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Index

No. Unit Page no.
1. A. Marketing Environment

B. Strategic Marketing

2. A. Product Innovations

B. Product Line

3. A. Marketing Channel

B. Marketing Communication

4 A. International Marketing

B. International Marketing Decision

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Unit -1. A. Marketing
Environment

Definition :- marketing environment refers to the relevant forces that affect marketing
decisions. It mainly include external or uncontrollable forces, like political, legal, economical,
socio-cultural, technological, competition, and so forth, on which a manager has no control.

Marketing environment comprises of various factors within which marketing manager has to
decide. It offers both opportunities and threats.

INTERNAL MARKETING ENVIRONMENT
“Internal marketing environment is based on the idea that customers attitudes toward a company
are based on their entire experience with that company and not just their experience with the
company’s products. Anytime a customer interacts with a employee and it affect their overall
satisfaction”

There are two types of internal market environment
(1) Internal marketing of your business system
(2) Your internal guidance or initiative process
(1)Internal marketing of your business system:- Internal marketing environment of your
business system is what you know about your companies infrastructure. That your customers
may not know without knowing the ins and outs of your company’s infrastructure. If it is
newly impossible to convey your strength to the market. The more you know the better you
can position your message.
(2) your internal guidance or initiative process:-Your internal guidance has to do with the
creative thought you have that you will either choose to act or not your success is determine by
your ability to as certain which thoughts one most beneficial to act on at any given time and
which should be tabled for later exploration.

EXTERNAL MARKETING ENVIRONMENT
External marketing is what the world sees or perceives it include your:

(1) Advertising
(2) Website
(3) Blog
(4) Social Media Marketing

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(5) Direct marketing
(6) Marketing Material Including Business Cards, Letterhead And Logo
(7) Product Development
(8) How You Present Yourself When Out in Public

There are mainly two types of external marketing environment:

(1) Micro environment factors and
(2) Macro environment factors

MICRO ENVIRONMENT FACTORS
(1) THE SUPPLIERS: supplier can control the success of the business when they hold the
power. The suppliers hold the powers when they are the only or the largest supplier of
their goods the buyers is motivational to the supplier business; the suppliers products is
a core part of the buyers finished products.
(2) THE RESELLERS: If the products organization to market product is taken to market
by third party resellers or market intermediaries such as retailers, wholesalers etc..then
the marketing success is impacted those third party resellers.
(3) THE CUSTOMERS: who the customers are and their reasons for buying the product
will play a larger in how to approach the marketing of your product products and
services to them.
(4) THE COMPETITORS: Those who same or similar products and services as your
organization are your market competition and they way they sell needs to be taken into
account. How to does their price and product differentiation results and get ahead of
them.
(5) THE GENERAL PUBLIC: Your organization has a duty to satisfy the public needs.
Any actions of your company must be considered from the angle of general public and
hoe they are affected. The public have the power to help you reach your goals just as
they can also prevent you from achieving them.

MACRO ENVIRONMENT FACTORS
(1)DEMOGRAPHIC FACTORS: Different market segment are tipically impacted by
common demographic factors including country religion, age, education level, household
lifestyle, cultural characteristics, and movements.
(2) ECONOMIC FACTORS: The economic environment can market both the
organizations production and the consumers decision marketing process.
(3) NATURAL FACTORS: The earth’s renewal of its natural resources such as forest
and agricultural products and marine products etc… must be taken into account there are
also the natural non-renewal resources such as oil, coal, minerals etc… they may also
impact the organization’s production.

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(4) POLITICAL AND LEGAL FACTORS: Sound marketing decision should always take into account political and legal development relating to the organization and its market. B. Brings to market or society must be considered. taking into Page 4 of 31 . (5) SOCIAL AND CULTURAL FACTORS: The impact the products and services your organization. (5) TECHNOLOGICAL FACTORS: The skills and knowledge apply to the production and technology and material needed for production of products and services can also impact the smooth running of the business and must be considered. This is because marketing strategy starts with marketplace research. The marketing strategy is the foundation of a marketing plan. Strategic Marketing Marketing strategy Definition:-A marketing strategy that combines all of its marketing goals into one comprehensive plan. Significance or Importance of Marketing Strategy: 1. Streamlines Product Development A marketing strategy helps you create products and services with the best chances for making a profit. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. Unit -1. Any element of the production process or any product or services that you harmful to society should be eliminated to show your organization is taking social responsibility.

this mission statement is intended to anticipate the future and describe an ongoing role for the organization's product. you can select where you want to sell to maximize your marketing effectiveness. you might respond to solicitations from advertising salespeople on an individual. 4.consideration your optimal target customer. service or expertise. For example. radio station or website fits into your selling plans. what they’re willing to pay and how you can differentiate your product or service from the competition. sending messages that don’t fit in with the brand identity you’ve created based on your product development efforts. your pricing strategy might require you to sell at prices that create a high-end perceived value. coupons or rebates without damaging your brand Process of strategic marketing 1. you determine the benefit customers and clients want. Your sales people will talk with the people responsible for managing your image to determine if they can offer discounts. Without marketplace research and a strategic marketing plan. If your target customer is bargain conscious and is willing to accept fewer bells and whistles on your product in exchange for paying less. your advertising people will talk with your product development people to determine what message you should send about your benefit. or image you want to establish about your business. your pricing strategy will require you to sell at or below the competition’s price. the mission of an airline might be to provide continuing Page 5 of 31 . A marketing strategy lets you determine if a particular magazine. Mission The first step in strategic marketing is to articulate the reason why the enterprise exists and how it can benefit target consumers over the long term. For example. 3. reactionary basis. Older customers might prefer to shop at retail outlets. you can use a wholesaler or distributor. Using this information. In particular. your departments can better work with each other. Organizational Impact When you have a marketing strategy. If you learned that customers want a high-end product in your category. Assists with Marketing Communications Your market research will help you create your brand. paying with PayPal or a credit card. who your target customer is and what your price points will be. Establishes Effective Distribution Once you know what product features you’ll offer. because they are all working from the same plan. 2. If your market research shows you need to be in retail stores but you don’t have a sales force. Helps Determine Optimal Prices Part of a marketing strategy is setting the right price for your product or service based on what you learned in your market research. what your competition is doing and what trends might be on the horizon. Younger customers will be more likely to shop using a Smartphone or on a website. 5.

a distinct group of consumers who are highly likely to buy the firm's product. means specifying how.Marketing analysis :Managing the marketing function begins with a complete analysis of the companies situation The company must analyses its market &marketing environment to find attractive opportunities and avoid international threats. specifically.Implementation 4. This second step in the strategic marketing process helps managers understand the resources they can build on and the challenges they face.Control 1. price and distribution to reach and influence prospective buyers. effective ways to use the marketing mix tools of product. each objective must be achievable within a fixed period of time. These are clear. 2.innovation in global transportation. Objectives The third step in strategic marketing is to set marketing objectives. A hospital could state a mission to take the lead in improving public health and education. Objectives are typically expressed in terms of one or more quantitative targets like revenue. also known as a SWOT. Page 6 of 31 . when and by whom these tactics are to be monitored and assessed over time. For example. aiming for a five-percent increase in profits might be realistic within a year. Strengths and weaknesses are internal factors.Planning 3. a good image in the fashion press would be a key strength for a dress manufacturer.Analysis 2. evaluation. promotion. profit. Planners must also choose implementation tactics. but probably not within one quarter. measurable goals that give decision makers a basis for making choices and assessing progress. This involves selecting a target market. under the firm's control. like a strong economy or new payroll tax. 3. Managing the marketing efforts: Managing the marketing process requires the four marketing management functions are as under 1. Strategy and Evaluation The fourth step in strategic marketing is strategy development. For example. Importantly. Opportunities and threats arise from the external environment. opportunities and threats. Situation Analysis Organizations conduct a situation analysis. sales or market share. 4. to evaluate and prioritize their strengths. weaknesses. while a poor relationship with clothing retailers would be a weakness. The fifth step.

and other goals set out in its annual plan. profits. and activities to determine problem areas and opportunities. people at all levels of the marketing systems must work together to implement marketing strategies and plans. A company that sales across the country or internationally often uses a geographic organization. The company must design a marketing organization that can carry out marketing strategies and plans. Companies with many very different products or brands often create a product management organization.month to month activities that effectively put the marketing plan to work. objectives strategies. This is a comprehensive. The most common form of marketing organization is the functional organization. systematic. Strategic control involves looking at whether the companies basic strategies are will matched to its opportunities a major tool for such strategic control is a marketing audit. decision and reward systems. Marketing control : Marketing control involves evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained.The marketer should conduct a SWOT analysis.product or brand. Many companies now view marketing as an investment rather than an expanse. 2. 4. Implementation involves day to day . In an increasingly connected world. Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary. independent and periodic examination of a company’s environment.Marketing planning :Involves deciding on marketing strategist that will help the complain attain its overall strategic objectives. It is mostly depend on how well the company blends its people. Page 7 of 31 . when. 3. by which it evaluates the company’s overall strengths. Market implementation : Marketing implantation the process that turns marketing plans into marketing actions in order to accomplish strategic marketing objectives.positioning .the marketing mix . Its purpose is to ensure that the company achieves the sales. Marketing strategy consists of specific strategies :target markets . Marketers are developing better measures of return on marketing investment the net return from a marketing investment divided by the costs of the marketing environment.and marketing expenditure levels. and how. where. Implementation addresses the who. weaknesses opportunities & threats. and company culture into a cohesive action program that supports its strategies. organizational structure. A detailed a marketing plan is needed for each business .

List of external factors:- 1. Suppliers and middlemen 4. management has relatively more freedom to decide. Nature and types of employees 8. etc. communication. Competition 3. they are controllable. etc.Increasingly marketers are using customer-centered measures of marketing impact. List of internal factors:- 1. And hence. rules. Company’s general policies. General and marketing objectives 2. Resource ability of company 6. marketing manager has to take into account all these internal and external factors. banking. Marketing mix must be adjusted with relevant internal factors. INTERNAL FACTORS These factors are internal to organisation. While deciding on marketing mix. Note that the internal factors do not mean the company has complete control over them. customer. and customer lifetime value. insurance. Availability of infrastructure facilities. With reference to internal factors. warehousing. social welfare. Organizational structure 7. They have tremendous effect on success of marketing programme. EXTERNAL FACTORS They are uncontrollable factors. Page 8 of 31 . Availability and quality of raw materials 5. some are internal factors while others are external factors. Management attitudes toward value. customer retention. No company can deny the role of external factors in designing marketing mix. Demand 2. etc. They are also known as organizational factors. 4. such as customer acquisition. FACTORS AFFECTING TO MARKETING MIX Marketing mix is affected by a number of factors. like transportation. and procedures 3. Personal factors related to management. They are also called the environmental factors.

economic. It can be an effective growth strategy if your acquisition target occupies the markets into which you want to diversify. 2. The lower financial cost of a merger comes with a corresponding loss of control: You share ownership with others after a merger. Acquisition:-Sometimes the fastest way to gain new markets or diversify your product range is to buy a company that competes with you or is active in a related field. cultural. In each case. Partnership:-A growth strategy based on entering into partnerships with qualified companies brings with It the advantages of a merger or acquisition without the high cost or loss of control. If you have many different products for sale. Broadening a line means you can offer related products to each customer. Four broad growth strategies are diversification. You might partner with a foreign distributor to access the market where he is based or partner Page 9 of 31 . etc. product development. Product diversification lets you offer different products to different customers. 3. selling internationally or reaching new types of customers. you can sell more products. If you have access to more customers. promote your products to them and make it convenient for them to buy your products. 4. Innovations and inventions 9. 5. Growth Strategy:- Definition :. Consumer behaviour (all social. the benefits depend on how well you can integrate the new business into your own operations. adding an online presence. Ethical consideration and social responsibilities 10. you can increase total sales. Merger:-An equally risky but less costly growth strategy is a merger with a related or competing business. identify the needs of the potential customers as they relate to what you are selling. Sales growth is based on a broadening of your product lines and on product diversification. New Markets:-An effective idea for growth is entering new markets. depending on customer preferences and characteristics. Company acquisition is risky because it means making a large investment. the merger takes place between companies that bring equal value to the table and results in a larger. 5. Economic conditions and business cycle 7. Government economic policies and restrictions 8. even at the expense of short-term earnings. Types of Growth Strategy:- 1. and market development. you have to define the segments of the new markets you intend to target. and other factors) 6. Global economic factors. New Products:-Another way to increase business volume is to focus on your products. more competitive business that has the potential for improved performance. Ideally.Strategy aimed at winning larger market share. market penetration. You can target new markets by opening additional retail locations.

donations. e. which may include packaging. tooth paste Shopping Product: Consumer good that the customer purchase after the process of selection. It requires characteristically compares on such bases as suitability. e.Product Classification:- Product refers to anything that can be offered to a marketer for attention. & with a minimum of comparisons and buying effort. [1] In retailing. Convenience Product: Consumer product that the customer usually buys frequently. price. clothing Specialty product Speciality Product: Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. There are four types of consumer goods. e. price. Product Classifications and Types 1. for example. A service is another common product type. Cotton & Cotton. quality. immediately. and style. Expensive and fashionable shopping goods Ameer Adnan. in a promotional campaign or shared sales channels. partnership also means you have to share the benefits. use or consumption that might satisfy a want or need. products are bought as raw materials and sold as finished goods. The partnership agreement specifies the areas where you intend to cooperate. While the risks and costs are lower. with a company making accessories for your own products. color.g. Unsought product: Consumer products that the consumer either does not know about or do not want to think normally before buying. Types of Product Classification . brand and seller’s services and reputations. Unit -2 A. In manufacturing. Page 10 of 31 . products are called merchandise. It has some emotional feelings. acquisition. Product Innovations Product Innovation:- Product:. A product is a set of tangible and intangible attributes. Consumer product: Product bought by final consumer for personal consumption.g.g.A product is anything that can be offered to a market that might satisfy a want or need. quality.

Industrial Product: Product bought by individuals and organization for further processing or for use in conducting a business. cell one) (2) Dynamically continuous innovations: An innovation is regarded as a dynamically continuo us. improvement in laser jet printers. attributes. Paper. such changes have a twofold connotation. For example. and as such continues innovations do not disrupt established usage and behavior patterns. cleaning agents and paints are examples. forests. in terms of technology. pencils. marketing research services. viz. features. oceans. Approach 1: This approach classifies innovative products based on the degree to which the new product and service offering would upset established consumer usage and behavioral patterns. (1) Continues innovations: A product is regarded as a continues innovations. and discontinues innovations. Product Innovation:- (A)Meaning: A Product and service offering is regarded as an “innovation”. (B). digital TVs. consulting.  There are changes in technology. Capital Items: Capital items consist of office accessories and operating materials.  The product is “innovative” if it is “new” in terms of form. Materials and parts: Raw materials are the basic materials that actually become part of the product. attributes and features. saving razors. if the product changes in terms of form. but they do not become part of he finished product. and two. oils. or change in call plans (airtel. as well as impact on consumer consumption behavior.2. one. if it exerts some influence on usage and behavior patterns. they could also be line extensions. Supplies: Supplies facilitate productions. advertising. it is not essentially a product but an improvement over the already existing one. management. innovations can be classified into three categories. and overall benefits. in terms of consumption usage and behavioral patterns. These services can be acquire internally as well as externally. Classification Of Product innovation There are two sub approaches to classify “innovative products” as per the product oriented definition. continues innovations. They are provided form mines. As per this approach. farms and recycled solid wastes. if it is a modification over an existing product. Industrial Services: Industrial services include maintenance and repair services such as machinery repair and business advisory services such as legal. but this influence is not Page 11 of 31 . dynamically continues innovations.

. (1) Artificially new: Embody not much of a change . home medical tests and kits.The existence of the product in the market (as competitor’s offering. and do not much impact user satisfaction .features and attributes can impact consumer satisfaction . because the product is new . (3) Discontinuous innovations: Discontinuous innovations lead to disruption of usage and consumption behavior patterns . For example. differs a little over the existing products and provides greater benefits . In other words. the laser printer replacing the dot-matrix printers . The most commonly used classification has been propose by Thomas S. The walkman giving way to the portable CD players. and discontinuous innovations. if the company starts manufacturing or marketing it for the first time. cell phones. it is regarded as an innovation. Innovations can be classified as artificially new . Based on two dimensions. the postal main giving way to email and internet . or even as consumers’ awareness) is disregarded. marginally new . it does not totally change behavior patterns. For example . (B)Product-Oriented: Based on varying perspective and orientations.The product is “innovative”. technological and behavioral. the firm orientation treats the “newness” in terms of the company’s perspective. firm-oriented. market-oriented.for the traditional glucose and diabetes blood test giving way to the home kit .totally disruptive. . For example . Let us discuss each one of these: (A) Firm-oriented: As per this approach. as the usage use greater benefit . and leads to customer satisfaction . Robertson. Robertson has classified the new products and innovation.. and genuinely new . For example. product-oriented. (2) Marginally new : Here . Types of product innovations:- The term “Product innovation” has been described with varying perspectives and orientations. if it is “new” to the company. higher it ranks on the scale of “innovativeness” . (3) Genuinely new: This implies a totally new product that impacts user satisfaction completely . or the pager giving way to the cell phone. For example .the radio/record player giving way to portable music and sound . innovative products can be classified on the basis of how the “newness” in form . but also requires consumers to change to new behavioral patterns in terms of usage and consumption. a new flavor of an ice cream . as long as it is “new” to the company. Page 12 of 31 . new products have been variously classified.the telephone giving way to the mobile phone . it is regarded as an innovation. a product or service offering is regarded as “new”. there is some level of change in customer satisfaction. Approach 2: According to another approach . there is a change not only in the technology . microwave Owens. and consumer-oriented. the greater the degree of satisfaction . it differs from existing product and service offerings . viz.

they fall as most radical. and the consumer does not have to adopt a new purchase. or product variant (new form. better picture quality.they are truly “innovative” in the sense that they are technologically superior. size.(a) Continuous innovations: A continuous innovation is one that entails modification over an existing product. of the original Amul Milk Chocolate Other examples: Laser printers replacing earlier versions a change from VCDs to DVDs was illustrative of better technology. Example: all line extension.  The technology used to manufacture the new product is different from the one that produced the original or already existing product.  The technology used to manufacture the new product is not different from the one that produced the original or already existing product. and also require considerable behavioral change within consumers with respect purchase and usage patterns. It is illustrative of little technological change.  The technological change is brought either to increase efficiency. usage and consumption pattern to use it. (b) Dynamically continuous innovations:  An innovation is regarded as dynamically continuous. or the semi-automatic washing machine giving way to the fully automatic one. Example: the walkman giving way to the portable CD player. Example:. or provide greater valve to the consumer. consumption and resultant experiences. (c) Discontinuous Innovations:  On a continuum. when it includes some technology change in the product. but requires no behavioral change on the part of the consumer for product usage. various flavor of Amul Chocolate are line extension. usage and consumption pattern to use it. consumption and result change experiences. flavor etc) For example. Page 13 of 31 . but requires no behavioral change on the part of the consumer for product usage. and the consumer has to adopt a new purchase.The telephone giving way to the mobile phone. or the 3G and GPRS providing email access while on move as against email access on the computer/laptop.

or divest. Table Product Line Analysis Maintain. Homebuilders show a model home to which additional features can be added. sold to PRODUCT LINE: In offering product line . harvest. Product –Mix Width Persona Oral Home & Personal Care Food l Care Deodoran Color Tea Coffe Ice Laundry Skin Hair Food Wash Pepsoden ts Cosmeti e Crea Care Care Lux t cs Brook m Surf Excel Fair & Sunsilk Lifebuoy Close-up Axe Lakme e Bru Product. This modular approach enables the company to offer variety while lowering production costs. are.companies normally develop a basic platform and modules that can be added to meet different customer requirements.1. Rin lovely Natural Kissan Line Liril Rexona Bond Kwality Wheel Pon’s Clinic Knorr Hamam Lipton Walls’ Length Annap Breeze urna Dove Pears Rexona 1. Product Line Definition:. They also need to understand each product lines market profile. Product-line managers need to know the sales and profits of each item in their line in order to determine which items to build.“Product line is a group of products that are closely related because they functions in a similar way.Unit -2 B. Page 14 of 31 .car manufacturers build their cars around a basic platform.

Companies that emphasize high profitability will carry shorter lines consisting of carefully chosen items. Still another objective is to create a product line that protects against economic ups and downs. order-processing costs .price goods.and premium segments. and new. (2) The company may wish to tie to tie up lower –end competitors who might otherwise try to move up –market. washing machines. Eventually. A pattern of product – line growth followed by massive pruning may repeat itself many times. Product lines tend to lengthen over time. costs rice: design and engineering costs. Excess manufacturing capacity puts pressure on the product –line manager to develop new item. one objective is to create a product line to induce up selling :Thus Maruti would like to move customers up from Maruti 800 to alto or Zen. transportation costs. and others attract a growing number of shoppers who want value. The company can stretch its-line down-market. A different objective is to create a product line that facilitates cross. If the company has been attacked by a lower – end competitor. it often decides to counterattack by entering the low end of the market. The controller may call for a study of money – losing items . The sales force and distributors also pressure the company for a more complete product line to satisfy customers. LINE STRETCHING Every company’s product line covers a certain part of the total possible range . A company faces a number of naming choices in deciding to move down. But as item are added. microwave ovens.market. for example . A company lengthens its product line in two ways: by line stretching and line filling.) Page 15 of 31 . Down-Market stretch A company positioned in the middle market may want to introduce a lower-priced line for any of three reasons: (1) The company may notice strong growth opportunities as mass retailers .changeover costs.for example . (3) The company may find that the middle market is stagnating or declining. BMW automobile are located in the upper price rang of the automobile market. someone calls a halt: Top management may stop development because of insufficient funds or manufacturing capacity. televisions.PRODUCT-LINE LENGTH Company objectives influence product –line length. manufacturing. Sony.selling : Hewlett packard sells printers as well as computers. inventory –carrying costs .item promotional costs. and air conditioners under different brand names to cater to the entry-level. (sony did this. faced three choices. Videocon offers white goods such as refrigerators. or both ways. up-market. Companies seeking high market share and market growth will generally carry longer product lines. Line stretching occurs when company lengthens its product line beyond its current range. (1) Use the name Sony on all of its offering.

and evian in bottled water. Page 16 of 31 . The infamous edsel automobile. A company’s machine tools might have a 1970s look and lose out to newer – styled competitors lines.trying to utilize excess capacity. Companies pian improvements to encourage customer migration to higher – valued. continually introduce more advanced versions of their products.line company. The issue is whether to overhaul the line piecemeal or all at once. TWO – WAY STRETCH companies serving the middle market might deside to stretch their line in both direction. Each item should possess a just – noticeable difference. According to weber’s law.  Line filling is overdone if it results in self. Such as Sony Value Line. on which ford lost $350 million in the late 1950s. taking market share away frome bowmar. higher – priced items. Texas instrument (TI) introduced its first calculators in the medium. A piecemeal approach allows the company to see how customers and dealers take to the new style. Mony markets have spawned surprising upscale segments: starbucks in coffee.(2) Introduce lower – priced offerings usings a sub – brand name. or simply to position themselves as full-line manufacturers. (3)introduce the lower –priced offerings under a different name. some of its quality image and that some sony buyers might switch to the lower – priced offerings. met ford’s internal positioning needs for a car between its ford and Lincoln lines but not the market’s needs. trying to be the leading full.but sony would have to spend a lot of money to build up the new brand name. and trying to plug holes to keep out competitors. Gradually .cannibalization and customer confusion. customers are more attuned to relative then to absolute difference. LINE MODERNIZATION DECISION  Product lines need to be modernized. There are several motives for line filing reaching for incremental profits. LINE FILLING  A product line can also be lengthened by adding more items within the present range. and the mass merchants may not even accept a brand that lacks the sony name. without mentioning sony. Microprocessor companies such as intel and AMD. Tzhe risks are that the Sony name loss. haagen – dazs in ice cream.it added calculators at the lower end. trying to satisfy dealers who complain about lost sales because of missing items in the line . UP-MARKET STRETCH companies may wish to enter the high end of the market for more growth. and at the higher end to compete with Hewlett- Packard. modernization is continuous.quality end of the market. This two – way stretch won TI early market leadership in the hand – calculator market. and software companies such as Microsoft and oracle. higher margins. The company need to differentiate each item in the consumer’s mind.  In rapidly changing product markets.

a company contracts its product mix. some product lines become fat from thin. A white – goods company will announce a special low – priced television to attract customers. Alteration or charges in existing products: Page 17 of 31 . washing powers.end item to land prestige to the product line. etc. Hindustan Unilever limited offering ten varieties in its editable items decides to add four more varieties. Here. and the greatest long – term potential. At other times. fat product lines are made thin. A chemical company cut down its line from 217 to the 93 products with the largest volume. detergent cakes. For Example. Some models or varieties. are eliminated. (5) Pesticides. (2) Cosmetic products. Contraction of Product Mix: Sometimes. managers will feature a high. Product Mix Strategies 1.  Product. Hindustan Unclear limited has various products in its product mix such as: (1) Toilet soaps. For example. (3) Edible items. If Hindustan Unilever Limited decides to eliminate particular brand of toilet shop from the toilet shop lines. it may decide to expand its product mix. New lines may be related or unrelated to the present products. 4. “marketing insight: rationalizing brand portfolios for growth” describes some development with that strategy. etc. Which are not profitable. Deepening product mix depth: Here. 3.  The product line manager typically selects one or a few items in the line to feature. (4) Shaving creams and blades. For example. Bajaj Company add Car in its product mix or may add new varieties in two wheelers and three wheelers. but expands one or more excising product lines. a company will not add new product line. Here . When company finds it difficult to stand in market with existing product lines.line managers must periodically review the line for deadwood that is depressing profits. it is example of contraction. the largest contribution to profits. Expansion of product Mix: Expansion of product mix implies increasing the number of product lines. Contraction consists of dropping or eliminating one or more product lines or product items. This strategy results into more profits from fewer products. Sometimes a company finds one end of its line selling well and the other end selling poorly. 2.

marketer may improve one or more establish products. Trading down strategy leads to attract price-sensitive customers. 6. effective salesmanship. Consumers can buy the high status products of famous company at a low price. products are not undergone any change. Maruti udyog limited decide to improve full efficiency of existing model. qualities. 8.  Those who cannot afford the original high priced products can buy less expensive products of the same company. and /or publicity. Trading down:  The trading down product mix strategy is quite opposite to trading up strategy. In short. 5. New prestigious products increases popularity of company and improves image in the mind of customers. Developing new users of existing products:  This products mix strategy concerns with finding communicating new users of products. It is possible in terms of more occasions. 7. demand of its cheap and ordinary products can be encouraged.  Instead of developing completely a new product. Modification in forms of improvement of qualities all features or both. and premium quality products decide to add lower-price items in its costly and prestigious products lines. Products differentiation:  this is a unique product with strategy. prestigious. The new products is the instead to strengthen the prestige and goodwill of the company. and superior performance. the company tries to convince consumers that its products can offer more benefits. or varieties. strong sales promotion techniques. Product differentiation involves superiority of products over the competitors . This strategy involves no change in price. By trading up products mix strategy. services. A company producing and selling costly. Company can communicate the people the distinct benefits of its products Page 18 of 31 . or more varied uses of existing product. Improvement or alteration can be more profitable and less risky compared to completely a new product. features. Trading up:  Trading up consists of adding the high-price-prestige products in its existing products line. more quantity at a time. For example . No attempts are made to disturb products lines and products items.  By using rigorous advertising. coca cola may convince to use its soft drink along with lunch. For example.

Intermediaries perform the duty of eliminating the distance between the two. internet selling and selling.Risk taking: Assuming the risks of carrying out the channel work.Unit -3 A.Promotion: developing and spreading persuasive communication about an offer.Indirect channels: when a manufacturer gets the help of one or more middleman to move goods from the production place to the place consumption the distribution channels is called indirect channel. Manufacturing and customers are two major components of the market. (4). There is no standardized level which proves that the distance between the two is eliminated. (3). grading . (A). Marketing Channel Usefulness of market intermediaries: Member of the marketing channel and perform many key functions.Financing: acquiring and using funds to cover the cost of the channel work. assembling and packaging . (5). Some help to complete transactions.Contact: finding and communicating with prospective buyers. including activities such as manufacturing. (8). Types of channel distribution: Types of channel of distribution are as follows. Following types are the main types of it. Physical Distribution: transporting and storing goods (7). (1).Matching : shaping and fitting the offer to the buyers needs. Their description is as follows. (6).information: Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and wading exchange (2). mail order selling. Direct channel or zero level channels : when the manufacturer instead of selling the goods to the Intermediaries sell is directly to the consumer then this is known as zero level channel.Negotiation: reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred. Page 19 of 31 . (B). Retail outlets.

 Organizational customers: . The first set leads to a selection of one or more channels. (3). (2).customer location is another important factor determining the type of channel to be used. the wholesalers after purchasing the material in large quantity from the manufacturer sells it in small quantity to the retailer. Two level channel: In this method a manufacturer sells the material to a wholesaler. The final step is plan finalization. Then the retailers make the products available to the consumers. There are several factors that an analysis of the market should explore. Market factors:- Analyzing and understanding the target market is the first step selecting marketing channels. Channel selection criteria:- Selecting marketing channel can be a complicated process.  Customer preference: . there is no endless supply of available intermediates sitting around waiting for producers to give them a call.(1).organizational customers frequently have buying habits that are different from those of other customers. COMPETITORS:- Page 20 of 31 . The elements that managers examine as they define channel strategy can be grouped into market factors and product factors. three level channel: Under this one more level is added to two level channel in the form of agent. Selection of Marketing Channel: Marketing managers face two sets of decisions when considering marketing channels. Then the agents sell the material to the wholesalers. An agent facilitates to reduce the distance between the manufacturer and the wholesalers something big companies who cannot directly contact the wholesalers. particularly if part of the channel is outside the producer’s direct control. The wholesalers to the retailer and then the retailer to the consumer here.The channel which is most preferred by customers. In addition. they take up the help of agents. Such companies appoint their agents in every region and sell the material to them. ranging from customers to the types of competitors. This method is also useful for selling FMCG. This method is issued for expensive watches and other like products. The second set deals with the selection criteria and examines the three levels of distribution.One level channel: In this method an intermediary is used. Here a manufacturer sells the goods directly to the retailer instead of selling it to agents or wholesalers. This medium is mainly used to sell soap.  Geography: . the wholesalers to the retailers and in the end the retailers sells the material to the consumers.

other factors may enter into the decision as well. particularly if it is also of low value. pharmaceuticals and computers are products whose complexity affects the way in which they are marketed. Product factors:- Even products that end up at the same retail location may need different intermediaries earlier in the channel. it is better to find the best available intermediaries in the market. Customers require less support once the product has established itself. Often a good channel choice is one of that has been overlooked or avoided by competitors. Scientific equipments. This indicates either a direct sales force or a limited number of highly qualified intermediaries. Items with law cost and high volume are usually distributed through large. For new entrants. Marketing  Significance (importance) of marketing: Communication Page 21 of 31 .  Other product factors: Depending on the product in question. Unit -3 B. well-established distribution networks such as grocery wholesalers. Some of these include whether a product is fragile or perishable and whether not it requires significant customer satisfaction.  Value: The value of the products also affects its distribution channel choices. nuclear reactors. jet aircrafts.  Complexity: Some products are so complicated and require so much support that producers need to stay closely involved.  Customer perceptions: The perceptions customers have of producers also play role in channel decision making. Nature and availability of intermediaries:- A question that arises very often in the channel decision is “Are there enough of the right kinds of intermediaries to build the desired channel?” we need to find intermediaries that can handle the products capably and provide adequate service to final customers. In some cases. the market may try to duplicate his competitors’ channel in order to have his products replace that of competitors.  Size and weight: A product with significant size and weight can face restricted distribution channel options.  Life cycle: A product category’s stage in the life cycle can be an important factor in selecting a channel and channels may have to be adjusted over time.

emerging markets that it could supply products or services. But sponsoring smaller events. such as a sale or profits reaching certain there should. Developing strategic vision: one of marketing functions is to constantly look for new ways of growing the company’s revenues. Beside. Publishing the company’s charitable activities is one way this is accomplished. they first need to know the company exists and what it is selling. regional or national event the company could participate in to generate publicity. How they can solve a customer problem or meet a customer need highlighting the shortcomings of competitors is another popular tactic. Marketing and Communications role is making sure the company is under consideration for these awards. To dividing ways of selling additional services or products to the customers that a company already has is another way to accelerate growth. The company could discover existing. such as kid’s local sports leagues. Page 22 of 31 . The marketing message must show specific reasons the customer should purchase its products or services. Company purchase sponsorships to sporting events that receive national TV exposure for examples. 2 . Fostering goodwill: company’s use communication strategic to build on image of being a good corporate citizen. such as joint venture. Importance are as under. 3. This can result in increased interest in the company’s stock. Repetition is a part if creating brand awareness. To reach as many potential customers as possible and tell them what the company has to offer. Many companies have a large section of their website devoted presenting the reasons individuals should be interested in working there. 1. Expressing competitive advantage: marketing & communication strategies are design to position of the company is being superior to its competitors. the company must have a good understanding of what demographic groups are most likely to become customers. If it is a public company or make it easier for potential equity Partners to find the company if the company is private. acquisition or introduction of new product. 6. many times the message presents the benefits of these products or services…. they need to continually attract the best talent available. creating general awareness about the company the news releases alert the investment community to wheat.Creating brand awareness: for consumers to buy from the company. If the customer sees the communication from the company a number of times. Business publication has annual awards or lists of the best companies to work for. there is a higher chance of making the sale. and apply marketing expenditure to the media that serve these groups. The company is accomplishing. can also be effective 5.Attracting talents: As companies grow. A strategic vision means being on the lookout for new opportunities and creating strategies for the company to take advantage of them. The marketing department in a company also tries to find community. Advertising and promotion strategies are formulated.A business may have developed terrific products and put together a supremely talented management team growing a business comes down to the ability to sell.Informing investment community: companies send news releases out about milestones reached. They also announce major event. 4. To be successful. Communication strategies are used to show potential employees that the company is good place to work.

Process of marketing communication : Sender Encodin Message Decoding Receiver g Media Noise Feedbac Respons k e 1. Decision of marketing Communication: Page 23 of 31 . Example: McDonald’s advertising agency assembles words. Noise: the upland static an distortion during the communication process which result in the receiver’s getting a different message then the one the sender sent. 8. 6.Message: the set of symbols that she sender transmits 4. 7. 3. Response: the reaction of the receiver after being exposed to the message. Encoding: the purpose of putting thought into symbolic form.any of hundreds of possible response. sounds. television and the specific television program’s that McDonald’s sleets. Media: the Communication Channels through which the message moves from sender to receiver. In this case. such as the consumer likes McDonald’s next time. Decoding: the process by which the receiver assigns meaning the symbols encoded by the sender a consumer watches the McDonald’s ad.Feedback: the part of the receiver’s response communicated back to the sender. 1. 5.McDonald’s research shows that consumer are truck by and remember the ad.the consumer is distracted while watching the commercial misses its key points. or consumer write or call McDonald’s praising or criticizing the ad or products. Sender : the party sending the message to another party 2. and illustrations into an advertisement the will convey the intended message.

and services to create exchange that satisfy individual and organizational objective.  Countries of the world nearing to participate in the global market opportunities. pricing.The American Marketing association defines the term: “ International marketing is multinational process of planning and executing the conception.” Page 24 of 31 . Definition: 1. goods. Customer’s needs and want are not limited to the product and marketed within the boundary of country. promotion.Unit -4 A. and distribution of ideas. and has made the world global village. International Marketing Introduction: Availability of the advanced communication and transportation facilities has reduced the physical distance among the nations of the world.

3. International marketing environment consists of global forces. and global marketing forces affecting international marketing mix. Definitions: We can define the Word ‘International marketing environment as under. such as economic. and hence. 4. it can be said: International marketing is the marketing for the customer of other countries. 3. 2. we can define it as: Marketing activities across the border can be said as international marketing. International marketing environment is a set of controllable (internal) and uncontrollable (external) forces or factor that affects international marketing mix is prepared in light of this environment. extent. (a)Global Factors International Uncontrollable Environment (b) Domestic Factors Domestic Uncontrollable Environment (C) Organizational Factors Internal Marketing Environment Product Price International marketing Decisions Page 25 of 31 . cultural. International marketing environment for any marketer consists of internal.’ 1. Marketing Activities among the counties of the world can be turned as international marketing. social. International marketing concerns with marketing products in foreign countries. It is the environment that determines favorable or unfavorable conditions. domestic. and geometrical and ecological forces. Environment is made of such controllable and uncontrollable forces. International Marketing Environment: Environment Consist of forces. It involved designing marketing programme ( 4P’s) to arrive at desired exchange with foreign customer that satisfies their needs and wants. We can define the term as: International marketing means to produce product ( goods and services ) for Promotion the foreign customer and to make Place necessary arrangement to supply them. In this reference. Finally. depends on effect of marketing environment and ability of the firm to respond effectively. that affect international marketing decisions. legal.2.

World. Geographic/ecological/climate-related factors 8. Figure 1: Three-level International Marketing Environment Factors of International Marketing Environment: Factor of forces involved in the International Marketing Environment can be classified into three categories as stated in the figure 1. etc. Competition 6. Global relation among nations and degree of the worldwide peace. 9. This environment affects international marketing mix in several ways. Overall economic. Important domestic factors include: 1. 1.Political climate/stability/philosophy 2. Political and legal factors 3. Availability and quality of infrastructural facilities Page 26 of 31 . Functioning of international organizations like UNO. demographic. Availability of Marketing Facilities and functioning of the international agencies. Main global factors include. Legal system and business ethics 4. Global Factors: Such factors are related to the world economy. Culture factors 5. 7. etc. 1. Broader picture of global phenomenon affects every decisions of international marketing. social and cultural. and other domestic aspects constitute domestic environment for international marketing. WTO. Customer-related factors 2. Government approach and attitudes toward international trade 3. 2. Domestic Factors: Domestic factors are related to the economy of the nation. Social factors 4. political and legal.

These factors include: 1. Managerial attitudes toward other nations. Internal relations with other departments 10. the US the main engine of world economy . social welfare. Personal factors related to management 4.5. 8. 3. While America. Form of organization and organizational structure. Technological factors 8. Europe and Japan have become slow growth economies. Economic environment: In the recent global economy has been in the midst of a substantial transformation. Functioning of institutions and availability of facilities 7. Society shapes the beliefs. values. etc. and norms that largely Page 27 of 31 . 5. Nature and types of employees 9. etc. Russia China and India have been doing quite well in recent years. According to the world Economic situation and prospects 2006 published for and on behalf of the UN. Resource ability of company and marketing mix 7. Company’s policies and rules 6. Internal or organizational factors: These are internal and controllable factors. Social-Culture Environment Purchasing power is directed toward certain goods and services and away from others according to people’s tastes and preferences. is facing a deceleration in economic growth on account of low household savings and a large and growing external deficit. Company’s relations with other stakeholders and service providers. Ecological factors. Managerial philosophy of company 3. Objectives of company 2. On the contrary. Asia – China . have become surging forward in economic growth. customers. They are related to internal situation of company dealing with international trade. Availability and quality of raw-materials 6. and India in particular – and Russia.

customs.define these and preference. and to protect the interests of society from unbridled business behavior. but many elements that shape the consumption behavior of people very in nature. International (Global) Marketing Decisions:  International marketing decisions are same as domestic marketing. a worldview that define relationships to themselves. attitudes and aspirations of people vary significantly across different customer groups and regions. INCREASE INBUSINESS LEGISLATION : Business legislation has three main purposes: to protect companies from unfair competition. Political-legal environment Marketing decisions are strongly affected by developments in the political and legal environment. premiums-as inappropriate or “unfair” instruments for promoting products. Although each new law may have a legitimate rationale. There are elements of the culture that are common to all. Those firms planning to enter the global markets have to decide on following key decisions: Page 28 of 31 . to nature. it may have the unintended effect of sapping initiative and retarding economic growth. Indian is a complex nation of culture and sub-cultures. to society. over 200 mother tongues and around 2000 dialects. promotion. and pressure groups that influence and limit various organization and individuals. Dress codes. With 30 different languages. price. Somatimes these laws also create new opportunities for business. contests. Thailand requires food processors selling national brands to market low-price brands also. to others. government agencies. habits. social systems. The environment is composed of laws. for example. Two major trendsdeals with the increase in business legislation and the growth of special interest groups. People absorb. Values. Regional differences in language. almost unconsciously. product. only difference is that all marketing decisions are taken with reference to foreign or international markets(or customers). to protect consumers from unfair business practices. values. religions. A central concern is this: At what point do the costs of regulation and enforces may be lax or overzealous. vary from region to region. A major purpose of business legislation and enforcement is to charge businesses with the social costs created by their products or production processes. Norway bans several forms of sales promotion –trading stamps.  More clearly. and to the universe. and distribution decisions are made for international buyers. to organizations. so that low-income consumer can find economy brands. and caste systems make the socio-cultural environment of India very complex. Several countries have strong consumer protection legislation . There are some interesting insights that come from a variety of studies.

There are two options in exporting. When. Now.e. the next imperative marketing decision is market entry. International markets decision: Whether to go for international market? 2. When company has enough capabilities to deal with international markets. and/or 4. company itself exports products in foreign markets. When company’s has excess production capacity and there exists attractive opportunities outside. and. When domestic governments insist.. as suggested by Philip kotler. the first. and/or 3. i. the second. compared to domestic markets. the company decides to enter the international markets. Market selection decision: To whom of which country to sell? 3. 1. export department: A company maintains full-fledged export department to sell its products in foreign markets. foreign markets seem more attractive or profitable.1. a company prefers to enter the international market in following situations: 1. Market Entry Decision:  A firm has selected international markets to operate in. include: A. opening branch in foreign market: some companies open their branches or shops in foreign markets to serve consumers. Some entry options in exporting. Exporting: Exporting involves selling domestic products in foreign markets. In short. force. Organization decision: What type of organization should a firm adopt to manage international business?  When international markets seem to more attractive and the company is capable to exploit these markets. There are several options to choose an appropriate entry strategy. B. Marketing mix decision: Which type of marketing mix should a firm prepare? 5. Market entry decision: How to enter the international market? 4. company export through intermediate agency or agent. and/or 2. It is easier and common entry option. Page 29 of 31 . Exporting consists of producing the products in home country and selling or exporting the same in the international market. which of the options to be used for foreign market entry. and/or encourage businessmen for international markets. how to enter the market .

the option depends on a lot of factors such as market stability. First. jinbei GM Automotive Co. foreign production facilities offer distinct advantages. or expropriation. Joint venture: The joint venture is jointly owned and managed by host and foreign companies. and distributors. customers. If the market appears large enough. Third the firm develops a deeper relationship with government. by two companies of two nations. HMT represent joint venture with Swiss Machines and Tools. representatives or middlemen in foreign markets. local suppliers. Fourth. Saab. a firm appoints agents. enabling it to better adapt its products to local environment. A foreign company holds necessary equity to get voice in management not enough to completely dominate the venture. appointing distributors: in this entry option. costs of production and marketing. the firm retains full control over its investment and therefore can develop manufacturing and marketing policies that serve its long. competition. Isuzu. 3. Direct Investment In international market:- The ultimate form of foreign involvement is direct ownership of foreign-based assembly or manufacturing facilities. D. Suzuki of Japan has with Maruti Udyog. Fiat Auto Holdings. etc. the firm strengthens its image in the host country because it creates jobs. appointing traveling salesmen: some companies appoint salesmen to search customers in foreign market and serve them. It can be Page 30 of 31 . Direct foreign investment: A company sets up its own factory in other countries.. Suzuki. and other factors determining favorableness of situation. 2. foreign- government investment incentives. Proctor and Gamble has joint venture with Godrej. government policies. For example. General Motors has invested billions of dollars in auto manufactures around the word. Company should select this strategy carefully as there is considerable risk and uncertainties in some countries. Daewoo. Structure of joint venture depends on government policies and approach of host country. the firm assures itself asscess to the market in case the host country insists locally purchased goods have domestic content. such as shangai GM. The foreign company can buy part or full interest in a local company or build its own facilities. and AvtoVAZ. the firm Secures cost economies in the form of cheaper labor or raw material. worsening marketing . Fuji Heavy Industries. Its carries out all production and marketing activities in foreign land. But. and freight saving.C. The main disadvantage of direct investment is that the firm exposes s large investment to risks such blocked or devalved currencies. Second. Fifth.term international objectives.

pricing decisions. Today. 4. It’s critical then. even in situations where the actual transaction doesn’t happen on the web. Product The first of the Four Ps of marketing is product. Place Often you will hear marketers saying that marketing is about putting the right product. search engine marketing. Marketing mix consists of 4P’s – product decisions. video marketing and more. promotion decision. while price elasticity considerations may influence our next two Ps 3. Here. at the right place. Promotion looks at the many ways marketing agencies disseminate relevant product information to consumers and differentiate a particular product or service. Whether you sell custom pallets and wood products or provide luxury accommodations. email marketing. public relations. demand and marketing strategy. Price determinations will impact profit margins. Price Once a concrete understanding of the product offering is established we can start making some pricing decisions. Promotion includes elements like: advertising. social media marketing. Each touch point must be supported by a well positioned brand to truly maximize return on investment.expensive to as reduce or close down operations. all marketing mix decisions are taken with reference to foreign customers and global marketing environment. A product can be either a tangible good or an intangible service that fulfills a need or want of consumers. beause the host country might require substantial severance pay to employees. at the right time. it’s imperative that you have a clear grasp of exactly what your product is and what makes it unique before you can successfully market it 2. Similar (in concept) products and brands may need to be positioned differently based on varying price points. and place or distribution decisions. 1. supply. Marketing Mix Decision:  Marketing mix decision involves preparing marketing mix (strategies) for international market. the initial place potential clients are engaged and converted is online. Promotion We’ve got a product and a price now it’s time to promote it. to evaluate what the ideal locations are to convert potential clients into actual clients. Page 31 of 31 .  Marketing mix decisions remain same as domestic market except the target market. at the right price.