UNIT 1

Introduction

· Marketing- Meaning, definition, Marketing

concepts, nature, approaches, functions, goals,
Types of Marketing, Process and Importance.
· Marketing Segmentation, Mix, Targeting &
Positioning & Marketing Management.
· Service Marketing Concept, Characteristics,
Challenges of marketing tourism.
 UNIT – 1
MARKETING
MEANING OF MARKETING:

Marketing refers to the process of

ascertaining consumer needs, converting
them into products and services, and
then moving the product or service to
the final consumer segment with
emphasis on profitability and customer
satisfaction, ensuring the optimum use of
the resources available to the
organization.
 DEFINITION OF
MARKETING:
Philip Kotler, the marketing guru,
marketing is a social and managerial
process by which individuals and
groups obtain what they need and
want through creating and exchanging
products and value with others.
 Concepts of Marketing
 NEED:
 Needs can be physical
like hunger, clothing,
shelter and sex.
 If unsatisfied it leaves a
person unhappy and
uncomfortable.
 Needs can also be social
like love and
belongingness, self-
esteem like status and
self-actualization needs.
Want(s)
Wants are the form taken
by human needs as they are
shaped by culture and
individual personality.
These are essentially
dependent upon needs. For
example, a person in North
India would satisfy his
hunger with rajma and
chawal while a person from
South India would like to
have fish curry and rice.
 Demand(s)
 Wants backed by willingness
and purchasing power is
known as demand.
 The top marketing companies
like HUL, Idea and Airtel etc.
first understand needs and
wants of customers and then
fulfil the needs, wants and
demands by conducting
consumer research and get
regular feedback from their
salesmen in the market about
unfulfilled customer needs
 Production Concept
 Production concept lays
emphasis on affordability and
availability of products.
 Affordability is possible by
reducing cost of production by
producing large quantities and
achieving mass production.
 Availability is possible by mass
distribution by making the
product widely available. This
philosophy states that any
amount of goods produced will
sell if it is available and
affordable to customers.
Product Concept
The companies had to
innovate products and started
giving more choices to
customers which lead to
product concept.
This concept is based on the
philosophy that consumers
will prefer products that have
better quality, performance
and features.
It emphasises on innovation
to produce better quality
products.
 SELLING
CONCEPT
 Selling is the act of influencing a
customer to buy a product or
service.
 Businesses had to concentrate on
ways of selling their products.
 The concept is based on the belief
that customers, be individual or
organizations will not buy enough of
the organization’s products unless
they are persuaded to do so.
 Organizations should undertake
selling and promotion of their
products for success.
 Thus making good products was not
enough rather focus changed to
pushing the sales of products
through aggressive selling.
 MARKETING CONCEPT
 Marketing starts before the
product; service or solution
is ready and continues even
after the sale has been
made.
 In marketing company
makes honest efforts
towards retaining the
customers and also
attracting new ones.
 Customer satisfaction is the
strongest pillar of marketing
where company assures that
customers are satisfied after
buying a product or service.
SOCIETAL MARKETING
CONCEPT
Societal Marketing can be
defined as a marketing function
in which the organizations
identify the needs and wants of
the target market and then align
the marketing activities of an
organization in such a manner
that their marketing efforts are
socially responsible and thereby
help the organization in gaining
the trust of the society by having
an image of a socially
responsible organization, but still
remaining profitable.
 MARKETING CONCEPT VS
SELLING CONCEPT
MARKETING CONCEPT SELLING CONCEPT
Marketing is the process of creating Selling is the process of encoring
value for customer and delivering customers for increasing sales.
goods and services for earning
profit.
The objective of this concept is to The objective of selling concept is to
satisfy customer through goods and increase sales of goods and services.
services.
The scope of marketing concept is The scope of selling concept is
wider narrow
This concept emphasis on customer This concept emphasis on products
needs. or services
This concept earns profit through This concept earns profit through
customer satisfaction attractive sales and promotion.
Consumers determine price. Cost determines price.
This concept gives equal importance This concept gives importance on
NATURE OF MARKETING
 APPROACHES TO STUDY
MARKETING
1. Product or Commodity Approach:
This approach undertakes the study of
marketing on the basis of a commodity.
 This approach is termed as –
“descriptive approach”.
In this method, the commodity serves
as a focus around which the
organizational and managerial aspects of
marketing are studied.
 2. Institutional Approach
 Under this approach, analysis of different
institutions engaged in marketing is
undertaken.
 The activities performed by each
institution form a part of the entire
marketing process.
 Under this approach marketing process is
split up into three institutional functions
namely, concentration, equalization and
dispersion.
 3. Functional Approach
 Functional approach splits down the
field of marketing into a few functions.
 The purpose is to enable one to
separate the essential from the non-
essential elements.
 According to this approach (designed
by A.W. Shaw), middlemen perform the
following functions—sharing the risk,
transporting the goods and financing
the operations.
 4. Managerial Approach
 This approach lays emphasis on the
application aspects of marketing
problems.
 The changes in marketing are mainly
due to two factors—controllable and
non-controllable.
 5. Societal Approach
 This approach mainly focuses on the
environmental factors like
sociological, cultural, political, legal,
etc., and marketing decisions and
their impact on the society.
 It gives importance to the society
and not to the customer.
 Other types of Marketing
Approaches
1. Scientific Approach
2. System Approach
3. Technology Approach
4. Legal Approach
5. Economic Approach
 Functions of Marketing
• Promotion: fostering brand awareness and
educating target audiences on the products or
services.
• Selling: communicating with potential customers
and pursuing sales leads.
• Product and service management: developing
and improving the quality and features of the
products or services.
• Pricing: setting the optimal price for the products
or services based on the market and the costs.
• Marketing information management:
collecting and analyzing data on customer needs,
preferences, and behavior.
 Functions of Marketing
conti……
 Customer Service: A company has to
set-up various kinds of customer service
based on their product
 Distribution: Distribution refers to the
movement of consumer goods to the
point of consumption
 Warehousing: Warehousing of products
creates time utility. It is often seen that
there is a gap between the time a
product is produced and the time when it
is consumed
Marketing Goals
 Types of Marketing
1. Digital marketing is an overarching
term for any kind of promotional activity
that leverages the internet as the
messaging channel. Accordingly, even
two different marketing tactics,
like SEO and PPC, are considered digital
marketing.
2. Offline marketing (often referred to as
traditional marketing) is an overarching
term for any kind of marketing done
without the use of the internet.
3. Inbound marketing is a marketing strategy
that aims to “pull customers in” with relevant and
useful content.
For example, a customer searches for something on
Google and stumbles upon a relevant article on a
company’s website.
4. Outbound marketing is an “interruptive” form
of marketing where a company pushes a message
about a product out to a prospect through cold
calls, cold emails, direct mail, most forms of
advertising, etc.
Eg. Places like Times Square in New York are
examples of outbound marketing reaching its peak,
both in terms of the space used to get the message
across and the budget needed to broadcast it
5. Content marketing is the process of
creating and distributing content to attract
and retain customers.
Content marketing is usually practiced as
a form of inbound marketing, where the
content offers a solution to a problem that
a prospect is researching.
6. Search Engine Marketing (SEM) is a
term used to describe promotion
messaging published through SERPs. SEM
divides the messaging into two categories:
paid results and organic results.
7. Growth marketing is the process of
increasing a company’s revenue by
applying an experiment-driven and
integrated approach to all stages of
attracting customers.
8. B2B marketing, or business-to-
business marketing, refers to the
marketing of products or services by
businesses to other businesses.
9. B2C marketing, or business-to-
consumer marketing, refers to the
marketing of products or services by
businesses to consumers.
10. Affiliate Marketing is a type of
promotion where a company pays
commission to an external website for
traffic or sales generated by it.
11. Social Media Marketing is the use
of social media like Facebook, Twitter, or
LinkedIn to market a company’s products
or services.
12. Brand marketing is a term to
describe actions that promote a product
or service in a way that highlights the
brand and shapes its image.
13. Direct marketing is a strategy where
the company directly communicates with the
target audience instead of using mass media.
14. Influencer marketing is the practice of
working with influential people to promote
brands, products, or services.
15. Email marketing is any kind of
marketing messaging done through the
channel of email.
16. Word-Of-Mouth Marketing (WOMM) is
the process of influencing and encouraging
natural discussions about a product, service,
or company.
17. Event marketing is a marketing
tactic where branded events are used as
a way to communicate with the target
audience and promote products or
services.

18. Guerrilla marketing is a promotion

tactic that involves using unexpected
and unconventional interactions to evoke
strong emotions and provoke word
of mouth.
MARKETING PROCESS
The marketing process, in simplest words, involves
everything from need identification to customers’
satisfaction. It also includes a different string of actions
and reactions, while the ultimate goal is customer
satisfaction.
1. Understanding the Marketplace and the
Customer Needs and Wants
The process starts with the identification of customer
needs. However, it can grow to identify their wants and
demands as well.
•Understanding the local market/area/country/region.
•Identifying the interests of the target
audience/potential customers.
•Evaluate how much people can spend on your product.
i.e., their buying power
2. Design a Customer-Driven Marketing
Strategy
At this stage, a business needs to find
answers to these two questions;
Which group of consumers should we
target- identification of target market.
How can (or should) we satisfy the
needs/wants of that group- selecting a value
proposition.
Apart from that, they need to identify the
local market trends and the level of intensity
of customers’ needs
3. Choosing The Target Audience
It is simply impossible to satisfy everyone or all types
of audiences. That means you have to divide the
market into small segments and then choose the one
who can target. one can choose multiple market
segments if they have the funds, workforce, and all
other resources
4. Selecting The Value Proposition

Decide the target audience and identify their

needs/wants, the next thing on the agenda is how
company can satisfy that specific need of that group
of customers. This is a stage where they
can differentiate company brand in the market.
The value proposition includes the benefits and value
they can provide to the customers.
5. Build an Integrated Marketing Program that
Delivers Superior Values
As a marketer, they are now clear about the company’s
marketing strategy’s outline. The next step is to build an
integrated marketing plan that focuses on providing value to
the customers. At this stage, they need to think about these
aspects;
•Product specifications and their feasibility
•Budget
•Mediums of product promotion
•Room for product development/improvement in future
•Price

Basically, we are talking about a company’s marketing mix.

A marketing mix is a combination of different marketing
tools that a business uses to practically implement its
marketing strategies.
 MARKET SEGMENTATION
 Market Segmentation is the process of dividing a
heterogeneous market (aggregated) into
homogeneous sub unit (segregated).
 It is the identification of portions of the market
that are different from one another or share a
similar set of needs.
 TYPES OF MARKET SEGMENTATION
I. Demographic Segmentation
II. Psychographic Segmentation
III. Geographic Segmentation.
IV. Behavioral Segmentation.
V. Socio-economic Segmentation.
DEMOGRAPHIC SEGMENTATION
 Psychographic
Segmentation
Psychographic segmentation groups people based on
their psychological traits. It tries to understand the
factors that influence how people think, their
principles, and their motivations for doing
different things.
 GEOGRAPHIC
This is aSEGMENTATION
strategy that involves grouping
people based on the geographic region in
which they live or work. Depending on the size of
your business, we can segment the audience by
country, state, city, or even their neighborhood.
 Socio-economic
Segmentation.
The populations are broken down
according to income, employment,
education, social class and home / car
ownership.
 MARKETING MIX -
DEFINITION
According to Philip Kotler, “ Marketing mix is
the combination of four elements called the
4P’s : Product, Price, Promotion and Place that
every company has the option of adding,
subtracting or modifying in order to create a
desired marketing strategy”.
According to Kotler and Armstrong,
“Marketing mix is the set of tactical marketing
tools that the firm blends to produce the
response it wants in the target market”.
 TYPES OF MARKETING MIX
1) Product marketing mix – It comprises
of Product, price, place and promotions
and is mainly used in case of tangible
goods.

2) Service marketing mix – The service

marketing mix has three more
variables included which are people,
physical evidence and process.
Marketing Mix
 Product - A product is an item that is
built or produced to satisfy the needs
of a certain group of people. Product
can be tangible good or intangible
service. It is defined as anything that
can be offered to a market to satisfy a
want.
(a)Tangible goods: They have a physical
form and can be touched and seen.
(b)Intangible goods: Intangible goods
refer to services provided to the
individual consumers or to the
organisational buyers
 Price - The price of the product is basically
the amount that a customer pays for
consuming it. Price is a very important
component of the marketing mix definition.
It is crucial in determining the organization’s
profit and survival. Changes in price affect
the demand and sales of the product.
 Promotion - Promotion represents the
different methods of communication that
are used by marketer to inform target
audience about the product. It is an
essential component of marketing as it can
boost brand recognition and sales.
 Place - Place or distribution refers to
making the product available for
customers at convenient and accessible
places.
 Physical Evidence: like the
environmental surroundings greatly
affect the customer’s expectations of
the service. As services cannot be
readily displayed, a conducive
environment should be created so as to
help the customers develop a positive
opinion of the service
 People: Most of the services are labour
intensive; the behaviour of the staff
providing the service and the customers
involved in production (due to the
inseparable nature of services), have an
effect on providing efficient customer
service.
 Process: The quality, or the ‘how’ of
service delivery is more important in the
case of service industries, as it is
difficult to separate the technical
quality, or the ‘what’ of service delivery.
 Meaning of Targeting
The targeting stage of segmentation is
concerned with making choices about the
segments to serve. The targeting process is
concerned with balancing the attractiveness
of segment opportunities against the
available resources and the capabilities.
Types of Targeting
Mass Marketing Strategy: When
differences in customer needs are small or
demographics are not distinctive, a
business may decide to use a mass market
strategy or ‘undifferentiated marketing’.
Large Segment Strategy: When a market is
segmented and marketing resources are limited,
the marketer may decide to pursue a large
segment strategy.
Adjacent Segment Strategy: When a single
segment focus has reached the point of full
market penetration and after a single-market
segment successful, the marketer opts for
adjacent marketing strategy, a closely related
segment is tackled next.
Multi-Segment Strategy: Market segmentation
opens the door to multiple market-based
strategies and greater marketing efficiency
Small Segment Strategy: Although a market
may provide three segment opportunities, a
business with limited resources and capabilities
may decide to compete only in the smallest
segment.
Niche Segment Strategy: The word niche itself
implies that one is targeting a limited number of
consumers or a particular set of customers.
Sub-Segment Strategy: If there are
meaningful differences in customer needs within
segments which are presently not being met by
current market segmentation, then there is need
for possible sub-segmentation
 POSITIONING MEANING

It refers to developing a Unique Selling

Proposition (USP) or identification of
particular appeal that the firm can
present to the customers in each
target segment.
POSITIONING PROCESS
 MARKETING MANAGEMENT
 According to Philip Kotler, "Marketing
Management is the analysis, planning,
implementation and control of programmes
designed to bring about desired exchanges
with target audiences for the purpose of
personal and of mutual gain.
 It relies heavily on the adoption and
coordination of product, price, promotion
and place for achieving responses.".
 NATURE OF MARKETING
MANAGEMENT
 ItCombines the Fields of Marketing
and Management
 Marketing Management is a Business
Process
 Marketing Management is Both
Science and Art
 IMPORTANCE OF MARKETING MANAGEMENT
 Introduction of new products in the market.
 Increasing the production of existing
products.
 Reducing cost of sales and distribution.
 Export market.
 Development in the means of
communication and modes of transportation
within and outside the country.
 Rise in per capita income and demand for
more goods by the consumers
 Characteristics of Marketing
 Customer Focus: Marketing revolves around
understanding and meeting customer needs. It
involves analyzing consumer preferences, behavior,
and demographics to tailor products or services
accordingly.
 Customer Satisfaction: Ensuring customer
satisfaction is crucial. Marketing aims to create value
for customers, leading to repeat business and
positive word-of-mouth recommendations.
 Objective-Oriented: Marketing activities align with
specific goals, such as increasing sales, brand
awareness, or market share. Clear objectives guide
marketing strategies
 Art and Science: Marketing combines
creativity (art) with data-driven analysis
(science). It involves crafting compelling
messages while using metrics to measure
success.
 Continuous Activity: Marketing is an
ongoing process. It adapts to changing
market dynamics, consumer trends, and
competitive landscapes.
 Exchange Process: Marketing facilitates
exchanges—transactions between buyers
and sellers. It involves creating value for
both parties through products or services
 Tourism Marketing
Tourism marketing is a type of
marketing used by businesses
operating in the travel and tourism
industry to attract tourists to a business
name or particular location which can be a
state, a city, a particular heritage site or
tourist destination spot, a hotel, or a
convention center anything.
 Service Marketing
Service Marketing focuses on
tangible goods, service marketing
centers around non-physical,
intangible offerings. These services
can be both B2B (business to
business) and B2C (business to
customers)
 Characteristics of Service
Marketing
 Heterogeneity: Services involve processes
delivered by personnel, leading to natural
variation in substance and quality.
Customization is common due to this
variability.
 Intangibility – Services are intangible. That
is they cannot be seen, tasted, felt or
smelled before they are bought. Thus a
person on his first flight will have to buy the
ticket and sit in the plane, and then only
will he experience the “Feel” of flying.
 Inseparability – Another characteristic of service is
the inseparability of the client and provider of
service. There has to be a provider of service as
well as a user of service. Services are typically
produced and consumed at the same time. Like
products they cannot be manufactured, stored and
then sold as and when there is a demand.
 Perishability – Services cannot be stored. Nor can
they be carried forward. If a service is not used
today, it is lost forever. They are highly perishable.
Unutilised services render economic losses. A ship,
plane or warehouse loaded to half its capacity, a
hotel with rooms vacant, a theatre with empty
seats during the airing of a movie, are all examples
of services which have been lost forever. Thus
services not utilised when they are produced,
perish.