Chapter 1

Introduction to Marketing

Chapter Index

S. No

Reference No

Particulars

Slide

From-To

1 Learning Objectives 3

2 Topic 1 Concept of Marketing 4-9

3 Topic 2 Marketing Philosophies 10-12

4 Topic 3 Marketing Environment 13-18

5 Topic 4 Marketing Mix 19-23

Learning Objectives

Explain the concept of marketing

Discuss various marketing philosophies

Describe major elements of marketing environment

Discuss the marketing mix

Explain the concept of online marketing

State the importance of international marketing

Concept of Marketing

Marketing is a process that involves designing, implementing, formulating

and controlling strategies to facilitate the exchange of goods and services

between organisations and customers.

According to American Marketing Association,

“Marketing as a process of planning and executing the

conception, pricing, promotion and distribution of ideas,

goods and services to create exchanges that satisfy

individual and organisational goals.”.

According to Philip Kotler, “Marketing as the task of creating,

promoting, and delivering goods and services to consumers and

businesses; it is defined as 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.”

Core Concepts of Marketing

Need, want and

demand

Market

Exchange

Value of satisfaction

Competition

Integrated marketing

Core Concepts of Marketing

Scope of Marketing

Scope of Marketing

Goods Services Experiences

Events Persons Places

Properties Information Ideas

Nature of Marketing

Marketing is an enormous subject and different people perceive the concept

of marketing from different points of views.

Natu

re o

f M

ark

eti

ng

Marketing focuses on customers

Marketing focuses on satisfying exchange relationships

Marketing happens in a dynamic environment

Objectives of Marketing

The marketing strategies of an organisation are designed in tune with various marketing objectives:

Creating demand for products by identifying the needs and wants of customers.

Increasing the market share of the organisation.

Building the goodwill of the organisation in the market.

Increasing profits and achieving long-term goals through customer satisfaction.

Marketing Philosophies

Philosophies Guiding Marketing Management

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing

Concept

The management of marketing

guidelines should be based on

certain philosophies which

could fulfil all marketing objectives of an organisation.

Marketing management can be described as a process of creating, building and maintaining beneficial

products.

Marketing Environment

The marketing environment of an organisation consists of an internal

and external environment. By monitoring the marketing environment,

marketers try to predict potential changes in terms of opportunities and

threats for the business.

Micro Environment Macro Environment

Categories of the

Marketing Environment

Micro Environment

Micro environment refers to an environment which links closely to an organisation and affects its activities directly. Micro environment can be divided into:

Supply side

Supply side environment includes suppliers, marketing

intermediaries and competitors who provide raw materials or

supply products.

Demand side environment

Demand side environment includes customers who consume

products.

Major Micro Environment Forces that Affect an Organisation

Suppliers Marketing

Intermediaries

Merchants

Agents

Facilitators

Customers Competitors Public

Media Public

Financial Public

Government Public

Citizen Public

Local Public

Internal Public

Macro Environment

Factors that affect the macro

environment of an organisation

Demographic environment

Economic environment

Inflation

Interest rates

Unemployment

Customer income

Monetary and fiscal policy

Natural environment

Natural resources

Weather

Pollution Socio-cultural environment

Technological environment

Pace of technological change

Research and development

Increased regulation Political and legal environment

Macro environment involves a set of environmental factors that is beyond

the control of an organisation.

Marketing Mix

A marketing mix can be defined as a collection of tools that can be used in achieving

marketing objectives. It uses seven Ps as its tools to decide the marketing strategy.

7Ps of Marketing

Mix

Product

Price

Place

Promotion People

Process

Physical Evidence

Online Marketing

Online marketing is basically an e-commerce

technique that allows consumers to purchase products and services

using the Internet.

The term „online marketing‟ is used synonymously with

„online shopping‟ and „online retailing.‟

Online marketing has not only ensured the

growth of marketers but also helped marketers to

reach out to the maximum number of consumers in a short

span of time.

Online Marketers

The points that are required to be taken into account while performing online marketing are as follows:

With online marketing, customers have complete control of the website. This is a pivotal feature that needs to be taken care of.

If the content is uninteresting to the customer, the customer will not access the content and instead will shift to another website.

The content should be striking and must be able to gain the attention of customers.

The technology advancement also plays a pivotal role in online marketing. The adoption of new technological devices by the

marketer is very important.

International Marketing

International marketing is an extension of an organisation‟s local marketing strategy with respect to international market identification, targeting and decision making.

AMA defines, “international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

An organisation that markets its products in more than one country is called Multinational Corporation (MNC). The country from which the MNC originally belongs is the home country; whereas the country where the MNC operates is the host country.

International Marketing Process

2. Deciding whether to enter

the international market or not

1. Appraising the international

marketing environment

5. Deciding the marketing mix

4. Deciding how to enter

6. Deciding on the marketing

control

3. Deciding which market to

enter