Marketing Management

Marketing management
Masters of business administration

Semiester 2
Sandeep Ghatuary
Kolhan University
Marketing management Nature, concept & Scope of Marketing
Marketing Definition - Marketing is the process of communicating the value of a product or service to customers, for
the purpose of selling the product or service. It is a critical business function for attracting customers. Marketing satisfies these needs and wants through exchange processes and building long term relationships. It is the process of communicating the value of a product or service through positioning to customers. It can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that also benefit the organization and its shareholders. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value.
Marketing Management It is the analysis, planning, implementation and control of programmes designed to bring
about desired exchanges with target audiences for the purpose of personal and of mutual gain. It relies heavily on the adoption and coordination of product, price, promotion and place for achieving responses
Nature and role of marketing - Marketing is the management process responsible for identifying, anticipating and
satisfying consumer requirements profitably. Some organizations are very close to their consumers - for example, a post office in a small town. For other organizations consumers may be thousands of miles away - for example, Cadbury Schweppes selling confectionery and soft drinks around the world. The principle that the 'Consumer is King and Queen' is just as relevant to the organisation. Identifying - This will involve answering questions such as 'How do we find out what the consumer's requirements are?' and 'How do we keep in touch with their thoughts and feelings and perceptions about our good or service. This is a key purpose of market research. Anticipating - Consumer requirements change all the time. For example, as people become richer they may seek a greater variety of goods and services. Anticipation involves looking at the future as well as at the present. What will be the Next Best Thing (NBT) that people will require tomorrow? Satisfying - Consumers want their requirements to be met. They seek particular benefits. They want the right goods, at the right price, at the right time in the right place. Profitability - Marketing also involves making a margin of profit. An organisation that fails to make a profit will have nothing to plough back into the future. Without the resources to put into ongoing marketing activities, it will not be able to identify, anticipate or satisfy consumer requirements.
FUNCTIONS OF MARKETING
1. 2. 3. 4. 5. Buying - people have the opportunity to buy products that they want. Selling - producers function within a free market to sell products to consumers. Financing - banks and other financial institutions provide money for the production and marketing of products. Storage - products must be stored and protected until they are needed. This function is especially important for perishable products such as fruits and vegetables. Transportation -products must be physically relocated to the locations where consumers can buy them. This is a very important function. Transportation includes rail road, ship, airplane, truck, and telecommunications for non-tangible products such as market information. Processing - processing involves turning a raw product, like wheat; into something the consumer can use -- for example, bread. Risk-Taking - insurance companies provide coverage to protect producers and marketers from loss due to fire, theft, or natural disasters. Market Information - information from around the world about market conditions, weather, price movements, and political changes, can affect the marketing process. Market information is provided by all forms of telecommunication, such as television, the internet, and phone. Grading and Standardizing - Many products are graded in order to conform to previously determined standards of quality. For example, when you purchase US No. 1 Potatoes, you know you are buying the best potatoes on the market.
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Marketing Concept or Marketing Orientation - Marketing orientation starts with the customer and the company strives to learn customer needs and wants, develops appropriate products or services to satisfy the customer. With the passage of time, more knowledge, and experience, customers increasingly seemed unwilling to be persuaded. More and more companies found that determining what customers wanted was a must before making a product, rather than producing products first and then persuading them to buy. The key questions became: 1. what do customers really want? 2. Can we develop it while they still want? 3. How can we keep our customers satisfied?
Marketing Environment
Marketing environment includes all the forces that directly or indirectly influence marketing operations by affecting an organisation acquisition of inputs/creation of outputs such as human, financial and natural resources and raw material, information, goods, services or ideas. The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing managements ability to build and maintain successful relationships with target customers. It is important to understand Marketing environment in order to comprehend the consumers concerns, motivations and to adjust the product according to the consumers needs. Marketers use the process of marketing environmental scans, which continually acquires information on events occurring outside the organization to identify trends, opportunities and threats to a business. The six key elements of a marketing scan are the demographic forces, socio-cultural forces, economic forces, regulatory forces, competitive forces, and technological forces. Philip Kotler, A companys marketing environment consists of the internal factors & forces, which affect the companys ability to develop & maintain successful transactions & relationships with the companys target customers.
The Environmental Factors may be classified as: 1.Internal Factor
2.External Factor 1. Internal Environmental Factors - A Companys marketing system is influenced by its capabilities regarding production, financial & other factors. Hence, the marketing management/manager must take into consideration these departments before finalizing marketing decisions. The Research & Development Department, the Personnel Department, the Accounting Department also has an impact on the Marketing Department. It is the responsibility of a manager to company-ordinate all department by setting up unified objectives. 2. External Environment Factors may be further classified into: External Micro Factors & External Macro Factors External Micro Factors: Suppliers: They are the people who provide necessary resources needed to produce goods & services. A company must build cordial & long-term relationship with suppliers. Marketing Intermediaries: They are the people who assist the flow of products from the producers to the consumers; they include wholesalers, retailers, agents, etc. These people create place & time utility. A company must select an effective chain of middlemen, so as to make the goods reach the market in time. The middlemen give necessary information to the manufacturers about the market. If a company does not satisfy the middlemen, they neglect its products & may push the competitors product. Consumers: The main aim of production is to meet the demands of the consumers. Hence, the consumers are the center point of all marketing activities. If they are not taken into consideration, before taking the decisions, the company is bound to fail in achieving its objectives. A companys marketing strategy is influenced by its target consumer. E.g.: If a manufacturer wants to sell to the wholesaler, he may directly sell to them, if he wants to sell to another manufacturer, he may sell through his agent or if he wants to sell to ultimate consumer he may sell through wholesalers or retailers. Hence each type of consumer has a unique feature, which influences a companys marketing decision. Competitors: A prudent marketing manager has to be in constant touch regarding the information relating to the competitors strategies. He has to identify his competitors strategies, build his plans to overtake them in the market to attract competitors consumers towards his products. Any company faces three types of competition:
Brand Competition: It is a competition between various companies producing similar products. E.g.: The competition between BPL & Videocon companies. The Product Form Competition: It is a competition between companies manufacturing products, which are substitutes to each other E.g.: Competition between coffee & Tea. The Desire Competition: It is the competition with all other companies to attract consumers towards the company. E.g.: The competition between the manufacturers of TV sets & all other companies manufacturing various products like automobiles, washing machines, etc. To understand the competitive situation, a company must understand the nature of market & the nature of customers. Nature of the market may be as follows: Perfect Market, Oligopoly, Monopoly, Monopolistic Market, and Duopoly Public: A Companys obligation is not only to meet the requirements of its customers, but also to satisfy the various groups. A public is defined as any group that has an actual or potential ability to achieve its objectives. The significance of the influence of the public on the company can be understood by the fact that almost all companies maintain a public relation department. A positive interaction with the public increases its goodwill irrespective of the nature of the public. A company has to maintain cordial relation with all groups, public may or may not be interested in the company, but the company must be interested in the views of the public. Public may be various types. They are: Press: This is one of the most important groups, which may make or break a company. It includes journalists, radio, television, etc. Press people are often referred to as unwelcome public. A marketing manager must always strive to get a positive coverage from the press people. Financial Public: These are the institutions, which supply money to the company. E.g.: Banks, insurance companies, stock exchange, etc. A company cannot work without the assistance of these institutions. It has to give necessary information to these public whenever demanded to ensure that timely finance is supplied. Government: Politicians often interfere in the business for the welfare of the society & for other reasons. A prudent manager has to maintain good relation with all politicians irrespective of their party affiliations. If any law is to be passed, which is against the interest of the company, he may get their support to stop that law from being passed in the parliament or legislature. General Public: This includes organizations such as consumer councils, environmentalists, etc. as the present day concept of marketing deals with social welfare; a company must satisfy these groups to be successful. External Macro Environment: Demography: It is defined as the statistical study of the human population & its distribution. This is one of the most influencing factors because it deals with the people who form the market. A company should study the population, its distribution, age composition, etc before deciding the marketing strategies. Each group of population behaves differently depending upon various factors such as age, status, etc. if these factors are considered, a company can produce only those products which suits the requirement of the consumers. In this regard, it is said that to understand the market you must understand its demography. Economic Environment: A company can successfully sell its products only when people have enough money to spend. The economic environment affects a consumers purchasing behavior either by increasing his disposable income or by reducing it. Eg: During the time of inflation, the value of money comes down. Hence, it is difficult for them to purchase more products. Income of the consumer must also be taken into account. Eg: In a market where both husband & wife work, their purchasing power will be more. Hence, companies may sell their products quite easily. Physical Environment or Natural Forces: A company has to adopt its policies within the limits set by nature. A man can improve the nature but cannot find an alternative for it. Nature offers resources, but in a limited manner. A product manager utilizes it efficiently. Companies must find the best
combination of production for the sake of efficient utilization of the available resources. Otherwise, they may face acute shortage of resources. Eg: Petroleum products, power, water, etc. Technological Factors: From customers point of view, improvement in technology means improvement in the standard of living. In this regard, it is said that Technologies shape a Persons Life. Every new invention builds a new market & a new group of customers. A new technology improves our lifestyle & at the same time creates many problems. E.g.: Invention of various consumer comforts like washing machines, mixers, etc have resulted in improving our lifestyle but it has created severe problems like power shortage. Eg: Introduction to automobiles has improved transportation but it has resulted in the problems like air & noise pollution, increased accidents, etc. In simple words, following are the impacts of technological factors on the market: They create new wants They create new industries They may destroy old industries They may increase the cost of Research & Development. Social & Cultural Factors: Most of us purchase because of the influence of social & cultural factors. The lifestyle, values, believes etc is determined among other things by the society in which we live. Each society has its own culture. Culture is a combination of various factors which are transferred from older generations & which are acquired. Our behaviour is guided by our culture, family, educational institutions, languages, etc. The society is a combination of various groups with different cultures & subcultures. Each society has its own behavior. A marketing manager must study the society in which he operates. Consumers attitude is also affected by their society within a society; there will be various small groups, each having its own culture. Eg: In India, we have different cultural groups such as Assamese, Punjabis, and Kashmiris etc. The marketing manager should take note of these differences before finalizing the marketing strategies. Culture changes over a period of time. He must try to anticipate the changes new marketing opportunities.
Marketing Information System

A marketing information system (MKIS) is defined a set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular, continuous basis. An information system can be used operationally, managerially, and strategically for several aspects of marketing. A Marketing Information System can also be defined as 'a system in which marketing data is formally gathered, stored, analyzed and distributed to managers in accordance with their informational needs on a regular basis' A marketing information system can be used operationally, managerially, and strategically for several aspects of marketing. As we all know that no marketing activity can be carried out in isolation, know when we say it doesnt work in isolation that means there are various forces could be external or internal, controllable or uncontrollable which are working on it. Thus to know which forces are acting on it and its impact the marketer needs to gathering the data through its own resources which in terms of marketing we can say he is trying to gather the market information or form a marketing information system. This collection of information is a continuous process that gathers data from a variety of sources synthesizes it and sends it to those responsible for meeting the market places needs. The effectiveness of marketing decision is proved if it has a strong information system offering the firm a Competitive advantage.
Locating data and developing information - The information needed by marketing managers comes from various
sources which include: - internal company records, marketing intelligence and marketing research. The information analysis system then processes this information to make it more useful for managers.
Internal Records - These are information gathered from sources within the company to evaluate marketing performances and to detect marketing problems and opportunities. Most marketing managers use internal records and reports regularly, especially for making day-to-day planning, implementation and control decisions. Internal records information consists of information gathered from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities. Information from internal records is usually quicker and cheaper to get
than information from other sources, but it also presents some problems. Because internal information was for other purposes, it may be incomplete or in the wrong form for making marketing decisions. For example, accounting department sales and cost data used for preparing financial statements need adapting for use in evaluating product, sales force or channel performance.
Marketing Intelligence - The total information needs of the marketing department can be specified and satisfied via a marketing intelligence network. The marketing intelligence system determines the intelligence needed, collects it by searching the environment and delivers it to marketing managers who need it. Marketing intelligence comes from many sources. Much intelligence is from the company's personnel - executives, engineers and scientists, purchasing agents and the sales force. But company people are often busy and fail to pass on important information. The company must 'sell' its people on their importance as intelligence gatherers, train them to spot new developments and urge them to report intelligence hack to the company. The company must also persuade suppliers, resellers and customers to pass along important intelligence. Some information on competitors conies from what they say about themselves in annual reports, speeches, press releases and advertisements. The company can also learn about competitors from what others say about them in business publications and at trade shows. Or the company can watch what competitors do - buying and analyzing competitors' products, monitoring their sales and checking for new patents. Companies also buy intelligence information from outside suppliers. Marketing research systems - Marketing research is a proactive search for information. That is, the enterprise which
commissions these studies does so to solve a perceived marketing problem. In many cases, data is collected in a purposeful way to address a well-defined problem .The other form of marketing research centers not on a specific marketing problem but is an attempt to continuously monitor the marketing environment. These monitoring or tracking exercises are continuous marketing research studies, often involving panels of farmers, consumers or distributors from which the same data is collected at regular intervals. Whilst the ad hoc study and continuous marketing research differs in the orientation, yet they are both proactive. Marketing Information should not be approached in an infrequent manner. If research is done this way, a firm could face these risks: 1. Opportunities may be missed. 2. There may be a lack of awareness of environmental changes and competitors actions. 3. Data collection may be difficult to analyze over several time periods. 4. Marketing plans and decisions may not be properly reviewed. 5. Data collection may be disjointed. 6. Previous studies may not be stored in an easy to use format. 7. Time lags may result if a new study is required. 8. Actions may be reactionary rather than anticipatory.
Advantages of Marketing Information System

1. 2. 3. 4. 5. 6. 7. 8. Organized data collection. A broad perspective. The storage of important data. An avoidance of crises. Coordinated marketing plans. Speed in obtaining sufficient information to make decisions. Data amassed and kept over several time periods. The ability to do a cost-benefit analysis.
The disadvantages of a Marketing information system are high initial time and labor costs and the complexity of
setting up an information system. Marketers often complain that they lack enough marketing information or the right kind, or have too much of the wrong kind. The solution is an effective marketing information system.
Marketing information system Helps For Decision making Process - Marketing information systems are intended
to support management decision making. Management has five distinct functions and each requires support from an MIS. These are: planning, organizing, coordinating, decisions and controlling Information systems have to be designed to meet the way in which managers tend to work. Research suggests that a manager continually addresses a large variety of tasks and is able to spend relatively brief periods on each of these. Given the nature of the work, managers tend to rely upon information that is timely and verbal even if this is likely to be less accurate then more formal and complex information systems. Managers play at least three separate roles: interpersonal, informational and decisional.
A marketing information system has four components: the internal reporting system, the marketing research
systems, the marketing intelligence system and marketing models. Internal reports include orders received, inventory records and sales invoices. Marketing research takes the form of purposeful studies either ad hoc or continuous. By contrast, Marketing intelligence is less specific in its purposes, Is chiefly carried out in an informal manner and By managers themselves rather than by professional marketing researchers.
Marketing Research
Market research and marketing research are often confused. 'Market' research is simply research into a specific market. It is a very narrow concept. 'Marketing' research is much broader. It not only includes 'market' research, but also areas such as research into new products, or modes of distribution such as via the Internet. Here are a couple of definitions: Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objective process as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems. Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information. "Marketing research is the function that links the consumer, customer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications."
The Marketing research Process - Marketing research is gathered using a systematic approach.
1. Define the problem. Never conduct research for things that you would 'like' to know. Make sure that you really 'need' to know something. The problem then becomes the focus of the research. For example, why are sales falling in New Zealand? 2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group? The methods of data collection will be discussed in more detail later. 3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample? 4. How will we analyze any data collected? What software will we use? What degree of accuracy is required? 5. Decide upon a budget and a timeframe. 6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain approval, then move on to step seven. 7. Go ahead and collect the data. 8. Conduct the analysis of the data. 9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes. 10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation.
Marketing Research is of use to the following:1. Producers To know about his product potential in the market vis--vis the total product New Products Various brands Pricing Market Structures and selection of product strategy, etc. 2. Business and Government - Marketing Research helps businesses and government in focusing attention on the complex nature of problems faced by them. For example: Determination of Gross National Product; Expenditure levels and budgeting and the economic policies of Government 3. Market Research Agencies - Marketing Research is being used extensively by professionals to help conducting various studies in Marketing Research. Most prominent agencies being:- Linta India Ltd; British Market Research Bureau (BMRB);Hindustan Thompson Associate Ltd; eSurveysPro.com; MARG 4. Managers
Why conduct market research?

If you're planning to start a business, or looking for finance, then the people you approach for help will want to see some evidence of market research. Starting a business always involves some degree of risk; good market research will help you reduce that risk. If you are already in business, market research continues to be very important, and should be an integral part of your daily business operation. Market research allows you to identify threats and opportunities in the market place and provides the information on which you can make informed decisions. The more accurate the information - the better the decision. Market research therefore reduces the risk involved in making these decisions. It also reduces the risk of not being able to make decisions because you did not have the information at hand (for example, a change in the market that catches you by surprise). Market research helps you to: 1. Identify new products or services. 2. Spot or anticipate market trends or changes. 3. Determine if customers are satisfied, and if not, what is wrong. 4. Keep one step ahead of your competitors. 5. Spot trends or warning signals in your own business. 6. Decide which advertising medium works best for your business. 7. Keep up to date with new technology in your industry. 8. Tell you if a new idea is likely to be viable or not, and so on.
Market research is therefore the business tool that helps you reduce the risk that a new idea will fail, and helps reduce the risk of being in business. In short, it helps you both stay in business and build a more profitable business. However, in most businesses very little research is conducted. This is because people are unsure how to perform such market research properly.
What is market research?

In its basic form, market research is simply an information gathering exercise to determine the viability of something. For example, if you have a business plan in mind, it could be the viability of the business - that is, determining the size of the market and asking: "Is there enough customers for me?" Rather than making decisions based on just your own 'gut feeling', market research leads to more informed and therefore better decision making. The good news is that it's usually perfectly possible to conduct your own market research. In fact, if you're already in a small business, you're inevitably undertaking some informal market research. When you talk to customers, or listen to the radio, or TV, or read magazines and newspapers, this is all research. All good entrepreneurs are constantly listening to the sounds of the marketplace. Some do it automatically; others learn how to do it as they proceed.
Types of market research - Market research is usually categorized into two kinds: primary research and secondary
research. In turn, the information you gather is of two types: qualitative market research information comes from actually talking to people, asking for feedback and/or opinions, while quantitative information comes from compiling figures and numbers in the form of meaningful charts, statistics, graphs and tables. 1. Primary research - Whenever you talk to customers or competitors, you're collecting primary market research information. In most cases this will be in the form of qualitative information. This is usually the most valuable market research information for your business. 2. Secondary research - This involves research conducted by other people or organisations, but whose results you may be able to use yourself. It may not be as accurate as primary research as it wasn't carried out with your specific problem in mind. However, it can be a cost effective way of gathering information about the marketplace and general trends in your industry. Sources of secondary research include: Libraries Yellow Pages Internet search engines Trade or industry organizations Research results published in the media Chambers of Commerce City or regional councils Private research companies Government departments and agencies such as Statistics New Zealand, New Zealand Trade & Enterprise and the Ministry of Commerce.
Market Segmentation
What is Segmentation?
Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.
Market Segmentation - The process of splitting customers, or potential customers, in a market into different groups,
or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition. Marketing proposition; the 'tools' or means available to the organization to improve the match between benefits sought by customers and those offered by the organization so as to obtain a differential advantage. Often referred to as the four Ps, this is usually the appropriate mix of product features, price, promotion and place (service and distribution). For the customer, this manifests itself as benefits, cost, relevant image and convenience; in other words, a customer value proposition.
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Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. A market segment is a small unit within a large market comprising of likeminded individuals. One market segment is totally distinct from the other segment. A market segment comprises of individuals who think on the same lines and have similar interests. The individuals from the same segment respond in a similar way to the fluctuations in the market.
Importance of Market Segmentation - Market segmentation is built around the consumers. In other words, the
company analyses the needs of the consumers, & the group of those consumers who have similar needs. It tries to satisfy those needs by having common marketing program, without such segmentation, market program becomes haphazard & they lead the company nowhere. A small company with limited resources can select a particular group of consumers & market its products efficiently by selecting the marketing mix suitable to that group.
Basis of Segmentation - The following factors are considered before dividing the market:
1. Geographical Factors: On the basis of geographical factors, market may be classified as state-wise, region-wise & nation-wise. Many companies operate only in a particular area because people behave differently in different areas due to various reasons such as climate, culture, etc. 2. Demographic Factors: This is the most widely used basis for market segmentation. Market is classified on the basis of population, using ages, income, sex, etc as indicators. Age: It is known fact that people of different ages like different products, need different things, & behave differently. Almost all companies use this factor to reach the target market. On the basis of age, market in our country is divided into childrens market, teenagers market, adults market, & the market for old people. Companies use the census data to prepare marketing strategies on the basis of age. Sex: There is a variation of consumption behavior between males & females. This factor is used as a basis for segmentation for products like watches, clothes, cosmetics, leather goods, magazines, motor vehicle, etc. Family Life Cycle: This is another important factor, which influences the consumers behavior. Eg: Before making purchases, a bachelor may consult his friends, a boy may ask his parents & a married man asks his wife. The study of family life cycle helps a company to prepare an effective promotional strategy. 3. Psychological factors: Personality: Most consumers are influenced by personality traits. This is particularly true in the case of urban consumers. On the basis of personality, consumers may be divided in to introverts (reserve people), talkative, status, conscious, suspicious & so on. 4. Economic Factors: On the basis of economic factors, markets have been classified in the westerns countries as follows: Upper Class Upper-upper class Lower-upper class Middle class Upper-middle class Lower-middle class Lower class Upper-lower class Lower-lower class In our country, it is classified as upper class (rich), middle class, & the lower class. Another classification based on income in our country is as follows: * Very Rich* The Rich class * The Aspiration Class *The Destitutes. 5. Behavior Factors: Occasions: Sellers can easily find out certain occasions when people buy a particular product. Eg: Demand for clothes, greeting cards, etc increases during the festival season. Demand for transportation, hotels etc increases during the holiday seasons. Benefits: Each consumer expects to fulfill certain desire or to derive some benefits from the product he purchases. Eg: A person may purchase clothes to save money & another to impress others. Based upon this, markets may be classified as markets for cheap price products & market for quality products etc. Attitude: On the basis of attitude of consumers, markets may be classified as enthusiastic market, indifferent market, positive market, & negative market.
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Benefits of Market Segmentation - The purpose of segmentation is to determine the differences among the
purchases which may affect the choice of the market area & marketing strategies. Following are some of the benefits of marketing segmentation. It helps to formulate marketing programs. It helps to understand the complex behavior of consumers Tastes & Preferences of consumers may be easily determined. It helps in locating the new markets It helps marketing programs beneficial to consumers as products are produced & sold according to their needs.
Types of Market Segmentation

1. Psychographic segmentation - The basis of such segmentation is the lifestyle of the individuals. The individuals attitude, interest, value help the marketers to classify them into small groups. 2. Behaviouralistic Segmentation - The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand. 3. Geographic Segmentation - Geographic segmentation refers to the classification of market into various geographical areas. A marketer cant have similar strategies for individuals living at different places. Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season. McDonalds in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonalds in US freely sells and promotes beef products.
Need for Market Segmentation (Why Market Segmentation)?

Market Segmentation helps the marketers to devise appropriate marketing strategies and promotional schemes according to the tastes of the individuals of a particular market segment. A male model would look out of place in an advertisement promoting female products. The marketers must be able to relate their products to the target segments. Market segmentation helps the marketers to understand the needs of the target audience and adopt specific marketing plans accordingly. Organizations can adopt a more focused approach as a result of market segmentation. Market segmentation also gives the customers a clear view of what to buy and what not to buy. An Omega watch would have no takers amongst the lower income group as they cater to the premium segment. College students seldom go to a Zodiac or Van Heusen store as the merchandise offered by these stores are meant mostly for the professionals. Individuals from the lower income group never use a Blackberry. In simpler words, the segmentation process goes a long way in influencing the buying decision of the consumers. An individual with low income would obviously prefer a Nano or Alto instead of Mercedes or BMW. Market segmentation helps the organizations to target the right product to the right customers at the right time. Geographical segmentation classifies consumers according to their locations. A grocery store in colder states of the country would stock coffee all through the year as compared to places which have defined winter and summer seasons. Segmentation helps the organizations to know and understand their customers better. Organizations can now reach a wider audience and promote their products more effectively. It helps the organizations to concentrate their hard work on the target audience and get suitable results.
Marketing management Marketing Mix

What is the marketing mix?
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The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. Read on for more details on the marketing mix. The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar! It is the same with the marketing mix. The offer you make to you customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist's palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final color. Every hand painted picture is original in some way, as is every marketing mix. If you'd like to see the marketing mix applied to a real business - then take a look at our Ryan air marketing mix. Some commentators will increase the marketing mix to the Five P's, to include people. Others will increase the mix to Seven P's, to include physical evidence (such as uniforms, facilities, or livery) and process (i.e. the whole customer experience e.g. a visit the Disney World). The term was coined by Neil H. Borden in his article The Concept of the Marketing Mix in 1965. Marketing decisions generally fall into the following four controllable categories: * Product* Price* Place* Promotion 1. Product Decisions - The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made: Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services 2. Price Decisions - Some examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination 3. Distribution (Place) Decisions - Distribution is about getting the products to the customer. Some examples of distribution decisions include: Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics
4. Promotion Decisions - In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include: Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget
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Summary of Marketing Mix Decisions

Product Functionality Appearance Quality Packaging Brand Warranty Service/Support Price List price Discounts Allowances Financing Leasing options Place Channel members Channel motivation Market coverage Locations Logistics Service levels Promotion Advertising Personal selling Public relations Message Media Budget
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PRODUCT LIFE CYCLE

Product also has various stages of life as human beings. From the time a product is introduced, till it is withdrawn from the market, it goes through 5 stages. Analysis of these stages for the purpose of repositioning the product in the market is called Product Life Cycle management. The following are the stages in a product life cycle. I. Introduction Stage II. The Growth Stage III. The Maturity Stage IV. The Saturation Stage V. The Decline Stage
Life Cycle Stages - The above stages can be shown in the following graph 1. Introduction Stages: In this stage, a new product is introduced on a large scale for the first time. Market reacts slowly to the introduction. In other words, consumers take time to accept the new product. Initially, the company may suffer losses, sales improves gradually. Most of the products fail in this stage itself. Following are the characteristics of this stage: Consumers do not have the knowledge of the product Consumers may or may not be strongly in need of the new product. If there is a need for the product, the company gets readymade demand. Otherwise, it increases slowly. Sales are minimum The competition is less, in fact the company, which introduces new product is called as a Market Pioneer. The cost of it is very high because the company spends money heavily on Research & Development, Sales, Promotion, etc. Marketing Strategies during the Introduction Stage: A company has to prepare the policies very carefully in the stages because it has a great impact on the image of a new product. Even a minor mistake results in the premature death of a product. The following are the strategies that the company may adopt in this stage: It may spend heavily on promotion & fix high price. This meets two objectives. Firstly, heavy promotion creates large demand & high price, brings immediate profits. This strategy also helps to create brand preference in the minds of the consumer. It is normally followed when there is a great need for the product, when the product belongs to the richer class & when products are consumer specialties. This second strategy is to fix high price but to spend less on promotion. This is preferred when the product has limited market, in which people have knowledge about the product & the competition is completely absent. Another strategy is to charge low price & spend heavily on promotion. This is preferable when consumers are sensitive to the price & market is wide enough. This strategy brings good returns in the long run.
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The company may charge low price & spends less on promotion. This is preferable when the consumers are informed about the product, market is very large & there is no competition for the time being. In the introduction stage, the competitors are very cautious. They do not enter the market immediately. They study the strategies of a company & watch the reaction of the consumers. This helps them to find out the defects of the companys strategy. Growth Stage: It is called the market acceptance stage. Following are its features: Consumers & traders accept the product Sales & profit increase More competitions enter the market The focus of competition is on the brand rather than the product Competitors may introduce new features to the product Distribution network increase The price will be reduced marginally. Marketing Strategies in the Growth Stage: The company tries to impress upon the consumers that its brand is superior It may introduce new models or improve the quality It may enter new market & sell its products with new distribution channels To attract more buyers, it may reduce the price. Maturity Stage: This stage indicates the capacity to face the competition, sales increases at a decreasing rate. Competition becomes severe. It is reflected in various ways such as offering discounts, modifying products etc. Marketing Strategies during Maturity Period/Stage: In this stage, the manufactures have to take responsibility to promote his product. This strategy aims at creating brand loyalty. Saturation Stage: This is the stage when the sales reach the peak point. Competition intensifies further & profit begins to decline. Small competitors may withdraw from the market because of their incapability to face the competition. Marketing Strategies: This is the stage where the marketing manager must try to reposition his product. Most of the strategies in this stage are offensive in nature. Each manufacture tries to cut down his competitors market share by aggressive promotion policy. The objective of marketing in this stage is to retain the present sales level. Decline Stage: For all products, sales invariably declines as new products enter the market. In this stage, there is a sharp decline in the profits, cost increases & market share comes down. Most of the manufactures withdraw from the market. Some may reduce production & concentrate only on a limited market. Marketing Strategies: This stage offers one of the greatest challenges to the marketing manager. He has to decide whether or not to continue with the product. The main task of marketing manager is to revitalize the demand instead of discontinuing the product immediately. It is better to withdraw gradually. Those channels of distribution, which are costly & unproductive maybe removed. In the meantime, the weak points of the marketing mix maybe identified & altered as required. Reasons for the Failure of New Product: Poor marketing research Not using the up-to-date technology High price or to costly products Poor design Inefficient marketing Non-cooperation from the middlemen Improper promotional techniques Improper timing of introduction of the new product.
Marketing management Branding

What is Branding?
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Branding is more than a name and symbol. A brand is created and influenced by people, visuals, culture, style, perception, words, messages, PR, opinions, news media and especially social media. Like when a child is born and given a name, a brand needs nurturing, support, development and continuous care in order to thrive and grow. Some brands have a life cycle and grow old like people. Some brands are timeless and never die, are born again or reinvented, while some brands live a short but powerful life and have an iconic legacy. Branding, to me, is the identity of a product or service. Its the name, the logo, the design, or a combination of those that people use to identify, and differentiate, what theyre about to buy. A good brand should deliver a clear message, provide credibility, connect with customers emotionally, motivate the buyer, and create user loyalty. Focusing on your Target Audience - It does not matter what your Brand mission is identifying and gaining the devotion of your target audience is the necessary means to reaching those objectives. To achieve your brand marketing goals it is important that you know your target market inside and out. This requires conducting a market analysis. This market analysis must be as in-depth as possible providing you will all the data you need to reach your target effectively. By knowing your target audience you will be more confident in the steps to take to connect with that audience. The power of your brand relies on the ability to focus. That is why defining your target market will help to strengthen your brand's effectiveness. There are two steps in Lesson four of the Developing Your Brand's Strategy course. The first is to conduct and informal market analysis of your target market and the second is to write a target audience definition for your company. The instructions below will walk you through the process of completing both of these steps. The objectives that a good brand will achieve include: Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty What are the objectives that you hope to achieve with your brand? - Your brand should be comprised of the company personality, image, core competencies and characteristics. The impressions that you make as well as the words people will use to describe your company to others, are the basic framework of your brand. With a strong brand you build credibility, have more influence on your market, and motivate customers and clients to purchase from you. If done correctly your company will be looked at as a leader not a follower. To determine your brand objectives ask yourself the following question: What is it that you want your brand to do for your company? What do you want others to know and say about your products or services?
Packaging
Packaging is necessary and very useful for many reasons-to advertise a product, to insure proper transport, to persuade any possible buyer and to give the product an authentic (credible) identity. Today the study and design of paper packaging, original or not, differentiates similar products. For instance: What could possibly persuade the buyer to choose between two similar coffee products produced by two different Companies? A presentable and stable package with a gift, such as a mug, that will accompany the packaged product.
THERE ARE SIX MAIN REASONS WHY PACKAGING DEVELOPED AND IS IN USE TODAY
1. 2. 3. 4. 5. 6. To protect a product from damage or contamination by micro-organisms and air, moisture and toxins. To keep the product together, to contain it (i.e. So that it does not spill). To identify the product. Protection during Transport and Ease of Transport. Stacking and Storage. Printed Information.
Purpose of Packaging
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1. Protecting Product Integrity - Wrapping protects products from disfiguring, discoloring, or oxidizing as a result of exposure to dust, bacteria, germs, ultra-violet rays and other such elements. Protecting products through packaging enables them to keep their factory-fresh flavor and taste. 2. Enhancing Convenience - The right kind of packaging provides customers the convenience of consuming products any time and any place. Great packaging makes products easy to carry as well as easy to open and use. 3. Enhancing Product Appeal - Packaging, by offering features such as colorful printing and design, convenient handling, stunning layout and display, and a sense of style and fashion, boost the commercial appeal of products and create a highly respectable image for the respective companies. 4. Improving Logistics Efficiency - Effective wrapping can reduce operating expenses involved with transporting, storing, and handling products.
PRICING METHODS
Pricing an introduction Pricing method or strategy is the route taken by the firm in fixing the price. The method/strategy must be appropriate for achieving the desired pricing objectives.
Pricing methods Cost Based Pricing Types of cost based pricing

1. Mark-up pricing The selling price is fixed by adding Mark-up or Margin to its cost. Usually used by: Distributers, Marketing firms etc Slower the turnaround of the product larger the margin and vice versa. Example: Supply co. 2. Absorption cost pricing Mainly used by manufacturing firms. It uses standard costing techniques. It includes: Fixed cost Variable cost + PAROFIT Selling and administering cost Advertisement cost It is also known as full cost pricing. 3. Target rate of return pricing Similar to Absorption cost pricing. The difference is in fixing the profit margin. The profit margin/ mark up is fixed by considering the ROI. Firm will have return objectives, like 5% of invested capital, or 10% of sales revenue. Then you arrange your price structure so as to achieve these target rates of return. Market leaders or monopolists use this pricing strategy. 4. Marginal Cost Pricing It takes cost and demand into consideration while fixing the price. It aims at maximizing contribution towards fixed cost. It gives flexibility to recover the fixed cost depending on the market condition. It also gives flexibility in recovering a large portion of cost from certain segment and a small portion from some other segment. Break-even concept Revenue / Cost (Rs) Total Cost B Variable cost Fixed Cost out Put
Pricing methods Demand Based Pricing - The pricing decision is also depending on Demand and supply of the
commodity. More realistic Types of cost based pricing are: 1. What the traffic can bear The seller sets the maximum price the buyers are willing to pay in giver circumstances. It will bring a high profit during this period. Chance of error in judgment is very high. Can be used in the following conditions. Shortage of goods Monopoly Oligopoly 2. Skimming Pricing
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Initially the products will be introduced in a high price and subsequently settle down for a lower price. Example: Mobile Phones, Televisions etc. Most of the electronic items. 3. Penetration pricing Initially introduced at a lower price and increases its price as its demand in the market increases. Good to capture new market. Opposite of skimming. Keep the product out of competition for longer time. Example: DTH Services, Magazines, TV channels etc..
Competition Oriented Pricing - It need not mean that pricing the commodity matching its competitors; it can also be the following: Premium pricing Discounted Pricing Parity Pricing/going rate pricing 1. Product line pricing The products in a given product line are related to each other. The manufacturing cost of these products also will not be much different. The need not price the product optimally but it may price the product line optimally. It is mainly indented to get optimum profit from the line. Example: Pulsar 150, 180, 200, 220 2. Tender pricing Industrial products The customers go by competitive bidding through sealed tenders. The seller can only get the best possible price. He should thoroughly analyze the competitors. 3. Affordability based Pricing Essential commodities Social welfare pricing The idea of this pricing is to make the product available to the targeted population at an affordable rate. Items usually distributed through public distribution system. Subsidies may be involved Example: Chick shampoo, Akash, medicine etc. 4. Differentiated pricing Different price for the same product in different location. (SanDisk cruzer balde Pen-drive, Petrol) The price difference may also be made in the case of customer class. Volume of purchase. (Offer packs Lux soap, Colgate value packs etc)
Advertising
The word advertising is derived from a Latin word advertising which means to turn attention toward a specific thing. Advertising is any paid form of non personal presentation and promotion of ideas, goods or services by identified sponsor. Advertising can be cost effective way to disseminate messages, whether to build a brand preference or to educate people. In developing an advertising perform, marketing manages must always stand by identifying the target market and buyer motives. Then they can make the five major decisions, known as "the Five M5. Mission: what are own advertising objectives? Money: How much can we spend? Message: What mnage should we send? Media: What media should we use? Measurement: How should we evaluate the results? According to Wheeler Advertising is any form of paid non-personal presentation of ideas, goods or services for the purpose of inducing people to buy.
Characteristics of advertising
It is non-personal communication to specific audience or consumers. It is a paid form of communication. It may be visual spoken or written. It presents the massage about the product. It is the promotion of idea, goods and services. It stimulates sales or patronage for the product. It helps indirectly for position the product in the market. It persuades people to buy a product.
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Objectives of advertising
Peroration of ground for sale of new product. Creation of demand. Educate the consumer and the users. Building up Brand Image & Brand loyalty Facing the competition. Informing about the changes. Enhancing goodwill of the fir. Performing selling job. Assisting salesman Efforts. Maintenance of demand.
Nature of advertising
Does the product possess unique, important features to focus on Unique Selling Point (USP) Are the hidden qualities important to the buyers Is the general demand trend for the product adequate Is the market potential for the product adequate Is the competitive environment favorable Is the organization able and willing to spend the required money to launch an advertising campaign
Scope of Advertising
Mass communication of consumers, user, manufactures e.tc Providing support to the dealer distributer whole seller & the sale force. Maintenance and development of brand image and loyalty amongst the customer. Promoting the overall image of trust, confidence and respect for the org among those who are closely related to the enterprise Increasing the area of advertising from local to regional, national and international fields. Evolution & development of different media of advertisement
Functions of advertising
To differentiate the product from their competitors - It includes the ability of advertising to differentiate a product so that it has its own unique identity or personality. This creates an awareness of the product & chooses the advertised product over other products this creates an awareness of the product Example: GARNIER FRUTICS (shampoo) bottle have the different color from all other shampoo. To urge product used - advertising is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the persuasion function becoming the base on which they shape their future decisions. Sampling in the way to urge the product using Example: Neutrogena acne treatment cream will remove your pimple is 24 hours. NEUTROGENA say no to pimples!!
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To expand the product distribution - When the consumer comes to know about the particular product from the advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not available in a shop then the shopkeeper consults the distributor to make that product available in his shop. To increase brand preference and loyalty - When the product delivers the promised quality, service and value .Satisfied customers also develop brand preference; each product features and uses are written on the product. Example: 99% girls who are not married will not look at the ad of pampers or any milk powder for children but when they will get married their interest will automatically move towards such ad' Brand loyalty It is a long-term customer preference for a particular product or service. It can be produced by factors such as customer satisfaction with the performance or price of a specific product or service. For instance, when one buys a tube of Colgate toothpaste and finds it ok, one will not have to spend any valuable time on looking for other toothpaste brands. To reduce overall sales cost - When a product is selling you have to teach the people about the product. Like if we would advertise through newspapers, TV, broachers & internet, it would cater huge sum of masses and if you do individually it would be more costly & time consuming. Creates new demands - Each year new products, including line extensions and new brands are introduced into groceries and drugstores. Example: Wateen telecom is offering wireless internet chips, video conferencing and WIMAX services as they are introducing new services in market its creating new demands. To communicate product information- Another function of advertising is to communicate information about the product to the customers in manner that meets their information needs. Advertisers use a variety of devices to increase the believability of their advertising make the consumer curious enough to try the product by using celebrities or experts who are the spokespersons for the product, product demonstrations, research results, and endorsements. Example: Ponds age miracle, the celebrity HADIQA KAYANI is informing the consumers that how the old women can look younger by using it continuously
Different Types of Advertising

Print Advertising - Newspapers, Magazines, Brochures, Fliers Outdoor Advertising - Billboards, Kiosks, Trade-shows and Events Broadcast Advertising - Television, Radio and the Internet Covert Advertising - Advertising in Movies Surrogate Advertising - Advertising Indirectly Public Service Advertising - Advertising for Social Causes Celebrity Advertising
Role of advertising
Manufacturers It makes mass selling possible It helps easy introduction of products in the market It help in reducing production cost It stimulate demand It protect from unfair competition It helps in creating brand image & goodwill. It helps in increasing profits of a company. Wholesaler & Retailers It supplement the selling activities It ensure economical selling It enable them to have production information It facilities selling The reputation created by advertising is also shared by wholesaler & retailers. Consumer It helps in decision making (selection) It helps the consumer to know where and when the products are available.
It acts as an informative service and educates the consumers. It is responsible for higher standard of living of the consumers It enhances consumer's satisfaction. Sale Force It makes the task of the salesman easier and simpler It makes the introduction of the product quite easy and convenient for sales man It helps in establish permanent relations with the customers. Community or Society It creates employment directly or indirectly. It is responsible for higher standard of living of the people. It is educative in nature. It makes newspaper e.tc alive It promotes art and initiative It also assures employment opportunities for the professional artists.
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Advantages of advertising
Advertising can inform people about different products and services, their utilities, cost and other requirements, and help us in making better purchases. Advertisements of non-commercial issues like AIDS, Polio can help in educating people and notifying them of events and programs related to them. For advertisers, advertisements can help in attracting huge number of potential customers and make positive impact about their products and services. Advertisements create a brand name for the product being promoted. People can recognize the products from the catchy advertisements they see and thus sales are also improved. Advertising can lead to direct feedback from customers. It has been seen that a lot of opinions are received by advertisers on their product/service, which helps in improving the product/service.
Limitation of advertising
In case the product is not approved by the public the money spent on advertising proves a waste. Advertising is repetitive in nature. Without effective salesmanship advertising cannot achieve the desired objectives. If the demand of the product is inelastic then it cannot be increasing by advertising. Products have life circle and need to be advertised as long as they survive.
Sales
A sale is the act of selling a product or service in return for money or other compensation. Signaling completion of the prospective stage, it is the beginning of an engagement between customer and vendor or the extension of that engagement.
The seller or salesperson the provider of the goods or services completes a sale in response to an acquisition or to
an appropriation to a request. There follows the passing of title (property or ownership) in the item, and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership. Ideally, a seller agrees upon a price at which he willingly parts with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale remains valid and gives rise to an obligation to pay
Sales agents - Agents in the sales process can represent either of two parties in the sales process; for example:
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Sales broker, Seller agency, seller agent, seller representative: This is a traditional role where the salesman represents a person or company on the selling end of a deal. Buyers broker or Buyer brokerage: This is where the salesman represents the consumer making the purchase. This is most often applied in large transactions. Disclosed dual agent: This is where the salesman represents both parties in the sale and acts as a mediator for the transaction. The role of the salesman here is to oversee that both parties receive an honest and fair deal, and is responsible to both. Transaction broker: This is where the salesperson represents neither party but handles the transaction only. The seller owes no responsibility to either party getting a fair or honest deal, just that all of the papers are handled properly. Sales outsourcing involves direct branded representation where the sales representatives are recruited, hired, and managed by an external entity but hold quotas, represent themselves as the brand of the client, and report all activities (through their own sales management channels) back to the client. It is akin to a virtual extension of a sales force (see sales outsourcing). Sales managers aim to implement various sales strategies and management techniques in order to facilitate improved profits and increased sales volume. They are also responsible for coordinating the sales and marketing department as well as oversight concerning the fair and honest execution of the sales process by their agents. Salesperson: The primary function of professional sales is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. Questioning to understand a customer's goal and requirements relevant to the product and the creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve their goal at an economic cost comprise the functions of the salesperson or of the sales engine (for example, the Internet, a vending machine, etc.). A good salesperson should never mis-sell or over-evaluate the customer's requirements.
Sales process
Prospecting / initial contact Pre approach - planning the sale Approach Need assessment Presentation Meeting objections Gaining commitment Follow-up
Publicity
What is Publicity?
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. Publicity is the act of attracting the media attention and gaining visibility with the public. From a marketing perspective, publicity is one component of promotion which is one component of marketing. The other elements of the promotional mix are advertising, sales promotion, and personal selling. Promotion But the publicist cannot wait around for the news to present opportunities. They must also try to create their own news. Examples of this include: Art exhibitions Event sponsorship Arrange a speech or talk Make an analysis or prediction Conduct a poll or survey Issue a report
Take a stand on a controversial subject Announce an appointment Invent then present an award Stage a debate Organize a tour of your business or projects Issue a commendation
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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). New technologies such as weblogs, web cameras, web affiliates, and convergence (phone-camera posting of pictures and videos to websites) are changing the cost-structure. The disadvantages are lack of control over how your releases will be used, and frustration over the low percentage of releases that are taken up by the media.
Public relations
Public relations (PR) is the practice of managing the spread of information between an individual or an organization and the public. Public relations may include an organization or individual gaining exposure to their audiences using topics of public interest and news items that do not require direct payment. The aim of public relations by a company often is to persuade the public, investors, partners, employees, and other stakeholders to maintain a certain point of view about it, its leadership, products, or of political decisions. Common activities include speaking at conferences, winning industry awards, working with the press, and employee communication. Public relations professionals present the public face of an organization or individual, usually to articulate its objectives and official views on issues of relevance, primarily to the media. Public relations contribute to the way an organization is perceived by influencing the media and maintaining relationships with stakeholders. Specific public relations disciplines include: Financial public relations communicating financial results and business strategy Consumer/lifestyle public relations gaining publicity for a particular product or service Crisis communication responding in a crisis Internal communications communicating within the company itself Government relations engaging government departments to influence public policy
FUNCTIONS OF PUBLIC RELATIONS

Public Relations are establishing the relationship among the two groups (organisation and public). Art or Science of developing reciprocal understanding and goodwill. It analyses the public perception & attitude, identifies the organisation policy with public interest and then executes the programmes for communication with the public.
ELEMENTS OF PUBLIC RELATIONS

A planned effort or management function. The relationship between an organisation and its publics Evaluation of public attitudes and opinions. An organizations policies, procedures and actions as they relate to said organizations publics. Steps taken to ensure that said policies, procedures and actions are in the public interest and socially responsible. Execution of an action and or communication programme. Development of rapport, goodwill, understanding and acceptance as the chief end result sought by public relations activities.
Marketing management Channels of Distribution (Physical Distribution)
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Introduction: One of the important problems of marketing is the distribution of goods & services to the right place,
person & the right time. Manufacturers often find it difficult to decide about the effective distribution system. The channel of distributions refers to the group of intermediaries, which perform the distribution functions.
Definition: According to Philip Kotler, The distribution is the set of all firms & individuals that assist in the transferring the little of goods & services as they move from producers to customers. It is also defined as The root through which goods move from the place of production of the place of consumption. Functions of the Channels:
1. Channels of distribution helps, the goods & services to move from the place of production to the place of consumption, hence they create place utility. 2. Goods are brought by the channels when they are needed. Hence they create time utility. 3. A channel reduces complexity in the distribution system 4. Inclusion of channel reduces the financial burden of the producers 5. They provide various services such as standardization, grading, etc. 6. They supply the market information to the producers 7. They help producers in promoting their sales.
Types of Channels
1. Zero-level channel (producer to consumer): It is also called as direct marketing or direct selling. This channel consists of the producer who directly sells his products to the ultimate consumers. This is the shortest, simplest, & cheapest form of distribution. Producers are benefited by increased profit, whereas consumers are benefited by reduced price. This is possible because it eliminates the middleman completely. With the development of sophisticated & efficient retailing like supermarkets, chain-stores, automatic selling machine is financially sound follow this channel of distribution. For products like jewelry & industrial goods like machinery, this is the best channel. 2. One-Level Channel (Producers Retailers Consumers or producers Wholesalers Consumers): This is a short channel where the manufacturer may himself perform some of the wholesaler. This is considered to be the best channel as it eliminates some of the marketing intermediaries & at the same time gets advantages of inclusion of retailers. In case of perishable goods, this is the best channel. When there is large scale promotion, inelastic demand & when manufactures are financially sound this channel is preferred. 3. Two-Level Channel (Manufactures Wholesalers Retailers Consumers): This is the traditional channel. It is more useful in the case of buyers, sellers, & manufactures who operate in small scale. The manufacturer sells his products in large quantities to a wholesaler who in turn sells in small quantities to retailers & finally retailers sell to ultimate consumers. Products which have low unit value & which are purchased frequently may be distributed through this channel. 4. Three Level Channel (Manufactures Wholesalers Agents Retailers Consumers): In this method manufactures appoint agent such as consignees to sell their products. It is preferable for exporters or MNCs.
Factors Affecting the Selection of Channel - Selection of a particular channel depends on various factors.
1. Market Factors: Nature of the market: When manufacturer produce consumer goods, the channel will be lengthy because the market will be large & spread throughout the country. Moreover, demand may be inelastic. In case of industrial goods, he can sell directly because buyers are concentrated in few places. Number of Companies: In case if buyers are limited in number, the manufacturer can directly sell to them. If consumers are scattered the manufacturers should go for larger channel. 2. Product Factor: Unit Value of the Product: Lower the value of the product longer will be the channel. Eg: Matchboxes, salt, etc.
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Perish ability: In case of perishable products, the shortest channel should be used because they should be sold as quickly as possible. Eg: Fruits, Vegetables, Milk, etc. Nature of Product: If the product is highly technical in nature, the manufacturer sells it to the buyers. Eg: Computers, because such products require before & after sales services, which wholesalers, & retailers cannot provide. In case of consumer goods, which are technical in nature he may appoint sales agent. Eg: Motor Vehicle, TV, etc. 3. Company Factors: Finance: If the company is financially sound, it can sell its products directly to its consumers by maintaining its own warehouse, retail shops, etc. Management Capability: If the management is capable of handling the distribution function efficiently, it can prefer a shorter channel.
Methods of Distribution:
Intensive Distribution: It is a method of selling whereby a manufacturer distributes his products through a large number of retailers & in, as many places as possible. In this case, retailers control the distribution system. Usually, consumers necessities are sold through this system. Selective Distribution: In this case, manufacturer sells their products through few retailers. Even though this method is suitable to sell all products, it is usually followed in case of industrial goods & consumer shopping & luxury goods. Ex: Motor vehicle. Exclusive Method of Distribution: In this case, the manufacturer sells his products only through a particular wholesaler or retailer. In other words, the manufacturer gives him the exclusive rights to distribute the products such a distributor is usually prohibited in dealing to the competitors product.
Types of Channel Members: A channel includes many middlemen. The term middlemen mean those individuals or
institutions, which assists a producer in the transfer of ownership of goods to consumers. Following are some of the various kinds of middlemen: Agents: These are the middlemen assist the buyers & the sellers in buying & selling of the goods without taking the ownership. Brokers: These are the agents whose main function is to bring into contact between buyers & sellers. Their powers are limited as they cannot fix price, terms of sale, etc. Wholesalers: The wholesaler is a middleman who buys from the producer directly & sells it to the retailers on a small scale for the purpose of resale.
Discount House: It is a kind of retail business dealing with consumer durables competing on the basis of price appeal with low margin & minimum consumer services. Elimination of Middlemen or are middlemen necessary in the channels: The channels of distribution are the
means through which goods are passed on to consumers. In the process thy look on various marketing functions like financing, transportation, grading, standardization, risk-bearing, etc. to perform these functions they have to incur losses. Hence, the services of middlemen will have to be paid either by the manufacturer or the consumer. Many manufacturers are trying to eliminate middlemen and have opted for direct selling because of improvement in retail techniques like automatic selling machines, telemarketing etc. It should be noted that even though Manufacturers can eliminate middlemen, they cant eliminate their functions. In other words functions performed by them must be taken over by the producers if the goods are to be made available in the market. Manufacturers try to eliminate middlemen to perform the functions of middlemen at the lowest possible cost and to serve the consumer best.
Arguments in Favor of Middlemen:

If there were no Middlemen, it would have been difficult for the producers and consumers to meet personally to buy and sell. Hence inclusion of middlemen reduces the complexities of the distribution function. Many producers do not have the resources to sell their products directly to the consumers.

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They perform some of the important marketing functions like standardization, grading, transportation, warehousing, etc this makes producers concentrate on their production activities. It is the Middlemen who help in stabilizing the prices It brings down the cost of production of some of the functions of the producers as they are taken over by the middlemen. As they purchase on large scale they also bring down the storage cost They provide important marketing information to the producers. They create place and time utilities.
Arguments in Against of Middlemen:

They are considered as parasites that for one reason or another prevent the direct contact between producers and consumers. This mistakes producers ignorant of consumers grievances which result in customer dissatisfaction which may bring down the sale. Middlemen also manipulate the economy. This misleads both the consumers and producers. Middlemen are also referred to as cost escalators. In other words, they unnecessarily increase the price of the product. They often dictate the terms of marketing. In fact, the term Black Market was the creation of middle men. They are also referred to as fair weather Friends. In other words, they only sell those products which give them maximum profits. They go on changing their Loyalties depending on the profitability. In practice they do not perform any marketing function. They simply transfer ownership without shouldering any responsibility. To conclude, it can be said that many manufacturers regard middlemen as Evils. But, all of them cant eliminate middlemen. Hence they are considered as necessary Evil.
Marketing Orientation
A marketing orientated approach means a business reacts to what customers want. The decisions taken are based around information about customers needs and wants, rather than what the business thinks is right for the customer. Most successful businesses take a market-orientated approach. A product orientated approach means the business develops products based on what it is good at making or doing, rather than what a customer wants. This approach is usually criticized because it often leads to unsuccessful products - particularly in well-established markets. Most markets are moving towards a more market-orientated approach because customers have become more knowledgeable and require more variety and better quality. To compete, businesses need to be more sensitive to their customers needs otherwise they will lose sales to their rivals. On the other hand some products are argued to create a need or want in the customer, especially products with a very high technological content. Mobile phones have moved from being a business accessory to being a big consumer brand item, with many additional gadgets, such as pictures, video and Internet access. Innovations create the need rather than the customer being able to second-guess how new technology is going to develop.
Market orientation measurement scales

The marketer scale is a 15-item, 7-point Likert-type scale, with all points specied. In this measure, market orientation is conceptualized as a one dimensional construct, with three components, namely: customer orientation, competitor orientation, and inter functional coordination. The simple average of the scores of the three components is the market orientation score. On the other hand, the mark or scale is a 20-item, 5-point Likert scale, with only the ends of the scale specied. Here market orientation is again composed of three components as well, namely: intelligence generation, intelligence dissemination, and responsiveness.
Evaluation Scales
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Our business objectives are driven primarily by customer satisfaction. We constantly monitor our level of commitment and orientation to serving customer needs. We freely communicate information about our successful and unsuccessful customer experiences across all business functions. Our strategy for competitive advantage is based on our understanding of customers needs. We measure customer satisfaction systematically and frequently. We have routine or regular measures of customer service. We are more customers focused than our competitors. I believe this business exists primarily to serve customers. We poll end user's at least once a year to assess the quality fo our products and services. Data on customer satisfaction are disseminated at all levels in this business unit on a regular basis
Performance Marketing
Performance marketing is a marketing practice used by merchants and advertisers in all industries. The clear advantage of this practice is that, unlike traditional marketing where you pay for an advertisement up front, the merchant / advertiser does not incur any marketing expenses unless clear positive results (i.e. 'performance') are obtained for the business. Performance marketing is a mutually beneficial business model where partners and affiliates promote the merchant's products and services to drive business to the merchant's website or bricks and mortar store. In return, the merchant rewards the affiliate by giving back part of the revenues generated by the referred customers. Affiliates work like an extended sales team. Compensation is based solely on the performance results obtained from impressions, clicks, registrations, deposits, turnover, revenue, or a combination of all. 'Performance Marketing' is often used interchangeably with 'Affiliate Marketing'. 'Performance Marketing' is solely concerned with clear performance results while 'affiliate marketing' incorporates all kinds of marketing where affiliates promote products and services and are rewarded back in various ways.
As explained in the 5 step process diagram above, the performance marketing life-cycle is as follows:
An affiliate signs up to the merchant's affiliate program. The affiliate promotes the merchant's business, typically by displaying adverts of the merchant's products and services on his website. Potential customers view the adverts shown on the affiliate's website, click on them and are redirected to the merchant. The merchant generates revenue from the customers that the affiliate referred. The affiliate is rewarded by the merchant according to the marketing results obtained.
Marketing management Green marketing
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Green marketing is the marketing of products that are presumed to be environmentally safe. Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. Green Marketing incorporates broad range of activities including product modification, changes to the production process, packaging changes, and modifying advertising. Green marketing focused on satisfaction of customer needs and wants with no or minimum harm to the natural environment.
Why Green Marketing is Important?

It is well known that increasing production and business activities are polluting the natural environment. Damages to people, crops, and wildlife are reported in different parts of the world. As resources are limited and human wants are unlimited, it is necessary for marketers to use resources efficiently, so that organisational objectives are achieved without waste of resources. So green marketing is inevitable. There is growing interest among people around the world regarding protection of natural environment. People are getting more concerned for environment and changing their behaviour for the protection of environment. As a result of this, the term "Green Marketing" has emerged. Hence, marketers are feeling their responsibility towards environment and giving importance to green marketing. Not only marketers but consumers are also concerned about the environment, and consumers are also changing their behaviour pattern. Now, individual as well as industrial consumers are becoming more concerned about environment-friendly products.
What is 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. Other similar terms used are Environmental Marketing and Ecological Marketing. Thus "Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption an disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services. While the shift to "green" may appear to be expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run.
GREEN PRODUCTS AND ITS CHARACTERISTICS - The products those are manufactured through green technology
and that caused no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development. We can define green products by following measures: Products those are originally grown, Products those are recyclable, reusable and biodegradable, Products with natural ingredients, Products containing recycled contents, non-toxic chemical, Products contents under approved chemical, Products that do not harm or pollute the environment, Products that will not be tested on animals, Products that have eco-friendly packaging i.e. reusable, refillable containers etc.
CHALLENGES IN GREEN MARKETING

Need for Standardization - It is found that only 5% of the marketing messages from Green campaigns are entirely true and there is a lack of standardization to authenticate these claims. There is no standardization to authenticate these claims. There is no standardization currently in place to certify a product as organic. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. A standard quality control board needs to be in place for such labeling and licensing.
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New Concept - Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach the masses and that will take a lot of time and effort. By India's ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In those aspects the consumer is already aware and will be inclined to accept the green products. Patience and Perseverance- The investors and corporate need to view the environment as a major long-term investment opportunity, the marketers need to look at the long-term benefits from this new green movement. It will require a lot of patience and no immediate results. Since it is a new concept and idea, it will have its own acceptance period. Avoiding Green Myopia - The first rule of green marketing is focusing on customer benefits i.e. the primary reason why consumers buy certain products in the first place. Do this right, and motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the green products are priced very high then again it will lose its market acceptability.
EXAMPLES OF GREEN MARKETING IN INDIA:Digital Tickets by Indian Railways. : - Recently IRCTC has allowed its customers to carry PNR no. of their ETickets on their laptop and mobiles. Customers do not need to carry the printed version of their ticket anymore. No Polythene carry bags for free :-Forest & Environmental Ministry of India has ordered to retail outlets like BigBazar,More,Central,D-Mart etc that they could provide polythene carry bags to customers only if customers are ready for pay for it. Green IT Project: State Bank of India:-By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set the right example for others to follow. SBI is also entered into green service known as Green Channel Counter. SBI is providing many services like; paper less banking, no deposit slip, no withdrawal form, no checks, no money transactions form all these transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce emissions. The wind project is the first step in the State Bank of India's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients. Lead Free Paints from Kansai Nerolac:- Kansai Nerolac has worked on removing hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can have adverse effects on humans. Lead in paints especially poses danger to human health where it can cause damage to Central Nervous System, kidney and reproductive system. Children are more prone to lead poisoning leading to lower intelligence levels and memory loss. Wipro's Green Machines:-Wipro Infotech was India's first company to launch environment friendly computer peripherals. For the Indian market, Wipro has launched a new range of desktops and laptops called Wipro Green ware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the environment.
Consumerization
Consumerization is the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations. The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development.
Key Takeaways - The Consumerization of Enterprise Marketing

Keep the Message Simple - Fundamentally, there is no difference between B2B marketing and B2C marketing. At the end of the day, whether you are selling to a large enterprise or to an individual consumer, a person is going to be the decision-maker. Rather than creating messaging and content that is dry and dull, use a
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conversational tone and use dialogue that people will understand. B2B marketing can be sexy if you do it right. Companies dont buy products, people in companies buy products. Focus on Solving Business Problems - Problems are much more expensive in B2B, and companies that are able to articulate a distinctive value proposition and present a unique case for solving a problem will be the frontrunners in B2B marketing. During the interview, Mike Troiano brings up the effect of creating sharable content. By generating compelling content that people want to share; your customers will effectively market for you as brand representatives on their own social networks. People Want to Buy, Not be sold to. - Consumers, even in the enterprise level, want to be empowered to be the decision maker. The easier you make it for them to make a purchase from you, the more apt they will be to buy your product or service.
Globalization
The Globalization of Marketing?
Since at least 10 years you hear a lot about Globalization, about the shrinking physical and mental distances between countries. Thomas Friedman calls is the Flattening of our world, other describe it as the Globe as our village phenomena. Is the same happening in our beloved marketing field? There are probably four different marketing constituents that need to be considered if one analyzes the extent of the globalization of marketing: The Consumer, Brands, the community of marketers, and the academic field of marketing. Lets review each one separately: The Consumer There is no doubt that todays consumers are much more globally oriented than ever before. The internet makes physical boundaries seem obsolete, the exchange of ideas and communication appear more borderless. But, but most consumers, especially in the US, still spend most of their discretionary income on US brands, on products and goods that are sold (definitely not manufactured) in the United States. There is only a very limited global sourcing and purchasing behavior of consumers. This is very different from businesses which are getting used to buy goods and services from anywhere. Still, the US consumer is used to shop non US brands, and thinks more and more beyond physical country boundaries but there are only a few (very rich) truly global consumers. Brands The number of truly global brands (e.g. Apple, Nokia, Hugo Boss) have increased over the last decade. One just needs to look at Toyota and their increasing leadership in the automotive industry on a global level. One can imagine that the world of brands morph into two extremes, of very global and very local brands. Brands will have to decide if they want to focus primarily on their local or their local identity. Marketers Its still pretty rare to find really global marketers in the CMOs position of Fortune 2,000 Firms. Its much more common for CEOs to have the global work experience with stints on multiple continents. CMOs still seem to follow the old rule of originating from a brands motherland. While this is partly understandable (you first need to understand the consumers mindset of the brands mother or fatherland), CMOs need to become much more global players. Unfortunately there does not seem to be a growing community of global marketers, not even within the big marketing services firms, that actively promote the global CMO. Academics The biggest lack of globalization resides within the academic community. Most US marketing academics are too busy enough in reinforcing their own US superiority while non US academics dont like to rely heavily on the US marketing leadership. Just recently I asked US academics about their favorite non US marketing personality or stimulating book. I did the same with some of their European counterparts and inquired about their favorite US marketing academic or book. In both cases I only received blank stares and uncomfortable silence.

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Marketing management

Masters of business administration

Marketing management Nature, concept & Scope of Marketing

The Environmental Factors may be classified as: 1.Internal Factor

Marketing Information System

Advantages of Marketing Information System

Why conduct market research?

What is market research?

Types of Market Segmentation

Need for Market Segmentation (Why Market Segmentation)?

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Summary of Marketing Mix Decisions

PRODUCT LIFE CYCLE

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Arguments in Against of Middlemen:

Market orientation measurement scales

Marketing management Green marketing

Why Green Marketing is Important?

What is Green Marketing?

CHALLENGES IN GREEN MARKETING

Key Takeaways - The Consumerization of Enterprise Marketing

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