Marketing Management Unit-1 Class Notes

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TOPIC-1
Nature and Scope of Marketing

Introduction

In today's world of marketing, everywhere you go you are being marketed to in one form or
another. Marketing is with you each second of your walking life. From morning to night you
are exposed to thousands of marketing messages every day. Marketing is something that
affects you even though you may not necessarily be conscious of it.
After reading this you'll understand - What exactly the marketing is, to whom it is beneficial
for, and what are the nature and scope of marketing.
Definition of Marketing
According to American Marketing Association (2004) - "Marketing is an organizational

function and set of processes for creating, communicating and delivering value to customers
and for managing relationships in a way that benefits both the organization and the
stakeholder."
AMA (1960) - "Marketing is the performance of business activities that direct the flow of
goods and services from producer to consumer or user."
According to Eldridge (1970) - "Marketing is the combination of activities designed to

produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or
wants of a selected segment of the market."
According to Kotler (2000) - "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."
Nature of Marketing
1. Marketing is an Economic Function

Marketing embraces all the business activities involved in getting goods and services, from
the hands of producers into the hands of final consumers. The business steps through which
goods progress on their way to final consumers is the concern of marketing.
2. Marketing is a Legal Process by which Ownership Transfers

In the process of marketing the ownership of goods transfers from the seller to the
purchaser or from producer to the end-user.
3. Marketing is a System of Interacting Business Activities

Marketing is that process through which a business enterprise, institution, or organization
interacts with the customers and stakeholders with the objective to earn a profit, satisfy
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customers, and manage relationships. It is the performance of business activities that direct
the flow of goods and services from producer to consumer or user.
4. Marketing is a Managerial Function

According to the managerial or systems approach - "Marketing is the combination of
activities designed to produce profit through ascertaining, creating, stimulating, and
satisfying the needs and/or wants of a selected segment of the market."
According to this approach, the emphasis is on how the individual organization processes
marketing and develops the strategic dimensions of marketing activities.
5. Marketing is a Social Process

Marketing is the delivery of a standard of living to society. According to Cunningham and
Cunningham (1981) societal marketing performs three essential functions:-
1. Knowing and understanding the consumer's changing needs and wants;

2. Efficiently and effectively managing the supply and demand of products and services;
and
3. Efficient provision of distribution and payment processing systems.
6. Marketing is a philosophy based on consumer orientation and satisfaction
7. Marketing had dual objectives - profit-making and consumer satisfaction
Scope of Marketing
1. Study of Consumer Wants and Needs

Goods are produced to satisfy consumer wants. Therefore the study is done to identify
consumer needs and wants. These needs and wants motivate the consumer to purchase.
2. Study of Consumer Behaviour

Marketers perform a study of consumer behavior. Analysis of buyer behavior helps
marketers in market segmentation and targeting.
3. Production Planning and Development

Product planning and development starts with the generation of product ideas and ends with
product development and commercialization. Product planning includes everything from
branding and packaging to product line expansion and contraction.
4. Pricing Policies
The marketer has to determine pricing policies for their products. Pricing policies differ from
product to product. It depends on the level of competition, product life cycle, marketing
goals, and objectives, etc.
5. Distribution
The study of distribution channels is important in marketing. For maximum sales and profit,
goods are required to be distributed to the maximum consumers at minimum cost.
6. Promotion
Promotion includes personal selling, sales promotion, and advertising. The right promotion
mix is crucial in the accomplishment of marketing goals.
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7. Consumer Satisfaction
The product or service offered must satisfy the consumer. Consumer satisfaction is the
major objective of marketing.
8. Marketing Control
The marketing audit is done to control the marketing activities.
What is Marketing Management?
Marketing Management is basically identifying market opportunities and implementing

strategies to tell your consumer base about your products/services/business that can help
you become profitable and build a brand.
What is Marketing Management?
Coming to the formal definition, Marketing experts – Philip Kotler and Kevin Lane Keller
define it as follows:
“Marketing Management is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating superior
customer value.”
Businesses use marketing management techniques to achieve broader business objectives.

These include planning, strategizing, effectively connecting with customers to build a brand
and capture as many potential customers as they can. Marketing Management professionals
need to understand their customers, have extensive knowledge of the methods and
strategies that will retain and satisfy them, and actively measure outcomes and optimize
processes accordingly.
Consider this analogy for better understanding: The manager of a Football Club does
not manage the players and coach them. They need to understand the players, consider
their strengths and weaknesses, create different methods and strategies to coach them,
communicate, track their performance by data/metrics, and change processes basis
outcomes/achievements.
The 4Ps of Marketing – product, place, price, and promotion play a significant role in
devising an effective marketing strategy.
Importance of Marketing Management
A good marketing management strategy helps you build the brand and grow sales and gives
you an edge over competitors. Here are a few reasons why marketing management is
essential:
1. Build and maintain the company’s brand

2. Boost sales(revenue)
3. An opportunity/platform to launch new products
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4. Effective way of engaging customers

5. Acts as a communication channel
6. Provides actionable insights for the business
Processes Involved in Marketing Management
There is no standard process that an organization or one can follow when it comes to
marketing management. But here are a few processes that most of the marketing
management strategies have:
1. Conduct market research and analysis

The first step in the marketing management process is knowing your customers and
competitors by conducting market research and analysis. This can be done by completing
surveys, collecting data, assessing industry trends, and tracking previous campaigns. A
SWOT analysis can also be conducted to understand the business/company. Basis all this,
you can understand the customer’s needs and pain points to offer a product or service that
meets their demands.
2. Set mission statement and objectives

Although processes are important than outcomes, it is essential to know what are the
expected results first. It is crucial to set objectives and goals as they give the foundation
and set the right direction for your marketing journey. The marketing objectives can be set
basis the factors that influence your target market, such as demand, pricing patterns, social
and environmental factors, etc.
It is vital to include sales goals, budgets, and branding parameters as they help you monitor
and measure the results later.
3. Develop marketing strategies

Once you have done the research and have set the objectives, it is vital to develop a robust
marketing strategy.
Marketing strategy typical consists of:
Segmentation: Here, you are dividing the market to identify potential customers who are
likely to buy your product/service.
Targeting: Here, you will further sub-divide the segments and focus on a particular target.
Positioning: This comes in mainly for brand building/positioning, where your brand’s image
is positioned in terms of quality and price.
Marketing mix – Here, focusing on 4Ps – product, price, place, and promotion to achieve
broad business goals.
Budgeting/Financials – Here, you will focus on the overall budget allocation and financial
management of your product/service.
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4. Curate an actionable marketing plan

Once a marketing strategy is planned, the next step is to create an actionable marketing
plan. Here you will focus on the period and develop a marketing calendar. This will be a go-
to plan for anyone in the team to analyze and keep track of the progress.
5. Implement a marketing plan

Implementation is one of the essential marketing management processes. Putting your
marketing plan into action and executing it to achieve business goals. The implementation is
generally kick-started by spreading awareness to your customers about your
product/service by sales, PR, social media, or advertising. You can allocate the resources
and budgets as per the plan. One must follow the procedure to achieve planned outcomes.
6. Monitor, Measure, Modify and Evolve

The final stage is to monitor, analyze and track the progress. Here you will look at various
parameters such as sales, revenue, customer feedback, brand positioning, no. of website
visitors, the engagement rate on social media, and various other parameters basis the
marketing plan and set objectives.
It is crucial to monitor ourselves and our competitors and learn from them if they are
performing well. This majorly helps in pricing and positioning your product/service. You can
also use various CRM and analytics tools to smoothen this process and track it accurately.
Basis the progress and analyzed data, you can evolve your plan to reach higher milestones.
TOPIC-2
Philosophies of Marketing Management
Marketing Philosophies
Marketing is referred to as the process of creating, communicating and delivering products

for the customers in order to satisfy their needs and wants. The purpose of a marketing
philosophy is to identify those needs and fulfil them.
Every company follows different marketing philosophies as per their requirement. But in
general, there exist five marketing philosophies or concepts and a company should follow
the right philosophy, as per their requirements and customer needs.
The five marketing philosophies are:
1. Production Concept
2. Product Concept
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3. Selling Concept
4. Marketing Concept
5. Social Marketing Concept (Societal Marketing Concept)
Production Concept: Production concept is based on the idea that customers will prefer
products that are affordable and are produced in bulk. In this marketing concept, the aim of
organisations is to produce in bulk, increasing production efficiency, reducing costs and
distribution performed on a large scale.
The idea of consumer demand for affordable products comes from the Say’s law that states
that “supply will create its own demand”.
By increasing the production of the products, the companies utilise the advantage of
economies of scale. The reduced cost price makes the product appear inexpensive to the
customer which generates more sales.
Lower price may be able to generate more customers, but with the decline in quality the
sales volume will decrease. This theory holds good when demand is more than the supply,
but a customer will not always be looking for cheaper products, there will be many factors
that will impact the customer purchase decision.
Product Concept: This is another marketing philosophy that is concerned with quality of
the product rather than the quantity of the product. The consumers are always looking out
for quality products and are not worried about price and the availability of the product.
Companies following this approach will be creating high quality products that will satisfy the
requirements of such customers, but it will be expensive in the process.
Since the focus of the companies is on producing quality products, they lose out on
customers that seek inexpensive products or are influenced by availability and usability of
the product.
Selling Concept: This is the third philosophy and it is based on actual selling of the
product. In the earlier two philosophies or concepts the emphasis was on production
whereas selling concept is more focused on making sales for every product, which is
irrespective of quality of the product or the needs of the customer.
Companies following this approach have a short life span and thus have very less repeat
customers.
Marketing Concept: The selling concept is not for a long duration. The market is customer
centric, therefore any product that should be able to fulfill the customer needs. Marketing
concept is based on the assumption that a consumer will purchase products.
Companies conduct research in order to identify customer needs and create a product that
meets those needs in a better way than their competitors. It results in businesses
developing relationships with customers that leads to profit generation in the long run.
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Societal Marketing Concept: This is the fifth marketing concept that is mainly concerned
with meeting the needs of customers as well as working towards protecting the
environment, its natural resources and overall well being of the society.
This marketing philosophy believes that business is a part of the society and therefore
businesses should give it back to society in the form of social services like poverty
eradication, promoting literacy, etc.
TOPIC-3
Needs, Wants, and Demands: The three
basic concepts in marketing (with
Examples)
NEEDS – The essential things for us to survive
Needs are the essential things to fulfill the states of deprivation for our survival. Needs
can be basically divided into Physical Needs, Social Needs, and Individual Needs.
 Physical needs include the basic human requirements such as air for breathing,
food, water, clothing, and shelter.
 Social needs are the requirement for belongings and affection from friends and
family.
 Individual needs can be varied depending on each person’s
perception, knowledge, and environment.
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The famous psychologist Abraham Maslow said in his book of “A Theory of Human
Motivation” that Human Needs could be fulfilled in a specific order of five -tier. Let’s
study about “Maslow’s Hierarchy of Needs Theory” in the next topic.
Maslow’s Hierarchy of Needs
“Maslow’s Hierarchy of Needs” or so called “Five-tier Model of Human

Needs” has specified human Needs into five levels as in the following:
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 The first level of needs are the Physiological needs which are essential for us to
survive. So this can include anything from air for breathing, water, food, sleep,
shelter, and clothing.
 The second level of needs are the needs for Safety. The safety needs can include
personal security, safety of resources, safety of employment, safety in property and
health. All the safety needs are the basic needs for humans as well.
 The third level of Maslow’s Hierarchy of Needs is the need for Love; the need
to belong, the need to have friends and family. So this level of needs is called the
social needs.
 The fourth level is the needs for Esteem, self-esteem. In this level, we like to feel
confident and have a sense of achievement in what we do. So this level is also called
as the level of respect. We like to gain respect from others in this level.
 The fifth level is called Self-actualization level. Self-actualization is basically our
need for wanting morality, a sense of morality, a need for acceptance and also
creativity. In other words, the level of self-actualization can be called as the level of
our full potential.
As a marketer, you should know which level of Needs is your product targeting to.
Please see the below figure for the example of companies fulfilling each level of
human’s needs.
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In here what we need to know is that the human’s level of needs is not always go ing up
level by level. For example, some authors, artists, and researchers are willing to bear
with the poverty to do what they want to do.
Their basic needs might not be fully fulfilled, but they are satisfied with themselves for
being able to do what they love. They can be accounted as the group of people who
have reached the level of Self-actualization needs even without fulfilling the basic
needs.
As a marketer, understanding the human’s level of needs is not enough for us. As
people cannot always express what they need; some people are not even fully
conscious of their needs.
Therefore it has come to the role of marketers to distinguish the type of

customer’s needs. According to Kotler Keller (“Marketing Management 15e”, pp.31),
the needs can be specified into five types. Let’s study the “Five Types of Needs” in
the coming topic.
Five Types of Needs in Marketing
The “Five Types of Needs” that marketers should know in order to distinguish the
type of customer’s needs are as following:
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1. Stated needs: A customer wants to buy a car and if he says he needs a car, then
such need is termed as STATED NEEDS.
2. Real needs: When the customer wants a car for actual need like he needs a car for
going to work with low operating costs, not low initial price, then such need is
termed as REAL NEEDS.
3. Unstated needs: Customer also expects a good after-sales service from the dealer
when buying a car; such need is termed as UNSTATED NEEDS.
5. Delight needs: The customer would like the dealer to include a gift with the
car such as a GPS Navigation system or Music System to delight him, but he doesn’t
clearly express that he wants something with the car. That kind of need is termed as
DELIGHT NEEDS.
6. Secret needs: Needs that the customer feels reluctant to admit; for example the
customer wants a car for the status symbol so that he can show his friends that he
is a savvy consumer (person who can spend his money wisely). But he feels
uncomfortable to admit that status is important to him. That kind of need is termed
as SECRET NEEDS.
Responding only to the customer’s STATED NEED (“I need a car”) and does not
attempt to discover the customer’s REAL NEED (“I need a car with low operating cost”)
will not be able to fulfill the customer’s need. That’s why it is said that responding only
to the stated need may mislead the customer.
Therefore, as a marketer, you should attempt to discover the REAL NEED of the
customer by asking questions to him.
And also fulfilling not only to his REAL NEED, but also the other needs that he has
unspoken; UNSTATED NEED, DELIGHT NEED, and SECRET NEED.
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In this way, you can develop a better relationship with your customer.
Now, we have finish studying about “Needs”, “Maslow’s Hierarchy of Needs”,

and “Five Types of Needs”. Let’s keep on studying how Needs turn to be Wants, and
how Wants can change to be Needs in the next topic.
Wants: Specific objects to fulfill our needs
Wants are directed by our surrounding towards reaching certain needs.

Therefore human’s wants can be varied depending on each individual’s perception,
environment, culture, and society.
For example, an American needs food but he may want a hamburger, fried potato and
beer; a Chinese needs food but he may want a bowl of noodle and a cup of hot tea.
With the development of the information technology, a lot of things have turned from
the stage of Wants to Needs. For example, Computers, Smart Phones, Internet, etc.
Therefore there come the criticisms that “marketing creates unnecessary needs,
wants, and demands.”, “marketers get people to buy things that they don’t
want.” , etc.
In reality, marketers do not create needs. Human’s needs exist before the existing of
marketers. Marketers might promote some specific objects, and make people want
those objects for their needs.
For example, Marketers might promote the idea that an Insurance can satisfy a
person’s need for safety; they do not create the need for safety of human being.
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After knowing the needs and wants, another most important thing that a marketer must
know is DEMANDS. Let’s study about it in the following topic.
DEMANDS: Willingness and ability to buy Wants and Needs
Needs or Wants turn to be Demands when a customer is willing and having the
ability to buy that needs or wants.
Many people want a Mercedes, but only a few can buy one. Companies must measure
not only how many people want their product, but also how many are willing and have
the ability to buy it.
What will be the factors influencing human’s demands? Let’s see it in the next topic.
Factors Influencing Demands – Social & Emotional Factors
There are many factors influencing the demands of human. Those factors can be
separated into Social and Emotional factors as in the following:
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Social factors: social factors can affect behavior and therefore demand for the
different products. Social factors can be generally categorized into three factors as
following:
 Social awareness – the increasing in social awareness of our health can risk us from
eating junk food, drinking alcohol, smoking cigarettes, etc. affect the demand for
those products.
 Social norms – social norms that are acceptable in society can affect the demand of
the products. For example, people start getting awareness about the global warming
and reducing the usage of plastic bags affect the demand for the plastic bags.
 Social pressures – The pressures influence on people by peers can affect the
demand for the products/ services as well. For example, social pressure on every
child should be literate can increase the demand of education services.
Emotional factors: Emotional factors of the customers can affect the demand for some
products/ services as well. For example, after some major incidents, the demand for
insurance can be increased.
As a marketer, apart from knowing the factors influencing demands, you should also
know the demand states of your products.
Eight Demand States in Marketing (with Examples)
According to Kotler and Keller, there are eight states of demand in Marketing:
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1. Negative Demand
People will have Negative Demand on the products/ services that they dislike and
merely don’t want. For example, even though we know that doing regular medical
checkup and seeing dentists are beneficial for us, but we don’t want to do it.
Negative demand can be a positive one by creating awareness rather than promotion,
and providing the information of your products/ services to the real needed customers.
2. Non-existent Demand
People will have Non-existent Demand or No Demand on the products/ services that
they don’t know or uninterested in. The best example of non-existent demand can be
new technology products and some education courses.
Non-existent Demand can change to be existent demand by creating awareness and

educating your customers. Smart phone was non-existent demand in the past, but now
it has become full demand.
3. Latent Demand
The demand which makes customers realize later is called Latent Demand. The best
example of latent demand is smart phones.
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Companies should try to understand the latent demand of the customers by asking
questions and suggestions from the customers.
4. Declining Demand
Products are facing Declining Demand because of changing of technological
development, customer’s preference and taste.
In the past, keypad phone was the market leader in the mobile phone industry,
however, with the emerging of smart phones; the demand of keypad phone gradually
loses its appealing.
Then how can a product that facing declining demand gain demand again? By changing
the product’s features, finding new target markets, re-marketing the product, re-
branding the product, and re-positioning the product.
5. Irregular Demand
Products/ services which usage are based on time such as seasonal, monthly, weekly,
daily, hourly face Irregular Demand. The clear example of irregular demand is umbrella
which is mostly use in the rainy days only; in the other seasons, umbrella faces
irregular demand.
6. Unwholesome Demand
In Unwholesome Demand, customers want the product badly even though they are
aware of the bad effect of it. Cigarettes and alcohol are the best examples of
unwholesome demand.
7. Full Demand
Full Demand is created if the products/ services always have the same demand. In full
demand, the demand is meeting the supply. For example, medicine always have full
demand.
8. Overfull Demand
If the demand is more than the supply, the state of Overfull Demand is created. If the
companies face with the overfull demand state, they should try de-marketing by
reducing promotion and services temporarily or permanently.
Which demand stage is your products at now? If you know the dem and stage of your
products, then it will be easier for you to draw the marketing strategies for your
products.
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TOPIC-4
The Five Key Categories of Marketing
Orientation Approaches
Until the 1950s, a majority of companies relied on the production orientation concept. This
idea assumed that as long as they produced high-quality products, businesses would remain
profitable. However, in today’s hypercompetitive global markets, where consumers have a
proliferation of choices, companies have to maintain a competitive edge to beat the
competition.
That’s where market orientation concepts come in.
The marketing orientation concept has evolved, and for decades, it has been the model of
choice for businesses looking to establish brands that can compete for customer attention
and loyalty. Businesses have had to adapt to new marketing strategies to survive the
current market, like the shift from traditional to digital marketing.
“The customer is king” philosophy has become a guiding principle for many companies who
focus their strategies. They do this to ensure that client satisfaction, rather than industry
profits, is prioritized. Each company has a different approach to achieve this due to its
unique structure, beliefs, and culture.
In this post, we explore the different marketing orientation approaches that may affect an
organization’s marketing strategy. Understanding these concepts is critical to helping you
assess whether your approach is bringing the desired results that meet your organization’s
missions and goals.
Marketing Orientation Concepts
Marketing orientation can be categorized into five key groups. These are:
 Production orientation
 Product orientation
 Sales orientation
 Societal orientation
 Market orientation
We look at the impact of each concept on businesses, and their advantage and
disadvantages.
Production Orientation
This concept dominated the business landscape in the 1900s, where organizations focused
heavily on the mass production of products. Emphasis was on streamlining the production
process and concentrating on improving efficiencies, with little focus on consumers or
anything else.
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The assumption was that customers valued price. For this reason, this approach focused on
maximizing efficiency while lowering production costs to meet customers’ price needs. This
business strategy dedicated its resources towards its products, and its marketing point was
the price.
Advantages of Production Orientation:
 Mass production
 Maximum efficiency at the lowest costs
 Distribution of products inexpensively
Disadvantages of Production Orientation
 This approach lacked the fundamental drive that controls the consumer market, that
is, customer needs.
 The emphasis on efficiency may affect the company’s ability to produce a product
that meets the customer’s high demands.
Product Orientation
In a product orientation model, the primary concern of an organization is the quality of the
product. The business centers its approach on continually improving and refining its
products. Assuming that as long as products are of high quality, consumers will buy and use
them.
This approach, which was popular during the 1950s and 1960s, mainly focused on the
product that a company intends to market. Unlike in quantity-oriented organizations where
the price was the focal point, product orientation placed emphasis on quality.
While all resources were directed towards the quality of a product (hence the production of
premium products), the approach didn’t focus on the needs of its target audience.
Advantages of Product Orientation
 Mass production of products at lower costs

 Focus on quality
 Improved sales due to the high quality of products
 Better market research
Disadvantages of Product Orientation
 Narrow branding. Customers identify with brands, and if you don’t develop a brand
that resonates with their needs, they may not be interested in what you’re selling.
 High risks of running out of business. Without a clear message explaining to
customers the benefits of using their products, a competitor with a better message
can run you out of business.
 If you haven’t established your reputation in the marketplace, consumers may not
trust you to deliver.
 Your business solely depends on the strength of your product. Customers expect
nothing but top-notch quality.
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 Making a profit on premium products may require you to set a higher price tag than
the market can accept.
 The costs of developing top-quality products are steep.
Sales Orientation
A sales-oriented business puts its energy and efforts into selling an already existing product.
In a way, this concept prioritizes customers but not in the sense that stresses their needs
and desires. Instead, priority is on promoting its products with the sole purpose of
increasing sales.
A sales-oriented approach can be especially effective for a business competing for

customers in a saturated market. It can also be a valuable tool for a firm that holds dead
stock and wants to reintroduce them to the market.
The extra effort that the sales and marketing team devotes towards selling a product may
tip a consumer’s buying decision.
Advantages of Sales Orientation
 It generates immediate short-term sales.

 If a company’s product or service is the best in the market, selling it should be easy.
 Aggressive selling tactics may influence a consumer’s purchasing power.
 Broad customer reach for unsought goods. Companies can introduce products or
services that customers don’t know about or don’t even need and use aggressive
sales techniques to boost sales.
Disadvantages of Sales Orientation
 Customer loyalty and confidence are at risk since they are pressured to buy what
they don’t want.
 High risk of ‘backlash’. Running a promotion campaign is costly, and it can lead to
losses if consumers resist the product or service.
 The approach is not sustainable in the long term.
Societal Orientation
Due to the increase in environmental awareness, the new concept of “Societal Orientation”
has emerged. Organizations are formulating marketing strategies and production processes
that recognize the impact on the environment, within and without.
Businesses that implement this idea incline towards the ethical approach in their wider
marketing and research strategies. A good example is the pharmaceutical industry and life
science sectors, which have come under scrutiny for their unethical marketing strategies.
Advantages of Societal Orientation
 Promotes ethical practices
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 Helps build a better image for the organization

 Increases a company’s sales and market share
 Economic resources are adequately utilized
 Raises the standard of living of people in society
Disadvantages of Societal Orientation
 The marketing message can be misleading

 Budget limitations
Market Orientation
Market-oriented businesses focus on analyzing the target audience to determine their needs
and design a product to fit those needs. This business model centers everything around
what the customer wants rather than on promotions. Market orientation revolves around
customer satisfaction and reacting to the demands of the customer.
Marketing oriented organizations approach their operations from a consumer perspective

and focus on the current and future needs of customer needs. The entire firm appreciates
the significance of the customer and recognizes that the business won’t exist without them.
The marketing orientation concept is built around three pillars:
 Customer focus – The customer is at the heart of corporate marketing strategies.

They are considered the most important stakeholders, and companies base their
philosophies on serving the customer to ensure his needs and wants are met.
 Coordinated marketing – The success of any company depends on coordinated
team efforts. It’s a company-wide responsibility, and everyone must work together
to achieve a common goal.
 Profitability – In a fiercely competitive global economy, businesses are constantly
under pressure to prove their financial standing every quarter. Within the framework
of marketing orientation, companies’ profits are driven by both financial (ROI and
market share), and non-financial (behavioral patterns, attitude, and awareness)
measures.
Each company strives to develop an orientation towards one of these pillars, depending on
its internal structure and culture.
The widespread adoption of Internet technology has contributed to the shift toward
marketing orientation. Customers have grown increasingly discerning, and social media has
become one of the primary sources of customer outreach.
In a market orientation concept, companies don’t just introduce products or services to

customers. It’s a long process that starts with researching the demographics and demands
of the target audience. It also involves rigorous marketing efforts to convince potential
customers to make a purchase decision.
Advantages of Market Orientation
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 The consumer-centric approach helps an organization to know what the customers

really want, hence avoiding wasting resources.
 It builds a strong customer relationship. In turn, customers help the company grow
and thrive.
 It increases customer satisfaction, confidence, and loyalty.
 It increases sales, which also leads to higher volume and market share of a business
entity.
 Listening to the needs of the consumers helps a business create and develop a brand
that customers can identify with.
 Businesses using this concept are more resilient to change than their competitors.
 The customer-focused approach fosters product innovation.
 Customer satisfaction encourages buyer feedback, which in turn improves
effectiveness and efficiency.
Disadvantages of Market Orientation
 Businesses must learn to quickly change direction to keep up with the constantly
changing demands of their customers.
 It takes heavy investment in research to understand the ever-changing needs of
consumers.
 This approach may not always be innovative since it’s more concerned about
meeting the desires of consumers than creating new products.
Choosing the Marketing Orientation Approach That Best Fits Your Business Model
Throughout the years, we’ve seen organizations shift from one approach to another to
conform to the changes in consumer behavior. Intel Corp shifted from a product orientation
to a market orientation approach in 2005 and introduced products that solve customer
problems like computer crashes.
Amazon implements a market approach, and it has been consistently adding features that
address consumer desires and concerns like delivery fees. It introduced Amazon Locker to
address the needs of city dwellers who are worried about getting deliveries when they are
not at home.
Coca-Cola’s market-oriented approach involves extensive research into identifying what

tastes customers prefer and then adding new flavors to their products. The company prides
itself on its brand and has expanded its reach by acquiring brands like Dasani, Minute Maid,
and SmartWater.
Different approaches work differently for companies. Choosing a marketing orientation

approach should revolve around how an organization was established, its culture, and its
structure.
Regardless of the approach your organization takes, you can positively influence the
effectiveness and efficiency of your teams through proper employee management and
monitoring.
CLASS NOTES
TOPIC-5
Buying Motives
A motive is the inner state that moves, or prompts a person to action. In the words of
W. J. Stanton,
“A motive may be defined as a drive or an urge for which can individual seeks
satisfaction. It becomes a buying motive when the individual seeks satisfaction through
the purchase of something.”
In the words of D. J. Durdian, “Buying motives are those influences or considerations

which provide the impulse to buy, induce action or determine choice in the purchase of
goods and services.”
William G. Carter gives a long list of buying motives such as money, vanity,
acquisitiveness, rivalry, adornment, cleanliness, collecting, amusement, construction,
companionship, mental culture, appropriateness, ambition, inhibitiveness, reverence,
affection, tastes, sex, limitation, curiosity, self-preservation, sympathy, gratitude,
patriotism, and so on.
Buying Motives: Definitions, Classification, Importance, Types, Knowledge and

Difficulties
Buying Motives – Definitions
Behind every sale there is always a buying motive, but that motive is never merely to
own the article on question. It is on the other hand, always the prospects believe that
ownership of the article will satisfy some specific desire on his part. A motive is the inner
state that moves, or prompts a person to action.
In the words of W. J. Stanton, “A motive may be defined as a drive or an urge for which
can individual seeks satisfaction. It becomes a buying motive when the individual seeks
satisfaction through the purchase of something.”
Some important definitions of motive are as under:
In the words of D. J. Durdian, “Buying motives are those influences or considerations

which provide the impulse to buy, induce action or determine choice in the purchase of
goods and services.”
Motive is meant for that urge, lure or the power that inspires or entices any person to
act in a proper direction. It is a kind of human hunger for satisfaction of which, the man
does activities.
According to Dr. R.S. Davar – “A motive is defined as an inner urge that moves or
prompts a person to action.”
CLASS NOTES
According to Berelson and Steiner – “A motive is the inner state that energizes,
activates or moves and that directs or channels behaviour to work goals.”
We arrive at conclusion after going over properly on the above said definitions that
motive is the psychological human urge that energizes a man to act. Every person does
the acts according to his motive.
It is clear from the above definitions of buying motives that buying motive is meant for
the powers that inspire any person to buy the goods or items.
Buying Motives – Classification (With Classification Made by Prominent

Scholars)
Charles B. Roth writes that hunger, habit, sex, envy, fear, jealous, combat, curiosity,
social mastery, love, vanity, ease, cupidity and personal advancement are the commons
motives.
William G. Carter gives a long list of buying motives such as money, vanity,
acquisitiveness, rivalry, adornment, cleanliness, collecting, amusement, construction,
companionship, mental culture, appropriateness, ambition, inhibitiveness, reverence,
affection, tastes, sex, limitation, curiosity, self-preservation, sympathy, gratitude,
patriotism, and so on. Similarly, various other authorities like Melvin S. Hatvick, Kirk
Patrick, Alfred Gross, etc. have also classified the buying motives in their own ways.
For the convenience of the study, the various classifications given by each of
them are grouped into, as follows:
1. Physical, Psychological and Sociological Buying Motives:
The psychological buying motives are related to the satisfaction of basic human needs
for subsistence such as satisfaction of the needs for food, shelter and clothes, and
security. The psychological buying motives relates to the need for prestige or self-
preservation, etc. the sociological buying motives are related to the motives that exist at
present and is expected in all the social situations.
2. Acquired and Inherent Buying Motives:
The acquired buying motives are learned motives and are influenced by the environment
factors. Such motives are related to socioeconomic conditions and the level of education,
such as economy, information, work efficiency, profit facility, quality, beauty, fashion,
social presage, acceptance, etc.
The inherent buying motives are present in a person from his birth. It belongs to basic
human instincts whereas the acquired buying motives are concerned with the
environment. They are influenced by hunger, thirsts, sleep, leisure, security, playing
entertainment, etc.
3. Primary and Selective Buying Motives:
The primary buying motives increase the general demands for products and not the
specific demands for a specified product/brand. The demands for radios, TVs, cars,
CLASS NOTES
motorcycles, etc. fall under this category of primary motives. The selective buying
motives influence for the purchase of specific brands, for instance, the demands for
Bajaj’s Chetak Scooter, Onida TV, Philips Radios, etc.
4. Conscious and Dormant Buying Motives:
The conscious buying motives are such motives, which are identified by the buyer
without any help from marketing functions, like advertising, personal selling o r
promotional tools. The conscious buying motives influence the satisfaction of presently
existing needs of a customer. Such buying motives take shape within the sub-conscious
minds of the customers and are not influenced by the external environmental fact ors.
The dormant buying motives are silent motives and do not influence the buyers until
their attention is invited by the marketing functions. Thus, dormant buying motives are
related with satisfaction of those needs which are created by the marketing functions. A
consumer does not possess the knowledge of such needs without the persuasion of
marketing activities.
5. Rational and Emotional Buying Motives:
Alfred Gross has classified the buying motives as emotional and rational.
A customer takes rational or economic buying decisions for availing at least a

few of the following advantages:
(i) Where the buying is more profitable.
(ii) Where there is saving of time.
(iii) Where there is similarity/uniformity in the products.
(iv) Where the item is simple to operate.
(v) Where there are different uses of the product.
(vi) Where it saves the space in keeping the product.
(vii) Where there is economy in use.
(viii) Where the product is of good design.
(ix) Where it is a better product comparing to other products.
(x) Where the product is durable and the consumer has confidence on its durability.
(xi) Where the product is easily available.
(xii) Where the product is made as a result of high level innovation.
(xiii) Where it maintains continuity of supply.
(xiv) Where the goods are available with complete set and services facility is available.
CLASS NOTES
(xv) Where it is automatically working.
Emotional buying motives influence a person to purchase certain goods or services not
because of its rationality, but because of his emotion.
Lipson and Darling state that emotional buying motives are related with motives to
maintain health, security, better living, power, satisfaction of ego needs, maintaining of
good image in the society, acquisitiveness, curiosity, love and affection, habits of
purchasing or collection of certain goods, desire to achieve economy, desire to do some
creative activity, cautiousness, desire to be praised by others, desire to be seen good
and attractive to be seen, etc.
According to Alfred Gross, emotional buying motives are motives of self-preservation,

affection, utility, fashion, prestige, comfort, vanity, admiration, health, habit, monetary,
feeling, sex, convenience, curiosity, urge to create or develop hobby, relaxation, sense
organ’s gratification (touch, taste, smell, sight, hearing), jealously, etc.
6. Product and Patronage Buying Motives:
Product buying motives motivates a person towards purchasing a special products. This
motive is a generated by the physical and psychological features of the product, such as
design, colour, size, package, quality, price etc.
Patronage motive influences a person to purchase the products of a specific seller,

dealer or a producer. If a customer is satisfied with the product of a specific
seller/producer, he prefers to buy the products of that seller/producer because of certain
advantages, such as home delivery of goods purchased, a reasonable price, location of
the seller/shop, assortment of goods, goodwill demonstration of the product and
decoration of the shop, and the good behaviour of the seller.
Prof. Copeland writes that reliability of the seller, punctuality on delivery, promptness,
securing exact fulfillment of specifications, variety for selection, engineering and
designing services, and dependable repairing service, etc. are the basis of patronage
motive.
Classification of Buying Motives:
uying motives have been classified differently by the different scholars.
The classification of buying motive as made by prominent scholars is as under:
1. E. J. McCarthy has explained eight kinds of motives- (i) Satisfaction of Senses (ii)
Preservation of Species (iii) Fear (iv) Pride (v) Sociability (vi) Striving (vii) Curiosity
(viii) Rest and Recreation.
2. According to William G. Carter, these are- (i) Money (ii) Pride (iii) Pray (iv) Yield (v)
Desire (vi) Enmity (vii) Comic (viii) Cleanliness (ix) Compilation (x) Construction (xi)
Feeling of Living Company (xii) Mental Culture (xiii) Ambition (xiv) Tendency to Accept
(xv) Honour and Entertainments (xvi) Affection(xvii) Social Achievement (xviii) Romance
(xix) Comfort (xx) Artistic Interest (xxi) Social Achievement (xxii) Sex (xxiii) Imitation
(xxiv) Safety (xxv) Curiosity (xxvi) Sympathy (xxvii) Gratefulness and (xxviii)
Patriotism.
CLASS NOTES
3. As per Charles B. Roth- (i) Hunger (ii) Nature (iii) Fear (iv) Sex (v) Jealous (vi) Envy
(vii) Conflict (viii) Social Impression (ix) Curiosity (x) Love (xi) Proud (xii) Relax (xiii)
Greed (xiv) Personal Progress etc., are the main motives.
4. Melvin S. Hattwick has divided the buying motives in two parts- (i) Primary Buying
Motives (ii) Secondary Buying Motives.
Primary Buying Motives are found in man since his birth. Secondary Buying Motives are
learnt from society and social life.
Buying Motives – Importance of Knowing Buying Motives of Customers
Knowledge about buying motives of customers is very important, from the

following reasons:
1. Success of salesmanship – A salesman can achieve success by knowing more about

the buying motives of customers. On the basic knowledge of buying motives, the
salesman will be able to make available the goods and services to the customer’s choice
in price, quality and other specifications. This way, the customers are satisfied in a short
period of time.
2. Facilitates product planning – Knowledge about the buying motives of customers

facilitates product planning, by way of using appropriate colour, design, size, package,
price, etc. to the product in accordance with consumer preference.
3. Facilitates pricing of product – Knowledge about the buyer motives also is helpful in
pricing the product. Emotion oriented customer may be prepared to pay a higher price,
whereas knowledgeable customer will be prepared to pay a reasonable price, only.
4. Facilitates to produce promotional material – Every sales organization makes efforts

through promotional methods, such as advertising, sales promotion, personal selling and
publicity to increases its sales. By having the knowledge of buying motives of customers,
the marketing manager will be able to select appropriate promo tional tools, so as to
induce his customers more effectively.
5. Facilitates the selection of distribution channels – Many customers are influenced by

“self-protective” buying motives and they like to purchase products from the
wholesalers. This may be due to the facilities extended by the middlemen to their
customers. In such a situation, the producer has to consider the buying motives of
customers, before deciding the appropriate channels of distribution.
6. Creation of goodwill – Any seller or a trader can satisfy the customers by learning
their habits. The customers create brand loyalty towards the products of certain
producers. It is the consumer behaviour that creates goodwill of the firm and its
products.
7. Efforts to make change in buying motives – Efforts can be made by learning from the
buying motives of a customer, to bring changes in his motives. If the behaviour of the
seller is very good, certain customers may like to purchase goods from that seller only.
CLASS NOTES
TOPIC-6
Creating and Delivering Customer Value
Marketing involves satisfying customers’ needs and wants at a profit while being
socially responsible. In a hypercompetitive economy with increasingly rational
buyers faced with abundant choices, a company can win only by fine-tuning the
value delivery process and choosing, providing, and communicating superior value.
The Value Delivery Process:- The traditional view of marketing is that the firm
makes something and then sells it; however this traditional view of the business
process will not work in economies where people face abundant choices. Here the
‘mass market is actually splintering into numerous micro-markets, each with its
own wants, perceptions, preferences and buying criteria. This realization has put
the Marketing at the beginning of the planning. Instead of emphasizing making and
selling, companies now see themselves as part of a value delivery process. In any
marketing situation, one can discern four distinct steps in the value providing
process:
* Value selection
*Value creation/value delivery
* Value communication (making a value proposition and communicating it.)
* Value enhancement.
Value Selection
It is obvious that selecting the value to be offered is the first step in the value
delivering process. Everything else follows. Only after selecting the value to be
offered, can the firm proceed with production, sales and promotion. What needs to
be specifically understood here is that the firm finds out what constitutes value in
the estimation of the customer and accepts it as the value to be offered. Value
selection is thus not only the first step in the sequence but also the most crucial
one.
Value Creation / Value Delivery
This constitutes the bulk of the marketing job. What the firm has promised to
provide the customer has to be actually provided. The product offering must
actually carry the benefits the firm has promised and it must be reached to the
customer in the most satisfying manner. Value creation/value delivery signifies the
successful execution of the firm promise. Most firms fumble here because they
CLASS NOTES
promise to provide all sorts of things, but they fail deliver; their products fail to
carry the value they were supposed to carry. The entire firm with all the functions
and activities is involved in this step. In creating and delivering the product with all
the associated benefits, which the firm has decided to offer, there is a role for
technology, design and engineering finance management and the organizational
set-up On Marketing Concept, in this article we outlined up on the idea of
integrated management action. What is required in value creation and delivery is
integrated management action with marketing taking center stage.
Value Communication
After selecting the value to be offered and deciding how the value has to be
created /delivered, the firm tries to communicate the value to the customer. In this
step, there are actually two components. The firm works out a value proposition
and then communicates it to the customer. Making a Value Proposition In a
marketing endeavor, what the firm offers to the customer is not a mere physical
product; it offers a value proposition. The product offer consisting of the best
possible benefits/value is put forward as a value proposition, explaining how the
offer matches the customer requirement s and how it works out to be the best
among all the competing offers.
Communicating the Value Proposition
The firm then, communicates the value proposition to the customer. It explains the
uniqueness of its offer through a well-formulated marketing communication mix.
The customer exercise of assessing the value of the offer actually starts from this
stage.
Value Enhancement
The firm also continuously and proactively enhances the value. It collects feedback
from the consumer about his level of satisfaction with the product and upgrades the
value. It actually is a non-stop job for the firm to search for the customer
satisfaction level and augment the offer. Competing products, including substitute
products, keep attacking the value proposition of the firm. Expectations of
customers too keep changing. The firm has to search for the new expectations of
the customers, locate product gaps/ benefits gaps and keep making new and better
offers to the customer to stay ahead of the competition in value rankings. Sales
promotion gimmicks do not normally serve the purpose of sustained value addition.
Sales promotion measures like consumer deals and trade deals result in just a
temporary shift in the value-cost equation in favor of the consumer. When the deals
are withdrawn, consumers turn away from the product. What is needed is a
sustained and ongoing effort, not short-lived big bangs. The effort must be lasting
CLASS NOTES
value addition, which normally accrues only though factors like enhancement of the
functional utility/ convenience of the product.
TOPIC-7
FACTORS INFLUENCING BUYING
BEHAVIOUR
Consumer behavior is influenced by many different factors. Understanding your customer is

an important factor in go-to-market success.
Here are 5 major factors that influence consumer behavior:
1. Psychological Factors
2. Social Factors
3. Cultural Factors
4. Personal Factors
5. Economic Factors
1. Psychological Factors
Human psychology is a major determinant of consumer behavior. These factors are difficult
to measure but are powerful enough to influence a buying decision.
Some of the important psychological factors are:
i. Motivation
When a person is motivated enough, it influences the buying behavior of the person. A
person has many needs such as social needs, basic needs, security needs, esteem needs,
and self-actualization needs. Out of all these needs, the basic needs and security needs take
a position above all other needs. Hence basic needs and security needs have the power to
motivate a consumer to buy products and services.
ii. Perception
CLASS NOTES
Consumer perception is a major factor that influences consumer behavior. Customer

perception is a process where a customer collects information about a product and
interprets the information to make a meaningful image of a particular product.
When a customer sees advertisements, promotions, customer reviews, social media
feedback, etc. relating to a product, they develop an impression about the product. Hence
consumer perception becomes a great influence on the buying decision of consumers.
iii. Learning
When a person buys a product, he/she gets to learn something more about the product.
Learning comes over a period of time through experience. A consumer’s learning depends
on skills and knowledge. While skill can be gained through practice, knowledge can be
acquired only through experience.
Learning can be either conditional or cognitive. In conditional learning the consumer is
exposed to a situation repeatedly, thereby making a consumer to develop a response
towards it.
Whereas in cognitive learning, the consumer will apply his knowledge and skills to find
satisfaction and a solution from the product that he buys.
iv. Attitudes and Beliefs
Consumers have certain attitudes and beliefs which influence the buying decisions of a
consumer. Based on this attitude, the consumer behaves in a particular way towards a
product. This attitude plays a significant role in defining the brand image of a product.
Hence, marketers try hard to understand the attitude of a consumer to design their
marketing campaigns.
2. Social Factors
Humans are social beings and they live around many people who influence their buying
behavior. Humans try to imitate other humans and also wish to be socially accepted in the
society. Hence their buying behavior is influenced by other people around them. These
factors are considered as social factors. Some of the social factors are:
i. Family
Family plays a significant role in shaping the buying behavior of a person. A person develops
preferences from his childhood by watching family buy products and continues to buy the
same products even when they grow up.
ii. Reference Groups
A reference group is a group of people with whom a person associates himself. Generally, all
the people in the reference group have common buying behavior and influence each other.
iii. Roles and status
A person is influenced by the role that he holds in the society. If a person is in a high
position, his buying behavior will be influenced largely by his status. A person who is a Chief
Executive Officer in a company will buy according to his status while a staff or an employee
of the same company will have different buying pattern.
3. Cultural factors
A group of people is associated with a set of values and ideologies that belong to a
particular community. When a person comes from a particular community, his/her behavior
is highly influenced by the culture relating to that particular community. Some of the
cultural factors are:
i. Culture
Cultural Factors have a strong influence on consumer buying behavior. Cultural Factors
include the basic values, needs, wants, preferences, perceptions, and behaviors that are
observed and learned by a consumer from their near family members and other important
people around them.
ii. Subculture
Within a cultural group, there exists many subcultures. These subcultural groups share the
same set of beliefs and values. Subcultures can consist of people from different religion,
caste, geographies and nationalities. These subcultures by itself form a customer segment.
CLASS NOTES
iii. Social Class

Each and every society across the globe has the form of social class. The social class is not
just determined by the income, but also other factors such as the occupation, family
background, education and residence location. Social class is important to predict the
consumer behavior.
4. Personal Factors
Factors that are personal to the consumers influence their buying behavior. These personal
factors differ from person to person, thereby producing different perceptions and consumer
behavior.
Some of the personal factors are:
i. Age
Age is a major factor that influences buying behavior. The buying choices of youth differ
from that of middle-aged people. Elderly people have a totally different buying behavior.
Teenagers will be more interested in buying colorful clothes and beauty products. Middle-
aged are focused on house, property and vehicle for the family.
ii. Income
Income has the ability to influence the buying behavior of a person. Higher income gives
higher purchasing power to consumers. When a consumer has higher disposable income, it
gives more opportunity for the consumer to spend on luxurious products. Whereas low-
income or middle-income group consumers spend most of their income on basic needs such
as groceries and clothes.
iii. Occupation
Occupation of a consumer influences the buying behavior. A person tends to buy things that
are appropriate to this/her profession. For example, a doctor would buy clothes according to
this profession while a professor will have different buying pattern.
iv. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying
behavior is highly influenced by the lifestyle of a consumer. For example when a consumer
leads a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk
food.
5. Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a
country or a market. When a nation is prosperous, the economy is strong, which leads to
the greater money supply in the market and higher purchasing power for consumers. When
consumers experience a positive economic environment, they are more confident to spend
on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by unemployment
and lower purchasing power.
Economic factors bear a significant influence on the buying decision of a consumer. Some of
the important economic factors are:
i. Personal Income
When a person has a higher disposable income, the purchasing power increases
simultaneously. Disposable income refers to the money that is left after spending towards
the basic needs of a person.
When there is an increase in disposable income, it leads to higher expenditure on various
items. But when the disposable income reduces, parallelly the spending on multiple items
also reduced.
ii. Family Income
Family income is the total income from all the members of a family. When more people are
earning in the family, there is more income available for shopping basic needs and luxuries.
Higher family income influences the people in the family to buy more. When there is a
surplus income available for the family, the tendency is to buy more luxury items which
otherwise a person might not have been able to buy.
CLASS NOTES
iii. Consumer Credit

When a consumer is offered easy credit to purchase goods, it promotes higher spending.
Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy
installments, bank loans, hire purchase, and many such other credit options. When there is
higher credit available to consumers, the purchase of comfort and luxury items increases.
iv. Liquid Assets
Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid
assets are those assets, which can be converted into cash very easily. Cash in hand, bank
savings and securities are some examples of liquid assets. When a consumer has higher
liquid assets, it gives him more confidence to buy luxury goods.
v. Savings
A consumer is highly influenced by the amount of savings he/she wishes to set aside from
his income. If a consumer decided to save more, then his expenditure on buying reduces.
Whereas if a consumer is interested in saving more, then most of his income will go towards
buying products.
TOPIC-8
What is the Buying Decision Process?
The buying decision process, or customer decision journey, is the steps that lead a customer
to purchase a product or service. The buying decision process is present in many industries,
from retail to eCommerce. This journey flows through three stages: before, during, and
post-purchase.
Many factors can influence the buying decision process. Some of these factors
include:
 Personal factors like age, gender, lifestyle, and personality
 Psychological factors like motivation, perception, attitudes, and beliefs
 Social factors like family, friends, peer groups, and culture
 Situational factors like time, place, circumstances, and availability
Factors related to the product and business also influence customers’ buying decisions,
including marketing campaigns, the sales process, pricing strategies, and brand loyalty.
Although the buying decision process seems simple, it is a complex, strategic, and
interactive process that enables a company to boost and increase revenue, sales, and
profitability.
The Stages of the Buying Decision Process
CLASS NOTES
The buying decision process isn’t linear and fluctuates from time to time due to distinctive
customer purchasing patterns. However, when the buyer’s journey is understood,
companies can minimize and even leverage these variations in purchasing habits.
Organizations can optimize revenue by analyzing and collecting data on the buying decision
process and how each stage of the buyer’s journey moves the customer to make a decision.
Here are the five stages of the buying decision process.
Stage 1: Needs Requirement

Needs requirement is the first and most fundamental step in the potential customer’s
decision-making process. The customer’s need results from two main influences: internal
and external stimuli. Companies wanting to optimize this stage of the buying process need
to help potential customers recognize and define their needs. Gathering information through
market research, interviews, surveys, and focus groups helps organizations understand
their customers’ needs.
Stage 2: Information Search

In this specific stage, having recognized a problem or need, customers want to identify their
selections. The Information Search stage is when consumers seek information about a
product or service. They might do this by talking to friends and family, looking online,
reading reviews, or visiting a store. During this stage, consumers are trying to learn more
about what they want and determine which options are available.
Businesses can influence customer behavior at this stage by running advertising and social
media campaigns and optimizing their website content for SEO purposes.
Stage 3: Evaluation of Alternatives

After gathering information, consumers will enter the evaluation of alternatives stage. They
will compare their options and decide which is best for them. They might consider factors
such as price, quality, or features.
In this stage of the buying decision process, businesses influence consumer behavior by
providing information about the products or services available. This can be done through
advertising, product demonstrations, and other marketing activities. The goal is to persuade
the customer that the company’s products or services are the best option available.
Therefore, businesses must provide accurate and unbiased information about their products
or services during this stage. Doing so can increase the chances that customers will choose
their company’s products or services over their competitors.
Stage 4: Purchasing Decision

The purchasing decision stage of the buying decision process is when customers make a
final decision about which product or service to buy. Businesses can influence this stage by
providing product reviews, detailed descriptions, and pricing information to help customers
compare and choose between different options. By helping customers understand their
options and make an informed decision, businesses can increase the chances of making a
sale.
CLASS NOTES
Stage 5: Post-Purchase
Finally, the post-purchase stage helps foster brand loyalty and referral business. Post-
purchase is when consumers use and assess the product or service and decide if they are
satisfied or not and whether or not they would recommend it to others.
Businesses influence customers in the post-purchase stage in several ways. First, companies
can encourage customers to leave positive reviews about their products or services. This
helps to build word-of-mouth marketing and creates social proof that can influence other
potential customers.
Second, businesses can offer loyalty programs or discounts for customers who make repeat
purchases. Third, businesses can stay in touch with customers after purchase using follow-
up emails, surveys, and phone calls. By staying in touch, companies can build strong
relationships with their customers and create a loyal customer base.
Fourth, businesses can offer a warranty or guarantee on their products or services, which
gives customers peace of mind and shows that the company is confident in its offerings.
Finally, businesses can ask customers for feedback and use it to improve their products or
services. This helps ensure that customers are always happy with what they purchase and
helps businesses continuously improve.
Businesses can influence customers in the post-purchase stage and create loyal, satisfied
customers by using these techniques.

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CLASS NOTES

According to American Marketing Association (2004) - "Marketing is an organizational

According to Eldridge (1970) - "Marketing is the combination of activities designed to

1. Marketing is an Economic Function

2. Marketing is a Legal Process by which Ownership Transfers

3. Marketing is a System of Interacting Business Activities

4. Marketing is a Managerial Function

5. Marketing is a Social Process

1. Knowing and understanding the consumer's changing needs and wants;

6. Marketing is a philosophy based on consumer orientation and satisfaction

7. Marketing had dual objectives - profit-making and consumer satisfaction

1. Study of Consumer Wants and Needs

2. Study of Consumer Behaviour

3. Production Planning and Development

What is Marketing Management?

Marketing Management is basically identifying market opportunities and implementing

What is Marketing Management?

Businesses use marketing management techniques to achieve broader business objectives.

Importance of Marketing Management

1. Build and maintain the company’s brand

4. Effective way of engaging customers

1. Conduct market research and analysis

2. Set mission statement and objectives

3. Develop marketing strategies

Marketing strategy typical consists of:

4. Curate an actionable marketing plan

5. Implement a marketing plan

6. Monitor, Measure, Modify and Evolve

Marketing is referred to as the process of creating, communicating and delivering products

The five marketing philosophies are:

5. Social Marketing Concept (Societal Marketing Concept)

NEEDS – The essential things for us to survive

Maslow’s Hierarchy of Needs

“Maslow’s Hierarchy of Needs” or so called “Five-tier Model of Human

Therefore it has come to the role of marketers to distinguish the type of

Five Types of Needs in Marketing

Now, we have finish studying about “Needs”, “Maslow’s Hierarchy of Needs”,

Wants: Specific objects to fulfill our needs

Wants are directed by our surrounding towards reaching certain needs.

DEMANDS: Willingness and ability to buy Wants and Needs

Factors Influencing Demands – Social & Emotional Factors

Eight Demand States in Marketing (with Examples)

Non-existent Demand can change to be existent demand by creating awareness and

That’s where market orientation concepts come in.

Marketing Orientation Concepts

Advantages of Production Orientation:

Disadvantages of Production Orientation

Advantages of Product Orientation

 Mass production of products at lower costs

Disadvantages of Product Orientation

A sales-oriented approach can be especially effective for a business competing for

Advantages of Sales Orientation

 It generates immediate short-term sales.

Disadvantages of Sales Orientation

Advantages of Societal Orientation

 Promotes ethical practices

 Helps build a better image for the organization

Disadvantages of Societal Orientation

 The marketing message can be misleading

Marketing oriented organizations approach their operations from a consumer perspective