INTRODUCTION TO MARKETING MANAGEMENT - Marketing intermediaries, sales personnel also creates employment enjoys no boundaries, keeping the focus

no boundaries, keeping the focus on the worldwide

management is a process of controlling the marketing opportunities in advertisement section. customers. • However, some disadvantages are also
aspects, setting the goals of a company, organizing the plans associated with it, like the challenges it faces on the path of
step by step, taking decisions for the firm, and executing NATURE - Customer Focus / Creates Market Offering / expansion and globalisation.
them to get the maximum turn over by meeting the Exchange Oriented / Continuous Activity / Goal-Oriented /
consumers' demands. Marketing management is the process Manages 4 P’s / Creates Utilities / Economic Process / - FUNDAMENTALS OF STRATEGIC MARKETING PLANNING – 1.
of decision making, planning, and controlling the marketing MARKETING ENVIRONMENT - The Marketing Environment End Year Planning Cycle is Upon Us : As the year ends, we
aspects of a company in terms of the marketing concept, includes the Internal factors (employees, customers, evaluate our performance and make plans for the coming
somewhere within the marketing system. Before proceeding shareholders, retailers & distributors, etc.) and the External one. In this regard, it is necessary to look at the process of
to examine some of the details of this process, comments on factors ( political, legal, social, technological, economic) that strategic marketing planning and the foundations it is based
two aspects will be helpful background. According to Philip surround the business and influence its marketing operations. on. We must focus on strategic planning because it is the
Kotler, popularly known as the father of modern marketing, Some of these factors are controllable while some are process that allows the company to make objective driven
Marketing is "the science and art of exploring, creating, and uncontrollable and require business operations to change plans and follow up on them through monitoring and
delivering value to satisfy the needs of a target market at a accordingly INTERNAL ENVIRONMENT : The Internal evaluation. 2. Revisiting the business case : The business case,
profit." CONCEPT – 1. Production Concept: • This concept is Marketing Environment includes all the factors that are its narrative and accompanying business model are the
based on an idea that inexpensive and widely available within the organization and affects the overall business fundamental tools of strategic planning. There should be
products generate more sales because customers prefer operations. These factors include labor, inventory, company total clarity on the purpose of the business’ existence in
those. • This is quite similar to the Say’s Law which states policy, logistics, budget, capital assets, etc. which are a part terms of the need it is fulfilling in the market. 3. Assumptions
‘Supply creates its own demand’. • So, companies produce of the organization and affects the marketing decision and its underlying marketing objectives: Strategic marketing
the product on a large scale and make sure that it is easily relationship with the customers. These factors can be planning is driven by objectives. The major concern is the
available everywhere to the customer. - • The large scale of controlled by the firm. MICROENVIRONMENT : The Micro basis of arriving at them. Do the underpinning assumptions
production of the product helps the companies to avail the Marketing Environment includes all those factors that are made make sense? Has a thorough analysis of the marketing
economies of scale which lead to inexpensive products and closely associated with the operations of the business and environment been conducted? When we talk of objectives
thus attracting more customers. 2. Product Concept: • This influences its functioning. The microenvironment factors conforming to the SMART principle. 4. Crafting winning
concept is based on an idea that customers prefer quality include customers, employees, suppliers, retailers & marketing strategies : A strategy in simple words is a stated
products whatever may be their price and availability. • distributors, shareholders, Competitors, Government and consistent way of doing things aimed at achieving set
According to this concept, companies concentrate on General Public. These factors are controllable to some extent. objectives. Strategies introduce stability to the business
developing a better quality product which is usually 1. Customers– Every business revolves around fulfilling the decision-making process. One of the greatest frustration I
expensive. • The drawback of this concept is that it focuses customer’s needs and wants. Thus, each marketing strategy is have experienced as a consultant is when clients fail to peg
only on the product quality but not on other factors like customer oriented that focuses on understanding the need of their decisions on stated strategies. 5. Developing practical
usability, availability, price, etc. • So, it may fail to attract the customers and offering the best product that fulfills their action plans : Once the objectives and strategies are in place,
those customers whose attentions are on the other needs. 2. Employees– Employees are the main component of the next issue is execution. A plan delineates what is to be
mentioned factors. 3. Selling Concept: • Selling Concept is a business who contributes significantly to its success. The done, who will do it, when it will be done, how much it will
only concerned with selling the product whatever may be the quality of employees depends on the training and motivation cost and how the results will be reported. That is why the
quality of the product and need of the customer. • The chief sessions given to them. Thus, Training & Development is marketing plan needs a marketing operations plan including
motive is making money, not developing a relationship with crucial to impart marketing skills in an individual. 3. an organisation structure for the marketing function. 6.
the customers. • So, there is less possibility of repeated sales. Suppliers– Suppliers are the persons from whom the material Monitoring and evaluation framework : The strategic
Companies applying this philosophy can even deceive the is purchased to make a finished good and hence are very marketing plan is monitored on a regular basis to ensure that
customers to sell their products. • The drawback of this important for the organization. It is crucial to identify the the indicators are being met. Any deviation of the indicators
concept is that it lacks foresightedness because the suppliers existing in the market and choose the best that from the targets should trigger remedial actions. There is
companies focus on selling what they produce instead of fulfills the firm’s requirement. 4. Retailers & Distributors– need to diagnose the reasons why the targets were not
focusing on the need of the market. 4. Marketing Concept: • The channel partners play an imperative role in determining realised. If the reasons are external and less controllable,
A company following selling concept cannot have long-term the success of marketing operations. Being in direct touch then you need to adapt to them. MARKETING
existence in the market because it cannot fulfill customers’ with customers they can give suggestions about customer’s ORGANISATION - Marketing organisation is a group of
needs. Companies have to make products fulfilling their desires regarding a product and its services. 5. Competitors– marketing persons brought together to make decisions on
customers’ needs to be successful in today’s era. • So, the Keeping a close watch on competitors enables a company to marketing areas like product, price, place, and promotion.
marketing concept came into existence. • This concept is design its marketing strategy according to the trend Marketing organisation is the foundation of effective sales
based on an idea that customers buy the products prevailing in the market. 6. Shareholders– Shareholders are planning for systematic execution of plans and policies.
accomplishing their needs. 5. Societal Marketing Concept: • the owners of the company, and every firm has an objective Marketing organisation provides a system of relationships
The societal marketing concept is based on the marketing of maximizing its shareholder’s wealth. Thus, marketing among various marketing functions to be performed by
concept just adding the philosophy of social welfare with it. • activities should be undertaken keeping in mind the returns proper coordination among marketing persons. Need for
Companies concentrate on fulfilling their customers’ needs as to shareholders. 7. Government– The Government Marketing Organization: i. Lack of Initiative ii. To Balance
well as contributing to social welfare without polluting or departments make several policies viz. Pricing policy, credit Individual Goals and Organizational Goals. iii. To Avoid
affecting the environment and natural resources. 6. Holistic policy, education policy, housing policy, etc. that do have an Conflict. iv. Organization Ensures Proper Performance of
Marketing Concept: • The holistic marketing concept is newly influence on the marketing strategies. A company has to keep Different Functions. v. Nature of Marketing Job. Factors
added to the existing marketing management concepts. • track on these policies and make the marketing programs Influencing Size of Marketing Organization: 1.
According to this concept, a business and its different parts accordingly. MACRO ENVIRONMENT : The Macro Marketing Management’s Philosophy (Like that of centralization or
are one single entity and have a common goal, aligned and Environment includes all those factors that exist outside the decentralization, individual action or group action, their
integrated activities to achieve that goal. • This concept organization and can not be controlled. These factors majorly attitude and value judgment) 2. Type of Product 3. Product
focuses on meeting customer needs in a better and include Social, Economic, Technological Forces, Political and Line 4. Markets 5. Channel of Distribution 6. Needs and
consistent way as well as performing the social Legal Influences. 1. Political & Legal Factors– With the Requirements of the Customers 7. Business Conditions and
responsibilities. • The holistic marketing concept is very change in political parties, several changes are seen in the Environment 8. Sales Activity. CUSTOMER LIFETIME VALUE -
important for brand building, consistency, efficiency, and market in terms of trade, taxes, and duties, codes and Customer lifetime value can also be defined as the monetary
effectiveness. IMPORTANCE OF MARKETING -1. Analysing practices, market regulations, etc. So the firm has to comply value of a customer relationship, based on the present value
Market Opportunities: Marketing management collects and with all these changes and the violation of which could of the projected future cash flows from the customer
analyses information related to consumer’s needs, wants and penalize its business operations. 2. Economic Factors– Every relationship. Customer lifetime value is an important concept
demands, competitor’s marketing strategies, changing business operates in the economy and is affected by the in that it encourages firms to shift their focus from quarterly
market trends and preferences. This helps to identify market different phases it is undergoing. In the case of recession, the profits to the long-term health of their customer
opportunities. 2. Determination of Target Market: Marketing marketing practices should be different as what are followed relationships. Customer lifetime value is an important metric
management helps to identify the target market that the during the inflation period. 3. Social Factors– since business because it represents an upper limit on spending to acquire
organization wishes to offer its product. 3. Planning and operates in a society and has some responsibility towards it new customers. For this reason it is an important element in
Decision Making: Marketing management helps to prepare must follow the marketing practices that do not harm the calculating payback of advertising spent in marketing mix
future course of action. Planning relates to product sentiments of people. Also, the companies are required to modeling. - The purpose of the customer lifetime value
introduction, diversification. Decision making regarding invest in the welfare of general people by constructing public metric is to assess the financial value of each customer. Don
pricing, selection of promotional mix, selection of distribution conveniences, parks, sponsoring education, etc. 4. Peppers and Martha Rogers are quoted as saying, “some
channel is taken by the marketing management. 4. Creation Technological Factors– As technology is advancing day by customers are more equal than others.” Customer lifetime
of Customer: Consumers determine the future of the day, the firms have to keep themselves updated so that value differs from customer profitability or CP (the difference
market .Therefore providing the best product to the customers needs can be met with more precision. between the revenues and the costs associated with the
consumer according to their preference is the important task DOMESTIC MARKETING - • Domestic Marketing refers to the customer relationship during a specified period) in that CP
of marketing. Marketing management helps in creation of marketing activities employed on a national scale. • measures the past and CLV looks forward. As such, CLV can
new customers and retention of current customers. 5. Helps Marketing strategies were undertaken to cater customers of be more useful in shaping managers’ decisions but is much
in Increasing Profit: Marketing caters to the varied and a small area, generally within the local limits of a country. • It more difficult to quantify. While quantifying CP is a matter of
unlimited needs of consumers. Marketing management helps serves and influences the customers of a specific country carefully reporting and summarizing the results of past
to increase profit and sales volume. This is achieved by only. • Domestic Marketing enjoys a number of privileges like activity, quantifying CLV involves forecasting future activity.
expansion of market and increasing customers. 6. easy to access data, fewer communication barriers, deep ORGANIZING THE MARKETING DEPARTMENT - 1. Functional
Improvement in Quality of Life: Marketing management knowledge about consumer demand, preferences and taste, Organisation : Some marketing departments are organized
aims at providing innovative product and services to the knowledge about market trends, less competition, one set of by general marketing functions such as marketing research,
customers. Marketers continuously strive to incorporate new economic, social & political issues, etc. • However, due to the product development, distribution, sales, advertising, and
technology and mechanism in their product to provide more limited market size, the growth is also limited. customer relations. This structure is fairly common because it
satisfaction to customers than before. This improves quality INTERNATIONAL MARKETING - • International Marketing is works well for small businesses with centralized marketing
of life and makes life of consumers easier than before. 7. when the marketing practices are adopted to cater the global operations. In large firms with decentralized marketing
Employment Opportunities: Marketing process is a market. • Normally, the companies start their business in the operations, a functional organization can raise severe
combination of different activities like research work to home country, after achieving the success they proceed their coordination problems. 2. Product Organization : For an
assess the marketing environment, product planning and business to another level and become a transnational organization that produces and markets diverse products, the
development, promotion, distribution of product to company, where they seek to enter in the market of several functional approach may be inadequate. The decisions and
customers and after sales service. Marketing process requires countries. • So, the company must be known about the rules problems related to a single marketing function for one
researcher, production engineer, different distribution and regulations of that country. • International marketing product may differ from those related to the same marketing
function for another product. For this reason, organizations consumers’ wants and needs • Inelastic demand- The prices factors there are 4 important things affecting the consumer
that produce diverse products sometimes organize their in these markets do not affect the demands as they do not buying behaviour, i.e. perception, motivation, learning,
marketing department according to product groups. In this change much • Quick fluctuation in demand- Since beliefs and attitudes. 6. Social Factors : Social factors include
type of organization, a product manager takes full businesses prefer to buy sat the lowest prices, an increase in reference groups, family, and social status. These factors too
responsibility for marketing a product or product group. prices decreases the products purchases since high price affect the buying behaviour of the consumer. These factors in
selling products do not sell well in the market. turn reflect an endless and vigorous inflow through which
people learn different values of consumption. 7. Cultural
Factors : Cultural factors have a subtle influence on a
3. Regional Organization : A large firm that markets products consumer’s purchasing decision process. Since each
nationally and possibly in foreign countries may organize its individual lives in a complex social and cultural environment,
marketing activities by geographic regions. This organization’s the kinds of products or services they intend to use can be
form is especially effective for a company whose customers’ What are Consumer Markets? - This is a market whereby directly or indirectly be influenced by the overall cultural
characteristics and needs vary greatly from one geographic businesses or producers sell their products or services context in which they live and grow.
area to another. The company has a complete marketing staff directly to the final consumers. Marketing in consumer
at its headquarters to provide assistance and guidance to markets involves dividing the consumers into markets and CONSUMER ADOPTION PROCESS - The consumer Adoption
regional marketing managers. 4. Customer Type targeting them according to their likes, interests, dislikes, Process is a constant marketing tool, which has different
Organization: Sometimes the marketing department is values and opinions. Characteristics of consumer markets stages to get itself completed. These stages of the Consumer
organized according to types of customers, as shown in the include; • Demographic characteristics- This is the foundation Adoption Process are discussed as under: 1. Product
figure This form of internal organization works well for a firm for understanding consumers and include ethnicity, age, Awareness: Introducing a product in the market and creating
with several groups of customers whose needs and problems income, gender, occupation, religion, nationality, social class, awareness for that product is the first stage of the Consumer
are different. For example, an appliance manufacturer may education and social class. • Behavioristic characteristics- Adoption process. Companies invest a lot in creating an
sell appliances to large retail stores, wholesalers, and These include consumer interests in a product such as how avenue for informing the consumer and customer. Creating
organizations. MARKETING CONTROL TECHNIQUES – Annual they intend to use it. • Psychographic characteristics- This Product or Brand Awareness is very important for the success
Plan Control: In this method, annul plans are prepared for entails the kind of lifestyle the customer lives, their interest, of the entire business. 2. Product Interest: During this phase
various activities. Each plan includes setting objectives opinions and attitudes as well as personal values. • of the adoption process, the consumer becomes more aware
(expected results or standards), allocating resources, defining Geographic characteristics- This is information regarding and informed about the product itself, the value the product
time limit, and formulating rules, policies and procedures. where the consumer lives. It includes the climate, religion or delivers, its unique feature and the manufacturer of the
Annual plan control relates to sales. Periodically (mostly how densely populated the geographical area is. BUYING product. Creating and maintaining the interest of the
annually) the actual results are measured and compared with ROLES - 1. Initiator : First identifies the need to buy a customer is very necessary for the companies. This is why the
standards to judge whether annual plans are being (or have particular product or service to solve an organisational marketers use those promotional channels which are easily
been) achieved. Depending on the degree of difference problem. In our family’s case, nutrition is a long-established accessible to the targeted market. 3. Product Evaluation: The
between the planned and the actual results, causes are need identified by their homosapien forefathers simply for process of consumer examination, comparison and
detected and suitable corrective actions are undertaken. survival. 2. Influencer : Their views influence the buying evaluation of the product before making a purchase decision
Thus, it contains checking ongoing performance against centre’s buyers and deciders. This is where the children come comprises of Stage 3 in the Adoption Process. Consumer
annual plan and taking corrective action. Following measures into play, and place huge pressure on their parents, through behavior varies in intensity according to the need, the price
are used in annual plan control: 1. Analysis of Different Sales. the desire to secure a toy and to gain acceptance and of the product, features of the product and the value that the
2. Analysis of Market Share. 3. Analysis of Market Expenses- equality with their peers. 3. Decider : Ultimately approves all product delivers. 4. Product Trial: In this phase of the
or any part of the entire buying decision, whether to buy, Consumer Adoption Process the consumer use the product
to-Sales. 4. Financial Analysis. 5. Analysis of Customer and what to buy, how to buy and where to buy. In our case, the on a trial basis. Trying out the actual product gives the
Stakeholder Attitudes. 6. Measuring Customers’ Attitudes. 7. first parent to succumb to the child’s pressure. 4. Buyer : consumer the idea of the product and its benefits. The trail is
Measuring Stakeholders’ Attitudes. Profitability Control: In Holds the formal authority to select the supplier and to the most important stage as the entire product acceptance
this method, the base of exercising control over marketing arrange terms of condition. The parent that pays for the and rejection depends upon the trial phase. 5. Product
activities is the profitability. Certain profitability (and meal. 5. User : Consumes or uses the product or service. Adoption: The consumer is ready to adopt the product which
expenses) related standards are set and compared with Generally the whole family. 6. Gatekeeper : Controls means that he is ready to actually spend the money on the
actual profitability results to find out how far company is information or access (or both) to decision-makers and product. The Adoption phase is the most critical stage in the
achieving profits. Profitability control calls for measuring influencers. This is where the government comes into action, whole process as the companies need the consumers to
profitability of various products, channels, territories, or at present provides a lack of action. Equally responsible is accept the product and complete adopt it. The company
customer groups, order size, etc. It provides necessary the Advertising Federations that take the government’s self- needs to ensure availability, quality, ease and accessibility of
information to management to determine whether products, regulation requirement and conveniently allow fast–food the product to the consumer. CHANGING PATTERN OF
channels, or territories should be expanded, reduced, or marketing to continue. STEPS INVOLVED IN BUYING CONSUMER BEHAVIOUR - Today organizations need a deep
eliminated.- Process of Marketing-Profitability Analysis: 1. PROCESS- 1. Problem/need recognition : This is often insight into consumer behaviour and its changing patterns in
Identifying Functional Expenses. 2. Assigning Function identified as the first and most important step in the order to survive in the market place. Large organizations have
Expenses to Marketing Entities. 3. Preparing Profits and Loss customer’s decision process. A purchase cannot take place highly trained individuals recruited to collect information
statement. 4. Taking Action. Strategic Control: Strategic without the recognition of the need. The need may have about the consumer’s constantly changing needs and trends
control implies a critical review of overall marketing been triggered by internal stimuli. 2. Information search : so that they can get focused on what is required by
effectiveness in relation to broad and long-term objectives Having recognised a problem or need, the next step a consumer; so that they can cater those needs as accurately
and firm’s response to marketing environment. It deals with customer may take is the information search stage, in order and efficiently as possible . Each customer has his unique
assessing firm’s ability to define and achieve marketing goals, to find out what they feel is the best solution. This is the buying habits, while buying behavior patterns are collective
and response pattern to environment. Normally, strategic buyer’s effort to search internal and external business and offer marketers a unique characterization. Customer
control verifies company’s long-term performance with environments, in order to identify and evaluate information behavior patterns can be grouped into: 1. Place of purchase :
reference to the close competitors. Here, entire marketing sources related to the central buying decision. 3. Evaluation Most of the time, customers will divide their purchases
system is reviewed to judge firm’s overall strengths and of alternatives : As you might expect, individuals will between several stores even if all items are available in the
weaknesses. It answers the question: How far is the firm evaluate different products or brands at this stage on the same store. Think of your favorite hypermarket: although you
capable to exploit emerging marketing opportunities and face basis of alternative product attributes – those which have the can find clothes and shoes there as well, you’re probably
challenges and threats? - Methods or Tools: 1. The Marketing ability to deliver the benefits the customer is seeking. A buying those from actual clothing brands. 2. Items purchased
Effectiveness Review. 2. The Marketing Audit. 3. The factor that heavily influences this stage is the customer’s : Analyzing a shopping cart can give marketers lots of
Marketing Excellence Review . 4. The Ethical and Social attitude. Involvement is another factor that influences the consumer insights about the items that were purchased and
Responsibility Review. CONSUMER BEHAVIOUR - Consumer evaluation process. 4. Purchase decision : The penultimate how much of each item was purchased. Necessity items can
behaviour is the study of how individual customers, groups or stage is where the purchase takes place. Philip Kotler (2009) be bought in bulk while luxury items are more likely to be
organizations select, buy, use, and dispose ideas, goods, and states that the final purchase decision may be ‘disrupted’ by
services to satisfy their needs and wants. It refers to the two factors: negative feedback from other customers and the purchased less frequently and in small quantities. 3. Time
actions of the consumers in the marketplace and the level of motivation to accept the feedback. 5. Post-purchase : and frequency of purchase : Customers will go shopping
underlying motives for those actions. Marketers expect that behaviour In brief, customers will compare products with according to their feasibility and will expect service even
by understanding what causes the consumers to buy their previous expectations and will be either satisfied or during the oddest hours; especially now in the era of e-
particular goods and services, they will be able to determine dissatisfied. Therefore, these stages are critical in retaining commerce where everything is only a few clicks away. 4.
—which products are needed in the marketplace, which are customers. This can greatly affect the decision process for Method of purchase : A customer can either walk into a
obsolete, and how best to present the goods to the similar purchases from the same company in the future, store and buy an item right then and there or order online
consumers. The study of consumer behaviour assumes that having a knock-on effect at the information search stage and and pay online via credit card or on delivery. The method of
the consumers are actors in the marketplace. The per- evaluation of alternatives stage. FACTORS THAT INFLUENCE purchase can also induce more spending from the customer.
spective of role theory assumes that consumers play various THE BUYING DECISION - 1. Economic Factor: The most MARKETING RESEARCH AND SELECTING THE TARGET
roles in the marketplace. Starting from the information important and first on this list is the Economic Factor. This MARKETS - Marketing Information System - A marketing
provider, from the user to the payer and to the disposer, one is the main foundation of any purchasing decision. The information system (MIS) is a set of procedures and methods
consumers play these roles in the decision process. What are reason is simple people can’t buy what they can’t afford. The designed to generate, analyze, disseminate, and store
a Business Markets? - Business markets refer to need of a product also doesn’t play a role here, but the most anticipated marketing decision information on a regular,
organizations, businesses or entities that acquire products important thing is affordability. 2. Functional Factor : The continuous basis. An information system can be used
and services for use in the production of other services and factor is totally about needs, backed by a logic that what operationally, managerially, and strategically for several
products. These include goods that are supplied, sold or makes sense and also fits in the best interest of the customer. aspects of marketing. A marketing information system can be
rented to others. Among major players in business markets This one factor also plays a very important role in the buying used operationally, managerially, and strategically for several
include fisheries, agriculture, mining, transportation, decision. 3. Marketing Mix Factors : There are 4 components aspects of marketing management. - Marketing Information
construction, mining, communication, finance, distribution in the marketing mix, i.e. product, pricing, promotion and should not be approached in an infrequent manner. If
and insurance services. Characteristics of business markets place of distribution and each of these components have a research is done this way, a firm could face these risks: - •
include; • Presence of fewer but larger buyers- While the direct or indirect impact on the buying process of the Opportunities may be missed. • There may be a lack of
buyers may be few, they often buy in large quantities • consumers. 4. Personal Factors : The personal factors include awareness of environmental changes and competitors’
Geographically concentrated customers- Customers in these age, occupation, lifestyle, social and economic status and the actions. • Data collection may be difficult to analyze over
markets are at vast geographical locations • Final customer gender of the consumer. These factors can individually or several time periods. • Marketing plans and decisions may
demand-driven- Since production is tailored for the final collectively affect the buying decisions of the consumers. 5. not be properly reviewed. • Data collection may be
consumer, the products are tailored towards the final Psychological Factor : When it comes to the psychological disjointed. • Previous studies may not be stored in an easy to
use format. • Time lags may result if a new study is required. different territorial sales demands are collected to forecast company X uses this strategy when it produces a typical
• Actions may be reactionary rather than anticipatory. - AN the demand of a product. Then individual territory demand is product for a single type of market like plasma TV. In real life,
MARKETING INFORMATION SYSTEM OFFERS MANY combined to produce a final report of the market demand. companies like Allahabad Law Agency (only law books) and
ADVANTAGES - 1) Organized Data collection 2) A broad SALES FORECASTING - Sales forecasting is the process of BPB publications (only Computer books) are good examples.
perspective 3) Storage of Important 4) Avoidance of Crisis 5) estimating future revenue by predicting the amount of 2. Selective Segment Specialisation: This is known as
Co-ordination 6) Analysis and Planning 7) Control. – product or services a sales unit will sell in the next week, multistage coverage because different segments are sought
DISADVANTAGES- Maintenance, complexity and setting up a month, quarter, or year. At its simplest, a sales forecast is a to be captured by the company. The company selects a
MIS are one of the major hindrances to Marketing projected measure of how a market will respond to a number of segments each of which is attractive, potential and
information systems. Furthermore, wrong information being company’s go-to-market efforts. Why is sales forecasting appropriate. There may be little or no synergy among the
fed in MIS can become cumbersome and appropriate filters important? - Forecasts are about the future. It’s hard to segments, but this strategy has the advantage of diversifying
need to be established. The disadvantages of a Marketing overstate how important it is for a company to produce an the firm’s risk. 3. Market Specialisation: Here the company
information system are high initial time and labor costs and accurate sales forecast. Privately-held companies gain takes up a particular market segment for supplying all
the complexity of setting up an information system. confidence in their business when leaders are able to trust relevant products to the target group. In our example, the
Marketers often complain that they lack enough marketing forecasts. For publicly-traded companies, accurate forecasts company X can implement Market Specialisation strategy by
information or the right kind, or have too much of the wrong confer credibility in the market. Sales forecasting adds value producing all sorts of home appliances like TV, washing
kind. across an organization. Finance, for example, relies on machine, refrigerator and micro oven for middle class people.
forecasts to develop budgets for capacity plans and hiring. 4. Product Specialisation: Product specialisation occurs when
MARKET RESEARCH - • Market research is defined as the Production uses sales forecasts to plan their cycles. Forecasts a company sells certain products to several different types of
process of evaluating the feasibility of a new product or help sales ops with territory and quota planning, supply chain potential customers. In our example, if the company X
service, through research conducted directly with potential with material purchases and production capacity, and sales produces only a particular type of gizmo like toaster that is
consumers. • This method allows organizations or businesses strategy with channel and partner strategies. MARKET consumed by all type of people, they we can say that the
to discover their target market, collect and document SEGMENTATION - Market segmentation is a marketing term company uses Product Specialisation strategy. 5. Full
opinions and make informed decisions. • Market research that refers to aggregating prospective buyers into groups or Coverage: The company attempts to serve all customer
can be conducted directly by organizations or companies or segments with common needs and who respond similarly to groups with all the products they might need. Only very large
can be outsourced to agencies which have expertise in this a marketing action. Market segmentation enables companies firms can undertake a full market coverage strategy that can
process. • The process of market research can be done to target different categories of consumers who perceive the be done in 2 ways. EFFECTIVE MARKET SEGMENTATION - i.
through deploying surveys, interacting with a group of people full value of certain products and services differently from Measurable and Obtainable: The size, profile and other
also known as sample, conducting interviews and other one another. Companies can generally use three criteria to relevant characteristics of the segment must be measurable
similar processes. • Primary purpose of conducting market identify different market segments: • Homogeneity, or and obtainable in terms of data. ii. Relevant: The size and
research is to understand or examine the market associated common needs within a segment • Distinction, or being profit potential of a market segment have to be large enough
with a particular product or service, to decide how the unique from other groups • Reaction, or a similar response to to economically justify separate marketing activities for this
audience will react to a product or service. • The information the market. The 4 types of market segmentation - 1. segment. If a segment is small in size then the cost of
obtained from conducting market research can be used to Demographic segmentation: The who Demographic marketing activities cannot be justified. iii. Accessible: The
tailor marketing/ advertising activities or to determine what segmentation might be the first thing people think of when segment has to be accessible and servable for the
are the feature priorities/service requirement (if any) of they hear ‘market segmentation’. This is perhaps the most organisation. That means, the customer segments may be
consumers. Why is market research important? - • Valuable straightforward way of defining customer groups, but it decided considering that they can be accessed through
information: It provides information and opportunities about remains powerful. Demographic segmentation looks at various target-group specific advertising media such as
the value of existing and new products, thus, helping identifiable non-character traits such as: • Age • Gender • magazines or websites the target audience likes to use. iv.
businesses plan and strategize accordingly. • Customer- Ethnicity • Income • Level of education • Religion • Substantial: The segments should be substantial to generate
centric: It helps to determine what the customers need and Profession/role in a company. 2. Psychographic required returns. Activities with small segments will give a
want. Marketing is customer-centric and understanding the segmentation: Psychographic segmentation is focused on biased result or negative results. v. Valid: This means the
customers and their needs will help businesses design your customers’ personalities and interests. Here we might extent to which the base is directly associated with the
products or services that best suit them. • Forecasts: By look at customers and define them by their: • Personality differences in needs and wants between the different
understanding the needs of customers, businesses can also traits • Hobbies • Life goals • Values • Beliefs • Lifestyles. 3. segments. vi. Unique or Distinguishable or Differentiable: The
forecast their production and sales. Market research also Geographic segmentation: The where By comparison, market segments have to be that diverse that they show
helps in determining optimum inventory stock. • Competitive geographic segmentation is often one of the easiest to different reactions to different marketing mixes. If not then
advantage: To stay ahead of competitors market research is a identify, grouping customers with regards to their physical there would have been no use to break them up in segments.
vital tool to carry out comparative studies. Businesses can location. This can be defined in any number of ways: • vii. Appropriate: The segments must be appropriate to the
devise business strategies that can help them stay ahead of Country • Region • City • Postal code. 4. Behavioural organisation’s objectives and resources. viii. Stable: The
their competitors. Types of Market Research - 1. Primary segmentation: The how Behavioural segmentation is possibly segments must be stable so that its behaviour in the future
Market Research: Exploratory and Specific / Focus groups / the most useful of all for e-commerce businesses. As with can be predicted with a sufficient degree of confidence. ix.
One-to-one interview / Ethnographic research . 2. Secondary psychographic segmentation, it requires a little data to be Congruous: The needs and characteristics of each segment
Market Research: Public sources / Commercial sources / truly effective – but much of this can be gathered via your must be similar otherwise the main objective of
Educational Institutions. DEMAND FORECASTING - Demand website itself. Here we group customers with regards to segmentation will not be served. x. Actionable or Feasible: It
forecasting is an assumption of demand in future. By using their: • Spending habits • Purchasing habits • Browsing habits has to be possible to approach each segment with a
demand forecasting, a company makes suitable plans for • Interactions with the brand • Loyalty to brand • Previous particular marketing programme and to draw advantages
upcoming challenges or demands and takes suitable action to product feedback. What is Targeting? - Targeting is the from that. xi. Some general considerations: Apart from the
tackle that them. - Demand forecasting can be divided into process through which an advertiser identifies its target above-mentioned characteristics, the segment must have
the following two major types - Short run forecasting − is audience and then advertises to them through a variety of some other features: i. Growth potential ii. Profitable iii. Less
made to fulfill short-term targets, like preparation of suitable channels. By constructing the right user persona, risk prone iv. Less competition intensive . MARKET
sales policies to increase the sales or proper planning for understanding user habits and finding the right platforms to TARGETING - Market targeting is a process of selecting the
inventory as per the required demand. Long run forecasting − reach them, an advertiser uses targeting to improve the target market from the entire market. Target market consists
is assumption made for long-term targets like planning of performance of their campaigns. Targeting Important - There of group/groups of buyers to whom the company wants to
capital or assets. Steps in Demand Forecasting - • Identifying are many advantages of targeting in marketing, such as satisfy or for whom product is manufactured, price is set,
the most relevant method for forecasting. • Predicting improved advertising performance across the user acquisition promotion efforts are made, and distribution network is
factors involved, which affect the demand of the product. • cycle. While targeting is seen as a way of increasing prepared. It involves basically two actions – evaluation of
Acquiring the data about the factors that affect demand. • interaction rates with advertisements, it should also improve segments and selection of the appropriate market segments.
Finding the most suitable relation among independent other metrics further down the funnel, like retention and In this relation, market targeting can be defined as: Market
variables and dependent variables. • Preparing the demand monetization. This has a number of positive effects for an app targeting is an act of evaluating and selecting market
forecast and analyzing the results. The tools or methods used business. It increases the likelihood that the right types of segments. Procedure of Market Targeting - 1. Evaluating
to forecast demand are of the following two types – 1. users for a particular app will install it, and that they will Market Segments: Evaluation of market segments calls for
Quantitative : Techniques These techniques are used for perform in a way that you want them to. It also makes it measuring suitability of segments. The segments are
both short run and long run forecasting; however, for short more likely that other benefits of a positive user experience evaluated with certain relevant criteria to determine their
and long run forecasting, this method can further be sub occur. What is Market Positioning? Market Positioning refers feasibility. 2. Selecting Market Segments: When the
divided as per forecasting type. The following are the tools to the ability to influence consumer perception regarding a evaluation of segments is over, the company has to decide in
for short-run forecasting − • Moving Average Method: This brand or product relative to competitors. The objective of which market segments to enter. That is, the company
method is used to plot a trend in the demand. In this, average market positioning is to establish the image or identity of a decides on which and how many segments to enter. This task
demand of different time frame is taken (for example, 2 brand or product so that consumers perceive it in a certain is related with selecting the target market. METHODS OF
years, 3years, etc.) for getting an assumption of future way. For example: • A handbag maker may position itself as a POSITIONING IN MARKETING. - • Pricing : Pricing is an
demand. • Exponential Smoothing Method : This method is luxury status symbol • A TV maker may position its TV as the essential factor that impacts the decisions of most customers.
mostly used for short-term forecasting. It is derived from most innovative and cutting-edge • A fast-food restaurant Companies with the lowest-priced products at a reasonable
moving average and modified. It is based on weighted chain may position itself as the provider of cheap meals. level of quality usually wins in many product areas. • Quality :
averaged of observed value. It smoothens the trend where Types of Positioning Strategies- • Product attributes and Quality can help rebuff most pricing wars. In some markets,
weighted value remains between 0 and 1. • Time Series benefits: Associating your brand/product with certain such as luxury cosmetics or cars, quality can define who the
Analysis : Time series analysis is commonly used for long characteristics or with certain beneficial value • Product competitors are. • Differentiation: Differentiation is what
term demand forecasting. • Econometrics Method : This price: Associating your brand/product with competitive sets your product or service apart from the crowd. If your
method for demand forecasting is an analytical method. In pricing • Product quality: Associating your brand/product product or service is dramatically different, rivals may not
this method, different methods of economics and with high quality • Product use and application: Associating pose as much of a threat. • Convenience : Convenience
mathematics are used to forecast the demand. 2. Qualitative your brand/product with a specific use • Competitors: creates an easier life for customers. From location to
Techniques :- • Buying Intention Survey Method : In buying Making consumers think that your brand/product is better usability, convenience could incorporate something like free
intention survey method, the survey is conducted on the than that of your competitors. LEVELS OF MARKET returns and E-commerce. • Customer service : Customer
product; several questions regarding the product are SEGMENTATION – 1. Mass Marketing or Undifferentiated service emphasizes creating helpful and friendly interactions.
formulated. The participants are asked for reviewing/rating Marketing. 2. Product-Variety Marketing or Differentiated This can be especially critical in specific industries, such as
the product based on different criteria like taste, preference, Marketing. 3. Concentrated Marketing or Niche Marketing. 4. restaurants and banking areas. • User group : This type of
cost, expectation, etc. These reviews are summarized and a Micro Marketing. PATTERNS OF SEGMENTATION - 1. Single positioning targets a particular group of users and explains
report is prepared for consumer demand of the product. • Segment Concentration: In this case, the marketer prefers to why the company’s offerings are directly applicable and
Sales Force Opinion Method: In sales force opinion method, go for single segment. In our hypothetical example, the relevant to this group. POSITIONING STRATEGY - 1) Using
Product characteristics or Buyer Benefits as a positioning : number of brainstormed ideas. 4. Concept Testing – Structure competitors who make similar products. • This is done by
This strategy basically focuses upon the characteristics of the an idea into a detailed concept. 5. Business Analysis – generating awareness through campaigns that speak to
product or customer benefits. For example if I say Imported Understand the cost and profits of the new product and targetconsumer values, delivering on promises and
items it basically tell or illustrate a variety of product determining if they meet company objectives. 6. Product qualifications when consumers use the product, and loyalty
characteristics such as durability, economy or reliability etc. Development – Developing the sample, this involves the and retention efforts. • By offering consumers loyalty
2) Pricing as a positioning : Quality Approach or Positioning putting together of ideas and materials to form a testing incentives such as points that can be exchanged for discounts
by Price-Quality. 3) Positioning based on Use or Application : product to the market. 7. Market Testing – Marketing mix is or a free product on their birthday, they are more likely to
Lets understand this with the help of an example like Nescafe tested through a trial run of the product. 8. continue to purchase from your brand rather than moving on
Coffee for many years positioned it self as a winter product Commercialization – Introducing the product to the public. 9. to a competitor. • How to Build Brand Equity - Understand
and advertised mainly in winter but the introduction of cold Evaluation – Involves research to monitor the progress of Your Why - Test your Messaging - Drive Awareness - Maintain
coffee has developed a positioning strategy for the summer new service offering in relation to organizational goals. Consistency - Customer Experience . BRANDING STRATEGIES
months also. 4) Positioning strategy based on Product PACKAGING - Packaging is the science, art, and technology of – 1. Personal Branding : Personal branding describes
Process : Another positioning approach is to associate the enclosing or protecting products for distribution, storage, branding that is used for an individual person, instead of
product with its users or a class of users. Makes of casual sale, and use. Packaging also refers to the process of design, branding for a whole business. This type of branding is often
clothing like jeans have introduced ‘designer labels’ to evaluation, and production of packages. In short, Packaging used to establish a person’s character, personality, or work as
develop a fashion image. 5) Positioning based on Product can be described as a coordinated system of preparing goods a brand. 2. Product Branding : This is one of the most
Class : In some product class we have to make sure critical for transport, warehousing, logistics, sale, and end use. popular branding types. Product branding focuses on making
positioning decisions. 6) Positioning based on Cultural Packaging contains, protects, preserves, transports, informs, a single product distinct and recognizable. Symbols or designs
Symbols In today’s world many advertisers are using deeply and sells, in many countries it is fully integrated into are an essential part of product branding to help your
entrenched cultural symbols to differentiate their brands government, business, and institutional, industrial, and customers identify your product easily. 3. Corporate
from that of competitors. personal use. The following materials are generally used for Branding : Corporate branding is a core value of business
packaging: (i) Wood (ii) Metals (iii) Plastics (iv) Paper (v) Glass and a philosophy that a business develops to present itself to
(vi) Polyester. the world and its own employees. 4. Service Branding :
Service branding leverages the needs of the customer.
PRODUCT AND PRICING DECISIONS - CONCEPT OF PRODUCT Companies that use service branding seek to provide their
- A product is something that is manufactured for sale in the customers with world-class service. They aim to use excellent
market. Customer needs are met by the usage of products. The objectives of packing and packaging - 1. To Provide customer service as a way to provide value to their
Product is one of the main components of marketing—all Physical Protection 2. To Enable Marketing 3. To Convey customers.
marketing activities revolve around the product. Products can Message 4. To Provide Convenience 5. To Provide
be tangible or intangible. Tangible products are known as Containment or Agglomeration 6. To Provide Portion Control 5. Co-Branding : Co-branding is a form of branding that
goods while intangible products are called services. Product 7. To Enable Product Identification 8. To Enhance Profits 9. To connects companies together. Essentially, co-branding is a
refers to a good or service that satisfies the needs and wants Enable Self-Service Sales 10. To Enhance Brand Image. marketing partnership between two or more businesses. This
of customers. It is offered in the market by an organization to LABELLING - Labelling is a part of branding and enables helps brands impact each other positively, and it may result
earn revenue by meeting the requirements of customers. product identification. It is a printed information that is in one growing its business, spreading brand awareness, and
Product is an asset of an organization and referred as the bonded to the product for recognition and provides detailed breaking into new markets. 6. Online Branding : Online
backbone of marketing mix. According to Peter Drucker, information about the product. Customers make the decision branding, also known as internet branding, helps businesses
“Suppliers and especially manufacturers have market power easily at the point of purchase seeing the labelling of the to position themselves as a part of the online marketplace.
because they have information about a product or a service product. Types LABELLING - 1. Brand label: It plays an This type of branding includes a company’s website, social
that the customer does not and cannot have, and does not important role in labelling as it gives information about the media platforms, blogs, and other online content. 7. No-
need if he can trust the brand. This explains the profitability brand. It can be removable or non-removable. 2. Descriptive Brand Branding : This type of branding is also known as
of brands.”- Features of a Product - i. Tangibility ii. Intangible label: It specifies product usage. 3. Grade label: It describes minimalist branding. These brands are often generic brands
Attributes iii. Associated Attributes iv. Exchange Value v. the aspect and features of the product. functions of that seek to let their products speak for themselves without
Customer Satisfaction. PRODUCT MIX - The product mix is a labelling- 1. Defines the product and its contents: A label is all the extras many others provide their consumers with.
combination of products manufactured or sold by the same informative about the product’s usage and caution to be PRODUCT LIFE CYCLE STAGES - 1. Introduction : Once a
organization. Generally companies offer an assortment of taken while using the product. 2. Recognition of product: product has been developed, the first stage is its introduction
related or unrelated products to the markets instead of Labeling assists in the identification of the product 3. stage. In this stage, the product is being released into the
focusing on a single product to strengthen their presence in Assorting of products: It means classification or grading of market. When a new product is released, it is often a high-
the market and increase profitability. Smaller or medium products according to different categories in the market. 4. stakes time in the product's life cycle - although it does not
firms usually offer products that are related to each other Assists promotion of products: It gives the customer the necessarily make or break the product's eventual success.
while bigger ones go for large scale diversification. .- The reason to purchase the product. 5. In compliance with the During the introduction stage, marketing and promotion are
product mix includes both product lines and product items. - law: Labels should strictly abide by the law. Example, for at a high - and the company often invests the most in
(i) Product Line: Product line is a group of products that are tobacco, the label should mention ‘Tobacco is injurious to promoting the product and getting it into the hands of
closely related either because they satisfy a class of need, or health’. Cigarettes also should have ‘Smoking is injurious to consumers. 2. Growth : By the growth stage, consumers are
used together, are sold to the same customer group, are health’ as the statutory warning on its package. BRANDING - already taking to the product and increasingly buying it. The
marketed through the same types of outlets, or fall within Branding is the process of communicating a unique selling product concept is proven and is becoming more popular -
given price ranges or that are considered a unit because of proposition, or differential, that sets a product or service and sales are increasing. Other companies become aware of
marketing, technical, or end-use considerations. For example, apart from the competition. Examples of branding techniques the product and its space in the market, which is beginning to
The Sunsilk range of shampoos and conditioners constitute a include the use of logos, taglines, jingles or mascots. draw attention and increasingly pull in revenue. If
product line. (ii) Product Item: It is a distinct unit within the CONCEPT OF BRANDING 1. Brand loyalty 2. Brand experience competition for the product is especially high, the company
product line that is separate from others on basis of colour, 3. Brand architecture 4. Brand equity 5. Brand awareness 6. may still heavily invest in advertising and promotion of the
size, price or other attributes. For example, Sunsilk Thick and Brand extension 7. Brand engagement 8. Brand product to beat out competitors. 3. Maturity : When a
Long shampoo is a product unit distinguishable from other rationalisation 9. Brand energy . BRAND TYPES- 1. Personal product reaches maturity, its sales tend to slow or even stop -
items in the product range. PRODUCT LINE - A product line is Brand : Personal brands are those individual brands people signaling a largely saturated market. At this point, sales can
a group of related products all marketed under a single brand build around them. However, most experts don’t believe even start to drop. Pricing at this stage can tend to get
name that is sold by the same company. Companies sell these should be called brands at all, as more often than not, competitive, signaling margin shrinking as prices begin falling
multiple product lines under their various brand names, they’re not related to a specific business model. 2. Product due to the weight of outside pressures like competition or
seeking to distinguish them from each other for better Brand : In order to sell goods and commodities, businesses lower demand. 4. Decline Although companies will generally
usability for consumers. Companies often expand their have to work on their product brands. These are brands that attempt to keep the product alive in the maturity stage as
offerings by adding to existing product lines because consist of emotions and ideas that can be associated with a long as possible, decline for every product is inevitable. In the
consumers are more likely to purchase products from brands product. 3. Service Brand : Service brands are quite similar to decline stage, product sales drop significantly and consumer
with which they are already familiar. A company's blend of the previously mentioned product brands. The main behavior changes as there is less demand for the product.
product lines is known as its product mix or product portfolio. difference is that they focus on service rather than products The company's product loses more and more market share,
For example, a cosmetic company that's already selling a themselves, which means they are harder to develop. 4. and competition tends to cause sales to deteriorate.
high-priced product line of makeup (that might include Corporate Brand : We also call these brands organisational Marketing in the decline stage is often minimal or targeted at
foundation, eyeliner, mascara, and lipstick) under one of its brands, as they are closely related to the organisations that already loyal customers, and prices are reduced. STRATEGIC
well-known brands might launch a product line under the stand behind them. Fundamentally, these brands define MARKETING DECISIONS - • Pricing Review and Analysis: A
same brand name but at a lower price point. Product lines those organisations and reassure the consumers in the pricing review examines the current pricing policies and their
can vary in quality, price, and target market. Companies use quality and the service of the companies. 5. Investor Brand : appropriateness for the market and competitive
product lines to gauge trends, which helps them to If an investor brand is powerful, it will deliver share price environment. • Demand Estimation and Market Simulation:
determine which markets to target. NEW PRODUCT resilience and show a knowledgeable understanding of value. By examining customer preferences and decision processes,
DEVELOPMENT - A new product is a product that is new to 6. Non-Profit Brands or NGO Brand : Although NGO brands marketing activities, and sales channel behavior, a demand
the company introducing it even though it may have been are usually frowned upon in the non-profit community, these model is developed that can be used to predict how any
made in same form by others. In the area of toilet soaps, brands are still important because many are now competing firm's sales, market shares, and profits will vary with changes
different brands introduced by each company are that way, to get a bigger cut of the philanthropic pound. 7. Public Brand in price or another key attribute. • Competitor Analysis and
new products as it is new to the company. New products are : We also refer to these brands as government brands. Modeling: A competitor analysis will help you identify
those whose degree of change for customers is sufficient to Basically, these are brands related to the way the competitive threats and determine a product and pricing
require the design or re-design of marketing strategies. government is acting towards citizens and entities. 8. Activist policy that will both improve your market position while
Product development is the next step to product planning. Brand : These brands come with a purpose that’s always minimizing the risk of unprofitable competitive retaliation. •
Product development is the process of finding out the related to some social cause. However, they promote their Cost and Financial Analysis: A cost and financial analysis will
possibility of producing a product. It includes the decision as purpose so well that, more often than not, their consumers
to whether it would be feasible or not to produce the product opt for them because they’ve distinguished themselves in help you identify your true costs of doing business. • Channel
and whether it would be profitable or not for the enterprise their minds. BRAND EQUITY - • In marketing, brand equity is and Contributor Analysis: Market outcomes often are
to do so. Steps involved in new product development the level of sway a brand name has in the minds of determined by third parties which may include resellers,
process - 1. New Product Strategy – Innovators have clearly consumers, and the value of having a brand that is suppliers, strategic partners, and in some cases government
defined their goals and objectives for the new product. 2. identifiable and well thought of. • Organizations establish regulators. • Strategy Assessment: A strategy assessment
Idea Generation – Collective brainstorming ideas through brand equity by creating positive experiences that entice reviews the target market selection and the company's
internal and external sources. 3. Screening – Condense the consumers to continue purchasing from them over current and potential performance in serving those targets. •
Product Design Analysis: A product design analysis includes today’s age of competition. Advertising is one thing which has market. The three types of indirect channels are: (a) One-
estimating the importance of features to different market become a necessity for everybody in today’s day to day life, level channel : The one-level channel entails a product
be it the producer, the traders, or the customer. Advertising coming from a producer to a retailer and then to the end
segments and the likely impact on choice decisions. SERVICE is an important part. Lets have a look on how and where is buyer. The retailers buy the product from the manufacturer
MARKETING - Service marketing is a strategy which promotes advertising important: 1. Advertising is important for the and sell it to the end buyers. The one-level channel is ideal
and showcases the intangible benefits and offerings delivered customers 2. Advertising helps increasing sales 3. Advertising
by a company to drive end customer value. This can be for is important for the society. SALES PROMOTION- Sales for manufacturers of furniture, clothing items, toys, etc. (b)
standalone service offerings or complementary services to promotion is a set of marketing technologies aimed to Two-level channel : Wholesalers generally make bulk
tangible products. Service marketing is a concept which stimulate the demand in particular products and increase purchases, buy from the producer, and divide the goods into
focuses mainly on the business of non-physical intangible brand awareness. Limited in time, it creates a feeling of smaller packages to sell to retailers. The retailers then sell the
goods. It is done for company given benefits which cannot be timesensitiveness, generates new leads, and keeps existing goods to the end buyers. The two-level channel is suitable for
seen, touched, felt etc. These are benefits which are driven customers engaged. Benefits of Sales Promotion -It helps to more affordable and long-lasting goods with a larger target
mostly by people, process & cannot be kept by a customer. generate new leads -Allows re-engaging with your existing market. (c) Three-level channel : The three-level channel is
Sectors like hospitality, tourism, financial services, audience -Skyrockets revenue -Increases brand awareness. similar to the two-level channel, except the goods flow from
professional services etc. use service marketing to drive their Sales Promotion Objectives -Launch a new product -Attract the producer to an agent and then to a wholesaler. Agents
business. PRICING CONCEPTS - “Pricing is a managerial task new clients -Stay competitive -Make existing customers buy assist with selling the goods and getting the goods delivered
that involves establishing pricing objectives, identifying the more -Sell during off-season -Run clearance campaigns. Sales to the market promptly. PHYSICAL DISTRIBUTION - Physical
factors governing the price, ascertaining their relevance and Promotion Techniques- (1) Discounts. (2) Time-limited offers. distribution is an important marketing function describing the
significance, determining the product value in monetary (3) Seasonal promotions. (5) Holiday promotions. (6) Gifts. (7) marketing activities relating to the flow of Raw materials
terms and formulation of price policies and the strategies, Contests. (8) Reward points. PERSONAL SELLING- Personal from the suppliers to the factory and the movement of
implementing them and controlling them for the best selling is an act of convincing the prospects to buy a given finished goods from the end of production line to the final
results”. The main objectives of pricing - 1. To achieve target product or service. It is the most effective and costly consumer or User. Marketing agencies such as dealers,
rate of return on investment; 2. To stabilize prices; 3. To promotional method. It is effective because there is face to Merchants manage the flow of goods And perform the
maintain or improve share of the market; 4. To meet or face conversation between the buyer and seller and seller function of physical supply right up to the consumer’s homes
prevent competition; 5. To maximize profits; 6. To improve can change its promotional techniques according to the or stores. STEPS 1. Establish PDS Objectives: Customer
public image. needs of situation. It is basically the science and art of service as it relates to the physical distribution function
understanding human desires and showing the ways through consists of providing products at the time and location
which these desires could be fulfilled. Features of Personal corresponding to the customers’ needs. The customer service
Selling- i. It is a face to face communication between buyer levels that be provided may range from very good to very
and seller. ii. It is a two way communication. iii. It is an oral poor. A 100% level of satisfaction would indicate that all
communication. iv. It persuades the customers instead of customers are completely satisfied with product availability.
pressurizing him. v. It provides immediate feedback. vi. It 2. Examining Cost Trade Offs: The cost tradeoffs for physical
develops a deep personal relationship apart from the selling distribution components must be evaluated to determine
FACTORS INFLUENCING PRICE DECISIONS – (A) Internal relationship with the buyers and customers. how and to what extent each component will be utilised in
Factors: 1. Top Level Management. 2. Elements of Marketing the P.D.S. (i) Estimating customer service levels. (ii)
Mix. 3. Degree of Product Differentiation . 4. Costs. 5. PUBLICITY - “Publicity is any promotional communication Developing purchasing policies. (iii) Selecting transportation
Objectives of Company. 6. Stages of Product Life Cycle. 7. regarding an organisation and/or its products where the policies. (iv) Making warehousing decisions. (v) Setting
Product Quality. 8. Brand Image and Reputation in Market. 9. message is not paid for by the organisation benefiting from inventory levels. 3. Identify and Select Design Alternatives: A
Category of Product. 10. Market Share. (B) External Factors: key issue in designing the PPS is how to incorporate the
1. Demand for the Product. 2. Competition. 3. Price of Raw it.” Non-personal stimulation of demand for the product or customer service objective into the design process.
Materials and other Inputs. 4. Buyers Behaviour. 5. service, or business unit by placing commercially significant Management judgement and experience will often dictate a
Government Rules and Restrictions. 6. Ethical Consideration news about it in public medium or obtaining favourable range of customer satisfaction levels that are acceptable to
or Codes of Conduct. 7. Seasonal Effect . 8. Economic presentation of it upon radio, television, or stage that is not the firm. CHANNEL INTERMEDIARIES - Channel
Condition. PRICING STRATEGIES - • Penetration Pricing. • paid for by the sponsor.” Objectives of Publicity - 1. Building intermediaries are the external groups, individuals and
Economy Pricing. • Price Skimming. • Psychological Pricing. • Corporate Image 2. Economy 3. Assisting Middlemen and businesses that help a company deliver its products to
Product Line Pricing. • Optional Product Pricing. • Captive Salesmen 4. Information with High Creditability 5. Removing customers. They act as agents between the original creator of
Product Pricing. • Product Bundle Pricing. • Promotional Misunderstanding or Bad Image 6. Building Interest on the merchandise and the consumer who makes the last
Pricing. • Geographical Pricing. • Value Pricing. • Premium Product Categories 7. Newsworthiness Information. PUBLIC purchase. Companies need channel intermediaries in order to
Pricing. PROMOTION AND DISTRIBUTION DECISIONS - The RELATIONS - Public relations is a strategic communication deliver goods to their customers, making them a vital part of
term ‘PROMOTIONAL MIX’ is used to refer to the process companies, individuals, and organisations use to the distribution process. - Companies and product
combination of different kinds of promotional tools used by a build mutually beneficial relationships with the public. A manufacturers use channel intermediaries to deliver their
firm to advertise and sell its products. The main promotional public relations specialist drafts a specialised communication products to consumers without owning or being otherwise
tools or activities which make up promotion mix are personal plan and uses media and other direct and indirect mediums responsible for a supply train. With channel intermediaries,
selling, advertising, publicity and sales promotion. These are to create and maintain a positive brand image and a strong they can make a profit from their product before the final
also known as elements of promotion mix. A company’s total relationship with the target audience. Functions Of Public buyer purchases the item. These intermediaries provide
marketing communication mix also called promotion mix Relations- • Writing and distributing press releases. • logistic support and ensure that all buyers receive their
consists of specific blends of advertising, personal selling, Speechwriting. • Planning and executing special public products according to schedule. CHANNEL MANAGEMENT -
sales promotion, public relations and direct marketing tools outreach and media relations events. • Writing content for Channel management is a technique of choosing the best and
that the company use to pursue its advertising and marketing the web (internal and external websites). • Developing a most efficient channel partners and different routes to make
objectives. Scope of promotion mix- 1. Advertising. 2. crisis public relations strategy. • Handling the social media your products available in the market and to put various
Personal Selling. 3. Sales Promotion. 4. Public Relations and presence of the brand and responding to public reviews on efforts to obtain maximum results from these channels.
Publicity. 5. Other Selling Tools. Objectives for promotion social media websites. • Counselling the employees of the Separate channels for distribution should be selected based
mix: 1. Build Awareness 2. Create Interest 3. Provide organisation with regard to policies, course of action, on your customers. It would be best if you considered the
Information 4. Stimulate Demand 5. Reinforce the Brand. organisation’s responsibility and their responsibility. • buying pattern of your customers and their requirements.
INTEGRATED MARKETING COMMUNICATION - Integrated Dealing with government and legislative agencies on behalf Channel management can be defined as a process used by
Marketing Communications (IMC) is a concept under which a of the organisation. DIRECT MARKETING- Direct marketing is companies to direct and manage various marketing
company carefully integrates and coordinates its many a type of advertising campaign that seeks to achieve a techniques and the parties involved in the channel of
communications channels to deliver a clear and consistent specific action in a selected group of consumers (such as an distribution. The channel management process is used to
message. It aims to ensure the consistency of the message order, store or website visit, or a request for information) in reach a broad range of customers through different
and the complementary use of media. IMC is an integration response a communication action done by the marketer. This marketing and sales channels. Steps 1. Identification Of
of all marketing tools, approaches and resources within a communication can take many different formats, such as Sources 2. Preparing A Selection Criteria 3. Selection Of
company which maximizes impact on the consumer mind postal mail, telemarketing, point of sale, etc. One of the most Intermediaries 4. Providing Appropriate Training To The
resulting in maximum profit at minimum cost. It uses several interesting methods is direct email marketing. An essential Middlemen 5. Motivating Them Whenever Needed 6.
innovative ways to ensure that the customer gets the right aspect of direct marketing is that the consumer response is Assessment Of Intermediaries. What is wholesaling? -
message at the right place and right time. TOOLS - ➢ measurable: for example, if you offer a discount for an online Wholesaling is the process of selling goods to consumers such
Advertising. ➢ Sales promotion. ➢ Personal Selling. ➢ Public store, you should include some kind of cookie or pixel to let as retailers, industries, or any other entity in bulk quantities
Relations. ➢ Direct Marketing. ➢ Events and Experiences. ➢ you know if the user has used of the code. Benefits of Direct and at lower prices. A wholesaler buys products from the
Social Media Marketing. ➢ Mobile Marketing. ADVERTISING - Marketing • High segmentation and targeting. • Optimize manufacturer in huge lots, split them into smaller lots,
Advertising is any paid form of communication from an your marketing budget. • Upgrade your loyalty strategies. • repacks them further, and sold them to the next party. One
identified sponsor or source that draws attention to ideas, Create new business opportunities. • Tests and analyzes the key aspect of wholesaling is that it does not focus on the
goods, services or the sponsor itself. Most advertising is results. DISTRIBUTION CHANNEL- A distribution channel (also quality of goods; instead, it emphasizes quantity. This kind of
directed toward groups rather than individuals, and called a marketing channel) is the path or route decided by business does not require any publicity, marketing, or
advertising is usually delivered through media such as the company to deliver its good or service to the customers. advertisement. However, there is a considerable capital
television, radio, newspapers and, increasingly, the Internet. The route can be as short as a direct interaction between the investment required as the size of the company is large. Their
Ads are often measured in impressions (the number of times company and the customer or can include several business is entirely dependent on the clients they have.
a consumer is exposed to an advertisement). Advertising is a interconnected intermediaries like wholesalers, distributors, Customers of a wholesale business are spread in various
very old form of promotion with roots that go back even to retailers, etc. Functions of Distribution Channels • Sorting. • cities, towns, or even in different states. What is Retailing? -
ancient times. In recent decades, the practices of advertising Accumulation. • Allocation. • Assorting. • Product promotion. Retailing is the process of selling goods in smaller lots,
have changed enormously as new technology and media • Negotiation. • Risk taking. Types of Distribution Channels - without any purpose of further resale, to the end-customers.
have allowed consumers to bypass traditional advertising 1. Direct distribution channels : The direct distribution Retailers can typically be called the middleman between
venues. From the invention of the remote control, which channel does not make use of any intermediaries. The wholesalers and end-users, as they purchase goods in bulk
allows people to ignore advertising on TV without leaving the manufacturer or producer sells directly to the end consumer. from wholesalers and sell them further to buyers at higher
couch, to recording devices that let people watch TV The direct form of distribution is typically used by producers prices. The prices are comparatively higher in retailing
programs but skip the ads, conventional advertising is on the or manufacturers of niche and expensive goods and items because there are many additional costs in this kind of
wane. Across the board, television viewership has that are perishable. An example is a baker. 2. Indirect business. Expenses such as marketing costs, shipping and
fragmented, and ratings have fallen. Importance of distribution channels: The indirect distribution channel logistics costs, salary to employees, electricity expenses,
Advertising - Advertising plays a very important role in makes use of intermediaries in order to bring a product to warehousing costs are all included in the retail price of a
product. RETAIL MARKETING - Retail marketing refers to the focus not only on how products would benefit users but also
range of activities undertaken in the retail store by the on how they fulfill social responsibility and handle different
retailers as well as the brand to promote the products to the ethical issues. These affect consumers’ benefits and the
customers in order to generate awareness, interest, and benefits they take away from related environmental and
sales. In simple words, everything from the interior and social causes. It is a philosophy on top of strategy and is
exterior of the retail store, to in-store advertisements, instrumental to both the company and its consumers.
product placements, offers and promotions, and the Through ethical marketing, organizations deliberately apply
behaviour of store representatives comes under retail different sets of moral rights and fairness standards when
marketing. Example: Ikea is often cited as the best example of marketing their products and services, practices, and
implementing great retail marketing strategies. The company behavior in the overall structure. These organizations can
designs its stores as mazes to stop shoppers to leave the then develop a competitive advantage over time, thereby
store and end up buying more. Retail Marketing Importance satisfying the organization’s needs and customers. ethical
• Smart retail marketing strategies help the retailers enhance marketing is an integral part of the life of an organization: 1.
the customer’s journey in a retail store and make him Long-term gains 2. Customer Loyalty 3. Increased credibility
perceive that his money is spent on the right products. • A 4. Increased Leadership qualities 5. The satisfaction of basic
good retail shopping experience motivates the customers to human wants and needs 6. Display of a rich culture 7. The
buy a product even when they have no intention to do so. • attraction of the right talent at the right place 8. Reaching
Shopping from a branded retail store generates a feeling of financial goals 9. Enhancement of brand value in the market.
satisfaction and confidence among the customers. • Strategic
placements and strategic store design improves the
customer’s experience and help the retailers sell the products
which provide them with the most profits. • Purchasing
during limited period offers make the customers feel they
have achieved a great feat by saving money. EMERGING
TRENDS IN MARKETING - 1. Globalization 2. Changing
technology 3. Direct marketing 4. Service marketing 5.
Outsourcing 6. Quality marketing. SOCIAL MARKETING-
Social marketing is the systematic application of marketing
along with other concepts and techniques to achieve specific
behavioural goals for a social good. For example, this may
include asking people not to smoke in public areas, asking
them to use seat belts or prompting to make them follow
speed limits. The primary aim of social marketing is ‘social
good’, whereas in commercial marketing the aim is primarily
‘financial’. This does not mean that commercial marketers
cannot contribute to achievement of social good.
Applications of Social Marketing- 1. Promotes consumption
of socially desirable products. 2. Promotes health
consciousness in people and helps them adopt a healthier
lifestyle. 3. It helps in green marketing initiatives. 4. It helps
to eradicate social evils that affect the society and quality of
life. 5. Social marketing is one of the cheapest ways of
marketing.

DIGITAL MARKETING- Digital marketing is the use of the

Internet, mobile devices, social media, search engines, and
other channels to reach consumers. Some marketing experts
consider digital marketing to be an entirely new endeavor
that requires a new way of approaching customers and new
ways of understanding how customers behave compared to
traditional marketing. Digital Marketing Channels • Website
Marketing • Pay-Per-Click (PPC) Advertising • Content
Marketing • Email Marketing • Social Media Marketing •
Affiliate Marketing • Video Marketing • SMS Messaging.
GREEN MARKETING - Green marketing refers to the practice
of developing and advertising products based on their real or
perceived environmental sustainability. Examples of green
marketing include advertising the reduced emissions
associated with a product’s manufacturing process, or the
use of post-consumer recycled materials for a product's
packaging. Some companies also may market themselves as
being environmentallyconscious companies by donating a
portion of their sales proceeds to environmental initiatives,
such as tree planting. Benefits 1. Improves credibility 2. An
opportunity to enter a new market 3. Long-term growth 4.
Offers a Competitive edge 5. More room for innovation 6.
More profit 7. Good for the environment. RETRO
MARKETING • Use to sell present • Creating a brand identity
based on heritage or nostalgia • Retro target the young • For
example: reintroduction of wispa bar • Two kinds of retro
products: - genuine products - modern products.
MARKETING ANALYTICS- Marketing analytics is the study of
data garnered through marketing campaigns in order to
discern patterns between such things as how a campaign
contributed to conversions, consumer behavior, regional
preferences, creative preferences and much more. The goal
of marketing analytics as a practice is to use these patterns
and findings to optimize future campaigns based on what was
successful. Use Marketing Analytics- - Product Intelligence -
Customer Trends and Preferences - Product Development
Trends - Customer Support - Messaging and Media -
Competition - Predict Future Results. CURRENT
DEVELOPMENTS IN MARKETING- 1. More Emphasis on
Quality, Value, and Customer Satisfaction: 2. More Emphasis
on Relationship Building and Customer Retention: 3. More
Emphasis on Managing Business Processes and Integrated
Business Functions: 4. More Emphasis on Global Thinking and
Local Market Planning: 5. More Emphasis on Strategic
Alliances and Networks: 6. More Emphasis on Direct and
Online Marketing: 7. More Emphasis on Services Marketing:
8. More Emphasis on High-tech Industries: 9. More Emphasis
on Ethical Marketing Behaviour: 10. Other issues: ETHICS IN
MARKETING- Ethics in marketing involves the marketing
practices of promoting fairness, social responsibility,
empathy, and honesty by following ethical standards. From
marketing tactics to marketing decisions and advertising of
products and services, all the ethical marketing practices