Fundamentals of Marketing
Introduction: Marketing is the process of finding out customers needs and serving those needs
profitably. Profit is the legitimate goal of any business organization but single mnded focus on
profits will not survive the organization. The essence of marketing is to provide desired value to
customers. A repurchase has to be generated to make a company or a business successful.
Marketed Oriented Companies( Companies which invest in Marketing) build relationships by
providing satisfaction and attract new customers. Customers are the most powerful stakeholders.
Marketing Concept and Orientation:
Marketing Concept:The Marketing oriented companies involve marketing concept and follow
that wisely. They understand the customer needs and wants better the the other competition.
Customer Satisfaction is the prime goal of management.
Every employee is a marketer: Every employee of the organization or the company is a
marketer whether internal stakeholder ( employee, shareholder) or external stake
Internal Communication: Increase formaland informal level of communication internally helps
boosting and motivating there should be a 50-50 mix for a formal and informal communication
Marketing concept versus Production Concept: Companies that involve and invest in
marketing activities and then think later about the profits are likely the marketing concept which
is in contradiction with the companies which barely sell through aggressive sales effort and reach
to the end customers.
The diagram is:
Selling Concept: There is a contradiction between marketing and selling. Marketing is a deep
study of customers and the market and then designing the product or service to meet those needs
with a profit. But, Selling is a wasteful forced activity to force the customers to buy goods by just
merely by an aggressive sales effort.
Product Concept: Some companies only concentrate constantly on product improvement
without Product Concept thinking that will improve the entire business or the other needs and
wants of customers are not looked into only the product this procedure is called as Marketing
Myopia. It is a dangerous activity as it does not involve exploring more effective ways of serving
Limitations ofMarketing Concept:
Marketing as an Ideology: This explains even if we invest all the funds into marketing the
Economies of Scale exist which limit the profits earned hence it is limited.
Marketing and Society: It tells about societal need, limitations, beliefs and wants and fulfilling
those needs and wants as per the societal orientation.
Marketing as a constraint to Innovation: Innovation has a limited fulfillment as compared to
the desire and dreams of the customers today.
Marketing Orientation: It explains that the market driven or market oriented companies are the
companies which invest in the market and involve in maintaining good relationship and
establishing goodwill of the company. But, in contradiction to internally driven companies who
just think marketing as a lip service concept and do not understand real concerns of the customer.
Impact of marketer’s commitment:Every company is committed to promise the fulfillment of
needs and wants in some or the other way they excel in honoring, remaking commitments to
customers. It binds the businesses to the customers for the time of the delivery and fulfillment of
the need and experience.
Profile of Marketing Oriented Organization:
Shared Values and beliefs.
Skill understanding and responding Customers.
Involving Market Intelligence to understand customers.
Be informed about the customers.
Select target market and serve the customers better than competition.
Clear communication at all the levels and relevant organizational structure.
Marketing Orientation and Business Performance: It is a prime responsibility to identify,
understand the needs,sales and promotion efforts, of the customer
Segmentation:It is a process of clubbing together similar customers in a group, so that they can
be served by a marketing mix specially designed for that group or segment.
Target Market: It consists of many segments depending on the resources and capabilities of the
Positioning: Positioning is the process of creating a distinct offer and communicating it to the
customers. Positioning is created by designing the market mix for a particular target market but is
different from marketing mixes of other providers.
Marketing Mix: 4Ps ofMarketing
Characteristics ofeffective marketing mix:
It should match the customer needs.
It is a source of competitive advantage ( providing more than competition)
There should be around a consistent theme(attributes)
Provide high quality for low prices.
Criticism ofthe 4Ps
It oversimplifies the realities of the market
The bond between the buyer and seller is for a long term and is so strong that it is
difficult for out-suppliers to come and start a new product
4Ps should be 6Ps where people and processes can be incorporated in product part
Marketing in Modern Context:
The Service Concept: It accounts for taste durability, choice, price, experience why would the
customer want to own the product. It talks about trials, benefits, fewer prices, more applicable
ideas and more technology.
The Experience Concept: It relates to emotional, physical, intellectual level, spiritual level. It is
a after –affect of a successfulservice. It is like purchasing a memorabilia.
Strategic Planning : It relates to planning in various output levels like Finance, Human
Resources,Information Technology, Marketing
Situation: evaluate current situation
Target: Define Goals and Objectives
Path: Route to success.
Draw: Desired end state.
. See: Today’s situation?
Think: Specific actions needed.
Situational analysis: Analysis of the current internal and externalenvironment of the company
Mission statement and Vision Statement: Mission Statement is a one line statement underlining
goal and the objective of the company.
Vision statement is the more detailed futuristic outlook of the company and underlying strategies
in the time of failures and risk.
Features ofmission statement:
Bound to values, culture and time.
Strategies fail because:
Failure to define end states
Incapability, lack of creativity
Poor fit of internal and external environment.
Some limitations ofStrategic Planning: They are due to commitment (if commitment at the
top of the organization fails and failing the executive powers of the organization), control(misuse
of strategic planning), objectivity( It does not favor intuition), politics(It may be a cause of
Avoiding these limitations:
With the help of Opportunistic Planning