Fundamentals of Marketing

By : Suresh Sapkota
 Definition
“Marketing is the process of planning
and executing the conception,
pricing, promotion and distribution
of ideas, goods and services to create
exchanges that satisfies individual
and organizational goal.”

-American Marketing Association

Dr. Philip
Kotler defines marketing as
“the science and art of
exploring, creating, and
delivering value to satisfy
the needs of a
target market at a
profit. Marketing identifies
unfulfilled needs and
desires. It defines,
measures and quantifies
the size of the
identified market and the
profit potential.”
Evolutions of the marketing philosophies
1.Production Concept
Customers will buy and consume products that are easily available and
affordable. So, management should more focus on production
efficiency and distribution. This concept is useful when demand is
greater then supply. Coca cola and electric good of china are using this
concept in modern time.
 2. Product Concept

Customers will favor the products that offer the most quality and
innovative features.
Most focus on quality management and research and development
activities.
Continuous improvement is necessary
Endless job
Management may lose long term focus
Some beverages and cell phone companies use this concept
3. Sales concept

The idea that consumers will not buy enough of the firm’s products
unless it undertakes a large scale selling and promotion effort.
Aggressive selling technique used by life insurance companies and door
to door sellers.
Aim is to sell what marketers made rather then what market need
Highly risky concept due to post purchase behavior
4. Marketing Concept

Achieving organizational goals depends on knowing the needs and

wants of target market and delivering the desired satisfaction better
than competitors do.
Job is not to find right customers rather to find right product to
customers.
Focus on need of buyer
Almost all companies use this concept, mobile companies highly use it.
 5. Holistic Marketing Concept
Attempts to recognize scope and complexities of marketing activities
Based on development, design and implementation of marketing programs,
process and activities
Recognize that everything matters
5 concepts of holistic marketing
a) Relationship marketing
Developing deep and enduring relation with all people and organizations
that directly and indirectly affect marketing activities.
Building mutually beneficial and long term relation with key parties
b) Integrated Marketing
Integration of all mixes and activities to communicate and deliver value to customer.
c) Internal Marketing
Hiring, training and motivating able employees and convincing them about
marketing activities.
d) Social marketing
A company’s marketing decisions should consider consumers’ want, company’s
requirement and interest of society in long term.
Every marketing activities is evaluated on the basis of social benefit
e) Performance Marketing
Conducting marketing activities by considering financial performance of
organization
ROI, ROE, NPAT
Meaning of Marketing Management

“Marketing management is branch of broad management area, that is

concerned with direction of purposeful activities towards the
attainment of marketing goals.”
-Cundiff and Still
Broad marketing goals
a) Satisfaction of customer need
b) Increase in sales volume
c) Organizational profit
Marketing management is the organizational discipline which focuses
on the practical application of marketing orientation, techniques and
methods inside enterprises and organizations and on
the management of a firm's marketing resources and activities.
Tasks of marketing management

• Develop marketing strategies

• Create marketing information system
• Build customer relationship
• Shape marketing mix
• Deliver and communicate value
• Build strong brand
• Create growth
• Implementation and control
Marketing challenges of 21st Century
• Globalization
• Technological change
• Direct marketing
• Service marketing
• Outsourcing
• Relationship marketing
• Product differentiation
• Global life style
• High-tech industries
• Ethical marketing
 Overcoming new marketing challenges
• Use of smart technology
• Learning organization
• Knowledge management
• Focus on high value customer
• Differentiation
• Specialization
• Improve communication
• Intangibility
• Improve internal marketing
 Relationship Marketing
Building long term and mutually satisfying relation with customer and other
stakeholders.
Customer relationship marketing
Customer development process
1. Prospect – potential customer
2. First time customer
3. Repeat customer
4. Client
5. Member
6. Advocate
7. Partner
 Relevance of CRM
• Minimizes advertising cost

• Reduces risk

• Quality assurance

• Personalizing product

• Sustainable profit

• Customer feedback
 Green Marketing
Identifying, anticipating and satisfying the requirements of customer and
society in a profitable and sustainable way.
Environmentally safe and environment preserving practices of marketing
Relevance
a) Grab opportunity
b) Government pressure
c) Competitive pressure
d) Social responsibility
 Practices of green marketing

• Digital tickets

• No polythene bags

• Sustainable packaging

• Ecosystem compatible production

• Eco labelling

• Government regulations
E-marketing
Marketing principles and techniques via electronic devices and
internet. Process of marketing products electronically.
No/less use of intermediaries, fusion of IT with traditional marketing
Relevance
a) Elimination of middlemen
b) Enhance promotion
c) Low cost
d) Time saving
e) Around the clock marketing
f) Large market
Marketing Mix Components
1. Product: Offering that satisfies customer need. Can be goods,
service, idea, experience, event, place, property, organization or
information.
Components of Product Mix
Product variety
Quality
Product design
Feature
Branding
Packaging
Service
Warranties
2. Price
Amount of money customer pay for the product
Components
List price
Terms of sales
Discount
Credit availability
3. Place/Distribution

Various activities undertaken to make product available and accessible

to target customers.
Components
Channels of distribution (levels of channel members, channel selection,
channel conflict)
Physical distribution (transportation, warehousing, order processing,
material handling, inventory management)
4. Promotion

Activities undertaken to communicate and promote the product to

target audience. External communication.
Components
Advertising
Publicity
Sales promotion
Public relation
Personal selling
 Extra components for service marketing
5. People
All the staffs (internal customers) who needed to be happy before making
external customers happy
Components
Recruitment
Selection
Training and development
Motivation
Reward management
Conflict management
 6. Process
Operational flow of activities and steps in service delivery process that
customers need to follow in order to get the service. Service differentiation
is also achieved through the difference in service delivery process.
Components
Flexibility
Use of technology
Self-service process
Number of steps
 7. Physical Evidence
Physical facilities, tangible communication materials and technology that
makes the service tangible.
Components
Design
Building
Garden
Furniture
Equipment
Machines
Dress-ups