Principles of Marketing

Definition:-
The first few words that usually pop into a person's head are
'marketing equals sales!' Marketing is NOT just personal selling or
even just advertising. Most people define marketing in a very limited
way. Marketing includes activities such as public relations, sales
promotion, advertising, social media, pricing, distribution and many
other functions.

The official definition of marketing is it is a philosophy whose main

focus is providing customer satisfaction. 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. Also include in the definition are all of
the activities that help businesses reach their target market effectively.

American Marketing Association defines marketing as –

“Board of Directors, 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.”

Dr. Philip Kotler defines marketing as –

“The science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit.  Marketing identifies
unfulfilled needs and desires. It defines, measures and quantifies the
size of the identified market and the profit potential. It pinpoints which
segments the company is capable of serving best and it designs and
promotes the appropriate products and services.”

The above definitions reveal that Marketing s the process by which a

firm profitably translates customer needs into revenue.
 Nature of Marketing:-
The Nature of Marketing (or Modern marketing) may be studied under
the following points:
1. Human activity: Originally, the term marketing is a human
activity under which human needs are satisfied by human efforts. It’s
a human action for human satisfaction.
2. Consumer-oriented: A business exist to satisfy human needs,
hence business must find out what the desire of customer (or
consumer) and thereby produce goods & services as per the needs of
the customer. Thus, only those goods should be produce that satisfy
consumer needs and at a reasonable profit to the manufacturer (or
producer).
3. Art as well as science: In the technological arena, marketing is
the art and science of choosing target markets and satisfying
customers through creating, delivering, and communicating superior
customer value. It is a technique of making the goods available at
right time, right place, into right hands, right quality, in the right form
and at right price.
4. Exchange Process: All marketing activities revolve around
commercial exchange process. The exchange process implies
transactions between buyer and seller. It also involves exchange of
technology, exchange of information and exchange of ideas.
5. Starts and ends with customers: Marketing is consumer
oriented and it is crucial to know what the actual demand of consumer
is. This is possible only when required information related to the
goods and services is collected from the customer. Thus, it is the
starting of marketing and the marketing end as soon as those goods
and services reach into the safe hands of the customer.
6. Goal oriented: Marketing seeks to achieve benefits for both
buyers and sellers by satisfying human needs. The ultimate goal of
marketing is to generate profits through the satisfaction of the
customer.
7. Guiding element of business: Modern Marketing is the heart
of industrial activity that tells what, when, how to produce. It is capable
of guiding and controlling business.
8. System of Interacting Business Activities: Marketing is the
system through which a business enterprise, institution or
organization interacts with the customers with the objective to earn
 profit, satisfy customers and manage relationship. It is the
performance of business activities that direct the flow of goods and
services from producer to consumer or user
9. Marketing is a dynamic processes: series of interrelated
functions: Marketing is a complex, continuous and interrelated
process. It involves continuous planning, implementation and control.

Thus, now you know the role and nature of Marketing

Importance of Marketing for the Economic

Development:-
 Delivery of standard of living to the society:
A society is a mixture of diverse people with diverse tastes and
preferences. Modern marketing always aims for customer satisfaction.
So, main liability of marketing is to produce goods and services for the
society according to their needs and tastes at reasonable price.
 Decrease in distribution cost:
Second important liability of marketing is control the cost of
distribution. Through effective marketing the companies can reduce
their distribution costs to a great extent. Decrease in cost of
distribution directly affects the prices of products because the cost of
distribution is an important part of the total price of the product.
 Protection against business slump:
Business slump cause unemployment, slackness in the success of
business and great loss to economy. Marketing helps in protecting
society against all these problems.
Importance of Marketing as a business firm:-
Your business starts and ends with marketing. You need to be
marketing oriented all the time to succeed and sustain in the business
for a long time.
This is evident from the following points:
I. Marketing helps business to keep pace with the changing tastes,
fashions and preferences of the customers. It works out primarily
because ascertaining consumer needs and wants is a regular
phenomenon and improvement in existing products and
introduction of new products is a continuous process. Marketing
 thus, contributes to providing better products and services to the
consumers and thereby helps them in improving their standard
of living.
II. Marketing plays an important role in the development of the
economy. Various functions and sub-functions of marketing like
advertising, personal selling, packaging, transportation, etc.,
generate employment for a large number of people, and
accelerate growth of business.
III. Marketing helps the business in increasing its sales volume,
generating revenue and ensuring its success in the long run.
IV. Marketing also helps the business in meeting competition most
effectively.
V. Marketing Promotes Product Awareness to the Public.
VI. Marketing Builds up Company’s Reputation. In order to conquer
the general market, marketers aim to create a brand which helps
in name recognition and product recall.

Difference between Traditional Marketing Concept

and Modern Marketing Concept:-

1. Traditional Marketing Concept:

Traditional marketing concept focuses on products only and it aims in
production and marketing of products and gaining more profit.
Traditional marketing is profit oriented. It is based on old marketing
concept and refers to a narrow concept. Traditional marketing concept
is based on push marketing. It is one dimensional as the only target of
it is to sell the product and get the profit.
Most commonly used traditional marketing strategies are :
 Business cards
 TV and Radio ads
 Billboards and signage
 Flyers and brochures
 Telephone marketing
Advantages:
 Opportunity for powerful creative efforts
 Easy to understand
 Easier reach to local target audience
Disadvantages:
  Little interaction
 Targeted customer is minimal

2. Modern Marketing Concept:

Modern marketing concept focuses on customer’s need and wants and
it aims in meeting the customer’s satisfaction. Modern marketing is
customer oriented. It is based on new marketing concept and refers to
a broader concept. Traditional marketing concept is based on pull
marketing. It is multidimensional as along with selling product and
getting profit it also gives emphasis on customer satisfaction, planning,
after sales service and many other variables.
Most commonly used modern marketing strategies are:
 Internet ads
 E-mail marketing
 E-commerce website
 Use of social media
 Marketing automation
Advantages:
 Higher ROI
 Deeper levels of customer engagement and targeting
 Cost effective
 Opened to larger and bigger markets
Disadvantages:
 Requires technical skill to be active in digital marketing and in
use of internet
 More costly in implementing.
S.NO TRADITIONAL MODERN MARKETING

. MARKETING CONCEPT CONCEPT

Traditional Marketing Modern Marketing concepts

concepts focuses on focuses on customer’s needs

01. products only. and wants.

02. In traditional marketing In modern marketing the

the objective is maximum objective is maximum

 profit. customer satisfaction.
Traditional marketing is Modern marketing is long

03. short term oriented. term oriented.

It targets customer in It targets customer in focus

focus of product/service of providing product/service

selling and availing high and availing satisfactory

04. profit. profit.

In traditional marketing In modern marketing concept

concept there is less there is sustained

05. promotional activities. promotional activities.

Traditional marketing is

one type of push Modern marketing is one

06. marketing. type of pull marketing.

It includes digital/automated

It is based on manual and marketing along with

physical marketing traditional marketing

07. concepts. methods.

Definition of Marketing Mix:
According to Borden, “The marketing mix refers to the appointment of
efforts, the combination, the designing and the integration of the
elements of marketing into a programme or mix which, on the basis of
an appraisal of the market forces will best achieve an enterprise at a
given time”. According to Stanton, “Marketing mix is the term used to
describe the combination of the four inputs which constitute the core
of a company’s marketing system-the product, the price structure, the
promotional activities and the distribution system.”

Thus marketing mix is the combination of the product, the distribution

system, the price structure and the promotional activities. The term
marketing mix is used to describe a combination of four elements-the
product, price, physical distribution and promotion. These are
popularly known as “Four Ps.”

These four elements or sub-mixes should be taken as instruments, by

the management, when formulating marketing plans. As such,
marketing manager should have a thorough knowledge about the four
Ps. The marketing mix will have to be changed at the change of
marketing conditions like economical, political, social etc. Marketing
mix is developed to satisfy the anticipated needs of the identified
markets.

A brief description of the four elements of marketing mix (Four

Ps) is:
1. Product:
The product itself is the first element. Products must satisfy consumer
needs. The management must, first decide the products to be
produced, by knowing the needs of the consumers. The product mix
combines the physical product, product services, brand and
packages. The marketing authority has to decide the quality, type of
goods or services which are offered for sale.

A firm may offer a single product (manufacturer) or several products

(seller). Not only the production of right goods but also their shape,
design, style, brand, package etc., are of importance. The marketing
authority has to take a number of decisions as to product additions,
product deletions, product modifications, on the basis of marketing
information.

2. Price:
The second element to affect the volume of sales is the price. The
marked or announced amount of money asked from a buyer is known
as basic price-value placed on a product. Basic price alterations may
be made by the manufacturer in order to attract the buyers. This may
be in the form of discount, allowances etc. Apart from this, the terms
of credit, liberal dealings will also boost sales.

3. Promotion:
The product may be made known to the consumers. Firms must
undertake promotion work-advertising, publicity, personal selling etc.,
which are the major activities. And thus the public may be informed of
the products and be persuaded by the customers. Promotion is the
persuasive communication about the products, by the manufacturer to
the public.

4. Distribution (place):
Physical distribution is the delivery of products at the right time and at
the right place. The distribution mix is the combination of decisions
relating to marketing channels, storage facility, inventory control,
location, transportation warehousing etc.

Thus marketing mix is used as a tool towards the customers in order

to ascertain their needs, tastes, preferences etc. Marketing mix must
face competition. It must satisfy the demands of the society. Then
firms can attain the objectives-profit, market share, return on
investment, sale-volume etc.

Concept of Marketing Mix:

The concept of marketing mix, according to Borden consists of:
(i) A list of the important elements or ingredients that make up the
marketing programmes, and

(ii) A list of the forces that bear on the marketing operation of a firm
and to which the marketing manager must adjust in his search for a
mix or programme that can be successful.

In brief, the four “ingredients” in the mix are interrelated. These are
also known as marketing decision variables.