Fundamentals of

Marketing
Unit I
2016-17
Contents

1. Introduction
2. Nature, Scope and Importance of Marketing
3. Basic Concepts of Marketing
4. Marketing Environment

Refer Text Book : Kotler, Koshy , Jha

Importance of Marketing
Refer Kotler
 1) Marketing helps to achieve, maintain
and raise the standard of living of the
society
2) Marketing increases employment
opportunities
3) Marketing helps to increase national
income
4) Marketing helps to maintain economic
stability and development
5) Marketing in connecting link between
the consumer and the producer
Scope of Marketing
 What is Marketing ?
 What is Marketed ?
 Who Markets ?
 How it works ?
 What is Marketing ?
“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. It pinpoints which segments
the company is capable of serving best and it designs and
promotes the appropriate products and services.”
-Dr. Philip Kotler
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
 How people defined it…
Marketing is products that don’t come
back and consumers that do. (Steve
Dawson – President, Walkers Shortbread
Inc.)
Marketing is the delivery of customer
satisfaction at a profit.

Marketing is the art of selling products -

Marketing and selling…. Is there a
difference ??
The Goal of Marketing is….

To attract new customer by promising

superior value, and to retain current
customers by delivering satisfaction

Sound marketing is critical to the success

of every organization…
 Market

All potential customers/ buyers who have

the ability and willingness to buy –( according
to Marketers )

How much people will buy depends on need

and prices.
 TYPES OF MARKETS
Consumer Market
 Consumers who purchase goods & services for personal use
Industrial Market
 B-to-B markets include all businesses that buy products for use in
their operations

Key Customer Markets

 Consumer Markets
 Business Markets
 Global Markets
 Nonprofit and Governmental Markets

Marketplaces
Marketspaces
Metamarkets
WHAT IS MARKETED ?
Goods
Services
Organizations
Persons
Places
Properties
Events
Experiences
Ideas
Informations
How it works ?
Core Marketing Concepts
1. Needs, Wants, and Demands

Needs:
 Human needs are states of felt deprivation/ basic requirements for
food, water, clothing, shelter, recreation , education, entertainment.
 Human have many complex hierarchy of needs ( Maslow )
 Physical needs for food, clothing, warmth, and safety
 Social needs or belonging and affection
 Individual needs for knowledge and self – expression

Wants:
 Human needs become wants when they are directed towards specified
objects that satisfy their needs .Wants are shaped by culture and
individual personality.
 People have almost unlimited wants but limited resources.

Demands:
 When backed by willingness to buy and ability to pay , wants become
demands.
 Consumers view products as bundles of benefits and choose products
that give them the best bundle for their money and companies measure
demand.
 Target Market , Positioning &
Segmentation
 Offerings & Brands
Value proposition
OfferingsWhat a company offers for sale to customers. An
offering includes the product and its features, quality, and
associated services such as financing, warranties and
installation.
Brand, any brand is a set of perceptions and images that
represent a company, product or service. While many people
refer to a brand as a logo, tag line or audio jingle, a brand is
actually much larger. A brand is the essence or promise of
what will be delivered or experienced.
Value & Satisfaction

Values :
Customer value triad - qsp
 The customer chooses between different products and
services on the basis of which is perceived to deliver the most
value. Value can be seen as primarily a combination of quality,
service and price (QSP), called customer value triad
Satisfaction :
Customer satisfaction depends on a product’s perceived
performance in delivering value relative to a buyer’s
expectation.
Marketing Channels
1. Communication Channels
2. Distribution Channels
3. Service Channels
Supply Chain
 Competition

Rival Offerings ( actual & Potential )

Substitutes
EVOLUTION OF
MARKETING IDEAS
Company Orientation towards the market place
Contrasts Between the Sales Concept and the Marketing
Concept
Three Considerations Underlying
 Societal Marketing Concept
Determine the needs, wants, and interests of
target markets and deliver the desired
satisfactions more effectively and efficiently
than competitors in a way that maintains or
improves the consumer’s and society’s well –
being.

One of the important programs of the

foundation is the Starbucks Shared Planet
Youth Action Grants which provides grants to
NGOs that provide training to young people to