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MarketingNotes:

Introduction:
Intodaysworldofmarketing,everywhereyougoyouarebeingmarketedtoinoneformoranother.Marketingiswith
youeachsecondofyourwalkinglife.Frommorningtonightyouareexposedtothousandsofmarketingmessages
everyday.Marketingissomethingthataffectsyoueventhoughyoumaynotnecessarilybeconsciousofit.
Afterreadingthisyoullunderstandwhatexactlythemarketingis,differentdefinitionsofmarketing,andwhatare
thedifferentapproachesofmarketing.
MarketDefinition:
Inmarketing,thetermmarketreferstothegroupofconsumersororganizationsthatisinterestedintheproduct,has
theresourcestopurchasetheproduct,andispermittedbylawandotherregulationstoacquiretheproduct.The
marketdefinitionbeginswiththetotalpopulationandprogressivelynarrowsasshowninthefollowingdiagram.
Beginningwiththetotalpopulation,varioustermsareusedtodescribethemarketbasedonthelevelofnarrowing:

Totalpopulation
Potentialmarketthoseinthetotalpopulationwhohaveinterestinacquiringtheproduct.
Availablemarketthoseinthepotentialmarketwhohaveenoughmoneytobuytheproduct.
Qualifiedavailablemarketthoseintheavailablemarketwholegallyarepermittedtobuytheproduct.
Targetmarketthesegmentofthequalifiedavailablemarketthatthefirmhasdecidedtoserve(theserved
market).
Penetratedmarketthoseinthetargetmarketwhohavepurchasedtheproduct.
Intheabovelisting,productreferstobothphysicalproductsandservices.
Thesizeofthemarketisnotnecessarilyfixed.Forexample,thesizeoftheavailablemarketforaproductcanbe
increasedbydecreasingtheproductsprice,andthesizeofthequalifiedavailablemarketcanbeincreasedthrough
changesinlegislationthatresultinfewerrestrictionsonwhocanbuytheproduct.
Definingthemarketisthefirststepinanalyzingit.Sincethemarketislikelytobecomposedofconsumerswhose
needsdiffer,marketsegmentationisusefulinordertobetterunderstandthoseneedsandtoselectthegroupswithin
themarketthatthefirmwillserve.
MarketingDefinition:
MarketingisnothingbuttoTellaboutyourproductandtoSellit.ThetechnicaldefinitionisMarketingistheprocess
ofplanningandexecutingtheconcepts,pricing,promotionanddistributionofideas/goods/servicesto
satisfyindividuals/organizational.
Marketingisasocialandmanagerialprocessthroughwhichneedsandwantsofindividual/organisationare
satisfiedbytheexchangeofgoodsandservices.

NEED:Needcanbedefinedassomethingthatisnecessaryforsurvival.
Ex:Drinkingwaterwhenthirstyisaneed.
WANT:Itcanbecalledasdifferentwaysofsatisfyingneed.
Ex:Drinkingcocacola(orfrooti)whenthirsty(optionsavail.)
SellingworksonPUSHstrategy,whereasmarketingworksonPULLstrategy.
Sellingisalwaysasubsetofmarketing,marketingisasuperset.Salesrelatedwithshorttermrelationsandmarketing
focusesonlongtermrelations.
Purposeofsellingistomakeprofitimmediately.(Ex:generalstores)
Purposeofmarketingistomakecustomersatisfactionandtomaintainlongtermrelations.(Ex:DELLservice)
ThereareSeveraltypesofmarketingarethere,someofthemare:
TheBenchMarketingisnothingbutthecomparisonofthebusinessprocesseswithcompetitorsandimproving
prevailingones.
TheDripMarketingisnothingbutsendingpromotionalitemstoClients.
TheViralMarketingisnothingbut,Marketingbythewordofthemouth,havingahighpassratefrom
personto.ThebestexampleforthisisCreatingabuzzintheindustry.
TheGuerillaMarketingisanUnconventionalmarketingintendedtogetmaximumresultsfromminimalresources.
(justrememberMaximumresultsfromMinimumresources)
SocialMediaMarketing:
Marketingusingonlinecommunities,socialnetworks,blogmarketingetciscalledthesocialmediamarketing.
DirectMarketing:
Ifthecompanydirectlyreachestothecustomersonapersonalbasis(ex:phonecalls,privatemailings,etc)rather
thantraditionalchannelofadvertising(likeTV,Newspapers,etc)thenthattypeofmarketingiscalledtheDirect
Marketing.
Types:Therearenumberoftypesindirectmarketing,Someofthemare
DirectMailMarketing:
Advertisingmaterialsentdirectlytohomeandbusinessaddresses(Thisisthemostcommonformofdirect
marketing)
Telemarketing:Itisthesecondmostcommonformofdirectmarketing,inwhichmarketerscontact
consumersbyphone.
EmailMarketing:Thistypeofmarketingtargetscustomersthroughtheiremailaccounts(youmight
haveobservedtheminyouremailstoo)
IndirectMarketing:
DistributingaparticularproductthroughachannelthatincludesoneormoreresellersiscalledIndirectMarkeging
(simplywecansaythattellingaboutourproductindirectly)
DifferencebetweenDirectandIndirectMarketings:
InDirectmarketingyouadvertiseyourownproductsorservices.ButinIndirectmarketingyouadvertisesomebody
elsesProduct.
Ex:ExampleofdirectmarketingisShivaniSharmaAsshemarketsherblogonherown.ExampleofIndirect

InternetMarketing
MarketingofproductsorservicesovertheInternetiscalledInternetMarketing.Itisalsoknowasi
marketing,webmarketing,onlinemarketing,SearchEngineMarketing(SEM)andeMarketing.
DigitalMarketing
Themarketingwhichusesdigitaladvertisingiscalleddigitalmarketing.Television,Radio,Internet,mobileetc.
Customer:Acustomeristherecipientofgood/service/ideaobtainedfromaseller.
Consumer:Theonewhoconsumedorutilisesgood/productiscalledasconsumer.Acustomermayormaynotbea
consumer.
Ex:Afatherpurchasesa5starforhisson,herefatheristhecustomerandsonistheconsumer.
Typesofconsumergoods:
Consumergoods(suchasbread,milk,paper,sugar)thatareboughtoftenandconsumedroutinely.
Impulse:Purchasedsuddenlyonstimuli(Ex:chocolateskeptatbillingcounter).
Shoppinggoods:Goodswhichareoccasionallypurchased,costismoderate.Peopleinvesttimeand
efforts.Brandmaybeconsidered.
Ex:Textiles,watches,costumes.
Specialgoods:Goodswhicharepurchasedveryrarelyastheyareveryexpensive.oneortwooutletsare
available.peopleareextremelybrandconscious.
Ex:Jewellery,paintings,BMWcars.
Unsoughtgoods:Eventhoughcustomersarenotinterested,he/sheforcedtobuybecauseofsomeobligations.
Ex:Insurancepolicies,iceboxforthedead.
Nichemarket:Marketwhichfocusesonparticularsegmentandcreatingdistinctimage.
Ex:nanocar.
Customisedproduct:Customerrequirementsaretakenintoaccount.
Augmentedproduct:Improvementmadebythemanufacturervoluntarily.
Potentialproduct:Whichmayintroduceinthefuturedependingontechnologicalandeconomicresourcesofthe
firm.
Uniquesellingproposition(USP):Aqualityfeaturedesignwhichisavailableonlyinoneproductwhichisnotin
otherproducts.
Ex:bajajpulsar,yamahafz.

ProductLifeCycleConcept
Wehavealifecycle,weareborn,wegrow,wemature,andfinallywepassaway.Similarly,productsalsohavelife
cycle,fromtheirintroductiontodeclinetheyprogressesthroughasequenceofstages.Themajorstagesofthe
productlifecycleareintroduction,growth,maturity,anddecline.Productlifecycledescribestransitionofaproduct
fromitsdevelopmenttodecline.
Productlifecyclecanbedefinedasthechangeinsalesvolumeofaspecificproductofferedbyanorganisation,
overtheexpectedlifeoftheproduct.

StagesoftheProductLifeCycle
Thefourmajorstagesoftheproductlifecycleareasfollows:
1.Introduction,
2.Growth,
3.Maturity,and
4.Decline.
IntroductionStage
Atthisstagetheproductisnewtothemarketandfewpotentialcustomersareawarewiththeexistenceof
product.Thepriceisgenerallyhigh.Thesalesoftheproductislowormayberestrictedtoearlyadopters.
GrowthStage
Atthisstagetheproductisbecomingmorewidelyknownandacceptableinthemarket.Marketingisdoneto
strengthenbrandanddevelopanimagefortheproduct.Pricesmaystarttofallascompetitorsentersthe
market.Withtheincreaseinsales,profitmaystarttobeearned,butadvertisingcostremainshigh.
MaturityStage
Atthisstagetheproductiscompetingwithalternatives.Salesandprofitsareattheirpeak.Productrangemay
beextended,byaddingbothwitheanddepth.Withtheincreasesincompetitionthepricereachestoitslowest
point.Advertisingisdonetoreinforcetheproductimageintheconsumersmindstoincreaserepeatpurchases.
DeclineStage
Atthisstagesalesstarttofallfastasaresultproductrangeisreduced.Theproductfacesreducedcompetition
asmanyplayershaveleftthemarketanditisexpectedthatnonewcompetitorwillenterthemarket.
Advertisingcostisalsoreduced.

TypesofPricing:
Priceisthemonetaryvaluegivenbythecustomerfortheexchangeofgoodsandservices.
Followleader:Adjustthepricesaccordingtothedominantplayerinthemarket.
Ex:apple(smartphones).
Costplus:Keepingpricejustabovethecostpricetorecovertheoperationalexpenditure.
Ex:R.K.(ramakrishna)MATHspokenenglishbookfor25/only
Penetration:Keepingpriceslowinitiallywhenaproductisreleasedforthefirsttime.
Ex:sakshipaperforonly2/withfullcolorpagesinsteadof3/
Predatory:keepingthepriceslowtokillcompetitorsandlaterincreasingitafterthecompetitorsleftthemarket.
Ex:StoreslikeWalmartwilleffectthekiranastoresinthesameway.
Skimming:oppositeofpredatory,keepingpricesveryhighinitiallywhenthereisnocompetitionandlaterdecreasing
ittomatchthecompetition.
Ex:Iphone.
Psychologicalpricing:Offeringdifferentrangesofpricestogivepsychologicalcomforttothebuyer.
Ex:499,299,599/customerthinksthatitisonlyin400s,200s&500srange.
Deceptivepricing:Promotiontacticsdisguisecustomerfromknowingtheactualprice.
Ex:Kotimarket(Hyderabad)goods,initially,sellerwilltellthepriceofaluggagebagas500/lateronbargaininghewill
giveitto100/
Promotion:Purposeistocreateawarenessaboutaproductinthemarket.
Advertisements:Paidformofimpersonalcommunications.
Publicity:Ads,hoardings,pamphlets.
Directselling:DSAapproachesbuyerpersonallyattheirdoorstepstoknowtheconsumerbehaviour.(veryeffective
butexpensivetoo).
Aggressivemarketing:Styleofpromotingaproductwhichisveryforcefulorenergeticduetoincreaseinthe
competition.
Cobranding:Promotionoftworelatedproductsthroughcommonbrand.
Ex:NikeandApplebroughtfitnessandmusictogetherbydevelopingawirelessmusickitalongwiththeshoes.
Place:Productshouldbemadeavailableataconvenientlocationtothecustomers.
Lengthofthechannel:no.ofintermediariesbetweenactualproducerandthefinalconsumer.
Push:Forcedtobuythegoodsbykeepingofferslikebuy1get2.
Pull:Pleasuretobuythegoodslikeandroidmobiles.Coldcall:Persuadingormotivatingacustomertobuy
immediatelywhoisindilemma.
Customisation:Modifyingbasicproductsassuitabletothecustomers.
Standardisation:Offeringsameproductofsamequalityglobally.
Consumerblackbox:Whatgoesoninthemindsofthecustomeractuallyatthetimeofbuyingaproduct.
Societalmarketing:Marketingforasocialcause(CSRcorporatesocialresponsibility)
Ethicalmarketing:Explainingpositivesandnegativesinarealisticmanneraboutaproductforthebenefitofthe
customers.

Primarydataiscollectedthroughsurvey,secondarydataiscollectedthroughofficialrecord.
Bestapproachforexploratoryresearchisobservation.
Bestapproachforcasualresearchisexperimental.
Bestapproachfordescriptiveresearchissurvey.

MeaningofProductMix
Productmixorproductassortmentreferstothenumberofproductlinesthatanorganisationofferstoits
customers.Productlineisagroupofrelatedproductsmanufacturedormarketedbyasinglecompany.Such
productsfunctioninsimilarmanner,soldtothesamecustomergroup,soldthroughthesametypeofoutlets,andfall
withinasamepricerange.

Productmixconsistsofvariousproductlinesthatanorganisationoffers,anorganisationmayhavejustoneproduct
lineinitsproductmixanditmayalsohavemultipleproductlines.Theseproductlinesmaybefairlysimilarortotally
different,forexampleDishwashingdetergentliquidandPowderaretwosimilarproductlines,bothareusedfor
cleaningandbasedonsametechnologywhereasDeodorantsandLaundryaretotallydifferentproductlines.
Anorganisationsproductmixhasfollowingfourdimensions:
1.Width,
2.Length,
3.Depth,and
4.Consistency.
Productwidth:No.ofcategoriesinaproductmix.
Ex:haircare,skincareetc.
Productdepth:No.ofalternativesineachcategory.
Ex:soapcategory:lux,cinthol,pears,lifebuoy.

MarketingMix:
Marketingmixisatoolinthehandofmarketer,whichisamixtureofseveralideasandplans,topromotea
particularproduct.Differentmodelsofmarketingmix:
FourPmodel

Elements:
(a)ProductThethingwhichisoffered
(b)PriceHigh/low,stable/fluctuating
(c)PromotionBrandrecognitionandpositioning
(d)PlaceConvenientforconsumers
SevenPmodel
ItwasproposedbyBoomsandBitnerin1981.
Elements:
(a)Physical
evidenceInterior
(b)PeopleHuman
resources
(c)Process
Quality
FourCmodel
Itisaconsumer
orientedmodel.It
wasproposedby
Lauterbornin1993.
Elements:
(a)Product
Consumer
(b)PriceCost
(c)Promotion
Communication
(d)PlaceConvenience/channelforconsumers
SevenCmodelElements:
(a)Consumers
(b)Cost
(c)Communication
(d)Convenience/channel
(e)Corporation
(f)Commodity
(g)Circumstances

SomeBasicBankingTerms:
1)RBITheReserveBankofIndiaistheapexbankofthecountry,whichwasconstitutedundertheRBIAct,1934
toregulatetheotherbanks,issueofbanknotesandmaintenanceofreserveswithaviewtosecuringthemonetary
stabilityinIndia.2)DemandDepositADemanddepositistheonewhichcanbewithdrawnatanytime,withoutany
noticeorpenaltye.g.moneydepositedinacheckingaccountorsavingsaccountinabank.
3)TimeDepositTimedepositisamoneydepositatabankinginstitutionthatcannotbewithdrawnforacertain
termorperiodoftime.Whenthetermisoveritcanbewithdrawnoritcanbeheldforanotherterm.
4)FixedDepositsFDsarethedepositsthatarerepayableonfixedmaturitydatealongwiththeprincipaland
agreedinterestratefortheperiod.BankspayhigherinterestratesonFDsthanthesavingsbankaccount.
5)RecurringDepositsThesearealsocalledcumulativedepositsandinrecurringdepositaccounts,acertain
amountsofsavingsarerequiredtobecompulsorilydepositedatspecificintervalsforaspecifiedperiod.
6)SavingsAccountSavingsaccountisanaccountgenerallymaintainedbyretailcustomersthatdepositmoney
(i.e.theirsavings)andcanwithdrawthemwhenevertheyneed.Fundsintheseaccountsaresubjectedtolowrates
ofinterest.
7)CurrentAccountsTheseaccountsaremaintainedbythecorporateclientsthatmaybeoperatedanynumber
oftimesinaday.Thereisamaintenancechargeforthecurrentaccountsforwhichtheholdersenjoyfacilitiesof
easyhandling,overdraftfacilityetc.

foreigncurrencieslikeUSD,DM,andGBPetc.Theaccountisatermdepositwithinterestrateslinkedtothe
internationalratesofinterestoftherespectivecurrencies.
9)NREAccountsNonResidentExternalaccountsaretheonesinwhichNRIsremitmoneyinanypermitted
foreigncurrencyandtheremittanceisconvertedtoIndianrupeesforcredittoNREaccounts.Theaccountscanbein
theformofcurrent,saving,FDs,recurringdeposits.Theinterestratesandothertermsoftheseaccountsareasper
theRBIdirectives.
10)ChequeBookAsmall,boundbookletofcheques.Achequeisapieceofpaperproducedbyyourbankwith
youraccountnumber,sortcodeandchequenumberprintedonit.Theaccountnumberdistinguishesyouraccount
fromotheraccountsthesortcodeisyourbanksspecialcodewhichdistinguishesitfromanyotherbank.
11)ChequeClearingThisistheprocessofgettingthemoneyfromthechequewritersaccountintothecheque
receiversaccount.
12)ClearingBankThisisabankthatcanclearfundsbetweenbanks.Forgeneralpurposes,thisisanyinstitution
whichweknowofasabankorasaproviderofbankingservices.
13)BouncedChequewhenthebankhasnotenoughfundsintherelevantaccountortheaccountholderrequests
thatthechequeisbounced(underexceptionalcircumstances)thenthebankwillreturnthechequetotheaccount
holder.
14)CreditRatingThisistheratingwhichanindividual(orcompany)getsfromthecreditindustry.Thisisobtained
bytheindividualscredithistory,thedetailsofwhichareavailablefromspecialistorganisationslikeCRISILinIndia.
15)CreditWorthinessThisisthejudgementofanorganizationwhichisassessingwhetherornottotakea
particularindividualonasacustomer.Anindividualmightbeconsideredcreditworthybyoneorganisationbutnotby
another.Muchdependsonwhetheranorganizationisinvolvedwithhighriskcustomersornot.
16)InterestTheamountpaidorchargedonmoneyovertime.Ifyouborrowmoneyinterestwillbechargedonthe
loan.Ifyouinvestmoney,interestwillbepaid(whereappropriatetotheinvestment).
17)OverdraftThisiswhenapersonhasaminusfigureintheiraccount.Itcanbeauthorized(agreedtoin
advanceorretrospect)orunauthorized(wherethebankhasnotagreedtotheoverdrafteitherbecausetheaccount
holderrepresentstoogreatarisktolendtointhiswayorbecausetheaccountholderhasnotaskedforanoverdraft
facility).
18)PayeeThepersonwhoreceivesapayment.Thisoftenappliestocheques.Ifyoureceiveachequeyouarethe
payeeandthepersonorcompanywhowrotethechequeisthepayer.
19)PayerThepersonwhomakesapayment.Thisoftenappliestocheques.Ifyouwriteachequeyouarethe
payerandtherecipientofthechequeisthepayee.
20)SecurityforLoansWherelargeloansarerequiredthelendinginstitutionoftenneedstohaveaguarantee
thattheloanwillbepaidback.Thistakestheformofalargeitemofcapitaloutlay(typicallyahouse)whichisowned
orpartlyownedandtheamountownedisatleastequivalenttotheloanrequired.
21)InternetBankingOnlinebanking(orInternetbanking)allowscustomerstoconductfinancialtransactionsona
securewebsiteoperatedbythebank.
22)CreditCardAcreditcardisoneofthesystemsofpaymentsnamedafterthesmallplasticcardissuedtousers
ofthesystem.Itisacardentitlingitsholdertobuygoodsandservicesbasedontheholderspromisetopayfor
thesegoodsandservices.
23)DebitCardDebitcardallowsfordirectwithdrawaloffundsfromcustomersbankaccounts.Thespendinglimit
isdeterminedbytheavailablebalanceintheaccount.
24)LoanAloanisatypeofdebt.Inaloan,theborrowerinitiallyreceivesorborrowsanamountofmoney,called
theprincipal,fromthelender,andisobligatedtopaybackorrepayanequalamountofmoneytothelenderata
latertime.Therearedifferentkindsofloansuchasthehouseloan,autoloanetc.
25)BankRateThisistherateatwhichcentralbank(RBI)lendsmoneytootherbanksorfinancialinstitutions.If