Professional Documents
Culture Documents
1.MEANING
2.DEFINITION
3.EVOLUTION OF MARKETING
4.ROLE OF MARKETING IN BUSINESS AND
SOCIETY
5.OBJECTIVES
6.NATURE
7. DISTINCT MARKETING CONCEPT
8.DIFFERENCE BETWEEN MARKETING AND
SELLING
9.FEATURES OF MARKETING CONCEPT
10.WHO BENEFITS FROM MARKETING
CONCEPT
MARKETING MANAGEMENT
Meaning:
Marketing means selling of goods and services. In
other words, it is the process by which goods are made
available to ultimate consumers from their place of origin.
4.It bridges the gap between production and sale of goods, making
economic activity possible. It integrates agricultural and industrial
sectors.
e.g.Inexpensive Toys,electronics
3.The Product concept:
a)This concept is based on product excellence-improved
products,new products and ideally designed and engineered products.
b)It also places the emphasis on quality assurance.
c)They spend considerable time and money on research and
development and bring in new variety of products yet they fail in the
market.
d)They do not bother to study the market and the consumer in depth.
e)they get so engrossed in their product that they forget to find out
what the customer actually need and what they would gladly accept.
f)It leads to marketing myopia.
Marketing Myopia
a)‘marketing myopia’ means crooked perception of marketing and
short sightedness about business.
b)Excessive attention to the production or product or selling aspects at
the cost of customer and his actual needs,creates a myopia.
c)it leads to wrong or inadequate understanding of the market and
hence failure in the market place.
d)It also leads to a wrong understanding or inadequate understanding
of the very nature of the business thereby affecting its future.
e)Since The business keep changing with times but the basic
fundamental characteristics related to human need which business
seek to serve amd satisfy through its products should be maintained.
f)they should define their business according to their fundamentals
and not in the terms of the products and services manufactures at
given point of time.
E.g. movie makers should define their business as entertainment.
4.The Sales concept:
a)The sales concept maintains that a company cannot expects its
product to get picked up automatically by the customers.
b)The company has to consciously push its products.
c)Aggressive advertising,high power personal selling,large scale
promotion,heavy price discounts,strong publicity and public relations
are the normal tools that rely on this concept.
d)In this kind of concept companies believed that selling is
synonymous with marketing but in reality there is a great deal of
difference between selling and marketing.
Marketing Selling
1.Marketing starts with the customer ,present and 1.Selling starts with the seller.It focuses on the need of
potential and focuses constantly on the need of the the need.Seller is the centre of the business
buyer.Buyer is the centre of the business universe.activities starts with sellers existing products.
universe.activities follow the buyer and his needs.
2.Emphasis on identification of a market opportunity 2.Emphasis on saleable surpluses available within the
and fulfilling the needs of the customer. corporation.
3.Seeks to convert customer ‘needs’ into ‘products’. 3.Seeks to convert ‘product’into ‘cash’,concerns itself
with the tricks and techniques of getting the customers to
buy the product available with the salesman in exchange
of cash.
4.View business as ‘customer satisfying process’. 4.View business as a ‘goods producing process’.
5.It is concern with the ‘value satisfaction ‘ customer 5.Overemphasis the ‘exchange’aspectwithout caring for
should get from the exchange. the ‘value satisfaction’ inherent in the exchange.
6.The firm makes a ‘total product offering’that would 6.The firm makes the product first and then figure out
match and satisfy the identified needs of the how to sell it and make profit.
customers.
7.Adopting more innovative technology to provide 7.Emphasis on staying with the existing technology and
better value to the customer. reducing the cost of production.
8.If the enterprise has a customer orientation- 8.If the enterprise has internal orientation concerned
concerned more about his needs,and make genuine more about itself and its products and the need to
efforts to satisfy those needs ,then it is practising dispose off its products,then it is practicing ‘Selling’.
‘Marketing’.
Marketing Selling
C o m p a n y Lo ca tio n
Firm C o m p a n y Im a g e
D e m o g ra p h ic
S u p p lie rs
Le g a l
M icro E n viro n m e n t
M a rke t In te rm e d ia rie s Po litica l
C u sto m e rs Te ch n o lo g ica l
E xte rn a l E n viro n m e n t
S o cio -cu ltu ra l
E co n o m ic
M a cro E n viro n m e n t N a tu ra l
Macro Environment
Young Adults:Young adults in the age group of 19-30 years with products
like motorbikes,music systems,clothes,fast food joints and sports car,the
demand for these products are increasing.
Domestic politics:
When Organizations help in electing candidates that support their
industry by funding election campaigns and sometimes run political
ads for them.A company may contribute to one party at a time.
4.Pure competition: Any body can enter into such markets. It is an ideal
structure in which a large number of sellers compete to offer relatively
similar products.
E.g-Unregulated agriculture market
Marketing Planning
The Corporate vision and mission paves the way for the creation of
long-term and short-term objectives, the planning strategies are
adopted to realize these objectives.
There are five basic activities that companies undertake;
1.Corporate mission
A C h a rt S p e cifyin g th e C o n te n ts
E xe cu tive S u m m a ry
A ctio n Pro g ra m s
C o n tro l
MARKET SEGMENTATION AND MARKET TARGETING
Segmentation is all about dividing the market to serve them better value
prepositions.
Dividing the market by grouping the customers with similar tastes and
preferences into one segment is called segmentation. If marketers know
which segment of the market they are targeting, they can design their
marketing mix to suit the customer in the segment.
1.Age and Life cycle stage; The taste and preferences keep
changing.E.g.-a 12 year boy might like chocolates but might dislike at
the age of 30.So Cadbury's starting focus on youth and old people to
boost up its sales in 14 years and above segment.
2.Gender;Many products like
garments,watches,shoes,jewellery,wristwatches,magazines etc. are
segmented according to gender. There are certain brands which are
positioned exclusively for a specific sex.
E.g.-Raymond is a brand exclusively for men.
Gillette have shaving accessories exclusively for men but now they
have also produced products specially for women. This is the case
where products were manufactured to suit one gender but later
switched to another gender.
Lifestyle; Since different people lead different life styles they buy
products accordingly to suit their lifestyle.E.g. –Top manager will
usually buy formal wear or Titan introduced fast track to young
urbanities.
Personality; Personality characteristics such as
aggression,masculinity,extroversion etc. also influence the buyer behavior of
individuals. Marketers presume that people who either have a particular
characteristic or aspire to have the particular characteristic, will be
influenced positively to buy that particular brand.
Values; Values affect the customer behavior and marketers believe that if
the values of the customers can be influenced, their impact on the customer
will be for a longer period. Marketers can use values and beliefs to segment
the markets.
4.Behavioral Segmentation; Organizations can divide markets on
the basis of behavior that customers show towards the usage of the
products. This segmentation is most suitable for product driven
organizations. But its usage is restricted when new customers come to
the marketer. Various variables are occassions,benefits,user status,
loyalty ,etc.
Loyalty status: loyalty status of a particular market can be divided into four
groups.
1.Hard core loyals;Consumers,who are extremely brand loyal.
e.g.- the beetle Automobile of Volkswagen achieved that status.
2.Split loyals;Split royals are those customers who use more than one
brands.E.g- a customer may use two or three brands of perfumes.
3.Shifting loyals;Customers who shift their loyalty from one brand to
another E.g.-A customer use cinthol soap for some time may shift to Dove
4.Switchers;Switchers are those customers who are not brand specific These
people might buy any brand on impulse or to seek variety.
TOTAL QUALITY MANAGEMENT
Firms selling the similar product compete on the basis of the associated
features cause the core features are the same for all. Marketers try to innovate
around the associated features to make the product distinct from the
competitor’s product.
Brand name;Brand name is the most important associated feature of
the product.The Product is identified by the Brand name.It identifies
the product offered by one seller from another.The brand includes a
name,symbol,design or a combination of these.Companies invest a lot
of time and money in building a brand.
E.g.- A customer no longer asks for a product alone but they ask for a
specific brand like Colgate tooth paste, Gillette shaving cream,Revlon
lipstick,luxor Pen etc.
4.Potential product: Potential products are products which include all the
improvements that are possible under given technological,economic and
competitive conditions.Only big companies with huge resources make
significant investments in producing potential products.
Product Hierarchy
1.Convinience products
2.Shopping products
3.Speciality products
4.Unsought products
b)Industrial products
1.Production goods
2.Support Goods
1.Convinience products;They are relatively inexpensive and bought
frequently.These products are usually bought with minimum of
thought and efforts.they are not affected by fashion and
fad.Convinience products can be catagorized into staple
goods(milk,bread,newspapers etc.).Marketers sell convinience
products through retail stores stock them in self-service shelves.
For E.g.-Wrigley’s chewing gum,Femina magazine,Gillette Sensor,etc.
are placed at counters and shelves near the check-out points at Food
World outlets,so that a customer is bound to look at them while
waiting for his turn at the check out counter.
Marketers also try to use screen displays at the entrance of the store.
E.g.-Ponds beauty care displaying its products.
2.Shopping Products;Shopping products are products for which a
buyer is willing to spend time and effort in planning and making
purchase decisions.These products are expected to have longer life
and are purchased less frequently.They are more expensive and
available at limited outlets.Buyers evaluate features like price,product
features,warranties,quality,after sales services,etc in a brand.
E.g.-home appliances,cameras,T.V.
1.Capital equipment;it comprises of large tools and machines that are used for
production of goods or for providing services.They are usually expensive.
u ct lin e
Denim Ok Breeze Lipton Ice
e p th tea
501 Pears Taj Mahal
d)Positioning by price and Quality.Some retail outlets like Croma are known
for their high quality merchandise and high prices,while others like(Big bazaar)
offer same products at a lower price and ‘value for money).
Product Life Cycle
2.Growth Stage; During the growth period, sale of the product increases fast
and cost of production comes down due to increase in scale of
production.Profits earned increase substantially.
1.Advertising
2.personal selling
4. publicity
Advertising
Audio form;
1. radio and other similiar methods
Audio-visual forms;
1. Television,
2.cinema screen, etc.
Personal selling
E.g.-One tooth brush free with one 100gm of Close-up dental cream .
Publicity
Packaging
The Service sector are growing faster than manufacturing and the goods
sector globally.
Service retailing can be divided into;
1.Rented goods services;In this case,the consumer pay the fees for the time
but he does not own it.E.g.-Hertz car rental offer cars on rent.
2.Owned goods service retailing;The service provider does not own the
goods that he services.E.g.-Annual PC maintainence or AC maintainence
contracts.
3.Non –goods service retailing;Personal services are provided.No physical
goods are involved.E.g.-Tutors,personal trainers,real stoke brokers etc.
4.Non-Store based retailing
It can be in the form of;
Meaning
Franchising is a contractual and legal binding agreement
between a franchiser and a franchisee.
A franchiser may be the owner of thea trademark or a
tradename,a producer of goods and services
provider.Hegives the right to the franchisee the right to do
the business under his trade mark,trade name,product.or
service.
Strategic Issues in Retailing
GATT
General Agreement of Tariff and Trade is an agreement
among more than 120 countries,the purpose of which is to
lower barriers to the free flow of goods and services
between nations.
Instruments of trade Policy
3.Import Quotas;
Quotas is a limit on the amount of exports that can come into the country in a
year.It reduces quantity of imports.
4.VER’s-Voluntary-Exports Restrictions;
A trade restriction on the quantity of a good that an
exporting country is allowed to export to another country.
This limit is self-imposed by the exporting country.
E.g.-When the automobile industry in the United States was threatened by
the popularity of cheaper more fuel efficient Japanese cars, a 1981 voluntary
restraint agreement limited the Japanese to exporting 1.68 million cars to the
U.S. annually.
2.A value-added tax(VAT);it is a national sales tax levied at each stage of the
production and distribution system,though only on the value added at that
stage.In other words,each time a product changes hands,even between
middlemen,a tax must be paid.
3.Cascade tax; They are collected at each point in the manufacturing
and distribution chain and are levied on the total value of a
product,including taxes borne by the product at early stage.
Debits;
Currently outflows are recorded as debits.Debits show with minus
sign.Capital outflows show up as debits because they represent
purchases(import of valuable foreign assets).
The balance of Payments
The balance of payments statement is based on double entry book
keeping.Every economic transaction recorded as credit brings about equal
and offsetting debit entry,and vice-versa.Because double entry book keeping
ensures that debits equal credits,the sum of all transactions are zero.
For e.g.-If a foreigner sells a painting to an Indian resident,a credit is
recorded to reflect an increase in liabilities(payment to the painting) and
debit is recorded to indicate an increase in purchase made by the indian(the
painting).