B.Com Sem-V
Paper: CC-11
Principles of Marketing
Chapter –I: Introduction
Market
A market is a composition of systems, institutions, procedures, social relations or
infrastructures whereby parties engage in exchange. While parties may exchange goods
and services by barter, most markets rely on sellers offering their goods or services to
buyers in exchange for money
A market is a place where parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be physical
like a retail outlet, where people meet face-to-face, or virtual like an online market, where
there is no direct physical contact between buyers and sellers.
Key points
• A market is a place where buyers and sellers can meet to facilitate the exchange or
transaction of goods and services.
• Markets can be physical like a retail outlet, or virtual like an e-retailer.
• Other examples include the illegal markets, auction markets, and financial markets.
• Markets establish the prices of goods and services that are determined by supply and
demand.
Marketing
Marketing refers to activities a company undertakes to promote the buying or selling of a
product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a
company.
Professionals who work in a corporation's marketing and promotion departments seek to
get the attention of key potential audiences through advertising. Promotions are targeted
to certain audiences and may involve celebrity endorsements, catchy phrases or slogans,
memorable packaging or graphic designs and overall media exposure.
1|Page
,Understanding Marketing
Marketing as a discipline involves all the actions a company undertakes to draw in
customers and maintain relationships with them. Networking with potential or past clients
is part of the work too, and may include writing thank you emails, playing golf with
prospective clients, returning calls and emails quickly, and meeting with clients for coffee
or a meal.
At its most basic level, marketing seeks to match a company's products and services to
customers who want access to those products. Matching products to customers ultimately
ensures profitability.
Product, price, place, and promotion are the Four Ps of marketing. The Four Ps collectively
makes up the essential mix a company needs to market a product or service. Neil Borden
popularized the idea of the marketing mix and the concept of the Four Ps in the 1950s.
Key points
• Marketing refers to all activities a company does to promote and sell products or
services to consumers.
• Marketing makes use of the "marketing mix," also known as the four Ps—product, price,
place, and promotion.
• At its core, marketing seeks to take a product or service, identify its ideal customers,
and draw the customers' attention to the product or service available.
Scopes of Marketing
Marketing being a part of social science is highly dynamic and complex in nature. The rapid
changes in various sectors have brought great changes in the concept of marketing.
Traditionally, marketing was concerned with buying and selling of goods and services only
but now its scope has widened and it encompasses a range of activities from consumer
satisfaction to consumer delight and management of customer relationship.
1. Study of Consumer wants and need
Goods are purchase to satisfy consumer wants. Therefore study is conducted to satisfy
consumer needs and wants. These needs and wants motivates customer to purchase.
2. Study of consumer behavior
A marketer performs study of consumer behavior. Analysis of buyer behavior helps
marketers in market segmentation and targeting.
2|Page
,3. Product Planning
A product refers to a bundle of benefits that offers satisfaction to the consumers.
Product planning starts with the generation of the idea and continues until the product is
ready to be launched in the market. To create a successful product the company must
understand the needs of the consumer and the currently available competition in the
market.
4. Product design
Product design is the fore most important elements in marketing the communication needs
& problems of the consumer have to be considered before marketing a new product design.
5. Implementation of product
Once the decision is finalized about the design of the product more focus should be there
on communication with the production department regarding the implementation of
product features.
6. Pricing of Product
Pricing is the most important aspect of the product because it only decides the major
buying decision of the consumer. So if the product is very new to the market correct &
affordable pricing should be done.
7. Selection of Layout
The layout is the place where actually the product /services will be availed so more focus
should be done on the exact location and layout.
8. Publicity of the product
Publicity means communication about the product and services for creating awareness &
demand for the product by publicity & Advertisement.
9. Distribution channel
Distribution channel means the number of media t or like whole-sellers, Retailers,
distributors, Agent who all are involved in the marketing channel.
10. Selling of Product
Selling involves the actual challenge of marketing. The selling of products and services
involves different strategies like distribution through stores, salesmen, Advertisements,
Exhibitions, trade fairs, etc.
11. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer satisfaction is the main
objective of marketing.
3|Page
, 12. Collecting the Feedback
This begins after the product is marketed and sold collecting feedback
regarding satisfaction or dissatisfaction related features like price, to make availability etc
it is to make changes in the marketing mix.
Importance of Marketing
1. Marketing informs
To attract consumers in a crowded marketplace, your target audience needs to know why
they should choose your business over someone else’s. This is where marketing comes in to
educate current and potential customers about your business and how it serves a need they
have.
The content on your website that communicates your business’s mission, product
demonstration videos you post, photos you display that show exactly what your products
look like — elements like these let prospective customers know who you are and what
makes you unique.
2. Marketing engages
It’s one thing to offer a superior in-person experience or an easy online shopping journey.
But marketing keeps your business in people’s minds after a transaction is over — and
before they need you again.
To turn first-time customers into lifelong fans who will sustain your business, you have to
establish and build relationships with the people who’ve interacted with your business.
Sending post-purchase follow-up emails, replying to customers on Twitter and Facebook,
and mailing out postcards with special offers or information on new services are just a few
of the ways that marketing can help you stay in touch with your target audience.
3. Marketing builds reputations
As a business owner or aspiring entrepreneur, you likely already understand how
important your reputation is to your success. It truly can be the deciding factor in whether
or not a consumer chooses to reach out to you or one of your competitors. Because
marketing spreads the word about your business, it’s a major factor in the reputation your
business takes on. Strong, professional marketing indicates that you’re a reputable
business. The connection is undeniable.
Whether it’s a well-designed email campaign, high-quality images in all of your marketing
materials, or engaging website copy that reflects your unique brand voice, marketing can
help you establish credibility, build trust and engender goodwill toward your company.
4|Page
Paper: CC-11
Principles of Marketing
Chapter –I: Introduction
Market
A market is a composition of systems, institutions, procedures, social relations or
infrastructures whereby parties engage in exchange. While parties may exchange goods
and services by barter, most markets rely on sellers offering their goods or services to
buyers in exchange for money
A market is a place where parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be physical
like a retail outlet, where people meet face-to-face, or virtual like an online market, where
there is no direct physical contact between buyers and sellers.
Key points
• A market is a place where buyers and sellers can meet to facilitate the exchange or
transaction of goods and services.
• Markets can be physical like a retail outlet, or virtual like an e-retailer.
• Other examples include the illegal markets, auction markets, and financial markets.
• Markets establish the prices of goods and services that are determined by supply and
demand.
Marketing
Marketing refers to activities a company undertakes to promote the buying or selling of a
product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a
company.
Professionals who work in a corporation's marketing and promotion departments seek to
get the attention of key potential audiences through advertising. Promotions are targeted
to certain audiences and may involve celebrity endorsements, catchy phrases or slogans,
memorable packaging or graphic designs and overall media exposure.
1|Page
,Understanding Marketing
Marketing as a discipline involves all the actions a company undertakes to draw in
customers and maintain relationships with them. Networking with potential or past clients
is part of the work too, and may include writing thank you emails, playing golf with
prospective clients, returning calls and emails quickly, and meeting with clients for coffee
or a meal.
At its most basic level, marketing seeks to match a company's products and services to
customers who want access to those products. Matching products to customers ultimately
ensures profitability.
Product, price, place, and promotion are the Four Ps of marketing. The Four Ps collectively
makes up the essential mix a company needs to market a product or service. Neil Borden
popularized the idea of the marketing mix and the concept of the Four Ps in the 1950s.
Key points
• Marketing refers to all activities a company does to promote and sell products or
services to consumers.
• Marketing makes use of the "marketing mix," also known as the four Ps—product, price,
place, and promotion.
• At its core, marketing seeks to take a product or service, identify its ideal customers,
and draw the customers' attention to the product or service available.
Scopes of Marketing
Marketing being a part of social science is highly dynamic and complex in nature. The rapid
changes in various sectors have brought great changes in the concept of marketing.
Traditionally, marketing was concerned with buying and selling of goods and services only
but now its scope has widened and it encompasses a range of activities from consumer
satisfaction to consumer delight and management of customer relationship.
1. Study of Consumer wants and need
Goods are purchase to satisfy consumer wants. Therefore study is conducted to satisfy
consumer needs and wants. These needs and wants motivates customer to purchase.
2. Study of consumer behavior
A marketer performs study of consumer behavior. Analysis of buyer behavior helps
marketers in market segmentation and targeting.
2|Page
,3. Product Planning
A product refers to a bundle of benefits that offers satisfaction to the consumers.
Product planning starts with the generation of the idea and continues until the product is
ready to be launched in the market. To create a successful product the company must
understand the needs of the consumer and the currently available competition in the
market.
4. Product design
Product design is the fore most important elements in marketing the communication needs
& problems of the consumer have to be considered before marketing a new product design.
5. Implementation of product
Once the decision is finalized about the design of the product more focus should be there
on communication with the production department regarding the implementation of
product features.
6. Pricing of Product
Pricing is the most important aspect of the product because it only decides the major
buying decision of the consumer. So if the product is very new to the market correct &
affordable pricing should be done.
7. Selection of Layout
The layout is the place where actually the product /services will be availed so more focus
should be done on the exact location and layout.
8. Publicity of the product
Publicity means communication about the product and services for creating awareness &
demand for the product by publicity & Advertisement.
9. Distribution channel
Distribution channel means the number of media t or like whole-sellers, Retailers,
distributors, Agent who all are involved in the marketing channel.
10. Selling of Product
Selling involves the actual challenge of marketing. The selling of products and services
involves different strategies like distribution through stores, salesmen, Advertisements,
Exhibitions, trade fairs, etc.
11. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer satisfaction is the main
objective of marketing.
3|Page
, 12. Collecting the Feedback
This begins after the product is marketed and sold collecting feedback
regarding satisfaction or dissatisfaction related features like price, to make availability etc
it is to make changes in the marketing mix.
Importance of Marketing
1. Marketing informs
To attract consumers in a crowded marketplace, your target audience needs to know why
they should choose your business over someone else’s. This is where marketing comes in to
educate current and potential customers about your business and how it serves a need they
have.
The content on your website that communicates your business’s mission, product
demonstration videos you post, photos you display that show exactly what your products
look like — elements like these let prospective customers know who you are and what
makes you unique.
2. Marketing engages
It’s one thing to offer a superior in-person experience or an easy online shopping journey.
But marketing keeps your business in people’s minds after a transaction is over — and
before they need you again.
To turn first-time customers into lifelong fans who will sustain your business, you have to
establish and build relationships with the people who’ve interacted with your business.
Sending post-purchase follow-up emails, replying to customers on Twitter and Facebook,
and mailing out postcards with special offers or information on new services are just a few
of the ways that marketing can help you stay in touch with your target audience.
3. Marketing builds reputations
As a business owner or aspiring entrepreneur, you likely already understand how
important your reputation is to your success. It truly can be the deciding factor in whether
or not a consumer chooses to reach out to you or one of your competitors. Because
marketing spreads the word about your business, it’s a major factor in the reputation your
business takes on. Strong, professional marketing indicates that you’re a reputable
business. The connection is undeniable.
Whether it’s a well-designed email campaign, high-quality images in all of your marketing
materials, or engaging website copy that reflects your unique brand voice, marketing can
help you establish credibility, build trust and engender goodwill toward your company.
4|Page
