SADHVI MEHROTRA CMS, KANPUR

` Marketing

is the Identification of the NEED of the Customer and then designing the Product accordingly so as to best satisfy that need.

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Substantial increase in Buying Power. A great variety of Goods & Services. Companies can have two way communications with Customers & Prospects. Companies can facilitate & speed up communication among Employees. Websites can provide companies with powerful new information & Sales Channels. Companies can send ads, Coupons, Sample information to Targeted customers.

` Goods Events Persons Properties Information Services Experiences Places Organizations Ideas ` ` ` ` .

Perspective 2. Objectives 4. Means 5. Factory Sales Volumes Selling & Distribution Product .CHARACTERSTICS 1. Focus MARKETING Outside-In Customer Customer Satisfaction 9 P¶s Customer SELLING Inside-Out. Starting Point 3.

Profits MARKETING More Dynamic Seeks Profits by meeting the Need of the Customer SELLING Less Dynamic Seeks Profits by Pushing the Products on the Buyer 8. Dynamic 7. Central Function 9. Production Products into Cash . Conversion Marketing Needs into Products.CHARACTERSTICS 6.

CHARACTERSTICS PRODUCT SERVICES 1. Perishability Non-perishable Perishable 3. Seperability Seperable Non-Separable 4. Variability Less Variable More variable . Tangibility Tangible Intangible 2.

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Wants ± are the Needs that are directed towards a specific object. Wants and Demands ± Need ± State of felt Deprivation. Demand ± are the Wants that are backed up by an ability to pay & willingness to buy. .` Need.

` . It is the process of obtaining the desired product from someone but by offering something in return.` Exchange is the core concept of Marketing. It can be Monetary or Barter. Transaction is the trade of Values between two or more parties.

Satisfaction ` . Service & Price called as ³Customer Value Triad´. Value is a Combination of Quality.` ` Value = Cost Benefit.

The Product Concept. ` ` ` ` . The Societal Marketing Concept. The Marketing Concept. The Selling Concept.` The Production Concept.

` ` ` ` ` Oldest of the Concepts in Business. It holds that Consumer will prefer products that are widely available & inexpensive. Managers assume that consumers are primarily interested in Product availability & low prices. . This Orientation makes sense in Developing Countries. When demand for products exceeds supply marketing must look for ways to improve production processes.

Performance or Innovative features. Managers focus on making superior products and improving them over time. . sometimes Organization fail in Marketplace because they do not bother to study Market & Consumer in depth. But.` ` ` This Orientation holds that Consumers will favor Products that offer most Quality.

AIM ± ³to sell what they make rather than make what the Market wants´. . Concept assumes that consumers typically show Buying Inertia or Resistance & must be coaxed into buying.` ` ` ` Here. It assumes that the company has a whole battery of effective Selling & Promotional tools to stimulate more buying. Company has to aggressively promote & push its Products.

Starting Point Factory Focus Means Selling & Promotion End Profit by more sales Product .

. Concept puts the Customer at both end beginning & end of Business cycle.` ` ` Concept was born out of the awareness that a Business should start with the Determination of Consumer Wants & end with the Satisfaction of those wants. It stipulates that any Business should be organized around the Marketing function.

From Internal Orientation to External Orientation. From Product Orientation to Customer Orientation.` ` ` ` ` From Production Orientation to Marketing Orientation. From Sales Orientation to Satisfaction Orientation. . From Supply Orientation to Demand Orientation.

Concept holds that this all must be done in a way that preserves or enhances the Consumer¶s & the Society¶s well being. Wants & Interests of Target markets & to deliver the desired Satisfactions than Competitors. This Concept is more theoretical & will undoubtedly influence future forms of Marketing & Selling approaches. .` ` ` Concept holds that the Organization¶s task is to determine the Needs.

Society (Human Welfare) Consumers Company .

` Theodore Levitt (a legendary professor of marketing at Harvard). product concept & selling concept inevitably become myopic or shortsighted & end up losing their business altogether. ` . That companies that follow the production concept.

` . ` Someone who has purchased goods &/or services for personal consumption.A Person who has indicated his or her willingness to obtain goods & services from a supplier with the intention of paying for them.

` All the Individuals & households who buy or acquire goods & services for personal consumption. .

.` All the organization that buy goods & services for use in the production of other products & services or for the purpose of reselling or renting them to others at a profit.

Business buyers usually face more complex buying decisions.` ` ` ` ` Business Market contains fewer but larger buyers. The business buying process is more formalized. Demand in Business markets fluctuates more & more quickly. . Business Customers are more geographically concentrated.

transportation. pricing & selling. implementation & control of all marketing activities with the purpose of achieving the objectives of business organization.` ` ` Marketing involves all the activities from product development to storage. sales promotion. Marketing is that phase of business activity through which human wants are satisfied by exchange of goods & services. Marketing management refers to analysis. . planning.

` Marketing Environment .

this process is known as Environmental Scanning.` Many organizations put together teams of specialists to continuously put collect & evaluate information. .

Astha or products like hair color. Ex:Art of living programs. short lived change that has no social. anti ageing. Pokémon. Ex. economic or political significance. 1. 2. Trends ± they are more predictable & durable changes. as they reveal the shape of the future. . Fads are short term commercial success & are extremely unpredictable.` Phillip Kotler identifies three types of changes in the Macro environment:Fads ± A fad is an unpredictable.

political & technological changes that are slow to form. but more in place.3. Global Lifestyles. Mega trends have far reaching impact on every aspect of their businesses. marketers need to pay close attention. Mega Trends ± they are identified as Socio-economic. Our mega trend for the last several years is Globalization. Ex. the influence lasts for a long time. .

3. 6. Negative Demand (Dislike). . 4. Declining Demand (Saturation). Latent Demand (hidden). Irregular Demand (Seasonal). Full Demand (Maintain). 5. Demands:No Demand (uninterested). 2.` 1.

` Includes:- ` ` ` ` ` ` ` Demographic Socio Cultural Legal Economic Political Technological Natural .

Households (Single & Joint Families) ` ` ` ` .Caste.Religion) Literacy Ratios.` It includes:Population (Male/Female ratios & age distribution) Ethnic groups (Tribes.

Beliefs.` Cultures. This element decides what people will consume & how they will buy. ` ` Culture has two elements ± Religion & Language. Values & Lifestyles of the people in the given society constitute this environment. Social Class ± It is determined by income. occupation. Traditions. . location of residence of its members etc.

` Businesses have to understand the implications of all legal provisions relating to their Business. .

Economic conditions of different segments of population. 2. their purchasing power. . 3. import & export. Factors are:General Economic Conditions. consumer goods. Rate of growth of economy & each sector: Agriculture. their disposable income. industry.` 1.

` Development of political front keeps affecting the economy all time. ` Industrial growth depends on political environment. .` Economic Environment is a by-product of political environment.

processes & operations as well as its customer segments. . Technology affects not only its final product but also its raw materials.` For Business firms.

` ` ` Ecological Balance Pollution Ex:. alleging the Environmental deterioration & shortage of drinking water in the vicinity of the plant. . is an example of increasing environment consciousness.the campaign against Coca-cola by the local community in Kerala.

4. Media 5. ` ` ` ` ` . Supplier related factors. Consumer. Industry & Competition.` Includes: 1. 3. Market/Demand. 2.

wants & providing benefits for their customers. . ` Failure to do so will result in a failed business strategy.` Organizations survive on the basis of meeting the needs.

. ` Training & Development plays an essential role particular in service sector marketing in order to gain a competitive edge. ` This is clearly apparent in the airline industry.` Employing the correct staff & keeping these staff motivated is an essential part of the strategic planning process of an organization.

. Prices may be forced up as a result.` Increase in raw materials prices will have a knock out affect on the marketing mix strategy of an organization. Closer supplier relationship is one way of ensuring competitive & quality products for an organization.

.` As organization require greater inward investment for growth they face increasing pressure to move from private ownership to public. However this movement unleashes pressure on the strategy of organizations.

forcing organizations to change their tactics. .` Positive or adverse media attention on an organizations product or service can in some cases make or break an organization. ` Consumer programmes with a wider and more direct audience can also have a very powerful and positive impact.

` What benefit can the organization offer which is better than their competitors. . ` Can they sustain this differentiation over a period of time from their competitors ` Competitor analysis and monitoring is crucial if an organization is to maintain its position within the market.

` ` .` Marketing Mix is defined as the set of Marketing tools the firms uses to pursue its Marketing Objectives. All elements of the mix are Linked and must support each other. The marketing mix principles are controllable variables which have to be carefully managed and must meet the needs of the defined target group. McCarthy classified these tools into four broad groups.

` Product Price Place Promotion ` ` ` .

` People Process Physical evidence Programming Packaging ` ` ` ` .

Marketing Mix

PRODUCT ‡ Product Variety ‡Quality ‡Design ‡Features ‡Brand name ‡Packaging ‡Sizes ‡Services ‡Warranties

Target Market PRICE ‡ List Price ‡Discounts ‡Allowances ‡Payment Period ‡Credit Terms PROMOTION ‡Sales Promotion ‡Advertising ‡Sales Force ‡Public Relations ‡Direct Marketing

Place ‡Channels ‡Coverage ‡Assortments ‡Location ‡Inventory ‡Transport

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³PRODUCT´ is for the Marketer is ³Consumer Needs & Wants´ for consumers; ³PRICE´ is for the Marketer is ³Cost to Consumers´. ³PROMOTION´ is for Marketer is ³Communication´ is for Customer. ³PLACE´ is for Marketer is ³Convenience´ for Customers

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Product is the sum total of physical & psychological satisfaction it provides to the buyer.

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Ex:- Car The product mix is the composite of products offered for sale by the firm, over period of time.

4. Product Line & Product Range.1. 3. 7. Product Labeling. Product Quality. Product Package. 2. After Sales Services & Guarantees. Product Branding. 6. Product Design. 5. .

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Product line ± it refers to a group of closely related products. They satisfy needs of a particular nature. Same consumer groups purchase them & are marketed to the same types of channels.

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For ex:- HLL products ± Bath Soaps:- Dove, liril, rexona etc. Fabric Wash:- Rin, Surf. Beverages:- Bru, Taj Mahal.

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Length of the Product line ± it is decided by the number of items/brands in the line. Depth of the Product line ± the total number of items under each brands in the line.

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Product range ± it is the depth of the specialization in terms of varieties based on consumer pockets & functional requirements.

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Ex:- Mc Donald¶s Burgers:- Mc aloo tikki, chicken mcgrill. Wraps:- Paneer salsa, Chicken mexican Curries:- Mc curry veg, nonveg Fries:- small, medium

Length ± 8 Width ± 4 Depth ± 2.

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Design is the major selling feature in almost all the Consumer goods. Product design is influenced by:External Appearance. Construction Production Capacity Available capital Relationship to other products Service requirements.

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provides convenience to the consumers. builds consumer confidence. ` ` .` Package is the container or the wrapper used to house the product. describe merits & limits of products & encourages impulsive buying. An attractive package in a self service store helps consumers to identify the product. increases economy & communicates. A good package has the pride of place in merchandising because it protects the product.

engineering. choice of materials. size. weight. manufacturing processes. flavor. . texture. workmanship & packaging.` Product Quality standards are based on factors like color. moisture & other physical features depending on the nature of the product. shape. appearance. ` Product quality depends on proper design. finish.

Informative ± how to use the product & how it is made. Grade ± ISI standard mark. syrup etc. informative. grade designating or a combination of these. weight. .Can of ³Rasgullas´ the ingredients of the product. ` Descriptive ± it describes the contents of the package or Size.` A product label may be either descriptive. Ex:. number.

` A Brand is a symbol. a name. or describe the product or its use. ` A good brand name is one which is easy to remember. a personality. pronounce. ` A brand is a product image. a communication which brings about an identity of a given product. a value. a quality. a mark. .

.` The Basic variables are :Transportation Warehousing Inventory level Channel of Distribution 1. 3. 2. 4.

` The transportation policy ± its choice is influenced by at least seven factors namely consumer demand. advertising. profit. plant location.` A selection is to be made of the most efficient. economical. warehouse facilities. ` The fact is that the transport is creating place utility that widens market & marketability for the products of the firm. competition & product value. & dependable mode of Transport. . rapid.

Actually receiving & checking the unloaded incoming goods. 2. Receiving. Transfer to warehouses.` Warehousing has its own place in distribution of goods that creates time utility by adjusting supply & demand. preserving or conditioning the product & obtaining more favorable demand & market price. 3. storage involves four functions in distributing the goods namely. . Shipping. ` Today. 4. 1.

sizes. models. Amount of inventory involves determining the variety of products. types or colors of each product to manufacture. . ` ` Sufficient inventory must be on hand.` Merchandising is responsible not only for what to make available but also how much to produce.

The channels employed by the competitors. In the nature & extent of market. The merits & demerits of channel of distribution to the manufacturer The potential volume. 5. . 4. 2.` The Manufacturer should take in account the factors such as:The type of product. 3. 1. cost & profit derived in case of each alternative channel.

` 1. Basic price variables:The pricing policies & strategies. 2. 3. 4. The terms of credit. . Margin. The terms of delivery.

geographical price policies. ` These policies involve price variations.` These are the guidelines and the frames within which management administers prices so to match them to the market needs. .

` The Business houses grants credit to the wholesalers. its marketability. competitor¶s terms & consumer credit facilities made available by banking & other financial units. retailers. customers. ` ` Customers in terms of installment. The policies regarding credit are to be framed depending on the nature of the product. . class of customers.

. ` Clear cut policies are to be made regarding the terms of delivery as to quantity.` Delivery of the goods to the dealer. middlemen & customers is also of vital importance. time & place of delivery & the conditions of valid delivery.

it refers to the difference between the final price paid by the consumers & the total cost incurred in making available to him the product or service. .` Over here.

The variables are:1. 2. 5. Trade fairs & exhibition. . Advertising. 4. Public Relations. Personal Selling. Sales Promotion. 3.

. 3. 2. It helps to allocate the responsibilities. 4. It provides an opportunity to analyze cost benefit elasticities.1. It facilitates communication process. It provides a valuable guide for resource allocation.

planning.` ³It is the analysis.´ ± Prof. implementation & control of programmes designed to bring about desired exchanges with the larger audiences for the purpose of personal or mutual gain. Philip Kotler . It relies heavily on the adaptation & coordination of product-price-promotion & place for achieving effective response.

3. 2. ` .The task of Marketing management is to combine these elements into an effective operating system and to arrange the system in its interaction with a dynamic environment. 6. 5. Planning the marketing activities. Providing effective marketing organization. Motivating the Human-side. 4. Actuating by leadership. ` These functions are:1. Evaluating and Adjusting marketing efforts. Assessing the Market Opportunities.

` Significance of this function is that market opportunities are changing and marketing management must develop creative strategies to cultivate these opportunities. . ` The firm should be ready & willing to accept & shoulder the risks of the possible venture.

both in short & long run.` Marketing planning is used to develop & define objectives & then derive strategies & design programmes that enable the firm to achieve these set aims. . ` Planning provides the basis for marketing strategy to make planning central to the Marketing concept.

Marketing is an accepted system. the organization provided is to be accommodative in the light of the changing concept of marketing. Thus.` ` ` ` The innovative & effective nature of marketing activity places heavy demands on the marketing organization. the role of the organization is felt more. . NPD & the growing importance of international marketing are some of the marketing changes that have raised organizational problems for the unit.

` Development of newer patterns of leadership are testing the traditional view of management methods & policies. .` Diverse changes are influencing the patterns & styles of leadership required for effective performance of marketing functions.

New ways of encouragement or stimulation are to be introduced where the individual unfolds his talents & initiative to contribute the very best of his. The question of today¶s management is not to create a suitable man for the management but to keep him longer as loyal & humble employee.` ` ` Free flow of goods will be there only when the people involved in the process are motivated. .

To meet all the challenges. the marketing manager must continually evaluate & adjust the marketing efforts. research & other control devices. the firm should have a complete appraisal of its marketing operations through marketing audit. .` ` ` To take advantage of profitable marketing opportunities. The major challenge confronting marketing management is that of creative adaptation to change.

` A Manager is a professional whose primary responsibility is to carry out the management process. financial & physical & information resources in the EFFICIENT & EFFECTIVE pursuit of specified Organizational goals. . ` A manager is one who particularly plans. makes the decision. leads & control human.

5. He coaches & supports people. He encourage open communication. 2. He establishes ongoing controls. . 4. 3. He provides objective recognition.1. He provides clear directions.

He demonstrates consistently a high level of integrity.6. . 8. He gives Subordinates Clear-cut decisions when they are needed. 9. He understands the financial implications of decisions. He selects the right people to staff the organization. 10. 7. He encourages innovation & new ideas.

price. It is a group of marketing persons working together towards the attainment of certain common objectives. Marketing organization is the vehicle for making decisions on all marketing areas such as product.` ` A Marketing Organization is a framework for planning and making decisions in the key marketing activities that are essential to marketing success. . place & promotion.

The nature of Organizational goals. 3. .1. Defining official relations. Over-riding personal goals. 6. 7. Ensuring functional performance. 5. 2. Lack of Spontaneity. Encouraging newness. Optimizing the managerial inputs. 4.

Determine the objectives. Formulate long range target organization. Determine the method of change. Harold Stieglitz of New york states the following six logical steps in the planning process:1. 5. 6. Analyze the existing organization. 2. 4.Prof. ` . 3. Implement the plan. Prepare the phase plans.

opinion or thought. used to represent things.` ` ` ` Information consists of evaluated data. data being symbols. Data becomes information as it has meaning & implications. a sequence of six digit numbers 456789 represents data. Information is any perceived or recorded fact. . For example. usually numbers.

Marketing information includes all the facts. The marketing manager is faced with a vast array of data of differing varieties. opinions.` ` ` The nature of information needed to manage the marketing functions of an enterprise is unique. . forms & degree of credibility. because of its dynamism & diversity. estimates & other evaluated data used in making decisions which have far reaching effect on the marketing unit.

Still & Govani. information handling.. routines & reporting techniques designed to provide information required for making marketing decisions. Cundiff. . .Prof.` MIS is an organized set of procedures.

b. The Market responses to company &/or competitor actions. Current or conditional future states of the market environment. ` .MIS is an internal arrangement designed to support management decision making & action. analysis & evaluates the data & stores for using for decision making in the future.  It collects. classifies. sort outs. ` MIS system provides management with:a.

It is future oriented. 2. It is a unified & centralized system. 5. . 7. It is compatible with the organization. 3. It is economical. It is need based & use oriented. It is a decision supporting system.1. It is fast in communication. 6. 4.

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