UNIT 1 : Fundamental of Marketing Management

What is Marketing?

Marketing is the process of creating, communicating, delivering, and exchanging offerings

that have value for customers, clients, partners, and society at large. It involves
understanding customer needs and wants, developing products or services to meet those
needs, and promoting them effectively to target markets.

The role of marketing is multifaceted, but some key aspects include:

1. Creating Value: It helps create value for customers by identifying their needs and providing products
or services that satisfy those needs.

2. Building Relationships: It helps build long-term relationships with customers by understanding

their preferences and delivering products or services that meet or exceed their expectations.

3. Communicating Value: It communicates the value of products or services to customers through

advertising, sales promotions, and other communication channels.

4. Facilitating Exchange: It facilitates the exchange of goods and services between buyers and sellers
by creating a marketplace where transactions can take place.

5. Driving Innovation: It drives innovation by identifying new market opportunities and developing
new products or services to meet those opportunities.

Functions of Marketing:

1. Market Research

2. Product Development

3. Advertising and Promotion

4. Sales and Distribution

5. Pricing

6. Brand Management

7. Customer Relationship Management (CRM)

CONCEPTS OF MARKETING

1. The Production Concept

It suggests that people prefer products and services that are easily available and affordable, which is
essentially the idea of mass production.

~To achieve a highly efficient production process, keep costs low, and aim to scale production.

Ex: Walmart, McDonald’s, Forever 21, Starbucks, They all use this approach.

2. The Product Concept

It emphasizes that buyers prioritize a product’s quality, features, and benefits.

~Focuses is on making superior product and improving them over time.

Ex: Apple sets a premium price for their products

3. The Selling Concept

The selling concept is founded on the belief that customers will not purchase an adequate
quantity of a product or service unless they are actively persuaded to do so.

~Focus on aggressive selling and promotion effect.

Ex: Black Friday (and Cyber Monday), such as Amazon,

4. The Marketing Concept

Brands that utilize the marketing concept spend time getting to know their customer’s likes and
dislikes. They understand what problems keep their customers awake at night and develop
products and services to solve those issues.

~Focus is on customer satisfaction.

Ex: those who offer LinkedIn coaching. They work with clients to help improve their
LinkedIn profile so that they can bring in new business or land a new role.

5. The Societal Marketing

Works on long term plan and interest

~ focusing on meeting customers’ needs to solve their problems while ensuring no harm comes to them.

Ex: Herbivore and other beauty brands use organic ingredients and claim that their products are
ethically produced and do not harm the environment

6. Holistic Marketing Concept

It considers all the different parts of a business as one single entity.

~ensures that each person in every department, from sales to operations to HR to marketing and others,
work towards one common goal.

Ex: Coca-Cola

Importance/Objectives of Marketing:
i. Provide satisfaction to customers.

ii. Increase in demand

iii. Provide better quality product to the customer.

iv. Create Goodwill for the organization.

v. Generate profitable sales volume.

WHAT IS MARKETED?
i. Goods (Machine, tv, car)

ii. Services (hotels, car rental)

iii. Events (tournaments)

iv. Experience (water park)

v. Persons (Sachin Tendulkar)

vi. Properties

vii. Ideas
Some Key Relationships B/w Marketing And Other Functional Areas:
It is essential for achieving business objectives and maintaining a competitive edge in the market.

1. *Sales:* Marketing and sales are closely related and often work together to drive revenue. While
marketing focuses on creating awareness and interest in products or services, sales focuses on
converting leads into customers and closing deals.

2. *Finance:* Marketing and finance are connected through budgeting and financial planning. Finance
teams allocate budgets for marketing activities based on expected returns and profitability.

3. *Operations:* Marketing and operations collaborate to ensure that products or services are delivered
efficiently and meet customer expectations. Operations teams play a crucial role in fulfilling orders and
delivering products or services on time.

4. *Human Resources:* Human resources (HR) and marketing collaborate on employer branding and
employee engagement. HR helps ensure that employees understand and embody the brand values that
marketing promotes to customers.

5. *Research and Development:* Marketing and R&D work together to develop new products or
improve existing ones. Marketing provides insights into customer needs and preferences, which R&D
uses to innovate and create products that meet those needs.

6. *Customer Service:* Marketing and customer service are closely linked as both focus on customer
satisfaction. Marketing helps attract customers, while customer service ensures that their needs are met
after the sale.

Emerging trends in marketing are constantly evolving, driven by changes in

consumer behavior, technology, and market dynamics. Some key emerging trends in
marketing include:

1. *Personalization:* Customizing marketing messages and offerings based on individual customer

preferences and behavior to create a more personalized experience.

2. *Artificial Intelligence (AI) and Machine Learning:* Using AI and machine learning algorithms to
analyze data, predict trends, and automate marketing processes, such as customer segmentation,
content creation, and campaign optimization.

3. *Voice Search and Smart Assistants:* Optimizing marketing strategies for voice search queries and
smart assistant interactions, as more consumers use devices like Amazon Alexa and Google Assistant for
search and shopping.
4. *Influencer Marketing:* Collaborating with influencers and content creators to promote products
and services, leveraging their audience and credibility to reach target markets.

5. *Content Marketing:* Creating valuable and relevant content to attract and engage customers,
focusing on storytelling, education, and entertainment rather than direct promotion.

6. *Customer Experience (CX) Management:* Prioritizing the overall customer experience across all
touchpoints, from initial contact to post-purchase support, to build loyalty and advocacy.

7. *Data Privacy and Compliance:* Ensuring that marketing practices comply with data protection
regulations (e.g., GDPR, CCPA) and respecting customer preferences regarding data collection and use.

8. *Sustainable and Ethical Marketing:* Promoting sustainability and ethical practices in marketing
strategies, such as eco-friendly products, fair trade practices, and social responsibility initiatives.

9. *Augmented Reality (AR) and Virtual Reality (VR):* Using AR and VR technologies to create
immersive and interactive marketing experiences, such as virtual product demonstrations or try-on
experiences.

10. *Social Commerce:* Integrating shopping features into social media platforms to enable direct
purchasing from social posts, stories, or ads, blurring the lines between social media and e-commerce.

Scope of Marketing:
1. Study of consumer wants and needs

2. Study of consumer behavior

3. Branding

4. Packaging

5. Pricing

6. Product planning and development

7. Promotion

8. Channel of Distribution

9. Finance