Important notes for FYBBA students for Principles of Marketing

1. BBA-IB
Semester- II
204- Principles of Marketing
PREPARED BY,
PROF. MAYURI LONDHE
SANJIVANI ARTS, COMMERCE AND SCIENCE COLLEGE
DEPT. OF BBA-IB

2. Unit-I
Concepts and Functions of
marketing
 Marketing concepts, its objectives, importance and functions of marketing.
 Various approaches of marketing
 Challenges and opportunity of marketing manager in international market

3. Marketing:
 Marketing is about identifying and meeting human and social needs.
 Marketing refers to activities a company undertakes to promote the
buying or selling of a product or service.
 Marketing includes:
 advertising,
 selling, To consumers or other businesses.
 and delivering products
 Marketing is the process of exploring, creating, and delivering value
to meet the needs of a target market in terms of goods and
services; potentially including selection of a target audience.

5. Objectives of marketing:
1. The objective of customer satisfaction (customer
objectives)
2. The objective of reasonable profit to the company
(company objectives).
3. The objective of social good (social objectives).
Thus it can be said that marketing today has
threefold objectives; that of satisfying customer
needs at a profit to the company and benefit to the
society.

6. CUSTOMER COMPANY OBJECTIVES SOCIAL OBJECTIVES
(a) To locate the present
and potential needs of
the customers.
(a) To carry out the right
kind of research activity
so as to ensure
production of need
based products
a) To create
consciousness in the
customer about those
needs, the
satisfaction of which
will give a benefit to
the society at large.
(b) To create time, place
and possession utilities
in the goods to satisfy
human wants
(b) To make the right
kind of goods available
at the right time, at the
right place, in the
required quantities and
at the right price
b) To widely publicise
and promote social
causes and issues.
(C) To create satisfied
customers.
(c) To create satisfied
customers so as to
ensure their continued
patronage to the
company and its
products

7. Importance of marketing:
Benefits for manufacturer/
individual firm
Benefits for the society
1. Helping in earning and
increasing profits
1. Marketing is instrumental in
improving the standard of
living of society.
2. Helpful in business planning
and decision making
2. It provides employment
3. Marketing is source of new
ideas
3. Marketing stabilizes the
economic conditions
4. Marketing places the goods
in the hands of the ultimate
consumer
4 . Marketing increases National
Income.

8. Functions of marketing:
Functions of Exchange Functions of Physical
Supply
Facilitating Functions
a) Buying and
assembling
b) selling
a) Transportation
b) Storage
a) Standardization and
grading
b) Branding, Packaging
and Labeling
c) Insurance
d) Financing
e) Marketing
information
f) Risk bearing
g) Advertising
h) Market research

9. 1. Functions of Exchange:
(a) Buying and assembling
 Buying:
o Sub functions of buying
 Estimating the demand
 Selection of Consumer oriented goods
 Selection of supplier
 Negotiation
 Entering into a contract
 Assembling:
(b) Selling:
 Product planning and development
 Creation of demand
 Establishing contact with the buyer
 Negotiations
 Entering into a contract

10. 2. Functions of Physical Supply
(a) Transportation
 Facilitate production
 Facilitate the growth of markets for perishable products
 It creates place utility
 Transportation rises the standard of living of the people
 Equalizing prices
 Provides employment opportunities
 Modes of Transport
A. Land Transport
 i) Road Transport
 ii) Railway Transport
B. Water Transport
C. Air Transport
(b) Storage or Warehousing

11. 3. Facilitating Functions:
 Facilitation can help a group improve how they work together, identify and solve
problems, make decisions, and handle conflict.
 The role of the facilitator is to guide the group to work together more efficiently by
creating synergy, generating new ideas, and arriving at agreement.
(a) Standardization and grading
 Standardization
 The marketing of products sold internationally may be standardized to keep a
uniform image among the various markets.
 For example, COCA-COLA Company uses global standardization in marketing by
keeping the appearance of the product relatively unchanged between different
markets.
 Grading
 It refers to the process of dividing products into classes made up of units possessing
similar characteristics. It involves division of products into classes,lots or
groups in accordance with predetermined grades of quality. Grading helps
in fixing and securing the prices for the products

12. (b) Branding, Packaging and Labelling
 Branding:
 Branding is an activity that includes giving a name and identification to a
product.
 Branding includes activities like giving
-the product a brand name,
-a brand mark and
-also popularizing the product.
 Branding gives an identity to the product.
 Identity is essential to competition, because without a means of
identification there is no way of making a choice.
 Branding definitely facilitates in making a choice.
 Brand:
 A brand is a name, symbol, term or design or a combination of all these
which is intended to identify the goods or services of one seller or a group
of sellers and to differentiate them from those of the competitors.

13.  Brand Name and Brand Mark:
 Brand name is a part of the brand consisting of a word or a group of words
or letters. A brand name is one which can be pronounced or vocalized.
 Brand mark is a part of the brand that constitutes a symbol, mark or design.
It is that part which can be recognized and not pronounced, e.g. the symbol
of the Wheel on the Wheel soap bar, the symbol of Maharaja of Air India.
 Trade Mark:
 When a brand name is registered and legalized it becomes a trade mark.
 Thus registered trade marks are brands. From this, we can come to the
conclusion that all trade marks are brands but all brands are not trade
marks. Trade mark is a legal term protecting the right of the manufacturer
to use the brand name or brand mark

14. C. Insurance
Insurance is a means of protection from financial loss in which, in exchange
for a fee, a party agrees to compensate another party in the event of a certain
loss, damage, or injury. It is a form of risk management, primarily used to give
security against the risk of a uncertain loss.
Importance of Insurance:
(1)Transfer of Risk: The risk of business losses can be transferred to the
Insurance Companies against the payment of a small amount known as
'insurance premium
(2)Protection: In the event of a business loss the insurance company makes up
for the goods lost. Thus the businessman is protected from the worry of loss
or damage.
(3)Stable Prices: Insurance protects a businessman from the risk of price
fluctuations. If there is a loss it is absorbed by the insurance company. In the
absence of insurance every time a businessman suffers a loss, he will
increase the price of the product to make good his loss, thus resulting in
drastic price fluctuations.

15. (4) Assured Profits: It is insurance that assures normal profits to the
businessmen; as losses are absorbed by the insurance company, even in the
event of a loss the businessman can enjoy normal profits.
(5) Specialization: Insurance companies have the ability to shoulder the risk in
a professional manner thus leaving the businessman free to carry out his duty
of production and distribution of goods.
(6) Financial Assistance: Insurance helps a businessman in raising finance as
banks do not hesitate in giving loans against insured property.
(7) Minimizing Risk: There is no way to avoid risk completely. However,
insurance spreads the risk between a number of parties and thus the individual
risk is minimized.
(8) Industrial Development: Insurance companies invest their funds in shares
and debentures of companies. Thus, they help in the industrial development of
a country. Therefore, insurance is an important facilitating function to be
performed.

16. d) Financing:
Financing is the process of providing funds for business activities, making
purchases, or investing. Financial institutions, such as banks, are in the business of
providing capital to businesses, consumers, and investors to help them achieve their
goals.
The process of arranging finance for a business is known as business finance.
The process of arranging finance for marketing is known as Marketing finance.
 Fixed Capital
 Fixed capital are assets of a business that are permanent in nature and are not
intended to be disposed of by a business. These assets include land, buildings,
plant, machinery, fixed equipment, furniture, fixtures, vehicles, livestock, etc.
 Working Capital
 working capital refers to cash or other liquid assets that an organization uses to
finance day-to-day operations such as payroll and bill payments.
 Also known as Circulating or revolving or floating capital.
e)Marketing information:
Marketing Information means all information relating to the marketing of any products
or services, including customer names and lists, sales targets, sales statistics, market

17. f) Risk bearing
Marketing risk means uncertainty, loss or damages arising out of unforeseen causes while
undertaking the activities of marketing.
 Economic Risks-
-Time Risk
-Place Risk
-Competition Risk
 Political risks (Government intervention)
 Physical Risks (breakage)
 Natural Risks (rain, flood, Earthquake)
 Human Risks (Unethical behavior, sickness, death of employee)
g) Advertising:
Any paid form of non-personal presentation and promotion of ideas, goods and services by
an identified sponcer.
Definition: the physical means where a manufacturer or supplier of goods utilities or
services tell the consumer about his products or services.

18. h) Market research
 i) Factual Survey
 House to house enquiry or personal interview
 Investigation through the post or mail survey
 Telephone survey
 Ii) Observation Method
 Iii) Experimentation method
 Iv) The panel research

19.  Approaches of marketing:
1. Traditional concept
i) Production Oriented Marketing (Till 1930)
ii) Sales Oriented Marketing (After 1930)
2. Modern Concept
i) consumer Oriented Marketing (1950)
ii) Socially Oriented Marketing (1960-1970)

20. Challenges And Opportunity of marketing
manager in international market :
1. Qualities of a Marketing Manager
1. Physical qualities
2. Mental qualities
3. Political qualities
4. Social qualities
5. Moral qualities

21. 2. Duties, Responsibilities and role of
marketing manager:
 To be on the lookout for marketing opportunities
 To determine marketing plans, policies and procedures in consultation with managing
director.
 Evolving a marketing mix for each market segment.
 Supervision and control over sales manager, advertising manager, product manager
distribution manager, and any other managers who are directly responsible for
implementing and expanding the marketing program of the company.
 Developing and expanding existing markets.
 Negotiating transactions with major suppliers and intermediaries.
 Development of new products, new markets, new channels, new innovations etc. in the
field of marketing
 Making modifications in the marketing plans, policies and procedures.
 Controlling marketing costs.
 Selection, management and control of the channels of distribution.
 Formulation of marketing strategies
 Undertaking consumer and public relations
 Integrating all marketing activities.

22. 3. Challenges Faced by Marketing Manager
 Generating Awareness and driving traffic
 Targeting Effectively
 Using social media to generate customers and revenue
 keeping up with market trends and Strategies
 ROI