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Marketing
Marketing
All those activities which make the
exchange possible.
 Exchange includes:

 Exchange of goods, services and ideas
from one person, organization and place to
another place, organization and place.

A system of business activities designed
to plan, price, place and promote goods,
services and ideas to potential
customers.
Marketing
Potential Customers
 A person, a body, an institution or a firm
who has:
 Need
 Money
 Willingness to spend money.
System
 A set of interrelated and interdependent
activities.
Marketing
Planning for marketing




What should be marketed?
When should be marketed?
Where should be marketed?
How should be marketed?
Distribution
 Pricing

 What is going to be the price of the product?

Promotion
Marketing

Product is:
 Anything that is offered for sale in the
market.
 All those things which are tangible.
Services are intangible. i.e. which are
not touchable.
 Marketing of ideas.

Marketing


Marketing ideas can be applied on non business
activities. This is called social/societal marketing.
This includes:
 Asking for donations.
 Drive slow.
 Asking for vote



Need is a state of felt deprivation.
Marketers satisfy the needs through products,
services, objects and ideas.
Market is a place where people exchange goods,
services and ideas.
Stages in Marketing

Production oriented stage
 All the efforts are made to produce more and
more.

Product oriented stage
 Management focuses on quality of product
rather than quantity of product.

Sales oriented stage
 Sellers feel the need of an organized
institution that coordinate all activities
related to sales.
Stages in Marketing

Marketing oriented stage


Unsatisfied needs of the customers are
satisfied.
Societal Marketing stage

Benefits of society are considered by the
organizations.
Utility
Ability of any commodity to satisfy the
needs.
Forms of Utility
 Time Utility

 Customer get the commodity when they
want.

Form Utility
 Converting the shape of the product from
one form to another.
Forms of Utility

Place Utility
 Transportation of product from one place to
another.

Ownership Utility
 Product owned by the manufacturer is
distributed to the end buyers through
different steps.
Difference between Marketing and
Selling
Marketing
Selling
Marketing starts before
decision of production.
Selling starts after decision
of production.
1
Marketing is a whole
system.
Marketing is a long term
process.
2
Selling is part of marketing.
3
5
4
Selling is a short term
process.
6
Simple Marketing System
Identify the unsatisfied need
Communication
Product/Service
producer/Seller
Money
Feedback
Consumer
Classification of products
 Consumer products
 Industrial products
Consumer products are consumed after
certain uses. e.g. Tea, soap, tooth paste,
shaving cream, cooking oil etc.
 Industrial products are used in industry.
e.g. Raw material, machinery


Relationship Marketing
 Developing a long term relationship with the
customers.
Factors influencing the Marketing
System
 External Marketing Environmental Factors
 Internal Marketing Environmental Factors
External Marketing Environmental
Factors


Factors which are outside the organization and
influence the system.
External factors are generally beyond the control
of one marketing firm. These include:
 Economic Forces
 Demographic Forces
○ Forces related to population.
 Cultural Forces
 Political and legal forces
 Competition
 Natural Forces
Marketing Manager

A person who plans and executes all
marketing activities.
Role of Marketing Manager
To identify the unsatisfied needs of the
customers.
 To design the product.
 Product Development.
 Pricing Decisions.
 Product Distribution.
 Communication with the customers.
 Marketing Research.
 Appointment of staff in marketing
department.

Marketing Plan
A plan for marketing programs.
 Components of marketing plan are:


Executive Summary.
 Current market situation.
 Opportunity Analysis.
 Marketing objectives.
 Marketing Strategies.
 Projected income statement.
 Control.
Marketing Mix
A combination of four P’s.
 Four P’s are:

 Product
 Price
 Place
 Promotion
Product
A set of physical and tangible attributes
assembled in an identifiable form.
 A set of things, an organization offer for
sale.
Price
 Expected price is that price at which
customers consciously or unconsciously
value the product.
Place
 Place in terms of distribution.

Promotion
Promotion is also called marketing
communication.
 Techniques used for promotion are:

 Advertising
○ Any paid form of non personal presentation for
the promotion of goods, services and ideas to
the potential customers.
 Personal Selling
 Public Relations
○ Development of direct link with general public.
Market Segmentation
Dividing the total market into smaller
parts.
 Market is heterogeneous/dissimilar.
 By segmentation, heterogeneous market
is converted into homogeneous
components.
Basis for segmentation
 Geographic Basis.
 Demographic Basis.
 Psychographic Basis.

Product Differentiation
 To differentiate the product from other
products on the basis of features.
 Product differentiation is used to avoid
competition.
Marketing Research
Marketing research is a Decision
support system (DSS).
 Collecting information from the market.
 Data Analysis.
 Dissemination of Information.

Categories of Market
Research

Market research has two categories:
 Problem identification
 Problem solving
Problem Identification
Research
To know about potential in the market for
a certain product.
 Market share of the organization.
 Image of the product in the market.
 Forecasting about demand of the
product in the market.
 General Trend in the market.

Problem Solving Research
Segmentation Research
 Product Research
 Pricing Research
 Distribution Research
 Promotion Research

Data collection

Data collection techniques will change
from situation to situation.
Types of Research Methods

Observational Research
 Observing the things and making opinions.

Survey Method
 Survey can be:
○ Through Questionnaire.
○ Through Interview.
 Interview is used at that place where
detailed information is needed.
Types of Research Methods

Focus Group
 This technique is applied at problem
identification stage.
 A group is selected through a process and is
invited at a place where they have meeting
through a mediator.
 Mediator is a person who monitor, control
and coordinate the activities.
 Everything should be recorded in this type of
technique.
Types of Research Methods

Focus Group
 Place of focus group should be very relaxed.
 Focus group can be:
○ Single focus group
○ Double focus group

Experimentation
 Relationship of cause and effect.
Consumer behavior

Study of decision making process by
which people decide to buy or not to
buy.
Influences on Consumer
behavior

Psychological Factors
 What customer feels about himself or
herself.
 These include:
○ Age
○ Gender
○ Role in the society
Influences on Consumer
behavior

Sociological Factors
 Many decisions are made because of
sociological factors.
 Many people buy a particular product
because of social needs.
Steps for Decision Making
Process

Recognition of need
 Someone feels that something is missing.
Collection of information
 Comparison of alternatives
 Purchase decision
 Post purchase decision

Product
Anything that can be offered for sale by
an organization.
 Product can be:

 Tangible
 Intangible
Benefits are basic features of the
product.
 Every product has a set of features to
identify itself.

Classification of Products

Products are classified in various ways.
Mainly, these are divided into:
 Consumer Products
 Industrial Products
Categories of consumer
goods

Convenience goods
 Goods which are convenient to buy for the
customer.
 Customer has complete awareness of the
product.
 Customer buy these products frequently.
Categories of consumer
goods
Shopping Goods
 Specialty goods

 For these products, customers have strong
brand loyalty.
Industrial Goods

Goods used in the industry.
Categories of industrial goods
 Capital items
 Expense items
Categories of industrial goods

Capital Items
 These are long lived and expensive goods.
 Sometimes copyrights are purchased. These
are also capital goods.

Expense Items
 These can be:
○ Raw Material
 Oil
 Grease
○ Some tools
Use of Product Life Cycle in Decision
Making Process

Introduction Stage
 At this stage, customers of the product are
venturesome (Who like to try new ideas).
 Marketers can keep the prices high
because:
○ Customer can afford to spend more money.
○ High Cost.
 There will not be much profit at this stage.
Use of Product Life Cycle in Decision
Making Process

Growth Stage
 Marketers will earn more profit due to:
○ Small number of manufacturers
○ Less Competition
○ High Sales
Use of Product Life Cycle in Decision
Making Process

Maturity stage
 Marketers will:
○ Reduce the price due to more competition.
○ Spend money on research and development.
○ Spend money to promote the brand name of
the product.
 Marketers will also revise their marketing
strategies. i.e. They will find new segments
of the market for their product.
 Per unit profit might reduce at this stage.
Use of Product Life Cycle in Decision
Making Process

Decline Stage
 Marketers should sell the products to
selective customers.
 At this stage, marketers will introduce
innovations in the product to keep their sales
high.
Branding Products
Brand is a symbol, a sign, a color, a
design or a combination of all these
things to identify a product.
 Branding is a process in which any
identification is suggested for the
product.
 Brand Equity

Types of Brand Names

National Brands
 A brand that is sold throughout the country.

License Brands
 Seller buys the right to sell that brand in the
market.

Private Brands
Packaging and Labeling

Packaging
 Dress of the product.
 Designing and making of the wrapper of the
product.

Labeling
 Part of package containing name, contents
and name of manufacturer of the product is
called a label.