Marketing Management: An ISO 9001:2000 Certified Organization

MCO-06
An ISO 9001:2000 Certified Organization
MARKETING
MANAGEMENT
BLOCK-I
UNIT-1
2 Presentation Title | December 7, 2021 | <document
Marketing Definition
• Activities necessary for:
– Planning and executing the
– conception (product), pricing, promotion and
distribution (place)
– of ideas, goods and services to
– create exchanges
– that satisfy individual and organizational
objectives
© Copyright PCTI Group 2009

Marketing Mgmt. Philosophies
1. Production
2. Sales
3. Marketing
4. Societal marketing
orientations

1. Production Orientation
• Focuses on internal capabilities of firm.

• “ Field of Dreams” strategy
– “If we build it, they will come”
• Best used when
– competition is weak
– demand exceeds supply
– generic products competing solely on price
• Problem is that they don’t understand
wants/needs of marketplace.

2. Sales Orientation
• People will buy more goods/services if
aggressive sales techniques are used.
• High sales will result in high profits.
• Used with unsought products
– life insurance
– encyclopedias
• Problem is that they don’t understand
wants/needs of marketplace.

3. Marketing Orientation
Marketing concept:
The social and economic justification for an
organization’s existence is the satisfaction of
customer wants and needs, while meeting
organizational objectives.

3. Marketing Orientation . . .
• Focusing on customer wants so the organization
can distinguish its products from competitors’ .
• Integrating all the organization’s activities,
including promotion, to satisfy these wants.
• Achieving long term goals for the organization by
satisfying customer wants and needs legally and
responsibly.

3. Marketing Orientation . . .
• Requires:
– Top management leadership
– A customer focus
– Competitor intelligence
• strengths
• weaknesses
– Interfunctional coordination to meet customer
wants/needs and deliver superior values.

4. Societal Marketing Orientation
• Organization exists not only to satisfy
customer wants/needs and to meet
organizational objectives, but also to
preserve and enhance individuals’ and
society’s long-term best interests.
• Extends marketing concept to serve
one more customer - society as a
whole.

Differences between Sales & Marketing
Orientations
Sales Focus Marketing Focus
• Organization’s needs • Customer’s needs
• Selling goods/services • Satisfying customer
wants/needs
• Specific groups of
• Everybody
people
• Profit through customer
• Profit through max. satisfaction
sales volume
• Coordinated mktg.
• Intensive promotion activities (4 p’s)

Relationship Marketing
• Forging long-term partnerships with customers
and contributing to their success.
• Companies benefit from
– repeat sales/referrals that lead to increases in sales,
market share and profits, and
– decreased costs - it’s less expensive to serve existing
customers than attract new ones.

3. Relationship Marketing. . .
• Keeping a customer costs 1/4 of what it
costs to attract new customer.
• Probability of keeping current customer =
60%.
• Probability of gaining new customer <
30%.

3. Relationship Marketing. . .
• Customers benefit from:
– stable relationships with suppliers (especially
in business-to-business)
– greater value and satisfaction
– discounts, perks (frequent flyer programs,
shopper clubs, etc.)
– sense of well-being/bonding (doctor, hair
stylist, etc.)

3. Relationship Marketing . . .
• Successful relationship marketers
have:
– customer-oriented personnel
– effective training programs
– employees with authority to make
decisions and solve problems
– teamwork

The Marketing Process
1. Understand the org.’s mission & the role mktg.
plays in fulfilling that mission.
2. Set the marketing objectives.
3. Gather, analyze and interpret the org.’s situation -
“SWOT” analysis.
 Strengths
 Weaknesses
 Opportunities
 Threats

The Marketing Process . . .
4. Develop marketing strategy
– target market
– marketing mix
5. Implement marketing strategy.
6. Design performance measures.
7. Periodically evaluate marketing efforts
and make changes, if needed.

The 7 p’s
• Price
• Product
• Promotion
• Place
• People
• Packaging
• Process

BLOCK-I
UNIT-2
MARKETING
ENVIRONMENT

Objectives
 To Recognize the Importance of Environmental Scanning and
Analysis
 To Become Familiar With How Competitive and Economic
Factors Affect Organizations’ Ability to Compete and Customers’
Ability and Willingness to Buy Products
 To Identify the Types of Political Forces in the Marketing
Environment
 To Understand How Laws, Government Regulations, and Self-
Regulatory Agencies Affect Marketing Activities
 To Explore the Effects of New Technology on Society and on
Marketing Activities
 To Be Able to Analyze Socio-cultural Issues That Marketers Must
Deal With As They Make Decisions

Examining and Responding to the
Marketing Environment
• Environmental
Scanning

Examining and Responding to the
Marketing Environment
• Environmental
Scanning
• Environmental
Analysis
Examining and Responding to
the Marketing Environment
• Reactive
Response

Examining and Responding to the Marketing
Environment
• Reactive
Response
• Proactive
Response

Competitive Forces
• Types of Competition
– Competition Defined
– Brand Competitors
– Product Competitors
– Generic Competitors
– Total Budget Competitors
• Types of Competitive Structures

Competitive Forces
•Selected Characteristics of Competitive Structures
• Type Number of Ease of Entry Product

• Competitors into Market
•Monopoly •One •Many •Almost No
Barriers • Substitutes
•Oligopoly •Few •Homogeneous or
•Some
• Differentiated
•Many Barriers
•Monopolistic •Product Differ-
•Competition •Few Barriers • entiation, with
•Unlimited • Many Substitutes
•Pure •Homogeneous
•Competition •No Barriers • Products
Competitive Forces
• Types of Competition
– Competition Defined
– Brand Competitors
– Product Competitors
– Generic Competitors
– Total Budget Competitors
• Types of Competitive Structures
• Monitoring Competition

Economic Forces

Business Cycle

Prosperity

Economic Forces

Business Cycle

Prosperity

Recession

Depression

Economic Forces

Business Cycle

Prosperity

Recession

Depression

Recovery

Economic Forces
 Buying Power
– Disposable
Income

Economic Forces
 Buying Power
– Disposable
Income
– Discretionary
Income
– Wealth

Economic Forces
 Buying Power
– Disposable
Income
– Discretionary
Income
– Wealth
 Willingness to
Spend

Political Forces
 Relationship
to Legal and
Regulatory
Forces

Legal and Regulatory Forces
• Sherman Antitrust Act (1890)
• Clayton Act (1914)
• Federal Trade
Commission (1914)
• Robinson-Patman Act (1936)
• Wheeler-Lea Act (1938)
• Lanham Act (1946)
• Celler-Kefauver Act (1950)
• Fair Packaging and Labeling Act (1966)

• Magnuson-Moss Warranty (FTC) Act (1975)
• Consumer Goods Pricing Act (1975)
• Trademark Counterfeiting Act (1980)
• Trademark Law Revision Act (1988)
• Nutrition Labeling and
Education Act (1990)
• Telephone Consumer
Protection Act (1991)
• Children’s Online Privacy
Act (1998)

• Procompetitive Legislation
• Consumer Protection
Legislation
• Encouraging Compliance with
Laws and Regulations
• Regulatory Agencies
– Federal Trade Commission
(FTC)

• Self-Regulatory Forces
– Better Business Bureau
– National Advertising Review
Board (NARB)

Technological Forces
• Impact of
Technology
• Adoption
and Use of
Technology

Socio-cultural Forces
• Demographic Diversity and Characteristics

• Cultural Values

•Ralph Nader
• Consumerism

TYPES OF MARKETING ENVIRONMENT
• MICRO: The environmental forces that are

relevant to the firm. It includes organization’s
internal environment, suppliers, marketing
intermediaries, customers and competitors.
• MACRO: Large societal forces which exert
influence on firm’s marketing system. It includes
demographic, economic, natural, technological,
political, legal and cultural forces.

Microenvironment
•Actors – Marketing must

consider other parts of
the organization
• The company including finance, R&D,
• Suppliers purchasing, operations
• Marketing and accounting
intermediaries – Marketing decisions
must relate to broader
• Customers company goals and
• Competitors strategies
• Publics
Microenvironment
•Actors – Marketers must watch

supply availability and
pricing
1. The company
– Effective partnership
2. Suppliers relationship
3. Marketing management with
intermediaries suppliers is essential
4. Customers
5. Competitors
6. Publics
Microenvironment
•Actors – Help to promote, sell and

distribute goods to final
buyers
1. The company
– Include resellers, physical
2. Suppliers distribution firms, marketing
3. Marketing services agencies and
intermediaries financial intermediaries
– Effective partner
4. Customers relationship management is
5. Competitors essential
6. Publics
Microenvironment
•Actors – The five types of

customer markets
1. The company • Consumer
• Business
2. Suppliers
• Reseller
3. Marketing • Government
intermediaries
• International
4. Customers
5. Competitors
6. Publics
Microenvironment
•Actors – Conducting competitor

analysis is critical for
success of the firm
1. The company
– A marketer must
2. Suppliers monitor its competitors’
3. Marketing offerings to create
intermediaries strategic advantage
4. Customers
5. Competitors
6. Publics
Microenvironment
•Actors – A group that has an actual

or potential interest in or
impact on an organization
1. The company – Seven publics include:
• Financial
2. Suppliers • Media
• Government
3. Marketing
• Citizen-action
intermediaries • Local
4. Customers • General
• Internal
5. Competitors
6. Publics
GOVERNMENT REGULATIONS AFFECTING
MARKETING
1. The Indian Contract Act, 1872
2. Sales of Goods Act, 1930
3. The Industries (development & regulation) Act, 1951
4. The Prevention of food adulteration Act, 1954
5. The Drugs and Magic Remedies (objectionable advertisement)
Act, 1954
6. The Essential commodities Act, 1955
7. The Companies Act, 1956
8. The Trade marks Act, 1999
9. The Monopolies and restrictive Trade Practices Act, 1969
10. The Patent Act, 1970

GOVERNMENT REGULATIONS AFFECTING
MARKETING
11. The Standards of weights and measures Act, 1976
12. The Consumer Protection Act, 1986
13. The Environment Protection Act, 1986
14. The Bureau of Indian Standards Act, 1986
15. The Agricultural Produce Grading and marketing Act (AGMARK),
1937

•BY NOW, YOU
•SHOULD . . .
 Recognize the Importance of Environmental

Scanning and Analysis
 Know How Competitive and Economic Factors
Affect Organizations’ Ability to Compete and
Customers’ Ability and Willingness to Buy Products
 Be Able to Identify the Types of Political Forces in
the Marketing Environment
 Understand How Laws, Government Regulations,
and Self-Regulatory Agencies Affect Marketing
Activities
 Know the Effects of New Technology on Society
and on Marketing Activities
 Be Able to Analyze Socio-cultural Issues That
Marketers Must Deal With As They Make Decisions

UNIT-3
MARKETING INFORMATION &

RESEARCH

Introduction
• Marketing was the first functional area to exhibit

an interest in MIS
• The marketing information system has three
subsystems; the accounting information system,
marketing research, and marketing intelligence
• Functional information systems: the conceptual
systems should be "mirror images" of the physical
systems

The Marketing Information System
(MKIS)
• Kotler's marketing nerve center

• 3 information flows
– Internal
– Intelligence (from environment)
– Communications (to environment)

•Kotler’s Information Flows
•Marketing intelligence
•Internal •Environ-
•marketing
•Firm
•ment
•informatio
n
•Marketing communications

Marketing Information System (MKIS) Definition
A computer-based system that works in

conjunction with other functional
information systems to support the
firm's management in solving problems
that relate to marketing the firm's
products.

An MKIS Model
• Output
– product
– place
– promotion
– price
– integrated mix
• Database
• Input
– AIS
– marketing research
– marketing intelligence

•Marketing Information System Model •Dat
a
•Informatio
n
•Input •Output subsystems

subsystems
•Product
•Accounting •D subsystem
information
system •A •Place
subsystem
•Internal sources •T
•Marketing •A •Promotion
research subsystem •Users
subsystem •B
•Environmental sources
•A •Price
subsystem
•Marketing •S
intelligence
subsystem •E •Integrated-
mix
subsystem
Accounting Information System
• Sales order data is input.

• AIS provides data for
– Periodic reports
– Special reports
– Mathematical models and knowledge-
based models

Primary versus Secondary Data
• Primary data are collected by the
firm
• Examples of primary data
– Survey
– In-depth interview
– Observation
– Controlled experiment

Primary versus Secondary Data
(continued)
• Secondary data
– Mailing lists
– Retail sales statistics
– Video retrieval systems
• Some secondary must be bought and
some is free

Marketing Research Software
• Graphics packages (print maps)
• CATI (computer-aided telephone
interviewing) where the computer
displays the next question to ask
• Statistical analysis

Marketing Intelligence Subsystem
• Ethical activities aimed at gathering

information about competitors
• Each functional information system has

an intelligence responsibility

Product Subsystem
• Product life cycle; introduction, growth,
maturity, and decline
• Information answers 3 key questions:
1.Introduce?
2.Change strategy?
3.Delete?

•The Product Life Cycle and Related Decisions
•STAGES
•Introduction •Growth •Maturity •Decline
•Sales
•Volume
•Should the •Should the

•Should the product strategy
•product be •product be
•introduced •be changed •deleted
New Product Evaluation Model
• New product committee

• Explicitly considers production as well
as marketing
• Lists decision criteria and their weight

Place Subsystem
• Channel of distribution may be short or
long
• Material, money, and information flow
through the distribution channel
– Resource flows
– Feed forward information
– EDI fits in here

•Material, Money, and
Information Flow
•Money •Money •Money •Money
•Manu- •Whole-
•Supplier •Materia •Materia saler •Materia •Retailer •Materia •Consumer
•facturer
l l l l
•Two-way information flow

Promotion Subsystem Includes:
(1) advertising
(2) personal selling
(3) sales promotion

What is Research ?
Research is simply the process of

thoroughly studying and analysing the
situational factors surrounding a problem
in order to seek out solutions to it.

Types of Business Research
• Applied – done with the intention of

applying results to specific problems in the
business
• Basic – to enhance the understanding of
problems that commonly occur across a
range of organisations

Redefining Marketing Research
The American Marketing Association (AMA)
redefined Marketing Research as:
The function which links the consumer, the

customer, and public to the marketer
through INFORMATION

Redefining Marketing Research
•Used to identify and
define market
opportunities and
problems
•Generate, refine, and
evaluate marketing
performance
•Monitor marketing
performance
•Improve understanding
of marketing as a
process
Definition of Marketing Research
Marketing research is the systematic and objective
 identification
 collection
 analysis
 dissemination
 and use of information
for the purpose of improving decision making related to the
 identification and
 solution of problems and opportunities in marketing.

Market Research
• Specifies the information necessary to address

these issues
• Manages and implements the data collection
process
• Analyzes the results
• Communicates the findings and their
implications

Classification of Marketing Research
Problem Identification Research
• Research undertaken to help identify problems which are not
necessarily apparent on the surface and yet exist or are likely to
arise in the future. Examples: market potential, market share,
image, market characteristics, sales analysis, forecasting, and
trends research.
Problem Solving Research

• Research undertaken to help solve specific marketing problems.
Examples: segmentation, product, pricing, promotion, and
distribution research.

A Classification of Marketing Research
•Marketing Research
•Problem •Problem Solving

•Identification Research Research
•Market Potential Research •Segmentation Research

•Market Share Research
•Market Characteristics •Product Research
Research
•Sales Analysis Research •Promotion Research
•Forecasting Research •Distribution Research
•Business Trends Research © Copyright PCTI Group 2009
Problem Solving Research
•SEGMENTATION RESEARCH
 Determine the basis of segmentation

 Establish market potential and
responsiveness for various•PRODUCT RESEARCH

segments
 Test concept
 Select target markets
 Determine optimal product design
 Create lifestyle profiles:
demography, media, and  Package tests
product image characteristics  Product modification
 Brand positioning and
repositioning
 Test marketing
 Control score tests
Research Process
• Seven inter-related steps
1. Specifying research objectives
2. Preparing a list of needed information
3. Designing the data collection project
4. Selecting a sample type
5. Determining sample size
6. Organizing & carrying out the field work
7. Analyzing the collected data & report the
findings

Research Process & Problems in
Achieving Scientific Method
• To achieve Validity & Reliability,
Marketing Research should be
conducted as a proper Scientific Method
• At each of the seven steps let us analyze
A. Problems in achieving Scientific Method
B. Steps to minimize the potential sources of
errors

1. Specifying Research Objectives
A. Problems in achieving Scientific Method
a. Manager’s Expectations of research results
B. Minimizing potential sources of errors
a. Write research objectives
b. Manager & researcher must discuss the
objective statements & if necessary modify

2. Preparing a list of needed information
• Problems in achieving Scientific Method
a. Due to busy schedule manager may not get
adequately involved
b. May think researcher knows what to do
• Minimizing potential sources of errors
a. Manager & researcher should develop ‘List of
needed information’ together & evaluate usefulness
Research is not needed if manager is forced to select a
particular course of action irrespective of research
findings

3. Designing data collection project
a. Using inappropriate research design
b. Wrong selection of respondents
c. Asking unclear or ambiguous questions
d. Using large scale study instead of small
scale & vice versa
e. Using poor experimental design

3. Designing data collection project
Five important issues that must be addressed:
– Should the research be exploratory or conclusive?
– Who should be interviewed & how?
– Should only few cases be studied or large samples?
– How well experiments be incorporated?
– How should data collection form be designed?

4. Selecting a sample type
Why samples? Probability Vs. Non Probability
a. Sample not representative of the population
a. Define sampling frame carefully
b. Select proper sampling method – Simple
Random

5. Determining Sample size
a. Sample size depends upon
i. Nature of the problem
ii. Budget
iii. Accuracy needed
b. Small sample – Lower reliability
Large sample – Likely to give higher reliability
a. Use Sampling Statistics to calculate sample size for a given
accuracy (Confidence Interval)
b. Care exercised in determining sample size & sample type will
minimize errors

6. Organizing &
Carrying out field work
• Field work: Selecting, Training, Controlling & Evaluating
field force
• Involves substantial portion of budget
• Potential source of errors through lack of Validity &
Reliability
a.Varying skills of field workers
b.Forms filled without interview
c.May not follow instruction
d.Investigator’s bias
e.Respondents’ bias

6. Organizing &
Carrying out field work
a.Follow good practices in selection, training,
controlling & evaluating field workers
b.Incorporate Back Checks & Spot Checks
c.Motivate supervisors
d.Deploy adequate field force – release time
pressure

7. Analyzing Data &
Report Preparation
a. Care & precaution not taken during editing,
coding & data entry
b. List of needed information not prepared properly
c. Research objectives not established correctly
a. Editing & Coding done carefully
b. Incorporate extensive validity checks
c. Inferences to be drawn based on factual data &
not based upon researcher’s personal
understanding

The Role of Marketing Research
•Customer Groups
• •Consumers
• •Employees
• •Shareholders
• •Suppliers •Uncontrollable
•Controllable •Environment
•Marketing al
•Factors
•Variables
•Product
•Marketing •Economy
•Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution •Social & Cultural
•Assessing •Marketing Factors
•Providing
•Information •Information •Decision •Political Factors
•Needs •Making
•Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
When is marketing research not
needed?
– The information is
already available.
– Decisions must be
made now.
– We can’t afford
research.
– Costs outweigh the
value of marketing
research.

BLOCK-II
UNIT-4
BUYER BEHAVIOUR

INTRODUCTION
• One of the few common features among all of us is
that we are all buyers irrespective of what we are.
As buyers, we play a vital role in the economy-
local, national, and international. We need to study
buyer behaviour to gain insights into our own
consumption related decisions like what we buy,
why we buy, how we buy, and the promotional
influences that persuade us to buy. Marketers too
need to adapt and dovetail (fit together)their
strategies by taking the buyer into consideration.

MEANING OF BUYER
BEHAVIOUR
• According to Schiffman and Kanuk consumer
behaviour is the behaviour that buyers or
consumers display in searching for,
purchasing, using, evaluating, and disposing
of products and services that they expect will
satisfy their needs. Moven has defined it as
the study of decision- making units arid the
process involved in acquiring, consuming, and
disposing of goods, services, experiences,
and ideas.

Phases of Buyer Behavior
• a) Acquisition Phase: This refers to how

buyers acquire the products and services
for their consumption. Much of the
research in the buyer behaviour has
focused on the acquisition phase. When
investigating the acquisition phase
marketers should analyse the factors that
influence the product and service choice of
buyers or consumers.

• b) Consumption Phase: This refers to how
buyers use or consume the products and
services. Here the marketers should analyse
how buyers actually use a product or service
and the experiences that the buyer obtains from
such use. The investigation is important both for
tangible products as well as for services.
• c) Disposition Phase: It refers to what buyers
do with a product once they have completed its
use.
IMPORTANCE OF BUYER BEHAVIOUR
• The most obvious is for marketing strategy-i.e., for
making better marketing decisions. For example, by
understanding that buyers are more receptive to food
advertising when they are hungry, we learn to schedule
snack advertisements late in the afternoon.
• A second application is public policy. In the 1980s,
when Accutane, a near miracle cure for acne, resulted
in severe birth defects in pregnant women, Federal
Drug Administration (FDA) of US took the step of
requiring that very graphic pictures of deformed babies
be shown on the medicine containers.

• Social marketing involves getting ideas across to buyers
rather than selling something. Understanding buyer
behaviour will help in espousing for social causes such
as planned families,, prohibition, equality of girl child etc.
Government agencies with the help of buyer behaviour
knowledge may develop appropriate promotional
strategies for greater acceptance of social causes.
• As a final benefit, studying buyer behaviour should make
us better buyers. Common sense suggests, for example,
that if you buy a 200 ml liquid bottle of laundry detergent,
you should pay less per ml than if you bought two 100 ml
bottles. In practice, however, you often pay a size
premium by buying the larger quantity.
TYPES OF CONSUMERS
• Personal Consumer: Personal
consumer buys goods or services for
his or her own use (e.g., shaving
cream, shampoo, lipstick) are for use of
the household (TV, VCR) or family. In
each of the above, the goods are
brought for final use by the individuals
who are referred to as "end users" or
"ultimate users".
• Organizational Consumer: Organizational
consumer can be for profit and not for-profit
businesses, government agencies,
institutions (schools, colleges, Markets
hospitals). In each of the above examples we
note that the products/services are being
bought in order to run the organization. For
example, a travel agency purchasing a
computer and printer so as to render
services they sell.
FACTORS INFLUENCING BUYER
BEHAVIOUR
• Psychological Factors
• Personal Factors
• Social Factors
• Cultural Factors
Refer book for details……

Buying Behaviour Situations
• Complex buying behaviour,

• Dissonance reducing buying behaviour,
• Variety seeking
• Buying behaviour and
• Habitual buying behaviour.

CONSUMER BUYING DECISION
PROCESS
1) Problem recognition,
2) Information search,
3) Evaluation of alternatives,
4) Actual purchase decision, and
5) Post purchase behaviour.

UNIT 5
MARKETS AND MARKET SEGMENTATIONS
• basic purpose of a company's marketing department is to pel-

form "three S" for its consumers. The first S stands for sensirzg
the consumer, the second S stands for sewing the consumer, and
the third S stands for sati.yfyirag the consumer. In doing so the
marketer is basically looking towal-ds its market, which is the set
of actual and potential buyers of ~l product with want satisfying
products and services. To be successful in its m:u-lteting efforts a
company should understand the characteristics of the market in
order to sense, serve and satisfy its consumers-market with its
products.

WHAT IS A MARKET?
• the term market stood for the place where buyers and
sellers gathered to exchange their goods, such as a village
bazaar. Another popular way of describing a market is in the
context of a particular place where several shops or buyers
or users may be located. For example, Connaught Place is
considered a market in New Delhi. Economists use the term
market to refer to a collection of buyers and sellers who
transact a particular product category or a range of products
such as computer market, two-wheelers market, car market,
etc. But marketers do not agree with economists as they
consider the sellers \ as constituting the industry and the
buyers as constituting the market.

TYPES OF MARKETS
AND THEIR CHARACTERISTICS
• Consumer Market
• Organizational Market

Types of Organizational Market
• The Industrial Market

• The Reseller Market
• The Government Market
• The Institutional Market

Characteristics of Organizational
Market
• Fewer Buyers • Close-supplier-
• Larger Buyers customer
• Geographical relationship
Concentration • Multiple Buying
• Derived Demand influences
• Inelastic Demand • Multiple Sales calls
• Fluctuating • Direct purchasing
Demand • Reciprocity
• Professional • Leasing
Purchasing
MEANING AND CONCEPT OF MARKET
SEGMENTATION
• Market segmentation as the process of
dividing the total market for a product or
service into several smaller groups, such
that the members of each group arc similar
with respect to the factors that influence
demand. Therefore, companies through
market segmentation divide large,
heterogeneous market into smaller
segments that can be reached more
efficiently and effectively with products and
services that match their unique needs.
IMPORTANCE OF MARKET
SEGMENTATION
• By tailoring marketing programs to each
market segment, a company can do a better
marketing job and can make more efficient use
of its‘ marketing resources.
• A small company with limited resources
may be ill a better position to compete more
effectively in one or two small market
segments, whereas the same company would
be overwhelmed by the competition from
bigger companies if it aimed for a major
segment.
• A company with effective market segmentation
strategy can create a more fine and Selecting Target
tuned product or service offering and price it
appropriately for the target segment markets.
• The company can more easily select the most
appropriate distribution network and communication
strategy, and it will be able to understand its
competitors in a better way, which are serving the
same segment.
• By developing strong position in a specialized
market segments, a medium sized company can
grow rapidly.
REQUIREMENTS OF EFFECTIVE MARKET
SEGMENTATION
• Identifiable and measurable,

• Sufficient (in terms of size),
• Stability,
• Reachable (accessible) in terms of media
and costs,
• Differentiable, and
• Actionable

Bases for Segmenting
Consumer Markets
• Geographic Segmentation
• Demographic Segmentation
• Psychographic Segmentation
• Personality Segmentation
• Personality Segmentation
• Value Segmentation
• Socio-cultural Segmentation
• Culture Segmentation
• Use-related Segmentation
• Hybrid Segmentation
Bases for Segmenting
Organizational Markets
• Type of customer segmentation

• Customer Size segmentation
• Type of buying situations segmentation

Micro Segmentation & Mass
Customization
• Micromarketing: Segment and niche marketers
tailor their offers and marketing programs to meet
the needs of various market segments. At the
same time, however, they do not customize their
offers to each, individual customer. Thus segment
marketing and niche marketing fall between
extremes of mass marketing and micro marketing.
Micromarketing is the practice of tailoring products
and marketing programs to suit the tastes of
specific individuals and locations. Micro marketing
includes local marketing and individual
marketing or mass customization.

UNIT-6
MARKET TARGET
& POSITIONING
MARKET TARGETING
• By applying the learning from the market segmentation,
you as a business manager will be able to identify your
firm's markets segment opportunities. These
opportunities have to be evaluated to select either one
or a number of strategically significant segments for
launching your marketing program. It is a stage where
the firm has to evaluate different segments and decide
how many and which ones to target for . This method is
called market targeting. A target market is defined as
a set of buyers sharing common needs or
characteristics that the company decides to serve.

Evaluation of Potential Targets
• After the firm has identified the target markets, the next
task is to evaluate the target segments. The Marketing
manager should look at five factors for evaluating each
segment. They are: segment size and worthwhile ness,
segment measurability, segment attractiveness,
accessibility of the segment, company objectives and
resources. The company should first collect and
analyse data on size of the current segment, growth
rates in the past and the likely rate of growth from the
market indicators for the future on short term and long
term basis, and expected profitability horn each
segment.

Market Targeting Strategies
• The targeting strategy will largely depend
upon the kind of product market coverage
that the firm takes for the future. The
resources, capabilities and intent of the
respective firms influence this product
market coverage decisions. The product
market coverage strategies are broadly
classified as concentrated marketing,
differentiated marketing and undifferentiated
marketing.
• Concentrated Marketing : When company resources
are limited and the competition is intense enough that
the marketing manager has to stretch the market
budget for market coverage, the companies follow a
concentrated marketing strategy. The company decides
to cover a large niche than fighting for a small share in
a large market. It is an excellent strategy for small
manufacturers those can stay closer to the segment
and cater to the emerging needs of a close loop
customers. This helps them to gather market share in
small markets against strong and large competitors.
123 Presentation Title | December 7, 2021 | <document © Copyright PCTI Group 2009
• Differentiated Marketing: In differentiated marketing
strategy, marketers target several market segments and
design separate offers for each segment. They target
several segments or niches with a varied marketing offer
to suit to each segment needs. For example, Maruti as an
automobile company has the distinction of having products
for different segments. Where as its Maruti 800 is targeted
for the upcoming middleclass, the Baleno is targeted for
the upper rich class people and Maruti Omni is targeted
for large families. The main objective of offering varied
marketing offer is to cater to different segments and get
higher sales with a dominant position on each segment.
• Undifferentiated Marketing: Marketers may go
against the idea of a segmented market and
decide to sale the product in the whole market.
Here the marketing manager ignores the idea of
segment characteristics differences and develop
a marketing program for the whole market. This
approach keeps the over all marketing costs low
and makes it easier to manage and track the
market forces uniformly. Here the marketer tries
to find out the commonality across the segments
rather than focusing on the differences.
Choosing a Product - Market Strategy
The market coverage strategy largely depends on company‘s
resources and ability to cater to the market. The best strategy also
depends on the product variability. Undifferentiated marketing suits
best to uniform products and commodities like petrol, steel and
sugar. The product's life cycle is also another important factor
considered while selecting a market coverage strategy. At the
introductory stage of a product, the company will prefer a single
product in an undifferentiated market or concentrated market. In the
maturity stage of the product life cycle, many players follow
differentiated marketing strategy. If all the customers have uniform
taste, buy the same amount and respond to a marketing program in
the same way then market variability is minimum. So an
undifferentiated marketing strategy is most suitable. Every marketing
manager should also look at the competitor's marketing strategy.
POSITIONING
• After the company has decided its market targeting strategy,
the next managerial challenge is to decide what position it
wants to occupy in the selected segment(s). Kotler has defined
product positioning as the way the product is defined by
consumers on important attributes - the place - the product
occupies in consumer‘s mind relative to competing products.
Thus product's position reflects important attributes which a
consumer gives to the product. It is the position in the
perceptual space of the consumer’s mind that the product takes
in relation to competitor‘s products, which is often verbalized by
customers on certain attributes. Product positioning depends
on market structure, competitive position of the firm and the
concepts of substitution and competition among products.
Requirements for Positioning
• A product's position is the complex set of perceptions,
impressions and feelings that consumers have for the product in
comparison with the competing alternatives available in the
market. They position with or without the help of the marketers. A
successful marketer provides requisite information to the
consumer while the consumer is still in the process of developing
a position through company's marketing communication program.
Therefore, a marketer can plan positions to his product and can
create a sustainable competitive advantage for the product in the
selected segments. Rest other marketing strategy can support
the position that is capable of providing sustainable competitive
advantage to the firm. Each firm must create a set of
differentiation or unique bundle of benefits that appeals to a
substantial segment of the market place.
Topic for Discussion
• Positioning Process
Bases for the Product Positioning
• Positioning on Benefits, Problem Solution or
Needs
• Positioning for Specific Usage Occasions
• Positioning for User Category
• Positioning against another Product
• Production Class Dissociation
• Hybrid bases : In this strategy, marketers use a
hybrid approach incorporating features from
more than one bases for positioning.
Communicating and Delivering the
Chosen Positioning Strategy
• The managers should take the next step in
communicating the selected position to the target
audience. The marketing mix should support the
desired positioning communication through
integrated marketing communication of the brand
is communication talks about a specific
positioning proposition then the brand should
deliver the same at trial as well as the adoption
stage of the product. The marketing mix design
involves the practical execution of the
strategic brand position decision.
REPOSITIONING
• Repositioning is a critical decision in marketing. The
manager can go for repositioning due to two reasons viz. the
failure of the current positioning strategy due to the three
positioning mistakes like under positioning, over positioning
and confused positioning, the opening up of another
positioning opportunity due to evolution of the customers on
value life cycle or emergence of new technology to redefine
the structure of competition. Brand managers normally
undertake brand tracking and monitoring studies to identify
the gap between the desired positioning or stated position
through brand communication all the perceived position by
the customers. Any substantial gap in these two measures
will warn the brand managers to go for a reposition decision.
UNIT 7 PRODUCT CONCEPTS AND
CLASSIFICATION
• A product may be defined in a narrow as well as broad
sense. In narrow sense, it is a set of tangible physical aid
chemical attributes in an identifiable and really
recognizable form. In a broader sense we may look at it in
the form of an object, idea, service, person, place, activity,
goods, or an organisation. It can even be a combination
of some of these factors. Let us study how 'product' is
being defined by Philip Kotler, A product is anything that
can be offered to a market for attention, acquisition, use
or consumption, it includes physical objects, services,
personalities, place, organizations and ideas.
Essential Attributes of a Product
• Tangible or Intangible
• Associated Attributes
• Exchange Value
• Satisfaction
• A product, therefore, can be considered as
comprising of three distinct levels. Al the First level
is the core product i.e., the core benefit which the
consumers seek to buy. The second level of the
product can be described as the actual product.
This includes the packaging, brand name,
features of the product, design, the shape, quality
etc. The third level is the augmented product. In
addition to the actual product, the provider may
give additional customer services such as after
sales service, warranty, delivery, installation etc.
CLASSIFICATION OF PRODUCTS
1) On the basis of the user status, products may
be classified as consumer goods and industrial
goods.
2) On the basis of the extent of durability, products
may be classified as durable goods and non-
durable goods.
3) On the basis of tangibility, products may be
classified as tangible goods and non tangible
goods. These non-tangible goods are referred to
as services.
Discuss Major types of Products
1 ) Consumer goods
2) Industrial goods
3) Durable and Non-durable goods
4) Services
PRODUCT MIX
• A product mix is the set of all products and
items that a particular seller offers for sale.
It is also termed as product assortment.
Product mix consists of product lines. For
example, the product mix of ITC consists
of product lines like hotels, cigarettes,
ready-made garments, grocery, and paper.
• Refer Fig: 7.2
PRODUCT MIX AND PRODUCT LINE
STRATEGIES
• Contraction of the Product Line
• Expansion of Product Mix
• Changes in Quality Standards: Trading Up &
Trading Down
• Affecting Change in Model of style of an
Existing Product
• Product Differentiation
• Product Positioning
• New Product
SERVICES - MEANING AND SCOPE
A product is an object, a device, a tangible thing; and
service is a deed, a performance, an effort. This captures
the essence of the difference between products and
services. Services are a series of deeds, processes and
performances; hence tend to be more intangible,
personalized, and custom-made than products. The
services offered by SBI, LIC, IGNOU and MTNL are not
tangible things that can be touched, seen and felt, but
rather are intangible deeds and performances. Similarly,
the core offerings of hospitals, hotels, and utilities
comprise primarily deeds and actions performed for
customers.
Difference between Services and Products
(1) intangibility,
(2) heterogeneity,
(3) simultaneous production and
consumption, and
(4) perishability
SERVICE CLASSIFICATION
• The Nature of the Service Act
• Relationship between Service
Organisation and Customers
• How the Service is Delivered
• Proportion of Tangibility and Intangibility
• Service Inputs
• Contact between the Consumer and the
Service Provider
• Profit and Public vs Private Services
THE SERVICES MARKETING MIX
• People: All human actors who play part in service

delivery mid thus influence the buyer's perceptions;
namely, the firm's personnel, the customer, and other
customers in the service environment.
• Physical evidence: The environment in which the
service is delivered and where the firm and customer
interact, and any tangible components that facilitate
performance or communication of the service.
• Process: The actual procedures, mechanism and flow
of activities by which the service is delivered - the
service delivery and operating system.
UNIT-8
PRODUCT
DEVELOPMENT AND
PRODUCT LIFE CYCLE

PRODUCT INNOVATION - MEANING, TYPES AND
IMPORTANCE
The term "innovation" means "bringing in novelties" or
"making changes". As far as "product innovation" is
concerned, it covers a wide range from making minor or
major changes in the existing product to introduction of
substitute products or totally new products. It is true that it
is not easy to claim any product as totally "new" since the
idea for a new product originates from the existing
products. That is why it is advised that a company should
define its business in broad terms i.e. it is in "dental
hygiene business" and not in "tooth paste or tooth powder
business" or in "transportation business" and not in "bicycle
or automobile or rail road business.
• Defined this way, no product can be construed as a
"new product". As far as business is concerned, a "new
product is one which the target consumer segment
considers new" in the sense the consumer feels that the
need is met by the "new product" cannot be met by any
other substitute product at a particular point of time.
• Why do companies go in for new products? A simple
answer to this question is "to meet the changes in
environment". The changes can encompass one or
more of environment factors viz., competitive
environment, technological environment, cultural
environment, political environment, legal environment.
PRODUCT DEVELOPMENT PROCESS
• Idea Generation
• Idea Screening
• Concept Development
• Business Analysis
• Engineering Development & Marketing
Strategy Development
• Test Marketing
• Commercialization
WHY NEW PRODUCTS FAIL?
The failure may be traced to one or more of the
following factors:
• Product: Product factors such as functional quality, size,
shape, colour, design, materials used in its production
etc. of the product not up to customers' requirement .
• Package: Functional quality, the material used in the
package, size, shape, colour; design, and instructions
on the package including the languages used,
disposability or reusability of the package, compatibility
with the product, aesthetic appeal, ease of opening
and closing the package etc., determine acceptability or
otherwise of the package and, along with it, the product.
• Label: The size, colour, language(s) used, shape
and material influence customer preference.
• Brand: Brand name and brand logo are, along
with trademark, major considerations in
purchase decisions.
• Service: Pre-sale, point-of-sale and after sales
service play a major role in the purchase,
particularly of high unit value durable consumer
goods and capital equipment.
• Distribution: Selection of inappropriate channels
and outlets, lack of motivation among distributors,
inconvenient location of distributors and poor
service quality of distributors are some of the
problems associated with the failure of the product.
• Pricing: Product quality & price relationship not
being optimal, non-availability of credit for high unit
value items, lack of incentives such as price
discounts, and frequent price revisions cause
product failure.
• Promotion: Selection of inappropriate promotional
tool, non-availability of effective promotional tool,
communication mistakes, poor literacy level of the
market, non-availability of capable promotional firms,
problems in personal selling and sales promotion lead
to poor communication with the customer affecting
product sales.
• Environment: Changes in environment -
technological, legal, competitive, cultural, political
-which could not be anticipated in advance and
provided for, lead to product failures.
PRODUCT LIFE CYCLE (PLC)
• Introduction: The need for immediate profit is not a
pressure. The product is promoted to create
awareness. If the product has no or few competitors, a
skimming price strategy is employed. Limited numbers
of product are available in few channels of distribution.
• Growth: Competitors are attracted into the market with
very similar offerings. Products become more profitable
and companies form alliances, joint ventures and take
each other over. Advertising spend is high and focuses
upon building brand. Market share tends to stabilise.
• Maturity: Those products that survive the earlier stages tend
to spend longest in this phase. Sales grow at a decreasing rate
and then stabilise. Producers attempt to differentiate products
and brands are key to this. Price wars and intense competition
occur. At this point the market reaches saturation. Producers
begin to leave the market due to poor margins. Promotion
becomes more widespread and use a greater variety of media.
• Decline: At this point there is a downturn in the market. For
example more innovative products are introduced or consumer
tastes have changed. There is intense price-cutting and many
more products are withdrawn from the market. Profits can be
improved by reducing marketing spend and cost cutting.
BLOCK-III
PRODUCT DECISIONS
UNIT-9
BRANDING, PACKAGING AND
SERVICING

• A brand is a collection of images and ideas representing an
economic producer; more specifically, it refers to the descriptive
verbal attributes and concrete symbols such as a name, logo,
slogan, and design scheme that convey the essence of a
company, product or service.
• Brand recognition and other reactions are created by the
accumulation of experiences with the specific product or service,
both directly relating to its use, and through the influence of
advertising, design, and media commentary.
• A brand is a symbolic embodiment of all the information
connected to a company, product or service.
• A brand serves to create associations and expectations among
products made by a producer.
• A brand often includes an explicit logo, fonts, color schemes,
symbols and sound which may be developed to represent implicit
values, ideas, and even personality.
The key objective is to create a relationship of trust.

Brand as a legal Instrument
• The brand name is often used interchangeably with
"brand", although it is more correctly used to specifically
denote written or spoken linguistic elements of a brand. In
this context a "brand name" constitutes a type of
trademark, if the brand name exclusively identifies the
brand owner as the commercial source of products or
services.
• A brand owner may seek to protect proprietary rights in
relation to a brand name through trademark registration.
Advertising spokespersons have also become part of
some brands, for example: Mr. Whipple of Charmin toilet
tissue and Tony the Tiger of Kellogg's.
• The act of associating a product or service with a brand
has become part of pop culture. Most products have some
kind of brand identity, from common table salt to designer
clothes.

•What Is A Brand?
 Asset that drives premium pricing and
future cash flows
 Signal of quality and a trust mark
 Relationship
 A set of rational and emotional
associations that identify and differentiate
a company or its offer
 A form of self expression
• A good brand name should:
• be protected (or at least protect able) under trademark law
• be easy to pronounce
• be easy to remember
• be easy to recognize
• be easy to translate into all languages in the markets where the
brand will be used
• attract attention
• suggest product benefits (e.g.: Easy-Off) or suggest usage (note the
tradeoff with strong trademark protection)
• suggest the company or product image
• distinguish the product's positioning relative to the competition.
• be attractive
• stand out among a group of other brands

Challenges or limitations of Branding:
• here are several challenges associated with setting objectives for a

brand or product category.
• Brand managers sometimes limit themselves to setting financial and
market performance objectives. They may not question strategic
objectives if they feel this is the responsibility of senior management.
• Most product level or brand managers limit themselves to setting short
term objectives because their compensation packages are designed to
reward short term behavior. Short term objectives should be seen as
milestones towards long term objectives.
• It is sometimes difficult to translate corporate level objectives into
brand or product level objectives. Changes in shareholders' equity are
easy for a company to calculate. It is not so easy to calculate the
change in shareholders' equity that can be attributed to a product or
category. More complex metrics like changes in the net present value
of shareholders' equity are even more difficult for the product manager
to assess.

• In a diversified company, the objectives of some brands may
conflict with those of other brands. Or worse, corporate
objectives may conflict with the specific needs of your brand.
This is particularly true in regard to the trade-off between
stability and riskiness. Only when these conflicts and tradeoffs
are made explicit, is it possible for all levels of objectives to fit
together in a coherent and mutually supportive manner.
• Brand managers sometimes set objectives that optimize the
performance of their unit rather than optimize overall corporate
performance. This is particularly true where compensation is
based primarily on unit performance. Managers tend to ignore
potential synergies and inter-unit joint processes.
• Often product level managers are not given enough information
to construct strategic objectives.

Brand development
• In terms of existing products, brands may be developed in a
number of ways:
Brand extension
• The existing strong brand name can be used as a vehicle for new
or modified products; for example, many fashion and designer
companies extended brands into fragrances, shoes and accessories
, home textile, home decor, luggage, (sun-) glasses, furniture,
hotels, etc.
• Mars extended its brand to ice cream, Caterpillar to shoes and
watches, Michelin to a restaurant guide, Adidas and Puma to
personal hygiene.
• There is a difference between brand extension and line extension.
When Coca-Cola launched "Diet Coke" and "Cherry Coke" they
stayed within the originating product category: non-alcoholic
carbonated beverages. Procter & Gamble (P&G) did likewise
extending its strong lines (such as Fairy Soap) into neighboring
products (Fairy Liquid and Fairy Automatic) within the same
category, dish washing detergents.

LABELING
• A label is a piece of paper, polymer,
cloth, metal, or other material affixed to a
container or article, on which is printed a
legend, information concerning the
product, addresses, etc. A label may also
be printed directly on the container or
article.
• Labels have many uses: product
identification, name tags, advertising,
warnings, and other communication.
Application and use
• Labels can be supplied:

• separately
• on a roll
• on a sheet
• Many labels are pre-printed by the manufacturer.
Other have printing applied manually or
automatically at the time of application.
• Some labels have protective overcoats, laminates, or
tape to cover them after the final print is applied. This
is sometimes before application and sometimes after.
• Specialized high speed application equipment is
available for certain uses.

LABEL provides:
• Picture of the product, accurate as to size, color &
appearance
• Description of raw products used along with
methods of processing
• Directions for use, including cautions against
misuse
• Possible adverse effects, and
• Brand name

PACKAGING
• Packaging is the science, art and technology of

enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the
process of design, evaluation, and production of
packages.
• Packaging can be described as a coordinated
system of preparing goods for transport,
warehousing, logistics, sale, and end use.
Packaging contains, protects. preserves,
transports, informs, and sells. .
• It is fully integrated into government, business,
institutional, industry, and personal use.
The purposes of packaging and package
labels
• Physical protection
• Containment or agglomeration
• Information transmission
• Marketing
• Security
• Convenience

Packaging types
• Primary packaging is the material that first envelops

the product and holds it. This usually is the smallest
unit of distribution or use and is the package which is
in direct contact with the contents.
• Secondary packaging is outside the primary packaging
– perhaps used to group primary packages together.
• Tertiary packaging is used for bulk handling,
warehouse storage and transport shipping. The most
common form is a palletized unit load that packs
tightly into containers.

Packaging Strategies or Techniques
• Discount pack
• Coupon pack
• Premium pack
• Prime packing
• Self-liquidator
• Re-designing of the package
• Odd size packaging
• Packaging the product line
• Bundle packaging
• Packaging in perishables
THANKS……….
UNIT-10
OBJECTIVES AND
METHODS OF PRICING

PRICING
• Pricing is one of the four p's of the marketing mix. The
other three aspects are product, promotion, and place.
• It is also a key variable in microeconomic price
allocation theory. Price is the only revenue generating
element amongst the 4ps,the rest being cost centers.
• Pricing is the manual or automatic process of applying
prices to purchase and sales orders, based on factors
such as: a fixed amount, quantity break, promotion or
sales campaign, specific vendor quote, price prevailing
on entry, shipment or invoice date, combination of
multiple orders or lines, and many others.
• Automated systems require more setup and
maintenance but may prevent pricing errors.

Objectives of Pricing
• A well chosen price should do three things :
• achieve the financial goals of the company (eg.: profitability)
• fit the realities of the marketplace (will customers buy at that
price?)
• support a product's positioning and be consistent with the other
variables in the marketing mix
• price is influenced by the type of distribution channel used,
the type of promotions used, and the quality of the product
• price will usually need to be relatively high if manufacturing is
expensive, distribution is exclusive, and the product is supported
by extensive advertising and promotional campaigns
• a low price can be a viable substitute for product quality,
effective promotions, or an energetic selling effort by distributors

Factors Influencing Price Determination
The “value” of the product, as perceived
by the buyer
Product costs
Competition
Company’s policies
Government regulations
Other elements of marketing (i.e.
decisions, customer preferences,
quality etc.)

Pricing Methods
• Cost based pricing
• Buyer based pricing
• Competition based pricing
Note: refer book for details.

THANKS……….

UNIT-11
PRICE ADJUSTMENT
STRATEGIES

PRICING DECISIONS
Pricing does not end once the basic price of a

product has been arrived. In fact the job has
only begun.
The company has to decide as to how it is
going to recover the costs incurred in
transporting the product from the
production point to each one of the
customers.

WHY PRICE ADJUSTMENTS?
Price adjustments may be brought about as part
of a deliberate marketing strategy or due to
factors beyond the control of the company.
• Competition
• Increase/decrease in cost
• Repositioning of the product
• Incentives to intermediaries
• Trade- In (promotional activity)
• Product mix

DISCOUNT & ALLOWANCES
• CASH DISCOUNT: It refers to the reduction in price when
bills are settled promptly i.e. payments are made
immediately.
• QUANTITY DISCOUNT: Discount given on the basis of the
number of units of the products purchased. “buy one get one
free”, “3 for 2” & “buy one & get 50% off on second”.
• Cumulative & Non-Cumulative
• FUNCTIONAL OR TRADE DISCOUNT: discounts offered to
channel members for performing various functions like
storing, delivering, distributing etc.
• SEASONAL DISCOUNT: Discount offered from list price
during certain seasons, like during off-seasons, festival
seasons etc.
• ALLOWANCES: Promotional allowances (display,
demonstration, trade fair, exhibitions) & Trade-in allowances.
PRICE CHANGES
Product & price share a special

relationship & often adjustments are made
in the product to meet some problems
cropping up in the pricing area. Some
product-price adjustment strategies are:
• Initiate price change: price cuts, price
increase, customer reactions to price
changes, competitors reactions to price
change.
• Respond to price changes by competitors
PRICING A NEW PRODUCT
One of the greatest challenges a company may
face relate to the pricing strategy it should adopt
when it introduces a “new product” into the market.
Two approaches are available as regards pricing a
new product:
• Market-skimming pricing strategy: Setting high
prices for the product initially is referred as market-
skimming pricing strategy. Skimming means
creamy segments of the market, generate as much
revenue as possible & then, as competition
develops, bring out lower priced versions of the
product to draw in new segments.

• Market-penetration pricing strategy: It
advocates setting as low an initial price in
order to penetrate the market as fast and as
much as possible. Low price is expected to
attract high volume of business which, in
turn, will have the effect of lowering the
costs further. Low price generally discourage
competition & hence gives substantial
market share to the company practicing this
strategy.
PRODUCT-MIX PRICING STRATEGIES
It is not often that a company manufactures only one

product & hence has to formulate pricing strategies
taking into account only one set of relevant factors.
In a product-mix pricing strategy, the firm has to look
for a set of prices that maximizes the profits on the
total product mix.
• Product-line pricing: product line means different
versions of the same product such as different
capacities of refrigerators, various models of cars
etc.
• Optional-product pricing: in this buyer is given the
option to buy accessory products along with the
main product. For eg: TV stand, TV cover with
television set.

• Captive-Product pricing: There are certain products,
which cannot be used without certain other products.
Examples of such products are safety razor with razor
blades & shaving cream.
• By-product pricing: In a number of industries,
production of main products throws up by-products
which also find usage. For eg: number of by-products
emerge in petroleum refining.
• Product-bundle pricing: Under this strategy, sellers
can combine a number of their products & offer the
bundle at attractive price. for eg: like in festive
seasons.
Different prices to different customers
• Fixed Price
• Flexible Price
• Unit pricing
THANKS………….

UNIT-12
REGULATION OF
PRICES
INTRODUCTION
While designing pricing strategies it is important for you to

keep in mind the legislative provisions regarding price.
Regulation of prices is considered as one of the important
means of achieving the socio-economic goals in many
countries.
Short supply of goods & services, unreasonable level of
prices, unfair trade practices, black marketing, low levels of
income of a large number of people etc. requires number
of legislations seek to regulate pricing policies & practices.
Which includes “Monopolies and Restrictive Trade
Practices Act, 1969”. Etc.

Regulation of Prices under the MRP Act
The practices regulated under this Act are:

• Resale price maintenance
• Price discrimination
• Collective price fixing
• Predatory pricing
• Bargain sale &
• Deceptive pricing
• Charging of unreasonably high prices.

Regulation of pricing under the Consumer
Protection Act
The Consumer Protection Act, 1986

includes two types of pricing practices:
• Excessive Pricing
• Bargain and deceptive Pricing

Regulation Of Pricing Under other Acts
Some other legislations which seek regulation of

pricing policies & practices in India include:
• The Essential Commodities Act, 1955
• The Drugs (control) Act, 1950
• The Industries (development & regulation) Act,
1951
• The Standard of weights & measures (packaged
commodities) rules, 1977
Refer book for details.
THANKS……………….
UNIT-13
DISTRIBUTION
CHANNELS
INTRODUCTION
Chain of intermediaries,each passing the product down the
chain to the next organization, before it finally reaches the
consumer or end-user.This process is known as the
'distribution chain' or the 'channel.' Each of the elements in
these chains will have their own specific needs, which the
producer must take into account, along with those of the all-
important end-user.
Distribution channels may not be restricted to physical
products alone. They may be just as important for moving a
service from producer to consumer in certain sectors, since
both direct and indirect channels may be used. Hotels, for
example, may sell their services (typically rooms) directly or
through travel agents, tour operators, airlines, tourist
boards, centralized reservation systems, etc.
•

FUNCTIONS
• Information: Gathering and distributing market research and
intelligence - important for marketing planning
• Promotion: Developing and spreading communications about offers
• Contact: Finding and communicating with prospective buyers
• Matching: Adjusting the offer to fit a buyer's needs, including
grading, assembling and packaging
• Negotiation: Reaching agreement on price and other terms of the
offer
• Physical distribution: Transporting and storing goods
• Financing: Acquiring and using funds to cover the costs of the
distribution channel
• Risk taking: Assuming some commercial risks by operating the
channel (e.g. holding stock)

DISTRIBUTION CHANNELS USED

Marketing Channels for Consumers &
Industrial Products

Factors influencing the choice of channel
• Market Considerations
• Product Considerations
• Middlemen Considerations
• Company Considerations

Channel Design Decisions
• Analyze Customers’ desired service output
levels
• Establish Objectives and Constraints
• Identify Major Channel Alternatives
• Determine Terms & Responsibilities of
Channel Members
• Evaluate the major alternatives

Channel Management
• Selecting Channel Members
• Training Channel Members
• Motivating Channel Members
• Evaluating channel members
• Modifying Channel arrangements

Channel Conflicts
• Vertical Channel Conflict

• Horizontal Channel Conflicts
• Multi-channel conflicts

Causes of Channel Conflict
• Conflict between the national
accounts managers and the field’s
sales force
• Conflict between the field sales force
and the telemarketers
• Conflict between the field sales force
and the dealers

Managing Channel Conflict
• Diplomacy
• Mediation
• Arbitration

UNIT-14
MARKETING
INTERMEDIARIES
MIDDLEMEN
• It refer to the business organizations which
are the link between producers and
consumers of goods, and refer services in
connection with the purchase and/or sale
of products as they move from producer to
the consumers.They undertake all the
channel functions such as assembling,
grading, packaging, storing, financing,
risk-bearing etc.

Role of Middlemen

Role of Middlemen
• Creation of utilities
• Economy in effort
• Market Coverage
• Provide local convenience to consumers
• Provide field stocks
• Financing
• Servicing
• Acting as Channels of Communication
• Help in promotion

Marketing Intermediary
• A business firm that operates between

producers and consumers or business
users, also called a middleman.
• May be a wholesaler, retailer, or

facilitating intermediary.

Retailing • Activities involved in selling
goods and services to
ultimate consumers
© PhotoDisc

• Activities involved in selling
Retailing goods and services to ultimate
consumers
• An intermediary that handles

Wholesaler the redistributes of goods to
retailers, other distributors,
and sometimes end
consumers
© PhotoDisc

• Activities involved in selling
Retailing goods and services to
ultimate consumers
• An intermediary that takes title

Wholesaler
to the goods it handles and
redistributes them to retailers,
other distributors, and
sometimes end consumers
Direct • A distribution channel

Marketing consisting of direct
communication to a consumer
or business recipient
Types of Middlemen
•

Types of Wholesalers
•

Retailers
• Retailing consists of the sale of goods or
merchandise from a very fixed location, such as a
department store, boutique or kiosk, or by mail, in
small or individual lots for direct consumption by the
purchaser. Retailing may include subordinated
services, such as delivery. Purchasers may be
individuals or businesses. In commerce, a "retailer"
buys goods or products in large quantities from
manufacturers or importers, either directly or through
a wholesaler, and then sells smaller quantities to the
end-user. Retail establishments are often called shops
or stores. Retailers are at the end of the supply chain.

Functions of Retailers
• Estimating the demand
• Procurement of goods
• Transportation
• Storing goods
• Grading and packaging
• Risk-bearing
• Selling

Classification of Retailers
1) Itinerant Retailers
 Hawkers or Peddlers
 Pavement Traders
 Market Traders
2) Small-Scale Retail shops
 Stalls on streets
 General Merchandise shops
 Specialty Shops
Large Scale Retail Shops
• Departmental Stores
• Super-Market
• Multiple shops or chain stores
• Mail order house
• Consumer co-operative stores
• Hire purchase traders
• Discount houses
• Super bazaars
• Automatic Vending machines

Forms of Ownership
• Independent Retailer
• Retail Chain
• Retail Franchising
• Cooperatives

Non Store Retailing
• In home retailing
• Telesales/Telephone retailing
• Catalog Retailing
• Direct response retailing
• Automatic Vending
• Electronic retailing/E-tailing

Topic for Discussion
Trends in Wholesaling
and
Retailing

UNIT-15
MARKETING
LOGISTICS
Marketing Logistics
• Marketing Logistics has been described by
Philip Kotler as “planning, implementing
and controlling the physical flows of
materials, final goods and related
information from point of origin to point of
consumption to meet customer’s
requirements at a profit”. In short, it
involves getting the right product in right
quantity to the right customer in the right
place at the right time.

• LOGISTICS describes the entire process of
moving raw materials and component parts into a
firm, moving in-process inventory through the
firm, and moving finished goods out of the firm.
• SUPPLY CHAIN MANAGEMENT or logistics
management,involves planning, implementation
and controlling a chain of organizational
relationships to assure the efficient low of both
inbound materials and outbound finished
products.

•

• Supply Chain Management, thus,
includes two aspects:
1) Inbound Logistics/ Production
Logistics
2) Outbound Logistics/ Marketing
Logistics

Elements of Marketing Logistics
• Transportation
• Inventory Maintenance
• Order Processing
• Acquisition
• Protective Packaging
• Warehousing
• Materials Handling
• Information Maintenance
Objectives of Marketing Logistics
• Improving Customer Service
• Reduce Distribution Costs
• Generating Additional Sale
• Creating Time and place utilities
• Price Stabilization

Marketing Logistics Tasks
Components of Marketing Logistics Tasks:
 Order Processing
 Warehousing
 Inventory Control
 Transportation
 Information Monitoring

Marketing Logistics Approaches
• Total Cost Approach: Optimization of the
overall cost-customer service relationship
of the entire physical distribution system.
• Total Systems Approach: Looking at and
managing physical distribution activity as
an integrated exercise where decisions in
respect of different components are taken
not in isolation one another but as a
whole.

UNIT-16
MARKETING
COMMUNICATION
MARKETING COMMUNICATION
It is the process of systematic and scientific way of
disseminating the relevant marketing information by a
company to its target market and other publics by using a
mix of media.
…..is a systematic relationship between a business
and its market in which the marketer assembles a
wide variety of ideas, designs, messages, media,
forms and colors, both to communicate ideas to,
and to stimulate a particular perception of products
and services by individual people who have been
aggregated into a target market.

Functions Of Marketing Communication
• Providing Information and persuasion.
• Providing information about a new
brand or brand extension
• Building and maintaining Brand loyalty
among consumers

Communication Process
• The communication process is the guide toward realizing
effective communication. It is through the communication
process that the sharing of a common meaning between
the sender and the receiver takes place. Individuals that
follow the communication process will have the
opportunity to become more productive in every aspect of
their profession. Effective communication leads to
understanding.
• The communication process is made up of four key
components. Those components include encoding,
medium of transmission, decoding, and feedback. There
are also two other factors in the process, and those two
factors are present in the form of the sender and the
receiver. The communication process begins with the
sender and ends with the receiver.

The Communications Process
•Fields of Experience
•Source / •Channel •Receiver /

•Encoding •Decoding
•Sender •MESSAGE •Audience
•Noise
•Response Feedback Loop

•The Elements of
Communication
•Receivers/ •Feedback
•Decoders •Sender/
•Encoder
•Message
•&
•Channel
•Frames of
•Noise •Feed forward
•Reference •Frame of
•Reference
•Context

Six Basic Steps or Elements of
Communication Process
1) Develop the idea – is the message
worthwhile?
2) Encode the message – writing is different
from speaking
3) Transmit – most appropriate channels
4) Receive the message – transfer of initiative
5) Decode the message – interpretation
6) Feedback – “you said…”

Steps in Developing Effective
Communication
• Step 1. Identifying the Target Audience
• Step 2. Determining the Communication Objectives

• Buyer Readiness Stages
•Awareness
•Knowledge
•Liking
•Preference
•Conviction
••Purchase
Purchase

Communication
• Step 3. Designing a Message
•Message Content
•Rational Appeals
•Emotional Appeals •Message Structure
•Moral Appeals •Draw Conclusions
•Argument Type •Message Format
•Argument Order •Headline, Illustration,
•Copy, & Color
•Body Language

Communication
• Step 4. Select the Communication Channels
• Personal Communication Channels • Non Personal Communication Channels

• Face to Face, Telephone, Presentation • Print, Broadcast and Display Media
• Step 5. Selecting the Message Source
• Step 6. Measure the Communication’s Results

Effective Marketing Communication
In developing effective marketing communication, following
steps should be taken:
1.Identifying the target audience characteristics
2.Determine the response sought or the Communication
objective
3.Designing the effective message: it includes
a) Message content (what to say?)
b) Message structure (how to say it logically?)
c) Message format (how to say it symbolically?)
d) Message source (who should say it?)

4.Selecting the Communication channel:
• Advocate channel: in it company salespeople
contacting buyers in the target market.
• Expert channel: it consist of independent
experts making statements to target buyers.
• Social channel: consists of neighbors, friends,
family members etc. talking to target buyers.
“Word-of-mouth”.
5. Measuring the Communication results

Appeal by Marketers
Marketers use 3 basic types of appeals in their marketing

communication:
• Rational appeals- show that the product will deliver the
claimed benefits.
• Emotional appeals- attempts to stir up either negative or
positive emotions that may motivate the target audience
to purchase the product or brand of the company.
• Moral Appeals- aim to give the audience a sense of what
is right and good. Like related to environment, family
planning etc.

PROMOTION MIX
• Promotion Mix is careful blending of total
array of promotion tools available to the
communicator whose major role is persuasive
communication.
• Specific combination of promotional methods
such as print or broadcast advertising , direct
marketing , personal selling , point of sale
display , merchandising , etc., used for one
product or a family of products .

Factors in Setting Promotion Mix
•Strategy
Selected
•Strategy that Depends •Strategy that
Calls for on: Calls for Using
Spending A Lot the Salesforce
on Advertising •Type of
Product- and Trade
and Consumer Promotion to
Promotion to Market &
Push the
Build Up (Pull) •Product Product Through
Consumer Life-Cycle the Channels.
Demand. Stage
•
There are four main aspects of a promotional mix (or
communication mix). These are:
• Advertising- Any paid presentation and promotion of
ideas, goods, or services by an identified sponsor.
Examples: Print ads, radio, television, billboard, direct
mail, brochures and catalogs, signs, in-store displays,
posters, motion pictures, Web pages, banner ads, and
emails.
• Personal selling - A process of helping and persuading
one or more prospects to purchase a good or service or
to act on any idea through the use of an oral
presentation. Examples: Sales presentations, sales
meetings, sales training and incentive programs for
intermediary salespeople, samples, and telemarketing.
Can be face-to-face or via telephone.

• Sales promotion- Incentives designed to stimulate the
purchase or sale of a product, usually in the short term.
Examples: Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating premiums,
trade shows, trade-ins, and exhibitions.
• Public relations - Non-paid non-personal stimulation of
demand for a product, service, or business unit by
planting significant news about it or a favorable
presentation of it in the media. Examples: Newspaper
and magazine articles/reports, TVs and radio
presentations, charitable contributions, speeches,
issue advertising, and seminars.
• Sponsorship is sometimes added as a fifth aspect.

Integrated Marketing Communication
(IMC)
The process of using promotional tools in a unified
way so that a synergistic communication effect is
created.
Integrated Marketing Communications (IMC),
according to The American Marketing Association,
is “a planning process designed to assure that all
brand contacts received by a customer or prospect
for a product, service, or organization are relevant
to that person and consistent over time.”

Integrated Marketing Communications
•Advertising •Personal selling
•Sales promotion
•Public relations
•Direct marketing

Setting the Total Promotion Budget
•One of the Hardest Marketing Decisions Facing a

Company is How Much to Spend on Promotion.
• Affordable ••Percentage
Percentage of
of Sales
Sales
• Based on What the ••Based
Basedon
onaaCertain
CertainPercentage
Percentage
• Company Can Afford ••of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales
••Objective-and-Task
Objective-and-Task ••Competitive-Parity
Competitive-Parity
••Based
Basedon
onDetermining
Determining ••Based
Basedononthe
theCompetitor’s
Competitor’s
••Objectives
Objectives&&Tasks,
Tasks,Then
Then ••Promotion
PromotionBudget
Budget
••Estimating
EstimatingCosts
Costs

UNIT-17
PERSONAL SELLING
& SALES PROMOTION

Personal Selling – Defined
•Personal selling refers to personal

communication with a an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s
organization as being the source
of the message.

Evolution of Personal Selling
•Peddlers selling door •Selling function

to door . . . served as became more
intermediaries structured
•1800s •1900s •2000s

••Industrial
As we begin•Post-Industrial
the 21 century, selling continues to develop,
st
•War and •Modern
•becomingRevolution
Revolution more professional and more relational
Depression Era
•Selling function
•Business organizations
employed salespeople became more
professional

Contributions of Personal Selling:
Salespeople and Society
• Salespeople help
stimulate the
economy
• Salespeople help with
the diffusion of
innovation

Contributions of Personal
Selling: Salespeople and the
Employing Firm
• Salespeople generate revenue

• Salespeople provide market
research and customer
feedback
• Salespeople become future
leaders in the organization

Contributions of Personal Selling:
Salespeople and the Customer
• Salespeople provide solutions

to problems
• Salespeople provide expertise
and serve as information
resources
• Salespeople serve as
advocates for the customer
when dealing with the selling
organization

Transaction-Focused vs.
Relationship Focused
•Transaction- •Relationship-
• Focused
Short term thinking • Focused
Long term thinking
• Making the sale has • Developing the
priority over most relationship takes
other considerations priority over getting
• Interaction between the sale
buyer and seller is • Interaction between
competitive buyer and seller is
• collaborative.
Salesperson is self-
interest oriented • Salesperson is
customer-oriented

Classification of
Personal Selling Approaches
• Stimulus Response Selling

• Mental States Selling
• Need Satisfaction Selling
• Problem Solving Selling

Stimulus Response Selling
•Salesperson
•Continue
•Buyer
Process until
•Provides •Responses Purchase
•Stimuli •Sought Decision

Mental States Selling
•Attention • Interest• Conviction• Desire • Action

Need Satisfaction Selling
•Present •Continue
•Uncover and
Offering to Selling until
Confirm
Satisfy Purchase
Buyer Needs
Buyer Needs Decision

Problem Solving Selling
•Continue
•Generate •Evaluate •Selling
•Define
•Alternative •Alternative •until
•Problem
•Solutions •Solutions •Purchase
•Decision

Consultative Selling
Business
•The process of helping Consultant
customers reach their
strategic goals by using Strategic
the products, service, Orchestrator
and expertise of the
selling organization.
Long-term
Ally

The Sales Process: An
Overview
•Selling
Foundations
•Initiating •Developing •Enhancing
Customer Customer Customer
•Relationships •Relationships Relationships
•Selling
Strategy

The Sales Process: Selling
Foundations
•In order to be successful in today’s global
business environment, salespeople must have a
solid relationship building foundation. They
must:
•Be Trustworthy
•Behave Ethically
•Understand Buyer Behavior
•Possess Excellent Communication Skills

The Sales Process:
Selling Strategy
•In order to be successful in today’s global
business environment, salespeople must also
think and act strategically. The must develop
strategies for:
•Each Sales Call
•Each Customer
•Their Sales Territories

•Each strategy is
related to the other

Why?
• Internal
• External

Internal reasons
• Top management is more conducive
to spending on promotions
• Line managers under greater pressure
to achieve targets
• Justification of expenditure is easy

External reasons
• Increase in number of brands
• Consumer is more price savvy
• Greater pressure from trade to liquidate
stocks
• Add effectiveness declining owing to
rising costs, media clutter and legal
constraints

SP is a push strategy
• Since it is at the last point where the
consumer is often at the point of
buying, the additional incentive makes
a last ditch effort to convert the
customer on to the incentivised brand

SP is of two types
• Trade
• Consumer

Trade promotion
• Liquidating heavy inventories
• Persuade retailers to carry stock, carry
more than usual stock, promote brand
franchise

Consumer promotion
• Stimulate purchase
• Induce trial
• Create new users
• Increase repurchase from occasional
customers
• Reward loyal customers

Forms of trade promotion
• Bulk discounts
• Free materials
• Display windows
• Shelf hiring
• Lucky draws
• ‘Mystery’ customer
• Redistribution incentives
• Shop salesmen incentives

Forms of consumer promotion
• Free samples
• Free gifts
• Coupons
• In-packs
• Price packs
• Price-offs
• Sweepstakes (kind of lottery or draw)
• Bundling offers

The more the product’s quality and its
advertising persuasiveness fail to meet
competition, the greater is the need for
promotion to improve the price – value
relationship

Promotion at different stages of the PLC
• Introduction – wise to use heavy promotion to
induce trials and promote brand franchise
• Growth – promotion should be limited ,if any
• Maturity – Higher promotions required since the
brand is under attack from competitors or
product quality or advertising effectiveness is
tapering off
• Decline – Heavy promotions. Used only to retain
a set of loyal customers. Prior to withdrawal of
the product, it could be used as a one time stock
clearance from the trade

Essential elements for an effective SP
programme
• Significant value before promotion is effective
• Promotions must be part of an overall plan
• Every brand must have a promotion objective and a
strategy statement
• A written tactical plan – time frame, costs, evaluation
yardsticks
• Factual knowledge must be gathered to plan
• Specialized professional skill and knowledge must be
applied to every promotion operations

Final considerations
• Don’t promote if the product is not good
• Promotions rarely stop a declining sales curve
• It is very easy to lose the promotional gains made if
your promotion has not been effective in retaining new
customers. So the product has to speak for itself.
• The objective of the promotion is to wean away users
from competition and create new users.
• Excessive promotions lead to diminishing returns and
may devalue the brand

Cont’d
• Promotions may be used in conjunction with advertising
and other marketing communication tools
• It should be novel and attractive
• Ensure supply lines are good and adequate stock is
available right through the promotion
• Cater for contingencies. Have escape routes built into
the plan
• Trade has to be handled tactfully
• Reimburse incentives/ rewards/ gifts promptly
• Must be within the legal boundaries

UNIT-18
ADVERTISING
AND PUBLICITY
OBJECTIVES OF
ADVERTISING
1. Building awareness
2. Creating favorable attitude
(persuasion)
3. Maintenance of loyalty
(reinforcement)

AIDA MODEL
•Interest
•Attention
•Desire •Action

• AIDA is an acronym used in marketing that describes a
common list of events that are very often undergone
when a person is selling a product or service:
• A - Attention (Awareness): attract the attention of the
customer.
• I - Interest: raise customer interest by demonstrating
features, advantages, and benefits.
• D - Desire: convince customers that they want and desire
the product or service and that it will satisfy their needs.
• A - Action: lead customers towards taking action and/or
purchasing.
• Nowadays some have added another letter to form
AIDA(S):
• S - Satisfaction - satisfy the customer so they become a
repeat customer and give referrals to a product.

Lavidge & Steiner Model
This model give importance to cognitive
evaluations. It take competition into account.
Steps of the model:
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase

Innovation & Adoption Model
This model has relevance to new product
introductions and useful for non-commercial
services or practices in developing countries.
Stages of this model:
• Awareness
• Interest
• Evaluation
• Trial
• Adoption

Limitations of Advertisement
• Advertising is in bad taste

• It insults consumer intelligence
• It appeals mainly to emotions
• It influence media
• It is not productive
• It increases cost
• It leads to monopoly
• It multiplies needs and wants

•
PUBLICITY
Information that attracts attention to a company,
product, person, or event Publicity is the
deliberate attempt to manage the public's perception
of a subject. The subjects of publicity include people
(for example, politicians and performing artists),
goods and services, organizations of all kinds, and
works of art or entertainment.
• From a marketing perspective, publicity is one
component of promotion.
• The advantages of publicity are low cost, and
credibility (particularly if the publicity is aired in
between news stories like on evening TV news
casts)

• Type of promotion that relies on public
relations effect of a news story carried
usually free by mass media . The main
objective of publicity is not sales promotion
, but creation of an image through editorial
or 'independent source' commentary. While
the publicist can control the content of the
story, he or she may not have any control
over its placement or interpretation by the
media .

Difference b/w Advertising & Publicity
• Advertising you pay for, publicity you pray for.
That's because publicity has at least ten times the
credibility of advertising.
• Advertising is a content you pay to present.
Publicity refers to free content about you that
appears in the media - what others say about
you
• Advertising is something you get by paying for it.
Publicity however, is something you hope you'll
get.
Please refer table 18.1 on page 72 for details.

UNIT-19
EMERGING ISSUES
IN MARKETING
RELATIONSHIP MARKETING
• Relationship marketing is a form of marketing

developed from direct response marketing campaigns
conducted in the 1960's and 1980's which emphasizes
customer retention and continual satisfaction rather
than individual transactions and per-case customer
resolution.
• Relationship marketing differs from other forms of
marketing in that it targets an audience with more
directly suited information on products or services
which suit retained customer's interests, as opposed to
direct or "Intrusion" marketing, which focuses upon
acquisition of new clients by targeting majority
demographics based upon prospective client lists.

• According to Leonard Berry , relationship marketing can be
applied: when there are alternatives to choose from; when
the customer makes the selection decision; and when
there is an ongoing and periodic desire for the product or
service.
• Relationship marketing has been strongly influenced by
reengineering. According to reengineering theory,
organizations should be structured according to complete
tasks and processes rather than functions. That is, cross-
functional teams should be responsible for a whole
process, from beginning to end, rather than having the
work go from one functional department to another.

ELEMENTS OF RELATIONSHIP
MARKETING
The three key elements of Relationship
management are:
• Identifying and building marketing
databases of potential and present
customers.
• Deliver differentiated messages to targeted
households.
• Track the relationship to make media
expenditures more effective and more
measurable.
MARKETING OF SERVICES
• Services marketing is marketing based on
relationship and value. It may be used to market a
service or a product.
• Marketing a service-base business is different from
marketing a product-base business.
• There are several major differences, including:
• The buyer purchases are intangible
• The service may be based on the reputation of a
single person
• It's more difficult to compare the quality of similar
services
• The buyer cannot return the service
• .

MARKETING OF SERVICES
• Service Marketing mix adds 3 more p's, i.e. people, physical

evidence, process service and follow-through are keys to a
successful venture. The major difference in the education of
services marketing versus regular marketing is that instead
of the traditional "4 P's," Product, Price, Place, Promotion,
there are three additional "P's" consisting of People,
Physical evidence, and Process. Service marketing also
includes the service scope referring to but not limited to the
aesthetic appearance of the business from the outside, the
inside, and the general appearance of the employees
themselves. Service Marketing has been relatively gaining
ground in the overall spectrum of educational marketing as
developed economies move farther away from industrial
importance to service oriented economies
INTERNET MARKETING
• Internet marketing, also referred to as
web marketing, online marketing,
Internet advertising, or e-Marketing, is
the marketing of products or services over
the Internet. When applied to the subset of
website-based advertisement placements,
Internet marketing is commonly referred to
as Web advertising

The Internet has brought many unique benefits to
marketing, one of which being lower costs for the
distribution of information and media to a global
audience. The interactive nature of Internet
marketing, both in terms of providing instant
response and eliciting responses, is a unique quality
of the medium. Internet marketing is sometimes
considered to have a broader scope because it
refers to digital media such as the Internet, e-mail,
and wireless media; however, Internet marketing also
includes management of digital customer data and
electronic customer relationship management
(ECRM) systems.

ADVANTAGES
• Internet marketing is relatively inexpensive when
compared to the ratio of cost against the reach of the
target audience
• Internet marketers also have the advantage of
measuring statistics easily and inexpensively. Nearly
all aspects of an Internet marketing campaign can be
traced, measured, and tested.
• exposure, response, and overall efficiency of Internet
media are easier to track than traditional off-line
media
• Internet marketing can offer a greater sense of
accountability for advertisers. Marketers and their
clients are becoming aware of the need to measure
the collaborative effects of marketing

LIMITATIONS
• Internet marketing requires customers to use newer

technologies rather than traditional media.
• Low-speed Internet connections are another barrier: If
companies build large or overly-complicated websites,
individuals connected to the Internet via dial-up
connections or mobile devices may experience significant
delays in content delivery.
• From the buyer's perspective, the inability of shoppers to
touch, smell, taste or "try on" tangible goods before
making an online purchase can be limiting.
• insufficient ability to measure impact, lack of internal
capability, and difficulty convincing senior management.

GREEN MARKETING
• According to the American Marketing Association, green
marketing is the marketing of products that are presumed
to be environmentally safe. Thus green marketing
incorporates a broad range of activities, including product
modification, changes to the production process,
packaging changes, as well as modifying advertising.
Environmental issues should be balanced with primary
customer needs.
• Other similar terms used are Environmental Marketing
and Ecological Marketing. Examples: Herbal
Products,CNG in Delhi, CFL etc.

‘5’ Possible reasons for Green Marketing
• Opportunities: All types of consumers, either individual or industrial
are becoming more concerned & aware about the natural
environment.
• Social responsibility: Firms are now realized that they are members
of the wider community & therefore must behave in an
environmentally responsible fashion.
• Governmental Pressure: Government regulations relating to
environmental marketing are designed to protect consumers to
reduce production of harmful goods r by-products.
• Competitive pressure: To maintain competitive position. In many
cases Firms observe competitors promoting their environmental
behaviors & attempt to emulate this behavior.
• Cost & Profit issues: Cost related issues are really complex b’coz
disposing of environmentally harmful by-products becoming
increasingly costly & difficult.

SOCIAL MARKETING
• Social marketing is the systematic application of

marketing along with other concepts and techniques to
achieve specific behavioral goals for a social good. Social
marketing can be applied to promote, for example, merit
goods, make the society avoid demerit goods and thus to
promote that considers society's well being as a whole.
This may include asking people not to smoke in public
areas, for example, ask them to use seat belts, prompting
to make them follow speed limits.
• The primary aim of 'social marketing' is 'social good',
while in 'commercial marketing' the aim is primarily
'financial'. This does not mean that commercial marketers
can not contribute to achievement of social good.

• Social marketers, dealing with goals such as reducing cigarette
smoking or encouraging condom use, have more difficult goals:
to make potentially difficult and long-term behavioral change in
target populations.
• It is sometimes felt that social marketing is restricted to a
particular spectrum of client -- the non-profit organization, the
health services group, the government agency.
• Kotler and Roberto introduced the subject by writing, “A social
change campaign is an organized effort conducted by one group
(the change agent) which attempts to persuade others (the
target adopters) to accept, modify, or abandon certain ideas,
attitudes, practices or behavior."

Components of Social Marketing
• A consumer orientation to realize organizational (social) goals

• An emphasis on the voluntary exchanges of goods and services
between providers and consumers
• Research in audience analysis and segmentation strategies
• The use of formative research in product and message design and the
protesting of these materials
• An analysis of distribution (or communication) channels
• Use of the marketing mix - utilizing and blending product, price, place
and promotion characteristics in intervention planning and
implementation
• A process tracking system with both integrative and control functions
• A management process that involves problem analysis, planning,
implementation and feedback functions.

Additional ‘3’ P’s of Marketing
1. Public: it involves internal & external groups. Internal

means who are involved in the approval or
implementation of the program & external include the
target audiences etc.
2. Partnership: There is a need to team up with other
organizations in the community to really be effective. So,
we need to figure out organizations with similar goals &
ways to work together with them.
3. Policy: Policy change is needed to motivate individual
behavior change for the long run.

Rural Marketing
• A rural market will represent a community in a rural area

with a population of 2500 to 30000.
• Rural marketing involves delivering manufactured or
processed inputs or services to rural producers or
consumers.
• Also rural market is getting an importance because of the
saturation of the urban market. As due to the competition
in the urban market, the market is more or so saturated
as most of the capacity of the purchasers have been
targeted by the marketers. So the marketers are looking
for extending their product categories to an unexplored
market i.e. the rural market.

Strategies of Rural Market
• Client and Location specific promotion involves a strategy
designed to be suitable to the location and the client.
• Joint or co-operative promotion strategy involves participation
between the marketing agencies and the client.
• 'Bundling of inputs' denote a marketing strategy, in which several
related items are sold to the target client, including arrangements of
credit, after-sale service, and so on.
• Management of demand involve continuous market research of
buyer’s needs and problems at various levels so that continuous
improvements and innovations can be undertaken for a sustainable
market performance.
• Developmental marketing refer to taking up marketing
programmes keeping the development objective in mind and using
various managerial and other inputs of marketing to achieve these
objectives.
• Media, both traditional as well as the modern media, is used as a
marketing strategy.

• Unique Selling Propositions (USP) involve presenting a theme with
the product to attract the client to buy that particular product. For
examples, some of famous Indian Farm equipment manufactures have
coined catchy themes, which they display along with the products, to
attract the target client, that is the farmers. English version of some of
such themes would read like:
• The heartbeats of rural India
• With new technique for a life time of company
• For the sake of progress and prosperity
• Extension Services denote, in short, a system of attending to the
missing links and providing the required know-how.
• Ethics in Business. form, as usual, an important plank for rural markets
and rural marketing.
• Partnership for sustainability involve laying and building a foundation for
continuous and long lasting relationship.

• Challenges: There are significant challenges to the entire process the
most important being the capacity building of the rural entrepreneurs. For
decades, the entrepreneurs associated with very conventional/traditional
knowledge of business, humiliation with government, so they are likely to
look at these initiatives with skepticism. Only consistent performance can
convince the skeptics. Therefore, the industries must play a catalytic role
to cope with this challenge and should also train the entrepreneurs to
develop their managerial and IT skills. On the other hand, the products of
the existing and popular brand also stand as threat to the rural products.
These global giants (brand) may try to suppress the rural products in the
markets with its communication hype. Therefore, developing alternative
and additional market linkages for these products is an absolute
necessity. Moreover, the low volumes of rural products, high operating
cots, high attrition, and absence of local know how and relationships may
also create problem in the process. Henceforth, it is essential to make a
way out to cope with these odds.


Marketing Management: An ISO 9001:2000 Certified Organization

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An ISO 9001:2000 Certified Organization

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• Focuses on internal capabilities of firm.

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• Type Number of Ease of Entry Product

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• Demographic Diversity and Characteristics

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•Actors – Marketing must

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MARKETING INFORMATION &

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• Kotler's marketing nerve center

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