Suggested Short Notes of Marketing

From (June 2015-Dec 2022)

1. Meaning of distribution
Distribution includes all the various activities the company undertakes to make the product
accessible and available to target customers. It involves the marketing channel and physical
distribution. Marketing channel makes the product available to the customers. Physical
distribution makes the product accessible to the channel members and customers. Distribution
is also called the ―the other half of marketing.‖ It fulfills the gap between the producer and
consumer
2. Relationship marketing
Relationship marketing is one of the emerging concept of modern marketing. Relationship
marketing is building long term mutually satisfying relations with customers in order to earn and
retain their long term loyalty. In relationship marketing, customer is regarded as a partner in
creating value. Relationship marketing is a long term partnership between marketer and
customer. Both parties collaborate on identifying needs and designing marketing mix for
customer satisfaction and organizational goal achievement.
3. Innovative product.
Today's business firms should develop and offer new product to retain in the hyper competitive
market. New product may be in the form of modified product, improved product and innovative
product. Innovative products are those products which are developed and introduced in the
market for the first time, not previously sold by any firm. Development of innovative products
involves high costs, risks, efforts and time required for profitability of the company.
4. Economic factors affecting the consumer buying decision.
i. Level of Personal Income
ii. Income of Other Members of the Family
iii. Expectation of Income in Future
iv. Availability of Liquid Assets
v. Availability of Credit Facility to the Consumer
vi. Past-Expenditure Habits
5. Psychological pricing
Psychological pricing is one of the popular pricing strategy which encourages emotional buying.
It influence buyers to perceive the price favorably. Psychological pricing includes prestige pricing,
odd-even pricing, psychological discounting, customary pricing and promotional pricing. 99
pricing is one of the examples of psychological pricing.
6. Market
The market consists of all potential customers having a need or want who possess ability and
willingness to engage in exchange to satisfy that need or want. In other words, there should be:
• People with needs or wants to satisfy
• Money to spend
• Willingness to spend through exchange

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• Markets can be: Consumer, Business, Institutional, and Global.

7. Warehousing
Warehouse is a place where goods are stored for certain period for the distribution of goods to
the target market whenever and wherever required. While warehousing is a specialized system
and process of storing surplus goods (keeping buffer stock) for use or consumption in future
because goods may not have demand immediately after the goods are manufactured.
8. Advertising
Advertising is non-personal presentation and communication of product, service or organization
through paid media with identified sponsor. It is one of the element of marketing
communication. Various indoor , outdoor, direct or display media are used for advertising. It is
mass communication and message is controlled by advertisers. It is salesmanship in print.
9. Meaning of public relations
Public relation is a management tool designed to favorably influence attribute toward an
organization, its products and its policies. It is a social philosophy of marketing expressed in
policies and practices the relationship between marketing funds and publics can be maintained
by using external media and internal media. The basic tools that can be used in public relation
includes annual reports press conference, press release and so on.
10. Intangible product
Intangible products are the goods whose ownership cannot be transformed from one person to
another. Such product cannot be touched seen, stored or owned. Such product can only be
realized. Before services are purchased, customers cannot handle examine and tried out. They
also cannot be measured like physical items.
11. Market Segmentation
The process of defining and subdividing a large homogenous market into clearly identifiable
segments having similar needs, wants, or demand characteristics. Its objective is to design a
marketing mix that precisely matches the expectations of customers in the targeted segment.
12. Pricing
Pricing refers to an act of determining the exchange value between what buyers get and what
the sellers receives. It is a process of setting prices for various products and services. In short,
pricing is the act of determining exchange value of a product or service.
13. Marketing Environment
Marketing environment comprises all the actors and forces outside marketing that affect
marketing management‘s ability to develop and maintain successful transactions with its target
customers. Marketing is environment specific and change in marketing environment creates
opportunities and challenges in marketing. E.g. economic environment, social environment,
technological environment etc.
14. Shopping Product
Shopping products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style. When buying shopping
products and services, consumers spend much time and effort in gathering information and
making comparisons. Shopping products marketers usually distribute their products through
fewer outlets but provide deeper sales support to help customers in their comparison efforts.
Clothing, furniture, motorbike are the examples of shopping product.

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15. Meaning of E-marketing
E-marketing or electronic marketing refers to the application of marketing principles and the
techniques through electronic media or internet. It is the process of marketing a brand using the
electronic devices that can be used to connect marketers and their customers via the worldwide
wave with the aim of attracting new customers retaining current business and developing its
brand identity. It is useful to exploring domestic as well as international market through internet.
16. Marketing mix
Marketing mix is a set of controllable, tactical tools,-product, price, place and promotionthat
the firm blends to produce the response it wants in the target market. The marketing mix
consists of everything the firm can do to influence the demand for its product.
17. Market Research process
The marketing research process is a six-step process are as follows:
a) Identifying and defining the problem/opportunity.
b) Planning the research design
c) Selecting the sampling procedure
d) Data Collection
e) Evaluating the data
f) Preparing and presenting the research report.
Involving the definition of the problem being studied upon, determining what approach to take,
formulation of research design, field work entailed, data preparation and analysis, and the
generation of reports, how to present these reports, and overall, how the task can be
accomplished.
18. Zero Level channel structure for consumer good
The channel in which no intermediaries exist between producer and consumer is called Zero
level channel. Producers distribute their goods to consumers through multiple shop and chain
stores. Goods are distributed through sales representatives‘ mail order, tele-marketing and
online marketing.
19. Macro environment
The macro environment includes all the factors that can influences the organization and its
marketing mix but that are out of their direct control. A company does not generally influence
any laws, population or economy. It is continuously changing and the company needs to be
flexible to adapt. According to Philip Kotler, ―Macro Environment consists of the large social
forces that affect the micro environments – demographic, economic, natural, technological,
political and cultural forces. Macro environment provides opportunities and threats to the
marketing.
20. E-commerce
E-commerce means that the company or site offers to transact or facilitate the selling of
products and services online. It has given rise in turn to e-purchasing and emarketing
21. Physical distribution
Physical distribution includes all the activities associated with the supply of finished product at
every step, from the production line to the consumers. Important physical distribution functions
include customer service, order processing, inventory control, transportation and logistics, and
packaging and materials.

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22. Cost–plus Pricing
Adding a standard mark-up to the cost of the product is called cost-plus pricing. This is the
simplest methods of pricing, which involve a fixed cost and variable cost per units and adding the
desired profit margin on the total cost.
23. Specialty product
Specialty products are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special purchase effort.
Buyers normally do not compare specialty products. They only invest the time needed to reach
dealers carrying the wanted products. Customers are usually willing to travel great distance to
buy specialty product. Dealers do not need convenient locations, although they must let
prospective buyers know their locations. Bata shoes, sick pack machine, sauna belt, Mercedes
car, etc. are examples of specialty product.
24. Product
According to Kotler (2006) pproduct is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need. Product can be goods,
services, organization, persons, places, ideas, experience, and event.
25. Marketing Information System
Marketing information system consists of people, equipment and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, accurate and relevant information to marketing
decision makers. Components of marketing information system are: internal record system,
marketing intelligence system, decision support system and marketing research.
26. Penetration pricing
Market penetration means setting a low price to enter a competitive market. When market is
matured and competition is very high companies follow this strategy. When company and
product enters and creates solid base price will be increased to get due return.
27. Direct marketing
Direct marketing is marketing without middlemen. It is direct persuasion by manufacturer to
specific customer to seek customer response. Direct marketing can use a variety of channels to
reach the customer such as: door to door selling, direct mail, catalogue marketing,
telemarketing, TV shop, Kiosk marketing, internet marketing etc.
28. Green Marketing
Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in itself or
produced in an environmentally friendly way.
29. Price determinants
Factors that affect pricing are called price determinants. Price determinants are objectives of the
organization, marketing mix strategy, costs, product differentiation, business efficiency, market
demand of the product, economic condition, market competition, government rules and
regulations, market intermediaries, political condition, pressure groups.
30. Industrial Product
Industrial products are those intended for use in making other products or operating a business
or institution. Thus, industrial products are differentiated from consumer products based on
their ultimate use. The types of Industrial goods are raw materials, component parts, major
equipment, accessory equipment, operating supplies, and business services.

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31. Distribution channel
Distribution channel is path made up of various persons and institutions (agent, wholesaler
(dealer, distributor), retailer) that help transfer ownership of product while products being
physically distributed. They help product movement, transfer ownership of products and
facilitating exchanges. Channel of distribution is also known as financial function (due payments
for product) or legal function (due transfer of ownership) of marketing.
32. Marketing intelligence system
provides information about everyday happenings in marketing environment. It involves
environmental scanning. It is a set of procedures and sources used by managers to obtain
everyday information about pertinent development in the marketing environment. The sources
of marketing intelligence are: marketing managers, sales force, middlemen, commercial
detectives, marketing information section etc.
33. Stages of the consumer buying process
Consumer behavior is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use, and disposal of goods and services. Consumer behavior
consists of how the consumer's emotions, attitudes, and preferences affect buying behavior.
There are five stages of the consumer buying process: finding a problem, gathering information,
finding solutions, making a purchase, and reviewing the purchase.
Need recognition
Information search
Analysis of alternatives
Purchase decision
Post purchase evaluation
34. Trade Mark
Legally protected brand is called trademark. In other words, a trademark is a brand that has
been adopted by a seller and given legal protection. A trademark includes not just brand mark
but also the brand name. A brand name or brand mark can be converted into a trademark only
when they are registered with the concerned government office. Thus, all trademarks are brand,
but all brands are not trademark.
35. Unsought product
Unsought products are consumer products that the consumer either does not know about or
knows about but does not normally think of buying. Most new innovations are unsought until
the consumer becomes aware of them through advertising. By their very nature, unsought
products require a lot of advertising, personal selling and other marketing efforts. Life insurance,
blood donation, encyclopedia are examples of unsought product.
36. Concept and types of test marketing
Test marketing is a method of finding out whether the consumers accept the new product or
whether the product is market-friendly and whether the product is viable for sales purpose in
the long run. There are three types of test marketing:
o Standard Test Marketing - In this particular method, products are distributed to the
selected stores of selected areas, stores are audited periodically to identify the sales
situation and profit situation, consumer and distributor surveys are done, and product
problems are is discovered.

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 o Controlled Test marketing - In this method, some stores agree to carry new products for
a fee and the firm becomes very close to these stores. These stores provide report to the
firm regarding all the purchases made by the consumers and their behavior towards the
new products time-to-time.
o Simulated Test marketing – This method is also called as “laboratory test”. These days
this method is used as a “pilot test” or “pretest”. In this method, certain consumers are
sampled from the market place, the company or research firm shows advertisements
and promotions for a variety of products, including the firm‟s new product.
37. Needs
A need is a basic requirement that an individual wishes to satisfy. The most basic concept
underlying marketing is that of human needs. Human needs are state of felt deprivation. They
include basic physical needs for food, clothing, warmth, and safety; social needs for belonging
and affection; and needs for knowledge and self-expression. These needs were not invented by
marketers; they are a basic part of the human makeup.
38. Promotion
Promotion is the one of the major elements of marketing mix which provides various valuable
information to consumers about product, its price, availability, utilities and benefits. Promotion
consists of various activities that facilitate exchanges with target customers through persuasive
communication which stimulates the demand of the product. According to Philip Kotler,
“Promotion includes all the activities the company undertakes to communicate and promote its
products to the target market.” Promotion includes various types of activities such as
advertising, sales promotion, personal selling, publicity and public relations to inform, persuade,
remind and reinforce the target market about the company’s offerings. These activities influence
the customer’s feelings, belief or behavior for buying.
39. Market entry pricing strategy
Market-entry pricing decision is a pricing strategy that a marketer follows while entering to the
market for the first time. Under this circumstance, there may be two alternative pricing
strategies – market penetration pricing and market skimming pricing.
o Market penetration pricing strategy: Market penetration pricing involves setting low
price for the new product in the initial period with a view to penetrate the mass market
immediately and thus obtain a large sales volume and larger market share. After the
market for the product is established, price will gradually be increased.
o Market-skimming pricing strategy: Market-skimming pricing involves setting high price
for a new product in the initial stage assuming that the customers will pay high price for
the new product. But with an increase in competition, the initial price will be lowered to
meet competition and the changed demand.
40. Niche marketing
A niche is more narrowly defined group seeking a distinctive mix of benefits. Marketers usually
identified niches by dividing a segment into sub-segments. For example, the segment of heavy
smokers includes two niches: those who are trying to stop smoking and those who don‟t care. In
an attractive niche, customers have a distinct set of needs; they will pay a premium to the firm
that best satisfies their needs: the niche is not likely to attract other competitors; the nicher
gains certain economies through specialization and the niche has size, profit and growth
potential.

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41. Product line
Product line is a group of closely related products. They perform similar functions, are sold to
the same customer groups, are marketed through the same channels and fall within given price
ranges. Product line strategy includes product line length, product line modernization and line
featuring strategies. For example, if any bakery shop offers verities of bakery product that is
called product line strategy.
42. Importance of understanding consumer behavior
Buyer behavior refers to the activities and actions expressed by the buyer or potential buyer
while selecting, buying and using the product. Understanding buyer behavior is a difficult task
for the marketer because it involves, to a great extent, the psychological phenomenon. which is
difficult to understand. Though it is difficult to understand, the marketers need to understand
the buyer behavior properly to formulate a suitable marketing program. The reasons behind the
need of understanding buyer behavior are –
o Different persons and communities have different needs because they live in different
environment.
o Their needs go on changing and may demand different goods and services in different
situations;
o different persons may demand different goods and services at the same time;
o Some needs are fulfilled while some are not
o Degree of need fulfillment, by and large, depends upon the marketing environment that
exists in the market;
43. Marketing mix
The term marketing mix was coined by Professor Neil Borden. Marketing mix is the set of
marketing tools that the firm uses to pursue its marketing objectives in the target market.
Marketing mix is a blend of product, price, place and promotion tools. Thus, it is popularly
known as four Ps‟ of marketing which was popularized by Professor McCarthy. Nowadays, four
P‟s has expended to seven Ps‟ by adding people process and physical evidence especially for
service marketing.
44. Service product
Any activity or benefits that one party can offer to another that is essentially intangible is called
service product. The product is normally inseparable from service provider. Service product and
its price and quality are varied according to service provider, capacity, goodwill, place and time.
Production and consumption of service are done at same time. So, no organization can keep or
store service. Communication, hotel, restaurant, counseling, and insurance are the example of
service product.
45. Holistic marketing concept
The holistic concept explains that there are so many categories of customers, including
individuals and organizations or individual consumers and society as well, whose needs and
wants are unlimited and are not identifiable at all times. And on the other hand, there is high
level of competition in the market. All the needs of customers cannot be satisfied by a single
marketing effort or limited marketing efforts like in the above-mentioned marketing concepts; in
order to meet all these needs and satisfy all customers, marketer needs to use all possible
marketing tools and effort.
The major tools of this concept are:

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 o Integrated Marketing: This concept emphasis to utilize all available resources effectively
and efficiently to satisfy the various needs and problems of the customers.
o Relationship Marketing: This concept emphasizes to establish and maintain good relation
with all the social groups so that they perceive the company and its products positively.
o Managing Internal Marketing: This concept emphasizes to make all the internal staffs
customer-oriented so that they can provide better services and treatment to customers
for their satisfaction.
o Societal marketing: This concept also emphasizes to focus on social needs and problems
and work for welfare and wellbeing in society.
46. Point out the objectives of distribution
o Delivery of satisfaction
o Standard of living
o Value addition
o Communication
o Employment
o Efficiency
o Financing
47. Any two features of marketing environment
Marketing environment consists of surrounding of the firm which affects the marketing decision
including policies and strategies of a firm. Marketing environment is characterized by following
facts.
o It includes all the factors and forces which influence marketing , sales and consumer
satisfaction.
o It is always dynamic in nature.
48. Price discrimination
If any marketer sets different price for different customer for the same product. It is called price
discrimination. It is a flexible pricing policy where different price is determined for same product
on the basis of types of customer, time, quantity, geographical area, season etc.
49. Sales promotion
Sales promotion consists of all promotional activities other than advertising, personal selling and
publicity that stimulate short-term or temporary market demand for products. The basic
purpose is to stimulate on the spot buying by people through short-term incentives. Incentives
such as a samples, price concessions, and prize contests are offered to customers to encourage
buying.
50. Branding
Branding is a process of creating a unique name, term, design, symbol, or any other feature to
the products. It helps to identify manufacturer of the product. It plays an important role in
marketing. It reflects the features of the product.
51. Components of physical distribution
o Transportation
o Warehousing
o Material handling
o Inventory management
o Order processing

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 o Information management
52. Needs
A need is a basic requirement that an individual wishes to satisfy. The most basic concept
underlying marketing is that of human needs. Human needs are state of felt deprivation. They
include basic physical needs for food, clothing, warmth, and safety; social needs for belonging
and affection; and individual needs for knowledge and self-expression. These needs were not
invented by marketers; they are a basic part of the human makeup.
53. Personality
One of the psychological determinants of consumer buying behaviour is personality refers to the
unique psychological characteristics that lead to relatively consistent and lasting responses to
one’s own environment. Personality is usually described in terms of traits such as self-
confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness.
54. Service product
Service products is the act or performance which is performed for satisfying the customer needs.
A service product is any activities that one party can offer to another that is essentially intangible
and does not result in ownership of anything. Its production may or may not be tied to a physical
product. Intangible, inseparable, variable and perishable are the main features of the service
product.
55. Sales promotion
Sales promotion refers to the demand stimulating devices designed to supplement advertising
and facilitate personal selling. Sales promotion consists of a diverse collection of incentive tools,
mostly short term, designed to stimulate quicker and greater purchase of particular product or
service by consumers or traders. Sales promotion is a direct inducement which offers an extra
value and incentive for a product to sales forces, consumers and traders such as free gift,
sample, coupon, discounts etc.

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