Marketing is the business process by which products are matches with The markets and through which transfers of ownership are effectedMarketing is that phase of business activity through which the human wanAre satisfied by the exchange of goods and services.
Features of Marketing:-1.Needs and wants: the focus of marketing need and want of customers. All the activitiesIn the marketing are carried out with main motive of satisfying need and wants of costumersand organizations.2.Creating a market offering: market offering means offering a product or services by specifyingIts features,shape,size,colours etc.3.Customer value: customer is ready to give a price for the product only when he gets satisfactionOr only whine product is offering utilities matching to the price. customer values the product onThe basis of satisfaction and services offered by the product.4.Exchange mechanism: the process of marketing involves exchange of product and services forMoney. In exchange customer pay money and in return they take product or services whichSatisfy their need wants.
What can be Marketed Generally product or a services which is marketed.Product is something what a seller sells and buyer buys. Anything that can be offered to aMarket to satisfy a want or a need. It may include anything that can be offered to a customerFor satisfaction.
It refers to planning, organizing ,direction and controlling the activities which results inExchange of goods and services. It involves following activities 1. Choosing a target market. The activities of marketing management begin by finalizing The target market .example. Target market for medicine manufacturer is hospital, shops etc 3.Creating superior value. The next step in marketing management process is to create some Special value in the products to make your product better that, competitor’s products. Special values can be added by offering various schemes for examples, giving free insurance With car.
Marketing and sellingGenerally people considered marketing and selling as synonymous of each other but actuallyThese two are different concepts. Point of difference selling marketing 1.Focus/emphasis It focuses on need of It focuses in need of sellers. customer. 2.objective Scope of selling is to Main objective is maximize the profit earning optimum profit. 3.Start and end Selling starts after It starts much before production and ends production an d with sale of products. continues even after sale. 4.supremacy Producer is considered Consumer is considered King pin of market. King pin of market. 5.Demand It assumes demand for Demand is created by the products. producing acc to the need of customer
In order to achieve desired exchange outcomesw ith targets markets, it is important toDecide w hat philosophy or thinking should guidethe marketing effort of the organisation.An understanding of the philosophy or theconcept to be adopted is important as it determineThe emphasis or the w ieghtage to be put ondifferent factors, in achieving the organizationalObjectives.
The concept of philosophy of marketing has evolved over a period of timeAnd is discussed as follows. The production concept. Some companies believe that it is easy to sell the product when products are inexpensive and are easily available. so the firms following production concept focus on lowering the cost of production and distribution but the main draw back of this concept is that costumer don’t always buy products which are inexpensive and available Product concept. Firms which follow the product concept propose that the way to realize Business goal is by making product that are of high quality. These firms manufactures The product of superior quality but they must keep in the mind that customer will buy the High quality only when they need it. Only quality is not enough force. Selling concept. The firm which follow the selling concept believe that in order to make a Customer buy a product he or she need to be convinced and customer can be convinced By undertaking some aggressive selling and promotional efforts. With this concept firm can Make a customer a buy something even customer has no intentions of buying it.
Marketing concept. It concentrates on the need of the customers. This concepts says that Product should be designed and produced keeping in the mind the need of the customer And try to satisfy the need of the customer better than the competitors. Under marketing Concepts firms don’t sell what the have but they produce and sells what customer wants. Process of marketing concept: a. Identification of market or customer who are chosen as the targets markets b. understanding needs and wants of the customer in targets markets c. satisfying the needs of targets market better than the competitorsSocietal concept. although marketing concepts is satisfying in the needs of customers in theBest possible manner but then also it has attracted criticism from people who are concernedAbout society and environment. They argue that the companies should not blindly follow theGoal of customer satisfaction this may lead to social and environmental. Some product bringsHarmful effects on environment so these should not be supplied only to fulfill the goal ofCustomer-satisfaction. The satisfaction must be with in the ethical ecological aspects of oursociety.
Functions of marketingGathering and analyzing market information. The marketing begins with the research conductedBy the marketer. Marketer conducts research to find out the needs of the customers. He triesTo understand what customer want to buy, when they are likely to buy, in what quantity theyWill buy, what price they will be able to pay etc.Market planning. After conducting marketing research the marketer has to pal the stepNecessary to achieve marketing objectives under market planningStandardization and grading. Standardization means maintaining quality standard toAchieve uniformity in the product it provides quality assurance and consistency to customersGrading means classify the product on basis of size, quality etc. it is necessary when companiesAre following strictly the technique of standardization. Through grading marketer can get higherPrice for quality product
Packaging and labeling. It pays an important role in selling as attractive packinginduces The customer to buy the product that is why packing is called silent salesman.Branding. It means giving special name to the product companies may decideto sell theProduct in the companies name or they may decide a special brand name forthere productsE.g.. Sony,BPL, are using companies name as brand names where as Arial, tideare specialBrand name selected by the companies
THE MARKETING MIXThe marketing mix refers to the ingredients or the variables which the marketer mixes in order to interact with a particular market. The marketing mix is the essence of any marketing Endeavour. It is the main building Block of marketing efforts of a firm. The firms looks for having transaction with the customer but to have the transactions the Firm has to develop a product or a service, design it, pack it, name it, price it, promote it, And distribute it. All these decision are core of marketing mix. The elements of marketing can be classified into 4 categories and through fine mixing of these elements the superior value products or services are created for customers.
1. Product It means goods or services or anything of value which is offered to the market for sale.The producer manufacturer or marketer try to add more and more utilities to product toprovide greater satisfaction and wining edge over competitors. 2. Price It is the amount of money customer have to pay to obtain the product.
3.PLACEPlace or physical distribution includes activities that make firmproduct available totarget customer. 4.Promotion Promotion of product and services include activities that communicate availability, Features ,merits etc of the product to the target customer and persuade to buy them.
productIt can be defined as anything that can be offered to a market to satisfy a need or a want.From the customer point of view ,,,, a product is a bundle of utilities, which ispurchased because of its capability to provide satisfaction of certain needs.There can be three types of benefits a customer my seek to satisfy from purchase ofA product,, a. Functional benefits b. Psychological benefits c. Social benefits
Producer may broadly be classified into categories (i) consumer products (ii) Industrial products products Consumer Industrial products products Durability Shopping basis Efforts involved Non- durable Servicesdurable
Consumer productsProduct which are for direct consumption or which require no furtherprocessing are known as consumer goods.Consumer product are further classified on the basis of two important factors:-a. The extent of shopping efforts involvedb. Durability of the products.
Some features 1. Products are generally of durable nature i.e. they are normally Survive many uses. 2. Te unit of price as well as profit margin of shopping products is high 3.As these product have high unit price, customer compare the product Of different companies before making selection.
B. Durability of products1.Durable products: goods which are used for longer period of time are known as durableGoods. these are generally of high prices2.Non-durable product: goods which are consumed in short period of time are called non-durable products.3. Services. It refers to benefits which are offered for sale. Features of services are:- 1. It is intangible in nature 2. It is an inseparable from its sources 3. It cannot be stored
Industrial goodsMaterial and parts Capital items Supplies and business services Raw material Manufactured parts Maintenance Operating And repair surplus items Classification of industrial products
Classification of industrial products1.Materials and part: these products are used complete to produce final product.There are raw materials such as cotton, sugar etc and manufactured part such asBulb, tyre etc.2.Capital item. these are fixed assets which are used for production of final goodsThese includes: installation like elevators, mainframe computers,Equipments like hand tools, personal computer, fax machines etc.3. Supplies and business services: these are short lasting goods and services thatFacilitates developing or managing the finished products.These includes: (i) maintenance and repair items like paint, nails, etc (ii) operating supplies like lubricant, computer stationary, writing paper, etc.
A brand is an identification of a product. It can be in the form of a name, symbol, or designetc… Br andi ng i s m m e t han an i dent i f i cat i on m k. I t i s sel l er s pr om se t o uch or ar i Q i t y and sat i sf act i on of buyer s expect at i ons. ual W t h br and w can easi l y i dent i f y w ch al l pr oduct s bel ong t o a par t i cul ar c i e hi
1.Describe the product and specify its contents. The manufacturer cannotcommunicate to each and every customer personally so information is shared bythe labels. The manufacturers prints all the information related to product such asContent, price, instruction, to use etc.2. Identify the product. The label helps the customer to identify the product from the variousTypes available Example we can easily identify a Cadbury chocolate from various chocolates Kept in the self of a shop by the colour of its label. 3. Promote sales. Attractive and colorful labels excite customer and induce him to buy The product. Specially in consumer goods attractive labels increase sales volume.
It is the amount of the money paid by a buyer in consideration of the purchase of aProduct. No product can launched with out a price tag or at least some guidelines For pricing. Generally when the price of a product rises its demand falls.
1.The product cost: this includes the cost of producing, distributing, selling theproduct. The cost sets the minimum level or the floor price at which theproduct may be sold.
It is the set of decision that need to be taken in order to make product available Place element is a process by which the goods are transferred from the place of production to the place of consumption. Place mix: refers to important decision related to physical distribution of goods And services.
The important functions performed by middlemenare as follow:
Economy efforts with the use of channelsSugar A Sugar A B Bulb Bulb B coffee C CCoffee Ink D Ink D
(A) Direct channel (zero level) manufacturer customer Indirect channel (B) One level channel manufacturer wholesaler customer (c) Two levelmanufacturer retailer customer wholesaler (D) Three level channel
M CA U Advertisement Personal sellingR SK TE O Publicity Sales promotionT ME Er R Promotion mix Marketing communications
Features of advertisement are:b. Impersonality. There is no direct face-to-face contact between the prospect andAdvertiser. Therefore it is referred as to as impersonal method of promotion. AdvertisementsCreates a monologue and not a dialogue.
Merits of advertising:1.Mass reach: it is a medium through which a large number of people can be reachedOver a vast geographical area. Example an advertisement message placed in nationalDaily reaches lakhs of its subscribers.2. Enhancing customer satisfaction and confidence: it create confidence among the buyersAs they feel more comfortable an assured about the product quality and hence feels moreSatisfied.3.Expressiveness: with the developments in art, computer design, and graphics, advertisementHad developed into one of the most forceful medium of communication. With the specialEffect that can be created, even simple products and messages can look very attractive.
Limitation of advertising(i) Less forceful: it s an impersonal form of communication it is less forceful than thePersonal selling as there is no compulsion on prospects to pay attention to the message.(ii) Lack of feedback: the evolution of the effectiveness of advertisement message is veryDifficult as there is no immediate and accurate feedback mechanism of the message that isdelivered.(iii) inflexibility: it is very difficult to change advertisement as companies use standardized messages which cannot be changed according to the need of customers.
Objection of advertisement It is one of the most frequently used medium of promotion of goods and services, it attracts a lots of criticism is there fore important to examine the major criticism against advertisement and see the extent to which these are true.This is taken up as follow : .Adds to cost- opponent of advertising argue that advertising unnecessary adds to the cost of product, which is ultimately passed on the buyers in the form of high prices. . Undermines social value- another important criticism is that it under mines social value and promotes materialism some of them shows new life styles, which don’t find social approval. . Confuses the buyers: many of the product being advertise makes similar claims that the buyer gets confused as to which one is true and which one should be relied, it is sometime confusing to us as which one to buy.
Features of personal selling:- (i) Personal form: in this type of selling a direct face –to-face dialogue Takes place that involves an interactive relationship between seller and Buyer. (ii) Development of relationship: it allows a salesperson to develop personal relationship with the prospective customers, which may become important in making sale.
Merits of personal sellingA. flexibility: the sales presentation can be adjusted to fit the specific needs of theIndividual customers.B. Direct feedback: as there is direct face-to-face communication inpersonal selling, it is possible to take a direct feed back from thecustomer and to adapt the presentation according to the needs of theindividual customers.
Personal selling plays a very important role in the marketing of goods and services.
Importance to businessmen(i) Effective promotional tool: personal selling is very effective promotional tool,Which helps in influencing the prospects about the merits of a product and there byIncreasing its sale.(ii) Flexible tool: personal selling is more flexible than other tools of promotion such asAdvertisement and sales promotion. It helps business persons in adopting their offerIn varying purchase situations.(iii)Minimize wastage of efforts: compared with other tools promotion, thepossibility of wastage of efforts in personal selling I minimum. This helps businessPersons in bringing economy in their efforts.
Importance to customersHelps in identifying needs: personal selling helps the customers in identifying their needsAnd wants and in knowing how these can best be satisfied.Latest market information: customers get latest market information regarding pricechanges, product availability and shortages and new product introduction. Which helpthem in taking the purchase decision in a better way.Expert advice: customer get expert advice and guidance in purchasing various goodsand services, which help them in making better purchase.
Converts latest demand: it converts latest demand into effectivedemand. It is through This cycle that the economic activity in the societyis fostered, leading to more jobs. Employment opportunities: it offers greater income andemployment opportunities to the unemployed youth. Mobility of sales people: there is a greater degree of mobility in sales people,Which promotes travel and tourism in the country.
Merits of sales promotion1.Attention value: sales promotion activities attract attention of theuse of incentives2. Useful in new product launch: sales promotion tools can be very effective at theTime of introduction of a new product in the market. It induces people to break awayFrom their regular buying behavior and try the new product.3.Synergy in total promotional efforts: sales promotion activities are designedTo supplement the personal selling and advertisement efforts used by a firm andAdd to the over all effectiveness of the promotional efforts of a firm.
Limitation of sales promotion(i)Reflected crisis: if a firm frequently rely on sales promotion, it may give theimpression that it is unable to manage its sales or that there are no taker of itsproduct.(ii) Spoils product image: use of sales promotion tools may affect theimage of a product. The buyer may start feeling that the product is not ofgood quality or is not appropriately priced.
Refunds: Refunding a part of price paid by customer onsome proof of purchase, say on return of empty foils orwrapper. This is commonly used by food productcompanies, to boost their sales.
Publicity is similar to advertisingIt is a non-personal and non-paid form of communicationPublicity generally takes place when favorable news is presented in themass media about the product or services.Example- a manufacturer achieves a breakthrough by developing a car engine,Which runs on water instead of petrol and this news is covered by television orRadio in the form of news . It would be termed as publicity The manufacturer would not bear cost for the publicity.
Limitations1.No control. Firms have no control over the information which is given inAdvertisement.2.Limited information. In publicity only newsworthy information is given, so firms cantUse publicity as an effective tool to promote sale.