Marketing Functions

1. MARKETING FUNCTION
MODULE - 3

3. • In order for the marketing bridge to work
correctly -- providing consumers with
opportunities to purchase the products and
services they need -- the marketing process
must accomplish nine important functions

4. • 4p's of marketing - product Price Place promotion
• 7P's - Product Promotion Place, People
Process Physical Environment
• Buying - people have the the opportunity to buy
products that they want.
• Selling - producers function within a free market to sell
products to consumers.
• Financing banks and other financial institutions provide
money for the production and marketing of products.
• Storage - products must be stored and protect ed until
they are needed. This function is especially important
for perishable products such as fruits and vegetables.

5. • Transportation products must be physically relocated to the
locations where consumers can buy them. This is a very important
function. Transportation includes rail road, ship, airplane, truck, and
telecommunications for non-tangible products such as market
information
• Processing processing involves turning a raw product, like wheat,
into something The consumer can use -- for example, bread.
• Market Information Information from around the world about
market conditions, weather, conditions price movements, and
political changes, can affect the marketing process. Market
information is provided by all forms of telecommunication, such as
telecommunication television, the internet, and phone.
• Grading and Standardizing Many products are graded in order to
conform to previously determined standards of quality. For
example, when you purchase US No. 1 Potatoes, you know you are
buying the best potatoes on the market

6. Industry Analysis
• Industry analysis is a market evaluation tool that businesses and
companies use to comprehend and analyze the degree of
competition in a certain industry. It helps you to understand the
market position of the industry. Like the external factors impacting
the industry, credit system, technological changes and how shaping
the future, other competitive developing industries, competition
level within the industry, and statistics of supply and demand
• Industry analysis helps an entrepreneur or a startup company to
comprehend the position of a business relevant to the
other competitive businesses in the industry
• it helps you to recognize the upcoming threats and opportunities
and how you can handle them with your strong points. The only
way to survive in today’s business environment is to distinguish
yourself from the competitors within the industry

7. Types of Industry Analysis
1.Competitive Force Model (Porter’s Five Forces) :
It analyzes the five forces impacting the industry. They are as follows;
• The intensity of Industry Rivals. The businesses operating in the same
industry and their market share makes them industry rivals
• The threat of Potential Entrants. The entrance of the new business in the
industry makes the business environment competitive.
• Bargaining Power of Supplier. If a business depends on the supplies of
suppliers, then they would have a significant influence over your
businesses
• Bargaining Power of Buyer. Here the customers have more negotiating
power over the business. They would demand discounts, better quality,
and economical price
• Threats of Substitute Products. It’s when competitive businesses are
offering similar substitute products of the other industry. substitute’s
products are of two types; same product features with the higher price
and same product features with lower price.

10. 2. SWOT Analysis
•

11. 3. PESTLE Analysis

12. EXPLAIN WITH EXAMPLE

13. 10 Benefits of industry analysis
1. The industry analysis report is beneficialas it helps to assess the profitabilityof a
particular industry
2. It is generallyable to forecast the potentialbehaviorof the competitors
3. Helps to recognize and identify strategies that will prove its worth
4. Industry analysisis a tool to developa competitive strategy that will act as the
best defense against competitiveforces
5. Helps to highlightthe strength and weakness of an organization withits analysis
6. Industry analysispinpointsthe area where strategic changes will yield best
payoffs
7. It emphasizes on the area where the industry trend shows threats or even
opportunities.
8. Industry analysishelps the entrepreneur to know about the position of his
company relativeto the competitors in the industry.
9. Can easily forecast demand and supply and consequentlyabout the financial
gains
10. Industry analysishelps to discover untappedopportunitiesin the industry.

14. 4. Competitor Analysis
• Analyzing organization’s competitors helps an
organization to discover its weaknesses, to identify
opportunities for and threats to the organization from
the industrial environment.
• Competitor analysis is a driver of an organization’s
strategy and effects on how firms act or react in their
sectors.
• The organization does a competitor analysis to
measure/assess its standing amongst the competitors.
• Competitor analysis begins with identifying present as
well as potential competitors

17. • Michael Porter in Porter’s Five Forces
Model has assumed that the competitive
environment within an industrydepends on
five forces:
• Threat of new potential entrants,
• Threat of substitute product/services,
• bargaining power of suppliers,
• bargaining power of buyers,
• Rivalry among current competitors.

18. • The main objectives of doing competitor analysis can be
summarized as follows
• To study the market;
• To predict and forecast organization’s demand and supply;
• To formulate strategy;
• To increase the market share;
• To study the market trend and pattern;
• To develop strategy for organizational growth;
• When the organization is planning for the diversification and
expansion plan;
• To study forthcoming trends in the industry;
• Understanding the current strategy strengths and weaknesses of a
competitor can suggest opportunities and threats that will merit a
response;
• Insight into future competitor strategies may help in predicting
upcoming threats and opportunities.

20. Marketing Research for the New Venture
• Market research is an organized effort to gather
information about target markets or customers. It is a
very important component of business strategy.
• Market research is considered to be indispensable in
order to start a new business venture. As an
entrepreneur,it is a prerequisite to hiring market
research companies to conduct proper research on the
existing marketing scenarios in order to launch a new
service of the product.
• Marketing researchers gather and analyze the
information related to market such as :

21. • Who will buy the product or service?
• What is the size of the potential Market for
the product or service?
• What price should be charged for the product
or service?
• How the product or service should be
promoted in most effective manner?

22. Importance of Market research
Identifying problem and opportunities in the market
• Formulating market strategies
• Determining consumer needs and wants
• For effective communication mix
• For sales forecasting
• To revitalize brands
• Determine export potentials
• Managerial decision-making
• To facilitate smooth introduction of new products
• Better Customer Management.
• Increased Sales.
• Minimize loss in your business

23. Types of Market research
1) Primary Research:
• In this research, new data is gathered directly by the
company or their researchers using different techniques
such as: 1. Interviews 2. Surveys 3. Questionnaire 4. Focus
groups
2) Secondary research
• In this type of research, you collect and analyse secondary
data that has already been published (books, statistical
reports, top market research magazines, etc.).
• There are two methods for collecting this data. They are: 1.
Quantitative methods:-This method employs the statistical
analysis and require a large sample size. 2. Qualitative
methods:-This method is used to get an understanding of
reasons, opinions and motivations.

24. Steps for Market research for the new
venture
• 1) Identification of problem:- • First and foremost should
have a clear understanding about the problem as well the
reason for which the research is undertaken. • The senior
most level of management along with the middle level
management should engage and work together to find the
problem and work on the same.
• 2) Design an appropriate market research plan:- • In this
step, the team of market of marketers and researchers
work together to decide upon the exact details they need
by developing a fool-proof plan to secure it in shortest
possible time and in the best possible way such as
interviewing of the focus group, drafting the perfect market
research questionnaire or by determining a sample
research plan.

25. 3) Data collection:-
• This is the most crucial among all stages of market research services.
• Chances of commitment of mistakes at this stage cannot be ruled
out. Say for instance, in a survey method of research of data
collection, if the respondents are not available, then it becomes
difficult to record the data.
• This might lead to further problems as the decisions would be taken
on the basis of the collected data.
4) Implementation of the market research plan:-
• Once assimilation of data takes place, the market research
department gets down to the work of analyzing and studying the
data collected.
• On the basis of the findings, the next stage of implementation of
information gathered takes place.
• This is the last but most important stage of all stages because if the
management fails to meet the desired results then the need to
revise the process of the market research would arise

26. Forms of business organization:
• The term "business organization" refers to
how a business is structured. It refers to a
commercial or industrialenterprise and the
people who constitute it.

27. TYPES OF BUSINESS ORGANISATIONS
• Sole Proprietorship
• Joint Hindu Family Business
• Partnership Firm
• Joint Stock Company 1.) Private Limited 2.)
Public Limited
• Co-operative Society

28. Sole Proprietorship
• SOLE PROPRIETERSHIPWhen the ownership and
management of a business are in control of one
individual the form of business is called sole
proprietorship.
• CHARACTERISTICS
• The business enterprise is owned by one single
individual (i.e. both profit and risk belong to him)
• Owner is the Manager
• Owner is the only source of Capital
• The proprietor and business enterprise are same in the
eyes of the law.

30. • ADVANTAGES OF SOLE PROPREITORSHIP :
• • Easy formation • Better Control (Prompt
decision making and Flexibility in Operations)
• Subject to fewer regulations • Not subject to
corporate income tax • Ownership of all
profits
• DISADVANTAGES OF SOLE PROPREITORSHIP •
Owner has unlimited liability • Difficult to
raise capital • Business has a limited life •
Difficult to do business beyond a certain size

31. JOINT HINDU FAMILY BUSINESS
• Comes into existence as per the Hindu Inheritance Act
of India • This form of business found only in India • All
members of the Hindu Undivided Family(HUF) own the
business jointly • The affairs of the business are
managed by head of the family called “Karta”. All other
members are called “Co-parceners”
• • Membership is restricted only to members of the
Joint family. No outsider can become the member •
Karta has unlimited liability while all other members
have limited liability • The share of each member
keeps on fluctuating •

32. PARTNERSHIP FIRM
• A Partnership consists of two or more individuals in
business together
CHARACTERISITCS OF PARTNERSHIP
• Minimum 2 number of partners and maximum 20
partners
• The relation between the partners is created in the
form of a contract. Written contract is called
“Partnership Deed”
• The firm means partners, the partners mean the firm •
The profit is divided in any as ratio as agreed
• No partner can sell/transfer his interest in the firm to
anyone without the consent of other partners

34. • ADVANTAGESOF PARTNERSHIP • Easy
Formation • Larger Resources • Sharing Of
Risk • Better Management and Flexibility of
Operation • No corporate income tax •
Subject to fewer regulations as compared to
companies
• DISADVANTAGESOF PARTNERSHIPS •
Unlimited Liability • Limited Life • Difficult to
raise capital • Chances of Dispute

35. JOINT STOCK COMPANY
A joint stockcompany is a voluntary association of people
who contribute money to carry on business. a company or
association consisting of individuals organized to conducta
business for gain and having a joint stock of capital
represented by shares owned individually by the members
and transferable without the consent of the group.
CHARACTERISTICS OF A CORPORATION
• It is considered as a separate legal entity
• It comes into formation after all formalities under the Indian
Companies Act 1956 are completed
• Management and ownership is completely separate
• Capital is raised through shares which are transferable

38. ADVANTAGES OF A CORPORATION
• Limited liability of the shareholders/promoter
• Can easily raise capital
• Have unlimited life
• Ease of transfer of ownership
DISADVANTAGES OF A CORPORATION
• Formation is not easy
• Excessive Government Regulation
• Subject to Corporate Tax and Dividend Tax
(Double Taxation)
• Delay in Policy Decisions
• Control by a Group

39. TWO TYPES OF CORPORATIONS
1. PRIVATE COMPANY
• Closely held by a few people
• Minimum 2 and maximum 50 shareholders
• Stocks cannot be traded on exchanges and private equity
cannot be raised
• Less regulations as compared to Public Companies
2. PUBLIC COMPANY
• Stocks are held by a large number of people
• Minimum 7 shareholders and no limit for maximum
• Can be listed on stock exchange and can go public
• Have to follow many laws with regards to the board
composition and AGM.

40. CO-OPERATIVE SOCIETY
• CO-OPERATIVE SOCIETY It is a voluntary association of
people or business to achieve a an economic social and
cultural needs and aspiration through a jointly owned
and democratically – controlled enterprise.
CHARECTERISTICS OF CO-OPERATIVE
• Voluntary association
• Minimum membership requirement is 10 and there is
no maximum limit
• Registration of Co-operative is must under the “Co-
operative Societies Act” is a must. After the
registration it enjoys certain privileges of a Joint Stock
Company

42. ADVANTAGESOF CO-OPERATIVE
• Easy Formation
• Limited Liability
• Stability
• Democratic Management
• State Assistance
DISADVANTAGESOF A CO-OPERATIVE
• Possibility of conflict
• Long decision making process
• Not enough capital