Fundamentals of Marketing: Concepts, Environment & Strategies

Posted on Feb 24, 2026 in Marketing

Definition and Scope of Marketing

Marketing means identifying customer needs and wants and satisfying them profitably by providing the right product, at the right price, at the right place, and at the right time. The scope of marketing is very wide. It includes product planning and development, pricing decisions, promotion, advertising, sales promotion, distribution, branding, packaging, warehousing, transportation, after-sales services, customer relationship management, and customer satisfaction. Marketing applies to goods, services, ideas, people, places, and organizations.

Core Concepts of Marketing

The core concepts of marketing include:

  1. Needs, wants, and demands. Needs are basic human requirements such as food and shelter. Wants are needs shaped by culture and society. Demands are wants supported by purchasing power.
  2. Products. Products refer to anything that can satisfy a need or want.
  3. Value and satisfaction. Value and satisfaction refer to the comparison between benefits and costs.
  4. Exchange. Exchange is the act of obtaining a product by offering something in return.
  5. Markets. Markets consist of buyers and sellers.
  6. Relationships. Relationships focus on building long-term customer loyalty.

Marketing Environment

Marketing environment refers to internal and external forces that affect marketing decisions. The internal environment includes management, employees, and company policies. The external environment is divided into micro and macro environments.

  1. Micro environment: Includes customers, suppliers, competitors, intermediaries, and public.
  2. Macro environment: Includes demographic, economic, political, legal, technological, social, and cultural factors.

Marketing Research

Marketing research is the systematic collection, analysis, and interpretation of data related to marketing problems. It helps in understanding customer behavior, identifying market opportunities, forecasting demand, analyzing competition, and reducing risks. Marketing research can be:

  • Primary research: Surveys, interviews, and observation.
  • Secondary research: Books, journals, reports, and online sources.

Boston Consulting Group (BCG) Matrix

The BCG matrix is a portfolio planning tool used to analyze a firm’s products based on market growth rate and relative market share:

  1. Stars: High growth and high market share; require heavy investment.
  2. Cash Cows: High market share but low growth; generate stable cash flows.
  3. Question Marks: High growth but low market share; risky.
  4. Dogs: Low growth and low market share; may be discontinued.

Marketing Management Losses

Marketing management losses arise due to poor marketing planning, wrong pricing strategies, weak promotion, inefficient distribution, lack of market research, poor understanding of customer needs, intense competition, and outdated products. These losses reduce profitability and brand value.

Global Marketing

Global marketing means marketing products in more than one country. Companies must adapt their marketing strategies according to cultural differences, laws, economic conditions, and competition.

Challenges:

  1. Cultural differences
  2. Legal issues
  3. Currency risk

Benefits:

  1. Large market
  2. Higher profits

Rural Marketing

Rural marketing refers to the marketing of products and services in rural areas. It involves understanding rural consumer behavior, low income levels, seasonal demand, limited infrastructure, and local promotion strategies.

Features:

  1. Low income
  2. Price-sensitive customers
  3. Strong local culture

Challenges:

  1. Poor infrastructure
  2. Low literacy

Strategic Planning

Strategic planning is the process of setting long-term goals and developing strategies to achieve them. The process includes defining mission and vision, conducting SWOT analysis, setting objectives, formulating strategies, implementing plans, and monitoring performance. Strategic planning helps in growth and competitive advantage.

Buying Decision Process

The buying decision process includes:

  1. Problem recognition
  2. Information search
  3. Evaluation of alternatives
  4. Purchase decision
  5. Post-purchase behavior

Customer satisfaction after purchase influences repeat buying.

Factors Affecting Buyer Decisions

Buyer decisions are influenced by:

  1. Cultural factors: Culture and social class.
  2. Social factors: Family and reference groups.
  3. Personal factors: Age, income, occupation, and lifestyle.
  4. Psychological factors: Motivation, perception, learning, beliefs, and attitudes.

Consumer Adoption Process

The consumer adoption process explains how consumers accept new products. The stages include awareness, interest, evaluation, trial, and adoption. Adoption depends on innovation, price, and usefulness.

Consumer Adoption

Consumer adoption refers to the decision of an individual to become a regular user of a new product. Adoption is influenced by relative advantage, compatibility, complexity, trialability, and observability.

E-Marketing and Mobile Marketing

E-marketing involves marketing through digital platforms such as websites, social media, email marketing, search engines, and online advertisements. It provides global reach, low cost, fast communication, and better customer interaction.

Mobile marketing is marketing through mobile phones using:

  1. SMS
  2. Apps
  3. Push notifications
  4. Mobile ads

Bases of Market Segmentation

Consumer market segmentation bases include geographic, demographic, psychographic, and behavioral segmentation.

Business market segmentation includes industry type, company size, location, buying behavior, and usage rate.

STP: Segmentation, Targeting, Positioning

STP means dividing the market into groups (segmentation). Targeting involves selecting suitable segments. Positioning involves creating a strong product image in the minds of consumers.

Marketing Mix (4Ps)

Marketing mix consists of product, price, place, and promotion.

  • Product: Refers to quality and features.
  • Price: Refers to pricing policies.
  • Place: Refers to distribution channels.
  • Promotion: Includes advertising and sales promotion.

Multilevel Marketing (MLM)

Multilevel marketing (MLM) is a system where distributors earn income from:

  1. Product sales
  2. Sales made by people they recruit

Customer Value and Satisfaction

Customer value = benefits − cost. Customer satisfaction depends on how well the product meets expectations. Satisfied customers lead to:

  1. Repeat purchase
  2. Loyalty
  3. Positive word of mouth