Marketing quick notes for SBI Associates 2014

Dear readers, Here we are presenting you some quick notes on Marketing which will be helpful in the upcoming SBI Associates PO - 2014 Exam.

Quick Notes:
1. Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product
or service.

2. Mass Marketing means marketing the mass produced goods.

3. Strategic marketing means decision making process that involves the analysis of the internal capabilities and external environment
of a company.
4. Stimulation marketing means there is no demand for the product and people are not interested to purchase the product hence
special offers are given to stimulate the people.
5. Synchrome marketing means irregular demand.
6. De-marketing means the demand for the product exceeds the supply.
7. Producer goods means goods which are priced high and required a few to produce other goods in the industry ex: lathe, motor etc
8. Consumer goods are required in large number and directly used by the consumer.
9. Derived goods means the demand for the product is derived from the demand of other products ex: the selling of stabilizer depends
upon the selling of TVs and refrigerator.
10. The client of an advertising agency is called Customer.
11. CRM means Customer Relationship Management.
12. Segmentation of consumer market is based on consumer characteristics and consumer responses.
13. B2B means business to business
14. Database marketing is direct form of marketing.
15. A Buyers Market means supply exceeds demands
16. Niche market means a specified market for the target group.
17. HNI marketing means High Networth Individual.
18. Relationship marketing is useful for cross selling of products.
19. Good public relations indicate

Improved marketing skills

Improved brand image

Improved customer service

20. Marketing functions includes

Designing new products

Advertisements

Publicity

After sales service

21. Effective selling skills depends on

Effective lead generation

Sales call planning

Territory allocation

Effective communication skills

22. Marketing channels mean

Delivery period

Delivery outlets

Delivery time

Delivery place

23. Marketing information means

Knowledge level of marketing staffs

Information about marketing staff

Information regarding share market

Knowledge of related markets

24. A DSA means Direct Selling Agent.

25. Service marketing resorted to in Insurance companies and banks.
26. Service marketing is same as

Internet marketing

Telemarketing

Internal marketing

Relationship marketing

27. Market segmentation helps to determine target groups.

28. The seven Ps of marketing

Product

Price

Place

Promoting

Process

People

Physical Evidence

29. SWOT Strengths Weakness Opportunities Threats.

30. Standard marketing practices include lowering the selling price.
31. USP of a product means Unique Selling Proposition.
Rosser Reeves coined the term USP.
32. MBO means Management by Objectives (Peter Drucker)
33. AIDA Attention Interest Desire Action
34. BTL Below the line
35. Right-time marketing is an approach to marketing which selects an appropriate time and place for the delivery of a marketing
message.
36. A group of related products manufactured by a single company is called product line.
37. MDSS Marketing Decision Support System.
38. Target group for the marketing of Internet Banking All the computer educated customers.
39. Innovation means new ideas and product designing.
40. Service after sale is not the function of marketing staff.
41. A good seller should have the following quality/qualities

Devotion to the work

Sympathy

Submissive

42. Planned cost service means additional profit on same cost.

43. A non-traditional, low-cost, flexible and highly effective marketing is termed as Gorilla marketing.
44. The aim of successful marketing is to increase the outlet of the seller.
45. Low end market means a market for lower price products.
46. The strategy used to charge different prices for the same product is called price discrimination.
47. The system designed to support marketing decision making is marketing information system.
48. Conversion in marketing means converting suspect into prospect.
49. MC means Marginal Cost.
50. Personalized marketing (also called personalization, and sometimes called one-to-one marketing) is an extreme form of database
marketing. Personalization tries to make a unique product offered for each customer.

SBI ASSOCIATES PO 2014 - Marketing Notes - I

What is the market?
Any structure which may be a place or may not be can be defined as the market that allows buyers and sellers to exchange any type of
goods, services and information. It can also be called as an arrangement constructed by buyers and sellers. It facilitates trade and
enables the distribution of resources in a society.

Thus a market:
1. It establishes the prices of goods and services.
2. It consists of systems, institutions, procedures, social relations and infrastructure.
3. It brings a sense of competition.
4. It works on a basic force of demand and supply.
Types of market:
On the basis of place
1. Local market
2. National market
3. International market
On the basis of time
1. Very short period market
2. Short period market
3. Long period market
4. Very long period market
On the basis of competition
1. Perfectly competitive It consists many sellers. E.g. Mobile market, internet providers etc.
2. Imperfectly competitive
(a) Monopoly one seller. E.g. Indian Railway
(b) Duopoly two sellers.
(c) Oligopoly few sellers. E.g. petroleum product market
(d) Monopolistic many sellers
On the basis of product
1. Consumer market - These are the markets where products and services bought by consumers for their own and family use.
Types:
(a) Fast moving consumers goods (FMCG)

High volume

Low unit cost

Fast and frequent purchase

E.g. Biscuits, soaps, detergents, newspapers etc.

(b) Consumer durables

Low volume

High unit cost

E.g. Freeze, TV, computers, motorbikes, laptops etc.

(c) Soft goods - It is like consumer durable.

Low/high volume

High/low unit cost

Frequently purchased

E.g. Clothes, shoes, specs etc.

(d) Services

Targeted consumers

Brand name more important

Intangible

E.g. Health insurance, beauty parlours, insurance etc.

2. Industrial market- These markets are not intended directly to consumers but among businessmen.

Finished goods market

Raw material market

Services

E.g. Accountancy, legal advice, security services, waste disposal services etc.
What is a market economy?
It is an economy system in which economic decisions regarding monetary control, products and their production and methods and
control over distribution are based on supply and demand. These are decided solely by the aggregate interaction of a countrys citizens
as consumers and businesses and there is very little government intervention or central planning.
Since in market economy, markets are governed by the law of supply and demand, the market itself will determine the price if goods
and services.
Businesses can decide which goods to produce and in what quantity and consumers can decide what they want to purchase and at
what price. The prices of goods and services are determined in a free price system. In such economy, the government allows and
protects ownership of property and exchange. Government plays an important role as the protector of property rights and individual
liberty.
In theory, market economy is completely different from practical market economy. However most developed nations today can be
classified as mixed economies, they are often said as market economies because they allow market forces to drive most of their
activities, typically engaging in government intervention only to the extent that it is needed to provide stability. It can be contrasted with
planned economy or centrally planned economy, in which government decisions drive most aspects of a country's economic activity.
What do you understand by Market Penetration?
Market Penetration is basically a strategy to increase the base or market share of the existing product. It is one of the four growth
strategies of the product market growth matrix defined by Ansoff. It occurs when a company penetrates a market in which current or
similar products already exist.
Market Penetration can be done by the following means:
(a) Attracting nonusers of the product
(b) Encouraging existing users to use more quantity of products.
(c) Advertisement
(d) Mega sales
(e) Lowering prices
(f) Bundling
Market Penetration can also be mathematically calculated using following formula
Market Penetration = (sales volume of the product 100) total sales volume of all competing products.
What is a product?
A product can be defined as anything which can be offered to a market to satisfy a need or want. Here want or need can be different
from different angles. For example if a product biscuit is sold in a market, it is satisfying the need of stomach of a person and same
time maximizing profit of the company selling the biscuit. In retail product are called as merchandise.
Product can be classified as:
1. Tangible Vehicle, cloth, gadget etc.
2. Intangible Cannot be perceived by touch. E.g. sad songs, action movies etc.
3. Branded It carries a brand name.
4. Unbranded It does not carry any brand name.
Note Goods, idea, method, information, object or service that is the end result of a process and serves as a need or want satisfier. It
is a bundle of tangible and intangible attributes like benefits, features, functions, uses etc. that a seller offers to buyers for purchase
What is a good?
It can be defined as something that is intended to satisfy some wants or needs of a customer with some economic utility.
Types:

On the basis of tangibility

(a) Tangible goods However in economics, all goods are considered tangible but in reality certain classes are not tangible like information. All
tangible goods occupy physical space.
(b) Intangible goods - Cannot be perceived by touch. E.g. information (it is different from services because final in goods can be transferrable
and traded but not services)On the basis of relative elasticity

(a) Elastic goods It is one for which there is a relatively large change in quantity due to a relatively small change in the price.
(b) Inelastic goods It is one for which there is very little change in quantity due to relative change in the price.
Note
1. Normal goods Elasticity is greater than zero.
2. Inferior goods Elasticity is smaller than zero.
3. Luxury goods Elasticity is greater than one.
4. Necessary goods Elasticity is less than one.
Other types:
(a) Convenience goods These are easily available to consumers without any extra efforts. It mostly comprises non-durable goods. E.g. fast
foods, sweets, cigarettes, etc.
(b) Staple convenience goods This type comprises basic demands like breed, sugar, milk etc.
(c) Impulse convenience goods These are goods which are bought without any prior planning with impulse. E.g. Candies, chocolates,
wafers.
(d) Consumer goods These are final goods that are brought from retail stores to meet the needs and wants.
(e) Emergency goods These are goods that are bought quickly when they are urgently needed in the time of the crisis. These are typically
distributed at the stores.
E.g. Tents, flashlights, lighters, shovels, umbrellas etc.
(f) Specialty goods These goods are unique or special enough to persuade the consumer to exert unusual effort to obtain them. It means that
they are bought after extensive research. E.g. Designer clothes, painting, perfumes, limited edition cars, stunning design, typically expensive,
antiques, diamonds, wedding gowns etc.
What is a customer?
Customer can be defined as the recipient of a good, service, product or idea obtained from a seller, vendor or supplier for a monetary or their
valuable consideration.
Types:
(a) Intermediate customer These are who purchases goods for resale.
(b)Ultimate customer These are consumers.
What is a Captive Market?
Captive markets are markets where the potential consumers face a severely limited amount of competitive suppliers Their only choices are to
purchase what is available or to make no purchase at all. Captive markets result in higher prices and less diversity for consumers. The term
therefore applies to any market where there is a monopoly or oligopoly.
Examples of captive market environments include the food markets in cinemas, airports, and
sports arenas and food in jails prisons.
What is Marketing?
Marketing is the activity, set of institutions and process for creating, communicating, delivering and exchanging offerings that have value for
customers, clients, partners and society at large. It is a function that links consumers, public to the marketer of a product through information.
Here the information addresses the issues regarding all aspects of the products. Products can be tangible or intangible. It differs from selling
because in selling, the main motive remains the maximization of profit by way of selling a product but with absence of value but in marketing value
is also considered at the par with profit. So marketing is a integrated effort to discover, create, raise and satisfy customer needs with values. It is
one of the competing concepts which can be looked as an organizational umbrella function to benefit the organization with superior customer
value.
What is niche marketing?
Niche marketing is a type of marketing in which a narrowly defined customer group is targeted. It focuses on small segment of consumers who
have unique and similar needs.
The market in which this marketing technique is applied is called niche market. E.g. Blackberry application or Android application, sports car,
luxury cars, internet based marketing etc.
This technique of marketing can be contrasted with mass marketing.
What is Relationship Marketing?
Relationship Marketing is a technique of marketing which involves creating and maintaining strong ties with customers and other parties like
dealers, suppliers, contractors, shareholders, stakeholders, employees etc.
This technique revolves around a concentric chain of long term relationship. It also includes Partner Relationship Management (PRM) apart from
Customer Relationship Management (CRM). Its main objective is to find, maintain and enhance the customer base and mutually long term
satisfying relationship.In Relationship Management buyer and seller continuously improves their understanding and thus they build up more
loyalty towards each other. The final product of this system is a
unique asset that is marketing network.
This marketing technique includes following steps:

Creating a customer database

Identifying key customers

Creating details

Getting closer through different channels

Maintaining relationship

Advantages of Relationship Management

Consistency of business within the marketing network

Long term brand recognition

Easy redressal of customer grievances