INTRODUCTION

Marketing management refers to

management of all the activities related
to market.Traditionally there was no
difference between selling and
marketing but modern age is the age of
globalisation where consumers play a
very important role and marketing
strategies also have become very
important
 DEFINITIONS

Marketing management is the analysis ,planning,implementation and

control of programmes designed to create ,build,maintain mutually
beneficial exchanges and relationships with target market for the
purpose of achieving organisational objectives -
Philip Koetler
Marketing is the business process by which products are matched with
the markets and through which transfers of ownership are effected
Cundiff and Still
Marketing is that phase of business activity through which the human
wants are satisfied by the exchange of goods and services
J.F Pyle
All the modern defenitions of marketing are based on philosophy that
“Satisfaction of consumers is the basic purpose of business”
 SOME CONCEPTS AND TERMS RELATED WITH MARKET

Market:
Traditionally was defined as a place where buyers and sellers
meet each other and conduct buying and selling activities
The usage of the term market indicates various things such as
(a)Nature of the product which is traded in the market for example ,Subzi
market ,cloth market etc
(b)Volume of trade taking place .Where goods are traded in bulk is called
whole sale market and where goods are sold in small quantity is known
as retail market

Customer
The customer must have need ,want and demand
NEED: It refers to basic necessities of life for example
food,cloth,shelter ,water etc.These things are must for survival
 SOME CONCEPTS AND TERMS RELATED WITH MARKET

WANT:
Want refers to what customer desires to have after fulfilling his
basic needs
DEMAND:
When want is bagged by purchasing power then it gets
converted in to demand
Marketing:
Marketing is the social process by which individuals and groups
Obtain what they need and want through creating ,offering and freely
exchanging products and services of value with others
FEATURES OF MARKETING:
1.Need and Want
2.Creating a market offering
3.Customer value
4.Exchange Mechanism
 MARKETING MANAGEMENT

Marketing management involve the following activities

1.Choosing a Target Market
2.Growing Customers in Target market
3.Creating a superior value

MARKETING AND SELLING

Selling is just a part of marketing activities

Marketing is a wide term ,it includes wide range of activities such as
planning the designing of product,pricing the product ,selling the product
,after sale service,satisfaction of customers.Selling refers to sale of goods
or services through publicity ,promotion and salesmanship .In selling
,product is converted in to cash
 Differences Between Selling and Marketing
Point of Selling Marketing
Difference
1.Focus/Emphasis Selling Focuses on the need Marketing focuses on the
of seller need of customer
2.Objective Main objective of the selling Main objective of
is to maximise the profit and marketing is earning
sale optimum profit with
3.Scope Scope of selling is limited to customer satisfaction
exchange of goods or Scope of marketing is very
services for some wide.It includes activities
considerations like creation of
demand,designing of
product according to
demand ,using promotional
technique and after sale
survey to find out customer
4.Start and end satisfaction
Selling starts after Marketing starts much
production and ends with the before production and
sale of product continues even after sale
 Differences Between Selling and Marketing
Point of Selling Marketing
Difference
5.Efforts Seller uses promotional Marketeer uses integrated
techniques and some market strategies to capture
manipulative tactics also to big share in the market
increase the sale
6.Supremacy Producer is considered king Consumer is considered ki
pin of market ng pin of market

7.Approach It involves fragmented It involves integrated

approach to sell all that is approach to identify and
produced by hook or by satisfy customers approach
crook
8.Demand It assumes demand for the Demand is created by
products producing product
according to need of
customer
Marketing management Philosaphies

1.Production concept
2.Product concept
3.Selling Concept
4.Marketing concept
5.Societal concepts
 OBJECTIVES OF MARKETING MANAGEMENT

1.Creation of demand
2.Market share
3.Goodwill
4.Profitable sales volume through customer satisfaction

CCreation of Demand

Profitable sales
volume through Objectives of marketing
MMarket share
customer
satisfaction

Good will
 FUNCTIONS OF MARKETING
1.Gather and analysing Market Information
2.Market planning
3.Product designing and development
4.Standardisation and grading
5.Packaging and labelling
6.Branding
7. Customer support service
8.Pricing of products
9.Promotion and selling
10.Physical distribution
11.Transportation
12.Storage and weathering
 ROLE OF MARKETING

1.Role in a firm
2.Role in the economy
MARKETING MIX
Marketing mix is the term used to describe the combination of the four inputs
which constitute the core of the company’s marketing system ,the product ,the price
structure ,the promotional activities and the distribution system
William .J. Stanton
Marketing mix are the set of marketing tools that firm uses to pursue its marketing
objectives in the target market
Philip Koetler

4 p’s of marketing

1.Product
2.Price
3.Place
4.Promotion
 MARKETING MIX

1.PRODUCT 2.PRICE
Product mix Fixing Price
Branding Factors fixing the price
Packaging of a product
Labelling
MARKETING MIX
3.PLACE 4.PROMOTION
Channels of distribution Advertising
Channel levels Sales Promotion
Factors of determining
Choice of channels Personal selling
Physical distribution
Decisions of Physical distribution Publicity
 CLASSIFICATION OF PRODUCT or SERVICES

PRODUCT/GOODS
PRODUCT/GOODS

Consumer goods Industrial goods

On the basis On the basis of

of durability buying behaviour
 CLASSIFICATION OF PRODUCT or SERVICES
Products or Goods can be classified in two categories
1.Consumer goods
2.Industrial goods
A.On the basis of durability
(i)Durable Product
(ii)Non durable product
(iii)Services
Main features of services are
1.Service are intangible in nature
2.It is an inseparable from its source
3.It can not be stored
4.These are heterogeneous in nature
 CLASSIFICATION OF PRODUCT or SERVICES
B.Classification based on consumers buying behaviour and attitude
(i)Convenient goods
Main features of Convenient goods
1.These can be purchased with minimum shopping efforts
2.These products have regular and continuous demand
3.These units are generally of low prices
4.These have standardised price
5.There is high competition in these goods
6.Sales promotion incentives are generally used to increase the sale of
these products
 CLASSIFICATION OF PRODUCT or SERVICES
Shopping Goods
Features of shopping products
1.These are generally durable goods
2.Prices of such goods are generally high
3.Customers are generally compare these goods and then buy such goods
4.Retailers play an important role in selling shopping goods
5.People plan the buying of such goods
(iii) Speciality goods
Features of Speciality goods
1.Demands of such products are limited
2.These products are of high price
3.These products are available at few selected places only
4.These products are sold as a result of aggressive promotion techniques
5.After sale service is very important in these products
 INDUSTRIAL PRODUCTS

Main features of industrial products are:

1.Number of buyers
2.Channel distribution
3.Geographical concentration
4.Derived Demand
5.Technical consideration
6.Reciprocal Buying
7.Leasing
 INDUSTRIAL GOODS

Materials &
Parts

Farm Producer

Raw materials Natural producer

Component
Manufactured material
parts
 INDUSTRIAL PRODUCTS

1.Materials and parts

2.Capitel item
3.Supplies and business services
Important component of product mix
1.Branding:
Meaning: A brand is the identification of a product.It can be the
in the form of a name,symbol or design etc
Various terms related to Brand are:
1.Brand
2.Brand name
3.Brand Mark
4.Trade Mark
 QUALITIES/FEATURES OF A GOOD BRAND NAME

While selecting a brand name attention must to be paid to the following

(i)Brand name should be short and simple
(ii)Brand name should be easy to pronounce
(iii)Brand name should be suggestive
(iv)Brand name should be unique and distinctive
(v)Brand name should be selected after considering its meaning in other languages
and cultures
ADVANTAGES OF BRAND NAME
1.Helps in product differenciation
2.Helps in advertising
3.Differential pricing
4.Easy introduction of new product
ADVANTAGES TO CUSTOMERS
1.Helps in identification of product
2.Ensures quality
3.Status Symbol
 Packaging

The companies always supply the products in packaged form

There are three levels of Packaging
1.Primary Package
2. Secondary Package
3.Transportation packaging
IMPORTANCE OF PACKAGING
1.Rising standard of health and sanitation
2.Self service outlets
3.Product of differentiation
Innovational Opportunities
FUNCTIONS OF PACKAGING
1.Protection
2.Identification
3.Convenience
4.Promotion
 Labelling

Labelling means putting identification marks on the package

Labels perform the following functions

1.Describe the product and specify its contents
2.Identify the product
3.Help in grading
4.Promote sale
5.Providing information required by law/legal requirement

PRICE:
Price is the value which buyer passes on to the seller in lieu of the
product or service provided
Factors kept in mind while fixing the price of a commodity or service
1.Pricing objectives
Pricing objective of a firm may include
(a)Obtaining Market share leadership
(b) Surviving in a Competitive Market
(b) Attaining Product Quality Leadereship
2.Produce Cost
3.Extend of competition in the market
4.Customer’s demand and utility
5.Government and Leagal Regulations
6.Marketing methods used
 PRICING STRATEGIES

1.Price skimming
2.Penetration Pricing
CHANNELS OF DISTRIBUTORS

Producer Wholesaler Retailer Consumer

Case when no middleman or distribution channel

Consumer

Manufacturer Manufacturer Manufacturer Manufacturer

of sugar of Tea of Rice of Pulses
 PRICING STRATEGIES

Case when middleman is available

Consumer Retailer
[General merchant]

Functions of Distribution channels

1.Sorting/Grading
2.Accumulation
3.Variety/Assortment
4.Packing
5.Promotion
6.Negotiation
7.Risk taking
 TYPES OF DISTRIBUTION LEVELS

1.Zero level channel /Direct channel

Manufactur
er Customers

2.Indirect channel

Manufactur
er Retailer Customers
 TYPES OF DISTRIBUTION LEVELS

1.Two level channels

Manufactur
Wholesaler retailer Customers
er

2.Three level channel

Agent
Manufacturer
Distribution
Wholesaler Retailer Customers
 TYPES OF DISTRIBUTION LEVELS

Factors Determining choice of a channel /physical distribution of Commodity

1.Product related Factor
2.Company related factor
3.Competitive factors
4.Market related factor
5.Environmental Factors

Decision in Physical Distribution/Components of Physical Distribution

1.Order processing
2.Transportation
3.Ware housing
4.Inventory
Factors which help in determining level of inventory are
(i)Firm’s Policy on customer service
(ii)Degree of accuracy of sales forecast
(iii)Responsiveness of distribution System
(iv)Cost of Inventory
PROMOTION
Elements of promotion mix are
(i) Advertising
(ii) Sales Promotion
(iii) Personal selling
(iv) Publicity
(v) Public relations
Advertising:
Advertisement can be defined as the paid form of non personal presentation
and promotion of idea ,goods or services by an identified sponsor
Features of Advertising are
1.Paid form
2.Impersonality
3.Identified Sponsor
Advantages of advertisement
(i)Reach
(ii)Choice
(iii)Legitimacy
(iv)Expressiveness
(v)Economy
(vi)Enhancing Customer satisfaction and confidence
Disadvantages of Advertising:
(i)It is an impersonal communication /Less forceful
(ii)Advertising is less effective
(iii)Difficulty in media choice
(iv)Inflexibility
(v)Lack of feedback

Objections of advertising/Criticism of advertising

(i)Effect of advertising on values,materialism and life style
(ii)Advertising encourages the sale of inferior and dubious products
(iii)Advertising confuses rather than helps
(iv)Some advertisements are in bad taste
(v)Advertisement costs are passed on to the customers in the form of higher
price
Different media Available for advertising
1.Newspapers
Advantages of newspapers are
(i)Offers mass coverage or reach
(ii)Because of large circulation average cost per paper becomes very low
(iii)Messages given in newspapers tend to be more believable by costomers
(iv)Newspapers allows flexibility in message and design

Drawbacks of newspaper are

(i)The advertisement of newspaper has very short life of one day only
(ii)Through newspaper firms can reach literate customers only
(iii) The production and print quality of newspaper is poor
2.Magazines
The advantages of magazine advertisements are
(a)The life of advertisement is longer
(b)Audience spent more time in reading advertisement in magazines
(c)Magazines add creditability to the message because of their reputation

Drawbacks of magazine advertisements are

(a)Magazines have less frequency
(b)Magazines offer less flexibility in message
(c)Dramatisation like visual media is not possible in magazine
3.Television
The advantages of this media are
(a)This medium is audio visual which combines sight,sound and motion
(b)Great dramatisation is possible
(c)It has a high reach
(d)Television advertisements has catching power and better impact on
customers

The drawbacks of TV advertisements are

(a)It involves high cost
(b)The advertisements are shown for a short span only
4.Radio
The advantages of radio medium are
(a)Message could reach the remotest area
(b)Cost is low
(c)Suitable for illiterate customers also
Drawbacks of radio are
(a)It has only audio effect so less attention is grabbed
(b)Noise and disturbance bring interruption in message
(c)It has short message life and leaves less impact

5.Outdoor
The advantages of outdoor advertisements are
(a)Some of the hoardings are very attractive when designed with electric
display
(b) They are eye catchy and leave impact over the minds of customers
(c) Offer benefit of repeated exposures
(d) High visibility and lower cost

The drawbacks of outdoor media are

(a)Limited audience
(b)Short attention span
(c)Limited creativity

6.Internet
Advantages of this media are
(a)It is not very expensive
(b)Message dramatisation is possible
(c)Interactive media where two way conversation is possible
Drawbacks of Internet are
(a)It has limited reach
(b) Being a new medium the users are very few in number

Sales Promotion
Sales promotion techniques are very useful because they bring
(a)Short and immediate effect on sale
(b)Stock clearance is possible with sales promotion
(c)Sales promotion techniques include customers as well as distribution
channels
(d)Sales promotion techniques help to win over the competitor
Sales Promotion technique for customers
(i)Rebate
(ii)Discounts
(iii)Refunds
(iv)Premiums or gifts or product combination
(v)Quantity deals/gifts
(vi)Samples
(vii)Contests
(viii)Instant draws and assigned gifts
(ix)Lucky draw
(x)Usable benefits
(xi)Full Finance @ 0%
(xii)Packaged premium
(xiii)Container Premium
Merits of sales promotion
1.Attention value
2.Useful in new product launch
3.Synergy in total promotion Efforts
4.Aid to other promotion tools

Demerits of sales promotion

1.Reflect crisis
2.Spoil product image
Personal selling
1.Personal interaction
2.Two way communication
3.Better response
4.Relationship
5.Better convincing
Role of Personal selling
1.Importance to Businessman
(i)Effective promotion tool
(ii)Flexible tool
(iii)Minimum wastage of Efforts
(iv)Consumer attention
(v)Relationship
(vi)Personal support
(vii)Very effective to introduce new product
2.Importance to Customers
(i)Helps in identifying needs
(ii)Latest market information
(iii)Expert advice
(iv)Induces customers
3.Importance to society

1.Converts latest demand in to effective demand

2.Employment opportunities
3.Career opportunities
4.Mobility of sales persons
5.Product standarisation
 Differences B/N Advertising and Personal selling
Sl Advertising
no
1 It is an impersonal form of communication
2 Less flexible as standardised messages are
used
3 It reaches masses
4 Cost per person is less as it covers large
number of people
5 Covers market in short time
6 Makes use of mass media
7 No direct feedback can be obtained
8 More useful for standardised and consumer
products
Personal selling
It is personal form of communication
Flexible messages can be changed according
to the type of customers
Only limited number of customers can be
contacted
Cost per person is high as at a time limited
members can be contacted
Takes long time to cover market
T.V
Dirct feedback can be collected by salesman
More useful for industrial and customised
products
PUBLICITY