Meaning of Marketing

• To the general public, marketing is selling products. However, selling is only a part
of marketing. Marketing satisfies customer needs.
• Marketing is a social process. Its activities are designed to meet the needs
and expectations of the society. As the human society changes, meaning of
marketing in that society also changes.​
• In1990, Philip Kotler defined marketing as “marketing is a social
and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and values
with other.”​
• ( It views marketing as a social process-activities under taken by human being for
the benefit of other human beings)​
• Kotler updates his definition of marketing in 2014 as “the science and art of
exploring, creating and delivering value to satisfy the needs of a target market at
a profit.”​
• (Focus of marketing is on identifying unfulfilled needs & desires and satisfy them
at profit.)
 Meaning of Marketing cont…
All the activities performed to satisfy the need and want of
customers come under marketing.
Marketing starts before the production and continues even after the
sale of goods.
“Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit.”
-Philip Kotler (2014)
Keeping in view the above definition, we can define marketing as
“exploring, creating and delivering value and satisfaction to the
target market with appropriate design and implementation of
marketing mix.”
 Evolution of Marketing Philosophies-i
Several marketing concepts have evolved over the years.
 The production concept(1950-1960): The production concept believes that customers
prefer the products that are widely available and low in cost. Therefore, all business efforts
should be directed at raising output levels, produce standardized product and sell at a lower
price. Managers should concentrate on achieving higher production efficiency that can be
achieved through mass production, improved technology, standardization and wide
distribution coverage(mass selling).
 The product concept(1950-1960): The product concept believes that consumers prefer
products that offer good quality, higher performance, and innovative features. It is believed
that very little effort is required to sell the good quality products that are reasonably priced.
Organizations following this concept concentrate on designing long-lasting products and
provide warranty for longer periods. This concept disregards customer needs and preferences.
 Evolution of Marketing Philosophies-ii
 The selling concept(1960-1970): The selling concept believes that people ordinarily will
not buy the organization’s product unless they are persuaded to buy. The philosophy is” we sell
what we make ”. Aggressive selling and promotion methods should be used to sell more goods
and services . Therefore, the manager focuses on stimulating sales through promotional tools.
This concept is dominant in Nepalese organizations.

 The marketing concept(1970-2004): The marketing concept focuses on customer needs. It

believes that the key to achieving organizational objectives lies in being more effective than
competitors in integrating marketing activities toward determining and satisfying the needs
and wants of the target markets. The main task of the organization is to know the needs,
wants, and value of the target market and then deliver products that satisfy those needs and
wants more effectively than competitors.
 Evolution of Marketing Philosophies-iv
 The marketing concept is based in the four fundamental principles:
i. Target market: The principle emphasizes that no organization can operate within one
broad market and satisfy every need of the customers. Therefore, the tools of market
segmentation and targeting has to be used for identifying and defining market. Target
market is the group of people firm wants to serve.
ii. Customer orientation: This principle calls for an organization to focus on determining and
satisfying customer needs. Ensure that all organizational activities are customer-oriented.
iii. Integrated marketing: This principle calls for a full coordination and integration of the
various marketing activities (under the marketing department) performed within the
organization.
iv. Profitability ( objectives achievement): The principle of profitability calls for an analysis of
every business opportunity from the view point of profitability and survival of the
organization.
 Evolution of Marketing Philosophies-iii

 The societal marketing concept(1980-2004): Marketing survives and grows in the society. It
must be socially responsible and accountable to society for the action . Therefore, the
concept seeks to achieve a balance between the interests of consumers, company and
society. This concept believes that the organization should deliver the superior value
product to the market that maintains or improves the consumers’ and society’s well being.

 The holistic marketing concept (2004 onward):Holistic marketing is the marketing strategy
that is developed by thinking about business as a whole, its place in the broader economy
and society and in the lives of its customers. According to Philip Kotler” the holistic
marketing concept is based on the development, design and implementation of marketing
programs, processes and activities that recognizes their breadth and interdependencies.|”
It takes into account the entire organization in addition to its counterparts when
determining or executing its overall marketing strategy.
 Evolution of Marketing Philosophies-v
 The holistic marketing concept is based in the four fundamental principles:
i. Relationship Marketing: Relationship marketing shifts attention from short-term
transaction and immediate profits toward a process of creating customer value through
building long-term relationships with customers. Relationship marketing is used to
develop lifelong relations with customers.
ii. Integrated marketing: This principle calls for a full coordination and integration of the
various marketing activities (under the marketing department) performed within the
organization. Integrated marketing is used to meet customer needs.
iii. Internal Marketing: Internal marketing is used to make all members of the organization
customer oriented. It mainly involves hiring, training, and motivating staff to serve the
customers well.
iv. Social Responsibility: Social responsibility marketing calls marketing to balance the
interests of organization, customers, and the larger society in performing its activities.
 Marketing Management
Marketing management is the process of decision making, planning and
controlling the marketing aspects of a company.
It is the art and science of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating superior
customer value.
Marketing management is getting the marketing job done through people by
planning, implementing and controlling the marketing efforts to achieve
marketing objectives efficiently and effectively.
Marketing management coordinates physical, human, financial and
information resources available to marketing
It creates environment in which marketing people can best perform their jobs.
The broad functions of marketing management are generally centered on
three major activities:
-Understanding Demand, -Stimulating Demand, -Servicing Demand
 Task of Marketing Management
1. Assessing Market Opportunities and Customer Value
2. Developing Marketing Strategies and Plans
3. Choosing Value
4. Designing Value
5. Communicating Value
6. Delivering Value
7. Sustaining Growth and Value
 Emerging Concepts in Marketing
Relationship Marketing:
 Relationship marketing is a long term partnership between marketer and
customer.
 It is building long term mutually satisfying relations with customers in order to
earn and retain their long term loyalty.
 Relation ship marketing is directed at building a large group of satisfied and loyal
customers.
 It aims at building mutually satisfying long-term relations with key parties-
customers, suppliers, distributors- in order to earn and retain business.
 It does not focus on immediate sales.
Relevance of Relationship Marketing
a. Long-term Relation:
b. Customer satisfaction:
c. Loyal customers:
d. Development of new partnership:
e. Identification of strength and weakness:
Relationship Building Process
Parners

Advocates

Members

Clients

Repeat Customers

First time Users

Prospects

Suspects
 Green Marketing:
Green marketing is the outcome of green movement and social
responsibility of business, that developed the awareness about the
environmental pollution in the people. In the present day context,
environmental pollution is no longer the problem of single country. It
is worldwide problem. Firms, as a socially responsible entity, should
consider environmental consequences of marketing activities.
 According to American Marketing Association “ Green marketing is
the marketing of products that are presumed to be environmentally
safe.”
 It is environment-friendly marketing and promotes environmental
protection through marketing efforts.
 It calls marketing activities not to contribute to global warming.
 Tools for Green Marketing

Environment
Legal
friendly
Framework
Technology

Green
Marketing
Tools

Think Biodegradable
Green Materials
 Rural Marketing PU

 The rural marketing refers to the activities undertaken by the marketers to

encourage the people, living in rural areas to convert their purchasing power into an
effective demand for the goods and services and making these available in the rural
areas, with the intention to improve their standard of living and achieving the
company’s objective, as a whole.
 Rural marketing is a process of developing, pricing, promoting, and distributing rural
specific goods and services leading to desired exchange with rural customers to
satisfy their needs and wants and also to achieve organizational objectives.
Rural marketing is a two-way process, i.e.,
i. Urban to rural: selling of manufactured consumer goods(both durable and non-
durable) in the rural regions.
ii. Rural to urban: Selling of agricultural products in the urban areas
• Marketing mix for rural marketing has changed from ‘4Ps’ to the ‘4As’ i.e.,
affordability, awareness, availability and acceptability.
Relevance/importance of rural marketing:
Rural marketing turns beneficial to business units, people residing in rural areas,
people residing in urban areas, and to entire nation.
a. Reduced burden on urban population: It contribute to rural infrastructure
and prosperity. People can also live comfortably in villages due to availability
of all goods and services in villages, even comparatively at low price.
Population pressure on urban can be reduced.
b. Rapid economic growth: There exists more attractive business opportunities
in rural than urban. Rural marketing improves agricultural sector and
improved agricultural sector can boost whole economy of the country.
c. Employment generation: Rural marketing leads to increased business
operations that can generate more employment opportunities to rural and
urban people.
d. Improved living standard: It contributes to overall prosperity of rural areas
which directly improve living standard of people living in rural area.
e. Balanced industrial growth: Rural marketing help to bridge the gap between
rural and urban development.
 Pyramid (C2C) Marketing PU

 Consumer to Consumer marketing, also known as net work marketing or pyramid

marketing, is the creation of a product or service with the specific promotional
strategy being for consumers to share that product or service with others as brand
advocates based on the value of the product.
 Marketing firms involved in networks marketing sell their products not through a
conventional distribution system and retail outlets but through individual people
selling to their friends.
 In network marketing, independent agents serve as distributors of goods and
services. They are encouraged to build and manage their sales force by recruiting
and training other independent agent.
Importance of Network Marketing
i. Personal freedom
ii. Increased income
iii. Increased sales skill
iv. Selection of member freedom
 e-marketing:
 e-marketing is direct marketing based on electronic communication. It has
linked sellers and buyers electronically. It is establishing exchange
relationships electronically through e-mail, Internet, and electronic
platforms to satisfy individual needs of customers. It is paperless marketing
communication. E-marketing focuses on on-line communications and direct
dialogue with customers.
 e-marketing is conducted through on-line computers. Internet serves as the
communication channel. Internet is a global web of computer networks.
 It refers to the application of marketing principles and techniques via
electronic media, more specifically the Internet. It uses information
technology in the process of creating, communicating, and delivering value to
customers.
 It facilitates direct contact between customers and producer through
electronic media and promotes relationship marketing.
 Marketing Challenges of the 21st Century
 Marketing firms face the following major challenges from the consumers/market of
the 21st century:
a. Intense competition: Due to globalization companies have to compete with
domestic as well as foreign companies.
b. Increase in customer demand: It is very challenging to marketing firms to satisfy
increasing demand of consumers now with variety of goods and services.
c. Changing habit of consumers: Customers of 21st century demand variety of
services. Therefore, the firm has to offer variety of services to be competitive. They
do intelligent shopping, they see all brand as similar.
d. Price sensitivity: Consumers have become more price sensitive. Marketing firms
have lost the pricing freedom.
e. Increasing promotion costs: Promotional cost, including advertising, have
increased very rapidly in the last decade. This has lowered profit margin.
f. Direct marketing: Different forms of direct marketing have emerged in the global
market. This has posed serious challenge to marketing firms in 21st century..
 Firms’ Response to Cope With Challenges of the 21st Century
 Marketing firms are taking appropriate strategies and actions to respond to the
emerging challenges of this century.
a. Customer relationship marketing: It emphasizes in building ling-term relationship
with the customers. Firms should focus in making customer brand loyal.
b. Target marketing: The concept of selling to everyone has changed to selling to well
defined target market. Marketing firms define their market segment more
accurately and specifically and operate within the boundary of he defined segment.
c. Customer databases: Firms should access, collect, store and use personal data
about customers. This gives immense power to marketers to understand their
customers more accurately.
d. Integrated communication: Marketers should blend several communication tools
to project a brand image and personality on their offers.
e. Customization: Marketers, today, should try to individualize and customize offers
and messages to customers.
f. Strategic alliances: Go into alliances with other companies to enter into strategic
products and markets.
 Marketing mix and its components
 The marketing mix refers to the set of marketing tools, tactics, and actions that
an organization blends to achieve its marketing goals in a defined target
market.
 It consists of everything the organization can do to influence the demand for
its product in the target market.
 It the blend/mixture of all marketing decisions and activities made to achieve
the organizational goal.
 E. Jeromy McCarthy classified all such decisions and activities into four
groups, each starting with P; Product, Price, Promotion, and Place and
popularized the concept of 4 Ps.
 Each P is perceived as having its own mix, such as the product mix, price mix,
place mix and promotion mix.
 The components/elements of marketing mix for products.

-Product Planning & -Setting price

Product Mix
development -Discount/Allowance

Price Mix
-Product line & mix -Commission
-Quality – varieties -Pricing objectives.
-design -branding -Competitors price
-Labeling –packaging -Terms/condition of
-Warranty-services sales

Marketing
Mix
Marketing Channels;
-wholesaler –Retailer -Advertising
Place Mix

Promotion
Physical distribution -Personal selling

Mix
-Order processing -Sales promotion
-Warehousing -Publicity &Public
-Material handling relation
-Inventory mgt.
-Transportation
4 Ps -Direct marketing
 The components/elements of marketing mix for services .

Process Mix
People Mix
-Product Planning & -Setting price

Env. Mix
Product Mix

Physical
development. -Discount/Allowance

Price Mix
-Product line & mix -Commission
-Quality - varieties -Pricing objectives.
-design -branding -Competitors price
-Labeling -packaging -Terms/condition of
-Warranty-services sales

Marketing
Mix
Marketing Channels;
-wholesaler -Retailer -Advertising
Place Mix

Promotion
Physical distribution -Personal selling

Mix
-Order processing -Sales promotion
-Warehousing
-Material handling
7 Ps -Publicity &Public
relation
-Inventory mgt. -Direct marketing
-Transportation