B.

com LLB III Semester

Course-I

MARKETING AND SERVICES

MANAGEMENT
UNIT-1
INTRODUCTION TO MARKETING - Meaning and
definition - Goals - Concepts of Marketing -
Approaches to Marketing - Functions of
Marketing, Recent Trends in Marketing - E-
business - Tele-marketing - M-Business - Green
Marketing - Retailing, Relationship Marketing -
Customer Relationship Management
UNIT- 2 MARKETING ENVIRONMENT
Meaning -Demographic - Economic - Natural -
Technological - Political - legal - Socio cultural
environment. Market Segmentation and Consumer
Behavior - Meaning & Definition - Bases of Market
Segmentation - Consumer Behavior - Factors
influencing Consumer Behavior
UNIT - 3: MARKETING MIX
Meaning PRODUCT - product mix, product line -
product life cycle - product planning - new product
development - branding - packing and packaging.
PRICING - factors influencing pricing, methods of
pricing (only Meaning), and pricing policy –
PHYSICAL DISTRIBUTION, Meaning, factors affecting
channels, types of marketing channels, PROMOTION -
Meaning and significance of promotion - personal
selling and advertising
UNIT - 4: INTRODUCTION TO SERVICES
MANAGEMENT -
Meaning of services - characteristics of services -
classification of services - marketing mix in
service industry - growth of service sector in
India. Service processes - Designing the service
process, service blueprint - back office & front
office process.
UNIT - 5: SERVICE SECTOR MANAGEMENT -
Tourism and Travel Services - concept, nature,
significance and marketing. Health Care services
- concept, nature, significance and marketing.
Educational services - concept, nature,
significance and marketing.
 What is Marketing
Marketing is about identifying and meeting
human and social needs.

Google
IKEA
When Google recognised that people needed to
more effectively and efficiently access
information on the Internet, it created a
powerful search engine that organised and
prioritised queries.
 When IKEA noticed that people wanted good
furnishings at substantially low prices, it created
knockdown furniture.

These two firms demonstrated marketing savvy

and turned a private or social need into a
profitable business opportunity.
 SELLING
• It begins after production and ends with the
sale.
• It focuses on seller’s needs.
• It has short-term perspective.
• It is a routine day to day physical process.
• Product comes first, then customers.
• Its scope is narrower as compared to
marketing.
 MARKETING
• Begins before sale and continues after sale.
• Focuses on consumer needs.
• It has long term perspective aiming for growth
and stability.
• It is a philosophy of business.
• Customer comes first, then product.
• Wider scope.
 Market
• The term Market is derived from the Latin word
MERCATUS. Defined in many ways it means -
merchandise, wares, place of business.

• According to Philip Kotler " A market consists of

all the potential Customers showing a particular
need or want who might be willing and able to
engage in exchange to satisfy the need or want.
A market is an area for potential exchanges. ---Philip Kotler
 4 Ps of Marketing Mix
Combination of product offerings used to reach a target market
 Marketing
American Marketing Association (AMA)
"Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large. "
 Marketing
American Marketing Association (AMA)
"Marketing is the activity, set of institutions, and processes for
creating,
communicating,
delivering, and
exchanging offerings
that have value for
customers,
clients,
partners, and
society at large. "
• The cumulative function of marketing is
to communicate, deliver and create value to the
consumer.
• Marketing - the act of directing needs satisfying
products, goods and services from a producer to a
consumer through a process of anticipating and
reacting to consumer or customer needs.

• a philosophy whose main focus is providing

customer satisfaction.
• Dr. Philip Kotler defines marketing as “the
science and art of exploring, creating and
delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled
needs and desires. It defines, measures and
quantifies the size of the identified market and
the profit potential. It pinpoints which segments
the company is capable of serving best and it
designs and promotes the appropriate products
and services.”
Marketing Process
• Seller
• Buyer
• Customer
• Consumer
• Prospect
• Needs
• Wants
• Demand
 Nature of Marketing
Marketing is "A societal process by which individuals
and groups obtain what they need and want through
creating, offering, and freely exchanging products
and services of value with others.“ Kotler (2000)
"Marketing is the combination of activities designed
to produce profit through ascertaining, creating,
stimulating, and satisfying the needs and/or wants of
a selected segment of the market.“
Eldridge (1970) -
Marketing is an Economic Function
Marketing embraces all the business activities
involved in getting goods and services, from the
hands of producers into the hands of final
consumers. The business steps through which
goods progress on their way to final consumers
is the concern of marketing.
• Marketing is a management process.
Marketing as a management process employs
all management functions to ensure that the
aims and objectives of organisations are
achieved efficiently. According to motivational
theorist Henri Fayol, management consists of
five functions i.e. planning, organising,
staffing, directing, & controlling
• Marketing begins and ends with customer
Marketing management deals with all the activities
related to the marketing of goods and services to
satisfy the consumer’s wants.
It assumes that an organisation can achieve its
objective of maximisation of profit by identifying the
needs of its present and prospective buyers and
satisfying them in an effective way. Towards this end
all activities of marketing should revolve around
customer.
• Marketing is a legal process by which
ownership transfers
Marketing is the legal process by which ownership
or title of the goods is transferred from the seller
to the buyer and buyer becomes the owner.

• Marketing is a process of exchange

Marketing is a process of exchange of goods and
services as also the exchange of marketing
information between buyers and sellers
• Marketing is a managerial function
Here the emphasis is on how the individual
organisation processes marketing and develops
the strategic dimensions of marketing activities.
Marketing is the combination of activities
designed to produce profit through
ascertaining , creating, stimulating, and
satisfying the needs and wants of consumers.
• Marketing is the guiding element of business
Modern marketing is the integration of various
activities involved in the marketing process.
Today marketing is a function directed towards
the economic development of the country.
• Marketing is a philosophy based on
consumer orientation and satisfaction
Marketing is a philosophy assumes business
exists to satisfy human needs. Hence, business
should identify the needs of the people and
produce goods and services that satisfies the
needs of the people – marketing activities are
consumer oriented
• Marketing is a Social Process
Marketing is the delivery of a standard of living to society.
According to Cunningham and Cunningham (1981) societal
marketing performs three essential functions:-
- Knowing and understanding the consumer's changing
needs and wants;
- Efficiently and effectively managing the supply and demand
of products and services; and
- Efficient provision of distribution and payment processing
systems.
 Approaches to Marketing
• Product or Commodity Approach
• Institutional Approach
• Functional Approach
• Management Approach
• System Approach
• Societal Approach
• Legal Approach
• Economic Approach
Product or Commodity Approach
Focus is on Commodity / product.
The flow of a commodity and its movement from the
original producer to the ultimate customer is studied.
Also a detailed study will be undertaken with regard
nature of the product, brand selection,
the middlemen in the market, the source of supply,
the pricing pattern, the kind of promotional
tool used, packing,
Institutional Approach
Focus is on the institutions , entities associated
with marketing during the movement of
distribution of goods – wholesalers, retailers,
transport undertakings, and other institutions.
Focus is on how these entities work together to
form a complete marketing system.
Functional Approach
Here the emphasis is on each of the functions of
marketing.
Functions like selling, buying, assembling,,
transport,, grading, storage and warehousing,
standardization and all other functions will be
analyzed in detail.
Management Approach
Focus on the decision making process.
This approach is mainly concerned with how
managers handle specific problems and
situations. It aims through evaluation of current
market practices to achieve specific marketing
objectives.
System Approach
This approach provides the best model for
marketing activity. It places emphasis on the
inputs to the system and the outputs produced.
It assists in the determination of marketing and
corporate goals, and the development of
marketing programs and the total marketing
mix.
Product planning, pricing, promotion and
distribution are the sub systems of marketing
system. Each of these is independent but each
affects the system. The uniqueness of the sub-
systems and their effect on the system get focus
under systems approach.
• Societal Approach
The marketing process is regarded as a means by
which society meets its own consumption
needs. Therefore, attention is paid to ecological
factors (sociological, cultural, legal etc.) and
marketing decisions and their impact on the
society’s the society’s well-being.
• Legal Approach
This approach emphasizes on the legal transfer of
ownership of goods to the buyer: It explains the
regulatory aspect of marketing.
It highlights the various legislations in force to
support marketing system - The Sale of Goods Act,
The Consumer Protection Act, The Essential
Commodities Act, Prevention of Food Adulteration
Act, The Monopolies and Restrictive Trade Practices
Act (MRTP) are some of the laws concerned with
marketing..
Economic Approach

This approach deals with market forces - supply,

demand and price, market behavior & types of
markets.
 Functions of marketing
• Marketing Research
• Product planning & Development
• Financing
• Risk taking
• Buying and Assembling
• Packaging
• Standardization and Grading
• Branding
• Pricing the product
• Promotion of the product
• Distribution
• Selling
• Storage and Warehousing
• Transportation
• Marketing Research
Satisfying the customer’s needs and wants is
critical to any business’s survival. Business needs to
be familiar with the customer’s needs in the first
place to meet their expectations.
For this, market research needs to be conducted to
gather information about the target consumers’
preferences.
Marketing research is defined as any technique
or a set of practices that companies use to
collect information to understand their target
market better. Marketing research is used to
determine what the customers want, and
develop suitable marketing strategies and how
they react to products or features of a product.
• Product planning & Development
Includes designing and developing products that will
satisfy consumer needs. Cost and durability are other
factors that must be considered while designing a product.
Product Development is a continuous process. Even after
the product has reached the market, the producer needs
to develop it regularly to keep it up-to-date with the needs
of the consumers.
Finance
Finance is very essential for the smooth conduct
of marketing function. At every stage, it is very
important to have adequate and cheap finance.
Finance is made available through loans and
advances from banks and financial institutions.
• Risk bearing
Risk is inherent in business. In marketing there arise
numerous risks-damages to goods, mismanagement etc.
There are losses on account of fire, bad debts and
natural and man made calamities etc. These risks are to
be shouldered or can be shifted / reduced to some
extent. Some of the risks are insurable while others are
not.
• Buying and Assembling
Buying is the first step in the marketing process.
Proper decision about what to buy, how to buy,
where to buy and at what price to buy, must be
taken after adequate and appropriate research.
Every trading concern needs efficient and
economical buying to get adequate profit.
Assembling
means collecting goods of similar nature from
different sources of supply, at one convenient central
place for further processing or distribution.
Assembling is mostly done in case of agricultural
goods. When goods are assembled at one place, the
cost of warehousing, standardizing, grading,
packaging, labeling of goods is much lesser. Demand
for agricultural goods is perennial (through the year)
and thus supply is maintained throughout the year.
• Packaging
Packaging is defined as an activity undertaken to
protect the product from the harms of the
external environment. It aims at avoiding
breakage, spoilage, damage or destruction of
the goods during transit or storage.
Labelling
Labelling is defined as the process of designing and
developing the label of the product so as to give out
relevant information to consumers regarding the
product. It helps easily identify the product and can
help the brand stand out in the market.
The package and the label are the first things that a
consumer comes in contact with. Therefore, it needs
to be given considerable importance when finalising
the marketing plan.
• Standardization and Grading
A standard is a norm or criteria given to a product. It is a
mental process of fix standards for a given product like
size, weight, color, strength, texture, purity, durability,
performance, etc. A standard reflects the quality of the
product and helps quality control. It creates trust and
confidence in the minds of customer. Organic certification
for agricultural goods and Fair-trade certification mark for
manufactured and industrials goods. Standardization is
very essential for branded goods.
Grading refer to classification of products in
different categories on the basis certain fixed
standard. Grading is a physical process. It follows
standardization. Each product is grouped or
graded. It reflects a certain level of quality.
• Branding
Branding means assigning a name, mark,
symbol, color or a combination of these to a
product. An identity of a product is created, and
a customer can distinguish the products from
those of competitor's products. Brands give an
assurance of a certain level of quality and
performance of the product. Branding is a tool
used to survive, face and fight competitions.
Pricing the product
One of the most significant and complicated
functions of marketing. Choosing a high price might
lead to lower demand for the product and a low
price might lead the company to run out of
business.
The marketer should set the price after doing
considerable research and considering factors like
cost of production, competitors’ price, market
conditions, type of target customer, extra expenses
incurred, profit margin
• Promotion of the product
Once the product is in the market, the
consumers need to be aware of its presence to
buy it and enable the business to earn revenue.
The promotion function is responsible for
making the consumers aware of the goods
produced, its features and characteristics, its
prices and other necessary information.
Distribution
Distribution entails all decisions that are related
to the process of making the goods or services
available to the consumers. Even after
producing premium quality products at the
lowest prices, the manufacturer cannot make
them available to the ultimate consumer
Selling
Selling involve a transfer of title of goods to the
buyer. The main aim of sale of goods is to earn
profit. The selling function creates demand for
the products and involves creation and expansion
of markets for the goods produced in anticipation
of demand. Thus selling increases profit of the
business and production of goods and services
made available to the consumers in the society.
Storage and Warehousing
Warehousing creates time utility. Goods have to be
stored after they are produced until they are consumed.
Goods are produced in anticipation of demand and so
the producers store the goods systematically in
warehouses until the time of sale.

Storage helps to keep the steady flow of goods

throughout the year and also maintain price stability. The
producer can concentrate on production on a large-scale
and also benefit from the economics of scale.
Transportation
Transportation refers to movement of goods and
services from the place of production to the
place of consumption. It removes the problem
of distance and helps in continuous production
of goods, on a large scale. It helps in expanding
markets and maintains price stability and
generates employment. It also helps in balanced
development of a country.
 Concepts of Marketing

The Marketing Concept is the philosophy or

strategy that a firm identifies and understand
the needs of a customer, then develop a product
or service satisfying the needs of the customers,
better than the competitors.
 Production concept
Production concept advocates that consumers
would prefer products and services that are
abundantly available and are inexpensive,
affordable.
Marketing philosophy under this concept is on
product efficiency, low cost and mass
distribution. Consumers are interested in
possessing the product and not its features and
quality.
Product quality and consumer satisfaction are
completely ignored
 Product Concept
Product concept holds that consumers will buy
or will be willing to buy products that are
superior in quality, performance and are with
innovative features.
Company will focus on offering quality goods
which will attract customers to their products
and hence there is no need to promote the
products.
 Selling Concept
Selling concept assumes that consumer will not
buy products unless the company resorts to
aggressive selling and promotional techniques.
Consumers automatically will not buy the products
and hence company will/should undertake
measures to push the product in the market.
Usually, the selling concept is practiced on
products like insurances which buyers usually do
not think of buying.
 Marketing Concept
Marketing concept states that a company can
achieve its goals by developing a competitive
edge over its competitors by offering
differentiated product in terms of its quality,
features and promotion, thereby creating value
for potential customers.
This concept is customer oriented.
Features of marketing concept
• Target market
• Integrated marketing
• Satisfying consumer needs
• Realizing profitability goals
 Societal Marketing Concept
This concept emphasizes that a company's prime
responsibility is to improve the standard of living
of consumers by delivering to them products of
better quality / improved versions of existing
products at a fair price that will lead to satisfied
customers.
This concept stresses not only on consumer
satisfaction but also on consumer and social
welfare – It discharges social responsibilities.
The Societal Marketing Concept is based on the idea that, “A
Marketing strategy should deliver value to customers in a way that
maintains or improves the consumer’s and society’s well-being.”
Core Concepts of Marketing (Philip Kotler)
 OBJECTIVES OF MARKETING

• Creation of Demand
The objective of marketing is to create demand
through various means. A conscious attempt is
made to find out the preferences and tastes of the
consumers. Goods and services are produced to
satisfy the needs of the customers. Demand is also
created by informing the customers the utility of
various goods and services through various
promotional measures undertaken by the company.
• Customer Satisfaction
The marketing manager must study the needs /
demands of customers before offering them any
goods or services. Selling the goods or services is
not that important as the satisfaction of the
customers’ needs. Modern marketing is
customer-oriented. It begins and ends with the
customer.
• Market Share
Every business aims at increasing its market
share, i.e. the ratio of its sales to the total sales
in the economy. For instance, Asian Paints,
Nerolac and other brands of paints compete
with each other to increase their market share.
To this end innovative advertising, innovative
packaging, sales promotion activities are
resorted to by companies.
• Profits generation
Sufficient profits must be earned as a result of
sale of want satisfying products by the
marketers. If the firm is not earning profits, it
will not be able to survive in the market.
Moreover, profits are also needed for the
growth and diversification of the firm.
• Build reputation and Public Image
To build up the public image of a firm over a
period is another objective of marketing. The
marketing department provides quality products
to customers at reasonable prices and thus
creates its posititve impact on the customers.
• Implementation of effective marketing automation
Marketing automation is technology that allows
companies to centrally manage their interactions with
customers, handling marketing campaigns and
processes across multiple platforms automatically. It
uses software to schedule and complete routine
marketing tasks. Automation is efficient, saves time
and money, and increases a brand’s ability to put the
right content in front of customers at the right
moments, all of which leads to maximum profits
 Marketing --Goals
Goals of marketing can be classified into

I Goals based on economic activity

II Goals for long term relationship

I Goals based on economic activity

Goals based on economic activity can be studied under

objectives
• Creation of utility
• Cost reduction
• Price stability
1. Creation of utility
• Creation of Place utility
Movement of goods from place of production
to place of consumption
• Creation of Time utility
Making goods available as when required by
people
• Possession utility
Transfer of ownership and possession of goods to
the customers
Cost reduction
Aim is to reduce the cost so as to benefit both
buyers and sellers.

Price stability
Efficient marketing focuses on stabilization of
prices. Ensures there are no ide fluctuations in
prices
II Goals for long term relationship
Goal is to increase the profitability of the
company through innovative products and long
lasting customer relationship
• Identify and venture into new target markets
• Expansion of marketing channels - marketing
channel's definition, marketing goals probably
include raising awareness of brand, generate
leads, improve conversion, and boost repeat
business
• Undertaking market research to assist in
product development
• Integrating marketing activities to other
departments
• Improving quality and consistency of marketing
communication
• Developing website and internet technology
• Enhancing lead generation - Lead generation is
the process of identifying and nurturing
potential customers for company's products
and services
 Recent trends in Marketing
E-business

E-business or Electronic business or Online

business are business transactions that uses
internet technologies. The term e-business came
into existence in the year 1996.
Enables companies to operate efficiently and
effectively through
Internal business processes - Intranets
Business relationships - Extranets
Buying and selling of goods, services - e-
commerce
 E- Business Models
• Business - to - Business (B2B)
• Business - to - Consumer (B2C)
• Business - to - Government (B2G)
• Consumer - to - Consumer (C2C)
• Consumer - to - Business (C2B)
• Government - to - Business (G2B)
• Government - to - Citizen (G2C)
 B2B business model
B2B business model sells its products to an intermediate buyer who then sells

the product to the final customer .

 B2C business model
B2C business model sells its products directly to a customer.
 C2C business model
C2C business model helps consumers to sell their assets, cars, motorcycles, etc., by
publishing their information on the website. OLX
 Consumer - to – Business C to B Business model
a consumer approaches a website showing multiple business organizations for a
particular service. C-to-B is a model that customers communicate with businesses
through sharing their ideas with businesses such as submitting any suggestion or
learning about companies offers.
C2B, is a type of business model where the customer provides a service or product to
the business. This is the reverse of the typical business-to-consumer model (or B2C), in
which a company provides a service to customers through the sale of goods and
services.
C2B model connects customers who can offer their marketing
services to companies for a payoff. C2B business solutions are
often used to drive business to a company’s e-commerce
platforms. Some examples of C2B marketing include reverse
auctioning, affiliate marketing, and on-commission
advertisement space. C2B businesses rely on the actions of an
intermediary—the consumer—to market their business.
C2B solutions offer just some of the following benefits.
Reverse auctions: Reverse auctions allow consumers
to name the price for a product or service they want to
purchase.
Affiliate marketing: Affiliate marketing allows end-
users, often influencers, bloggers or publishers, to lend
a company their platforms to market specific products
on a commission basis. For example, a food company
may invite a food blogger to include a new product in a
recipe
Advertisement space: C2B advertisement space allows
end-users to receive a commission of the clicks on a
 B2G Business model
websites are used by governments to trade and exchange
information with various business organizations.
 G2B Business Model
Governments use B2G model websites to approach business
organizations. Such websites support auctions, tenders, and
application submission functionalities.
 G2C Business Model
Governments use G2C model websites to approach citizen in general. Such
websites support auctions of vehicles, machinery, or any other material and also
provides services like registration for birth, marriage or death certificates. The
main objective of G2C websites is to reduce the average time for fulfilling
citizen’s requests for various government services.
 Tele Marketing
A marketing strategy that involves directly
contacting customers and potential customers in
order to sell products or services without
previous interaction, through telecom facilities –
using telephones.
These are unsolicited contacts .
Tele marketing is the process of using telephone
to generate leads, make sales or gather
marketing information.

Lead refers to any individual who expresses interest in a business's goods or

services in any form, manner, or style. Leads are sometimes known as
suspects because they are considered potential buyers.
Inbound telemarketing
This telemarketing type refers to receiving incoming
calls from customers, meaning the engagement is
being initiated by the customers. This is usually a
result of broadcast advertising either from social
media, other forms of direct marketing, and email
marketing. The goal for inbound telemarketing is to
be able to secure orders for a wide selection of
products from consumers.
Outbound telemarketing /B2C telemarketing
• B2C telemarketing is synonymous with
outbound telemarketing as it also involves
proactively initiating the calls to direct
consumers. This type of telemarketing is a
more effective way of generating more clients
to businesses. In B2C telemarketing, it targets
consumers that have shown interest in an
organization’s products or services.
• B2B telemarketing
B2B telemarketing refers to business to business
transactions. The goal for this type of
telemarketing is to generate more sales or
obtain affiliation with another company. This
opens new opportunities to businesses as it
helps them find the right connections to gain
more customers.
Advantages
• Facilitates personalized contacts
• Works as lead generator
• Customer service
• Increase in repeat order
• Enlarge customer base
• Cost effective
• More interactive sales service
• Prompt feedback
Disadvantages

• Rejection & annoyance at random calls

• High cost of hiring professionals
• Low response rate
• Government policy curbing unscrupulous
telemarketers
 M-Business
Mobile marketing is a multi channel
digital marketing strategy to reach a target
audience through their mobile devices.
Marketers might engage consumers through
websites, email, text messaging, and mobile
apps to deliver time-sensitive content to
smartphones, tablets, and other devices.
Advantages of M-Business

Increased convenience and ease of use

M-Business allows customers to buy products and services through their smartphones and other
mobile devices. This eliminates the need to use a computer and can be done anywhere at any
time.

Increased speed and efficiency –

M-Business allows customers to make faster and easier transactions than traditional e-
commerce.

Increased reach
M-Business allows businesses to reach a wider audience than traditional e-commerce. This is
because many more people now have smartphones and other mobile devices than have
computers.

Increased sales
M-Business has been shown to result in higher sales than traditional e-commerce. This is because
customers are more likely to buy products and services through their smartphones and other
mobile devices than through their computers.
Disadvantages of M-Business
Security
One of the main concerns with m-commerce is security. Because transactions are
taking place on a mobile device, there is a greater risk of information being stolen or
compromised.
Limited screen space
Another issue with m-commerce is that the screen space on mobile devices is limited,
so it can be difficult to complete a transaction without making mistakes.
Lack of trust
Some people may not trust making transactions via mobile devices, especially if they
are not familiar with the technology.
Lack of payment options
Not all mobile devices accept all forms of payment, so there may be some limitations
when it comes to making purchases.
Limited range
Mobile devices have a limited range, so not all transactions can take place via mobile.
 Green Marketing

Green marketing was started in 1980’s in Europe

when people recognized the needs for the
products that are environmentally friendly.
With increasing awareness among consumers,
people are preferring environmental friendly
products. It is used by the firm as one of the
strategies in order to generate more profit and
protect the environment
• Green marketing is a marketing philosophy
that promotes production and selling of pure/
eco-friendly products with protection of
ecological balance.
• Green Marketing encourages production of
pure products by pure technology, conservation
of energy, preservation of environment,
minimum use of natural resources, and more
use of natural foods instead of processed foods.
• Green marketing raises the voice against
production, consumption, and/or disposal of
such products that in anyway harm
consumers, the society, and the environment.
It is necessary that businessmen and users
should refrain from harmful products.
According to American Marketing Association
(AMA), “Green marketing is the marketing of
products that are presumed to be
environmentally safe. Thus, Green marketing
incorporates a broad range of activities,
including product modification, changes to the
packaging as well as modifying advertizing.”
Need for Green Marketing
• It helps in reducing the environmental damage.
• Improves the company image and sales of the product.
• Creates customer awareness about ecological problems.
• Makes customer enjoy the benefits of a product or service
thereby also contributing to environmental benefits.
• Company’s become more accountable for producing and
marketing products without any adverse effects on the
environment.
BENEFITS OF GREEN MARKETING
• Improved Products / Marketing ways
In order to create environmentally friendly products,
companies may end up creating innovative products
• Access to new markets
The company can target on a environmentally
conscious consumer segment, which is relatively a
newer and larger market.
.
• Profit sustainability
People prefer company’s product because of its
environmental value and thus Company can earn
greater profits.
• Competitive Advantage
When people purchase Green Marketed products,
they pay for the product plus saves the environment
at a same price range that competitors offer, thus it
gives company’s product a competitive advantage
 OBJECTIVES
• To adhere to corporate social responsibility.
• To reduce expenses.
• To showcase how environment-friendly the
company’s offerings are.
• To communicate the brand message
• To implement sustainable and socially
accountable business practices.
Green Marketing Practices

• It involves a wide spectrum of activities, to create an eco-

friendly image of the company, to its target audience, such as:
• Using recycled and renewable material for production.
• Use of green energy to produce products, such as solar
energy, geothermal energy and wind energy.
• Reduce product packaging or use ecofriendly packaging.
• Not using toxic materials, which are harmful to the
environment.
• Making products which are reusable as well as recyclable.
These eco-friendly business practices include:

• Sustainable manufacturing
• Reduced or zero carbon footprint – carbondioxide
• Reduced or zero water pollution
• Recycled ingredients/materials
• Recyclable product
• Renewable ingredients/materials
• Eco-friendly packaging
• Reduced or zero plastic footprints.
Importance Of Green Marketing

Green marketing is not just beneficial for the environment, it’s

beneficial for the company in the long run as well.

• Access to new markets:

There’s a completely new market consisting of green consumers who
prefer green products over non-green products if they are given a
choice.
• Competitive advantage:
Going green adds up more customers to your existing customer base,
which in turn gives you a competitive advantage over your competitors.
• Brand Loyalty & Increased Brand Equity:
Brands that continuously show their commitment
towards protecting the environment and going green
tend to earn greater loyalty from customers.
• Positive Public Image:
Going green makes the customers feel that the
company has a responsible outlook and is aware of
the current scenario. All this results in a good image of
the brand in the eyes of existing and prospective
customers.
 "Ecological" green marketing,
marketing activities were concerned to help environment
problems and provide remedies for environmental problems.
"Environmental" green marketing
Focus was on clean technology that involved designing of
innovative new products, which take care of pollution and waste
issues.
"Sustainable" green marketing.
Derived from the term sustainable development which is defined
as "meeting the needs of the present without compromising the
ability of future generations to meet their own needs."
 Retailing
It consists of selling merchandise from a permanent
location (a retail store) in small quantities directly to the
consumers.
These consumers may be individual buyers or Corporate.
Retailer purchases goods or merchandise in bulk from
manufacturers / wholesalers directly and then
sells in small quantities
Shops may be located in residential areas, colony streets,
community centers or in modern shopping arcades/
malls.
Importance of Retailing to Consumers
• Retailers act as buying agents for consumers.
They add value to the distribution process by
ensuring that the consumer gets the right
product, at the right time and at the right
place. As a buying agent, the retailer performs
many useful activities for the consumer.
• Value-Added Services
• Product Variety
• Breaking Bulk
• Disseminating Information
Meaning of Retailing:
According to Kotler: ´Retailing includes all the
activities involved in selling goods or services to
the final consumers for personal, non business
uses.
A process of promoting greater sales and customer
satisfaction by gaining a better understanding of
the consumers of goods and services prod
 Characteristics of Retailing

• Direct interaction with customers/end customers.

• Sale volume large in quantities but less in monetary
value
• Customer service plays a vital role
• Sales promotions are offered at this point only
• Retail outlets are more than any other form of business
• Location and layout are critical factors in retail business.
• It offers employment opportunity to all age
Types of Retailers:
• Store Retailing by Store based Strategy
• Food Retailers
• Departmentalstores.
• Convenience St Full Line Discount.
• .Conventional Supermarket.
• Specialty Stores
• Food Based Superstore
• Off Price Retailer.
• Combination Store.
• Variety Store.
• Super Centres
• Flea Market.
• Hypermarket.
• Factory Outlet.. Limited Line Stores.
• . Membership Club.
• Functions of Retailing
• Buying
• Storage
• Grading and Packing
• Risk-Bearing
• Transportation
• Financing
• Sales Promotion
• Information
Non Store Retailing.
• Direct Marketing.
• Electronic/Internet/E- Direct Selling.
• Vending Machines
• Catalogue Marketing
• Franchising
Classification of Retailers
One way of making a distinction between different types of
retailers is by looking at the organization in terms of ownership and
control. Most retail organizations can be placed into one of four
categories:

• Independent Retailer
• Small Multiple Retailer
• Large Multiple Retailer
• Retail Conglomerate
 Relationship Marketing
Relationship marketing is the process of
developing long-lasting relationships with
customers. Through these relationships,
companies can promote brand loyalty and
encourage customers to make repeat purchases
over an extended time period. This strategy
focuses on long-term sales goals and customer
loyalty rather than short-term increases in sales
with one-time customers.
• Depending on the customer's needs and
desires, a company can build strategies that
motivate them to commit to the company's
product or service rather than a competitor's.
• According to Philip Kotler and Gary
Armstrong, "Relationship marketing is the
process of creating, maintaining and
enhancing strong, valued-laden relationship
with customers and stakeholders."
Relationship marketing aims to build mutually
satisfying long term relationships with key
constituents – customers, employees, marketing
partners and members of financial community.
Creating maintaining and increasing good and strong
relationship with customers and stakeholders is
relationship marketing.
Relationship marketing includes increasing strong
relation with customers, keeping contact and
enhancing it. Relationship marketing gives emphasis
on establishing valuable relationship and creating
delivery network with them rather than personal
dealings. Relationship marketing is long term
oriented.
 Benefits of relationship marketing

Long-term Customer Retention

Relationship marketing helps in retaining the customers for a
longer term as compared to traditional marketing. This is because
relationship marketing focuses on improving customer
satisfaction by catering to the requirements of the customers. In
such scenarios, the customer is likely to stay longer with the
brand which further enhances customer loyalty.

If a strong relationship is established with the customer, then

even an increase in the price of the product doesn’t affect the
sale. Thus, even in the worst conditions, relationship marketing is
beneficial in retaining customers.
• Increase in Revenue
While marketing the product or services, word
of mouth plays a vital role. If the customer is
satisfied with the brand, he will definitely refer it
to his family, friends, or relatives. This will help
in increasing the revenue of the company.
• Valuable Feedback
If the customer has a healthy relationship with
the brand, then he will be able to provide
valuable feedback about the product. This can
be further used to improve the quality of the
product.
• Gain an Edge over the Competitors
Relationship marketing helps to offer
personalized services to customers. This helps to
provide a personal touch to the customers
which further helps in gaining a competitive
edge over the others. The personal touch can be
achieved if the company:
• Maintains transparency with the customers
• Has a proper feedback channel
• Provides efficient support services
• Provides interaction with the customers online
and through social media
• Keeps a check on the image of the brand
online and take action accordingly
 Customer Relationship Management

Customer relationship management (CRM)

refers to the practices, strategies, and
technologies used by the marketers to manage
the company’s relationship with the customers
and to get higher profits through customer
satisfaction and customer loyalty.
According to Kotler:

Customer Relationship Management (CRM) is the

process of carefully managing detailed information
about individual customers and all customer “touch
points” to maximize customer loyalty.

A customer touch point is any occasion when a customer encounters the

brand and product - from actual experience to personal or mass
communications to casual observation.
 Features of CRM
Customers Needs
Customers Response
Customer Satisfaction-
Customer Loyalty
Customer Retention
Customer Complaints
Customer Service
 Objectives of CRM
The goal of a CRM is to create better customer
experience
• Improve business efficiency
• Improve customer satisfaction
• Expand customer base
• Enhance sales and Supporting teams
• Building long-term relationships
 Importance Of CRM
In the competitive environment a company has to
make use of customer data to satisfy their customers’
needs better and to retain them
Increasing Customer Perceived Value
Customer perceived value is customer’s perception of
the benefit received as compared to the cost paid by
him. CRM focuses on one-to-one marketing and
increasing the value of the customer base by forming
relationships which increase the customer perceived
value which eventually increases the customer equity.
• Reducing The Rate Of Customer Defection
Customer Relationship Managers select and
train employees to be knowledgeable, friendly,
and smart enough to interact with the
customers effectively and satisfactorily by using
customer’s data. This strategy of wooing
customers using their own data reduces
customer attrition.
• Better Customer Oriented Strategies
When the company knows about the
customers, it can develop better strategies to
woo, attract, and retain them.
• Long-Term Relationships
The more involved a customer is with the
company, the more likely he would be loyal. Some
companies treat their customers as partners,
some provide special status to their old customers,
while some seek their advice while developing
new products or designing new services. All these
practices work in the favour of the companies and
make the customers stay for long.
• Competitive Advantage
CRM helps in providing better service to the
customers and developing effective relationships. It
involves a holistic approach where all the
departments from manufacturing to marketing to
services know about the customers and help to
design a 360-degree strategy revolving around the
customer. This definitely gives the company a
competitive advantage where existing customers are
concerned.
Making Low-Profit Customers More Profitable

CRM helps managers to separate low-profit

customers from more-profit customers and also
help them develop strategies to convert low-
profit customers more profitable. Banks,
telecom operators, and travel companies use
this strategy effectively on a regular basis
• Increase in customer equity:
CRM increases customer equity. Firms focus the
marketing efforts more on the most valuable
customers (MVCs). The main aim of CRM is to
produce high customer equity. Customer equity
is the “sum of lifetime values of all customers.”
Customer life time value is affected by the costs
of customer acquisition, retention and cross
selling.
Cross selling
Cross-selling is the practice of selling related
/complementary / additional products that are
combatable with the one’s they are purchasing.
to the customers.
Benefits of cross-selling include increased sales
revenue, improved customer satisfaction and
increased Customer Lifetime Value (CLV).
Upselling
is encouraging the purchase of anything that would make a
customer's additional purchase more expensive with an upgrade,
enhancement, or premium option.
UNIT- 2 MARKETING ENVIRONMENT
 Market Segmentation

Market Segmentation is the process of dividing

an entire market into different consumer
segments in which each segment has a common
characteristic such as needs or behavior.
It is a marketing strategy that divides a broad
target market into subsets of consumers,
businesses, or countries that have, or are
perceived to have, common needs, interests,
and priorities and then designing and
implementing strategies to target them.
Philip Kotler: “Market Segmentation is the sub-
dividing of a market into homogeneous subsets
of customers, where any subset may conceivably
be selected on a market target to be reached
with a distinct marketing mix.”
Geographic segmentation refers to dividing the
market based on geographic location.
There are multiple ways that a market can be
geographically segmented.
Market can be divided by geographical areas, such as
by city, county, state, regions - the East and West
Coast, country, or international regions - continents.
Market can also be divided into rural, suburban, and
urban market segments. It can be segmented by
climate or total population in each area too.
• Geographic segmentation involves segmenting
target audience based on the region they live
or work in. This can be done in any number of
ways: grouping customers by the country they
live in, or smaller geographical divisions, from
region to city, and right down to postal code.
There are six factors that pertain to geographic
segmentation and can be used to create customer segments:

• Location (country, state, city, ZIP code)

• Time zone
• Climate and season
• Cultural preferences
• Language
• Population type and density (urban, suburban, exurban or
rural)
 Demographic segmentation
Demographic segmentation in marketing is a type of
consumer segmentation that involves grouping consumers
based on shared demographic characteristics to create better
marketing campaigns.

These characteristics include age, gender, income, occupation,

marital status, family size, and nationality. It’s one of the most
used segmentation methods because collecting data through
consumer insights, analytics, and census data is easy.
In addition, many marketers consider it the most cost-
effective method of segmenting the market.
Businesses can use their resources more
effectively by segmenting the market into
smaller groups with shared characteristics. As a
result, they can determine which messages will
relate best to audience members based on what
they have in common.
• Age groups have their own spending habits,
and they also respond differently to
advertisements.
• Gender-specific marketing is a great technique
when done well as the different genders have
distinct likes, thoughts, and preference
• Knowing the income range of consumers
help to target the right audience for product.

• Demographics are often considered when

manufacturers determine pricing strategies
• Occupation targeting is useful when creating products for
specific job positions or industries.
• Dividing the market based on job title or seniority is
helpful when determining who benefits from company’s
products
• .An example of this demographic segmentation would be
a company that makes suits targeting people working in
high-end business positions. In contrast, other clothing
companies may have products better suited for casual
work environments and target consumers working in less
formal environments
• Demographic segmentation can also involve
creating groups based on different cultures
that have distinctive interests, beliefs, and
attitudes.
• It’s essential to consider the family makeup
when creating segments, such as marital
status, family structure, and family life stages.
 Psychographic segmentation

The psychographic segmentation relates to the

personality, lifestyle, and attitude of the individual. It
is believed that the consumer buying behavior can be
determined by his personality and lifestyle. The
personality refers to the traits, attitudes and habits of
an individual and the market is segmented according
to the personal traits such as introvert, extrovert,
ambitious, aggressiveness, etc.
• Psychographic segmentation is a marketing
research approach that categorizes consumers
into groups based on psychological factors
influencing their buying behavior, personality,
values, beliefs, lifestyle, attitudes, interests,
activities, and social class.
In psychographic segmentation, marketers
encounter questions like:
• What motivates customers?
• What principles do customers users have?
• What are their inherent beliefs, values
• What drives customers to make conscious
and/or unconscious decisions?
• Psychographic variables are the factors that help
company to identify and split customers into
different categories.

• Personality: Personality traits play a big role when it

comes to the choices of target market. This is
because consumers are less likely to purchase items
that do not align with their personalities and vice
versa. For example, an introvert may not be keen
going out on week ends
• Lifestyle: Customers also consider how a
product fits into their lifestyle choices before
making a purchasing decision. For example,
creating a liquor variant of a product may not
work well if the target market consists of
individuals who do not take alcohol in any
form.
• Social Status / class : This is a very important
variable in psychographic segmentation as
every social class has its product preferences.
This means that what people eat, wear or
even choose to associate with, largely reflects
the social class they belong to; whether
directly or indirectly.
• Activities, Interests, and Opinions (AIO):
The hobbies, interests, and opinions of the
target audience can help understand their
preferences and what appeals to them. This
information comes in handy when it is time to
map out the buyer personas for company’s
product or service.
• Attitudes:
This is a combination of the religious and
cultural backgrounds of target market. This
psychographic variable is somewhat tricky and
complex because every consumer has a different
attitude and worldview as influenced by his or
her background. Regardless, this variable can be
used to map out different segments in target
market.
 Behavioural segmentation
Behavioral segmentation refers to a process in
marketing which divides customers into
segments depending on their behavior patterns
when interacting with a particular business or
website.
• Segmentation based on purchase and usage
behavior
Segmenting by purchase behavior disentangles
the varying trends and behavior patterns that
customers have when making a purchase decision.
A shopper that is keen on social proof and buys in
accordance with popularity trends could be
targeted with a message suggesting that the item
is in high demand, and moving fast.
• Occasion or timing-based segmentation
Occasion-based segmentation categorizes
customers who are most likely to interact with
company’s brand or purchase from website on
either specific occasions or set times.
Occasions could include national holidays,
Diwali, Christmas, life occasions, such as a
wedding, new house, or vacation.
• Benefits sought segmentation
Segmenting by benefits sought refers to dividing
audience based on the unique value proposition the
customer is looking to gain from product or service.

When customers make purchases, they do so based

on the belief that certain value or benefit will be
received from using the product or service.
• Segmentation based on customer loyalty
Loyalty-based segmentation measures the level of loyalty a
customer has with brand, either through a rewards
program, number of purchases, or general engagement
with company’s marketing efforts.

Using loyalty-based behavioral segmentation helps

company to zero in on existing repeat customers, their
needs, behavior patterns, and more. Besides generating
repeat revenue for business, loyal customers are incredibly
useful in terms of referrals, word of mouth, and feedback.