MARKETING MANAGEMENT (Paper-103)

Unit-1: Basic concept

1.0 Introduction of marketing:
Change is the law of nature. Marketing is a dynamic process
because it is the sum total of changing human beings Buyers
needs & habits change over a period of time. Marketing is a
very important function of every organization both commercial
& non- commercial. Marketing is a process originated &
developed along with human civilization.

1.1 Nature of marketing:

1) Marketing is both customer-oriented & competitor-oriented.
2) It starts with consumers & end @ consumers by satisfying
their needs.
3) Marketing is the most important function of management.
4) The long-term objective of marketing is profit maximization
through customer satisfaction.
5) Marketing must deliver goods & services in exchange of
money.

1.2 Meaning of marketing:

The term market originates from the Latin noun ‘Marcatus’
which means a place where business is conducted.
Marketing is the process of interesting potential customers &
clients in your products &/ or services.
The key word in this marketing definition is “process”;
marketing involves researching, promoting, selling, & distribution
your products or services.
1.3 Definition of marketing:
1) Marketing management is the analysis, planning,
implementation & control of programs designed to create,
build & maintain beneficial exchange & relationships with
target markets for the purpose of achieving organizational
objectives. → PHILIP KOTLER
2) Marketing is the performance of business activities that
directs the flow of goods & services from producers to
customer or user. →AMERICAN MARKETING
3) Marketing is the delivery of a standard of living to society.
→PAUL MAZUR
4) Marketing is the creation & delivery of standard of living to
the society. → Prof. MALCOLM MC NAIR

1.4 Basic concept of marketing:

1) Production concept: It is an approach which believes that
customers are willing to buy the products which are easily
available @ low prices.
It means improvement in the production efficiency &
distribution coverage.
2) Product concept: It means improvement in product over a
time. It is marketing philosophy which assumes that
customers admire quality-rich products, with advanced
features.
3) Selling (sales) concept: It is another common approach
many firms may adopt. It is common among those
companies & organisations, which sell ‘unsought goods’
require aggressive selling efforts such as encyclopedias,
health, insurance policies & others products, which the
buyers normally do not think of buying themselves.
4) Marketing concept: It holds that achieving organizational
goals depends on knowing the need & want of target
market.
 5) Society marketing concept: This concept hold that the
organization’s task is to determine the needs, wants &
interests of target group of consumers & to delivery their
desired satisfactions more efficiently than its competitors,
i.e. it preserves or enhances the consumers & the societies
wellbeing.
1.5. Marketing vs market:
1.6 Concept of marketing mix:
It is 1 of the most fundamental concepts in marketing
management. There are 4 types: Product; Pricing;
Distributive channel (Place); & Sales promotion techniques
(Promotion).
A fair combination of these marketing elements is called
marketing mix. It is the blending of 4 inputs (4Ps) which form
the core of marketing system.
1) Product: It means the goods & services combination the
company offer to the target market. It is a “value
creation”.
It includes Physical objects (goods); services; ideas;
people; places & organizations.
2) Place: It includes company activities that make the
product available to target customers. In this time they
should place all the above place activities are Channels of
distribution; & Physical distribution. It is a “value
delivery”
3) Price: The price is the amount of customer who has to pay
& obtain the product. It is a “value capture”.
A price is nothing but an offer by a sellers to buyers in
the market. It is dynamic & requires alteration on the
basis of the buyers’ responses.
4) Promotion: It is related to the communication system
which includes the elements of sender, receiver, message,
encoding, decoding, feedback, & noise. It is a “value
communications”.
The major components of promotion mix are:
1. Advertising;
2. Personal selling;
3. Sales promotion;
4. Publicity & public relations.
1.7 Concept of Marketing Strategy:
A marketing strategy refers to a business’s overall game plan
to facilitate the buying and selling of its products or services. A
marketing strategy determines how to reach prospective consumers
and turn them into customers. It contains the company’s value
proposition, key brand messaging, data on target customer
demographics, and other high-level elements.
A thorough marketing strategy covers the four Ps of marketing:
product, price, place, & promotion.
A clear marketing strategy should revolve around the company’s
value proposition, which communicates to consumers what the
company stands for, how it operates, and why it deserves its
business.
1.8 Formulation of Marketing Strategy:
Strategy involves the following steps:-
1) Determination of marketing objectives.
2) Generating alternative marketing mix.
3) Selecting the most profitable marketing mix.
4) Implementing the chosen marketing mix.
1.9. Concept of Marketing Environment;
It refers to the encompasses the marketing team within an
organization & includes all the outside factors of marketing that
affects the team’s ability to develop & maintain successful customers
relationships with their targeted customers relationships with their
targeted customer groups.
1.10 Nature of Marketing environment;
1) Marketing environment is COMPLEX;
2) Marketing environment is DYNAMIC;
3) Marketing environment is MULTI-FACED;
4) Marketing environment has a FAR- REACHING IMPACT.
Since the marketing environment is compex, dynamic, multi-faced
& has a far-reaching impact, dividing it into external & internal
components enables us to understand it better.
1.11 Types of marketing environment:
A) MICRO ENVIRONMENT: It indicators the factors & forces in
the immediate area of operation of the firm which affect the
marketing manager’s ability to serve the customers. It come under
“External environment (or) COSMIC analysis” are:
1. The company;
2. Suppliers;
3. Marketing intermediaries;
4. Customers;
5. Competitors; &
6. Public.
B) MACRO ENVIRONMENT: It refers to the general
environment, that can affect the working of all business enterprises.
It come under “External environment (or) PESTLE analysis” are:
1. Political & Legal factors;
2. Economic environment factors;
3. Social cultural factors (or) socio-cultural / cultural factors;
4. Natural environment factors;
 5. Technological factors; &
6. Demographic/ population environment factors.
Unit-2: Advertising
2.0 Introduction of advertising:
Advertising is an important tool of promotion. It is a non-
personal presentation of an idea or a product (where as personal
selling or salesmanship help in personal promotional.) Advertisement
supplements personal selling to a great extent. Advertising has,
acquired great importance in the modern era characterized by tough
competition in the market and fast changes in technology, and
fashion and taste customers.
2.1 Concept of advertising:
Advertising is the dissemination of information concerning an
idea, product or service to induce action in accordance with the
intent of the advertiser. According to William J. Stanton, “Advertising
consists of all the activities involved in presenting to an audience a
non-personal, sponsor-identified, paid-for message about a product
or organization.”
Advertising is any paid form of non-persona: presentation and
promotion of ideas, goods or services of an identified sponsor. The
message which is presented or disseminated is known as
‘advertisement’.
2.2 Advertising as a tool of communication:
* Communication process: It refers to the interchange of
information between two or more people. For the communication to
triumph, both the parties must be able to exchange and understand
the information. If the flow of information is obstructed or hindered
for some reason, the communication process fails.
 * Advertising communication: It can be defined as a perception
process of the source, a message, a communication channel, and a
receiver. A receiver might sometimes become the source of
information by communicating the message to family and friends.
This kind of communication is called word-of-mouth communication,
which involves social interactions between two or more people.
• Advertising communication includes:
a) Any material published using any medium or activity
undertaken by or on behalf of the advertiser over which the
advertiser has minimal control.
b) Something that attracts the attention of the public in a way to
promote directly or indirectly a product or a service.
• Advertising communication does not includes:
a) Labels or packaging on the products.
b) Corporate reports including public affair messages in the
press release and other media statements and annual
reports.
*Advertising communication model:
 The model explains the key factors in an effective advertising
communication process. The sender must be aware of his target
audience and the kind of responses he wants. They must be skilled
enough to encode the messages and consider how the audience
usually decodes the message. The communication process in
advertising involves sending or passing on a message from the
source or the sender to the receiver or the audience through a
channel.
1) Source;
2) Message;
3) Media;
4) Receiver;
 5) Feedback;
6) Context; &
7) Other factors: - Noise, Encoding, Decoding.

2.3 Concept of publicity:

Publicity is also a way of mass communication. It is not a paid
form of mass communication that involves getting favourable
response of buyers by placing commercially significant news in mass
media. Publicity is not paid for by the organisation. Publicity comes
from reporters, columnists, and journalists. It can be considered as a
part of public relations.
Publicity involves giving public speeches, giving interviews,
conducting seminars, offering charitable donations, inaugurating
mega events by film actors, cricketers, politicians, or popular
personalities, arranging stage show, etc., that attract mass media to
publish the news about them.

2.4 Meaning of publicity:

Publicity is a mode of promoting a business to create brand
awareness among people through media coverage and other modes
of public communication without incurring any costs. The core
objective is to create brand awareness via spreading brand-relevant
information through non-paid mass media platforms.
2.5 Advertising vs publicity:

2.6 Advertising vs personal selling:

2.7 Concept of personal selling:
Personal selling is face-to-face selling where one person who is
the salesman tries to convince the customer to buy a product
assigned by the company. It is a promotional activity by which the
salesperson uses his or her skills and abilities to persuade people to
buy the product thereby in an attempt to make a sale.

2.8 Concept of propaganda:

Propaganda is a form of psychological warfare that involves
the spreading of information and ideas to advance a cause or
discredit an opposing cause.
2.9 Advertising vs propaganda:
2.10. Concept of Sales promotion:
A sales promotion is a marketing strategy in which a
business uses a temporary campaign or offer to increase interest or
demand in its product or service.
There are many reasons why a business may choose to use a
sales promotion (or ‘promo’), but the primary reason is to boost
sales. Sales boosts may be needed to reach a quota as a deadline
approaches, or to raise awareness of a new product.
2.11 Why we need advertisement:
Advertising is a powerful communication force, highly
visible, and one of the most important tools of marketing
communications that help to sell products, services, ideas, and
images, etc. Many believe that advertising reflects the needs of the
times.
2.12 Role of advertising:
The role of advertising can be classified into two categories:
1)Role of Advertising in Marketing Mix; &
2)Role of Advertising in Society.
1. Role of Advertising in marketing mix:
The marketing mix is the combination of elements
necessary to the planning and execution of the total marketing
operation. The ‘Four Ps’ concept of the marketing mix, developed by
Philip Kotler, and widely adopted by marketing teachers, create four
divisions of the mix, namely, product, price, promotion, and place.
Advertising is an element of promotion. However, it not
only assists in promoting the product but also affects the other
variables of the marketing mix. This can be explained as follows:
 a) Product Advertising;
b) Advertising Price;
c) Advertising Place;
d) Advertising and Promotion;
e) Pace Advertising;
f) Packaging and Advertising; &
g) Advertising Positioning.
2. Role of advertising in society:
Advertising is an integral part of everyday life. It is a
pervasive method of marketing in society. Though the methods by
which marketers advertise have changed over the decades, the role
and purpose of advertising have changed over the period of time.
Without advertising modern society cannot survive.
Advertising is useful to society in the following ways. The following
are roles of advertising in society:
a) Encourage Purchasing;
b) Reflect Cultural Trends;
c) Promotes Economic Growth;
d) Improves Standard of Living;
e) Provides employment; &
f) Advertising and Brand building.

2.13 Importance/Characteristics/ Features of Advertising:

These are characteristics of advertising which are given below:
a) Paid Form;
b) Tool for Promotion;
c) One Way Communication; &
 d) Personal or Non-Personal.
a) Paid Form:
Advertising requires the advertiser (also called the
sponsor) to pay to create an advertising message, to buy advertising
media slots, and monitor advertising efforts.
b) Tool for Promotion:
Advertising is an element of the promotion mix of an
organization.
c) One Way Communication:
Advertising is a one-way communication where a brand
communicates to the customers through different mediums.
d) Personal or Non-Personal:
Advertising can be non-personal as in the case of TV, radio,
or newspaper advertisements, or highly personal as in the case of
social media and other cookie-based advertisements.
2. 14 Advertising vs sales promotion:
2.15 Advantages of advertising:

2.16 Disadvantages of advertising:

• It increases price;
• Consumers desire do not remain stable;
• False advertisement;
• Possible of wrong purchase increase;
• Encouragement to luxury; &
• Excessive expenditure on competition.
 Unit-3: Advt agency
3.0 Introduction of advt agency:
An advertising agency is composed of creative and business
people – the writers and artists, showmen and market analysts,
merchandising and research people, advertising specialists of all
sorts.
But with all this, they are business people, running an
independent business, financially responsible, applying their creative
skills to the business of helping to make their clients advertising
succeed.
The work that advertising agencies do is described in the
“Agency Service Standards” of the American Association of
Advertising Agencies.
3.1 Concept of advertising agency;
Advertising agency is an independent running organization
providing specialized services in the field of advertising and
marketing. It is also referred to as ad agency and is a major
component of advertisement industry. Advertisement agency
provide a wide range services to its advertiser ranging from idea
conception to final printing of advertising. These agencies have a
team of experts of relevant fields who create, plans and monitor all
marketing activities of their clients.
3.2 Functions of advt agency:
1) Attracts clients;
2) Research function;
3) Advertising planning;
4) Prepares advertising budget;
5) Brings Co-ordinations;
 6) Media selections;
7) Creative functions.
3.3 Structure / functional organization of advt. agency:
1.Account Department:
It is a department that deals directly with clients of agency
and focuses on strengthening their relationship with them. Officers
working in this department assist customer in deciding their proper
marketing activities and do all sort of negotiations with them for
entering into a contract for carrying out an advertisement. Account
department do not solely deal into accounts but manages all dealings
with clients. It also coordinates with other key departments working
actively behind the campaign.
2. Marketing Services Department:
Marketing service department is one that acquire necessary
market information for designing effective ads and promotional
messages. It performs a market research and surveys for knowing
about the attitudes of peoples and competition rate in market. This
department assist in finding out the most suitable medium for
carrying out advertisement campaigns.
3. Creative Department:
Create department is concerned with appropriate
designing of commercial ads and promotional messages to be used in
marketing campaigns as per the requirements of clients. It comprises
a team of highly-skilled peoples like graphic designers, technical
experts, art directors, system architectures, artists, computer
programmers etc. These people develop create ideas and then those
ideas physical shape using modern techniques and tools.
 4. Media Planning Department:
Media planning department looks for proper medium or a
combination of medium for running advertisement campaigns for
their clients. Every media for advertising varies in terms of their cost
structure and overall effectiveness. This department focuses on
choosing the best advertising media on behalf of their customers for
yielding better results.
5. Internal Services Department:
Internal service department is one that brings coordination in
between distinct departments of agency for successful completion of
advertising process. It aims at strengthening relations with internal
employees for ensuring continuity and avoiding disputes. This
department is further divided into three sub-departments namely:
Traffic department, Human resource department and Finance
department. Traffic department monitor all work flows of
organization and focuses on raising efficiency. Human resource
department look after all matters related to appointment, shifting
and training of workforce. Whereas, finance department handles all
finances of agency.
6. Client Services Department:
Client service department is a unique type of department found
mostly in large advertisement agencies. They offer promotional
services to their customers other than the marketing ads. This
department assist clients in their business promotion by arranging
public relations campaigns, organizing exhibitions and performing
research on their product demands.
7. Others Departments:
• Contract department;
• Art department;
• Media department;
 • Mechanical department;
• Copy department;
• Research department;
• Radio and TV department;
• Finance department; &
• Public relations department.

3.3 Criteria for selection basis with factors to be considered while

selecting an advt agency:
An advertising agency may be a full-service agency or a part-
service agency. Each has a different outlook and advertising
activities. The selec-tion of advertising agencies depends on whether
one wants a full-service agency or a part-time agency. The selection
is also made on the basis of compatibility of the agency team, agency
stability, services, credibility and the agency’s problem-solving
approach.
1. Full services or part time service agency.
2. Compatibility
3. Agency team
4. Agency stability
5. Services
6. Creativity
7. Problem- solving approach.
8. Others factors:
a. The requirement of the client.
b. Past experience of the client.
c. Reputation of the agency.
d. Compensation to the agency.
e. Creative skills.
f. Top managements or Promoters Interest.
3.4 Benefits of advt agency:
A manufacturer of a product can-either do all the
advertisement related work by himself or get such work done by an
advertisement agency.
The following are the benefits of using the services of an
advertising agency:
1. Expertise- An advertisement agency has a large amount of
expertise in all the aspects of advertising. Therefore, a company gets
highly professional services from an ad agency.
2. Contacts – An ad agency has good contacts with copywriters,
artists, photographers etc. This is very useful to a company which
wants to advertise.
3. Economy – A company pays lesser amount to an ad agency for
the advertisement services than what it would spend if it does
everything by itself. This is because an ad agency can get everything
done at a lesser cost on account of its experience, expertise and
contacts.
4. Savings in time – An ad agency can do the work much faster
than what a company itself can do.
5. Marketing research – An ad agency can conduct market research
on behalf of its clients which is very useful and effective while
launching advertisements.
6. Concentration on production – A company can entrust its
advertisement related work to an ad agency and concentrate its time
and efforts on production.
7. Media mix – An ad agency can suggest the best media mix to
advertise the products based on the nature of the product, the
consumers etc.
 8. Brand development – Brand development is a complex task. An
advertisement agency lends its expertise in the brand development
to a company.
3.5 Limitation of advt. agency:
Though there are several advantages of using the services of
an advertising agency, there are also the following disadvantages:
1. Additional expense – The charges paid to an advertisement
agency are considered an additional expense by some companies.
Small companies cannot afford these expenses.
2. Unfamiliarity of the product – An advertisement agency may
have the expertise in most of the products but not in the product of
a particular company, in which case the advertisement may not be
effective.
3. Unclear Expectations – There is always a difference between
what one expects to accomplish with the ad campaign and what the
agency actually delivers.
4. Low priority – Unless a company is regarded as a big client by
the ad agency, it may not allocate its best resources to the project. If
the agency picks up more big clients after signing a contract with a
company, the latter may get pushed even farther down the priority
line. As a result, the project may be assigned to inexperienced staff
members.
5. Limited Creative – Thinking-An advertisement agency itself may
have limited creative capacity. In such a case it may use an already
used advertisement campaign again. In such a case the
advertisement will lack creativity, novelty and also effectiveness.
 Unit-4: Advt media
4.0 Introduction of advt. media:
Advt. media plays a significant role in binding the direct
communication relationship between the seller and the
buyer.
With the help of right types of advertising, there is not a
single speck of doubt about the fact that you will be able to
make your brand known to people in the best way.

4.1 Meaning of Advt media:

Advertising media is the medium through which an
advertisement is delivered to the public. It carries
messages, stories or points regarding the product that is
being advertised. It is a highly informative way to reach the
masses and ask them to buy the product or avail of the
service.
Advertising is a parallel universe. It is the most powerful
medium through which anything in our mind, thoughts,
and dreams, can be conceptualized and presented in the
world, and most importantly to the target audiences and
beyond.
If the right way of advertising is chosen, anything can get
marketed easily.
Advertising has become an easy yet difficult job to catch
viewers’ attention for a more extended period in today’s
world, where everyone is exposed to technology and the
internet. Therefore, knowing what to deliver, and how to
deliver, who to deliver is a significant concern for
advertisers.
4.2 Factors to be kept in Mind while selecting advt media:
Advertising media selection is the process of choosing
which advertising channels to use to reach a target market.
The selection of advertising media is a key part of any
advertising campaign and should be done carefully to
ensure the best results. There are many different factors to
consider when making an advertising media selection,
including the type of product or service being advertised,
the target market, and the budget.
Selecting of a right of advt media is a difficult task.
Any media that is selected must be capable of
accomplishing at-least the 3 main objectives:
1. It must reach the large no. of people possible;
2. It must attract their attention; &
3. It must be economical.
• For the purpose the management should consider the
following factors:
1) The nature of the product.
2) Market requirements.
3) Advertising objectives.
4) Nature of the message & appeals.
5) Distribution Strategy.
6) Budget.
7) Competitors choice.
8) Media circulation.
9) Media availability.
10) Penetration.
11) Size & nature of the business enterprise.
4.3 Concept of press advt.:
It refers to the placement of advertisements in printed
publications, such as newspapers, magazines, or trade
journals. It involves creating visually appealing and
persuasive advertisements that are printed alongside
editorial content. Press advertising allows businesses to
reach a wide audience through traditional print media.
It is the most popular & effective method of publicity
today. It has become the part of the cultural & political life
of people today. Press also referred to as ‘print’, is an
advertising media comprising all those vehicles owned by
others & which can carry the advertising message in print
to be read by target customers.
In India, this media is very commonly used by
companies & accounts for nearly 70% of their total
expenditure on advt media.
It is also known as PRINT ADVERTISEMENT.
4.4 Types or forms of press advt.:
There are various forms of print advertising, but here are
some of the most common and effective ones:
• Newspapers
• Magazines
• Directories
• Brochures
• Direct Mail
• Billboards
1. Newspapers:
It won’t be wrong to say that newspaper is the king of
print advertising. Even after digitalization, people still like
reading the newspaper. Newspapers have not only a
greater reach, but they are very effective for small or local
businesses.
 2. Magazines:
Magazines are one of the best print advertising
channels to target a specific audience. People in United
States, Europe, and Asia, have a special liking to
magazines. In fact, there are magazines for different
niches such as health, fashion, and beauty, cooking, diet,
etc.
3. Directories:
Directories can give your business greater exposure to
build a client base. Directory ads appear in different forms of
directories such as regional directories, industry directories, yellow
pages, etc.
4.Brochures:
Brochures are one of the best ways to give complete
information about your business, product, or service. Appealing and
comprehensive brochures are still very effective in advertising your
brand. Moreover, brochures are easy to distribute and are very cost-
effective.
5.Direct Mail:
If you want personalization while reaching your potential
customers, then direct mail is still one of the ways to do it. You can
target a specific group of potential customers according to their
needs. Apart from that, direct mailing is also another very affordable
option.
6 Billboards:
Billboards are a form of print advertising which is
impossible to ignore. Appealing and rightly-placed billboards can
help you create brand awareness on a huge scale. Moreover, you can
target a general as well as a specific audience. Different studies have
shown that billboards are still one of the most viewed types of
advertising.
4.5 Advantages of print advt.:
1. Cost-Effective:
Print advertising, without any doubt, is generally a
very cost-effective option. A local business can easily
advertise its products or services in local newspapers at
an affordable cost. Similarly, brochures, direct mails,
etc., are also very economical options.
2. Credibility and Trust Building:
Newspapers and magazines are considered as credible
sources of information. That means a newspaper won’t
advertise any illegitimate or ambiguous brand, product,
or service. Therefore, advertising in a newspaper
automatically helps you build creditability and trust in
your target audience.
3. Better Engagement:
People read the newspaper for different purposes but
obtaining information is a common objective of
newspaper readers. This means a business can have
higher audience engagement through newspaper ads.
However, a business must be unique with its ads
because they can be easily ignored in a cluster of ads.
4. Longevity:
Even a single newspaper is read by multiple readers.
That means your ad will have an extended viewership.
Apart from that, shops, offices, and other venues display
newspapers for longer periods. That means your ad will
be exposed to a lot of people for a long time.
5. Flexibility:
Print advertising is also a flexible option for advertisers
or marketers. That said, a brand can advertise its
 products or services in a specific newspaper to reach an
area-specific audience or reach a general audience.
Similarly, if a business has a low budget for advertising,
it can place its ad on the publication accordingly.

4.6. Disadvantages of press/ print advt;

1. Against the Trend:
Just as mentioned earlier, print media has been
surpassed by digital channels. In fact, the modern generation is not
very fond of reading newspapers or magazines. People born before
the 90s still like reading newspapers, but that means a business may
miss a huge potential customer base by relying on print advertising.
2. Lower Accessibility:
The world has become a global village, and international
trade is the new common now. Even small businesses are making
their way out to international markets. That is why reaching a global
audience through print advertising is simply next to impossible. You
cannot have a global reach with a national newspaper.
3.Paper Media Is “Killing Our Planet”:
There are no easy words to say this, but you need to cut
down a lot of trees to make paper. To be honest, trees and plants are
a lifeline for this planet, and you need 10 liters of water to make one
A4 size sheet, which is pretty “expensive” in terms of natural
resources.
4.6 Concept of outdoor/ mural advt.:
Outdoor advertising is when a business runs an
advertising campaign in specific geographic locations that
reach prospects and potential consumers when they are
outside their homes. Outdoor advertising may use
 different tools such as Billboards, Restaurant ads, Transit
ads, or others.

4.7 Meaning of outdoor advertising:

Outdoor advertising refers to advertising that is displayed
in outdoor locations and targets consumers when they are
away from their homes. Examples include transit
advertising like bus advertising or train ads; roadside
billboards; digital billboards; and outdoor ads, including
posters and ads on street furniture.

4.8 Types of outdoor advt:

1) Static Billboards:
Billboards are giant posters that are displayed in some
of the most popular locations in the area. Now, these giant
posts are the ones that have some advertisement about
the product or the services.
2) Mobile billboards:
There are some graphics and advertisement options
that are often seen on trucks and buses, and they seem to
be mobile. So any form of advertising media which is
mobile can be used as Outdoor media.
3) Digital billboards:
There are some other types of billboards which we are
pretty sure that you are going to love for sure. You might
have seen a proper digital billboard that has different
advertisements every single time.
This is another one of the fantastic advertisements which
tend to provide some great results to the company that is
doing the ads for sure. So, there is no doubt that this one is
worth a shot.
4) Lamp Post:
This is another type of fantastic outdoor advertisement
which is very common in some of the main areas.
Particular lamp post banners are really noticeable at night
by the streetlight. This is a typical banner style that makes
sure that people are paying attention to the poster.
So, this is another fantastic form of outdoor
advertisement that people need to try out in the best way.
5) Transit advertising:
Now, this is another form of excellent advertisement
which can target tourists, commuters, and people in the
city. These people are always using extreme types of
transport. So, that is something which they can see a lot of
times.
6) Outdoor Advertising on Bridges:
You can opt for this type of advertising for targeting
commuters, and for this, you can make a bridge banner for
busy pulling in more prospects.
7) Point of Sale Displays:
You must have noticed different products available at
the billing counters. They are also integral parts of outdoor
advertising in which, some impulsive buyers opt for those
products just by seeing them in front of their eyes while
waiting for their turn to come at the billing counter.
8) Retail Advertising:
With this kind of outdoor advertising, you will be able
to keep a customer proceeding to shop more. For this local
outdoor advertising campaign, there is no preferred place
over a shopping center to advertise the goods.
9) Outdoor Signs:
Outdoor signs are an excellent medium to spread the
word about your products and services. You can use big or
small signs, depending on the nature of your campaign.
 These signs are useful to attract attention and ensure
people remember your brand after they encounter it.

4.9 Pros of outdoor advt.:

1. Wide coverage of local market.
2. Frequency.
3. Geographic flexibility.
4. Creativity.
5. Ability to create awareness.
6. Efficiency.
7. Effectiveness.
8. Product capabilities.

4.10 Cons/Limitations of outdoor advt:

1. Waste courage.
2. Limited message courage.
3. Wear out.
4. High cost.
5. Measurement problems.
6. Image problem.

4.11 Concept of Direct mail advertizing:

Direct mail advertising can be understood as a type of
direct marketing that is channelized using a mail service for
delivering marketing materials like brochures, postcards,
catalogs, sales letters, and newsletters to the mailboxes of
the prospects.
A type of direct marketing that’s delivered physically to a
prospect’s mailbox through the United States Postal
Service or other delivery service. Postcards, flyers, and
catalogs are common examples. Email marketing is the
digital equivalent.
 4.12 Features of Direct email advt.:
1. Eye-catching graphics
2. Personalized content
3. An exciting offer
4. A compelling CTA
5. Highly targeted mailing lists
6. Flexibility in tone and format
7. Testing combinations
8. Personalization.
4.13 Advantages and Disadvantages direct mail advt.:
Advantages-
1.Direct mail advertising is the perfect medium to target an
exact or specific individual or customer base.
2.The medium can be customized and personalized
accordingly, based on your previous experiences to maximize results.
3.Considering its direct response nature, it allows you to test
and vary your approach to obtain optimal results.
4.Any and all responses can be stored to your database for
future references. This enables you to target your audience in a
better way.
5.Direct mail is the perfect tool to deliver a variety of materials
for an overall campaign promotion.
Disadvantages-
1.It goes without saying that such an approach can cost you
thousands of dollars and is more expensive than any other mass
promotion tool available out there.
2.Initially, you will have to suffer in terms of quality as the
mailing list will not be up to your expectations. There will be old
addresses and several duplicate names which will prevent you from
extending your reach. Moreover, they are expensive to update and
you may end up offending potential customers who may not want to
do business with you in the future.
3.The medium is not sophisticated as it may seem and is less
effective than other mediums.
4.If an individual opts out of your email database, you will not be
able to send new offers or content on their email address.

4.14. Forms of direct mail advt:

1. Post Cards:
It is the widest form of direct mail advertising due to its
high attention value and economy. It gets immediate attention.
Postcards are used to carry a brief message about the product.
Though economical, the message cannot be confidential.
2. Sales Letters:
It is also the most widely used form. Sales letters are sent
to induce potential customers to buy a particular product.
Their main objective is to arouse interest and create a desire
for the product.
These sales letters are speedy, economical and effective in
getting immediate action.
3. Circulars:
These contain several pages and desirable all details of a
product. These are printed on good paper wit photographs.
These are helpful in emphasizing product features.

4. Stuffers:
 It gives detailed specifications of a wide range of products.
It is a means to amplify the sales letter by providing illustrations.
5. Folders:
It is bigger than an ordinary card. It can be conveniently
folded. It is made off the heavier stock of paper or cardboard.
Thus, it can be posted without an envelope. Folders are prepared
in colors. These are attractively designed to draw the immediate
attention of potential customers.
6. Broadsides:
These are giant-sized folders. These are designed to impress
customers by their size, attractive colors, and illustrations.
They may contain the number of pages to describe the sales
story. They aim at wholesalers and retailers.
They may be displayed in retail stores.
7. Catalogs and Booklets:
These are illustrative price lists containing the price and
features of products. Selling terms are also described in catalogs.
These are sent to business buyers and to customers who enquire
about the goods.
Booklets contain helpful reference information, they tell about
products of their features. Booklets are sent to usually bulk
purchasers.
8. House Organs:
These company magazines are sent to wholesalers, retailers,
salesmen, and prospective customers free of cost.
The main object behind a house organ is to increase the sales
of the company’s goods by appealing to the customers.
 9. Package Inserts:
These are small leaflets used to encourage repeat purchases of
the allied products.
4.15 Concept of Radio advertising:
Radio advertising is a form of advertising that utilizes radio
waves to promote a product, service, or brand to a target audience.
It involves the use of radio broadcasts to communicate a message to
potential customers.
Radio advertising typically involves the creation of a radio
commercial, which is a brief audio message that communicates a
message about a product, service, or brand. Radio commercials can
take various forms, including jingles, voiceovers, and sound effects.
Radio advertising can be targeted to specific audiences by
choosing the right radio stations that cater to the desired
demographics. For example, if a company wants to target young
adults, they may choose to advertise on a radio station that plays
pop music. Overall, radio advertising can be an effective way to reach
a large audience and promote a brand, product, or service.
In this blog, we are going to discuss why radio advertising is
significant, its use, types, advantages, effectiveness, etc.
4.16 Merit of radio advt:
1. Affordability
2. Wide reach & audience targeting
3. Timely Message delivery.
4.17 Demerit of radio advt.:
1. Poor attentiveness & fragmentation.
2. Lack of visual appeal
 3. Complex national buying process
4.18 Concept of T.V./Television advt.:
Television advertising refers to the process of creating and
airing commercials on television with the aim to promote a product
or service. TV advertising is one of the most common and effective
ways to reach consumers. This is because it offers a wide reach,
frequency, and impact.
4.19 Merit & demerit of tv advertising:
4.20 Concept of Promotional advertising media:
Promotional advertisements are short-term marketing
strategies businesses use to boost the sales of a certain product or
service. Some companies may choose to advertise promotions to
boost awareness, increase sales or highlight updates of a new or
existing product.
Promotional advertising media is 1 in which promotional
methods are used for attracting customers. The object of
promotional advertising is to contract the customer @ the last point,
i.e., @ the point of purchase in order to make a last bid to persuade
him to go for the advertised goods.
Promotional advertising is quite popular these days. It is a
most powerful advertising media.
4.21 Uses/Benefits of promotional advertising:
Promotional advertising campaigns are an effective short-
term solution to quickly earn more profits. Common benefits of using
promotional advertising in your marketing efforts include:
1. Builds brand recognition: If potential customers continue
seeing product promotions, they may become more aware
of the brand. This familiarity can lead them to test out the
product at a discounted rate.
2. Leads to customer referrals: Consider offering current
customers promotions if they refer the product or service
to friends or colleagues. This can bring in impressive
customers who trust the opinions of people they know.
3. Increases customer loyalty: Regularly creating promotional
advertisements may lead customers to regularly purchase
the products and remain loyal to the brand. Consider giving
promotions to current customers to show them you care
and appreciate their business and loyalty to the brand.
4.22 Different types of promotional advt.:
There are various forms of promotional advt. The advertised
is free to chose any of them as per his convenience & requirements.
The popular this advertising form are as follows:
1. Window Display:
It is an important method of attracting the passing
customers. Under this method, the advertiser displays
articles for sale inside glass window which are seen from
the outside. That is why is also called ‘outside display’.
Such glass windows are decorated most attractively. The
prices of the articles displayed may also be attached or
tagged to them.
2. Interior Display:
The main object of interior display is to hold the
customer’s attention which has already been aroused by
the window display or by any other means. In Interior
display the articles are displayed inside the store & not
outside the store. Thus, the attention of prospects, who
enter into the store, is directed towards the articles
displayed inside the store. It is also called ‘counter
display’.
3. Showrooms:
These days prospects aren’t satisfied simply by reading
or listening to an advertisement. This is truer particularly
in case of costly articles such as cars, scooters, washing
machines, mixers, computer, furniture, & soon. Similarly,
producer’s goods of various kinds, especially of the new
type, are seldom purchased without seeing & testing the
articles itself.
4. Exhibitions & fair:
It has become important media of advertising these
days. An exhibition is a large fair where producers
producing different products display & portray their
products to dealers & consumers.
These are generally organized by group of producers,
manufacturers or associations of manufactures. These
days, these are also organized by the government.
5. Trade shows:
Trade shows are organized by respective trade
associations so as to attract dealers & consumers of a
particular product.
6. Samples, Coupons, & Premiums:
Today free distribution of samples, coupons, &
premiums etc. is considered the most popular
promotional advertising technique.
A sample is a free distribution of a product with the
intention to obtain consumers acceptance. Samples are
distributed to consumers on trial basis.
Coupon is a concession given to the customer on the
purchase of a particular item, such as 10% discount.
Premiums provide strong incentive to the prospect to
try particularly a new product of a different brand.
Samples, coupons, & premiums are also part of
novelty advertising.
 UNIT-5: Sales organization & Entrepreneurship
[PART-A]- SALES ORGANIZATION:
A.5.0 Introduction of Sales organization:
A sales organization is a department or team within a
company that is responsible for the sale of its products or
services. It can refer to the overall structure and strategy
for sales, as well as the specific individuals, roles, and
responsibilities involved in the sales process.
A.5.1 Concept of sales organization:
The sales organization is a vehicle that a selling firm
owns especially to achieve sales objectives in the best and most
profitable way. Different sales personnel are being constructed in a
group having contemporary selling skills to achieve qualitative and
quantitative sales objectives of the firm.
Sales organization structure consists of formal and
informal relations among the group of people. These people have to
cooperate with each other as said by the sales manager to achieve
set sales goals.
A.5.2 Features of sales organizations:
A.5.3 Functions of sales organizations:

A.5.4 Principles of sales organisations:

The main principles of a sales organization can be summarized
below:
1. Degree of Specialization:
The degree to which individuals perform some of the
required tasks to the exclusion of others is known as the
degree of specialization. Individuals can become experts on
certain tasks, leading to better performance for the entire
organization.
 2. Degree of Centralization and Decentralization:
One of the key decisions in sales management is related to
the degree of centralization or decentralization of the various
sales functions.
The degree to which important decisions and tasks are
performed at higher levels in the management hierarchy is
called centralization in other words, centralization is said to be
a process where the concentration of decision-making is in a
few hands or the degree of centralization and decentralization
will depend upon the amount of authority delegated to the
lowest level.
3. Span of Control:
It is the number of subordinates who are supervised by each
individual manager. Typically, this involves assigning 1-10 people to
each manager. The optimal span of control at a particular level in the
organizational hierarchy will depend on a variety of factors and two
managers with similar or identical titles may have different
responsibilities with respect to the number and type of salespeople
reporting to them.
4. Unity of objectives:
This principle states that within an organization there needs
to be a unity of objectives. An organization may have several
sales sub-organizations depending on the product and the
selling method. Every sale sub-organization has a set of
objectives that it wants to achieve for the organization.
5. Coordination:
In an organization, the sales organization structure should
provide a framework where it can easily integrate itself into
various other departments within the organization. This
ensures the timely delivery of products/ services to the
customer,
6. Parity of Authority and Responsibility:
This principle states that if an employee is given a set of
tasks to perform, he/she must be given the required level of
authority to perform those tasks.
For example, if a pre-sales executive is asked to prepare the
company’s competitive advantages presentation for the client
to present in the sales meetings, then he/she should be given
access to the knowledge management system of the
company.
Every company has a Knowledge Management system which
is the repository of all the previous projects executed
successfully by the company. Hence the authority has to be
given that is required for the task to be completed.
7. Flexibility:
This principle states that there can be many external and
internal factors that might affect organizational operations.
Hence the sales organization structure should be flexible
enough to accommodate any required changes in the future.
A.5.5 Purpose/ Objectives of sales organizations:

A.5.6 Types of sales organizations:

1) Line Sales Organization
A Line Sales Organization is one of the simplest forms where every
individual is held accountable for their actions and decisions.
It is the oldest and most basic sales organizational structure, and it
is commonly employed by smaller firms and those with a limited
number of sales personnel. This structure is often used in companies
that operate within a specific geographic area or focus on a narrow
product line. In the line organization, the chain of command flows
from top-level sales executives to their subordinates.
 Some of the key features of Line Sales Organization are-
a) Direct line of communication;
b) Clearly defined responsibility and authority;
c) Easy and quick decision-making;
d) Ideal for small businesses with a narrow product line;
e) Limited specialization.
2) Line and Staff Sales Organization
This structure combines the benefits of Line Sales and
specialized staff to support and advise.
The line and staff sales department is commonly found in
large and medium-sized firms. It employs many sales personnel and
sells a wide range of products across large geographic areas. Unlike
the line organization, the line and staff organization provides the top
sales executive with a team of specialists. These experts specialize in
dealer and distributor relations, sales analysis, organization,
personnel, planning, promotion, training, service, traffic,
warehousing, and related fields.
The key features of Line and Staff Sales Organization are-
a) Combines traditional line organization with staff specialists;
b) A clear chain of communication;
c) Specialized teams to provide input on sales strategies & tactics;
d) Flexible decision-making process;
e) Increased specialization in various areas;
f) The presence of specialized staff for advice;
g) More balanced decision-making;
h) Ideal for larger businesses with diverse product lines;
i) Improved coordination and control, etc.
3) Functional Sales Organization:
Functional Sales Organization focuses on dividing the team
based on their area of expertise.
 This represents the complete embodiment of the work
specialization principle. Within this framework, individuals,
including executives and salespeople, are assigned specific
tasks and responsibilities to carry out.
This particular sales organizational structure is designed to
optimize the performance of executives and salespeople by
assigning duties based on their individual capacities. However,
conflicts can occasionally arise when effective coordination
fails.
The key features of a Functional Sales Organization are-
a) Division of sales team members according to
expertise;
b) Improved efficiency and coordination;
c) Appropriate specialization in various areas;
d) Improved collaboration and collective decision
making;
e) Decreased chances for conflicts;
f) Increased customer satisfaction;
g) Departments based on function;
h) In-depth expertise in each function;
i) Streamlined operations;
j) Ideal for large-scale organizations;
k) Possibility of functional silos, etc.
4) Committee Sales Organization:
Committee Sales Organizational structures are generally
employed when decisions require collective wisdom and democratic
leadership by having proper sales team structures.
This sales organization structure operates without rigid
rules, but to enhance the firm’s performance and sales process, a
committee is established comprising sales executives, sales teams, or
a combination of both.
 This helps in making complicated decisions and setting goals.
This kind of setup is particularly useful when the sales team has to
work on a project or have a discussion with clients.
The key features of the Committee Sales Organization are-
a) Collective decision-making;
b) Shared responsibility;
c) Ideal for complex projects;
d) Encourages democratic leadership;
e) Potential for the slower decision-making process;
f) Possibility of ineffective delegation;
g) Lower efficiency in routine tasks, etc.
A.5.7 Merit & Demerits of types of sales organization:
A. Line & Staff organization:
B. Functional organization:
C. Line organization:
A.5.8 Department/ Structure of Sales organisations:
There are four main types of sales organizational
structures:
a) Functional Structure;
b) Geographic Structure;
c) Market-Based Structure; &
d) Product Sales Force Structure.
Each one has its own pros and cons that you should consider
before implementing any of the structures in your business.
1. Functional Structure:
Function structure refers to the sales organization structure
that focuses on specialization within the marketing team. This means
that everyone has their own purpose to fulfill within the team based
on their specialties, interests, and other factors.
Having a sales team that runs by a functional structure is more
efficient, but it does come with a plethora of problems. It may sound
great to have each person specialize in their tasks, but sales is a very
interwoven department. This means that people need to coordinate
a lot in a sales team that runs by a functional structure.
In this structure, responsibilities are divvied up according to
everyone’s place in the sales process – inside sales, account
managers, product specialists, and so on.
Advantages:
• More efficient selling activities.
Disadvantages:
• Geographic duplication;
• Customer duplication;
• Greater need for coordination.
 2. Geographic Structure:
Geographic sales structures sound like what they are. Sales
teams that run by this structure organize by location.
So, let's say that you have some clients in Atlanta, others in
Boston, and others in New York. With a geographic organizational
structure, you're likely to break your sales team between these
cities. This is also known as a ‘territorial sales force structure’, it
means that the organization assigns each sales rep to a certain
geographic area.
Advantages:
• Low cost;
• Proper territory management leads to low geographic
duplication of effort;
• Low duplication of effort with customers (unless buyers are
organizations that cross territories).
Disadvantages:
• Sales reps have a hard time developing product or market
specialization (unless the organization commits to specialized sales
forces allocated by geography);
• Territory sizing can be a challenge, resulting in uneven
revenue/opportunity across geographies.
3. Market-Based Structure:
A market-based structure, also known as a customer sales force
structure, refers to a sales team that is organized by customers or
industry. More likely, they're grouped by industry.
By placing your sales reps in a specific industry, you're giving
them a chance to specialize in that industry and the needs of the
companies within that industry. Plus, by becoming experts, your
sales reps will have a better chance to grow stronger relationships
with your current and potential clients.
This is also known as ‘customer sales force structure’, and it
means that sales reps are grouped by customer or industry.
Advantages:
• Sales reps understand the needs of their customers and build
stronger relationships;
• Management control can be strategically allocated to different
markets.
Disadvantages:
• Higher costs;
• Geographic duplication.
4. Product Sales Force Structure:
The product sales force structure focuses on the products that
clients make. This can be based on individual products or product
types. This organizational structure is the most specialized of all of
these options.
With this kind of sales organizational structure, you may find that
your sales reps are more attuned to how to sell to certain companies
based on the products they have. In fact, you'll have sales reps that
can handle one product type at once company and the same product
type at another company.
This kind of specialization is great if your company focuses on
one industry, but it can become a little much when you're bringing
multiple industries with multiple products in at once.
Sales reps can get interwoven with too many factors. This may
cause communication issues and the need for more coordination
with each, individual sales rep.
 In this alignment, the sales force’s area of responsibility is
defined by the products or product groups, ignoring geographical
lines.
Advantages:
• Sales reps develop product expertise;
• Management can guide selling efforts.
Disadvantages:
• Higher costs due to duplication of efforts within geographies and
customer accounts;
• Coordination required when more sales reps have the same
geography/accounts.
[PART-B]- ENTREPRENEURSHIP:
B.5.0 Introduction & Concept of entrepreneur:
An entrepreneur is an individual who creates a new
business, bearing most of the risks and enjoying most of the rewards.
The process of setting up a business is known as entrepreneurship.
Entrepreneurs play a key role in any economy, using the
skills and initiative necessary to anticipate needs and bring new ideas
to market. Entrepreneurship that proves to be successful in taking on
the risks of creating a startup is rewarded with profits and growth
opportunities.
B.5.1 Features of Entrepreneurship:

B.5.2 Qualities of Entrepreneurs:

For entrepreneurs to succeed at what they do, they have to
possess certain key qualities.
Every entrepreneur needs to have these qualities because
owning a business is not a day’s job.
These qualities are what make it possible for entrepreneurs to
hold firm and keep pushing towards success in the face of challenges,
mistakes, and even failure.
 Some of Qualities of Entrepreneurs are:
1. Creativity;
2. Self- motivation;
3. Confidence;
4. Resourcefulness;
5. Great communication skills;
6. Strong work ethics;
7. Entrepreneurs know when to delegate;
8. Empathy;
9. Entrepreneurs are ever ready to learn;
10. Easy going attitude;
11. Will power;
12. Entrepreneurs are smart;
13. Entrepreneurs know how to make plans;
14. Risk-taking; &
15. Professionalism.
B.5.3 Introduction of Entrepreneurship:
Entrepreneurship is the ability and readiness to develop,
organize and run a business enterprise, along with any of its
uncertainties in order to make a profit. The most prominent example
of entrepreneurship is the starting of new businesses.
B.5.4 Meaning of Entrepreneurship:
The entrepreneur is defined as someone who has the
ability and desire to establish, administer and succeed in a startup
venture along with risk entitled to it, to make profits. The best
example of entrepreneurship is the starting of a new business
venture. The entrepreneurs are often known as a source of new
ideas or innovators, and bring new ideas in the market by replacing
old with a new invention.
It can be classified into small or home business to multinational
companies. In economics, the profits that an entrepreneur makes is
with a combination of land, natural resources, labour and capital.
B.5.5 Features of Entrepreneurship: (same in B.5.6)
Not all entrepreneurs are successful; there are definite
characteristics that make entrepreneurship successful. A few of them
are mentioned below.
1. Ability to take a risk:
Starting any new venture involves a considerable
amount of failure risk. Therefore, an entrepreneur needs
to be courageous and able to evaluate and take risks,
which is an essential part of being an entrepreneur.
2. Innovation:
It should be highly innovative to generate new ideas,
start a company and earn profits out of it. Change can be
the launching of a new product that is new to the market
or a process that does the same thing but in a more
efficient and economical way.
3. Visionary and Leadership quality:
To be successful, the entrepreneur should have a
clear vision of his new venture. However, to turn the idea
into reality, a lot of resources and employees are required.
Here, leadership quality is paramount because leaders
impart and guide their employees towards the right path
of success.
4. Open-Minded:
In a business, every circumstance can be an
opportunity and used for the benefit of a company. For
example, Paytm recognized the gravity of demonetization
and acknowledged the need for online transactions would
be more, so it utilized the situation and expanded
massively during this time.
 5. Flexible:
An entrepreneur should be flexible and open to change
according to the situation. To be on the top, a
businessperson should be equipped to embrace change in
a product and service, as and when needed.
6. Know your Product:
A company owner should know the product offerings
and also be aware of the latest trend in the market. It is
essential to know if the available product or service meets
the demands of the current market, or whether it is time
to tweak it a little. Being able to be accountable and then
alter as needed is a vital part of entrepreneurship
B.5.6: Importance of Entrepreneurship: (same in B.5.5)
1. Creation of Employment- Entrepreneurship generates
employment. It provides an entry-level job, required for gaining
experience and training for unskilled workers.
2. Innovation- It is the hub of innovation that provides new
product ventures, market, technology and quality of goods, etc., and
increase the standard of living of people.
3.Impact on Society and Community Development- A
society becomes greater if the employment base is large and
diversified. It brings about changes in society and promotes facilities
like higher expenditure on education, better sanitation, fewer slums,
a higher level of homeownership. Therefore, entrepreneurship
assists the organisation towards a more stable and high quality of
community life.
4.Increase Standard of Living- Entrepreneurship helps to
improve the standard of living of a person by increasing the income.
The standard of living means, increase in the consumption of various
goods and services by a household for a particular period.
 5.Supports research and development- New products and
services need to be researched and tested before launching in the
market. Therefore, an entrepreneur also dispenses finance for
research and development with research institutions and
universities. This promotes research, general construction, and
development in the economy.
B.5.7 Classification of Entrepreneurs:
You can Classify Different Types of Entrepreneurs,
Depending on The Nature of Business, The Stages of Development
And Motivational Aspects. Let’s discuss each of them.
A) Classification Of Entrepreneurs: Nature Of Business:
In relation to the nature of businesses & business
Environments, here the various Types of Entrepreneurs:
a) Business Entrepreneur:
They come up with New Ideas for Products &
Services & Start a Venture to Pursue Those Ideas. They
can be found either in Small Business Units or Big
Enterprises. Within Large Enterprises, Individuals
Leading Important Projects are Business Entrepreneurs.
b) Corporate Entrepreneur:
They Exhibit Innovative Skills in the Organization
& Management of Corporate Undertakings. They
Develop New Business, Products & Services in an
Existing Organization. They create Opportunities for
Business Growth.
c) Service Entrepreneur:
They are focused on providing services to
Customers & Clients. They Generate profits by
Rendering Services. For Example, someone who runs
a hotel is a service Entrepreneur.
 d) Industrial Entrepreneur:
They focus on Industrial & Production Activities.
They Identify Customer needs & expectations &
Manufacture Products that meet those demands.
They’re Product-Oriented.
e) Social Entrepreneur
They focus on changing society by solving recurring
challenges that need Unique Business Solutions. They
focus on Social Issues & aren’t Profit-Oriented. An
example of this could be someone who creates an
Assisted Living Facility for Seniors.
B) Classification Of Entrepreneurs: Stages Of
Development:
According to stages of Social & Economic
Development. There are Several Types of
Entrepreneurs.
a) First Generation Entrepreneur:
They set up an Enterprise, Thanks to their
Innovative Skills, Idea & Vision. They combine various
factors of production & adopt Innovative Ideas to
Produce Products & Services that are suitable for the
market. They start a business completely on their
own.
b) Innovative Entrepreneur:
They’re also known as ‘Dynamic or Modern
Entrepreneurs’. To meet changing Industry & Market
Demands, one needs to stay updated. Innovative
Entrepreneurs look for changes & ways to respond to
those changes.
c) Inherited Entrepreneur:
They inherit a family business or gain experience
by working closely with their families. Sometimes
they Diversify & Seek New Opportunities in the family
 business. For Example, Mukesh Ambani—One of the
Most Successful Entrepreneurs of India—Grew his
Father’s Business.
C) Classification of Entrepreneurs: Motivational Aspects:
Depending on the role & motivations of an
Entrepreneur, let’s see how different types of Entrepreneurs run
their Businesses.
a) Hustler Entrepreneur:
A Hustler is someone who is a Self-Starter &
they’re willing to push their Boundaries. They start small & have the
Ultimate Goal of Growing & becoming bigger in the future. They’re
highly motivated by their Dreams; Aspirations & Develop a Laser-
Sharp focus to Concentrate on Long-Term Goals. They will try
anything to succeed & therefore, come across both setbacks &
opportunities.
b) Imitator Entrepreneur:
They are always looking to make a product or
service better. They are part innovators and part
Hustlers. They know how to make an Existing Idea
Better. This helps them gain a Competitive Edge in
the market.
c) Researcher Entrepreneur:
Despite having an Idea, Researcher
Entrepreneurs take time to gather relevant
Information and make a Strong Case for their
Product or Service. For them, Failure isn’t an
option & they’re focused on proving their idea
from every angle. They usually take a lot of time to
launch their product and make decisions because
they prioritize detailed work & deep
 understanding. They’re a stickler for rules & have a
sound plan in place.
B.5.8 Difference between Entrepreneur & Entrepreneurship:

More points……
B.5.9 Functions of entrepreneurs:
B.5.10 Functions & Scope of entrepreneurship:

B.5.11 Factors affecting Entrepreneurial growth:

We can categorize factors affecting entrepreneurial growth
into two major categories:
1. Economic Factors,
2. Non-Economic Factors.
 1.Economic Factors:
These are the economic factors affecting entrepreneurial
growth:
a) Capital;
b) Labor;
c) Raw Materials;
d) Market;
e) Infrastructure.
a) Capital:
Capital is one of the most important factors of production for
the establishment of an enterprise. An increase in capital investment
in viable projects results in an increase in profits which helps in
accelerating the process of capital formation.
b) Labor:
The easy availability of the right type of workers also affects
entrepreneurship. The quality rather than quantity of labor
influences the emergence and growth of entrepreneurship. The
problem of labor immobility can be solved by providing
infrastructural facilities including efficient transportation.
c) Raw Materials:
The necessity of raw materials hardly needs any emphasis for
establishing any industrial activity and its influence on the
emergence of entrepreneurship. In the absence of raw materials,
neither any enterprise can be established nor can an entrepreneur
emerge.
d) Market:
The role and importance of market and marketing is very
important for the growth of entrepreneurship. In a modern
competitive world, no entrepreneur can think of surviving in
 the absence of the latest knowledge about the market and
various marketing techniques.
e) Infrastructure:
The expansion of entrepreneurship presupposes properly
developed communication and transportation facilities. It not
only helps to enlarge the market but expands the horizons of
business too. Take, for instance, the establishment of the post
and telegraph system and the construction of roads and
highways in India.
2. Non-Economic Factors:
These are the non-economic factors affecting entrepreneurial
growth:
a) Education;
b) Attitude of Society;
c) Cultural Value;
d) Legal Environment; &
e) International Environment.
a) Education:
Education enables one to understand the outside world and
equips him with the basic knowledge and skills to deal with day-
to-day problems. In any society, the system of education has a
significant role to play in inculcating entrepreneurial values. In
India, the system of education prior to the 20th century was
based on religion.
b) Attitude of Society:
A related aspect to these is the attitude of the society
towards entrepreneurship. Certain societies encourage
innovations and novelties and thus approve entrepreneurs’
actions and rewards like profits. Certain others do not
tolerate changes and in such circumstances, entrepreneurship
cannot take root and grow.
 c) Cultural Value:
Motives impel men to action. Entrepreneurial growth
requires proper motives like profit-making, acquisition of
prestige, and attainment of social status. Ambitious and
talented men would take risks and innovate if these motives
were strong. The strength of these motives depends upon the
culture of the society.
d) Legal Environment:
The legal environment affects the business very substantially.
If suitable legal arrangements do not exist for safeguarding the
interests and powers of the entrepreneurs, businessmen, and other
parties related to the business, no one will like to carry out any
significant business.
e) International Environment:
The international environment also affects the system.
Presently, the waves of globalization and liberalization are flowing
throughout the world.
The international environment includes various factors, like
mutual relations between various nations, economic policies of the
various nations, availability of foreign capital, level of international
competition, business activities of multinational companies,
conditions of international peace, rules of international trade, etc.
The business institutions should manage and operate business
activities, considering these factors.
B.5.12 Scope of Entrepreneurship:
The small-scale business gives good scope for the growth
of entrepreneurial activities. An entrepreneur has excellent
opportunities and great scope in selling services rather than
producing a product. The entrepreneur can get better results if the
size of the small business is small and limited. For this reason, that
small enterprises have higher productivity, greater performance, and
low labor turnover.
1. Scopes in Industrial Sector:
Small-scale businesses involve a prominent place in the
industrial part. They have turned over 40% of the overall
industrial production in 1998. The basic intentions underlying
the development of small-scale are the increment in the supply
of produced goods, promotion of capital report, the
development of domestic entrepreneurial capacities and skills,
and the creation of more employment opportunities
This sector gives a broader scope for the potential
entrepreneur to expand his or her own business. There is an
excellent opportunity and enormous potential to use
technology-based products in the small-scale enterprise or
sector.
2. Agricultural and Associated Industrial Sector:
There is a huge scope for entrepreneurial movements in the
agricultural sector. By creating a link between agriculture and
associated industries, the rural entrepreneur can capitalize on
opportunities in areas of agriculture, processing, and
marketing.
The government has given preference to the IRDP program
and ensured the sufficient flow of credit to small and marginal
farmers through re-financing facilities and by setting up
national banks for agriculture and small development.
3. Service Sector:
The service sector has gained attention for entrepreneurs
because of its fast expansion. The service sector comprises all
kinds of business and provides opportunities to the
entrepreneurs in business such as hotels, transport, tourist
services, personal care, home services, food services,
 photography services, repairing services, electrical support, and
many others.
4. The Rural Economy:
Nowadays, the rural economy has an excellent opportunity
for an entrepreneur to start a business. They can exploit
opportunities for a venture in some shops or services.
Entrepreneurship does well in the small business sector as they
have tremendous opportunities for manufacturing and non-
manufacturing activities.
If you are looking for some inspiration on how to create a
successful small business in rural areas, here are some tips:
a) Focus on the local market- You will find it much easier to
develop your product if you focus on local markets first. For
example, if you are selling products for farmers or
gardeners, then make sure that they have access to all the
information they need about what products they should buy
and how they should use them.
b) Make sure that you have all the right equipment- It is
important that you have everything needed so that you can
run your business efficiently. This includes things like
computers and software programs that help run your
company smoothly as well as printers and scanners to make
your job easier.
5. Industrial sector:
The industrial sector is more than just manufacturing. It
includes many different types of businesses that can be started
from home or from the local area. These include:
• Manufacturing, where raw materials and parts are put
together to make finished products.
• Food production, where raw materials are grown or
raised for food and crops, then processed into ready-to-
eat foods or feed for livestock.
 • Construction, which includes building construction and
remodeling contractors as well as home builders who
build new homes.
• Services include everything from running a small business
to owning a small business to an individual contractor
doing work for a large company.
The industrial sector also includes small businesses owned by
individuals or families. These businesses may be involved in
producing their own products or providing services to other
businesses and consumers.
*There are various areas where entrepreneurs can start their
ventures such as agriculture, tourism, retailing, manufacturing
and service industries, etc. Entrepreneurs should have
knowledge in the field of agriculture to expand their businesses
in this sector.
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