1. INTRODUCTION TO
PRINCIPLES OF MARKETING

2. Part-1
UNDERSTANDING MARKETING AND
MARKETING PROCESS

3. CHAPTER-1
MARKETING – “Managing profitable
customer relationships”.
 Definition of Marketing
 Needs, Wants and Demands
 Marketing offers- Products, Services and
Experiences

4. Market is the set of all actual and potential
buyers of a product or service.

5. Originally the term Market stood for the place
where buyers and sellers gathered to exchange
their goods, such as a village square. Marketers
work to understand the needs and wants of
specific markets and to select the markets that
they can serve best. In turn they develop
products and services that create value and
satisfaction for customers in these markets. The
result is profitable long-term customer
relationships.

6. Define marketing?
Marketing is defined as a social and
managerial process by which individuals and
groups obtain what they need and want
through creating and exchanging products of
value with others.

7. Many people think of Marketing only as selling
and advertising. And no wonder- every day we
are bombarded with television commercials,
newspaper ads, direct mail offers, sales calls
etc. However, selling and advertising is only
the tip of the marketing iceberg. Although they
are important, they are only two of many
marketing functions.

8. Today, Marketing must be understood not in the
old sense of making a sale- but in the new
sense of Satisfying customer needs.

9. To explain the above definition we will examine
the following important core marketing
concepts.
NEEDS: The most basic concept underlying
marketing is that of human need. ‘Human
needs are states of felt deprivation’. They
include basic physical needs for food, clothing,
warmth and safety.

10. WANTS: Are the form human needs take as
they are shaped by culture and individual
personality. Example: If an American needs food
wants big Mac Donald, French fries etc. if a person in
Mauritius needs food wants a mango, rice, lentils and
beans etc. ‘Wants are shaped by one’s society
and are described in terms of objects that
will satisfy needs’.

11. DEMANDS: Given there wants and resources,
people demand products with benefits that add
up to the most value and satisfaction. ‘When
back by buying power wants become
demand’.

12. What are marketing offers?
MARKETING OFFERS- ‘Products, Services
and Experiences’

13. Marketing offers are some combination of
products, services, information, or experiences
offered to a market to satisfy a need or want.
Marketing offers are not limited to physical
products. In addition to tangible products,
marketing offers include services, activities or
benefits offered for sale that are essentially
intangible and do not result in the ownership of
anything. Examples include banking, airline,
hotel, tax preparation, and home repair services.

14. ‘Marketing occurs when people decide to satisfy
needs and wants through exchange’.
Exchange is the act of obtaining a desired
object by offering something in return.
Transaction consists of a trade of value
between two parties.

15. CUSTOMER VALUE AND SATISFACTION
Consumers usually face a broad range of
products and services offered to them that
might satisfy a given need.
How do they make their choice among the
given Marketing offers?
Consumers make choices based on their
perception of the value and satisfaction that
various products and services deliver.

16. Customer Value is the difference between the
values the customer gains from owning and
using a product and the costs of obtaining the
product.
Customer Satisfaction with a purchase
depends on how well the product’s
performance lives up to the customer’s
expectations. Customer satisfaction is a key
influence on future buying behavior.

17. Satisfied customers buy again and tell others
about their good experiences. Dissatisfied
customers often switch to competitors and
discourage the products to others.

18. CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management is the overall
process of building and maintaining profitable
customer relationships by delivering superior
customer value and satisfaction.

19. Thus, today’s companies are going beyond
designing strategies to attract new customers
and create transactions with them. They are
using customer relationship management to
retain current customers and build profitable,
long term relationships with them. The new
view is that ‘Marketing is the science and art
of finding, retaining and growing profitable
customers’.

20. MARKETING MANAGEMENT
‘The Art and Science of choosing target markets and
building profitable relationships with them’.
This involves getting, keeping and growing customers
through creating, delivering and communicating
superior customer value. Thus, marketing management
involves managing demand, which in turn involves
managing customer relationships.

21. CHAPTER-2
THE MARKETING ENVIRONMENT

22. Marketing environment
The actors and forces outside marketing that
affect marketing management’s ability to build
and maintain successful relationships with
target customers.

23. The Marketing environment is made up of
(1) Microenvironment and
(2) Macro environment

24. MICROENVIRONMENT
The actors close to the company that effect its
ability to serve its customers- the company,
suppliers, marketing intermediaries, customers,
competitors.

25. COMPANY
CUSTOMER COMPETITOR
MARKETING
INTERME
DIARIES
SUPPLIERS
MICRO
ENVIRON
MENT

26. THE COMPANY
In designing marketing plans, Marketing
Management takes other company groups into
account. Groups such as top management,
finance, research & development, purchasing
department etc. All this interrelated groups
form the internal environment.

27. THE SUPPLIERS
Suppliers form an important link in the
company’s overall customer value delivery
system. They provide the resources needed by
the company to produce its goods and services.

28. MARKETING INTERMEDIARIES
Marketing intermediaries help the company to
promote, sell, and distribute its goods to final
buyers.

29. CUSTOMERS
The company needs to study all the types of
customer markets. Consumer markets consists
of individuals and households that buy goods
and services for personal consumption.
Business markets buy for further processing or
in production process. Reseller markets buy to
resell at profit.

30. COMPETITORS
The Marketing concept states that to be
successful, a company must provide greater
customer value and satisfaction than its
competitors.

31. MACROENVIRONMENT
The macro environment of marketing pose opportunities
and threats to the company that effect its ability to
serve its customers- The Major forces in the
company’s macro environment are Demographic
environment, Natural environment, Technological
environment, political environment, cultural
environment and economic environment.

32. TECNOLOGICAL
ENVIRONMENT
ECONOMIC
ENVIRONMENT
CULTURAL
ENVIRONMENT
POLITICAL
ENVIRONMENT
NATURAL
ENVIRONMENT
DEMOGRAPHIC
ENVIRONMENT
MACRO
ENVIRONMENT

33. DEMOGRAPHIC ENVIRONMENT
The demographic environment is of major
interest to marketers because it involves people,
and people make up markets. Demography is
the study of human populations in terms of size,
density, location, age, gender, race, occupation
and other statistics.

34. Natural environment
The natural environment involves the natural
resources that are needed as inputs by
marketers. Marketers should be aware of
several trends in the natural environment. It
involves growing shortages of raw materials
and increased pollution.

35. Technological environment
The technological environment is perhaps the
most dramatic force now shaping our destiny.
Forces that create new technologies, creating
new products and marketing opportunities. The
technological environment is changing rapidly.

36. POLITICAL ENVIRONMENT
Political environment consists of laws,
government agencies and pressure groups that
influence and limit various organizations and
individuals in a given society.

37. CULTURAL ENVIRONMENT
The cultural environment is made up of forces
that affect a society’s basic values, perceptions,
preferences and behaviors. People grow up in a
particular society that shapes their basic beliefs
and values.

38. ECONOMIC ENVIRONMENT
The economic environment consists of factors
that affect consumer purchasing power and
spending patterns. Nations vary greatly in their
levels and distribution of incomes. Marketers
must pay close attention to major trends and
consumer spending patterns both across and
within their world markets.