UNIT 1 Dr. RItu Bajaj - CBSE

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MARKETINGCLASS XIStudy MaterialUNIT - 1Unit CodeUNIT TITLE: Introduction to MarketingLocation:Duration:Class RoomLearning OutcomeMarks: nTraining MethodSession 1: Introduction to Concept and Definition Of Marketing1. Concept of2.1. Understandingmarketingof MarketingDefinition and concept in day toMeaning ofday studentsmanufacturers and with the concept ofmarketersof Manufacturerand2. Differenceproductsmarketer by makingbetween2.Understandthemmanufacturer andmarketingmarketerunderstanding3. Objectives ofneed,Marketingdemands, marketmanufacturer4. Detailedofferingsmarketers of each.definition of3.marketingobjectivesof understandmarketingwants,4.Understandmarket offering andthattheyconsume every daywants, and finding out theandUnderstand 2. making studentscustomerandby productspickingneed,demands,value customer value alongcustomersatisfactionwithcustomerin satisfactionmarketingSession 2: Scope and Importance of Marketing1. Understand1.Describe the 1. Specify scope Interactive Lecture:Scopeof scopeMarketingmarketing2. Importance ofmarketingof of marketing by Acquaintby supportingstudentswith the scope andexamples in each importanceof1

Marketing.ideas, case mentionedpeople,2.Identify types of Activity: 1. Prepareexperience,events,places, marketsbasisproperties,ofthe anlevel,assignmentbycollectingprintand advertisementsandanalysingthemediumand ngmessage conveyed inaMarket and Typesof Markets3. Specify the role marketing of goods,of marketing in omarketers,of ideas, experience,in a events,places,economy,company, societyand consumerscustomerproperties,organisationsandand information.society3.Visitdifferentcompanies and finddifferentmarketingand selling activitiesadoptedSession 3: Journey of marketing through different Marketing Philosophies1. Evolutionof 1.Understand the 1.IdentifydifferentevolutionMarketingmarketing through behindPhilosophiesproductionconcept,of basicthe Interactive Lecture:ideology Discussioneach different philosophiesconcept evolvedproductof marketing evolvedover period of time.concept , selling 2.concept,ofEnumerate Activity: Prepare ansupportiveassignment of WhichMarketing concept examples for each Philosophiesandsocietal conceptarebeing adapted as permarketing concepttodays context withDistinguishexamples to supportbetweenfrommarketinganddifferentindustry2

sellingSession 4: Difference between Marketing and Selling1. Concept of Marketing 1.and SellingmarketingExplain 1.Identifythe Interactive Lecture:and pointof Discussion on howselling as different differences in the marketing and sellingconceptsmarketingand are different2.Understandingselling conceptsActivity:different1. Visit in a groupdifferentideologies behind 2. List out the tomarketingthe for etailers). Make areport to find themarketing activitiesof each of llowed in sellingand marketingUNIT TITLE: Introduction of MarketingLearning ObjectivesAfter reading this unit, students will be able to: Explain the meaning and concept of marketing Understand the importance of marketing to Marketer, consumers and society Understand the scope of marketing Distinguish between marketing and selling Learn the journey of marketing through different philosophies Explain the meaning of certain keywords3

INTRODUCTIONConsider a typical day in one’s life. We start our day with consumption of different sorts ofproducts from the moment we wake up in the morning to the time we go to bed. Most of thetimes we start our day by taking a bath with the soap and the shampoo that we use. Thebreakfast we take might be a parantha, bread, butter, milk, tea or juice. The cloth we drape in.We may be using public and private transport for commuting to go to schools or workplace.The use of gadgets throughout the day, the television shows we watch for entertainment, thebooks and newspaper or information material we read, the bed mattress we sleep on and thelist of products we use are endless. The entire day we consume different sorts of products.Have we ever thought of where do these products come from? Who does manufacture them?How does the product reach us and how have we come to know about the product?There are three classes involved in the complete process of consumption i.e, the manufactureror producer, marketer and the end user. A manufacturer is someone who makes products in afactory; anything from a needle to a plane. A producer is someone who makes the product butnot in a factory. For example, a farmer is a producer of fruits and vegetables. On the otherhand, marketer is someone who performs various activities to facilitate exchange of goodsand services between the producers or manufacturers and users (consumer) of the product.End user is a person who ultimately uses or intends to use the product also known asconsumer.For example 'Fiama Di Wills soap', ‘Engage deo’,‘Aashirvaadaata’, ‘Sunfeast biscuits’,‘Bingo snacks’, ‘Yippee noodles’, ‘B Natural juices’, ‘John player’ and ‘Miss player cloths’are manufactured by Indian Tobacco Company (ITC) and marketed by ITC too. But there canbe different set of manufacturers and marketers like ‘Good Day Crunches’ is manufacturedby J.B.Manghram Food Pvt. Ltd but marketed by Britania. Similarly ‘Polo mint candy’ brandwith a hole in the middle is manufactured by Makson Pharmaceuticals but marketed byNestle India. Thus, Britania and Nestle are marketer’s but not manufacturers of the products.These firms undertake various activities to stimulate the demand of their products and earnprofit by meeting customers’ needs and wants. These firms perform various activities by themarketers to facilitate exchange of goods and services between the producer and consumer4

called marketing activities. We as consumers might know the marketer’s name as that is whatis popularly known.Activity 1Pick out products that you consume every day basis. It can be from chewing gum to aCar. Find out is the manufacturer and marketer the same. Mention at least 10 productswith the (i) same marketer and manufacturer and (ii) different marketer andmanufacturer.SESSION 1: Introduction to Concept and Definition Of MarketingThe term marketing has been described by different people in different ways. For some it is afun activity of ‘shopping’, for some it is shopping along with entertainment. There are otherswho question, does marketing mean selling? Some of us believe marketing starts after selling;they believe ‘selling’ is merely where a salesman is required to sell. However, selling is a partof marketing, selling includes selling of goods, services and ideas. Marketing is a broaderterm and selling is one of the functions of marketing. Some people question does marketingmean advertising? Marketing undoubtedly includes advertising; the main role of advertisingis to ‘communicate’. But marketing is much bigger than advertising. Does marketing meandistribution? The answer is same as in the above two cases thus the product that reaches us isanother function of the marketer i.e. distribution function, but marketing is much bigger thanthis too. Some even believe that marketing is a post-production activity. Marketing involvesvarious activities that take place even before the products are produced.What does the term marketing mean?Marketing refers to the process of ascertaining consumer needs, converting them intoproducts and services, and then moving the product or service to the final consumersegment with emphasis on profitability and customer satisfaction, ensureng the optimum use of the resources available to the organization.Marketing is the process of planning and executing the conception, pricing, promotion, anddistribution of ideas, goods, and services to create exchanges that satisfy individuals andorganizational objectives.As per Philip Kotler, the marketing guru, marketing is a social and managerial process bywhich individuals and groups obtain what they need and want through creating and5

exchanging products and value with others. The author has considered marketing as asocial process where interaction of people is an essential component of it. Through thisinteraction the persuasion for selling the products or services begins. Thus marketing ispurely purchase decision of the customer but through continuous marketing initiatives atdifferent stages. Marketing starts before the production of the goods and continues even afterthe selling of the products. So we say marketing is a continuous process. Where activitiespertaining to identification of the needs, wants and demands of the customer, then designingof a suitable product to meet the needs, giving name to the product and converting it to abrand by communicating it to the customers.Figure 1.1: Core Marketing Concepts, source: www.expertsmind.comLet’s understand few Marketing Concepts that are a part of the definitions:Need(s), Want(s) and Demand(s)Need(s)Marketing is a continuous process. Our marketers are individuals who enter in the market andhave understanding of the activities of the marketing. For understanding the activitiesproperly, understanding the needs and wants of customers becomes essential. Thus,6

marketing is satisfaction of the needs and wants of the customer. Needs are the state of beingdeprived of something.Needs can be physical like hunger, clothing, shelter and sex. If unsatisfied it leaves a personunhappy and uncomfortable. For example, when we are fasting and didn’t have food sincemorning the moment a person names our favourite food it is tough for us to resist. Needs canalso be social like love and belongingness, self-esteem like status and self-actualizationneeds. These needs are not invented by marketer rather the widely known academic model ofneeds was proposed by psychologist Abraham Maslow. Although this model is prominentlyused in motivational studies but can also be applied for studying customers’ needs. Customerneeds are the problems that customers plan to solve with the purchase of goods or services. Amarketer can’t create needs. Marketers have the option of identifying, analyzing, anticipatingand fulfilling the needs only.Fig 1.2: Maslow’s Hierarchy of Needs, source: storify.comWant(s)Wants are the form taken by human needs as they are shaped by culture and individualpersonality. These are essentially dependent upon needs. For example, a person in NorthIndia would satisfy his hunger with rajma and chawal while a person from South India wouldlike to have fish curry and rice.Demand(s)7

We may want to dine out in a five star hotel. But the question is do we have money to dine atTaj? If yes, then it will become demand. Wants backed by willingness and purchasingpower is known as demand. The top marketing companies like HUL, Idea and Airtel etc.first understand needs and wants of customers and then fulfil the needs, wants and demandsby conducting consumer research and get regular feedback from their salesmen in the marketabout unfulfilled customer needs. For example : Big Bazaar a retail store of Future group,shop floor managers regularly mingle with customers on the shop floor and try to satisfyevery customer.Objectives of MarketingA company must be clear with its marketing objectives and it these objectives must fit in withthe overall business objectives for formulation of proper business strategy. The objectives ofmarketing the company must take care are:1. Creation of Demand: The marketing management’s first objective is to create demandthrough various means. A conscious attempt is made to find out the preferences andtastes of the consumers by the company. Demand for the products and services arecreated by informing the customers their utility. According the products and servicesare produced to satisfy the needs of the customers.2. Customer Satisfaction: The first and foremost marketing manager must study the demandsof customers before offering any product or services. Marketing begins and ends with thecustomer. Satisfaction of the customers is outcome of understanding of needs and meetingthem successfully.3. Market Share: Every business aims at increasing its market share. It is the ratio of its sales tothe total sales in the economy. For instance, both Pepsi and Coke compete with each other toincrease their market share. For this, they have adopted innovative strategies. These strategiescan be adopted in marketing, advertising, sales promotion activities and even throughinnovative packaging, etc.4. Generation of Profits: The marketing department is the only department which generates revenuefor the business. Sufficient profits must be earned as a result of sale of want-satisfying products. If thefirm is not earning profits, it will not be able to survive in the market. Moreover, profits are alsoneeded for the growth and diversification of the firm.5. Public Image: To build up the public image of a firm over a period is another objective ofmarketing. Goodwill of company is created over a period of time with regular emphasis oncustomer satisfaction through continuous improvement in product and services. The marketingdepartment provides quality products to customers at reasonable prices and thus creates itsimpact on the customers.8

Create a Market OfferingWhy do we purchase or own anything? Many of us own iPods. We own one because we wantto hear music. Or we own one because we have been influenced to buy one. AfteriPod’s wereintroduced, few purchased the device because the image it had was they were “cool”. Owningan iPod became a cool fashion statement. But now iPods have become quite common but theimpact that iPods had on the music and entertainment industry has been huge because theproduct was a revolution in the entertainment industry which replaced walkman a device usedearlier.People buy things to solve needs. In the case of the iPod, the need is to have betteraccess to music or to look cool, or both. ‘Market Offerings’ are products and servicesdesigned to deliver value to customers—either to fulfill their needs, satisfy their “wants,” orboth. Market offering refers to a complete offer for a product or service. The product orservice that is sold into the marketplace is called as a market offering.ProductNeeds and wants can be satisfied with products and services offered to the market. A productis not limited to physical objects or tangible items i.e they can be touched, seen and felt ratherit is anything that satisfies a need is called a product. Product also includes services which areintangible along with tangible goods. A product can be a person, place, organisation,activities and even ideas. There are thousands of examples of products like food products,TV, Laptop, Mobile Phones, and Clothes etc.Source: fssairegistration.inFig 1.3: Products9

ServicesServices are deeds, processes and performances coproduced/provided by one person foranother person. Services are intangible products which can’t be touched, seen and felt. Aseconomy grows, the service sector also starts flourishing. The same can be seen in Indianscenario here services contribute more than 55% to the GDP. Service sector includesbanking, insurance, teaching, advertising, consultancy etc.Source: hotelbobbyssolitaireinternational.inFig 1.4: ServicesCustomer ValueAs discussed in the example of buying an iPod, we buy an iPod because it not only givesgood music output (benefit) but also the cool fashion statement associated with it. Imagineone buying a product? When we buy a product, aren’t we thinking of the benefits the productbrings to you. It’s not only benefit it is rather the bundle of benefits associated with theproduct in the form of product quality, after-sales services, warranty, repairs costs, free homedelivery, user friendliness etc. Customers are smart and they evaluate between benefits theyare acquiring and price they are paying for those benefits. Customer value is differencebetween the values benefits the customer gains from owning a product and cost of obtaining10

the product. The cost of product is not limited to price but also time and energy spentshopping. Customer value can be shown as an equation as below:Customer Value Total Customer Benefits – Total Customer CostsThus the marketer’s role is to add more value to product in terms of benefits so that customerprefers the product in relation to competitor’s product.Customer SatisfactionCustomer satisfaction is the measure of success of an organization. A Customer is said to besatisfied if their expectations match with the actual performance of the product.Customer satisfaction is the match between customer expectations of the product and theproduct’s actual performance. Customer satisfaction differs from one person to another;it’s an experience which is different for different individuals. A proper evaluation of aproduct or service can only be done by experiencing it. So, customer satisfaction is a postpurchase phenomenon. Satisfaction can only be measured by comparing pre-purchaseexpectation and post-purchase experience. The equation used to determine the level of acustomer’s satisfaction is:Customer Satisfaction Experience – ExpectationCustomer satisfaction is only obtained once the customer has experienced a product orservice. It is always a post purchase phenomenon which is quite emotional in nature.Exchange ProcessExchange is the act of obtaining a desired object from someone by offering something inreturn. Marketing works through exchange. Exchange process is simply when an individualor an organisation obtain and satisfy a need or want by offering some money in exchange ofproducts or services. For example we go get a haircut at a salon, we pay for the hair cut. Themoney paid in lieu of the service taken is an exchange process.This exchange process extendsinto relationship marketing and we enter into exchange relationships all the time. Withrelationship marketing the purpose is to build a long-term relationship with the customer. In11

the above example if we are satisfied by the haircut service we may intend to take moreservices from the same saloon and intend to become a permanent customer with the salon. Bydelivering value to customers, a relationship with customers is developed. So marketing isearning profit by building relationship with customer through satisfying his needs and wants.The same can be applicable for a product too.KNOWLEDGE ASSESSMENT 1Fill in the blanks with appropriate answers:1. makes products but not in factories.2. starts before production of goods but continues after selling ofproducts.3. are state of being deprived of something.4. Wants are human needs shaped by and.5. Wants backed by willingness and purchasing power are called .6. The intangible acts and deeds offered from one party to another without the transfer oftitle is called .7. Customer value is a, which reflects the state of differencebetween customer benefits and customer costs purchase (pre-purchase ).8. Customer satisfaction is a , which reflects the state ofdifference between product or service experience with that of expectation (postpurchase).9. [Ans: 1. Producer, 2. Marketing, 3. Needs, 4. Culture and personality, 5. Demands, 6.Services, 7. Proactive component, before, 8. reactive component]Session 2: Scope and Importance of MarketingGone are the days when marketing was confined only to goods and services. Now the scopeof marketing has increased and one can also market people, ideas, experience, events, places,12

properties, organisations and information and not just confined to goods or services. In otherwords anything that is of value to others can be marketed. The scope of marketing areexplained as under:Goods: A tangible item which can be an article, commodity, material, merchandise, supply,wares produced from agricultural, construction, manufacturing or mining activities.Services: Products that have intangible properties such as banking, consultancy, eatmentortransportation.Experience: Marketers can create stage and market experiences to the customers. Forexample Water Park, and theme parks provide experience marketing. Another different reallife experience is been enjoyed by customers at modern retail outlets. Now retailing is not anactivity involved in just selling goods to the customers, it has now become an experience.Shopping in a mall where the delightful experience comprises of not only shopping but also,spending time with family and friends, eating out, watching movie and enjoying the completeday.Fig 1.5 Marketing of Experiences, source: mnftiu.cc, indiafamousfor.comPeopleMarketing can help people to market themselves. Politicians are the most suitable andcommon 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. Some of the well-known personalities areAmitabh Bachchan, Sachin Tendulkar, Salmaan Khan etc. These people are not onlysuccessful in marketing themselves but also they lent their names to products like perfumes13

(Shilpa Shetty), retail stores by the name of true blue (Sachin Tendulkar), and cloths andaccessories by Salman Khan with the name of ‘Being Human’.Fig 1.6 Marketing of People, source: sports.ndtv.com, rt.comPlacesCities, state and nation can be marketed to the consumers. Place marketers include real estatedevelopers, commercial banks, businesses etc. One can’t forget the incredible India campaignby Indian government to market India as tourist spot. In India, Bangalore is known as thesilicon valley of India. Kerala is known as God’s own country. Madhya Pradesh is known as“Heart of incredible India”. A campaign by Amithabh Bachan for Khushoo Gujratki14

Fig 1.7 Marketing of Places, source: www.globalgujaratnews.in, www.tourismwatch.inOrganizationsOrganizations market themselves to create and boost their image in customers mind. They tryto create a unique and favourable image in the eyes of customers that can give organizationsan edge over others in the market place. ‘Tata group’comprising of multiple brands, standsfor trust and quality globally. Philips promises its customers products which aretechnologically advance and hassle free. So its marketing campaign is based on sense andsimplicity platform.15

Fig 1.8 Marketing of Organizations, source: www.thehindubusinessline.comPropertyProperties, whether tangible like real estate or intangibles like stocks can be marketed to thecustomers. Properties are bought and sold and this exchange process seeks the role ofmarketing. Real estate developers (DLF, Unitech, and Supertech) develop property and seekbuyers for the same. Same is the case with any investment company that wishes to sell itssecurities to individuals as well as institutions.16

Fig 1.9 Marketing of Properties source: dnaindia.com, indiainfoline.comEventsMarketers promote different events from time totime their customers. These events can be forindividuals or organizations. Sports events like Commonwealth games, Cricket world cupseries, Musical Concert, Awards, and Fashion shows, etc are eventskushaldave.wordpress.com, www.t20worldcup2016schedule.orgFig 1.10 Marketing of Events, source:InformationInformation is basically produced and marketed and distributed by universities, schools,colleges, newspapers, magazines, books etc to the customers at a price. The customers heremight be parents, students and communities. For exampleSource: en.wikipedia.org, businessworld.in17

Fig 1.11 Marketing of InformationIdeasEvery marketer offers some idea. Some offer it for money others do it for society in general.Marketers make profit from society and they shall also give back to the society. Socialmarketing comprises of creating awareness on few ideas like Family Planning, AIDSawareness, discouraging-smoking, child labour, domestic violence, wearing of helmet whiledriving, blood and eye donation s.comActivity IICollect 5 advertisements from latest newspaper or magazines for marketing of (i) services (ii)properties (iii) ideas (iv) places and (v) events. Understand the messages conveyed in eachcase. How each message is different from another and which is more appealing.By this time few more questions would be rising in your mind they may include: What is amarket? What all can be marketed? What all activities does a marketer perform? What ismarketing management? For having the answer to these questions lets read the text further:What is a market?Market originates from Latin word ‘MARCUTUS’ which means a place where buyer andsellers meet for business. Earlier in our country buyer and seller gathered at a specific placecalled ‘haats’or ‘melas’. But with passage of time buyers and sellers need not to meet face to18

face for transaction, they can meet virtually through e-commerce platforms. On the basis ofend use, market can be of different types: Consumer Markets (FMCG-Fast moving consumergoods, consumer durables, soft goods), industrial markets (finished goods, components andservices), intermediate markets (wholesale and retail markets), geographical location (local,national, global/international markets, rural and urban market), and Non-profit andGovernmental Markets (companies selling to non-profit organizations with limitedpurchasing power need to be price careful).The Importance of MarketingEarlier finance was considered backbone for any business but gradually marketing gainedimportance and was considered more important than other functions of business i.e. Finance,Production and Human resources. Later it was realized that to run business profitablycompanies need to market their products if they want to gain more profits. As for everybusiness the leading factor for success is the customer. Thus with the customer as acontroller, marketing becomes a major integrative function of the organization. However,Marketing cannot be kept apart and the Product, Pricing, Placement and promotions of theproduct ultimately depends on the marketing function.Currently marketing is a core business discipline since it contributes greatly to the success ofthe organization. It’s also essential to appreciate the concept of marketing as the cost ofmarketing amounts to forty to sixty percent of the total cost. Production and distributiondepend largely on marketing. Marketing covers advertising, promotion, public relations, andsales. It is the process of introducing and promoting the quality product or service into themarket. If the company targets more of customer’s needs, they will come back again andagain and even bring along other customers. On the other hand, if the company push more onthe product and ignore customer’s needs and wants, they will in no time lose their customers.Marketing plays an important role to the marketer, customers and society.Importance to the Marketers1. Marketing Promotes Product Awareness to the PublicThe primary task of marketing is to get the product or service recognized by the market. It isimportant that public awareness of product and company information is spread to the buyingpublic, this is possible if heavy advertising, sales promotion, personal selling, direct19

marketing is done for creating awareness. There is no fixed rule for all butobviously the useof a particular technique depends upon the nature of product, market and the financialconditions of the company.2. Marketing Helps In Enhancing Product SalesApart from public awareness about a company’s products and services, marketing helps boostsales and revenue growth. Once the public learns the your product through TVadvertisements, radio commercials, newspaper ads, online ads etc, it will generate sales.More the people know a productor a service; more interested they would be in buying theproducts.3. Marketing Builds Company ReputationMarketers continuously aim to create an image of the company in general public eyes. Theytend to create brand name recognition. This is done so that consumers can easily associate thebrand name with the images, logo, or caption that they hear and see in the advertisements.For example, McDonalds is known for its arch design which attracts people and identifies theimage as McDonalds. With an established name in the industry, a business continues to growand expand because more and more customers will purchase the products from a trustworthyand reputed company.Importance to Customers1. Marketing creates Utilities: Marketing creates different types of utilities, form utility –from a plumber to furniture, place utility- product moving from the factory to the customer,time utility- product available when needed, information utility- ingredients of the productand even how to use the product, and possession utility- transfer of ownership from retailer tocustomer.2. Large number of choices available: Marketers create needs and wants and try to satisfythat through offering variety of product choices. If one wantssoap, there are n numbers ofbrands 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 offeringcustomers both offline and online platforms to purchase. Now marketers are serving morenumber of customers through different ways, reminders of sales comes through sms, e-mail,20

facebook, whatsap, Even customers have become sma

2.Understanding different ideologies behind the concepts 1. Identify the point of differences in the marketing and selling concepts 2. List out the components essential for selling and marketing Discussion on how marketing and selling are different Activity: 1. Visit in a group to different marketing organisations in your locality

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