An

Assignment.
Of Marketing Management Subject On AMUL. Presented To, Mr. Baxis Patel A faculty member of Vivekanand College for B.B.A. Jahangirpura, Surat. On 12th of October, 2007. In a Partial Fulfillment of Second Year B.B.A., Semester III, For Academic year 2007-2008. Presented By: Krishnakant P. Somani Jayesh B. Shiyani Dhaval G. Patel Chirag B. Patel Ashvin P. Patel (55) (54) (26) (24) (22)

Index Chapter No. 1 2 3 4 5 6 7 Chapter Name Introduction to Marketing. Marketing Environment. Product. Price. Place. Promotion. Customer Buying Process. Page No. 3 11 16 24 26

Chapter: 1 Introduction to Marketing

Meaning
Marketing is the process of dealing with identifying and meeting human and social needs. The process of marketing is found everywhere around us. Formally or informally, people and organizations are being engaged in a vast number of activities which could be called as marketing. Good marketing has become an increasingly vital ingredient for business success. Shortly, we can define marketing as The process of meeting needs profitably. So we can say that financial success of the company often depends on the marketing ability of the company. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. The companies are at the greatest risk are those that fail to carefully monitor their customers and competitors and to continuously improve their value offerings. They take a short term sales-driven view of their business and ultimately, they fail to satisfy their stockholders, employees, suppliers, and their channel partners. So we can say that skillful marketing is never ending pursuit.

Definition
Here there are different definitions given by different people are as follows: Marketing is a typical task of creating, promoting, and delivering goods and services to consumer and business. Philip Kotler. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders. American Marketing Association. 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. Social definition for marketing.

Marketing? What is Marketed?

Marketing people are involved in marketing ten types of entities. They are as follows: Goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Goods
Physical goods constitute the bulk and work of most countries production and marketing efforts. Many companies market their products which are the mainstays of the company. Amul Milk Co-operative Society., also markets its various milk products such as milk, curd, cheese, butter, milk powder, sweets, ice-cream and various milk products.

Services
The intangible product provided by the company is known as services. As economies advance, a growing proportion of their activities are focused on the production of services. Services include the work of airlines, hotels, cyber-cafe, as well as professionals including doctors, accountants, lawyers, management consultants, etc,. Amul Co. now-a-days also provides services of ice-cream cafe and parlours with internet surfing facilities throughout India.

Experiences
While orchestrating several goods and services, a firm can create, stage, and market experiences. For example amusement parks with different rides, theme restaurant, etc,. Amul Co. also provides experiences of different flavoured ice creams and sweets of different famous regions.

Events
Marketers promote time-based events, such as trade shows, company anniversaries. Global sporting events such as Olympics, world cup, different contests of music, sports, acting, etc,. Amul Co. also promotes this type of events such as AMUL Star Voice Of India., films on urban co-operative societies, national leaders such as Sardar Patel.

Person
Celebrity marketing is a major business. Today major film stars and sports personalities have a personal manager which ties to a public relation agency. This public relation agencies provides advice to them on personal brand building. Amul Co. does not markets any famous celebrities but it has started by new comic ad or hoardings of Shahrukh Khan with his perfect six pack abs. and another of Dhoni & Indian team celebrates with World cup.

Place
Places like cities, states, regions, and whole nations are being marketed to attract customers in the form of tourists, investors, residential, etc,. Even places like hospitals, hotels, ice-cream parlours, schools, etc,. can be marketed. Amul Co. also does marketing of its ice-cream parlours around the country.

Properties
Properties are intangible rights of ownership of either real property or financial property. Properties are bought and sold, and this requires marketing. Investment companies and banks are involved in marketing securities to both institutional and individual investors. Amul Co. also does marketing of its real properties at different places according to the situation.

Organizations
Organizations actively work to build a strong, favourable, and unique image in the mind of their target public (customers). Companies spend money on corporate identity advertisements. Non-profit organizations use marketing to boost their public images and to compete for audiences and funds. Amul Co. The milk products company, puts out ads with the tag line The Taste of India. Which created a good impact on the customers.

Information
Information can be produced and marketed as a product. This is essentially what schools, universities, and coaching classes produce and distribute to parents, students, public, and communities. The production, packaging, and distribution of information is one of our societys major industries. Amul Co. provides information of different types of cooking recipes to the public.

Ideas
Every market offering includes a basic idea. Products and services are platforms for delivering some idea or benefit. Promotion for encouraging family planning and discouraging smoking are ideas that fall in the realm of social marketing. Amul Co. organizes different contests, award ceremony for upcoming students, different shows with innovative ideas. Thus, these are the ten entities marketed by the marketing people. These entities may be business for some companies or it may be just a part of the programs of the company.

Markets
Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. While now a days, economists describe a market as a collection of buyers and sellers who transact over a particular product or product class. Modern economies abound in such markets. On the basis of the information there are five basic markets. Their connecting flows are shown in the figure 1.1.

Raw materials Money Taxes, goods Resource markets Services, money

Resources Money

Services, money Manufacturer markets Government markets Taxes, goods Service, money Taxes, goods

Taxes Consumer markets Service s

Money Goods and services

Intermediary markets

Money Goods and services

FIG. 1.1. Structure of Flows in a Modern Exchange Economy. From the above figure we can say that all the five basic markets are being connected with each other with intermediary market. This process of connecting flow of the work or trading of goods and services between the markets is followed by every nations economies either it is developed or developing economy.

Process of the flow of activities carried out by the market in the Amul Co. is as follows according to the figure 1.1. Resource markets : it purchases labour from the consumer markets. Manufacturer markets (Amul Co.) : It purchases raw materials, hires labours, and takes money from the resources markets. Intermediary markets : It purchases finished goods and services from the manufacturer. This market consists of wholesalers, retailers, dealers, distributor, small scale shopkeepers, etc. Consumer markets : It is the main part of the market. It consists of all the members of all the market which sells the labour for money and from it purchases the goods and services. Government markets : It plays an essential role in the market structure. It acquires taxes from all the markets goods, services, raw materials, etc. and uses this for to provide public services. Process of flow in the market structure: From the above figure 1.1 We can say that the resource market supplies raw materials, labours, money, etc to the manufacturer. Amul Co. also purchases its raw materials from the poultry farmers, dairy man, etc for the manufacturing or changing of goods from milk to pasteurized milk, curd, ice creams, milk powder, cheese, butter, ghee, paneer, sweet items, etc. After manufacturing of the product is completed. Then it is being sold to intermediary markets which changes with the type of product is. This intermediary may be dairy shops, ice cream parlours, juice shops, hotels & restaurants, etc. After this process the intermediary sells the product to the consumer who may be of many types. The customer may be a direct consumer who purchases from the dairy shop for its house; the customer may be in the restaurants for the consumption of the product in the form of milk, tea, coffee, sweet item, curd, buttermilk, cheese, butter, etc. The customer itself is the resource market because it includes whole region or nation. They sell their products, labour, etc. and on behalf of that money they get; they purchase the goods and services from the market. So, this process is followed by each basic market structure of every nations economy. From this we can say that the whole global economy consists of complex interacting sets of markets linked through exchange processes.

CUSTOMER MARKETS
The market which purchases a type of product from a particular product it is known as customer for the manufacturing company. There are four types of customer markets. FIG. 1.2. Classification of Consumer Markets. Customer Markets

Consumer Markets

Business Markets

Global Markets

Non profit & Governmen t Markets

Consumer Markets
Companies selling mass consumer goods and services such as soft drinks, stationeries, and air tickets, etc. spend a great deal of time trying to establish a superior brand image. Much of a brands strength depends on developing a superior product and packaging, ensuring its availability, and backing with engaging communications and reliable service to achieve the highest position in the targeted market.

Business Markets
Companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled in evaluating competitive offerings. Business marketers must demonstrate how their products will help these buyers. Advertising can play a role, but a stronger role may be played by the sales force, price, and the companys reputation for reliability and quality.

Global Market
Companies selling business goods and services in the global market place face additional decisions and challenges. They must decide which countries to enter; how to enter each country (for ex. As an exporter, licenser, joint venture, contract manufacturer or solo manufacturer); how to adapt their product and service features to each country; how to price their products in different countries.

Non profit & Government Markets

Companies selling their goods and services to non profit organizations or government agencies need to price carefully because these organizations have limited purchasing power. So government purchasing, calls for bids, with the lowest bid being favored, in the absence of extenuating factors.

Philosophy of orientations
Marketing activities should be carried out under a well thought-out philosophy of efficiency, effectiveness, and social responsibility. The competing concepts under which organizations conduct marketing activities include: the production concept, product concept, selling concept, marketing concept, societal marketing concept, marketing non-profit organization, and consumer satisfaction.

The Production Concept

The production concept is one of the oldest concepts in the business. It holds that consumers will prefer the products that are widely used or available and inexpensive. In which managers of production oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. This orientation makes importance in developing countries where consumers are interested in products with current features and for the expansion of the market of the company.

The Product Concept

The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in this organization focus on making superior products and improving them over time. They assume that buyers admire well made products and can evaluate quality and performance.

The Selling Concept

The selling concept holds that consumers and business, if left alone, will ordinarily not buy enough of the organizations products. The organization must, therefore, undertake an aggressive selling and promotion efforts. It is assumed that the company has a whole capacity for effective selling and promotion tools to generate more sales. The aim of most of the companies is to sell what they make rather than what the market founds; it sometimes creates higher risks for the company itself.

The Marketing Concept

In marketing concept instead of product centered make and sell philosophy the entire focus shifted on customer centered sense and responds. The job is not to find right customers for your product but the right product for your customers. The marketing concept holds that the key to achieve its organizational goals consist of the company being more effective than competitors in creating, delivering, and communicating superior customer value to each chosen target market. The marketing concept is built on four pillars: target markets, customers needs, integrated marketing and profitability.

The Societal Marketing Concept

The societal marketing concept holds that the organizations task is to determine the needs, wants, and interest of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in such a way that preserves consumers and societies well being. To build up social and ethical consideration into their marketing practices many companies use societal marketing concept; this increases an opportunity to enhance their corporate reputation, raise brand awareness, and increase customer loyalty & press coverage.

The Concept of Marketing Non-Profit Organization

More often non-profit organizations use the marketing concept that their aim is to hold strong image in their target market and for which they will generate enough funds for survival and to perform their day to day activities. Their focus never remains on to make profit.

The Concept of Consumer Satisfaction

The consumer satisfaction concept holds that the task of the organization is to satisfy the consumers by providing the goods and services in the best possible manner. If the consumer is not satisfied by the service or the type of product provided by the company then it will result into loss for the company itself. So the primary function of the company is to make the consumer satisfied.

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Chapter: 2 Marketing Environment

Meaning
The environment in which the marketer operates; for the best performance of the marketer in the company and the best performance of the company in the competitive market. The marketing environment is based on four different concepts. They are follows: concept of target, channels, competitions, and public & consumers.

Concept of Target
The marketer can rarely satisfy everyone in a market. As the taste and preferences of every customer is not same in a market. Therefore, marketers start by dividing up the market into segments. They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioural differences among buyers. The marketer then decides which segments present the greatest opportunity which are its target markets.

Concept of Channel
To reach a target market smoothly without any hurdles, the marketer uses three kind of marketing channels. These three channels are as follows: communication channel, distribution channel, service channel.

Communication Channel
Through this channel marketers deliver and receive messages from the target customers, and it includes newspapers, magazines, television, radio, mail, telephone, outdoor publicity, CDs, audiotapes, and the Internet.

Distribution Channel
Through this channel marketers display, sell or deliver the physical product or services to the buyer or user. They include distributers, retailers, wholesalers, agents.

Service Channel
Through this channel marketers carry out transactions with potential buyers. It includes banks, warehouses, transportation companies, insurance companies, and other service providing companies, that facilitate transactions.

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Concept of Competition
Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider. For an example any dairy shop is direct competitor for Amul, but here the poultry farmer may also be a competitor for the company for the product milk as it is also a substitute product for the pasteurized milk. The competition in the market may be monopoly, oligopoly, monopolistic, and competitive market.

Concept of Public
Population of the nation and outside of the nation from which company can identify the target markets. It consists of potential buyers, current users, influencers, decision makers, and general public.

Macro environments
Successful companies recognize and respond profitably to unmet needs and trends of the customers. The macro environment forces profoundly affect the fortunes of marketers. The different macro environments affecting the marketers are as follows: social & cultural, economic, technological, political & legal, and situational / physical environment.

Social & Cultural Environment

Society shapes the beliefs, values, and norms that largely define these taste and preferences. People absorb, almost unconsciously, a world view that defines their relationships to themselves, others, organizations, society, nature, and to the universe. Values, attitudes, and aspirations, of people vary across different customer groups and regions. A survey conducted by Research International in 2002 indicated significant regional differences in values, attitudes and preference of women and classified Indian states into four clusters. i) Traditionalism, ii) Individualism, iii) Westernization, and iv) Habitualism.

Economic Environment
Marketers require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers must pay careful attention to trends affecting purchasing power because they can have a strong impact on business, especially for companies whose products are geared to high income and price sensitive consumers. Income distribution is very important to understand for marketers to make more meaningful conclusions for arriving at specific decisions. 12

Technological Environment
One of the most dramatic forces shaping peoples lives is technology. Technology has released such wonders as penicillin, open heart surgery, and the birth control pill. It has released such horrors as the hydrogen bomb, nerve gas, and the submachine gin. Every new technology is a force for creative destruction. Audiotapes, videotapes business hurted by CDs & CD player business, newspaper market being hurted by television markets. Instead of moving into the new technologies many industries fought against or ignored them and their business declined. The economic growth rate is affected by how many new technologies are discovered. Today in booming economy every company tries to take an advantage through more and more investment in Research & Development department. The dairy business was developed by Amul; but without hurting any small scale dairys market. By uniting all the small poultry farmers into a cooperative company and then adopting latest technologies for increasing quality and quantity of the milk products.

Political & Legal Environment

Marketing decisions are strongly affected by developments in the political and legal environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business. Two major trends deal with the increase in business legislation and the growth of special interest groups. Increase in Business Legislation: Business Legislation has three main purposes: to protect companies from unfair competition, to protect consumers from unfair business practices, and to protect the society from unbridled business behaviour. A major purpose of business legislation and enforcement is to charge business with the social costs created by their products & production process. In India it is compulsory to carry a green dot for pure vegetarian and red dot for non vegetarian food products and also to print MRP (maximum retail price). This concept is also followed by Amul in its packaging of the products which are vegetarian. Protecting the Welfare of Consumers: An important force affecting the business is the consumerist movement an organized movement by the citizens and government to strengthen the rights & powers of consumers. In order to protect the interests of consumers, the government of India passed a legislation under the Consumer Protection Act, 1986. Six rights recognized for the consumers. Safety: The right to be protected against the marketing of goods & services that are hazardous to life and property. Information: To protect the consumers against unfair trade practices, and the right to be informed about the quality, quantity, purity, standard and price.

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 Choice: The right to choose a variety of products and services at competitive prices. Representation: The right to be heard and be assured that the consumers interests receive due considerations at appropriate forums. Redressal: The right to seek redressal against unfair and restrictive trade practices, and unscrupulous exploitation of consumers. Consumer Education: The right to consumer education. Consumers are informed by various channels of their rights and power in the market.

Situational / Physical Environment

The environment of the marketer is also affected by situations prevailing in the present time. The situations may be natural or manmade. Some time it also gives opportunities for the development of business. Some of the physical factors are as follows: Raw Material, Live Stock etc. Raw Material: Changes in price of the raw material affects the physical development of the business. The reduction or stopping the production of the raw material may also affect the business as it have to stop the production for the product produced from the particular raw material. Live Stock: The stock or the quantity of the product produced affects the business. If the quantity of the stock is high and the product fails or is banned in the market then the company has to bear a great loss.

Nature of Product
The nature of the product is being classified on the basis of the uses of the product, quality, durability, etc. It is classified into two groups: Consumer Goods and Industrial Goods. The nature, use, durability, etc. changes as the product is being classified. In Amul the main product is milk. It is also classified into both ways as consumer goods and also as industrial goods. As the milk is also directly consumed by the consumers and used by the industries for further production of milk into curd, sweet items, milk powder, butter, cheese, ghee, ice cream, cool flavored milk, brown beverages, etc.

Consumer Goods
In this the products nature is that the product is consumed by the consumer. Consumer goods are meant for final consumption by the consumers and not for sale. This product is purchased in the quantity only which 14

the consumer needs. The quality and price of the product is charged according to the retailing markets. Consumer goods are of three types: (a) Convenience Goods: Items, the consumer buys frequently, immediately and with minimum shopping effort are convenience goods. For instance, food items, etc. here for the consumer according to the Amul milk, curd, ice cream, etc. are convenience goods. (b) Shopping Goods: There are goods purchased by the consumers, only after a careful comparison-suitability, quality, price, etc. For example clothes, furniture, house hold appliances, etc. here for the consumer according to the Amul ice cream, flavored cool milk, brown beverages, etc. are shopping goods. (c) Speciality Goods: These are goods with unique characteristics or brand identification and the purchasers make a special purchasing effort, for instance, fancy goods, special eating items etc. here for the consumer according to the Amul ice creams, sweet items, cool flavored drink etc. Accordingly to durability or tangibility, products can be classified into three: 1. Non-durable goods, such as milk, curd, etc. 2. Durable goods, such as ghee, cheese, milk powder, brown beverages. 3. Services, such as hotels, ice-cream cafs provided by Amul.

Industrial Goods
Industrial goods are those which are used for further production of goods or services, and include capital goods, raw materials, component parts etc. these are used as input in producing other products. For example the milk of Amul Company is used by itself and other sweet manufacturers for further production of milk into curd, sweet items, butter, cheese, ice cream, etc. The quantity here purchased is high. So the price is some how reduced by the company. But the quality is same as compared to the consumer goods. There is only one or no agents to carry out trade between the company and the industries.

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Chapter: 3 Product
Meaning
The product represents a bundle of expectations of the consumers. The product satisfies the needs of the society and consumers. A successful product ensures its own promotion if satisfies the needs of the consumers. The product may be tangible or intangible. It is classified on the basis of tangibility and from it is classified on the base of many reasons such as class, region, environment, fashion, style, taste, preferences etc. A good product should be able to generate extra amount of enthusiasm which is important to market organizations. It gives the marketer independence in decision making. When an organization markets goods or services, it should aim to enjoy consumer satisfaction and profit maximization. The product policy decisions based on the consumers demand is an important factor in marketing the product successfully. The tangible form of product is known as Goods, and the intangible form of product is known as services.

Definition of Product
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

Product Line
A product line is a group of products that are closely related, either because they function in a simple manner, or are sold to the same customer groups, or are marketed through the same type of outlets, or fall within given price ranges. A broad group of products, which are meant for essentially for similar uses and possess reasonably similar physical characteristics, constitute a product line. For example, a range of ice creams from Amul is its product line. Product line of ice cream from Amul

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple) Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta) Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic) 16

Product Line Decisions

Taking of decisions or changing the compositions of the product line, by either adding or subtracting the products, depending on number of factors: Consumer preference, the tactics of competitors, the firms cost structure, changes in market demand, buying habits, marketing influences, product influences, company objectives, product specialization, and elimination of obsolete products.

Product Mix
A product mix is the set of all product lines and items that a particular seller offers for sale to buyers. Product mix need not consist of related products. It is a collection of products manufactured or distributed by a firm. Product mix is also known as Product Assortment. It has four main characteristics: Length, Width, Depth, and Consistency. Product Mix of Amul Milk Co-operative Breadspreads:

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos 17

UHT Milk Range:

Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) 18

Amul Masti Spiced Butter Milk Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple) Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta) Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate) Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

Amul Milk Co-operative has 15 Product Lines. Amul Milk Co-operative has 90 and more Products are sold. Length (No. of Items) = 90 Items. Width (No. of Lines) = 15 Product Lines. Depth = 90/15 = 6.

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Branding Strategy
Here the word Branding Strategy means to make strategies to create and increase brand awareness in the market, consumers, and society. Branding is the practice of giving a specified name to a product or group of products of one seller. Branding is the process of finding and fixing the means of identifications. It is a process by which the product is branded.

Brand
American Marketing Association defined brand as, The use of a name, term, sign, symbol or design or a combination of these, to identify the product of a certain seller from those of competitors.

Types of Brand
1. Individual Brand: A firm may decide upon a policy of adopting distinctive brands for each of its products. 2. Family Brand: The term family brand refers to one brand name which a firm adopts for a variety of its products. For example Amul Milk Co-operative for its Milk Products. 3. Company Brand: We may have for all products the name of the company or the producer. When a firm manufactures many products, then this type of brand is used. 4. Combination Device: Products have individual names and company brands to indicate the firm producing them. 5. Private or Middle mans Brand: Such brands are owned and controlled by middlemen rather than manufacturers. Manufacturer introduces his products under a distributors brand name.

Brand Equity
Brand Equity is the added value endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm. The premise of customer based brand equity models is that the power of a brand lies in what customers have seen, read, heard, learned, thought, and felt about the brand over time. In other words, the power of a brand lies in the minds of existing or potential customers and what they have experienced directly and indirectly about the brand.

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Packaging
The packaging of a consumer product is an important part of the marketing plan. Packaging is the sub-division of the packing function of marketing. Packaging means wrapping of goods before they are transported or stored or delivered to a consumer. It is being defined as follows: An activity which is concerned with protection, economy, convenience and promotional considerations. The growth of packaging The following are the factors which influence the growth and recognition of packaging as a marketing tool: 1. Self Service: In this the product is packed and kept ready for sale. Packages attract the attention of the consumers. So, good package is a must. 2. Consumer Affluence: Consumers are willing to pay a little more for conveniences, appearance, dependability, and prestige for better packages. 3. Company and Brand Image: To enjoy a distinctive attraction, there must be a good brand and packaging. 4. Innovational Opportunity: Innovative packaging can bring large benefits to consumers and profit to producers.

Labeling
Label is a part of product, which carries verbal information about the product or the seller. It may be a part of package, or it may be a tag attached directly to the product. The producer gives necessary information to the consumers through the label. The act of attaching or tagging the labels is known as labeling. Labels are of three types: Brand Label, Grade Label, and Descriptive Label. Functions of Labeling It enables the producer to give clear instructions about the uses of product. Price Variations are avoided by printing the price on labels. Manufacturer-Buyer relation is established. It encourages producer to make only standard products. Buyers can easily identify the product. Information on Label Brand name Address of the producer Ingredients of product Directions for the use Precautionary measures Nature of the product Date of Packaging and Expiry Maximum Retail Price (M.R.P.) 21

Product Life Cycle

As everybody has life, a product also has its life. Industrial goods may have longer life than consumer goods. When a product idea is commercialized, the product enters into the market and competes with the rivals, for making sales and earning profits. As there is life cycle term for living things, same it is treated to product as product life cycle or product market life cycle. FIG. 3.1. Product Life Cycle

As we can see that there are four stages in the life cycle of a product. Every product moves through a life cycle, having four phases and they are as follows: Introduction Growth Maturity Decline Introduction: This is the first stage in the life of the product. This is an infant stage. The new product means A product that opens up an entirely new market, replaces an existing product, or significantly broadens the market for an existing product. The initial stage needs greater amount of investment for development. Growth: The product satisfies the market. In this stage, a product gains acceptance from the part of consumers and businessmen. Sales of product increase. Profit also increases. This is the stage where competitors appear along with the substitute products in large numbers. The success of firms depends upon the efficient manufacturing and distributing systems of the product in the market.

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Maturity: At this stage, keen competition increases. Sales continue to increase for a while, but at a decreasing rate. Market expenses increase, even after mark down prices, which enables to face competition. Thus, profit is thinned. Overall marketing effectiveness becomes the key factors in this stage. Decline: When sales start declining, buyers go for newer and better products. This is because of changes in technologies, fashion, taste & preferences. At this stage, the product cannot stand in the market; many firms withdrew from the market, when sales and profit decrease. Price becomes the competitive weapon. Sometime, the same product is introduced in new form according to the technology, taste, preference, fashion. Thus, it was a products life cycle. In Amul, there is no scope of decline in the products life cycle because the products are of daily used by every one in the market.

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Chapter: 4 Price
Meaning
Pricing assumes a significant role in the competitive economy. Price is the main factor which affects the sales of a product and organization. A good price policy is of great importance to the producers, wholesalers, retailers, and the consumers. Marketers try to achieve their long run pricing objectives through both price policies and price strategies. If the price is low the buyers will increase; and if the price is high the buyers will decrease. In early stages of men, prices were set by both sellers and buyers after bargaining with each other. Now in the competitive economy, development of large business aims to have one price policy. In certain cases, the buyer looks at the price as an indicator of product quality. The buyer believes that high price high quality; and low price low quality. Prices play an important role in the economy. The time within which the product is sold varies. The goods, which are of a perishable nature and frequent changes of style, may not be stocked for a long time. In the case for durable goods, they can be stocked for a longer period of time, in the hope of getting favorable price rise. Holding the stock depends upon the financial resources of business organization and the perishability of the goods.

Definition of Price
Price is the exchange value of goods and services in terms of money. Price of a product or service is what the seller feels it worth, in terms of money, to the buyer. FIG .4.1. Reasons for which you pay a price

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Pricing Objectives
To perform the marketing job efficiently, the management has to set goals first. Pricing objectives are logically related to the companys overall goal or objectives.

Pricing for Target Returns

Business needs capital, i.e., investment in the shape of various types of assets and working capital. When a businessman invests capital in the business, he calculates the probable return on his investment. A certain rate of return on investment is aimed. Then, the price is fixed accordingly. The price includes the predetermined average return. This is seller oriented policy.

Market Share
The target share of the market and the expected volume of the sales are the most important considerations in pricing the products. Some companies adopt the main pricing objective so as to maintain or to improve the market share towards the product. A good market share is the better indication of progress. For this, the firm may lower the price, in comparison to the rival products, with a view to capture the market.

To meet or prevent the competition

The pricing objective may be to meet or prevent competition. While fixing the price, the price of similar products, produced by other firms, will have to be considered. One has to look the prices of rival products and the existing competition and chalk out proper price policy so as to enable to face the competitions in the market.

Profit maximization
Profit earning is the basic goal of a firm. Profit maximization can be enjoyed where monopolistic situation exists. The goal should be to maximize profits on total output, rather than on every item.

Stabilize Price
The prices are designed in such a way that during the period of depression, the prices are not allowed to fall below a certain level and in the boom period, the prices are not allowed to rise beyond a certain level. Thus firms forego maximum profits during periods of short supply products.

Customers ability to Pay

The prices that are charged differ from person to person, according to his capacity to pay.

Resource Mobilization
The products are priced in such a way that sufficient resources are made available for the firms expansion, developmental investment etc. 25

Chapter: 5 Place Meaning

According to American Marketing Association A channel of distribution of marketing channel is the structure of intra company organization units and extra company agents and dealers, wholesalers through which a commodity or product (goods & services) is marketed. According to Richard M. Clavell A channel is the pipe line through which a product flows on its way to the consumer the manufacturers put their products into the pipeline or marketing channel and various marketing people move it along to the consumer at the other end of the channel.

Channels of Distribution Networks

The functions of distribution network or channel of distribution are as follows:

Research
The companies carry on a research in the market for collecting information from the consumers for marketing the product or taking the response for the product.

Promotion
To promote the sales by advertising, increasing commission, providing short term incentives, and free gifts, etc to encourage the trial or purchase of products and services.

Contact
To acquire information from top level of management to bottom level of management, intermediaries, and customers for the delivery of goods and services to the consumers

Matching
To match the quality, features, demand, and sales of the product with that of the rival competitors in the prevailing market.

Negotiating
To marking out the middlemen from the distribution channel for decreasing or reducing the price of the product. In this the middlemen kept are in limited numbers or very less.

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Physical Distribution
To carry out the physical product or material service to the customer or consumer directly or indirectly through dealers, wholesalers, retailers.

Finance
To acquire finance from the market in the form of loans, mortgaging properties, cash credit from banks, advances, acquiring fund from the markets, societies, families, etc.

Risk Taking
To becoming aware of future risks and uncertainties which may occur in future. So the company tries to take decisions to avoid such type of risks. Or take decisions for less risk channels.

Level of channels of distribution

There are four level of channel of distribution in the market. They are as follows: zero level, one level, two level, and three level.

Zero level
In this level the marketer uses the way of direct contact with the consumer for the marketing of the product. There are no intermediaries such as distributors, wholesalers, retailers in between the company and the consumer. In Amul, there are small dairy shops or cafe where the consumer can buy its products directly from the company. Advantages 1. It takes lower time to supply the product. 2. The cost of the product is reduced with intermediaries. 3. Target market decreases with the intermediaries. 4. With increase in profit. It gives direct satisfaction. Disadvantages 1. There is no increase in the market. 2. Due to lack of intermediaries the market could not be expanded. 3. Profit of the company is limited or stabilized. 4. Could not know about the strategies & features of the company.

One level
In this level there is only one intermediary for the marketing of or selling the product of the company to the consumer at a limited percent of profit. This intermediary is known as retailer. In Amul, the firm distributes the milk, curd and buttermilk packets to the different dairy stores for the sales of the product to the consumers at a specific rate printed on the packets of the milk. 27

Two levels
In this level there are two intermediaries through which the product passes on to the consumers. In this level the two intermediaries are distributors and retailers. The price of the product is printed on the packaging after calculating the profit share of the distributor and retailer. In Amul, the firm distributes butter, cheese, chocolates, brown beverages, etc to the distributor who then supplies to the retailer. At last the consumer buys the product from the retailer for the final consumption.

Three levels
In this level there are three intermediaries through which the product passes on to the consumers. The intermediaries are distributor, wholesalers, and retailers. The price of the product is printed on the packaging after calculating the profit share of the distributor, wholesalers and retailers. In Amul, the firm distributes sweets, brown beverages, cool flavored milk, ghee, chocolates, etc to the distributor who supplies to wholesalers in different regions. Retailers purchase from wholesalers and sell to consumer for the consumption of product. FIG .5.1. Consumer and Industrial Marketing channels

Thus, Amul milk co-operative, has adopted all the four levels of distribution channels according to the type and nature of the product. Amul, itself has different wholesalers and retailers for sweets, brown beverages, milk powder, etc. and it also has its own distribution channels which supplies milk, curd, flavored milk, butter, cheese, etc to supply to the consumers through retailers. It has its own parlours where it sells its products directly to consumers. So, Amul milk cooperative, has adopted all the four levels of channels of distribution.

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Intermediaries
The intermediaries are those marketing people who markets or sells the product of a company to the lower level of the market which may be of retailers or directly the consumers. The intermediary group consists of wholesalers and retailers. These intermediaries provide services to the customers and companies. They are being paid money on behalf of providing services to company and consumers.

Wholesaling
Wholesaling includes all the activities involved in selling goods or services to those who buy for business use or resale to consumers. Wholesalers are also called as distributors. Wholesaling excludes manufacturers because they are primarily engaged in production, and it excludes retailers. Wholesalers differ from retailers because they pay less attention to promotion, atmosphere, and location as they deal with business customers for large transactions with larger trade area than retailers. Functions performed by Wholesaling Selling and promoting Wholesalers sales force help manufacturers reach many small business small business customers at a relatively low cost. Wholesalers have more contacts, and often buyers trust wholesalers more than they trust a distant manufacturer. Buying & Assortment Building Wholesalers are able to select items and build the assortments their customer need, saving the customers considerable work. Bulk Breaking Wholesalers achieve savings for their customers through buying in large carload lots and breaking the bulk into smaller units. Warehousing Wholesalers hold inventories, thereby reducing inventory costs and risks to suppliers and customers. Transportation Wholesalers can often provide quicker delivery to buyers because they are closer to buyers. 29

Financing Wholesalers finance customers by granting credit, and finance suppliers by ordering early and paying bills on time. Risk Bearing Wholesalers absorb some risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence. Market Information Wholesalers supply information to suppliers and customers regarding competitors activities, new products, price developments, and so on. Management services & counseling Wholesalers often help retailers improve their operations by training sales clerks, helping the store layouts and displays, and setting up accounting and inventory control-systems. They may help industrial customers by offering training and technical services.

Retailing
Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling goods or services to final consumers whether it is a manufacturer, wholesaler, or retailer is doing retailing. Functions performed by Retailing Retailers can position themselves as offerings one of the four levels of services. Self-service Self service is the cornerstone of all discount operations. Many customers are willing to carry out their own locate-compare-select process to save money. Self-selection Customers find goods on their own or by self in the store, although they can ask for assistance. Limited Service These retailers carry more shopping goods, and customers need more information and assistance.

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Full service Sales people are ready to assist in every phase of the locatecompare-select process. Customers who like to be waited on prefer this type of store. The high staffing cost, along with the higher proportion of specialty goods and slower-moving items and the many services, results in high cost retailing. By combining two service levels (low & high) and two assortment-breadth levels (narrow & broad), we can distinguish the four broad positioning strategies available to retailers. Thus, these are the two intermediaries, Wholesaling and Retailing which provides service to the manufacturer by selling its products to the customers & consumers, and to the customers & consumers for providing them products according to their demands to the intermediaries. With these they also bear risks but with this they maintain good relationships with both Manufacturers and Customers & Consumers. This creates their importance in the market. Although the manufacturer has capacity to sell the product and the consumer has the capacity to buy from the manufacturer; but both give more importance to the intermediaries as they have more trust on them.

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Chapter: 6 Promotion Meaning

Promotion activities are means by which firms attempt to inform, persuade, and remind consumers--directly or indirectly--about the products and brand that they sell. Promotion is also known as marketing communication. Marketing communication perform several functions for consumers. Consumers can be told or shown how or why a product is used, by what kind of person, and where and when; consumers can learn about who makes the product and the company and brand stand for; and they can be given an incentive or reward for trial or usage. In a sense, marketing communications represents the voice of the brand and are a means by which it can establish a dialogue and build relationships with consumers. Marketing communications allow companies to link their brands to other people, places, events, brands, experience, feelings, and things. It can also contribute to brand equity by establishing the brand in memory and crafting a brand image.

Marketing Communications Mix

The marketing communications mix consists of six major modes of communication:

Advertising
Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor or producer.

Sales Promotion
A variety of short-term incentives to encourage trial or purchase of a product or service.

Events and Experience

Company sponsored activities and programs designed to create daily or special brand related interactions.

Public Relations and Publicity

A variety of programs designed to promote or protect a companys image or its individual products.

Direct Marketing
Use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit response or dialogue from specific customers and prospects.

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Personal Selling
Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

Tools used for marketing communication

Advertisement Print and broad casting ads Packaging outer Packaging inserts Motion pictures Brochures and booklets Posters and leaflets Directories Reprints of ads Billboards Display signs Point of purchase displays Audio visual material Symbols and logos Video tapes Events & Experience Sports Entertainment Festivals Arts Causes Factory Tours Company Museums Street Activities Public Relations Press kits Speeches Seminars Annual Reports Charitable Donations Publications Community Relations Lobbying Identity Media Company Magazines 33

Personal Selling Sales Presentations Sales Meeting Incentive Programs Samples Fairs and Trade shows Direct Marketing Catalogs Mailings Telemarketing Electronic Shopping TV Shopping Fax mail E-mail Voice mail Here, Amul milk Co-operative has adopted many tools from above mentioned one. It has done advertisement through print media, electronic media, billboards, audio-visuals, logos. It also produced many films and is now in current period it is been financing STAR AMUL VOICE OF INDIA an singing contest on Star Plus Channel. So, Amul selects almost maximum tools of promotion to promote its product into the market.

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