MSM - UNIT 1.pdf

MR.T.SOMASUNDARAM
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
BENGALURU
21BBA2T433
MARKETING AND
SERVICES MANAGEMENT

UNIT 1: INTRODUCTION
Definition; Nature; Scope and
Importance of marketing; Approaches
to the study of marketing; Functions of
marketing, Market Segmentation:
Meaning; Importance; Bases of
Segmentation; Market Targeting;
Types of targeting; Market Positioning;
Strategies for positioning, Recent
trends in Marketing

Meaning:
‘Market’ is derived from the Latin word ‘Maratus’, which
means merchandise, wares, trade or place of business.
- it involves two operation, BUYING &
SELLING. (i.e.) ‘Exchange Activity’
Definition:
“A Market is an aggregate demand
of the potential buyers for a product /
service.”
- American Marketing Association
“ A Market is an area for potential exchanges.”
– Philip Kotler
WHAT IS MARKET?

Various definitions given also focus on these following aspects of
market:
Aggregate demand of potential buyers.
Area for potential exchanges.
Buyers and sellers exchange goods or services for a price.
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Buyers and Sellers are the two sides of the market
Meeting place for exchange of goods and services
Meeting of minds is more important than meeting
place.
Purchase consideration (Price) should be agreed
Existence of free competition to sell the product
or service
Exchange involves physical and legal transfer of
ownership of goods to the buyer

Definition:
“Marketing is concerned with the people and activities
involved in the flow of goods and services from producer to
consumer.”
“Marketing is the human activity directed at satisfying
human needs and wants through an exchange process.”
- Philip Kotler
“Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably.”
- Chartered Institute of Marketing
WHAT IS MARKETING?

7
Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

Factory
Existing
products
Selling
and
promoting
Profits through
sales volume
Starting
point
Focus Means Ends
The selling concept
Market Customer
needs
Integrated
marketing
Profits through
customer
satisfaction
The marketing concept
The selling and Marketing Concepts
Contrasted

DIFFERENCE BETWEEN SALES AND
MARKETING
Sales:
- trying to get the customer to want
what the company produces
Marketing:
- trying to get the company
produce what the customer wants

Definition:
“Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods, services to create exchanges that satisfy individual
and organizational goals.”
“Marketing management is the analysis, planning,
implementation and control of programme designed to
create, build and maintain beneficial exchanges and
relationships with target market for the purpose of achieving
organizational objectives.”
- Philip Kotler
WHAT IS MARKETING
MANAGEMENT?

Marketing Management Activities
M
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Designing the Marketing Plan
Setting Marketing Goals
Organizing the Marketing Functions
Implementing the Marketing Plan
Market Control
Marketing Research

Nature:
1. Marketing is consumer – oriented process:
- it is necessary that the organization must find out customer
needs and produce such goods to satisfy customer needs.
2. Market starts and ends with the customer (C2C):
- it is essential to understand what customer want and it is
done by collecting the information from customers
regarding their tastes, fashions, habit, etc.
3. Marketing is the guiding element of business:
- it is a function directed towards economic development of
country and raising standard of living of the people.
- it involves integration of various activities involved in
marketing process.
NATURE, SCOPE AND IMPORTANCE OF
MARKETING

4. Marketing is a system:
- it is dynamic process involving a set of interacting and
interrelated activities to reach customer and receives input
from environment and valuable information.
5. Marketing is a goal – oriented process:
- it is to generate considerable amount of profit through
customer satisfaction and increase in volume of sales, profit
and growth in three objectives of marketing.
6. Marketing is a process of exchange:
- goods and services are exchanges between buyers and
sellers.
7. Marketing is a process:
- it involves various functions to be perform, process should be
flexible, changes in the environment influences marketing
process and it should improved based on changes.

Importance:
 It helps in realization of the objectives for which the
organization has been set up. Effective marketing is essential for
survival and growth of organization.
 It helps the community to satisfy their economic and social
needs and raise standard of living.
 It helps in producing those products needed by customers and
community at large which helps in efficient and productive
utilization of resources.
 It helps in enterprise to adapt to changing conditions and
circumstances.
 It provides guidance to organization on innovations to adopt.
 It helps enterprise in achieving the maximum efficiency,
productivity and profitability with minimum effort and cost.
 It ensures the economic growth of enterprises which results in
growth and economic development of country.

CONCEPTS OF MARKETING
1. Needs, Wants and Demand:
*Needs – something you have to have (i.e.) physiological
needs.
(E.g.) Food and Water, Shelter and Clothing.
* Want – something you would like to have.
(E.g.) New car, Branded clothes, Big house, etc.
* Desire – strong wants to which person is dedicated.
* Demand – it is a desire supported by necessary purchasing
power.
2. Products and Services:
* Product - it is substance that is manufactured or refined for
sale.
* Services - intangible products consultancy, education,
medical treatment.

3. Value, Satisfaction and Quality:
a) Value – ratio between what benefits the customer gets and
what he spends.
- product choice is guided by value provided by product.
* Benefits of customers may be functional and emotional.
* Cost of production can be monetary, time and energy.
b) Satisfaction – customer’s perceived performance from a
product in relation to the expectations.
- customer dissatisfied if performance fails to match his
expectations.
c) Quality – it is perception of product excellence by
customers.
- quality level is to maintain and increase the level of
customer satisfaction.

4. Exchange, Transactions and relationships:
* Exchange – act of obtaining a desired object from someone
by offering something in return.
(E.g.) people can find food by hunting, gathering, beg for
food, take food from someone, offer money to buy.
* Transaction – a trade between two parties that involves at
least two things of value, time and place.
(E.g.) Party A gives money to Party B and gets product in
return. Ram pays Rs.6000 to buy a television.
* Relationship marketing – process of creating, maintaining
and enhancing strong, value relationships with customers.
* Market networking – it consists of company and all
supporting stakeholders, customers, employees, suppliers,
distributors, retailers, agencies and other.

5. Markets:
“Market is defined as set of all actual and potential buyers
of a product or service.”
* Market place – is a physical place such as store you shop
in.
- it is digital shopping online.
* Meta markets – some product whose purchase necessitates
the purchase of other products or services is called Meta
market.
( E.g.) new automobile market, where buying a new car calls
for the purchase of insurance, getting a loan from bank, etc.
6. Concept of Consumerism:
- it holds that consumers need to be protected from inferior
products in the markets.

BENEFITS OF MARKETING
A. Benefits to the Society:
1.Delivery of Standard of Living.
2. Employment and Income.
3. Equilibrium between Supply and Demand.
4. Creation of Utilities.
5. Economic Development.
B. Benefits to the Individual / Business Enterprises:
1. Revenue Earning.
2. Information for Decisions.
3. Management of Innovation and Change.

APPROACHES TO THE STUDY OF MARKETING
Five basic Approaches:
1. Commodity Approach:
- the flow of a certain commodity and its journey from original
producer right up to the final customer.
- this approach can locate centre of production, people engaged
in buying and selling, mode of transportation, problem of
financing it, etc.
- this use to find out difference in marketing producers,
services and problems.
2. Functional Approach:
- we concentrate our attention on specialized services or
functions or activities performed by marketers.
- it deals with functional activities like selling, buying, storage,
risk bearing, transport financing represents functional
approach.

3. Institutional Approach:
- it deals with marketing institutions or agencies like
wholesalers, retailers, transport undertaking, banks, insurance
companies, etc.
- they can participate in discharging their marketing
responsibilities during movement of distribution of goods.
4. Managerial or Decision Making approach:
- it combines certain features of the commodity, institutional
and functional approaches.
- it focus on decision making process and discussion of
different concepts, decision influencing factors, strategies and
techniques methods of problem solving.
5. Systems Approach:
- it is a set of interacting or independent groups co-ordinated
to form a unified and organized to achieve set of goals.

- this system approach model as i) Objective, ii) Inputs, iii)
Processor, iv) Outputs and v) Feedback.
- it provides best model for marketing activity and
emphasis on input to the system and outputs produced.
- it provides a good basis for logical and orderly analysis of
marketing activities.
- it provides a framework for control.
6. Legal Approach:
- it focuses its attention on legal transfer of ownership of
goods to the buyer.
- it deals with acts like Sales of Goods Act, Carrier Act,
Construct Act, etc.
- the regulated market act at state level provide legal
aspects of marketing.

7. Societal Approach:
- society identifies its own consumption needs and
satisfy it.
- consumer in the society project their desires,
producers produce products and sell them to
consumers.
- it projects the idea that “society meets its own
consumption needs.”
8. Economic Approach:
- it considers market forces like demand, supply,
price, etc.
- the market behaviour, types of markets etc. are
considered in this approach.

MODERN APPROACHES TO THE STUDY OF
MARKETING
1. Production Orientation:
- the focus of production orientation is to reduce costs through
mass production.
- it believes that “economies of scale” generated by mass
production will reduce costs and maximize profits.
- it concentrate on achieving high production efficiency, low
costs and mass distribution.
2. Product Orientation:
- it holds that consumers will favour those products that offer the
most quality. Performance or innovative features.
- companies focusing on concept concentrate on making
superior products and improving them.
- superiority and superior products alone will not sell products
unless they satisfy consumer wants and needs.

3. Sales Orientation:
- it aim at selling what they make rather than make what the
market wants.
- make the product and sell it to target market.
- it undertake an aggressive selling and promotion effect.
- it is effective selling and promotional tools to stimulate
more buying.
4. Market orientation:
- it puts the customer at the “heart” of business.
- it attempts to understand customer needs and wants and it
is done with the help of market research.
- market research and product development is an ongoing
process for a market orientation company.
- it achieve competitive advantage by providing products
which suits customer needs.

5. Social marketing Concept:
- it use marketing principles and techniques to influence
a target audience to voluntarily accept, reject, modify
for the benefit of individuals, groups or society.
- it is the use of commercial marketing principles and
techniques to improve welfare of people, physical,
social and economic environment.
- it is applied to promote good products or to make a
society avoid bad products and to promote society’s
well – being as a whole.
(E.g.) asking people not to smoke in public areas, to use
seat belts or promoting the people to follow speed limit.

FUNCTIONS OF MARKETING
Classification of Marketing Functions:
Many writers classified marketing functions into three
categories like Concentration, Dispersion and
Equalization.
“Equalization means, the activity which occur
between the process of concentration and dispersion.”
“Equalization consists of a department of supply
and demand on the basis of time, quantity and
quality.”
- Clark

Clark and Clark divided the marketing functions into three
divisions:
A) Functions of Exchange:
1. Buying:
- it helps the processes to procure goods of required quality
and quantity at satisfactory price.
- it consists of those activities involved in assembling goods
under single ownership.
- it is to bring goods where they are wanted for production
or resale or consumption.
It involves subsidiary functions like –
i) Function of planning – buyers must plan in order to
determine their needs and study their own markets to know
the quantity and quality of goods.

ii) The Contractual function – involves finding out the sources
of supply and this function is relevant in case of consumers.
iii) The function of Assembling – modern conditions of
production, marketing and consumption make assembling
important activity.
- goods produced at one places and assembled to serve the
needs of consumers.
iv) Negotiation and Contractual Function – the terms and
conditions of purchased are negotiated with seller.
2. Selling:
- it is essential in all steps of marketing. Its subsidiary
functions are:
i) The function of Product Planning – it is starting point of
marketing activity. Seller must offer a product that satisfies
the buyers and know what kind of goods should produces and
when to produce.

ii) The Contractual function – this refers to location
of buyers and maintaining contacts with them.
iii) The function of Demand creation – it includes all
efforts of sellers to induce buyers to purchase the
products.
- personal selling, advertising are undertaken by
seller to increase sales.
iv) The Negotiatory function – terms and conditions
related to quality, quantity, time and method of
shipment, payment method, etc.
v) The Contractual function – it involves entering
final agreement to sell goods including transfer of
title.

B) Functions of Physical Supply:
- it includes supply of goods from producers to consumers by
means of transportation and storage.
1. Transportation:
- it makes possible large scale production, specialization and
widens the market.
- it enables flow of goods from one place to places of
consumption.
- it reduced the cost and increase the speed of physical
distribution.
2. Storage:
- it is to hold the stocks of goods from time of their production.
- it must be stored for various reasons (i.e.) goods produced
seasonally may used throughout the year, goods used for short
period, manufacturer store raw material for ready supply and
goods are stored in hope of getting higher price in future.

C)Facilitating Function:
1. Financing:
- normal marketing needs vast financial resources for
investment in land, buildings, furniture, etc.
- large capital is necessary and means by which capital is
supplied called ‘Financing’.
- firms should have either huge amount of capital or they
must be able to borrow it.
2. Risk taking:
- there is risk of loss, fire, flood, theft, damage, bad debts,
etc.
- loss arises due to changes in conditions of supply and
demand and changes in value of money.
- some risks are insured, transferred and incurred against
which is significant for marketing process.

3. Market Information:
- it involves function of collection, communications and
interpretation of market information.
- it requires no. of consumers, purchasing power,
locations, brand preferences, etc.
- it involves activities like where to do business, when to
sell, where to change, change in price, direct sell or
middlemen, market conditions, etc.
- this information is adequate, up to date and reliable for
decision making process in marketing.
Computer – based marketing information offers benefits –
i) More timely information.
ii) More complete information.
iii) More reliable and thorough analysis of data.
iv) More thorough evaluation and consideration.

4. Standardization and Grading:
“Standardization refers to establishment of
standards of products.”
- it is a measure of designation of quantity and
consists list of specifications like size, colour,
appearance, shape, amount, etc.
- standard is followed in product, but it differs in
quality based on various in chemical contents,
flavour, size, etc.
- established standards for goods are commonly
called ‘Grades’.
- it is dividing the products of varying quality, size,
etc into conforming to certain standards.

Other functions of marketing:
1. Pricing:
- it is the function around which the supply and demand for
a product balances.
- it is the primary source of revenue which every firm tries
to maximize.
- firm has to maximize the sales by setting right price.
- pricing decision is not only important but also has to be
changing.
Some of the factors influences pricing decision are –
* Objectives of business, competition.
* Product and promotion policies.
* Pricing elasticity, conflicts of manufacturer and middlemen.

2. Branding:
“A brand is a term, name, symbol or design or
combination of themes, intended to identify the goods
or services of seller and to differentiate from
competitors.”
- it identifies the product for a buyer and gives seller a
chance to earn goodwill.
- it is the practice of giving a specified name to a
product.
- the organization build bright image of organization
around the brand.
- it offers protection to the consumer as it identifies the
firm behind the product.
- it enables the firm of assured control over the market.

3. Packing and Packaging:
“Packing may be defined as the general group of
activities in the planning of a product.”
- it indicates design of package and producing product
in attractive wrapper or container.
- it provides handling convenience, maintain freshness
and quality.
“Packaging is advertising on the shelf, a means of
attractive display in retailers shop.”
- is much more than packing and it is marketing
necessity.
- it gives explanation, assurance, confidence and
praise.
- it ensures ultimate success of product as commercial.

4. Sales Promotion:
- it is one of the facilitating functions of marketing and
considered as key element in marketing strategy.
Prospective buyers must aware of –
a) want of satisfying characteristics of products.
b) as well as availability of product.
- personal selling and advertising are important methods to
achieve objectives.
- branding, packaging, point of purchase, discount sale are
other methods for effective sales promotion.
5. Salesmanship:
“Salesmanship is the art of persuading people to purchase
goods which will give satisfaction with least time & effort.”
- it involves direct personal contact of seller or his
representative with buyer.

- he make direct contact with buyers and negotiate for sale
of goods and services.
- salesman gives advice to buyers and helps there to take
decisions, clear doubts, shows samples and demonstration
the product.
6. Advertising:
- it must be known to public through sales activities.
- it completes the task of selling goods and services.
- it is direct aid to salesman, because consumers informed
about the product before they bring them.
- it makes the final job of selling less difficult.
- it is beneficial to manufacturer, salesman, retailers,
consumers and to community in general.

MARKET SEGMENTATION
Meaning:
Segmentation or sub division of the market is based upon
the modern marketing concept (i.e.) market oriented
strategy and philosophy.
Segmentation gives special emphasis on demand side of the
market.
It implies bending of supply to the will of demand as far as
feasible and desirable.
Market segmentation is a method for achieving maximum
market response from limited marketing resources by
recognizing differences in various parts of market.
Market segmentation is strategy of ‘divide’ and ‘conquer’.

Market Segmentation enables the marketers to give better
attention to the selection of customers and offer an
appropriate marketing mix for each segment.
Each segment can be selected as a market target to be
reached with a distinct marketing mix.
Sellers used to identify those who are most likely to buy
their goods and services.
Customer orientation makes market segmentation as
important pillar of marketing concept and modern
marketing process.
The purpose of segmentation is to prioritize segments of
market to improve marketing profitability and to provide to
choose appropriate communication media and messages for
each segment.

Definition:
“Marketing Segmentation is the process of subdividing
a market into distinct groups of customer with similar
needs, such that subset of market (segment) can be selected
as target market and reached with distinct marketing mix.”
“It is the division of the total market into smaller,
relatively homogeneous group.”
“Market segmentation is a
marketing concept which divides
the complete market set up into
smaller subsets comprising of
consumers with a similar taste,
demand and preference.”

CHARACTERISTICS OF MARKET
SEGMENTATION
Characteristics:
Segments must be internally homogeneous. (Consumers
within the segment will be similar).
 Segments must be identifiable. (individuals are placed
within or outside each segment).
 Segments must be accessible. (reached by media or
distribution channels).
Segments must have an effective demand. (segment consists
of large group of consumers).

NEED FOR MARKET SEGMENTATION
Market segmentation helps the marketers to devise
appropriate marketing strategies and promotional
schemes according to the tastes of individuals of
particular market segments.
Market segmentation also gives the customers clear
view of what to buy and what not to buy.
Segmentation helps the
organization to know and
understand their customer better.

IMPORTANCE OF MARKET SEGMENTATION
It facilitates the matching of products with consumer needs
and satisfies them.
Firm can concentrate its efforts on most productive /
profitable segments of total market.
It facilitates the selection of the most suitable market.
It enables the marketer to utilize the available marketing
resources effectively.
Firm can avoid the markets which are unprofitable and
irrelevant for its marketing purpose and concentrate on
certain segments.
Advertising media can be more effective to reach the
segments.
It offers special benefits to small firms.

BENEFITS OF MARKET SEGMENTATION
Segmentation ensures higher customer satisfaction and improves
effectiveness of the marketing programme. It offers the
following specific benefits:
1. Marketers are in a better position to locate and compare market
opportunities.
2. Marketers can effectively formulate and implement marketing
programmes which will be tuned with demands of market.
3. Marketers can make fine adjustments in their products and
marketing communications.
4. Competitive strength & weakness can be assessed effectively
and avoid competition and use resources.
5. It leads to more effective utilization of marketing resources.

BASES OF MARKET SEGMENTATION
Bases for Market Segmentation
People – Oriented Approach
(Customer personal
characteristics)
Product – Oriented
Approach (Customer
response behaviour)
Geographic Characteristics
Demographic Characteristics
Socio - Economic
Characteristics
Psychographic
Characteristics
Use Pattern Benefits
Pattern
Brand
Loyalty Store
Patronage

1. People – Oriented Approach:
- it is also called customer personal characteristics
approach.
- it can classify the customer by many dimensions such as
geographic location, demography, socio-economic
characteristics and psychographic characteristics.
a) Geographic Location:
- it is the usual and popular basis for market
segmentation.
- difference between rural and urban
markets is great importance in Indian market.
- it divides based on local, urban, rural markets, regional or
state markets, national or international markets, climate,
weather & other atmospheric conditions.

- it divides the over – all market into homogenous groups
according to population locations.
- it shows the distinction between behaviour of city families
and suburban families.
* Urban people – better educated, higher incomes, greater
mobility, willing to buy new things.
* Rural people – less education, lower incomes, not
innovators.
- marketers are interested more on city and sub urban as it
has highly concentrated population in metropolitan areas.
- however, marketers are expected to have greater interest
on rural markets in country like India because 65% of
population is found in rural areas since 1980, which has
growing purchasing power.

b) Demographic characteristics:
- it is the study of population.
- it includes gender, age, marital
status, no. and age of children, religion,
nationality, income and occupation.
(i.e.) Age – teenage markets, old age, etc.
Gender – Male / Female.
Family Size – Single / Couple / Joint family, etc.
Income – higher / middle / lower.
Education – literates / illiterates.
Difference caste & religion.
Profession & occupation.

* Gender & Age – roles of men and women are considered
while segmenting markets.
- the recent changes in children, youngsters clearly
demonstrates the importance of age in market
segmentation. (E.g.) Mobile phones, gadgets, etc.
* Family life cycle – it is complex one and defined in terms of
age, marital status, age of housewife, present age of
children.
- buying behaviour changes according to the family life
cycle.
- it influence on consumer behaviour with reference to
purchase of durable as well as non – durable goods.
- market of products might be limited based on various
family life – cycles.

c) Socio – Economic Characteristics:
- it includes social class, religion, culture.
* Social Class – consumers may differ from one another in
terms of money, knowledge or skills.
- it describe the differences and it is a complex variable.
- it is relatively permanent homogeneous divisions in our
society.
- it indicates similar life styles, values, interests, etc.
- the three social classes are – upper class, middle class and
lower class in society.
* Religion, Race and Culture – it is also used as bases for
segmentation.
- it explains the regularities and diversities in human
behaviour.

d) Psychographic Characteristics:
- buyers are divided into different
groups based on personality, life style.
* Personality – it is the individual’s
consistent reactions to the world about him.
- it attempt to measure characteristics like dominant,
aggressive, objectivity, achievement, motivation, etc.
- this gives closer reason why people buy product.
* Life styles – it reflects overall manner in which person live
and spend time and money.
- it is interdisciplinary approach as it involves sociology,
culture, psychology and demography.
- it is measured how persons consumes, interests, opinions
and values.

Psychographic research is used frequently in the market
segmentation studies for four reason:
i) To find and explain markets and for target market
identification.
ii) To understand consumer behaviour as markets are
people, (E.g.) brand choice, company loyalty.
iii) To formulate marketing strategies for the firm. (E.g.)
positioning of new product, improving services,
promotion strategies, new distribution methods.
iv) To minimize risk of product failure by incorporating
psychographics into your product testing and R & D
programme.

2. Product – Oriented approach:
- it is also called customer response approach.
- customer response or buyer behaviour considered as relation
to product benefits, product usage, store patronage and brand
loyalty.
- it interested to know why consumers buy a certain product.
- it involves psychological factors like buying motives,
attitudes, perceptions and preferences.
a) Use pattern:
- use of total consumption of a family unit for a given product
act as a basis of segmentation.
- buyer may be classified as higher, medium, light users and
non – users.
- marketers concentrate on heavy users and segment the
market.

- usage information related with other characteristics like
age, income level, life cycle, education level, etc.
b) Benefits pattern:
- it gives emphasis on wants and desire of consumers.
- this is basic reason for existence of market segment.
- people buy a product to secure expected benefits.
- customer satisfaction directly depends on product benefits
(i.e.) economy, performance, style, durability, appearance,
taste, flavour, etc.
c) Brand / Store loyalty:
- it enables marketer to tailor the promotional content and
product appeal to retain loyal customers, to attract new
customers or convert non - loyal into loyal customers.
- it is not easy to measure brand loyalty, because some
customers buy a product due to habit or low price.

MARKET TARGETING
Definition:
“A set of buyers sharing
common needs or characteristics
company decides to serve.”
- a product focusing on a specific target market contrasts
sharply with one, following the market strategy of mass
marketing.
- it Involves evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
- a target market is a group of people toward whom a firm
markets its goods, services or ideas with a strategy designed
to satisfy their specific needs and preferences.

1. The better a company is at identifying their potential
consumers; the more successful they will be in delivering
products and services that are in demand.
2. Your target consumers are those who are most likely to
buy from you.
3. Focusing on a target market makes it easier to develop
products people want.
WHY TARGET MARKET
IMPORTANT?

HOW TO TARGET MARKET?
1. Evaluating and Selecting the Market Segments:
2. Segment Size and Growth:
- analyze sales, growth rates and expected
profitability for various segments.
3. Segment structural attractiveness:
- consider effects of
competitors, availability of
substitute products and power
of buyers and suppliers.

4. Company objectives and Resources:
- company skills & resources relative to the
segment.
- look for competitive advantage.
5. Selecting target market segments:
- the firm must decide which and how many
segments it will target.
- it consists of a set of buyers who share common
needs or characteristics that the company decides to
serve.

STEPS FOR MARKET TARGETING
Step 1: Identify and profile distinct group of potential
buyers who differ in their needs and preferences:
- it is going to target the particular group based on
demographic, economic, social, etc.
Step 2: Select the one or more market segment to target
audiences:
- it includes internal & external environment with adoption
of 4P’s based on potential buyers.
Step 3: For each target segment, establish and communicate
key distinctive benefit by proper positioning of the
product:
- it enables the firm to create a positive image, gain
competitive advantage and place the brand in customers

There are four main targeting strategies which takes
advantage to generate interest with customers. They are:
1. Undifferentiated Marketing (or) Mass Marketing:
 It occurs when the business views the target market as a
homogenous group.
 It reaches largest audience and exposing as many people to
the product as possible.
2. Differentiated Marketing (or) Multi-segment targeting:
 It involves the company providing separate offerings to
different segments of its audience.
 It allows companies to create products and offers to a
unique need from their target segment.
 It builds a consumer base loyal to the brand.
TYPES OF TARGET MARKET ING

3. Concentrated Marketing (or) Niche Marketing:
 It targets only one of a few very specific segments of the
target market.
 It requires demand from that small market to be robust and
consistent.
4. Customized Marketing:
 This is popular in B2B markets and refers to targeting
individual consumers.
 This types is designed and developed to suit each
customer’s specific needs and boosting a high return for the
company.
 It usually deal in high-value products or services, where
there is a customer they need to serve individual.

Other Types:
There are other types of target marketing which takes
advantage to generate interest with customers. They are:
1. Age Target Marketing:
- targeting a product to a particular group and to
concentrate marketing efforts and generate product interest
to the group.
2. Income – sensitive Marketing:
- it seeks to target small products to consumers of particular
income and economic status.
- it shapes the prices charge for products.
- this allows more consumers in target market group to
afford the products.

3. Gender – Specific Marketing:
- it shapes and advertising campaign toward one gender or
specific group within that gender.
- it influence types of images, colors and language to
attract target gender or gender group.
4. Geographic Target Marketing:
- across the country have different products needs.
- targeting a market to meet the geographic demands of
consumers and it boost company’s importance and image in
customer minds.
- seasonal marketing is the strategy that works to take
advantage of shifting customer minds due to changes in
environment conditions.

5. Target marketing based on demography:
* Age * Gender * Race
* Income * Religion * Occupation
* Family Size * Geographic location
6. Target marketing based on Psychographic segmentation:
a) Consumer activities. (sports person, professional, etc).
b) Interests. (interested in collecting stamps, antiques, etc).
c) Opinions. (opinion from people, other sources).
7. Target marketing based on products usage:
a) Use on Occasions. (cakes, food items during season).
b) Use on situations. (usage of umbrella during rainy).
c) Usage type. (heavy user, light users).

8. Target marketing based on Brand preference:
a) Brand loyal customers. (customers stick to brand and don’t
keep changing).
b) Brand aware customers. (customers needs to keep on
changing brand at all times).
c) Unaware customers. (some brand which is unaware among
customers).
9. Target marketing based on Decision process:
- decision process is completely different and might take
some time.
- planning needs to be in place so that it can capture target
market.
- positioning and future strategy should be spot to keep
growing over time.

MARKET POSITIONING
Definition:
“The process by which marketers try
to create an image or identity in the
minds of their target market for its product, brand or
organization.”
- creating an image of product in the minds of target
customers.
- positioning is not what company physically does to the
product – it is what company does to the target customer’s
mind.
- tool that help marketers place products in a market by
graphically illustrating consumer’s perceptions of competing
products within an industry.

A product can be positioned in market based on two
main platforms:
1. Consumer.
2. Competitor.
* When the positioning is on the
basis of CONSUMER, the
campaigns and messages are always
targeted to the consumer himself.
* When its based on COMPETITION, these campaigns
are targeted towards competing with other players in
the market.

Product positioning:
- refers to the way in which the product or service is
presented to the market.
 The factors in positioning the products could be:
performance, quality, packaging, price, characteristics,
and more.
(E.g.) Toyota is positioned on economy.
 Mercedes and Cadillac on luxury.
 Porsche and BMW on performance.
 Volvo positioned on safety.
 In all the above four stated examples, the product is car.
But each company is positioning their product in a
different way.

Some other products and how they are positioned in the
market:-
 Dettol Soap: - Antiseptic soap.
 Maggie noodles: - Instant food.
 Dove: - Beauty soap.
 Pepsi: - soft drink for fun.
 Diet Pepsi: - less sugar.
 Air India Express: - low price.
Objective:
i) Product positioning is the process that marketers use to
determine how to communicate their product’s to their
target customers based on customer needs.

STEPS IN MARKET POSITIONING
Step 1: Know your target audience well.
Step 2: Identify the product features.
Step 3: Unique selling propositions.
Step 4: Know your
competitors.
Step 5: Ways to promote
brands.
Step 6: Maintain the
position of the brand.

1. By Product Attributes and Benefits
Examples……
Positioned on its durability and
style for its cycle.
Strategy consists in associating an object with a
product characteristic or customer benefit. (E.g.)
ENO, Toothpaste,

2. BY PRICE AND QUALITY
Example:
Certain product categories where high price is
automatically associated with quality, or where
low price is often considered to be synonymous
with inferior quality.

3. BY USE AND APPLICATION
Example….
Used during cold
and Flu…..
Associating the product with a specific use.

4. BY PRODUCT CLASS
Example….
Airlines companies has
to compete with other
modes of transport.
Some brands need to compete against
products of similar class.

CD Players must compete with
cassette Industry as well as with
the I- pods and the latest
Gadgets who serve similar
purposes.

5. BY PRODUCT USER
Example….
AXE targets men
Specifically the Youth.
Strategy of associating the product with a
particular type or class of user. (Male, Female,
Kids, etc)

6. BY COMPETITOR
Example….
Nimbooz…..
Ekdum Asli
Indian
Ekdum
Ghar
Jaisa
Positioning strategy consists in making consumers
think that your brand is better than, or as good as
the competitors

7. BY CULTURAL SYMBOLS
Example….
Maharajah of Air India has
become a world figure
It lays Emphasis on the royal
Indian Comfort
Positioning strategy consist in identifying
something that is very meaningful to people.

PARACHUTE BRAND – S T P PROCESS

RECENT TRENDS IN MARKETING
 M – Marketing
 Online Marketing
 Social Media network marketing
Green Marketing

M – MARKETING (MOBILE
MARKETING)
Introduction:
Mobile marketing is an innovative approach to increase
returns at low cost to the organization and also enhance and
differentiate its brand.
Organization use the power of SMS communications to tap
potential customers.
SMS refers to Short Message Services and involves the
delivery of text messages to mobile handsets.
Organization using new media within their traditional
marketing communications strategies, which help to acquire
and retain customers.
SMS marketing is named for its wider reach, low cost and
high retention. 85

Definition:
“Mobile marketing is the interactive multichannel
promotion of products or services for mobile phones and
devices, smart phones and networks. Mobile marketing
channels are diverse and include technology, trade shows or
billboards”.
“Mobile marketing is promotional activity designed
for delivery to cell phones, smart phones and other handheld
devices, usually as a component of a multi-channel
campaign.
86

Using SMS to advertise:
- if company has new product, service, offer, etc then it can
be effectively target customer by sending SMS.
- latest mobile phone allow to send single message to
multiple recipients. (i.e.) maximum no. around 10.
- SMS marketing companies available that set up SMS
marketing campaign for company.
87
Attractiveness:
• Send text messages to targeted
individuals at any time.
• Interactive and Fast.
• Great for last minute offers.
• Low production costs.
• High penetration of mobile
ownership.
Benefits:
• 24 / 7.
• Reachable.
• Tactical.
• Speed.

ONLINE MARKETING
Introduction:
 Online Marketing is the marketing of products or services
over the Internet & it ties together creative and technical
aspects of the Internet, including design, development,
advertising and sale.
 Online marketing is used by companies selling goods and
services directly to consumers as well as those who
operate on a business to business model.
 It includes a wider range of marketing elements than
traditional business marketing due to extra channels
available on internet.

Definition:
“Online marketing is a set of powerful tools and
methodologies used for promoting products and services
through the internet.”
“Online marketing is also known as Internet
marketing, web marketing, digital marketing and search
engine marketing (SEM).”
Online marketing can deliver benefits such as –
 Growth in potential.
 Reduced expenses.
 Elegant communications.
 Better control.
 Improved customer service.
 Competitive advantage.

Online Marketing
Strategies:
1. Pull Marketing
strategies:
 Websites and blogs.
 Company’s social
media profiles.
 Long term success.
 TV ads, online banner
ads and social media.
 Online banner ads
and radio.
2. Push Marketing
strategies:
 E mail campaign.
 Social media profiles.
 Promotional material
directly to end users
through email or files to
generate demand.
 Create an email database
of potential customers.
 Online digital advertising
channels to reach
consumers.

Online Marketing Methods and Channels:
1. E mail Marketing: - use of email.
2. Pay per click Marketing: - search engine like Google,
certain ad will appear & need to pay attention every time
when ad is clicked on.
3. Viral Marketing: - social networks to produce an increase
in brand awareness & word-of-mouth delivered or
enhanced by the network effects of the Internet.
4. Digital Marketing: - is the process of building and
maintaining customer relationships through online
activities to facilitate the exchange of ideas, products and
services that satisfy the goals of both parties”.

Components of Digital marketing:
 Website design (user experience).
 Search engine optimization.
 Display advertising. * Affiliate marketing.
 Content marketing. * Online reputation
management.
Benefits of Digital marketing:
 Puts the customer in demand.
 Provides convenience and increases satisfaction.
 Drives brand loyalty.
 Reduces the selling cycle and cost of sales.
 Builds your brand.
 Provides targeted results.
 It is measurable and cost effective.

5. Virtual Marketing: - is the process of conducting
marketing activities geographically via electronic means,
without any face-to-face contact of buyers and sellers”.
Advantages of Virtual marketing:
 Access to all markets.
 Reduction in setup cost.
 Many products and services from a single stop.
 Quick service.
 Building relationship.
 Enhanced productivity of sales people.
 Enables the marketer adjust to market conditions quickly.
 Consumer can get more for less.
 Transparency.
 Accuracy of information.

Advantages of Online
marketing:
 One to one approach.
 Cater to specific interests.
 Different content by choice.
 Geo – marketing.
 Relatively inexpensive.
 Global business
 Measuring statistics is easy.
 Accountability.
 Low cost.
 Flexibility & Convenience.
 Multiple options.
Disadvantages of Online
marketing:
 Illegal or unethical practices.
 Physical demonstration and
needs to be tangible.
 Transparency.
 Cost of hardware.

SOCIAL MEDIA MARKETING
Introduction:
 Social Media is a vital element for the online business.
 It is an art of producing traffic to site for generating
business through online social group.
 It help to build important business contact and to run a
reputed business on the internet.
 Social media marketing is used as a branding tool and can
increase conversion, sales tracking, page views and add
exposure.
 It is simple and low cost way if increasing sale and to bring
traffic to the website.
 This will bring many people to the site and help for link
building to get good ranking in search engines.

Definition:
“Social media is a medium and the medium is only a vehicle
that amplified social behaviour.”
- the medium is an instrument on communication like a
newspaper or a radio, so social media would be a social
instrument of communication.
Social media (Web 2.0) technologies (Twitter, Facebook,
YouTube, LinkedIn) consistently changes all the time and
social media marketing strategy should never start with
technology part of it.
The POST method for Social media marketing stands for –
 People – target audience, their demographics and interests.
 Objectives – want to accomplish with social media marketing.
 Strategy – things different after launch social media
marketing.
 Technology – way of using social media channels.

Advantages of Social media marketing:
 Better targeting.
 High return on investment.
 Increased visibility and content promotion.
 Helps with PR and ability to go viral.
 Fun way to do business.
 Expedites online brand development.
 Cost effective (time and effort).
 Market research (what are your customers talking about?)
 Create relationships with your customers.
 Campaigns has the ability to drive huge amounts of
traffic.
 Supports traditional and other digital marketing
campaigns.

Disadvantages:
 Wrong strategy can hurt your reputation.
 More time consuming.
 Interaction is needed at each location point.
 No short term ROI.
 Risk of negative comments.
 Negative influence on worker productivity.
 Everything is public.
 Commit resources.
 Ineffective use = brand credibility loss.

GREEN MARKETING
Introduction:
 Green Marketing consists of all activities designed to
generate and facilitate any exchanges intended to satisfy
human needs or wants.
 Satisfaction of those needs and wants occurs with
minimal detrimental impact on the natural
environment.
 Marketing of environmentally safe products.
 Minimize negative effects on the physical environment.
 Ecological concerns products.
 It is the process of selling products or services based on
their environmental benefits.

Definition:
“Green Marketing is defined as the marketing of
products that are presumed to be environmentally
safe.”
According to Environmental definition, “the efforts by
organizations to produce, promote, package and
reclaim products in a manner that is sensitive or
responsive to ecological concerns.”
It can be incorporated by firm in following ways –
Product modification.
Changes to the production process.
Packaging changes.
Modifying advertising.

Why Green Marketing?
Opportunities or competitive advantage.
Corporate Social Responsibility (CSR).
Government pressure.
Competitive pressure.
Cost or profit issues.
Need of Green Marketing:
On our planet sources are limited and human needs
(wants) unlimited.
 Green marketing is important for the firms to utilize
the limited resources satisfying the consumer needs as
well as achieving the organization’s selling objectives.

4s of Green Marketing:
Safety of product.
Satisfaction of customer.
Social acceptability of a product.
Sustainability of the product.
Green Aspects in Services:
1. Financial Services:
 Use of electronic printing media.
 Use of technology to cut short the usage of paper.
 High accessibility rate to reduce the mile coverage by users
and executives.
 Use of air conditions with high star – rating and reduce
power consumption.
 Green planting spread within the working space.

2. Transportation Services:
 Wide spread public transport system.
 Heavy investment to avoid use of diesel.
 Using recyclable products.
 Electronic vehicles for rent.
3. Medical Services:
 Donation camps and Rural areas visits.
 Free check – up & Free medication.
 Integration of all services under one roof.
 Paper covers instead of plastic.
4. Educational Institutions:
 Use of electronic media to avoid paper and other stationary.
 Make students to participate in social welfare activities.

 Maintain greenery in the campus.
 Discourage the use of personal vehicles.
 Use power efficient equipment.
5. Retail Services:
 Discourage plastic bags.
 Wax paper printing.
 Online trading.
 Help raise funds for needs.
 Moderate lighting.
 Spread maximum products.
 Promote green products.

Problems with Green Marketing:
 Reacting to competitive pressures can cause all to make the
same mistakes.
 To reduce costs or increase profits may not force firms to
address the important issue of environmental degradation.
Solution of problems with Green Marketing:
 Environmentally responsible organizations should attempt
to minimize their waste.
 Organization policy.
 Employee Awareness Program.
 Effective Communication.
 Constantly refine the product & processes.
 Back up from top level.

Benefits of Green Marketing:
 Improved environmental quality & customer satisfaction.
 Consumer value positioning.
 Efficiency and cost effectiveness.
 Health and Safety.
 Gaining and retaining customers.
 Innovation in products and operations.
 Development.

INDIA’S TOP ECO-FRIENDLY
COMPANIES

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