The basic principles of sound marketing are:

1. Marketing must provide a means of

classifying, assessing and integrating
information relevant to a business.
2. It must provide a sound base for thinking
about and studying business problems and
provide methods to draw correct
conclusions which form basis for action.

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The five basic principles of sound marketing are:
3. Marketing must be able to explain, predict
and control the process it employs.
4. Marketing must use analytical methods such
as O.R., Statistics, Computer Technology, etc.,
to solve its problems.
5. Marketing should allow the derivation of a
number of its principles adaptable to any
particular business.

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(i) To give direction and purpose to the
marketing division as a whole as well as to its
various departments.
(ii) To place present activities in perspective.
(iii) To discipline various future activities.
(iv) To place tactical plans correctly in the
strategic setting.
(v) To set growth targets.
(vi) To establish the organization & the methods
which will be required.
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Concept
1. The marketing management concept, which is
a break through in the management thinking,
by its very nature implies a Systems Approach
to the management of marketing effort.
2. Marketing management requires a recognition
of the interrelations and interconnections
between marketing and other business
elements.

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Concept

3. Marketing management involves the

integration of all the components of the
marketing programmes into a coordinated
marketing mix.
It demands the establishment of a
communications network and linkages
between the various functionaries and
activities necessary for the
accomplishment of marketing missions.
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Concept
4. Marketing management concerns itself
with the flow of information and resources
through a firm to the market place. Even the
implementation of the marketing concept
requires the grouping of marketing activities
and the designation of a top-level executive
to integrate both authority and
responsibility.

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5. Marketing management is
historically identified with the
specialized job of dealing
with the customer market for
the end products or services
of the company.
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Marketing Function is, "an act or
Operation or service by which
Original product and the final
consumer are linked together."
Sometimes it may not be possible to
divide the whole marketing process
into a few functions.
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The broad functions of Marketing Management :
1. Merchandising Functions.
2. Physical Distribution Functions.
3. Facilitating Functions.
4. Sales Forecasting
5. Sales promotion,
6. Handling of inquiries & orders from
customers,
7. Packing, &
8. Servicing

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1. Merchandising Functions. The process of the passing of
goods into the customer's hands is called the function of
exchange.
This process can be divided into buying & assembling &
selling.
(a) Buying and Assembling. Buying is the first step in the
process of marketing.
A Manufacturer has to buy raw materials for production;
A Wholesaler has to buy goods to sell them to the retailer;
A Retailer has to buy goods to be sold to the consumer.
Buying involves transfer of ownership of goods from seller to the
buyer.

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(b) Selling is important from the point of view of the seller
as well as the consumer as the title to the goods is
transferred from seller to buyer only through selling.
The profit making object of a business concern is achieved
only through the sale of goods.
After Industrial Revolution and increasing use of
machinery, mass production has become possible which
in its turn requires mass selling of goods.
This function involves creation of demand, market
research, selection of channel for distribution etc.

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Assembling means creation & maintenance of the
stock of goods, purchased from different sources
The dealer or middleman purchases the goods from
more than one seller.
The goods have to be collected & assembled at one
place.
This buying & assembling are two distinct processes.
Both these processes involve related elements such as
kind, quality, price, date of delivery & other terms &
conditions.
All these require specialized knowledge on the of the
buyers.

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2. Physical Distribution System. This function relates to
the process of transporting the goods from the place of
seller to the place of buyer and includes two main
functions :
(a) Transportation, (b) Storage & Warehousing

(a) Transportation. Marketing system requires an

economical and effective transportation system.
A good system of transportation increases the value of
goods by the creation of place utility.
The opening of new markets has been possible by the
quick development of transportation & communication.
It has resulted in the expansion of markets, regular supply
at lower price & improved services to the consumers.

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(b) Storage and Warehousing.
Warehouses can be maintained at central
places from where the distribution can be
made according to the needs of the
consumers.
Storage tends to adjust the 'supply to
demand of the product & also holds the
price line.
Thus storage can be regarded as a function
of equalization. It creates time and place
utilities.
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(b) Storage and Warehousing.
 When production is seasonal but consumption is
perennial or when production is continuous but
consumption is seasonal, storage becomes
necessary.
 Storage involves holding and preserving of
goods between the time of their production & the
time of their consumption.
It facilitates a steady flow of commodities in the
market.
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3. Facilitating Functions. These functions make the
marketing process easy and include financing, risk-
bearing, standardization, pricing, advertising, sales
promotion & market information, etc.
(a) Financing is very difficult to carry on marketing
activities smoothly without the availability of adequate
and cheap finance.
Commercial Banks, Cooperative Credit Societies, &
Government Agencies manage for short term finance,
medium term finance, and long term finance to
facilitate marketing.
Trade credit is also one of the important sources of
finance.

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(b) Standardization has now been accepted as an
ethical basis of marketing.
 A standard is a measure that is generally
recognized as a model for comparison.
 Standards are determined on the basis of colour,
weight, quality, and other factors of a product.
 It facilitates purchase and sale of goods.
 Goods are purchased by brand name.
 Standardisation will relieve buyers from
examining the product in terms of contents,
quality, weight, size etc.
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(c) Market Information (Research).Importance of marketing
information has been recognized with the extent of markets &
mass production.
 Decisions on marketing are based on information regarding
market conditions.
 A number of problems may be solved by useful interpretation
of available data.
 On the basis of information, the seller comes to know where
and when to sell, at what price he should sell, who are the
purchasers & competitors of goods, & what are the prospects
of the goods etc.
 Marketing information & its analysis led to marketing research
which has now become an independent branch of marketing.

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(d) Risk-bearing. Marketing of goods involves
innumerable risks due to theft, deterioration
accidents, etc.
 The most important factor responsible for the risk
is fluctuation in prices.
 The other factors may be change in fashion,
competition in the market, change in habits of the
consumers, natural calamities, etc.
 Businessmen have to foresee the business risks and
take concrete steps to avoid such risks like
insurance and hedging.
 Still there are risks which are to be borne by the
businessmen.
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(e) Pricing is also an important function which is
closely allude to selling.
 Price policy of the concern directly affects the
profit element and therefore, its successful
functioning.
 In determining the price policy, several factors
are to be borne in mind such as, cost of the
product, competitor’s, prices, marketing
policies, government policy or customary or
convenient prices etc.
 An analytical study of the functions of
marketing makes it clear that marketing is a very
wide term and includes all activities from the
very beginning to the end i.e., satisfaction of
wants of the ultimate consumers.
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f). Advertising is an important element of the
marketing communications mix.
Put simply, advertising directs a message at
large numbers of people with a single
communication.
It is a mass medium.
Advertising has a number of benefits for the
advertiser.
The advertiser has control over the message.
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f). Advertising The advert and its message, to an
extent, would be designed to the specifications of
the advertiser.
So the advertiser can focus its message at a huge
number of potential consumers in a single hit, at a
relatively low cost per head.
Advertising is quick relative to other elements of the
marketing communications mix (for example
personal selling, where an entire sales force would
need to be briefed - or even recruited).
Therefore an advertiser has the opportunity to
communicate with all (or many of) its target
audience simultaneously.
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 ADVERTISING MEDIA
New Media
Outdoor Internet –
New Media - Mobile websites and
(Posters or
devices search engines
transport)

Newspaper
s (Local
Television Magazines
and
National)

Radio Cinema
Others

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f). Advertising Planning for advertising
 Advertising agencies and their clients plan for advertising. Any plan
should address the following stages:
1. Who is the potential TARGET AUDIENCE of the
advert?
2. WHAT do I wish to communicate to this target audience?
3. Why is this message so IMPORTANT to them?
4. What is the BEST MEDIUM for this message to take (see
some of the possible media above)?
5. What would be the most appropriate TIMING?
6. What RESOURCES will the advertising campaign need?
7. How do we CONTROL our advertising and monitor
success?

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4.Sales forecasting:
According to Allen, “Forecasting is a systematic
attempt to probe the future by inference from
known facts."
Henry Fayol, "To foresee in this context means
both to assess the future and make a provision
for it, that is forecasting is itself action already."
Philip Kotler, "The Company Sales forecast is the
expected level of Company sales based on a
chosen marketing plan and, assumed
environmental condition.”
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4.Sales forecasting:
According to American Marketing
Association sales forecasting is, "an estimate
of sales in dollors or physical units for a
specified future period under a proposed
marketing plan or programme & under an
assumed set of economic and other forces
outside the unit for which the forecast is
made. The forecast may be for a specified
item of merchandise or for an entire line."

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4. Sales forecasting:
" Anderson says, "A forecast is nothing more
than an estimate of a future condition.”
C.E. Sultan defines it, "Business forecasting is
the calculation of probable events to provide
against the future. It, therefore, involves a
look ahead in business and idea of
predetermination of events and then financial
implications as in the case of budgeting."

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" Cundiff and Still defined sales
forecasting in these word: "Sales
forecast is an estimate of sales during
a specified future period, which
estimate is tied to a proposed
marketing plan and which assumes a
particular set of uncontrollable and
competitive forces.”
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4. Sales forecasting:
A sales forecast is an estimate of sales of a firm
that would take place during a particular period
in future.
The estimate can be in terms of value and/or
volume.
The forecast may be for a particular product or
brand or for the entire range of products of the
company.
The forecast may be for a particular season or
period.
It may also be for a particular territory of the
market or for the entire market area.
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 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.

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 Make the service fast and reliable. Respond to
queries, inquiries & order - immediately or
arrange to call the customer back if needed.
Use an "escalation procedure“ to deal with
complaints that cannot be resolved within
agreed time frames. Follow up to make sure
the customer is satisfied with the response.

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 The wrapping material around a consumer
item that serves to contain, identify,
describe, protect, display, promote and
otherwise make the product marketable and
keep it clean.

 Packaging is more than just your product's

pretty face.

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 understanding the needs and desires of the
customers and proactively meeting those
needs.

 Excellent customer servicing is essential to

maintaining strong relationship.

 Understanding how to excel in this servicing

can help you retain business.
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A proper sales forecast requires the
analysis of -
(a) External environment that affects
sales, such as competition,government
policies, technological developments,
etc.
(b) Internal environment such as
company resources, product quality,
advertising budget, etc 37
MANAGERIAL
FUNCTIONS
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A marketing manager needs to undertake
managerial functions in order to conduct the
functional areas of marketing in a systematic
manner.
The various managerial functions of marketing
management are as follows:
1.Planning:
2.Organising:
3.Staffing:
4.Directing:
5.Controlling:
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1. Planning: It refers to deciding in
advance about future course of action.
The marketing manager need to plan in
respect of product mix, promotion-mix,
distribution-mix, and pricing of the
products.
Proper planning helps to understand
strengths and weaknesses of the firm
and to identify the opportunities and
threats to the firm.
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2.Organising: After identifying goals, and
framing plans, the marketing manager
need to organize for the marketing
activities.
He makes arrangement of physical and
human resources which are required to
undertake marketing activities.
He must coordinate the efforts of the
various people working for the
marketing activities.
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3. Staffing: Staffing is an important
aspect of organising.
Right people need to be selected for
the right marketing jobs.
There is a need to train the marketing
people.
Those who perform well need to be
promoted, and if required, people
need to be transferred.
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4. Directing: Directing involves
giving orders and instructions to
the subordinates.
It also involves motivating and
leading the people working in
the marketing department.

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5. Controlling: The marketing
manager need to take control
measures, if required.
The marketing manager measures
actual marketing performance, and
then compares with the targeted or
planned performance.
If there are deviations, there is a need
to take corrective steps.

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