Principles of Management and Entrepreneurship lecture notes i to v units

INDIAN INSTITUTE OF HANDLOOM TECHNOLOGY.
Diploma Handloom and Textile Technology
Third year
Course Code : 5.5.
Course title : Principles of Management and Entrepreneurship
Faculty member : R Paranthaman. M.Tech., MBA.
Designation : Assistant Professor
27-08-2020 R.PARANTHAMAN, M.TECH, MBA, ASST. PROF., IIHT, SALEM. 1

Unit 1
1. History of Handloom Industry
2. Socio Economic importance of hand looms
3. Organizational structure of Handloom Industry
4. Primary Handloom Weavers’ Cooperative Society, Establishment,
objectives and functions

History of Handloom Industry
• The handloom sector plays a very important role in the country’s economy.
• The handloom sector is the largest unorganized economic activity next to agriculture
• Indian subcontinent was home for cotton crop and the art of dyeing and weaving were existence some 5000
years ago
• In 327 B.C.the Great Alexander carried back several Indian painted and printed cotton cloth and fine silk
fabrics.
• In Mughal emperor (Muslim rule 16-18th century) very fine muslins were produced at Dacca.
• Indian handloom goods-calicoes were bartered of silver for exchange to spices.
• There was some more evidence that speak of the golden history of Indian handloom.
• The Vedic literature like the Rigveda, the Mahabharata, the Ramayana and Buddhist era scripts have
mentioned Indian weaving styles and woolen carpets.

• John Kay invented and patented the Flying Shuttle in 1733.
• He increased the speed of handloom weaving.
• The beginning of 1800s the first power loom.
• In 1818 spinning mill was established in Calcutta and 1954 in Bombay.

• The History of Indian Handloom Industry is given bellow:
• 1904: In this year the first idea of starting handloom weavers co-operatives Act by British India
Government in the Madras province, a grant Rs 5 lakhs was given.
• 1905: Inidan National Congress launched Swadeshi Movement by M.K.Gandhi
• 1925: Indian textile mills started producing sari, it is very big set-back for traditional handloom.
• 1927: The GOI levied duty on mill-spun yarn consumed by handloom Industry.
• 1928: The Royal Commission on Agriculture visited India to study that the survival the village handloom
industry and weavers.
• 1929-30:Great depression in textile industry ,which affected handloom production.
• 1932: Madras Provisional Co-operative Societies Act was passed.

• 1932-4: An annual subsidy of Rs.5 Lack under Subvention Scheme was announced by the government for
improving the handloom weavers’ cooperative.
• 1935: The first apex weavers co-operative society (presently CO-OPTEX) was started in the Madras.
• 1939: A very big problem faced by handloom due to II World War.
• 1941: The British India government set 3 member fact finding committee (FFC) / Thomas committee was
appointed for finding out the problems and suggesting measures for improvement of life and work of Handloom
weavers. They recommended a) AIHB, b) spinning mills in co-operative sector and c) few cloth production
reservation to handlooms.
• 1945: All India Handloom Board (AIHB) come into existence for financial help, raw material, marketing and
training.
• 1947: For varied resons the handloom Board was wound up.

• 1947: For varied resons the handloom Board was wound up.
• 1948: GOI adopted Industrial policy for protection of Cottage industries and Cotton Control Order to reserve certain items
of cloth like saris and dhotis to handlooms
• 1949: A Handloom Development Fund was created with Rs.10 Lakhs.
• 1950: The Textile Commissioner reserved few more items to handlooms, dhotis with border width exceeding 0.25 inches
with coloured yarn and jari, lungies with check pattern,bed sheets / bed covers, all sorts of dusters, table cloth & napkins,
course plain weave cloth,saris with border exceeding 0.25 inches and towels on honeycomb weave.
• 1952: All India handloom board was re-constituted with comprehensive functions as non- statutory body to advice central
Govt on handloom issues.
• 1953: GOI encourage sale of weavers’ cooperative handloom cloth with rebate. Co-operative spinning mills was set-up to
supply yarn to handlooms.
• 1955: All India Handloom Fabric Marketing Co-operative Society Ltd (AIHFMCSL) was sponsored by government of
India to promote interest and international marketing of handloom fabrics based on marketing research.

• 1957: The Reserve Bank of India started giving financial assistance to the sector through state co-operative
banks ( Weavers’ Finance Scheme).
• 1956:WSC- design centers & IIHT -3 year diploma course with stipend established to give technical service
and education to handloom weavers.
• 1962: HHEC - Handicrafts & Handlooms Export Corporation-export of the handloom and handicraft products
• 1965:HEPC - Handloom Export Promotion Council – export of handloom products
• 1974: Shiva Raman Committee - Nodal committee also set which recommended a) loan other material to the
weavers through societies, b) setting up of Handloom Development Corporations at state level, c) setting up of
Development Commissioner for Handlooms
• 1975: PM Indira Gandhi encouraged handloom industry through 20-point economic program

• 1976: Organisation of Development Commissioner for Handlooms under MOT and National Cooperative Development
Corporation (NCDC) was established.
• 1978: Handloom Cooperative Training program through WSC for skill upgradation .GOI came with Textile Policy 1978
reformulate controlled cloth scheme
• 1981: National Bank for Agriculture and rural Development (NABAD) scheme cash credit to Apex cooperative societies
for yarn, cloth procurement and marketing through state cooperative banks under re-finance at bank rate.
• 1983: National Handloom Development Corporation (NHDC) was set to supply raw materials at fair price .
• 1983:National Handloom Design Center and National Handloom Museum to collect old specimens of textiles make notes
on techniques of traditional handlooms for study and research.
• 1984: The Association of Corporations and Apex Societies of Handlooms (ACASH) was set to buy and supply Govt
Departments and Public sector undertaking under Tender System and to conduct mini handloom expos periodically.
• 1985: GOI New Textile Policy 22 textile items are reserved for handlooms and Handloom Enforcement Wing was set to
monitor this scheme.

• 1985-86: Workshed-cum-Housing scheme started.
• 1987: GOI launched the Decentralised Training of Weavers scheme.
• 1991-92: Group Insurance Scheme and Health Package Scheme for welfare of handloom weavers.
• 1992: Research & Development scheme for handloom was launched. Mill Gate Price Scheme was introduced
to supply yarn at spinning mills gate price through NHDC
• 1994:Hank yarn price at subsidy scheme for the benefit of handloom weavers.
• 1996: Handloom products identified as ‘Thrust Area’ to export of handloom fabric, made-ups, garments.

• 2000: Deen Dayal Hathkaragha Protshan Yojana (DDHPY) scheme introduced in the New Textile Policy for
benefit of weavers / self help groups / apex societies to purchase and modify looma,design support, install
CAD& CAM systems and etc.
• 2001: National Centre for Textile Design was set.
• 2003: Bunker Bima Yojana was introduced with tie-up with LIC of India.
• 2006: Mahatma Gandhi Bunker Bima Yojana insurance scheme for weavers, Handloom Mark and Technology
Up-gradation Fund scheme introduced.

Socio Economic importance of Handlooms
• Social and economic factors, such as income, education, employment, community safety, and
social supports can significantly affect how well and how long we live. These factors affect our ability
to make healthy choices, afford medical care and housing, manage stress, and more.
• The social and economic opportunities we have, such as good schools, stable jobs, and strong social networks
are foundational to achieving long and healthy lives. For example, employment provides income that shapes
choices about housing, education, child care, food, medical care, and more. In contrast, unemployment limits
these choices and the ability to accumulate savings and assets that can help cushion in times of economic
distress.
• Social and economic factors are not commonly considered when it comes to health, yet strategies to improve
these factors can have an even greater impact on health over time than those traditionally associated with health
improvement, such as strategies to improve health behaviors.
• Across the nation, there are meaningful differences in social and economic opportunities for residents in
communities that have been cut off from investments or have experienced discrimination. These gaps
disproportionately affect people of color – especially children and youth.

Social and Economic Factors
• In the Social & Economic Factors area of the County Health Rankings we look at:
 Education, showing who in a community has graduated high school or attended some college in addition to
the percentage of teens and young adults ages 16-19 who are neither working nor in school.
 Employment, detailing unemployment statistics.
 Income, looking at children in poverty and income inequality.
 Family & Social Support, providing information on children in single-parent households and access to social
opportunities.
 Community Safety, measuring violent crime and injury deaths.

Importance of Handloom
 A hallmark of Indian culture: Almost every state of India has a unique handloom product to offer such as Phulkar from
Punjab, Chanderi from Madhya Pradesh, Ikats from Andhra Pradesh, Daccai from West Bengal, Brocade from Benares
 Global Recognition: Indian handloom is rich in variety and is appreciated all over the world over for its craftsmanship
and intricacy of designs and thus holds huge potential in global textile market
 Employment Provider: The handloom industry is one of the largest unorganized sectors of economic activity in India
providing employment to 43.31 lakh weavers from rural and semi-urban areas
 Rural Centred Industry: According to the Fourth All India Handloom Census 2019-20, 31.45 lakh households are
engaged in handloom, weaving and allied activities, out of which 87% are in rural areas and the remaining 13% are in
urban areas
 Large Female Workforce: Most of the weavers are women and people from economically disadvantaged groups and
77% of the adult weavers are women.
 Easy to Start as it entails minimal use of capital and power
 Aligned with Sustainable Development due to environment friendly production processes
 Flexibility to innovate due to the specialty in the weave of the textiles in each region that is developed based on
location, climate and cultural influences.
 Livelihoods to weaker Sections of Society: Nearly 68% of the handloom workers belong to SC, ST & OBC groups

• The term socioeconomic refers to the interaction between the social and economic habits of a group of
people
 The Indian handloom industry is one of the oldest and largest cottage industries in the country.
 The industry is a hallmark of India’s centuries old traditions and culture with huge variety of designs,
printing techniques, weaving art and materials renowned globally.
 Almost every state of India has something unique to offer in terms of handloom products. Phulkar from
Punjab, Chanderi from Madhya Pradesh, Ikats from Andhra Pradesh, Tie and Die from Rajasthan and
Gujarat, Daccai from West Bengal, Brocade from Banares and Jacquard from Uttar Pradesh are some of the
examples of the intricate work done by Indian artisans and weavers which are appreciated globally.

 The operations of the industry are generally household based, wherein various members of the family come
together and contribute to the production process.
 These activities are spread across the length and breadth of the country and involve transfer of skills from
one generation to the next.
 The sector is largely unorganised, and the workers are mainly from the economically and socially weaker
sections of the society, who weave for their household needs and also contribute to the production in the
textile sector.
 The sector is one of the largest unorganized economic activity in the country providing employment directly
and indirectly to over 43.31 lakh weavers.
 It is an integral part of the livelihood of many people in the rural areas of the country.

• Employment opportunities
 Distribution of Handloom Worker Households by Type As per the Third Handloom Census, nearly 27.83
lakh handloom households are engaged in weaving and allied activities, out of which 87% are in rural areas
and the remaining 13% are in urban areas.
 Most of the handloom (82%) working households are weaver households which means at least one member
of every such household is engaged in weaving activities.

• Distribution of Handloom Worker Households by State
 The state wise distribution of the households of handloom workers is the North-Eastern states, which
together account for 16.83 lakh (60.5%) handloom households.
 Assam alone accounts for 12.41 lakh (44.6%) handloom households, whereas Manipur and Tripura have
1.79 lakh (6.4%) and 1.21 lakh (4.3%) such households, respectively.
 Other states with comparatively large handloom household concentrations are: West Bengal: 4.07 lakh
(14.6%), Andhra Pradesh: 1.77 lakh (6.4%), Tamil Nadu: 1.89 lakh (6.8%) and Uttar Pradesh: 1.11 lakh
(4.0%)

• Distribution of Handloom workers by Gender
 There are 43.31 lakh handloom workers in the country of which 89% account for adult (18 years and above)
workers. Among the adult workers, most of the workers are females (77%) and the number of male workers
(23%) is relatively smaller.
 Also, most of the female workers are located in rural areas while a relatively higher proportion of male
workers are located in the urban areas.

• Exports market
 The exports of Indian handloom products are valued at US$ 353.9 million6 in 2017-18 making India the
second largest exporter of such products in the world.

SWOT analysis of handloom industry
• In order to boost this industry, the Office of the Development Commissioner for
Handlooms has been implementing various schemes for the promotion and development
of the handloom sector and providing assistance to the handloom weavers in a variety of
ways.
• The Administrative staff college of India (ASCI) did SWOT analysis of handloom
industry some decades back:
• Strength: unmatched products, Govt support, technology, innovative design source,
• Weakness: inadequate raw materials supply, weak market, higher cost of production, low
standardization, resistance for change from weavers,
• Opportunities: market potential, institutional finance, Govt schemes / policies and
subsidies, eco friendly products, cooperative approach, publicity, training and R&D.
• Threats: control of master weavers & middlemen, competition from power-looms and
mills, non availability of regular work, low wages, closer of cooperative spinning mills,
ignorance, illiteracy, diseases, malfunctioning of cooperatives / officials.

Organizational structure of Handloom Industry

Organizational chart of DC handlooms
• DCHL- Development Commissioner for Handlooms (Shri Sanjay Rastogi)
• ADC- Additional Development Commissioner for Handlooms
• SKS- Shri Santosh Kumar Singh
• NV – Shri Nikhil Varma
• CEO(RJ) – Chief Enforcement Officer (Shri Rajiv Jain)
• DS(IS) – Deputy Secretary (Shri Inderjeet Sethi)
• DDC – Deputy Development Commissioner
• KCS – Shri K C Shakdwipee
• DLM- Shri Devi Lal Meena
• DD (SS)- Deputy Director (Shri Siddharth Singh)
• Sr. AO (AK)- Senior Accounts Officer (Shri Ashok Kumar)
• AD–OL (D) – Assistant Director –Official Language (Shri Sanjay Kumar )
• AD- Assistant Director
• AS- Smt. Anita Sawhney, PRM-Shri Pappu Ram Meena, OP-Shri Om Prakash, PK-Pramod Kumar, KKS-Kuldip Kumar Sharma
• SPB- Shri Surender Prasad Bhatt, JSA-Shri Jasbeer Singh Arora, VS- Smt. Visalakshi Sivanandan AK- Shri Alok Kumar, AKVShri Ashok Kumar Verma, DS-
Shri Davinder Sharma.

Organizational structure of Handloom Industry
Board of Directors
President
Secretory
Quality control
officer
Inspectors
Darners
Helpers
Marketing officer
Sales assistant
Sales outlet
Designer Production officer
Weaving master
Supervisor
Weavers
Warper winder
Helpers
Dyeing master
Dyers
Helpers
Stenographer Store keeper Accounts officer
Accounts assistant

Primary Handloom Weavers’ Cooperative Society
• Society Establishment & Management
Many weavers are joining together and start a primary co-operative society
and members are called share holders. Their contribution towards the society is
known as share capital. All the members are having equal rights. Among members
few are elected as their representatives to carry out the official work. All the
representatives constitute Board of Directors. The PWCS should have a President, a
Secretary and Committee Members. It can employ Manager and other supporting
staff for day to day functioning. The Primary Societies are required to register as per
state Governments‘ Co-operative Societies Act and it is expected to function as the
Bye-Laws framed as per government norms. Normally capital is raised from the
weaver members and they can borrow funds from co-operative banks and state and
central governments.

Primary co-operative societies are classified as following:
1) Societies having loom of their own: Societies will be having their own looms. The
members are asked to carry out weaving. All the materials which are necessary for
production are supplied by the society to the working place.
2) Societies having no looms but only weavers as members: Societies are supplying the
needed raw materials, technical knowledge etc. to the weaver members. The members
carry out the work at their own places for the weaving, they are paid by the society.
3) Society engaged in production alone: Societies are engaged in production alone.
They are producing goods for the other societies or for Apex societies.
4) Societies engaged in both in production and sales: Societies are concentrating both
in production and sales. They have their own designer and marketing department with
showrooms and sales outlets.

• The Functions of the Society are:
(a) To Promote the Handloom Industry in the state extending both
inward and outward linkage like production and sale of handloom
cloth produced from their weavers.
(b) To improve the socio-economic conditions of the weavers and to
extend the marketing support of their products in general

The Objectives of the Society are:
1) To raise funds for carrying out the business.
2) To purchase raw materials and weaving appliances including spares and sell them to members
3) To Make advances to member societies along with supply yarn for production and sale of the their
fabrics to meet wages.
4) To let / hire improved weaving appliances
5) To purchase or receive finished products of its member in societies on commission basis and sell
the same
6) To establish and run sales units for exhibition and stock go-down for sales of their products of
member-societies within and outside the area of operation.
7) To hold or own or establish or hire processing units to undertake and provide processing including
dyeing, mercerising, printing and furnishing etc, for all types of yarn and cloth, to the member
societies and to other institutions or individuals.
8) To advise and render assistance to member-societies in preparation of production programmes,
design development, product diversification and such qualitative improvement to be in tune with
the consumer tastes and market demand and easily marketable.
9) To establish Spinning Mills for supply of yarn for handloom industry.
10) To develop, assist and supervise the work of affiliated weavers Co-operative Societies

11) To hold periodical meeting of handloom weavers and for taking necessary action on the
resolution passed at such conferences
12) To publish, stock, distribute and sell leaflets, pamphlets and books dealing with
handloom industry and allied subjects.
13) To own and maintain lorries or other vehicles for the purpose of transporting its own
goods and those of member societies or use them in any other way beneficial to the
Society.
14) To purpose or own land, building, factories and other immovable properties and assets
15) To receive contributions from members.
16) To do such other acts as may help the development of the handloom industry or improve
the economic conditions of the weavers.
17) To borrow fund or similar financing institutions on behalf of the members in order to
improve the socio-economic condition of the weaver members of the Society.
18) To arrange for the training of weavers sponsored by the member-societies in improved
methods of weaving and latest techniques and also for the training of its own employees
in sales techniques, accountancy and business administration etc.

UNIT – II
1. Government of India’s Schemes for upliftment of HandloomWeavers
2. Functions of WSCs and IIHTs
3. Cluster Development initiative for Handloom Industry
4. Scopes of Handloom Exports
5. Importance of Product diversification and Value addition in Handloom products

1. Government of India’s Schemes for upliftment of Handloom Weavers
• The Ministry of Textiles announced the following five Schemes in the
11th Five year plan by merging the different Schemes of 10th Five
year plan to enhance production, productivity and efficiency of the
handloom sector and to enhance the income and socio-economic status
of the weavers.
a. Integrated Handlooms Development Scheme
b. Mill Gate Price Scheme
c. Handloom Weavers Comprehensive Welfare Scheme
d. Marketing and Export Promotion Scheme
e. Diversified Handloom Development Scheme

a. Integrated Handlooms Development Scheme
The objective of this scheme is
• To form Handloom Weavers’ Groups.
• To assist weavers for becoming self Sustainable.
• To cover weavers within and outside the Co-op. fold.
• To upgrade the skills of the Handloom Weavers.
• To provide suitable work place to the weavers.
• To orient Marketing, Designing and managing the production.
• To facilitate credit from Banks.
• To encourage Co-operative actions of weavers.
• To intervene each cluster with specific holistic and flexible manner.

a.Integrated Handlooms Development Scheme

b. Mill Gate Price Subsidy Scheme
• The main raw material used by this sector is yarn, which is being produced by
spinning mills. The yarn trade was controlled by the traders and most of the
handloom weavers were dependent on the traders for their yarn requirement.
• The objective of this scheme is to make available all types of yarn at Mill Gate
Price to the eligible handloom weavers so as to facilitate regular supply of basic
raw materials to the handloom sector and help utilize the full employment potential
of the sector. The scheme was introduced in 1992-93. National Level Apex Body
was set up in the name of National Handloom Development Corporation (NHDC)
to implement the scheme. NHDC is to make available to weavers throughout the
country, yarn of the appropriate and required quality, through a well-ordered
system.

• The yarn manufactured in a particular place is based on the quality of cotton
available in and around that place, while the yarn consumed by the weavers in a
particular area is based on the consumption pattern prevailing in that
area. Therefore, in most of the cases, weavers have to depend on the yarn
produced in other areas. The transportation of yarn from one place to another,
increases the cost of yarn considerably putting the weavers at a disadvantageous
position.
• The scheme benefits all handloom organizations of National / State / Regional /
Primary level and NGOs. All types of yarn required for production of handloom
items are covered under the scheme. NHDC arrange the yarn from the mills at mill
gate price to the go down of the agencies.
b. Mill Gate Price Subsidy Scheme

C. Handloom Weavers Welfare Scheme
• This Scheme Comprises of two parts namely
i. Health Insurance Scheme.
ii. Mahatma Gandhi Bunkar Bima Yojana Schemes (MGBBY)

• i) Health Insurance Scheme (HIS)
• To protect and to improve the health condition of handloom weavers, Health Insurance Scheme has been introduced by the
Government from 2005-2006 through ICICI Lombard General Insurance Company Ltd.
• Under this scheme, 4 members of weaver’s family are eligible to get medical assistance upto Rs.15,000/- annually of which the
provision for OPD is Rs.7,500/-.
• The Health Insurance Scheme aims at financially enabling the weaver community to access the best of healthcare facilities in the
country.
• The scheme is to cover not only the weaver but his wife and two children, to cover all pre-existing diseases as well as new diseases
and keeping substantial provision for OPD.
• The ancillary Handloom workers like those engaged in warping, winding, dyeing, printing, finishing, sizing,
• Jacquard etc. are also eligible to be covered. The scheme was introduced in Nov, 2005.
The annual premium

b) Mahatma Gandhi Bunkar Bima Yojana Schemes (MGBBY)
• The Insurance Scheme called “Mahatma Gandhi Bunkar Bima Yojana” is
being implemented by the state Governments for weavers from the year
2004-2005 onwards with the assistance of Government of India in
collaboration with Life Insurance Corporation of India.
• The basic objective of the ‘Mahatama Gandhi Bunkar Bima Yojana’ is to
provide enhanced insurance cover to the handloom weavers in the case
of natural as well as accidental death and in cases of total or partial
disability.
• The eligibility to avail this scheme is weaver’s should have minimum
50% earning from handloom weaving, the group of 18 and 59 years and
belonging to state handloom development corp, apex, co-operative
society or eligibility certificate from state directorate of handlooms.
• It covers Natural as well as Accidental death. The benefit and premium
details are

• Under Mahatma Gandhi Bunkar Bima Yojana, the total premium to be
paid to Life Insurance Corporation per weaver/per annum is Rs.330/-,
of which Rs.150/- is contributed by Government of India, Rs.100/- is
contributed by the Life Insurance Corporation of India and the
weaver’s contribution of Rs.80/- is paid by the State Government.

d. Marketing And Export Promotion Scheme
This Scheme comprises of two parts :
i. Market Promotion Scheme.
ii. Export Promotion Scheme.

i) Market Promotion Scheme:
• Marketing Promotion Programme includes Exhibitions, Fairs and crafts melas, Setting
up of Marketing Complexes and Urban Haats, Publicity and Awareness and Brand
Development to promote the marketing of handlooms in the country and to improve the
levels of awareness amongst handloom weavers and the general public in the interest of
overall development of the handloom sector. Given the current importance of brand
building as a necessary ingredient of any long term strategy for augmentation of sales in
domestic and international markets, the scheme also aimed at brand promotion of Indian
handlooms through Handloom Mark.

i) Market Promotion Scheme:
The objective of this scheme
i. To assist in the sale of handloom products by organising of exhibitions at National Level, Regional Level,
State Level and District Level.
ii. to provide facilities to the consumer to purchase genuine handloom products.
iii. for promoting awareness among consumers about the latest designs and varieties of fabrics
iv. to provide marketing infrastructural support to Handloom Agencies in major cities and towns.
v. to provide group merchandising under one roof by making available handloom products of different States
at one place .
vi. to foster awareness of brand identity and promote the development of a brand of handlooms.
vii. to promote awareness of technological developments and advances among weavers for improving quality
and productivity of handloom sector.
viii. to market in National Handloom Expo, Special Expo, District Level Events, Craft Mela, Urban Hatts,
setting up of marketing complex, Publicity and Awareness.

ii) Export Promotion Scheme:
• This scheme is to identify and assist suitable Apex / Primary Handloom Co-op. Societies and
Corporation in developing the products that are Export worthy by engaging of a professional
designer for design development, up-gradation of skill, engaging of a professional Marketing
Consultant. The Scheme covered development of exportable products, publicity of the products
and their international marketing by way of participation in international exhibitions and buyer-
seller meets. It helps in International Market penetration of handloom products. Handloom Mark
adds to enhancing the economic value of products and provides a focus around the product and
attractive the consumers in India and abroad.

• The Handloom Export Promotion Council, registered under the Companies Act, 1956, was constituted in
1965 by the Government of India as the nodal agency for export promotion efforts related to the cotton
handloom textiles sector. The Handloom Export Promotion Council provides to its members a wide range of
services which consists of
• - Publicity abroad for Indian handloom products.
• - Facilitating product diversification and adaptation to meet modern market requirements.
• - Organisation of business missions / buyer seller meets and participation in trade fairs abroad.
• - Consultancy and guidance services for handloom exporters.
• - Liaison with the GOI on all procedural and policy matters relevant to the handloom export trade.
• - Dealing with trade complaints pertaining to handloom exports.
• Components of Handloom Export Promotion
• i. Export Project
• ii. International Fairs & Exhibitions
• iii. Setting up of Design Studios
• iv. Miscellaneous Promotional Events/Activities
ii) Export Promotion Scheme:

5. The Diversified Handloom Development Scheme
• The Objective of the Scheme to provides technological up-gradation through a
variety of programmes, which cover skill upgradation of weavers, development
of design, and product development to meet the market demand and improve
the productivity and increase earnings of the handloom weavers.

The main objectives of this Scheme are:
(i) To strengthen the activities of Weavers’ Service Centres (WSCs) in design development and help weavers
through exhibitions and seminars,
(ii) To improve the infrastructure of Indian Institute of Handloom Technology (IIHTs) to enhance standards of
performance with modern facilities, equipment and use of upgraded technology,
(iii) To set up new WSCs and IIHTs to meet the technically trained manpower requirements of the handloom
industry and generate new employment in the sector,
(iv) To meet the training requirements of personnel in techniques of production, market trend analysis, design
development with use of CAD system etc.,
(v) To run the activities of National Centre for Textile Design for promoting the traditional and contemporary
designs to enable Handloom to be responsive to the rapidly changing market demand,
(vi) To issue Identity cards to the handloom weavers, ensure genuine weavers get the benefits of the various
handloom related schemes.

• The scheme consists of the following components

1) The Co-operative weavers’ savings and security scheme
2) Grievance Redressal Committee
3)Scholarship under Shiksha Sahayog Yojana
4) Stipend to IIHT students
5) Handlooms (Reservation of Articles for production) Act.1985
6) Registration of handloom products under GEOGRAPHICAL
INDICATION of Goods Act 1999

1) The Co-operative weavers’ savings and security scheme
• Tamil Nadu State is the forerunner to introduce the Co-operative Handloom Weavers’ Savings and
• Security Scheme from the Year 1975 for encouraging the savings habit among the weavers and
ensure the safety of their future. The Government of India also participated in the scheme from the
year 1985-1986 to 2006-2007 and contributed their share. Under this scheme, a weaver member in
the Weavers Co-operative Society contributes 8 paise per rupee of wage earned and the State
Government is contributing 4 paise per rupee of wage as its share. Accordingly, the total
subscription of 12 paise is being deposited in the Government account upon which, the State
Government allows 9.5% interest. Out of the 9.5% interest, 6.5% is being credited to the weaver
member’s account and the balance 3% is being utilized for implementation of the welfare schemes
such as Weavers’ Old Age Pension Scheme and Weavers’ Family Pension Scheme.

2) Grievance Redressal Committee
• The Government of India have constituted an Independent Grievance Redressal
Committee to receive and consider individual or group complaints in any one of
the following types of grievances against the insurer :-
• - Any partial or total repudiation or rejection of claims by the insurance company
• - Delay in settlement of claims
• - Non-issuance of or delay in issuance of any Insurance Document/Health
Insurance Card During the year 2011-2012, Grievance Redressal Committee
meetings were conducted to redress the grievances of the weavers.

3)Scholarship under Shiksha Sahayog Yojana
• Under this scheme, scholarship will be paid to the children of
handloom weavers (2 children) studying in Std 9th to 12th at
Rs.1200/- per annum, (Rs.600/- in two instalments) per child for a
maximum period of four years or till they complete 12th Std. The
weavers’ already enrolled under Mahatma Gandhi Bunkar Bima
Yojana are covered in this scheme.

4) Stipend to IIHT students
• While selecting candidates to the 3 year Diploma in Handloom and Textile
Technology course conducted by the Indian Institute of Handloom
Technology, priority will be given to the wards of the weavers. The state
Government have been granting stipend to the students admitted in the course
as detailed below:-
• Year GOI share/ per month State Govt. share/per month Total
(Amount in Rs)
I year 200 200 400
II year 225 225 450
III year 250 250 500

5) Handlooms (Reservation of Articles for production) Act.1985
• To protect the handloom weavers / industry from the onslaught / ambush of powerlooms, the Central
Government have enacted the Handlooms (Reservation of Articles for Production) Act, 1985 and have
reserved the following 11 items for exclusive production by handlooms:
• (1) Saree
• (2) Dhoty
• (3) Towel / Gamcha and Angavastram
• 4) Lungi
• (5) Chaddar Mekhala / Phanek
• (6) Jamakkalam / Durry or Durret
• (7)Dress Material
• (8) Barrack Blanket, Kambal or Kamblies
• (9) Shawl, Loi, Muffler, Pankhi .
• (10) Woollen Tweed (11) Khes / Bedsheet / Bedcover/
• Counterpane / Furnishing (including tapestry, upholstry)
• A separate Enforcement Wing headed by Deputy Director (Enforcement) Headquarters and circle level offices
at to propagate the Handlooms Reservation Act among the public and also to protect the handloom industry.

6) Registration of handloom products under GEOGRAPHICAL
INDICATION of Goods Act 1999
• Registration of specialised goods produced in a particular region can be made
under the Geographical Indication of Goods Act 1999. By this Act, producers and
customers are protected against misuse of these geographical indications. The
registration of goods under the Geographical Indication Act not only promotes
exports of such goods but also protects their usage and sale in other countries
which falls under the Trade Related Intellectual Property Rights (TRIPS)
Agreement of World Trade Organisation (WTO). So far, Kancheepuram Silk
Sarees, Bhavani Jamakkalam, Arni Silk and Kovai Kora Cotton Sarees have been
registered by the Department of Handlooms and Textiles under this Act.
•

2. FUNCTIONS OF WSCS & IIHTS
• Weavers Service Centre (WSC)
• The Govt. of India decided and set design centre’s in 1956.
• The activities of these design centre’s were expanded to the development of handlooms.
• These center’s were redesigned as Weavers Service Centre.
• These centres have been helping the handloom weavers in various aspects like design development,
design adoption and technical inputs in the form of research in looms and etc.
• WSC have collected samples of various designs and weaving techniques throughout India in order to
preserve the heritage of handlooms.
• WSC is functioning under Development Commissioner of Handlooms.
• Presently there are 25 WSC in various parts of our country.
• WSC engaged in the following fields.
• 1) Design section 2) Weaving section 3) Dyeing section 4) Library and documentation section
• 5) Photographic section

• 1)Design section
• Each weavers service centre is comprised of a design section with well experienced and skilled
artisans for developing the designs & design patterns for weaving on looms. The artisans have to develop the
ancient design and produce new patterns for the screen printing purpose. WSC is to provide weavers necessary
production techniques in handloom designs. The CAD facility helps in preparing designs with the aid of
computers.
•
• 2)Weaving section
• Skilled weavers from traditional weaving are supervised by qualified handloom textile people.
Fabrics in new designs are produced using different yarns. This section also undertakes simple improvements
in looms.
• 3) Dyeing & printing section
• The dyeing and printing section have experienced dyeing demonstrators and chemists. These
laboratories bring out shade cards for silk, cotton and wool. These cards give details like method and
application for each shade. These shade cards also provide information on the equipments required in dyeing
and testing methods. Printing section carries out experiments in preparation of basic materials for screen
printing.

• 4.Library and Documentation Section
Weaver Service Centres have a library and documentation sections with journals
and books related to the ancient handloom designs, production techniques of ancient
designs of handlooms. They preserve all the useful matter or documentations of the
handlooms. A collection of cloth samples, photographs, colour slides books and
periodicals’ dealing with various aspects of textile industry is available for reference. .
• 5)Photographic section
WSC have full pledged photographic sections at Mumbai, Chennai, Kolkata, Delhi
and Guwahati. Photographic section has all the ancient design photographs and production
technique which are preserved in photographic sections. These sections have valuable and
informative section in the form of photographs of rare pieces of traditional designs,
costumes and fabric samples. Different production techniques like weaving, dyeing and
printing are preserved in photographs.

The functions of Weavers Service Centre
• 1) It organizes short term training program and short term courses for the weaver members and
students so that they can learn new technology of handloom.
• 2) It also do Research and Development in various handloom related products so that they can
make easy technology and equipments for the workers or weavers members.
• 3) It also organize mobile training program. The members of the WSC visit different parts of
handloom running area and provide knowledge and new technical information to the weavers.
• 4) They also provide latest information and knowledge about equipment and to motivate them to
use these as they can increase their profits and earning.
• 5) Weavers Service Centres have their own designers which provides to weaver and upload new
designs in internet so that the weavers can shift themselves from the old design to the new design.
• 6) Weavers Service Centre also provides door to door knowledge to the weavers about the new
government policies and scheme so that they can earn better wages from these policies and schemes.

Indian Institute of Handloom Technology (IIHT)
• In olden days, Indian Handloom Industry was not having trained technical
personnel and was solely dependent on the expertise and knowledge passed on
from generation to generation for its survival and development.
• It was in this context that the Government of India decided to set up Indian
Institutes of Handloom Technology with the prime objective of providing
technical personnel trained in new methods and latest development in the field of
Handloom to enable the Handloom Industry to face the challenges from other
sector of the Textile Industry.
• Present global scenario requires competitiveness in terms of price and quality.
Indian Institutes of Handloom Technology are in continuous process to provide
leadership in this regard.

• Realizing the need for modernization of the handloom sector in the world of severe competition
facing it from the more and better organized power loom and mill sectors Government of India took
up the cause of research and development in handlooms by setting up the Indian Institute of
Handloom Technology, initially at Varanasi and Salem and later at Guwahati, Jodhpur and Bargarh.
• The sole purpose of these Institutes is to provide the technical manpower to the handloom and
textile industry. Diploma in Handloom & Technology a three years course (earlier known as Diploma
in Handloom Technology) has been devised to provide the technical manpower in the forms of
Technocrats to cater the needs of Handloom & Textile Industries in the disciplines like Weaving,
Processing, Designing, Quality Control, Marketing, Merchandising, Exports, Planning & Production,
Technical Sales, etc.

Central Sector Institutes
1) Indian Institute of Handloom Technology, Varanasi, Uttar Pradesh.(1956)
2) Indian Institute of Handloom Technology, Salem, Tamil Nadu. (1960)
3) Indian Institute of Handloom Technology, Guwahati, Assam (1982)
4) Indian Institute of Handloom Technology, Jodhpur, Rajasthan (1993)
5) Indian Institute of Handloom Technology, Bargarh, Odisa. (2008).
6) Indian Institute of Handloom Technology, Fulliya, West bengal
State Sector Institutes
1) SPKM Indian Institute of Handloom Technology, Venkatagiri, Andhra Pradesh.
2) Indian Institute of Handloom Technology, Gadag, Karnataka. (KHIT)
3) Indian Institute of Handloom Technology, Champa, Chhattisgarh.
4) Indian Institute of Handloom Technology, Kannur, Kerala.(2011)

• The following are objectives of IIHTs
1) To undertake experimental and research programmes.
2) To lay down the highest possible technical standard of training for the Handloom
Industry and to devise short term and long term training programmes for
technical personnel to be employed in the handloom sector.
3) To devise channels of service in order to built up the closest possible liaison
between the Institutes and handloom production units.
4) To give training in Computer Aided Textile Designs

• The functions of IIHT are:
• 1) To provide technical education of handloom to the new generation so the sparkling mind can
think and generate new ideas for the handlooms.
• 2) To prepare manpower for the handloom industry especially literate manpower so that they can
work for the of handloom industry.
• 3) To prepare the mind set up of new students to tackle the problems of handloom industry
• 4) All 10 Institutes conduct 3 years Diploma Course in Handloom & Textile Technology. The
Institutes at Varanasi and Salem are conducting 1-1/2 years Post Diploma Course in Textile
Chemistry
• The Institutes at Salem Conducting Degree course in B.Tech. Handloom And Textile Technology

5.5.PRINCIPLES OF MANAGEMENT AND
ENTREPRENURSHIP
UNIT –III
1. Definition of Marketing, Micro and Macro Marketing
2. Modern Approach, Classification of market
3. Objects and importance of marketing
4. Principles of marketing, Marketing mix
5. Market Planning, Market information and its importance
6. Branding and image creation, importance of geographical indication

Definition of Marketing, Micro and Macro Marketing
• Meaning of Market
• The word market is derived from the Latin word ‘Marcatus’ which means merchandise, trade or a
place where business is conducted.
• Definition of Marketing:
• According to Dr. Philip Kotler, who considered as the Father of Marketing, "Marketing is a
social and managerial process by which individuals and groups obtain what they need and want
through creating and exchanging products and values with others." He defines marketing as
'satisfying needs and wants through an exchange process'
• From the definitions of marketing, consumer needs and wants are greatly considered. Marketing
is based on customer needs and their satisfaction. Marketing does developing a demand for that
product and fulfilling the customer's needs. Marketing is understanding consumers their values,
attitudes and lifestyles. Marketing requires co-ordination, planning, implementation of campaigns
and employees with the appropriate skills to ensure marketing success. Thus, marketing is the
delivery of customer satisfaction at a profit. It is a process of getting the right products to the right
people at the right price, at the right place and right time, with right promotion.

• Definition of Micro Marketing:
• Micromarketing is the activity that seek or anticipating
customer needs and directing the flow of or need-satisfying goods
and services from producer to the consumer. Micromarketing
targets small segments of consumers who have specific needs for
the product being marketed. Micromarketing's concept is to
provide a deep level of customer satisfaction to a smaller, ideally
matched customer.
• The 4 Ps in micromarketing are product, price, placement and
promotion. Developing a product that matching specific need of
customers. The price of the product must fit within their income,
lifestyle and spending habits. Placement refers to distribution
channels, such as a retail store or online catalog. Promotion
involves a mix of advertising and sales strategies.

• Definition of Macro marketing:
• Macro-marketing is a a social process that directs an economy's flow of goods
and services from producers to consumers in a way that effectively matches supply
and demand and accomplishes the objectives of society in a fair and efficient
manner. It refers to how product, price, place and promotion strategies create
demand for goods and services, and thus influence what is produced and sold in an
economy.
•
• The macro environment refers to all forces that are part of the larger society and
affect the microenvironment. It is a social process that directs economy’s flow of
goods and service it matches supply and demand to meet society’s objectives. It
includes concepts such as demography, economy, natural forces, technology,
politics, and culture

3.2 MODERN APPROACH, CLASSIFICATION OF MARKETS
Traditional marketing techniques are using radio & TV ads, videos, circulars, flyers (leaflet /
brochures) and business cards for marketing.
Modern approach:
• 1) Customer focus: Successful marketing requires a complete understanding of buyers and their
needs. Leading management authority Peter Drucker suggests that “the aim of marketing is to know
and understand the customer so well that the product or service fits him and sells itself.”.It begins &
ends with consumer.
• Competition oriented: Every firm wants to get major market share to dominate. So they resort to
mass advertising and mass sales promotions and offer coupons, free gift and prizes.
• Coordination: All elements of the marketing program known as the marketing mix (Product,
price, place and promotion) are interrelated , and therefore the program must be viewed and planned
as a whole and it should interrelate with other business activities.
• Profit orientation: Customer satisfaction is the path to profitability, customer focus is the focal
point for profit planning.
• Marketing mix: The four market mix guide the business (product, price, place, promotion)

2) Relationship marketing: It introduced in 1990.An organization requires a
long-term relationships with its customers. Therefore, the focus of an
organization’s efforts is not on creating transactions, but rather on satisfying
and retaining customers over time. The customer is viewed as a partner who
will help the organization achieve its goals.
3) Borderless world: The trend towards the removal of trade barriers is
gradually leading to creation of a borderless world. Eg Free trade between
BRICS (Brazil,Russia,India,China,South Africa) , SAARC(Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka ), NAFTA (Canada,
America & Mexico)

4) Innovations:
i. Offline marketing: The challenge with offline marketing is clearly defining. Offline used to
include television and radio, they are digital services in digital marketing channels. (eg)
Newspapers, Magazines, Posters, Corporate Literature to Business Cards.
ii. Online Marketing / Digital : Online is quite straight forward anything that is advertised,
promoted or involves the Internet. Online marketing has grown considerably over the last
decade. Marketing has been influenced by search engines like Google,
iii. Websites: To find products, services, contact numbers, business trading hours, maps
websites is very useful. eCommerce websites are also nowadays used widely for marketing.
iv. Video advertising through websites / Youtube: A better way to show your product and
demonstrate by video directly to people is youtube.
v. Facebook and Twitter : The social websites like facebook and twitter are free marketing
platforms for business because it gives very appealing to viewers like forum.
vi. Mobile marketing: Mobile marketing are available since 2007. Eg SMS. The launch of 1st
iPhone the evolution of mobile marketing rapidly growing from 2010 and tablets also
largely..

• Classification of Markets :
• Generally, markets are classified on the following basis:-

A. On the basis of Area
1. Local Market: When buyers and sellers carry on business in a
particular locality or village or area, it is called local Market. Eg
perishables commodity like fish, eggs, vegetables, milk etc.
2.National Market: When certain goods of a country as a whole are
regarded as one market, it is called a national market exists for
industrial and durable goods eg wheat, sugar,medicines
3.World Market: World or global market comes up when buyers and
sellers evolved on world level. Eg Gold,silver,electronics

B. On the Basis of Time
1.Very short period Market: It is that type of market in which the commodities are
perishables. There is no change in the supply of goods. Eg fast food ,
fish,vegitables and daily price change.
2.Short Period Market: It is that type of market in which goods are durable and
also reproducible. There is a some change in the supply of goods . Eg rice,wheat
3.Long period Market: It deals in durable goods. The supply gets adequate time to
change in response of demand. Eg Cotton garments

C. On the basis of Nature of competition
1.Perfect Market: (Too many sellers) It is a market where
(1) there are large number of buyers and sellers,
(2) uniform price is prevailing throughout the market for a homogeneous product,
(3) buyers and sellers have perfect knowledge of market and accept market price,
(4) there is a free entry of a new firm and exit of existing firms etc.
2.Imperfect Market: A market is said to be imperfect because different price for same commodity when
1.Products are similar but not identical
2.Different prices are prevailing in the market
3.There are some restrictions on the movement of goods.
Imperfect market has different forms like, Monopoly (Railways) where there is only one supplier in
the market (price-maker). Duopoly (Procter & Gamble and Hindustan Unilever, Pepsi cola and Coca-cola & Air
bus and Boeing & Intel and AMD) where there are only two suppliers in the market. Oligopoly (Steel, cement,
car) where there are few big suppliers in the market. Monopolistic competition (restaurants, clothing, shoes) is
less control over price (neither a price-taker or price-maker).

D. On the basis of Transactions
1.Spot Market: It is the market where goods are transacted on the spot or
immediately.
2.Future Market: In this type of market there is no physical delivery of goods. Only
future contracts are made.
E. On the basis of Volume of Business
1.Wholesale Market: These are the markets in which goods are bought and
sold in bulk or large quantities. The dealers in this market are known as
wholesalers.
2.Retail Market: These are the markets in which goods are bought and sold in
small quantities. This is the market for consumers

F. On the basis of Goods
1. Commodity Market: It is a market different kinds of commodities are bought and sold. It is further divided into
three types.
a) Produce exchange: In this market certain commodities are bought and sold
b) Manufactured goods market: In this Market manufactured goods are bought and sold, eg. cloth, leather goods etc.
c) Bullion market: This deals in gold, silver market etc.
2. Capital Market: Business concerns need finance. The financial needs of business concern may meet by capital
markets. This market is further divided into
a) Money market: This is the market in which money is lent and borrowed.
b) Foreign exchange market:The different countries are bought and sold. It arranges foreign currency for
importers’ and for exporters in converting foreign currency into national currency.
c) Stock Market or Stock Exchange: It is a market for shares, debentures, bonds of companies are bought and
sold. It is also known as security market.

G. On the basis of Regulation
1.Regulated Market: These markets are organized and regulated by statutory
measure.eg Stock exchanges / stock market, ration shop.
2.Unregulated Market: This is a free market with no control on price, quality etc.

3.3 OBJECTIVES AND IMPORTANCE OF MARKETING
• Objective of Marketing
The basic objective of marketing is to satisfy human wants. According to Barker and
Aushen, “ the end of all the marketing activities is to satisfy human wants”.
1.Increasing consumption
2.Creation of good-will
3.Cost reduction
4.Price Stability
5.Profit through customer satisfaction
6.Ensure growth
7.Providing wide choice of goods
8.Improving quality of life

3.3 OBJECTIVES AND IMPORTANCE OF MARKETING
• Objective of Marketing:
• The basic objective of marketing is to satisfy human wants. According to Barker and Aushen, “ the end of all the
marketing activities is to satisfy human wants”. The important objectives of marketing are briefly explained as follows:
• 1.Increasing consumption: One of the marketing goal is to increase the consumption of goods and services and thereby
increase the well being of the consumers. Increase in consumption leads to increase in production, employment, income
level and wealth.
• 2.Creation of good-will: Marketing helps the firm in building goodwill through selling quality goods at reasonable
prices to customers.
• 3.Cost reduction: Marketing aims at reducing the cost to give the benefit to both the parties-sellers and buyers.
• 4.Price Stability: Marketing tries to stabilize the prices of goods by moving goods to the places where prices are high
from the places where the prices are low.
• 5.Profit through customer satisfaction: Marketing recognises the fact that profit can be earned only through customer
satisfaction.
• 6.Ensure growth: Marketing is to ensure growth of enterprise by projecting the product image and company image of
public and the consumers.
• 7.Providing wide choice of goods: Marketing aims at providing a wide variety of products to the consumers.
• 8.Improving quality of life: Marketing aims at improving the quality of life of the people by supplying quality goods at
reasonable prices.

Importance of marketing
• 1. To the consumers
• 2. To the firms
• 3. To the society

Importance of marketing can be discussed in three different headings as consumers, firms and society:
1. To the consumers: Marketing provides different information about the product and services to the consumers. It helps
them to know and understand the different benefits and techniques of products through advertising, publicity and public
relation. It provides different varieties, designs, colors sizes and quality of products, which facilitate customers to select the
best one. Marketing develops the living standard and creates value of the products to the customers.
Buy goods globally: Marketing through computer and information technology are to satisfy more
customers across the globe. Marketers do recognize the role of websites and the blogs, online communities, SMS, e-mail
etc which facilitate marketing exchanges.
Promotes Product Awareness: Getting the product recognized by the market is the primary objective of
marketing. Customers never thought of mobile phones, personal computers or laptops. Awareness of them was spread by
marketers only. Thus, marketing helps to improve the quality of life.
2. To the firms: Marketing is very important to firms. It can distribute the products through distribution channels. It
suggests transportation and ware-housing systems. Firm can maximize the profit through the marketing. It suggests
reducing unnecessary costs and utilizing the revenue in proper way.

• 3. To the society: Marketing is an important source for the creation of employment opportunities
in the society. Marketing helps in developing the living standard of the customers in the society. It
provides goods and services according to the demand and needs of the customers. Marketing helps to
utilize the different resources such as natural, financial, physical and human resources in the society.
These resources help the economic development of the country.
• Employment: Marketing offers many exciting, interesting, and challenging careers, like personal
selling, advertising, transportation, packaging, marketing research, product development and design,
retailing, lobbying, event management, etc. Many non-governmental organizations engaged in cause
marketing, advocacy marketing, social marketing etc.
• Availability of Various Products: Society would have no choice in the absence of marketing.
Today, there are hundreds of new products with many variants of every product are available only
because of marketing.

• Principles of marketing
1) Identify customer wants and needs
2) Provide relevant products and services
3) Emphasize solutions and benefits, more than features
4) Build a relationship with target market
5) Be consistent in business brand
6) Start simple and build strategy over time
7) Marketing is an ongoing process; it never stops
3.4. PRINCIPLES OF MARKETING, MARKETING MIX

3.4. PRINCIPLES OF MARKETING, MARKETING MIX
• Principles of marketing:
• The main principles of marketing are the 4P's or 8P’s of Marketing. This would include Product, Price, Promotion and Place.
Without these four essential items, a complete marketing plan is impossible. Ideally, any marketer or business owner should be sure
that each element is in place to compliment to one other. This is called a marketing mix in order to maximize profit. Without any one,
the success of a business or product is difficult.
• 7 fundamental marketing principles. The absence of any of these principles can weaken the effectiveness of your marketing:
• 1) Identify customer wants and needs: The wants and needs influence the products and services offer to customer, and how firm
go about marketing to them.
• 2) Provide relevant products and services: Position and promote of products and services is should attractive to the market.
• 3) Emphasize solutions and benefits, more than features: Solutions and benefits are the true value of offering which ultimately
move to buy.
• 4) Build a relationship with target market: Demonstrate through market that better offer to customer as expected.
• 5) Be consistent in business brand : Delivery as promise and to maintain a consistent branding message.
• 6) Start simple and build strategy over time: Take a phased approach when rolling out marketing efforts and don't do it all at
once.
• 7) Marketing is an ongoing process; it never stops: A business that wants to be sustainable and profitable should continually
invest time and energy in marketing.

Marketing Mix
• Meaning of Marketing Mix:
• Marketing mix refers to a combination of all marketing resources
and marketing efforts of an enterprise through which target is
achieved and provide maximum satisfaction to consumers. According
to Borden, “marketing mix is the combination of fair inputs which
constitute the core of a company’s marketing system. Marketing mix
refers to as firm’s total marketing program. It is combination of various
given below to achieve the firm’s targets.

Elements of Marketing Mix
• 1.Product
• 2.Price
• 3.Place
• 4.Promotion
• 5.Pace
• 6.Politics
• 7.Packaging
• 8.People

• 1.Product: Product is the first element. Product is the processing utility. Today manufacturers are realizing
that customer expects more than just the basic product. Therefore the product must satisfy the consumer’s
needs. The marketer understands the needs of the consumers and then decides the type, shape, brand etc. of the
product to be produced
• 2.Price: The marketer needs to decide how to price the product. Price is the amount of money asked in
exchange for product. It must be reasonable so as to enable the consumers to pay for the product. If it is
higher, most of the consumer rejects it. While fixing the price of a product, the management considers ability of
the consumers, market competition, discount / allowances, profit margin.
• 3.Place: Physical distribution is the delivery of products at the right time and at the right place. This includes
the decision regarding distribution channel (wholesalers, retailers) transportation, warehousing and inventory
control and etc.
• 4.Promotion: Promotion consists of all activities like advertising, sales promotion, personal selling etc.
which aim at inducing and motivating consumers to buy the product. Promotion aimed at inducing and
motivating customers to buy the product.

• 5.Pace: Pace means the speed with which the product arrive in the market. The products must be brought in the
market in the appropriate time. For instance, umbrellas must be made available in the market little advance of the
rainy season. Late arrival of product in the market causes loss of sales, loss of customers, reduction in profit and so
on.
• 6.Politics: Politics refers to the policy of the government while designing the marketing mix, it refers to the
government. policies, rules and regulations, licensing, taxation, price, exim, monetary, industrial policy and etc.
• 7.Packaging: Packaging must be such that a customer is impressed the moment seeing the product. Packing is
preparing goods for transport, sales and exchange.
• 8.People: People represents the people who sells (marketing people) and the people who work to make the sale
(sales people).
• (eg ) Timex sells a relatively inexpensive watch those appeals to the mass market. Timex promotes the
durability of its economical watches, has a broad line of low to medium priced watches, and distributes through
many retail outlets, including variety and discount stores. On the other hand, Rolex watch appeals to a specific
market. Rolex focuses its promotional efforts with good design and quality. Rolex watches are extremely
expensive, and retail distribution is restricted to a small number ie, exclusive jewelry or specialty stores.

Importance of Marketing Mix
1.Important tool of marketing program
2.Promotes better utilization of resources
3.Meets the requirements of different types of customers
4.Provides customer satisfaction or delight
5.Facilitates communication

1) Product mix:-. The product mix has the following dimensions:-
a) Product innovation and invention.
b) Product features ie, shape, size, weight, design, colour, quality, standard etc..
c) Product development.
d) Product range or mix
e) Packing and labeling of product.
f) Brand name and trade mark and warranty.
2) Price mix:- The price mix has the following dimension:-
a) Pricing policies
b) Cost of production and profit margin
c) Determination of per unit price.
d) Discount, rebates and level of margins.
e) Credit policy
f) Delivery and payment
g) Installment and higher purchase.

3) Promotion mix:- The promotion mix has the various dimensions:-
a) Advertising and publicity
b) Personal selling techniques
c) Sales promotion measures
d) Public relation techniques
e) Display of goods for sales promotion
f) Trade fare and exhibitions
g) After sales services
4) Place mix:- Place mix is also known as distribution mix with the following directions:-
a) Type of intermediaries.
b) Different marketing channels
c) Physical distribution system
d) Inventory control
e) Areas to be covered
f) Channel remuneration and incentives
g) Dealer relations.

3.5 MARKET PLANNING, MARKET INFORMATION AND ITS
IMPORTANCE
• Marketing management may be defined as the application of management tools and
techniques in the efficient utilization of available resources.
• It looks after the total marketing system of business enterprise. It involves planning,
implementation and control of marketing process (planning, organizing,
implementing and controlling activity effectively and efficiently).
• Definition of marketing plan is a business document written for the purpose of describing the
current market position of a business and its marketing strategy for the period covered.
• Marketing Plan is a specific detailed statement of marketing mix is used to realize marketing
goal.
• Marketing plans usually have a life of from one to five years.
• The purpose of creating a marketing plan is to clearly show the steps will be undertaken to
achieve the business' marketing objectives.
• The market planning is used to enhance sales of business.

Elements of marketing plan
• The following elements contained in a marketing plan :
1) Understand customer needs and wants
2) Description of the product or service, including special features
3) Marketing budget (advertising and promotional plan)
4) Description of the business location
5) Pricing strategy
6) Market segmentation (specializing in specific niche markets or mass marketing)
7) SWOT analysis
8) Marketing mix elements- 4 P’s
9) Culture and
10) Distribution details and
11) Control

• A marketing plan may be part of an overall business plan, it requires the actions:
1. Price — The amount of money needed to buy products
2. Product — The actual product
3. Promotion (advertising) -- Getting the product known
4. Placement — where the product is to be sold
5. People — Represent the business
6. Physical environment — The ambiance, mood, or climate of the environment
7. Process — The Value-added services that differentiate the product from the competition (e.g. after-sales
service, warranties)
8. Packaging — the protection for product.

• Marketing planning can be used for:
• 1. To assess how well the organisation is doing in its markets.
2. To identify current strengths and weaknesses in these markets.
3. To establish marketing objectives to be achieved in these markets.
4. To establish a marketing mix for each market designed to achieve organisational
objectives

Marketing information and its importance
• Marketing information
• Market information services means of increasing the efficiency of marketing systems and improved
information.
• It is a effective marketing management tool and how the best it is utilizing marketing information.
• Market information can be a valuable input into early warning systems by highlighting firms’
performance.
• In fact, every decision of marketing needs the support of marketing information. Access information
timely and reduce high risks in marketing.

Importance of market information:
Marketing information is the lifeblood of marketing process and marketing decision won't be taken in the
absence of marketing information. Marketing decisions are affected by many internal and external environmental
variables. The marketing success in the organization depends on the availability of accurate marketing information.
The importance of marketing information is given below:
1) Understanding the customer’s need- huge growth in high end product with potential profit.
2) Knowing the product- unknown product line affect the business
3) Understanding competition- sell similar or identical product at same rate
4) Knowing market- offer new or different or improved product or service
5) Understanding demographic-product to speak to specific gender age, location, income, wealth.
6) Reducing the risks- under the complexities of customer.
7) Understanding new technology- regularly update the technology which influence the industry.
8) Knowing the future- predict the future trends and dive into new idea and head first.
9) Knowing how the market and advertise- convince the customers for their need and reach with powerful message.
10) Providing expert analysis- analyses the information / data by expert and take right decision to succeed.

Marketing Information benefits a firm in many ways
1) In marketing planning,
* Helps to tap opportunities and build defenses against threats.
* Helps quick spotting of changing trends.
* Provides valuable market intelligence.
2) In marketing implementation,
* Helps to deliver customer-oriented marketing offers / 4Ps.
* Supports promotion; leads to better campaigns, better selection of target audience: better choice of media.
* Helps to build relations with customers. The organization builds the best relation with customers.
3) In marketing control,
* Imparts quality in all marketing decisions; the quality of these decisions is actually determined by the quality of
marketing information. The quality decisions are the essence of effective marketing control.

3.6 BRANDING & IMAGE CREATION, IMPORTANCE OF
GEOGRAPHIAL INDICATION
• 1) Branding: The common definition of brand is a name, logotype / mark,
term, design, style, words, symbols or any other feature that identifies the
goods, and services of one seller from those of other sellers or in the eyes of the
customer.
• Branding means naming a product for its identification and distinction. A
brands‘ identity is the visual expression of brand that is communicated to the
outside world with visual appearance.
• It is easily to recognize and gain awareness in the market place.
• The rural consumer likes to stick ON brands that give value for money. (Eg)
pepsi, lifeboy .
• A successful brand is one which creates and sustains a strong, positive and long
lasting impression in the minds of a buyer.
• Some of the exclusive handloom product ranges include Silk sarees from
Varanasi and Kanjivarm, Kullu and cotton sarees from Chauderi

Importance of branding:
1. Branded product can be easily recognized by the customer in the
retail shop it offers protection to the consumer as it identifies the firm
behind the product.
2. Branding enables the firm assured control over market. It creates an
exclusive market for the product.
3. If a firm has one or more lines of branded goods, it can go a new
item to its list easily and the new item can enjoy all the advantages of
branding immediately.

• Image creation of brands:
• Creating a memorable logo and brand is a powerful way to help the business stand out in the minds
of customers. Brand recognition is the key in winning business and in building a strong business
base. It helps customers remember the business more easily and helps them spread news faster via
word of mouth. Brand image is developed over time through advertising campaigns with a
consistent theme, and is authenticated through the consumers' direct experience.
• Brand Name: Brand name is that part of a brand that can be spoken including letters, words and
numbers.( eg). HMT, 501 soaps, Nokia Phone etc. It is a combination of words used to identify a
product and to differentiate it from other rival products.
• Brand Mark: It is a part of the brand which appears in the form of symbol or design. It could be
recognized only by sight but may not be spoken ( eg). The symbol of Maharaja of Air India.

Importance of Geographical Indication - GI
• The globalization has brought about enormous challenges to the trade and industry; and the worst sufferers are the
producers of unique textile products who lose their markets due to largescale production.
• The introduction of Geographical Indication (GI) Act, 1999 by Government of India has created an avenue for protection of
these unique products of the country.
• The GI Act stipulates protection of the market of the producers and safeguards the interests of the consumers of these
unique products through registration and taking action against the breaches.
• It is believed, that the IPR Protection of unique textiles products of the country with a predetermined market linkage would
help in brand building of the product, providing market linkages, generating more employment opportunities and enhanced
income to the stakeholders.
• In order to protect these unique products, the Textiles Committee has leading a nationwide campaign in the country through
facilitating GI registration of potential products and technical knowledge transfers.
• As a part of the endeavour, the Committee is facilitating GI registration for products like Banaras Saree & Brocades of
Uttar Pradesh, Surat Zari of Gujarat, Kancheepuram silk sarees, Kashmir carpets, Mysore silks, Paschmina shawls and etc.

UNIT –IV
1. Market Research
2. Types and Objectives of Market research, advantages
3. Market sampling, Primary and Secondary DataSources
4. Definition, Importance and objectives of pricing
5. Factors affecting price decision, Single Price and VariablePrice
6. Pricing Policy for HandloomProducts

4.1 Market Research
• Market research is a branch of marketing research.
• It deals with research on buying behavior, attitude, preferences etc. of
consumers and dealers at market place.
• It is concerned with investigation, analysis and measurement of market and
demand.
• Marketing research is defined as an organised approach includes all
research activities involved in marketing, which is conducted on a regular
basis and valuable to the manufacturer.
• Every organization has to conduct market research for its long term growth
and sustain in the market.
• With competition on the increase, the strength of the firm lies in its market
research.

Features of marketing research
The main features of marketing research are
1. Gathering and analyzing the utility and marketability of the product.
2. Nature of demand
3. Nature of competition
4. Methods of marketing
5. Movement of the product from production stage to the point of
consumption.

Scope of Marketing Research
Major marketing research activities are:
(1) Measurement of Consumer potential
(2) Determination of marketing characteristics like price,advertisement,
sales, distribution
(3) Market share analysis
(4) Competitive product studies
(5) New product acceptance /proposal.

4.2 Types And Objectives Of Market Research, Advantage
1) Types of Marketing Research: Marketing research can be classified in the
following ways
A. On the basis of time horizon
B. On the basis of type of data
C. On the basis of research objectives
D. On the basis of research purpose
E. On the basis of sources of data

• A. On the basis of time horizon
1. Continuous research: Continuous marketing research is produced on a regular or periodic basis.
For example, marketing information on the total sales by product-wise and area basis is gathered on a
routine basis so that it can be compared over time.
2. Adhoc research: When research is required for specific purpose, it is generally referred to as
adhoc research as it is carried out only when actually required to assist a marketing decision. (eg)
effectiveness of a particular advertisement.
B. On the basis of type of data
1. Quantitative research: This research is based on any information which can be expressed using a
numerical measure. This research mainly aims at finding out the quantity or volume of potential sale
of a product in a specific area at a specific period.
2. Qualitative research: This is concerned with information which is based on descriptions and
shades of meaning rather than numerical analysis. It is commonly used or early stage of adhoc
research studies. It is to procure information why customers purchase a product? and what features of
the product attract them? and so on.

C. On the basis of research objectives
1. Exploratory research: This is used when the researcher wants to find out what is happening in the
market? It consists of a series of initial research steps which help clarify the problem. (eg) sales
decreased 10 percent in the last month.
2. Conclusive research: This is aimed at providing information which management require. It implies
the final research which is both expensive and time consuming and is based on a detailed scientific
procedure.
D. On the basis of research purpose
1. Descriptive research: This seeks to describe a market, a competitor or other issue. The majority of
marketing research is descriptive and designed to help marketers get a better picture of their customers
and their markets.
2. Casual research: This is used to identify the factor that causes a particular effect in the market
place. (eg) to understand what happen to sales if price reduces on heavier advertising.

E. On the basis of sources of data
1. Primary research: In primary research, data is collected directly from the primary source. Primary
data are original in character and referred to as field research.
2. Secondary research: Research is based on by using secondary data of internal or external sources
and referred to as desk research.
4.2 Types and Objectives Of Market Research, Advantage

2) Objectives of Marketing Research
Marketing research determines who and where the customer is what is his needs & wants, and how
much is to pay, to buy for purchase. It tells the future of the existing products and products get to the
introduced in the market. It tells sales trend and po tential. It analysis distribution, economic trends
and profitability. It determines advertising effectiveness, consumer reaction. It popularises and makes
them acceptable by the consumer. It explores new markets and helps developing new products. It
safeguards the interest of the company against unforeseen changes in the market.

1. To know about buyers-number of buyers, frequency of
buying, location of buyers etc.
2. To understand the economic factors affecting the sales
volume and their opportunities.
3. To measure the effectiveness of advertisement, sales
promotion and personal selling
4. To know customer response-attitudes, reactions, tastes,
preference etc.
5. To understand the competitive position of rival products
6. To study the price trends.
7. To analyse the market size.
8. To know the estimation of demand.
9. To study the nature of the market, its location and its
potentialities.
10. To know the company‘s share in the market.
11. To study the government policies.
12. To study the technological changes
13. To know about the consumers income, consumers
spending etc,
14. To find out the best distribution channel.
15. To find out solutions to problems relating to marketing
of goods and services.
16. To ascertain what products the consumer wants and
when and where he wants them.

3) Advantages of Marketing Research
Marketing research is the gift of modern marketing concepts. Marketing research helps in the study
and analysis of the behaviour, habits, tastes and attitudes of consumers. It offers a number of
advantages to manufacturers, distributors, advertising agencies and govt.
A. Advantages to manufacturers
B. Advantages to Distributors
C. Advantages to Advertising Agencies
D. Advantages to Government

A. Advantages to manufacturers
1. It helps in framing and implementing product policies.
2. It helps in adjusting in right quality and quantity between supply and demand.
3. It helps in the task of supplying of articles preferred by consumers and at places and in quantities desired by them.
4. It helps the manufacturers to make a correct diagnosis of market conditions and apply suitable remedy.
5. It helps in planning and executing marketing strategies.
6. It helps in measuring the effectiveness of various sales promotion methods, advertisements etc.
7. It explores the possibility of selling a new product into a market. It also helps in developing new markets.
8. It enables to study about competition.
9. It may help in finding out new uses for the existing products.
10. The most important role of marketing research is the study of habits, tastes, attitude and behaviour of consumers.
This study helps the manufacturers in understanding customers.

B. Advantages to Distributors
1. It helps in finding out regions with thick and rich population encouraging business environment and
suitable transport facilities. It also helps in selecting appropriates site having warehousing facilities
banking facilities etc.
2. It helps to eliminate waste and inefficiencies. This lead to control and reduction in distribution costs.
3. It assists distributors to select the most profitable product lines and varieties giving attractive margin of
profit.
C. Advantages to Advertising Agencies
1. Through marketing research, advertising agencies advise their clients on how they should spend on each
promotional method like advertisement, personal selling and sales promotion.
2. It helps the advertising agency in preparing creative advertising and placing advertisement on the
various media for its clients. 3. It helps to measure the effectiveness of advertising.

D. Advantages to Government
1. It helps in the task of resource allocation on national and social priorities so as to have the optimum results.
Thus management of economic system is facilitated through marketing research.
2. It may help the government in exploring the new markets in the world for its products and services. It also
helps in balancing the domestic consumption along with export. The vital decisions on imports and exports
depend on marketing research conducted.
In recent times, India many consumer products like instant food (Maggi), detergents (Nirma, Sunlight),
Soaps (Fresca, Vigil), toothpaste (Promise) have been launched into the market after rigorous marketing
research

4.3 Market Sampling, Primary And Secondary Data Sources
• In market research, sampling means getting
opinions from a number of people, chosen from a
specific group, in order to find out about the whole
group. Let's look at sampling in more detail and
discuss the most popular types of sampling used
in market research.
• Probability sampling involves random selection,
allowing you to make statistical inferences about
the whole group.
• Non-probability sampling involves non-random
selection based on convenience or other criteria,
allowing you to easily collect initial data.

Sampling frame
The sampling frame is the actual list of individuals that the sample will
be drawn from. Ideally, it should include the entire target population
(and nobody who is not part of that population).
Example
You are doing research on working conditions at Company X. Your
population is all 1000 employees of the company. Your sampling frame
is the company’s HR database which lists the names and contact details
of every employee.

• Sample size
• The number of individuals in your sample depends on the size of the
population, and on how precisely you want the results to represent the
population as a whole.
• You can use a sample size calculator to determine how big your
sample should be. In general, the larger the sample size, the more
accurately and confidently you can make inferences about the whole
population.

Probability sampling
• Probability sampling means that every
member of the population has a chance of
being selected. It is mainly used
in quantitative research. If you want to
produce results that are representative of
the whole population, you need to use a
probability sampling technique.
• There are four main types of probability
sample.
• 1. Simple random sampling
• 2. Systematic sampling
• 3. Stratified sampling
• 4. Cluster sampling

• 1. Simple random sampling
• In a simple random sample, every member of
the population has an equal chance of being
selected. Your sampling frame should include
the whole population.
• To conduct this type of sampling, you can use
tools like random number generators or other
techniques that are based entirely on chance.
• Example
• You want to select a simple random sample of
100 employees of Company X. You assign a
number to every employee in the company
database from 1 to 1000, and use a random
number generator to select 100 numbers.
Types of probability sample.

• 2. Systematic sampling
• Systematic sampling is similar to simple random
sampling, but it is usually slightly easier to conduct.
Every member of the population is listed with a
number, but instead of randomly generating numbers,
individuals are chosen at regular intervals.
• Example
• All employees of the company are listed in
alphabetical order. From the first 10 numbers, you
randomly select a starting point: number 6. From
number 6 onwards, every 10th person on the list is
selected (6, 16, 26, 36, and so on), and you end up with
a sample of 100 people.

• 3. Stratified sampling
Stratified sampling involves dividing the population into subpopulations
that may differ in important ways. It allows you draw more precise
conclusions by ensuring that every subgroup is properly represented in
the sample.
To use this sampling method, you divide the population into subgroups
(called strata) based on the relevant characteristic (e.g. gender, age range,
income bracket, job role).
Based on the overall proportions of the population, you calculate how
many people should be sampled from each subgroup. Then you use
random or systematic sampling to select a sample from each subgroup.
Example
The company has 800 female employees and 200 male employees. You
want to ensure that the sample reflects the gender balance of the
company, so you sort the population into two strata based on gender.
Then you use random sampling on each group, selecting 80 women and
20 men, which gives you a representative sample of 100 people.

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