Marketing Management: Ommerce Classes

KD COMMERCE CLASSES
Marketing Management
Umakant Annand(UGC NET Commerce, MCom, MBA)
UGC NET Commerce & Management
2019
DADDY COOL, HARDOI ROAD BALAGANJ LUCKNOW

Topic – 1 Concept of marketing
Marketing is the study and management of exchange relationships. Marketing is the business process of creating
relationships with and satisfying customers. With its focus on the customer, marketing is one of the premier
components of business management
Philip Kotler defines marketing as Satisfying needs and wants through an exchange process.
The marketing concept is the strategy that firms implement to satisfy customers needs, increase sales, maximize
profit and beat the competition. There are five marketing concepts that organizations adopt and execute.
The Five Concepts under Marketing

1) The Production Concept.
This concept is the oldest of the concepts in business. It holds that consumers will prefer products that
are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high
production efficiency, low costs, and mass distribution. They assume that consumers are primarily
interested in product availability and low prices. This orientation makes sense in developing countries,
where consumers are more interested in obtaining the product than in its features.
2) The Product Concept.

This orientation holds that consumers will favour those products that offer the most quality, performance,
or innovative features. Managers focusing on this concept concentrate on making superior products and
improving them over time. They assume that buyers admire well-made products and can appraise quality
and performance. However, these managers are sometimes caught up in a love affair with their product
and do not realize what the market needs. Management might commit the “better-mousetrap” fallacy,
believing that a better mousetrap will lead people to beat a path to its door.
3) The Selling Concept.

This is another common business orientation. It holds that consumers and businesses, if left alone, will
ordinarily not buy enough of the selling company’s products. The organization must, therefore,
undertake an aggressive selling and promotion effort. This concept assumes that consumers typically
sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also assumes that the company
has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms
practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than
make what the market wants.
4) The Marketing Concept. This is a business philosophy that challenges the above three business
orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational
goals (goals of the selling company) consists of the company being more effective than competitors in
creating, delivering, and communicating customer value to its selected target customers. The marketing
concept rests on four pillars: target market, customer needs, integrated marketing and profitability.
5) The Societal Marketing Concept.

This concept holds that the organization’s task is to determine the needs, wants, and interests of target
markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is
the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves
or enhances the consumer’s and the society’s well-being.
Comparison Chart
BASIS FOR
SELLING CONCEPT MARKETING CONCEPT
COMPARISON
Meaning Selling concept is a business notion, which Marketing concept is a business orientation
states that if consumers and businesses which talks about accomplishing
remain unattended, then there will not be organizational goals by becoming better than
ample sale of organization's product. others in providing customer satisfaction.
2 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

BASIS FOR
SELLING CONCEPT MARKETING CONCEPT
COMPARISON
Associated with Compelling consumer's mind towards Directing goods and services towards
goods and services. consumer's mind.
Starting point Factory Target Market
Focuses on Product Customer needs
Perspective Inside-out Outside-in
Essence Transfer of title and possession Satisfaction of consumers
Business Planning Short term Long term
Orientation Volume oriented Profit oriented
Means Heavy selling and promotion Integrated marketing
Price Cost of Production Market determined
Approaches to Marketing
1) Product approach in studying marketing
The focus here is the product. Everything about a product is studied in this approach. A detailed study
will be made on the nature of the product, the source of supply, the pricing pattern, the kind
of promotional tool used, packing, brand selection, the middlemen in the market and so on.
2) Functional Approach in studying marketing

In this approach the functions of marketing become the target of study. Each of the functions of
marketing, namely, buying, assembling, selling, transport, standardization, grading, storage and
warehousing, financing, risk-taking and market information will be analyzed in detail.
3) Institutional Approach in studying marketing

The institutions engaged in the field of marketing become the focal point of such an approach. There are a
number of institutions that are involved in marketing activity. These include manufacturers, wholesalers,
retailers, transport organizations, warehouses and so on.
4) Decision-making Approach in studying marketing

Decisions help to find solutions to problems. Problems faced by marketers are caused by both
controllable and uncontrollable factors.
5) Legal Approach in studying marketing

This approach considers only the legal aspects of marketing. A number of laws have been enacted in
India to safeguard the interests of both the buyers and sellers.
The Sale of Goods Act, The Consumer Protection Act, The Essential Commodities Act, Prevention of
Food Adulteration Act, The Monopolies and Restrictive Trade Practices Act (MRTP) are some of the
laws concerned with marketing.
6) Economic Approach in studying marketing

The economic aspects affecting marketing get priority in such an approach. There are a number of
economic concepts like cost, revenue, competition, demand and supply that affect marketing. There can
be a study, for example, on the impact of competition on price.
7) Systems approach in studying marketing

A system is an organized body of identifiable independent parts. These parts are called the sub-systems.
For example, the human body as a whole is a system and the various parts of the body, i.e., heart, brain,

eyes, ears and nose are the sub-systems. If business as a whole is a system, production, finance and
marketing are the sub-systems.
Topic – 2 Marketing Channels

Marketing Channels can be defined as the set of people, activities, and the intermediary organizations that play a
crucial role in transferring the ownership of the goods from the point of production or manufacturing to the point
of consumption. Basically, they are the various channels or platforms through which the products reach to the
consumers or the end-users. They are also known as the distribution channels.
4 types of Marketing Channels

1) Manufacturer to Consumer
This is one of the most simple and effortless types of the Marketing Channels as the goods produced
reach to the consumers directly from the house of manufacturer. It works as cost-effective and profitable
for both the parties involved as there is no further involvement of the middlemen such as retailer,
wholesalers, and agents that charge their commission increasing the overall price of the products.
Example of this marketing channel : There are many bakeries and handmade chocolatier brands that
directly sell their confections to their customers through their shop, eating joint, or home delivery through
the orders placed on the website or social media handles of the bakery owners or chocolatiers.
2) Manufacturer to Retailer to Consumer

This type of Marketing Channels is one of the highly adopted and preferred channels in the industry. The
manufacturers who specialize in the manufacturing of the shopping goods such as shoes, furniture, and
fashion apparels amongst others opt for this Marketing Channel.
3) Manufacturer to Wholesaler to Consumer

This category of Marketing Channel is usually adopted by the consumers who are looking out for bulk
purchases of the specific items and procuring the same from the wholesaler works out quite easy and cost
effective for them owing to the economies of scale factor plus no involvement of other intermediaries.
The wholesaler reduces the cost to the consumer such as service cost or sales force cost making the items
available to the consumer at cheaper rates.
Example of this marketing channel : Shopping from the factory outlets of the brand or warehouse clubs
where the consumer has to sign for the membership with the wholesaler in order to buy the products at
cheaper rates.
4) Manufacturer to Agent to Wholesaler to Retailer to Consumer

This type of Marketing Channel involves more than one middlemen or intermediary making the goods
reach to the consumers. The agents or the middlemen helps and assists with the sale of the goods and
charge their commission from the manufacturer. They are quite helpful when the goods need to reach the
consumers in a short span of time.
Marketing channel decisions are the most important decisions by management. One additional level if added to
the distribution channel, can increase costs like anything. Because you have to give margins to the distribution
channel so that they work for you.
Importance of Marketing Channels :

1) Information provider
The first and foremost aspect in the list of the importance of the Marketing Channels is that the
middlemen such as agents provide the vital and crucial market information to the manufacturer that helps
him to plan his production and other related business strategies accordingly. Developments in the market
such as the change in the preferences in the taste of the consumer, entry of new manufactures in the
market, shift in the government policies, and the various pricing points of the other manufacturers are
given to the manufacturer without any additional cost owing to their relationship and working association
with the manufacturer.
2) Stability of the price
Yet another important function that is performed by the middlemen is that they maintain the stability of
price by absorbing the increment along with keeping the overheads cost low and charge the consumers
with the old price of the products. Their main motive behind this strategy is to have a strong foothold in
the market due to the completion from the other middlemen in the market.
3) Promotion
Another aspect in the importance of Marketing Channels is that the middlemen perform the function of
promoting the goods of the manufacturer by planning and designing their own sales incentive and
customer loyalty programs to attain their sales targets and increased market share objectives. This
ultimately works for the benefit of the manufacturer and all the parties involved in the process.
4) Pricing strategy
As the middlemen and the agents are at the sales field on a daily basis and have a thorough knowledge
about the marketing dynamics and the customer preferences, many manufacturers ask for their suggestion
whilst deciding on the pricing of the various products. The pricing and the features of the products are
also customized for the different set of target markets and consumers along with the channel of
distribution.
5) Matching the demand and supply of the products
The main and significant function of the middlemen and commission agents in the Marketing Channels is
to match the demand and supply of the products in the target market. They should provide the
manufacturers with the crucial information on how to assemble the goods to match the taste and
preferences of the targeted consumers that result in the ease of sales and attainment of the sales objectives
of the manufacturer.
Important functions of a good marketing channel are as follows

1) Information Provider:
Middlemen have a role in providing information about the market to the manufacturer. Developments like
changes in customer demography, psychography, media habits and the entry of a new competitor or a
new brand and changes in customer preferences are some of the information that all manufacturers want.
Since these middlemen are present in the market place and close to the customer they can provide this
information at no additional cost.
2) Price Stability:
Maintaining price stability in the market is another function a middleman performs. Many a time the
middlemen absorb an increase in the price of the products and continue to charge the customer the same
old price. This is because of the intra-middlemen competition. The middleman also maintains price
stability by keeping his overheads low.
3) Promotion:
Promoting the product/s in his territory is another function that middlemen perform. Many of them design
their own sales incentive programmes, aimed at building customers traffic at the other outlets.
4) Financing:
Middlemen finance manufacturers’ operation by providing the necessary working capital in the form of
advance payments for goods and services. The payment is in advance even though the manufacturer may
extend credit, because it has to be made even before the products are bought, consumed and paid for by
the ultimate consumer.
5) Title:
Most middlemen take the title to the goods, services and trade in their own name. This helps in diffusing
the risks between the manufacturer and middlemen. This also enables middlemen to be in physical
possession of the goods, which in turn enables them to meet customer demand at very moment it arises.
6) Help in Production Function:

The producer can concentrate on the production function leaving the marketing problem to middlemen
who specialize in the profession. Their services can best utilized for selling the product. The finance,
required for organising marketing can profitably be used in production where the rate of return would be
greater.
7) Matching Demand and Supply:
The chief function of intermediaries is to assemble the goods from many producers in such a manner that
a customer can affect purchases with ease. The goal of marketing is the matching of segments of supply
and demand.
Topic – 3 Marketing mix

The marketing mix (also known as the 4 Ps) is a foundation model . The marketing mix has been defined as the
"set of marketing tools that the firm uses to pursue its marketing objectives in the target". Thus the marketing mix
refers to four broad levels of marketing decision, namely: product, price, promotion, and place. Marketing
practice has been occurring for millennia, but marketing theory emerged in the early twentieth century. The
contemporary marketing mix, or the 4 Ps, which has become the dominant framework for marketing management
decisions, was first published in 1960. In services marketing, an extended marketing mix is used, typically
comprising 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence. Occasionally
service marketers will refer to 8 Ps, comprising these 7 Ps plus performance
McCarthy's 4 Ps
The original marketing mix, or 4 Ps, as originally proposed by marketer and academic E. Jerome McCarthy,
provides a framework for marketing decision-making. McCarthy's marketing mix has since become one of the
most enduring and widely accepted frameworks in marketing.
Brief Outline of 4 Ps
Category Definition/ Explanation Typical Marketing Decisions
o Product design – features, quality
o Product assortment – product range, product
mix, product lines
A product refers to an item that satisfies the o Branding
consumer's needs or wants. o Packaging and labelling
Product
Products may be tangible (goods) or o Services (complementary service, after-sales
intangible (services, ideas or experiences). service, service level)
o Guarantees and warranties
o Returns
o Managing products through the life-cycle
Price refers to the amount a customer pays
for a product.
Price may also refer to the sacrifice o Price strategy
consumers are prepared to make to acquire o Price tactics
a product. o Price-setting
Price
(e.g. time or effort) o Allowances – e.g. rebates for distributors
Price is the only variable that has o Discounts – for customers
implications for revenue. o Payment terms – credit, payment methods
Price also includes considerations
of customer perceived value.
o Strategies such as intensive distribution,
selective distribution, exclusive distribution
o Franchising;
Refers to providing customer access
o Market coverage
Place Considers providing convenience for
o Channel member selection and channel
consumer.
member relationships
o Assortment
o Location decisions

o Inventory
o Transport, warehousing and logistics
o Promotional mix - appropriate balance of
advertising, PR, direct marketing and sales
Promotion refers to marketing promotion
communications o Message strategy - what is to be
Promotion May comprise elements such communicated
as: advertising, PR, direct marketing o Channel/ media strategy - how to reach the
and sales promotion. target audience
o Message Frequency - how often to
communicate
o Product refers to what the business offers for sale and may include products or services. Product decisions
include the "quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees,
life cycles, investments and returns".
o Price refers to decisions surrounding "list pricing, discount pricing, special offer pricing, credit payment or
credit terms". Price refers to the total cost to customer to acquire the product, and may involve both monetary
and psychological costs such as the time and effort spended in acquisition.
o Place is defined as the "direct or indirect channels to market, geographical distribution, territorial coverage,
retail outlet, market location, catalogues, inventory, logistics and order fulfilment". Place refers either to the
physical location where a business carries out business or the distribution channels used to reach markets.
Place may refer to a retail outlet, but increasingly refers to virtual stores such as "a mail order catalogue, a
telephone call centre or a website".
o Promotion refers to "the marketing communication used to make the offer known to potential customers and
persuade them to investigate it further". Promotion elements include "advertising, public relations, direct
selling and sales promotions.
Modified and expanded marketing mix: 7 Ps

By the 1980s, a number of theorists were calling for an expanded and modified framework that would be more
useful to service marketers. The prospect of expanding or modifying the marketing mix for services was a core
discussion topic at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built
on earlier theoretical works pointing to many important problems and limitations of the 4 Ps model. Taken
collectively, the papers presented at that conference indicate that service marketers were thinking about a revision
to the general marketing mix based on an understanding that services were fundamentally different to products,
and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps,
comprising the original 4 Ps plus process, people and physical evidence, as being more applicable for services
marketing.
Outline of the Modified and Expanded Marketing Mix
Category Definition/ Explanation Typical Marketing Decisions
o Facilities (e.g. furniture, equipment,
access)
o Spatial layout (e.g. functionality,
The environment in which service occurs. efficiency)
The space where customers and service o Signage (e.g. directional signage,
personnel interact. symbols, other signage)
Physical
Tangible commodities (e.g. equipment, o Interior design (e.g. furniture, color
evidence
furniture) that facilitate service performance. schemes)
Artifacts that remind customers of a service o Ambient conditions (e.g. noise, air,
performance. temperature)
o Design of livery (e.g. stationery,
brochures, menus, etc.)
o Artifacts: (e.g. souvenirs, mementos, etc.)

Human actors who participate in service
o Staff recruitment and training
delivery.
o Uniforms
Service personnel who represent the
o Scripting
People company's values to customers.
o Queuing systems, managing waits
Interactions between customers.
o Handling complaints, service failures
Interactions between employees and
o Managing social interactions
customers.
o Process design
o Blueprinting (i.e. flowcharting) service
processes
o Standardization vs customization
decisions
o Diagnosing fail-points, critical incidents
and system failures
The procedures, mechanisms and flow of
Process o Monitoring and tracking service
activities by which service is delivered.
performance
o Analysis of resource requirements and
allocation
o Creation and measurement of key
performance indicators (KPIs)
o Alignment with Best Practices
o Preparation of operations manuals
o People are essential in the marketing of any product or service. Personnel stand for the service. In the
professional, financial or hospitality service industry, people are not producers, but rather the products
themselves. When people are the product, they impact public perception of an organization as much as any
tangible consumer goods. From a marketing management perspective, it is important to ensure that employees
represent the company in alignment with broader messaging strategies. This is easier to ensure when people
feel as though they have been treated fairly and earn wages sufficient to support their daily lives.
o Process refers to a "set of activities that results in delivery of the product benefits". A process could be a
sequential order of tasks that an employee undertakes as a part of their job. It can represent sequential steps
taken by a number of various employees while attempting to complete a task. Some people are responsible for
managing multiple processes at once. For example, a restaurant manager should monitor the performance of
employees, ensuring that processes are followed. They are also expected to supervise while customers are
promptly greeted, seated, fed, and led out so that the next customer can begin this process.
o Physical evidence refers to the non-human elements of the service encounter, including equipment, furniture
and facilities. It may also refer to the more abstract components of the environment in which the service
encounter occurs including interior design, colour schemes and layout. Some aspects of physical evidence
provide lasting proof that the service has occurred, such as souvenirs, mementos, invoices and other livery of
artifacts.[According to Booms and Bitner's framework, the physical evidence is "the service delivered and any
tangible goods that facilitate the performance and communication of the service".Physical evidence is
important to customers because the tangible goods are evidence that the seller has (or has not) provided what
the customer was expecting.
Lauterborn's 4 Cs (1990)
Robert F. Lauterborn proposed a 4 Cs classification in 1990.His classification is a more consumer-orientated
version of the 4 Ps that attempts to better fit the movement from mass marketing to niche marketing:
4 Ps 4 Cs Definition
A company will only sell what the consumer specifically wants to buy. So,
Consumerwants
Product marketers should study consumer wants and needs in order to attract them one by
and needs
one with something he/she wants to purchase.
Price is only a part of the total cost to satisfy a want or a need. The total cost will
Price Cost consider for example the cost of time in acquiring a good or a service, a cost of
conscience by consuming that or even a cost of guilt "for not treating the kids". It

reflects the total cost of ownership. Many factors affect cost, including but not
limited to the customer's cost to change or implement the new product or service
and the customer's cost for not selecting a competitor's product or service.
While promotion is "manipulative" and from the seller, communication is
"cooperative" and from the buyer with the aim to create a dialogue with the
potential customers based on their needs and lifestyles. It represents a broader
Promotion Communication
focus. Communications can include advertising, public relations, personal
selling, viral advertising, and any form of communication between the
organization and the consumer
In the era of Internet,catalogues, credit cards and phones, consumers neither need
to go anywhere to satisfy a want or a need nor are they limited to a few places to
satisfy them. Marketers should know how the target market prefers to buy, how to
Place Convenience be there and be ubiquitous, in order to guarantee convenience to buy. With the rise
of Internet and hybrid models of purchasing, Place is becoming less relevant.
Convenience takes into account the ease of buying the product, finding the
product, finding information about the product, and several other factors.
Shimizu's 4 Cs: in the 7Cs Compass Model

After Koichi Shimizu proposed a 4 Cs classification in 1973, it was expanded to the 7Cs Compass Model to
provide a more complete picture of the nature of marketing in 1979. The 7Cs Compass Model is a framework
of co-marketing (commensal marketing or Symbiotic marketing). Also the Co-creative marketing of a company
and consumers are contained in the co-marketing. Co-marketing (collaborate marketing) is a marketing practice
where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is
frequently confused with co-promotion. Also commensal (symbiotic) marketing is a marketing on which both
corporation and a corporation, a corporation and a consumer, country and a country, human and nature can live.
The 7Cs Compass Model comprises:

(C1) Corporation – The core of 4 Cs is corporation (company and non profit organization). C-O-S
(competitor, organization, stakeholder) within the corporation. The company has to think
of compliance and accountability as important. The competition in the areas in which the company competes with
other firms in its industry.
The 4 elements in the 7Cs Compass Model are:
"P"
category "C" category (broad) "C" definition
(narrow)
(Latin derivation: commodus=convenience, happiness) : Co-creation.
Product (C2) Commodity
The goods and services for consumers or citizens.
(Latin derivation: constare= It makes sacrifices) : There is not only
Price (C3) Cost
producing cost and selling cost but purchasing cost and social cost.
(Latin derivation: communis=sharing of meaning) : marketing
communication : Not only promotion but communication is important.
Promotion (C4) Communication Communications can include advertising, sales promotion, public
relations, publicity, personal selling, corporate identity, internal
communication, SNS, MIS.
Place (C5) Channel (Latin derivation: canal) : marketing channels. Flow of goods.
The compass of consumers and circumstances (environment) are:
(C6) Consumer – (Needle of compass to consumer)
The factors related to consumers can be explained by the first character of four directions marked on
the compass model. These can be remembered by the cardinal directions, hence the name compass model:
o N = Needs
o S = Security
o E = Education: (consumer education)
o W = Wants
(C7) Circumstances – (Needle of compass to circumstances )

In addition to the consumer, there are various uncontrollable external environmental factors encircling the
companies. Here it can also be explained by the first character of the four directions marked on
the compass model:
o N = National and International (Political, legal and ethical) environment
o S = Social and cultural
o E = Economic
o W = Weather
Topic – 4 Market segmentation

Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of
existing and potential customers, into sub-groups of consumers (known as segments) based on some type of
shared characteristics. In dividing or segmenting markets, researchers typically look for common characteristics
such as shared needs, common interests, similar lifestyles or even similar demographic profiles. The overall aim
of segmentation is to identify high yield segments – that is, those segments that are likely to be the most profitable
or that have growth potential – so that these can be selected for special attention (i.e. become target markets)
Definition and brief explanation

Market segmentation is the process of dividing up mass markets into groups with similar needs and wants. The
rationale for market segmentation is that in order to achieve competitive advantage and superior performance,
firms should: "(1) identify segments of industry demand, (2) target specific segments of demand, and (3) develop
specific 'marketing mixes' for each targeted market segment. " From an economic perspective, segmentation is
built on the assumption that heterogeneity in demand allows for demand to be disaggregated into segments with
distinct demand functions.[
History
➢ Fragmentation (pre-1880s): The economy was characterised by small regional suppliers who sold
goods on a local or regional basis
➢ Unification or mass marketing (1880s–1920s): As transportation systems improved, the economy
became unified. Standardised, branded goods were distributed at a national level. Manufacturers tended
to insist on strict standardisation in order to achieve scale economies with a view to penetrating markets
in the early stages of a product's lifecycle. e.g. the Model T Ford
➢ Segmentation (1920s–1980s): As market size increased, manufacturers were able to produce different
models pitched at different quality points to meet the needs of various demographic
and psychographic market segments. This is the era of market differentiation based on demographic,
socio-economic and lifestyle factors.
➢ Hyper-segmentation (post-1980s): a shift towards the definition of ever more narrow market segments.
Technological advancements, especially in the area of digital communications, allow marketers to
communicate with individual consumers or very small groups. This is sometimes known as one-to-
one marketing.
Market segmentation strategy

Main Strategic Approaches to Segmentation
Number of
Segmentation strategy Comments
segments
Undifferentiated
Zero Mass marketing: no segmentation
strategy
Niche marketing: focus efforts on a small, tightly defined target
One Focus strategy
market
Multiple niches: focus efforts on 2 or more, tightly defined
Two or more Differentiated strategy
targets
One-to-one marketing: customise the offer for each individual
Thousands Hypersegmentation
customer

Bases for segmenting consumer markets
Segmentation base Brief explanation of base (and example) Typical segments
e.g. Young, Upwardly-mobile, Prosperous,
Quantifiable population characteristics. (e.g. Professionals (YUPPY); Double Income No
Demographic age, gender, income, education, socio- Kids (DINKS); Greying, Leisured And
economic status, family size or situation). Moneyed (GLAMS); Empty- nester, Full-
nester
Physical location or region (e.g. country, e.g. New Yorkers; Remote, outback
Geographic
state, region, city, suburb, postcode). Australians; Urbanites, Inner-city dwellers
Geo-
Combination of geographic & demographic e.g. Rural farmers, Urban professionals,
demographic or
variables. 'sea-changers', 'tree-changers'
geoclusters
Lifestyle, social or personality e.g. Socially Aware; Traditionalists,
Psychographics characteristics. (typically includes basic Conservatives, Active 'club-going' young
demographic descriptors) professionals
Purchasing, consumption or usage e.g. Tech-savvy (aka tech-heads); Heavy
behaviour. (e.g. Needs-based, benefit- users, Enthusiasts; Early adopters, Opinion
Behavioural
sought, usage occasion, purchase frequency, Leaders, Luxury-seekers, Price-conscious,
customer loyalty, buyer readiness). Quality-conscious, Time-poor
The same consumer changes in their e.g. Actively shopping, just entering into a
attractiveness to marketers based on context life change event, being physically in a
Contextual and
and situation. This is particularly used in certain location or at a particular retailer
situational
digital targeting via programmatic bidding which is known from GPS data via
approaches smartphones.
Geographic segmentation
Geographic segmentation divides markets according to geographic criteria. In practice, markets can be segmented
as broadly as continents and as narrowly as neighborhoods or postal codes. Typical geographic variables include:
➢ Country e.g. Brazil, Canada, China, France, Germany, India, Italy, Japan, UK, US
➢ Region e.g. North, North-west, Mid-west, South, Central
➢ Population density: e.g. central business district (CBD), urban, suburban, rural, regional
➢ City or town size: e.g. under 1,000; 1,000–5,000; 5,000–10,000 ... 1,000,000–3,000,000 and over
3,000,000
➢ Climatic zone: e.g. Mediterranean, Temperate, Sub-Tropical, Tropical, Polar
Demographic segmentation
Segmentation according to demography is based on consumer- demographic variables such as age, income,
family size, socio-economic status, etc. Demographic segmentation assumes that consumers with similar
demographic profiles will exhibit similar purchasing patterns, motivations, interests and lifestyles and that these
characteristics will translate into similar product/brand preferences.In practice, demographic segmentation can
potentially employ any variable that is used by the nation's census collectors. Typical demographic variables and
their descriptors are as follows:
➢ Age: e.g. Under 5, 5–8 years, 9–12 years, 13–17 years, 18–24, 25–29, 30–39, 40–49, 50–59, 60+
➢ Gender: Male, Female
➢ Occupation: Professional, self-employed, semi-professional, clerical/ admin, sales, trades, mining,
primary producer, student, home duties, unemployed, retired
➢ Socio-economic: A, B, C, D, E, or I, II, III, IV or V (normally divided into quintiles)
➢ Marital Status: Single, married, divorced, widowed
➢ Family Life-stage: Young single; Young married with no children; Young family with children under 5
years; Older married with children; Older married with no children living at home, Older living alone
➢ Family size/ number of dependants: 0, 1–2, 3–4, 5+
➢ Income: Under $10,000; 10,000–20,000; 20,001–30,000; 30,001–40,000, 40,001–50,000 etc.
➢ Educational attainment: Primary school; Some secondary, Completed secondary, Some university,
Degree; Post graduate or higher degree
➢ Home ownership: Renting, Own home with mortgage, Home owned outright

➢ Ethnicity: Asian, African, Aboriginal, Polynesian, Melanesian, Latin-American, African-American,
American Indian etc.
➢ Religion: Catholic, Protestant, Muslim, Jewish, Buddhist, Hindu, Other
Psychographic segmentation
Psychographic segmentation, which is sometimes called psychometric or lifestyle segmentation, is measured by
studying the activities, interests, and opinions (AIOs) of customers. It considers how people spend their leisure,
and which external influences they are most responsive to and influenced by. Psychographics is a very widely
used basis for segmentation, because it enables marketers to identify tightly defined market segments and better
understand consumer motivations for product or brand choice.
While many of these proprietary psychographic segmentation analyses are well-known, the majority of studies
based on psychographics are custom designed. That is, the segments are developed for individual products at a
specific time. One common thread among psychographic segmentation studies is that they use quirky names to
describe the segments.[
Behavioural segmentation
Behavioural segmentation divides consumers into groups according to their observed behaviours. Many marketers
believe that behavioural variables are superior to demographics and geographic for building market segments and
some analysts have suggested that behavioural segmentation is killing off demographics. Typical behavioural
variables and their descriptors include:
➢ Purchase/Usage Occasion: e.g. regular occasion, special occasion, festive occasion, gift-giving
➢ Benefit-Sought: e.g. economy, quality, service level, convenience, access
➢ User Status: e.g. First-time user, Regular user, Non-user
➢ Usage Rate/Purchase Frequency: e.g. Light user, heavy user, moderate user
➢ Loyalty Status: e.g. Loyal, switcher, non-loyal, lapsed
➢ Buyer Readiness: e.g. Unaware, aware, intention to buy
➢ Attitude to Product or Service: e.g. Enthusiast, Indifferent, Hostile; Price Conscious, Quality Conscious
➢ Adopter Status: e.g. Early adopter, late adopter, laggard
Topic – 5 Market targeting

Market targeting is a process of selecting the target market from the entire market. Target market consists of
group/groups of buyers to whom the company wants to satisfy or for whom product is manufactured, price is set,
promotion efforts are made, and distribution network is prepared
Definitions:
Market is segmented using certain bases, like income, place, education, age, and life cycle, and so on. Out of
them, a few segments are selected to serve them. Thus, evaluating and selecting some market segments can be
said as market targeting. The quoted definitions are not available.
We can define the term as:

➢ Market targeting is a process of selecting the target market from the entire market. Target market consists
of group/groups of buyers to whom the company wants to satisfy or for whom product is manufactured,
price is set, promotion efforts are made, and distribution network is prepared.
➢ It involves basically two actions – evaluation of segments and selection of the appropriate market
segments. In this relation, market targeting can be defined as: Market targeting is an act of evaluating and
selecting market segments.
➢ Finally, we define market targeting as: Market targeting consists of dividing the total market into
segments, evaluating these segments, and selecting the appropriate segments as the target market.
Procedure of Market Targeting:

Market targeting procedure consists of two steps:
1. Evaluating Market Segments:
Evaluation of market segments calls for measuring suitability of segments. The segments are evaluated with
certain relevant criteria to determine their feasibility.

To determine overall attractiveness/suitability of the segment, two factors are used:
i. Attractiveness of Segment:
In order to determine attractiveness of the segment, the company must think on characteristics/conditions which
reflect its attractiveness, such as size, profitability, measurability, accessibility, actionable, potential for growth,
scale of economy, differentiability, etc. These characteristics help decide whether the segment is attractive.
ii. Objectives and Resources of Company:
The firm must consider whether the segment suit the marketing objectives. Similarly, the firm must consider its
resource capacity. The material, technological, and human resources are taken into account. The segment must be
within resource capacity of the firm.
2. Selecting Market Segments:

When the evaluation of segments is over, the company has to decide in which market segments to enter. That is,
the company decides on which and how many segments to enter. This task is related with selecting the target
market. Target market consists of various groups of buyers to whom company wants to sell the product; each
tends to be similar in needs or characteristics.
Philip Kotler describes five alternative patterns to select the target market. Selection of a suitable option depends
on situations prevailing inside and outside the company.
Topic – 6 Positioning
Positioning: refers to an overall strategy that "aims to make a brand occupy a distinct position, relative to
competing brands, in the mind of the customer"
Positioning is closely related to the concept of perceived value. In marketing, value is defined as the difference
between a prospective customer's evaluation of the benefits and costs of one product when compared with others.
Value can be expressed in numerous forms including product benefits, features, style, value for money.
Differentiation vs positioning
Differentiation is closely related to the concept of positioning. Differentiation is how a company's product is
unique, by being the first, least expensive, or some other distinguishing factor. A product or brand may have
many points of difference, but they may not all be meaningful or relevant to the target market. Positioning is
something (a perception) that happens in the minds of the target market whereas differentiation is something that
marketers do, whether through product design, pricing or promotional activity.[
Strategies
Approaches Example
Pre-emptive positioning
Smith's Chips - the original and still the best
(Being the first to claim a benefit or feature)
Superlative positioning
(Being the best or exhibiting some type of The burgers are better at Hungry Jack's
superiority)
Exclusive positioning
XYZ Ltd - a Fortune 500 company
(Being a member of an exclusive club or group)
Positioning within a category
Within the prestige car category, Volvo is the safe alternative
(Strong registration of both category and brand)
Positioning by competitor strategy
Avis - we're number two, so we try harder
(Use competitor's strategy as a reference point)
Positioning according to product benefit(s)
(Emphasise a problem, need or benefit where the Toothpaste with whitening, tartar control or enamel protection
firm (or mutltiple benefits)
can offer superior satisfaction)
Positioning according to product attribute Dove is one-quarter moisturiser
Positioning for usage occasion Cadbury Roses Chocolates—for gift giving or saying, 'Thank-
(Can be associated with seasonal products) you'
Positioning along price lines A premium brand or an economy brand

Johnson & Johnson range of baby products (e.g., No Tears
Positioning for a user or user group
Shampoo)
Australia's Easter Bilby (as a culturally appropriate alternative
Positioning by cultural symbols to
the Easter Bunny) used as the shape of Easter chocolates
Topic – 7 Product concept

Product concept is the understanding of the dynamics of the product in order to showcase the best qualities and
maximum features of the product. Marketers spend a lot of time and research in order to target their attended
audience. Marketers will look into a product concept before marketing a product towards their customers.
While the "product concept" is based upon the idea that customers prefer products that have the most quality,
performance, and features, some customers prefer a product that is simpler and easier to use.
A product line is a group of products that a company creates under a single brand. The products are similar and
focus on the same market sector. Maybe their function or channel distribution are the same or similar. Perhaps
their physical attributes, prices, quality, or type of customers are the same. We call the activity product lining.
For instance: Amul offers a series of closely related products such as milk, butter, ghee, dahi, yoghurt, ice
cream, srikhand, Gulab jamun, flavoured milk, chocolate, etc.
“A product line is a group of related products produced by one manufacturer. For example, products that are
intended to be used for similar purposes or to be sold in similar types of shops.”
Some examples of companies with multiple product lines are Proctor & Gamble (P&G), Indian Tobacco
Company (ITC), Hindustan Unilever Limited (HUL), etc.
Product Line Extension

When a new product is introduced by the company which is a quite different from the company’s current range of
products is called Product line extension. It expands the choice of the customers under a single brand. The
merits of product line extension are:
1) Risk: The risk of new product development reduces when the new variant is launched to the existing product
line. The present customers are familiar with the existing product line and if a new product offers the same
quality and fulfils the needs of the customers, that it claims, then it results in the reduction of risk
2) Customer Loyalty: When a company extends its product line by introducing a varied product, the customers
will choose the company’s product over its competitors which will help in maintaining customer loyalty.
3) Market expansion: It is obvious that the extension in the product line will widen the choice of customers and
thus increase market share. The company can also offer higher and low price version to cater different
customer segments, which meets customer requirements.
4) Branding: Customers are likely to buy the product offered by an existing and familiar brand. Nevertheless,
branding becomes difficult when the company offers low-priced line products, as it may harm the parent
brand if less quality is offered. In such a case it is better to offer a low-priced product with different brand
name.
5) Product versions: Introducing a number of versions of a single product, is considered as low-risk strategy,
wherein each version may have some additional or reduced features, as compared to the basic one. This may
help in attracting more and more customers.
Product Mix
Definition: The Product Mix also called as Product Assortment, refers to the complete range of products that is
offered for sale by the company. In other words, the number of product lines that a company has for its
customers is called as product mix.
The product mix has four dimensions: Breadth, Length, Depth, and Consistency. The Breadth of a product
mix shows the different kinds of product lines that firm carries. Simply, it shows the number of items in the
product line. This dimension of the product mix represents the extent to which the activities of the firm are
diversified. In the example below, there are 4 product lines that show the width of the ITC.

The Length of a Product mix refers to the number of items in the product mix. In the example below the length
is 11. As in the foods line, the number of items is 3, in cigarettes is 3 and so on.. On adding all the items, we get
the length of a product.
The Depth of a product mix refers to the variants of each product in the product line. For example, in the
example below, curry, pastes, biryanis, conserves, etc. shows the depth of the foods product line.

The Consistency of a product mix shows the extent to which the product lines are closely related to each other
in terms of their end-use, distribution requirements, production requirements, price ranges, advertising media, etc.
In the above example, it is clear that ITC’s product lines are less consistent as these perform different functions
for the buyers.
Topic – 7 Product life-cycle

The concept of product life cycle (PLC) concerns the life of a product in the market with respect to
business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves
many professional disciplines, and requires many skills, tools and processes. PLC management makes the
following three assumptions:
o Products have a limited life and thus every product has a life cycle.
o Product sales pass through distinct stages, each posing different challenges, opportunities, and problems
to the seller.
o Products require different marketing, financing, manufacturing, purchasing, and human resource
strategies in each life cycle stage.
Once the product is designed and put into the market, the offering should be managed efficiently for the buyers to
get value from it. Before entering into any market complete analysis is carried out by the industry for both
external and internal factors including the laws and regulations, environment, economics, cultural values and
market needs. From the business perspective, as a good business, the product needs to be sold before it finishes its
life. In terms of profitability, expiry may jolt the overall profitability of the business therefore there are few
strategies, which are practiced to ensure that the product is sold within the defined period of maturity.
Extending the product life cycle

Extending the product life cycle by improving sales, this can be done through
1) Advertising: Its purpose is to get additional audience and potential customers.
2) Exploring and expanding to new markets: By conducting market research and offering the product (or
some adapted form of it) to new markets, it is possible to get more customers.
3) Price reduction: Many customers are attracted by price cuts and discount tags.
4) Adding new features: Adding value to the product catches the attention of many buyers.
5) Packaging: New, attractive, useful or eco-friendly packaging influence the target customers.
6) Changing customer consumption habits: Promoting new trends of consumption can increase the
number of customers.
7) Special promotions: Raising interest by offering Jackpot and other offers.
8) Heightening interest: Many of the following things attract many customers who match certain profiles:
Eco-friendly production processes, good work conditions, funding the efforts of non-profit organizations
(cancer cure, anti-war efforts, refugees, GLTBI, environment and animal protection, etc.) and the like.
Characteristics of PLC stages

There are the following major product life cycle stages:
Stage Characteristics
o This is the stage in which the product has been introduced first time in the market and
the sales of the product starts to grow slowly and gradually and the profit received
from the product is nominal and non-attained. The market for the product is not
competitive initially and also the company spends initially on the advertisement and
uses various other tools for promotion in order to motivate and produce awareness
1. Market among the consumers, therefore generating discerning demands for particular brand.
introduction The products start to gain distribution as the product is initially new in the market and
stage in this stage the quality of the product is not assured and the price of the product will
also be determined as low or high.[2]
o costs are very high
o slow sales volumes to start
o little or no competition
o demand has to be created

o customers have to be prompted to try the product
o makes little money at this stage
o In the growth stage, the product is visibly present in the market, the product has
habitual consumers, and there is quick growth in product sales. More new customers
are becoming aware of the product and trying it. The customers are becoming
satisfied with the product and are buying it again and again. The ratio of the product
repetition for the trial procurement has risen. Competitors have started to overflow
the market with more appealing and attractive inventions. This helps in creating
2. Growth stage increased competition in the market and also results in decreasing the product price.
o costs reduced due to economies of scale
o sales volume increases significantly
o profitability begins to rise
o public awareness increases
o competition begins to increase with a few new players in establishing market
o increased competition leads to price decreases
o In maturity stage, the cost of the product has been decreased because of the increased
volume of the product and the product started to experience the curve effects. Also,
more and more competitors have seen to be leaving the market. In this way very few
buyers have been left for the product and this results in less sales of the product. The
decline of the product and cost of attaining new buyers in this level is more as
compare to the resulted profit. The brand or the product differentiation via rebating
and discounts in price supports in recalling the outlet distribution. Also, there is a
decline in the entire cost of marketing through enhancing the distribution and
3. Maturity
promotional efficiency with switching brand and segmentation.
stage
o costs are decreased as a result of production volumes increasing and experience curve
effects
o sales volume peaks and market saturation is reached
o increase in competitors entering the market
o prices tend to drop due to the proliferation of competing products
o brand differentiation and feature diversification is emphasized to maintain or increase
market share
o industrial profits go down
o In this stage, the profit as well as the sales of the product has started to decline
because of the deletion of the product from the market. The market for the product in
this stage, started to show negative rate of growth and corroding cash flows. The
product at this stage may be kept but there should be fewer adverts.
4. Saturation o costs become counter-optimal
and decline o sales volume decline
stage o prices, profitability diminish
o profit becomes more a challenge of production/distribution efficiency than increased
sales
o Note: Product termination is usually not the end of the business cycle, only the end of
a single entrant within the larger scope of an ongoing business program.
Identifying PLC stages

Identifying the stage of a product is an art more than a science, but it's possible to find patterns in some of the
general product features at each stage. Identifying product stages when the product is in transition is very
difficult. More recently, it has been shown that user-generated contents (UGC) (e.g., in the form of online product
reviews) has the potential to reveal buyer personality characteristics that can in turn be used to identify product
life cycle stage.
Identifying Stages
features Introduction Growth Maturity Decline
Sales Low High High Low

Investment cost Very high High (lower than intro stage) Low Low
Competition Low or no competition High Very high Very High
Profit Low High High Low
Topic – 8 New product development

In business and engineering, new product development (NPD) covers the complete process of bringing a
new product to market. A central aspect of NPD is product design, along with various business considerations.
New product development is described broadly as the transformation of a market opportunity into a product
available for sale. The product can be tangible (something physical which one can touch) or intangible (like
a service, experience, or belief), though sometimes services and other processes are distinguished from
"products." NPD requires an understanding of customer needs and wants, the competitive environment, and the
nature of the market. Cost, time and quality are the main variables that drive customer needs. Aiming at these
three variables, innovative companies develop continuous practices and strategies to better satisfy customer
requirements and to increase their own market share by a regular development of new products. There are many
uncertainties and challenges which companies must face throughout the process. The use of best practices and the
elimination of barriers to communication are the main concerns for the management of the NPD
The product development process is articulated and broken down in many different ways, many of which often
include the following phases/stages:
1) Fuzzy front-end (FFE) is the set of activities employed before the more formal and well
defined requirements specification is completed. Requirements speak to what the product should do or have,
at varying degrees of specificity, in order to meet the perceived market or business need.
2) Product design is the development of both the high-level and detailed-level design of the product: which
turns the what of the requirements into a specific how this particular product will meet those requirements.
This typically has the most overlap with the engineering design process, but can also include industrial
design and even purely aesthetic aspects of design. On the marketing and planning side, this phase ends at
pre-commercialization analysis stage.
3) Product implementation often refers to later stages of detailed engineering design (e.g. refining mechanical
or electrical hardware, or software, or goods or other product forms), as well as test process that may be used
to validate that the prototype actually meets all design specifications that were established.
4) Fuzzy back-end or commercialization phase represent the action steps where the production and market
launch occur
NPD Process
1) New Product Strategy – Innovators have clearly defined their goals and objectives for the new product.
2) Idea Generation – Collective brainstorming through internal and external sources.
3) Screening – Condense the number of brainstormed ideas.
4) Concept Testing – Structure an idea into a detailed concept.
5) Business Analysis – Understand the cost and profits of the new product and determining if they meet
company objectives.
6) Product Development – Developing the product.
7) Market Testing – Marketing mix is tested through a trial run of the product.
8) Commercialization – Introducing the product to the public.
Topic – 9 Pricing Decision

Pricing is a process to determine what manufactures receive in exchange of the product. Pricing depends on
various factors like manufacturing cost, raw material cost, profit margin etc.
Objectives of Pricing
The main objectives of pricing can be learnt from the following points −
a) Maximization of profit in short run
b) Optimization of profit in the long run
c) Maximum return on investment

d) Decreasing sales turnover
e) Fulfil sales target value
f) Obtain target market share
g) Penetration in market
h) Introduction in new markets
i) Obtain profit in whole product line irrespective of individual product profit targets
j) Tackle competition
k) Recover investments faster
l) Stable product price
m) Affordable pricing to target larger consumer group
n) Pricing product or services that simulate economic development
Factors Influencing Pricing

Pricing of a product is influenced by various factors as price involves many variables. Factors can be categorized
into two, depending on the variables influencing the price.
A. Internal Factors
The following are the factors that influence the increase and decrease in the price of a product internally −
➢ Marketing objectives of company
➢ Consumer’s expectation from company by past pricing
➢ Product features
➢ Position of product in product cycle
➢ Rate of product using pattern of demand
➢ Production and advertisement cost
➢ Uniqueness of the product
➢ Production line composition of the company
➢ Price elasticity as per sales of product
Internal factors that influence pricing depend on the cost of manufacturing of the product, which includes fixed
cost like labor charges, rent price, etc., and variable costs like overhead, electric charges, etc.
B. External Factors
The following are the external factors that have an impact on the increase and decrease in the price of a product −
➢ Open or closed market
➢ Consumer behavior for given product
➢ Major customer negotiation
➢ Variation in the price of supplies
➢ Market opponent product pricing
➢ Consideration of social condition
➢ Price restricted as per any governing authority
External factors that influence price depend on elements like competition in market, consumer flexibility to
purchase, government rules and regulation, etc.
Pricing Methods
Let us now discuss the various pricing methods −
A. Cost plus Pricing
Cost plus pricing can be defined as the cost of production per unit of product plus profit margin decided by the
management.
Step 1 − (Calculation of average variable cost)
Step 2 − (Calculation of average fixed cost), i.e.,
AFC=TotalFixedCostUnitsOfOutputProductsAFC=TotalFixedCostUnitsOfOutputProducts
or,
AFC=TotalFixedCostExpectedUnitSalesAFC=TotalFixedCostExpectedUnitSales
Step 3 − (Determination of the desired profit margin)
Selling Price = Unit total cost + Desired unit profit
i.e., Selling Price = AVC + AFC + Mark up

i.e.,
Selling Price=Unit Total Cos1−(Desired Profit Margin Selling Price=Unit Total Cos1− (Desired Profit Margin
These are the steps one needs to follow to calculate cost plus pricing.
➢ Break Even Analysis
It is a point when the investment and revenue of an enterprise is equal; after this point an enterprise gains
profit.
➢ Prices Based on Marginal analysis
In this method, additional cost of that activity is compared to additional profit and the price is calculated
according to margin cost. Thus, the cost and price is evaluated and as per the result, the price is decided
so as to maximize the profit.
Pricing Policies and Strategies

It is essential to establish policies for pricing of its products or services or ideas just as it is for all the aspects of
business decision-making. Without definite price policies, each price decision is a time-consuming, tedious and a
pell-mell affair.
A policy frame-work should lead to pricing that is consistent with the company objectives, costs, competition and
demand for the product. A set of price policies and strategies will not only make price setting easier but also make
possible as series of prices at various levels of distribution that are rational and justifiable.
A. Price Variation Policies:
Price variation policies are those where in the firm attempts to vary the prices of its products with a view to match
them with the differing market needs. There can be three variations of such price variation policies.
These options open to the firm are:
1) Variable price policy.
2) Non-variable price policy and
3) Single price policy.
1) Variable Price Policy:

It is that policy in which the company charges different prices for sale of its like goods at a given time to
similar buyers purchasing in comparable quantities under similar conditions of sale. This is, prices
charged differ from buyer to buyer.
2) Non-Variable Price Policy:
It is also called as ‘one price’ policy because, the company charges similar price for sale of like goods at a
given time to a class of buyers purchasing in comparable quantities under similar conditions of sale. Here,
the price charged varies from class to class say, wholesalers, sub-wholesalers, retailers and distributors.
3) Single Price Policy:
It is that price policy wherein all the buyers irrespective of their class, size, or the conditions of purchases
are charged similar purchase price under similar conditions of sale. This is the price policy that has no
touch of discrimination and it is constructive in the sense that it helps in building goodwill.
B. Geographic Price Policies:

Geographical price policies are fully reflective of the practical problems of consumers and producers or the sellers
locating geographically and the emergent transportation costs of linking them. Take our own country where
production centres are highly concentrated while the consumption centres are widely dispersed.
Thus, the cities like Mumbai, Chennai, Calcutta, Delhi, Ahmadabad, Bangalore, Hyderabad where we have
industrial conglomeration while the demand for the products produced in these comes from far off places. Taking
transport costs as major thrust, pricing policies are designed.
The major geographical pricing policies are:
1) Point of origin price policy.
2) Freight absorption price policy.
1) Point of Origin Price Policy:
It is that type of geographic pricing policy in which a firm quotes ex- factory price and makes no
allowance for the transportation costs necessary to move the goods to the point of destination. There can
be two variations in this policy namely, ‘ex-factory’ and ‘free on rail’ (F.O.R).
2) Freight Absorption Price Policy:

Freight absorption price policy is one that absorbs the transportation costs fully or partly. That is, the
price quoted is inclusive of transportation costs. In other words, the buyers do not bear directly freight
and other transportation charges though the price includes such charges.
There can be three variations of this freight absorption price policy namely:
a) Uniform delivered price policy.
‘Uniform Delivered Price Policy’ is popularly known as ‘postage stamp’ price or ‘F.O.R. Destination’
price. It is one in which the firm absorbs full transportation costs and delivers the goods to all the buyers
at their ends at a uniform price irrespective of location and distance.
b) Zonal price policy

‘Zonal Price Policy’ is one under which the firm divides its markets into zones and quotes uniform prices
to all the buyers located in the identified zone. That is, the prices quoted will differ from zone to zone
rather than a single price all over the country. The price arrived at is the addition of average transportation
costs to the basic price.
c) Base point price policy.

‘Base Point Price Policy’ like zonal pricing policy it implies partial absorption of the transport costs by
the firm. However, the price is quoted by adding transport costs computed up to the buyers’ location by
reference to one geographic location, not necessarily the factory and that location is called as ‘base-
point’.
C. Price Differential Price Policies:

The price policies that involve price differentials are those the pricing firm accepts the gap between the price
‘quoted to the consumers or dealers and the actual price charged. Thus, price differential represents the
differences between the price quoted and the price charged to the buyer.
Such price differentials have been accepted as part of pricing strategies to encourage buyers, to meet competitive
pressure, to attain financial objective and finally to compensate the buyers for the loss of value satisfaction.
By ‘price differential’ we mean that the final price will be less than the quoted price. It is not always true because,
it may mean price hike too. Thus, discounts and rebates reduce the basic price quoted while warranty charges
might increase it that is they are the subtractions and additions to the price quoted. Therefore, the forms of price
differentials are discount rebates and premiums.
Discounts:
Discount is the price differential that reduces the quoted price so that the buyer pays much less than the quoted
price. Discount is an allowance made to the buyers in consideration on marketing services rendered. Discount can
be of three types namely, trade quantity and cash.
The merits of granting trade discount to the company are:
1. An attractive discount lures the intermediaries to operate in the channel.
2. Price can be differentiated without varying it so as to match it with customer demand elasticity.
3. Large discounts help in increasing the sales as the benefit of discount may be passed on to them also. The
only difficult aspect is how to assess the functions and the performance of intermediaries for fixing a
standard rate of discount.
D. Leader Price Policy:

Leader pricing is one where the firm in the industry initiates the price changes and these price changes are so
effective that other firms follow suit. It is the one of price approximation by followers to that of initiator in the
industry.
In marketing jargon the former is called as “price follower” and the latter as “price leader”. This pricing policy
works on the principle that there is some truth and wisdom in following the established and giant units.
E. Psychological Pricing:

Psychological pricing is to do with creating a typical consumer perception so that the consumer is made to buy the
product. That is, the prices fixed influence the psyche of customer and spur him to action. It is mostly the price
policy followed by consumer durables.
Thus, shoes companies in India have played with the consumer psychology by pricing say, Mocasin pair at Rs.
399.95 instead of pricing at Rs. 400.00 straight. It means two things; for the customer one that things are cheaper
and that the manufacturers are not exploiting the consumers because, they are true to the last paisa. It is an
advantage to the seller as it multiplies the sales.
F. New Product Pricing Policies:

Basically, price determination process involved in case of new products need not be very much different from
those of existing products. However, there are distinct price objectives involved in case of new products. Larger
latitude of pricing objectives is possible in case of new products; pricing flexibility is also greater.
There is growing competition and limited accepted prices when the new product is in the growth, maturity and
decline stage. Further, as product is yet to see light of the day, much depends on external factors.
In case of new products, there can be two possible price policies namely:
1. Skimming price policy and
2. Penetration price policy.
1. Skimming Price Policy:
Skimming price policy sets high initial price to first profit from price inelastic customers, and then successively
lowering the prices, often under increasing competitive conditions, to the levels that more price sensitive
customers are willing to pay. It sets introductory prices at high levels relative to costs to “skim the cream” off the
market.
This skimming pricing policy is going to be very successful under the following conditions:
1) Where the demand is relatively inelastic because, the customers know little about the product and close
rivals are few.
2) Where the market can be broken down into segments with different price elasticities of demand.
3) Where little is known about the cost or price elasticity of the product.
4) Where it is essential to minimise the risk as one can move down then move up in the prices. The
companies with high price tags ride the storms of depression easier than the cut-price merchants as their high
margins support them.
5) Where the firm is efforting to ‘up-market’ its product so as to improve further on quality, service and
expenditure on marketing costs and so capitalise on its efforts.
2. Penetration Price Policy:

As opposed to the concept of skimming price strategy, it is an attempt to set new product prices low relative to the
costs. It involves setting low initial price to establish market share, pre-empt the competitors and/or to capitalise
production economies. By setting low initial prices, the competitors are kept away and this makes possible for the
firm to enlarge its share by generating larger sales volume.
The conditions which favour penetration pricing policy are:
1) Where there is high price elasticity of demand. That is, the firm is depending on low prices to attract more
customers to new product.
2) Where large scale economies are possible, it is because, large sales volume means lower unit cost.
3) Where there is a strong threat of competition; here only a low price can ward off potential entrants to the
market.
4) Where there is unutilised capacity; it is because, the price policy that increases the demand has no
meaning unless the firm is in a position to meet the demand created.
5) Where market segments are not there so that high price may be accepted.
G. Promotional Pricing:
The intention of promotional pricing is to stimulate early purchase on the part of consumers.
Companies follow good many strategies to achieve this goal.
These are:
1. Loss Leader Pricing:

Most of the supermarkets and departmental stores reduce the prices of products on well known brands to attract
more and more customers to increase sales. This pays if the additional revenue.
Sales compensates for the lower margins on the loss-leader-items. Manufacturers of loss-leader brands generally
object to this practice because it can dilute the brand image and bring more complaints from retailers who charge
the list-price.
2. Special Event Pricing:

Sellers fix special prices in certain seasons and events to draw more customers. Mostly seasonal products make it
possible to make good margin. The event of reopening of schools and colleges in June, there good demand for
student’s needs. Even in case of eventful festivals, sellers make good margin and money by charging uniquely
higher and bargain prices. In India marriage season attracts people to buy gold and jewelleries and clothes
between Octobers to May.
3. Cash Rebates:
In case of consumer durable goods-especially white goods like two- wheelers, autos, cars, fans, fridges, washing
machines and home appliances including electronic goods, cash rebate is given.
4. Low or Zero Interest Financing:

Instead of cutting the product’s prices; the companies can offer goods at zero or low rate of interest the finance.
This is a credit transaction but there is a guarantee of recovery and hard sell goods are pushed off. This is very
much common in case of consumer durables. This helps the consumers too. Further, the investment inventories
are cut on the part of the manufacturers and distributors.
5. Longer Period Payments:

Consumers hesitate to buy products like cars, two wheelers, ready flats, and travelling. In such cases, they do not
mind paying comparatively higher rates of interest, but the period of payment is extended to make monthly
instalment quite handy. This is good proposal for both dealers and customers.
6. Warranties and Service Contracts:

We see that companies have been tempted to extend warranty period which never heard earlier. Thus, LG
Washing Machine has 7 year warranty. Asian paints have 8 year warranty. Similarly in case of TV sets and other
electronic goods warranty period is extended because of which consumers come forward to buy these products
without any hesitation. Added to this, they extend service contracts at reasonable costs.
7. Psychological Discounting:
One is aware of discounts from normal prices are legitimate form of promotional pricing. Now more and more
companies are adopting what is known as psychological discounting. It means that the price is originally at a high
level much more than that of normal. Later, high rate of discount is given, where the seller is at gain always.
Topic – 10 Promotion Mix

Definition: The Promotion Mix refers to the blend of several promotional tools used by the business to create,
maintain and increase the demand for goods and services.
he fourth element of the 4 P’s of Marketing Mix is the promotion; that focuses on creating the awareness and
persuading the customers to initiate the purchase. The several tools that facilitate the promotion objective of a
firm are collectively known as the Promotion Mix.
The Promotion Mix is the integration of Advertising, Personal Selling, Sales Promotion, Public Relations and
Direct Marketing. The marketers need to view the following questions in order to have a balanced blend of these
promotional tools.
➢ What is the most effective way to inform the customers?
➢ Which marketing methods to be used?
➢ To whom the promotion efforts be directed?
➢ What is the marketing budget? How is it to be allocated to the promotional tools?

Elements of Promotion Mix
1) Advertising is the paid presentation and promotion of ideas, goods, or services by an identified sponsor in a
mass medium. Examples include print ads, radio, television, billboard, direct mail, brochures and catalogs,
signs, in-store displays, posters, mobile apps, motion pictures, web pages, banner ads, emails.
2) Personal selling is the process of helping and persuading one or more prospects to purchase a good or service
or to act on any idea through the use of an oral presentation, often in a face-to-face manner or by telephone.
Examples include sales presentations, sales meetings, sales training and incentive programs for intermediary
salespeople, samples, and telemarketing.
3) Sales Promotion is media and non-media marketing communication used for a pre-determined limited time
to increase consumer demand, stimulate market demand or improve product availability. Examples include
coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows,
trade-ins, and exhibitions.
4) Public relations or publicity is information about a firm's products and services carried by a third party in an
indirect way. This includes free publicity as well as paid efforts to stimulate discussion and interest. It can be
accomplished by planting a significant news story indirectly in the media, or presenting it favorably
through press releases or corporate anniversary parties. Examples include newspaper and magazine articles,
TVs and radio presentations, charitable contributions, speeches, issue advertising, seminars.
5) Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to
communicate directly to the customer, with methods such as mobile messaging, email, interactive consumer
websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
6) Corporate image campaigns have been considered as part of the promotional mix.
7) Sponsorship of an event or contest or race is a way to generate further positive publicity.
8) Guerrilla marketing tactics are unconventional ways to bring attention to an idea or product or service, such
as by using graffiti, sticker bombing, posting flyers, using flash mobs, doing viral marketing campaigns, or
other methods using the Internet in unexpected ways.
9) Product placement is paying a movie studio or television show to include a product or service prominently
in the show.
10) Digital marketing is the marketing of products or services using digital technologies, mainly on the Internet,
but also including mobile phones, display advertising, and any other digital medium.

The Role Of Promotion Within The Marketing
1) Increase Brand Awareness
Promotions such as television, radio and magazine advertising increase brand awareness. More people
tend to learn about a particular company or its brands if they frequently see or hear about them. New
companies particularly have to advertise to apprise consumers who they are and what they offer. This is
true with local or even national companies, as brand awareness can be measured by market, regionally or
nationally. It can take many months or even years for companies to build brand awareness levels that
match established competitors.
2) Provide Information
Small companies also use promotions to provide information, notes KnowThis, a popular online business
reference site. Marketers may run press releases to apprise consumers that their products can help certain
ailments. A small consumer products manufacturer may use displays and pamphlets to describe the
benefits of a new health food. High-tech manufacturers often use in-store videos and demonstrations to
show people how to use their products. Promotions can inform people during all stages of the buying
process, including their initial search. Small business owners also use promotions to inform consumers
about price, product features and outlets that sell their products.
3) Increase Customer Traffic
Grocery stores, beauty salons and movie theaters use promotions such as frequency programs to increase
customer traffic. A frequency program promotion is designed to reward people the more they visit and
spend with a retailer. Most retailers start their frequency programs by having customers fill out an
application. They then issue cards for customers to use each time they make a purchase; the cards contain
magnetic strips that track purchases through registers and computers. Frequency card promotions are
designed primarily to attract traffic among current customers. New customers also may be attracted to the
promotion if they hear about it.
4) Build Sales and Profits
The primary objective in using promotions such as advertising, sales promotions and public relations is to
build sales. Promotions are designed to get people to try products and services. Promoting high-quality
products or services aims to get customers to return and spend more money. Ultimately, companies use
promotions to build a loyal customer base, which leads to greater sales and profits
Topic – 11 Advertising
Advertising is the action of calling public attention to an idea, good, or service through paid announcements by an
identified sponsor.
According to Kotler –
Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an
identified sponsor.
According to Advertising Association of the UK –
Advertising is any communication, usually paid-for, specifically intended to inform and/or influence one or
more people.
Characteristics Of Advertising
➢ Paid Form: Advertising requires the advertiser (also called sponsor) to pay to create an advertising
message, to buy advertising media slot, and to monitor advertising efforts.
➢ Tool For Promotion: Advertising is an element of promotion mix of an organization.
➢ One Way Communication: Advertising is a one way communication where a brands communicate to
the customers through different mediums.
➢ Personal Or Non-Personal: Advertising can be non-personal as in the case of TV, radio, or newspaper
advertisements, or highly personal as in the case of social media and other cookie based advertisements.
➢
Types Of Advertising
Advertising activities can be categorized into above the line, below the line, and through the line advertising
according to their level of penetration.
➢ Above the line advertising include activities that are largely non-targeted and have a wide reach. Examples
of above the line advertising are TV, radio, & newspaper advertisements.

➢ Below the line advertising include conversion focused activities which are directed towards a specific
target group. Examples of below the line advertising are billboards, sponsorships, in-store advertising, etc.
➢ Through the line advertising include activities which involve the use of both ATL & BTL strategies
simultaneously. These are directed towards brand building and conversions and make use of targeted
(personalized) advertisement strategies. Examples of through the line advertising are cookie based
advertising, digital marketing strategies, etc.
Advertising activities can also be categorized into 5 types based on the advertisement medium used. These types
of advertisements are:
o Print Advertising: Newspaper, magazines, & brochure advertisements, etc.
o Broadcast Advertising: Television and radio advertisements.
o Outdoor Advertising: Hoardings, banners, flags, wraps, etc.
o Digital Advertising: Advertisements displayed over the internet and digital devices.
o Product/Brand Integration: Product placements in entertainment media like TV show, YouTube video,
etc.
Objectives Of Advertising
There are 3 main objectives of advertising. These are:
1) To Inform
Advertisements are used to increase the brand awareness and brand exposure in the target market.
Informing the potential customers about the brand and its products is the first step towards attaining
business goals.
2) To Persuade
Persuading customers to perform a particular task is a prominent objective of advertising. The tasks may
involve buying or trying the products and services offered, to from a brand image, develop a favourable
attitude towards the brand etc.
3) To Remind
Another objective of advertising is to reinforce the brand message and to reassure the existing and
potential customers about the brand vision. Advertising helps the brand to maintain top of mind
awareness and to avoid competitors stealing the customers. This also helps in the word of mouth
marketing.
Other objectives of advertising are subsets of these three objectives. These subsets are:
➢ Brand Building
➢ Increasing Sales
➢ Creating Demand
➢ Engagement
➢ Expanding Customer Base
➢ Changing Customers’ attitudes, etc.
Importance Of Advertising
1) To The Customers
o Convenience: Targeted informative advertisements make the customer’s decision making process easier
as they get to know what suits their requirements and budget.
o Awareness: Advertising educates the customers about different products available in the market and their
features. This knowledge helps the customers compare different products and choose the best product for
them.
o Better Quality: Only brands advertise themselves and their products. There are no advertisements of
unbranded products. This ensures better quality to the customers as no brand wants to waste money on
false advertising.
2) To The Business
o Awareness: Advertising increases the brand and product awareness among the people belonging to the
target market.
o Brand Image: Clever advertising helps the business to form the desired brand image and brand
personality in the minds of the customers.

o Product Differentiation: Advertising helps the business to differentiate its product from those of
competitors’ and communicate its features and advantages to the target audience.
o Increases Goodwill: Advertising reiterates brand vision and increases the goodwill of the brand among
its customers.
3) Value For Money: Advertising delivers the message to a wide audience and tends to be value for money
when compared to other elements of promotion mix.
Advantages Of Advertising
1) Reduces Per Unit Cost: The wide appeal of advertisements increases the demand of the product which
benefits the organization as it capitalizes on the economies of scale.
2) Helps In Brand Building: Advertisements work effectively in brand building. Brands who advertise are
preferred over those which doesn’t.
3) Helps In Launching New Product: Launching a new product is easy when it is backed by an
advertisement.
4) Boosts Up Existing Customers’ Confidence In The Brand: Advertisements boosts up existing
customers’ confidence in the brand as they get a feeling of pride when they see an advertisement of the
product or the brand they use.
5) Helps In Reducing Customer Turnover: Strategic advertisements of new offers and better service helps
reduce customer turnover.
6) Attracts New Customers: Attractive advertisements helps the brand in gaining new customers and
expanding business.
7) Educates The Customers: Advertisements inform the customers about different products existing in the
market and also educates them in what they should look for in an apt product.
Disadvantages Of Advertising
1) Increases The Costs: Advertising is an expense to the business and is added to the cost of the product.
This cost is eventually borne by the end consumer.
2) Confuses The Buyer: Too many advertisements with similar claims often confuses the buyer in what to
buy and should he buy the product or not.
3) Is Sometimes Misleading: Some advertisements use smart strategies to mislead the customers.
4) Only For Big Businesses: Advertising is a costly affair and only big businesses can afford it. This makes
small businesses out of competition with big businesses who gets to enjoy a monopoly in the market.
5) Encourages The Sale Of Inferior Products: Effective advertisements even lead to the sale of inferior
products which aren’t good for the consumers.
Topic -12 Personal selling

Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting
a sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales
representatives develop scripts for all or part of the sales process. The sales process can be used in face-to-face
encounters and in telemarketing.
Different types of sales roles can be identified:

➢ Order takers refers to selling that occurs primarily at the wholesale or retail levels. Order processing
involves determining the customer needs, pointing to inventory that meets the customer needs and
completing the order.
➢ Order getters refers to the in-field sales activity where a sales representative travels to the client's home
or work place to makes a sales presentation in order to win new business or to maintain relations with
existing clients.
➢ Missionary selling is often seen as a sales support role. The missionary sales person distributes
information about products or services, describes product attributes and leaves materials but does not
normally close the sale. The missionary sales person often prepares the way for a field sales person. For

example, a pharmaceutical sales representative may call on doctors and leave samples, manufacturer
information such as results of clinical trials, copies of relevant journal articles etc. in an effort to persuade
doctors to prescribe a medication or course of treatment.
➢ Cold calling refers to a situation when a sales representative telephones or visits a customer without a
prior appointment. Cold calling is often considered to be the most challenging of the sales activities. In a
cold calling situation, the sales representative is likely to be more conscious of the client's time, and may
seek to condense the sales process by combining the approach and the sales presentation into a single
step.
➢ Relationship selling (also known as consultative selling) refers to a sales practice that involves building
and maintaining interactions with customers in order to enhance long term relationships. Relationship
selling often involves a problem solving approach where the sales representative acts in a consultative
role and becomes a partner in the client's problem-solving exercise. Relationship selling is often found in
high-tech selling environments. See also: Solution selling
Advantages of Personal Selling

1) It is a two-way communication. So the selling agent can get instant feedback from the prospective buyer.
If it is not according to plan he can even adjust his approach accordingly.
2) Since it is an interactive form of selling, it helps build trust with the customer. When you are selling
high-value products like cars, it is important that the customer trusts not only the product but the seller
also. This is possible in personal selling.
3) It also is a more persuasive form of marketing. Since the customer is face to face with the salesperson it
is not easy to dismiss them. The customer at least makes an effort to listen.
4) Finally, direct selling helps reach the audience that we cannot reach in any other form. There are
sometimes customers that cannot be reached by any other method.
Disadvantages of Personal Selling

1) It is a relatively expensive method of selling. High capital costs are required.
2) Also, it is an extremely labour intensive method. A large sales force is required to carry out personal
selling successfully.
3) The training of the salesperson is also a very time consuming and costly.
4) And the method can only reach a limited number of people. Unlike TV or Radio ads it does not cover s
huge demographic.
Topic -13 Publicity

Publicity is also a way of mass communication. It is not a paid form of mass communication that involves getting
favourable response of buyers by placing commercially significant news in mass media. Publicity is not paid for
by the organisation. Publicity comes from reporters, columnists, and journalists. It can be considered as a part of
public relations.
William J. Stanton:
“Publicity is any promotional communication regarding an organisation and/or its products where the message is
not paid for by the organisation benefiting from it.”
Characteristics of Publicity:
Key characteristics of publicity have been briefly described in following part:
1) Meaning:
Publicity is not a paid form of mass communication that involves getting favourable response of
buyers by placing commercially significant news in mass media. It involves obtaining favourable
presentation upon radio, newspapers, television, or stage that is not paid for by the sponsor.
2) Non-paid Form:
Publicity is not a paid form of communication. It is not directly paid by producer. However, it
involves various indirect costs. For example, a firm needs some amount for arranging function,
calling press conference, inviting outstanding personalities, decorating of stage, other related
costs, etc.

3) Various Media:
Mostly, publicity can be carried via newspapers, magazines, radio, or television. For example, in case a
product is launched by popular personality in a grand function, the mass media like newspapers,
television, radio, magazines, etc., will definitely publicize the event.
4) Objectives:
Sales promotion is undertaken for a wide variety of purposes. They may include promotion of new
product, pollution control, special achievements of employees, publicizing new policies, or increase in
sales. It is primarily concerns with publishing or highlighting company’s activities and products. It is
targeted to build company’s image. In a long run, it can contribute to increase sales.
5) Control of Producer:
Company has no control over publicity in terms of message, time, frequency, information, and medium. It
comes through mass media like radio, newspapers, television, etc. It is given independently by the third
party. It is presented as a news rather than propaganda.
6) Credibility/Social Significance:
Publicity has high degree of credibility or reliability as it comes from mass media independently. It is
given as news for social interest. It has more social significance compared to other means of market
promotion.
7) Part of Public Relations:

Publicity is a part of broad public relations efforts and activities. Public relations includes improving,
establishing, and maintaining direct relations with all publics. Publicity can help improve public relations.
8) Costs:
Publicity can be done at much lower cost than advertising. Company needs to spend a little amount to get
the event or function publicized.
9) Effect:
Publicity message is more likely to be read, viewed, heard, and reacted by audience. It has a high degree
of believability as it is given by the third party.
10) Repetition:
Frequency or repetition of publicity in mass media depends upon its social significance or the values for
news. Mostly, it appears only once.
Importance of publicity can be made clear from the below stated points:
1) Publicity is an effective medium to disseminate message to the mass with more credibility. People have
more trust on news given by publicity.
2) The credibility level of publicity is much higher than advertising and other means of market promotion.
People express more trust on what the third party independently says. It appears directly through
newspapers, magazines, television, or radio by the third party. It is free from bias.
3) It provides more information as the valuable information is free from space and time constraints.
Similarly, publicity takes place immediately. No need to wait for time or space in mass media. It enjoys
priority.
4) The firm is not required to pay for publicity. The indirect costs related to publicity are much lower than
other means of promotion.
5) It is a part of public relations. It is free from exaggeration; it carries more factual information about
company. It is more trustable. It helps establish public relations.
6) Generally, publicity covers the varied information. It normally involves name of company, its goods
and services, history, outstanding achievements, and other similar issues. The knowledge is more
complete compared to advertisement.
7) Publicity directly helps middlemen and sale persons. Their tasks become easy. Publicity speaks a lot
about products on behalf of middlemen and salesmen. Sellers are not required to provide more
information to convince the buyers.
8) It is suitable to those companies which cannot effort the expensive ways to promote the product.

9) Publicity increases credit or fame of the company. Publicity on company’s assistance in relief
operations during flood, earthquake, draught, and other natural calamities highlights its name and social
contribution in mass media. People hold high esteem to this company.
10) Publicity can be used by non-commercial organisations/institutes like universities, hospitals,
associations of blinds or handicaps, and other social and missionary organisations. They can publicize
their noble works by the medium of publicity.
Objectives of Publicity
1) Building Corporate Image:
Through publicity, a company can build or improve its corporate image. People trust more on what press
reporters, columnists, or newsreaders say via mass media independently than what the company says.
Publicity highlights the company’s name and operations. It popularizes the name of the company.
2) Economy:
It is a cost saving medium. Here, a company is not required to pay for message preparation, buying space
and time, etc. The cost involved is much lower than other means of market promotion. Financially poor
companies may opt for publicity.
3) Assisting Middlemen and Salesmen:
Publicity can help middlemen and salesmen in performing the sales-related activities successfully.
Information conveyed through publicity speaks a lot of things on behalf of sellers. Publicity makes selling
tasks much easier.
4) Information with High Creditability:
Sometimes, publicity is targeted to disseminate information more reliably. Customers do not express
doubts on what publicity appeals. Customers assign more value to information supplied by mass media
via publicity than by the advertisement.
5) Removing Misunderstanding or Bad Image:
Company can defend the product that has encountered public problems. In many cases, publicity is aimed
at removing misunderstanding or bad impression. Whatever a publicity conveys is more likely to be
believed.
6) Building Interest on Product Categories:
Publicity attracts attention of buyers. Due to more trusted news, people build interest in various products
and activities.
7) Newsworthiness Information:
Publicity publicizes the fact in an interesting ways. Publicity is eye-catching in nature. People do not skip
the news presented by publicity that more likely happens in case of advertising. For example, when a new
product is launched by the distinguished personalities like film star, eminent artist, or cricketer in a grand
function, the product becomes popular within no time
Topic – 14 Sales promotion

Sales promotion represents a variety of techniques used to stimulate the purchase of a product or brand. Sales
promotion has a tactical, rather than strategic role in marketing communications and brand strategy, it is also a
form of advertisement used within a short period of time. Researchers Farhangmehr and Brito, reviewed the
definitions of sales promotions in marketing texts and journals and identified a set of common characteristics of
sales promotion, including:
o Short-term effects and duration;
o Operates and influences only the last phase of the purchase process;
o Exhibits a secondary role in relation to other forms of marketing communication;
o Performs an accessory role regarding the products core benefits
o Is not a single technique, rather it is a set of techniques used for a specific purpose
Both manufacturers and retailers make extensive use of sales promotions. Retailer-sponsored sales promotions are
directed at consumers. Manufacturers use two types of sales promotion, namely:[4]
i. Consumer sales promotions: Sales promotions targeted at consumers or end-users and designed to stimulate
the actual purchase
ii. Trade promotions: Sales promotions targeted at trade, especially retailers, designed to increase sales to
retailers, to carry the product or brand or to support the retailer in consumer-oriented promotions

There are two types of Sales promotions
a) Consumer sales promotions
Any sales promotion activity that you do keeping the end consumer in mind is known as consumer
sales promotions. Example – if an E-commerce website gives 10% discount on its products, then it
wants the consumers to make the best of this deal. This is a consumer focused promotional activity
and hence can be called as consumer sales promotions.
The objective of Consumer sales promotions might be various. A consumer might be asked to test a
sample of a completely new perfume in the market and rate it. An existing customer might be asked
to use a Scratch card so that he receives a gift.
b) Trade Sales promotions

If your promotional activities are focused on Dealers, distributors or agents, then it is known as
trade promotions. There is a lot of competition in any field. And in channel sales, to get the products
moving and to motivate the dealer to perform better, trade discounts are given.
Example – You are a dealer for Televisions. Now Sony comes and tells you, you will be given 5%
discount if you cross a sale of 100 televisions. Naturally, you will be very motivated because 5% in
television sales is huge. Plus selling Sony TV’s is easy because it is already a brand. Thus, you
divert all potential customers to Sony Televisions so that you can achieve the target.
Sales promotion techniques.

1. Samples
Samples are one of the most important tools of sales promotion. Samples are defined as offers to consumers of a
small amount of a product for trial. Free samples are given to consumers to generate their interest in the product.
Samples help consumers verify the quality of the product.
Samples are delivered at the doors of consumers. They are also sent by mail or given to customers in the retail
store itself. Sometimes, samples are attached to another product.
Sampling is not justified in case of
➢ well established product
➢ a product that is not superior in some way to competing products
➢ a product with a slow turnover
➢ a product with a narrow margin of profit, or
➢ a highly fragile, perishable or bulky product.
2. Coupons
A coupon is a certificate that fetches buyers a saving when they purchase a specified product. Coupons are
generally issued along with the product. They entitle the holder to either a specified saving on a product or a cash
refund.
Coupons are designed
➢ to introduce a new product
➢ to promote the sale of an established product
➢ to sell a product in large sizes
➢ to stimulate customers to switch brands; and
➢ to encourage repeat sales.
3. Demonstration
Demonstration is required when products are complex and of a technical nature. Customers are educated as to
how to make proper use of the product. Demonstration of products induces customers to buy. Demonstrations are
provided free of cost.
4. Contests
Contests are the promotion events that give consumers the chance to win something such as cash, trips or goods.
Contests are conducted to attract new customers. They introduce new product by asking the prospects to state the
reasons for the purchase of the product.

5. Cash refund offer
Cash refund offers are rebates allowed from the price of the product. It is an offer to refund part of the purchase
price of a product to consumers who send a proof of purchase to the manufacturer.
6. Premium
Premium refers to goods offered either free or at low cost as an incentive to buy a product. A premium may be
inside the package, outside it or received through mail. The reusable package itself serves as a premium.
7. ‘Price off’ offer

Goods are sold at reduced prices during slump season. Reduction in prices stimulates sale of goods.
8. Consumer sweepstakes
A sweepstakes calls for consumers to submit their names for a draw. Names of consumers are included in a list of
prize winning contest. The lots are drawn and the winners get prizes.
9. Buy back allowances

Allowances are granted to buyers on the basis of their previous purchases. In other words, buy back allowances
are given for new purchases, based on the quantity of goods bought previously.
Topic -15 Distribution decisions

Distribution decisions focus on establishing a system that, at its basic level, allows customers to gain access and
purchase a marketer’s product. However, marketers may find that getting to the point at which a customer can
acquire a product is complicated, time consuming, and expensive. The bottom line is a marketer’s distribution
system must be both effective (i.e., delivers a good or service to the right place, in the right amount, in the right
condition) and efficient (i.e., delivers at the right time and for the right cost). Yet, as we will see, achieving these
goals takes considerable effort.
In order to facilitate an effective and efficient distribution system many decisions must be made including (but
certainly not limited to):
➢ Assessing the best distribution channels for getting products to customers
➢ Determining whether a reseller network is needed to assist in the distribution process
➢ Arranging a reliable ordering system that allows customers to place orders
➢ Creating a delivery system for transporting the product to the customer
➢ Establishing facilities for product storage for tangible and digital goods
Distribution means the process by which we make the goods or the service available to the end consumer.
Generally, the place of production is not the same as the place of consumption. So the goods have to be
distributed to overcome the barrier of place.
Now the distribution of the products can be done by the organisation itself which is direct distribution. Or it can
hire intermediaries and form distributions channel i.e. indirect distributions. The plan will depend on several
factors, some of which are
1) Product: Whether the product is perishable or durable will be a factor in deciding its distributions model.
2) Market: The size of the market will be a factor. In a large market, the direct distribution may not be a
perfect choice. Also if the markets are scattered indirect channel will be more suitable
3) Company: The size of the company and its product-mix are also deciding factors in the decision about
distributions.
4) Marketing Environment: In a slow economy or depression a shorter distributions chain is preferable. In a
healthy economy, there is a wider choice for alternatives.
5) Cost: The cost of the channel like transportation, warehousing and storage, tolls etc are obviously a factor
in this decision.
Types of Intermediaries
These are the middlemen that ensure smooth and effective distribution of goods over your chosen geographical
market. Middlemen are a very important factor in the distribution process. let us take a look at the types of
middlemen we usually find.

1) Agents
Agents are middlemen who represent the produces to the customer. They are merely an extension of the
company but the company is generally bound by the actions 0of its agents. One thing to keep in mind, the
ownership of the goods do not pass to the agent. They only work on fees and commisions.
2) Wholesalers
Wholesalers buy the goods from the producers directly. One important characteristic of wholesalers is that
they buy in bulk at a lower rate than retail price. They store and warehouse huge quantities of the products
and sell them to other intermediaries in smaller quantities for a profit.
Wholesalers generally do not sell to the end consumer directly. They sell to other middlemen like retailers or
distributors.
3) Distributors
Distributors are similar to wholesalers in their function. Except they have a contract to carry goods from only
one producer or company. They do not stock a variety of products from various brands. They are under
contract to deal in particular products of only one parent company
4) Retailers
Retailers are basically shop owners. Whether it is your local grocery store or the mall in your area they are all
retailers. The only difference is in their sizes. Retailers will procure the goods from wholesaler or distributors
and sell it to the final consumers. They will sell these products at a profit margin to their customers.
Channel Management Techniques

Channel management involves creating operational strategies that go beyond a single organization. Channel
management strategies bring together partners in a supply chain, including material suppliers, manufacturers,
distributors and resellers, in an effort to lower costs and increase operational efficiency throughout the chain.
1) Strategic Partnerships
Developing long-term relationships with your suppliers and retail customers is the first step toward
effective channel management. Rather than switching suppliers for price discounts and promotional
offers, build a solid supplier base by entering into price/volume contracts, cooperative marketing
arrangements, inter-company financing arrangements or other activities designed to strengthen your
relationships. Develop a loyal reseller base by helping your resellers to market and sell your product
effectively. Provide credit arrangements to loyal retail customers, and offer price/volume contracts to
your customers as well.
2) Technology Leveraging
Technological tools can be used to increase efficiency along a supply chain, but dedication and
cooperation is required of all parties. Automatic order systems can instantly place orders along the supply
chain when stock levels reach economic quantities. Picking, packing and shipping activities can be tied
into automatic order systems to further improve efficiency and decrease delivery lead times. Order

tracking technology can help individual companies to provide better customer service by knowing exactly
when materials and other orders will arrive.
3) Vertical Integration
Vertical integration is the act of purchasing or building your own suppliers or customers. This technique
can be costly and sophisticated compared to others, but vertical integration can provide the most
significant cost savings and quality control of all channel management options. Owning your own
supplier or retail customer can allow you to set your own prices along the supply chain and exercise total
control over operational procedures and quality standards.
4) Logistical Support
Acting as a consultant to your suppliers and resellers may be one of the most hands-off channel
management techniques, but it can still improve efficiency and productivity across the supply chain.
Sharing best practices, technological innovations and managerial expertise can help your strategic
partners to get their houses in order, resulting in lower prices and higher quality from suppliers, as well as
more reliable orders from resellers. Providing marketing materials and sales training to resellers'
employees can help to boost sales for your brands as well.
5) Monitoring
Continually monitor and assess the performance and progress of your supply chain. Create thorough
monitoring systems to accompany each channel management technique, whether it be something as
simple as employee and customer surveys or something as complex as statistical reports from a chain-
wide automatic order system. Reassess your supply chain strategies regularly and adjust them to respond
to changes in the market or in a particular link in the chain.
Topic – 16 Consumer Behaviour

Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions.
Marketers expect that by understanding what causes the consumers to buy particular goods and services, they will
be able to determine—which products are needed in the marketplace, which are obsolete, and how best to present
the goods to the consumers.
1. According to Engel, Blackwell, and Mansard, ‘consumer behaviour is the actions and decision processes of
people who purchase goods and services for personal consumption’.
2. According to Louden and Bitta, ‘consumer behaviour is the decision process and physical activity, which
individuals engage in when evaluating, acquiring, using or disposing of goods and services’.
Nature of Consumer Behaviour

1. Influenced by various factors:
The various factors that influence the consumer behaviour are as follows:
a) Marketing factors such as product design, price, promotion, packaging, positioning and distribution.
b) Personal factors such as age, gender, education and income level.
c) Psychological factors such as buying motives, perception of the product and attitudes towards the product.
d) Situational factors such as physical surroundings at the time of purchase, social surroundings and time
factor.
e) Social factors such as social status, reference groups and family.
f) Cultural factors, such as religion, social class—caste and sub-castes.
2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time depending on the nature of
products. For example, kids prefer colourful and fancy footwear, but as they grow up as teenagers and young
adults, they prefer trendy footwear, and as middle-aged and senior citizens they prefer more sober footwear. The

change in buying behaviour may take place due to several other factors such as increase in income level,
education level and marketing factors.
3. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave differently. The differences in
consumer behaviour are due to individual factors such as the nature of the consumers, lifestyle and culture. For
example, some consumers are technoholics. They go on a shopping and spend beyond their means.
4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the behaviour of the urban
consumers is different from that of the rural consumers. A good number of rural consumers are conservative in
their buying behaviours.
5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to study the various factors that
influence the consumer behaviour of their target customers.
The knowledge of consumer behaviour enables them to take appropriate marketing decisions in respect of the
following factors:
a) Product design/model
b) Pricing of the product
c) Promotion of the product
d) Packaging
e) Positioning
f) Place of distribution
6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take the decision of buying a
product on the basis of different buying motives. The purchase decision leads to higher demand, and the sales of
the marketers increase. Therefore, marketers need to influence consumer behaviour to increase their purchases.
7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who may buy more quantity of
certain items and very low or no quantity of other items. For example, teenagers may spend heavily on products
such as cell phones and branded wears for snob appeal, but may not spend on general and academic reading. A
middle- aged person may spend less on clothing, but may invest money in savings, insurance schemes, pension
schemes, and so on.
8. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The more a person buys the goods
and services, the higher is the standard of living. But if a person spends less on goods and services, despite having
a good income, they deprives themselves of higher standard of living.
9. Reflects status:
The consumer behaviour is not only influenced by the status of a consumer, but it also reflects it. The consumers
who own luxury cars, watches and other items are considered belonging to a higher status. The luxury items also
give a sense of pride to the owners.
Consumer Buying Process

According to Philip Kotler, the typical buying process involves five stages the consumer passes through
described as under:

1. Problem Identification:
This step is also known as recognizing of unmet need. The need is a source or force of buying behaviour. Buying
problem arises only when there is unmet need or problem is recognized. Need or problem impels an individual to
act or to buy the product.
2. Information Search:
Interested consumer will try to seek information. Now, he will read newspapers and magazines, watch television,
visit showroom or dealer, contact salesman, discuss with friends and relatives, and try all the possible sources of
information.
Mostly, the consumer can try one or more of following sources of information:
1) Personal Sources:
They may include family members, friends, package, colleagues, and relatives.
2) Commercial Sources:
Advertising, salesmen, dealers, package, trade show, display, and exhibition are dominant commercial
sources.
3) Public Sources:
Mass media (radio, TV, newspapers, magazines, cinema, etc.), consumer- rating agencies, etc., are main
public sources.
4) Experimental Sources:
They include handling, examining, testing, or using the product. Selection of sources depends upon
personal characteristics, types of products, and capacity and reliability of sources. Each information
source performs different functions in influencing buying decision. By gathering information from
relevant sources, the consumer can learn about different products and brands available in the market.
3. Evaluation of Alternatives:
In the former stage, the consumer has collected information about certain brands. Now, he undergoes evaluation
of brands. He cannot buy all of them. Normally, he selects the best one, the brand that offers maximum
satisfaction. Here, he evaluates competitive brands to judge which one is the best, the most attractive. Evaluation
calls for evaluating various alternatives with certain choice criteria.
Following criteria are considered while evaluating alternatives:

a) Benefits offered by the brands
b) Qualities, features or attributes, and performance
c) Price changed by various brands
d) History of brands
e) Popularity, image or reputation of brands
f) Product-related services offered by the brands, such as after-sales services, warrantee, and free installation
g) Availability of brands and dealer rating.
4. Purchase Decision:
This is the stage when the consumer prefers one, the most promising band, out of several
brands. The former stage helps consumers evaluate various brands in the choice set. The brand
that offers maximum benefits or satisfaction is preferred.
Simply, the most attractive brand, that can offer more benefits in relation to price paid, is
selected by comparing one brand with others. Comparison shows superiority/inferiority of the
brands.
Sub-decisions in Purchase Decision:

Consumer’s buying decision involves following five sub-decisions:
a) Brand Decision:
For example, CBZ (model) motorbike of Hero Honda.
b) Vender Decision:
For example, XYZ Hero Honda Showroom.
c) Quantity Decision:
For example, one motorbike.
d) Timing Decision:
For example, on 1st December, 2007.
e) Payment Decision:
For example, by cash.
5. Post-purchase Decisions:
Consumer buys the product with certain expectations. Though he decides very systematically, there is no
guarantee of a complete satisfaction. There is always possibility of variation between the expected level of
satisfaction and the actual satisfaction. His subsequent behaviour is influenced by degree of
satisfaction/dissatisfaction.
Marketer must monitor the post-purchase experience of the buyers that includes:
a) Post-purchase Satisfaction
b) Post-purchase Action
c) Post-purchase Use and Disposal
Post-purchase Satisfaction:
Actual satisfaction may not be equal to the expected one. He may find some problems or defects in the product
while using. It is the matter of interest for marketer to know whether consumer is highly satisfied, somewhat
satisfied, or dissatisfied. Consumer’s satisfaction is the function of the relationship between expected/perceived
performance (expectations) and actual performance.
Dissatisfaction can be reduced by:
1. Congratulating consumers for the right choice to justify their decision
2. Sending booklet to guide for effective use of the product
3. Inviting suggestions from consumers
4. Managing complaints by effective counseling and after-sales services
5. Informing about changes made in the product
6. Exchanging or returning amount, etc.
Important Factors That Influence The Buying Decision

1) Economic Factor
The most important and first on this list is the Economic Factor. This one is the main foundation of any
purchasing decision. The reason is simple people can’t buy what they can’t afford. The need of a product
also doesn’t play a role here, but the most important thing is affordability.
2) Functional Factor
The factor is totally about needs, backed by a logic that what makes sense and also fits in the best interest
of the customer. This one factor also plays a very important role in the buying decision.
3) Marketing Mix Factors
There are 4 components in the marketing mix, i.e. product, pricing, promotion and place of distribution
and each of these components have a direct or indirect impact on the buying process of the consumers.
The consumers consider various things like the characteristics of the product, price charged, availability
of the product at the required location and much more.
4) Personal Factors
The personal factors include age, occupation, lifestyle, social and economic status and the gender of the
consumer. These factors can individually or collectively affect the buying decisions of the consumers.
5) Psychological Factor
When it comes to the psychological factors there are 4 important things affecting the consumer buying
behaviour, i.e. perception, motivation, learning, beliefs and attitudes.
6) Social Factors

Social factors include reference groups, family, and social status. These factors too affect the buying
behaviour of the consumer. These factors in turn reflect an endless and vigorous inflow through which
people learn different values of consumption.
7) Cultural Factors
Cultural factors have a subtle influence on a consumer’s purchasing decision process. Since each
individual lives in a complex social and cultural environment, the kinds of products or services they
intend to use can be directly or indirectly be influenced by the overall cultural context in which they live
and grow. These Cultural factors include race and religion, tradition, caste and moral values.
Topic – 17 Concept of service marketing

Services are deeds, processes and performances. Services include all economic activities whose output is not a
physical product or construction, is generally consumed at the time it is produced, and provides added value in
forms (such as convenience, amusement, timeliness, comfort or health) that are essentially intangible concerns of
its first purchaser. Eg.: Transportation, Communication, Educational services etc.
Definition of service marketing

Service marketing is defined by the American Marketing Association (AMA) as “the activities, benefits or
satisfactions which are offered for sale are provided in connection with the sale of goods.” (Kapoor, 2011). For
instance, when a customer pays for a night at a hotel, he is not only getting accommodation for the night, but also
a homely environment. This extra benefit given by the hotel is called service marketing.
Features of Services:
1) Intangibility:
A physical product is visible and concrete. Services are intangible. The service cannot be touched or
viewed, so it is difficult for clients to tell in advance what they will be getting. For example, banks
promote the sale of credit cards by emphasizing the conveniences and advantages derived from
possessing a credit card.
2) Inseparability:
Personal services cannot be separated from the individual. Services are created and consumed
simultaneously. The service is being produced at the same time that the client is receiving it; for example,
during an online search or a legal consultation. Dentist, musicians, dancers, etc. create and offer services
at the same time.
3) Heterogeneity (or variability):
Services involve people, and people are all different. There is a strong possibility that the same enquiry
would be answered slightly differently by different
people (or even by the same person at different times). It is important to minimize the differences in
performance (through training, standard setting and quality assurance). The quality of services offered by
firms can never be standardized.
4) Perishbility:
Services have a high degree of perishability. Unused capacity cannot be stored for future use. If services
are not used today, it is lost forever. For example, spare seats in an aeroplane cannot be transferred to the
next flight. Similarly, empty rooms in five-star hotels and credits not utilized are examples of services
leading to economic losses. As services are activities performed for simultaneous consumption, they
perish unless consumed.
5) Changing demand:
The demand for services has wide fluctuations and may be seasonal. Demand for tourism is seasonal,
other services such as demand for public transport, cricket field and golf courses have fluctuations in
demand.
6) Pricing of services:
Quality of services cannot be standardized. The pricing of services are usually determined on the basis of
demand and competition. For example, room rents in tourist spots fluctuate as per demand and season and
many of the service providers give off-season discounts.
7) Direct channel:

Usually, services are directly provided to the customer. The customer goes directly to the service provider
to get services such as bank, hotel, doctor, and so on. A wider market is reached through franchising such
as McDonald’s and Monginis.
Problems in Marketing Services:

1) A service cannot be demonstrated.
2) Sale, production and consumption of services takes place simultaneously.
3) A service cannot be stored. It cannot be produced in anticipation of demand.
4) Services cannot be protected through patents.
5) Services cannot be separated from the service provider.
6) Services are not standardized and are inconsistent.
7) Service providers appointing franchisees may face problems of quality of services.
8) The customer perception of service quality is more directly linked to the morale, motivation and skill of
the frontline staff of any service organization.
Types of Services
1) Core Services: A service that is the primary purpose of the transaction. Eg: a haircut or the services of
lawyer or teacher.
2) Supplementary Services: Services that are rendered as a corollary to the sale of a tangible product. Eg:
Home delivery options offered by restaurants above a minimum bill value.
Difference between Goods and Services
Given below are the fundamental differences between physical goods and services:
Goods Services
A physical commodity A process or activity
Tangible Intangible
Homogenous Heterogeneous
Production and distribution are separation from their Production, distribution and consumption are
consumption simultaneous processes
Can be stored Cannot be stored
Transfer of ownership is possible Transfer of ownership is not possible
Topic -18 Social marketing

Social marketing is an approach used to develop activities aimed at changing or maintaining people’s
behaviour for the benefit of individuals and society as a whole.
Combining ideas from commercial marketing and the social sciences, social marketing is a proven tool for
influencing behaviour in a sustainable and cost-effective way.
Objective Is To Influence behaviours

Social marketing is all about influencing behaviours of the target audience. The marketing efforts may be used to:
o Give up an addictive behaviour (e.g., stop smoking)
o Avoid or reject a potentially undesirable behaviour (e.g. don’t try drugs)
o Prevent long-term consequences (e.g. wear sunscreen to prevent skin cancer)
o Prevent the environment (e.g. recycle)
o Learn a new skill (e.g. learn for free and get a job)
o Risk retaliation (e.g., adhere to the speed limit)

Approach
Social marketing is a systematic and planned process. It follows six steps
Behaviour
The goal of social marketing is always to change or maintain how people behave – not what they think or how
aware they are about an issue. If your goal is only to increase awareness or knowledge, or change attitudes, you
are not doing social marketing.
Benefits people and society

This is the value – perceived or actual – as it is defined by the people who are targeted by a social marketing
intervention. It is not what is assumed to benefit them by the organisation that is trying to encourage the
behaviour change.
A social marketing approach

Even if you don’t take social marketing any further, just considering these four questions will add value to your
projects and policies.
1) Do I really understand my target audience and see things from their perspective?
2) Am I clear about what I would like my target audience to do?
3) For my target audience, do the benefits of doing what I would like them to do outweigh the costs or
barriers to doing it?
4) Am I using a combination of activities in order to encourage people to achieve the desired action?

How social marketing helps
1) Policy: social marketing helps to ensure policy is based on an understanding of people’s lives, making
policy goals realistic and achievable. Policy example: water rationing in Jordan
2) Strategy: social marketing enables you to target your resources cost-effectively, and select interventions
that have the best impact over time. Strategy example: lung disease strategy in England
3) Implementation and delivery: social marketing enables you to develop products, services and
communications that fit people’s needs and motivations. Delivery example: child car seats in Texas
Topic -19 Green marketing

Green marketing products that are presumed to be environmentally safe. It incorporates a broad range of
activities, including product modification, changes to the production process, sustainable packaging, as well as
modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and
contradict each other; an example of this will be the existence of varying social, environmental and retail
definitions attached to this term. Other similar terms used are environmental marketing and ecological marketing.
Green, environmental and eco-marketing are part of the new marketing approaches which do not just refocus,
adjust or enhance existing marketing thinking and practice, but seek to challenge those approaches and provide a
substantially different perspective. In more detail green, environmental and eco-marketing belong to the group of
approaches which seek to address the lack of fit between marketing as it is currently practiced and the ecological
and social realities of the wider marketing environment.
Green marketing refers to the process of selling products and/or services based on their environmental benefits.
Such a product or service may be environmentally friendly in itself or produced in an environmentally friendly
way, such as:
1) Being manufactured in a sustainable fashion
2) Not containing toxic materials or ozone-depleting substances
3) Able to be recycled and/or is produced from recycled materials
4) Being made from renewable materials (such as bamboo, etc.)
5) Not making use of excessive packaging
6) Being designed to be repairable and not "throwaway"
Importance of Green Marketing:

Green marketing affects positively the health of people and the ecological environment. People are aware of pure
products and pure methods of producing, using, and disposing the products. It encourages integrated efforts for
purity in production and consumption as well.
1) Now, people are insisting pure products – edible items, fruits, and vegetables based on organic farming.
The number of people seeking vegetarian food is on rise.
2) Reducing use of plastics and plastic-based products.
3) Increased consumption of herbal products instead of processed products.
4) Recommending use of leaves instead of plastic pieces; jute and cloth bags instead of plastic carrying bags.
5) Increasing use of bio-fertilizers (made of agro-wastes and wormy-composed) instead of chemical fertilizers
(i.e. organic farming), and minimum use of pesticides.
6) Worldwide efforts to recycle wastes of consumer and industrial products.
7) Increased use of herbal medicines, natural therapy, and Yoga.
8) Strict provisions to protect forests, flora and fauna, protection of the rivers, lakes and seas from pollutions.
9) Global restrictions on production and use of harmful weapons, atomic tests, etc. Various organisations of
several countries have formulated provisions for protecting ecological balance.
10) More emphasis on social and environmental accountability of producers.
11) Imposing strict norms for pollution control. Consideration of pollution control efforts and eco-technology
in awarding IS), ISO 9000, or ISO 14000 certificates and other awards.
12) Declaration of 5th June as the World Environment Day.
13) Strict legal provisions for restricting duplication or adulteration.
14) Establishing several national and international agencies to monitor efforts and activities of business firms
in relation pollution control and production of eco-friendly products.

Topic – 20 Online Marketing
Online marketing is a set of tools and methodologies used for promoting products and services through the
internet. Online marketing includes a wider range of marketing elements than traditional business marketing due
to the extra channels and marketing mechanisms available on the internet.
Online marketing can deliver benefits such as:
1) Growth in potential
2) Reduced expenses
3) Elegant communications
4) Better control
5) Improved customer service
6) Competitive advantage
Online marketing has several advantages, including:

1) Low costs: Large audiences are reachable at a fraction of traditional advertising budgets, allowing
businesses to create appealing consumer ads.
2) Flexibility and convenience: Consumers may research and purchase products and services at their
leisure.
3) Analytics: Efficient statistical results are facilitated without extra costs.
4) Multiple options: Advertising tools include pay-per-click advertising, email marketing and local search
integration (like Google Maps).
5) Demographic targeting: Consumers can be demographically targeted much more effectively in an
online rather than an offline process.
Different Types Of Online Marketing

1) SEARCH ENGINE OPTIMIZATION
According to Search Engine Land, SEO stands for “search engine optimization.” It is the “process of
getting traffic from the free, organic, editorial or natural search results on search engines.”
By understanding how search engines rank websites, one can optimize a website to maximize its chances
of ranking well for relevant searches. However, search engine algorithms continue to change, making it
essential for online businesses to stay up-to-date with best practices to claim high rankings for relevant
keywords.
2) SEARCH ENGINE MARKETING (SEM) & PAY-PER-CLICK ADVERTISING (PPC)

SEM (Search Engine Marketing) is the process of gaining website traffic by purchasing ads on search
engines. Google AdWords is by many measures the most popular paid search platform used by search
marketers, followed by Bing Ads. Beyond that, there are a number of “2nd tier PPC platforms” as well as
PPC advertising options on the major social networks.
Typically, SEM and PPC advertising is carried out through search engines, who charge advertisers a
predetermined amount every time their ad is clicked. While the search engines profit handsomely from
this model, site owners benefit from being able to precisely target their potential customers.
3) CONTENT MARKETING
According to the Content Marketing Institute, content marketing is “a strategic marketing approach
focused on creating and distributing valuable, relevant, and consistent content to attract and retain a
clearly-defined audience — and, ultimately, to drive profitable customer action.”
without always selling. Instead, businesses should use content marketing strategies to educate the
consumer while delivering consistent, valuable information to buyers who, in turn, reward us with their
business and loyalty.
4) SOCIAL MEDIA MARKETING (SMM)

As an end user, many people already know a lot about social media, but their knowledge about social
media marketing is typically more limited.
Social media marketing is a great way for businesses to fulfill their objectives in terms of building brand
equity, improving customer service, reaching new customers and collecting customer feedback. If
companies can create social media content that provides value to others, they can connect with customers
in a profitable way.

5) AFFILIATE MARKETING
Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s)
products. You find a product you like, promote it to others (usually through your blog), and earn a piece
of the profit for each sale that you make.
6) EMAIL MARKETING
Email marketing has long been a pillar for any business attempting to generate sales via the internet. It
provides direct contact with clients and allows you to drive prospective customers to your website.
In a few simple steps, you can provide updates, exciting news, reminders, etc. to your customers in a
matter of minutes. At the same time, you can use these newsletters as printable, direct mail pieces or even
flyers. When using the right tools, sending out customizable emails that look professional and represent
your business the way you want it can be so simple.
Topic – 21 Direct marketing

Direct marketing is a form of advertising where organizations communicate directly to customers through a
variety of media including cell phone text messaging, email, websites, online adverts, database
marketing, fliers, catalog distribution, promotional letters, targeted television, newspapers, magazine
advertisements, and outdoor advertising. Among practitioners, it is also known as direct response marketing.
Forms of Direct Marketing
o Common forms of direct marketing include:
o Brochures
o Catalogs
o Fliers
o Newsletters
o Post cards
o Coupons
o Emails
o Targeted online display ads
o Phone calls
o Text messages
1) Email marketing
Sending marketing messages through email or email marketing is one of the most widely used direct-
marketing methods. One reason for email marketing's popularity is that it is relatively inexpensive to
design, test, and send an email message. It also allows marketers to deliver messages around the clock,
and to accurately measure responses.
2) Online tools
With the expansion of digital technology and tools, direct marketing is increasingly taking place through
online channels. Most online advertising is delivered to a focused group of customers and has a trackable
response.
3) Display Ads are interactive ads that appear on the Web next to content on Web pages or Web services.
Formats include static banners, pop ups, videos, and floating units. Customers can click on the ad to
respond directly to the message or to find more detailed information. According to research by eMarketer,
expenditures on online display ads rose 24.5% between 2010 and 2011
4) Mobile
Through mobile marketing, marketers engage with prospective customers and donors in an interactive
manner through a mobile device or network, such as a cellphone, smartphone, or tablet. Types of mobile
marketing messages include: SMS (short message service)—marketing communications are sent in the
form of text messages, also known as texting. MMS (multi-media message service)—marketing
communications are sent in the form of media messages.
5) Telemarketing
Another common form of direct marketing is telemarketing, in which marketers contact customers by
phone. The primary benefit to businesses is increased lead generation, which helps businesses increase
sales volume and customer base. The most successful telemarketing service providers focus on generating
more "qualified" leads that have a higher probability of getting converted into actual sales.

6) Voicemail marketing
Voicemail marketing emerged from the market prevalence of personal voice mailboxes, and business
voicemail systems. Voicemail marketing presented a cost effective means by which to reach people
directly, by voice. Abuse of consumer marketing applications of voicemail marketing resulted in an
abundance of "voice-spam", and prompted many jurisdictions to pass laws regulating consumer voicemail
marketing.
7) Broadcast faxing
Broadcast faxing, in which faxes are sent to multiple recipients, is now less common than in the
past.[citation needed] This is partly due to laws in the United States and elsewhere which regulate its use for
consumer marketing. In 2005, President Bush signed into law S.714, the Junk Fax Prevention Act of
2005 (JFPA), which allows marketers to send commercial faxes to those with whom they have an
established business relationship (EBR), but imposes some new requirements. These requirements
include providing an opt-out notice on the first page of faxes and establishing a system to accept opt-outs
at any time of the day. Roughly 2% of direct marketers use fax, mostly for business-to-business
marketing campaigns
8) Couponing
Couponing is used in print and digital media to elicit a response from the reader. An example is a coupon
which the reader receives through the mail and takes to a store's check-out counter to receive a discount.
Digital Coupons: Manufacturers and retailers make coupons available online for electronic orders that
can be downloaded and printed. Digital coupons are available on company websites, social media outlets,
texts, and email alerts. There are an increasing number of mobile phone applications offering digital
coupons for direct use.
9) Direct response marketing
Direct Response Marketing is designed to generate an immediate response from consumers, where each
consumer response (and purchase) can be measured, and attributed to individual advertisements.[29] This
form of marketing is differentiated from other marketing approaches, primarily because there are no
intermediaries such as retailers between the buyer and seller, and therefore the buyer must contact the
seller directly to purchase products or services. Direct-response marketing is delivered through a wide
variety of media, including DRTV, radio, mail, print advertising, telemarketing, catalogues, and
the Internet.
10) Insert media
Another form of direct marketing, insert media are marketing materials that are inserted into other
communications, such as a catalog, newspaper, magazine, package, or bill. Coop or shared mail, where
marketing offers from several companies are delivered via a single envelope, is also considered insert
media.
11) Out-of-home
Out-of-home direct marketing refers to a wide array of media designed to reach the consumer outside the
home, including billboards, transit, bus shelters, bus benches, aerials, airports, in-flight, in-store, movies,
college campus/high schools, hotels, shopping malls, sport facilities, stadiums, taxis—that contain a call-
to-action for the customer to respond.
Topic – 22 Rural marketing

Rural marketing is a process of developing, pricing, promoting, and distributing rural specific goods and services
leading to desired exchange with rural customers to satisfy their needs and wants, and also to achieve
organizational objectives
Rural marketing is now a two-way marketing process. There is inflow of products into rural markets for
production or consumption and there is also outflow of products to urban areas. The urban to rural flow consists
of agricultural inputs, fast-moving consumer goods (FMCG) such as soaps, detergents, cosmetics, textiles, and so
on. The rural to urban flow consists of agricultural produce such as rice, wheat, sugar, and cotton. There is also a
movement of rural products within rural areas for consumption.
1) Large and scattered population:
According to the 2001 census, 740 million Indians forming 70 per cent of India’s population live in rural
areas. The rate of increase in rural population is also greater than that of urban population. The rural
population is scattered in over 6 lakhs villages. The rural population is highly scattered, but holds a big
promise for the marketers.

2) Higher purchasing capacity:
Purchasing power of the rural people is on rise. Marketers have realized the potential of rural markets,
and thus are expanding their operations in rural India. In recent years, rural markets have acquired
significance in countries like China and India, as the overall growth of the economy has resulted into
substantial increase in purchasing power of rural communities.
3) Market growth:
The rural market is growing steadily over the years. Demand for traditional products such as bicycles,
mopeds and agricultural inputs; branded products such as toothpaste, tea, soaps and other FMCGs; and
consumer durables such as refrigerators, TV and washing machines has also grown over the years.
4) Development of infrastructure:
There is development of infrastructure facilities such as construction of roads and transportation,
communication network, rural electrification and public service projects in rural India, which has
increased the scope of rural marketing.
5) Low standard of living:
The standard of living of rural areas is low and rural consumers have diverse socio-economic
backwardness. This is different in different parts of the country. A consumer in a village area has a low
standard of living because of low literacy, low per capita income, social backwardness and low savings.
6) Traditional outlook:
The rural consumer values old customs and traditions. They do not prefer changes. Gradually, the rural
population is changing its demand pattern, and there is demand for branded products in villages.
7) Marketing mix:
The urban products cannot be dumped on rural population; separate sets of products are designed for rural
consumers to suit the rural demands. The marketing mix elements are to be adjusted according to the
requirements of the rural consumers.
Importance of Rural Marketing

1) Employment Opportunities:
The income from new employment schemes and rural development efforts of the government and the
corporate sector efforts has increased the purchasing power of rural people.
2) Agricultural Revolution:
Due to green revolution and white technological breakthrough in the form of green and white revolutions
have taken place in rural India, which results into substantial wealth generation in these areas.
3) Favourable Government Policies:
Tax exemption in backward areas, subsidy, concession, incentives and heavy investment in rural
development programmes have brought rapid growth of rural markets and capital investment plans of
Consumer Goods Companies.
4) Literacy Growth:
Literacy rate is increasing in rural areas. According to Census 2011 it stood at 68.9% (2001 census
58.7%). There are now more graduates in rural than in urban India. This brings social and cultural
changes in buying behaviour of the rural customers.
5) Rising Disposable Income:
Good monsoons, green revolution and Administered Pricing Mechanism (PAM), and NREGA have led to
rising disposable income in rural areas. According to Advanced Estimates of National Income released by
the Central Statistical Office (CSO) “The per capita income at current prices during 2011-12 is estimated
to be Rs 60,972 compared to Rs 53,331 during 2010-11, showing a rise of 14.3 per cent,” Roughly 50 to
60% of people are employed in other businesses
6) Attraction of Higher Standard of Living:
Education, constant touch with urban areas, and Hindi Movies have motivated rural people to change
their lifestyles and have higher standard of living.
7) Spread of Cable Television:
The growth of satellite TV channels has made a major impact on villages. This has led to a change in
lifestyle and consumption pattern.
8) New growth avenues for the corporate:
It appears that the corporate will have to look at rural customers for increasing demand for their products,
after all urban demand has its own limitations. Now manufacturers go in for forward innovation approach
instead of ‘glocalisation’. It calls for developing products for rural consumers. Presently sale for Dabur,
Jyothi Laboratories, and Wipro Consumer Care from rural areas comprises 50%.

Main Problems in Rural Marketing are as Follows:
1) Under developed people and underdeveloped markets:
The impact of agricultural technology is not felt uniformly throughout the country. Some districts in
Punjab, Haryana and the Western U.P. where the rural consumers are somewhat comparable to their
urban counter part; but there are large areas and grown of people who have repaired beyond the
technological breakthrough. In addition, the farmers with small agricultural land holding are also unable
to take advantage of the new technology.
2) Lack of power physical communication facilities:
Nearly 50 percent of the villages in India do not have all weather roads, physical communication to the
villages is highly expensive. Especially during the monsoon 4 months these villages become complete
inaccessible.
3) In adequate media coverage for rural-communication:
A large number of rural families own radio and TV sets, there are also community radio and TV sets.
These have been used to diffuse agricultural technology to rural areas. However, the coverage relating to
marketing is inadequate.
4) Many languages and dialects:
The number of languages and dialects vary from state to state and region to region. This type of
distribution of population warrants appropriate strategies decide the extent of coverage of rural market.
5) Other problems of rural marketing are natural Calamites:
Of draught or examine rain, epidemics, primitive methods of cultivation, lack of printer storage facilities,
transportation problem and inadequate market intelligence, including long chain of intermediaries
between cultivator and farmer and wholesaler and retailers.
Topic – 23 CRM (customer relationship management)

Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that
companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the
goal of improving customer service relationships and assisting in customer retention and driving sales growth
CRM systems compile customer data across different channels -- or points of contact between the customer and
the company -- which could include the company's website, telephone, live chat, direct mail, marketing materials
and social media. CRM systems can also give customer-facing staff detailed information on customers' personal
information, purchase history, buying preferences and concerns.
Components of CRM
At the most basic level, CRM software consolidates customer information and documents into a single CRM
database so business users can more easily access and manage it
1) Marketing automation. CRM tools with marketing automation capabilities can automate repetitive tasks
to enhance marketing efforts at different points in the lifecycle. For example, as sales prospects come into
the system, it might automatically send the prospects marketing materials, typically via email or social
media, with the goal of turning a sales lead into a full-fledged customer.
2) Sales force automation. Sales force automation tools track customer interactions and automate certain
business functions of the sales cycle that are necessary to follow leads and attract and obtain new
customers.
3) Contact center automation. Designed to reduce tedious aspects of a contact centre agent's job, contact
centre automation might include pre-recorded audio that assists in customer problem-solving and
information dissemination. Various software tools that integrate with the agent's desktop tools can handle
customer requests in order to cut down on the time of calls and to simplify customer service processes.
4) Relocation technology, or location-based services. Some CRM systems include technology that can
create geographic marketing campaigns based on customers' physical locations, sometimes integrating
with popular location-based GPS apps. Relocation technology can also be used as a networking or contact
management tool in order to find sales prospects based on a location.
5) Workflow automation. CRM systems help businesses optimize processes by streamlining mundane
workloads, enabling employees to focus on creative and more high-level tasks.
6) Lead management. Sales leads can be tracked through CRM, enabling sales teams to input, track and
analyze data for leads in one place.

7) Human resource management. CRM systems help track employee information, such as contact
information, performance reviews and benefits within a company. This enables the human resource
department to more effectively manage the internal workforce.
8) Analytics. Analytics in CRM help create better customer satisfaction rates by analyzing user data and
helping create targeted marketing campaigns.
9) AI in CRM. Artificial intelligence technologies, such as Sales force Einstein, have been built into CRM
platforms to automate repetitive tasks, identify customer buying patterns to predict future customer
behaviours and more.
Importance of Customer Relationship Management (CRM)

1) A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers.
This helps in reduced searching and correlating customers and to foresee customer needs effectively and
increase business.
2) CRM contains each and every bit of details of a customer, hence it is very easy for track a customer
accordingly and can be used to determine which customer can be profitable and which not.
3) In CRM system, customers are grouped according to different aspects according to the type of business
they do or according to physical location and are allocated to different customer managers often called as
account managers. This helps in focusing and concentrating on each and every customer separately.
4) A CRM system is not only used to deal with the existing customers but is also useful in acquiring new
customers. The process first starts with identifying a customer and maintaining all the corresponding
details into the CRM system which is also called an ‘Opportunity of Business’. The Sales and Field
representatives then try getting business out of these customers by sophistically following up with them
and converting them into a winning deal. All this is very easily and efficiently done by an integrated
CRM system.
5) The strongest aspect of Customer Relationship Management is that it is very cost-effective. The
advantage of decently implemented CRM system is that there is very less need of paper and manual work
which requires lesser staff to manage and lesser resources to deal with. The technologies used in
implementing a CRM system are also very cheap and smooth as compared to the traditional way of
business.
6) All the details in CRM system is kept centralized which is available anytime on fingertips. This reduces
the process time and increases productivity.
7) Efficiently dealing with all the customers and providing them what they actually need increases the
customer satisfaction. This increases the chance of getting more business which ultimately enhances
turnover and profit.
8) If the customer is satisfied they will always be loyal to you and will remain in business forever resulting
in increasing customer base and ultimately enhancing net growth of business.
Topic – 24 Concept of Logistics Management

Logistics management may be defined as follows:
Logistics management consists of the process of planning, implementing and controlling the efficient flow of
raw-materials, work-in-progress and finished goods and related information-from point of origin to point of
consumption; with a view to providing satisfaction to the customer.
According to Phillip Kotler, “Market logistics involve planning, implementing and controlling physical flow
of material and final (finished) goods from the point of origin to the point of use to meet customer
requirements, at a profit.”
Classification of Logistical Activities:
I. Inbound logistics; which is concerned with the smooth and cost effective inflow of materials and other inputs
(that are needed in the manufacturing process) from suppliers to the plant. For proper management of inbound
logistics, the management has to maintain a continuous interface with suppliers (vendors).
II. Outbound logistics (also called physical distribution management or supply chain management); is concerned
with the flow of finished goods and other related information from the firm to the customer. For proper
management of outbound logistics, the management has to maintain a continuous interface with transport
operators and channels of distribution.

Significance (or Objectives) of Logistics Management
Logistics management is significant for the following reasons:
(i) Cost Reduction and Profit Maximization:
Logistics management results in cost reduction and profit maximization, primarily due to:
1) Improved material handling
2) Safe, speedy and economical transportation
3) Optimum number and convenient location of warehouses etc.
(ii) Efficient Flow of Manufacturing Operations:

Inbound logistics helps in the efficient flow of manufacturing operations, due to on-time delivery of materials,
proper utilisation of materials and semi-finished goods in the production process and so on.
(iii) Competitive Edge:

Logistics provide, maintain and sharpen the competitive edge of an enterprise by:
1) Increasing sales through providing better customer service
2) Arranging for rapid and reliable delivery
3) Avoiding errors in order processing; and so on.
(iv) Effective Communication System:

An efficient information system is a must for sound logistics management. As such, logistics management helps
in developing effective communication system for continuous interface with suppliers and rapid response to
customer enquiries.
(v) Sound Inventory Management:

Sound inventory management is a by-product of logistics management. A major headache of production
management, financial management etc. is how to ensure sound inventory management; which headache is cured
by logistics management.
Key Activities Involved in Logistics Management:

Following is a brief account of key activities involved in logistics management:
(i) Network Design:
Network design is one of the prime responsibilities of logistics management. This network is required to
determine the number and location of manufacturing plants, warehouses, material handling equipment’s etc. on
which logistical efficiency depends.
(ii) Order Processing:

Customers’ orders are very important in logistics management. Order processing includes activities for receiving,
handling, filing, recording of orders. Herein, management has to ensure that order processing is accurate, reliable
and fast.

Further, management has to minimize the time between receipt of orders and date of dispatch of the consignment
to ensure speedy processing of the order. Delays in execution of orders can become serious grounds for customer
dissatisfaction; which must be avoided at all costs.
(iii) Procurement:
It is related to obtaining materials from outside suppliers. It includes supply sourcing, negotiation, order
placement, inbound transportation, receiving and inspection, storage and handling etc. Its main objective is to
support manufacturing, by providing timely supplies of qualitative materials, at the lowest possible cost.
(iv) Material Handling:

It involves the activities of handling raw-materials, parts, semi-finished and finished goods into and out of plant,
warehouses and transportation terminals. Management has to ensure that the raw-materials, parts, semi-finished
and finished goods are handled properly to minimize losses due to breakage, spoilage etc. Further, the
management has to minimize the handling costs and the time involved in material handling.
Material handling systems, in logistics management are divided into three categories:
1) Mechanized systems
2) Semi-automated systems
3) Automated systems
(v) Inventory Management:

The basic objective of inventory management is to minimize the amount of working capital blocked in
inventories; and at the same time to provide a continuous flow of materials to match production requirements; and
to provide timely supplies of goods to meet customers’ demands.
Management has to maintain inventories of:
1) Raw-materials and parts
2) Semi-finished goods
3) Finished goods
Management has to balance the benefits of holding inventories against costs associated with holding inventories
like – storage space costs, insurance costs, risk of damage and spoilage in keeping stocks etc.
(vi) Packaging and Labeling:

Packaging and labeling are an important aspect of logistics management. Packaging implies enclosing or
encasing a product into suitable packets or containers, for easy and convenient handling of the product
by both, the seller and specially the buyer.
Packaging facilities the sale of a product. It acts as a silent salesman. For example, a fancy and
decorative packaging of sweets, biscuits etc. on the eve of Diwali, makes for a good sale of such items.
Labeling means putting identification marks on the package of the product. A label provides information about –
date of packing and expiry, weight or size of product, ingredients used in the manufacture of the product,
instructions for sale handling of the product, price payable by the buyer etc.
Labeling is a strong sales promotion tool. The consumer who is persuaded to read the label may, in fact, try to
buy the product; even though he/she had no such premeditation (advance idea).
(vii) Warehousing:
Storage or warehousing is that logistical activity which creates time utility by storing goods from the time of
production till the time these are needed by ultimate consumers.
Here, the management has to decide about:
1) The number and type of warehouses needed and
2) The location of warehouses.
3) The above two decisions depend on the desired level of customer service and the distance
between the supply source and final destination i.e. markets.
(viii) Transportation:
Transportation is that logistical activity which creates place utility.
Transportation is needed for:
1) Movement of raw-materials from suppliers to the manufacturing unit.
2) Movement of work-in-progress within the plant.

3) Movement of finished goods from plant to the final consumers.
Major transportation systems include:

1) Railways
2) Roadways
3) Airways
4) Waterways
5) Pipelines.
The choice of a particular mode of transportation is dependent on a balancing of
following considerations:
1) Speed of transportation system
2) Cost involved in transportation
3) Safety in transportation
4) Reliability of transportation time schedules
5) Number of locations served etc.

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KD COMMERCE CLASSES

UGC NET Commerce & Management

DADDY COOL, HARDOI ROAD BALAGANJ LUCKNOW

The Five Concepts under Marketing

2) The Product Concept.

3) The Selling Concept.

5) The Societal Marketing Concept.

2 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Starting point Factory Target Market

Focuses on Product Customer needs

Perspective Inside-out Outside-in

Essence Transfer of title and possession Satisfaction of consumers

Business Planning Short term Long term

Orientation Volume oriented Profit oriented

Means Heavy selling and promotion Integrated marketing

Price Cost of Production Market determined

2) Functional Approach in studying marketing

3) Institutional Approach in studying marketing

4) Decision-making Approach in studying marketing

5) Legal Approach in studying marketing

6) Economic Approach in studying marketing

7) Systems approach in studying marketing

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Topic – 2 Marketing Channels

4 types of Marketing Channels

2) Manufacturer to Retailer to Consumer

3) Manufacturer to Wholesaler to Consumer

4) Manufacturer to Agent to Wholesaler to Retailer to Consumer

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Important functions of a good marketing channel are as follows

5 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Topic – 3 Marketing mix

6 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Modified and expanded marketing mix: 7 Ps

7 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

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Shimizu's 4 Cs: in the 7Cs Compass Model

The 7Cs Compass Model comprises:

9 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Topic – 4 Market segmentation

Definition and brief explanation

Market segmentation strategy

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11 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Topic – 5 Market targeting

We can define the term as:

Procedure of Market Targeting:

12 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

2. Selecting Market Segments:

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Topic – 7 Product concept

Product Line Extension

14 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

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Topic – 7 Product life-cycle

Extending the product life cycle

Characteristics of PLC stages

16 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Identifying PLC stages

17 | Page Prepared by Umakant Annand(UGC NET Commerce, MCom, MBA)

Topic – 8 New product development

Topic – 9 Pricing Decision