Teaching-learning notes on Principles of Marketing

1. Principles of
Marketing
Dr. Manishankar Chakraborty
Business Studies Department
Ibra College of Technology

2. Introducing Marketing
 Marketing video of Earth-wool Insulation-
 http://www.youtube.com/watch?v=BS1g09QEWVs
Marketing, Dr. Manishankar Chakraborty

3. Course overview
 Need for the course
 How it can assist you in your career
 How this course is related to other courses
 How this course is different from other courses
 Approach required to understand this course
 Mark oriented approach to knowledge centric approach
 How the practical activities in this course is different from others
 How the practical activities contribute towards learning
 Importance of continuous learning
 Handling wrong perceptions/myths about the subject
 Career Opportunities
Marketing, Dr. Manishankar Chakraborty

4. Assessments
 Objective type surprise quiz-I=5 Marks
 Library based handwritten activity within deadline(questions/situations/case-
lets/secondary literature review on assigned topics)= 5 Marks
 Midterm exam= 20 Marks
 Objective type surprise quiz-II=5 Marks
 Presentation on a topic within the deadline= 5 Marks
 Report submission on the topic of presentation within the deadline= 5 Marks
 Attendance= 3 Marks (Deduction of 1 Mark for 1st warning, 2 Marks for 2nd
warning and 3 Marks for 3rd warning)
 Class participation= 2 Marks (To be done on the basis of the complete semester
observation)
 Final Exam= 50 Marks
 TOTAL = 100 Marks
 Thumb rules to succeed
 Punctuality, Interaction with teacher and peers , Daily
scheduling, Daily Revision, Additional reading and writing.
Marketing, Dr. Manishankar Chakraborty

5. Background
 Visiting a Mall/Souq- Sharing experiences
 Buying a car- Sharing experiences
 Offers during Ramadan
 Word-of-Mouth
 Advertising in newspapers, magazines, TV
 Brand endorsement- Ali Al Habsi
Marketing, Dr. Manishankar Chakraborty

6. Outcome-1
Marketing Concepts
 Introduction
 Marketing is an important function of business.
 Marketer sells and earns profits.
 Mainly deals with customer relationship and satisfaction.
 Understanding needs and requirements of customer and satisfying them
by delivering quality products and services.
 Marketing is not only selling and advertising, however they are parts of
marketing.
 Marketing consists of product design, pricing, distribution, promotions
etc.
 Marketing is used to identify, satisfy and keeping the customers.
Marketing, Dr. Manishankar Chakraborty

7. Outcome-1
 Market –
 Derived from latin word “Marcatus” meaning merchandise, trade or a place where
business is done.
 It is a geographical area where materials are sold, but these days its possible over the
internet as well.
 Marketing-
 It is an act or process of purchasing and selling in the market.
OR
 It is the process or technique of promoting, selling and distributing products/services.
OR
 It consists of many functions involved in moving goods from producers to consumers.
 Need-
 It is something that is essential for living. E.g. Food, Clothing, Water and Clothing.
 Want- It is something you would like to have, but it is not essential for living. E.g.
Car, Laptop, GSM phones.
 Demand- It is something that you want to have. It is always backed by purchasing power.
Marketing, Dr. Manishankar Chakraborty

8. Outcome-1
 Nature of Marketing
 It deals with products, pricing, distribution and promotion.
 It tries to satisfy and delight the customers.
 It aims at creating relationship with the customers by delivering
offerings(products/services) of good quality.
 It deals with the identification of customers needs and requirements and
satisfying them by suitable products/services.
 Objectives of Marketing
 Basic objective is to satisfy customer needs and wants.
 Other objectives are as follows-
 (1) Increase in consumption- To increase the consumption or usage of goods and
services a company produces.
 (2) Creation of goodwill- It helps in building a good name (goodwill) by selling
quality goods at reasonable/affordable/right prices to the customer.
 (3) Profit through customer satisfaction- Profit by selling goods/services which
would satisfy the customer by fulfilling their needs and wants.
 (4)Providing wide choice of goods- Aims at providing a wide range of offerings.
 (5) Improving the quality of life- Aims to improve the quality of life of the
customer by offering good products/services.
Marketing, Dr. Manishankar Chakraborty

9. Outcome 1
 Marketing Management- It is an art and science of choosing target markets and
building profitable relation with them.
 Marketing management orientation-
 There are five orientations which companies implement to conduct marketing
related activities-
 (1) Production concept- It states that consumers will buy whatever is available
and affordable. So, company should look into improving production and
distribution.
 (2) Product concept- Consumers will buy products that offer most in
quality, performance and innovative features. Organization should focus on
product improvements.
 (3) Selling concept- Consumers will not buy enough of the product unless large
scale selling and promotional effort is done. This concept is practiced for goods
which consumers do not think of buying.
 (4) Marketing concept- Providing better customer satisfaction by knowing
consumer needs than competitors forms the marketing concept. Here
organizations provide the right product to the customers.
 (5) Societal Marketing- It states that the organization should relate their
marketing activities for the welfare of the society.
Marketing, Dr. Manishankar Chakraborty

10. Outcome 1
 Customer Satisfaction- The extent to which a product satisfies the buyers
expectations. Customers are dissatisfied when product performance falls
short of customer expectations.
 De-marketing- Marketing to reduce demand. Goal is not to destroy
demand, but reduce or shift it. E.g.- De-marketing of petroleum products in
India.
 Marketing offer- These are the benefits provided by the marketers to
encourage or motivate customers to purchase the products. It includes
discounts in prices, products guarantee, and warrantee, free samples etc.
 Exchange- Process of obtaining a desired object from someone by offering
something in return.
 Marketing environment- Factors and forces outside marketing affecting
the ability to build and maintain successful relationships with the target
customers. Marketing environment provides opportunities and threats.
Marketing, Dr. Manishankar Chakraborty

11. Outcome 1
 Microenvironment- Factors close to the company that affects its ability to serve
its customers.
 The main factors are-
 (1) Company- To design marketing plans factors like top management, research
and development, purchase and accounts should be considered.
 (2) Suppliers- They supply raw materials required for making the finished
goods/services. Organization should have good suppliers to avoid short supply
and delay in raw materials, apart from bad quality of resources/raw materials.
 (3) Marketing intermediaries- They are „middle-men‟ and help companies to
promote, sell and distribute the offerings(goods/services) to final buyers. It
includes re-sellers, wholesalers, physical distribution firms, marketing services
agencies and financial intermediaries.
 (4) Customers- They are of four types-
 (a) Consumer markets- Individuals and households for personal consumption.
E.g. You, Me.
 (b) Business markets- Buy goods-services for further production. E.g. A
restaurant, PDO.
 (C) Re-seller markets- Buy goods to re-sell at a profit. E.g. Lulu, Tauba.
 (d) Government market- Produce public service and transfer goods for the
common man. E.g. MoMP buying computers for Colleges of Technologies.
 (e) International market- All the above markets at the international level.
Marketing, Dr. Manishankar Chakraborty

12. Outcome-1
 Competitors- Companies selling same kind of products and services in the market. The company
has to deliver products/services better than the competitors.
 Public- Groups having an interest in organizations ability to achieve its objectives. They are of four
types-
 (a) Financial public- Companies get funds/money from them. E.g. Banks and Financial Institutions
 (b) Media public- They help in promotion. E.g. Newspapers, Magazines, TV.
 (C) General public- Image of the public in the mind of the common man affects buying.
 (d) Internal public- Employees are internal as their motivation affects external publics like
customers and others.
 Macro environment- Larger societal forces affecting micro environment. These cannot be
controlled by the company. They are of the following types-
 (1) Demographic- Study of human population, their size, density, location, age, gender, occupation.
 (2) Economic- Factors like purchasing power of customers, spending patterns as countries differ in
distribution of income, so marketers should note the changes.
 (3) Natural- Consists of natural resources needed as inputs by marketers. They should be aware
about pollution and shortage of raw materials.
 (4) Technological- New methods, techniques, technology affecting manufacturing and marketing.
 (5) Political- Government laws, political system affecting individuals and organizations
 (6) Cultural- Involves society‟s basic values, perceptions, preferences and behaviours.
Marketing, Dr. Manishankar Chakraborty

13. Knowledge reinforcement
 Scratch your mind
 Do you think marketing is important?
 What would you do you if you the marketing manager of Oman Air?
 Consumers and customers are the same. Comment.
 Situation for analysis
 Case-let
 Additional Reading Links
 http://en.wikipedia.org/wiki/Marketing_management
 http://www.scribd.com/doc/8939448/Marketing-Management
 http://www.wepapers.com/Papers/14123/Fundamentals_of_Marketing_Mana
gement
 http://www.slideshare.net/BabasabPatil/marketing-management-basics-
11032256
Marketing, Dr. Manishankar Chakraborty

14. Outcome-2
Marketing Decision Making and
Consumer Behaviour
 Definition
 Consumer behavior is defined as the behavior that consumers show in searching for
purchasing, using, evaluating and disposing of products and services that they expect
will satisfy their needs.
 E.g. Purchasing a CAR
 Types of buying decision behavior- It is based on the degree of buyer involvement and the
degree of differences amongst the brands.
 (1)Complex buying behavior- Buyer passes through a learning process, developing
beliefs, then attitudes about the product/service, followed by making a thoughtful choice
of purchase.
 Consumers are highly involved when the product is expensive and purchased
infrequently.
 E.g. Purchasing a CAR
 (2) Dissonance-Reducing buying behavior- This occurs when consumers are highly
involved with an expensive, in-frequent purchase, but see little difference among brands.
 Consumers sometimes experience post purchase dissonance when they notice certain
disadvantages of purchased brand or hear favourable things about brands not purchased.
 (3) Habitual buying behavior- It occurs under condition of low consumer involvement and
little brand differences.
 Consumers goes to the store and purchases a brand.
 Continuously purchasing is because of habit, than strong brand loyalty.
Marketing, Dr. Manishankar Chakraborty

15. Outcome 2
 Variety seeking buying behavior- Consumer switches brands frequently.
 Competing firms encourages variety amongst consumers through lower prices, coupons, free
samples, advertising for trying new choices.
 Steps in buying decision behavior
 It has following five stages-
 (1) Need recognition- Buying process starts with need recognition, where buyer recognizes a
problem/need.
 Marketers should research consumers to find out what kind of needs or problems arise.
 (2) Information search- Interested consumer search for product related information from
personal, commercial and public sources.
 Consumer‟s awareness and knowledge of available brand increases.
 (3) Evaluation of alternatives- Consumer uses information to evaluate alternative brand in the
choice set.
 (4) Purchase decision- Consumer ranks brands and form purchase intention.
 Consumers purchase decision will be to buy the most preferred brand.
 Post-purchase decision- Customer purchases the products and takes further action based on their
satisfaction or dissatisfaction.
Marketing, Dr. Manishankar Chakraborty

16. Knowledge reinforcement
 Scratch your mind
 Give one example each with explanation for different types of
buying decision behavior from your own life.
 What is the process followed by you while buying a car?
 What is dissonance? How can you prevent buying dissonance?
 Situation for analysis
 Case-let
 Additional Reading Links
 http://en.wikipedia.org/wiki/Consumer_behaviour
 http://www.newagepublishers.com/samplechapter/000160.pdf
 http://www.managementstudyguide.com/what-is-consumer-behaviour.htm
 http://www.swlearning.com/web_resources/consumer.htm
Marketing, Dr. Manishankar Chakraborty