MarketMarket means Actual and Potential customers involving exchange of goods and services.According to American Marketing Association Aggregate demand of potential buyers for a product /service is called Market".According to Philip Kotler: "Market is a group of buyers and sellers interested in negotiating the terms of purchase/sale of goods/services.It is an area for potential exchange.Definition of MarketingTraditional Meaning: Traditionally marketing has been described in terms of its functions or activities. Marketing has been referred to a performance of business activities that direct the flow of goods and services from producers to consumers. Thus, merchandising, selling and shopping are all parts of a large number of activities undertaken by a firm, which are collectively called Marketing.Traditional Marketing: It emphasized on the basis of production and distribution. The objective was to earn more profit through higher sales volume Production and sales were the main activities included in the marketing functions.Modern Meaning: It is an ongoing process of planning and executing the marketing mix of products, services or ideas to create exchange between individuals and organizations.According to Philip kotler: "Marketing is a social and management process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.According to American Marketing Association: "Marketing is the performance of business activities which direct the flow of goods and services from producer to consumer. Marketing can be described as: "Getting the right goods, at the right time, at the right place, with the right communication, to the right people, at the right price.Marketing Functions more...
IntroductionAccording to Philip Kotler: Marketing mix is a set of controllable, tactical tools-Produce Price, Place and Promotion (4p?s) that the firms blend to produce the response they want in target market. The marketing mix consists of everything the firms can do to influence the demand for their product.Marketing mix is the set of controllable variables that a company can use to influence the customers response within a given marketing environment .The four elements or the 4P's are controllable because they are internal to the company. Apart from these four elements the marketing manager has to take another set of variable which are part of the external environment. Marketing can be understood as interaction between marketing mix elements and environmental variables. Using the elements of the marketing mix the manager tries to tackle the external factors. He carefully selects and makes necessary adjustment with the external variables. In actual practice the marketing manager considers a number of different alternatives and finally selects the most appropriate alternative. In other words, the manager can realize his goal by using different combination of the marketing mix. For example-when a company is launching a new product in the market the company can set a high or low level for each of these variables.
IntroductionAccording to Philip Kotler: Market segmentation is sub dividing of a market into homogeneous subset of customers. Where any subset may conceivably be selected as a market target to be reached with a distinct Marketing MixAccording to American. Marketing Association: "Market segmentation refers to dividing the heterogeneous market into smaller customer divisions having certain homogeneous characteristics that can be satisfied by theFirm Market segment is a large identifiable group of customers within a market which shows a predictable pattern of behavior in buying situation, and which can be profitably reached by means of distribution and communication. Market segmentation is the process of dividing the total market into a number of homogenous subgroups or submarkets and designing Products to satisfy the needs of each of these subgroups. A market can be segmented by various bases and industrial markets are segmented somewhat from consumer markets like ? (i) Geographic Segmentation: In this segmentation customers are segmented on the geographical basis. It includes District, Division, Country, City, Town /Village etc.(ii) Demographic Segmentation: In this segmentation customers are segmented on the demographic basis. It includes Age, Sex, Marital status Occupation Profession, Education etc.(iii) Psychographic Segmentation: In this segmentation customers are segmented on the psychographic basis. It includes Perception, culture, Attitudes, Need or Want of customers. Thought etc.(iv) B5dsehavioral Segmentation: In this process customers are segmented on the basis of behavior it includes Loyalty, Brand Loyalty, and Consumption rate. Buying Occasion, Buying Principles. Market segmentation is a "Consumer-oriented philosophy'. We first identify customers' needs in a sub-market. Then we design a product and or a marketing programmer to reach the sub-market and satisfy those needs.Characteristics of Market Segmentation:(i) It should be measurable i, e. it should possible to measure the size of the segment in, terms of sales generated.(ii) The segment should be attractive that is substantial in size.(iii) It should be accessible by communication. more...
Branding and PackagingBrand Brand is a name, term, symbol, design, or a combination of these which is intended to differentiate the goods of a company from competitors' goods.Branding: It is the practice of creating a unique name for a product and giving marketing support to that name. He has to decide whether the firm?s product will be marketed under a brand name or a generic name. Generic name refers to the name of the whole class of the product. For example a soap, a camera, etc.When products were sold by generic names, it was very difficult for the marketers to distinguish their products from that of their competitors'. Thus most marketers give a name to their products, which helps in identifying and distinguishing their products, which helps in identifying and distinguishing their products from the competitors' products. This process of giving a name or a sign or a symbol is called Branding.Brand Name: The pronounceable part of a Brand is called Brand Name Brand Name is the verbal component of Brand. For example?Lux, Grainier Raymond?s, TOYOTA motors etc.Brand Mark. Brand mark or logo is the distinctive color, letter/ symbol, alphabet, which is used for the brand.Brand Loyalty: Brand loyalty or customer loyalty is that state in which customer buys a brand not only because of habit, but also due to a preference or liking towards that brand. Habit combined with favorable attitude called loyalty. A strong loyal customer finds it very difficult to switch over to another brand and considers his chosen brand as much more superior. Although in reality there can be presence of similar an even better brands in the market. Product Line: Product line is a group of related items which are aimed at the same target customers or which are in a common price range or which are distributed through the same network and which satisfy a common need. For example ? a range of Raymond?s cloth is a product line at it satisfies on need for different market segments. Similarly, a group of cosmetic is a product line as it satisfies different but inflated needs of one market segment say rich urban more...
Product Life CycleIntroduction After a new product/service has been developed and introduced in the market, the different stages through which it passes over time is known as the product/service life cycle. Generally, there are four stages in a product service life cycle namely, launch, growth, maturity, and decline. These four stages are discussed in detail below. Product life cycle (PLC) indicates the sales history of a product over time with its introduction in the market till it dies or ceases to exist as it is no longer relevant. Introduction:This is the first stage in the product life cycle wherein a product or service is introduced in the market. The main aim of marketers at this stage is to increase product/service awareness among customers. An organization can adopt any strategy in the market like skimming or penetration, depending on the size of its operations. Organizations may not earn profits at this stage as they have to cover the costs incurred. Growth: The brand awareness created in the earlier stage helps an organization to earn revenues and reap profits at this stage. The markets continue to grow as more and more customers buy the service. Further organizations invest in promotional activities with the aid of profits. Thus, marketers strive to increase their market share and also maximize their profit margins.Maturity: Due to high competition and limit growth in this stage, companies try to maintain their market share. Marketers try to modify their services to tap any potential for growth. They also try to increase the quality and efficiency of their services to maintain customer loyalty. They should be discreet in deciding their marketing expenses and in allocating their finances. Decline: This is the final stage in the life cycle of a product/service and is characterized by reduction in demand and consequently a decrease in revenues and profit margins. The introduction of new services in the market or changes in customer preferences reduces demand. The best option for marketers is to discontinue the service if they cannot afford to modify o reposition it.
Factors affecting Product Life Cycle:
(i) Rate of technical change.
(ii) Rate of more...
Promotional MixIntroduction: Promotion, like any other element of the marketing mix, is very essential for successful marketing of a product/service. Promotion has to be given a little more importance in marketing services due to their intangible and tangible characteristic.Elements of the Promotion Mix: An organization should develop a promotional mix after careful analysis of the present and potential constraints, strength of the competition and their likely reaction, and the number of geographical areas to be covered by a communication programmer. The elements of promotion mix namely, personal selling, advertising, sales promotion, publicity & public relations, and direct marketing are represented in:Personal Selling: Personal selling involves persuading an existing of a potential customer through oral communication, to purchase the goods and service offering of the company. It aims to develop a rapport with the customer and because of that, enjoys a high success rate. Different mode' of personal selling include face to face conversations, tale marketing, chatting on the internet. However, personal context through face to meetings are more successful in increasing business and building a repose with the customer, when compared to the other ways.Personal Selling is suitable under following conditions:
(i) When the company has insufficient funds to conduct an adequate advertising programmer.
(ii) When the market is geographically concentrated, that is several customers are located very close to each other in one particular region.
(iii) When major purchases are made by a few large customers or a few companies.
(iv) When the personality of a sales person is necessary to establish repo.
(v) When the product is made for customers purpose that is it has to be designed in such a manner as to satisfy the needs of the particular customer only.
Steps in Personal Selling:(i) Locating the prospective customer (ii) Creating the sales presentation or conducting the sales interview.(iii) Handling objection (iv) more...
Marketing EnvironmentAccording to Philip Kotler: "A companies" marketing environment consist of the factors and Forces outside ide marketing that Affect marketing management ability to build and maintain successful relationship with target costumer?.
New Product and DevelopmentIntroductionWhen a company finds itself in a situation where it may be advised to develop a new product, when the sales of the existing product is declining over the past few years. The fixed costs involved in developing a new product for a market are very high and failure in operating this service successfully can result in losses for the company. New product development is not an easy job. It is an extremely difficult and time consuming process. The role of marketing research in new product development is not as simple and straightforward as it may happen.Scope of Product Planning and Development·Design·Label of the Product·Service of the Product·Repairing Services·Change in the Product mix·Nature of the Product·Cost Planning·Cost Management·Price of the Product·Color of the Product·Name of the Product·Quality and QuantityThe following steps would help a company to successfully develop a new product; more...
Consumer BehaviorAccording to Walter and Paul: Consumer behavior is the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services".According to Kurtz and Boone: Consume behavior consists of the acts of individuals in obtaining and using goods and services, including the decision processes that precede and determine these acts. It is the decision making process and physical activity that individuals engage in while evaluating, acquiring and using goods and services. It is the study of how individuals make decision to spend their available resources on consumption related items. It is an attempt to understand and predict human behavior in the buying role. As a discipline or as a field of study it is comparatively new and also multidisciplinary in nature. It has drawn heavily from different disciplines like Economics Psychology, Sociology etc. Different goods and services have varying magnitudes of search, experience and credence (SEC) qualities. The search qualities of a good or a service can be estimated before the purchase, while the experience qualities can be evaluated only after purchase and consumption Paraguayan, Zenithal and Berry in their article "A Conceptual Model of Service Quality and its Implications for Future Research", outlined ten dimensions of service quality and categorized them under the search, experience and credence qualities as shown on.Dimensions of SEC qualities
Understanding the customer
Consumer Decision Making Process: The buying process by a consumer is triggered by his specific needs. The consumer's decision making process basically involves the following steps. For both goods and services, these steps remain the same. Though the order of the steps may differ1. Need Perception2. Search for information3. Evaluation of Alternatives4. Purchase and Consumption more...
Channel of DistributionAccording to Slant-on: "A channel of distribution for a product is the root taken by the title to the goods as they move from the producer to the ultimate consumer or industrial user".According to McCarthy: "Any sequence of institutions from the Producer to Consumer, including one or any number of middlemen, is called a Channel of Distribution.Channels of distribution are one of the most powerful and important marketing mix elements. They play a major role in making a finished product available and accessible to the ultimate consumers and industrial buyers. Once the product is ready for the market the producer has to find some way to reach the product from the point of production to the point of consumption. A marketing channel is the path that is treated in the direct or indirect transfer of title to a product as it moves from producer to consumer. It consists of a network of institutions or series of intermediaries that are used to reach a market.Channels Function:(i) Transfer of title to the goods involved.(ii) Physical movement of goods from point of production to point of Consumption.(iii) Storage of Goods.(iv) Providing Product information. Customer Service etc.Distribution of Consumer Goods:
(i) Producer \[\to\] Consumer
(ii) Producer \[\to\] Retailer \[\to\] Consumer
(iii) Producer \[\to\] Wholesaler \[\to\] Retailer \[\to\] Consumer
(iv) Producer \[\to\] Agent \[\to\] Retailer \[\to\] Consumer
(v) Producer \[\to\] Agent \[\to\] Wholesaler \[\to\] Retailer \[\to\] Consumer
Classification of Middleman:WholesalerAccording to American .Marketing Association: "Wholesalers sell to Retailers or other merchants more...