brand’s pricing
on search engine technology, also has different layers. Many
artificial intelligence, of the services come with a
consumer products, computer freemium pricing model.
software, and so on. These Google’s physical products are
products include Google (the typically priced based on

Google search engine), Pixel mobile

devices, Gmail, etc.
demand and the market. Their
online advertising services use
a value-based pricing system.

Marketin
g Mix
Promotion: Google promotes
Place: For the most part,
by running ads on social
Google runs its business on
media, in print, on TV, and on
the internet. However, for
other digital and traditional
physical products, consumers
channels. Google also
can visit Google’s physical
sponsors events and partners
retail stores — available only
with other businesses to give
in England for now.
its products more reach.
 Societal Marketing
• Societal Marketing is an advanced form of marketing that emphasizes not only satisfying
customers but also benefiting society as a whole.
• It is built on the belief that businesses have a responsibility to balance company profits,
customer satisfaction, and societal well-being.
• The societal marketing concept advocates for companies to make ethical decisions, be
socially responsible, and consider the environmental and social impact of their actions.
• Example- The Body Shop: Known for its commitment to ethical beauty products, The
Body Shop avoids animal testing, uses sustainable and fair-trade ingredients, and
supports environmental causes.
 Key Features of Societal Marketing

1. Focus on Long-Term Welfare: The company must consider the long-term welfare of
society while meeting immediate consumer demands.

2. Ethical and Social Responsibility: Businesses should avoid harmful practices (e.g.,
pollution, exploitation) and support positive contributions to society, such as promoting
sustainability, reducing waste, and supporting social causes.

3. Sustainable Marketing Practices: It includes producing goods that do not harm the
environment and promoting sustainability in operations.

4. Balancing Profit, Consumer, and Society: The idea is to ensure that marketing decisions
do not just meet consumer demands and business goals but also contribute positively to
society.
 Relationship Marketing
• Relationship Marketing focuses on building and maintaining long-term relationships with customers
rather than simply driving one-time sales.
• It is customer-centric and aims to create lasting connections with customers to enhance loyalty,
satisfaction, and repeat business.
• The idea is to foster trust and personalized engagement with customers to encourage long-term
relationships and advocacy.
• Examples-:
 Amazon Prime: Amazon’s Prime membership program is a great example of relationship marketing. By
offering benefits such as free two-day shipping, exclusive deals, and streaming services, Amazon
fosters loyalty. Customers who sign up for Prime are more likely to remain loyal due to the
convenience and added value.
 Starbucks Rewards Program: Starbucks uses its rewards program to build strong relationships with
customers. It offers members personalized rewards, such as free drinks on their birthdays, along with
tailored offers based on their purchase history. This approach encourages repeat visits and brand
loyalty.
 Key Features of Relationship
Marketing
•Customer Retention: Relationship marketing emphasizes keeping existing customers happy
rather than only acquiring new ones. The cost of retaining a customer is typically lower than
acquiring a new one.

•Personalization and Engagement: Businesses strive to offer personalized experiences,

tailored recommendations, and maintain continuous engagement through loyalty programs,
regular communication, and feedback mechanisms.

•Long-Term Orientation: The goal is to nurture customer relationships over the long term, rather
than focusing on short-term sales targets.

•Two-Way Communication: It involves creating a dialogue with customers, listening to their

needs, addressing complaints, and making them feel valued.
 Role of Marketing in the
Changing Business
Environment
1. Adapting to Technological Advancements

• Digital Marketing: The rise of digital platforms has transformed how businesses reach and engage with
customers. Marketing now heavily leverages online channels such as social media, search engines, and
email to connect with consumers.
• Data Analytics and Personalization: Marketing uses data analytics to understand consumer behavior,
segment audiences, and personalize customer experiences. This allows businesses to offer tailored
solutions that meet specific customer needs.
• Automation and AI: Marketing automation tools and AI-driven technologies streamline processes,
optimize customer interactions, and enhance productivity. Examples include chatbots for customer service
and AI-powered recommendations on e-commerce websites.
• Example: Spotify uses AI and data analytics to deliver personalized music recommendations, which not
only enhances the user experience but also drives customer loyalty and engagement.
2. Responding to Globalization

• Reaching New Markets: Marketing plays a key role in helping businesses expand
into new global markets by developing strategies tailored to diverse cultural,
linguistic, and consumer preferences.
• Building a Global Brand: Global marketing campaigns help businesses establish a
consistent brand image across different regions, making the brand recognizable
and trusted worldwide.
• Localized Marketing: Marketing teams develop localized content and campaigns
that resonate with specific regional audiences, considering cultural nuances and
preferences.
• Example: McDonald's adjusts its menu to fit local tastes in various countries (e.g.,
the McAloo Tikki in India) while maintaining a globally recognized brand identity
through consistent marketing.
3. Meeting Evolving Consumer Preferences

• Understanding Consumer Behavior: Marketing uses research and customer

feedback to stay updated on shifts in consumer preferences and values, such as
increased demand for eco-friendly products and ethical brands.
• Focusing on Customer Experience: Businesses now emphasize delivering
exceptional customer experiences. Marketing strategies are designed to create a
seamless customer journey across all touchpoints, from awareness to post-
purchase support.
• Product Innovation: Marketing helps identify emerging consumer needs and guides
product development teams to create new or improved offerings that align with
these needs.
• Example: Nike focuses on sustainable products by offering shoes made from
recycled materials. This meets the growing consumer demand for environmentally
friendly products, which is emphasized in their marketing campaigns.
4. Adapting to Competitive Pressures

• Differentiation and Positioning: Marketing helps businesses stand out by defining and
communicating a unique value proposition that sets the brand apart from
competitors.
• Agility in Strategy: Marketing enables companies to quickly adjust their strategies to
stay competitive in response to market changes, competitor actions, or shifts in
customer demand.
• Innovation in Marketing Channels: With competition in traditional channels being
high, marketing explores new platforms and creative methods (e.g., influencer
marketing, podcasts, interactive content) to engage audiences.
• Example: Coca-Cola and Pepsi constantly innovate with limited-time flavors and
exclusive campaigns, using unique marketing strategies to differentiate themselves
and appeal to new generations.
5. Driving Digital Transformation

• E-Commerce and Online Shopping: Marketing drives online sales by optimizing e-

commerce platforms, using SEO and digital advertising, and engaging in content
marketing to attract customers to the digital storefront.
• Mobile Marketing: As mobile usage increases, marketing adapts by developing
mobile-friendly content, apps, and campaigns to reach consumers wherever they are.
• Omnichannel Marketing: By integrating digital and physical experiences, marketing
enables customers to interact with brands seamlessly across multiple channels, such
as mobile, in-store, and online.
• Example: Amazon excels in omnichannel marketing by providing a smooth experience
across devices, offering personalized recommendations, and ensuring reliable delivery
options.
 Value Chain: Concepts &
Elements
• The Value Chain is a concept developed by Michael Porter that describes the series of activities within
an organization that create value for the customer.
• By analyzing the value chain, companies can identify areas for improvement and optimize operations to
enhance profitability, competitive advantage, and customer satisfaction.
• These activities are divided into primary and support activities, all of which work together to deliver a
product or service that has value to the end consumer.
• Primary Activities: These are the core activities involved in the creation of a product or service and its
delivery to customers. They directly add value to the end product and are crucial to satisfying customer
needs.
• Support Activities: These activities support the primary activities by ensuring the business runs
efficiently. Although they do not directly create value, they enhance the effectiveness of primary
activities.
 Elements of the Value
Chain
• Primary Activities:

1. Inbound Logistics: This involves receiving, storing, and distributing the raw materials needed to create a
product. Efficient management of inbound logistics ensures a steady flow of materials at minimal cost.
2. Operations: This includes the processes that transform raw materials into finished products. Effective
operations management can improve product quality and reduce production costs.
3. Outbound Logistics: This involves the storage, distribution, and delivery of finished products to
customers. Efficient outbound logistics ensures timely delivery and enhances customer satisfaction.
4. Marketing and Sales: These activities focus on identifying customer needs and promoting products to
generate sales. Effective marketing and sales strategies build brand awareness and customer loyalty.
5. Service: This includes all activities related to supporting customers after the sale, such as maintenance,
training, and customer support. Providing excellent customer service can enhance customer satisfaction
and encourage repeat business.
• Support Activities:

1. Firm Infrastructure: This includes general management, finance, legal, planning, and quality management activities
that support the company’s entire value chain. A strong infrastructure supports the efficient functioning of the
organization.
2. Human Resource Management: This involves recruiting, hiring, training, and developing employees who are
integral to the value chain. Skilled and motivated employees are crucial for delivering high-quality products and
services.
3. Technology Development: This includes research and development (R&D), innovation, and other technological
improvements that help to enhance product quality, operational efficiency, and competitive advantage.
4. Procurement: This involves sourcing and purchasing the raw materials, supplies, and equipment needed to carry
out the company’s activities. Effective procurement ensures quality supplies at the best price.

Examples:
• Dabur India: Dabur has developed an extensive distribution network across India, reaching even rural areas. This
gives Dabur an advantage over competitors by allowing it to tap into both urban and rural markets efficiently.
• Godrej Consumer Products: Godrej uses local sourcing for raw materials, which helps reduce costs and supports
local communities. This has contributed to brand loyalty and trust, especially in the Indian market.
 Delivering Customer Value

• Delivering customer value is at the heart of successful marketing and business strategies.
• Customer value refers to the perceived benefits a customer gains from a product or service compared
to the cost of obtaining it.
• Businesses that prioritize delivering customer value focus on understanding customer needs, enhancing
customer experience, and creating products or services that offer meaningful benefits.

• Key Concepts of Customer Value:

 Perceived Value: This is the customer's perception of the benefits they receive from a product relative
to its cost. Customers will assess the utility, quality, and overall satisfaction derived from the product to
determine its value.
 Value Proposition: This is a clear statement by a business that communicates the unique benefits and
value a customer can expect from a product. A compelling value proposition helps differentiate the
product from competitors.
Customer Satisfaction and Loyalty: Consistently delivering value leads to
high customer satisfaction, which in turn builds customer loyalty. Loyal
customers are more likely to make repeat purchases and recommend the
brand to others. (Word of Mouth promotion)

Types of Customer Value:

1. Functional Value: How well a product performs its intended function or meets customer needs.
2. Emotional Value: The feelings or experiences a customer associates with a product.
3. Social Value: The benefits a customer receives from social interaction or status derived from the
product.
4. Economic Value: The monetary savings or cost-benefit ratio associated with the product.
 Examples of Firms Delivering Customer Value

• Asian Paints: Known for its innovative products, Asian Paints provides not only high-
quality paints but also services like color consultations, digital painting previews, and
end-to-end painting solutions. This enhances the overall customer experience and
adds value beyond the product itself.
• Flipkart: Flipkart offers a great customer experience with features like easy returns,
multiple payment options, and a vast range of products. By focusing on customer
convenience and quality service, Flipkart has become one of India’s most popular e-
commerce platforms.
• Ola Cabs: Ola Cabs offers affordable, reliable, and convenient transportation services
across India. With features like Ola Auto, Ola Rentals, and Ola Outstation, the
company meets various customer needs and delivers value through convenience,
pricing, and accessibility.
 Customer Satisfaction
• Customer Satisfaction- Customer satisfaction is the extent to which a product or service meets or
exceeds the customer’s expectations. It indicates the level of contentment customers feel with their
overall experience with a brand.
• Satisfied customers are more likely to make repeat purchases, recommend the brand to others, and
contribute to positive word-of-mouth. While it’s essential for customer retention, customer satisfaction
alone doesn’t necessarily lead to strong customer loyalty.

Key Factors Influencing Customer Satisfaction:

• Product Quality: Meeting promised standards and delivering on features.
• Service Quality: Providing prompt, courteous, and efficient service.
• Pricing: Offering competitive and fair pricing relative to the perceived value.
• Convenience: Making the customer experience seamless, from purchase to delivery.
 Customer Delight
• Customer Delight- Customer delight goes beyond satisfaction by surprising or exceeding
customer expectations in a way that creates a memorable, positive experience. This typically
involves adding unexpected elements to the customer experience that make the customer feel
valued and appreciated.
• Delighted customers are more likely to become loyal advocates for the brand, providing repeat
business and spreading positive word-of-mouth. Customer delight can differentiate a brand from
its competitors and build strong emotional connections with customers.

Key Elements of Customer Delight:

• Personalization: Offering customized experiences or services based on individual preferences.
• Exceeding Expectations: Going above what’s expected in terms of service, product features, or
additional perks.
• Memorable Experiences: Creating unique, enjoyable interactions that leave a lasting impression.
 Differences Between Customer
Satisfaction and Customer Delight

Aspect Customer Satisfaction Customer Delight

Objective To meet customer expectations To exceed customer expectations

Level of Effort Moderate – deliver quality High – provide unexpected,

products/services personalized experiences

Impact Leads to contentment Creates an emotional connection

and loyalty

Retention Effect Likely to retain customers Likely to create brand advocates

Including a personalized thank-you

Example Timely delivery as promised note
 Apple: Focus on the User Experience
• Apple is known for its focus on user experience. It is what lies at the heart of
its marketing strategy. Apple's best marketing strategies focus on
examples making the experience easier. Its products are designed to make
users' lives easier and more enjoyable. It achieves this through a
combination of:
 Elegant design.
 Intuitive interfaces.
 Innovative features.

• It creates an emotional connection between the brand and its consumers.

• The company has become one of the most valuable brands in the world. As
of 2023, the Apple brand had a more than $2.389 trillion valuation. This
makes it the most valuable brand in the world.
 Nike: Emotional Branding
• It aims to create a strong emotional connection between the brand and the
customers. Nike's advertising campaigns feature athletes and sports figures.
They emphasize the idea that the brand is not just products. It is a way of
life!
• Nike's marketing message focuses on "just do it." It encourages people to go
above and beyond and achieve their goals. This message has resonated with
customers all over the world. Now Nike is one of the most successful sports
brands in history.
• Nike uses social media to promote its brand. For example, it can be videos
of athletes overcoming challenges. The purpose of it is to inspire and
motivate consumers.
• The company has become one of the world's most recognizable and
valuable brands. As of 2023, the Nike brand stands at $187.52 billion. This
makes it one of the most valuable sports brands in the world.
 Spotify: Offer a Different
User
• Spotify is a musicExperience
streaming platform. It has disrupted the music industry by
offering a different user experience. Spotify's best marketing strategy focuses
on offering a personalized user experience. It adjusts to individual users. It is all
shaped by the listening habits of the customer. Spotify uses data to understand:
 Preferences.
 Behaviors.
 Users' habits.
• Spotify analyzes customers' listening habits. It is how they create a unique user
experience. It allows users to stay connected and come back again and again.
• It also uses social media to promote its brand. It creates curated playlists and
shares them on social media. This user-generated content helps promote the
brand. And, of course, it increases engagement.
• The company has grown rapidly since its launch in 2008. As of 2021, Spotify has
over 356 million monthly active users. It makes it the world's largest music
streaming platform.