Unit 4 marketing mix

UNIT 4
Unit 4 – Marketing Mix 1

UNIT 4: MARKETING MIX
Meaning and Elements – Classification of products;
product mix decision, product line, product addition &
deletion, product life cycle; product planning;
diversification, product positioning, new product
development process; strategies, branding, packaging;
Pricing: Objectives; policy, factors influencing pricing
policy; method of pricing; pricing policies and
strategies, Distribution: definition; need; channel design
decision; channel management decision; factors
affecting channels; types of marketing channels;
Promotion: Nature and importance of promotion;
promotion mix; advertising; sales promotion; public
relation; direct selling and publicity.

MARKETING MIXMeaning:
Marketing Information is needed to
assess the marketing situation and need
specific marketing targets in form of market segments.
Each market segment has types of marketing activities that
integrate into single market.
Combination of all marketing methods or devices are
called as ‘Marketing Mix’.
Marketing mix is required to market strategy successful.
The elements or variable of marketing mix are:
i) Decisions on product or service ii) Decisions on price.
iii) Decision on promotion & iv) Decisions on distribution.Unit 4 – Marketing Mix 3

Definition:
“Marketing Mix is the combination of product
offerings used to reach a target market for the
organization.”
“It is a mix of controllable marketing variables like
product, price, promotion and place that best meet the
needs of targeted customers.”
- marketing mix offers an optimum (least cost) combination
of all marketing ingredients so that we can have realization
of company goals like profit, sales volume, market share,
return on investment and so on.
- it is changing according to changes in marketing
conditions with changes in external environmental factors
like technical, social, economic and political which affects
the market.Unit 4 – Marketing Mix 4

Features of an effective Marketing Mix:
It should match customer needs.
It should give competitive advantage to the company.
It should match corporate resources.
All the elements of marketing mix should reinforce each
other to support positioning of the product.
Marketing Management Functions:
1. Knowledge of demand (i.e.) customer needs unmet so far
and how demand can be developed.
2. Obtaining demand (i.e.) getting orders.
3. Fulfilling orders (i.e.) achieving a profitable turnover.
4. Ensuring satisfaction of customer needs (i.e.) aiming at
new or repeat business.

Marketing Management Functions
Marketing Management Function
Marketing
Research &
Information
Product &
Pricing
Planning
& Control
Physical
Distribution
Promotion
1. Marketing
Information
system.
2. Marketing
research.
3. Market
segmentation.
4. Distribution
cost analysis.
1. Product
research.
2. Product
development.
3. Packaging.
4. Branding.
5. Pricing.
6. Warranty.
7. After sales
services.
1. Sales
forecasting.
2. Marketing
Mix.
3. Marketing
plans.
4. Budget &
Control.
1.
Management
& control.
2. Sales
promotion.
3.
Advertising.
4. Exhibition
& trade fairs.
5. Public &
Government
relations.
1. Channel
choice &
Decisions.
2. Transport.
3. Warehouse.
4. Insurance
& order
processing.
5. Protective
package &
inventory
control.

Marketing Management cycle involves –
1. Determination of present and potential customer through
marketing research.
2. Formulation of the marketing plan and policy.
3. Development of product and its adaption to specific
customer needs through product planning & development.
4. Channel choice and channel management.
5. Physical distribution arrangement.
6. Generation and stimulation of demand through all devices
of promotion.
7. Determination of selling prices and discounts.
8. Selling activities. 9. After sales services activities.
10. Feedback from market.
11. Replanning on basis of feedback information. 7

Elements of Marketing Mix:

a) Product Mix: Product is the thing possessing utility. It ahs
four components i) Product range, ii) Service after sale, iii)
Brand and iv) Package.
b) Price Mix: Price is the valuation placed upon the product
by the offerer. It has to cover pricing, discounts, allowances
and terms of credit and deals with price competition.
c) Place (Distribution) Mix: Distribution is the delivery of the
product and right to consume. It includes channels of
distribution, transportation, warehousing and inventory
control.
d) Promotion Mix: Promotion is the persuasive
communication about the product by the offerer to the
prospect. It covers advertising, personal selling, sales
promotion, publicity, public relations and demonstrations
used as promotion.

PRODUCT
Meaning:
Product is a bundle of all kinds of satisfaction of both
material and non-material kinds.
It may be a good, a service, good + service, or an idea.
It include physical objects, design, brand, package,
label, amenities and satisfaction.
Product supplies two kinds of utility –
a) Economic utility.
b) Supplementary utility in the form of social –
psychological benefits.

Definition:
“Product may be anything that can be offered to a market to
satisfy a want or need.” - Philip Kotler
“It is the sum total of physical, economic, social and
psychological benefits. Marketers must define their market
in terms of product functions – what the customer expects
from the product.”
P
R
O
D
U
C
T
Physical Goods
Ideas
Services
Organizations
Persons
Places
Any visible object pen,
book, etc.
Traffic, Safety, etc.
Health care, tourism,
etc.
Service organizations
Musicians recreators
Tourist spot, centres,
etc.

Selling points of a Product:
- it deals with physical attributes, utilities, design, colour,
size, shape, beauty, etc.
- buyers are not interested in competition of product.
- they are concerned with what product need, means to
them and what extent it satisfies their needs.
(E.g.) Manufacturer of Cosmetic products
* Toothpaste – it creates hopes and expectations, (i.e.) whiter
and cleaner teeth, pleasant taste, stronger gums and
smelling breath.
- customer buys these product based on expectations, these
expectations of benefits are called market offerings.
- selling a product is the capacity and competence of
product offer to expected use, performance & satisfaction.

Product Concept:
Product is the most tangible and important single
component of marketing programme.
Product policy and strategy is cornerstone of a marketing
mix.
If product fails to satisfy customer, no additional cost on
any of other ingredients of marketing mix will improve
product performance in market place.
Product decision are taken first by marketers and decisions
are central of all other marketing decisions like price,
promotion and distribution.
Product is like vehicle by which company provides
consumer satisfaction and pulls the rest of the marketing
programme.

Product has three dimensions –
a) Managerial dimensions – it covers physical attributes, related
service, product life cycle and development.
- product offering must balance customer citizens needs and
desires.
- product planning & development assure normal rate of return
on investment and continuous growth of firm.
b) Consumer Dimensions – product is actually a symbol or
meaning for buyers.
- they buy a product for not only they want and also what they
mean.
- it indicates bundles of expectations to the buyer.
- success or failure of product is depend consumer perception.
-once product is purchased by customer and made evaluation
(i.e.) post purchase.

c) Societal dimensions – salutary products and desirable
products will fulfill the expectation of social welfare and
social interests.
- salutary products yield long run advantages but may not
have immediate appeal.
- desirable products offer both benefits, immediate
satisfaction and long run consumer welfare.
Marketers have to fulfill following social responsibilities –
i) Conversation and best use of resources.
ii) Safety to users.
iii) Long – run satisfaction of consumers.
iv) Quality of life, concern for better environment.
v) Fulfillment of government regulations relating to
composition, packaging, promotion and pricing of many
products. Unit 4 – Marketing Mix 15

PRODUCT LEVEL
Marketer should understand the needs of product levels
before offering to market, which add more customer value.
Five level of product are –
1. Core Product:
- it is the most fundamental service or benefits that
customer really interested in buying.
(E.g) Hotel guest is buying ‘rest & sleep’ and marketer must
see themselves as benefit providers.
2. Basic Product:
- marketer has to turn the core benefit into basic product.
(E.g.) In hotel, basic product includes food, desk, etc.

3. Expected Product:
- buyers expect set of attributes when they purchase a
product.
(E.g.) Guest in hotel expects clean bed, fresh water, working
lamps, water supply, etc.
- obviously will see which hotel is convenient and less
costly.
4. Augmented Product:
- in this product, where the customers wishes beyond the
expectations towards a product.
(E.g.) In guest hotel, augment its product by including, rapid
check in, express check out, fine dining room and good
room services.
- it enables the marketer to understand the buyer’s total
consumption system. 17

- product augmentation strategy is quite a costly affair,
since it involves element of cost.
(E.g.) In guest hotel, guest will expect certain amenities and
it is necessary for the hotels to add service to enhance
quality of offering.
While augmenting, the following questions are asked –
* Whether the customer will pay enough to cover extra cost?
* How soon will the benefits turn to become expected
benefits?
5. Potential Product:
- it encompasses all possible augmentations and
transformations the product in the future.
- it describes what is included in product today.
- companies search for new ways to satisfy customers.
18Unit 4 – Marketing Mix

Product Perception
Product Perception
Managerial
Consumer Societal
1. Basic property.
(i.e.) product quality
2. Product utility.
3. Package.
4. Brand.
5. Product Life cycle
6. Product planning.
7. Product mix line.
1. Expectation of the
product like what
consumer wishes to
get from product.
2. Perception
leading to purchase.
3. Product should
give satisfaction.
1. Safety to
users.
2. Claim on use
of resources.
3. Environment
protection.
4. Long run
social benefits.

CLASSIFICATION OF PRODUCT
Product
Consumer
Goods
Convenience
Goods
Industrial
Goods
Shopping
Goods
Specially
Goods
Unsought
Goods
Raw
materials
Capital
items
Fabricated
Materials
Supplies
and
Services

Consumer Goods:
“Goods designed for use by the ultimate consumers or
household and in such form that they can be used without
commercial processing.”
- goods that are produced for final consumption are called
consumer goods.
a) Convenience goods – goods that are frequently purchased
by consumers with minimum efforts are called consumer
goods. (E.g.) newspaper, food item, toothpaste, etc.
- this goods have low unit value and consumed rapidly.
b) Shopping goods – goods those that are bought by the
customer only after careful comparison made with quality,
prices, etc. (E.g.) Home appliances, dress materials, etc.
- this goods have high unit value and purchased less.

c) Specialty goods – goods having unique characteristics and
for brand identification for which a significant group of
buyers are habitually willing to make special purchasing
effort.
- it doesn’t involve any comparisons.
- buyers invest time only to reach dealers carrying wanted
products.
- dealers don’t have convenient locations, but they must
create awareness through advertisement and sales
promotion. (E.g.) Cars.
d) Unsought goods – the consumer does not know about the
product or does not normally think of buying.
(E.g.) life insurance, encyclopedia, etc.
- it require advertising and personal selling support.

Industrial Goods:
“Industrial goods are those that are used by buyers as
inputs in producing other products.”
(E.g.) machine tools, trucks, etc.
a) Raw material – it directly enter the finished products.
- it is processed or assembled to create a product and after
processing it becomes consumer product.
(E.g.) Agricultural products jute, sugarcane, etc., semi
finished goods like steel & assembly parts like mobile or
computer.
b) Capital goods – goods are used for creating finished
goods.
- they create form utility to a product.
- they are long – lasting in nature.

It has three categories –
i) Installations – it include boiler, lathers, etc. and it is major
purchases.
- it is usually brought directly from manufacturers and
made according to specification of buyers.
ii) Equipment – it include portable factory equipments and
hand tools.
- this type of goods don’t become a part of finished goods.
iii) Plant and building – it include factory building and
office building.
c) Fabricated material – it become a part of finished goods.
- it reach ultimate consumer only when they are assembled
with other parts. (E.g.) automobile parts, batteries, etc.

d) Operating supplies and services – these items are
not part of finished goods.
- they are short lasting in nature like writing paper,
pencils, coal, etc.
- it was marketed through intermediaries because of
low unit value.
- it include services like maintenance and repair
services and provided under Annual Maintenance
Contract (AMC).
- it include other services like business advisory
services, legal, management consulting,
advertising, etc.

PRODUCT PLAN OR STRATEGY
“A product strategy is a company plan for marketing its
products.”
- we develop a product design to achieve the set objectives.
Product plan or strategy involves various issues like –
i) Product Line:
(i.e.) what products or satisfaction should we sell?
“Product line is a group of products that are related either
because they satisfy similar needs of different market
segments or because they satisfy different but related needs
of a given market segment.”
(E.g.) different range of toothpaste is a product line as it
satisfies need for different market segment.

ii) Product Mix:
- it is the entire range or products of a company for sale.
- it need not consist of related products.
(E.g.) Product mix of Tata company includes automobile,
watches, jewels, FMCG, etc.
Characteristics:
a) Width – width of the product mix depends upon the no. of
product groups or product line found within the company.
b) Depth – it depends upon no. of product items with each
product line.
c) Consistency – refers to the question whether or not the
products have production affinity, marketing affinity or
research affinity.

Social aspect of New Product opportunities:
Kolter suggested way of classification –
Pleasing products – (E.g.) cigarettes which give high
immediate satisfaction no doubt, but they do harm
consumer interest in the long run.
Deficient products – neither immediate appeal nor long –
run benefits.
- firms are not interested in such products as there is no
chance to make any profit at all.
Salutary products – (E.g.) detergents with low phosphates.
- they have long run advantage but have no immediate
appeal to consumers.
Desirable products – it has combination of high immediate
satisfaction and high long run consumer welfare.

Importance of Sound Product:
 There are two essentials of successful marketing: i) product
and ii) markets.
 Consumer demand will be perfectly correlated if marketing
bring together products and markets.
 Product and market are expected to be the two sides of the
marketing.
 It is expected to satisfy all needs and desires of a customer.
 It satisfies seller’s needs and consumer preferences if
product is sound and acceptable.
 Right product will reduce problems on price, promotion
and distribution.
 Product superiority can carry greatest selling load in
marketing mix.

Importance of Product Analysis and Research:
 Marketing product analysis and research is a study of
consumer preferences and habits as well as dealer
preferences.
 It can determine the extent to which the product should be
altered, modified or adapted to meet the exact demands.
 It enable to device a new product exactly needed in the
market.
 Intelligent market analysis and research can dictate taste,
colour, size, shape, style and other specific features.
 Reliable information about customer demand, a
manufacturer can bring sound product in tuning the needs
and expectations of customers.

PRODUCT ADDITION & DELETION
- firm may add new product items or delete existing
ones or do both in its existing product line.
1) Addition of new product:
- introduction of new product is greater significance
in customer oriented marketing.
- producer strive for modifying and improving the
products to varying needs and habits of customers.
- development and launching of new products also
necessary to earn more profits and survival and
growth of firm.

Categories of new product:
a) Addition to existing product line: Product that
supplements a company’s established lines.
b) Improvements to existing products: Products that provide
improved performance or greater perceived value and
replace existing products.
c) New product lines: Products that allow a company to enter
an established market for the first time.
d) Cost Reduction: New products that provide similar
performance at lower cost.
e) New-to-the world products: Products that create an entirely
new product.
f) Repositioning: Existing products that are targeted to new
markets or market segments.

Types of addition of new product:
i) Horizontal Addition:
- where company introduces a new product which is
similar to the industry’s product line.
(E.g.) HMT manufacturing machines of various kinds.
ii) Vertical Addition:
- it includes new products such as components, parts and
materials in the current product portfolio of the company.
It has two different link –
* Forward linking – the linking in which current products
may serve as an input for the new product.
* Backward linking – new products may serve as an input for
the current products.

iii) Lateral Addition:
- where company include any kind of product which may
be possible be manufactured.
- it doesn’t relate its new products with old ones.
(E.g.) Brook Bond go for razor blades apart from coffee and
tea.
2. Product Elimination (Deletion):
- products that can be improved or modified to suit the
market needs.
- deletion of unprofitable products is important as
development of new products and this process of
withdrawal called ‘product elimination’.
- utility of declining product may be enhanced through
product innovations like changes in package, design, etc.

- unsatisfied product saves company from loss and also
saves customer dissatisfaction.
- management has to do periodical reviews of products
by following various stages of product life.
- firm can simplify its product – mix and reduce the
costs of operation.
- product life cycle will be helpful in decisions
regarding the deletion of products.
- product doesn’t become obsolete but its design, shape,
size or appearance requires change.
- product elimination takes place when the product is
either outdated or it is unprofitable.

Why New Products Fail?
The following are the reasons given for failure of new products:
a) Inadequate market analysis and market appraisal.
b) Insufficient and effective marketing support.
c) Bad timing of introduction of new product.
d) Failure to recognize rapidly changing market environment.
e) Absence of formal product planning and development procedure.
f) Failure of the product to fill consumer needs due to ignorance about
consumer attitudes about new products.
g) Technical or production problems.
h) Higher costs than estimated costs.
i) Product problems and defects.
j) Failure to estimate strength of competition.
k) Too many new products entering the market.
l) Many products not new as perceived by consumers.

PRODUCT LIFE CYCLE
Product life Cycle:
 It derives from the fact that a product’s sales volume and
sales revenue by five phase cycle.
 Life cycle is a fact of existence for every product.
 It includes length of life cycle, duration of each phase and
shape of curve vary widely for different products.
 It is termed as product market life cycle as it is related to
particular market.
(E.g.) Old product have new life cycle when it is introduced
into another market. Product life cycle indicates that
product is born or introduced, grows, attains maturity and
saturation in that market and then sooner it is bound to
enter its declining stage (i.e.) decay in sales. 37

1. Introduction:
- product is introduced in a market, sales revenue begins to
grow.
- but rate of growth is very slow, profit is not be there as we
have low sales volume, large production and distribution.
- it require heavy advertising and sales promotion.
- products are bought cautiously on trial basis.
- product development and design are considered critical.
2. Growth:
- in this period, the product is accepted by consumers and
traders.
- rate of increase of sales turnover is rapid and profit
increase at accelerated rate.
- rise in sales and profits due to competition.Unit 4 – Marketing Mix 39

- it gives top priority to sales volume and quality maintenance
may be secondary.
- end of growth period is at the inflection point on the sales curve.
- effective distribution and advertising are considered as key
factors in this stage.
- word of mouth advertising leads to more new users.
3. Maturity:
- competition brings pressure on prices in this stage.
- increasing marketing expenditures and falling prices will
reduce profits.
- additional expenditures is involved in product modification and
improvement the product line.
- marketers adopt measures to stimulate demand and face
competition through advertising and sales promotion.
- overall marketing effectiveness becomes the key factor.

4. Saturation:
- it occurs in market when all potential buyers are using the
product and have only replacement sales.
- consumption achieves a constant rate and marketers have to
concentrate exclusively on market share.
- prices may fall rapidly and profit margins may become small
unless firm makes substantial improvements and realizes cost
economies.
5. Decline stage:
- product enters the declining stage once the saturation point is
reached.
- it may be gradually displaced by some new innovation.
- sales drops severely, competition dwindles and even product
can’t stand in the market.
- price become primary weapon of competition and reduce
expenditure on advertising and sales promotion. 41

- many products don’t follow the life cycle curve.
- time interval for each stage varies widely from product to
product.
(E.g.) Salt remains in maturity stage for ever.
Table radios now moved into declining stage after achieving
maturity and saturation.
- marketers alter product life cycle primarily through product
improvement and changes in rest of marketing mix.
Product Life Cycle and Marketing Strategy:
- the essential in life cycle is difference between sales curve and
profit curve.
- marketer generate stream of new products inn order to maintain
market position and firm hold profitability.
- life cycle governs strategic marketing planning at all levels.
- it is not involved in product planning & development but also in
pricing, promotion and distribution. 42

Diffusion (Adoption) of Innovations:
- diffusion process developed by E.M. Rogers which is
same as product life cycle.
- diffusion process looks at what is happening in market,
whereas product life cycle depicts the flows of revenues
and profits to business unit on account of diffusion process.
- diffusion process is described in form of normal
distribution curve. (bell – shaped curve)
- adoption and diffusion of any new product slowly
develops because of resistance to change and time taken
for communication of new innovation.
- adoption process gains momentum and grows rapidly.
- it achieve peak point when potential buyers have tried the
new product.

Diffusion Process
1. Innovators:
- they are risk takers &
act as forerunners.
- they take risk in
different aspects with
different life style and
personality like young, educated, etc.
2. Early Adopters:
- they are opinion leaders and taste makers in their circle of
connections, community also.
- they are educated, rich and more successful than average.
- they exposed to information from all sources.

3. Early Majority:
- to adopt new product, bringing total adopters to 50%.
- average people with regard to income, occupation, age,
education.
- they make innovation and no longer a luxury or novelty,
don’t hold leadership position.
- they form bridge between new and old values of society.
4. Late Majority:
- they are older and less educated buyers and have limited
purchasing power.
- they buy product only when public opinion clearly is in
favour of product.
- they depend more on word of mouth and personal
guidance and less exposed to mass media.

5. Laggards:
- they tend to be older, with less education, poorer and
traditional in their outlook on life.
- caution, conservation and price consciousness
characterize the laggards.
- they have little contact with mass media particularly
newspapers and rely only on radio, TV and reference group.
Marketing and Innovation:
- innovation is purposeful, organized, risk taking change
introduced by marketer in order to maximize economic
opportunities.
- successful innovation is necessary for effective marketing.
- it makes rich in business operation with customer oriented
marketing.

- innovation is act of developing a novel idea into a
process must be feasible and must have commercial
acceptability.
A successful innovation passes through three stages –
1. Idea or invention.
2. Implementation of idea.
3. Market acceptance.
- a firm control partially the first two stages.
- the acceptance decision is external factor and depends
upon consumers and their reactions.
- marketer rely on all modes of promotion or marketing
communications to exert influence on consumer
behaviour and induce potential customers to adopt the
innovation. 47Unit 4 – Marketing Mix

Adoption Process:
“An adoption process is a process bringing about a change in
buyer’s attitudes and perceptions”
- it covers the steps that consumer usually goes through in
determining feasibility of buying new products.
1. Awareness:
- person learn about new idea, product and general
information through advertisement.
- limited knowledge about special qualities, usefulness,
performance, etc.
2. Interest:
- it develops interest in innovation and demands more
detailed information about the new product.
- it seek information from salesperson, friends, TV, radio, etc.

3. Evaluation:
- the accumulated information and evidences are weighted by
person in order to assess worth of innovation.
- it finds pros and cons of new product and extend to which it
is good.
4. Trial:
- it is ready to put the change into practice.
- competent personal assistance necessary to put innovation
to use.
- large scale use depend upon success of small scale
experiment.
5. Adoption:
- it is final stage in buying decision making process.
- it decides to adopt new idea, product or practice for
continued use. 49Unit 4 – Marketing Mix

Product Innovation:
- the innovative attitude of a marketer is expressed in word
“innovate or die”
- it is integral part of marketing concept.
- Peter Drucker recognized the equal importance of
innovative attitude and marketing concept.
Methods of obtaining Products
Internal
Development
discovering and
developing new
products by firm
itself.
Acquisition
Buying the firm
that developed or
patented the
product.
Licensing
Securing right to
produce product
from a patent
holder.

- a firm have two basic functions: marketing and
innovation to attract the customers.
- every growth industries have important role for
innovation in marketing their marketing plans.
- innovation assures growth and survival while customer
orientation assures survival.
- evolution of new product is practical business function
and it is described as process of product management.
- process of planning and development is always adopted
for product innovation.
- product development is a general term covering the search
for new products and new innovations as well as the
improvement of existing products.

Planning and Development Strategy:
Marketers have four alternative ways for growth in sales and
profits –
1. Market Penetration:
- it involves expansion of sales of existing products in
existing markets by selling more to present customers or
gaining new customers.
- firm can market present products to existing markets
through more aggressive marketing mix.
- potential buyers can also be attracted and existing buyers
may be induced to increase their rate of use.
- temporary price cut to raise volume of sales and penetrate
market.

2. Market Development:
- present product is introduced to a new market or segment.
- it is the creation of new markets by discovering new
applications for existing goods.
- firm can offer its existing products to new markets.
- this is another alternative to expand market opportunity,
prolong product life cycle, profitability and survival.
3. Product Development:
- it occurs when firm introduces new products to a market in
which it is well established.
- it is the introduction of new products in present market.
- established firms have new product additions upon existing
market successes.
- by offering new or improved products can satisfy customer.

4. Diversification:
- it occurs when firm seeks to enter a new market with
completely a new product.
- firm has neither market expertise nor product knowledge.
- they adopt strategy by creating new products for entirely
new products.
- only innovating firm go for diversification in products.
- it has unfamiliar products for unfamiliar market.
Factors rating a new product introduction are:
a) Marketability.
b) Durability.
c) Productive ability.
d) Growth potential.

Existing Products New Products
1) Market Penetration 2) Product Development
(Or)
Product Differentiation
5) Creating sub product markets
Market Segmentation
3) Market Development 4) Diversification
Existing
Markets
New
Markets

Product Planning and Development Process:
Some of the steps in planning and development of a new
product is –
1. New Product Idea:
- ideas may be contributed by scientists, professional
designers, customers, sales force, dealers, etc.
- we need 60 new ideas to get one commercially viable
product.
2. Ideas screening:
- to evaluate all ideas and inventions.
- poor ideas are dropped and through process of
elimination only most promising and profitable ideas are
picked up for detailed investigation and research.

3. Concept Development and Testing:
- all ideas that survive the process of screening
(preliminary investigation).
- they will be developed into mature product concept.
- it will have precise description for the ideas and features
of proposed ideas.
- concept testing helps the company to choose best among
alternative product concepts.
- consumer are offer their comments on precise written
description of product concept (i.e.) attributes and expected
benefits.
4. Business Analysis:
- it is a combination of marketing research, cost benefit
analysis and profitability analysis.

- it will prove soundness and viability of the selected
product concept from business view point.
- it is subjected to rigorous scrutiny to evaluate its market
potential, capital investment, rate of return on capital.
- it concentrated on product development and offer realistic
profit objectives.
5. Product Development Programme:
It has three steps, when a idea duly converted into a physical
product –
i) Prototype development giving visual image of the product.
ii) Consumer testing of the model or prototype.
iii) branding, packaging and labelling.
- it will provide ground for final selection of most
promising model for mass production & distribution.

Test Marketing:
“Pre-testing involves a research technique in which the
product under study is placed on sale in one or more
selected localities or areas and its reception by consumer
and trade is observed, recorded and analyzed.”
- it provides vital clues about the product deficiencies
which are not noticed at the time of designing and
development.
- it works and show relative importance of different
components of marketing mix making the new product a
success.
- marketers come to know of financial and environmental
difficulties the product would face.
- stage of product planning has more relevance to consumer
products. 59Unit 4 – Marketing Mix

Test marketing –
i) Helps management in increasing profit potential of the
new product.
ii) Helps in assessing nature and dimensions of consumer
reactions to the new product.
iii) It neutralized competitive reactions of rival products by
knowing the strategies of competitors through marketing
intelligence network.
The important aspects of test marketing are –
i) Generation of potential sales volume.
ii) Locating strong points of product.
iii) Finding out innovative buyers.
iv) Designing effective advertising message to transmit strong
points of products.

v) To test potential for repeat purchases.
Finally test marketing will inform the management to –
i) Commercialize the product.
ii) Reject the product.
iii) Further test the product.
Commercialization:
“Commercialization refers to the process of finally deciding
the product profile, building up requisite manufacturing and
ancilliary marketing results and introducing the product in
market for sale.”
Product reach commercialization stage have following
activities –
i) To decide about packaging.
ii) to decide about brand. 61Unit 4 – Marketing Mix

iii) Providing manufacturing facilities.
iv) Developing proper marketing mix (i.e.) to decide about
pricing, promotion media, distribution channel, etc.
- this activities consumes more time and money.
- commercialization of product should be managed well.
- product quality governs the ultimate fate of entire marketing
programme in market place.
- advertising and promotion only build image for product in
market.
- performance quality and market perceived quality
management maintains brand image in consumer.
- product features with customer needs and expectations in
competitive market.
- time of commercialization quality concept should be
developed and maintained. 62

BRANDING
Meaning:
 The word ‘Brand’ is a comprehensive term, which may be name
or mark as proof of ownership.
 It means sign or symbol of quality and best means of advertising
and positioning in market.
 It capture and retain the consumer demand in a competitive
market.
 It is practice of giving a specified name to a product or group of
products from one seller.
 The sole purpose of branding is to distinguish your branded
product from those of competitors.
 It is broadly applied to all identifying marks like trade mark,
trade names, trade symbols, picture, design, colour and
attractive slogan. 63

Definition:
Brand:
“Brand is defined as a name, sign or symbol, mark, logo,
word, sentence or combination of these items used to
identify product or services of sellers and to differentiate
goods from competitors.”
Branding:
“It means of distinguish one firm’s products or services
from another’s and of creating and maintaining an image
that encourage confidence in the quality and performance
of that firms products or services.”
Brand extension or Stretching:
“It is a marketing strategy in which a firm marketing a
product with a well – developed image uses the same brand
name in a different product category.” 64

Brand Loyalty:
“It also refers to the degree to which a consumer
consistently purchases the same brand within a product
class.”
- preference by a consumer for a particular brand that
results in continual purchase of it.
Brand Equity:
“It also refers to attractiveness and familiarity of a
brand name in the general market place. Brand equity
permits companies to charge premium prices for
products and services, contributing to increased profit
margins. Brand equity is therefore a valuable asset that
companies invest huge amounts of money to develop.”

Importance of Branding:
1. Marketer can build bright image of organization
around brand. It enables advertisement of specific
product and it is pre-sold through advertising. It can
easily recognized by customer in retail shop.
2. It enables firm control over the market. It creates
exclusive market for product.
3. It enables brand owner to establish his own price which
cannot compared with competing product. Branding
reduces price flexibility.
4. If a firm has one or more lines of branded goods, it can
add a new item to its list easily and the new item can
enjoy all the advantages of branding immediately.

Reasons for Branding:
The following reasons are –
1. Ever increasing competition.
2. Importance of packaging as a distinct marketing function.
3. Need for advertising and publicity.
4. Development of consumer brand consciousness as brand
image in mind.
5. It creates special consumer preference and consumer
enters the shop to demand and insist specific brand of the
product.
6. It is successful activity of demand – creation.
(E.g.) Vim, Pears, Lifebuoy, Colgate has great pulling power
in India.

Essentials of Good Brand:
1. Brand should suggest something about product benefits,
use, quality, purpose or action, etc.
2. Brand name should be short, simple, easy to pronounce, to
spell and remember and easy to identify and visual
interpretation.
3. It should be capable of being registered and protected
legally under legislation.
4. It should be stable life and be unaffected by time. It depend
on fashion and style.
5. It should create pleasant associations.
6. It should not used as common name for all products.
7. It should be unique, attractive and distinctive.

Brand Strategy and Policy:
- it indicates how firm chooses to use branding as
an integral part of overall marketing strategy.
- it is important dimension of marketing strategy.
- for consumer, it is identification of product as well
as means of differentiation of branded product.
- entire marketing mix is built up based on brand
name.
- it simplifies control of commercial process.
- it need advertising and promotional support for
recognize product in the market.

Types of Brand:
1. Individual Brand name:
- each product has special and unique brand name.
- it has to promote each brand separately in market.
- it creates practical difficulty in promotion.
2. Family Brand Name:
- it is limited to one line of a product (i.e.) products which
complete sales cycles.
(E.g.) Amul for milk, Hamam for bathing, Ponds for
cosmetics, etc.
- this method of branding assumes that end uses of all
products under family brand are similar.
- products for men and women should not sold under same
family brand name. 73Unit 4 – Marketing Mix

3. Umbrella Brand:
- it has for all products under the name of manufacturer or
company.
(E.g.) products like FMCG, chemicals, engineering goods,
jewels, etc manufactured by TATA will have one umbrella
brand called “Tata’s”
- it obtain low promotion cost and minimizing marketing
effort.
- it may be outstanding and shining in the market.
4. Combination Device:
- each product has individual name but it also has umbrella
brand to indicate company producing the product.
(E.g.) Tata Tea, Tata Tanishq, TCS, Tata Motors, Tata Salt,
Tata Glucose, etc.

5. Private or Middleman’s Brands:
- branding done by manufacturer or distributors like
wholesalers, retailers, etc.
- it helps small manufacturer to rely on middleman for
marketing.
(E.g.) Home appliances, materials, etc.
- middleman enjoy freedom in pricing products sold.
- they make either private and national middleman brands.
Brand Franchise:
- it enables company to influence customers and develop
customer preferences towards brands.
- it create brand awareness and recognition.
- it develop brand preference and brand loyalty.

- this is stage when consumer prefer given brand for
buying it.
- seller has brand franchise, if customer exhibits brand
loyalty, brand preferences towards product or service.
- seller try to move buyers from brand awareness to
brand preferences.
- it indicates that customer regards brand favourably but
will accept a substitute if said brand is not available in
shop.
- brand recognition indicates that consumer’s
favourable attitude toward brand.
- this is minimum expectation of advertiser while
developing brand franchise.

Branding and Marketing Programme:
- it is a instrument of advertising and sales promotion in order
to secure consumer loyalty toward the brand.
Some of the reasons for granting importance to branding are –
1. Product Differentiation – it enables manufacturer to establish
own price and eliminate price competition to some extent.
2. Brand Image – it built up through the years by quality of
product produced, services offered and company’s reputation,
policies and marketing efforts.
3. Creation of Market – ever increasing competition leads to
branding of product by manufacturer to face competition and
create exclusive market for product.
4. Advertisement and Publicity – it helps advertising, display
and sales promotion. Package itself can act as a medium of
advertisement.

5. Brand Preference – it not only gives separate identity
and easy recognition to product and also creates special
brand preference and brand loyalty. It powerful tool of
demand creation and demand retention.
6. Brand Patronage – development of loyal customers,
repeat buyers are greatest reason in favour of branding.
Clear message of service and appreciation,
responsiveness and value in brand name produces
consumer loyalty.
7. Expanding the Product Mix – many successful product
has created an umbrella under additional products
launched with less risk. All products in their product mix
sold under one blanket or family brand. New product
associated with respected brand is received by consumers
and dealers. 78Unit 4 – Marketing Mix

Brand / Product Positioning:
- it is what the company do to the mind of the prospect (i.e.) to
create and build up brand equity, perceived value of product
position in minds of customer.
- the purpose of positioning must occupy particular space
continuously in consumer’s mind, which is called ‘renting mind
space’. (i.e.) finding a suitable space in mind of customer.
- positioning is based on Unique Selling Proposition (USP).
- it answers the question who am I and what is in me?
(E.g.) Complan is positioned as a health builder.
Amul milk powder is positioned as convenient and ready
substitute to milk.
Maruti car is positioned on fuel efficiency.
Some positioning depends on luxury, usage, convenience, quality,
etc.

Brand Future in India:
Brand is a proprietary name which has three important legs:
1. Brand equity – it is intrinsic value or worth of brand, in terms
of money a consumer is willing to pay for it in preference.
2. Brand image / values – consumer’s mind set which are
beneficial to purchase of brand.
3. Brand franchise – measures on – going relationships between
brand and consumers in terms of actual purchase.
- branding phenomenon has taken Indian market by storm.
Branding and Consumers:
Consumers while buying pre-packed branded goods use following
guidelines to measure quality in relation to price.
1. Tips from friend. 2. advertising.
3. slogans. 4. brands & trademarks.
5. labels. 6. comments from salesman. 80

- price is used as a measure of quality and high price is
indication of quality.
- repetitive advertisement tells consumers that brands
assures high quality and rarely given evidence to prove
higher quality.
- based on comparative testing there is no dependable
correlation among brand, price and quality.
- brand process may be against public interest and it needs
attractive packaging, heavy advertising and promotional
expenditure.
- utility of branding diminishes as consumer’s faith and
confidence in product increases.
- consumer demands the product by quoting the special
brand name. (E.g.) Prestige gas stove, Kenstar Micro
Owen, etc. 81Unit 4 – Marketing Mix

In India, consumers have following benefits –
1. Right kind of brand advertising and personal selling
provides ample information to the consumer about the
branded products.
2. Branded goods have uniform and standardized quality as
the owner of the registered brand is personally responsible
to maintain the quality.
3. Rapid sales turnover assures fresher product due to
frequent replacement of stock with the retailer.
4. There is considerable saving in time in the selection of
goods and also in the making up of orders.
- variety and complexity of products creates a practical
difficulty for average consumers in choosing a product to
satisfy his wants.

PACKAGING
Meaning:
 Packaging & labelling are
specialized activities demanding the product or services.
 Package and label represents the product personality.
 Aesthetically pleasing package can secure higher sales and
profit.
 It means of attractive display in the retailer’s shops.
 It is a physical action and provide a handling convenience,
necessary to prevent, maintains freshness and quality and
prevent danger of adulteration. (E.g.) reusable jar.
 It is an invaluable aid to decision making by customers and
package is important informational cue to many buyers.

Definition:
“Packaging may be defined as the general group of
activities in the planning of a product. It formulate a design
of package and producing an appropriate and attractive
container or wrapper for a product.”
Packaging value will be based on following contributions –
1. Condition of products on receipt by the customer.
2. Promotional and informative value of the package.
3. Role of package in physical distribution at all points in
marketing channel.
4. Environmental and ecological aspects of packaging.
- it decorates and beautifies the product.
- message on label is a constant remainder to user of
product.

Innovative packaging

Functions of Packaging:
From marketer’s point of view –
1. Packaging is a sales tool.
2. It identifies the maker as well as product and carries brand
name.
3. Packaging label informs buyer about inner contents and
how to use them.
4. It is the biggest advertising and promotion tool.
Attributes of good package:
1. Protect the contents from breakage or spoilage.
2. Be easy to open, dispense from and close.
3. Be safe to use. 4. keep product from deterioting.
5. Proper size and shape. 6. reusable.
7. Be economical. 8. available in appropriate sizes. 87

Good package will be -
1. Be attractive. 2. projecting a favorable image.
3. Play role of silent salesman.
4. Readily identifiable in shopping situations.
5. Act as a unique selling proposition.
6. Readable description of contents.
7. Offer information about preparation and use.
8. Communicate benefits of product.
Package Design:
- it must fulfill utility functions like protection,
identification and convenience.
- it should have informative labelling. (headlines,
guidelines).
- visibility of product in package helps to sell product. 89

- well designed and attractive package is an ever –
present.
A good package is -
a) economical, b) functional, c) communicative and d)
attractive.
- truth in packaging is absolutely necessary while
designing the package.
- deceptions in packages should be eliminated either
through self regulation or legislation.
- package must be honest and helpful to consumers.
- it should have deceptive communication under any
circumstances.
- consumerism insists on truth in package.

Innovative packaging (Value added Package):
- nowadays marketer are dividing link between value –
added package and promotion.
- there are spate of packaging innovations go beyond for
impulse purchase and excitement.
- innovative packaging based on customer needs can help in
retaining loyalty to brand.
- modern package provides more value added to products
and benefits during usage.
- it can be a promotional campaign to gain quick short term
market share.
(E.g.) Plastic bag with zip lock, five strips of Band-Aid,
Harpic liquid toilet cleaner with nozzle, Bournvita’s
reusable mug-cum jar pack, etc.

Revolutionizing the Packaging System:
- the types of plastics not only utilize depleted natural
resources but also revolutionized concept of packaging.
- new rigid plastic materials with printability and
metalizing property is revolutionize packaging system in
field of medical and food sectors.
- reprocess and reuse has solved the problem of pollution.
- in India, 40% of plastic are recycled, where plastic
containers are reused several times.
- weight of packing materials would be 300% higher,
volume of waste 150%.
- plastic recycling reduced substantially problem of waste
disposal and environmental degradation due to packaging.

Social View of Packaging:
Significance of social view of packaging are –
1. Pollution control is burning issue in packaging particularly
in Western countries. (E.g.) broken bottles, crushed
cartons, bent cans litter.
2. Resource scarcity is another problem. (natural resources
are being waster on non – returnable) (E.g.) soft drink
bottles, beer bottles, etc.
3. Among the resources which are wasted, energy sources are
most critical at present. (energy saving, returnable bottle
should be introduced).
4. Nutrition labelling, open dating (freshness in product), unit
pricing and grade labelling are latest demand of consumers.

Consumers Problems with Packaging:
1. Unless package is transparent, buyer can’t judge the
contents.
2. If customer wants a specific quantity, no amount when it
sold in packages.
3. There is no feasible way to check the weight and volume
of contents unless buyers opens the package.
4.Package size and designs inflate the contents. (E.g.) 10%
off in price may not be real.
5. Deceptive package have several problems in trade
practices.
6. Packages are same, contents are reduced and apparently
same prices are charged.
7. Package may create health hazards for consumers.

PRICING
Meaning:
 Price is the mechanism or
device for translating into quantitative terms (rupees and
paise) the perceived value of the product to the customer at
a point of time.
 Price must be equal to the total amount of benefits
(physical, economic, social and psychological benefits).
 Price is the only criteria for consumer for comparing
alternative items and making the final choice.
 Price is equivalent to total product offering includes brand
name, package, benefits, service after sale, delivery, etc.
Money (Price) = Bundle of Expectation or satisfactions.

Definition:
“Price is defined as the amount of money charged for a
product or service.”
“Price is defined as the amount of money expected, required
or given in payment for something or product or service.”
Importance of Pricing:
- it denotes the value of a product or service expressed in
money.
- price is determined by free play of demand and supply.
- market price acts as basis for fixing the sale price.
- price regulates business profits, allocates the economic
resources for optimum production.
- price is prime regulator of production, distribution and
consumption of goods.

Important marketing variables influenced by pricing
decisions are:
1. Sales volume.
2. Profit margins.
3. Rate of return on investment.
4. Trade margins.
5. Advertising and sales promotion.
6. Product image.
7. New product development.
- pricing is important role in design of marketing mix.
- it is a powerful marketing instrument.
- every marketing plan involves a pricing decision and it
should be accurate and planned.

Significance of the Price factor:
Price level –
a) Controls the sales volume and firm’s market share.
b) Determines the total sales revenue. (sales revenue = sales
volume unit price).
c) Regulates the rate of return on investment and through
ROI influences sales profitability.
d) Creates an impact on unit cost in mass production.
Objective of Pricing:
1. Growth in Sales:
- right price can stimulate desired sales increase.
- price and non price objectives are coordinated to produce
the desired increase in sales.
- it secure faster increase in sales. 98

2. Market Share:
- it carries heaviest responsibilities for improving or
maintaining market share.
- it is sensitive indicator of customer and trade acceptance.
3. Predetermined profit level:
- 15 to 20% ROI is common decision in marketing and it is
most logical of all pricing objectives.
4. Meet or Follow Competition:
- stabilization of price levels and operating margins are
important for maintenance of short run profits.
5. Control cash flow:
- the objective of pricing is to return cash as much as
possible.
- investment in market research, development, promotion, etc
must recovered within certain period. 99

Factors influencing Pricing Policy:
1. Cost:
 It is critical information in profitable pricing decision.
 They move resources to highest profit opportunities and make
best use of available scarce resources.
 It is possible to assess production efficiency and estimate
relative profits at various prices.
2. Objectives:
 It is based on objectives set by company.
 Objectives are i) maintaining ROI, ii) stability in prices, iii)
maintaining or increasing market share, iv) meeting or
preventing competition, v) maximizing profits.
3. Demand:
 It is depicted by demand curve and important factors in pricing
decision is demand for product.

 It use the curve to estimate changes in total demand for product.
 Price is decided based on type of elasticity and when price has
major effect on demand, product is price elastic and vice versa.
4. Competition:
 Determination of price is influenced by present and potential
competition.
 New product remains in market until competition arrives.
 Prices should be tailored to meet various types of competitive
postures.
5. Distribution channel:
 Goods are made available to consumers through middlemen.
 Compensation price included in ultimate price the consumer
pays.
 Longer the distribution channel, more will be price for product.

6. Government:
 It interferences control of prices, levying of taxes, etc will
influence pricing policy of organization.
 Consumer have to pay more for product due to increased tax
component added in price.
7. Economic Conditions:
 It influences price fixation and raised during inflation because
of increase in costs.
 Prices are reduced as survival becomes a problem in depression.
8. Ethical Consideration:
 Fixing of price for product may resort to ethical consideration.
 Certain products makes profits but as a public welfare measure.
(E.g.) company sells certain life saving drugs or vaccine at price
which covers cost of production cost.

9. Types of Buyers:
 Price fixation dependent on types of consumers.
 Different buyers have different motives and values.
 Buyers observe quality, safety, status symbol in product.
10. Product Differentiation:
 It is one of the strategy to reach maximum customers.
 Different strategy are adopted to reach many customers.
 Products differentiated in size, shape, colour, costing, etc.
11. Geographic Pricing:
 Manufacturers can adopt different prices in different area.
 It includes cost of goods plus expenses include the loading on
cargo.
 Marketer charges same price to all customers regarding their
location.

12. Prestige Pricing:
 Price is based on perceived value of the product.
 Customers judge quality of product by its price and they
perceive higher the prices better will be quality.
 (E.g.) Customers pay additional price based on the quality of
product or service.
13. Contract Pricing:
 This is also called ‘sealed – bid pricing’.
 It is followed in case of specific job works.
 Government contracts are usually awarded through this method
called ‘tender’.
 Expected cost is worked out and quotation is placed.
 Minimum price is quoted is accepted and work contract is
entered with the party.

Price Determination Process:
1. Market Segmentation:
 Marketers will find out specific marketing targets in the form of
appropriate market segments.
 Marketers will have firm decisions on i) type of products to be
produced of sold, ii) kind of service to be rendered, iii) costs of
operations to be estimated, iv) types of customers of market
segments.
2. Estimate of Demand:
 Marketers estimate based on sales forecast, channel opinions
and degree of competition in market.
 Prices of comparable rival products can guide us in pricing our
products.
 It determine market potential by trying different prices in
different test markets.

3. Market Share:
 Marketers will choose a brand image and desired market share on
basis of competitive reaction.
 Level of competition pricing enables the firm to price above, below
and decision is easier in many cases.
 Proper pricing strategy is evolved to reach the expected market share
either through skimming price or through penetration price or fair
trading or fair price to cover cost of goods, operating expenses and
normal profit margin.
4. Marketing Mix:
 Overall marketing strategy is based on all elements of marketing mix
i) product market strategy, ii) promotion strategy, iii) pricing
strategy and iv) distribution strategy.
 Fixing appropriate price is important in marketing elements.
 Promotional strategy will affect pricing decisions and design of
marketing mix indicate role by pricing in relation to other elements.

5. Estimate of Costs:
 Straight cost plus pricing is not desirable always as it is
not sensitive to demand.
 Marketers must taken into account all relevant costs as
price elasticity of demand.
6. Pricing Policies:
 It provides general frame work within which
managerial decisions made on pricing.
 Pricing policy desire to meet competition or may have
pricing above or below the competition.
 Pricing policies must change and adapt themselves
with the changing objective and changing
environment.

7. Pricing Strategies:
 It is guidelines for routine issue in marketing.
 Strategy is plan of action to adjust with changing
conditions of market place.
 New developments may occur like price cut, government
regulations, economic recession, changes in consumer
demand, etc.
 Situations like demand special attention and relevant
adjustment in pricing policies and procedures.
8. Price Structure:
 Developing price structure is final step in determination of
pricing policies and strategies.
 It define selling price for all products and permissible
discounts and allowances given to middlemen.

Pricing Methods:
1. Cost – Plus Pricing:
 Set the price at the production cost plus a certain profit
margins.
2. Target return pricing:
 Set the price to achieve a target return on investment.
(E.g.) suppose a pen manufacturer has invested 1 million
rupees in the business and wants to set a price to earn a 20%
ROI. The manufacturing cost of per pen is Rs.16. Assuming
that the sales can reach 50,000 units, the Target return price
will be = 16 + (0.2 * 1000000)/ 50,000 = Rs.20
3. Value – based pricing:
 Base the price on the effective value to the customer relative to
alternative products.
(E.g.) price based on materials. Shoe, Clothes, etc 109

4. Psychological pricing:
 Base the price on factors such as signals of product quality,
popular price points and what the consumer perceives to be
fair. (E.g.) Bata showroom price Rs.199, Rs. 399.
5. Skimming price:
 Enter the market by setting a high price and selling to those
customers who are less price sensitive. (E.g.) Electronics
6. Penetration Pricing:
 Enter the market by setting a low price and selling maximum
quantity to attract large no. of customers.
7. Managerial Cost pricing:
 Setting the price of the product to equal the extra cost of
producing an extra unit of output. (E.g.) fixing a price and
getting margin based on demand.

8. Going rate pricing:
 Setting a price for a product or service using the prevailing
market price as a basis. It is common practice with
homogeneous products with very little variation from one
producer to another.
(E.g.) Aluminum or steel, etc.
9. Customary pricing:
 Price for goods or service based on the perceived expectations
of customers. It is used for products with relatively long market
history of being sold for particular amount.
(E.g.) Milk, coffee powder, soft drinks, etc.
10. Mark – up pricing:
 It refers to the price arrived at by a retailer by adding a certain
percentage (towards his margin of profit) to the manufacturer’s
price. It is only at this price that he sells the goods to the
consumers. 111

Forces influencing Price Decision:
1. Base Price:
- it is realistic market price and resembles an ideal price.
- it is made ensure closer correlation between the product of
firm and consumer wants and desire (i.e.) matching the product
offering with the expected bundle of satisfactions.
- it acts as reference price and determined by adding extras and
deducting discounts.
2. Break – even analysis and pricing:
- it emphasize relationships among decision variables like price,
costs and volume of sales.
Sales Revenue = Total Costs
“Break even point is defined as neither gains nor losses”.
- it is the point at which sales revenue is just equal to the total
costs.

* Sales Volume – it is a function of prices charged and the
amount of products sold.
- it is based on sales budget and the sales forecasts (i.e.)
estimated sales volume.
* Costs – fixed costs are costs of being in business and variable
costs vary with the output or number of units produced.
* Contributions – it is important factor in break even analysis.
- it contributes to profit and overheads per unit of each
product.
3. Return on Investment (ROI):
- it is financial ratio of profit to equity.
- it improved through pricing that will increase turnover while
maintaining earnings.
- ROI can be improved by increasing the earnings ratio.

Pricing Policies and Strategies:
1. Price in Line (Pricing at the Marketing):
- it is preferable when product differentiation through branding
is minimum, buyers and sellers are well – informed and have
free market economy.
- price loses its importance as weapon of competition.
- sellers have to adopt other means of non – price competition
(E.g.) branding, packaging, advertising, etc.
2. Market – Plus (Pricing above the Market):
- sales above market prices under free competition is profitable
only when product is distinctive, unique and status in market.
- customer put great value on product if package is good and
brand is well known.
- price is associated with value, quality, durability, performance,
credit, etc.

- product differentiation through branding introduces
monopoly element in pricing and afford higher prices
without reducing volume of sales.
3. Market – Minus (Pricing below the Market):
- sale below the market price, is profitable only to large
chain store, self service stores and discount houses.
- large retailers sell well known brand with suggested retail
prices.
- due to inferior quality, product will have low cost and
retailer can fix low price for product.
* Right Pricing – best pricing policy in competitive market is
market based method of pricing.
- this price policy will prevent price war and assure normal
profits.

* Non – Price Competition – seller mostly rely on non price
factors to capture customer demand.
- Non price competition devices are branding, attractive
packaging, service after sales, liberal credit, free home
delivery, sales promotion, etc.
- Price is not sole determinant of purchasing besides
consumers demand better services, better quality, credit.
Conditions favouring Higher Prices:
1. Higher sales promotion expenditure is needed.
2. Production is as per order.
3. Initially small market share is preferred.
4. Sales turnover is slow.
5. Good many ancillary services are needed.
6. Goods are durable and 7. package is unique. 116Unit 4 – Marketing Mix

Conditions favouring Lower Prices:
1. Little sales promotion is necessary.
2. We have mass production.
3. We are ready for mass distribution and we want larger market
share.
4. Sales turnover is quick. (i.e.) fast selling is anticipated.
5. Very few or no additional services are needed.
6. There is no special package.
7. Perishable goods demanding quick clearance.
One Price Vs Variable Price Policy:
* One price – seller charge all similar types of buyers exactly the
same price and there will be no discrimination of difference
among buyers.
- discounts and allowances are granted on equal terms to all
buyers. 117Unit 4 – Marketing Mix

- through efficient management and best marketing mix,
manufacturer and dealers should bring down marketing costs and
improve quality of service.
* Variable price – seller sell similar quantities to similar sellers at
different prices.
- favoured customers are offered lower price.
- discounts and allowances are granted on unequal terms to
buyers.
Advantages of One price policy:
 Sellers have flexibility in dealing with different customers.
 Lower selling costs, saving of time in sale as there is no
bargaining.
 Customer confidence is secured and seller can maintain
goodwill.
 It is suitable for self – service retailing, mail order selling and
automatic vending or selling. 118

Advantages of Variable price policy:
 Sellers have flexibility in dealing with different customers.
 Certain valuable customers can be offered lower prices.
 Flexible price policy enables to attract customers of other
competitors and new business secured.
 When size of transaction is larger, price should be negotiable.
 Sellers of consumer durables often adopt variable price policy.
 Buyers have greater bargaining power or able to pay cash.
Cost Plus Or Mark up Pricing:
Four items determining sale price are –
a) Cost of producing / acquiring goods.
b) Cost of operating / selling expenses.
c) Interest, depreciation, etc.
d) Expected profit margin or mark up.

Cost Plus price:
 It is popular in retail trade and wholesale trade.
 Form of customary mark up pricing or cost plus
pricing is most practical in trade, as items for sale are
innumerable.
Mark – up price:
 It is expressed as percentages.
 The base used as 100% may be either cost value or sale
value.
 Mark – up is always stated as a percentage of selling
price.
 Mark – up is bound to inflate the ultimate retail price.

DISTRIBUTION
Definition:
“Channels of Distribution is defined as the set of
interdependent marketing institutions participating in the
marketing activities involved in the movement or flow of
goods or services from the primary producer to the
ultimate consumer.”
Components of distribution:
1. All kinds of merchant middlemen like wholesalers and
retailers.
2. All kinds of agent middlemen like commission, agents,
brokers, warehouse – keepers, etc.
3. All other facilitating agencies like bankers, advertising
agencies, etc. 121Unit 4 – Marketing Mix

Need for Channels of Distribution:
i) Searching out of buyers and sellers.
ii) Matching goods to the requirements of market.
iii) Offering products in the form of assortments or
packages of items usable and acceptable by users.
iv) Persuading and influencing the prospective buyers
to favour a certain product and maker.
v) Implementing pricing strategies in such a manner
that would be acceptable to buyers and ensure
effective distribution.
vi) Looking after all physical distribution functions.

vii) Participating actively in creation and
establishment of market for new product.
viii) Offering pre – and after – sale services to
customers.
ix) Transferring of new technology to the users along
with supply of products and playing role of change
agents.
x) Feedback information, marketing intelligence for
suppliers.
xi) Offering credit to retailers and consumers.
xii) Risk bearing with reference to stock holding /
transport.

Sub – divisions of Distribution Systems:
 Channel of Distribution – refers primarily to the
middlemen or intermediary marketing institutions which
perform certain marketing functions
 Physical Distribution – concerns with flow of goods to the
consumers – transportation, storage, warehousing,
packaging.
The Channel recognized as a system involve flow of –
a) Information. b) Marketing Communications
c) Materials. d) Manpower. e) Capital equipment.
f) Flow of goods and services.
g) Flow of ownership and risk of loss.
h) Flow of negotiation and transaction.

Channel Choice: (Channel Management Decisions)
Marketing channel decision influence all other marketing
decisions like pricing and promotion.
It requires special attention as involve long term
commitments to other firms.
It is a key external resources equal important with internal
resources.
The following are other critical factors –
1. Product:
 If commodity is perishable, producer prefers few and
controlled levels of distribution and speedy movements
need shorter channel.
 For durable goods, longer and diversified channel is
necessary.

 For custom goods, direct distribution to consumer may be
desirable.
 For technical product needs specialized selling and serving
talents.
 Products of high unit value are sold directly by travelling
sales force.
2. Market:
 For consumer market, retailer is essential and for business
market it eliminate retailer.
 If market size is large, we have many channels.
 For highly concentrated markets, direct selling is enough
but diffused markets.
 Size and average frequency of customer’s orders influence
channel decision.

 Adequate information like age, gender, religion, etc should
studied for market segments.
 Buying habits will influence our channel choice..
3. Middlemen:
 Middlemen provide wanted marketing services.
 Selected middlemen must offer maximum co-operation
particularly in promotional services.
 Channel generating largest volume at lower unit cost will
ne given top priority.
4. Company:
 Company’s size determines size of market and ability to get
middlemen’ s co-operation.
 Company’s product mix influences pattern of channels.

 Company with substantial financial resources need not rely
too much on middlemen and to reduce distribution level.
 New companies rely heavily on middlemen due to lack of
expertise.
 Company desiring to exercise greater control over channel
will prefer shorter channel.
 Heavy advertising and sale promotion can motivate
middlemen to handle displays and join in campaign.
5. Marketing Environment:
 It influence channel decision.
 During recession or depression, shorter and cheaper channel
is preferable.
 Technological inventions also have impact on distribution.
 It led to expanded role of intermediaries.

6. Competitors:
 Similar channels may be desirable to bring out distribution
of products also.
 Marketers avoid customary channels and adopt different
channel strategy.
Channel Decision:
 First problem of channel design is whether they want direct
sale to consumer or indirect sale (i.e.) sale through
middlemen.
 Channel is problem under direct sales.
 No. of middlemen and methods to be employed in
motivating and controlling them in case of indirect route.
 Selection of middlemen begins with needs and desires for
distribution services.

 No. of middlemen employed will be determined by
customer conveniences and economies of exclusive
distribution.
 Selection of channel is made after careful analysis of
product, consumers, dealers, policies, etc.
 It must resolve channels and bring product profitability
to the market.
 Company determine its basic channel design and levels
of distribution and to select middlemen, appoint them,
motivate their efforts, evaluate their periodically and
has to recognize channels in light of experience.

Market Coverage:
1. Extensive Distribution:
 It is essential when price is low, buying is frequent and brand
switching is a common phenomenon.
 It secures rising sales volume, wider consumer recognition
and impulse purchasing.
2. Selective or Limited Distribution:
 When special services are needed (e.g.) T.V. sets or right
prestige image is to be created.
 Certain cosmetics to be sold only through chemists, we have
selected distribution.
 It has limited middlemen and they spend more on sales
promotion and offer maximum cooperation.
 Product for long useful life and consumer brand preference,
selective distribution will be more profitable. 131

3. Exclusive Distribution:
 If amount of product service expected by final buyers, exclusive
distribution is preferable.
 One wholesaler or one retailer for given market to handle right
of distribution in market.
 It creates a sole agency in given market area.
 It offer tremendous loyalty of dealers and substantial sales
support from dealers.
 Manufacturer can have greater control over prices and markets
and get maximum co-operation from middlemen.
a) Exclusive dealing contracts – prohibit dealer from selling
products of rivals.
b) Tying contracts – they compel dealer to carry full line of
manufacturer.
c) Closed sales territory – it limits each dealer to sell only to
buyers located within assigned area. 132

4. Franchise Selling:
 Franchise means a privilege or exceptional right granted to a
person.
 It is a term to describe in effect selective or exclusive distribution
policies.
 It is contract where wholesaler or retailers are organized to act in
co-operation with each other to distribute products.
 It is a system which manufacturer grants to certain dealers the
right to sell his product.
The three forms of franchising –
1. Manufacturer-sponsored retail franchise. (car maker licenses
dealers).
2. Manufactured-sponsored wholesaler franchise. (Coca-Cola
licenses bottlers (wholesalers) in each market)
3. Service-firm sponsored retailer franchise system. (Fast-food
service, auto-rental business). 133

CHANNEL MANAGEMENT DECISIONS
“Channel Management involves the analysis, planning,
organizing and controlling of an enterprise’s channel of
distribution.”
Channel Management Decisions:
1. Formulating the channel strategy – how, when and where
the enterprise’s market offerings should be made
available.
2. Designing the channel structure – direct marketing, via
sales force, via intermediaries.
a. Extensive Distribution – Mass Distribution:
- Secures rising sales volume, wider consumer recognition
and considerable impulse purchasing.

b. Selective or Limited Distribution – number of outlets at
each level of distribution is limited in a given geographic
area.
c. Exclusive Distribution – For product service – after sale
service.
Channel Design Decisions:
- selection of one or more channels.
- deals with the extent or intensity of distribution.
a) Market Factors:
- understanding the target market.
- customers preferences – channels more preferred by
customers.
- organizational customers – behaviour pattern is
different.
- geography – location.

b) Competitors.
c) Nature and Availability of Intermediaries.
d) Product Factors:
- Life Cycle, Complexity, Value.
e) Producer/Manufacturer Factor:
- Resources and Desire for Control.
f) Distribution Intensity:
- the number of marketing intermediaries that will carry the
products.
* Intensive Distribution – A channel strategy that seeks to make
products available in as many appropriate places as possible.
* Selective Distribution – limits availability of products to a few
carefully selected outlets in a given market area.
* Exclusive Distribution – Only one outlet in a market territory is
allowed to carry a product. 136

3. Selecting the Channel members:
* Product.
* Market.
* Middlemen – type of service.
* Company.
* Marketing Environment.
* Competitors.
4. Recruiting and Training Channel Members:
a) Role to be played by each channel
b) Qualifications as per the requirement of the company
c) Authority to be delegated to channel members
d) Changes in roles played
e) Training.

5. Motivation of Channel members (already discussed).
6. Coordinating Channel Strategy with the Marketing Mix:
- Proper relationship.
- Cooperation with different channel partners.
- Combined effort of different channels.
7. Evaluating Channel Members Performance:
- Sales Quota Attainment.
- Customer delivery.
- Treatment of damaged goods.
- Promotion and training programmes.
8. Modifying Channel Arrangements:
- Channel working.
- Expansion.

1. Manufacturer – Consumer – Channel (Direct Sale):
- sales through advertising and direct methods.
- sales through travelling sales force.
- sale through retail shops of manufacturer.
2. Manufacturer – Retailer – Consumer:
- directly supply to large retailers (Hypermarkets,
Supermarkets etc).
- wholesaler is by-passed.
- suitable for perishable products.
- manufacturer performs the function of a wholesaler –
Storage and transportation.
TYPES OF DISTRIBUTION CHANNELS

3. Manufacturer – Wholesaler – Retailer –
Consumers:
- narrow product line.
- wholesalers are specialised and can provide strong
promotional support.
- products are durable.
4. Manufacturer – Agent – Wholesaler – Retailer-
Consumer:
- producer uses the service of an agent middlemen
such as a sole selling agent, for initial dispersion of
goods.
- agricultural Marketing.
5. Manufacturer – Wholesaler – Consumer:
- Institutional Buyers. 140

MIDDLEMEN IN DISTRIBUTION
(KINDS)
Types of Wholesale / Retail Channels (Marketing Outlets)
Wholesale Retail
Wholesaler
(Merchant –
Middlemen)
Agent
Middlemen
1. Manufacturers
agents.
2. Selling agents.
3. Brokers.
4. Auctioneers.
5. Sole agents or
distributors.
Independent
Retailers
Mobile retailers
Fixed shops
Large retailers
1. Department
Store.
2. Chain store.
3. Self service
store.
4. Supermarket.
5. Discount
houses.
6. Mail order.
7. One price
shops.
8. Vending
machines.
Consumer co-
operative stores

1. Brokers:
“Broker is an agent who does not have direct physical
possession of goods in which he deals but he represents
either the buyer or the seller in negotiating purchases or
sales for his principals.”
- they may organized as individuals, partnership, and act as
clients, producers, dealers, manufacturers, etc.
- they experts in grades, qualities, trade terms and contract
terms.
2. Agents:
“ Agent is a person who may buy or sell on their own
account at their own risk and who do not take any title to
goods.”
- they are important in agricultural markets and it is used
by manufacturers to maintain resale prices of their goods.143

- selling agents sell entire output of their goods, have full
authority to finalize prices, terms and conditions of sale.
- all commission agents work for a fee or commission (E.g.) 3%
to 5% on sales or purchase.
Manufacturer’s agents help in three circumstances –
i) For a small manufacturer with a few products and having no
sales force.
ii) For entering into a new market to be fully developed.
iii) For sale of a new line of product which the present sales force
is unable to manage or new market is not within their territory.
3. Dealers – in primary and commodity markets, we have
different merchant dealers and they are backbone of our markets.
- dealers act as principals, buying and selling commodities on
own account at own risk.

Sole Selling Agency:
Good reputation firm in each area appoints sole agent or
distributor for their location.
Sole agency able to arrange for his goods to be advertised,
packed, warehoused, sold and delivered by selling agents
in market.
Sales manager ensure that agency is sound, honest and
practical proposition on mutual permanent benefit.
They should have regular legal agency agreement covering
mutual rights and obligations of both parties during agency.
Minimum period of agency should be normally 3 to 5 years,
with 3 months notice period on side of agency termination.
Sales agencies exclusive rights for territory and able to
handle the given area effectively.

Consignment Sale:
 Agent bought the stock by understanding the return for credit the
stock unsold.
 Stock is held on consignment by agent and property remains with the
seller until it is sold.
 It mention the maximum amount of stock to be held by agent at a
time.
 The goods are consigned to the selling agent called consignee on sale
or return basis.
 Expenses and commission are deducted from total sale proceeds and
net amount due is remitted by cheque along with account sale
 Sole agent or sole distributors are reasonable areas for exclusive
selling rights.
 Seller cannot put too much of business in hands of one agent.
 Change of agent is difficult in practice without loss of business and
prestige.

WHOLESALE TRADE
Wholesalers:
“Wholesalers are individuals or business firms who
will sell products to be used primarily for resale or for
industrial use.”
“The wholesaler is a bulk purchaser with the object of
resale to retailers or other traders after breaking down his
‘Bulk’ in smaller quantities.”
Wholesalers Vs Retail Trade:
Wholesalers Retailers
Operates on large scale in central
market and act as first outlet in
distribution.
Operates on small scale and in local
markets, selling directly to consumers a
variety of goods to satisfy the customers.
It needs large capital, wholesale prices
and margins are low, business carried
on with or without showroom.
It requires limited capital, the prices and
margins are relatively higher and business
requires a shop with or without display.
147

Types of Wholesalers:
There are three board categories of wholesalers:
1. Regular merchant wholesalers independently
owned, buying outright, offering full service and
have general – line or engage in speciality goods.
2. Wholesale commission agents with independent
ownership, but taking no title to goods and only
actively negotiating sale / purchase of goods.
3. Manufacturer’s own branches or branch offices,
owned by manufactured performing selling
functions. They maintain stock and have attractive
showrooms.

Typical Wholesale services:
Wholesalers offers typical services as middlemen between
producers and retailers in central market:
1. Maintenance of sales force.
2. Storage.
3. Delivery to retailers.
4. Financial help to both manufacturer and retailer.
5. Merchandising (i.e.) preparations for sale (packing,
grading, branding, etc.)
6. Sales promotional work.
7. Product servicing.
8. Marketing information.
9. Risk – bearing.

WHOLESALER – FUNCTIONS AND
SERVICE
Functions:
Assemble merchandise from many sources,
warehouse it, and regroup the goods for convenient
buying by retailers.
Provide information and advisory services to
retailers, and they are often in a position to provide
local market information to manufacturers as well.
Wholesalers make it possible for the manufacturer
to sell to thousands of small retailers.

Services to the Manufacturer or Producer:
1. Order Collector:
- wholesaler acts as order collecting and marketing agency for
the manufacturer, therefore concentrate on production and need
not worry about distribution.
2. Risk Transfer:
- wholesaler places huge advance orders on manufacturer.
- they need not carry large stocks and can concentrate fully on
manufacturing goods as per order of wholesaler, therefore free
from bearing of risk of loss.
3. Concrete Relief:
- it can be used by manufacturer for disposal of his goods.
- wholesalers do not demand credit from manufacturer need not
grant credit to retailers.
- manufacturer enjoys financial relief and employs his capital
for more productive purposes (i.e.) expansion of his
manufacturing activities. 151

4. Expert Advice:
- he can secure first hand information of
consumer’s wants through retailer’s order.
- wholesaler’s order on manufacturer can act as an
indicator of trend of demand or of public taste.
5. Purchases large quantities from the manufacturer
and sells them to the retailers, or collects and
provides the information required for planning the
production ahead.
6. Maintain Stocks and assures equitable distribution.
7. Enables manufacturer in concentrating production.
8. Shoulders all the marketing functions .

Services to the Retailers:
1. No need to hold large stocks of varied goods:
- retailer has to maintain adequate stocks of varied
commodities.
- two difficulties in holding large stocks of each type of
commodity like i) dearth of capital, ii) lack of space.
- wholesaler gives a retailer definite assurance to refill his
stocks and retailer gets financial relief and carry his
business with less amount of capital.
2. Prompt Delivery of Goods:
- retailer may have wait for a long time for execution of
order or place advance on manufacturer in absence of
wholesaler.
- wholesaler supplies to retailers more quickly as goods are
in warehouse during his presence and retailer gets prompt
delivery of goods. 153Unit 4 – Marketing Mix

3. Benefits of Specialization:
- wholesaler performs marketing functions for retailer also.
- retailer carries varied stocks, therefore, he cannot claim
expert knowledge of market conditions for each article.
- wholesaler specializes in one line of goods and can advise
retailer when to buy, how much to buy.
4. Announcement of new products:
- wholesaler informs retailer about arrival of new goods.
- they kept in showroom and salesman create demand.
- wholesaler help retailer in efficient window display of new
products in shop.
5. Grant of Credit:
- wholesalers can credit to their permanent customers.

- retailer makes frequent purchases and cash settlement for each
purchase may lead to inconveniences and waste of time.
- wholesaler grant credit to retailers whose sales turnover is slow,
whose transactions are on credit and who required to maintain large
stocks at a time.
6. Supplies product as and when required.
7. Credit provided by the wholesalers is an attractive and helpful
activity from the viewpoint of retailers.
8. Keep the retailer informed of the new types of products that are
introduced into the market.
Wholesaler in Modern Marketing:
Reduced its importance due to
- large retail store.
- manufacturer’s desire to establish direct contacts with the
customers.
- development of transportation system.

Managing Distribution Channel:
Guidelines for channel management are –
1. Interdependence – each channel members depends on
other channel member to achieve desired goals.
- potential to influence the decisions of another.
- proper coordination and relationships.
2. Trust – trust or confidence in reliability and integrity of
channel members.
- it brings coordination of channel relationships.
3. Support – producers should support channel members in
all possible ways.
- funds provided to intermediaries for purposes like
brochures, mailings and training related to product.

4. Goal setting and planning – meet members formally to set
joint goals and develop plans for coming year.
- this develops a feel of partnership in minds of channel
intermediaries and make commitment to goals.
- it is essential to involve intermediaries in goal setting
process to facilitate smooth functioning of marketing
activities.
5. Monitoring Intermediary activities – sales personnel must
keep track of marketing and selling efforts of each
intermediary.
6. Motivating intermediary – motivation is achieved through
financial and non – financial rewards to give their best
performance.
7. Conflict resolution – it occurs when members disagree about
course of their relationship, due to pressures, policy changes,
etc. 157Unit 4 – Marketing Mix

LOGISTICS
Definition:
“Logistics Management is the process of planning,
implementing and controlling the efficient and effective
flow and storage of goods, services and related information
from point of origin to point of consumption for the purpose
of conforming to customer requirements.”
“It is the function that moves both tangible materials (raw
materials) and intangible materials (information) through
the operations to the customers (as finished goods).”
It is divided into i) Inbound logistics – all inputs, finished goods
and services used for internal operation of firm.
ii) Outbound logistics – physical distribution of product to
customers through defined transportation network.

Major activities involved in logistics management:
1. Transportation:
- it helps organization to exploit market opportunities to
greater extent.
The following factors are considered for selecting
transportation mode:
i) Costs.
ii) Dependability of the mode.
iii) Transit loss and damage.
iv) Reach of the mode.
v) Speed at which firm is able to reach the market.
2. Warehousing:
- organization may decide to own its own warehouse or can
go for third party warehouses. 159

Firm use to take following decisions –
i) Number of warehouses and their location.
ii) Level of customer service required.
iii) Cost of distribution.
iv) Technology to be deployed.
3. Inventory management:
- it impacts the competitive advantage of a firm.
- it used to maintain a balance between stock outs and
stockpiles.
4. Third party logistics:
- specialized in development and application of new and
innovative methods of packing, handling, transportation
and freight management.

Third party logistics gain importance for following reasons:
i) Due to core competencies they are able to render better
services.
ii) Internal system development costs and staffing costs.
iii) Customize the services to meet needs of clients.
iv) Helps in controlling costs and improved customer service.
Firm choose 3rd party logistics for following aspects –
i) Competency in approach, culture and attitude.
ii) Quality of services to be provided.
iii) Experience in a particular line.
iv) Performance track record.
v) Flexibility.
vi) Financial muscle and vii) Brand image.

PROMOTION
Meaning:
Promotion is the process of marketing
communication involving information, persuasion
and influence.
Promotion has three specific purposes –
a) it communicates marketing information to
consumers, users and resellers.
b) it persuades and convinces buyer and enters into
this consumer behaviour.
c) it act as powerful tools of competition providing
the cutting edge of its entire marketing programme.

Definition:
Promotion is defined as the coordinated self – initiated
efforts to establish channels of information and persuasion
to facilitate or acceptance of ideas or point of view”.
 Promotion has two basic purposes –
a) Persuasive communication.
b) Tool of competition.
- promotion is responsible for awakening and stimulating
consumer demand for your product.
- it can create and stimulate demand, capture demand from
rivals and maintain demand.
- promotion try to influences consumer attitudes, beliefs,
ways of living or life style, values and preferences towards
a company and its products and influence behaviour.

Nature of Promotion:
1. Informative process:
 All promotions are designed to inform about firm’s product to
target market.
 It provides information about availability, features and uses of
products to consumers.
2. Persuasive process:
 The purpose of promotion is to persuade people to buy.
 It is designed to stimulate purchase and to create a positive
image in order to influence long term buyer behaviour.
3. Motivating process:
 It aims at motivating distributors to provide more floor space to
company’s product and push them.
4. Brand switching:
 It aims at attracting customers using competitor’s brand. 164

5. Promotion is an investment:
 It is a short term effort to gain sales.
 It creates positive attitude towards an organization or product.
6. Promotion is directed towards a target group:
 It developed by company aims at a target group.
 It start with a clear view of target group and it is to be covered
and what type of message and media should be selected.
7. Promotion calls for economics:
 It involves huge amount of expenditure.
 It is suggested that promotional expenditure should be raised to
point where marginal return matches marginal cost.
8. It is an intelligence process:
 It involves a lot of activities that are to be handled carefully.
 It includes identifying target audiences, determining sales
promotion objectives, sales promotion budget, etc. 165

Unit 4 marketing mix

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Unit 4 marketing mix