Cma Notes

GOBIND KUMAR JHA 9874411552
Marketing Management
Unit – 1: Introduction: Concepts of Market and Marketing
Market: A market is a process, one of the variety of systems, institutions, procedures, social relations and infrastructure
whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on
sellers offering their goods or services in exchange for money or any other consideration from buyers. The concept of a
market is to think of it as consisting of all the people or organizations that may have an interest in purchasing products
or services supplied or rendered by a trading/ manufacturing concern. In other words, a market comprises of all
customers/customer’s who have needs that may be fulfilled by an organisation’s offerings. Yet just having a need is not
enough to consider the concept of a market. Some other factors should also be considered at the time of defining a
market. The first factor is that markets consist of customers who are qualified to make a purchase. Qualified customers
are those who seek a solution to a need. They are eligible to make a purchase and possess the financial ability to make
that purchase. Ultimately they have the authority to make the decision.
A customer must meet all the factors listed above, though for some markets the customer may have a
surrogate who will handle some of these qualifications for a targeted customer. For instance, a market may consist of
tin-age customers who have a need for certain toys, shoes or clothing items but the actual purchase may rest with their
parents. So the parents could possibly assume one or more surrogate roles (e.g. financial ability, authority) that will
result in the tin-ager being a qualified customer.
Marketing: Marketing is the activities related to market by way of creating consumer value in the form of goods,
services or ideas that can improve the customer’s life. It is an organizational function charged with defining customer
targets and the best way to satisfy needs and wants competitively and profitably.
Concept of Marketing:
i. Traditional Concept:
a. Production Oriented;
b. Sales Oriented.
ii. Modern Concept:
a. Consumer Oriented;
b. Socially Oriented.
Definition of Marketing: The American Marketing Association (AMA) defined marketing as “The performance of
business activities directed toward, and incident to, the flow of goods and services from producer to consumer or user.”
The definition above focuses on the distribution aspect of marketing and don’t include the ‘Four P’s’. product,
price promotion, place (distribution). In 1985, AMA changed their view and defined marketing as ‘The process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives.
The Chartered Institute of Marketing opined marketing as ‘ A management process that identifies, anticipates
and satisfies customer requirements profitably.
William Stanton defined marketing as a ‘Total system interacting business activities designed to plan, price,
promote and distributing wants satisfying products and services to present and potential customers.
Modern Marketing Concept:

i. Understand and meet customers’ need;
ii. Meet organizational goals;
iii. Integrate Marketing activities;
iv. Satisfy customers better than the competition.
Page 1
The Seven Steps in the Marketing Process:
 Understand the market wants/needs of interest
 Based on relative size and needs of the market, select certain segments of the market that are of the most interest to
you and your organization
 Thoroughly describe these segments based on their individual needs
 Create a product or service that will meet the specific needs identified
 Communicate the concept of the product or service to the targeted customer in a way that makes sense to the
customer
 Deliver the product or service to the targeted customer in a way that will be convenient to the customer
 Solicit feedback from the customer about how your product or service could be improved to meet the customers’
needs even better.
Features of Marketing Management:

 It is an economic process.
 It holds marketing programmes like planning, organizing, producing, pricing, distributing etc.
 It accomplishes organizational goals and objectives.
 It creates marketing organization.
 It determinates policies and programmes.
 It controls different activities.
 It evaluate performance.
Features of Marketing:
1. Economic Process;
2. Dynamic Process;
3. Creative Thinking;
4. Market Research;
5. Satisfaction of Needs;
6. Marketing Mix;
7. Legal System;
8. Social Responsibility.
Essential Elements of Marketing:

1. Needs, Wants and Demand;
2. Products and Services;
3. Value Satisfaction and Quality;
4. Exchange Transaction and Relationship;
5. Markets.
Importance of Marketing:
1. Creation of demand for goods & services;
2. Balance between demand & supply;
3. Sales promotion;
4. Means of living;
5. Standard of living;
6. Risk bearing capacity;
7. Sense of security;
8. Survival of business;
9. Creation of various utilities;
Page 2
10. Promotion of global trade;
11. Exchange of culture;
12. Social service.
Limitations of Marketing:
(i) Encourages Unwanted Purchase;
(ii) Misleads Customers;
(iii) Discrimination in Customer selection;
(iv) Creating Environmental Waste;
(v) Encroachment in customer’s Privacy.
Marketers Duty:
1. Target Markets,
2. Products,
3. Promotion,
4. Distribution,
5. Pricing
6. Support Services.
Marketing Environment:
1. Micro Environment:
i. Organization:
ii. Suppliers:
iii. Marketing Intermediaries:
iv. Customer Markets:
v. Competitors:
vi. Public:
2. Macro Environment:
i. Demographic:
ii. Political:
iii. Economic:
iv. Socio-Cultural:
Page 3
v. Natural:
vi. Technological and Legal:
Global Marketing
Marketing Challenges in the 21st Century: The marketing concept has changed dramatically over the last several
decades and recently the focus has increasingly moved to customers (versus products and selling) marketing globally
and the various technology issues that impact the market. In addition, there is renewed emphasis in marketing on
creating and innovating with new and better products and services rather than just competing against other firms and
following the marketing patterns established by competitors.
Porter’s 5 Forces Model of Competition: Marketing is facing different challenges in the 21st century to meet
these before entering the business Porter model can be used to analyse the environment both for new and existing
business and can be used to overcome and meet the challenges.
i. Threat of New Entrants: Ration of new entrants in the industry greater the ratio greater will be intensity of
competition.
ii. Bargaining Power of Buyers: When competition is intense and number of manufacturer is greater the buyer have
more options for product switching over this will increase the buying power of buyer.
iii. Threat of Substitute: As obvious from the term greater the threat of new entrants will result in greater higher
competition that in term will result in increase in the number of substitute.
iv. Bargaining Power of Suppliers: Greater number of the suppliers will provide the stronger buying power to the
manufacturer/customer and vise versa.
v. Rivalry Among Competing Firms in Industry: Larger number of the manufacturers and greater number of product
variety increase the rivalry among the competitors, which demands for more quality and customer satisfying
products in order to meet the competition.
MCQ Statement
1. A cluster of complementary goods and services across diverse set of industrial is called as meta market.
2. Marketer, Suppliers or vendors, Distributors or retailers are considered a “key player” in marketing industry.
3. Marketing Mix is the most visible part of the marketing strategy of an organization.
4. The culture of a company is conveyed through rites, myths, rituals.
5. “Image building” objectives are common in oligopoly of market structure.
6. Company’s or brand’s reliability, competitive prices, quality and reliability, and an effective sales force are required to
deal with business market.
7. Core Competency provides potential access to a wide variety of markets, increases perceived customer benefits.
8. A position, in which a company is in a strong but not foremost position, that is satisfied to live at this level and enjoys
its market shares, is called market follower.
9. Augmented product or service is the part of the product in the form of additional consumer services and benefits
built around the core product and actual product.
Page 4
10. Marketing has to take care of profitability, think about customer.
11. “Marketing is a human activity directed at satisfying needs and wants through exchange process.” Philip Kotler
opined it.
12. “Marketing can be defined as the performance of business activities that direct the flow of goods and services from
the producer to consumer or user.” American Marketing Association opined it.
13. Marketing does Maximize customer satisfaction, Maximization of profit.
14. Customers’ needs, Customers’ wants, Customers’ desires does we know from marketing and satisfied.
15. Marketing is a critical area of business, a smooth distribution system.
16. Marketing today focusing it’s attention on the consumers, on the satisfaction of their needs.
17. Marketing involves buying function, assembling function and selling function, marketing involves physical
distribution are inherent in marketing process.
18. Marketing is a process which aim at satisfaction of customer needs.
19. Marketing is defined as a social and managerial process by which individuals and organizations obtain what they
need and what through value creation and exchange.
Page 5
Unit – 2: Consumer Behavior and Market Segmentation
Meaning: Market segmentation is the process of defining and subdividing a large homogeneous market into clearly
identifiable segments having similar needs, wants or demand characteristics. It is the identification of portions of the
market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential
customers. Its objective is to design a marketing mix that precisely matches the expectations of customers in the
targeted segment. Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a
market made up of people or organizations with one or more characteristics that cause them to demand similar product
and/or services based on qualities of these products such as price or function. A true market segment is distinct from
other segments (different segments have different needs).
Steps involved in Market Segmentation:

1. Identify the Target Market
2. Identify expectations of Target Audience
3. Create Subgroups
4. Review the needs of the Target Audience
5. An appropriate name for Market Segment
6. Marketing Strategies
7. Evaluation of the behavior of market segments
8. Size of the Target Market
Requirements of Market Segmentation:

1. Identifiable
2. Accessible
3. Substantial
4. Unique needs
5. Durables
Bases for Segmentation:
Geographic
Demographic
Customer Psychographic
Market
Behavioural
Market
Segmentation Geographic
Business
Market Customer Type
Buyer Behaviour
Page 6
Customer Market Segmentation:
(i) Geographic Segmentation:
 Region: by continent, country, state, or even neighborhood
 Size of metropolitan area: segmented according to size of population
 Population density: often classified as urban, suburban or rural
 Climate: according to weather patterns common to certain geographic regions
(ii) Demographic Segmentation:
 Age
 Gender
 Family Size
 Family Lifecycle
 Generation: Baby-boomers, Generation X etc.
 Income
 Occupation
 Education
 Ethnicity
 Nationality
 Regions
 Social Class
(iii) Psychographic Segmentation:
 Activities
 Interests
 Opinions
 Attitudes
 Values
(iv) Behavioural Segmentation:
 Benefits Sought
 Usage Rate
 Brand Loyalty
 User Status: potential, first-time, regular, etc.
 Readiness to buy
 Occasions: holidays and events that stimulate purchases.
Target Market
Target Market involves breaking a market into segments and then concentrating marketing efforts on one or a few key
segments. Target market can be the key to a small business’s success. The beauty of target marketing is that it makes
the promotion, pricing and distribution of the products and/or services easier and more cost-effective. Target marketing
provides a focus to all the marketing activities. If, for instance, someone opens a home delivery catering business
offering lunch and dinner in the client’s home, instead of advertising in a newspaper, he could target the market with a
leaflet campaign inserting it within the newspaper that went only to residents of a particular locality. Target customer is
a specific group of customers at which a company aims its products and services. Target customers are those who are
most likely to buy from definite marketers. Resistance of temptation is too general in the hopes of getting a larger slice
of the market.
Page 7
These are some questions for dealing with target customers:
 Are the target customers male or female?
 How old are they?
 Where do they live? Is geography a limiting factor for any reason?
 What do they do for living?
 How much money do they make? This is most significant if products are relatively expensive or luxury items.
 What other aspects of their lives matter? If the target is to launch a water tank service on the roof, target
customers probably own their homes.
Market Share:
Niche Market: A niche market is the subset of the market on which a specific product is focusing. It defines the specific
products features aimed at satisfying specific market needs, as well as the price range, production quality and the
demographics that is intended to impact. Every single product that is on sale can be defined by its niche market. As of
special note, the products aimed at a wide demographic audience, with the resulting low price (due to price elasticity of
demand) are said to belong to the mainstream niche – in practice referred to only as mainstream or of high demand.
Narrower demographics lead to elevated prices due to the same principle. So to speak, the niche market is the highly
specialized market that tries to survive among the competition from numerous super companies.
MCQ Statement
1. In latent demand consumers may share a strong need that cannot be satisfied by an existing product.
2. A change in an individual’s behavior prompted by information and experience refers to learning concept.
3. Obtaining satisfaction through fulfilling one’s potential is called self-actualisation.
4. Listing alternative that will solve the problem at hand and determining the characteristics of each occurs during
evaluation of alternatives of the final consumer’s decision process.
5. A set of shared values, attitudes, beliefs, artefacts and other symbols is called culture.
6. Mature consumers are becoming a very attractive market: they are the ideal market for exotic travel, restaurants,
high-tech home entertainment products, leisure goods and services, and designer furniture and fashions.
7. A buyer’s decisions are influenced by personal characteristics such as the buyer’s age and life-cycle stage,
occupation, economic situation, lifestyle, and personality and self-concept.
Page 8
8. A person’s attitudes fit into a pattern, and to change one attitude may require difficult adjustments in many others.
Thus, a company should usually try to fit its products into existing attitudes rather than attempt to change attitudes.
9. If people that take cruise ship vacations do so because of “gambling,” “fun,” or “for adventure or educational
purposes,” then it is possible to segment this market based on what might be called benefit segmentation.
10. A marketing firm classifies customers as nonusers, ex-users, potential users, first-time users, and regular users. User
status is the firm most likely using to segment its market and device strategies for selling its products and services.
11. Adopter group ‘laggards’ are traditional bound.
12. Persons own living or interacting and acting pattern is classified as life style.
13. Customers keeping such information that supports their attitudes towards brand is classified as selective
distoration.
14. Personal factors include personality and self-concept.
15. Advertising affecting consumer’s sub-conscious minds are classified as subliminal advertising.
16. Market segmentation depends on differences in income levels, taste, preferences, climate and geographical
conditions.
17. Target Market refers to a specific group of customer, a specific geographical location.
18. Broadly Market Segmentation can be divided into consumer market segmentation, industrial market
segmentation.
19. Family life cycle is not the example of Geographic Segmentation.
20. Districts is not the example of demographic segmentation.
Page 9
Unit – 3: Product
Market Mix: Today is the era of value driven marketing. The term Marketing mix originally became popularized after
Neil H Borden published his 1964 article. ‘The Concept of Marketing Mix.’ Borden began using the term in his teaching in
the late 1940’s after James Culliton had described the marketing manager as a ‘mixer of ingredients’. The ingredients in
Borden’s marketing mix included product planning, pricing, branding, distribution channels, personal selling, and
advertisement. Promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E Jerome
McCarthy (1960) later grouped these ingredients into the four categories that today are known as the 4 Ps of marketing.
Gradually the concept of 4 Ps becomes popular which means – ‘putting the right product in the right place, at the right
price, at the right time.’ Marketing mix is a general phrase used to describe the different kinds of choices organizations
have to make in the whole process of bringing a product or service to market.
Popular Marketing Mix – 4Ps

1. Product: -
2. Price: -
3. Place: -
4. Promotion: -
Page 10
Summary of Marketing Mix Decisions
Product Price Place Promotion
Brand name Pricing strategy Distribution Promotional
Functionality (skim, penetration etc.) Channel Market Strategy (push, pull, etc.)
Styling Quality Suggested retail Coverage Advertising
Safety Packaging price Volume (inclusive, selective, or Personal selling
Repairs and discounts and exclusive) & sales force
Support wholesale Distribution Sales promotions
Warranty pricing Cash Specific channel Public relations
Accessories and and early Members & publicity
Service payment Inventory Marketing
discounts Management Communication
Seasonal pricing Warehousing Budget
Bundling Price Distribution
Flexibility Price Centers Order
discrimination Processing
Transportation
Reverse logistics
Concept of 7Ps – Extended Marketing Mix

1. Product
2. Price
3. Physical Environment
4. Promotion
5. Place
6. People
7. Process
Concept of 4 Cs
1. Consumer
2. Cost
3. Convenience
4. Communication
Concept of Product:
Core Product: It is the core, problem solving benefits that consumers are really buying when they obtain a product or
service. It answers the question what is the buyer really buying?
Page 11
Actual Product: This may have as many as five characteristics that combine to deliver core product benefits. They are:
 Quality level
 Features
 Design
 Brand name
 Packaging
Augmented Product: It includes any additional consumer services and benefits built around the core and actual
products. Therefore, a product is more than a simple set of tangible features. Consumers tend to see products as
complex bundles of benefits that satisfy their needs. When developing products, marketers must identify the core
consumer needs that the product will satisfy. They must design the actual product and find ways to augment the
product in order to create the bundle of benefits that will best satisfy consumer’s desires for an experience.
Product Classifications:
Product may be classified in the following manner:
Durable products:
Consumer products:
Convenience products:
Shopping products:
Specialty products:
Unsought products:
Industrial products:
Page 12
Product Differentiation: The concept of product differentiation was proposed by Edward Chamberlin in his 1933 Theory
of Monopolistic Competition. Product differentiation is a marketing process that showcases the differences between
products. Being unique in the marketplace provides distinct advantages. Differentiation looks to make a product more
attractive by contrasting its unique qualities with others competing products.
Branding:
Brand Experience, Brand Recognition and Brand Awareness:

The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand
experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within
the minds of people, consisting of all the information and expectations associated with a product, service or the
company providing them. Branding involves researching, developing and implementing brand names, brand marks,
trade characters and trademarks. Branding is the art and cornerstone of marketing. Branding is a task that requires a
significant contribution from marketing communications and is a long term exercise. A successful brand is one which
creates and sustains a strong, positive and lasting impression in the mind of a buyer.
An organisation’s approach to branding depends on its overall product mix and individual line strategy.
A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a
point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand
franchise. One goal in brand recognition is the identification of a brand without the name of the company present.
Brand awareness refers to customers’ ability to recall and recognize the brand under different conditions and link to the
brand name, logo and so on to certain associations in memory. It helps the customers to understand to which product or
service category the particular brand belongs and what products and services are sold under the brand name. it also
ensures that customers know which of their needs are satisfied by the brand through its products. Brand awareness is of
critical importance since customers will not consider the brand if they are not aware of it.
Effective brand names build a connection between the identity of the brand as it is perceived by the target
audience and the actual product/service. The brand name should be conceptually on target with the product/service.
Brand identity is fundamental to consumer recognition and symbolizes the brand’s differentiation from competitors.
Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a product’s
brand identity may acquire, gaining new attributes from consumer perspective but not necessarily from the marketing
communications an owner percolates to targeted consumers. Therefore, brand associations become handy to check the
consumer’s perception of the brand. Brand identity needs to focus on authentic qualities – real characteristics of the
value and brand promise being provided and sustained by organizational and/or production characteristics.
The objectives that a good brand will achieve include:
 Delivers the message clearly
 Confirms credibility of the concern
 Connects target prospects emotionally
 Motivates the buyer
 Concretes user loyalty
Page 13
Benefits of Branding:
The benefits of branding can be summarized in the following manner:
Customer’s Benefits:
 Easier Product identification
 Communicates features or benefits
 Helps products evaluation
 Establishes product’s position in the market
 Reduces risk in purchasing
Producer’s Benefits:
 Helps creates loyalty
 Defends against competition
 Creates differential advantage
 Allows premium pricing
 Helps targeting positioning
 Increases power over retailer
Retailer’s Benefits:
 Benefits from brand marketing support
 Attracts consumer
 Helps differentiate the product from competitors
Brand and Trade Mark:
Brand Equity:
Brand Equity is an asset. It is the value of a brand, based on the extent to which it has high brand loyalty, name
awareness perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel
relationships. Powerful brand names command strong consumer preference and are powerful assets.
The advantages of Brand Equity include:
 High consumer awareness and loyalty
 Easier to launch brand extensions because of high brand credibility
 A good defense against fierce price competition
 It is believed to be the company’s most enduring asset
Branding Strategy:
A producer has four choices when it comes to brand strategy. These are: -
 Line extensions
 Brand extensions
 Multi-brand
 New brands
Page 14
Packaging: Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage,
sale and use. Packaging also refers to the process of design, evaluation, and production of packages.
Functions of Packaging:
 Physical protection
 Barrier protection
 Containment
 Information transmission
 Marketing
Labeling: Labeling is describing someone or something in a word or short phrase. For example, describing someone who
has been reading books and journals regularly in a library as a reader.
The Product Life Cycle
Product development:
Introduction stage:
Growth stage:
Maturity stage:
Decling stage:
Page 15
New Product Development Strategy:
New Product Development Process:

Idea Generation
Idea Screening
Concept Development & testing
Market Strategy Development
Business Analysis
Research & Development
Market Testing
Commercialization
Market Testing: Market testing gives the marketer experience with marketing the product before going to the great
expense of full introduction. It lets the company test the product and its entire marketing programme – positioning
strategy, advertising, distribution, pricing, branding and packaging, and budget levels. Not all companies undertake the
market testing programme. Only in case of new market products, high risk, high investment cost influence factors –
market testing is necessary. If the product passes functional and consumer tests, the next step is test marketing, the
stages at which the product and marketing programme are introduced into more realistic market settings.
Page 16
MCQ Statement
1. Adding new features to a product is advocated by Product Approach.

2. A label performs several functions for a product. These include grades, promotes, describes except classifies.
3. Sterilization packaging systems have an impact on instruments, healthcare acquired infection, healthcare costs.
4. The stage in the product life cycle that focuses on using a cost-plus formula and creating product awareness and trial
is the introduction stage.
5. At the very least, the label identifies the product or brand. It might also describe several things about the product.
6. To achieve the marketing objectives for the brand and satisfy the desires of consumers, the aesthetics and
functional components of packaging must be chosen correctly.
7. Branding assists buyers in numerous ways. Branding enables suppliers to attract loyal and profitable set of
customers is not a direct consumer benefit derived from branding.
8. Your firm has chosen a few representative cities, and the sales force tries to sell the trade on carrying the product
and giving it good self exposure. The company outs on a full advertising and promotion campaign. Total costs exceed
Rs. 1 million. Your firm has decided to conduct a test market.
9. In the product development stage of new-product development, products often undergo rigorous tests to make
sure that they perform safely and effectively or that consumers will find value in them.
10. Under “When the costs of developing and introducing the product are low” circumstances might it be wise for a
company to do little or no test marketing.
11. Gradation means classification of standardized product in certain well defined classes or groups.
12. Goods are purchased from various places and or sources and assembled at one place to suit the requirement of
customer is called as assembling.
13. “Standardization is extablishment of certain standards or specifications for products”. It may involve quality (colour,
taste, appearance, sweetness, purity) & quantity (weight, size, length etc).
14. Product must be exchangeable in terms of price or money.
15. Advertisement is not an example of tangible products.
16. Cloth is not an example of intangible products.
17. Social welfare is not the essential features of product.
18. Goat meat is the example of non-durable goods.
19. Banking service is the example of service.
20. Example of Specialty goods are motor car apartment etc.
Page 17
Unit – 4: Pricing, Distribution Channels and Physical Distribution
Introduction: Pricing is the process of determining what a company will receive in exchange for its products. Pricing
factors are manufacturing cost, market place, competition, market condition, and quality of product. It is also a key
variable in microeconomic price allocation theory. Pricing is a fundamental aspect of financial modeling and is one of the
four Ps of the marketing mix. It is the only revenue generating element amongst the four Ps, the rest being cost centers.
Importance of Pricing:
1. Most Flexible Marketing Mix
2. Setting the Right Price
3. Trigger of First Impressions
4. Major Factor in Sales Promotion
5. Maximization of Profit
Nine Laws of Price Sensitivity & Consumer Psychology:

Thomas Nagle and Reed Holden have outlined nine laws or factors that influence how a consumer perceives a
given price and how price-sensitive he/she is likely to be with respect to different purchase decisions:
(i) Reference Price Effect: Buyer’s price sensitivity for a given product increases the higher the product’s price
relative to perceived alternatives. Perceived alternatives can vary by buyer segment, by occasion and other
factors.
(ii) Difficult Comparison Effect: Buyers are less sensitive to the price of a known / more reputable product when
they have difficulty comparing it to potential alternatives.
(iii) Switching Costs Effect: The higher the product-specific investment a buyer must make to switch suppliers, the
less price sensitive that buyer is when choosing between alternatives.
(iv) Price – Quality Effect: Buyers are less sensitive to price the more that higher prices signal higher quality.
Products for which this effect is particularly relevant include: image products, exclusive products and products
with minimal cues for quality.
(v) Expenditure Effect: Buyers are more price sensitive when the expense accounts for a large percentage of
buyers’ available income or budget.
(vi) End – Budget Effect: The effect refers to the relationship a given purchase has to a larger overall benefit and is
divided into two parts: Derived demand. The more sensitive buyers are to the price of the end benefit, the more
sensitive they will be to the prices of those products that contribute to that benefit. Price proportion cost : The
price proportion cost refers to the percent of the total cost of the end benefit accounted for by a given
component that helps to produce the end benefit (e.g., CPU and PCs). The smaller the given components share
of the total cost of the end benefit, the less sensitive buyers will be to the component’s price.
(vii) Shared-cost Effect: The smaller the portion of the purchase price buyers must pay for themselves, the less price
sensitive they will be.
Page 18
(viii) Fairness Effect: Buyers are more sensitive to the price of a product when the price is outside the range they
perceive as fair or reasonable given the purchase context.
(ix) The Framing Effect: Buyers are more price – sensitive when they perceive the price as a loss rather than a
forgone gain and they have greater price sensitivity when the price is paid separately rather than as part of a
bundle.
General Pricing Approaches:
Cost – plus Pricing

Cost
Based Break Even Analysis
Target Profit Pricing
Pricing Value/
Approaches Customer
Based
Going rate Pricing

Competition
Based
Sealed-bid Pricing
Cost – plus Pricing: The simplest pricing method is cost-plus pricing which means adding a standard markup to the cost
of the product. A contractor, for example, submits the job bids by estimating the total project cost and adding a
standard markup for profit.
Break even Analysis and Target Profit Pricing: Another cost-oriented pricing approach is break-even pricing (or a
variation called target profit pricing) the firm tries to determine the price at which it will break even or make the target
profit it is seeking. This pricing method is also used by public utilities, which are constrained to make a fair return on the
investment.
Target Profit Pricing: target pricing uses the concept of a break-even chart, which shows the total cost and total revenue
expected at different sales volume levels.
Value/Customer Based Pricing: A sizable number of marketing organizations are basing their prices on the product’s
perceived value. Value-based pricing uses buyer’s perceptions of value, not the seller’s cost, as the key to pricing. Value-
based pricing means that the marketer cannot design a product and marketing programme and then set the price. Price
is considered along with the other marketing mix variables before the marketing programme is set.
Competition-Based Pricing: Consumers will base their judgments of a product’s value on the prices that competitors
charge for similar products. One form of competition-based pricing is going-rate pricing, in which a firm bases its price
largely on competitor’s prices, what less attention paid to its own costs or to demand. The firm might charge the same,
more, or less than its major competitors. In oligopolistic industries that sell uniform commodity such as steel, paper, or
fertilizer, firms normally charge the same price. The smaller firms change their prices when the market leader’s prices
Page 19
change, rather than when their own demand or costs change. Some firms may charge a bit more or less, but they hold
the amount of difference constant.
New-Product Pricing Strategies:
Market – Skimming pricing: Many manufacturers that introduce new products initially set high prices to skim revenues
layer by layer from the market. Intel is a prime user of this strategy. This is popularly known as market – skimming
pricing. Market skimming makes sense only under certain conditions. First, the product’s quality and image must
support its higher price and enough buyers must want the product at that price. Second, the costs of producing a smaller
volume cannot be so high that they cancel the advantage of charging more. Finally, competitors should not be able to
enter the market easily and undercut the high price.
Market – Penetration Pricing: Rather than setting a high initial price to skim off small but profitable market segments,
some organizations use market-penetration pricing. They set a low initial price in order to penetrate the market quickly
and deeply to attract a large number of buyers and win a large market share. The high sales volume results in falling
costs, allowing the firm to cut its price even further. Several conditions must be met for this low-price strategy to work.
First, the market must be highly price sensitive so that a low price products more market growth. Second, production
and distribution costs must fall as sales volume increases. Finally, the low price must help keep out the competition and
the penetration price must maintain its low-price position. Otherwise, the price advantage may give negative feedback.
Product Mix Pricing Strategies: The strategy for setting a product’s price often has to be changed when the product is
part of a product mix. In this case, the firm looks for a set of prices that maximizes the profits on the total product mix.
Pricing is difficult because the various products have related demand and costs and face different degrees of
competition. Following are the five product mix pricing situations:
1. Product Line Pricing
2. Optional – Product Pricing
3. Captive Product Pricing
4. By – Product Pricing
5. Product Bundle Pricing
Marketing Channel: Marketing channel is a set of practices or activities necessary to transfer the ownership of goods,
and to move goods, from the point of production to the point of consumption and as such, which consists of all the
institutions. Basically it is a set of interdependent organizations involved in the process of making a product or service
available for use or consumption by the consumer or business user. A marketing channel can be as short as being direct
from the vendor to the consumer or may include several inter-connected intermediaries such as wholesalers,
distributors, agents, and retailer.
Logistics: Logistics is defined as a business planning framework for the management of material, service, information
and capital flows. It includes the increasingly complex information, communication and control systems required in
today’s business environment. Logistics involves the integration of information, transportation, inventory, warehousing
material handling and packaging and often security.
Page 20
Logistics Management: Logistics management decisions are often said to belong to one of three levels; the strategic, the
tactical, or the operational level. It is the management of the flow of materials and services between the point of origin
and the point of use in order to meet the requirements of customers or corporations. The decisions associated with
logistics management cover both the long-term and short-term.
MCQ Statement
1. Public networking websites are social media.

2. Forms of direct marketing includes direct mail marketing, catalog marketing, personal selling.
3. Kind of direct marketing by which an offer, reminder or announcement is sent to people at specific virtual or
physical address is called direct mail marketing.
4. Green marketing is a part of relationship marketing.
5. Services or products that customers buy immediately after noticing are classified as convenience products and
services.
6. Group of online social communities such as virtual worlds, social networking sites and blogs where people exchange
opinions is classified as online social networks.
7. Kind of direct marketing done by mailing print, digital or video catalog is pre-sented online or made available in
stores is classified as catalog marketing.
8. In Green marketing, products are sold related with eco-friendly.
9. Determining the promotion budget on the basis of financial availability of capital is characteristic of affordable
method budget method.
10. Setting the promotion budget so as to match the budgets of the competitors is characteristic of competitive-parity
budget method.
11. Price is the amount of money charged for a product or service.
12. Price is the sum of the values that consumers exchange for the benefits of having or using the product or service.
13. The most important features of price in relation to marketing are tool of income, flexibility, tool to fight
competition.
14. Marketing mix is the internal factors of pricing.
15. Buyer behavior is the external factor of pricing.
16. Channel of distribution is also known as trade channel.
17. In distribution channels goods passes from the primary producer to the ultimate consumers through different hands, cross
several hurdles, travel long distance.
18. Groceries, meats, fruis are the examples of convenience goods.
19. The objectives of channel of distribution are to make the product easily available in the target market, smooth movement of
the products from the producers to consumers, information communication from the producer to consumers.
20. Types of marketing channels are consumer, marketing channels, industrial marketing channel.
Page 21
Unit – 5: Promotion and Recent Developments in Marketing
Promotion
Introduction: Promotion is all about organization communicating with customers. It is not enough for a business to have
good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated
to customers. In marketing, this is commonly known as promotion.
The Marketing Promotion Mix:
 Advertising
 Personal selling
 Sales promotion
 Public relations
 Corporate image
 Direct Marketing
 Exhibitions
Promotion Mix Strategies:

Marketers can choose from two basic promotion mix strategies – push promotion or pull promotion. The
relative emphasis on the specific promotion tools differs for push and pulls strategies.
Advertising:
Advertising is a collection of activities by which visual and oral messages are used to pass a message to a
particular target group in order to inform and influence them to buy the product or use the service or act in favour
towards ideas, persons, trademarks or institutions featured.
Role of Advertising in Marketing Mix:
 Information and Education

 Conviction and Persuasion
 Creating Customers’ Confidence
 Influence Target Audience
 Introduction of New Products
 Developing Brand Image and Brand Loyalty
 Effective Distribution and market Expansion
Page 22
Five M’s of Advertising:
 Mission
 Money
 Message
 Media
 Measurement
Personal Selling:
Personal selling is the interpersonal arm of the promotion mix. Sales people represent the firm to the customers
and act as an intermediary linking the customer to the firm. The direct presentation of a product to a prospective
customer by a representative of the selling organization is termed as personal selling. Personal selling is the personal
communication of information to persuade somebody to buy something. Personal selling occurs when a representative
comes in direct contact with a customer in order to inform a client about a goods or service to get a sale. It is in fact
performed by person-to-person dialogue between prospective buyer and the seller through direct human contact for
matching products to needs. It involves developing relationships between buyer and the seller to discover the needs of
the customers. The benefits of the products that can satisfy the needs of customer can also be communicated to
customers.
Features of Personal Selling:
 One to one control

 Identifying qualified potential customers
 Exhibits Product Features
 Presenting customer benefits
 Handling objections
 Building relationships
Advantages and Limitations of Personal Selling:

Today’s customer’s prefer suppliers who can sell and deliver a co-ordinated set of products and services to many
locations. They favor suppliers who can quickly solve problems that arise in their different parts of the nation or world
and who can work closely with customer teams to improve products and processes. For these customers, the sale is only
the beginning of the relationship. In spite of so many benefits Personal Selling has got certain limitations also:
Advantages:
 It can be adapted for individual customers.
 It can be focused on prospective customers.
 It results in the actual sale, while most other forms of promotion are used in moving the customer closer to the
sale.
Limitations:
 Personal selling is expensive for maintaining personal contact. It is also costly to develop and operate a sales
force.
 It is labour intensive process. Firms will have to engage qualified sales persons for this job.
 It may be difficult to attract high-caliber people.
Page 23
Sales Promotion:
Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is
designed to be used as a short-term tactic to boost sales. It is not really designed to build long-term customer loyalty.
Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service. Whereas
advertising and personal selling offer reasons to buy a product or service, sales promotion offers reasons to buy now.
Some popular sales promotion tools are:
 Buy One-Get One Free:
 Price packs:
 Customer Relationship Management:
 New Media:
 Free Gifts:
 Discounted Price:
 Joint Promotions:
 Free Samples:
 Competitions and Prizes:
 Patronage rewards:
 Finance deals:
Advantages and Limitations of Sales Promotion:
Advantages:
 Effective at achieving a quick to sales

 Encourage customers to trial a product or switch brands
Limitations:
 Sales effect may only be short-term

 Customers may come to expect or anticipate further promotions
 May damage brand image
Page 24
Public Relations:
Public relations abbreviated as PR primarily deals with enhancing and maintaining the image for businesses,
non-profit organizations, events or high-profile people, such as celebrities and politicians. An earlier definition of public
relations given by The First World Assembly of Public Relations Associations, held in Mexico City, in August 1978, was the
art and social science of analyzing trends, predicting their consequences, counseling organizational leaders and
implementing planned programmes of action, which will serve both the organization and the public interest. Others
define it as the practice of managing communication between an organization and its publics. Public relations provides
an organization or individual exposure to their audiences using topics of public interest and news items that provide a
third-party endorsement and do not direct payment. Common activities include speaking at conferences, working with
the media, crisis communications, social media engagement and employee communication.
Marketing Research:
Basically, marketing research conduct for discovering what people want, need or believe. It can also involve
discovering how they act. Once that research is completed, it can be used to determine how to market the product.
During early part of the last century, marketing research began to be conceptualized and put into formal practice as an
offshoot of the advertising boom of the golden age of radio in the United States. Advertisers began to realize the
significance of demographics revealed by sponsorship of different ratio programmes.
Techniques of Marketing Research:

Once the need for marketing research has been establishes, the technique for a marketing research project
involves following steps:
Defining Problem
Determination of Research Design
Identify Data Type & Sources
Designing Data Collection Form & Questionnaire
Determine Sample Plan & Size
Collection of Data
Analysis & Interpretation of Data
Preparation of Research Report
Social Marketing:
There have been critics of the expansion of marketing beyond its traditional private sector origins from the
beginning. However, many scholars and practitioners now see social marketing as a viable subject of research, teaching,
and practice. They see the field as growing and expanding and thereby increasing the relevance of marketing education
and scholarship to the problems of the broader society.
The Emergence of Social Marketing is a natural outgrowth of several developments in and out of
marketing, including the following:
 Increased needs of non-business organizations for marketing services,
 Attacks on marketing’s negative impact on society,
Page 25
 The emergence of exchange theory,
 The coalescence of social marketing oriented theory, and
 The decline of consensus-oriented perceptions of social reality.
Features of Social Marketing:

The features of Social Marketing are:
 Apply commercial marketing technology,
 Have as its bottom line the influencing of voluntary behavior, and
 Primarily seek to benefit individuals/families or the broader society and not the marketing organization
itself.
Online Marketing:
Every company needs to develop a logical framework for its operations as to meet its business objectives. The
overall business objectives need to be broken to milestones, the company has to achieve within a certain time frame. To
achieve these milestones, companies need to develop strategies around the key activities.
One of the key activities is in strategy development is marketing. The strategy developed to achieve
business objectives through marketing is called as a marketing plan. An internet marketing strategy building begins with
understanding the current market scenario. After analyzing market scenario, companies develop marketing plan and
specific internet related objectives.
Direct Marketing:
Direct marketing is a type of advertising wherein physical marketing materials are given to people so as to
communicate information regarding services or products. Direct marketing is exactly what it sounds like – it enables
companies and non-profits organizations to communicate directly with the customer. Different kinds of direct marketing
materials comprise of mailers, fliers, mobile phone text messaging, catalog distribution, promotional letters, etc.
Direct Marketing Channels:

Any channel/media which management can use to deliver a communication to a customer can be used in direct
marketing. These are:
(a) Magazines and Newspapers
(b) Insert Media
(c) Direct Mail
(d) Syndicated Mailing
(e) Email Campaigns
(f) Telemarketing
(g) SMS
(h) Social Media
(i) Voicemail Marketing
(j) Direct Response Radio
Service Marketing:
A service is an act or performance offered by one party to another. They are economic activities that create
value and provide benefits for customers at specific times and places as a result of bringing desired change.
Page 26
Service is an act or performance offered by one party to another. They are economic activities that
create value and provide benefits for customers at specific times and places as a result of bringing about a desired
change in or on behalf of the recipient of the service. The term service is not limited to personal services like medical
services, beauty parlors, legal services, etc. According to the marketing experts and management thinkers the concept of
services is a wider one.
Green Marketing:
Green marketing is the marketing of environmentally friendly products and services. It is becoming more
popular as more people become concerned with environmental issues and decide that they want to spend their money
in a way that is kinder to the planet.
Green marketing can involve a number of different things, such as creating an eco-friendly product,
using eco-friendly packaging, adopting sustainable business practices, or focusing marketing efforts on messages that
communicate a product’s green benefits.
Green Marketing and Sustainable Development:

Green marketing is a typically practiced by companies that are committed to sustainable development and
corporate social responsibilities. More organizations are making an effort to implement sustainable business practices as
they recognize that in doing so they can make their products more attractive to consumers and also reduce expenses
including packaging, transportation, energy/water usage, etc.
Businesses are increasingly discovering that demonstrating a high level of social responsibility can
increase brand loyalty among socially conscious consumers. Public Works and Government Services Canada has
information on green procurement principles and resources for businesses. Ethical sourcing has become important to
companies and consumers alike.
The obvious assumption of green marketing is that potential consumers will view a product or service’s
“greenness” as a benefit and base their buying decision accordingly. The not-so-obvious assumption is that consumers
will be willing to pay more for green products than they would for a less-green comparable alternative product.
Rural Marketing:
National Commission on Agriculture defines rural marketing as “a process which starts with a decision to
produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and
institutional, based o technical and economic and considerations and includes pre and post harvest operations,
assembling, grading, storage, transportation and distribution.
According to Thomsen, the sturdy of rural marketing comprises of all the operations, and the agencies
conducting them, involved in the movement of farm produced food, raw materials and their derivatives, such as textiles,
from the farms to the final consumers, and the effects of such operations on producers, middlemen and consumers.
Consumerism:
According to Peter Drucker, “Consumerism actually should be, must be and I hope will be the opportunity of
marketing. This is what we in marketing have been waiting for”
Consumerism, the “social movement seeking to augment the rights and power of buyers in relation to
sellers,” (Kotler, 1972) It is manifest in new laws, regulations, and marketing practices, as well as in new public attitudes
toward government and business.
Page 27
MCQ Statement
1. Pricing strategy for new product through which revenues are collected from segments willing to pay higher prices is
classified as market skimming pricing.
2. New product pricing strategy through which company makes more profitable sales by selling out fewer units is
classified as price skimming.
3. Price leader of pricing policies may result in losing money on the product.
4. Pricing strategies related to product mix consists of product bundle pricing, by-product pricing, captive product
pricing.
5. In marketing theory, every contribution from the supply chain adds value to the product.
6. If a company believes that the company with the largest market share will enjoy the lowest costs and highest long-
run profits, that company will probably choose market share leadership pricing objectives as their primary course of
action.
7. Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-
penetration pricing and market-skimming pricing.
8. Leader pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and
win a large number of shares.
9. A channel consisting of new or more independent producers, wholesalers or retailers that are seeking to maximize
their own profits even at the expense of profits for the channel as a whole is a conventional distribution channel.
10. Promotion means to push forward or to advance an idea with a view to gaining acceptance and approval.
11. Product promotion is a communicative activity to push forward a product.
12. Promotion involves information, persuasion, and influence.
13. Promotion communication information to customers, users, reseller.
14. Promotion mix includes advertising, publicity, personal selling and promotion.
15. Organized movement by government agencies and citizens towards betterment of buyers as compared to sellers is
classified as consumerism.
16. Managerial approach which focuses on bringing up ideas that helps producing profits as well preserve living
environment is called environmental sustainability.
17. Classic examples of pleasing products are junk food and cigarettes.
18. Sustainable marketing principle which states that company invest most of its resources to customer value building is
classified as customer value marketing.
Page 28
Human Resource Management

Unit – 1: Nature and Scope
Introduction:
Human resource is the most valuable resource in any organization because it can function only through people.
Human Resource Management has come to be recognized as an inherent part of modern management, which is
concerned with the human resources of an organization. Its objective is to maintain better human relations in the
organization by the development, application and evaluation of policies, procedures and programmes relating to human
resources to optimize their contribution towards the realization of organizational objectives.
Concept of Human Resource Management:

Human Resource Management is the management of activities regarding people employed and working in an
organization. It is a managerial function that tries to match an organisation’s needs to the skills and abilities of its
employees. Human Resource Management is aimed at recruiting capable, flexible and committed people, managing and
rewarding their performance and developing key competencies.
Human Resource Management is focused on a number of major areas, including:

 Recruiting and Staffing
 Compensation and Benefits
 Training and Learning
 Labor and Employee Relations
 Organization Development
Definition of Human Resource Management:

Human Resource Management is the personnel function which is concerned with procurement, development,
compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards
the accomplishments of the organisation’s objectives.
Functions of Human Resource Management:

The functions of Human Resource Management are as follows:
a. Staffing
b. Human Resource Department
c. Compensation & Benefits
d. Safety & Health
e. Employee & Labor Relations
f. Human Resource Research
Now each function is discussed one by one:

a. Staffing: the organization can become effective when it posses the qualified persons, who are designated for specific
position along with the proper place & timing. This would make an organization to achieve its organizational
objectives. Organization gets such qualified employees on time when its HR department performs effective staffing
function. Following are the important activities of the staffing function of Human Resource Management.
Page 29
 Job Analysis: In job analysis, systematic effort is made to ascertain the knowledge, skills & duties necessary to
perform certain jobs in the organization.
 Human Resource planning (HRP): Human Resource Planning is the systematic activity of staffing function of Hr
department, in which the requirements of human resource are reviewed in order to confirm that the required
number of workers with the require skills & knowledge are made available when they are demanded.
 Recruitment: Recruitment is the systematic process of attracting & encouraging relatively large number of
applicants to apply for the required jobs of the organization.
 Selection: Selection is the final systematic process through which the organization identifies the best persons from
a pool of applicants for the job that can effectively fulfill the required criteria of performing the desired duties in
the organization.
b. Human Resource Development: Functions of human resource management include another important role of the HR
department in which the training & development of the employees is conducted along with the career planning. For
this purpose, certain activities including performance appraisals are performed that identifies the needs for training
& development of the specified employees. The training is designed & given to provide the employees with the
required skills & knowledge for their current positions of the jobs. While development is much broader than training
in which the future aspect of employees are covered by providing them sufficient & knowledge to perform more
complex duties of future jobs.
c. Compensation & Benefits: The HR department has also responsibility to perform the function of compensation &
employee benefits. The compensation is defined as all the rewards that are obtained by the employee as a result of
his employment. These rewards may take any of the following forms:
Pay: The money received by an employee for performing his job.

Benefits: Benefits are those extra financial rewards that are received other than pay. Benefits include sick leaves,
paid leaves, holiday & medical insurance.
Non-financial Rewards: There are also some non-financial rewards that are availed by the employees & which are
non-monetary in nature like pleasant working environment & delightedness of work performed etc.
d. Safety & Health: Safety & health is included in the functions of human resource management performed by the
Human Resource Department of the organization. In this function the safety of the employees form serious accidents
in working environment is ensured. Health is little different from safety in such a way that it is related to the normal
physical & mental well-being of employees that make them free from the illness. The safety & health issue of the
employees is very crucial for the Human Resource Department because employees are asset of the organization &
their good health in a safe working environment ensures the increased productivity & effectiveness of the
organization in the long run.
e. Human Resource Research: The human resource research is not nominated as a function of the human resource
management, but still it is considered to be the one of the functions of HRM because it does not require cost for
separate laboratory & provide effective solutions for many issues of the HR department.
Interrelationship of the HRM Functions:

All the functions of HRM are interrelated with each other & single decisions of HR department can affects many
areas of the organizations so management should keep focus on this fact while making certain policies & rules for
employees.
Page 30
Features of Human Resource Management:
The following are the features of Human Resource Management:
1. Pervasive force
2. Action oriented
3. Individually oriented
4. People oriented
5. Future oriented
6. Development oriented
7. Integrating mechanism
8. Comprehensive function
9. Auxiliary service
10. Inter-disciplinary function
11. Continuous function
Objectives of Human Resource management:

The principal objectives of Human Resource Management may be listed thus:
(a) Helps organization for reaching its goals
(b) Employs skills and abilities of the workforce efficiently
(c) Provides organization with well-trained and well-motivated employees
(d) Increases to the fullest the employee’s job satisfaction and self-actualisation
(e) Develops and maintain a quality of work life
(f) Communities Human Resource policies to all employees
(g) Ethically and socially responsive to the needs of society
Importance of Human Resource Management:

Importance of Human Resource management becomes significant for business organization due to several
reasons. These are:
(a) Creating a positive attitude among workers
(b) Facilitates professional growth
(c) Better relations between union and management
(d) Helps an individual to work in a group
(e) Identifies person for the future
(f) Allocating the jobs to the right person
Page 31
Personnel Management vs. Human Resource Management – A Comparative Discussion
Personnel Management Human Resource management

Traditional approach of managing people in the Modern approach of the managing people and their
organization strengths in the organization
Focuses on personnel administration, employee Focuses on acquisition, development, motivation and
welfare and labor relation maintenance of human resources in the organization
Assumes people as a input for achieving desired output Assumes people as an important and valuable resource
for achieving desired output
Personnel function is undertaken for employee’s Administrative function is undertaken for goal
satisfaction achievement
Job design is done on the basis of division of labor Job design function is done on the basis of group work
Employees are provided with less training and Employees are provided with more training and
development opportunities development opportunities
Decisions are made by the top management as per the Decisions are made collectively after considering
rules and regulation of the organization employee’s participation, authority, decentralization,
competitive environment
Focuses on increased production and satisfied Focuses on effectiveness, culture, productivity and
employees employee’s participation
Concerned with personnel manager Concerned will all level of managers from top to
bottom
It is a routine function It is strategic function
MCQ Statement
1. Human Resource Management (HRM) functions are not confined to business establishments; they are applicable to
non-business organization as well.
2. Organizational structure and design are not included in the scope of human resource management.
3. HRM differs from PM both in scope and orientation.
4. Political objectives is not an objective of Human Resource Management Function.
5. Outsourcing is the process by which employers transfer routine or peripheral work to another organization that
specializes in that work and can perform it more efficiently.
6. Agilent Tech companies were awarded as the best employers in 2006-2007 by Hewitt.
7. Organizations need to evolve HR policies as they ensure consistency and uniformity in treating people.
8. Human capital refers to education of firms workers, training of firm’s workers, skills and expertise of firm’s
workers.
9. The term procurement stands for recruitment and selection.
10. Knowledge and experience gained from handling problems on a day to day basis, attitudes and philosophy of the
founders; top management, middle and lower management; prevailing practices in rival companies are the
principle sources for determining the content and meaning of policies.
11. Procurement is the operative function of HR management.
12. The scope of human resource management includes compensation, procurement, development.
13. Organising is the managerial function of HR managers.
14. One who assists other managers in HR functions of management process is staff manager.
Page 32
15. Human Resource Planning is the process of forecasting an organizations future demand for and supply of the right
type of people in the right number.
16. Unite the perspective of line and staff managers is not the factor that hinders with the human resource planning
process.
17. The importance of HRM are: It helps the company to achieve the objective on a regular basis by means of
developing a positive attitude amongst the employee, It helps in providing excellent training for the employees, It
motivates the employees by introducing performance appraisal procedure.
18. Informal Relationship is not the function of HRM.
Page 33
Unit – 2: Human Resource Planning
Introduction:
Human Resource Planning (HRP) are the important managerial function. It ensures the right type of people, in
the right number, at the right time and place, who are trained and motivated to do the right kind of work at the right
time, there is generally a shortage of suitable persons. The enterprise will estimate its manpower requirements and then
find out the sources from which the needs will be met. If required manpower is not available then the work will suffer.
Definition of Human Resource Planning:

According to E.W. Vetter, Human Resource Planning is “the process by which a management determines how an
organization should make from its current manpower position to its desired manpower position. Through planning a
management strives to have the right number and the right kind of people at the right place, at the right time to do
things which result in both the organization and the individual receiving the maximum long range benefit.”
Essential Components of Human resource Planning:

 Workload Analysis
 Workforce Analysis
 Absenteeism
 Labor Turnover
 Recruitment & Selection
 Induction & Development
 Personnel Development
 Ensuring Quality to Products & Services
 Overall Assessment & Performance and Fine-tuning
Features of Human Resource Planning:

(a) Well defined objectives
(b) Determining human resource needs
(c) Keeping manpower inventory
(d) Adjusting demand and supply
(e) Creating proper work environment
Needs of Human Resource Planning:

(a) Anticipating future requirements
(b) Recruitment and selection process
(c) Placement of personnel
(d) Performance appraisal
(e) Promotion opportunity
Page 34
Objectives of Human Resource Planning:
(a) Forecasting Human Resource Requirements
(b) Effective Management of Change
(c) Realizing the Organisational Goals
(d) Promoting Employees
(e) Effective Utilisation of Human Resource
Approaches of Human Resource Planning:

 Social demand approach
 Rate of return approach
 Manpower requirement approaches
Five Phases for Human Resource Planning:

1. Analyzing – What are the key human resources information needed?
2. Forecasting – Demand versus supply analysis
3. Planning – Identification of strategy
4. Implementing – Executing the new strategies
5. Evaluating – Feedback on effective of outcomes
Page 35
Techniques of forecasting:
Forecasting workforce needs:
Different methods of forecasting:

1. Trend analysis
2. Ratio analysis
3. Turnover
4. Nominal group technique
5. Delphi technique
6. Group think
7. Managerial judgment
8. Statistical forecasts
9. Computer modeling
10. Multiple methods
11. Determining internal and external supply of employees
12. Internal supply
13. Replacement charts
14. Succession planning
15. Human resource management information systems
16. Departmental estimates
17. External supply
Problem of Human Resource Planning:

1. Mismatch between applicants and skill
2. Environmental issues
3. Recruitment and selection
4. Training and development
Page 36
Limitations of Human Resource Planning:
(a) The future in uncertain
(b) Conservative attitude of top management
(c) Problem of surplus staff
(d) Time consuming activity
(e) Expensive process
Factors Affecting Human Resource Planning:

Human Resource Planning is influenced by several considerations. The more important of them are:
(i) Type and strategy of organization;
(ii) Organizational growth cycle and planning;
(iii) Environmental uncertainties;
(iv) Time horizons;
(v) Type and quality of forecasting information;
(vi) Labor market.
MCQ Statement
1. Human Resource Planning is the process of forecasting an organizations future demand for, and supply of, the right
type of people in the right number.
2. Creating highly talented personnel, International strategies, Resistance to change and move are the important
factors of Human Resource Planning.
3. A process that is used for identifying and developing internal people with the potential to fill key business
leadership positions in the company is called succession planning.
4. Unite the perspectives of line and staff managers is not the factor that hinders with the human resource planning
process.
5. Type of information which should be used in making forecasts is the major issue faced while doing personal
planning.
6. Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs
of the organization.
7. Ratio trend analysis is the fastest technique of forecasting.
8. Past and future ratios of workers and sales does the ratio trend analysis studies for forecasting.
9. Inflows and outflows, Turnover rate, Conditions of work and absenteeism techniques are used while analyzing the
internal supply.
10. Voluntary retirement scheme is not a retention plan.
11. HR information often is incompatible with the information used in strategy formulation is a barrier while doing
human resource planning.
12. Backing of top management, personal records must be complete, techniques of planning should be the best are
the pre-requisites for successful human resource planning.
13. Career counselling is the requisite for a typical succession planning.
14. Human Resource Planning facilitates international expansion strategies.
Page 37
Unit – 3: Recruitment and Selection
Introduction:
Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated
job openings. It is actually a linking function, joining together those with jobs to fill and those seeking jobs.
Recruitment, logically, aims at (i) attracting a large number of qualified applicants who are ready to
take up the job if it’s offered and (ii) offering enough information for unqualified persons to self-select themselves
out.
Barriers for proper Recruitment/Selection:

(a) Poor image
(b) Unattractive job
(c) Conservative internal policies
(d) Limited budgetary support
(e) Restrictive policies of government
Difference between Recruitment and Selection at a glance

Basis Recruitment Selection
 Definition Recruitment is an activity of searching Selection refers to the process of
candidates and encouraging them selecting the best candidates and
apply for it. offering them job.
 Approach Positive Negative

 Objective Inviting more and more candidates to Picking up the most suitable and
apply for the vacant posts rejecting the rest
 Key Factor Advertising the job Appointment of the candidates
 Sequence First Second
 Process Vacancies are notified by the firm The firm makes applicant pass
through various sources and through various levels like submitting
application form is made available to form, written test, interview, medical
the candidate test and so on
 Contractual Relation As recruitment only implies the Selection involves the creation of
communication of vacancies, no contractual relation between the
contractual relation is established employer and employee
 Method Economical Expensive
Factors that influence Recruitment:

(a) Size of the organization
(b) Current employment conditions in the economy
(c) Salary structure of the organization
(d) Working conditions within the organization
(e) Growth rate of the organization
Page 38
Process of Recruitment:
 Conduct of Job Analysis: Basically, this step will allow the human resources manager, hiring manager, and other
members of management on what the new employee will be required to do in the position that is currently open for
filling up. This has to be done in a systematic manner, which is what the job analysis is for.
According to human resource managers, the position or job description is the “core of a successful recruitment
process”. After all, it is the main tool used in developing assessment tests and interview questions for the applications.
(a) Build a job description

(b) Review the job description
(c) Set minimum qualifications for the employee who will do the job
(d) Define a salary range
 Searching of Talent: This is the stage where the organization will let it be known to everyone that there is an open
position, and that they are looking for someone to fill it up. Before advertising, however, the organization must first
know where to look for potential conditions. They should search out the sources where the persons that can
potentially fill the job are going to be available for recruitment. That way, they will know where to direct their
advertising efforts.
Various methods are employed by organizations in order to advertise the open position.
(a) Networking
(b) Posting
(c) Print and media advertising
(d) Developing and using proper techniques
(e) Using the reputation of the organization
(f) Preliminary screening
(g) Initial interview
(h) Conduct of various tests for recruitment
(i) Final interview
(j) Selection
 Finalization of the Job Offer: The last step of the previous phase involves the selection of the best candidate out of
the pool of applicants. It is now time for the organization to offer the job to the selected applicant.
(a) Making the offer
(b) Acceptance of the offer by the applicant
Page 39
Sources of Recruitment of Employees:
Sources of Recruitment
Internal External
(i) Transfers (i) Advertisement
(ii) Promotions (ii) Employment Exchanges
(iii) Present employees (iii) Educational Institutions
(iv) Recommendation of Existing
Employees
(v) Factory Gates
(vi) Casual Callers
(vii) Central Application File
(Data Banks)
(viii) Labour Unions
(ix) Labour Contractors
(x) Former Employees
Merits of Internal Sources of Recruitment:
(a) Improves morale: When an employee from inside the organization is given the higher post, it helps in increasing the
morale of all employees. Generally every employee expects promotion to a higher post carrying more status and pay
(if he fulfills the other requirements).
(b) No error in selection: When an employee is selected from inside, there is a least possibility of errors in selection
since every company maintains complete record of its employees and can judge them in a better manner.
(c) Promotes loyalty: It promotes loyalty among the employees as they feel secured on account of chances of
advancement.
(d) No hasty decision: The chances of hasty decisions are completely eliminated as the existing employees are well tried
and can be relied upon.
(e) Economy in training costs: The existing employees are fully aware of the operating procedures and policies of the
organization. The existing employees require little training and it brings economy in training costs.
(f) Self-Development: It encourages self-development among the employees as they can look forward to occupy higher
posts.
Limitations of Internal Sources:
(a) It discourages capable persons from outside to join the concern.

(b) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available
in the organization.
(c) For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.
(d) If only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.
Page 40
(e) In spite of disadvantages, it is frequently used as a source of recruitment for lower positions. It may lead to nepotism
and favoritism. The employees may be employed on the basis of their recommendation and not suitability.
Advantages of External Sources:
(a) Availability of suitable persons: Internal sources, sometimes, mat not be able to supply suitable persons from
within. External sources do give a wide choice to the management. A large number of applicants may be willing to
join the organization. They will also be suitable as per the requirements of skill, training and education.
(b) Brings new ideas: The selection of persons from outside sources will have the benefit of new ideas. The persons
having experience in other concerns will be able to suggest new things and methods, this will keep the organization
in a competitive position.
(c) Economical: This method of recruitment can prove to be economical because new employees are already trained
and experienced and do not require much training for the jobs.
Limitations of External Sources:
(a) Demoralization: When new persons from outside join the organization then present employees feel demoralized
because these positions should have gone to them. There can be a heart burning among old employees. Some
employees may even leave the enterprise and go for better avenues in other concerns.
(b) Lack of co-operation: The old staff may not co-operate with the new employees because they feel that their right
has been snatched away by them. This problem will be acute especially when persons for higher positions are
recruited from outside.
(c) Expensive: The process of recruiting from outside is very expensive. It starts with inserting costly advertisements in
the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not
available, then the whole process will have to be repeated.
(d) Problem of maladjustment: There may be a possibility that the new entrants have not been able to adjust in the
new environment. They may not temperamentally adjust with the new persons. In such cases either the persons
may leave themselves or management may have to replace them. These things have adverse effect on the working
of the organization.
Page 41
The Process of Selection:
SELECTION PROCESS FLOWCHART
Job analysis
Recruitment
Application form
Written examination
Group Discussion
Interview
Reference checks
Line managers decision
Medical examination
MCQ Statement
1. The poor quality of selection will mean extra cost on training and supervision.
2. Supply and demand is the most important external factor governing recruitments.
3. While recruiting for non-managerial, supervisory and middle-management positions, labour market is of prime
importance.
4. Child labour act, The apprentices act, Mines act deals with recruitment and selection.
5. A major internal factor that can determine the success of the recruiting programmes is whether or not the company
engages in HRP.
6. Recruitments refers to the process of identifying and attracting job seekers so as to build as pool of qualified job
applicants.
Page 42
7. The recruitment process comprises of 5 stages.
8. Yield Ratios express the relationship of applicants inputs to outputs at various decision points.
9. Technological sophistication in strategy development relates to the methods used in recruitment and selection.
10. Positive is the natural perception of people on the process of recruitment and selection.
11. Indirect mode of recruitment is through advertisements, newspapers and want ads.
12. Walk-ins, Write ins and Talk-ins are the least expensive method for recruitment.
13. Identifying the right people in rival companies, offering them better terms and luring them away is popularly called
as poaching.
14. Costs of overtime and outsourcing while the vacancies remain unfilled are general costs incurred in the
recruitment process.
15. Employee leasing is an alternative to recruitments.
Page 43
Unit – 4: Training and Development
Introduction:
Training and development is vital part of the human resource development. It is assuming ever important role in
wake of the advancement of technology which has resulted in ever increasing competition, rise in customer’s
expectation of quality and service and a subsequent need to lower costs. It is also become more important globally in
order to prepare workers for new jobs. In the current write up, we will focus more on the emerging need of training and
development, its implications upon individuals and the employers.
Definitions of Training and Development:

Training is a process of learning a sequence of programmed behavior. It is the application of knowledge & gives
people an awareness of rules & procedures to guide their behavior. It helps in bringing about positive change in the
knowledge, skills & attitude of employees.
An ideal Training and Development Design can be as follows:

(a) Know your employees
(b) Dividing employees into groups
(c) Preparing the information
(d) Presenting the information
(e) Delivering training programmes
Benefits of Training and Development:
(a) Increased productivity

(b) Less supervision
(c) Reduction of error and accidents
(d) Talent pool
(e) Uncover employee potential
(f) Job satisfaction
(g) Reduction of turnover and absenteeism
(h) Address employee weakness
(i) Increased consistency
(j) Reduction in learning time
(k) Team spirit
(l) Skills development
(m) Optimum resource utilization
MCQ Statement
1. Development refers to the learning opportunities designed to help employees grow.

2. Helps people identify with organizational goals is a benefit of employee training.
3. Satisfies a personal needs of the trainer is a benefit to the individual while receiving training.
Page 44
4. Use of evaluation models in training process.
5. Consideration of current and projected changes is a method used in group or organizational training needs
assessment.
6. Organizational analysis seeks to examine the goals of the organization and the trends that are likely to affect these
goals.
7. Assessment makes training department more accountable is the benefit of needs assessment.
8. Television is an off-the-job training method.
9. Vestibule training utilize equipment which closely resemble the actual ones used on the job.
10. Recognition of individual differences, schedules of learning, transfer of training are learning principles.
11. Longitudinal or time – series analysis is a technique of evaluation.
12. Sensitivity training method is a part of vestibule training method.
13. When Human Resource training is given to managers the method adopted is sensitivity training.
14. Induction training programmes is meant for a new employee.
Page 45
Unit – 5: Job Evaluation and Performance Appraisal
Introduction:
Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an
organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of
establishing a rational pay structure.
Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their
relative worth in an organization. It is an assessment of the relative worth of various jobs on the basis of a consistent set
of job and personal factors, such as qualifications and skills required.
Definition of Job Evaluation:

Job Evaluation may be described as a process used to establish the relative worth of jobs in a job hierarchy. This
is important to note that job evaluation is ranking of job, not job holder. Job holders are rated through performance
appraisal. Job evaluation assumes normal performance of the job by a worker. Thus, the process ignores individual
abilities of the job holder.
Job Analysis:
Job Analysis is a family of procedures to identify the content of a job in terms of activities involved and attitudes
or job requirements needed to perform the activities. Job analysis provides information to organizations which helps to
determine which employees are best fit for specific jobs. Through job analysis, the analyst needs to understand what the
important tasks of the job are, how they are carried out, and necessary human qualities needed to complete the job
successfully.
Process of Job Evaluation:

The process of Job Evaluation may be stated as follows:
(a) Job analysis
(b) Compensable factors
(c) Developing the method
(d) Job structure
(e) Wage structure
The process of Job Evaluation involves the following steps:

(a) Gaining acceptance
(b) Creating job evaluation committee
(c) Finding the jobs to be evaluated
(d) Analyzing and preparing job description
(e) Selecting the method of evaluation
(f) Evaluating jobs
Page 46
Features of Job Evaluation:
The main features of Job Evaluations are as follows:
(a) To supply bases for wage negotiation founded on facts rather than on vague intermediate ideas.
(b) It attempts to assess jobs, not people.
(c) Job Evaluation is the output provided by job analysis.
(d) Job Evaluation does not design wage structure, it helps in rationalizing the system by reducing number of separate
and different rates.
(e) Job Evaluation is not made by individuals rather it is done by group of experts.
(f) Job Evaluation determines the value of job. Further the value of each of the aspects such as skill and responsibility
levels are also related and studied in connection with the job.
(g) Job Evaluation helps the management to maintain high levels of employee productivity and employee satisfaction.
The Objectives of Job Evaluation:

(a) To establish an orderly, rational, systematic structure of jobs based on their worth to the organization.
(b) To justify an existing pay rate structure or to develop one that provides for internal equity.
(c) To assist in setting pay rates that are comparable to those of in similar jobs in other organizations to compete in
market place for best talent.
(d) To provide a rational basis for negotiating pay rates when bargaining collectively with a recognized union.
(e) To ensure the fair and equitable compensation of employees in relations to their duties.
(f) To ensure equity in pay for jobs of similar skills, effort, responsibility and working conditions by using a system that
consistently and accurately assesses differences in relative value among jobs.
(g) To establish a framework of procedures to determine the grade levels and the consequent salary range for new jobs
or jobs which have evolved and changed.
(h) To identify a ladder of progression for future movement to all employees interested in improving their
compensation.
(i) To comply with equal pay legislation and regulations determining pay differences according to job content.
(j) To develop a base for merit or pay-for-performance.
Limitations of Job Evaluation:

(a) Though there are many ways of applying job evaluation in a flexible manner, rapid changes in technology and in the
supply of and demand for particular skills, create problems of adjustment that may need further study.
(b) When job evaluation results in substantial changes in the existing wage structure, the possibility of implementing
these changes in a relatively short period may be restricted by the financial limits within which the firm has to
operate.
(c) When there are large proportion of incentive workers, it may be difficult to maintain a reasonable and acceptable
structure of relative earnings.
(d) The process of job rating is, to some extent, inexact because some of the factors and degrees can be measured with
accuracy.
(e) Job evaluation takes a long time to complete, requires specialized technical personnel and is quite expensive.
Advantages of Job Evaluation:

(a) Reduction in inequalities in salary structure
(b) Specialisation
(c) Helps in selection of employees
(d) Harmonious relationship between employees and manager
(e) Standardization
Page 47
(f) Relevance of new jobs
Methods of Job Evaluation:
Qualitative methods are: (a) Job Ranking, (b) Job Classification.

Quantitative methods are: (a) Factor Comparison, (b) Point Rating.
Job Descriptions:
Tiffany needs to determine what jobs her company needs. A job consists of a group of activities and tasks that
an organization must perform in order for it to accomplish its goals. Tiffany’s company designs, manufactures and sells
toys. Some examples of jobs that her company needs to perform are designing, producing and marketing toys so it can
make a profit for its owners. It’s important to note that a job may take just one person or thousands of people to get it
done.
Purpose of Job Description:

(a) The main purpose of job description is to collect job-related data in order to advertise for a particular job. It helps in
attracting, targeting, recruiting and selecting the right candidate for the right job.
(b) It is done to determine what needs to be delivered in a particular job. It clarifies what employees are supposed to do
if selected for that particular job opening.
(c) It gives recruiting staff a clear view what kind of candidate is required by a particular department or division to
perform a specific task or job.
(d) It also clarifies who will report to whom.
Job Specifications:
Job specification is a statement in which we explain the qualities required by people applying for the job. According
to Stephen. P. Robbins & Marry Coutler, “Job specification as a statement of minimum qualification that person must
posses to perform a given job successfully”.
Job specification is a statement of employee characteristics and qualifications required for satisfactory
performance of defined duties and tasks comprising a specific job or function. Job specification is derived from job
analysis.
Purpose of Job Specification:

(a) Described on the basis of job description, job specification helps candidates analyse whether are eligible to apply for
a particular job vacancy or not.
(b) It helps recruiting team of an organization understand what level of qualifications, qualities and set of characteristics
should be present in a candidate to make him or her eligible for the job opening.
(c) Job Specification gives detailed information about any job including job responsibilities, desired technical and
physical skills, conversational ability and much more.
(d) It helps in selecting the most appropriate candidate for a particular job.
Page 48
Both Job Description and Job Specification can be explained with the help of the following diagram:
Job Analysis
Job Description Job Specification

(a) Job Title (a) Qualifications
(b) Working Hours (b) Qualities
(c) Duties and Responsibilities (c) Experience
(d) Working Conditions (d) Family Background
(e) Salary and Incentives (e) Training
(f) Impersonal Skills
Difference between Job Description and Job Specification
Job Description Job Specification

Job Description is a document which states an overview Job Specification is a statement of the qualification,
of the duties, responsibilities, functions of a specific job personality traits, skills, etc. requires by an individual to
in an organization. perform the job.
Content
Job Description usually lists out the job title, location, Job Specifications lists out the qualification, experience,
summary of a job, working environment, machines and training, skills, emotional abilities, mental abilities, etc of
materials to be used, duties to be performed on the job, an individual to perform the job.
etc.
Measures
Job Description measures the tasks and responsibilities Job Specification measures the capabilities that the job
attached to the job. holder must possess to perform the job.
Usefulness
Job Description offers ample information about the job Job Specification helps the candidates who are applying
which helps the management in evaluating the job for a job to analyse whether they are eligible for a
performance and defining the training needs of an particular job or not.
employee.
Benefit
Job Description statement helps the organization in Job Specification statement helps the management to
preventing the arguments among the employee about take decisions regarding promotions, giving bonuses,
“Who should do what”. transferring the employees, etc.
Performance Appraisal:
Performance Appraisal is the systematic evaluation of the performance of employees and to understand the
abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways
which are as follows:
(a) The supervisors measure the pay of employees and compare it with targets and plans.
(b) The supervisor analyses the factors behind work performance of employees.
(c) The employers are in position to guide the employees for a better performance.
Page 49
Objectives of Performance Appraisal:
Performance Appraisal can be done with following objectives in mind:
(a) To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
(b) To identify the strengths and weaknesses of employees to place right men on right job.
(c) To maintain and assess the present in a person for further growth and development.
(d) To provide a feedback to employees regarding their performance and related status.
(e) To provide a feedback to employees regarding their performance and related status.
(f) It serves as a basis for influencing working habits of the employees.
(g) To review and retain the promotional and other training programmes.
Advantages of Performance Appraisal:

It is said that performance appraisal is an investment for the company which can be justified by following
advantages:
(a) Promotion
(b) Compensation
(c) Employees development
(d) Selection validation
(e) Communication
Different Methods of Training:

A. On-the-job-training Methods:-
a) Coaching
b) Mentoring
c) Job Rotation
d) Job Instructional Technique (JIT)
e) Apprenticeship
f) Understudy
B. Off-the-job Training Methods:-
a) Lectures and Conferences
b) Vestibule Training
c) Simulation Exercises
d) Sensitivity Training
e) Transactional Analysis
Page 50
Different Methods of Training in Modern Business:
Different methods of training in modern business are summarized by following charts:
Methods of Training in Modern Business
On-the-Job Methods Off-the-Job-Methods

a) Understudy a) Special courses and lectures
b) Job rotation b) Conferences and seminars
c) Special projects c) Selected reading
d) Experience d) Case study method
e) Committee assignment e) Programmed instruction learning
f) Coaching f) Brainstorming
g) Role-playing
h) Vestibule schools
i) Apprenticeship training
j) In-basket exercise
k) Business games
l) Behaviour modeling
m) Sensitivity (T-group) training
n) Multiple management
MCQ Statement
1. Performance Appraisal is an objective assessment of an individual’s performance against wee-defined benchmarks.

2. Job analysis is linked with performance appraisal.
3. Employee assessment is an alternate term used for performance appraisal.
4. To effect promotions based on competence and performance is the main purpose of employee assessment.
5. Successful defenders use performance appraisal for identifying training needs.
6. Analysers tend to emphasise both skill building and skill acquisition and employee extensive training programmes.
7. “What methods of appraisal are to be used” is an issue while designing an appraisal programme.
8. Raters can be immediate supervisors, specialists from the HR department, sub-ordinates, peers, committees, clients
and self-appraisals or a combination of all.
9. Community service, Interpersonal contact, Need for supervision are of the seven criteria for assessing
performance.
10. Rating Scales is the simplest and most popular technique for appraising employee performance.
11. Assumes that employee performance levels always conform to a normal distribution is a major weakness of the
forced distribution method.
12. Assessment Centres is used for evaluating the performance of executives or supervisory positions.
13. The actual achievements compared with the objectives of the job is job performance.
Page 51

Cma Notes

Uploaded by

Copyright:

Available Formats

You might also like

Cma Notes

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cma Notes

Uploaded by

Copyright:

Available Formats

GOBIND KUMAR JHA 9874411552

Modern Marketing Concept:

Features of Marketing Management:

Essential Elements of Marketing:

iii. Marketing Intermediaries:

iv. Customer Markets:

vi. Technological and Legal:

Unit – 2: Consumer Behavior and Market Segmentation

Steps involved in Market Segmentation:

Requirements of Market Segmentation:

Bases for Segmentation:

Popular Marketing Mix – 4Ps

Concept of 7Ps – Extended Marketing Mix

Brand Experience, Brand Recognition and Brand Awareness:

Brand and Trade Mark:

The Product Life Cycle

New Product Development Process:

Concept Development & testing

Market Strategy Development

Research & Development

1. Adding new features to a product is advocated by Product Approach.

Unit – 4: Pricing, Distribution Channels and Physical Distribution

Nine Laws of Price Sensitivity & Consumer Psychology:

General Pricing Approaches:

Cost – plus Pricing

Target Profit Pricing

Going rate Pricing

New-Product Pricing Strategies:

1. Public networking websites are social media.

Unit – 5: Promotion and Recent Developments in Marketing

The Marketing Promotion Mix:

Promotion Mix Strategies:

Role of Advertising in Marketing Mix:

 Information and Education

Features of Personal Selling:

 One to one control

Advantages and Limitations of Personal Selling:

 Customer Relationship Management:

 Competitions and Prizes:

Advantages and Limitations of Sales Promotion:

 Effective at achieving a quick to sales

 Sales effect may only be short-term

Techniques of Marketing Research:

Determination of Research Design

Identify Data Type & Sources

Designing Data Collection Form & Questionnaire

Determine Sample Plan & Size

Analysis & Interpretation of Data

Preparation of Research Report

Features of Social Marketing:

Direct Marketing Channels:

Green Marketing and Sustainable Development:

Human Resource Management

Concept of Human Resource Management:

Human Resource Management is focused on a number of major areas, including:

Definition of Human Resource Management:

Functions of Human Resource Management: