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Marketing Notes

Marketing mix
The set of controllable tactical marketing tools-product , price , place, and promotion –that the firm blends to produce the response it wants in the target market

strategic marketing planning
The process of developing and maintaining a strategic fit between the Organization’s goals and capabilities and its changing marketing opportunities . It involves defining a clear company mission setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies .

personal selling
Personal selling is a part of marketing mix which is most effective tool at later stages of the buying process, particularly in building up buyer preferences , conviction , and action. It has got three distinctive qualities such as personal confrontation , cultivation , and Response.

Marketing control

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The process of measuring and evaluating the results of marketing strategies and plans and taking corrective actions to ensure that objectives are achieved.

Types of distribution channels.
A. The different distribution channels are Manufacturer , Dealers , Distributors , Wholesaler ,Retailer, Customer / consumers

marketing management
A. The art and science of choosing target markets and building
profitable relationships with them. This involves getting , keeping , and growing customers through creating , delivering and communicating superior customer value.

marketing research
A. The systematic design , collection , analysis and reporting of data relevant to a specific marketing situation facing an organization.

objective of packing.
A. The two objective of packing are:

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(i)Designing and producing the container or protecting wrapper for a product. (ii) packages should perform many sales tasks such as –from attracting attention , to describe the product , to making the sale.

product mix
A. The set of all product lines and items that a particular seller offers for sale. A company’s product mix has four important dimension: width, length, depth and consistency.

on-line marketing
A. Business through electronic media especially via internet is called on-line marketing. It is a part of direct marketing. There are two types of marketing channels that is commercial on-line services and the internet.

product line
A. A group of products that are closely related because they function in a similar manner , are sold to the same customer groups , are marketed through the same types of outlets, or fall within given price ranges.

features of services marketing
• Intangibility ( services cannot be seen , tasted, felt , heard , or smelled before purchase.

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• Inseparability ( services cannot be separated from their providers) • Variability ( quality of services depends on who provides them and when, where, and how) • Perishability ( services cannot be stored for later sale or use)

product positioning
The way the product is defined by consumers on important attributesthe place the product occupies in consumer’s minds relative to competing products

product
A. Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need is called product

marketing audit
A. A comprehensive, systematic , independent and periodic examination of a company’s environment ,objective, strategies , and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance

advertising budget
A. A fixed amount kept to spend on advertisement is called advertising budget

Any paid form of non personal presentation and promotion of ideas .5 which often depends on its stage in the product life cycle. direct marketing A. Or It is an interactive marketing system that uses one or more advertising media to effect a measurable response and or transaction at any location. mature brands usually require lower budgets as a ratio to sales. In contrast . consumer behaviour A. Direct communication with carefully targeted individual consumers to obtain an immediate Response. advertising A. For eg new products typically need large advertising budgets to build awareness and to persuade consumer’s to try the products. The buying behaviour of final consumers –individuals goods and services for personal consumption is called consumer behaviour. goods or services by an identified sponsor is called advertising. Branding .

Telemarketing describes the use of telephone operators to attract new customers to contact existing customers to ascertain satisfaction levels. Marketing success will require working closely with other company departments. which combine to make up the company’s value delivery network. it is called telesales. A name . suppliers . term . customer markets . sign . competitors and publics. Managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty is called customer relationship management. The different components of marketing environment are as follows:Microenvironment & Macroenvironment Microenvironment : The actors close to the company that affect its ability to serve its customers-the company . marketing intermediaries . In case of routinely taking orders.6 A. customer markets. marketing intermediaries. or design . intended to identify the goods and services of one seller or group of sellers and to differentiate them form those of competitors is called Branding tele-marketing A. or a combination of these . customer relationship management A. competitors and publics. Different components of marketing environment A. suppliers. symbol . . or to take orders.

Consumer markets consist of individuals and households that buy goods and services for personal consumption. purchasing. and distribute its goods to final buyers. resellers and governments. marketing service agencies . marketing management takes other company groups into account-groups such as top management . They provide the resources needed by the company to produce its goods and services. supplier’s problem can seriously affect marketing. producers. and financial intermediaries. natural. research and development . Business markets buy goods and services for further processing or for use in their production process. Marketing intermediaries: firms that help the company to promote . including consumers. operations and accounting. technological. Macroenvironment:-The larger societal forces that affect the microenvironment – demographic . political and cultural forces. Customers: The company needs to study five types of customer markets closely. Finally international markets consist of these buyers in other countries. Suppliers: Suppliers form an important link in the company’s overall customer value delivery system. physical distribution firms . Publics: Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. competitors :-The marketing concept states that to be successful a company must provide greater customer value ad satisfaction than its competitors do. whereas reseller markets buy goods and services to produce public services or transfer the goods and services to others who need them. economic. they include resellers . All these interrelated groups form the internal environment.7 The company: In designing marketing plans . . finance . sell . Thus. marketers must do more than simply adapt to the needs of target consumers.

and behaviour. clothes . marketers often define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each stage. age. Cultural environment: Institutions and other forces that affect society’s basic values. Natural environment:-Natural resources that are needed as inputs by marketers or that are affected by Marketing activities. Government agencies . furniture. Tastes in food . Technological environment:-forces that create new technologies . lifestyle. and recreation are often age related. occupation and other statistics are the aspects which contribute to Demographic environment Economic environment:-It includes the factors that affect consumer buying power and spending patters. occupation. economic situation . creating new product and market opportunities Political environment: Laws. location.8 Demographic environment: The study of human population in terms of size. Personal determinants include Age and life cycle stage . preferences. perceptions. race . personal determinants of consumer behaviour a. Traditionally family cycle . brand personality. Age and life-cycle stage: People change the goods and services they buy over their lifetimes. Buying is also shaped by the stage of the family life cycle-the stage through which families might pass as they mature over time. personality . and pressure groups that influence and limit various organizations and individuals in a given society. density .

lawyers and doctors. single marrying later in life. fashion . computer software companies will design different products for brand managers. Thus. childless couples . social issues . It involves measuring consumer’s major AIO dimensions. whereas executives buy more business suits. same sex couples . nontraditional stages such as unmarried couples. Blue collar workers tend to buy more rugged work clothes. and occupation may have quite different lifestyles. and re price their products closely. social class. Lifestyle is a person’s pattern of living as expressed in his or her psychographics. Marketers of income-sensitive goods watch trends in personal income. Personality refers to the unique . shopping . business. social events ) . Lifestyle: People coming from the same subculture. Personality and self-concept: Each person’s distinct personality influences his or her buying behavior. If economic indicators point to a recession. and interest rates. family . savings. reposition. Marketers try to identify the occupational groups that have an above average interest in their products and services. extended parents and others. marketers can take steps to redesign . Occupation : A person’s occupation affects the goods and services bought. however marketers are increasingly catering to a growing number of alternatives. interest ( food . sports. Today.9 stages include young singles and married couples with children. single parents .activities ( work . recreation) and opinion ( about themselves. A company can even specialize in making products needed by a given occupational group. Economic situation: A person’s economic situation will affect product choice. hobbies . engineers. products ) Lifestyle captures something more than the person’s social class or personality . accountants. It profiles a person’s whole pattern of acting and interacting in the world.

spirited . through market segmentation ( Dividing a . and up to date) 3. As a first step. dominance.10 psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. Personality is usually described in terms of traits such as selfconfidence . A brand personality is the specific mix of human traits that may be attributed to a particular brand. sophistication ( upper class and charming) 5. One researcher identified five brands personality traits. sociability. wholesome and cheerful ) 2. imaginative. The following figure depicts the process of marketing. Consumers stand in the center. adaptability and aggressiveness. Excitement ( daring . The goal is to build strong and profitable relationship with customers. defensiveness. This idea is that brands also have personalities . Competence ( reliable . autonomy . intelligent and successful ) 4. 1. Personality can be useful in analyzing consumer behaviour for certain product or brand choices. and that consumers are likely to choose brands whose personalities match their own. Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort. honest . Ruggedness ( outdoorsy and tough ) marketing process A. Sincerity ( down to earth .

product life cycle is the course of a products sales and profits over its life time) . and positioning ( arranging for a product to occupy a clear.product . the company decides which customers it will serve and how. price . characteristics. then divides it into smaller segments. targeting ( The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter). the company engages in marketing analysis. planning( The marketing logic by which the business unit hopes to achieve its marketing objectives) . In other words.that the firm blends to produce the response it wants in the target market) made up of factors under its control – product . and promotion. It identifies the total market. price. distinctive . or behaviour and who might require separate products or marketing mixes) . selects the most promising segments. and desirable place relative to competing products in the minds of great consumers ). and control( the process of measuring and evaluating the results of marketing strategic and plans and taking corrective action to ensure that objectives are achieved). Through these activities. Product life cycle and different stages of product life cycle or marketing strategies at each stage Meaning: The period during which a product lives in the market is termed as product life cycle .11 market into distinct groups of buyers who have distinct needs. place and promotion. and focuses on serving and satisfying these segments. the company designs a marketing mix( the set of controllable tactical marketing tools. To find the best marketing mix and put it into action.implementation(the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objective). Next . the company watches and adapts to the actors and forces in the marketing environment product life cycle stages A.

The firm gives top pririority to sales volume and quality maintenance may have secondary preference. because of the heavy expenses of product introduction . In this stage . Growth: It is a period during which the product is accepted by consumers and the traders. Attracted by the opportunities of profits. it is bound to enter its declining stage i. Decline 1. During this period the sales revenue begins to grow but the rate of growth is very slow. decay in its sales) Stages in the product life cycle :1. They will introduce new product features . Growth 3. Maturity 4. as its related to a given particular market. Profit increases during the growth stage . Prices remain where they are or fall only slightly. Products are brought continuously on a trial basis . weakness may be revealed and they must be properly removed. new competitors will enter the market.. attains maturity and the point of saturation in that market and then sooner or later. and the market will expand . Promotion spending is relatively high to inform consumers of the new product and get them to try it.12 Product life cycle should be preferably termed as product market life cycle . Profits are nonexistent in this stage . grows. . The increase in the competitors leads in an increase in the number of distribution outlets. Introduction: It starts when the product is introduced in a market. The product life cycle concept indicated that the product is boom or introduced .e. and sales jumps just to build reseller inventories . Much money is required to attract distributors and buy their inventories. Introduction 2. Saturation 5. 2. effective distribution and advertising are considered as a key features.

A need becomes a motive when it is aroused to a sufficient level of intensity. arising from states of tension such as hunger. At this stage price becomes the primary weapon of competition and it is necessary to reduce considerable expenditure on advertising and sales promotion . or discomfort. Some are biological. During this stage keen competition brings pressure on prices. Psychologist has developed theories of human motivation.Cost control becomes the key to generate profits. Additional expenditure is involved in products modification and improvement advertising and sales promotion . Increasing marketing expenditure and falling prices will reduce profits. Sales decline for many reasons.have quite different meanings for costumer analysis and marketing. shifts in consumer states. 4. Motivation. including technological advanced. thirst. Most products are in the maturity stage of the cycle. arising from the need for recognition.13 3. psychological determinants of consumer behaviour A person’s buying choices are further influenced by four major psychological factors. esteem or belonging.It may be gradually displaced by some new innovation. Maturity: This stage normally lasts longer than the previous stages. and it poses strong challenges to marketing management. A person has many needs at any given time. Overall marketing effectiveness becomes the key factor in this stage. perception . and increased competition It may be driven out of the market by other new innovations. and beliefs and attitudes Motivation: A need that is sufficiently pressing to direct the person to seek satisfaction of the need. Others are psychological. and therefore cost of marketing management deals with the product. Two of the most popular – the theories of Sigmund freiud and Abraham maslow. learning . Decline:-Under the decline stage. . the sales decline .

protection) Physiological needs (hunger. smell.14 Maslow’s hierarchy of needs Self actualization needs ( self –development and realization) Esteem needs ( self esteem . love) Safety needs (security. they learn. Perception is the process by which people select. touch and taste. People can form different perceptions of the same stimulus because of three perceptual processes: selective attention. and selective retention. and interpret information to form a meaningful picture of the world. Learning describes changes in an individual’s b behaviour arising form experience. All of us learn by the flow of information through our five senses. People are exposed to a great amount of stimuli every day. and interprets this sensory information in an individual way. organizes. How the person acts is influenced by his or her own perception of the situation. selective distortion. organize. Learning theorists say that most . each of us receives. Learning: When people act. recognition. status) Social needs (sense of belonging. However. thirst) Perception: A motivated person is ready to act. hearing. Sight.

because these beliefs make up product and brand images that affect buying behaviour. and providing positive reinforcement. These. stimuli. Stimulus is object Cues are minor stimuli that determine when. and reinforcement. In other words. Marketers are interested in the beliefs that people formulate about specific products and services. it is bound to enter its declining stage i. where. A belief is a descriptive thought that a [person has about something. of moving toward or away or away from them. Learning occurs through the interplay of drives. decay in its sales) . product life cycle is the course of a products sales and profits over its life time) Product life cycle should be preferably termed as product market life cycle . cues . Attitude describes a person’s relatively consistent evaluations. People have attitudes regarding religion. A practical significance of learning theory for marketers is that they can build up demand for a product by associating it with strong drives. Attitude put people into a frame of mind of liking or disliking things.e. in turn influence their buying behaviour.15 human behaviour is learned. music. cues. people acquire beliefs and attitudes. responses . and how the person responds. marketing strategies at each stage of product life cycle Product life cycle and different stages of product life cycle or marketing strategies at each stage Meaning: The period during which a product lives in the market is termed as product life cycle . If some of the beliefs are wrong and prevent purchase. politics. as its related to a given particular market. food and almost everything else. The product life cycle concept indicated that the product is boom or introduced . the marketer will want to launch a campaign to correct them. grows. using motivating. feelings and tendencies toward an object or idea. clothes. attains maturity and the point of saturation in that market and then sooner or later. Drive is a strong internal stimulus that calls for action. Beliefs and Attitudes: Through doing and learning..

Saturation 5. Introduction stage: (a) Product strategy : In case of product . (d) Advertising strategy: The company build product awareness among an early adopters and dealers.16 Stages in the product life cycle :1. build awareness and interest in the mass market (e) Sales promotion: The company reduce ot take advantage of heavy consumers demand. (b) Price strategy: The company here fixes high price during this stage because in order to promote the basic sale of a product therefore company uses cost-plus. service . Growth stage:- (a) Product strategy : The company offer product extensions . warranty . company will offer a basic product rather then extension of product in different areas. (e) Sales promotion: The company uses heavy sales promotion in this stage. (b) Price strategy: The company fixes the price in such a way to penetrates the market (c) Distribution strategy: The company build intensive distribution (d) Advertising strategy: The co. (c) Distribution strategy: The company will build selective distribution with an intention to go for potential market. 2. Decline Marketing strategies at each stage of Product life cycle:1. Introduction 2. Growth 3.. . Maturity 4.

Thus. The new view is that marketing is the science and art of finding . (e) Sales promotion: The company increase to encourage brand switching. build more intensive distribution (d) Advertising strategy : The company here stress brand differences and benefits. diversify brand and models (b) Price strategy: The company fix the price to match or beat competitors (c) Distribution strategy: The co. facing an expanding economy and . Maturity stage: (a) Product strategy: the co. customer relationship management A.. long term relationships with them. phase out weak items.17 3. and growing profitable customers. (c) Distribution strategy :The company go selective phase out and unprofitable outlets... They are using customer relationship management to retain current customers and build profitable . retaining. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Decline stage: (a) Product strategy: The co. many companies took their customers for granted. (d) Advertising strategy: The company reduce to the level needed to retain hard- core loyal. (e) Sales promotion strategy: Here the sales promotion reduce to minimal level. today’s companies are growing beyond designing strategies to attract new customers and create transactions with them. Why the new emphasis on retaining and growing customers? In the past. 4. (b) Price strategy: The company fixes a cut price.

Satisfies customers are more likely to be loyal customers. and loyal customers are more likely to give the company a larger share of their business. Companies could keep filling the marketing bucket with new customers without worrying about losing old customers through holes in the bottom of the bucket. a company must constantly seek ways to deliver superior customer value and satisfaction.all of these factors mean that there are fewer customers to go around. Growing markets meant a plentiful supply of new customers. A customer buys form the firm that offers the highest customer perceived value which is the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to these of competing offers. The key to building lasting customer relationship is to create superior customer value and satisfaction. companies could proactive a” leaky bucket” approach to marketing. and overcapacity in many industries. Many companies are now fighting for shares of flat or fading markets. Customers often face a bewildering array of products and services form which to choose. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. it costs 5 to 10 times as much to attract a new customer than to keep an existing one. Attracting and retaining customers can be a difficult task. the costs of attracting new consumers are rising. To attract and keep customers. . more sophisticated competitors . The value of the entire stream of purchases that the customer would make over a lifetime of patronage is called customer lifetime value. on average. Thus . Changing demographics . In fact. companies today face some new marketing realities. Companies are also realizing that losing a customer means losing more than a single sale. However.18 rapidly growing markets.

Highly satisfied customers produce several benefits for the company. So. telephone. It is the most visible form of all promotion tools which involves specific tools such as : newspapers. public relations. Maintaing a separate department for customer relationship management is a must and should be handled cautiously. magazines . the relationship between customer satisfaction and loyalty varies greatly across industries and competitive situation. However. They talk favorably to others about the company and its products remain loyal for a longer period. direct mail .19 Customer satisfaction is the extent to which a product’s perceived performance matches a buyer’s expectation. Promotion mix is the specific mix of advertising . Satisfied customers are less price sensitive. Nature of advertising:- . goods or services by an identified sponsor.. components of promotion mix A. internet etc. and direct marketing tools that the company uses to pursue it’s advertising and marketing objective Advertising: It is an paid form of non personal presentation and promotion of ideas . personal selling. radio .outdoor postures. television. sales promotion.

Nature of sales promotion:Positive impact: • Sales promotion attracts consumer attention . premiums and others. sound and coloour. Television advertising can reach huge audiences • Beyond its reach. offers strong incentives to purchase. • As usual public nature . Although it reaches many people quickly. advertising can be used to build a long term image for a product ( such as coca-cola ads) which is triggering sales. Negative impact: • Advertising also has some shortcomings. print. • Eg. and it enables the seller to repeat a message many times. . It includes a wide assortment of tools such as coupons.20 Positive impact:Advertising can reach masses of geographically dispersed buyers at a low cost per exposure . Sales promotion: sales promotion consists of short-term incentives to encourage purchase or sale of a product or service. cent-off deals . • On the other hand. advertising is impersonal and cannot be as directly persuasive as can company’s sales people. • It can be used to dramatize product offers and to boost sagging sales. large scale advertising says something positive about the seller’s size. consumers tend to view advertised products as more legitimate ( lawful) • Advertising is also very expressive because it allows the company to dramatize its products through the artful use of visuals. popularity and success. • Advertising can carry on only a one-way communication with the audience and they does not feel that it has to pay attention or response • Advertisements through TV require very large budgets. contests .

However.21 • It invites and reward quick response ( advertising says “Buy our product” sales promotion says “Buy it now. Cash refund offer ( rebate) : Offer to refund part of the purchase price of a product to consumers who send a “Proof of purchase” to the manufacturer. sweeptakes. sales promotion is not effective as advertising or personal selling in building long-run brand preference. The following are major tools of sales promotions methods Sample: A small amount of a product offered to consumers for trial. Premium: good offered either free or at low cost as an incentive to buy a product. games: promotional events that give consumers the chance to win . given as a gift to consumers. Coupon: Certificates that gives buyers a saving when they purchase a specified product. Price pack ( cents off deal) : reduced price that is marked by the producer directly on the label or package. Patronage reward: Cash or other award for the regular use of a certain company’s product Or service. Negative impact: Sales promotion effects are often short lived. Contests . Advertising speciality: Useful article imprinted with an advertiser’s name . Point of purchase (POP) promotion: Display and demonstration that takes place at the point of purchase or sale.

22 something. . building up a good corporate image. stories and events. Personal selling : Personal selling consists of personal presentation by the firms sales force for the purpose of making sales and building customer relationship. trips or goods. Public relations:. Allowance: Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.Building good relations with the company’s various publics by obtaining favorable publicity . Discount: A straight reduction in price on purchases during a stated period of time.by luck or through extra effort.such as cash . Public relation departments may perform any or all of the following functions:• Press relations or press agentry • Product publicity • Public affairs • Lobbying’ • Investor relations • Development Major public relations tools: • News • Speeches • Special events • Written materials • Audio visual materials • Corporate identity materials • Public service activities etc. and handling or heading off unfavorable rumours.

It involves direct and personal contacts between the seller and the customer. plans . trade shows and incentive program. budget .23 In other words personal selling is the process of assisting and persuading a prospective buyers to buy a product in a face to face situation. . type of product etc. Personal selling involves specific tools such as sales presentation . Personal selling process Prospecting and qualifying Pre approach Approach Presentation and demonstration Handling objections Closing Follow up The above four components are together known as promotion mix and it is not compulsory that every firm will market the product using all its depend up on the company strategy .

Market segmentation can be defined as the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix.24 segmentation b. According to Philip kotler: “Market segmentation is the sub-dividing of market into homogeneous subsections of customers where any sub-section may conceivably be selected as a market target to be reached with a distinct marketing mix” .

southern . pretestant. single. British. young.25 The major variables that might be used in segmenting consumer markets are as follows:A. south America. married with children.000 . Psychographic & D. 35-49 . 65+ Male . Canada Mexico Pacific. married with children. Geographic B. muslim . 3-4. Hispanic . west north central . 5000-20000. western America . married . Demographic C. suburban . no children. black . Generation X . white Baby boomer . Generation Y North America . new England Under 5000. china . 20000-50000 et Urban . no children Income Occupation Education Religion Race Generation Nationality Under 10. 5+ Young . middle east. Behavioral Geographic World region or country country region city or metro size Density Climate Demographic Age Gender Family size Family life-cycle Under 6 . mountain. female 1-2 . French etc Eg: North America . married. India . hindu etc Asian .000-20000. supervisors.10. older. older. 6-11 . 50-64.20000-30000 etc Professional &technical. 12-19 . some high school etc Catholic . jewish. operatives etc Grade school or less. rural Northern . 20-34 . young.

heavy user. special occasion Quality . aware. hostile The above table shows the segmentation of market according to different types of variable which is necessary before advertising or selling the product. economy . medium . lower uppers . strong. speed Nonuser . convenience . . positive. strivers . strugglers Compulsive . Ex-user . medium user . negative. informed . desirous etc Enthusiastic . service . None . gregarious. authoritarian. indifferent . upper uppers Life style Personality Behavioral Occasions Benefits User status User rates Loyalty status Readiness stage Attitude toward product Achievers. interested. potential user etc Light user . upper middles. middle class . upper lowers . absolute Unaware. working class .26 Psychographic Social class Lower lowers. ambitious Regular occasions.

It involves four steps first management first sets specific marketing goals. a company’s environment. the marketing department must practice constant marketing control. strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance matches a buyer’s expectations. Marketing audit is done when deviation occurs at the time of marketing control which is the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved as many surprises occur during the implementation of marketing plans. objectives.27 marketing audit c. independent and periodic examination of . systematic. It then measures its performance in the marketplace and evaluates the causes of any differences between expected and actual A comprehensive.

IT assess the marketing environment . Residential use has also grown. Telephone marketing now accounts for more than38 % of all direct – marketing media expenditures and 36% of direct marketing sales.ore and more companies have begun using them. tele-marketing A. marketing mix. The audit is normally conducted by an objective and experienced outside party. Management then decides which actions make sense and how and when to implement them.866) have been . new toll free area codes (888. not a few trouble spots. The use of 800 numbers has taken off in recent years as . Inbound toll – free 800 numbers are used to receive orders from television and print ads.877.to management. We are all familiar with telephone marketing directed toward consumers. and marketing productivity and profitability. but B2B marketers also use telephone marketing extensively. marketing organization. and as current users have added new features such as toll-fee fax numbers. Marketers use outbound telephone marketing to sell directly to consumers and business. Finally management takes corrective action to close the gaps between its goals and its performance.28 performance. marketing strategy .and sometimes as a shock. accounting for 58% of all telephone marketing sales. The findings may come as a surprise. To accommodate this rapid growth. Tele-marketing is nothing but using the telephone to sell directly to customers-has become the major direct-marketing communication tool. The marketing audit covers all major marketing areas of a business. marketing systems. direct mail. or catalogs. This may require changing the action programs or even changing the goals.

including purchasing convenience and increased product and Service information. In contrast. Lawmakers around the country are responding with legislation ranging from banning unsolicited telemarketing calls during certain hours to letting households sign up for “Do not call” lists.  Sales promotion helps to reinforce the product’s position and build long-term customer relationship. who object to the almost daily “junk phone calls” that pull them away from the dinner table or fill the answering machine. However.29 added. it took almost 30 years before its 8 million numbers were used up.  To expand the target market  To add extra value to the product and develop brand franchise  The develop favorable consumer experience with the product. As a direct marketing Association executives notes “We want to target people who want to be targeted”. 888 area code numbers established in 1996 were used up in only 2 years. the recent explosion in unsolicited telephone marketing has annoyed many consumers. Sales promotion consists of short term incentives to encourage the purchase or sale of a product or service.  Trade and sales force promotions supports the firm’s personal selling process. Properly designed and targeted tele marketing provides many benefits. Most telemarketers support some action against random and poorly targeted telemarketing. . Objectives of sales promotion A. The objectives of sales promotion are as follows: To increase short term sales or to help in building long –term market share. After the 800 area code was established in 1967.

and demands  Marketing offers . services and experience  Value and satisfaction  Exchange. and individual needs for knowledge and self-expression . and safety. These needs were not created by marketers . wants . clothing. transaction and relationship  Markets Needs . wants and demands:Human needs are states of felt deprivation.30 Core concepts of marketing A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. The following are the core concepts of marketing  Needs. They include basic physical needs for food. they are a basic part of the human makeup. social needs for belonging and affection. products . . warmth.

and marketer and competitor information and promises. marketing offers include services. information. market to satisfy a need or want. airline . Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs. In addition to tangible products . and ideas. organizations. Given their wants and resources. Marketing offers. the opinions of friends . Customer satisfaction is a key influence on future buying behavior. wants become Demands.some combination of products. activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Customers form expectations about the value of various marketing offers and buy accordingly. marketing gofers also include other entities. Customer satisfaction with a purchase depends on how well the product’s performance lives up to the customer’s expectations. Examples include banking . Marketing offers are not limited to physical products. rice .and beans. The value proposition is fulfilled through a Marketing offer. When backed by buying power. Value and satisfaction:Consumers usually face a broad array of products and services that might satisfy a given need. services . A person in Mauritius needs food but wants a mango. An American needs food but wants Big mac and soft drink. More broadly . hotel . services and experiences:Companies address needs by putting forth a value proposition . people demand products with benefits that add up to the most value and satisfaction. information. such as persons. and home repair services. a set of benefits that they promise to consumers to satisfy their needs.Products. Satisfied customers buy again and ell others about . tax preparation . How do buyers form their expectations? Customer expectations are based on past buying experiences. lentils .31 Wants are the form human needs take as they are shaped by culture and individual personality. places.

Exchange is the act of obtaining a desired object from someone by offering something in return. interacting sets of markets that are linked through exchange processes. Dissatisfied customers often switch to competitors and disparage the product to others. the marketer tries to bring about a response to some marketing offer. Exchange . Marketers work to understand the needs and wants of specific . and Relationship:Marketing occurs when people decide to satisfy needs and wants through exchange. service . Marketers are keenly interested in markets. in turn. These buyers share a particular need or want that can be satisfied through exchange relationship. Markets:The concept of exchange and relationship lead to the concept of a market. Marketers want to build strong economic and social connections by promising the consistently delivering superior value. A market is the set of actual and potential buyers of a product. A Transaction consists of a trade of values between two parties: In the broad sense. have resources to engage in exchange. Whereas exchange is the core concepts of marketing. Beyond simply attracting new customers and creating transactions. Marketing consists of actions taken to build and maintain desirable exchange relationship with target audiences involving a product . idea. The response may be more than simply buying or trading products and services. the goal is to retain customers and grow their business with the company. or other object. The size of a market depends on the number of people who exhibit the need .32 their good experiences. a transaction. is marketing ‘s unit of measurement . and are willing to exchange these resources for what they want. Each nation’s economy and the whole world economy consists of complex. Transaction .

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. the advertiser must decide what reach and frequency are needed to achieve advertising objectives. Frequency and impact:To select media. frequency . Major steps in selecting advertising media The major steps in media selection are (1) Deciding on reach.the qualitative value of a message exposure through a given medium.33 markets and to select the markets that they can serve best. they develop products and services that create value and satisfaction for customers in these markets. In turn . The advertiser also must decide on the desired media impact. . The result is profitable long –term customer relationship. and impact (2) Choosing among major media types (3) Selecting specific media vehicles (4) Deciding on media timing Deciding on Reach.

fleeting exposure. the more reach. with other media often neglected. less audience selectivity Relatively high cost per Television Direct mail . and impact the advertiser seeks. Three media benefiting greatly from the shift are outdoor advertising. timeliness. So will nature of the product – eg: fashions are best advertised in color magazines and automobile performance us best demonstrated on television. television and magazines have dominated in the media mixes of national advertisers. messages on television may have more impact than messages on radio because television uses sight and sound. Media planners consider many factors when making their media choices. Recently. In general. cable television. Media impact and cost must be reexamined regularly. and impact of each of the major media types. high clutter. low cost per exposure. high believability Good mass. appealing to the senses No ad competition within Limitations Short life. many advertisers are looking for new ways to reach consumers.34 Eg: for products that need to be demonstrated. poor reproduction quality.along audience High absolute costs. combines sight. frequency . the higher the advertising budget will have to be. good local market coverage. Choosing among major media types:The media planner has to know the reach . however as network television cost saor and audiences shrink. sound and motion. for a long time . The media habits of target consumers will affect media choice – advertisers look for media that reach target consumers effectively. small pass.market coverage. broad acceptability . frequency. Medium News paper Advantages Flexibility . and digital satellite television system. The same message in one magazine may be more believable than in another.

low cost. immediately . low attention .The media planner now must choose the best media e the vehicles – specific media within each general type. low message competition. Most firms do some seasonal advertising. The firm cn vary its advertising to follow the seasonal pattern. fragmented audiences Long ad purchase lead time . Deciding on media timing:The advertiser must also decide how to schedule the advertising over the course of a year.They must also consider the costs of producing ads for different media. relatively low impact. Continuity means scheduling ads evenly within a given period. credibility and prestige.35 Radio Magazines the same time Good local acceptance. audience controls exposure Selecting specific media vehicles. or to be the same all year. Whereas newspaper ads may cost very little to produce. good positional selectivity High selectivity . high geographic and demographic selectivity. Some do only seasonal advertising. flashy television ads may cost million. creative limitations Outdoor Internet Small. no guarantee of position Little audience selectivity . demographically skewed audience. to oppose the seasonal pattern.high cost . interactive capabilities Exposure Audio only . Media planners must compute the cost per thousand persons reached by a vehicle . high quality reproduction Flexibility. high repeat exposure. . Suppose sales of a product peak in December and drop in march. low cost. low cost High geographic and demographic selectivity . Finally the advertiser has to choose the pattern of the ads.

designing the marketing channel starts with finding out what target consumers want from the channel. Analyzing customer needs:Marketing channels are part of the overall customer value delivery network. Each channel member adds value for the customer. channel design decision Designing a channel system calls for analyzing consumer needs . Such programs help advertisers to make better decisions about which mix of networks. The company and its channel members may not have the resources or skills needed to provide all the desired services. Setting channel objectives:Companies should state their marketing channel objectives in terms of targeted levels of customer service. So. Recent advances in technology have had a substantial impact on the media planning and buying functions. the company wants to minimize the total channel cost of meeting customer service requirements. In each segment. programs and hours of the day will yield the highest reach per ad dollar. Today. Providing the fastest delivery. greatest assortment . as customers are totally different in their needs – analyzing it in a proper way is necessary to design channel decision.36 Pulsing means scheduling ads unevenly over a given time period. The company should decide which segments to serve and the best channels to use in each case. . and most services may not be possible or practical. Thus. setting channel objectives. for eg: computer software applications called media optimizers allow media planners to evaluate vast combination of television programs and prices. identifying major channel alternatives and evaluating them.

find distributors in the different regions or industries who will buy and carry the new line. its marketing intermediaries. Evaluating the major alternatives:Using economic criteria.Hire manufacturer’s agent. and profitability of different channel alternatives and selects the best one among it. The following channel alternatives might emerge from management discussions: Company sales force: Assign outside salespeople to territories and have them contact all prospects in the area or develop separate company sales forces for different industries. Industrial distributors:. but fewer than all . . to be considered . A firm should identify the types of channel members available to carry out its channel work. Thus. of intermediaries who are willing to carry the company’s products. Given them exclusive distribution . and the responsibilities of each channel member. the number of intermediaries . a company compares the likely sales. it should next identify its major channel alternatives in terms of types of intermediaries.37 The company’s channel objectives are also influenced by the nature of the company. its competitors. Manufacturer’s agency. Companies must also determine the number of channel members to use at each level. product training and promotional support. and the environment . good margins . Three strategies are available : Intensive distribution : Stocking the product in as many outlets as possible. Selective distribution: The use of more than one. Identifying major alternatives:When the company has defined its channel objectives . costs. its products. Exclusive distribution : Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories. a channel involving long-term commitments should be greatly superior on economic and control grounds.independent firms whose sales forces handle related products from many companies – in different regions or industries to sell the new test equipment.

and how they led the consumer to this particular product. The marketer should research consumers to find out what kinds of needs or problems arise. The need can be triggered by internal stimuli when one of the person’s normal needs – hunger .38 Buyer decision process. A need can also be triggered by external stimuli. Buyer decision process consists of the following stages:Need recognition Information search Evaluation of alternatives Purchase decision Post purchase behaviour Need recognition:The buying process starts with need recognition – the buyer recognizes a problem or need. . A. what brought them about . thirst – rises to a level high enough to become a drive.

commercial sources ( advertising . Evaluation of alternatives:The marketer needs to know about alternative evaluation – that is . packaging. the consumer may store the need in memory or undertake an information search related to the need. marketers can take steps to influence the buyer’s decision. Instead. consumer rating organizations) and experiential sources ( handling . how the consumer processes information to arrive at brand choices. Generally . acquaintances) . These include personal sources . the consumer ranks brands and forms purchase intentions. How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. if they know what evaluative processes go on. the consumer is likely to buy it then. Purchase decision:In the evaluation stage. consumers do not use a simple and single evaluation process in all buying situation. examining . displays) public sources ( mass media . using the product) the relative influence of these information sources varies with the product and the buyer. The consumer can obtain information from any of several sources. Marketers should study buyers to find out how they actually evaluate brand alternatives . salespeople . several evaluation processes are at work.39 Information search:An interested consumer may or may not search for more information. Unfortunately . If the consumer’s drive is strong and a satisfying product is near at hand . the consumer’s purchase decision will be to buy . If not. friends . dealers . If not. neighbors . ( family . the consumer is likely to buy it then.

Some sellers might even understate performance levels to boost consumer satisfaction with the product. bad word of mouth travels farther and faster than good word of mouth and can quickly damage consumer attitudes about a company and its products. the greater the consumer’s dissatisfaction . The consumer may form a purchase intention based on factors such as expected income. every purchase involves compromise. on average. Post purchase behaviour:The stage of the buyer decision process in which consumers take further action after purchase . If customers know about the . based on their satisfaction or dissatisfaction. After the purchase. Whereas . However. consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. preferences and even purchase intentions do not always result in actual purchase choice. but two factors can come between the purchase intention and the purchase decision. or discomfort caused by post purchase conflict. This suggests that sellers should make product claims that faithfully represent the product’s performance so that buyers are satisfied. Thus . a dissatisfied customer grips to 11 people. A dissatisfied consumer responds differently. However. expected price . By studying the overall buyer decision. unexpected events may change the purchase intention. Almost all major purchases results in cognitive dissonance. and the second factor is unexpected situation factors . marketers may be able to find ways to help consumers move through it. Clearly. The larger the gap between expectations and performance.40 the most preferred brand. consumer feel at least some post purchase dissonance for every purchase. and expected product benefits . The first factor is the attitudes of others. Thus . Consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. a satisfied customer tells 3 people about a good product experience .

New product introduction stages:• Idea generation • Idea screening • Concept development and testing • Marketing strategy • Business analysis • Product development . and competition. stages of new product introduction A. technology. Given the rapid changes in consumers taste .e. product modifications and new brands through the firms own Research and development efforts. a patent. A firm can obtain new product in tow ways: one is through acquision I. by buying a whole company. Meaning:New product development means the development of original products. The marketer must find ways to either change the product or change consumer perceptions.41 product but are not buying because they hold unfavorable attitudes towards it. The other is through New product development in the company’s own research and development. Product improvement . or a license to produce someone else’s product. companies must develop a steady stream of new products and services.

which helps to spot good ideas and drop poor one as soon as possible. competitors . Idea screening:The purpose of idea generation is to create a large number of ideas. only 10 of those will warrant substantial financial commitment. According to one well known management consultant “ for every 1000 ideas . distributors and suppliers and others. only 100 will have enough commercial promise to merit a small scale experiment . The marketing strategy statement consists of three parts : The first part . Thus. Product development costs rise greatly in later stages. the company gets various ideas by its internal and external sources such as customers . Concept development and testing:An attractive idea must be developed into a product concept. and concept testing calls for testing new product concepts with a group target consumers to find out whether the concept have strong consumer appeal. The first idea reducing stage is idea screening . Product concept is a detailed version of new product idea started in meaningful consumer term. so the company wants to go ahead only with the product ideas that will turn into profitable product. It means the systematic search for new product ideas. the purpose of the succeeding stage is to reduce that number.42 • Test marketing & • Commercialization Idea generation:New product development starts with idea generation. Marketing strategy and development:Designing an initial marketing strategy for a new product based on the product concept. So most of the companies typically generates many ideas in order to find a few good ones. and of those only a couple will turn out to be unqualified success”.

When using . and marketing budget for the first year. Test marketing gives the experience with marketing the product before going to the great expense of full introduction. Product development:Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product or if the product concept passes the business test. Business analysis involves a review of the sales . it moves into product development. and the sales. The company uses the sales and costs figures to analyze the new product’s financial attractiveness. Often products undergo rigorous tests to make sure that they perform safely and effectively. The amount of test marketing needed varies with each new product. the planned product positioning . or when management is not sure of the product or marketing program. The third part of the marketing strategy statement describes the planned long –run sales . and marketing mix strategy. it can evaluate the business attractiveness of the proposal. profit goals . and profit goals for the first few years The second part of the marketing strategy statement outlines the product’s planned price. The R&D department will develop and test one or more physical versions of the product concept. However. or that consumers will find value in them. a company may do a lot of test marketing. costs. distribution.43 describes the target market. and profit projections for a new product to find out whether they satisfy the company’s objectives. Business analysis:Once management has decided on its product concept and marketing strategy. when introducing a new product requires a big investment . the product can move to the product development stage. If they do. Test marketing:Test marketing is the stage of new product development in which the product and marketing program are tested in more realistic market setting. market share .

If the company goes ahead with Commercialization. the national market. or the international market. In other words personal selling is the process of assisting and persuading a prospective buyers to buy a product in a face to face situation. controlled test market or simulated test market. Personal selling process Prospecting and qualifying Pre approach Approach Presentation and demonstration Handling objections . Commercialization:Test marketing gives management the information needed to make a final decision about whether to launch the new product. Personal selling involves specific tools such as sales presentation . process of personal selling A. a region . It involves direct and personal contacts between the seller and the customer.introducing the new product into the market.44 test marketing . ext. The company launching a new product must first decide on introduction timing. trade shows and incentive program.it will face high costs. the company must decide where to launch the new product – in a single location . consumer products companies usually choose one of three approachesstandard test markets. Personal selling consists of personal presentation by the firms sales force for the purpose of making sales and building customer relationship.

They can search for prospects in directories or on the web and track down leads using the telephone and direct mail. special needs . Approach:During the approach step. opening lines. location and possibilities for growth. or to make an immediate sale. salespeople need skill in finding their own. Prospects can be qualified by looking at their financial ability. The sales person should set call objectives . They can ask current customers for referrals. non competing salespeople. the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. The opening lines should be positive to build goodwill from the beginning of the relationship. Or they can drop in unannounced on various offices. Although the company supplies some leads . Pre approach:The step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. how to identify the good ones and screen out the poor ones. The salesperson can consult standard industry and online sources .identifying qualified potential customers. This opening might be followed by some key questions to learn more about the customers needs or by .that is . and bankers. to gather information. acquaintances and others to learn about the company. Sales people also need to know how to qualify leads. dealers . They can cultivate referral sources such as suppliers. Approaching the right potential customers is crucial to selling success.45 Closing Follow up Prospecting and Qualifying:The first step in the selling process is prospecting. volume of business. The sales person must often approach many prospects to get just a few sales. which may be to qualify the prospects . This step involves the salesperson’s appearance . and the follow-up remarks.

Closing:After handling the prospect’s objections. the salesperson now tries to close the sale. the salesperson should use a positive approach. They may kacj confidence . In handling objections. Follow up:Follow-up is necessary if the salesperson wants to ensure customer satisfaction and repeat business. and questions. and online presentation technologies have replaced the flip chart. advanced presentation technologies allow for full multimedia presentations to only one or a few people. or fail to recognize the moment to close the sale. the salesperson should complete any details on delivery time. As in all stages of the selling process . CD’s. Audio-and video cassettes . take objections as opportunities to provide more information. The problem-solver salesperson fits better with today’s marketing concept than does a hard-sell salesperson or the glad –handing extrovert. presenting customer benefits and showing how the product solves the customer’s problems. Today . The sales person then should . The problem can be either logical or psychological . and turn the objections into reasons for buying. Salespeople should know how to recognize closing signals from the buyer. feel guilty about asking for the order . comments. laptop computers with presentation software . Some salespeople do not get around to closing or do not handle it well. the salesperson tells the product “story” to the buyer. purchase terms and other matters. Right after closing. including physical actions. Presentation and demonstration:During the presentation step of the selling process. ask the buyer to clarify any objections . seek out hidden objections . and objections are often unspoken .46 showing a display or sample to attract the buyer’s attention and curiosity. listening to the customer is crucial. Handling objections:Customers almost always have objections during the presentation or when asked to place an order.

47 schedule a follow –up call when the initial order is received. This visit would reveal any problems. assure the buyer of the salesperson’s interest . instruction and servicing. ************************** . to make sure there is proper installation. and reduce any buyer concerns that might have arisen since the sale.