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Unit I

Economic Climate

Substantial increase in buying power


A greater variety of goods and services
A greater amount of information about practically anything
A greater ease in interacting and placing and receiving orders
An ability to compare notes on products and services
Websites can provide companies with powerful new information and sales channels
Companies can collect fuller and richer information about markets, customers,
prospects and competitors
Companies can facilitate and speed up communications among employees
Companies can have 2-way communication with customers and prospects
Companies can send ads, coupons, samples, information to targeted customers
Companies can customize offering and services to individual customers
The Internet can be used as a communication channel for purchasing, training and
recruiting
Companies can improve logistics and operations for cost savings while improving
accuracy and service quality

Market: Market means that customers who have purchased or want to purchase a
certain product or service or a group of buyers and sellers for a product
Market

population+

Examples:
How
to
understand
What is the market of Magi?

Purchasing

the

market

How to understand the Magis market?

Classification of Market
Generally, the market is classified on the basis of
1. Place
2. Time
3. Competition
4. Importance
5. Volume of Business
6. Nature of Product
7. On The Basis Of Control

Power

of

Purchasing

Mobile

Need

Phone

On the basis of Place, the market is classified into:


a. Local Market: when people- buyers and seller, belong to a local area or areas, say a town
or village, participate in market, it is called local market. The demands are limited. For
example perishable goods like fruits, fish, vegetables etc. But strictly speaking such markets
are disappearing because of the efficient system of transportations and communications.
Even, then, in many villages such markets exist even today.
b. National Market: for a certain type of commodities, a country may be regarded as a
market, through the fast development of industrialisation. It is called a national market. At
the present stage, in India, the goods of one corner can reach another corner, because of the
efficient systems of communications and transportation facilities. In the present decade
almost all the products have national markets as the markets have widened to a great extent.
c. International Market: International market comes up when buyers and sellers of goods
evolve on world level i.e., involvement of buyers and sellers beyond the boundaries of a
nation.
On the basis of Time, the market is classified into:
a. Very short period market: Markets which deals in perishable goods like, fruits, milk
vegetables etc., are for a very short period. There is no change in the supply of goods, price
is determined on the basis of demand.
b. Short Period Market: In certain goods, supply is adjusted to meet the demand. The
demand is greater than supply. Such markets are known as short period market.
c. Long Period Market: this type of market deals in durable goods.
d. Very Long-term Market Or Secular Market:In secular market, produces can get

adequate time to use new technology in production process and bring new changes in
products. They become able to produce and supply goods according to changed needs,
interest, fashion etc. of customers. Market research becomes helpful in doing so.
On the basis of Competition, the market is classified into:
a. Perfect Market: a market is said to be a perfect market, if it satisfies the following
conditions:
(i) Large number of buyers and sellers are there
(ii) Prices should be uniform throughout the market
(iii) Buyers and sellers have a perfect knowledge of market
(iv) Goods can be moved from one place to another without restrictions
(b) Imperfect Market: A Market is said to be imperfect when

(i) Products are similar but not identical


(ii) Prices are not uniform
(iii) There is lack of communications
(iv) There are restrictions on the movement of goods
Different forms of imperfect market:
(a) A monopoly has only one or single seller
(b) Duopoly has two sellers
(c) Oligopoly has little or fewer number of sellers
(d) Monopolistic competition has many or several number of sellers
On the basis of Importance:
(a) Primary Market: The primary Producers of farm produce sell their output or products
through this type of markets to wholesalers or consumers. Such markets can be found in
villages and mostly the products arrive from villages
(b) Secondary Market: the commodities arrive from other markets.
commonly between wholesales or between wholesalers and retailers.

The dealings are

(c) Terminal Market: The ultimate consumer gets the goods from such markets. Here the
final disposal of goods takes place.
Classification Of Market On The Basis Of Volume Of Business
On the basis of volume of business, type and size, market can be classified in wholesale
market and retail market.
i. Wholesale Market
If a large quantity of products are purchased from producers and sold to different retailers,
this is called wholesale market. In wholesale market, the products are not sold directly to
ultimate consumers. But, if consumers want to buy in large quantity, they can buy from
wholesaler.
ii Retail Market
The market that sells small quantity of products directly to ultimate consumers is called retail
market.
Classification Of Market On The Basis Of Nature Of Product
On the basis of nature of product, market can be classified in two types as follows:
i. Commodity Market
The market where consumer and industrial commodities like clothes, rice, machines,
equipment, tea, soap, fruits, vegetables etc. are bought or sold is called commodity market. In

some market only certain special commodities are bought and sold and in some other
different consumer commodities are bought and sold.
ii. Financial Market
The market and financial instruments is called financial market. In such market, money,
shares, debentures, treasury bills, commercial papers, security exchanges, loan giving or
taking etc are dealt. Dealing of short term fund is called money market and dealing of longterm fund is called capital market.
Classification Of Market On The Basis Of Control
On the basis of control, law, rules and regulations, market can be classified into regulated
market and Non-regulated market.
i. Regulated Market
If trade association, municipality or government controls buying, selling, price of products
etc. it is called regulated market. Such market must follow the established rules, regulations
and legal process and provisions. Otherwise, the businessmen are fined or punished.
ii. Non-regulated Market
If market is freely functioning and is not under control of any government body or any
organization, it is called non-regulated market. In such market, price is determined through
interaction between demand and supply of products and buying and selling takes place. This
market has not to follow any rules, regulations and legal provision
Marketing?
Marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing is meeting needs profitably. Whether the marketer is Procter &
Gamble, which notices that people feel overweight and want tasty but less fatty food and
invents Olestra; or CarMax, which notes that people want more certainty when they buy a
used automobile and invents a new system for selling used cars; or IKEA, which notices that
people want good furniture at a substantially lower price and creates knock-down furniture
all illustrate a drive to turn a private or social need into a profitable business opportunity
through marketing.
Definitions:
Meeting needs profitably. kotler
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, services to create exchanges that satisfy individual and
organizational goals American Marketing Association
Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably -The Chartered Institute of Marketing
The right product, in the right place, at the right time, and at the right price - Adcock et al

Marketing is the human activity directed at satisfying human needs and wants through an
exchange process - Kotler 1980
Marketing is a social and managerial process by which individuals and groups obtain what
they want and need through creating, offering and exchanging products of value with others
- Kotler 1991
Marketing Management is the Art and Science of choosing target markets and getting,
keeping and growing customers through creating, delivering and communicating superior
customer value.
- Kotler
Scope of marketing
Marketers market 10 main types of entities: goods, services, events, experiences, persons,
places, properties, organizations, information, and ideas. Lets take a quick look at these
categories.

GOODS Physical goods constitute the bulk of most countries production and marketing
efforts.

Indias consumer durables industry is valued at $9.7 billion as of 2015. This sector is
expected to grow to $20.6 billion by 2020 and become the fifth largest in the world by 2025.
The consumer durables industry can be categorized into two segments:

Consumer electronics (brown goods) such as televisions, laptops, cameras,


computers, and audio systems

Consumer appliances (white goods) washing machines, kitchen appliances,


microwave ovens, cleaning equipment, air conditioners, and fans

About two-thirds of Indias consumer durables are currently sold in urban markets.
The most popular consumer electronics are color television sets. Electric fans and air
conditioners are popular due to Indias hot climate. Other top consumer durables
include refrigerators and washing machines.

The majority of consumer durables production occurs in Delhi and Uttarakhand in the
north, West Bengal in the east, Tamil Nadu in the south, and Maharashtra and Gujarat
in the west.

Some top domestic companies in India and their products include:

Blue Star central air conditioners, room air conditioners, commercial refrigerators,
cold storages, and specialty cooling products such as process chillers and mortuary
chambers

Godrej Group refrigerators, air conditioners, washing machines, DVD players,


microwave ovens, audio-visual products, and digital-imaging products

Onida Electronics televisions, washing machines, air conditioners, microwave


ovens, and mobile phones

Videocon Industries Limited televisions, DVD players, microwave ovens,


refrigerators, washing machines, air conditioners, and power backup
Top foreign companies active in Indias consumer durables sector include:

Whirlpool Corporation (U.S.) home appliances such as refrigerators, washing


machines, microwave ovens, water purifiers, and power backup

LG Electronics (South Korea) televisions, audio-visual solutions, computers,


mobile phones, refrigerators, washing machines, microwave ovens, air conditioners, and
vacuum cleaners

Samsung Group (South Korea) mobile phones, digital cameras, camcorders,


refrigerators, air conditioners, washing machines, and computers

Daikin Industries, Ltd. (Japan) air conditioners and cooling equipment

Sony Corporation (Japan) televisions, projectors, DVD players, audio systems,


digital cameras, camcorders, and videogame products

Philips N.V. (Netherlands) televisions, home theater systems, DVD players, audio
products, computers, and phones
The capital goods & engineering turnover in India is expected to reach US$ 125.4 billion
by FY17.
The foreign direct investment (FDI) inflows into India's miscellaneous mechanical and
engineering industries during April 2000 to June 2015 stood at around US$ 4,053.72
million, as per data released by the Department of Industries Policy and Promotion
(DIPP).
SERVICES As economies advance, a growing proportion of their activities focus on the
production of services. The U.S. economy today produces a 7030 services-to-goods mix.
Services include the work of airlines, hotels, car rental firms, barbers and beauticians,
maintenance and repair people, and accountants, bankers, lawyers, engineers, doctors,
software programmers, and management consultants. Many market offerings mix goods and
services, such as a fast-food meal.
EVENTS Marketers promote time-based events, such as major trade shows, artistic
performances, and company anniversaries. Global sporting events such as the Olympics and
the World Cup are promoted aggressively to both companies and fans.
EXPERIENCES By orchestrating several services and goods, a firm can create, stage, and
market

experiences. Walt Disney Worlds Magic Kingdom allows customers to visit a fairy kingdom,
a pirate ship, or a haunted house. There is also a market for customized experiences, such as a
week at a baseball camp with retired baseball greats, a four-day rock and roll fantasy camp,
or a climb up Mount Everest.
PERSONS Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and
other professionals all get help from celebrity marketers.10 Some people have done a
masterful job of marketing themselvesDavid Beckham, Oprah Winfrey, and the Rolling
Stones. Management consultant Tom Peters, a master at self-branding, has advised each
person to become a brand.
PLACES Cities, states, regions, and whole nations compete to attract tourists, residents,
factories, and company headquarters.11 Place marketers include economic development
specialists, real estate agents,commercial banks, local business associations, and advertising
and public relations agencies. The Las Vegas Convention & Visitors Authority succeeded
with its provocative ad campaign, What Happens Here, Stays Here, portraying Las Vegas
as an adult playground. In the recession of 2008, however, convention attendance declined.
Concerned about its potentially out-of-step racy reputation, the Authority took out a full-page
Business Week ad to defend its ability to host serious business meetings. Unfortunately, the
2009 summer box office blockbuster The Hangover, set in a debauched Las Vegas, likely did
not help the city position itself as a choice business and tourist destination.
PROPERTIES Properties are intangible rights of ownership to either real property (real
estate) or financial property (stocks and bonds). They are bought and sold, and these
exchanges require marketing. Real estate agents work for property owners or sellers, or they
buy and sell residential or commercial real estate. Investment companies and banks market
securities to both institutional and individual investors.
ORGANIZATIONS Organizations work to build a strong, favorable, and unique image in
the minds of their target publics. In the United Kingdom, Tescos Every Little Helps
marketing program reflects the food marketers attention to detail in everything it does,
within the store and in the community and environment. The campaign has vaulted Tesco to
the top of the UK supermarket chain industry. Universities, museums, performing arts
organizations, corporations, and nonprofits all use marketing to boost their public images and
compete for audiences and funds.
INFORMATION The production, packaging, and distribution of information are major
industries.13 Information is essentially what books, schools, and universities produce,
market, and distribute at a price to parents, students, and communities. The former CEO of
Siemens Medical Solutions USA, Tom McCausland, says, [our product] is not necessarily an
X-ray or an MRI, but information. Our business is really health care information technology,
and our end product is really an electronic patient record: information on lab tests, pathology,
and drugs as well as voice dictation.

IDEAS Every market offering includes a basic idea. Charles Revson of Revlon once
observed: In the factory we make cosmetics; in the drugstore we sell hope. Products and
services are platforms for delivering some idea or benefit. Social marketers are busy
promoting such ideas as Friends Dont Let Friends Drive Drunk and A Mind Is a Terrible
Thing to Waste.
Importance of Marketing
The heart of your business success lies in its marketing. Most aspects of your business
depend on successful marketing. The overall marketing umbrella covers advertising, public
relations, promotions and sales. Marketing is a process by which a product or service is
introduced and promoted to potential customers. Without marketing, your business may offer
the best products or services in your industry, but none of your potential customers would
know about it. Without marketing, sales may crash and companies may have to close.
Importance of marketing can be studied as follows:
(1) Marketing Helps in Transfer, Exchange and Movement of Goods:
Marketing is very helpful in transfer, exchange and movement of goods. Goods and services
are made available to customers through various intermediaries viz., wholesalers and
retailers etc. Marketing is helpful to both producers and consumers.
To the former, it tells about the specific needs and preferences of consumers and to the latter
about the products that manufacturers can offer. According to Prof. Haney Hansen
Marketing involves the design of the products acceptable to the consumers and the conduct
of those activities which facilitate the transfer of ownership between seller and buyer.
(2) Marketing Is Helpful In Raising And Maintaining The Standard Of Living Of The
Community:
Marketing is above all the giving of a standard of living to the community. Paul Mazur states,
Marketing is the delivery of standard of living. Professor Malcolm McNair has further
added that Marketing is the creation and delivery of standard of living to the society.
By making available the uninterrupted supply of goods and services to consumers at a
reasonable price, marketing has played an important role in raising and maintaining living
standards of the community. Community comprises of three classes of people i.e., rich,
middle and poor. Everything which is used by these different classes of people is supplied by
marketing.
In the modern times, with the emergence of latest marketing techniques even the poorer
sections of society have attained a reasonable level of living standard. This is basically due to
large scale production and lesser prices of commodities and services. Marketing has infact,
revolutionised and modernised the living standard of people in modern times.

(3) Marketing Creates Employment:


Marketing is complex mechanism involving many people in one form or the other. The major
marketing functions are buying, selling, financing, transport, warehousing, risk bearing and
standardisation, etc. In each such function different activities are performed by a large
number of individuals and bodies.
Thus, marketing gives employment to many people. It is estimated that about 40% of total
population is directly or indirectly dependent upon marketing. In the modern era of large
scale production and industrialisation, role of marketing has widened.
This enlarged role of marketing has created many employment opportunities for people.
Converse, Huegy and Mitchell have rightly pointed out that In order to have continuous
production, there must be continuous marketing, only then employment can be sustained and
high level of business activity can be continued.
(4) Marketing as a Source of Income and Revenue:
The performance of marketing function is all important, because it is the only way through
which the concern could generate revenue or income and bring in profits. Buskirk has pointed
out that, Any activity connected with obtaining income is a marketing action. It is all too
easy for the accountant, engineer, etc., to operate under the broad assumption that the
Company will realise many dollars in total sales volume.
However, someone must actually go into the market place and obtain dollars from society in
order to sustain the activities of the company, because without these funds the organisation
will perish.
Marketing does provide many opportunities to earn profits in the process of buying and
selling the goods, by creating time, place and possession utilities. This income and profit are
reinvested in the concern, thereby earning more profits in future. Marketing should be given
the greatest importance, since the very survival of the firm depends on the effectiveness of
the marketing function.
(5) Marketing Acts as a Basis for Making Decisions:
A businessman is confronted with many problems in the form of what, how, when, how much
and for whom to produce? In the past problems was less on account of local markets. There
was a direct link between producer and consumer.
In modern times marketing has become a very complex and tedious task. Marketing has
emerged as new specialised activity along with production.

As a result, producers are depending largely on the mechanism of marketing, to decide what
to produce and sell. With the help of marketing techniques a producer can regulate his
production accordingly.
(6) Marketing Acts as a Source of New Ideas:
The concept of marketing is a dynamic concept. It has changed altogether with the passage of
time. Such changes have far reaching effects on production and distribution. With the rapid
change in tastes and preference of people, marketing has to come up with the same.
Marketing as an instrument of measurement, gives scope for understanding this new demand
pattern and thereby produce and make available the goods accordingly.
(7) Marketing Is Helpful In Development Of An Economy:
Adam Smith has remarked that nothing happens in our country until somebody sells
something. Marketing is the kingpin that sets the economy revolving. The marketing
organisation, more scientifically organised, makes the economy strong and stable, the lesser
the stress on the marketing function, the weaker will be the economy.

Modern concepts of marketing


Modern concepts of marketing are broad concepts. It means finding out the consumer and
make the goods as per their needs rather than to provide them what the seller has made. Thus
it is very essential for the seller to get the answer of the question what are the things which
the consumer want? And how these things can be made available to them? Only then he can
survive in the market and earn profit. There are 6 modern concepts of marketing which are
very important from the point of view of marketer.
a) Production concept: The companies which use the production concept generally focus
too narrowly on their own activities because according to this concept the companies think
that consumer will buy the product which comes in the market.
b) Product concept: As per this concept companies give importance to the features or the
quality of the product because in long run the product exists only with the quality it is giving
to the consumer.

c) Selling concept: it is not sufficient for the manufacturer to made the goods and wait for
the customers. Thus, according to this concept it is very important to inform the consumer
about the product which can be done through different ways of promotion.
d) Marketing concept: consumer now a day is treated as GOD. So it is very important
for the manufacturer to produce the product which the consumer wants, so that consumer get
satisfaction and manufacturer earns profit.
e) Consumer concept:- now not only marketing concept is sufficient rather the companies
are using consumer concept which means to give attention to individual consumer it can be
done through one to one marketing.
f) Societal marketing concept: this concept means that company should not only work for
the consumer but also for the society. So the company should make balance between
companys profits, consumer wants and society welfare.

MARKETING ENVIRONMENT
A variety of environmental forces influence a companys marketing system. Some of them
are controllable while some others are uncontrollable. It is the responsibility of the marketing
manager to change the companys policies along with the changing environment.
According to Philip Kotler, A companys marketing environment consists of the internal
factors & forces, which affect the companys ability to develop & maintain successful
transactions & relationships with the companys target customers.
The Environmental Factors may be classified as:
1. Internal Factor
2. External Factor

External Factors may be further classified into:


External Micro Factors & External Macro Factors
Companys Internal Environmental Factors:
A Companys marketing system is influenced by its capabilities regarding production,
financial & other factors. Hence, the marketing management/manager must take into
consideration these departments before finalizing marketing decisions. The Research &
Development Department, the Personnel Department, the Accounting Department also have
an impact on the Marketing Department. It is the responsibility of a manager to companyordinate all department by setting up unified objectives.
External Micro Factors:
1. Suppliers: They are the people who provide necessary resources needed to produce
goods & services. Policies of the suppliers have a significant influence over the marketing
managers decisions because, it is laborers, etc. A company must build cordial & longterm relationship with suppliers.
2. Marketing Intermediaries: They are the people who assist the flow of products from the
producers to the consumers; they include wholesalers, retailers, agents, etc. These people
create place & time utility. A company must select an effective chain of middlemen, so as
to make the goods reach the market in time. The middlemen give necessary information
to the manufacturers about the market. If a company does not satisfy the middlemen, they
neglect its products & may push the competitors product.
3. Consumers: The main aim of production is to meet the demands of the consumers.
Hence, the consumers are the center point of all marketing activities. If they are not taken
into consideration, before taking the decisions, the company is bound to fail in achieving
its objectives. A companys marketing strategy is influenced by its target consumer. Eg: If
a manufacturer wants to sell to the wholesaler, he may directly sell to them, if he wants to
sell to another manufacturer, he may sell through his agent or if he wants to sell to
ultimate consumer he may sell through wholesalers or retailers. Hence each type of
consumer has a unique feature, which influences a companys marketing decision.
4. Competitors: A prudent marketing manager has to be in constant touch regarding the
information relating to the competitors strategies. He has to identify his competitors
strategies, build his plans to overtake them in the market to attract competitors
consumers towards his products.
Any company faces three types of competition:
a) Brand Competition: It is a competition between various companies producing
similar products. Eg: The competition between BPL & Videcon companies.
b) The Product Form Competition: It is a competition between companies
manufacturing products, which are substitutes to each other Eg: Competition between
coffee & Tea.

c) The Desire Competition: It is the competition with all other companies to attract
consumers towards the company. Eg: The competition between the manufacturers of
TV sets & all other companies manufacturing various products like automobiles,
washing machines, etc.
Hence, to understand the competitive situation, a company must understand the nature
of market & the nature of customers. Nature of the market may be as follows:
I. Perfect Market
II. Oligopoly
III. Monopoly
IV. Monopolistic Market
V. Duopoly
5. Public: A Companys obligation is not only to meet the requirements of its customers, but
also to satisfy the various groups. A public is defined as any group that has an actual or
potential ability to achieve its objectives. The significance of the influence of the public
on the company can be understood by the fact that almost all companies maintain a public
relation department. A positive interaction with the public increase its goodwill
irrespective of the nature of the public. A company has to maintain cordial relation with
all groups, public may or may not be interested in the company, but the company must be
interested in the views of the public.
Public may be various types. They are:
a. Press: This is one of the most important group, which may make or break a company.
It includes journalists, radio, television, etc. Press people are often referred to as
unwelcome public. A marketing manager must always strive to get a positive
coverage from the press people.
b. Financial Public: These are the institutions, which supply money to the company.
Eg: Banks, insurance companies, stock exchange, etc. A company cannot work
without the assistance of these institutions. It has to give necessary information to
these public whenever demanded to ensure that timely finance is supplied.
c. Government: Politicians often interfere in the business for the welfare of the society
& for other reasons. A prudent manager has to maintain good relation with all
politicians irrespective of their party affiliations. If any law is to be passed, which is
against the interest of the company, he may get their support to stop that law from
being passed in the parliament or legislature.
d. General Public: This includes organisations such as consumer councils,
environmentalists, etc. as the present day concept of marketing deals with social
welfare, a company must satisfy these groups to be successful.
External Macro Environment:
These are the factors/forces on which the company has no control. Hence, it has to frame its
policies within the limits set by these forces:

1. Demography: It is defined as the statistical study of the human population & its
distribution. This is one of the most influencing factors because it deals with the people
who form the market. A company should study the population, its distribution, age
composition, etc before deciding the marketing strategies. Each group of population
behaves differently depending upon various factors such as age, status, etc. if these
factors are considered, a company can produce only those products which suits the
requirement of the consumers. In this regard, it is said that to understand the market you
must understand its demography.
2. Economic Environment: A company can successfully sell its products only when people
have enough money to spend. The economic environment affects a consumers
purchasing behavior either by increasing his disposable income or by reducing it. Eg:
During the time of inflation, the value of money comes down. Hence, it is difficult for
them to purchase more products. Income of the consumer must also be taken into account.
Eg: In a market where both husband & wife work, their purchasing power will be more.
Hence, companies may sell their products quite easily.
3. Physical Environment or Natural Forces: A company has to adopt its policies within
the limits set by nature. A man can improve the nature but cannot find an alternative for it.
Nature offers resources, but in a limited manner. A product manager utilizes it efficiently.
Companies must find the best combination of production for the sake of efficient
utilization of the available resources. Otherwise, they may face acute shortage of
resources. Eg: Petroleum products, power, water, etc.
4. Technological Factors: From customers point of view, improvement in technology
means improvement in the standard of living. In this regard, it is said that Technologies
shape a Persons Life.
Every new invention builds a new market & a new group of customers. A new technology
improves our lifestyle & at the same time creates many problems. Eg: Invention of
various consumer comforts like washing machines, mixers, etc have resulted in
improving our lifestyle but it has created severe problems like power shortage.
Eg: Introduction to automobiles has improved transportation but it has resulted in the
problems like air & noise pollution, increased accidents, etc. In simple words, following
are the impacts of technological factors on the market:
a) They create new wants
b) They create new industries
c) They may destroy old industries
d) They may increase the cost of Research & Development.
5. Social & Cultural Factors: Most of us purchase because of the influence of social &
cultural factors. The lifestyle, values, believes, etc are determined among other things by
the society in which we live. Each society has its own culture. Culture is a combination of
various factors which are transferred from older generations & which are acquired. Our
behaviour is guided by our culture, family, educational institutions, languages, etc.

The society is a combination of various groups with different cultures & subcultures.
Each society has its own behavior. A marketing manager must study the society in which
he operates.
Consumers attitude is also affected by their society within a society, there will be various
small groups, each having its own culture.
Eg: In India, we have different cultural groups such as Assamese, Punjabis, Kashmiris,
etc. The marketing manager should take note of these differences before finalizing the
marketing strategies.
Culture changes over a period of time. He must try to anticipate the changes new
marketing opportunities.
INDIAN MARKET & ITS ENVIRONMENT
It is difficult to analyze the environmental factors affecting Indian market. Ours is a vast
country with various religions, caste, sub-caste, languages, culture, etc. Each of these factors
operates at different levels & art different places.
1. Vast Market: The Indian market is the second largest in the world considering its
population. If consumption is considered, it has one of the lowest levels of consumption.
Hence, it can be said that majority of the market for various products has been left
untapped. Region-wise, the Indian Market can be broadly classified into Four Parts:
a. Northern Market
b. Southern Market
c. Western Market
d. Eastern Market
2. Rural Market: Majority of the Indians live in rural areas. Hence, rural markets have a
significant influence on the companys marketing strategy
3. Cultural & Religion: India is a country with many religions each religion has its own
culture & most of the Indians are religious. The culture affects the habits of people.
Hence, it has to be considered before deciding what is to be sold.
Eg: Jainism completely prohibits the consumptions of meat. Hence, it is difficult to sell
meat where Jains are living
4. Economic Conditions: India is one of the fastest developing countries. The standard of
living is increasing every year. This indicates that the marketing opportunities in our
country are vast.
5. Government: We are following the policy of mixed Economy i.e., Market is neither
totally free (Capitalism) nor it is fully controlled (Socialism). The government encourages
consumerism & hence he marketers are gradually accepting the marketing concept.
6. Intermediaries: Our country has two types of distribution system. They are:
a. Public distribution system, where essential commodities are directly sold to the
consumers through government agencies.

b. Open distribution system, where the products are sold in the open market. The open
distribution system in our country is the traditional one. The chain of distribution is
once of the most efficient chains of the world. Wholesalers, retailers, brokers, etc are
the intermediaries operating in our country.
7. Press: Press in our country is not as sophisticated as in the developed countries. Most of
the newspapers & magazines are controlled by big business houses.
8. Technology: Most of the company/companies in our country import the technology from
other countries. Investment in research is one of the lowest in the world.
Functions of Marketing
The ultimate aim of marketing is exchange of goods and services from producers to
consumers in a way that maximizes the satisfaction of customers needs. Marketing functions
start from identifying the consumer needs and end with satisfying the consumer needs. The
universal functions of marketing involve buying, selling, transporting, storing, standardizing
and grading, financing, risk taking and securing marketing information. However, modern
marketing has some other functions such as gathering the market info and analyzing that info.
Market planning and strategy formation. To assist in product designing and development also
comes under the marketing functions. The marketing functions have been discussed here
briefly:
1. Market Information: To identify the needs, wants and demands of the consumers
and then analyzing the identified information to arrive at various decisions for the
successful marketing of a firms products and services is one of the most important
functions of marketing. The analysis involves judging the internal weaknesses and
strengths of the organization as well politico-legal, social and demographic data of the
target market. This information is further used in market segmentations.
2. Market Planning: Market-planning aims at achieving a firms marketing objectives.
These objectives may involve increasing market presence, dominate the market or
increase market share. The market planning function covers aspects of production
levels, promotions and other action programmes.
3. Exchange Functions: The buying and selling are the exchange functions of
marketing. They ensure that a firms offerings are available in sufficient quantities to
meet customer demands. The exchange functions are supported by advertising,
personal selling and sales promotions.
4. Product Designing and development: The product design helps in making the
product attractive to the target market. In todays competitive market environment not
only cost matters but also the product design, suitability, shape, style etc. matter a lot
in taking production decisions.
5. Physical Distribution: The physical distribution functions of marketing involve
transporting and storing. The transporting function involve moving products from
their points of production to locations convenient for purchasers and storing function
involve the warehousing products until needed for sale.
6. Standardization and Grading: Standardization involves producing goods at
predetermined specifications. Standardization ensures that product offerings meet
established quality and quantity. It helps in achieving uniformity and consistency in

the output product. Grading is classification of goods in various groups based upon
certain predetermined characteristics. It involves the control standards of size, weight
etc. Grading helps in pricing decisions also. The higher quality goods and services
attract higher prices.
7. Financing: The financing functions of marketing involve providing credit for channel
members or consumers.
8. Risk Taking: Risk taking is one of the important marketing functions. Risk taking in
marketing refers to uncertainty about consumer purchases resulting from creation and
marketing of goods and services that consumers may purchase in future.
9. Packaging, labeling and branding: packaging involves designing package for the
products, labeling means putting information required / specified on a products
covering. Packaging and labeling serve as promotional tools now a days, Branding
distinguishes the generic commodity name to a brand name. For example, Wheat
Flour is a generic name of a commodity while Ashirvad Aata is a brand name. In
service industry, also branding matters a lot.
10. Customer Support: Customer support is a very important function of marketing. It
involves pre sales counselling, after sales service, handling the customer complaints
and adjustments, credit services, maintenance services, technical services and
consumer information. For example, water purifier comes with an onsite service
warranty of 7 years helps in marketing and is an important marketing function as well.
Marketing Mix
Marketing Mix is the policy adopted by the manufacturers to get success in the file of
marketing. Those days, when good were matched with the market, have gone. The modern
market concept emphasises the importance of the consumers preference. The marketing mix
is the combination of the product, the distribution system, the price structure and the
promotional activities. The term marketing mix is used to describe a combination of four
elements the product, price, physical distribution and promotion. These are popularly
known as Seven Ps, These four elements or sub-mixes should be taken as instruments, by
the management, when formulating marketing plans. As such, marketing manager should
have a thorough knowledge about the Seven Ps. The marketing mix will have to be changed
at the change of marketing conditions like economic, political, social etc. Marketing mix a
developed to satisfy the anticipated needs of the identified markets.
Definition:
According to Borden, The marketing mix refers to the appointment of efforts, the
combination, the designing and the integration of the elements of marketing into a
programme or mix which, on the basis of an appraisal of the market forces will best achieve
an enterprise at a given time.
The Marketing Mix 4 Ps:

Product - The Product should fit the task consumers want it for, it should work and it
should be what the consumers are expecting to get.

Place The product should be available from where your target consumer finds it
easiest to shop. This may be High Street, Mail Order or the more current option via ecommerce or an online shop.
Price The Product should always be seen as representing good value for money.
This does not necessarily mean it should be the cheapest available; one of the main tenets
of the marketing concept is that customers are usually happy to pay a little more for
something that works really well for them.
Promotion Advertising, PR, Sales Promotion, Personal Selling and, in more recent
times, Social Media are all key communication tools for an organisation. These tools
should be used to put across the organisations message to the correct audiences in the
manner they would most like to hear, whether it be informative or appealing to their
emotions.

In the late 70s it was widely acknowledged by Marketers that the Marketing Mix should be
updated. This led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner
which added 3 new elements to the 4 Ps Principle. This now allowed the extended Marketing
Mix to include products that are services and not just physical things.

The extended 7 Ps:

People All companies are reliant on the people who run them from front line Sales
staff to the Managing Director. Having the right people is essential because they are as
much a part of your business offering as the products/services you are offering.

Processes The delivery of your service is usually done with the customer present so
how the service is delivered is once again part of what the consumer is paying for.

Physical Evidence Almost all services include some physical elements even if the
bulk of what the consumer is paying for is intangible. For example a hair salon would
provide their client with a completed hairdo and an insurance company would give their
customers some form of printed material. Even if the material is not physically they are
still receiving a physical product by this definition.
Though in place since the 1980s the 7 Ps are still widely taught due to their fundamental
logic being sound in the marketing environment and marketers abilities to adapt the
Marketing Mix to include changes in communications such as social media, updates in the
places which you can sell a product/service or customers expectations in a constantly
changing commercial environment.

Is there an 8th P?
In some spheres of thinking, there are 8 Ps in the Marketing Mix. The final P is Productivity
and Quality. This came from the old Services Marketing Mix and is folded in to the Extended
Marketing Mix by some marketers so what does it mean?
The 8th P of the Marketing Mix:

Productivity & Quality - This P asks is what youre offering your customer a good
deal? This is less about you as a business improving your own productivity for cost
management, and more about how your company passes this onto its customers.
Even after 31 years (or 54 in the case of the original Ps) the Marketing Mix is still very much
applicable to a marketers day to day work. A good marketer will learn to adapt the theory to
fit with not only modern times but their individual business model.

A firms marketing efforts should start and end with the customers. The marketing
mix seven Ps are the important tools or instruments used by the marketing manager in
formulating marketing planning to suit the customers needs. A share in the market and the
goodwill depends upon the marketing plans. Change is constant. The customers need and
desire may change oftenly, because of the change that take place in the market. The
decisions on each element of seven Ps are aimed to given greater consumer satisfaction. The
elements of seven Ps are inter related, complementary and mutually supporting ingredients.
Thus marketing mix is used as a tool towards the customers in order to ascertain their needs,
tastes, preferences etc. Marketing mix must face competition. It must satisfy the demands of
the society. Then firms can attain the objectives profit, market share, return on investment,
sale-volume etc.

Types of Modern Marketing Strategies


Lots of people are talking about all the new forms of marketing a company can pursue. Its
true, certain traditional marketing has been around for a long time and is still used today, but
with the Internet now playing such a huge role in any companys success, people are coming
out with more and more ways to market their products or services. The more we thought
about all the different varieties of marketing, the more we realized there are so many different
ways to promote something. Heres a list of marketing terms that we hope you find useful:
Internet Marketing
Internet marketing is any marketing strategy that takes place online. Also referred to as online
marketing, it encompasses a variety of marketing forms like video advertisements, search
engine marketing and e-mail marketing. It is the opposite of offline marketing, and can also
fall under digital marketing. Internet marketing needs a good approach in areas of design,
development and advertising. A company with a total web site marketing plan will have more

success online than one that has just designed a web site without thinking of how to market
their company through it.
Offline Marketing
Offline marketing, the opposite of online marketing, includes all forms of marketing that
arent done on the Internet. Examples of offline marketing are local advertising in
newspapers and on television. In todays marketing world, companies are finding ways to
leverage their offline marketing campaigns with their online ones, making them complement
each other.
Outbound Marketing
When you think of marketing, the different forms you come up with are mostly outbound
marketing (also called traditional marketing). In fact, the majority of companies today are
using different types of outbound marketing to reach their potential customers. Outbound
marketing includes any marketing efforts that are taken to introduce a product or service to
someone who isnt looking for that product or service. Some examples are cold calling,
sending newsletters, billboards, and banner ads on different web sites.
Inbound Marketing
Inbound marketing focuses on having your company found by customers, as opposed to
reaching out to them directly like in outbound marketing. The important thing to remember
here is that a person starts out with the want/need to purchase a product or service, and they
go out to find it. When they search for that product/service on a search engine, the search
engine results page will show inbound marketing results. Instead of using paid
advertisements, inbound marketing is the search engine optimization (SEO) part of web
marketing.
Newsletter Marketing
Newsletter marketing and email marketing refer to ways of promoting your company through
emails. Typically, a firm using newsletter marketing will have a group of contacts that they
will send a newsletter containing some interesting information to. The success of newsletter
marketing depends on grabbing attention, writing good content and reaching a large number
of potential clients.
Article Marketing
Businesses will often write articles related to the industry they are in and distribute them
online and offline. These free articles will inform people about an important topic and give
the company that wrote it more credibility within the market. The organization can also
include their business contact information in the article, allowing them to get new clients.

Trade Show Marketing


Companies that want to reach a large number of potential customers can participate in public
or private trade shows. Trade shows and other forms of event marketing are often a large
investment to participate in, but trade shows allow companies to demonstrate new products
and examine what is going on in the industry.
Search Marketing
Search engine marketing (SEM) is the way in which companies promote their business
through paid placement on search engines like Google. Instead of increasing the organic
search results that a website has, companies will pay to have their advertisements in the
sponsored section of search engines. This is also known as Pay Per Click Advertising or PPC
Direct Marketing
Direct marketings main goal is to send a message directly to consumers, without having to
use any third party outlets. Examples of direct marketing include mail marketing,
telemarketing and direct selling. Direct marketing is often preferable because the results can
be easily measured, giving the marketer a better understanding of the success of that
campaign.
Niche Marketing
When a product or service is not being readily supplied to a certain portion of a market, a
company can focus their efforts on that niche to address a need that isnt currently being
addressed. This targeted marketing is successful because the marketer has identified a need
that isnt being resolved by mainstream providers. Sometimes it is beneficial for a company
to focus on a niche instead of trying to compete in a larger market.
Drip marketing
Drip marketing is the act of sending out scheduled targeted emails that are all coordinated to
a specific goal of client conversion. The sender uses email marketing software that allows
them to setup multiple emails at one time and let them drip over time. This sometimes
includes phone calls to check in on the clients along the way.
Social Media Marketing
Social network marketing and social media campaigns provide a window to market a product
or service on the Internet through different social networks. Companies can use these outlets
for their marketing, customer service and sales. The most common and successful means of
social media marketing are found on sites like Facebook, Twitter, LinkedIn, YouTube and
even company blogs.

Referral Marketing
One of the less strategic types of marketing, referral marketing relies on a companys
customers to refer new customers to that company. Also called word of mouth marketing, this
is a more spontaneous way of receiving new business, and can not be solely relied on because
results arent very predictable. However, word of mouth is still a powerful part of a
companys efforts to bring in new business, especially in the social media community where
communication travels freely.
Guerrilla Marketing
With a smaller budget, guerrilla marketing makes a splash by relying on energy, timing and
unusual approaches to get the consumers attention. The unconventional marketing involved
tries to get the most out something small, and make a lasting brand image in the consumers
mind.
Promotional Marketing
Promotional marketing is a common form of marketing strategy that companies use to
motivate a consumer to make a decision and purchase their product. There are a number of
ways that businesses will promote a product or service, including holding contests to win a
prize, offering coupons for purchasing a product at a discount, and having samples of the
product so people can experience it before they purchase.
Affiliate Marketing
Affiliate marketing most likely involves four different groups that contribute to the marketing
effort. The Merchant is the company that is producing and selling the product, the Network is
the outlet that is used to promote the affiliate link, the Publisher or Affiliate is the person who
has the website with the affiliate ad and of course the customer doing the purchasing.
Affiliate links are found on all types of websites, and they are used to drive traffic to outside
websites.
Viral Marketing
This type of marketing relies on the message of a marketer being spread quickly through
various social networks in order to increase brand awareness. The name viral marketing
stems from the rapid spread of viruses in general. Typically, a viral marketing campaign will
not last as long as other marketing efforts, but if a company can come up with a good idea for
viral marketing and reach the right people, it will become highly successful in a short amount
of time.
B2B Marketing

Any type of business, whether an organization, individual, government or other institution


that markets to other businesses is involved in business to business marketing. Since B2B
marketing involves companies trying to sell mass quantities of product to one another, there
is a more personal relationship that needs to be established between businesses. If your
company sells to other businesses, your marketing efforts will most likely be more direct.
B2C Marketing
Business to consumer marketing campaigns try to reach a category of people that will be
likely to purchase their product or service. The marketing efforts the company takes should
be more broad than B2B, which focuses on specific companies. B2C marketing can involve
different marketing techniques such as door to door marketing, promotion marketing,
newspaper marketing, television marketing and radio marketing. In todays marketing world,
B2C Internet marketing is becoming more important to reach consumers.
Mobile Marketing
Along with Internet marketing, mobile marketing is part of the newest groups of marketing
activities. Companies have been experimenting with the certain ways to reach consumers
through their phones, especially with the rise of Apples iphone. Some ways to marketing a
product or service through a mobile phone include SMS marketing, in-game marketing,
banner marketing on different web pages and location based marketing.
Reverse Marketing
This form of marketing is similar to inbound marketing. The goal of reverse marketing is to
market a product in a way that will cause the consumer to seek the firm doing the marketing.
Reverse marketing can be conducted through such means as television, print and Internet
marketing. If a company has a product that solves a problem in the market, they will have
more success using reverse marketing because they will seek out that product.
Telemarketing
A form of direct marketing, telemarketings focus is on reaching consumers by phone. Most
of what we thing of as telemarketing is cold call marketing, which is unpopular and has lead
to laws being created against it. However, telemarketing can be effective if the right person is
reached on the phone at the right time.
Direct Mail Marketing
Most people receive large quantities of marketing material in the mail, which is considered
direct mail marketing. Companies will send paper mail with promotions or other information
to a list of addresses, usually in a common geographical area. This form of marketing is also
called junk mail by some, because the customers receiving the mail arent expecting it and
usually dont want to open it.

Database Marketing
Database marketing is similar to other types of direct marketing, but the focus is more
directed towards analyzing data. Companies try to narrow their marketing efforts down to
certain groups of people, and they use database marketing to analyze statistics like name,
address, or sales history, in order to create the most accurate model possible.
Personalized marketing
The goal of personalized marketing is to create a unique offer for each individual customer.
This form of marketing doesnt work for every company, but certain ones can capitalize on
their unique products and customer demographics to market to individuals. With the Internet
becoming a more popular place for marketing, companies are finding that personalized
marketing is affective in cases when they can track a customers specific interests and send
them more information for future suggestions.
This list should give you a good idea of different ways companies can market themselves to
consumers or other companies, but there are still more types of marketing out there. If you
think of any, let us know and well add it to the list.
Depending on your company and the industry you are in, you will definitely choose different
kinds of marketing that will produce the best results for you. No matter which type of
marketing you want to use for your company, Design & Promote can help you research and
implement a marketing campaign that will allow your company to win the consumers
attention and hold the search engine results. Contact us today to explore more ways Design &
Promote can help market your company.
2016 Emerging Marketing Trends
Marketers are always looking for ways to be creative and unique and are on the hunt for the
next trend to revolutionize their business. The internet video explosion demands a change in
tactics from top marketers and experts in the marketing field. Keeping up with digital
marketing will be a challenge in 2016 as marketing is a volatile industry. One trend to be on
the horizon is mixing online and offline promotions for greater reach and engagement.
Everyone is so focused with promoting online that they tend to forget of ways to stand-out
from the crowd, going offline. Everyone is searching for the answers to the holy grail
marketing system that sells like hot cakes, but thats not the case, marketing always changes
and new trends emerge.
How to get around this is a good sound strategy that is balanced for both offline and online
for 2016, is the solution

1. Mobile Gadgets

Going mobile isnt just a phone anymore, its anything that you take with you, tablets,
smarter smartphones, apple watches and so on. This will increase brand engagement on many
different levels increasing conversations and conversions.

2. Customers Want More From Brands


Gone are the days of driving a solo ad to a sales page and then sit back and watch the money
roll in, or using cookie cutter marketing systems. People want to know you and the guy
behind the business will be front and center, and people want to talk to you first before any
money changes hands. Providing real value and real transparency are what customers want,
so give it to them. So being a fake wont cut it here.

3. High-quality content will be in-demand


Producing valuable content to teach people the ins and outs of what expert marketers do,
will be a trend for sure. People also want better content not copy and paste articles from free
sites either. More research and longer useful content to learn from will be a trend.

4. People watch more videos


If people dont like reading they will be more into watching videos instead. With videos the
engagement goes through the roof, because people actually see their guy on camera and can
explain things a lot easier and better than a blog post for example.
Videos have to be produced right to make them good and effective for
engagement. According to some estimates, 84 percent of internet users worldwide watch
videos online.

5. Social media channels go video


Social platforms will be on the rise, and they are also testing out video platforms for their
users, such as Twitters periscope. Facebook is not far behind, neither is Linkedin.

5. Social media

Similarly, advertising on social media can help business owners reach targeted audiences with
their marketing campaigns and message. In fact, more and, more business owners will be
relying on social media to target their audiences. Youtube will be leading the way and can
expect an increase in viewers and advertisers.

6. Internet Marketing and Mass Media


Fact: 69 percent of US adults trust their local newspapers. With that one fact, you can see that
the trust factor isnt the same as online. Trust online has to be earned and built upon, offline
people trust their local newspaper. Trust and desire motivate people to buy and thats why
offline promotions cannot be ignored. Roughly, 43 percent of national businesses use
newspapers for local promotions. That can translate into a successful campaign and
revenue. A study from Shop.org also found that 63 percent of US internet users have used a
coupon from a newspaper or magazine.

7. Dont rely on Google


After its decade long domination and its pretty clear consumers want a different choice and
not depend on Google. My advice is to engage more with other forms that are direct with
your target market. Google is also on the decline and PPC is way too expensive for most
marketers, so people are using other search engines like Duck Duck.

8. Different payment methods are coming available


New payment methods are going to have an effect on e-commerce, partly because privacy
issues and online scams are rampant. EVM credit card will be a new experience for online
consumers and more security in online transactions.

9. Paid is In, Free advertising is out


One of the biggest myths currently online is FREE advertising works to build a business, it
can but way too time consuming. Facebook news feed limits the amount of viewers to your
Facebook posts unless its paid now. Lots of new paid advertising will be coming available
mostly in organic/paid advertising, and will be a continued trend in 2016.

10. Growth hacking continues to be on the rise


In 2015, growth hacking was one of the best trends besides new video platforms and new
payment systems. Growth hacking will continue to be a viable option for growing your
business, and will continue to evolve.
All of these emerging trends sound scary, but embrace them and apply them to your business
and watch it grow. With success, there will always be the fear of failure, so its a leap of faith.
I suggest testing out new marketing methods prior to scaling up.