According to American Marketing Association (AMA),

Marketing is an organizational function & a set of

processes for creating, communicating & delivering
value to customers and for managing customer
relationships in ways that benefit the organization
and its stake holders.
In other words, Marketing is the process of getting
the right goods to the right consumer at the right
place at the right time and at the right price.
 Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive
Consumers favor products that
Product
Product Concept
Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling
Selling Concept
Concept the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
Marketing
Marketing Concept
Concept markets & delivering value
better than competitors
Product: Line(width/categories), Design,
Range(depth/variant of each product line like lux is available
in four scents), Packaging, Labeling, Branding, Quality, After
Sales Services
Place: Transportation, Warehousing, Inventory, Channels of
Distribution
Price: Policies & Strategies, Margin, Terms of Credit, Terms of
Delivery
Promotion: Advertising, Sales Promotion, Personal Selling,
Trade Fairs, Publicity
Mega/Macro
Demographic, Economic, Natural, Legal,
Technological, Political, Socio cultural

Micro
Market/Demand, Consumer, Industry, Govt.
Policies, Supply Related Factors
According to the AMA ,Green Marketing is the marketing of
products that are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities,
including product modification, changes to the production
process, packaging changes, as well as modifying advertising.
Other similar terms used are Environmental Marketing and
Ecological Marketing.
The marketing of "environmentally friendly" products; marketing
which takes into account environmental issues such as
wastefulness of the earth's resources, pollution, the release of
toxins into the atmosphere, etc.
Dividing a potential market into segments in order to
conquer them
Grouping potential buyers into different categories
having common desires.
Disaggregating a market into sub markets
BASES OF MARKET SEGMENTATION
Consumer characteristics: geographical,
demographical, psychographic
Consumer responses: benefits, usage, loyalty
Market segmentation
Market targeting- selecting one or more
segments to enter
Market positioning- for each target segment,
establish & communicate the distinctive
benefits of the co’s market offering.
Process where individuals decide whether, what,
when, where, how and from whom to purchase goods
and services.
Factors Influencing this behavior:
Cultural : culture, sub-culture, social class
Social : reference group, co-working group, family
Personal : age, occupation, life styles
Psychological : motivation, attitude, perception
 Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior
 Stage Introduction Growth Maturity Decline
Sales Low sales Rapidly rising Peak sales Declining
Costs High Avg. Low Low
cost/customer cost/customer cost/customer cost/custom
er
Profits Negative Rising profits High profits Declining
Customer Innovators Early adopters Middle Laggards
s majority
8 STAGE MODEL:
Idea generation
Idea screening
Concept development and testing
Marketing strategy development
Business analysis
Product development
Market testing
Commercialization
Core benefit: service for which the customer is
buying
Basic product: converting a benefit into a basic
product
Expected product: a set of attributes and
conditions buyer normally expects
Augmented product: exceeding customer
expectation
Potential product: searching for new ways to
distinguish their product/offering
Convenience: frequently purchased, no evaluation,
nearby available, low in price, substitutes are
purchased due to unavailability
Shopping: not so frequently, not at nearby,
comparison is made, wait is there, high costs, 2 to 3
visits
Specialty: huge investments, once in life, family
involved, not instantly
Definition:
MR is a systematic gathering, recording and
analyzing the data about problems relating to the
marketing of goods and services.

Research can be on: market, demand, product,

brand, competition, distribution, price, promotion,
selling methods
Defining
Defining the
the Developing
problem and
problem and Developing Collect
Collect the
the
research the
the research
research information
research plan
plan information
objectives
objectives

Present
Present the
the Analyze
Analyze the
the
findings
findings information
information
Primary Data: freshly gathered for a specific
purpose by way of a surveys, experiments,
etc.

Secondary Data: data that were collected for

another purpose and already exists
somewhere.
Observational
Observational
Focus-group
Focus-group
Survey
Survey
Behavioral
Behavioral
Experimental(cause/effect)
Experimental(cause/effect)
 Also called trade channels or distribution
channels
 Are sets of interdependent organizations

involved in the process of making a product

or service available for use or consumption
 Examples of such are wholesalers,

distributors, retailers
 Direct Channel: when a producer and
ultimate consumer deal directly with
each other.

 Indirect Channel: when intermediaries

are inserted between the producer and
consumers and perform numerous
channel functions.
 Involves the manufacturer using its sales
force and trade promotion money to induce
intermediaries to carry, promote and sell
the product to end users.
 Appropriate when there is low brand loyalty

in a category brand
 Involves the manufacturer using advertising
and promotion to persuade consumers to
ask intermediaries for the product, thus
inducing the intermediaries to order it.
 Appropriate when there is high brand

loyalty
 Exclusive distribution: severely limiting the no. of
intermediaries, used when the producer wants to
maintain control over the service level and outputs
offered by the resellers.
 Selective distribution: involves the use of more than a
few but less than all of the intermediaries who are willing
to carry a particular product, used by established or new
co.’s seeking distributors
 Intensive distribution: consists of the
manufacturer placing the goods or services
in as many outlets as possible, strategy is
generally used for items such as tobacco
products, snack products, for which the
consumer requires a great deal of location
convenience.
Vertical marketing system-comprises the producer, wholesaler(s)
and retailer(s), each acting as a separate business seeking to
maximize its own profits, even if it reduces profit as a whole.
Horizontal marketing system-in which two or more unrelated
companies put together resources to exploit an emerging
marketing opportunity. E.g.-post offices selling insurance and
mutual funds
Multichannel marketing systems-occurs when a single firm uses
two or more marketing channels to reach one or more
customer segments
Brand: a name, term, sign, symbol or design intended to
identify the goods or services of a seller and
differentiate it from the others.
Brand equity: the added value endowed to products and
services.
Brand image: perceptions and beliefs held by consumers
Brand line: all products or category extensions sold under
a particular brand name
Brand portfolio: the set of all brands/brand lines a
particular firm offers for sale to buyers in a particular
category
Market skimming pricing: prices of a product are
high and are lowered over time
Market penetration pricing: prices are set low
initially in order for a product to get deeply
penetrated into the market to drive higher sales
volume for price sensitive customers
Price discrimination: charging different prices for
the same goods or services to different
customers.
Warranty: formal statements of expected product
performance by the manufacturer, products under
it can be returned back to manufacturer or repair
centre for repair, replacement or refund, are legally
enforceable.
Guarantee: can be general or specific, reduce
buyer’s perceived risk, suggests that product is of
high quality and the co. & its service performance
are dependable, effective when the c. or product is
not known and when the quality is superior than
others
Consists of people, equipment and procedures
to gather, sort, analyze, evaluate and
distribute needed, timely and accurate
information to marketing decision makers.
Developed for internal company records,
marketing intelligence activities and
marketing research Role is to assess the
manager’s in the information needs
Internal records system supplies results data
MIS supplies happenings data.
Marketing intelligence system is a set of procedures &
sources mangers use to obtain everyday information
about developments in the marketing environment.
Collected by reading books, newspapers, and trade
publications; talking to customers, suppliers and
distributors
 TOP CUSTOMERS
MANAGEMENT

FRONT LINE PEOPLE

MIDDLE
MANAGEMENT
MIDDLE
MANAGEMENT
FRONT LINE PEOPLE

TOP
CUSTOMERS
MANAGEMENT
(PROFIT CENTRE)

MODERN CUSTOMER
TRADITIONAL ORIENTED
APPROACH
(EBAY.COM)
Is an organization wide approach to continuously
improving the quality of all the organization’s
processes, products or services.
Product and service quality, customer satisfaction and
co. profitability are connected.
Higher levels of quality result in higher levels of
customer satisfaction which supports higher prices
and often lower costs.
Process of managing detailed information about
individual customers and carefully managing
all customer “touch points” to maximize
customer loyalty.
Touch point means when u encounters a
product or brand.
e.g. touch point for a hotel includes reservation,
check in and check out, room service
Basic marketing-salesperson simply sells the product
Reactive marketing-salesperson sells the product &
encourages the customer to call if having any questions
Accountable marketing-salesperson calls the customer to
check whether product is meeting expectations
Proactive marketing-salesperson contacts the customer from
time to time its suggestions about improved new products
Partnership marketing-co. works continuously with its large
customers to help improve their performance
Form-shape, size, physical structure
Features-varying features with basic feature
Performance quality-level at which the
product’s primary characteristics operate
Conformance quality-degree to which all the
produced units are identical and meet the
promised specification
Durability-measure of the product’s expected
operating life under natural or stressful
conditions, is a valued attribute for certain
products e.g. vehicles or kitchen appliances
Reliability-measure of the profitability that a
product will not malfunction or fail within a
specified time period
Repairability-measure of the ease of fixing a
product when it malfunctions or fail
Style-product’s look and feel to the buyer
Is an act or performance that one party can offer to another
i.e. essentially intangible & does not result in the ownership
of anything.
Characteristics:
Intangibility
Inseparability-produced and consumed simultaneously while
this is not true for physical goods
Variability- who provide and when and where it is provided so
it is highly variable
Perishability(ability to expire)-can’t be stored
 Product
 Place
 Price
 Promotion
 People
 Process
 Physical Evidence
Pure click- those that have launched a web site
without any prior existence previously
e.g.- ebay
Brick and click- existing companies that have
added an online site for information or e-
commerce.
The overall evaluation of a company’s
strengths, weaknesses, opportunities and
threats is called SWOT analysis. It involves
monitoring the external and internal
marketing environment.
External environment analysis(opportunity and
threat):
A marketing opportunity is an area of buyer need &
interest in which there is a high probability that a co.
can profitably satisfy that need.
An environmental threat is a challenge posed by an
unfavorable trend or development that would lead, in
the absence of defensive marketing action, to lower
sales or profit.
Internal environment analysis (strengths and
weaknesses):It is the evaluation of its internal
strengths and weaknesses
 Logical process that marketing follows.
 This process consists of analyzing

marketing opportunities; selecting target

markets; designing marketing strategies;
developing marketing programs and
managing the marketing effort.
 Developing marketing strategies and plans
 Capturing marketing insights
 Connecting with customers
 Building strong brands
 Shaping the market offerings
 Delivering value
 Communicating value
 Creating long term growth
 Is a form of market organization for a
commodity in which there is only one seller
of the commodity, no close substitute for the
commodity sold by the only seller.
 Features: one seller & large no. of buyers, no
close substitutes, restriction on the entry of
new firms, informative selling costs(initially
occurred)
 Is a form of market in which there is a large
no. of buyers & sellers.
 Features: large no. of small(no seller able to

dominate the market) , unorganized

firms(no union) ; large no. of small,
unorganized buyers; homogenous
products(identical); free entry & exit
 Is a market situation in which there are many
sellers of a particular product, but the
product of each seller in some way
differentiated in the minds of consumers
from the product of every other seller.
 Features: large no. of sellers; differentiated
products(not completely different/identical);
inrestricted entry
 Is that form of imperfect competition in
which there are only a few firms in the
industry producing either an homogenous
product or producing products which are
close but not perfect substitutes for one
another.
 Type: Pure(homogenous products) &
differentiated(not homogenous)
 It is that function of an enterprise which
concerns itself with the direction and control
of the various activities to attain the business
objectives
 In other terms, management is the planning,
organizing, direction, co-ordination and
control of the technical, financial and
accounting activities.
 Top management: owners, shareholders,
chairman, managing director
 Middle management:

functional/departmental heads like

purchase manager, production manager.
 Lower or operational level management:

superintendents, foreman, supervisiors

 Operative functions: purchasing,
production, marketing, financial, personnel

 Managerial functions: planning, organizing,

controlling, directing, staffing, co-ordinating
Max Webber- bureaucratic model
Frederick W. Taylor- scientific management
Henry Fayol- administrative management and
also given 14 principles of management
Elton Mayo- human relations approach and
also conducted Hawthorne experiments
 Formal: structure of relationships
deliberately built up by the top management
to realize the objectives by virtue of power

 Informal: network of personnel and social

relationships which arise spontaneously when
people working together interact.
 Managerial practice of getting things done through
others by sharing the authority with them. It
consists of granting authority or the right to
decision making in certain defined areas and
charging the subordinates with responsibility for
carrying through an assigned task.
 Elements: assignment of tasks and duties;
granting authority to perform the duty; creation of
an obligation, accountability
 Systematic and consistent reservation of
authority at central points within an
organization. Or it is that organisation
where the role of the subordinates is
reduced.
 No delegation of authority, remains at

central points to the top executives

 Systematic effort to delegate the lowest
levels all authority except that which can
only be exercised at central points. Or it is
simply a matter of dividing up the
managerial work and assigning specific
duties to the various executive skills
 Five kinds of needs
 Physiological needs: food , shelter , clothes
 Safety needs: insurance, security of job
 Social needs: love , affection, friendship
 Esteem needs: self respect, self confidence, status,
recognition
 Self actualization needs: need for self development, self
actualization, self advancement, desire to become more
and more what one is, to become everything that one is
capable of becoming
Advertising: any paid form of non personal
presentation and promotion of ideas, goods
or services by an identified sponsor
Can be print & broadcast ads, posters,
leaflets, directories, display signs, point of
purchase displays, audio visual material,
video tapes, packaging inserts
 Sales promotion: a variety of short term
incentives to encourage trial or purchase of a
product or service.
Can be through contests, games, lotteries,
gifts, samples, demonstrations, coupons,
trade-in-allowances, rebates
 Personal selling: face to face interaction with

one or more prospective purchasers for the

purpose of making presentations, answering
questions and procuring orders
Can be through sales presentations, sales
meetings, incentive programs, samples,
fairs and trade shows
 Direct marketing: use of mail, telephone,

fax, e-mail, or internet to communicate

directly with or dialogue from specific
customers and prospects.
Can be through mailings, telemarketing, e-
shopping, tv shopping, e-mail, voice mail.