According to Philip Kotler, Marketing is a social process by which individuals and

groups obtain what they need and want through creating, offering, freely exchanging
products and services of value with others
According to Philip Kotler, "Marketing Management is the analysis, planning,
implementation and control of programmes designed to bring about desired exchanges
with target audiences for the purpose of personal and of mutual gain. It relies heavily on
the adoption and coordination of product, price, promotion and place for achieving
responses."

Nature of Marketing
Nature of Marketing evolves from its multidisciplinary coverage of activities which is as follow:
Dynamic Process: Marketing is an ongoing activity which does not stop at any step.
After finding customers needs and wants it needs to develop such products or services
which can satisfy these needs and after this there is need to advertising, promotion,
distribution, etc the process goes on.
Customer Oriented: Marketing is customer oriented. Marketing is the process of finding
needs and wants of customers and satisfying those needs profitably.
All Encompassing: Marketing is all encompassing, it is not a single process it includes
production planning, research, advertising, financial management, budgeting, selling,
etc.
Integrating: It integrates all the departments of an enterprise be it production, finance,
IT, HR, etc.
Creative: Marketing is creative in nature, it looks out for new ideas, views and activities
and solves problems or encash opportunities in a creative way.
Marketing Management is a Business Process: Marketing management is a
business process, to manage marketing activities in profit seeking and non profit
organisations at different levels of management, i.e. supervisory, middle-management,
and executive levels.
Marketing Management is Both Science and Art: Marketing management is a
science because it follows general principles that guides the marketing managers in
decision making. The Art of Marketing management consists in tackling every situation in
an creative and effective manner.
Marketing is the delivery of value: when a consumer derives satisfaction from a
particular product on the basis of products overall capacity and performance is known as
value in consumers perception.
Marketing starts and ends with customers/ consumers
Marketing is goal oriented and the goal being profit maximization through satisfaction of
human needs
Marketing is the guiding element of business (It tells what, when, how to produce;
Marketing is capable of guiding and controlling business

 Marketing is a system .
Marketing is a process, i.e., series of interrelated functions.
Scope of Marketing:
Marketing has a very wide scope it covers all the activities from conception of ideas to
realization of profits. Some of them as discussed as below:
Marketing Research
Study of Consumer Wants and Needs: Goods are produced to satisfy consumer
wants. Therefore study is done to identify consumer needs and wants. These needs and
wants motivates consumer to purchase.
Study of Consumer behaviour: Marketers performs study of consumer behaviour.
Analysis of buyer behaviour helps marketer in market segmentation and targeting.
Product Planning and development : It includes the activities of product research,
marketing research, market segmentation, product development, determination of the
attributes, quantity and quality of the products.
Branding: Branding of products is adopted by many reputed enterprises to make their
products popular among their customer and for many other benefits. Marketing manager
has to take decision regarding the branding policy, procedures and implementation
programs.
Packaging: Packaging is to provide a container or wrapper to the product for safety,
attraction and ease of use and transportation of the product.
Channels of Distribution: Decision regarding selection of most appropriate channel of
distribution like wholesaling, distribution and retailing is taken by the marketing manager
and sales manager.
Pricing Policies: Marketer has to determine pricing policies for their products. Pricing
policies differs form product to product. It depends on the level of competition, product
life cycle, marketing goals and objectives, etc.
Sales Management: Selling is a part of marketing. Marketing is concerned about all the
selling activities like customer identification, finding customer needs, persuading
customer to buy products, customer service, etc.
Promotion: Promotion includes personal selling, sales promotion, and advertising. Right
promotion mix is crucial in accomplishment of marketing goals.
Finance: Marketing is also concerned about the finance, as for every marketing activity
be it packaging, advertising, sales force budget is fixed and all the activities have to be
completed with in the limit of that budget.
After Sales services: Marketing covers after sales services given to customers,
maintaining good relationships with customers, attending their queries and solving their
problems.
Market segmentation
Market segmentation is the process of splitting customers, or potential customers, in a market
into different groups, or segments, within which customers share a similar level of interest in
the same, or comparable, set of needs satisfied by a distinct marketing proposition The
division of a market into different homogeneous groups of consumers is known as market
segmentation.
BASIS OF MARKET SEGMENTATION
1. Geographic Segmentation- is based on regional variables such as region, climate,
population density, and population growth rate.
2. Demographic segmentation- based on variables such as age, gender, ethnicity,
education, occupation, income, and family status

3. Behavioral segmentation - based on variables such as usage rate and patterns, price
sensitivity, brand loyalty, and benefits sought.
4. Psychographic segmentation - based on variables such as values, attitudes, and
lifestyle
Market Segmentation Should be
measurable: the differentiating attributes of the segments must be measurable so that they
can be identified.
Accessible: the segments must be reachable through communication and distribution
channels.
Substantial: the segments should be sufficiently large to justify the resources required to
target them.
Unique needs: to justify separate offerings, the segments must respond differently to the
different marketing mixes.
Durable: the segments should be relatively stable to minimize the cost of frequent changes.
Benefits Of Market Segmentation
Better serve the needs of the customers.
Improve companys competitive position.
Increase sales, improved market-share, enhanced image.
Facilitates the right choice of Target market: It helps the marketer to identify
potential buyers and pickup their target market effectively.

Facilitates effective tapping of the Chosen market segment: It helps to know and
analyse the demands of each customer group and make offers that match them.

Helps identify less satisfied segments and concentrate on them: Segmentation

also helps the marketers to know the segment still waiting to be served and grabs them
as a unique opportunity.

Helps to concentrate efforts on most productive and profitable market segment

instead of frittering over irrevelant, unproductive /unprofitable segment.

FOCUS OF THE COMPANY : Segmentation is an effective method to increase the focus

of a firm on market segments. This helps a company in changing its focus for better
returns. Thus companies base their strategy completely on a new segment which
increases its focus and profitability.
e.g. Automobile companies have started focusing
on small car segments.

CUSTOMER RETENTION : Segmentation ensures customer retention.

e.g. Titan watches. A watch is available for any customer who enters a Titan showroom,
whatever be his age, budget. from fast track to Sonata and the high end
watches(EDGE,HTSE,PURPLE,etc) . Titan has them by price segment as well as life cycle
segment.

MARKET EXPANSION : Segmentation plays a crucial role in expansion. One cannot

expand in a territory without any idea of which segment of customers one will be dealing
with. e.g Reebok targets fitness enthusiasts, it has expanded into clothes and
accessories from being a shoe manufacturer.

INCREASE PROFITABILITY: It affects the profitability of the firm. e.g. Nike, BMW
showrooms. One of the USPs of these brands is their segmentation. i.e they target
segments which donot bargain or negotiate. Thus their profitability is high.

BETTER COMMUNICATION: Communication cannot be possible without knowing target

market. By limiting the audience, one can choose magazines, websites, radio and TV
stations, events that those customers are more likely to hear, see, visit or attend. This
makes the marketing effort more economic and efficient.

Determining market opportunities: Market segmentation enables to identify market

opportunities. The marketer can study the needs of each segment in the light of current
offerings by the competitors. From such study, the marketer can find out the current
satisfaction of customers.

Developing marketing programmes: Companies can develop marketing programmes

and budgets based on a clearer idea of the response characteristics of specific market
segments. They can budget funds to different segments depending on their buying
response.

Efficient use of resources: By tailoring marketing programme to individual market

segments, management can do a better marketing job and make more efficient use of
the marketing resources.

Assist in distribution strategies: Segmentation also assists in adopting suitable

distribution strategies. Different market segments may require different distribution mix.
For example, if the product is of very high quality intended to target the upper class,
then it must be distributed at prestigious outlets located at selective places.

Product life cycle (PLC)

Any product being launched has its own life, goes through different cycles. All products go
through the main four stages which are introduction, growth, maturity and decline and this
process is known as the product life cycle.
A product has a life of its own and goes through cycles. Although different products have
different types of life cycles, the traditional product life cycle for most products. If you are
considering entering an industry and making a product, knowing where the product is in its
life cycle can provide valuable information of how to position your product in the market in
terms of price, promotion and distribution.

Product development
At this stage of the product life cycle, research and design are being carried out to set up a
new product. There are different ideas that are being developed and tested and if an idea
seems to be reliable, a prototype of the product will be produced. After many tests are being
undertaken on the prototype, the firm will decide whether to launch the product or not. Most
of the time, some prototypes will fail and will not be able to make it to the next stage.
During the development stage, organizations have to take risk and costs and time are
massively spent while no revenue will be received.
Introduction
At this stage, the new product is being launched after development is complete. It is defined
as the products first appearance in the marketplace, before any sales or profits have been
made Customers first see or hear about the new product which is being displayed, for
example, in stores. An example of a product which is in the introduction stage is 3D TVs.
Several characteristics are associated to this stage.
Sales are low
and distribution are high

Costs incurred such as promotion

The Production process is new

or low

Profits are negative

Need to inform customers about the new product

Experiencing customers

Some strategies that organizations make use of during this stage are as follows:
Create product awareness and encourage product trial
Price skimming or price penetration
users and dealers
Build selective distribution outlets

Growth

Introduce basic products

Advertising and sales promotion to end-

The next stage is growth and occurs after a product has survived the introduction stage. It is
marked by rapid increase in sales and profits of the new product.
Some characteristics in this stage are as follows: Increase in sales Increase in
profits Early adopters like and buy the product Increase in competition
Some strategies that organizations make use of during this stage are as follows:
Maintain or improve the quality of the product Additional features are added to the product
New markets are targeted Lowering prices to attract more customers and establish
market share Mass media advertising to establish brand image

Maturity
The market becomes saturated in this stage. It is described as the stage in which sales
growth slows or levels off
Several characteristics are present at this stage: Most buyers are repeat ones
More intense competition Aggressive promotional and pricing strategies to capture market
share or maintain the market share Some products become more standardized

Decline
Decline is the last stage of the product life cycle and in this stage, sales are low, revenues
are decreased, investment is minimized, customers move to other products and some
companies even leave the industry.
Maintain the product, possibly rejuvenating it by adding new features and finding new uses.
Harvest the product reduce costs and continue to offer it, possibly to a loyal niche segment.
Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to
continue the product.
1.

Introduction 3D TVs

2.

Growth Blueray discs/DVR

3.

Maturity DVD

4.

Decline Video cassette

Holographic Projection:
Tablet PCs:
Laptops
Typewriters: