UNIT 1

INTRODUCTION TO
MARKETING
 Introduction to Marketing: Definition, features, advantages and scope
of marketing. The 4Ps and 4Cs of marketing. Marketing v/s Selling.
 Marketing as an activity and function.
 Concepts of Marketing: Needs, wants and demands, transactions,
transfer and exchanges.
 Orientations of a Firm: Production concept; Product concept; selling
concept and marketing concept, social relationship, Holistic marketing.

1.1 INTRODUCTION TO MARKETING

Marketing is a process by which individual and organisations obtain their needs and want
through creating and exchanging value. It is a process which consists of understanding consumers’
needs and wants, building customer relationship and capturing value from customers to create
profits and customer quality.
Marketing is typically seen as a task of
creating, promoting and delivering goods and
services to businesses and consumers. The
various entities in marketing are:
 Goods: Constitutes commodities,
food products, clothing, housing, etc.
 Services: Such as airlines, hotels,
car rental firms, banking, maintenance
and repairs, rentals, etc.
 Experience: A classic example is Walt Disney World Magic Kingdom, super star
Virgo cruise, climbing Mount Everest, visit to Hard Rock Cafe, etc.

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 2 PRINCIPLES OF MARKETING

 Events: Marketers promote their products at trade shows, sports events and company
anniversaries, artistic performance, etc.
 Persons: Mainly celebrity marketing. For Example: artists, musicians, physician etc.
 Places: Every city or country markets. Further example: commercial banks, local
business associations, real estate agents, economic development specialists etc.
 Properties: Are intangible rights of ownership of either real property (real estate) or
financial property (stocks, bonds etc.).
 Organisations: Actively work to build a strong, favourable and unique image in the
minds of their target publics. For example: Universities, museums, performing arts
organisations and non-profit organisations, etc.
 Information: Can be produced and marketed as a product through magazines,
encyclopaedias, newspapers etc. in order to supply information.
 Ideas: Every market offering includes a basic idea. “In the factory, we make cosmetics;
in the store we sell hope.”

1.1 (a) Definitions

According to the American Marketing Association (AMA) 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.”
The Chartered  Institute  of  Marketing defines  Marketing as “the management process
responsible for identifying, anticipating and satisfying customer requirements profitably.”
Social definition of Marketing according to Philip Kotler is “a societal process by which
individuals and groups obtain what they need and want through creating, offering, and freely
exchanging products and services of value with others.”
Philip Kotler and others define Marketing Management as “the art and science of choosing
target markets and getting keeping, and growing customers through creating, delivering, and
communicating superior customer value.”
In other words for a company to have steady and uninterrupted growth, marketing can be
defined as: it is not a function of the organisation but it is the foundation and nucleus of the
business as a whole. (Shown in a chart form below)

CUSTOMERS COMPANY

 Needs  Attitude
 Wants  Policy
 Demands  Procedure
 Expectation  System
 Services  Technology
 INTRODUCTION TO MARKETING 3

1.1 (b) Features of Marketing

Following are the features of marketing:
1. Systematic Process: Marketing is systematic in nature. The main aim of marketing is
to satisfy the needs and wants of the customers by bringing into the right products.
The process of marketing involves:
 Designing the product as per customer requirements.
 Fixing up the right price of product.
 Defining an effective promotion strategy of the product.
 Distribution of the right products at the right place and at the right time. The
marketing process is taken on to accomplish organisational objectives (profits,
market share, etc.), and to generate customer satisfaction. Distribution of the right
products at the right place and at the right time.
The marketing process is continuous in nature. Firstly, it starts with the marketing
research. Then after the sale of the product it comes on to customer feedback and
later on sales and services of the product.
2. Marketing is a regular and continuous activity: Marketing is a continuous activity
in which goods and services are manufactured and distributed to consumers. Assembling,
grading, packaging, transportation, warehousing, etc. are supplementary to marketing
and are useful for smooth and orderly conduct of marketing operations.
3. Marketing is both art and science: Art refers to a specific skill that is required in
marketing activities of any type of business. Science refers to a systematic body of
knowledge, based on facts and principles. The concept of marketing includes a bunch
of social sciences such as economics, sociology, psychology and law. It indicates
market operations based on some principles. Hence, marketing is an art as well as a
science.
4. Ideas, Goods and Services: Marketing involves selling of goods and services and
also new ideas. The marketing process involved following things:
 Designing and distribution of goods like FMCG products and consumer durables
by the marketers.
 Selling of services such as airlines, hotels, insurance, banks, etc. by the marketers.
 Ideas are also marketed by social and Govt. organisations, which includes campaigns
relating to anti-drugs, AIDS awareness, anti-corruption, etc.
In fact, every market offering includes a basic idea. A marketer of a face cream sells
the idea of a beautiful person and that of a soft drink sells the idea of refreshment.
5. Objective-oriented: All marketing activities are objective-oriented. Different objectives
are fixed at different levels, but the main objective is to earn profit from business
4 PRINCIPLES OF MARKETING

along with the satisfaction of human wants. Marketing activities undertaken by sellers
make an attempt to find out the weaknesses in the existing system, and measures are
taken to improve the shortfalls so that the objectives are achieved. The marketing
objectives are as follows:
 Increase in the profits
 Increase in the market stake
 Improved corporate image
 Enhanced brand loyalty
 Improved brand image, etc.
6. Marketing Environment: Marketing activities are influenced by economic policies,
market conditions, and environmental factors, such as political, technological, demographic
and international. Marketing activities are inseparable from such environmental factors.
A successful marketer needs to adapt to these changing factors and adjust marketing
strategies to suit new market developments.
For instance, a marketer must analyse the marketing-mix adopted by the competitors.
Accordingly, he has to design products that offer a differential advantage to the consumers,
which may bring higher returns to the firm.
7. Integrated approach: The marketing activities must be co-ordinated with other functional
areas of an organisation. Functions such as production, finance, research, purchasing,
storekeeping and public relations (PR) are to be integrated with marketing. This will
help in achieving organisational objectives. Otherwise, it will result in organisational
conflicts.
8. Customer satisfaction: A customer expects some services or benefits from the product
for which payment is made. If this benefit is more than the amount paid, then the
customer is satisfied. In the long run, customer satisfaction helps to retain market
demand. It helps achieve organisational objectives. Customer satisfaction can be enhanced
by providing value-added services, which includes providing additional facilities at
little or no extra cost.
9. All Pervasive: The marketing process is not only applicable to business organisation
but as well as to non-business organisations. For instance, an educational institution
may adopt marketing approach to:
 Suggest the right courses to the students (product).
 Charge the appropriate fees to the students (price).
 Promotion of courses to the students (if so required).
 Provide the courses to the student at the right time and place.
 INTRODUCTION TO MARKETING 5

10. Commercial and non-commercial organisations: With the societal marketing concept
gaining importance, social marketers are finding useful new ways of applying marketing
principles. Commercial organisations are also adopting cause-related marketing to
strike long-term relations with consumers.
Business organisations such as educational institutions, hospitals, religious institutions
and charitable trusts have also found meaningful applications of marketing. Thus,
marketing is applicable to both business and non-business organisations.
11. Competitive Advantage: Effective marketing strategies help to survive in a competitive
market. Thus marketers should find unique and innovative ideas to compete in today’s
market. They also need to be proactive and should possess timely decision-making
skills. They should come with:
 New and innovative designs or models.
 Advanced Creative promotion plans.
 Effective customer relationship techniques, etc.
The proactive decisions give competitive advantage to professional marketers.
12. Wide in scope: The concept of marketing is wide/comprehensive. It is not concerned
merely with selling of goods but with other functional areas of business such as production,
finance and personnel.
13. Precedes and follows production: Production and marketing are closely related activities.
Goods are produced for marketing. Here, marketing follows production. In addition,
marketing suggests what consumer wants and production is adjusted accordingly.
Here, production follows marketing.

1.1 (c) Advantages of Marketing

Marketing is vital, concerning the link between producers and consumers. Thus it has
been playing an important role in each and every sector of the society. It is primarily responsible
for keeping the wheels of production and consumption constantly moving. Marketing is also
very beneficial for the transfer, exchange, and movement of goods. Marketing management
today is the most important function in a commercial and business enterprise. The following
factors will help you to understand the importance of marketing management in this competitive
world:
1. Widens the Market: Marketing identifies the wants of consumers, creates new demand,
locates the untapped areas and finds out the possibilities of selling new products. It
thus enlarges the market, provides convenience to consumers and enables the producers
to increase production and earn more profits.
2. Facilitates Exchanges in the Ownership and Possession of Goods and Services:
Marketing creates time, place and possession utilities for the goods and services. It is
6 PRINCIPLES OF MARKETING

helpful to both producers and consumers. Producers come to know about the specific
needs and preferences of the people and the customers about the products that manufacturers
can offer.
3. Helps in Optimal Utilisation of Resources: As the marketing efforts widen the area
of market, the producers can utilise their resources, otherwise remaining partly utilised,
to the maximum. This optimum use of resources reduces the total cost per unit.
4. Accelerates Other Activities: Marketing accelerates so many other activities such
as banking, transport, insurance, warehousing, etc. get a boost as they are needed
more to help in the marketing process.
5. Raises the Standard of Living: Continuous production improves the skill of the
workers. In addition, marketing process provides new varieties of quality goods to
customers. It facilitates production as per the needs of consumers and supplies such
production to consumers. This raises the standard of living of the people. It is the
marketing which has converted “Yesterday’s luxuries into today’s necessaries”.
6. Creates employment opportunities: In India nearly 40% of the population is engaged
in marketing activities directly or indirectly. Large numbers of people are engaged in
Market research, Wholesale Trade, Retail Trade, Transportation, Warehousing,
Advertisement, Publicity and Promotion. Thus marketing provides employment
opportunities to society.
7. Marketing Stabilises the Economic Conditions: Marketing not only sets the economy
revolving but also provides steady and stable economic conditions. It bridges the gap
between producer and consumers. It is a connecting belt between the two wheels of
the economy of a nation, i.e., the production and the consumption. Marketing, by
balancing production with consumption; provides stable prices, full employment and
a strong economy.
8. Ensures organisation survival, growth and stability: Marketing is one major revenue
generating source of a firm. It raises the turnover and profit of a business unit. A
firm’s survival, growth and stability are dependent on its ability to market the products
efficiently. Marketing is thus one challenging function of management. Marketing
helps companies achieve their objectives because it is customer-centric. Marketing
helps in satisfying customers beyond their expectations.
9. Meets consumer needs and wants: Needs pre-exist in market. Marketers identify
the needs of the consumer and adopt their marketing strategies accordingly. They
influence wants, as these are shaped by cultural and individual personalities. Their
needs are satisfied through the exchange process.
10. Promotes awareness among the public: Marketing enables the customers to become
aware about the various products that are available in the market. A firm’s product
 INTRODUCTION TO MARKETING 7

must be known to the potential buyers for it to succeed. If there was no marketing or
advertising, the customers would not know about the products. A company must capitalise
on marketing activities so as not to miss the opportunity of being discovered. Attempts
should be made to reach as many customers as possible and tell them what the company
has to offer with the help of effective marketing strategies.
11. Helps in boosting sales: Once the prospects become aware about the company’s
products or services it boosts up the chances that customers will make a purchase.
New customers also start to spread the word, informing their friends and family about
the company’s product and consequently company’s sales starts to increase rapidly.
No matter what a company is selling, it will generate sales once the people come to
know about it through TV advertisements, commercials, newspaper advertisements,
etc. The more the people see and hear about a new product, the more inclined they
will be to buy it.
12. Builds company reputation: Marketing helps to build brand name recognition or
product recall and hence enables the customers to relate the brand name with the
images, logos and captions that they see or hear in advertisements. When the company
is able to satisfy the expectation of its customers, its reputation stand on a concrete
ground. And once a company succeeds in establishing its name, its business will
grow and expand and more and more customers will start purchasing its products and
services.
13. Helps in fostering healthy competition: Marketing promotes a climate of healthy
competition in the marketplace. It helps to position the company as being superior to
its rivals so that the customers will prefer its products rather than buying from other
firms that sell similar products and services. Competition drives the firms to invest in
research and development in order to produce better quality and innovative products
and services. Thus marketing also helps to foster innovation.

1.1 (d) Scope of Marketing

Marketing has a very wide scope it covers all the activities from conception of ideas to
realisation of profits. The scope of marketing deals with the question, ‘what is marketed?’
According to Philip Kotler, marketing people are involved with ten types of entities which are
explained below:
1. Goods: Physical goods constitute the major part of a country’s production and marketing
effort. Companies market billions of food products, and millions of cars, refrigerators,
television, machines and various other mainstays of a modern economy.
2. Services: As economies advance, a large proportion of their activities are focused on
the production of services. Services include the work of airlines, hotels, car rental
firms, beauticians, software programmers, management consultants, and so on. Many
8 PRINCIPLES OF MARKETING

market offerings consist of a mix of goods and services. For example, a restaurant
offers both goods and services.
3. Events: Marketers promote events. Events can be trade shows, company anniversaries,
entertainment award shows, local festivals, health camps, and so on. For example,
global sporting events such as the Olympics or Common Wealth Games are promoted
aggressively to both companies and fans.
4. Experiences: Marketers create experiences by offering a mix of both goods and services.
A product is promoted not only by communicating features but also by giving unique
and interesting experiences to customers. For example, Maruti Sx4 comes with Bluetooth
technology to ensure connectivity while driving; similarly residential townships offer
landscaped gardens and gaming zones. So does a “theme-based restaurant” that creates
the ambience of a village in Rajasthan and Gujarat.
5. Persons: Due to a rise in testimonial advertising, celebrity marketing has become a
business. All popular personalities such as film stars, TV artists, and sportspersons
have agents and personal managers. They also tie up with PR agencies for better
marketing of oneself.
6. Places: Cities, states, regions, and countries compete to attract tourists. Today, states
and countries are also marketing places to factories, companies, new residents, real
estate agents, banks and business associations. Place marketers are largely real estate
agents and builders. They are using mega events and exhibitions to market places.
The tourism ministry is also aggressively promoting tourist spots locally and globally.
7. Properties: Properties can be categorised as real properties or financial properties.
Real property is the ownership of real estates, whereas financial property relates to
stocks and bonds. Properties are bought and sold through marketing. Marketing enhances
the need of ownership and creates possession utility. With improving income levels
in the economy, people are seeking better ways of saving money. Financial and real
property marketing need to build trust and confidence at higher levels.
8. Organisations: Organisations actively work to build image in the minds of their
target public. The PR department plays an active role in marketing an organisation’s
image. Marketers of the services need to build the corporate image, as exchange of
services does not result in the ownership of anything. The organisation’s goodwill
promotes trust and reliability. The organisation’s image also helps the companies in
the smooth introduction of new products.
9. Information: Information can be produced and marketed as a product. Educational
institutions, encyclopaedias, non-fiction books, specialised magazines and newspapers
market information. The production, packaging, and distribution of information are a
major industry. Media revolution and increased literacy levels have widened the scope
of information marketing.
 INTRODUCTION TO MARKETING 9

10. Idea: Every market offering includes a basic idea. Products and services are used as
platforms for delivering some idea or benefit. Social marketers widely promote ideas.
Maruti Udyog Limited promoted safe driving habits, need to wear seat belts, need to
prohibit children from sitting near the driver’s seat, and so on.
The scope of marketing can be more elaborated from the below mentioned points as per
the market situation;
 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 study the 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, and market segmentation, and 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
programmes.
 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 from 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 within 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.
 10 PRINCIPLES OF MARKETING

1.1 (e)(i) 4 Ps of Marketing-Mix

Product

Price Marketiing
Place
Mix

Promotions

Marketing Mix is the core of an organisation’s marketing system. Marketing Mix refers
to the marketing variables that combine to sell a product to the target market.
The marketing mix has been defined as the “set of marketing tools that the firm uses to
pursue its marketing objectives in the target market”. — Philip Kotler
“The basis of marketing operations is the co-ordination of four key variables, namely:
product, price, place and promotion”. — E. Jerome McCarthy
“Marketing Mix is the term that is used to describe the combination of the four inputs
that constitute the core of a company’s marketing system: the product, the price structure, the
promotion activities, and the distribution system”. — William Stanton

Elements of Marketing-Mix
 INTRODUCTION TO MARKETING 11

Marketing Mix is one of the most fundamental concepts in marketing management. For
attracting consumers and for sales promotion, every manufacturer has to concentrate on four
basic elements/components. These are: product, pricing, distributive channels (place) and sales
promotion techniques. A fair combination of these marketing elements is called Marketing
Mix.
The marketing mix simply refers to the planned mix of the controllable elements of a
product’s marketing plan. The traditional marketing mix comprises of 4 Ps — Product, Price,
Promotion and Place and these elements are usually referred to as the 4Ps. However, nowadays,
the marketing mix increasingly includes several other Ps like Packaging, Positioning, People
and even Politics as vital mix elements.
In 1981, Bernard H. Booms and Mary J. Bitner further developed the traditional marketing
mix, i.e., 4 Ps developed by the American Professor of Marketing Jerome McCarthy into the
extended marketing mix or services marketing mix which includes People, Physical Evidence
and Process. This Service Marketing Mix is also called the 7P model or the 7 Ps of Booms and
Bitner. This Service Marketing Mix strategy extends the original marketing mix model from
four to seven elements. While Jerome McCarthy has only defined four verifiable marketing
elements, the 7Ps are an extension as a result of which this services marketing mix can also be
applied in service companies and knowledge intensive environments.
Marketing Mix is the blending of four inputs (4 Ps) which form the core of marketing
system. This marketing mix is marketing manager ’s tool for achieving marketing objectives/
targets. The marketing manager has to use the four elements of marketing mix in a rational
manner to achieve his marketing objectives in terms of volume of sales and consumer support.

MARKETING
PRODUCT MIX PLACE

Quality Channels
Features Coverage
Design Locations
Style TARGET MARKET Transport
Brand
Packaging
Lable PRICE PROMOTION
Services
Warranties Advertising
Pricing strategy
Discounts Personal selling
Allowances Sale promotion
Payment period Publicity
Credit items Pubic relations
Handling charges Displays
Credit cards
 12 PRINCIPLES OF MARKETING

Thus, adjustments are usually made to each of these four elements until a perfect blend
that adequately caters to the needs of the customers and at the same time generates optimum
revenue is obtained.
1. Product: A product is an item that satisfies a need or a desire. This can be a physical
item, a service or a virtual offering. A product or a service is what the customer buys.
In fact, the consumer does not buy just the physical product; he buys solutions to his
problems, or hopes of satisfying his wants and needs. A product must be designed to
solve buyer’s problems and add to his satisfaction. The various products sub-variables
are:- Product line, quality, style, size, model, design, features, brand name, trademark,
packaging, warranties, after-sales service, etc.
A successful product has to fulfil a specific need in the market. Functionally, it must
be able to perform its function as promised. There also needs to be clear communication
to users and potential customers regarding its benefits and features. Branding is another
important feature for a product. Developing a product into a brand helps foster customer
loyalty and recall and differentiates itself in the market.
Managing product component involves product planning and development. Here, the
decisions are required to be taken regarding product range, branding, packaging, labelling
and other features of the product. The product manufactured for market should be as
per the needs and expectations of consumers.
Product is the most powerful competing instrument in the hands of the marketing
manager and should not be neglected. If the product is not sound /attractive to the
customers, no amount of sales promotion, appropriate channel selection or price reduction
will help to achieve the marketing target. Hence, durability, quality, uses, etc. of the
product are important from the marketing point of view.
Product strategies must take the other three elements of the marketing mix into consideration.
Price, distribution and promotion enhance the attraction of a marketable product.
2. Price: Price is one more critical component of marketing mix. Price is the exchange
value of the product at which the seller is willing to sell and buyer is willing to buy.
The price charged for the product must be good enough to bring returns to the company
and at the same time reasonable enough to convince the customers to buy the product.
If it is too high, customers may prefer competitors product and if it is too low, the
firm may not achieve returns and customers also equate low price to low quality.
While fixing price; factors such as cost, demand, competition, nature of the product,
government regulations, etc. are to be considered by the company. The price variables
includes: List price, discounts, credit terms, instalment facilities, pricing strategy,
etc.
 INTRODUCTION TO MARKETING 13

Pricing has an important bearing on the competitive position of a product. The marketing
manager may use pricing as a tool for achieving the targeted market share or sales
volume. Pricing can also be used for capturing market and also for facing market
competition effectively.
Pricing decisions and policies have direct influence on the sales volume and profits
of the firm. Market price of a product also needs periodical review and adjustments.
The price charged should be high enough to give adequate profit to the company but
low enough to motivate consumers to purchase product. It should also be suitable to
face market competition effectively.
3. Promotion: Promotion is the persuasive communication about the product offered
by the manufacturer to the prospect. A well promoted product can be easily sold in
the market. Promotional activities are required to build a good rapport with the consumers
and also develop a good name for the company. A promotional mix involves a ‘push
or pull’ strategy to generate sales.
A push strategy involves marketing efforts (primarily personal selling and trade promotion)
directed at channel intermediaries (wholesalers and retailers) to induce them to order
and stock the product and promote it to the end users.
A pull strategy involves marketing efforts (advertising and consumer promotion) directed
at end users to induce them to ask intermediaries for the product and thus induce the
intermediaries to order the product from the seller.
The promotion mix includes variables such as: Personal selling/salesmanship, advertising
and publicity, public relations, direct marketing, sales promotional tools and techniques
such as offering gifts, free samples, coupons, contest discounts, after sales service,
etc.
Promotional activities are necessary for large scale marketing and also for facing
market competition effectively. Such activities are varied in nature and are useful for
establishing reasonably good rapport with the consumers.
4. Place: This refers to distribution. Physical distribution is the delivery of goods at the
right time and at the right place to consumers. Physical distribution of product is
possible through channels of distribution which are many and varied in character.
The marketer must select, motivate and link various intermediaries so that the products
and services reach efficiently to the target market. The marketing manager has to
select and manage the channels of distribution through which the products will reach
the right market at the right time and develop a distribution system for physically
handling and transportation of the products. The distribution mix includes variables
such as: Marketing intermediaries, target market, channel motivation, transportation,
inventory control, warehousing, etc.
 14 PRINCIPLES OF MARKETING

For large-scale distribution, the services of wholesalers, retailers and other marketing
intermediaries are required. A marketing manager has to select a channel which is
convenient, economical and suitable for the distribution of a specific product.
For instance, large numbers of outlets are required for the distribution of products of
mass consumption such as soaps and oils. On the other hand, for the marketing of
speciality products like refrigerators and TV sets, selective distribution through authorised
dealers is quite convenient.
A Marketing Mix Example

For example: Let us go through a marketing mix example of a popular beauty and skin care company.
At first, the company targeted older individuals who need to keep their skin looking younger forever.
However, after an intense research, they later discovered that young people need to be catered for
too. That led to the development of a beauty and skin care product catered to young people. In
accordance to all the elements of the marketing mix strategy, the company identified the product,
priced it correctly, did tremendous promotions and availed it to the customers. This marketing mix
example belongs to Nivea, one of the most renowned companies in the beauty and skin care niche.
Following these rules clearly has managed to make the company untouchable by all the other
competitors in the market. This makes Nivea, the giant we know and love today!

1.1 (e) (ii) 4 Cs of Marketing

In 1990, Robert Lauterborn proposed an alternative to the 4Ps Marketing Mix, known as
the 4Cs of marketing. The 4Ps Marketing Mix is a business oriented model, which includes
product, price, promotion and place. The newer 4Cs of marketing model was meant to be a
more consumer-orientated version. It includes Consumer, Cost, Communication and Convenience.
It focuses the marketer on targeting niches rather than mass markets.
The 4Ps and 4Cs can be taken as two sides of the same coin, with one being a buyer’s
perspective and the other, a seller’s. The traditional 4Ps model of marketing represents supply-
side or seller-centric, whereas, the 4Cs model of marketing represents demand-side or customer-
centric. But considering the marketing mix from a 4C perspective is not just an exercise in
semantics. Instead, it reflects a change in mindset to encourage marketers and executives to
view their entire process and value chain from the customer’s point of view.