Course Objectives:

The main objectives of this course are to:

1. To conceptualize an idea about marketing and related terms

2. To provide insight about various forms and types of marketing
3. To analyze various components of marketing channels
4. To understand various concepts relating to consumer behavior
5. To introduce the components of marketing mix
6. To understand the importance of retailing in today’s context
7. To understand emerging marketing trends and regulatory mechanisms

Expected Course Outcomes:

On the successful completion of the course, student will be able to:
1 Defining the various concepts and terms related to marketing K1
2 Explaining about various marketing functions K2
3 Understanding terms of consumer behavior and examined about different K2
concepts related to consumers.
4 Identifying the marketing mix and its elements K1
5 Understanding different provisions related to trends in emerging markets. K2

K1 - Remember; K2 - Understand; K3 - Apply; K4 - Analyze; K5 - Evaluate; K6 – Create

GANDHI ARTS & SCIENCE COLLEGE

SATHYAMANGALAM

Subject Name : Core IV - Principles of Marketing

Department : Commerce
Class : I B.Com (2022-2025)
Semester : II (Even)
Subject Handled by : A S Nandhini M.Com(CA).,M.Phil.,B.Ed.,
 PRINCIPLES OF MARKETING

UNIT I

Marketing –Definition of market and marketing-Importance of marketing –Modern

Marketing concept-Global Marketing –E-marketing –Tele marketing- Marketing Ethics -
Career Opportunities in Marketing

UNIT II

Marketing functions-Buying –Selling –Transportation –Storage – Financing –Risk

Bearing –Standardisation – Market Information

UNIT III

Consumer Behaviour –meaning –Need for studying consumer behaviour-Factors

influencing consumer behaviour-Market segmentation – Customer Relations Marketing

UNIT IV

Marketing Mix – Product mix –Meaning of Product –Product life cycle –Branding-
labelling-Price Mix-Importance-Pricing objectives - Pricing strategies –Personal selling
and Sales Promotion -Place mix-Importance of channels of distribution –Functions of
middlemen – Importance of retailing in today’s context

UNIT V

Marketing and Government –Bureau of Indian Standards –Agmark –Consumerism –

Consumer Protection – Rights of consumers- Green Marketing –Forward Trading in
Commodities

BOOKS FOR REFERENCE

1. Marketing Management - Rajan Sexena

2. Principles of Marketing - Philip Kotler &Gary Armstrong
3. Marketing Management - V.S. Ramasamy and Namakumari
4. Marketing -William G.Zikmund & Michael D’Amico
5. Marketing - R.S.N.Pillai &Bagavathi
 UNIT – I

MARKET & MARKETING

Meaning of Market:
The term Market is derived from the Latin word “Mercatus” meaning to “Trade”.
It is also means Merchandise wares, traffic, or a place of business.
The common usage of market refers to a place where goods or services are bought
and sold.
Market =Place of Exchange.
Objectives of Market:
1. A Place buyer and sellers interact.
2. The aggregate demand for a commodity.
3. The forces or conditions within which buyers and sellers makes decisions.
4. Transfer of Title of goods and services.
5. Flow of goods and services from the producer to the consumer or user.
6. The organization that regulates the purchase and sales.
Classification of Market:
I. On Geographic or area basis
(a) Family Market:
These markets existed during “Village Economy” and an extinct now.
(b) Local Market:
This market existed during “Town Economy”. These are disappearing due to
innovations and development. In transport and communication, they however still
exist in village but are too few in numbers.
(c) National Market:
The rise and growth of industrialization has widened market on the national
level. Most of the products today have acquired national market.
(d) World Market (or) International Market:
They came into existence with the growth of International transport and
communication.
II. On Economic Basis
(a) Perfect Market:
It is purely an economic term and does not exist in reality. Such markets are
economically possible only where demand and supply factors are in perfect
harmony.
(b) Imperfect Market:
This refers to a market where some kind of demand and supply is experienced
every market is in a way imperfect.
III. On Time Basis Time
(a) Very Short Period Market:
It means the existence of the market for a day and at a particular place. It
started in a village economy but exists even today. Such markets generally sell
perishable goods
(b) Short Period Market:
This market is otherwise known as a Weekly Market or a fair. It is a centre for
local trade which was very prominent in village economy.
(c) Long Period Market:
This market means for selling durables. It is the long period market which
paved the way for present “Retail Market”
IV. On the Basis of Business
(a) Wholesale Market:
It is market where a wholesaler is the supplier and retailers are the buyers.
Here goods are bought and sold in bulk (large) quantities.
(b) Retail Market:
This market is the last link in the chain of description. It directly deals with
consumers markets.
V. On the Basis of Importance
(a) Primary Market (Village Market):
It is a market where agricultural products are sold.
(b) Secondary Market:
Generally, semi – manufactured (or) partly manufactured goods are sold in
this market.
(c) Terminal Market:
It is the market where the final product is sold to ultimate consumers.
 VI. On the Basis of Goods
(a) Commodity Market:
(i) Produce exchange (or) Commodity exchange
(ii) Manufactured goods market.
(iii) Bullion market – This market deals with metals like gold & silver.
(b) Capital Market:
(i) Money Market
(ii) Foreign Exchange Market
(iii) Stock Market (or) Security Market.
VII. On the Basis of Regulations
(a) Regulated market:
These markets are regulated by statutory measures produce exchanges, stock
exchanges are examples of this.
(b) Unregulated or Free Market:
These markets are uncontrolled. They are left free and mostly operate
according to demand and supply.
VIII. On the Basis of the Nations or Transactions
(a) Spot Market:
It is a part of organized market such as commodity exchange. In a spot market,
physical delivery of goods takes place immediately.
(b) Future Market:
It is a counter part of spot market. In such markets no physical delivery of
goods takes place and only future contracts are made.

Meaning of Market
 According to the American Marketing Association, “Marketing is concerned with the
people and the activities involved in the flow of goods and services from the
consumer”
 According to Phile Korter, “Marketing is a human activity directed at satisfying
human needs and wants through exchange process”.
Micro Marketing :
It may be described as the process of formulating and implementing such strategies by
a firm (product development, pricing, promoting and distribution) that ensure flow of need
satisfying goods and services at a profit.
Macro Marketing:
It concerned with how effectively a society uses is resources and how fairly it
allocates its output goods and services.
Nature of Marketing
1. Marketing is Consumer Oriented :
A business exists to satisfy human needs. Therefore, business must first find out what
the consumers want and then produce goods according to the needs of the consumers.
2. Marketing starts and ends with the consumer :
Often it is through that marketing is concerned only with the flow of goods and
services from the producer to the consumer.
3. Modern Marketing precedes and succeeds production :
A market transaction takes place when there is a successful matching of a buyer and
seller.
4. Modern marketing is the guiding elements of business :
It would be clear now that marketing has become a pervasive force capable of guiding
and even controlling production.
5. Marketing is a science as well as an art :
Art is the practical application of a set of rules or principles to practice.
Science is a system of facts and principles concerning any subject.
6. Marketing is a system :
Marketing is a system consisting several inter-dependent and interacting sub systems.
7. Exchange process is the essence of marketing :
All marketing activities resolve around exchange process. Exchange implies
transactions between buyer and seller.
The seller hands over a product or services to the buyer who in turn gives money.
8. Marketing in Goal oriented :
Like any other business activity, marketing seeks to achieve some useful results. The
ultimate aim of marketing is to generate profit through the satisfaction of human wants.
9. Marketing is a process :
It comprises a series of function which are inter-related. It is a dynamic process
because it keeps on adjusting to the changes in the environment of business.
 Importance of Marketing
1. Marketing is a connecting link between the consumer and the producer.
2. Marketing helps in increasing the living standard of people. Because of mass production
costs of manufacturing and marketing have come down.

3. Marketing helps to increase the nation’s income, efficient system of marketing reduces
the cost to the minimum this in turn lowers the prices and the consumer’s purchasing
power increases.
4. Marketing process increases employment opportunities for continuous production,
continuous marketing is needed.
5. Marketing creates modern cultivators. The poor farmer gets the new and developed
methods of cultivation, useful implements, tools, fertilizers, etc..,
6. Marketing removes the imbalances of supply by transferring the surplus to deficit areas,
through better transport facilities.
7. Marketing helps to maintain economic stability and rapid development in underdeveloped
or developing countries.
8. Marketing includes an activities in the creation of utilities – form, place, time and
possession.
9. A reduction in the cost of marketing is a direct benefit for society.
10. Marketing adds value of goods by changing their ownership and by changing their time
and place of consumption.
11. Scientific marketing has a stability effect on the price level.
12. Marketing helps to create awareness for non business items for society’s benefit like
family planning, population control, child labour, child abuse, anti smoking campaign,
polio immunization programmes and AIDS awareness campaigns, etc..,
RECENT INNOVATIONS IN MODERN MARKETING
1. De marketing :
The role of marketing and the strategies under conditions of scarcity and
during the period of shortage received considerably attention in recent writings.
It concerned with the management of excess demand. It involves reducing
demand to match the supply.
Ex: Oil industries
(i) Greater Revenue
(ii) Conservation of resources
 (iii) Speedy development of alternative sources of supply
(iv) More control and power
(v) Political gains.
2. Remarketing :
The form finding or creating new user of users for an existing product. For
example: Nylon, which originally had an end use for making cloth and hosiery.
3. Over Marketing :
The striving by a firm to generate increase sales while neglecting quality
control, production efficiency and for cash flow management.
Ex: Over marketing is found in the U.S auto industry.
4. Meta Marketing :
The synthesis of all managerial, traditional, scientific, social and historical
foundations of marketing and includes specialization on the interrelationships of
mental and physical processes to supplements the facts and empirical observations of
marketing practice.
Global Marketing (or) International Marketing
Global Marketing involves all the activities from the past of domestic marketing. An
enterprise engaged in global marketing has to correctly identify asset and interpret the needs
of the overseas customers and carry out integrated marketing to satisfy these needs. In global
marketing as well as in domestic marketing, the basic function are the same. Marketing
principles are common and are universally applicable. Whether a marketer sells in Calcutta or
America we need four ingredients of marketing mix (Product, Price, Place, Promotion).
Global Marketing refers to the marketing activities carried on by a marketer in more
than one nation or country. It is marketing across the national borders of a given country it
becomes more complex.
Activities involves in Global (or) International Marketing:
 Market and Product Selection
 Marketing entry
 Distribution Channels
 Pricing of Global Markets
 International Marketing Research
 Marketing Communication
 Procedure Complexities
 Organisation for international marketing
 Importance of Global Marketing (or) International Marketing:
I. For National Economy Society:
 The Developing Countries need imports of capital equipments, Raw material
of crucial nature and technical know-how for rapid industrialization.
 An Expanding export trade is dynamic factors.
 A high rate of economic growth, contemplated by a country is usually
associated with a higher rate of export development.
 Sufficient export earnings are essential to cover import dept.
 The national income of a country can be increased to a considerable extend
through organized export marketing.
II. For the Firm :
 A firm having an unutilized installed capacity after meeting the domestic
market has to enter the international marketing for the economical utilization
of the capacity.
 A firm having a production system on mass scale and facing several fall in
domestic demand has no alternative but to tap foreign market for boosting up
sales.
 A firm desirous to introduce new products likes to enter foreign markets with
latest technology.
 A firm whose product life cycle is at the decline stage in the domestic market
should have to bind ways and means for survival and for this export trade has
to be resorted to.
E-Marketing
Meaning:
Electronic Marketing, otherwise called Internet Marketing is the use of the Internet to
advertise and sell goods and services.
Internet Marketing includes information management, public relations, customer
service and sales.
Business Models Associated with E-Marketing:
Internet banking is associated with several business models.
1. Business – to – Business (B2B) [companies do business with each other]
2. Business – to – Consumer (B2C) [involves selling directly to the ultimate consumer]
3. Peer – to – Peer (P2P) [less common business model where individuals exchange goods
between analysis]
 Websites Associated with E-Marketing:
1. Name – your – price websites [priceline.com]
2. Find the best – price websites [hotwire.com]
3. Online auction websites [ebay.com]

Evaluation of E-Marketing:
Merits Drawbacks
1. Availability of product information 1. Slow Internet Connection
2. Reduced need for sales personnel 2. Buyer cannot Touch, Smell or
3. Wider Coverage Taste the goods
4. Less Expensive 3. Delivery of goods poses problems
4. Lack of facilities for payment
5. Fear that personal information
may not be kept confidential.

Telemarketing
Telemarketing is one of the ways of direct marketing which involves the use of the
telephone for the marketing purpose. The salesperson involved uses the telephone to directly
connect the customer over the buying some kind of product or services with the complete
information and detailing session.
Telemarketing is marketing conducted over the telephone most telemarketing call are
“ Cold Calls” meaning the receiver of the calls has not requested the telemarketer
contact them. Telemarketing is one of the most controversial types of marketing.

Advantages of Telemarketing:
 Ordering of goods and services.
 To render services required for the product are service thereby.
 To establish long marketing relationship.
 To retain customers and acquired new potential customers.
 The cost of retention of customers or client is cheaper.
 To ensure electronic based system of control.
 Marketing Ethics
Meaning :
A set of moral principles and values. Marketing Ethics means a set of principles and
values as to marketing process and a system of certain values that govern the conduct of a
marketer or groups of marketer at the time of undertaking marketing activities.

Characteristics of the Ethical Philosophy :

(i) Model Idealism :
This means judging the act itself. This idealism is the most rigid and postulates
certain acts to be lead under all or most of the circumstances.
(ii) Institutionalism :
Leaving it to individual managers to sense the moral gravity of the situation. It
judge’s the actor’s motives.
(iii) Utilitarianism :
Judging the consequences of the act is the managers feel that their motives are
good and they do not intend to hurt anyone. They are taking an institutive approach to
these morally difficult situations.
 Unit –II
Functions of Marketing

I. Function of exchange II. Function of Physical Supply III. Facilitating Functions

a). Buying a). Transportation a). Financing
b). Assembling b). Storage b). Risk Bearing
c). Selling c). Standardisation
d). Market Information
e). Promotion
I. Function of exchange
a). Buying:
Buying is done by manufacturers, wholesalers, retailers and consumers. When the
buying function is over the buyer gets the possession and ownership of goods without buying
there is no selling.
b). Assembling:
Assembling refers to the collection and concentration of similar products from
different sources for further distribution. Assembling is meant for dispersion.
c). Selling:
Buying and selling are inseparable. They are complementary to each other without
selling function in the market buyers cannot satisfy their needs selling converts desire into
demand the function of selling transfers the title to a product to the buyers.
II. Functions of Physical Supply:
a). Transportation:
Marketing requires physical movements of goods and services from the place of
production to the place of consumption. Commodities are produces at one place but they are
also demanded at various other places.
b). Storage:
An good produced are not immediately consumed. There is a gap between the time of
production and the time of consumption of some commodities is seasonal but the demand is
regular.
III. Facilitating Function:
a) Financing:
 Marketing process requires finance goods are to be warehoused. The manufacturer
who invests money in production needs finance until his goods are sold.
 The wheel of marketing is set in motion only when adequate funds are made
available at right time at right place.
b) Risk Bearing:
 Risk means the possibility of loss by unforeseen happenings. All business
transactions are subjected to such risks.
 Goods may get destroyed or damaged due to Fire, Flood, Cyclone, Earthquake, etc..,
Price of the commodity may also fall resulting in loss.
c) Standardization:
 Division of commodities into distinct groups. A standard is a specification used in
providing certain basic qualities to the goods for their use.
 Standard used in providing certain physical characteristics of products.
 Example: Shape, Size, etc..,
 Hence standardization and grading are essential elements.
 Ex: BIS (Bureau of Indian Standards)
CRISIL
d) Market Information:
Market information include size, location, characteristics of market, consumer
wants, habits, purchasing power, etc.., Decision Making and success of marketing
greatly depend upon the availability of correct market information.
e) Promotion:
Promotion activity in the marketing involves the process of stimulating
demand for products. Promotion is a wider term includes advertising, salesmanship,
etc..,
Buying (or) Purchasing
Marketing is concerned with buying and selling. Buying includes the
determination of customer needs.
Buyer (or) Purchase Meaning & Definition:
The person who buys the product is called the buyer. “Buying comprises all
those activities involved in finding a suitable source of supply selecting the desire
 quantity, quality, grade style and size and coming to an agreement with reference to
the price, delivery data and other condition”.
Kinds of Buyers:
I. Manufacturers (or) Business Man:
Manufacturer purchases goods for production, manufacture, buy raw
materials, equipments, machinery, spare parts, etc..,
II. Middleman:
(a) Whole sellers – large qualities
(b) Retailers – small quantities
III. Consumers (consume the product):
The persons who buy things for their own satisfaction.
Problems of Buying:
 What do buy  How much to buy
 When to buy  Where and how to buy
 How to negotiate price and terms

Functions of Buying (or) Elements of Buying

I. Planning of purchase (purchasing methods)
(a) Concentrated Buying:
The buyer purchased all his needs from a single seller. Selected from a few
seller. This buying depends on nature of goods.

(b) Diversified Buying:

With purchase are made from large members of sources. Then it is called
diversified buying.
(c) Reciprocal Buying:
The buyer and seller enter into a contract to buy and sell their products
usually. It is a good policy “If you buy from me, I buy from you”
(d) Hand to Mouth Buying:
This kinds of buying small lots are qualities. If needs the current needs of the
business. These no risk of lose.
(e) Forward Buying:
It is a big lot purchase buy respecting a higher price in the feature buyer make
a lot of purchase.
 (f) Contract Purchasing:
In this method of purchasing, goods are purchasing under a contract for a long
period with fixed suppliers.
Goods when the price is statue. When the price decreases the buyer cannot get
the product of price falling.
(g) Buying by inspections:
It is the smallest and at least type of purchasing now also it is prevailing in
whole sale market. The buyer buys the goods by examining the goods directly.
(h) Buying by Stamps:
This method is very simple and old. The seller sense the sample and the buyer
oracles for the goods buy seeing the sample. Buyer can different kind of product
different qualities different goods.
(i) Buying the description:
When the samples cannot be shown, the buyer makes the purchase and the
bases of description given buy the seller. A huge machine is an example.
This description given by booklet (or) catalogue period buying the goods
regularly (i.e.,) weekly (or) monthly salary holder.
(j) Buying by requirement:
Purchasing is done according to demand like during the time of festivals.
(k) Open Market Buying:
When the price is reducing the goods of purchased in the open market buyers
are attract buy the production inspire. Buying buy goods and stock than none variable
commodities are purchased and stocked.

II. Assembling
Meaning:
“The seeking out of source of supply buying, wisely as to quantity, quality and
variety and making commodities available when and where they are quanted”.
Advantages:
Economy is the cost of transportation goods are assembled in one plays by gathering
them from different places. Back transport will be cheaper and show there is economy in
the cost of transportation.
(i) Health standardization and grading
(ii) Helps Bulk sales
 (iii) Wider Market
(iv) Cheaper Warehousing
(v) Stable and regular supply
(vi) Need of special skill
(vii) Lake of transportation
(viii) Absence of properly regulated market
Selling:
Selling is the other side of exchange function. Selling is the least of the marketing
task. Selling in business means the transfer of ownership of goods or services to a buyer in
exchange for money.
Definition:
According to Pyle “Selling comprise of all those personal and impersonal activities
involved in finding, securing and developing and demand for a given product or service and
in consummating the sales of it.
Elements of selling:
a) Product planning and developing
b) The Contractual
c) Demand Creation
d) Negotiation
e) Contractual Buying

a). Product planning and developing :

The starting point of marketing in which a satisfactory product through which
consumers satisfaction is aimed it is also aims at disposing of the product at a satisfactory
price.
 Decision recording variety  Decision recording quality
 Decision recording diversification lines simplification of product
 Decision recording branding  Packing of products
b). Contractual:
If the consumers are prepare by the product the aim of selling will be fulfilled. Only if
there is conducted between buyer and seller selling function will be in good swing for the
establishment of contract with the world.
 Choosing between limited or clear markets
 Choosing of buyer whether small or large
  Finding out locating the consumers
 Establishing contract with those person
 To create and maintain business relations.
c). Demand Creation:
The demand creation may be defined as all special efforts to stimulate a disease for
goods within the ultimate of the pure of sales at a profile.
These are variety of promotion goods capture and maintain against competitions.
 Personnel Selling  Advertising  Sales Promotion
d). Negotiation:
It refers between the buyers and the sellers to determine the terms and conditions of
sales. They exchange their ideas of the product in relation to price, quality, quantity, delivery
rate, terms of payment, discount, mode of transport, etc..,
e). Contractual Buying:
Function of selling come to an end at this stage. The terms and conditions are agreed
respond by the buyers and the sellers and hire on both the parties.

Kinds of Sales
1. Sales by Inspection:
The buyer inspects the goods before the makes the purchase this is very old method.
2. Sales by Sample:
The sample is a specimen or representation of the goods stocked when the goods are
bulky and are in different quantities sales by sample is better.
3. Sales by Description:
The seller gives a description of the goods through a catalogue brochures etc..,

Transportation
Meaning:
Transportation means the physical moment of persons and goods from one place to
another. Transportation is described as “physical marketing” because without the physical
supply of goods these will not been any transaction (i.e.)

Functions of Transport
 Encourage large scale production
 It increase the mobility of factors of production
  It encourage specialization price
 It helps in stability opportunities
 It strengthens the defence of nation
 It reduce the danger of storage
 It helps in the transportation the economy wealth
 It transforms social and cultural structure
 It increase demand for goods.

MODES OF TRANSPORTATION
I. Land Transport:
(a) Pathway:
It is small village, hills, forest, desert, etc.., In this places roads cannot be
constructed.
(b) Road:
Everyone there are different kinds of road transport such as national highway,
state highway, major district road and village roads.
(c) Railway:
It is used for transportation of goods and passenger Indian Railway System is
largest in Asia. It covers long distance and carriers types of goods it helps greater
trade.
II.Water Transport:
It is cheap because there is no need for bulky goods and low grade goods
(highway and railway lines) in the golden days.
(a) Ocean Transport:
It is the big mode of transport between one countries to another country. It is
the unifier of the world.
(b) Coastal Shipping:
Placed to move the goods and the people. It is an extended form of inland
water transport.
(c) Overseas Shipping:
Transport to move goods and passengers from one country to another country
96% of total international trade is carries on by ships.
 (d) Passengers:
It carries passengers and mail and a small amount of cargo. It has luxurious
facilities for customers.
(e) Cargo:
It carries large quantities of cargo only a limited number of passengers can
travel in this. It is suitable for traders.
III. Air Transport:
Distance is shrink due in the invention of air transport. Growth of trade and
industry through the world is significant.
(a) Internal Transport
(b) External Transport
(c) International Transport.
STANDARD AND GRADING
DEFINITION:

“Standardization is the process of determination of classes or glacless of a product or

service that have fixed limited”.
Common Characteristics likes…
 Determination of standard grading
 Inspection
 Labelling
Types of Standard:
 Quality Standard  Quantity Standard  Standards of Size and measurement

Grading Meaning:
Grading means the divisions of products into classes made up units processing similar
characteristics of prize and quality. It is the task of separating the products on the basis of
predetermined standard.
Types of Grading:

It refers sorting out of goods on the basis of standards (size, quantity, etc..,) to be
followed from year to year.
Variable Grading:
It refers varying standards for goods from year to year.
 STANDARD AND GRADING
DEFINITION:
“Standardisation is the process of determination of classes or glasses of a product or
services that have fixed limits”
Common Characteristics likes…
 Determination of standard grading
 Inspection
 Labelling

Types of Standard:
 Quality standard  Quantity Standard  Standards of size and measurement
Grading Meaning:
Grading means the divisions of products into classes made up units processing similar
characteristics of prize and quality. It is the task of separating the products on the basis of
predetermining standard.
Types of Grading:
It refers sorting out of goods on the basis of standards (size, quantity, etc..,) to be
followed from year to year.
Variable Grading:
It refers varying standards for goods from year to year.

Difference between Standardisation and Grading

Standardisation
1. It is fixed before grading
2. It is the process of fixing standards
3. It is Mental process
4. It is applied in agricultural as well as
manufacture goods
5. It is meaningless without grading is I
stand for standardization.
Grading
1. It is followed standardisation
2. It is process of responding the goods
on the basis of quality
3. It is physical process
4. It is applied in agricultural products.
5. It is possible without standardization
agmark stands for grade.
Storage Meaning:
A trader has to maintain adequate stock of the products he sells to meet the demand.
Maintenance of stocks of raw materials and finished products calls for storage.
Function of storage:
(i) To preserve goods that is produced only during a particular season but is
demanded throughout the year (agricultural goods).
(ii) To preserve goods that are produced throughout the year but demanded during a
particular season (Crackers, Umbrellas, etc..,)
(iii) To enable businessmen to make speculative gain.
(iv) To protect goods from pests and insects.
(v) To ensure smooth production and distribution.
Warehousing Meaning:
The place where the goods are stored is known as warehouse ware means products a
warehouse or a godown is a room or a building of the accumulation of goods processing
facilities to perform other marketing function.

Different kinds of Warehouse:

(i) Public Warehouse:
It’s controlled by the Government. Any member of the public can utilize the
services of the public warehouse.
The rent payable is determined by the Government and it will always be a very
nominal amount.
(ii) Bonded Warehouse:
It is located near ports. Its owned by the Dock authorities. An importer who is
unable to pay his duties immediately can have his goods placed in the bonded
warehouse.
(iii) The Central Warehousing Corporation (CWC):
It was established in India in the year 1957 to provide warehouse at suitable
places in the country. It provides storage facilities to individuals, cooperative
societies and other. (Ex: Agri goods).
(iv) The State Warehousing Corporation (SWC):
Every state in India can establish its own warehousing the approval central
warehousing corporation. The respective state Govt 50% of the capital and the
CWC will contribute 50 %.
 MARKETING RISKS

Economic Risks Natural Risk Human Risk

Time Risks Earthquake Personal Risk
Place Risks Fire Consumer Risk
Competition Risks Rain Govt. Risk
Public Risk
i) Time Risk: The time factor assumes prime importance on the market twist. Change in
piece is seen with the passage of time.
ii) Place Risk: The pieces of a product are different in different market at the same time.
iii) Competition Risk: Mass production is followed by mass selling which is again
followed by keen competition among marketer.
iv) Natural Risk: As earth quakes, fire, storm, rain, heat, cold, etc..,
v) Risk from Human Behaviours:
 The employees cause risks in the business
 Death of responsible officers
 Strikes, war, theft the business
 Loss from bad debts
 Legal liability under workmen’s Compensation act.

Market information

 The marketer requires lot of information about the market.

(i) Substitute’s available (ii) Demand (iii) Tastes and preference of the consumers. (iv)
Positive and negative aspects of the product (v) Views of the retailers and so on.
(ii) The entire process of collection information, analysis and making inferences is what
is termed as “market research”.
Difference between marketing and selling
Marketing
1. Selling is part of marketing
2. Marketing starts before production
3. Marketing is concerned with buyers
need
4. It’s a changing needs concepts
5. It requires the performance of several
activities including selling.
6. It is the starting point of all business
activities.
7. The philosophy of marketing is
“customer satisfaction”
Selling
1. Marketing is not part of selling
2. Selling starts after production
3. Selling is concerned with sellers
needs
4. It is static
5. It is concerned with just one aspect,
namely, transfer of title for a price.
6. It is done towards the end
7. Profit maximization is the philosophy
of selling.
 UNIT - III
CONSUMER BEHAVIOUR
Definition :
According to J.F.Engel, “consumer behaviour can be defined as the activities
and the actions of people and organization that purchase and use economic goods and source,
including influence and these activities and actions”.
IMPORTANCE OF STUDYING CONSUMER BEHAVIOUR:
i) The field of consumer behaviour studies deal with how individual, groups and
organization selects, buy, use and dispose of products and services to satisfy their
needs and desires.
ii) The customer is the king of the market.
iii) It is just like a voter in democracy.
iv) Is selection of goods or services determine the fate of products and services.
v) The study of consumer behaviour is very useful is determining the form, style
packing, brand, trademark, etc.., of the product.
vi) The consumer behaviour is extremely important for an effective market planning.
Factors of Buyer Behaviour :
Purchase Decision

Internal Factor External Factor

 Needs
 Motivation  Social Influences
 Learning  Business Influences
 Attitude  Economic Influences
 Perception  Family Influences
The Buying Process  Cultural Influences
(i) Problem recognition (Need Recognition) :
The process of buying is normally starts with the recognition of a need by a consumer.
He recognizes a problem and develops a perception of the problem. Then he seeks
information for solving his problem.
(ii) Awareness :
 The consumer turns to his environment of information around him. It makes him
aware of the existence of the product that would solve his problem.
(iii) Comprehension (Evaluation) :
Comprehension comes out of his ability to reason with the information. The
awareness and comprehension stage represent the information processing stage. These two
stages constitute the longitude field of the purchase process.
(iv) Attitude
It is the sum total of the individual’s faith and feelings towards a product. As a
result of his awareness and comprehension, the consumer develops an attitude favourable or
unfavourable towards the product.
(v) Legitimisation
The buyer must be convinced that the purchase of the product is the legitimate course
of action. This stage often stands as a barrier between a favourable attitude towards the
product and actual purchase.
(vi) Trial
Conviction leads the consumer to try the product on a small scale, be may buy a
sample. He tries to evaluate the product from his own experience.
(vii) Adoption
A Successful trial leads him to by /adopts the product Trial and adoption stages
constitute the behavioural fields in the buying process.
(viii) Post purchase Behaviour
The purchase leads to specific post- purchase behaviour. Usually, it creates some
restlessness in the minds of the individual. He is not sure about the product.
Difter from Buyer, Consumer and Customer
(i) Buyer : is the one who actually purchased a product or services. He may
or may not use it [Ex Father may buy a pen his son]
(ii) Consumer : Is the person who actually uses a product (son)
(iii) Customer: A buyer or a consumer becomes a customer. If he regularly buys
(or) consumes a product or service.
Consumer behaviour us buyer behaviour
 Consumer behaviour involved in planning, purchasing and using economic goods and
services.
 Buyer behaviour a particular individual who purchase the product even through that
person may not be involved in either planning the purchase or using it.
 MARKET SEGMENTATION
Meaning:
“The process of taking the total Heterogenous market for a product and dividing it
into several submarket or segments, each of which tends to be homogenous in all significant”.
The market could be segmented in different ways. Ex: A single market of shoes. It
may be segmented into several submarkets – shoes for executives, doctors, college student,
etc..,
Criteria for Successful Segmentation:
1). Substantiality:
It is size of segmented markets. The size of the segment becomes small if may not be
possible for the marketer to develop separate marketing mix for such unprofitable segments
under such circumstances smaller sized segments will be totally excluded.
2). Accessibility:
Could be attained through the existing channels of distribution, advertising media,
salesman, etc..,
3). Represent ability:
Normally segments should be large and profitable enough to be considered as a
separate market.

4). Nature of Demand:

It refers to different quantities demanded by various segments. Under of 25-25, 50
above 50.
5). Response Rates:
Various segments respond in similar ways to a marketing mix, there is no need to
develop a separate mix, (Different price changes to the marketing).

BASIS OF MARKET SEGMENTATION

1.Geographic Segmentation :
For planning and administrative process, the marketer will often find it convenient to
sub divide the country into areas in systematic way, for adopting this scheme is that standard
regions are widely used by Government and it facilitation collection of statistics.
2. Demographic Segmentation :
 The consumers are grouped into homogeneous groups in terms of demographic
similarities such as age, sex, educational standard, income level, etc..,
3. Social – Economic Segmentation:
The segmentation here in done on the basis of social class viz. working class, Middle
income group etc., since marketing is potentially and indemnity connected with the “ability to
buy”.
4. Product Segmentation :
When the segmentation of market is done on the basis of product characteristics that
are capable of satisfying certain special needs of customer, such a method is known as
product segmentation follow the product basis as…
1. Prestige products, Ex: Automobiles , Clothing
2. Maturity products, Ex: Cigarettes, Blades
3. Status products, Ex: Most luxuries
4. Anxiety products, Ex: Medicines, Soaps
5. Functional products, Ex: Fruits, Vegetables.
5. Benefit Segmentation :
The buyer from the basis of segmentation but not on the demographic principles
mentioned above. Here consumers are interviewed to learn the importance of different benefit
they may be expecting from a product.
6. Volume Segmentation :
The buyer is grouped into categories like purchases, medium purchases, and Single
unit purchasers. This analysis is also capable of showing the buying behaviour of different
groups.
7. Marketing Factor Segmentation :
The price, quality, advertising, promotional devices, etc.., are some of the activities
involved under this method.
8. Psychographic Segmentation :
Buyer is divided into different groups on the basis of personality and life style. (Suit)

9. Behavioural Segmentation :
Buyer is divided into groups on the basis of their knowledge of attitude towards, use
of, or response to a product.
(a) Occasions: Buyer the occasions they develop a held or buy a product. Ex: air
travel is related to business.
 (b) Benefits: It is the benefit they seek from the product.
(c) User Status: Markets can be segmented into non user, potential user, first time
user, regular user of a product.
(d) Usage Rate: It segment into light, medium, and heavy product users.
(e) Loyalty Status: Buyer can divide into group according to their degree of Loyalty
Completely loyal, partially loyal and so on.

Level of Market Segmentation

Market Marketing Total marketer one segment

Product Variety
Marketing

Target Marketing Total market in different segment

Micro marketing Service one segment on local basis

Service individual customer needs

Customized marketing

Personalized marketing Service the customer needs

Benefits of Segmentation
1. The manufactures is a better position to find out and compare the marketing potentialities
of his products. (Judge Product).
2. The result obtained from market segmentation is an indicator to adjust the production,
using men, materials and other resources in the most profitable manner.
3. Changes required may be studied and implemented without losing markets.
4. It helps in determining the kinds of promotional devices that are effective and helps to
evaluate their results.
5. Appropriate timing for the introduction of new products, advertising etc. could be easily
determined.
Customer Relations marketing

It is widely implemented model managing a company’s interaction with customers,

clients, and sales prospected. It involves using technology to organize, automate and
synchronize business process principally sales activities, but also those for marketing
customer services and technical support.
In simple words, customer relationship management describes a company wide
business strategy including customer interface development. As well as other department.
Benefit for customer Relations Marketing
Customer Relations Marketing System may be chosen because it is through to provide
the following advantages.
 Quality and efficiency.
 Decrease in overall cost
 Increase profitability.
 Unit – IV
MARKETING MIX
Meaning: E. Jerome McCarthy
Marketing Mix represents the total marketing programme of a form; it
involves decisions with regard to product, price, place, promotion.
4 P’s- Marketing mix [Functions (or) Element:
1. Product:
A product is good or service that customer want product policy of a firm also deals with
proper branding, risk packing, appropriate colour and other products.
Products mix requires decision with regards to (a) size and weight of the products
(b) quality of the product (c) design of the products (d) volume of output (e) brand name (f)
packing (g) product range (h) product testing (i) warranties and after sales service etc…
2. Price:
Price is an important factor affecting the success of a firm pricing decision and
policies have a direct influence on sales volume and profits of business price is an
important elements the marketing mix. The price that will enable the firm to sell its products
successfully. Demand, Cost, Competition, Government regulation etc…
3. Promotion:
Promotion component of the marketing mix is concerned with bringing products to
the knowledge of customers and persuading them to buy, promotion mix involves decisions
with respects to advertising , personal selling and sales promotion.
4. Distribution:
The elements of the marketing mix involve choice for the place where products are to
be displayed and made available to the customers. The wholesale and retail outlets or
channels of distribution. It to provide the products to the right customer, at the right time and
place on a continuing basis
4 P’s 4C’s
Product Customer needs
Price Cost to the customer
Place Convenience
Promotion Communication
 Elements & Marketing Mix
1. Product Planning comprises policies and procedures relating to:
(a) Product line to be offered- qualities and design –also services.
(b) Markets to Sell: whom, where, when and in what quantity.
(c) New product policy - Research and development Programmes.
2. Pricing, Policies and procedure relating to:
(a) Price level to adopt
(b) Specific prices to adopt
(c) Price police, for example one price or varying prices maintenances, use of list price,
etc..,
(d) Margins to adopt, for the trade.
3. Branding, policies and procedures relating to:
(a) Selection of trademark.
(b) Brand policy – Individualized or family brand
(c) Sale under private label or unbranded
4. Channels of distribution, policies and procedures relating to:
(a) Channels to use between plant and customers.
(b) Degree of selectivity among wholesalers and retailers
(c) Efforts to gain co-operation of the trade.
5. Personal Selling, Policies and procedures relating to:
(a) The amount of spend
(b) Copy platform to adopt
(i) Product image desire (ii)Corporate image desired
(c) Mix of advertising to the trade, through the trade, to customer.
7. Promotions, Policies and Procedures relating to:
(a) Special selling plans (or) devices directed at or through the trade.
(b) From of these devices for consumers promotions, for trade promotions.
8. Packing, policies and procedures relating to:
(a) Formulation packages and labels
9. Display, policies and procedures relating to:
(a) Amount to be spent on display to help effect sale.
(b) Methods to adopt to secure display.
10. Servicing, policies and procedures relating to:
(a) Services needed
11. Physical handling, policies and procedures relating to:
(a) Warehousing (b) Transportation (c) Inventories
12. Fact finding and analysis, policies and relating to:
Securing, analysis and use of facts in marketing operations.
Problems in Marketing Mix
I. Controllable Factors :
1. Product Planning:
A product planning is essential to meet the market demand. Marketing is a
managed process through which product are method with markets. A good policy is a
guide for decision making.
2. Price:
It deals with price competitions. It also deals with policies of prices, discounts,
allowance, terms of credit, etc.., A reasonable profit is aimed at by the offered and the
price of the product is fixed to suit the market.
3. Branding:
It must create a particulars image in the minds of the consumers. Decision of
the trademark is important in developing the product.
4. Personal Selling:
Personal selling is good to increase the sale and at the same time to know the
customers needs and desires.
5. Sales Promotion:
The marketing manager makes our programmes to increase the sales through
exhibitions, displays, advertising, etc..,
6. Physical Distribution:
It includes the channels of distribution, transportation, warehousing, inventory
control, etc..,
7. Market Research:
Market research is a system by which one can analyse the market conditions.
It helps a marketer in formulating the policies by which the product reaches in an
efficient way in the hands of the consumers.
8. Internal Competition:
 A firm may have many departments headed by specialities. There must be co-
ordination among the department heads to achieve a good result.

II. Uncontrollable Factors :

1. Consumers Buyer Behaviour:
Consumers buyer behaviour is affected by buying habits, buying power
motivation in buying, living standard, social environment, technological changes, etc..,
2. Traders Behaviour:
The behaviour of intermediaries – wholesalers or retailers, and their
motivation, practices, attitudes, etc.., affects the marketing of the products and volume.
3. Competitors Behaviour:
New business firms come up. This attitude invites competition among the
industrialists.
4. Governmental Behaviour:
The marketing manager should consider the rules and regulations of the
Government respect of product, pricing competitive practices, advertising etc.,
and firms have no control over the Laws.
Product
Meaning
Any thing that possesses utility is described as goods. A product both what a seller
has to sell and what a buyer has to buy.
Philip Kolter “A product is a set of tangible and intangible attributes, including
packing, colour, price, manufacturer’s prestige, retailer’s prestige, services”.
Features of product:
(i) Tangibility:
It should be perceptible by the touch. An item to be called a product should
have a tangibility character touch, seen or feeling for instance, car, shirt, book
etc.
(ii) Intangible Attributes:
The product may be intangible, in the form of services, for instant banking
insurance services, repairing etc. It is an associated feature. For instance,
Scooter is a tangible product, and when free servicing is offered by the seller,
and then the product is not only tangible item but auto intangible one.
(iii) Associate Attributes:
 Such attributes may be brand, package, warranty etc, for instance, Hindustan
Lever’s Vanaspati ghee has a brand name DALDA and with his package it can
be.
Advertising
Meaning
Hall defines “Salesman ship in writing, print or pictures or spreading information by
means of the written and printed word and the pictures”.
Advertising means a non personal stimulation of demand for a product.
Objectives of Advertising:
To make an immediate sale.
To build primary demand.
To introduce a price dear.
To inform about a product availability.
To build overall company image.
To develop overseas market.
To increase market share.
To increasing sales.
To Increased Awareness.
Kinds of Advertising
1. Product Advertising:
This is based on the feeling that a good image often enhances the effectiveness of
product advertising. Ex. Dalta, Dettol, Horlicks
2. Institutional Advertising:
Where the adjective of advertising is project the image of a company or its services,
it takes the form of an Institutional Advertising.
3. Pioneer Advertising:
New product or product category.
4. Selective (or) Competitive advertising:
Here the goal of advertising is to influence demand of the product.
5. Co- operative advertising:
When manufactures wholesalers and retailers jointly sponsor and share the
expenditure on advertising it takes the form of cooperative advertising.
6. Commercial Advertising:
It is a business Advertising
 (a) Industrial advertising – used for selling industrial products.
(b) Trade advertising adverting relation to a trade
(c) Farm advertising farm implements.
Media of Advertising
I. Indoor Advertising: II. Outdoor Advertising:
(a) Press Advertising  Poster Advertising
(b) Radio Advertising  Vehicular Advertising
(c) Television Advertising  Painted Display
(d) Film Advertising  Electric Display
 Hand Bills
 Pamphlets
 Leaflets
III. Direct Advertising or Direct Mail:
 Sales Letter,
 Envelop Enclosures,
 Booklets, Gift, Novelties, Catalogue
IV. Promotional Advertising:
 Window Display.
V. Show Room.
 Exhibition.
 Counter Display.
 Internet.
Advertisement Copy
 The basic function of advertising is influencing and motivating people, is achieved
through the advertisement copy.
 The words used to convey the advertising idea or theme is called the ‘copy’.
AIDAS Formula
A - Attention Invitation of the attention of the consumers towards the
product.
I - Interest Developing of Interest in the minds of consumer about the
product.
D - Desire to create Desire of Commodities.
A - Action to convert the desire into the act of buying.
S - Satisfaction Aiming Satisfying the Consumers.
 Channels of Distribution
Meaning
A channels of distribution or marketing channel is the structure of intra company
organization units and extra company agents and dealers whole sales and retail through which
a commodity product or service is marketed.
Importance of channels of distribution:
 It brings maximum profit to all institution concerned.
 Very Important producer and consumer
 There is big gap between the produces and consumer is shrunk by it.
 It is connecting link to produces and the consumer to sell the products.
Convention market channels (Traditional)
1. Manufacturer - Consumer.
2. Manufacturer - Retailer - Consumer
3. Manufacturer - Whole seller - Retailer - Consumer
4. Manufacturer - Agent middle men - whole seller - retailer -
Consumer
Channels of distribution Methods
I. Direct Distribution.

Producer Producer Producer

Consumer Consumer Consumer Consumer

II. Indirect Distribution.

Producer

Producer Producer

Intermediary Consumer

Consumer
Consumer

Consumer
Factors affecting channel of Distribution
I. Market Consideration
 The nature of the market
 The number of potential consumer
 Geographic concentration of the market
 Order size
 Consumer buying habit
II. Product Consideration
 Unit Sales value of the product
 Bolt& weight
 Technically
 Nature of product line
 Seasonal
III.Company Consideration
 Financial Strength.
 Reputation
 Market Control
IV. Middle man Consideration
V. Consumer Consideration

FUNCTIONS OF MIDDLEMEN
The functions of the middlemen consist or include the following;
1. Information provider: - Middlemen have a role in providing information about the
market to the manufacturer. Developments like changes in customer demography,
psychology, media habit and the entry of a new competitor or a new brand and change in
customers preferences are some of the information that all manufacturers wants. Since these
middlemen are present in the market place and close to customers they can provide this
information at no additional cost.
2. Price stability: - Maintaining price stability in the market is another function a
middleman performs. Many a time the middlemen absorb an increase in the price of the
products and continue to charge the customer the same old price. This is because of the intra-
middlemen competition. The middlemen also maintain price stability by keeping his
overhead low.
3. Promotion: - Promoting the products in his territory is another function that
middlemen perform, many of them design their own sales incentive programmes, aimed at
building customers traffic at the other outlets.
4. Financing: Middlemen finance manufacturer’s operation by providing the necessary
working capital in the form of advance payments for goods and services. The payment is in
advance even though the manufacturer may extend credit because it has to be made even
before the products are bought, consumed and paid for by the ultimate consumer.
5. Title: - Most middlemen take the title to the goods, services and trade in their own
name. This helps in diffusing the risks between the manufacturer and middlemen. This also
enables middlemen to be in physical possession of the goods, which in turn enables them to
meet customer demand at very moment it arises.
6. Help in production function: The producer can concentrate on the production
function leaving the marketing problem to middlemen who specialize in the profession. Their
services can best utilize for selling the product.
7. Pricing: In pricing a product, the producer should invite the suggestions from the
middlemen who are very close to the ultimate users and know what they can pay for the
product. Pricing may be different for different markets or products depending upon the
channel of distribution.
8. Matching Buyers and Sellers: The most crucial activity of the marketing channel
members is to match the needs of buyers and sellers. Normally, most sellers do not know
where they can reach potential buyers and similarly, buyers can reach potential sellers.
9. Standardizing Transactions: - Standardizing transaction is another function of
marketing channels. Taking the example of the milk delivery system, the distribution
channels standardized throughout the marketing channel so that consumers do not need to
negotiate with the sellers on any aspect. Whether it is price, quality, method of payment or
location of the product.
By standardizing transactions, marketing channels automate most of the stages in the flow of
products from the manufacturer to the customers.
10. Matching Demand and Supply: The chief functions of intermediaries are to assemble
the goods from many producers in such a manner that a customer can affect purchases with
ease. The goal of the marketing is the matching of segments of supply and demand.
The matching process is undertaken by performing the following functions:
 a. Contractual: - Finding out buyers and sellers.
b. Merchandising: Producing goods that will satisfy market requirements.
c. Pricing: process of attaching value to the product in monetary terms.
d. Propaganda: Sales promotion activities.
e. Physical Distribution: Distribution activities.
f. Termination: Settlement of contract i.e. paying the value and receiving the
goods.
 Unit - V
Marketing and Government
 A group of consumer that consist of local states and federal authorities. In the
United States. The govt. Market spends the most money of any other. Consuming group and
so presents an attractive marketing target for some business.
 Al through it can involve filling out consideration paper were and other
significant challenges.
 Marketing to the Govt is different. When the govt buys it buy differently than
the commercial sector the language it speaks is different many business turn to specially
agencies and seasonal Govt.
 Govt business not a luxury many small business owners can offer. So to
achieve as you ventures into business with the govt the govern marketer must adjust
conventional marketing states give and out reach activities to meet the conventions of this
very luxury market place.
Bureau of Indian Standards [BIS]
 The BIS, the national standard body of India as a statutory body set up and the
bureau of Indian standards act, 1986.
 The Bureau is a body corporate and responsible of members formulating
national Standards.
 It comprises of members representing the industry, consumes organization,
scientific Research institutes and professional body.
 State Govt and members of parliament.
Standards Formulation
Indian standards are Formulated Keeping in view national provides programmer for
industrial development technical needs. Export promotion, consumer welfare, health, safety
etc. So far over 17000 standards have been formulated in different technology areas.
Consumerism
Meaning
“The consumer was treated as a King” Caveat Emptor. “Consumerism is a sham of
marketing” Peter Drucker. “Consumerism is not limited to organized effort only but, is a
social movement to argument the rights and power of the in relation to seller”.
CONCEPT OF CONSUMER PROTECTION
Consumer protection means safeguarding the interest and rights of consumers. In
other words, it refers to the measures adopted for the protection of consumers from
unscrupulous and unethical malpractices by the business and to provide them speedy
redressed of their grievances. The most common business malpractices leading to
consumer exploitation are given below:
.
Sale of adulterated goods i.e., adding something inferior to the product being sold.
Sale of spurious goods i.e., selling something of little value instead of the real
product.
Sale of sub-standard goods i.e., sale of goods which do not confirm to prescribed
quality standards.
Sale of duplicate goods.
Use of false weights and measures leading to underweight.
Hoarding and black-marketing leading to scarcity and rise in price.
Charging more than the Maximum Retail Price (MRP) fixed for the product.
Supply of defective goods.
Misleading advertisements i.e., advertisements falsely claiming a product or service
to be of superior quality , grade or standard.
Supply of inferior services i.e., quality of service lower than the quality agreed upon
Consumer Rights under the Consumer Protection Act, India
Although businessman is aware of his social responsibilities even then we come
across many cases of consumer exploitation.
That is why government of India provided following rights to all the consumers under the
Consumer Protection Act:
1. Right to Safety:
According to this right the consumers have the right to be protected against the
marketing of goods and services which are hazardous to life and property, this right is
important for safe and secure life. This right includes concern for consumer’s long term
interest as well as for their present requirement.
2. Right to Information:
According to this right the consumer has the right to get information about the quality,
quantity, purity, standard and price of goods or service so as to protect himself against the
abusive and unfair practices. The producer must supply all the relevant information at a
suitable place.
3. Right to Choice:
According to this right every consumer has the right to choose the goods or services
of his or her likings. The right to choose means an assurance of availability, ability and access
to a variety of products and services at competitive price and competitive price means just or
fair price.
4. Right to be Heard or Right to Representation:
According to this right the consumer has the right to represent him or to be heard or
right to advocate his interest. In case a consumer has been exploited or has any complaint
against the product or service then he has the right to be heard and be assured that his/her
interest would receive due consideration.
5. Right to Seek Redressal:
According to this right the consumer has the right to get compensation or seek
redressal against unfair trade practices or any other exploitation. This right assures justice to
consumer against exploitation.
The right to redressal includes compensation in the form of money or replacement of goods
or repair of defect in the goods as per the satisfaction of consumer. Various redressal forums
are set up by the government at national level and state level.
6. Right to Consumer Education:
According to this right it is the right of consumer to acquire the knowledge and skills
to be informed to customers. It is easier for literate consumers to know their rights and take
actions but this right assures that illiterate consumer can seek information about the existing
acts and agencies are set up for their protection.
Consumer Exploitation:

a) Selling higher price:

The price charged by the seller for a product or service is not proportionate to
the quality but more than the fair price.
b) Product Risk:
Harmful and banned drugs, electrical appliances with inadequate safety
provisions are sold in the market.
c) Adulteration:
It is quite common in food articles. It spoils the health of the consumers.

d) Duplication:
Duplicates of popular brands of product. Ex: watch, mobile.
 e) Substandard:
On opening a packed and sealed container one finds the contents with poor
quality .Ex: Snap deal products.
f) Artificial Scarcity:
In milk booths and cinema houses we final “No stock” and “Houseful” boards.
But milk and cinema ticket are available at a higher price in the black market.
g) False claims:
Producers make false claims and bogue presentation about products in the
media (TV) of advertising with a view to midland the consumers.
h) Fitness:
Item unsuitable for human consumption are sold in the market. Same item
market as ‘numerable’ but breaks while using them. Ex: Coke, Pepsi.

Green Marketing
 According to the Ama “Green marketing is the marketing of products that are
presumed to be environmentally safe. Thus green marketing incorporates a broad range of
activities, including product modification changes to the production process packaging
changes as well as modifying advertising.
Yet defined green marketing is a not a simple task where reveral meaning
interest and contradict each other an examples of thus will be the each other an examples of
thus will be the existence of verifying social, this form other similar terms used are
Environmental. Marketing and Ecological marketing.

Green Marketing Methods

Beyond making an environmentally friendly product, business owners can do other things as
part of their green marketing efforts. The following can all be part of a green marketing
strategy:

 Using eco-friendly paper and inks for print marketing materials

 Skipping the printed materials altogether and option for electronic marketing
 Having a recycling program and responsible waste disposal practices
 Using eco-friendly product packaging
 Using efficient packing and shipping methods
 Using eco-friendly power sources
 Taking steps to offset environmental impact
Forward Trading in Commodities
Commodity markets can include physical trading and derivatives trading using spot
prices, forwards, futures, and options on futures. Farmers have used a simple form of
derivative trading in the commodity market for centuries for price risk management. Futures
are traded on regulated commodities exchanges.
Types of Commodities

 Metals (such as gold, silver, platinum and copper)

 Energy (such as crude oil, heating oil, natural gas and gasoline)
 Livestock and Meat (including lean hogs, pork bellies, live cattle and feeder cattle)
 Agricultural (including corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar)

Modern marketing is Ans : Consumer oriented

Marketing has close inter-relationships with Ans : Manufacturing

Working capital is called Ans : Current capital
Standardization is a Ans : Business process
Consumer behaviour is Ans: a mentalprocess
The market segmentation is to measure Ans : The changing behaviour of consumers
.Price is a key element in the Ans: Market information
Products flow downwards Ans: From producers to consumer
Caveat emptor means Ans: Let the producer beware
Modern Marketing is Ans: Dynamics
Marketing ___employment opportunities is Ans: Increases
Transfer of title is effected due to Ans: Selling
Marketing involved innumerable Ans: Risks
Modern marketing studies the behaviour of Ans: Consumers
.in recent times. there is an every increasing need for houses due to Ans: Nucleus families
More advertising is required in this stage Ans: Introduction
A customer is attracted by Ans: Quality
Grade certification for agricultural goods is given by Ans: Agmark
A consumer has the right to Ans: Choose
Marketing is Ans: Links consumers and producers
Warehousing controlled by tire government is Ans: Bonded warehousing
MIS stands for marketing information Ans: System
Economic model of consumer behaviour deals with Ans: Motivation
Population characteristics are dealt with under______market segmentation Ans: Demographic
Promotion mix includes Ans: Personal selling
Fixing prices at a low level is Ans: Penetration pricing
Consumer protection Act was enacted in Ans: 1986
B.l.S. stands for ____ of india Standards Ans: Bureau
The word market is derived from Ans: Marcatus
The mass media of advertising is Ans: Television
Which of the following is not relevant to market mix? Ans: Personality
The basic quality of goods salesman is Ans: Personality
The consumer protection act was enacted in the year Ans: 1986
Father name of marketing Ans: PhilipKottler
The best channel for consuming perishable goods is Ans: Direct
Offering free gifts is an example for Ans: Sales promotion
Fixing Rs. 99 for a commodity is called Ans: Odd price
In globalization era companies wish to get Ans: ISO 2009

IMPORTANT QUESTION
Unit-I
5-mark
1. Define Marketing
2. What is marketing?
3. State the features of marketing
4. What are the objects of marketing?
5. Importance of marketing?
6. Scope of marketing?
7. What do you mean by global marketing?
8. What is global marketing? Give examples.
9. What is Telemarketing?
10. Write a note on E-marketing?
11 .Explain nature of e-marketing?
12. Discuss the three major marketing?
13. Difference between marketing and selling?
14. Difference between market and marketing?
15. Modern marketing concept?
16. Factures of modern marketing?
17. Benefits of modern concept of marketing?
18. Career opportunities are available in marketing?
8-mark
1. Explain the importance of marketing?
2. Various approaches to the study of marketing?
3. Evolution of marketing concept?
4. Advantages of global marketing?
5. Modem marketing concept?
6. Benefit of modern marketing concept?
7. Factors influencing marketing concept?
8. Nature and scope of global marketing?
9. "Marketing begins with consumer and ends with consumer"-explain
10. Importance of marketing in the concept ofIndian economy?
1I .Importance of marketing to the society?
12. Uses of global marketing?
13. Importations of marketing?
14. Explain marketing ethic?
Unit-II

5-mark
1. Explain the concept of buying.
2. Elements of buying?
3. Discuss the merits of water transport?
4. List out the factors of is considered inbuying?
5. How does storage differ from warehouse?
6. Advantages of warehousing?
7. Utility of storage?
8. Benefits of transport?
9. Importance of transport?
10. Merits of water transport?
11. Merit of air transport?
12. Features of marketing information system?
13. Importance of market information?
14. Need for marketing information?
15. Various sources of market information?
16. Advantages of standardisation?
17. Causes for marketing risks?
18. Advantages of assembling?
8-Mark
1. The functions of marketing?
2. Advantages of standardisation and grading?
3. Risks caused by changed in marketing condition?
4. Need for a marketing information system?
5. Sources of marketing information system?
6. Need for marketing finance?
7. The various methods and sources offinancing grant financial needs of a marketer?
8. Various methods of buying?
9. Element of selling?
10. "Functions of marketing are indispensable"-elucidate?
11. Merit and demerits of air transports
12. Merits and demerit of road transports?
Unit-III

5 Marks
1. Consumer Behaviour?
2. Factor influencing consumer behaviour?
3. What do you understand by consumer behaviour?
4. Important buying motives?
5. What are the factors that affect the consumer buying behaviour,
6. Social factor that are affecting the consumer behaviour?
7. Maslow’s classification of basic needs?
8. Factors that affect the consumer buying behaviour?
9. Buying motives of consumer?
10. Economic theories of consumer behaviour?
11. What are the buying motives?
12. What do you mean by market segmentation?
13. Why market segmentation is done?
I4. State the criteria for good market segmentation?
15. Benefits of market segmentation?
16. Socio-economic factors affecting market segmentation?
17. Marketing segmentation?
18. What is market segmentation?
19. Benefit of market segmentation?
20. Important bases of market segmentation?
21. CRM-write short note?

8-mark
l. Bases of market segmentation?
2. Benefits of market segmentation?
3. Market segmentation and its importance?
4. What are the basic elements of marketing segmentation?
5. Importance of buying motives?
6. Major stages in the consumer buying decision process?
7. Consumer behaviour theories?
8. Factors in flouncing consumer behaviour?
9. Consumer relations marketing?
10. "Consumer behaviour is an indispensable area of marketing “consumer?
I l. Consumer behaviour and it function?

Unit –IV
5-mark
1. List out the stages in PLC
2 .Elements of product policy?
3. Advantages of branding?
4. Product life, cycle?
5 Stages in product life cycle
6. Brand mall and trade mark
7. Characteristics of good brand?
8. Define Marketing Mix
9 .Compounds of product mix?
10. Concept of marketing mix?
11. Elements of marketing mix?
12. Odd Pricing and penetration pricing?
13. Objectives of pricing decisions?
14. Pricing policies?
15. Types of pricing strategies
16. Factors affecting pricing decisions?
17. Objectives of distribution on channel?
18. Criteria for good package?
19. Benefits of sales promotion?
20. List out any lour services of a retailer.
21. Importance of retailing?

8 Mark
I. List out of factors affecting pricing decisions?
2. Kinds of pricing?
3. Various pricing strategies?
4. The qualities of a good sales man.?
5. Functions of middleman?
6. Are salesmen born? Explain
7. Elements of marketing mix?
8. Kinds of agent middlemen?
9. The different steps to be followed introductions for a new product?-"
10. Different types of sales promotion?
I l. Product life cycle and if stager?
12. Are middlemen necessary? Discuss.
I3. Factors influencing pricing decision?
14. Product mix strategies?
I5. Factors influencing change in product mix?
16. Services of the retailers?
17. Product life cycle?
18. Objectives of pricing?
19. Criteria for selection of channel of distribution?
20. Advantages of brand names?
 Unit-V
5 Mark
1. What is Consumerism?
2. Role of consumerism in marketing?
3. Rights of consumers?
4. Need for consumer production?
5. Consumerism in India?
6. Consumer guidance society of India?
7. Importance of consumer protection?
8. Consumer exploitation in India?
9. The term consumer?
I0. Right of consumer?
11 . State the functions of BIS.
12. Defects of agricultural marketing in INDIA?
13. Uses of AGMARK?
14. Objectives of ISI?
8 Mark
1 .The rights of consumers under consumer protection ACT l986?
2. Rights of producers, and consumer?
3. Scope of consumerism?
4. Remedial measures for agricultural marketing?
5. Consumer protection and its significance?
6. Role of Indian standard institution in maintaining standards for products in India?
7. Problems of agricultural marketing in India?
8. Rights of a consumer?
9. Main functions of ISI?
10. Right of producers and consumer?
11. Consumerism and its steps takers as for to protect the interest of consumer in India?
12. Laws of protects consumers?
13. Consumer protection act l986?
14. What rights are cornered under consumer protection act 1986, for a consumer?
 Multiple Choice Questions
UNIT I
1. Modern marketing is ______________.
A. Price oriented B. Product oriented
C. Consumer oriented D. Profit oriented
2. Marketing utility consists of _______________.
A. Price B. Place, Price
C. Product, place, price, and profit D. Price, place, promotion and product.
3. A place for buying and selling activities is called ______________.
A. Market B. Marketing
C. Market research D. Market information
4. The exchange value of a good / service in terms of money is ___________.
A. Price B. Product
C. Buying D. Selling
5. The words used to convey the advertisement idea is ______________.
A. Advertisement B. Advertisement Research
C. Advertisement copy D. Advertisement budget
6. Advertisement promotes ______________.
A. Purchases B. Production
C. Sales D. Price
7. The social aspect of marketing is to ensure ______________.
A. Price B. Demand
C. Low price with high quality D. Service goods
8. ________________ is a process by which a product is branded.
A. Brand B. Branding
C. Packing D. Pricing
9. The main principle of cooperative marketing is ______________.
A. More profit B. Increased production
C. Normal profit with service D. Low price.
10. Facilities for sale and purchase of agricultural products are available in
________________.
A. Commodity exchange B. Regulated market
C. Stock exchange D. Unregulated market
11. ____________ is a part of the product, which carries verbal information about the
product.
A. Label B. Price
C. Product D. Bill
12. Market segmentation is _______________
A. Dividing B. Targeting
C. Positioning D. Differentiation
13. Fixing a high price for a new product will be called as _____________
A. Price skimming B. Price segmentation
 C. Dual pricing D. Customary pricing
.
14. Brand loyalty refers to product ______________
A. Identification B. recognition
C. Preference D. Insistence
15. Name / Term / symbol / design etc used to identify the goods is _____________
A. Brand B. Branding
C. Trade mark D. Trade name
16. Pricing based on area is called as ______________
A .Domestic pricing B. Geographical pricing
C. Skimming pricing D. Cost plus pricing
17. Sales management deals with _____________
A. Sales B. Product
C. Profit D. Market
18. The behaviour exhibited by people in the course of purchasing is _____________
A. Seller behaviour B. Consumer behaviour
C. Government behaviour D. Purchase behaviour
19. The process of subdividing total markets into several sub market is .
A. Market fluctuations B. Market positioning
C. Market segmentation D. Market penetration.
20. Mercatus means ____________
A. Buying B. To sell
C. To assemble D. To trade
21. Perfect market means .
A. Price are not uniform B. Product are not identical
C. Free entry and into market D. Lack of communication.
22. When advertising is reached to the residential place of the people it’s called __________.
A. Promotional advertising B. Outdoor advertising
C. Indoor advertising D. Direct advertising
23. _________________ is an element of buying.
A. Financing B. Assembling
C. Risk bearing D. Customer services.
24. An advertisement copy must have _______________.
A. Description B. Narration
C. Exposition D. Report
25. Sales promotion tool includes ________________.
A. Appeals B. Coupons
C. Vertical marketing D. Price
26. Standardization includes ______________.
A. Estimating demand B. Locating sources of supply
C. Grading D. Product line.
27. The middlemen who do not take any title to goods_______________.
A. Retailer B. Wholesaler
C. Agent D. Commission houses
28. The prime object of marketing is ______________.
A. Profit B. Service
C. Sales D. Consumer satisfaction
29. Markets are created by _______________.
A. Nature B. Economic force
C. Business men D. Product
30. Consumer purchasing power is determinate by _______________.
A. Salary B. Disposable income
C. Total income D. Price
31. A group of products that are closely related called ____________.
A. Product Mix B. Product line
C. Product items D. Product diversification
32. Price and competition is increasingly servers in __________________.
A. Decline stage B. Growth stage
C. Maturity stage D. Introducing stage
33. The main aim of regulated markets is _________________.
A. Eliminate middle man B. To earn more profit
C. Increase sales D. Avoid distribution cost
34. Sound marketing of a product is depended upon ___________________.
A. Good product B. Better prices
C. Consumer D. Proper distribution
35. Identify the one which comes under service marketing _________________.
A. Insurance B. Motor cars
C. Refrigerators D. Television
36. Agmark standardization is given to _______________.
A. Industrial goods B. Agricultural goods
C. Imported goods D. Consumer goods
37. Zero level channel of distribution is also called as ______________.
A. Direct marketing B. Multilevel marketing
C. Two level marketing D.Microlevel marketing
38. Product mix is the set of all product ______________.
A. Lines and items B. Multilevel marketing
C. Two level marketing D. Micro level marketing
39. Marketing begins and end with _______________.
A. Consumer B. Transport
C. Price D. Product
40. _________________ is the first step in marketing.
A. Buying B. Selling
C. Assembling D. Financing
41. Transportation creates ______________ utility.
A. Time B. Place
C. From D. Storage
42. Warehouse creates _____________ utility.
A. Place B. Time
C. Form D. Storage
43. Trading up is the act of ____________ high priced prestigious products to existing
product line.
A. Adding B. Subtracting
C. Deleting D. Maintaining
44. Brand is a means of _______________.
A. Communication B. Identification
C. Packing D. Specialization
45. Selling is an act of _____________.
A. Persuasion B. Illusion
C. Forcing D. Communication
46. Price is a _______________ term.
A. Absolute B. Relative
C. Composite D. Standard
48. ____________________ creates a particular image in the minds of consumer.
A. Branding B. Personal selling
C. Grading D. Product planning
49. The second element to affect the volume of sales is ______________.
A. Price B. Product
C. Promotion D. Distribution
50. Anything which possesses utility is ______________.
A. Product B. Finished goods
C. Raw materials D. Stock

UNIT 2

1. ________________ goods are meant for final consumption.

A. Consumer B. Convenience
C. Shopping D. Specialty
2. ________________ is a group of product that is closely related.
A. Product line B.Productmix
C. Product Development D. Product Positioning
3. _______________ may be defined as the exchange of goods or services in terms of money.
A. Price B. Product
C. Grading D. Branding
4. ________________ is allowed in the form of deductions from the list price.
A. Cash discount B. Quantity decisions
C. Trade discount D. Seasonal discount.
5. ______________ is price at which a retailer sells the products to his buyers.
A. Administered price B. FOB price
 C. Whole sale price D. Retail price

6. ______________ creates a non personal stimulation of demand in advertising.

A. Distribution B. Pricing
C. Production D. Public relation
7. _____________ gives chances to the consumers to compare the products with their
substitutes.
A. Sampling B. Contest
C. Premium offers D. Distribution
8. _______________ is a mass communication of information intended to persuade buyers as
maximize.
A. Salesmanship B. Sales promotion
C. Personal Selling D. Advertising
9. _______________ and other forms of promotion are supported by advertisement.
A. Personal selling B. Branding
C. Promotion D. Publicity
10. ____________ is published according to the taste or liking of the public.
A. Special issues B. News paper
C. Journals D. Magazines
11. _________________ are in the form of a small book.
A. Booklets B. Circulars
C. Folders D. Sales letters.
12. ______________ influences the buyer to buy a product.
A. Packing B. Price
C. Grading D. Personal Selling
13. Products reach the hands of customers through a number of channels, of that the main
channel is ______________.
A. Wholesaler B. Distributor
C. Retailer D. Agents
14. ______________ includes the storage and protection of goods.
A. Warehouse B. Transport
C. Store house D. Godowns
15. ____________ is a wide term which includes advertising sales and personal selling.
A. Distribution B. Warehousing
C. Transportation D. Promotion
16._____________ brings about the change in the ownership of products.
A. MIS B. Promotion
C. Storing D. Exchange
17. ______________ is the most fundamental aspect for any merchandise transactions.
A. Financing B. Grading
C. Insurance D. Packing
18. ______________ system existed in the initial stage of marketing.
A. Sales B. Barter
C. Exchange D. Purchase
19. _______________ type of markets deals with purchase or sale of gold.
A. Bullion B. Retail
C. World D. Commodity
20. In ____________ Market, there are large number of buyers and sellers meet.
A. Imperfect B. Perfect
C. Bullion D. Retail
21. A buyer makes a purchase of a particular product or a particular brand is termed as
_____________.
A. Product buying motives B. Patronage motives
C. Selection motives D. Purchase motives
22. Motives refer to strong _______________.
A. Needs B. Emotions
C. Purchase power D. Behavior
23. Buying decision of a customer depends on his _______________.
A. Promotion B. Attitude
C. Price D. Product
24. A satisfied buyer is a silent _________________.
A. Advertisement B. Salesman
C. Promotion D. Target Market
25. A Consumer chooses an alternative which gives maximum .
A. Satisfaction B. Usage
C. Utility D. Durability
26. The buying process begins when a person has .
A. an unsatisfied need B. a satisfied needs
C. an immediate need D. a future need
27. The external factors of consumer behaviour are also called as .
A. Environmental factors B. Consumer behaviour factors
C. Product factors D. Specific factors
28. Economics explains that consumer behaviour in relation to factors.
A. Economic B. Social
C. Psychological D. Demographic
29. A collection of individuals which influences individual’s opinion are called as
.
A. Reference groups B. Advertising agency
C. Manufacturers D. Friends
30. Culture refers to .
A. Social values, languages, customs B. needs, motives, perception
C. Wants, search, decide D. Product preference.
31. Carry their goods on their heads.
A. Peddlers B. Hawkers
C. Cheap Jacks D. Street Traders.
32. Open their shops on market days.
 A. Market traders B. Street traders
C. Cheap jacks D. Hawkers
33. Service of retailer .
A. demand creator’s B. matches demand with production
C. Both a & b D) keeps variety of goods
34. An Examples of agent middle man .
A. Retailer B. Wholesaler
C. Broker D. Truck jobbers
35. An example of merchant middleman .
A. Commission agent B. Wholesaler
C. resident buyers D. factors
36. Services rendered by wholesaler to manufactures is .
A. acting as an intermediary B. retailer
C. facilitating small purchase D. to keep varieties of goods.
37. An example of large scale retailers .
A. Departmental stores B. Fixed shop retailers
C. General shops D. Market traders.
38. Super markets are an example of .
A. Itinerant retailers B. Fixed shop retailers
C. Small – scale retailers D. Large scale retailers
39. And are the criteria for market segmentation.
A. Accessibility, responsiveness B. Accessibility, user status
C. Accessibility, loyal status D. Accessibility, attitude
40. In the whole market is divided into different geographic units.
A. Demographic segmentation B. Socio – economic segmentation
C. Geographic segmentation D. Psychographic segmentation
41. Benefits of segmentation
A. Reduced sale B. Shifting loyal
C. Determining marketing strategies D. Unknown Markets
42. Consumers who buy one brand all the time is .
A. Shifting loyal B. Safe core loyal
C. Hard Core loyal D. Switchers
43. Consumers who are loyal to two or three brands are .
A. Hard core loyal B. Safe – core loyal
C. Shifting loyal D. Switchers
44. Consumers who shift from one brand to another is .
A. Hard core loyal B. Safe core loyal
C. Shifting loyal D. Switchers
45. Consumers who show no loyalty to any brand.
A. Hard core loyal B. Safe core loyal
C. Shifting loyal D. Switchers
46. Areas in India is considered today as a huge store house of unstopped marketing
opportunities.
A. Rural B. Urban
 C. Semi urban D. Metropolitan

47. marketing is identifying and serving the needs of consumers living in villages.
A. Agricultural Marketing B. Rural
C. Retail Marketing D. International Marketing
48. marketing is concerned with the flow of goods and services from urban to rural and
vice versa.
A. International B. Retail
C. Urban D. Rural
49. Reasons for growing rural markets are .
A. Promotion Strategies B. Marketing Strategies
C. Change rural consumer behaviour D. Product mix
50. is the final stage of any economic activity.
A. Brokering B. Wholesale
C. Retail D. Factoring

UNIT - 3

1. Social Marketing is primarily concerned with .

A. Changing culture B. Changing status quo.
C. Motivating Volunteers D. Influencing behavior.
2. Which of the following is not a criterion for Segmenting Consumer Markets?
A. Geographic B. Turnover
C. Behavioural D. Psychographic
3. The increased has enhanced rural demand for several products.
A. Income B. Purchasing Power
C. Awareness D. Population
4. Is where goods are sold directly to consumers?
A. Pricing Decisions B. E-Commerce
C. Retail Marketing D. Product Strategy
5. When a product is sold, utility is created.
A. Ownership B. Time
C. Place D. Transport
6. is the largest global online auction website.
A. Alibaba.com B. e-bay
C. Wal-mart D. Reliance fresh
7. The limitations of e-marketing is .
A. The inability to touch & feel B. Instant Cash Payment
C. Touch & feel D. Immediate delivery
8. Selling emphasizes on .
A. Product B. Markets
C. Consumers D. Sellers
9. Views customers as last link in the business.
A. Selling B. Marketing
 C. Buying D. Assembling

10. Marketing emphasizes on .

A. Consumer wants B. Seller needs
\C. Manufacturers profit D. Retailers margin
11. Distribution means .
A. Physical transfer of goods B. Assembling of goods
C. Processing of goods D. Scatter of goods
12. Factors influencing marketing concepts .
A. Population growth B. Assembling of goods
C. Physical transfer of goods D. Seatter of goods.
13.___________ creates images in the minds of the consumers.
A. branding B. Pricing
C. product planning D. market research.
14. Product represents ___________.
A. bundle of expectations. B. demand
C. consumers need D. economic activity
15.___________ are those goods which consumers buy with minimum shopping effort.
A. Consumer goods B. Industrial goods.
C. Convenience goods D. shopping goods.
16. Goods with unique characteristics are called as ___________.
A. Consumer goods B. Industrial goods.
C. Convenience goods D. specialty goods
17._____________ are purchased try the consumer onlv after careful comparison
A. Consumer goods B. Industrial goods
C. Convenience goods D. shopping goods.
18.____________ is the set of all products lines and items that a particular seller for sale
A. price mix B. promotional mix
C. Marketing mix D. product mix
19. Expansion of product mix is also called as____________.
A. diversification B. Disinvestment
C. Differentiation. D. Diffusion
20. Eliminating an entire product line is termed as ___________.
A. contraction of product mix. B. elimination of product mix
C. expansion of product mix D. positioning the product.
21. Feature of growth stage in PLC _____________.
A. increase in sales and expenses. B. increase in sales&decrease in profit
C. increase in sales and profit. D. increase in sales and promotion.
22. In saturation stage further increase in _______ is not possible.
A. sales. B. profit
C. Awareness D. Promotion
23. In new product planning process_____________ is the first stage.
A. Testing B. Idea generation.
C. Screening D. Analysis.
24.__________means critical evaluation of product ideas generated.
A. Screening. B. Idea generation.
C. Testing. D. Analysis.
25.___________ involve projection of future demand
A. Market analysis B. Concept testing
C. Test marketing D. Commercialization
26. ___________is the final stage of product planning.
A. Market analysis B. Concept testing
C. Test marketing D. Commercialization
27. You pay price ___________.
A. when you pay rent. B. When you meet a Salesman
C. when you visit a shop. C. When u seek.
28. Marketing creates ___________for goods and services.
A. customer B. demand
C. business D. Competition
29. In the modern sense emphasis of marketing is on__________ satisfaction.
A. Competition B. Sales
C. Market D. Consumer
30. Marketing starts with identification of______ needs.
A. Consumer B. Goods
C. Seller D. Manufacture.
31. Advertising creates_________among customers.
A. Belief B. Confusion
C. Clarity D. Awareness
32. Distributional activities involve decisions regarding________.
A. Advertisement. B. channels of distribution
C. decision making D. Promotion
33. Price of a product affects its__________
A. Advertisement B. Demand
B. C. Packing D. Promotion
34. Assembly of goods means bringing goods to a___________ place
A. Central. B. Market.
C. Consumer D. Seller
35. Grading means ___________ products into different classes
A. Planning B. Marketing
C. Different D. Separating
36. Risk management is an important function of ___________.
A. marketing B. selling
C. planning D. controlling
37.__________ are networks that connect people within a company to each other and to the
company network.
A. Internets B. Extranets.
 C. Bit streams D.WWW

38. A ________ is an online advertisement that pops up between changes on a website.

A. border B. plunge
C. border D. interstitial
39.__________marketing is the Internet version of word-of-mouth marketing.
A. Virtual B. Virile.
C .Visceral D. Viral.
40. E-marketing is best seen as __________.
A. the same as e-commerce B. Equivalent to e-business
C. Broader than e-business D. a subset of e-business
41. Marketing is a __________ found in all types of business.
A. universal function B. strategic function.
C. Economic function D. managerial function
42. Products are more identifies by their________ name.
A. Brand B. Packet
C. Advertisement D. Name
43. Plastic jars are now-a-days quiet popular for_________.
A. Bundling B. Packing
C. Collecting D. Assembling
44. The object of sales promotion is to increase the buying response of ultimate_______.
A. Wholesaler B. Consumers.
C. Retailers D. Manufactures.
45. The object of sales promotion is to improve_________.
A. market share. B. Stock.
C. Price D. Quality
46. Free samples are given to customers to introduce a new __________
A. Product. B. Promotion.
C. after sales service D. Application
47. Coupon is a certificate that reduces the_________ of the product.
A. Price B. Quantity
C. after sales service D. Application
48. Price-off gives a temporarary________to the consumers.
A. Information B. Products
C. free sample D. Discount
49. Advertising is a___________ communication.
A. Personal. B. non-personal.
C. both 1& 2 D. Regional
50. In the absence of advertisement firms cannot reach the consumers in_________.
A. large number. B. few number
C. retail D. Demand
 UNIT – 4

1. Traditional concept of marketing in_________

(a) Product maximization (b) Profit maximization
(c) Sales maximization (d) none
2. The first objects of marketing in ___________
(a) Creation of utility (b) Cost of marketing
(c) Price stability (d) Cost control
3. The collection of goods from different marketers at a central point for sale at required places
is________ (a) Pricing (b) Risk taking
(c) Storage (d) Concentration
4. Which of the following reveals market information.....?
(a) Friends (b) Relatives
(c) Television (d) Customers
5. Age, occupation, economic circumstances are example of_____
(a) Personal factor (b) Social factor
(c) Cultural factor (d) Business factor
6. Market segmentation enables the marketers to....
(a) Find most suitable market for his product (b) Limits sales
(c) Appoint the best salesman (d) Use only specialist salesman
7. Marketing mix is a combination of....
(a)Markets & products (b) Product planning
(c)Selling and pricing (d) Product, Price, Promotion &
Physical distribution
8. Which of the flowing results in immediate process....?
(a)Sales promotion (b) Advertising
(c) Personal selling (d) all
9. Consumer protection act was passed in_____
(a) 1956 (b) 1940
(c) 1990 (d)1986
10. To which product AGMARK is affixed ____
(a)Industrial product (b) Consumer product
(c) Agricultural product (d) Government product
11. The term market is derived from the________word marcatus
(a) Latin (b) French
(c) Arabian (d) None
12. Modern marketing concept is associated with________
(a) Production (b) Sales
(c) Exchange (d) Consumer
13. When the buyer purchases all his requirements from one seller it is called______
(a) Concentrated buying (b) Scattered buying
(c) Reciprocal buying (d) None
14. Door delivery of goods is possible in_________
(a) Road transport (b) water transport
(c) Rail transport (d) Air transport
15. The personal factor that affects the consumer behaviour in_________
(a) Age (b) Occupation
(c) Income (d) AII the above
16. Which of the following is a requirement of successful market segmentation_______?
(a) Accessibility (b) Measurability,
(c) Nature of demand (d) All the above
17. The purpose of packaging is__________
(a) Protection (b) Convince
(c) product differentiation (d) All
18. Consumer is one who________
(a) Purchases (b) Sales
(c) Manufactures (d) None
19. E-marketing means_______
(a) Enrollers marketing (b) Engineering marketing
(c) Electronic marketing (d) None
20. Market includes both place and region in which buyers and sellers are in free competition with
one another is defined__________
(a) Chapman (b) Philip kolter
(c) Pyle (d) Spearman
21. The Latin word mercatus means____________
(a) To trade (b) To buy,
(c) To sell (d) None
22. Storage function of marketing create___________
(a) Possession utility (b) Time utility
(c) Form utility (d) Place utility
23. Buying and selling are_________
(a) Supplementary (b) Elementary
(c) complementary (d) Visionary
24. The term consumer behaviours of human behaviour.
(a) Sub-division (b) Subset
(c) Pivot (d) None
25. Buying behaviour can be classified into___________
(a) 6 (b) 7
(c) 4 (d) 3
26. Marketing mix includes_______
(a) Product (b) place
(c) Price (d) All
27. Four Ps classification was popularized by________
(a) Neil H Borden (b) E-James McCarty
(c) LR Dicksee (d) Stanton
28. The basic rights of consumers are defined by ________
 (a) Internal organization of consumers (b) External organization of
consumers
(c)International organizations of consumers (d) None
29. The consumer guidance society of India was established in_______
(a) 1977 (b) 1966
(c) 1967 (d)1968
30. Market provides____________ function
(a) Production (b) Consumption
(c) Exchange (d) None
31. Marketing concept is associated with_________
(a)Consumer stratification (b) Integrating marketing
(c)Realisation of organisational goals (d) AII
32 "To manage the future is to manage information” who said_________
(a)Harper (b) Street
(c) Kottler (d) Robinson
33. Transport creates__________ utility
(a)Time (b) Place
(c) possession (d) All
34. Demography is a study of________
(a)Consumers (b) Population characteristics
(c) Labor efficiency (d) Ethics
35. Motivation is the______________of behavior
(a) What (b) Why
(c) How (d) When
36. Fixing prices initiation at a low price is called___________pricing strategy
(a)Skimming (b) Penetration
(c) Full cost (d) Marginal cost
37. 4 Ps of marketing mix was put forwarded by __________
(a) MC Carthy (b) Williamson
(c) Kotter (d) Robbins
38. Consumer protection act was enacted in the year______
(a)1976 (b)1981
(c)1986 (d)1991
39. The proposal commission on agriculture___________
(a)Royal commission m agriculture (b) National commission on Labour
(c)National commission on agriculture (d) Royal commission on labour
40. The aim of marketing is ________
(a) Stratification of consumers (b) Increase of sales
(c) Increase the profit (d) none
41. Marketing starts before ________
(a) Selling b) Production
(c) pricing (d) Robbins
42. The act of dividing the whore market into many sub-markets is known as________
(a) Product mix (b) Market segmentation
 (c) Marker mix d) Production

43. Economics factors relate to__________dimensions of consumers

(a)Physiological (b) Social
(c) Economical (d) Stanton
44.Which product has a longer life___________
(a)consumer goods (b) Industrial goods
(c) Agricultural goods (d) customers
45. Skimming pricing involves fixing_________price in the initial stage to cream of demand
(a)High (b) Low
(c) Trade directories (d) Williamson
46. Which of the following is a medium of pre advertising________?
(a) Window display (b) Exhibition
(c) Trade directories (d) Social
47. setting a low initial price to as many buyers and possible is cared__________
(a) Competitive pricing (b) unfair trade pricing
(c) penetrative pricing (d) French
48 ____________Links the producer &consumer
(a) Manufacture (b) Govt
(c) Middle man (d) Low
49____________Creates desire ferment- products
(a) Marketing b) Advertisement
(c) personal selling (d) Manufacture
50. The word market is derived from the________.word
(a)Latin (b) French (c) Arabian (d) None

UNIT – 5

1. A market which connects primary market and terminal market is known as_________
(a) Primary market (b) Secondary market
(c) Local market (d) Billion market
2. According to Pyle function of marketing are classified
a) 2 b)3
c)4 d)5
3.__________.Transport is a connecting links between other means of transport
a) Road b) Water
c) Sales promotion d) Transport
4._________is called as printed salesmanship
a) Personal selling (b) Advertising
(c) Sales promotion (d) Transport
5. Infant stage of a product life cycle is also known as_________stage
(a) Introduction (b) Growth
(c) Maturity (d) Decline
6. Indian standard institute was setup in
(a)1945 (b)1950
(c)1947 (d)1948
7. The word market is derived from the Latin word__________
(a) Concentrated (b) Diversified
(c) opposite (d) contract
8. Consumer movement was started in the year____________.
(a)1960 (b)1965
(c)1970 (d)1975
9. Modern marketing is________
(a) consumer oriented (b) The guiding element of business
(c) A system (d) All
10. Marketing has close inter-relationships with________
(a)Manufacturing (b) Financing
(c) Personnel (d) All
11. Working capital is called____________
a) Current capital b) Liquid capital
(c) Both a& b (d) none
12. Standardization is a ___________
a) A physical process b) mental process
(c) A business process (d) None
13. Consumer behaviour is ___________
a) A business process (b) A mental process
(c) The decision making process (d) None
14. The market segmentation is to measure _____________
a) The changing behaviour of consumers b) Rail
c) Air d) None
15. Price is a key element in the___________
a) Personal selling b) Market information
c) Product life cycle d) Marketing mix
16. Products flow downwards ___________
a) From producers to sellers b)From producers to consumers
c)From consumers to producers d) None
17. Caveat emptor means ________
a) Let the producer beware (b) Let the seller beware
(c) Let the buyer beware (d) None
18. Who said that "a customer is the important visitors on our premises_______?
(a) Annadurai (b) Bhararhiar
(c) Nehru (d) None
I9. Modern marketing is.________
(a) Product Oriented (b) Sales Oriented
(c) Consumer Oriented (d) None
20. Tele marketing reaches the consumer _______
(a) Very easily b) Rail
c) Air d) None
21. Marketing results in________
(a) Consumers stratification (b) Profitable operation
(c) organizational integration (d)All the above
22. The least cost form of transport is__________
(a) Train (b) Bus
(c) Flight (d) none
23. Consumer behaviour refers to the buying behaviour of__________
(a) Middleman (b) Ultimate consumers
(c) Govt (d) Industries
24. Marketing segmentation on the basis of rich: poor, middle cost of living etc is known as____
(a) Benefit segmentation (b) Product segmentation
(c)Demographic segmentation (d)social physiological egmentation
25. Channel functions______
(a) Transfer of title of goods (b) Physical movements of goods
(c)Storage of goods d) All the above
26. 60 watts bulb, a tube is all examples of __________
(a) Simplification (b)Standardization
(c)Modernization (d) None
27. Product mix is mainly done for ___________
a) Utilize by products b) Meet competition
c) Make salesman more effective d) Fit customer requirements
28. Rights of consumer is to get ___________ b) Rail c) Air d) none
29. Which of the following is a future of marketing?
a) Consumer oriented b) Starts and ends with consumers
c) It is a science as well as art d) all
30. The place where goods used for production is marketed is called as _________
a) Industrial market b) Consumer market
c) Govt market d)None
31.__________ transport is suitable for international trade
a) Road b) Rail
c) Air d) None
32. AGMARK is given to _________
a) Industrial goods b) Agricultural goods
c) Both a& b d) None
33. Socio-economic factor that forms the base for market segmentation is ________
a) Income b) Occupation
c) Education d) All the above
34. Which of the following is a buying motive _______
a) Convince b) Economy motive
 c) Long live together d) All the above

35. Charging different prices for the same product service is known as _________
a) Dual pricing b) Penetration pricing
c) Skimming pricing d) none
36. The stages through which is a product passes on it is called ______
a) Product life cycle b) Product modification
c) Skimming pricing d) None
37. E-marketing means __________
a) Engineering marketing b) Electronic marketing
c)Endless marketing d)All the above
38. Consumer means __________
a) The seller b) Rail
c) Air d) None
39. Modern marketing is __________
a) Consumer oriented b) Economy motive
c) Long live together d) All the above
40. Marketing has close inter-relationships with ___________
a) Manufacturing b) Rail
c) Air d) None
41. Working capital is called __________
a) Rail b) Current capital
c) Increases d) None
42. Standardization is a __________
a) Business process b) Rail
c) Air d) None
43. Consumer behavior is
a) Product life cycle b) Product modification
c) Skimming pricing d) None
44. The market segmentation is to measure____________
a) Manufacturing b) The changing behavior of
consumers d) Long live together
45. Price is a key element in the____________
a) The seller b) Risks
c) Market information d) None
46. Products flow downwards____________
a) Rail b)Currentcapital
c)increases d) From producers to consumer
47. Caveat emptor means____________
a) Let the producer beware b) Current capital
c)increases d) None
48. Modern Marketing is_____________
a) Dynamics b) Penetration pricing
c) Skimming pricing d) none
49. Marketing __________employment opportunities is
a) None b) Increases
c) Penetration pricing d) Skimming pricing
50. Transfer of title is effected due to
a) Selling b) risk
c) consumers d) quality
 PRINCIPLES OF MARKETING
MINIMUM MATERIAL
UNIT I - Market:
The term market is derived from the lain word “ marcatus”. Market is a place where
buying and selling takes place.
IMPORTANCE OF MAKETING:
i) To the society ii) To the individual firm
 Connecting link between  Revenue of the firm
producer and consumer  Marketing and innovation
 Increasing the living
standard of people
 Increasing the nations
income
 Increasing employment
opportunities
 Transport facilities

OBJECTIVES OF MARKETING:
 Intelligent and capable
 To develop the marketing field
 To guiding policies can be developed
 To suggest solutions
 To find sources for further information
Classification of Market:
IX. On Geographic or area basis
(e) Family Market
(f) Local Market
(g) National Market
(h) World Market (or) International Market:
X. On Economic Basis
(c) Perfect Market
(d) Imperfect Market
XI. On Time Basis Time
(d) Very Short Period Market
(e) Short Period Market
(f) Long Period Market
XII. On the Basis of Business
(c) Wholesale Market
(d) Retail Market
XIII. On the Basis of Importance
(d) Primary Market (Village Market)
(e) Secondary Market
(f) Terminal Market

XIV. On the Basis of Goods

(c) Commodity Market
(d) Capital Market
XV. On the Basis of Regulations
 (c) Regulated market
(d) Unregulated or Free Market
XVI. On the Basis of the Nations or Transactions
(c) Spot Market
(d) Future Market
Nature of Marketing
10. Marketing is Consumer Oriented
11. Marketing starts and ends with the consumer
12. Modern Marketing precedes and succeeds production
13. Modern marketing is the guiding elements of business
14. Marketing is a science as well as an art
15. Marketing is a system
16. Exchange process is the essence of marketing
17. Marketing in Goal oriented
18. Marketing is a process

RECENT INNOVATIONS IN MODERN MARKETING

5. De marketing 2. Remarketing 3. Over Marketing 4. Meta Marketing

Importance of Global Marketing (or) International Marketing:

III. For National Economy Society II. For the Firm

E-Marketing
Electronic Marketing, the use of the Internet to advertise and sell goods and services.

Advantages of Telemarketing:
 Ordering of goods and services.
 To render services required for the product are service thereby.
 To establish long marketing relationship.
 To retain customers and acquired new potential customers.
 The cost of retention of customers or client is cheaper.
 To ensure electronic based system of control.

Characteristics of the Ethical Philosophy :

i) Model Idealism
ii) ii) Institutionalism
iii) iii) Utilitarianism

UNIT II
Functions of Marketing

IV. Function of exchange II. Function of Physical Supply III. Facilitating

Functions
a). Buying a). Transportation a). Financing
b). Assembling b). Storage b). Risk Bearing
c). Selling c). Standardization
d). Market Information
e). Promotion
Problems of Buying:
 What do buy  How much to buy
 When to buy  Where and how to buy
 How to negotiate price and terms

Functions of Buying (or) Elements of Buying

III. Planning of purchase (purchasing methods)
(l) Concentrated Buying (r) Buying by inspections
(m) Diversified Buying (s) Buying by Stamps
(n) Reciprocal Buying (t) Buying the description
(o) Hand to Mouth Buying (u) Buying by requirement
(p) Forward Buying (v) Open Market Buying
(q) Contract Purchasing (w) Assembling

Selling:
Elements of selling: Kinds of Sales
f) Product planning and developing 6. Sales by Inspection
g) The Contractual 7. Sales by Sample
h) Demand Creation 8. Sales by Description
i) Negotiation
j) Contractual Buying
Transportation - Functions of Transport
 Encourage large scale production  It strengthens the defence of nation
 It increase the mobility of factors of  It reduce the danger of storage
production  It helps in the transportation the
 It encourage specialization price economy wealth
 It helps in stability opportunities  It transforms social and cultural
structure
 It increase demand for goods.
MODES OF TRANSPORTATION
IV. Land Transport: V. Water Transport: III. Air Transport:
(d) Pathway (a) Ocean Transport (a) Internal Transport
(e) Road (b) Coastal Shipping (b) External Transport
(f) Railway (c) Overseas Shipping (c) International
(d) Passengers Transport.
(e) Cargo
STANDARD AND TRADING
 Determination of standard grading , Inspection, Labelling
Types of Standard:
 Quality Standard  Quantity Standard  Standards of Size and measurement
Standardisation Grading
6. It is fixed before grading 6. It is followed standardisation
7. It is the process of fixing standards 7. It is process of responding the goods
on the basis of quality
8. It is Mental process 8. It is physical process
9. It is applied in agricultural as well as 9. It is applied in agricultural products.
manufacture goods
 10. It is meaningless without grading is I 10. It is possible without standardization
stand for standardization. agmark stands for grade.
Different kinds of Warehouse:
i) Public Warehouse ii) Bonded Warehouse iii) The Central Warehousing
Corporation
iii) The State Warehousing Corporation (SWC)
MARKETING RISKS
Economic Risks Natural Risk Human
Risk
Time Risks Earthquake Personal Risk
Place Risks Fire Consumer Risk
Competition Risks Rain Govt. Risk
Public Risk
Marketing Selling
8. Selling is part of marketing 8. Marketing is not part of selling
9. Marketing starts before production 9. Selling starts after production
10. Marketing is concerned with buyers 10. Selling is concerned with sellers
need needs
11. It’s a changing needs concepts 11. It is static
12. It requires the performance of several 12. It is concerned with just one aspect,
activities including selling. namely, transfer of title for a price.

13. It is the starting point of all business 13. It is done towards the end
activities.
14. The philosophy of marketing is 14. Profit maximization is the philosophy
“customer satisfaction” of selling.

UNIT - III
CONSUMER BEHAVIOUR - Definition :

According to J.F.Engel, “consumer behavior can be defined as the activities and the
actions of people and organization that purchase and use economic goods and source,
including influence and these activities and actions”.

Factors of Buyer Behaviour :

Purchase Decision

Internal Factor
External Factor  Social Influences
 Needs  Business Influences
 Motivation  Economic Influences
 Learning  Family Influences
 Attitude  Cultural Influences
 Perception
The Buying Process
  Problem recognition (Need  Attitude
Recognition)  Legitimization
 Awareness  Trial
 Comprehension (Evaluation):  Adoption
 Post purchase Behaviour
MARKET SEGMENTATION
Meaning:
“The process of taking the total Heterogeneous market for a product and dividing it into
several submarket or segments, each of which tends to be homogenous in all significant”.
The market could be segmented in different ways. Ex: A single market of shoes. It may be
segmented into several submarkets – shoes for executives, doctors, college student, etc..,
Criteria for Successful Segmentation:
1). Substantiality
2). Accessibility
3). Represent ability
4). Nature of Demand
5). Response Rates
BASIS OF MARKET SEGMENTATION
 Geographic Segmentation  Volume Segmentation
 Demographic Segmentation  Marketing Factor Segmentation :
 Social – Economic Segmentation  Psychographic Segmentation :
 Product Segmentation  Behavioural Segmentation :
 Benefit Segmentation

Unit – IV
MARKETING MIX
Meaning: E. Jerome McCarthy
Marketing Mix represents the total marketing programme of a form; it
involves decisions with regard to product, price, place, promotion.
4 P’s- Marketing mix [Functions (or) Element:
Product ,Price, Promotion, Promotion, Distribution
4 P’s 4C’s
Product Customer needs
Price Cost to the customer
Place Convenience
Promotion Communication

Elements & Marketing Mix

1. Product Planning comprises policies and procedures relating to
2. Pricing, Policies and procedure relating to
3. Branding, policies and procedures relating to
4. Channels of distribution, policies and procedures relating to
5. Personal Selling, Policies and procedures relating to
6. Promotions, Policies and Procedures relating to
7. Packing, policies and procedures relating to
8. Display, policies and procedures relating to
9. Servicing, policies and procedures relating to
 10. . Physical handling, policies and procedures relating to
11. Fact finding and analysis, policies and relating to
Problems in Marketing Mix
III.Controllable Factors :
9. Product Planning
10. Price
11. Branding
12. Personal Selling
13. Sales Promotion
14. Physical Distribution
15. Market Research
16. Internal Competition
IV. Uncontrollable Factors :
5. Consumers Buyer Behaviour
6. Traders Behaviour
7. Competitors Behaviour
8. Governmental Behaviour
Product - Meaning
Anything that possesses utility is described as goods. A product both what a seller has
to sell and what a buyer has to buy.
Philip Kotter “A product is a set of tangible and intangible attributes, including
packing, colour, price, manufacturer’s prestige, retailer’s prestige, services”.
Features of product:
(iv) Tangibility
(i) Intangible Attributes
(ii) Associate Attributes

Advertising
Meaning - Advertising means a non personal stimulation of demand for a product.
Objectives of Advertising:
 To make an immediate sale.  To build overall company image.
 To build primary demand.  To develop overseas market.
 To introduce a price dear.  To increase market share.
 To inform about a product availability  To increasing sales.
 To Increased Awareness.
Kinds of Advertising
 Product Advertising
 Institutional Advertising
 Pioneer Advertising
 Selective (or) Competitive advertising
 Co- operative advertising
 Commercial Advertising
Media of Advertisin
Indoor Advertising
Outdoor Advertising
Direct Advertising or Direct Mail
Promotional Advertising
Channels of Distribution - Meaning
 A channels of distribution or marketing channel is the structure of intra company
organization units and extra company agents and dealers whole sales and retail through which
a commodity product or service is marketed.
Factors affecting channel of Distribution
IV. Market Consideration
V. Product Consideration
VI. Company Consideration
IV. Middle man Consideration
VII. Consumer Consideration

Unit – V - Marketing and Government

 A group of consumer that consist of local states and federal authorities. In the
United States. The govt. Market spends the most money of any other. Consuming group and
so presents an attractive marketing target for some business.
Consumerism - Meaning
“The consumer was treated as a King” Caveat Emptor.
“Consumerism is a sham of marketing” Peter Drucker.
“Consumerism is not limited to organized effort only but, is a social movement to
argument the rights and power of the in relation to seller”
Consumer Exploitation:
i) Selling higher price
j) Product Risk:
k) Adulteration
l) Duplication
m) Substandard
n) Artificial Scarcity
o) False claims
p) Fitness: