SADHVI MEHROTRA

CMS, KANPUR
 Marketing is the Identification of
the NEED of the Customer and
then designing the Product
accordingly so as to best satisfy
that need.
 Substantial increase in Buying Power.
 A great variety of Goods & Services.
 Companies can have two way

communications with Customers & Prospects.

 Companies can facilitate & speed up

communication among Employees.

 Websites can provide companies with

powerful new information & Sales Channels.

 Companies can send ads, Coupons, Sample

information to Targeted customers.

 Goods Services

 Events Experiences

 Persons Places

 Properties Organizations

 Information Ideas
 CHARACTERSTICS MARKETING SELLING

1. Perspective Outside-In Inside-Out.

2. Starting Point Customer Factory

3. Objectives Customer Satisfaction Sales Volumes

4. Means 9 P’s Selling & Distribution

5. Focus Customer Product

 CHARACTERSTICS MARKETING SELLING

6. Dynamic More Dynamic Less Dynamic

7. Profits Seeks Profits by Seeks Profits by

meeting the Need of Pushing the Products
the Customer on the Buyer

8. Central Function Marketing Production

9. Conversion Needs into Products. Products into Cash

 CHARACTERSTICS PRODUCT SERVICES

1. Tangibility Tangible Intangible

2. Perishability Non-perishable Perishable

3. Seperability Seperable Non-Separable

4. Variability Less Variable More variable

 Need, Wants and Demands –

Need – State of felt Deprivation.

Wants – are the Needs that are directed

towards a specific object.

Demand – are the Wants that are backed up by

an ability to pay & willingness to buy.
 Exchange is the core concept of
Marketing; It is the process of
obtaining the desired product from
someone but by offering something in
return.

 Transaction
is the trade of Values
between two or more parties. It can be
Monetary or Barter.
 Value = Cost Benefit.
 Value is a Combination of Quality, Service &

Price called as “Customer Value Triad”.

 Satisfaction
 The Production Concept.

 The Product Concept.

 The Selling Concept.

 The Marketing Concept.

 The Societal Marketing Concept.

 Oldest of the Concepts in Business.
 It holds that Consumer will prefer products
that are widely available & inexpensive.
 Managers assume that consumers are
primarily interested in Product availability &
low prices.
 This Orientation makes sense in Developing
Countries.
 When demand for products exceeds supply
marketing must look for ways to improve
production processes.
 This Orientation holds that Consumers will
favor Products that offer most Quality,
Performance or Innovative features.
 Managers focus on making superior

products and improving them over time.

 But, sometimes Organization fail in

Marketplace because they do not bother to

study Market & Consumer in depth.
 Here, Company has to aggressively promote
& push its Products.
 Concept assumes that consumers typically

show Buying Inertia or Resistance & must be

coaxed into buying.
 It assumes that the company has a whole

battery of effective Selling & Promotional

tools to stimulate more buying.
 AIM – “to sell what they make rather than

make what the Market wants”.

Starting Focus Means End
Point
Selling & Profit by
Factory Promotion more sales
Product
 Concept was born out of the awareness that
a Business should start with the
Determination of Consumer Wants & end
with the Satisfaction of those wants.
 Concept puts the Customer at both end

beginning & end of Business cycle.

 It stipulates that any Business should be

organized around the Marketing function.

 From Production Orientation to Marketing
Orientation.
 From Product Orientation to Customer

Orientation.
 From Supply Orientation to Demand

Orientation.
 From Sales Orientation to Satisfaction

Orientation.
 From Internal Orientation to External

Orientation.
 Concept holds that the Organization’s task is
to determine the Needs, Wants & Interests of
Target markets & to deliver the desired
Satisfactions than Competitors.
 Concept holds that this all must be done in a

way that preserves or enhances the

Consumer’s & the Society’s well being.
 This Concept is more theoretical & will

undoubtedly influence future forms of

Marketing & Selling approaches.
 Society (Human
Welfare)

Consumers Company
 Theodore Levitt (a legendary professor of
marketing at Harvard).

 That companies that follow the production

concept, product concept & selling concept
inevitably become myopic or shortsighted &
end up losing their business altogether.
A Person who has indicated his or her
willingness to obtain goods & services
from a supplier with the intention of
paying for them.
 Someone who has purchased goods

&/or services for personal

consumption.
 All the Individuals & households who

buy or acquire goods & services for

personal consumption.
 All the organization that buy goods &
services for use in the production of other
products & services or for the purpose of
reselling or renting them to others at a
profit.
 Business Market contains fewer but larger
buyers.
 Business Customers are more geographically

concentrated.
 Demand in Business markets fluctuates more

& more quickly.

 Business buyers usually face more complex

buying decisions.
 The business buying process is more

formalized.
 Marketing involves all the activities from product
development to storage, transportation, sales
promotion, pricing & selling.
 Marketing is that phase of business activity
through which human wants are satisfied by
exchange of goods & services.
 Marketing management refers to analysis,
planning, implementation & control of all
marketing activities with the purpose of
achieving the objectives of business
organization.
 Marketing Environment
 Many organizations put together teams of

specialists to continuously put collect &

evaluate information, this process is known

as Environmental Scanning.
 Phillip Kotler identifies three types of changes in
the Macro environment:-
1. Fads – A fad is an unpredictable, short lived
change that has no social, economic or political
significance. Ex. Pokémon. Fads are short term
commercial success & are extremely
unpredictable.
2. Trends – they are more predictable & durable
changes, as they reveal the shape of the future.
Ex:- Art of living programs, Astha or products
like hair color, anti ageing.
3. Mega Trends – they are identified as Socio-economic,

political & technological changes that are slow to form, but

more in place, the influence lasts for a long time. Ex.

Global Lifestyles.

Mega trends have far reaching impact on every aspect of

their businesses, marketers need to pay close attention.

Our mega trend for the last several years is Globalization.

 Demands:-
1. No Demand (uninterested).
2. Latent Demand (hidden).
3. Declining Demand (Saturation).
4. Irregular Demand (Seasonal).
5. Full Demand (Maintain).
6. Negative Demand (Dislike).
 Includes:-

 Demographic
 Socio Cultural
 Legal
 Economic
 Political
 Technological
 Natural
 It includes:-

 Population (Male/Female ratios & age

distribution)
 Ethnic groups (Tribes,Caste,Religion)
 Literacy Ratios.
 Households (Single & Joint Families)
 Cultures, Traditions, Beliefs, Values & Lifestyles
of the people in the given society constitute this
environment. This element decides what people
will consume & how they will buy.
 Culture has two elements – Religion & Language.
 Social Class – It is determined by income,
occupation, location of residence of its members
etc.
 Businesses have to understand the

implications of all legal provisions relating to

their Business.
 Factors are:-
1. General Economic Conditions.
2. Economic conditions of different segments of
population; their disposable income; their
purchasing power.
3. Rate of growth of economy & each sector:
Agriculture, industry, consumer goods, import &
export.
 Economic Environment is a by-product of

political environment.

 Development of political front keeps affecting the

economy all time.

 Industrial growth depends on political

environment.
 For Business firms, Technology affects not

only its final product but also its raw

materials; processes & operations as well as

its customer segments.

 Ecological Balance
 Pollution
 Ex:- the campaign against Coca-cola by the local
community in Kerala, alleging the Environmental
deterioration & shortage of drinking water in the
vicinity of the plant, is an example of increasing
environment consciousness.
 Includes:

 1. Market/Demand.
 2. Consumer.
 3. Industry & Competition.
 4. Media
 5. Supplier related factors.
 Organizations survive on the basis of meeting
the needs, wants & providing benefits for
their customers.
 Failure to do so will result in a failed business
strategy.
 Employing the correct staff & keeping these
staff motivated is an essential part of the
strategic planning process of an organization.
 Training & Development plays an essential
role particular in service sector marketing in
order to gain a competitive edge.
 This is clearly apparent in the airline industry.
 Increase in raw materials prices will have a
knock out affect on the marketing mix
strategy of an organization. Prices may be
forced up as a result. Closer supplier
relationship is one way of ensuring
competitive & quality products for an
organization.
 As organization require greater inward
investment for growth they face increasing
pressure to move from private ownership to
public. However this movement unleashes
pressure on the strategy of organizations.
 Positive or adverse media attention on an
organizations product or service can in some
cases make or break an organization.
 Consumer programmes with a wider and
more direct audience can also have a very
powerful and positive impact, forcing
organizations to change their tactics.
 What benefit can the organization offer which
is better than their competitors.
 Can they sustain this differentiation over a
period of time from their competitors
 Competitor analysis and monitoring is crucial
if an organization is to maintain its position
within the market.
 Marketing Mix is defined as the set of Marketing
tools the firms uses to pursue its Marketing
Objectives. McCarthy classified these tools into
four broad groups.
 The marketing mix principles are controllable
variables which have to be carefully managed and
must meet the needs of the defined target group.
 All elements of the mix are Linked and must
support each other.
 Product

 Price

 Place

 Promotion
 People

 Process

 Physical evidence

 Programming

 Packaging
 Marketing
Mix

Target Place
PRODUCT Market •Channels
• Product
PRICE PROMOTION •Coverage
Variety •Assortments
•Quality • List Price •Sales
•Discounts Promotion •Location
•Design
•Allowances •Advertising •Inventory
•Features
•Payment •Sales Force •Transport
•Brand name
•Packaging Period •Public
•Sizes •Credit Relations
•Services Terms •Direct
•Warranties Marketing
 “PRODUCT” is for the Marketer is “Consumer
Needs & Wants” for consumers;
 “PRICE” is for the Marketer is “Cost to
Consumers”.
 “PROMOTION” is for Marketer is “Communication”
is for Customer.
 “PLACE” is for Marketer is “Convenience” for
Customers
 Product is the sum total of physical &
psychological satisfaction it provides to the
buyer.
 Ex:- Car
 The product mix is the composite of products
offered for sale by the firm, over period of
time.
1. Product Line & Product Range.
2. Product Design.
3. Product Package.
4. Product Quality.
5. Product Labeling.
6. Product Branding.
7. After Sales Services & Guarantees.
 Product line – it refers to a group of closely related products. They satisfy needs

of a particular nature. Same consumer groups purchase them & are marketed to

the same types of channels.

 For ex:- HLL products –

1. Bath Soaps:- Dove, liril, rexona etc.

2. Fabric Wash:- Rin, Surf.

3. Beverages:- Bru, Taj Mahal.

Length of the Product line – it is decided by the number of items/brands in the line.

Depth of the Product line – the total number of items under each brands in the line.
 Product range – it is the depth of the specialization in terms of varieties
based on consumer pockets & functional requirements.
 Ex:- Mc Donald’s
a. Burgers:- Mc aloo tikki, chicken mcgrill.
b. Wraps:- Paneer salsa, Chicken mexican
c. Curries:- Mc curry veg, nonveg
d. Fries:- small, medium
Length – 8
Width – 4
Depth – 2.
 Design is the major selling feature in almost all the
Consumer goods.
 Product design is influenced by:-
1. External Appearance.
2. Construction
3. Production Capacity
4. Available capital
5. Relationship to other products
6. Service requirements.
 Package is the container or the wrapper used to house the
product.
 A good package has the pride of place in merchandising
because it protects the product, provides convenience to
the consumers, increases economy & communicates.
 An attractive package in a self service store helps
consumers to identify the product, builds consumer
confidence, describe merits & limits of products &
encourages impulsive buying.
 Product Quality standards are based on factors
like color, texture, flavor, weight, finish,
appearance, size, shape, moisture & other
physical features depending on the nature of the
product.
 Product quality depends on proper design,
engineering, choice of materials, manufacturing
processes, workmanship & packaging.
 A product label may be either descriptive,
informative, grade designating or a combination of
these.
 Ex:- Can of “Rasgullas”
Descriptive – it describes the contents of the package
or the ingredients of the product.
Size, weight, number, syrup etc.
Informative – how to use the product & how it is made.
Grade – ISI standard mark.
 A Brand is a symbol, a mark, a name, a
communication which brings about an identity of
a given product.
 A brand is a product image, a quality, a value, a
personality.
 A good brand name is one which is easy to
remember, pronounce, or describe the product or
its use.
 The Basic variables are :-

1. Transportation

2. Warehousing

3. Inventory level

4. Channel of Distribution
 A selection is to be made of the most efficient, economical,
rapid, & dependable mode of Transport.
 The fact is that the transport is creating place utility that
widens market & marketability for the products of the firm.
 The transportation policy – its choice is influenced by at
least seven factors namely consumer demand, advertising,
plant location, profit, warehouse facilities, competition &
product value.
 Warehousing has its own place in distribution of goods that
creates time utility by adjusting supply & demand, preserving or
conditioning the product & obtaining more favorable demand &
market price.
 Today, storage involves four functions in distributing the goods
namely;
1. Receiving;
2. Actually receiving & checking the unloaded incoming goods;
3. Transfer to warehouses.
4. Shipping.
 Merchandising is responsible not only for what to

make available but also how much to produce.

 Sufficient inventory must be on hand.

 Amount of inventory involves determining the

variety of products, models, sizes, types or colors

of each product to manufacture.

 The Manufacturer should take in account the factors
such as:-
1. The type of product.
2. In the nature & extent of market.
3. The channels employed by the competitors.
4. The merits & demerits of channel of distribution to
the manufacturer
5. The potential volume, cost & profit derived in case of
each alternative channel.
 Basic price variables:-
1. The pricing policies & strategies.
2. The terms of credit.
3. The terms of delivery.
4. Margin.
 These are the guidelines and the frames

within which management administers prices

so to match them to the market needs.

 These policies involve price variations,

geographical price policies.

 The Business houses grants credit to the
wholesalers, retailers, customers.
 Customers in terms of installment.
 The policies regarding credit are to be framed
depending on the nature of the product, its
marketability, class of customers, competitor’s
terms & consumer credit facilities made available by
banking & other financial units.
 Delivery of the goods to the dealer,
middlemen & customers is also of vital
importance.
 Clear cut policies are to be made regarding
the terms of delivery as to quantity, time &
place of delivery & the conditions of valid
delivery.
 Over here, it refers to the difference between

the final price paid by the consumers & the

total cost incurred in making available to him

the product or service.

The variables are:-
1. Personal Selling.
2. Advertising.

3. Sales Promotion.
4. Trade fairs & exhibition.
5. Public Relations.
1. It provides a valuable guide for resource
allocation.
2. It helps to allocate the responsibilities.
3. It provides an opportunity to analyze cost
benefit elasticities.
4. It facilitates communication process.
 “It is the analysis, planning, implementation &
control of programmes designed to bring about
desired exchanges with the larger audiences for
the purpose of personal or mutual gain. It relies
heavily on the adaptation & coordination of
product-price-promotion & place for achieving
effective response.” – Prof. Philip Kotler
 The task of Marketing management is to combine
these elements into an effective operating system
and to arrange the system in its interaction with a
dynamic environment.
 These functions are:-

1. Assessing the Market Opportunities.

2. Planning the marketing activities.
3. Providing effective marketing organization.
4. Actuating by leadership.
5. Motivating the Human-side.
6. Evaluating and Adjusting marketing efforts.
 Significance of this function is that market
opportunities are changing and marketing
management must develop creative strategies
to cultivate these opportunities.
 The firm should be ready & willing to accept
& shoulder the risks of the possible venture.
 Marketing planning is used to develop &
define objectives & then derive strategies &
design programmes that enable the firm to
achieve these set aims.
 Planning provides the basis for marketing
strategy to make planning central to the
Marketing concept, both in short & long run.
 The innovative & effective nature of marketing
activity places heavy demands on the marketing
organization.
 Marketing is an accepted system, the role of the
organization is felt more.
 NPD & the growing importance of international
marketing are some of the marketing changes that
have raised organizational problems for the unit.
 Thus, the organization provided is to be
accommodative in the light of the changing
concept of marketing.
 Diverse changes are influencing the patterns
& styles of leadership required for effective
performance of marketing functions.
 Development of newer patterns of leadership
are testing the traditional view of
management methods & policies.
 Free flow of goods will be there only when the
people involved in the process are motivated.
 New ways of encouragement or stimulation are
to be introduced where the individual unfolds
his talents & initiative to contribute the very
best of his.
 The question of today’s management is not to
create a suitable man for the management but
to keep him longer as loyal & humble
employee.
 To take advantage of profitable marketing
opportunities, the marketing manager must
continually evaluate & adjust the marketing
efforts.
 The major challenge confronting marketing

management is that of creative adaptation to

change.
 To meet all the challenges, the firm should have

a complete appraisal of its marketing operations

through marketing audit, research & other
control devices.
 A Manager is a professional whose primary
responsibility is to carry out the management
process.
 A manager is one who particularly plans, makes the
decision, leads & control human, financial & physical
& information resources in the EFFICIENT &
EFFECTIVE pursuit of specified Organizational goals.
1. He provides clear directions.
2. He encourage open communication.
3. He coaches & supports people.
4. He provides objective recognition.
5. He establishes ongoing controls.
6. He selects the right people to staff the
organization.
7. He understands the financial implications of
decisions.
8. He encourages innovation & new ideas.
9. He gives Subordinates Clear-cut decisions when
they are needed.
10. He demonstrates consistently a high level of
integrity.
 A Marketing Organization is a framework for
planning and making decisions in the key
marketing activities that are essential to
marketing success.
 Marketing organization is the vehicle for

making decisions on all marketing areas such

as product, price, place & promotion. It is a
group of marketing persons working together
towards the attainment of certain common
objectives.
1. Lack of Spontaneity.
2. Over-riding personal goals.
3. The nature of Organizational goals.
4. Defining official relations.
5. Ensuring functional performance.
6. Optimizing the managerial inputs.
7. Encouraging newness.
 Prof. Harold Stieglitz of New york states the
following six logical steps in the planning process:-
1. Determine the objectives.

2. Analyze the existing organization.

3. Formulate long range target organization.

4. Determine the method of change.

5. Prepare the phase plans.

6. Implement the plan.

 Information consists of evaluated data, data
being symbols, usually numbers, used to
represent things.
 Information is any perceived or recorded fact,

opinion or thought.
 For example, a sequence of six digit numbers

456789 represents data.

 Data becomes information as it has meaning

& implications.
 The nature of information needed to manage
the marketing functions of an enterprise is
unique, because of its dynamism & diversity.
 The marketing manager is faced with a vast

array of data of differing varieties, forms &

degree of credibility.
 Marketing information includes all the facts,

opinions, estimates & other evaluated data

used in making decisions which have far
reaching effect on the marketing unit.
 MIS is an organized set of procedures,

information handling, routines & reporting

techniques designed to provide information

required for making marketing decisions.

- Prof. Cundiff, Still & Govani..

 MIS is an internal arrangement designed to
support management decision making & action.
 MIS system provides management with:-

a. Current or conditional future states of the

market environment.
b. The Market responses to company &/or
competitor actions.
 It collects, sort outs, classifies, analysis &

evaluates the data & stores for using for

decision making in the future.
1. It is a unified & centralized system.
2. It is a decision supporting system.
3. It is compatible with the organization.
4. It is economical.
5. It is need based & use oriented.
6. It is fast in communication.
7. It is future oriented.