2. MARKETMARKET
‡ Not necessarily a geographical area, a
place where goods can be sold or bought.
‡
Area wise
market
Local , Regional , National or global
market
Product
wise
Commodity, share, Bullion, real
estate, retail loan markets
Transacti
on wise
Cash/spot, future market
Volume
wise
Retail Or Whole sale market
3. MARKETING
Marketing is the process of determining
consumer demand for a product or service,
motivating its sale and distributing it into
ultimate consumption at a profit
A management function- need
analysis, product, sale & distribution
A Business Philosophy-customer
focused-profit oriented.
4. Selling & MarketingSelling & Marketing
selling is an
operational activity
It is a concept includes
need analysis, product dev,
consumptions & satisfaction
It is product focused It is customer focused
It is seller oriented It is buyer/ customer
oriented
It encases profitable
opportunity
It is buyer need oriented
It aims earn profit
by maximizing sales
It aim at earning profit by
max.customer satisfaction
5. S.No. Physical Goods Services
1. Tangible Intangible
2. Homogeneous Heterogeneous
3. Product and distribution
separated from
consumption
Production, distribution
and consumption re
simultaneous process
4. A thing An activity
5. Core value produced in
factory
Core value produced in
buyer-seller interaction
6. Customers do not
participate in the
production process
Customers participate in
production
7. Can be kept in stock Cannot be kept in stock
8. Transfer of ownership No transfer of ownership
6. Market MixMarket Mix
‡ Marketing mix is a set of marketing tools
used to pursue marketing objective.
These are 4Ps& 4Cs
± Product:- variety, quality, features, brand etc
± Price:- list price, discounts, payment period
± Promotion:- advertising, sales force, PR,DSA
± Place:- channels, coverage, locations,
inventory, transport
± Customer need
± Cost to customer
± Convenience
± communication
8. Financial position & Banking NeedsFinancial position & Banking Needs
Stage financials Needs
Young
Bachelor
High income-
low liabilities
Credit card, auto loan,
low cost banking.
Half Nest
(married &
young kids
Low liquidity-
high needs
Mortgage loan, OD
Credit card, durable
loans
Full Nest
(married &
adult kids
High liquidity
High savings
Investment, FD, flexi
deposit
Empty nest
Sr. citizen
Reduced
income
Social security &
reverse mortgage loan
9. PRODUCT
A product is anything that can be offered
to a market for attention, acquisition, use
or consumption that might satisfy a want
or need
PRODUCT PERSONALITY
THE CORE features
THE ASSOCIATED FEATURES
THE BRAND NAME & LOGO
THE PACKAGE AND LABEL
10. PRODUCT PLANNING
The process of product planning consists
Product Line, Product Mix, Branding,
Packaging and New product development.
PRODUCT LIFE CYCLE
Introduction, Growth, Maturity, Decline
The product Life cycle operates at three
levels product level, product sub category,
brand level.
12. NEW PRODUCT DEVELOPMENT
Idea Screening
Concept Testing
Product Development
Test Marketing
Commercial Launch
DIVERSIFICATION
Concentric Diversification
Horizontal Diversification, forward/backward
Conglomerate Diversification-Additional
13. BRANDING
Line Extension
Brand Extension
Multi brands
New Brands
PACKAGING
Primary Package
Secondary Package
Shipping Package
LABELLING
Identify the product or brand
Describing information
Promoting the product through 'attractive
graphics'
14. PRICING
Price is the amount charged for product
or services or sum value of all the values
that consumers exchange for the benefits
or having or using the product or service
Different forms - Goods bought, hire
charges, tution fees
Dynamic Pricing - Varying prices
Flexibility
15. OBJECTIVE OF PRICING
Profit
Survival
Market Share
Cash Flow
Status Quo
Product Quality
Communicating Image
Short term/Long term
Consideration for setting PRICING
Cost Based
Value Based
Competition Based
16. PRICING METHODS
Mark up Pricing :Std. mark + Total cost
Absorption cost Pricing : Margin+ Total Cost
Target Return Pricing : Return Rate + cost
Marginal cost Pricing : Full variable cost + varying Fixed c
Perceived Value Pricing : Customer satisfaction
Value Pricing :to make feel High value at low price
Going Rate Pricing : Market price
Auction Type Pricing :
English Auctions :One seller many buyer
Dutch Auctions :Many seller one buyer or vice versa
Sealed Bid Auctions: one bid by one seller without
knowing others¶ price
Group Pricing. : concession for bulk purchase
17. Functions of distribution channels
Market information
Promotion
Contact
Matching
Negotiation
Product information
Physical distribution
Financing
