FLASHBACK NOTES// CLASS XI // MARKETING CHAPTER 1-INTRODUCTION TO MARKETING ‘MEANING OF MARKETING cevame canna oa ones ¥d See cca as ee moving the product or service to the final —— consumer segment with emphasis on | G proftabiity and customer satiaction, fnsuring the optimum use of the resources available tothe organization ess ome As per Philip Kotler, the marketing guru, marketing is a social and managerial process by Which individuals and groups obtain what they need and want through creating and ‘exchanging products and value with others. MEANING OF MARK ‘Market originates from Latin word ‘MARCUTUS’ which means a place where buyer and sellers meet for business, Earlier in our country buyer and seller gathered at a specific place called ‘haats‘or ‘melas’. But with passage of time buyers and sellers need not to meet face to face for transaction, they can meet virtually through e-commerce platforms. (MASLOW'S NEED HIERARCHY THEORY OF MOTIVATION ‘nysiological Needs: These needs are most basic in the hierarchy and correspond to primary needs. Hunger, thirst, shelter, sleep are some examples of these needs Safety/Security Needs: These needs provide security and protection from physical and emotional harm. Examples: Job security, stability of income, Pension plans ete (ii) Affitiation Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. (iv) Esteem Needs: These include factors such as sel-respect, autonomy status, recognition and attention (9) Self Actualisation Needs: It isthe highest level of need in the hierarchy. It refers tothe rive to become what one is capable of becoming. These needs include grovth, solf- fulfilment and achievement of goalsBEATURES OF MARKETING 4. Needs and Wants: & marketer's job in an organisation is to identify needs of the target customers and develop ANT bed produets and services that satisfy such needs. The process fof marketing helps individuals and groups in obtaining what they need and want. Thus, the primary reason or ‘motivation for people to engage in the process of ‘marketing isto satisfy some of their needs or wants. 2. Creating a Market Offering: Market offering refers to a complete offer for a product or service, having given features ike size, quality, taste, etc; at a certain price; available at 2 given outlet or location and so on. A good ‘market offer’ is the one which is developed after analysing the needs and preferences of the potential buyers. BUT Aygo 12. Customer Value: The buyers, however, make buying decisions on [lg their perceptions ofthe value of the product or service in satisying a their nee, in relation tots cost. A product wl be purchased onyt it (OE is perceived tobe giving greatest benefit or value forthe money, 4. Exchange Mechanism: The process of marketing involves exchange of products and aE services for money or something considered valuable by the people. Exchange refers to the process through which two or more parties. come together to obtain the desired product or service from someone, Sustomer Value Customers are smart and they evaluate between benefits they are acquling and price they are paying for those benefts, Customer =~ A value is difference between the values benefits the customer gains bok from owning a product and cost of abtaining the product. Customer giyems value can be shown as an equation as below: = ‘Customer Value = Total Customer Benefits ~ Total Customer Costs Customer Satisfaction ‘A Customer is said to be satisfied if their expectations match with the actual performance of the product. Customer satisfaction differs from one person to another; it's an experience which is different for different individuals. Satisfaction can only be measured by comparing pre-purchase expectation ‘and post-purchase experience. The equation used to determine the level of a customer's satisfaction is ‘Customer Satisfaction=Experience Expectationeae A duct awareness to eet Etc es 3. Marketing bui Pee) 11. Marketing Promotes Product Awareness to the Public The primary task of marketing is to get the product or service recognized by the ‘market. It is important that public awareness of praduet and company information is spread to the buying public, this is possible if heavy advertising, sales promotion, personal selling, direct marketing is done for creating awareness. 2, Marketing Helps in Enhancing Product Sales ‘Apart from public awareness about a company’s products and services, marketing helps boost sales and revenue growth. Once the public learns your product, through TV advertisements, radio commercials, newspaper ads, online ads etc, it will generate sales. More the people know a production a service; more interested they would be in buying the products. 3. Marketing Builds Company Reputation ‘Marketers continuously aim to create an image of the company in general public eyes. ‘They tend to create brand name recognition. This is done so that consumers can easily associate the brand name with the images, logo, or caption that they hear and see in the advertisements. With an established name in the industry, a business continues to grow and expand,IMPORTANCE OF MARKETING TO CUSTOMERS 1. Marketing creates Utilities: Marketing creates different types of utlities, form utility ~ from a plumber to furniture, place utility- product moving from the factory to the customer, time utility- product available when needed, information utlity- ingredients of the product and even how to use the product, and possession utlity- transfer of ownership from retailer to customer. 2. Large number of choices available: Marketers create needs and wants and try to satisfy that through offering variety of product choices. If one wants to buy soap, there are n numbers of brands available. For example Lux, Pears, Rexona, Dove are range of soaps offered by HUL 3. More platforms available: With the advent of technology, the marketers are offering customers both offline and online platforms to purchase. Now marketers are serving more number of customers through different ways, reminders of sales comes through sms, e-mail, facebook, whatsapp. Pa ects Sere erd enna IMPORTANCE OF MARKETING TO THE SOCIETY 1. Source of Employment: Marketing offers a great range of wide and exciting career opportunities. Marketing offers employment in the field of personal selling, packaging, and advertising, marketing research, consultancy, distribution and channel sales. 2. Welfare of Customers and Stakeholders: Though profit maximisation is main motive of every business but many marketers have taken up corporate social responsibility in order to give back to society. Different forms For example, HUL’s - Behaviour ‘Change Program where washing hands with soap before a mother touches her baby is proven to prevent many of infant deaths in villages. This campaign is to help teach ‘mothers this lifesaving habit and ‘Help A Child Reach S’.‘Scope of Marketing ‘The scope of marketing are explained as under: Goods: A tangible item which can be an article, commodity, material, merchandise, supply, wares produced from agricultural, — construction, manufacturing or mining activities 3 am Services: Products that have intangible properties such as banking, 3 consultancy, education, insurance, accounting, expertise, medical 2 reatment or transportation. = trea spor Experience: Marketers can create stage and market experiences to the customers, For example Water Park, and theme parks provide experience marketing. Another different real life experience is been enjoyed by customers at modern retail outlets. Shopping in a mall where the delightful experience comprises of not only shopping but also, spending time with family and friends, eating out and enjoying the complete day.People Marketing can help people to market themselves. Politicians are the most suitable and common example of people marketing. Politicians market themselves to the customers (voters) by promising them certain bundle of benefits. Cricketers, film stars, authors, painters, musicians and sportsperson market themselves. Place marketers include real estate developers, commercial banks, businesses etc. One can’t forget the incredible India campaign by indian government to market India as tourist Wee apn spot. In India, Bangalore is known as the silicon valley of ‘Madirga ‘Pradesh India, ‘Kerala is known as God's own country. Madhya Pradesh is known as “Heart of incredible India’. Organizations Organizations market themselves to crete and boost thei image in customers mind, They try to create 9 unique and as favourable Image nthe ees f Customers that ean give aN organizations an edge over others in the market place. ay Pimps promises, IS. customers products which are technologically advance and hassle free. Property Properties, whether tangible like real estate or intangibles like stocks can be marketed to the customers. Properties are bought ‘and sold and this exchange process seeks the role of marketing. Real estate developers (OLF, Unitech, and Supertech) develop property and seek buyers for the same. Events Marketers promote aifferent events from time to time their customers. These events can be for individuals or P organizations. Sports events like Commonwealth [MleaMiSeMlk games, Cricket world cup series, Musical Concert, ‘Awards, and Fashion shows, ete are events ~ Information Admission Brochure information is bsscaly produced and marketed and distributed” by universes, schools, alleges, newspapers, Iagatines, books ete to the customers at a price. The Customers here might be parents, students and communities,Ideas Every marketer offers some idea. Some offer it for money others do it for society in general Marketers make poft fom sodety and they BP ALE) shall also give back to the society. Social marketing comprises of creating awareness on few ideas like Family Planning, AIDS awareness, discouraging-smoking, child labour, domestic violence, ‘wearing of helmet while driving, blood and eye donation etc. ‘Marketing Management Philosophies ae TOSWEA Societal Marketing Concept Production Concept Production concept lays emphasis _on affordability, and availability of products. Affordability is possible by reducing cost of production by producing large quantities ‘and achieving mass production. Availability is possible by ‘mass distribution by making the product widely available. This philosophy states that any amount of goods produced will sell if itis available and affordable to customers. The Mantra for this concept Is "Low cost and mass production”. Product Concept zs It emphasises on innovation to produce better quality products, It believes in the ideology that @ “good product will sell itself” as rightly proven by Apple and Google brands. Both of these companies have strived hhard on their products and deliver customers rich feature, innovative and diverse application products that people just love these brands. Product improvement became the key to profit maximisation for firms in product concept.Selling Concept The concept is based on the belief that customers, be individual or organizations will rot buy enough of the organization's products unless they are persuaded to do so. So organizations should undertake selling and promotion of their products for success, Thus ‘making good products was not enough rather focus changed to pushing the sales of products through aggressive selling. The company does not consider the needs and wants rather thinks that anything and everything can be sold. Sipe CUNT BER eae cinco moy ‘Matting stants before the produc; sence or soliton is ready and cortines evan fer the sala hes been made. In marketing company makes honest cae ok Meee Te celeste ceractieg tow coos, Catone sattadn He Swongest par of marketing where company assures that customers ae sated after buying a product or service, This customer centre approach rather than product centric one Societal Marketing Concept ‘The societal marketing concept believes in giving back to the society as it believes that the company is profiting because of society and hence it should also take measures to make sure the society also benefits from the company. The concept advocates to deliver the customer [= satisfaction in a way that preserves or enhances the customer's and the society's well-being. BUSINESS ——oe, nn ‘approach suggests developing strong relationship with its partners who are suppliers and distributors. It will lead to better channel arrangements, higher levels of cooperation, less conflict, and increased efficiency. In relationship marketing everyone is treated as customers. By relationship-building with all of these organizations and individuals, we can develop strategies that are in the best interest of everyone in the entire channel of distribution. As a result, everyone wins.DIFFERENCE BETWEEN MARKETING AND SELLING Point of Difference Marketing Concept Selling Concept 41. Definition Marketing Is the process of creating Selling is the process of value for customer and delivering encoring customers for {g00ds and services for earning profit. increasing sales. 2. Objective The objective of this concept is to The objective of selling 3. Scope 4. Emphasis 5. Profit 6. Start satisfy customer through goods and concept isto increase sales of services goods and services. ‘The scope of marketing concept is The scope of selling concept is wider. arrow. ‘This concept emphasis on customer This concept emphasis on needs. products or services, ‘This concept earns profit through This concept earns. profit ‘customer satisfaction through attractive sales and ‘promotion. This concept starts with actual and This concept starts with potential customers existing product.