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L-5 Understand Customer &

L-5 Understand Customer &

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Published by Bharat Bansal

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Published by: Bharat Bansal on Apr 04, 2012
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Understanding the customer and his needs.

Marketing Concept • Distinction between Marketing & Selling • Market Problem • Market Information • Market Assessment • Distribution Channel

Customer rather than product is the focus of attention . distribute.Marketing Concept • It is ‘ A total system of interacting business activities designed to plan. price. promote. Customer Orientation.Satisfying product & service to present & potential customer” The main Features are: 1.

Integrated Marketing: Marketing mix is designed & implemented to meet the needs & desire of the customers . 3.2. regular & systematic research is carried out. Marketing Research: In order to understand the customer & their need.

. Formation of appropriate market strategy 3. Integration of all business activities to achieve the desired goal 4.Market Concept requires: Identification & assessment of the target market 2. Evaluation & action to ensure desired level of customer satisfaction 1.

Distinction between marketing & Selling • Marketing: Consumer Oriented Long term goal (mutual satisfaction between buyer & seller). • . It begin before goods are produced & it continues. Selling: It being after goods are produced & finished after transfer of ownership.

Focus Means Objective Selling Concept Product Selling & promotion Profit through Sales Volume Marketing Concept Consumer Needs Integrated Market Profit through Customer Satisfaction .

Marketing Focus on Customer need Customer enjoys importance Selling Focus on Seller needs Product is important Product planning & development is Pressure for selling the goods to be matched with market already produced Integrated approach to achieve long Approach to achieve immediate term goal gain Converting customer need into product Converting product into cash Profit through customer satisfaction Profit through sales .

• SS entrepreneurs are unable to understand the market trends quickly & accurately.Market Problems of Small Business Units SSI cannot withstand stiff competition with large units in terms of quality. • . cost etc • Most of SS entrepreneurs have less appreciation for marketing concept & strategy.

• Weak Bargaining Power: No payment to dealer if sale is at manufacturing place. copper work. • Lack of Sales Promotion: SS have to pay heavy commission to the dealer as their products are not branded.g. e.Case Study Observation(50 SS units) Competition from large/Medium enterprise. • . Carpet weaving.

Type of product.Market Information Price policy.Collect information from personal contact with their dealer • . Channel of distribution & Sales Promotion may be work out with right market information • Large Unit carried out Market researchCollection of data. Analysis of data problem relating to sales • Small scale unit.

ILO etc.Secondary source • • • • • • Press Govt. World bank. Publication Publication of Financial Institutions Foreign Govt & International agenciesUNO. Publication by trade union Private concern & research instituteFICCI (Private) IIFT. IMT. IAMR .

Primary Sources Customer • Dealer • Salesman • .

demand is estimated on the basis of established relationship with some variable e.Market Assessment • • Survey Method: Information is collected from dealer.Analyzed and demand is calculated Statistical method: Say 10% increase every year for past 10 years than 10% increase for next 10 years (Time series Analysis) Under Regression analysis. per capita income . Sales person & expert.g.

Contd. • Leading Indicator Method: Say production of vehicles are up then the related item.petrol & diesel demand will be up ..

Different approach is required for each group of customer.Market Segmentation Market consist of heterogeneous customer in terms of their need. Total market is divided into different segment of different group. Preferences & buying capacity. small scale unit should focus on segment market .

• .Geographic Segmentation Urban • Rural • Backward • Export market : different requirement than domestic.

Toffes & comics focus on children .Demographic Segmentation • • • • • Age Sex Martial status Children Manufacture of toys.

Socio Economic Variable Income level influence the quality and quantity of the product. Lifestyle. Apple Mobile phone Psychological Variable Personality.Peter England. Attitude etc also used for Market Segmentation .

price. place (physical distribution) and promotion .Market Mix It is systematic & balanced combination of product.

Product Price FIRM Place Promotion .

Product: Product design. Warranties. discount. • Price: Basic price. Brand name. Package. Inventory etc of the product • . Transportation. Sales • Place: Middlemen. after sales service. terms of credit etc • Promotion: Advertisement.


groceries  Impulsive--Razor blade. . Jewellery. costly camera etc. dress material. butter. Convenience goods  Staple.Bread.Consumer 1.Ambulance service 2. mixer grinder etc 3. Shopping: Shoes. automobiles. Specialty goods: Fancy dress. cosmetic  Emergency.

• . hand tools etc. Heavy production m/c • Accessories: Welding set. Dairy product • Fabricated material: Leather into shoes. Agriculture product. office stationary etc • Installation: Land & building.Industrial Goods Raw Material: Mineral. yarn into clothes. pig iron into steel • Operating supplies: Lubricant. heating fuel.

shortest route & economical .g BATA (own retail store). door to door selling – Fast.Channel of Distribution Distribution channel is a channel by which product moves from producer to customer Manufacture to customer • Producer consumer e.

washing m/c etc.Wholesaler.Customer Producer Retailer consumer Manufacturer sell to big chain of stores who sell to customer. refrigerator.Manufacturer. It is very popular e. . TV set.g.

Retailer-Customer For small products e. cosmetics Market scheme.Wholesaler.Manufacturer.GPP .g. drugs.

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