Principles of Marketing-1st Module -Introduction to marketing


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Principles of Marketing

Module 1-Introduction to Marketing

Fundamentals of marketing

Marketing deals with identifying and meeting human and social needs.  The objective of all business enterprises is to satisfy the needs and wants of the society. Marketing is, therefore, a basic function of all business firms.

Marketing is a social process where in people interact with others, in order to persuade them to act in a particular way, say to purchase a product or a service, rather than forcing them to do so. It is a process whereby people exchange goods and services for money or for something of value to them.

Phillip Kolter has defined marketing as, “a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others”.



Principles of marketing Unit 2 Consumer Behaviour and Market Segmentation

Principles of marketing Unit-3 Product and Pricing Strategy

Principles of marketing Unit 4-Marketing channels and Promotional strategy

Principles of marketing Unit 5-Advancements in Marketing


BMS-Module 1 Principles and functions of management new NEP syllabus

BMS-Module 2 Leadership and Motivation as per  B.com new NEP SYLLABUS

The importance of marketing can be summed up as follows:

Marketing is consumer oriented,  and hence it has a positive impact on the business firms. It enables the entrepreneurs to improve the quality of their goods and services. 

Marketing generates employment both in production and in distribution areas. Since a business firm generates revenue and earns profits by carrying out marketing functions, it will engage in exploiting more and more economic resources of the country to earn more profits. 

Marketing is important as it helps in improving the standard of living of the people by

(a) Creation of demand for goods and services,offering a wide variety of goods and services with freedom of choice, and by treating the customer as the most important person. 

(b) Betterment in the standard of living,

(c) Creation of social utility,

(d) Special benefit to developing countries,

(e) Maintenance of survival and mobility of business,

(f) Sense of security,

(g) Maintenance of balance between demand and supply,

(h) Means of living,

(i) Export promotion,

(j) Sales promotion,

(k) Increase in the risk bearing capacity

The scope of marketing 

The scope of marketing can be understood in terms of functions that an entrepreneur has to perform. These include the following:

 a. Functions of exchange: which include buying and assembling and selling? 

b. Functions of physical supply: include transportation, storage and warehousing

c. Functions of facilitation: Product Planning and Development, Marketing Research, Standardisation, Grading, Packaging, Branding, Sales Promotion, Financing.

BMS Unit 2 -Leadership and motivation

BMS Unit 1-Principles and functions of management

Elements of marketing mix

Marketing mix is a combination of factors that can be controlled by a company to influence consumers to purchase its products or services

The marketing mix consists of various elements, which have broadly been classified into four categories, popularly known as four P's of marketing. These are: (i) Product, (ii) Price, (iii) Place, and (iv) Promotion.

 

The elements of marketing mix (or the 4 P's of marketing mix). 

1. Product: 

  • Product means goods or services or ‘anything of value’, which is offered to the market for sale. 
  • For example, soaps, detergent powder , food products,  steel, trucks, salt televisions, refrigerators, monitors for computers,  milk, ghee, chocolates, etc. 
  • The concept of product relates to not only the physical product but also the benefits offered by it from customer’s view point (for example, toothpaste is bought for whitening teeth, strengthening gums, etc.).  
  • The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.

 2. Price: 

  • Price is the amount of money customers have to pay to obtain the product. 
  • For most of the products, level of price affects the level of their demand. 
  • The marketers have  to decide and also analyse the factors determining the price and fix a price for the firm’s products. 
  • Decisions must be taken in respect of discounts to customers, traders and credit terms, etc., so that customers perceive the price to be in line with the value of the product. 

3. Place: 

  • Place or Physical Distribution include activities that make firm’s products available to the target customers. 
  • Important decision areas include selection of dealers or intermediaries to reach the customers, and providing support to the intermediaries 
  • The intermediaries in turn keep inventory of the firm’s products, demonstrate them to potential buyers, negotiate price with buyers, close sales and also service the products after the sale. 
  • The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place of purchase.

 4. Promotion: 

  • Promotion of products and services include activities that communicate availability, features, merits, etc., of the products to the target customers and persuade them to buy it. 
  • Most marketing organisations, undertake various promotional activities and spend substantial amount of money on the promotion of their goods 
  • This is done using tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.). 
  • In case of advertising it is important to decide about the message, the media to be used (example, print-media– newspaper, magazines etc.). 
  • The success will depend on how well these ingredients are mixed to create superior value for the customers 
  • This simultaneously achieve their sale and profit objectives. 

First semester English Chapter 1 The Last Leaf

First semester English Chapter 2 All creatures great and small

Approaches of Marketing

There are four different approaches to the study of marketing. These approaches explain clearly the mechanism and concept of marketing. These approaches are Commodity Approach, Institutional Approach, Functional Approach and Decision Making Approach.

(1)  Product Approach:

This approach refers to the study of a product in detail. The marketing situation of each product chosen for study is examined from such viewpoints as sources and conditions of supply, producer marketing organisations, policies, different middlemen (wholesaler’s 6f retailers etc.) who take part in distributing the product.Problems with regard to a particular product are studied in detail under this approach. .

(2) Institutional Approach:

This approach relates to various marketing institutions viz., wholesalers, retailers etc., engaged in marketing. In applying this approach, a thorough study with regard to a particular middleman is undertaken. For example, in retailing, nature and significance of retailing in terms of functions and services performed and rendered by retail institutions like departmental stores, multiple shops, mail order houses etc.

(3) Functional Approach:

This approach comprises of the study of various functions performed in the process of marketing of goods and services like buying, selling, financing, transportation, banking, risk bearing, market information etc.. It analyses each function in relation to the importance of its performance.By analysing and studying every function in detail and problems confronted in the performance of each function, it is possible to understand marketing properly.

(4) The Decision Making Approach:

Various decisions are taken at every level of management. In successful marketing, decision making occupies an important place. The marketing manager should be very expert and competent in his job so that he takes proper decisions for marketing the goods and services.

The decision is based on two variables which can be classified as ‘uncontrollable’ and ‘controllable’. Uncontrollable’ variables relate to economic, sociological, psychological and political forces which are the basic causes of market changes. On the other hand, ‘controllable’ variables are within the control of the organisation. These refer to individual firm’s adjustments in prices, products, advertisement and selling policies etc. 

Analysing the Marketing Environment: 

The marketing environment refers to all internal and external factors which directly or indirectly influence the organisation's decisions related to marketing activities.The internal factors are within the control of the organisation whereas external factors  will not fall within its control

Marketing Environment


Definition: The marketing environment involves the internal factors such as employees customers, suppliers, retailers and distributors , intermediaries etc and the external factors such as political,legal,social,economical,and technological factors that surround the business and influence its marketing operations.
Some of these factors are controllable whereas some are uncontrollable factors.

Components of Environment
1.Micro Environment(Internal Environment)

  • The micro environment or the internal environment refers to immediate environment which influences the performance of the company and they have a direct bearing on the firm's regular business operations.
  • The internal marketing environment includes all the factors that are within the organisation and affects the overall business operations. It involves all the factors that are closely related with the operations of the business and can influence its functioning.
  • These factors include labour, money, inventory, company policies, logistics, budget, capital,etc.The micro environment factors include customers, employees, suppliers, intermediaries, competitors and general public.
  • These factors are controllable by the firm.
  • The factors under micro environment are:
 
i)Customers-Every business revolves around fulfilling the customers needs.Thus each marketing strategy is customer oriented that must focus on understanding the need of the customers and offering the best product that fulfills their needs.

ii)Employees-Employees are the main component of a business who contributes significantly to its success.The quality of employees depends on the training and motivation sessions given to them.

iii)Suppliers-Suppliers are the persons from whom the material is purchased to make a finished good and they are also very important for the organisation.It is crucial to identify the best suppliers that fulfil the firms requirement.

iv)Intermediaries-They are the retailers and distributors who determine the success of marketing operations.As they are in direct touch with the customers they can give suggestions about customers desires regarding a product.

v)Competitors-Keeping a close watch on competitors enables a company to design its marketing strategy according to the trend in the market.

vi)General Public-The business has some social responsibility towards the society in which it is operating.Thus all the marketing activities should be designed in such a way that result in increased welfare of the society as a whole.


2.Macro environment(External Environment)


The macro environment is made up of immense forces that influence the organisation and the industry.The elements of macro environment are

i)Demographic environment-
  • A firm must study the population ,its conveyance,age structure etc before choosing the strategy of marketing.
  • Each segment of the population acts differently depending on a range of factors like age, status and so on.
  • If these variables are measured a company can produce only those products which can satisfy the need of the consumers.

ii)Economic Environment-
  • It includes the factors that influence the spending patterns and purchasing power .
  • What the market needs is,purchasing power with the people.
  • Economic policies,economic conditions,and economic factors create the economic environment which can affect the business.

iii)Natural Environment-
  • In many cities of the world,the pollution levels of air and water have reached a dangerous level.
  • Marketers must be aware of the risk and opportunities with the subsequent trends in the natural environment which are mainly shortage of raw materials,increased energy,increased pollution levels and the dynamic act of the government in protection of the environment.

iv)Technological environment-
  • Technological variables includes the works which are innovation,robotization,new web developments and many other latest communication innovations.
  • From the consumers perspective, change in innovation implies a change in living standard.

v)Political Environment-
  • It contains laws,which are the pressure groups that affect and limit various organisations and individuals in a community.

vi)Cultural Environment-
  • The society is a mixture of different group of people with differing cultures.
  • The marketing manager has to carefully study and observe the society in which he works.
  • Even when the people of different cultures use the same products,the way they consume it the circumstance they use it,the purpose of use or the approach towards the product ,all those factors can vary widely.
  • Even the belief and value towards a particular colour may be different among different cultures.

3.Global Environment

Global marketing environment can simply be defined as “All the factors and forces inside or outside an organization or company which affects the marketing strategy to build and maintain successful relationships with targeted customer .The global environment can have a major impact on how a company operates.

4.The consumer-environment 

The consumer-environment comprises the family and the cultural, sociological and economic factors. The family environment is an important factor influencing the behaviour of individuals. It is through the family that individuals are introduced w society and imbibe standards of consumption habits

5.Technological Environment: 

Technology contributes to the economic growth of a country. It has become an indispensable part of our lives. Organisations that fail to track ongoing technological changes find it difficult to survive in today’s competitive environment. Technology acts as a rapidly changing force, which creates new opportunities for the marketers to acquire the market share. Marketers with the help of technology can create and deliver products matching the life style of customers. Thus, marketers should observe the changing trends in technology

Following points explain the technological trends that affect the marketing environment: 

a. Pace of Technological Change: It leads to product obsolescence at a rapid pace. If the pace of technological change is very rapid then organizations need to modify their products as and when required.

On the other hand, if the technology is not changing at a rapid pace then there is no need for the organization to bring constant changes in the product.

 b. Research and Development: It helps in increasing growth opportunities for an organization. Many organizations have developed a separate team for R&D to bring innovation in its products. 

6.Competition Environment.

A competitive environment is a system where different businesses compete with each other by using various marketing channels, promotional strategies, pricing methods, etc. This system has regulations within it that companies should follow.It helps an organization to differentiate its product to maintain position in the market. Competition refers to a situation where various organizations offer similar products and try to gain market share by adopting different marketing strategies.

Value Philosophy in Marketing

In Value Philosophy company focuses on delivering value to the customer.  While doing this company should keep on following conventional attributes like consumer orientation and satisfaction.  But, again satisfaction of customers depends on value delivery. In tangible benefits company can focus on functional utility of the product to enhance customer value.  This can be achieved with the help of experience, prestige and brand image.

Meaning of value

Value in marketing, also known as customer-perceived value, is the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others.The four types of value include: functional value, monetary value, social value, and psychological value.

Value Creation and Delivery

Value-creation and value-delivery is the main task of marketing. Marketing in its entirety is a value creating and value-delivering process. The whole bunch of tasks involved in marketing, serve the purpose of value delivery. They actually form a sequence leading to value delivery.

Marketing planning, buyer analysis, market segmentation and targeting are concerned with value selection. Product development, manufacturing, service planning, pricing, distribution and servicing, are concerned with value creation & value delivery. 

Value delivery

It is the manner in which a company design its products such that it gives maximum value to the customer using it. The value delivered to customers can be in the form of products, benefits, attributes etc. Anything which creates value for your customer should be involved in your value delivery process.

Upstream Marketing

Upstream marketing is a type of marketing strategy that focuses on a specific group of customers and identifies their particular needs. It is a long-term approach to business that considers future results.It requires a lot of time and patience because you don't know the outcome of your marketing immediately. This additional time provides you with the opportunity to adjust your business plan accordingly.

Upstream marketing is thinking ahead and preparing for issues that might occur. The main focus of upstream marketing is on innovation and inventive thinking. For example, a business might ask, "What will my customers need next?" It is a responsible way to tend to upcoming events in your business and the lives of your customers.The benefits of upstream marketing include getting ahead of your competitors, providing a solution before a problem arises and supplying your employees with an outlet for creative brainstorming.

Value Innovation

Value innovation is a process in which a company introduces new technologies or upgrades that are designed to achieve both product differentiation and low costs. ... The goal of value innovation is to create new demand and change the market enough to render the competition irrelevant in that market.

Value innovation strategy is based on the simultaneous pursuit of differentiation and low cost.Value innovation strategy seeks to break the value-cost tradeoff by eliminating and reducing factors an industry competes on and raising and creating factors the industry has never offered.

Co-creation of value

Co-creation of value is a business strategy, one that promotes and encourages active involvement from the customer to create on-demand and made-to-order products. With co-creation, consumers get exactly what they want and have a hand in making it happen.


Encouraging active involvement from the customer, co-creation of value from products or services is on-demand and made-to-order. It is a collaborative effort and customers help make it happen to reach their goals. Customer experiences and perceptions influence their considerations of value and highly informed consumers are willing to pay more for businesses who can meet their requirements.


BMS Unit 2 -Leadership and motivation

BMS Unit 1-Principles and functions of management

PM Unit 3-Product and Pricing strategy New

1st sem English as per new NEP syllabus 2021-22

First semester English Chapter 1 The Last Leaf

First semester English Chapter 2 All creatures great and small

First semester English Chapter 3 The Heart of a Tree

First semester English Chapter 4 Daughter

First semester English Chapter 5 The Ploughman

First semester English Chapter 6 My Teacher

First semester  English Chapter 8 A conversation with a reader


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Syllabus of Module No. 1: Introduction to Marketing (12 Hrs) Fundamentals of Marketing : Importance and Scope of Marketing; Elements of Marketing Mix; Approaches of Marketing. Analysing the Marketing Environment: Components of Environment; Micro & Macro Environment; Environment specific to the firm; Global Environment , consumer environment, technology environment, competition environment. Value Philosophy in Marketing: Understanding the value philosophy, Meaning of value; Value Creation and Delivery; Value Delivery Process; Value Delivery and Upstream Marketing; Value Innovation; Co-creation of value



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