Business Function Marketing

1. Business
functions-
marketing

2. Marketing is the activity, set of
institutions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large.

3. “⊹ Marketing is the process
by which companies
create value for
customers and build
strong customer
relationships in order to
capture value from
customers in return.
- Kotler and Armstrong
3

4. Simple Model of Marketing Process
4
Marketers need to understand customer needs and wants and the marketplace in
which they operate. The five core customer and marketplace concepts: (1) needs,
wants, and demands; (2) market offerings (products, services, and experiences); (3)
value and satisfaction; (4) exchanges and relationships; and (5) markets.

6. 6
MARKETING MANAGEMENT PHILOSOPHIES
 The role that marketing plays within a company
varies according to the overall strategy and
philosophy of each firm.
 There are five alternative concepts under which
organizations conduct their marketing activities:
 Production concept
 Product concept
 Selling concept
 Marketing concept
 Societal marketing concepts

7. 7
Production Concept
The philosophy that consumers will
favour products that are available and
highly affordable and that management
should therefore focus on improving
production and distribution efficiency.

8. 8
Product Concept
The philosophy that consumers will
favour products that offer the most
quality, performance, and innovative
features.

9. 9
Selling Concept
The idea that consumers will not buy
enough of the organization’s products
unless the organization undertakes a
large – scale selling and promotion
effort.

10. 10
Marketing Concept
The marketing management philosophy
that holds that achieving organizational
goals depends on determining the
needs and wants of target markets and
delivering the desired satisfactions more
effectively and efficiently than
competitors do.

11. 11
Societal Marketing Concept
The idea that the organization should
determine the needs, wants, and
interests of target markets and deliver
the desired satisfactions more
effectively and efficiently than
competitors in a way that maintains or
improves the consumer’s and society’s
well – being.

12. Features of Marketing
1. Customer focus:
The marketing function of a business is customer-centred. It makes
an attempt to study the customer needs, and goods are produced
accordingly. The business existence depends on human needs. In a
competitive market, the goods that are best suited to the customer
are the ones that are well-accepted. Hence, every activity of a
business is customer-oriented.
2. Customer satisfaction:
A customer expects some services or benefits from the product for
which payment is made. If this benefit is more than the amount
paid, then the customer is satisfied. In the long run, customer
satisfaction helps to retain market demand. It helps achieve
organizational objectives. Customer satisfaction can be enhanced
by providing value-added services, which includes providing
additional facilities at little or no extra cost.

13. 3. Objective-oriented:
All marketing activities are objective-oriented. Different objectives are fixed at
different levels, but the main objective is to earn profit from business along with
the satisfaction of human wants. Marketing activities undertaken by sellers make
an attempt to find out the weaknesses in the existing system, and measures are
taken to improve the shortfalls so that the objectives are achieved.
4. Marketing is both art and science:
Art refers to a specific skill that is required in marketing activities of any type of
business. Science refers to a systematic body of knowledge, based on facts and
principles. The concept of marketing includes a bunch of social sciences such as
economics, sociology, psychology and law. It indicates market operations based
on some principles. Hence, marketing is an art as well as a science.
5. Continuous and regular activity:
Marketing is an activity designed to plan, price, promote and distribute products.
At the same time, it also addresses both the current and future consumers. Thus,
it is a continuous process. A marketer has to consistently monitor environment.
This helps in coming up with new products.

14. 6. Exchange process:
Marketing involves exchange of goods, services and ideas with the medium of
money. Exchange takes place between sellers and buyers. Most of marketing
activities are concerned with the exchange of goods. Functions such as
distribution, after-sale services and packaging help in the exchange process.
Channels of distribution and physical distribution play an important role in the
exchange process by creating place utility.
7. Marketing environment:
Economic policies, market conditions, and environmental factors, such as
political, technological, demographic and international, influence marketing
activities. Marketing activities are inseparable from such environmental factors. A
successful marketer needs to adapt to these changing factors and adjust marketing
strategies to suit new market developments.
8. Marketing mix:
A combination of four inputs constitutes the core of a company’s marketing
system—product, price, place, and promotion. Marketing mix is a flexible
combination of variables. They are influenced by consumer behaviour, trade
factors, competition and government regulatory measures.

15. 9. Integrated approach:
The marketing activities must be co-ordinated with other functional areas of an
organization. Functions such as production, finance, research, purchasing,
storekeeping and public relations (PR) are to be integrated with marketing. This
will help in achieving organizational objectives. Otherwise, it will result in
organizational conflicts.
10. Commercial and non-commercial organizations:
With the societal marketing concept gaining importance, social marketers are
finding useful new ways of applying marketing principles. Commercial
organizations are also adopting cause-related marketing to strike long-term
relations with consumers.
Business organizations such as educational institutions, hospitals, religious institu-
tions and charitable trusts have also found meaningful applications of marketing.
Thus, marketing is applicable to both business and non-business organizations.
11. Precedes and follows production:
Identifying consumer needs and wants is the primary task of a marketing manager.
Production activities are adapted to these consumer needs. Thus, marketing
precedes production. Marketing helps in the distribution of the goods which
follows production. Hence, production and marketing activities are closely related
to each other.

16. Benefits of Marketing
1. Marketing Widens the Market:
Marketing draws out the hidden wants of consumers, creates new demand,
locates the untapped areas and finds out the possibilities of selling new
products. It thus enlarges the market and enables the producers to
increase production and earn more profits
2. Marketing Facilitates Exchanges in the Ownership and
Possession of Goods and Services:
It creates time, place and possession utilities for the goods and services. It
is helpful to both producers and consumers. Producers come to know
about the specific needs and preferences of the people and the customers
about the products that manufacturers can offer.
3. Marketing Helps in Optimal Utilization of Resources:
As the marketing efforts widen the area of market, the producers can
utilize their resources, otherwise remaining partly utilized, to the
maximum. This optimum use of resources reduces the total cost per unit.

17. 4. Marketing Accelerates Other Activities:
Because of marketing so many other activities such as banking, transport,
insurance, warehousing, etc. get a boost as they are needed more to help in the
marketing process.
5. Marketing Increases the National Income:
National income is the sum total of goods and services that a nation possesses. The
net effect of all marketing efforts is a rise in production of existing industries,
investment in new industrial units and provision of more services. The nation
becomes richer with the increase in its national income and there is a rise in per
capita income. The economy rises from underdeveloped stage to developing stage
and then marches towards a developed economy.

18. 6. Marketing Raises the Standard of Living:
With the provision of more items of necessities, comforts and luxuries, cheaper as
well as costly and with more services and amenities as its disposal, the community
enjoys a higher standard of living. Even the poorer sections of society find many
more things within their reach because of lowering of costs of commodities and
services. Paul Mazur says “marketing is the delivery of a standard of living to
society”. Prof. Malcom Me Nair added further that “marketing is the creation and
delivery of standard of living to society.”
7. Marketing Provides Gainful Employment Opportunities:
Marketing creates a climate for more production and services. It also results in
more social overhead as more roads, more warehousing facilities, more transport
and communication, more banks, more training and technical institutions, more
manpower is needed for the same and the avenues of employment increase.
Moreover, marketing is a complex mechanism involving a number of functions and
sub-functions which call for different specialized personnel for employment. It is
estimated that 30 to 40 per cent of total population is engaged in direct or indirect
marketing activities.

19. 8. Marketing Stabilizes the Economic Conditions:
Marketing not only sets the economy revolving but also provides steady and stable
economic conditions where all are happy. It bridges the gap between producer and
consumers. It is a connecting belt between the two wheels of the economy of a
nation, i.e., the production and the consumption. Marketing by balancing
production with consumption, provides stable prices, full employment and a strong
economy.
9. Marketing Acts as a Basis for Making Decisions:
An entrepreneur is confronted with many problems as to what, how, when, how
much and for whom to produce? In the past, there were lesser problems on account
of local markets and direct link between the producers and the consumers. But in
modern times, marketing has become very complex and tedious. It has emerged as
a new specialized activity along with production. As a result, producers are largely
dependent upon marketing mechanism to decide which, how when and how much
to produce.
10. Marketing Provides Maximum Satisfaction of Human Wants:
It serves as an effective link between the business and the society, removes
hindrances of knowledge, educates people, cultivates their minds, lures them to
buy the best and thus enables ultimately to get maximum satisfaction.

21. INTRODUCTION
The marketing mix is one of the most famous
marketing terms. The marketing mix is the tactical or
operational part of a marketing plan. The marketing
mix is also called the 4Ps and the 7Ps. The 4Ps are
price, place, product and promotion. The services
marketing mix is also called the 7Ps and includes the
addition of process, people and physical evidence.

22. Describe by the diagram
“The marketing
mix is . . . The set
of controllable
tactical marketing
tools – product,
price, place, and
promotion – that
the firm blends to
produce the
response it wants
in the target
market”.

23. MARKETING MIX
The combination of marketing
components that will maximize
customer satisfaction and ensure
PROFITS

24. HISTORY
•Theterm marketing mix wascoined in anarticle
written by Neil Borden called “TheConcept of the
Marketing Mix.”
•Themarketer, E. JeromeMcCarthy, proposeda
four Ps clas ification in1960
•Robert F. Lauterbornproposedafour Cs
clas ification in 1993

25. MARKETING MIX
- Four P’s- By E. Jerome McCarthy

26. 4 P’s & 4 C’s
•Product- Customer /Consumer
•Price- Customer cost
•Place- Convenience
•Promotion- Communication

28. 4 Ps-model is most useful for:
-low value consuming product
• 7 Ps-model (extended Marketing Mix):
It’s the 4 Ps parameters plus
People Process
Physical Evidence

29. PRODUCT
It is the complete bundle of benefits or satisfactions that
buyers perceive they will obtain if they purchase the
product. It is the sum of all physical, psychological,
symbolic, and service attributes.
It is much more than just a physical object.

30. An item
Find out what customers need
Satisfy the needs of people
Intangible or tangible as it can
be in
the form of services or goods.

31. PRICE
A product is only worth what
customers are prepared to pay for it.
The price also needs to be
competitive, but this does not
necessarily mean the cheapest; the
small business may be able to
compete with larger rivals by adding
extra services or details that will offer
customers better value for money.
Your
pricing must also provide a profit. It is
the only element of the marketing
mix
that generates revenue — everything
else represents a cost.
Price is the
amount the
consumer
must
exchange to
receive the
offering .

32. How much did it cost you to produce the
product?
What is the customers’ perceived product
value?
Do you think that the slight price decrease
could significantly increase your market share?
Can the current price of the product keep up
with the price of the product’s competitors?

33. PLACE The place where customers buy
a product, and the means of
distributing
your product to that place, must
be
appropriate and convenient for the
customer. The product must be
available in the right place, at the
right
time and in the right quantity,
while
keeping storage, inventory and
distribution costs to an acceptable
level.
Place includes
company
activities that
make the
product
available to
target
consumers.

34. PLACE
(DISTRIBUTION – MARKET CHANNELS)
All of the activities utilized to move a product from
production to consumption.
Direct Channel:
Customer
Indirect Channel:
Wholesaler
Retailer
Distributor

35. Place
Manufacturer
Consumer
Manufacturer
Retailer
Consumer
Direct Distribution Indirect Distribution
•The task of Place is deliver the Product to the
customer at the right Price
• There are many options of channel design
•Channel design should take into account Cost and
Convenience for the customer
Manufacturer
Franchisee
Consumer

36. Distribution channel
Convenient
Easy access
Viewable

37. PROMOTION Promotion is the way a
company communicates what it
does
and what it can offer customers. It
includes activities such as branding,
advertising, PR, corporate identity,
sales management, special offers
and
exhibitions. Promotion must gain
attention, be appealing, tell a
consistent message and above all
else give the customer a reason to
choose your product rather than
someone else’s.
Promotion
includes all of the
activities
marketers
undertake to
inform consumers
about their
products and to
encourage
potential
customers to buy
these products.

38. Communication
Advertising, Sales promotion ,Direct
selling……
Boost brand recognition and sales
Reach your potential audience and
buyers
Differentiation becomes
a key goal

39. PROMOTION…….
Promotion
Advertisement Hoardings
Personal
selling
Media Publicity Internet

40. The execution of the service
well-tailored process in place to
minimize costs
provide a unique experience
Define a process clearly for the
service provider

41. PROCESS….
Eg:-
Process - The food manufacturing
process at McDonalds is
completely transparent (the whole
process is visible to the customers).

42. People Include...
Others like:
Technicians
Dealers
Other Employees (BPO Employees)
Higher
managers
Middle managers
Lower managers

43. Presence and establishment
The location of the service delivery
The level of comfort and
attractiveness of a service
PHYSICAL EVIDENCE

44. PHYSICAL EVIDENCE
Eg:-
Physical Evidence - McDonalds focuses on
clean and hygienic interiors of is outlets and at
the same time the interiors are attractive and the
fast food joint maintains a proper etiquette at its
joints.

45. People define a service
The company’s employees
Right person at the right place
Customer satisfaction
P E O P L E

46. PEOPLE
Eg:-
People - The employees in McDonalds
have a standard uniform and
McDonalds specially focuses on
friendly and prompt service to its
customers from their employees.

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