MARKETING FUNDAMENTALS

Marketing
Marketing is the Process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.
Philip Kotler defines marketing as Satisfying needs and wants through an exchange process
Bartles defines Marketing is the process whereby society, to supply its consumption needs,
evolves distributive system composed of participants, who interacting under constraints,
technical (economic) and ethical (social), create the transactions or flows which resolve market
separations and results in exchange and consumption

Nature of Marketing
1. Marketing is a human activity
2. Marketing is a social-economic activity
3. Marketing is consumer-oriented process.
4. The core of marketing is product or service
5. Marketing is based on exchange
6. Marketing is both art and science
7. Marketing is a universal activity.

What can be marketed?
Goods
Place
Services
Properties
Events
Organization
Experience
Information
Knowledge
Persons
Ideas

Scope of Marketing
1. The scope of marketing has been increased a lot in modern time. The scope of marketing are:
2. All the decisions related to product like size, color, design, packaging etc are taken with active
participation of marketing department of the company
3. All the decisions related to the consumers are taken after having studied the consumers
responses with respect to different products, different prices and brands.
4. All promotional decisions like choosing type of marketing media are also being taken under
marketing activity.
5. All effective after sales service is formulated by the marketing manager in order to satisfy the
consumers.

Marketer:
1. One who takes more active part in the process of exchange.
2. One who analysis the needs of the potential buyers.
3. One who develops a product/service and persuades the buyers to buy the product
Creating a Customer:
The activities necessary to create the customers includes:
1. Identifying customers needs
2. Designing goods and services that can satisfy those needs
3. Communicate information about those goods and services to prospective buyers.
4. Making the goods and services available to customers at right place at right time
5. Providing the necessary service and follow up to ensure customer satisfaction after the
product is sold.

Importance of marketing to the society:
1. Delivery of standard of living to the society
2. Decrease in Distribution cost
3. Increase in Employment opportunities
4. Increase in National Income
5. Protection against Business slump

Concept of Marketing
Exchange Concept:
This concept of marketing indicates that the exchange of a product between the seller and buyer
is necessary.
Production Concept:
Production dominates the thinking process of the consumers.
Products produced in a great volume at a low unit cost are supported by the consumers.
Production is focused in this concept.
Product Concept:
In this concept quality of the product is focused.
Good and quality products are provided to the customers.
Sales Concept:
Large sales promotion is believed to maximize the selling.
Organizations resort to aggressive advertising, high power personal selling.
The customer is being neglected in this concept.
Marketing Concept:
Organization focuses on the customers.
Consumer is at both the beginning and the end of the business cycle.
Consumer needs and aims at the satisfying those needs are determined.
The customers need becomes the focal point of the business.

MARKETING BASICS:
How Marketing is to be used depends upon the type of product or service for which marketing is
to be used
The main objective of Marketing by Traditional Marketing professionals is to just sell the products
and services. But now the strategy has changed. Now the main objective of marketing is to sell
the product so that the customer gains satisfaction also.
From this we can say that the most powerful element of a market is none other than the
customer.

MARKETING APPROACHES:
How Marketing is approached can be divided into two categories as follows:
1. Inbound Marketing:
It mainly focuses on understanding specific customers groups with their specific needs and
based on that it forms a product design. The most critical part is determining the features of the
product and the language in which it should communicate into the customers.
2. Outbound Marketing:
This is one of the traditional methods of marketing. Here the company contacts the customer
through a message. It uses offline methods such as trade shows, mails to customers and calling
customers.

4 PS OF MARKETING:
Marketing can be defined as a set of 4 ps. These 4 ps define the principles and basics of
marketing. These are also referred by Neil Borden as Marketing Mix..

1. PRODUCT: Identification and selection of right product that
satisfies the customer needs
2. PLACE: Selling the product at right place i.e. providing the
customer a way of access to the products
3. PRICE: determination of its price
4. PROMOTION: Once you have the product and its price, the
next step is to promote the product. So we need to develop
and implement our own way of promotional strategy.


TRADITIONAL MARKETING:
This type of marketing is used to refer to old marketing techniques that have been proven
successful.
In olden days television, radio, cold calls etc. were used as a way of promotion of products.
The first step in implementing traditional marketing understands the customer so that we can
promote the product using the media preferred by them. Traditional marketing efforts are
sometimes also refers as PUSH advertising as it pushes message to the audience. After deciding
on the traditional marketing approach a company need to detail out the marketing solutions
based on
1. Target Audience i.eCustomers
2. Creating content that will optimize customer experience
3. What are all the channels to be used in the media mix
4. We need to develop various marketing materials for various marketing channels
5. Finally, we need to define benchmarks to compare results of products.

TYPES OF TRADITIONAL MARKETING:
1. PRINT ADVERTISING: It is nothing but advertising through printed means such as
newspapers, magazines, brochures etc.
2. TELEVISION: Advertising through TV.
3. RADIO ADVERTISING: Advertising through radio
4. COLD CALLS: calling the customers directly
6. DIRECT MAILS: mails are sent to selected group of customers.

INTERNET MARKETING:
Now-a-days Internet has become a relatively cheaper Marketing channel compared to
television and radio counterparts and has gained popularity so soon. Hence we can define
Internet Marketing as promotion of products or services online through ads. It is also known as
e-Marketing or Internet advertising. There are several channels of Internet Marketing Such as
Banners, adds, pay-per-click adds, blog marketing, optimization techniques etc.
For example suppose today if a person wants to buy any product the following steps are
followed
1. First he/she searches the Internet for the required product
2. Then we check the relevant results
3. Then we check the ratings and user views on the product.
4. We select the best suited product in terms of features and pricing.
5. We check for a site that offers the best deal
6. Compare offline prices with online prices (generally online prices are cheap)
7. Finally order the product

IMPORTANT QUESTIONS
(1)USP of a product/ service means?

1. Unique Selling Practices
2. Uniform Selling Practices
3. United Sales Persons
4. Unique Selling Proposition
5. Useful Sales Person
Right answer- Unique Selling Proposition

(2)Says Law of Markets states that

1. Demand creates its own supply
2. Supply creates its own demand
3. Demand creates its own demand
4. Supply creates its own supply
5. None of these
Right answer- Supply creates its own demand

(3)In Marketing Mix 4P means__________________

1. Product, Price, Policy, Place
2. Product, Price, Public, Place
3. Product, Promotion, Policy, Place
4. Product, Price, Place, Promotion
5. Product, Price, Policy, Place
Right answer- Product, Price, Place, Promotion

(4)The long term objective of marketing is ______

1. Customer satisfaction
2. Profit maximization with customer
3. Profit maximization
4. Cost cutting
5. None of these
Right answer- Profit maximization with customer


(5)A successful Blue Ocean Strategy requires:

1. Effective Communications
2. Innovative Skills
3. Motivation
4. All of the above
5. None of these
Right answer- All of the above

(6)The Tradition Marketing style involves:

1. Tele Marketing
2. Digital Marketing
3. Indirect Marketing
4. Direct Marketing
5. All of these
Right answer- Indirect Marketing

(7)_____________can be done through digital Banking?

1. Mobile phone
2. Internet
3. Telephone
4. All of these
5. None of these
Right answer- Mobile phone
Answer

(8)What does AIDA stands for?

1. Advertisement, Interest, Demand, Acquire
2. Advertisement, Interest, Desire, Attention.
3. Attention, Interest, Desire Action.
4. Action, Interest, Demand, Attention.
5. None of these
Right answer- Attention, Interest, Desire Action.


(9)USP of a product/ service means?

1. Unique Selling Practices
2. Uniform Selling Practices
3. United Sales Persons
4. Unique Selling Proposition
5. Useful Sales Person
Right answer- Unique Selling Proposition

(10)One of the methods for Market Monitoring is

1. to watch TV serials
2. to discuss with other sales persons
3. to monitor media outlets
4. All of these
5. None of these
Right answer- to monitor media outlets

(11)Proper Marketing requires:

1. Planning
2. Sympathy
3. Knowledge of Products
4. Planning and Sympathy both
5. Planning and Knowledge of Products
Right answer- Planning and Knowledge of Products

(12)Market Information means

1. Knowledge of companies
2. Cross-Country Information
3. Knowledge of related markets
4. Selling to existing customers
5. None of these
Right answer- Knowledge of related markets



(13)Relationship Selling Means:

1. Preparing a list of relatives
2. Cross-Selling
3. Selling to relatives
4. Selling to strangers
5. Tele Marketing
Right answer- Cross-Selling

(14)Qualities of a good salesman are

1. Patience and Politeness
2. Empathy and Perseverance
3. Steadfast and committed
4. Both(1) and (2)
5. All (1),(2) and (3)
Right answer- All (1), (2) and (3)

(15)A lead is useful for

1. A marketing staff
2. A team leader
3. Bank's chairman
4. An industry making lead products
5. Not useful, as it is poisonous
Right answer- A marketing staff

(16)Market research is needed___________

1. For extra service charges
2. For levy of VAT
3. For good customer service
4. For effective selling
5. There is no need for Market Research
Right answer- For good customer service

(17)Marketing and selling are:


1. Not required if profit is high
2. Not required if sales are high
3. Not required in monopolistic conditions
4. All of the above
5. None of these
Right answer- None of these

(18)Marketing segmentation means

1. Dividing the market into various groups
2. Segmenting by age
3. Segmenting by tastes
4. Segmenting geographically
5. All of these
Right answer- All of these

(19)Customer database means:


1. Customer bio data
2. Customer Loyalty
3. Customer Loans details
4. Information on customer needs
5. None of these
Right answer- Customer bio data