MODULE-I

INTRODUCTION TO MARKETING MANAGEMENT

Marketing is everywhere. Marketing touches every aspect of our lives, from our very birth to
our death. Our entire life, our life styles and our existence are continuously affected by marketing. If
we examine our daily life, commencing from getting up from bed in the morning to the time we go to
the bed in the night, we observe that we use a number of products and services. We get up from our
bed in the morning, may be with the help of an alarm clock. Then we brush our teeth with a Colgate tooth
brush and paste. After that we wash our face and wipe it with a towel manufactured by a reputed
textile mill. Next, we drink a cup of tea prepared from a well known brand, say, AVT Premium.
We use gas stove, say, BPL Sanyo, to prepare tea. Many types of utensils are used to prepare tea.
Then we wear dresses manufactured by well-known textile mills (S, Kumar or Maftlal or Arvind Mills).
Then we leave our homes for office or factory or farm by cycle or two-wheeler or car. Thus our activities
go on for the whole day, using several types of goods manufactured by different companies. Imagine
what the whole marketing system does for us.
Core Marketing Concepts (Basic Terms)
To understand marketing, it is necessary to study some basic terms such as customers, needs,
wants, demands, products, value, satisfaction, exchange, transaction, market etc. These are the core
marketing concepts. These concepts may be briefly discussed as follows:
Customers
Customers provide payment to an organisation in return for the delivery of goods
and
services. Therefore, a customer from a central point for an organisation’s marketing activities.
Needs, Wants and Demands
Marketing begins from customers’ needs and wants. Every individual has needs. Need simply
means necessity. Wants are things that satisfy our needs. These are deeper needs. Thus wants are
different from needs. Wants emerge from needs. Demand is a want for specific products that are
supported by an ability and willingness to buy them. Wants become demands when the wants
are backed by the ability to pay.
Products
Product is what a seller or marketer sells. A product is anything that can be offered to satisfy
a need or want. Products include goods, services and ideas.
Exchange and Transaction
Exchange is a process of obtaining a desired offer by sacrificing something in return.
When an agreement is reached, we say transaction takes place. Transaction consists of a trade of
value between buyer and seller. It indicates the completion of an exchange process between a
seller and buyer. Thus, transaction is an event and not a process.
School of Distance Education
Value and Satisfaction
Value means utility per unit of price. It reflects the relationship of benefits to costs, or
what we get for what we give. A consumer buys a product on the expectation that it will satisfy his
or her need or want. He buys those products which give him more value. If the actual value is equal
to the expected value he is satisfied. As the actual value increases, his satisfaction also increases.
If the actual value is less than the expected values he is dissatisfied.
Market
Market is the root word in the term marketing. The word ‘market’ is derived from the
Latin word ‘Marcatus. It means merchandise, trade or a place where business is conducted. In
ordinary language, the term market means a place where goods are bought and sold. In the context
of marking, a market consists of all the potential customers sharing a particular need or want
who might be willing and able to engage in exchange to satisfy that need or want. In the words of
Duddy, “Markets are people with money to spend and desire to spend it”.
Thus, market is an aggregate of people (individuals and organisations) who have a need for
certain products and the ability and willingness to purchase such products.
Meaning and Definition of Marketing
Marketing is a comprehensive term. It comprises of all activities performed by firms to
direct and facilitate flow of goods and services from producers to buyers. It is a two-way exchange
process in which needs and wants of both buyers and sellers are satisfied. It is the exchange of value
between buyer and seller.
There are numerous definitions of marketing. Different authors have defined the term
marketing in different ways. Some experts define marketing in simple terms. Barrett simply sees
marketing as,
“primarily concerned with the management of choice”. Enis (1974) defined marketing as,
“Marketing encompasses exchange activities conducted by individuals and organisation for the
purpose of satisfying human wants”.
Marketing:
Meaning:
The term ‘market’ has been derived from the Latin word ‘Mercatus’
which
mean ‘to trade’. The term carries certain other meanings like
merchandise, wares,
etc.
A market is essentially a place where goods and services are offered
for
sale. It is here that buyers meet sellers and get first-hand
information about the
goods they want to buy. Different types of goods are sold in a
market ranging from fruits and vegetables (perishable) to fridge and
television (durables).
Definition:
According to Pyle, “Market includes both place and region in which
buyer and
sellers are in free competition with one another”.
Marketing:
Definition:
According to William J. Stanton “ Marketing is a total system of
interacting business activities designed to plan, price, promote and
distribute want satisfying products and services to present and
potential customers”
Features of Marketing:
Marketing is consumer oriented
Marketing precedes and succeeds production
Marketing starts and ends with the buyer
Marketing guides business
Importance of marketing:
1) It enables the marketer to know the tastes and preferences of the
customers
and accordingly make the product. As a result they are able to sell
their
easily.
2) It fulfils the needs of the buyers by giving them what they want.
The buyers
get their money’s worth.
3) Innovations in marketing have given the buyer superior goods at
affordable
prices.
4) Marketing, today, has developed to such an extent that buyer are
able get
international brands of goods at their doorstep.
5) In the past, the buyer had to buy what was available. The growth
of
marketing has now given the buyers very many alternatives. The
buyers are
now in a position to select the best from among the many
alternatives.
6) It has eliminated outdated or obsolete products over the years. It
has updated
the technology in tune with the needs.
7) It helps the marketers in the matter of selection of the right
promotional tool.
8) It also guides the manufacturers in selecting the correct channel
of
distribution fot their products.
9) Marketing provides employment opportunities to many. There are
brokers,
commission, agents, truck operators, salesmen, copywriters and
others who
are engaged in the field of marketing.
10) Marketing has certainly converted ‘yesterday’s luxuries into
today’s
necessaries’. Goods that were once considered a beyond the reach
of the
common man are now common household items.
Objectives of marketing:
To Satisfaction of human wants
To Profit maximization
To develop marketing field
To Effective distribution of products
To find sources for further information market problems
To take appropriate actions in the course of actions

MarketingManagement:
Marketing Management is the process of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating superior customer value and
satisfaction.
Difference between Selling andMarketing
The old sense of making a sale is telling and selling, but in new sense it is satisfying customer
needs. Selling occurs only after a product is produced. By contrast, marketing starts long before a
company has a product. Marketing is the homework that managers undertake to assess needs,
measure their extent and intensity, and determine whether a profitable opportunity exists.
Marketing continues throughout the product’s life, trying to find new customers and keep current
customers by improving product appeal and performance, learning from product sales results,
and managing repeat performance. Thus selling and advertising are only part of a larger
marketing mix-a set of marketing tools that work together to affect the marketplace.
Scope of marketing
Now a day, marketing offers are not confined into products and services. The scope of marketing
is now becoming larger. Marketing people are involved in marketing several types of entities:
Goods: Physical goods constitute the bulk of most countries’ production and marketing effort.
Most of the country produces and markets various types of physical goods, from eggs to steel to
hair dryers. In developing nations, goods— particularly food, commodities, clothing, and
housing—are the mainstay of the economy.
Services: As economies advance, a growing proportion of their activities are focused on the
production of services. The U.S. economy today consists of a 70–30 services-to-goods mix.
Services include airlines, hotels, and maintenance and repair people, as well as professionals
such as accountants, lawyers, engineers, and doctors. Many market offerings consist of a variable
mix of goods and services.
Experiences: By orchestrate several services and goods, one can create, stage, and market
[Link] DisneyWorld’sMagic Kingdom is an experience
4
Event: Marketers promote time-based events, such as the Olympics, trade shows, sports events,
and artistic performances.
Persons: Celebrity marketing has become a major business. Artists, musicians, CEOs,
physicians, high profile lawyers and financiers, and other professionals draw help from celebrity
marketers.
Place: Cities, states, regions, and nations compete to attract tourists, factories, company
headquarters, and new residents. Place marketers include economic development specialists, real
estate agents, commercial banks, local business associations, and advertising and public relations
agencies.
Properties: Properties are intangible rights of ownership of either real property (real estate) or
financial property (stocks and bonds). Properties are bought and sold, and this occasions a
marketing effort by real estate agents (for real estate) and investment companies and banks (for
securities).
Organizations: Organizations actively work to build a strong, favorable image in the mind of
their publics. Philips, the Dutch electronics company, advertises with the tag line, “Let’s Make
Things Better.” The Body Shop and Ben & Jerry’s also gain attention by promoting social
causes. Universities, museums, and performing arts organizations boost their public images to
compete more successfully for audiences and funds.
Information: The production, packaging, and distribution of information is one of society’s
major industries. Among the marketers of information are schools and universities; publishers of
encyclopedias, nonfiction books, and specialized magazines; makers of CDs; and Internet Web
sites.
Ideas: Every market offering has a basic idea at its core. In essence, products and services are
platforms for delivering some idea or benefit to satisfy a core need.
Evolution of Marketing Concepts
The various concepts of marketing adopted over the years are as
follows:
[Link] Exchange Concept:
According to this traditional concept of marketing the central idea of marketing is the
exchange of a product between the seller and the buyer. This concept holds the view that
customer will accept whatever design quality etc. of products offered to them to fulfill their
needs.
5
2. The Production Concept:
According to this concept firms concentrate on finding more efficient ways to produce and
distribute products. This concept hold the view that customer will prefer those products that are
widely available and are of low price.
[Link] Product Concept:
Under this concept there is a shift from marketing of low cost products to marketing of high
costs products. This concept holds the view that consumer will prefer those product that offers
best quality and performance.
4. The Selling Concept;
The concept emphasises on selling efforts such as advertising, salemanship etc. This concept
holds the view that consumer will buy products only when they are induced to buy through
aggressive selling and promotion effort on the part of the seller.
5. The Marketing Concept:
Under this concept the target customer becomes the focus of all marketing decision. This concept
holds the view that the key to organisational success consist identifying and satisfying customers
requirement more effectively than competitors. The marketing concept is also referred to as
customer oriented concept.
[Link] Societal Concept: (April 2011)
a) This concept emerged in 1980's and 1990's. This concept hold the view that the tasks of
an organisation is to determine the needs, wants and interest of target markets and deliver the
desired satisfaction more efficiently and effectively than competitors.
b) It further emphasizes on to enhance and preserve the consumer and the society well
being. The societal concept thus calls upon markets to build social and ethical values into their
market practices.
c) The societal marketing stresses the need for an organisation to balance three factors while
taking marketing decisions. They are as follows :
i) Consumer Satisfaction ii) Company's Profit iii) Society's Well-Being
[Link] Concept:
6
This concept emerged in 1990's. According to this concept relationship marketing in
broader sense involves creating. maintaining and enhancing profitable and long term
relationship with valued customers, distributors, dealers and suppliers. This concept holds the
view that customers, distributors, dealers and suppliers will favour those companies that are
concerned with building and maintaining long term relationship.
FUNCTIONS OFMARKETING
It refers to those specialize activities that you as a marketer must perform in order to
achieve your set marketing objectives.
The functions of marketing are;
Researching
Buying
Product development and management
Production
Promotion
Standardization and grading
Pricing
Distribution
Risk bearing
Financing
After sales-service
(1)Research function: the research function of marketing is that function of marketing that
enables you to generate adequate information regarding your particular market of target.
You must carry out adequate research to identify the size, behavior, culture, believe, genders
etc. of your target market segment, their needs and want, and then develop effective product
that can meet and satisfy these market needs and want.
(2)Buying function: the function of buying is performed in order to acquire quality materials
for production. When you design a good product concept, you should also ensure you're
buying the essential materials for the product. This function is carried out by the purchase and
supply department, but your specifications of materials goes a long way in assisting the
purchasing department to acquire the necessary materials needed for production.
7
(3)Product development and management: product development is an essential function of
marketing since it was the duties of the marketing department to identify what the market need
or want and then design effective product based on the identified need and want of the market.
Product development passes through some basic stages carried out by the marketers to develop
a targeted market specified product. And you can also manage your product by evaluating
it performance and changing them to fit the current market trend.
(4)Production function: production is the function performs by the production department.
Though, this is interrelated to the department of marketing, because your product must possess
the essential characteristics that can meet the target market needs and want as identified during
your market research, such characteristics as in your product Test, Form, Packaging etc.
(5)Promotion function: promotion is one of the core functions of marketing since your finish
product must not remain in the place of production, hence, you as a marketer must design
effective communication strategies to informing the availability of your product to your target
market.
You must be able to design effective strategies to communicate your product availability and
features to your target market, such strategies as in; advertisement, personal selling, public
relation etc.
(6)Standardization and grading: the function of standardization is to establish specified
characteristics that your product must conform to, such standard as in having a specify test,
ingredient etc. That makes your product brand so unique. Grading comes in when you sort and
classify your product into deferent sizes or quantities for different market segment while
maintaining your product standard.
(7)Pricing function: you perform the function of pricing on your product offerings by designing
effective pricing systems base on your product stage and performance in the product life cycle.
Price is the actual value consumers perceive on your product, so you as a marketer should ensure
that your value of your product is not too high or too low to that of your costumers.
(8)Distribution function: the function of distribution is to ensure that your product is easily and
effectively moved from the point of production to the target market, the kind of transportation
system to employ e.g. Road, rail, water or air, and ensures that the product can be easily accessed
by customers. You as a Marketer should also design the kind of middlemen to engage in the
channel of distribution, their incentives and motivations etc.
(9)Risk bearing function: the process of moving a finished product from the point of production
to the point of consumptions is characterized with lots of risks, such risks as in product
8
damaging, pilferage and defaults etc. So you must provide effective packaging system to protect
your product, good warehouse for the storage of your product until they are needed, effective
transportation system to speedily deliver your product on time.
(10)Financing function: financing deals with the part of marketing to providing incomes for
your business. It refers to how you can raise capital to start operation and remain in business. It
refers to your modes of payment for the goods and services transferred to your costumers.
(11) After sales-service:In a more complex and technical product, you as a marketer should
make provision in order to assist your customers after they have purchased your product. In
terms of machines or heavy equipment product that requires installation or maintenance, most
marketing organization renders such services like installing the machine or maintaining it for
stipulated periods on time for free or by a little service charge.
Importance of
Marketing
1) Customer Satisfaction : Marketing is customer oriented. The essence of marketing
is to understand the need and wants of consumers. It starts with consumers and ends only
after satisfying their needs.
2) Helps to face competition : Effective marketing helps to face competition in Market
through pro-active decision making.
3) Corporate Image : Effective marketing helps the firms to develop and enhance its
corporate
4) Brand loyalty : Effective marketing helps to develop brand loyalty of customers.
Loyal customers does repeat purchases and gives recommendations to friends, relatives etc.
5) Brand Equity : Effective marketing develops brand equity as customers are willing to
pay premium price for effectively marketed brands.
6) Generates Employment : Marketing generates job opportunities directly or
indirectly in distribution, advertising, promotion etc.
7) Improves Standard of living : Marketing helps consumers to enjoy new and better
varieties of products and services at reasonable prices. It is marketing which has
converted "yesterday’s luxuries into today’s necessaries".
8) Price Control : Marketing brings a proper balance between demand and supply and
provides price stability.
9
9) Economic grow in : Marketing brings industrial and economic growth. It facilitates
full
utilization of available natural resources.
10) Creates Social awareness : Marketing helps non-profit organisation that creates
social - awareness on public issues.
11) Expansion of other sectors : Marketing helps in expansion of supporting sectors like
banking, communication, transport etc.
12) Market Expansion : Effective marketing helps business firms to expand its business from
local to national and international level.

PROCESS OF MARKETING
The marketing process involves five steps: The first four steps create value for
customers and build strong customer relationships in order to capture value from
customers in return.
Stage – 1:- Marketers must assess and understand the marketplace and customers
needs and demands.
11
Stage – 2:- Marketers design a customer driven marketing strategy with the goal of
getting, keeping and growing target customers. This stage includes market
segmentation, targeting and position.
Stage -3 :- This step involves designing a marketing program that actually delivers
the superior value. This step includes designing products and services, pricing the
product, distribution and finally promoting the product. .
Stage – 4:-The first three steps provide the basis for the fourth step that is building
profitable customer relationships and creating customer satisfaction.
Stage -5:- And finally, the company reaps the reward of strong customer relationship
and satisfaction by capturing value from customers
MEANING AND DEFINITION OF MARKETING
Marketing is a comprehensive term and it includes all resources and a set of
activities necessary to direct and facilitate the flow of goods and services from
producer to consumer in the process of distribution.
 Marketing is referred to a process of creating or directing an organization to be
successful in selling a product or service that people not only desire, but are willing to
buy.
 The traditional meaning of marketing is clearly borne out by the definition given by
Ralf S. Alexander and Others, “Marketing is the performance of business activities that
direct the flow of goods and services from the producer to consumer or user”.
 The modern concept of marketing was defined by E.F.L. Breach as, “Marketing is
the process of determining consumer demand for a product or service, motivating its
sales and distributing it into ultimate consumption at a profit”.
 By analyzing the above definition we can define the term marketing as a business
process which creates and keep the customer.
Difference between Marketing and Selling
Many people believe that marketing and selling are one and the same. But it is not so.
Marketing does not mean mere selling. It is more than selling. Selling is an important activity of
marketing .In the words of Edward [Link] “the difference between selling and marketing is
more than a semantic exercise. Selling means moving products while marketing means obtaining
customer”.
The important points of difference between marketing and selling are summarised as follows:
1. Selling refers to transferring goods and services to customers. Marketing includes not only
selling but also other activities connected with selling such as advertising, marketing research
etc.
2. Selling focuses on the needs of seller, while marketing focuses on the needs of buyers.
3. Selling aims at maximum sales and profit. Marketing aims at earning profit through customer
satisfaction.
4. Selling is concerned with distribution of goods already produced. But marketing begins before
production and continues even after sales have been effected.
5. Selling emphasises on short term objective of profit maximisation, but marketing emphasises
on long term goals such as growth and stability.
6. Selling is an activity that converts product into cash, while marketing is a function that
converts the consumer needs into products.
The value of Marketing
Marketing is the process by which a firm creates value for its customers. Marketing revolves
around value. It is all about creating, communicating, delivering and exchanging products or services
that have value for customers and society at large. Value is created by meeting customer needs.
Marketing is the delivery of value to customers at a profit. Thus, the two core elements of
marketing are value and profit, providing value and generating profit on sustainable basis is a
characteristic of the most successful companies, such as Apple and Tesco.
Marketing creates five types of values. They are functional value, social value, emotional
value, epistemic value and conditional value. These may be briefly explained as below:
1. Functional value: This is the perceived functional or physical performance utility received from
the product’s attributes. Reliability, durability and price are the attributes a product.
2. Social value: This the perceived utility acquired because of the association between one or more
specific social groups (e.g., reference groups) and the product. For example, gifts, products
used in entertainment etc. are driven by social values.
3. Emotional value: This is the capacity of a product to stimulate the consumer’s emotions or
feelings, For example, the consumer buying a Lifebouy soap expects an emotional value because
he/she expects that the soap is capable of protecting the health of children or family members.
4. Epistemic value: This comes from the product’s ability to foster curiosity, provide novelty and
satisfy and desire for knowledge. A person buying a book is driven by epistemic value.
School of Distance Education
5. Conditional value: This comes from some particular situation or circumstances facing the
customer. For example, Nescafe which is served at the hard day or on a lazy afternoon.
New Marketing Realities
The market place is not what it used to be. It is dramatically different from what it was 25 years back.
Today major societal forces have created new marketing behaviours, opportunities and challenges.
Some of the important new marketing realities may be outlined as below:
1. Network information technology: The digital revolution has created an information Age that
promises to lead to more accurate levels of production, more targeted communications, and more
relevant pricing.
2. Globalization: Technological advances in transportation, shipping, and communication have made
it easier for companies to market in, and consumers to buy from, almost any country in the world.
International travel has continued to grow as more people work and play in other countries.
3. Deregulation: Many countries have deregulated industries to create greater competition and
growth opportunities. In the United States, laws restricting financial services, telecommunications
and electric utilities have all been loosened in the spirit of greater competition. In India also the
government adopted liberalisation policy from 1990 onwards.
1. Privatisation: Many countries have converted public companies to private ownership and
management to increase their efficiency, such as the massive telecom company Telefonica CTC
in Chile and the international airline British Airways in the United Kingdom.
2. Disintermediation: The amazing success of early dot-coms such as AOL, [Link], Yahoo!,
eBay, E-TRADE, and others created disintermediation in the delivery of products and services by
intervening in the traditional flow of goods through distribution channels.
Importance of Advantages of Marketing
Marketing is a very much part of our normal lives, wherever we live. Firms cannot exist
without marketing wings. Peter Drucker said that marketing is everything. All other activities in the
organisation are support services to the marketing strategy. Take research or design or purchase or
production or finance- all these are support services to marketing.
Marketing is inevitable for the company, government, society and the economy as a whole.
A. Importance of Marketing Society
Marketing plays as important role in the development of a society. Marketing bridges the gap
between firm and society. It has built a bridge between the farms and factories, which has benefited
both agriculture and industry and also society as a whole. The advantages of marketing to society are
as follows:
1. Provides Employment: Marketing provides effective and continuous employment in the
School of Distance Education
production, distribution and promotion of goods. A large number of males and females opt for
career in marketing after graduation. It is estimated that out of 5 persons, 4 persons are
employed in marketing.
2. Raises standard of living: Marketing improves the quality of life of people by satisfying
varied and innumerable needs and wants of consumers.
3. Creates utilities: Marketing creates place, time and possession utilities. Transport creates place
utility. Storage creates time utility. Exchange creates possession utility.
4. Reduces costs: Marketing ensures optimum production and optimum consumption. This
reduces the cost of production. Thus the consumers get quality goods at cheaper prices.
5. Solves social problems: Marketing creates social awareness among people. We watch different
advertisements related with family planning, ecological balance, pollution control, consumers’
health, morals of the community etc. Societal marketing provides a proper platform to these
problems.
6. Makes life easier: Marketing meets the changing needs and aspirations of people by providing
goods of their choice at comfortable prices and places. Thus, marketing makes human life easier.
7. Enriches Society: Many firms encourage their employees to participate in activities that
benefit their communities and invest heavily in socially responsible actions and charities.
B. Importance of Marketing to Companies
Marketing is said to be the eyes and ears of a business organisation. This is so because
marketing keeps the business in close contact with its economic, political, social and technological
environment and informs it of events that can influence its activities as per the requirements of the
market. Following are the advantages of marketing to business firms.
1. Helps in income generation: Marketing helps in manufacturing products and services. No
firm can survive unless it markets its products. Thus marketing helps in generating revenue or
income for the firm. In short, marketing is the only revenue producing activity for the
organization.
2. Helps in planning and decision-making: Marketing planning is an integral part of
overall business planning. It helps in formulating marketing strategies and decisions.
3. Helps in distribution: Marketing helps the firm in selecting the distribution channels that deliver
goods to the consumer conveniently at minimum cost.
4. Helps in exchanging information: Marketing gives up-to date information to the top
management about nature and character of demand.
5. Expands global presence: Today many firms such as Honda, Sony, Nestle, Coca Cola
etc. operate in almost all countries. This is made possible through marketing.
6. Helps to earn goodwill: Marketing earns goodwill for the company.
School of Distance Education
C. Importance of Marketing to Consumers
Marketing is very important for consumers also. The importance of marketing to consumers can
be seen as under.
1. Provides quality products: Marketer undertakes research and development activities. This
helps in improving the quality of products. In this way, the consumers get better quality
products.
2. Provides variety of products: Marketing facilitates production and distribution of a wide
variety of goods and services for use by the consumers. On the basis of information
collected form markets, the production department produces variety of products.
3. Helps in selection: Marketing provides variety of products to the consumers. These products are
available in different sizes, designs, colours and prices. In this way, marketing provides various
options to consumers.
4. Consumer Satisfaction: Today the goal of marketing is consumer satisfaction. Consumers
can buy products according to their needs and wants.
D. Importance of Marketing to Economy
Marketing is a key ingredient in economic growth. It stimulates research and innovation. The
importance of marketing to the economy may be studied as under.
1. Saves the economy from depression: Marketing makes fullest utilization of the existing
capacity of the firms. During depression, the purchasing power of consumers is very low.
Marketing develops new markets and adopts promotional tools to save the economy from
depression.
2. Increase in national income: As already stated, marketing provides employment opportunities.
Thisincreases the income of the people. The higher income of the people facilitates expansion of
markets. Thus production and consumption increases. This ultimately increases the national
income.
3. Economic growth: The economic system moves forward with the marketing activities by
using the scarce resources effectively to produce useful commodities and meet the
consumption needs of the society. In this way, marketing facilitates economic growth.
Marketing Concepts
Marketing concepts means the philosophy, belief or attitude of the management of a
firm which guides its marketing efforts.
Types of Marketing Concepts
All companies will not adopt the same marketing concept. There are different marketing
concepts or marketing management philosophies under which business enterprises conduct their
marketing activities. All marketing concepts can be broadly classified into two-traditional
School of Distance Education
concepts and modern concepts.
Traditional Concepts
1. Exchange concept: Exchange is the origin of marketing activity. When people need to exchange
goods, they naturally begin a marketing effort. Wroe Alderson (a leading marketing theorist) has
pointed out, “It seems altogether reasonable to describe the development of exchange as a great
invention which helped to start primitive man on the road to civilisations”. The exchange concept
holds that the exchange of a product between the seller and the buyer is the central idea of
marketing.
2. Production concept: The production concept holds that the consumers prefer the goods
which are easily available at lower prices. Therefore, it is necessary to produce in large
quantities at lowers costs. Henry Ford is an example of production-oriented entrepreneur.
3. Product concept: It is a belief of the management that consumers favour the products of
superior quality, better performance and innovative features. Therefore, successful marketing
requires continuous product planning and development and improvement in quality
standards. It is based on the assumption that” a good product will sell itself”.
4. Selling concept: This concept assumes that consumers will not buy goods voluntarily. The
seller must, therefore, undertake a large scale selling and promotional efforts, Emphasizing
upon the selling concept, Sergio Zymen, Coca-Cola’s former Vice president of Marketing has
said, “The purpose of marketing is to sell more stuff to more people more often for more
money in order to make more profits”.
Modern Concepts
1. Marketing concept: This is the modern concept of marketing or marketing philosophy.
This concept holds that the primary task of a business firm is to study the needs,
desires and preferences of the potential consumers and produce goods which are
actually needed by the consumers. When an organisation practices the marketing concept, all
its activities are directed to satisfy the consumer. Successful companies realise that a satisfied
customer is the best advertiser for their product. Profits are generated not from their
production, products or selling efforts, but from the satisfaction of consumers. Consumers
are marketing assets.
2. Features of Marketing Concept (Modern Concept)
a. The consumer is the key. Therefore, the satisfaction of consumer is the prime object
of an enterprise.
b. A business enterprise has dual objectives of customer satisfaction and profit maximisation.
Profit is a by-product of supplying what the customer wants.
c. Needs and wants of customers must be identified properly and deeply before starting production.
d. Goods must be produced according to these needs and wants.
School of Distance Education
e. All the resources of production must be utilised to their best extent so that the cost of
production may be minimised.
2. Societal concept: Modern business is regarded as an integral part of society. An activity which
satisfies human needs may be detrimental to the interest of the society at large. Firms should not
only consider consumer wants and profits but also society’s interests while making their
marketing decisions. Thus, societal marketing concept is a management philosophy that takes
into account the welfare of society, the organisation and its customers.
[Link] marketing concept: Holistic marketing concept is a new marketing concept.
Holistic marketing recognizes that “everything matters” with marketing. There are four
components of holistic marketing concept. They are relationship marketing, integrated marketing,
internal marketing and social responsibility marketing. Holistic marketing concept is based on the
principle that marketing is not a department but it is pervasive throughout the company.
Marketing Management
Successful marketing does not generally come about by accident. For this, marketing should
be managed effectively.
Meaning of Marketing Management
Marketing management simply means the management of marketing activities. It is the
application of management tools and techniques in the efficient utilisation of available marketing
resources. It involves planning, implementation and control of marketing programmes included in the
process of marketing.
In the words of Kotler and Keller, “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”.
Thus, marketing management is the process of planning, organising, directing, controlling and
evaluating the efforts of an organisation for the purpose of achieving the marketing goals such as
customer satisfaction and profit maximization.
Marketing Management Tasks
There are four basic marketing management tasks. They are as follows:
1. Conversional marketing: This task is needed when there is a negative demand. Negative demand
exists when majority of consumers dislike the product or service. For example, vegetarians have a
negative demand for meats of all kinds. Here the challenge for marketing management is to
develop a plan or strategy that will try to convert the negative demand into a positive one. The
marketing needed for this is known as conversional marketing. In other words, conversional
marketing means using marketing communications to maximise conversion of potential customers
(prospects) to actual customers.
School of Distance Education
2. Developmental Marketing: This task is required when there is latent demand for a product
or service. Latent demand means that a substantial number of customers in the market
strongly share the need for a product or service that does not exist now at all. For example,
owning a passenger car is the ultimate dream of an Indian middle class family. Developmental
marketing is the task of developing latent demand for a product or service into its actual
demand.
3. Remarketing: The task of finding or creating new uses or users or satisfaction for an
existing product is also known as remarketing.
4. Maintenance marketing: The task of continuously monitoring the demand level and
maintaining at the full level is known as maintenance marketing.

Marketing Process

Dharmesh Shah
As consumers are exposed to more and more advertisements on social media, TV,
outdoors, etc., marketers need to attract customers to the product or brand rather
than interrupting their daily activities with them. How can marketers do this? By
optimizing the marketing process. The marketing process is through which brands
create customer value and thus build sustainable and profitable customer
relationships. In this article, we'll explore the importance of the marketing process
and how it can help achieve business goals. We'll discuss the definition of the
marketing process, the steps involved and provide examples to illustrate how it
works in practice.
Marketing Process Definition
The marketing process is the series of steps businesses follow to promote their
products or services to potential customers. It involves identifying the target
audience, creating a marketing strategy, implementing the plan, and capturing
customer value. Essentially, it's the process of making people aware of what a
business offers and convincing them to buy it.

The marketing process is a five-step process marketers use to create customer

value and build long-lasting customer relationships.
Example:

A small online clothing store follows the marketing process by identifying its target

market of young adults, creating a customer-driven marketing strategy that

emphasizes trendy and affordable fashion, developing an integrated marketing plan

that includes social media ads and influencer partnerships, fostering long-term

relationships through personalized customer service and loyalty programs, and

capturing value by offering competitive prices and Marketing Process Steps

Now, let's take a look at the marketing process steps. The five steps of the
marketing process include:

1. Understanding customers and the market,

2. Creating a customer-driven marketing strategy,
3. Creating an integrated marketing plan,
4. Fostering long-term sustainable customer relationships,
5. Capturing value from customers.

Figure 1 below outlines the marketing process steps.

encouraging repeat purchases.

Understanding Customers and Markets

The first step of the strategist marketing process includes understanding customers
and markets. The foundations of this step include understanding customer wants
and needs.
A customer need is something an individual needs in terms of survival. These
include basic necessities such as food, water, shelter, or clothing.

A customer want is something that an individual desires. For instance, an individual

needs food to survive; however, the individual might want different types of food,
such as soup, pizza, or rice.
ustomer wants and needs are what create demand in a market. The market is
where customers and businesses can engage in exchange relationships. In turn,
demand is fulfilled by the market, specifically market offerings. Market offerings
are the different types of goods and services businesses create to satisfy customer
demand.

Beyond just meeting demand requirements, marketers must ensure that a good or
service creates customer value. Creating value can lead to satisfied customers who
stay loyal to the brand. As a result, it is also crucial for building long-term customer
relationships.

Creating a Customer-Driven Marketing Strategy

The following step involves creating a customer-driven marketing strategy. Now
that we understand the basics of markets and customers, we must decide which
customers and markets to serve.

Creating a marketing strategy involves market segmentation, targeting, and

positioning (STP). The STP model helps marketers decide which customers to
target and how.

Once marketers have selected a target customer group, it is essential

to position and differentiate the product. Positioning and differentiation allow the
product or service to stand out from competitors by highlighting the value it brings
customers, thus, satisfying customer needs.

The business must also decide which overarching concept will lead its marketing
strategy. The five key concepts are as follows:

 The production concept follows the idea that customers will always
demand products that are available on the market. Therefore, companies
have to focus on maximizing production and distribution.

 The product concept is the idea that customers demand high-quality

products that have useful features and numerous benefits. Therefore,
companies should focus on product innovation and differentiation.

 The selling concept argues that customers will not value or purchase a
product unless a brand specifically targets large promotional campaigns at
them.
  The marketing concept follows that companies should create products that
satisfy customers' wants and needs better than competitors rather than
focusing on production or selling. Therefore, understanding customers is key.

 The social marketing concept is the most recent one. This concept argues
that organizations should satisfy both the short and long-term needs of
customers and society in general. The focus here is on maintaining the
welfare of the company and society. Therefore, the focus should be on
sustainability.

Creating an Integrated Marketing Plan

Once a marketing strategy has been established, it is time to create a marketing
plan.

The marketing plan outlines how the organization or brand will generate customer
value through different mediums.

The marketing plan broadly relates to the 4Ps of marketing: product, price,
promotion, and place. The brand can deliver value to its target customers through
the different elements of the marketing mix.

Marketing Planning Process

The marketing planning process allows a company to plan out the various activities
and tasks required to reach overall business goals. Some of the critical elements of
the marketing planning process include:

 Conducting a market analysis (internal and external),

 Establishing marketing goals and objectives,

 Establishing the marketing budget,

 Implementing marketing tasks required to achieve goals,

 Controlling the marketing process,

 Evaluating marketing outcomes.

Fostering Long-Term Sustainable Customer
Relationships
Once marketers have established an integrated marketing plan, they must focus on
building customer relationships. Every brand aims to foster long-term customer
relationships to sustain brand preference and customer loyalty.

Customer relationship management (CRM) is the overall process of interacting

with customers to build long-term sustainable relationships.

The primary goals of customer relationship management are to:

 Increase customer value perception by highlighting the benefits and features

of products and services,

 Increase customer satisfaction and mitigate customer dissatisfaction,

 Engage customers through brand management and marketing

communications on various channels,

 Promote customer-generated marketing (e.g., user-generated content (USG)

on social media, customer reviews, competitions, etc.).

Capturing Value from Customers

Once the first four steps of the marketing process are complete, it is time for the
company to capture value from customers.

What exactly does this mean? After ensuring customer value creation, the brand
can also capture customer value. This ensures that the brand stays profitable in the
long run.

How does a brand capture value? There are a few synergies that allow for this to
happen, and they are as follows:

1. By creating brand preference within target customers and long-term customer

relationships, the brand ensures repeat purchases (retention) and customer
loyalty. This idea is known as customer equity.

2. The brand can capture value due to increased market share creating
customer value and inducing retention.

3. Higher market share and customer loyalty lead to an increase

in revenue and profit, contributing to the company's financial success.
As a result, the marketing process allows customers to gain value from brands and
products, while brands can capture value from customer relationships.

Inbound Marketing Process

Inbound marketing focuses on attracting potential customers to a business through
valuable content and experiences rather than interrupting them with irrelevant ads
or messages. The inbound marketing process typically involves the following steps:

1. Attract: Attracting potential customers by creating relevant and valuable

content that solves their problems or answers their questions. This could
include blog posts, social media content, videos, infographics, etc.
2. Convert: Converting website visitors into leads by offering them something of
value in exchange for their contact information, such as a free e-book,
webinar, or consultation.
3. Close: Nurturing leads through the sales funnel and closing deals by
providing personalized and helpful information addressing their needs and
concerns.
4. Delight: Providing exceptional customer service and support to turn
customers into brand advocates who will refer others to the business and
continue to engage with the brand.

Marketing Process Importance

The marketing process is important as it allows brands to understand customers
and capitalize on long-term customer relationships. Figure 2 below outlines the four
different customer relationship groups.

The diagram outlines the relationship between customer loyalty and company
profitability. The four distinguished customer relationship groups are labeled as
follows:

 Butterflies show high profitability potential for the company in the short term.
Even by targeting these customers with effective marketing and CRM, the
company might encounter little luck turning these customers into long-term
loyal ones.

 Strangers are short-term customers who bring low profitability to the

company. It is not worth investing much CRM into these customers; the
company should enjoy the fleeting short revenue these customers bring.

 Barnacles exhibit limited customer-brand fit but are highly loyal to the brand.
It can prove difficult to generate profits through these customers. However,
 the company can attempt to remove certain benefits or increase prices to
drive profits from this segment.

 True friends are loyal and profitable customers. The company should invest
in significant CRM to engage and retain these customers.

Marketing Process Example

Before you head off, let's briefly examine a marketing process example. Imagine a
new clothing brand entering the market.

Understanding customers and the market:

A company that sells athletic shoes conducts market research to understand the
needs, preferences, and buying behaviors of its target customers, including their
age, gender, income, and lifestyle. This information helps the company create
products that meet the specific needs of its target market.

Creating a customer-driven marketing strategy:

Based on market research, the athletic shoe company develops a customer-driven

marketing strategy focusing on product differentiation, superior customer service,
and effective promotion. The company differentiates its products by offering the
latest technology and innovative designs while providing exceptional customer
service through personalized recommendations and fast delivery.

Creating an integrated marketing plan:

The company creates an integrated marketing plan that includes traditional

and digital marketing channels to reach its target audiences, such as social media
advertising, email marketing, influencer marketing, and sponsored events. The
marketing plan also includes a clear value proposition and messaging that
resonates with the target audience.

Fostering long-term sustainable customer relationships:

To foster long-term sustainable customer relationships, the company invests in

customer loyalty programs, such as exclusive discounts, early access to new
products, and personalized recommendations based on their purchase history. The
company also regularly collects feedback from customers and uses it to improve its
products and services.

Capturing value from customers:

The company captures customer value by setting competitive prices that reflect its
products' quality and value, while offering promotions and discounts to encourage
repeat purchases. The company also uses data analytics to track customer
behavior and identify opportunities for cross-selling and upselling.

Marketing Process - Key takeaways

 The marketing process is a five-step process marketers use to create
customer value and build long-lasting customer relationships.
 The five steps of the marketing process are:
1. Understanding customers and the market,
2. Creating a customer-driven marketing strategy,
3. Creating an integrated marketing plan,
4. Fostering long-term sustainable customer relationships,
5. Capturing value from customers.
 Positioning and differentiation allow a product or service to stand out from
competitors by highlighting the value it brings customers, thus, satisfying
customer needs.
 The marketing plan outlines how the organization or brand will generate
customer value through different mediums.
 Customer relationship management (CRM) is the overall process of
interacting with customers to build long-term sustainable relationships.

The marketing mix is the set of marketing tools the firm uses to pursue its
marketing objectives in the target market. McCarthy classified these tools into
four broad groups that he called the four P’s of marketing: product, price,
place and promotion.
Product: Product means the combination of goods and services that the company
offers to the target market.
Price: Price is the amount of money customers have to pay to obtain
the product.
Place: Place includes company activities that make the product
available to target consumers.
Promotion: Promotion means the activities that communicate the merits
of the product and persuade target customers to buy it.

Four P’s represent the sellers view of the marketing tools available for
influencing buyers. From a buyer’s point of view, each marketing tool is
designed to deliver a customer benefit. Robert Lauterbom suggested that the
seller’s four P’s corresponded to the customer’s four C’s.
Four P’s Four C’s
Product -------------- Customer solution
Price -------------- Customer cost
Place -------------- Convenience
Promotion ---------- Communication
The latest way to view four P’s from buyers’ perspective is SIVA which stands for
Solution: How can I get a solution of my problem? (Represents the product)
Information: Where can I learn more about it? (Represents promotion)
Value: What is m total sacrifice to get this solution? (Represents Price)
Access: Where can I find it? (Represents place).
Extended Marketing Mix (3 Ps): Now a day’s three more Ps have been added
to the marketing mix namely People, Process and Physical Evidence. This
marketing mix is known as extended marketing mix.
People:- All people involved with consumption of a service are important. For
example workers, management, consumers etc Process:- Procedure,
mechanism and flow of activities by which services are used. Physical
Evidence:- The environment in which the service or product is delivered,
tangible are the one which helps to communicate and intangible is the
knowledge of the people around us

The marketing activities of the business are affected by several internal and external factors.
While some of the factors are in the control of the business, most of these are not and the
business has to adapt itself to avoid being affected by changes in these factors. These external
and internal factors group together to form a marketing environment in which the business
operates.
Marketing Environment is the combination of external and internal factors and forces which
affect the company’s ability to establish a relationship and serve its customers.
The marketing environment of a business consists of an internal and an external environment.
The internal environment is company specific and includes owners, workers, machines,
materials etc. The external environment is further divided into two components: micro &
macro. The micro or the task environment is also specific to the business but external. It
consists of factors engaged in producing, distributing, and promoting the offering. The macro
or the broad environment includes larger societal forces which affect society as a whole. The
broad environment is made up of six components: demographic, economic, physical,
technological, political-legal, and social-cultural environment.
“A company’s marketing environment consists of the actors and forces outside of
marketing that affect marketing management ability to build and maintain successful
relationships with target customers”. – Philip Kotler
Components of Marketing Environment
The marketing environment is made up of the internal and external environment of the
business. While internal environment can be controlled, the business has very less or no
control over the external environment.
Internal Environment
The internal environment of the business includes all the forces and factors inside the
organization which affect its marketing operations. These components can be grouped under
the Five M’s of the business, which are:
Men
MoneyMachinery
Materials
Markets
The internal environment is under the control of the marketer and can be changed with the
changing external environment. Nevertheless, the internal marketing environment is as
important for the business as the external marketing environment. This environment includes
the sales department, marketing department, the manufacturing unit, the human resource
department, etc.
External Environment
The external environment constitutes factors and forces which are external to the business and
on which the marketer has little or no control. The external environment is of two types:
Micro Environment
The micro component of the external environment is also known as the task environment. It
comprises of external forces and factors that are directly related to the business. These
include suppliers, market intermediaries, customers, partners, competitors and the public
Suppliers include all the parties which provide resources needed by the organization.
Market intermediaries include parties involved in distributing the product or service of
the organization.
Partners are all the separate entities like advertising agencies, market research
organizations, banking and insurance companies, transportation companies, brokers, etc.
which conduct business with the organization.
Customers comprise of the target group of the organization.
Competitors are the players in the same market who targets similar customers as that of
the organization.
Public is made up of any other group that has an actual or potential interest or affects the
company’s ability to serve its customers.
Macro Environment
The macro component of the marketing environment is also known as the broad environment.
It constitutes the external factors and forces which affect the industry as a whole but don’t
have a direct effect on the business. The macro environment can be divided into 6 parts.
Demographic Environment:The demographic environment is made up of the people who
constitute the market. It is characterised as the factual investigation and segregation of the
population according to their size, density, location, age, gender, race, and occupation.
Economic Environment: The economic environment constitutes factors which influence
customers’ purchasing power and spending patterns. These factors include the GDP, GNP,
interest rates, inflation, income distribution, government funding and subsidies, and other
major economic variables.
Physical Environment:The physical environment includes the natural environment in
which the business operates. This includes the climatic conditions, environmental change,
accessibility to water and raw materials, natural disasters, pollution etc.
Technological Environment:The technological environment constitutes innovation,
research and development in technology, technological alternatives, innovation
inducements also technological barriers to smooth operation. Technology is one of the
biggest sources of threats and opportunities for the organization and it is very dynamic.
Political-Legal Environment:The political & Legal environment includes laws and
government’s policies prevailing in the country. It also includes other pressure groups and
agencies which influence or limit the working of industry and/or the business in the
society.
Social-Cultural Environment:The social-cultural aspect of the macro environment is made
up of the lifestyle, values, culture, prejudice and beliefs of the people. This differs in
different regions.

1.7MARKETING MANAGEMENT PHILOSOPHIES:

Marketing management is the carrying out the task to achieve desired
exchanges with target markets. Marketing activities should be carried out
under a well thought out philosophy of efficiency, effectiveness and social
responsibility. The philosophies are the guidance for marketing efforts. It
emphasizes on the weight that should be given to the interests of the
organizations, customers and society. There are some concepts under which
organizations conduct their marketing activities. These are:
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Holistic Concept
1.7.1 Production Concept: It holds that consumers will favor products that are
available and highly affordable. Therefore, management should focus on
improving production and distribution efficiency that means high production
efficiency, low costs and mass distribution. This concept is still useful in two
types of situations, when the demand exceeds the supply and when the
product’s cost is too high and improved productivity is needed to bring it
down. It is used when a company wants to expand the market. Managers
assume that consumers are primarily interested in product availability and low
cost.
1.7.2 Product Concept: It holds the idea that consumers will favor products that
offer the most quality, performance, and features and that the organization
should therefore devote its energy to making continuous product
improvements.
 Focuses on making superior product and improving them.
 buyers admire well-made products and can evaluate quality and performance.
 Product concept can lead to marketing myopia (that means lack of foresight or
long-term view regarding the product decision).
1.7.3 Selling Concept: It holds the idea that consumers will not buy enough of the
organization’s products unless the organization undertakes a large-scale
selling and promotion effort. This concept is typically practiced with unsought
goods, those that buyers do not normally think of buying, such as
encyclopedias or insurance. Most firms practice the selling concept when they
20
have over capacity. This concept takes an inside-out perspective. It starts with
the factory, focuses on the company’s existing products and calls for heavy
selling and promotion to obtain profitable sales.
 Consumer typically show buying inertia/resistance & must be coaxed into buying.
 To sell what they make rather than make what market wants.
1.7.4 Marketing Concept: It holds the idea that achieving organizational goals
depend on determining the needs and wants of target markets and delivering the
desired satisfactions more effectively and efficiently than competitors do. The main
task for marketers not to find the right customers for the product, but the right
products for the customers.
It can be expressed in many ways:
 Marketer balance creating more value for customers against making more profits.
 Marketing concept rest on four pillars: a) Target market b) Customer needs c)
Integrated marketing d) Profitability.
 Love the customer not the product
 Putting people first.
Understanding buyer behavior is the crucial to successful business. This chapter attempts to describe the
complex buying behavior with respect to individual consumers and industrial buyers with simple
examples. The aim of any business is to generate and retain customers, where understanding buyer
behavior is an important aspect. Many organization assume that their job is only limited to sell goods and
services. Consumer buying behavior is perhaps the area if focused properly, greatest gain can be made. A
consumer market is the set-up that allows customers to pick up products, goods, and services. In a
consumer market, the consumer makes choice about what products to buy and in what quantities.
Consumer market depends on various factors like level of customer involvement, importance of intensity
in a product in a particular situation. Below is a comparison of consumer markets with organizational
buyers.
3.4 Factors Affecting Consumer Behaviour Definition: The Consumer Behavior is the
interpretation of how an individual makes decision with regards to purchase a particular product over the
other and what the factors that influence such behavior are. Factors Influencing Consumer Behavior
Factors Influencing Consumer BehaviorPsychological Factors Social Factors
Cultural Factors Personal Factors Economic Factors
34 Companies aim to be cognizant of the acts of the consumers in the marketplace and the underlying
reasons for such actions. These reasons are the factors that influence the consumer behavior. These are:
Psychological Factors: The human intellect acts an important determinant in deciding the consumer’s
preferences and likes or dislikes for a particular product and services. Some of the important
psychological factors are: stimulus, perception, attitudes and Beliefs
Social Factors: We reside in a complex social environment where each one has different buying
behaviors however these buying behaviors are with the framework of acceptable norms of the society.
Therefore, the social factors impact the buying pattern of an individual largely. Some of the social factors
like family, Reference Groups, status etc. determine the buying preferences of the individuals.
Cultural Factors: It is believed that an individual gain an understanding of the set of values, insight,
conduct, and preferences at a very early stage of his life from immediate family, school and the other key
institutions which were around during his developmental phase. Thus, the behavioral patterns are
developed from the culture where he or she is brought up.
Demographic Factors There are several demographic factors personal to the individuals that impact
their buying decisions. Some of them are: Age, Income, Occupation, Lifestyle etc.
Economic Factors The last but not the least is the economic factors which have a significant impact on
the purchasing decision of an individual. These are: individual Income, Family Income, Consumer Credit,
Cash and other liquid assets of the Consumer, Savings. These are some of the factors that impact the
consumer behavior, and the companies must keep these in mind, to formulate suitable strategic marketing
decision.
Steps in Consumer Purchase Decision Process
Various steps in consumer decision process are as follows: a) Information search Highly involved
consumers or consumers involved with a product category would actively search for information about
the product category and the various alternatives, in contrast to consumers who are low on involvement.
36 While the former, would be active seekers of information, the latter would be passive recipients.
Active seekers would look out to various sources of information and would put in deliberate efforts
towards information gathering. b) Information processing The information processing activity would
vary across high involvement consumers viz low involvement customers. Highly involved consumers
would process product information with greater depth; they would make conclusions about brand
preferences based on arguments and counterarguments; they would tend to get emotional charged either
favorably because of likeability of the brand or unfavorably because of dislike ability of the brand. They
would also evaluate more alternatives. c) Information transmission Highly involved consumers talk
about the product/service category and the various brands available with great ease and level of interest,
as compared to consumers who are low on involvement in the product category. Information transmission
takes place via word-of-mouth, positive when the brand seems favorable, and negative, when it seems
unfavorable. d) The purchase decision The purchase decision, i.e. to buy or not to buy, or to buy brand
X over Y, is complex for a high involvement consumer than for one on low involvement. e) Post
purchase behavior Consumers who are high on involvement make post purchase evaluations about
product usage more critically than those on low involvement. It is noteworthy that high involvement
consumers are more difficult to please and satisfy; and the marketers need to put in a lot of effort to
satisfy them. This is because they not only have a bearing on their future purchase, but also on purchase
of others who are opinion seekers.