Meaning : Meaning :The term market is derived from the Latin Word Marcatus.

Market is a place where the goods are bought and sold. In Place point of view a market may be considered as a convenient meeting place where buyer and seller gather together for exchange of goods and services. Marketing :Marketing means the activities are concerned with effecting changes in the Ownership and Possession of goods and services. Definition :According to American Marketing Association , Marketing is concerned with the people & activities involved in the flow of goods and services from production to consumer. American Marketing Association defines marketing as: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007) The Chartered Institute of Marketing (CIM) says: The management process responsible for identifying , anticipating and satisfying customer requirements profitability. Philip Kotler defines marketing as: Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Palmers marketing definition is as: Marketing is essentially about marshalling the resources of an organization so that they meet the changing needs of the customer on whom the organization depends. Dennis Adcock defines marketing as The right product, in the right place, at the right time, at the right price. 1

Aims / Objectives of marketing The group of goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. A company's marketing objectives for a particular product might include increasing product awareness among targeted consumers, providing information about product features, and reducing consumer resistance to buying the product. 1.To satisfy the customers: The marketing manager must scientifically study the demands of customers before offering the many goods or services. Selling the goods or services is not that important, as the satisfaction of the customers needs. Modern marketing thus always begins and ends with the needs of customers. 2.To increase profits for the growth of the business : The marketing department is the only department which generates revenue for the business. Sufficient profits must be earned as a result of sale of want-satisfying products. If the firm is not earning profits, it will not be able to survive in the market. Moreover, profits are also needed for the growth and diversification of the firm. 3.To generate customer base for the business: The Marketing manager must attract more and more customers to buy the firms products and services. This will also result in to increased sales. 4.To determine marketing-mix that will satisfy the needs of the customers . Product, pricing, promotion and physical distribution should be so planned as to mee the requirements of different kinds of customers. 5.To increase the quality of life of people : Marketing Management attempts to increase the quality of life of the people by providing them better products at reasonable prices. It facilitates production and distribution of a wide variety of goods and services for use by the customer. 6.To create good image: To build up the public image of firm over a period is another objective of marketing. The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers. The marketing manager attempts to increase the goodwill of its business by initiating image building activities. If a firm enjoys goodwill in a market, it will increase the morale of its sales-force. They will show greater loyalty and will develop a sense of service to the customers.This will further enhance the reputation of the business

Importance of Marketing :a) To the society :i) ii) iii) iv) v) vi) Marketing is a connective link between the producer and customer. Marketing helps to increase the standard of living of the people because of mass production, the cost per Unit bill come down. Marketing helps to increase the national income. Marketing process increases employment opportunities. Marketing removes the imbalance of supply & demand. Marketing helps to maintain economic stability.

b) To the Firms :i) ii) iii) iv) Marketing Generates revenue to the firm. Marketing section of a firm is the source of information to the top management for taking the decisions. Marketing & Innovations are the two basic functions of all business. Marketing facilitates the development of business and creates employment opportunities. Classification of Market :Market can be classified into the following ways. a) On the basis of Geographical area :i. Family Market :When exchanges are confined with in a family (or) close members of the family such a market can be called as family market. For (E.g) Soap, Paste etc ii. Local Market :When people, buyers & sellers belong to a local market, it is called Local Market the demands are limited. iii. National Market :For a certain type of commodities a country may be regarded as a market through the fast development , it is called National Market. For(e.g.) T. Vs, Amul etc.

iv. International Market :World (or) international comes up when buyers & sellers of goods evolve on World level. For(e.g.) L.G, Sony, PEPSI etc b) On the basis of Goods :i. Bullion Market :This type of market deals with the purchase (or) sale of gold (or) silver etc For(e.g.) Bullion Market of Mumbai, Kanpur etc ii. Capital Market :New (or) Growing markets need finance at every stage through capital. Market can be classified into the following. I. Money Market :It is a type of market where money is borrowed and lent. This type of market guides the people to invest the surplus fund in industrial concern and help them to take loan. (E.g) London is the Worlds biggest money market. II. Foreign Exchange Market :It is an international market, this type of market helps exports & imports in converting their currencies into foreign & Vice Versa III. Stock Exchange Market :This is the market where shares & debentures of the companies are dealt with purchase (or) sale. It is also known as security market. (E.g) Stock Exchange of Mumbai, Calcutta etc c) On the basis of Economics :A market is said to be a perfect market if the following conditions are satisfied. Perfect Market :i) ii) iii) Large number of buyers & sellers are there. Price should be informed through the market. Buyers & sellers have a perfect knowledge about the product. 4

iv)

Goods can be easily moved from one place to another place without restrictions.

Imperfect Market :i) ii) iii) A market is to be imperfect, when prices are not Uniform. There is a lack of communications. Certain restrictions on movements of goods.

d) On the basis of Regulation :I. Regulated Market :Here the market which is organized, controlled & regulated by statutory measures. For (e.g) Mumbai stock exchange. II. Unregulated Market :This is a free market there by no control with regard to the price, quantity, quality, commission etc e) On the basis of Time :I. Very Short period market :Markets which deal in perishable goods that market is called as very short period market .(E.g) Fruits, Fish, Vegetables II. Short period Market :Certain type of goods is adjusted to meet the demand, if the demand is greater than supply (E.g) Cereals etc III. Long period Market :It deals with durable goods. (E.g) Furniture

f) On the basis of volume of business :I. Wholesale Market :In this market, goods are supplied in bulk manner. II. Retail Market :In this market, goods are sold in small quantities and directly to users. 5

CLASSIFICATION OF GOODS :Goods can be classified into the following :i) Consumers goods :This type of goods are purchased by ultimate users (or) consumers for personal use (E.g) Soap, Paste, Biscuits etcIt can be classified into the following :a) Convenience goods :Customers purchase goods like Sugar, toothpaste, Newspaper etc. with minimum effort and at low cost. The demand (or) purchase cannot be postponed. b) Shopping goods :Before making final selection, the customers make an enquiry as to the comparison of rate, style, durability from different shops. Its cost is more than the Convenience goods. (E.g) Jewellary, Readymade garments. ii) Industrial goods :This type of goods are purchased by customers for business purpose (ie) Producing another product (E.g) Raw materials; Fabricated materials, Spare parts etc. iii) Speciality goods :This type of goods are having a high value and the customer may wait for Purchase. (E.g) T.V, Car etc

Basic Functions of Marketing

The marketing process performs certain activities as the goods or services move from producer to consumer. Every firm does not perform all these activities or jobs. However, any company that wants to operate its marketing system successfully must carry them out. The following marketing tasks have been recognized for a long time. 1. Selling It is core of marketing. It is concerned with the persuasion of prospective buyers to actually complete the purchase of an article. Setting pays an important part in realizing the ultimate aim of earning profit. Selling is enhanced by means of personal selling, advertising, publicity and sales promotion. 2. Buying

It involves what to buy, what quality, how much, from whom, when and at, what price. People in business buy to increase sales or to decrease costs. Purchasing agents are much influenced by quality, service and price. The products that the retailers buy for resale are determined by the need and preferences of their customers. 3. Transportation Transport is the physical means whereby goods are moved from the places where they are produced to those they are needed for consumption. Transportation is essential from the procurement of raw materials to the delivery of finished products to the customers places. Marketing relies mainly on railroads, tracks, waterways, pipelines and air transport. The type of transportation is chosen on several consideration such as suitability, speed and cost. 4. Storage It involves the holding of goods in proper condition from the time they are produced until they are needed by consumers (in case of finished products) or by the production department (in case of raw materials and stores). Storing protects the goods from deterioration and helps in carrying over surplus for feature consumption or use in production. Goods may be stored in various warehouses situated at different places. Storing assumes greater importance when production is seasonal or consumption may be seasonal. Retail firms are called stores. 5. Standardization and Grading The other activities that facilitate marketing are standardization and grading. Standardization means establishment of certain standards or specifications for products based on intrinsic physical qualities of any commodity. This may involved quantity (weight or size) or it may involve quality (colour, shape, appearance, material, taste, sweetness etc). Government may also set some standards e.g., in case of agricultural products. A standard conveys a uniformity of the products. Grading means classification of standardized products into certain well-defined classes or groups. It involves the division of products into clauses made up of unit processing similar characteristics of size and quality. Grading is very important for raw material (such as fruits and cerials), mining products (such as coal, iron-ore and mangenese) and forest products (such as timber). Branded consumer products may bear grade levels, A B C. 6. Financing It involves the use of capital to meet financial requirements of the agencies dealing with various activities of marketing. The services of providing the credit and money needed to meet the cost of getting merchandise into the hands of the final user is commonly referred to as finance, function in marketing. In marketing, finances are needed for working capital and fixed capital, which may be secured from three sources onward capital, bank loans and advances, and trade credit (provided by the manufactures to wholesaler and by the wholesaler to the retailers). 7. Risk Taking

Risk means lose due to some unforeseen circumstances in future. Risk-bearing in marketing refers to the financial risk inherent in the ownership of goods held for an anticipated demand, including the possible losses due to a fall in price and the losses from spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur with the passage of time. From production of goods to its selling stage, many risks are involved due to changes in marker conditions, natural causes and human factors. Changes in fashions or interventions also cause risks. Legislative measures of the government may also cause risks. 8. Market Information The only sound foundation, on which marketing decisions may be based, is correct and timely market information. Right facts and information reduce the aforesaid risks and thereby result in cost reduction. Business firms collect, analyze and interpret facts and information from internal sources, such as records, sales people and findings of the market research department. They also seek facts and information from external sources, such as business publications, government reports and commercial research firms. Retailers need to know about sources of supply and also about customers buying motives and buying habits. Manufacturers need to know about retailers and about advertising media. Firms in both these groups need information about competitors activities and about their markets. Even ultimate consumers need market information about availability of products, their quality standards, their prices, and also about the after-sale service facility Common sources for consumers are sales people, media advertisements, colleagues etc. S.No Marketing 1 Focuses on Customers needs. 2 Customer enjoys supreme importance. 3 4 5 6 7 Converting customers needs into product. Profits through customer satisfaction. Selling Focuses on sellers needs. Product enjoys supreme importance. Converting product into cash. Profits through sales volume.

Emphasis is given on product planning and Emphasis is placed on sale of development to match products with the market. products already produced. Integrated approach to marketing is practiced. Fragmented approach to selling is practiced. The principle of caveat vendor (let the seller The principle of caveat emptor (let beware) is followed. the buyer beware) is followed.

The Marketing Concepts The marketing concept is the philosophy that urges organization to focus on their customers needs. Analyzing their needs and making such decisions that satisfy those needs in a better way than competitors. The Production Concept (Industrial revolution 1920s)

The basic idea behind production concept was: The firms will produce what they can produce efficiently. This will ensure enough supply of the products at low-cost and demand will be created by itself. Production concept prevailed into late 1920s because most of the products being produced were the basic necessities and there was a huge unfulfilled demand for them. The Sales Concept (1930s) By early 1930s, competition had increased in production and on the other hand there was less unfulfilled demand. So, all the firms turned towards sales concept. Now the companies were not only producing the product but also sell it to customers through personal selling and advertisement. There was no concept of need identification, firms were just interested in beating competition by selling more but neglecting customers satisfaction. We can call it hard selling. The Marketing Concept After World War II, there was a variety of products available in the market and customers having discretionary income could make choices and purchase what really fulfill their needs. The main focus of all the firms turned from hard selling towards Identification of customer needs So, The marketing concept totally relies upon marketing research that helps in identification of segments, their sizes, needs, target market and then by using the right Marketing Mix, marketing teams makes such decisions that results in customers satisfaction. MARKETING FUNCTIONS :Clark & Clark divided the marketing functions into three major groups 1) Functions of Exchange 2) Functions of Physical Supply 3) Facilitating functions

1) Functions of Exchange :Exchange means transferring of goods & Ownership from seller to buyer. a) Buying :It is the first step of marketing functions. It is carried out by all marketers, manufacturers, wholesale dealers, Retailers and Consumers. Buying and Selling are inseparable in nature (ie) it happens simultaneously. If one person buys a thing then that should be someone to sell the thing (ie) without selling there is no buying. b) Assembling :It is concerned with the collection of goods from different sources for further movements (E.g) Retailers c) Selling :Selling and buying are compliment to each other, The Primary objective of marketing is to sell the products with profit. Here product & Ownership is transferred from seller to buyer 2) Functions of Physical Supply :These are the functions that are related with Creation of Place, time & utilities a) Transportation :It creates place utility because goods are transferred from seller to buyer through land, sea and air transport. b) Storage :-

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It creates time utility. Products are preserved from the time of Production to the time of Consumption. Production may be during a particular season, but demand is another (different) season. In order to meet the demand with supply, storage is essential. c) Distribution :Here the goods are distributed from storekeeper to buyer. Two types of channels of distribution are used by the manufacturer. i) Direct Channel :It means Direct contact with the producer & consumer. It is mostly applicable to service sector & industrial goods. ii) Indirect channel :It means indirect contact between Producer and Consumer (ie) So many intermediaries are there. It is applicable to consumer goods.. Manufacturer Wholesaler Retailer

3) Facilitating Functions :a) Finance :- Finance is the most fundamental aspects for any trading transactions. It is needed for Production & Marketing. The bankers and financial institutions are dealers in money (i.e.) they Provide money on credit to the business as a short term, medium term & long term. b) Risk bearing :In Marketing so many risks are involved. Some of the risks are insurable while others are not. i) Insurable risk :Loss on fire, accident etc. ii) Non-Insurable risk :Loss on account of fall in demand, Price, change in economic value etc iii) Standardisation :Standardisation is related with the division of commodities into distinct groups. Standards are fixed on physical characteristics of the products (E.g) shape, weight, size etcGrading applies certain qualitative specification (E.g) Grading of fruits, Agricultural products etc iv) Grading :According to the taste, type etcGrading starts where standardization ends. 11

v) Marketing information :The desired success of marketing depends on correct & timely decision. These decisions are based on market information (or) market intelligence. vi) Promotion :Promotion is a wide term including advertising, sales Promotion, Personal selling, Publicity etc Promotion of marketing device is to stimulate demand for a product. These are the various marketing functions. Marketing Concept :In olden days, marketing was concentrated on the functions of distribution of goods. The flow of goods from Producer to Consumer. In sale oriented aiming to maximize the profit through sales. Marketing concept is a consumers need orientation (i.e.) It aims at customer satisfaction. Today marketing concept can be expressed at find wants fill them and Love the Customers and not the products. Factors for influencing Marketing Concept :The following factors are influenced by the marketing concepts; i) Population growth :The increasing population naturally increases the demand to market are made up of people. ii) Increasing Households :The growth of demand for the household products is more than its to the total population at any time. Joint family system has become unpopular because most of the recent families are subdivided and increases the demand. (E.g) T.V, refrigerator. iii) Disposal of Income :Automation in industrial birth of many new firms etc open the door of employment when the income continues to increase, the purchasing power also increases. iv) Surplus Income :12

The people have Surplus income left after meeting the expenses on essential items, (i.e.) The surplus amount will be spent on non-necessary products (e.g.) Gold, Share etc v) Technological Development :Science & technology improves day by day New invention of products takes place often. These products will always possess good demand in the market. vi) Mass Communication Media :To growth of mass communication media- Newspapers, Magazines, T.V etc.. facilitate the buyers to learn about the New products available for sales. vii) Credit purchases :Credit purchases through hire purchase schemes and instalment schemes are common today. Credit purchase pushes sales. viii) Post purchase decision :The marketers job is not completed on sales itself (i.e.) an after sales they have to collect feedback from Customers to analyze the level of satisfaction. a) Satisfied :Customers needs are equal to actual output of the product. b) Dissatisfied :Customers needs are more than the actual output of the product. c) Delighted :Customers needs are less than the actual output of the product.

Marketing Mix Neil Borden in the year 1953 introduced the term Marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix. Elements of Marketing Mix The elements of marketing mix are often called the four Ps of marketing. 1. Product Goods manufactured by organizations for the end-users are called products. Products can be of two types - Tangible Product and Intangible Product (Services) An individual can see, touch and feel tangible products as compared to intangible products. A product in a market place is something which a seller sells to the buyers in exchange of money. 2.Price 13

The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa. Retail stores which stock unique products quote a higher price from the buyers. 3.Place Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet. 4.Promotion Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses. Promotion can be through any of the following ways: a.Advertising Print media, Television, radio are effective ways to entice customers and make them aware of the brands existence. Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas, crossings, railway stations, bus stands attract the passing individuals towards a particular brand. Taglines also increase the recall value of the brand amongst the customers. b.Word of mouth One satisfied customer brings ten more customers along with him whereas one dis-satisfied customer takes away ten more customers. Thats the importance of word of mouth. Positive word of mouth goes a long way in promoting brands amongst the customers. Lately three more Ps have been added to the marketing mix. They are as follows: People - The individuals involved in the sale and purchase of products or services come under people. Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market Physical Evidence - With the help of physical evidence, a marketer tries to communicate the USPs and benefits of a product to the end users Four Cs of Marketing Mix Now a days, organizations treat their customers like kings. In the current scenario, the four Cs has thus replaced the four Ps of marketing making it a more customer oriented model. Koichi Shimizu in the year 1973 proposed a four Cs classification. Commodity - (Replaces Products) Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost Channel - The various channels which help the product reach the target market. Communication - (Replaces Promotion)

Features of Modern Marketing :-

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The marketing Management refers to planning, organizing, directing, control of the activates which facilitate the exchange of goods and services between the producers to end consumers. Firms today need to spend money to create time, place and ownership utilities .The main features of modern marketing are as follows: Marketing is a science as well as art:* Marketing has evolved from the economics but it has a closer relationships with social and behavioral sciences. Marketing is closely associated with streams of science as well humanities and subject lines such as Economics, Law, Psychology, Anthropology, Sociology, Information Technology etc. philosophy, mathematics, statistics etc. Exchange is essence of marketing: Marketing revolves around commercial exchange. This also involves exchange of technology, exchange of information and exchange of ideas. Marketing is Goal Oriented: The ultimate goal of marketing is to generate profits through the satisfaction of the customer. Marketing is a continuous process: marketing is not an isolated, static process but is a complex, continuous and interrelated process. It involves continuous planning, implementation and control. It is an important functional area of the management. Marketing is Consumer Oriented :* All firms exist because of their business to satisfy the human needs, wants and demands. The ultimate objective of marketing is to find out what the consumer wants and how to fulfill consumer need. This leads to production of the goods and services as per the needs of the customer. Marketing starts with consumer and ends with consumer : Marketing is consumer oriented and it is very important to know what the consumer wants. UNIT II MARKETING MANAGEMENT Management :Management is the art of getting things done through with the people in formally organized group. - Koontz Management is a process involving, planning, organizing, staffing, directing and controlling human efforts in achieving the objectives of an organization. Marketing heavily depends upon the demographic features of the target market, political environment,

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Management Process:The Process of Management covers the following:i) ii) iii) iv) v) vi) vii) Situation analysis & consideration of internal & external environment & also its constraints. Defining objectives & their relationship to the resources used. Choice & combination of instruments. Preparation of plans & policies. Managing & organizing the plans. Control & Evolution of results (ie) Revenues & costs. Re-planning through feedback. The Marketing Management has to fulfill the following responsibilities:a. Sales & Market Analysis b. Determination of marketing goals c. Preparing Budgets d. Formulation of Market strategies, Policies & Procedures. e. Framing marketing mix. f. Organising all marketing activities involved in mix. g. Assembling of necessary resources like Marketing Personnel, finance etc h. Management of distribution channels. i. Effective communication, proper control & co-ordination among all the departments. j. Post sales servicing during the warranty period. MARKETING MANAGEMENT

TYPES OF MARKETING ORGANIZATION STRUCTURES Types of marketing organization structures: The marketing organization of a business can be structured on any of the following basis: a. Line and staff organization b. Functional Organization c. Product oriented marketing organization d. Customer oriented marketing organization e. Geography oriented marketing organization f. Matrix form / Combined base

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1. Line and Staff Organization: In most business forms especially medium size the marketing job is structured around few line functions and few staff functions i.e. Major staff functions is organized into separate department and the line function is responsible for sales department. The required coordination between the line and staff function is managed by the executive at higher level.

Merits: 1. Provides expert advice from specialists 2. Relives line executes of routine, specialize functions 3. Enables young sales executive to acquire expertise 4. Helps in achieving effective coordination 5. Easy to operate 6. Less Expensive Demerits: 1. Produce confusions arriving from indeterminate authority relationships 2. Curbs the authority of experts 3. Too much is expected from executives 4. Decision making is taken by top management 2. Functional: Under the organization the departments are created on the basis of specified functions to be performed i.e. The Activities related to marketing, distribution etc

Merits: 1. Division of work base on specialization 2. Relives line executives of routine and specialized functions 3. Promotes application of expert knowledge 4. Helps to increase overall efficiency Demerits: 1. Leads to complex relationships 2. Makes coordination ineffective 3. Promotes centralization 17

4. Lack of proper coordination 5. Delay in taking decisions 3. Product Oriented Marketing Organization: Organizations that produce wide variety of products often organize marketing, training and promotion with respect to a product.

Merits: 1. The salesmen can render better customer service as they possess good knowledge of product and may have close contacts with customers. 2. It makes individual departments responsible for the promotion of specific products. 3. It facilitates effective coordination Demerits: 1. It increases the employment of a number of managerial personal 2. Many salesmen of same enterprise attend same customer each representing a separate product which creates confusion in the minds of the customer. 3. There may be duplication of activities 4. Customer Oriented Marketing Organization: When the departmentation of sales organization is done on customer basis it is called customer oriented marketing organization. Deparmtnetation by customer may be done in enterprise engaged in providing specialized services to different classes of customers.

Merits: 1. It takes into account needs of each class of customers. 2. IT provides specialization among the enterprise staff

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Demerits: 1. 2. 3. 4.

It makes coordination difficult It may lead to under utilization of resources in same department There may be duplication of activities These types of sales organizations are not suitable for small enterprises.

5. Geography/Territory: In a territory oriented marketing organization , the responsibilities for marketing of various products rests almost entirely with line executives .The territory managers are given varying nomenclatures like depot manager, district manager, area manager, zonal manager , divisional manager etc.

Merits: 1. It leads to economy in terms of times and money 2. It helps in taking knowledge of local customers 3. It helps in effective control Demerits: 1. It requires employment of number of managerial personnel. 2. It dilutes control from head quarters

VI) Matrix Type Organisation :It is divided by two complementary Organisation, the functions & project. A Project manager has the project eam consisting of people from several functions. When the project work is complete, they go back to their respective departments. It is needed when a special type are urgent job or complicated job or a new product is introduced . So it is a temporary one.

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Responsibilities of Marketing Manager :Conducting Market Research Marketing managers carry out market research to gain a clear understanding of what an organization's customers really want. Marketing research enables these managers to identify new market opportunities, helping the organization create a market niche for its products or services. Market research also involves studying the organization's competitors so as to develop superior products and employ efficient marketing techniques. Companies conduct market research using questionnaires, face-to-face interviews or analyzing the buying habits of consumers. Developing the Marketing Strategy Marketing managers are responsible for developing marketing strategies for their organizations. These strategies outline clearly how an organization will promote its products and services to its target market with an aim of increasing its sales volumes and maintaining a competitive edge over its competitors. Customer Relationship Management The marketing manager performs the function of championing customer relationship management in the organization. The marketing manager collects this information from the organization's customer database to help create a customer satisfaction survey. Marketing managers then share this information with other employees to ensure they offer excellent customer service to their clients in order to build lasting relationships. Employee Management Marketing managers are in charge of the marketing department and therefore are responsible for employees within their department. They assign duties and set targets for departmental staff. It is also the function of marketing managers to perform periodic performance evaluations of the staff working for them. Identifying New Business Opportunities Marketing managers analyze market trends with an aim of identifying unexploited or new markets for the organization's products and services. Through studying the purchasing patterns of consumers, they can identify the peak and off-peak demand periods for their products. By employing sales forecasting, they can estimate future performance of the organization's products. Also through market analysis and forecasting, they can develop strategies to ensure the organization remains competitive.

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UNIT III MARKETING ENVIRONMENT Introduction :A system is a set of objects, elements or components that are interrelated with one another. These elements operate on inputs such as physical resource, human resource & the information to accomplish common objectives such as productivity & satisfaction. A system consists of inputs, processor, output & feedback. It draws inputs from its environment. It offers output in the form of products, services, information & ideas to satisfy environment demands. Processor transforms inputs into outputs. It may be a machine an individual a computer, a chemical (or) any other equipments .When the process is designed by the manager it is termed as white box. However in most cases, the transformation process is not known in detail & too complicated. Hence the processor is called as black box. Resources received by the Organisation from the environment are controllable variable. They are called inputs. The resources are plant & equipment, material, finance, labour, information, corporate image, technical & managerial know how. Factors influencing Marketing Environment :A dynamic marketing environment has three types of forces. I) External Uncontrollable forces :- (Partially Controllable) The external uncontrollable forces are acting as constraints in an Organisation at all levels. External uncontrollable forces are a) Demography :Growing population indicates growing market. A marketer is capable of developing substantial control over a target market. But he cannot have any control over the population characteristics (i.e.) age, income, occupation, education etc b) Economic Environment :Marketing plan and program are influenced by many other economic items like interest rate, Money supply, Price level, consumer credit etc inflation coupled with scarcity conditions can radically change consumer buying habits. c) Social & Cultural Environment :21

a) Social :It is usually influenced the welfare of a business concern in the long run. We have ever changing society. There are three aspects of social environment. 1) Changes in Our life style & social Values. 2) Major social problems. 3) Growing consumerism. a) Cultural :Culture, Sub-culture, Social class, reference group, family are the different factors that influence the buyer behaviour. b) Technological Factors :Development in science & technology have a very wide impact of all the marketing activities including communication marketing payment etc (E.g.) EDI Electronic Data interchange

c) Ecology Environment :- (Nature) Ecology, Economic Development & market economy are flexible in nature. (E.g.) Environmental problems & Natural Colomaties. Potential & Legal Environment :Potential & Legal forces are also affected the marketing activities (e.g.) import & export procedure, Tax rates, fiscal policies, flexible government etc. Competitive Forces :In modern World, each & every Organisation should run in a difficult manner because they are facing tough & keen competition (E.g.) T.V manufacturer often finds stiff competition not only from other T.V manufacturers alone but also from other forms of entertainment from cinema (or) other forms of recreations. So competitive environment determines the success (or) failure of the product. Demand :Customer demand is ever changing & unpredictable and also a complex one. Under the market Oriented marketing philosophy, customer needs and desire are at the center of

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marketing Universe. Marketing policies, programs & strategy are planed, organized & executed with a main objective of customer service & Satisfaction. II) Internal controllable factors :The characteristics of an employee in an organization influence the marketing plan of Organisation . 1) Demographic Environment:Yes, demographic environment is relevant to the marketer due to increase in population. In modern marketing concept, consumer is the goal of each and every Organization. So they must study the demographic environment. But it is uncontrollable. Since the marketer has to identify the customer needs and wants through research in order to avoid the overstock level, loss and also to maintain equilibrium in production & supply. Therefore each and every marketer has to study the demographic environment. 2) Economic Environment:It is also relevant to the marketer because the following factors would affect the economic conditions of the business firm. a) Demand:Demand is ever changing and it cannot be estimated at an accurate level. Whenever the marketer studies the consumer needs and wants before production, it affects the market. b) Tax Rate:The rate of tax is changed on day by day due to the Government Fluctuations. The tax rate is added in the rate of the product. So the value will increase. c) Supply:Supply also affects the economic conditions of the firm. d) Money supply:The value of money also affects the economic condition of the firm. In inflation period, the value of money is decreased but the money supply is more. Automatically, the rate of the product is increased. In deflation period the value of money is increased but the money supply is very low. Automatically, the rate of the product is decreased. 23

Conclusion:From the above factors, demographic environment & economic environment are affecting the marketing condition. So it is relevant to the marketer. Challengers before going to Global Marketing International Marketing involves all the activities that form part of domestic marketing and enterprise engaged in international marketing has to be correctly identified, assessed and interpreted the needs of the Overseas customer and carried out integrated marketing to satisfy those needs. International marketers should be ranked on several factors including market size, market growth, cost of doing business, competitive advantage & risk level. International marketing involves the performance of marketing functions of buying, selling, transportation, storage, financing, risk bearing, advertising & sales promotion in foreign market across the National border. The following defects are coming up while doing the business on international level. 1) Wide area Coverage is not possible. 2) It does not satisfy the international level customers. 3) Marketers have not fixed the international level pricing. 4) Doesnt maintain cent percent Quality 5) Absence of innovative marketing approach. 6) Absence of new technology :In order to overcome the above defects the following activities are needed in international marketing. a) Market & Product Selection :Product selection is important as market selection. All aspects of product like a basic products constitutes, features, brand names, package production, size, Labelling & usage instructions. Market selection is identified through online marketing research.

b) Market Entry :24

Establishment of joint ventures & collaborations of foreign firms for marketing the products & occasionals manufacturing. c) Distribution channel :The international marketer must take into a/c channels between nations & also channels within nations. Channels between Nations include export through middlemen in one country or direct exports to foreign customers who may be end users or middlemen in foreign countries. d) Pricing for Global Market :Firms which have a short term interest in the foreign market may fix cost plus pricing strategy. However firms with long term interest in foreign market have to adopt a market oriented pricing policy. e) International Marketing Research :Marketing planning should start with research. All the relevant information on the overseas target market must be systematically collected, updated, analysed, stored. The market must be classified by their size, customer, requirement, channel pattern, distribution methods and other relevant characteristics. f) International Marketing Communication :The Domestic marketing, the marketer is applying to people who are better known to him, using a known language, known symbol & familiar media but in international marketing, we have to tackle unfamiliar people, a storage language, unfamiliar media & Purchase Motivation. g) Procedural Complexities :A businessman is required to understand a variety of procedural complexities covering a number of areas like import Export license, customs foreign exchange, mode of payment, Documentation, insurance regulation & Quality regulation & h) Organisation for international Marketing :Firms manage their international activities, in atleast three different ways. Most firms first organize & export department, then create an international division and ultimately become a multinational organization. 25 so on

Importance of international Marketing :International market is important to the national economy & to the individual firm. a) National Economy :The developing countries need import, capital requirements, Raw material & technical know how for rapid industrialization. A high rate of economic growth when contemplated by a country is usually associated with a higher rate of export development. Sufficient export earnings are essential to cover import debt. The national income of a country can be increased to a considerable extend through effective organisation. The standard of living of people is also improved by imported item, quality product & use of improved technologies. b) Individual firm :A firm having an unutilised installed capacity after meeting the domestic market has to enter the international market. It leads to boosting up the sales. A firm is desirous to introduce new products with latest technology. Is it necessary to scan marketing Environment? Yes, it is necessary to scan the marketing environment due to the following :1) To identify the customer needs. 2) To understand the political & legal issues. 3) To identifying the competitors position. 4) To analyze what are the factors influencing the marketing Environment. Does the technology bring the changes in the lifetime of customer? Yes, the technology brings the changes in the life time of customer because demand is ever changing & unlimited (i.e.) each and every customer should like a sophisticated life.

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UNIT IV MARKET SEGMENTATION Definition:Market segmentation is defined as the process of taking the total heterogeneous market for a product & dividing into several sub market (or) segments each of which tends to be homogeneous in all significances. Criteria for successful segmentation:1) Substantiality :It refers to the size of segmented market. Segments must be large enough to permit viable market effect directed towards them. When the size of the segment becomes small, It may not be possible for the marketer to develop separate marketing mix for such unprofitable segments. 2) Measurability :The main purpose of market is to measure the change in behavoiour, patterns of consumers. It should also be remembered the Variations in consumer behaviour are numerous and complex. (E.g.) Segment of a market for a car is motivated by a number of considerations like Economy, status, quality etc 3) Access ability :It could be attained through the existing channel of distribution, advertising media, salesman etc For (e.g.) some magazines exclusively for youth & Professional peoples. 4) Representability :Normally segments should be large & profitable enough to be considered as a separate market for (e.g.) each segment will be small in the case of industrial products but large in respect of consumer goods. 5) Nature of Demand :It refers to different quantities of various segments for E.g. Assume that a firm segment is marketed by age group under 25, 25-50 & > 50. After segmenting it finds that demand in each segment is 10000 Units per month. So segmentation

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by age would be ineffective, since the variable does not affect the value of consumption of the product. 6) Responerate :The segments finally must show differences in responses to the marketing variables.

Benefits of Market segmentation:1) Marketers are in a better position to locate & compare marketing opportunities. 2) When customer needs are fully understood, marketers can effectively formulate & implement marketing plan. 3) The result obtained from market segmentation is an indicator, to adjust the production, using material, labour & other resources in a profitable manner. 4) Competitive strength & weakness can be assessed effectively & marketers can avoid keen competition & use resources more profitably by captivating customer demand. 5) Changes required may be studied & implemented without loosing markets. 6) It helps in determining the kinds of promotional devices that are effective and also helps to evaluate the results. 7) Appropriate timing for the introduction of new products, advertising etccould be easily determined. Different Bases of Market segmentation:Market can be segmented through the following manner:1) Geographic segmentation :For planning & administrative purposes, the marketer will often find it convenient to subdivide the country into areas in a systematic way. Most of the National manufacturers split up their sales territories either state wise or district wise. It is the usual & popular basis for market segmentation. Distinction between urban & rural markets is still of great importance in India. We know that urban population is better educated with higher income & shows greater mobility. Rural population has less educated, lower income & it is not so mobile. Urban people are willing to buy new kind Novel things. 2) Demographic segmentation :-

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Under this method, customers are divided into homogenous in terms of demographic factors like educational standard, income level etc a) Age group :Usually age groups are considered by manufacturter of certain special products (E.g.) Toys, chocolate, ice creams, etc b) Family Lifecycle :It refers to the important stages in the life of an Ordinary family, but it is a complex variable because buying behaviour of each & every member of family is changed. c) Social class :It is also a complex variable. It is based on income, Occupation, residence, religion, culture etc (E.g.) Young, single, Young, Married, Young, No children, Young, Married, children Older, single Older, Married, No children d) Sex :It also influences buying motives in consumer market. Certain products are demanded by women. 3) Social Economic Segmentation :It is done on the basis of social class like working class, income group. 4) Product segmentation :It is done on the basis of product categories. It is a rational approach. (E.g)

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5) Benefit segmentation :In this method, consumers are interviewed to learn the different benefits that may need from the product. 6) Volume segmentation :Another way of segmenting the market on the basis of size of purchase. 7) Marketing Factors segmentation :The responsiveness of buyer to different marketing activities is the basis for this type of segmentation. (E.g.) Price, quality, advertising & other promotional device. Marketing Segmentation Strategies :1) Undifferentiated Marketing :(One product one marketing mix for all segments) In the case of fully standardized products & where substitutes are not available, differentiation need not be undertaken. Under such circumstances, firms may adopt mass advertising and other mass methods in marketing.

2) Differentiated Marketing :(Several products, Several Marketing Mix, Relevant segments) :Under this concept, a firm decides to operate in several or all segments of the market and devices separate product marketing programs. In recent years, most firms have preferred to have a strategy of differentiated marketing because consumer demand is diversified. (E.g.)

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Cigarettes are now manufactured in a variety of filter types. It provides the customer an opportunity to select this choice from among filter, unfilter, long, short cigarettes.

3) Concentrated Marketing :(One product, One marketing mix, One segment) Instead of spreading the market, it concentrates its forces to gain a good market position in a few areas. When new products are introduced and test marketing is strategy. Here specialization in market which are really potential. (E.g.) Boost, Hindustan Limited etc 4) Particularised Marketing :Here One products, several marketing mixs, it is also known as product differentiation.

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UNIT V BUYERS BEHAVIOUR Definition:Buyer Behaviour is defined as all Psychological, social and physical behaviour of all potential customers as they become aware of evaluate, purchase, consume, & tell others about products & services. Introduction:The buyer is a riddle. He is a complex entity. His needs and desires are innumerable & they vary from security needs to aesthetic needs. These needs & desires are often at different stages of emergence & actualisation. Determinants (or) Factors influencing Buyers behaviour :Buyers do not make purchase decision in a vaccum. The buying behaviour is influenced by cultural, social, personal & psychological factors. Most of these factors are uncontrollable & beyond the hands of marketers. I. CULTURAL FACTORS :Cultural factors have the deepest influence on the buyer behaviour. a) Culture :Culture is the most basis fundamental that determines a persons wants & behaviour. Some of the prominent cultural shift today are :-

i) Leisure time:32

Most of the couples are working & hence seeking more ways to increase leisure time to spend on holiday and sports. They are interested in purchase of time saving home appliances & services like washing machine, Hotel etc ii) Health conscious:People are becoming health conscious and are important in exercise, walking, yoga and so on. iii) In formatting:People are adopting a more relaxed and informed life style that is choicing, furnishing and entertaining. b) Sub Culture :Each culture will contain smaller group of sub culture that provides more specific identification demographic variables such as Nationality, religion, geographical location, caste, age, sex etc c) Social class:It also influences buying behaviour, redistinct, social classes are upper, middle & lower classes. II. SOCIAL FACTORS :A customer behaviour is also influenced by social factors such as consumers reference group, family & social status. a) Reference group:A persons reference groups are those groups that have a direct (i.e.) face to face or indirect influence on the persons behaviour. (E.g.) Religious institutions, Professional associations etc. b) Family:The marketer is interested in knowing which the members normally has a greater influence on the purchase of a particular product or services. E.g.:Category In the purchase of product 33

Husband dominant Wife dominant Equal participation

Automobile, T.V, Computers, policies etc Washing machine, Kitchen appliances, Home appliances. Housing, recreation activities, Outside Environment.

c) Role & Status:A person is a member of many groups family, clubs, Organisation etc Define in terms of role & status. People often choose costly products to communicate their status in the society. III. PERSONAL FACTORS:A consumer purchases, decisions are also influenced by the following personal characteristics.

a) Age & stage of lifecycle:Peoples choice of goods & services change over their life time. b) Occupation:A persons occupation has a direct effect on his choice of goods & services. A clerk will purchase products which are economical where as the top executive will purchase expensive goods & services. So marketers will have to identify which occupational group will be interested in their products & services. c) Economic circumstances:A persons Economic Circumstances consist of their spendable income, savings & assests ability to borrow. Income, savings credit & assets are the elements of a persons purchasing power. d) Life style :Life style of a person conveys more than the persons personality (E.g.) Raymonds to indicate the life style of A Complete Man.

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e) Personality & self concept:Each person has got a distinctive originality which will influence buying behaviour (E.g.) self confidence, dominance etc Self concept is a related term which refers to persons self image. IV. PSYCHOLOGICAL FACTORS :For the purpose of understanding buyers behaviour, the following are the important psychological factors :a) Motivation:It can be said to be inner drive. b) Maslows Theory:Maslows Theory of needs is an attempt to explain motivation. i) ii) iii) iv) v) Self actualisation Needs. Esteem needs. Social Needs. Safety Needs Psychological Needs.

c) Perception:It is a process of selecting, organising & interpreting to events happening in environment. The behaviour of the customer is governed by the following physical perception. Eyes To see stimuli Ears To hear stimuli Skin To Touch stimuli d) Learning:It describes changes in an individuals behaviour arising from experience. e) Beliefs & Attitudes:Through learning, people acquire certain beliefs & attitudes influencing their behaviour. A belief is a thought that a person holds about something. It helps in building up product & brand images. An attitude can be said to be a Persons enduring favourable or nose To smell stimuli mouth To taste stimuli

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unfavourable cognitive & evaluation & emotional feeling & action tendencies towards some object or idea. Conclusion:The above mentioned factors (i.e.) cultural factors, social factors, personal factors & psychological factors have influenced the behaviour of the buyers. DECISION MAKING PROCESS:Every buyer is passing through the five important stages in marketing making a purchase decision. Need Recognisation:Buyer decision process starts with need Recognisation. An individual buyer is stimulated by certain internal stimuli & External stimuli. A rational buyer must be able to recognise his needs clearly. Information search:Once a buyer recognises his needs, he starts collecting information about the product. There are different ways through which information can be obtained. The sources of information may be personal or commercial. Evolution of Alternatives:After collecting the required information about the brands available in the market, a buyer makes an attempt to evaluate the performance of alternatives. Purchase Decision:During Evolution stage, a buyer ranks the brands available in the market and forms purchase intension. (i.e.) All purchase intension may not result in purchase decision. Because the attitude of others & unexpected situation may affect the purchase decision. The brand image is also playing an important role in influencing the buying decision. Post Purchase Decision:The job of a marketer is not over when a Product is bought. It is the key which must consider for post purchase behaviour of the users. The Marketer must understand the relationship between buyers expectation and the products Pereceived Performance. The Performance below the expectation of the buyers are dissatisfied. If the Perceived (Actual) 36

Performance meets the expectation, the buyer is satisfied. But the Perceived Performance exceeds expectation, the buyers are delighted. The Post Purchase Evolution will enable a market to get loyal customers. TYPES OF CUSTOMERS :i) Friendly customer:It is always to meet a friendly customer. He listens and responses inspire hope in the mind of Salesman. He will not argue or contradict the salesman statement. ii) Shy & Timid Customer:Such a customer cannot take any decision independently. He lacks confidence in his own discretion & judgement. Such customers should be taken into confidence & advised to the best course possible. He can be motivated easily. He will purchase. He can also be won as permanent customer. iii) Impulsive customer:An impulsive customer takes decision very quickly without much thinking or analyzing (i.e.) he wants quick action and less talk. iv) Undecided customer:Such a customer is also at a loss to take any decision. He is indecisive. He is in a position to eliminate the important details & Narrow down approach. v) Deliberate customer:He is aggressive (i.e.) he is not open to listen the explanations and he is emotional. vi) Silent Customer:The silent & calm customer is trying outwardly and seems to be impressed by the talk of the salesman. But the salesman should not get impatient and wait till the customer has to decide either way. vii) Snobbish Customer:Such a customer looks down upon other persons and has a very high sense of himself. Such a person can be easily satisfied. The salesman is appreciating his extraordinary intelligence and his wealth. 37

viii) Suspicious customer:He has belief neither in the quality of the product nor in the sincerity of the salesman (i.e.) He has a very poor opinion about the salesman. ix) Impatient customers:He expects the salesman to attend to him without delay. x) Rude and Sarcastic customer:This type of customer is Rude, ill mannered and even vulgar. xi) Price Minded customer:Most of the customers consider price rather than the quality. xii) Pratling customer:He is always taking and simply wants to exhibit his talents. The best way of dealing with talkative customers is to try to cut short the conversation by putting some questions and breaking the Friend of his talk. xiii) Women customer:When they come in groups, they are generally talkative, they like to bargain, and they prefer to visit the shops where they find themselves more comfortable. The salesman must not hurry women to decide quickly. The salesman must answer the various questions they like to ask, they expect some price concession. They also recommend it to other women. Social aspects of Marketing:Modern business is regarded as an integral component of society. It must have a societys approval in order to function successfully. In todays world, society is expecting much more from business than the past. Integrated business plans & controls are expected to act as instruments of social change and these plans have to be implemented in order to promote maximum public welfare. Social responsibilities means an intelligence and objectives concern for the welfare of society (i.e.) an Organisation limits or prevents individual and corporate behaviour. (monopoly)

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Social functions of marketing:Marketing Management is concerned with the following four social concern. 1) Survival:It may be the basic and ultimate objective of a business particularly under changing environment, changing den and competition. It is the best measure of economic performance & marketing activity. 2) Profitability:Business needs profits to justify its existence. The basic duty of marketing manager is to serve consumer needs profitable for long term survival goals. It is the indicator of efficiency. 3) Service:Under Customer Oriented marketing, serving the demand of customers is the central marketing functions. 4) Social responsibility:Modern business lives in a socio economic environment. Hence it is an obligation to meet in social responsibilities to its employees, the community, and the public, as well as to its Owners and customers. The following picture stress the interaction between the management and its shareholders. Shareholders in a firm are numerous and their expectation can be difficult to reconcile. Modern business is faced by critical public, challenging customers, powerful labours & exacting share holder. Modern business also provides environment free from pollution, Fair prices, fair quality, fair services to consumers, fair pay to consumers, fair working conditions, to employees & fair return on share holders investment. ECO MARKING:The Eco mark can be applied to project using natural substitute instead of synthetic materials or using wastes, or Recycled matter to produce usable consumer goods. For (e.g.) Eco Marking electric appliances using much less energy. Washing machine using much less water, transport Vehicles using less Petrol there by causing fuel conservation and minimum pollution. 39

The idea is to establish the concept of the eco mark using product based & which is also environment friendly. The Eco mark label is intended to enable consumers to choose products which are environment friendly. Like the BIS mark or the AGMARK, an ECO - MARK Product is a guarantee that its use will mean less environmental damage. For getting the Eco Mark, the product must be produced by the environment friendly Technology. The products demanding immediate Eco Marking are toilet soaps, textiles, detergents, paper, pesticides and drugs. The Prime aim of the ECO - MARK scheme is green consumerism. Recycled paper and Plastic goods and biogas energy are some examples of environment friendly goods. ISO 9000 series certification maintain minimum environmental standards in manufacturing operations. Buying Motives:Human Motives are based on needs. All human beings have different needs or variety of needs at all the time. Broadly, the human needs can be classified into Primary and secondary needs. All human needs can be classified into five hierarchical categories by Moslow. Moslows hierarchy of human needs help us to understand consumer motivations. i) Psychological Needs:Psychological Needs are basic for human survival (E.g.) Food, water, air, shelter, sleep, Thirst etc. ii) Safety & Security Needs:Safety & Security Needs are physical as well as psychological security and include safety of Person & property etc (E.g.) Insurance, Deposit etc

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iii) Social Needs:Social Needs are related to belongingness, friendship, Love, Affection etc. Most Personal care products like soap, perfume, gifts, greeting cards etc are purchased to fulfill the social Needs. iv) Self Esteem Needs:It includes needs for self respect, self confidence, competence, knowledge etc v) Self Actualisation Needs:It includes Need for optional development of potential abilities, knowledge & skills. (E.g.) Purchasing of luxury Products like jewellary, imported Cars, Fancy house etc

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