Chep#1: Marketing an Introduction

Marketing: Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and value with
others.
Marketing as selling and advertizing: Marketing is not only selling and telling but is to
satisfy the customer needs. They must to understand the consumer needs, develop products,
that provide superior value, and price, distributes and promotes them effectively, this product
will sell easily.
Needs, wants and demands: Needs are states of felt deprivation. They may be physical,
social and individual. Wants are the forms taken by human needs as they are shaped by
culture and individual personality. E.g. soft water in united state. Demands are human wants
that are backed by buying power.
Product: Any thing that can be offered to a market for attention that might satisfy a want or
need. It includes physical objects, services, persons, places, organizations, and ideas.
Customer value, satisfaction and quality: The consumers assessment of the products
overall capacity to satisfy his or her needs. If the products performance exceeds
expectations, the buyer is satisfied or delighted. Quality has the direct impact on product or
service performance. The program design to improve the quality of product, services and
marketing is called total quality management.
Marketing offers: Marketing offers are of two types:
a) Physical i.e. products, or services
b) Tangible i.e. info or experiences.
These offers are to satisfy the consumer needs and wants.
Exchange, Transactions, and Relationships: Exchange is the act of obtaining a desired
object from someone by offering something in return. Transaction is a trade b/w two parties
that involve at least two things of value, agreed upon conditions, a time of agreement and a
place of agreement. Relationship is the process of creating and maintaining strong
relationships with customers and other stakeholders.
Market: The set of all actual and potential buyers of a product or service. It is a place where
buyers and sellers gather to exchange their goods and values.
Marketing mix: A set of controllable tactical marketing toolsproduct, price, place, and
promotion--that work together to affect the market place.
Marketing Strategy: The marketing logic by which the business unit is supposed to achieve
its marketing objectives.
Core marketing activities:
1) product development
2) research
3) communication
4) distribution
5) pricing
6) services
Exchange process:
1) Seller must search for the buyers.
2) Identify their needs.
3) Design good products and services.
4) Set reasonable price for them.
5) Promote them effectively.
6) Deliver them efficiently.
Marketing myopia: It focuses on the existing wants of the customer not on the needs. It
bring loose sight on the needs. E.g. people of united nation want soft water.
Core Marketing concept: To examine and understand the:
a) needs, wants, and demands;
b) products;
c) value, satisfaction, and quality;
d) exchange, transactions, and relationships;
e) markets.
Marketing management: The analysis, planning, implementation, and maintenance of
beneficial exchanges with target buyers for the purpose of achieving organizational
objectives. It involve following two factors.

1. Demand management: Marketing mgt is not only to find the customers. Every org has a
desired level of demand for its product. At any point there may be:
a) no demand
b) adequate demand
c) irregular demand or
d) too much demand.
Power cos sometimes have trouble meeting demand during peak usage periods. In
these cases of excess demand, the needed marketing task, called:
de marketinga kind of marketing to reduce the demand temporarily or
permanently; the aim is not to destroy demand, but only to reduce or shift it in such
a way that helps the org to achieve its objectives.
2. Building profitable customer relationships: It concern to attract the new customers
while keeping and satisfying the old ones. Also to retain current customers and build
lasting customer relationship.
Marketing mgt orientation: There are five concepts under which orgs conduct their
marketing activities:
1. Production concept: It holds that consumers will favor products that are available and
highly affordable and that mgt should therefore focus on improving production and
distribution efficiency. There are two situations for this concept:
a) when the demand for a product exceeds the supply, here mgt look the way to
increase the production
b) when the products cost is too high and is needed to bring it down.
2. Product concept: It holds that consumers will favor products that offer the most quality,
performance, and features and that the org should therefore devote its energy to
making continuous product improves.
3. Selling concept: the idea that consumers will not buy enough of the organizations
product unless the org under takes a large scale selling and promotion effort. E.g.
encyclopedia and insurance.
4. Marketing concept: Achieving organizational goals depends on determining the needs
and wants of target markets and delivering the desired satisfactions more effectively
and efficiently than competitors do.
5. Societal marketing: The org should determine the needs, wants, and interests of target
markets and deliver the desired satisfactions more effectively than competitors to
maintain societys well being.
Customer relationship mgt: To build profitable customer relationships by delivering the
values and satisfaction to customers. It concerns to attract retain and grow the customers by
lowing price, improving the quality and services of the product. Also the product must match
the customers expectations.
1. To retain and grow new customers:
a) It is difficult to attract new customers rather than to retain existing one.
b) More effort is required to attract new customers rather than to retain existing one.
2. Customer loyalty and retention: Customer satisfaction is directly proportional to the
loyalty, if the customer is not satisfied, he will not be loyal and vice versa.
3. Growing share to customers: Through cross selling means(gathering more business
from current customers by selling new products to them with additional offers. Social
and financial benefits provide to customers like to create customer communities in
clubs.
Marketing challenges in global world: Media, technologies, computer,
telecommunication, video conferencing, internet advertisement etc. are used to meet the
global competition. Move from mass marketingto make the small segment of market, it is
standard way to any customer.

Chep#2: Company and marketing strategy

Strategic planning: The process of developing and maintaining a strategic fit between the
organizations goals and its changing marketing opportunities. It consists of developing a
clear company mission, supporting objectives, a sound business portfolio and coordinated
functional strategies. There are three types of strategic plans
1) Annual plans

2) Long range plans

3) strategic plans.
Annual and long range plans deal with the companys current businesses and how to
keep them going. In contrast, the strategic plan involves adapting the firm to take
advantage of opportunities in its constantly changing environment.

Startin Focus
g point
Faculty
through

Existing
Products

Means
Ends

Selling and Profits

promoting

sales volume
The selling
concept

Market
through

Customer Integrated

Needs
satisfaction

Marketing

Profit
customer
The marketing
concept

Figure 1 Core marketing concepts

Mission statement: A statement of the organizations purposewhat it wants to

accomplish in the larger environment. A mission statement should be

1) market orientedsatisfying basic customer needs

2) product oriented
3) )company oriented
4) avoid making it too narrow or too broad
5) realistic
6) specific
7) motivating.
Corporate level

Business unit, product and

market level

Designing and
the business
other function
Defining the company
Setting company objectivesPlanning marketing
strategies
portfolio
mission
and goals
Setting companys objectives and goals:
1) Marketing objectivesselling in market at low cost.
2) Business objectivesto increase production accordingly.
Designing the business portfolio: Business portfolio is the collection of business needs
and products that make up the company. The best business portfolio is one that best fits the
companys strengths and weaknesses to opportunities in the environment. The companys
business portfolio planning involves two steps: The company must
1) analyze the current business portfolio and decide which businesses should receive more,
less or no investment and
2) develop growth strategies for adding new products or business to the portfolio.
Portfolio analysisa tool by which mgt identifies and evaluates the various business that
make up the company.

1. Strategic business unit: A unit of the company that has a separate mission and
objectives and that can be planned for independently from other company business. It
can be a company division or a single product or brand. SBUs portfolio analysis method
evaluated on two dimensions:
1) attraction of SBUs market
2) strength of SBUs position to market.
2. The Boston consulting group approach: Using this approach, a company classifies
all its SBUs according to the growthshare matrixa portfolio planning method that
evaluates a companys strategic business units in terms of their market growth rate
and relative market share. SBUs are classified as:
1) Starsare high growth, high share products, need heavy investments to finance
their rapid growth. Eventually their growth will slow down and they will turn into
cash cows.
2) Cash cowsare low growth, high share products, need less investment to hold their
market share. Thus they produce a lot of cash that the company uses to pay its bills
and to support other SBUs that need investment.
3) Question markare low share business units in high growth markets. They require a
lot of cash to hold their share. Mgt has to think hard about which question marks it
should try to build into stars and which should be phased out.
4) )Dogsare low growth, low share products, they may generate enough cash to
maintain themselves, but do not promise to be large sources of cash. Worst
category, have to convert into question marks or phased out. If a company have too
much dogs and few cash cows and stars then its better to close that business.
Four strategies for each SBU:
1) Company can invest more in the business unit in order to build its share
2) It can invest just enough to hold the SBUs share at the current level.
3) It can harvest the SBU, milking its short term cash flow regardless of the long term
effect.
4) It can divest the SBU by selling it or phasing it out and using the resources
elsewhere.
Life cycle of each SBU: Many SBUs start out as question marks and move into the
stars category if they succeed. They later become cash cows as market growth falls
th3en finally die off or turn into dogs toward the end of their life cycle. The company
needs to add new products and units continuously so that some of them will become
stars and eventually, cash cows that will help finance other SBUs.
Problems with matrix approach: Difficult, time consuming, costly to implement.
Difficult to measure market share and growth. Focus on classifying current business but
provide little advice for future planning.
Developing growth strategies: A strategy for companys growth by offering modified or
new products to current market segments. Developing strategy for growth and downsizing.
Product/market expansion grid: A portfolio planning tool for identifying company growth
opportunities through market penetration, market development, product development, or
diversification.
Market penetrationa strategy for company growth by increasing sales of current products to
current market segments without changing the product in any way.
Market developmenta strategy for company growth that identifies and develops new
market segments for current company products.
Product developmenta strategy for company growth that offers modified or new products to
current market segments . the product concept is developed into a physical product in order
to assure that the product ideas can be turned into a workable product.
Diversificationa strategy for company growth that starts or acquires businesses outside the
companys current products and markets.
Downsizingproducing business portfolio by eliminating products or business units that are
not profitable or not fit for long term companys strategy.
Value chain: A major tool for identifying ways to create more customer value. It includes:
a) Marketing efforts
b) Analysis
c) Planning
d) Implementation and

e) Control.
Marketing process: The process of
1) analyzing marketing opportunities,
2) selecting target markets,
3) developing the marketing mix and
4) managing the marketing efforts.
Market segmentation: Dividing a market into distinct group of buyers with different needs,
characteristics or behavior who might require separate products or marketing mixes.
Market segment: A group of consumers who respond in a similar way to a given set of
marketing stimuli.
G
r
o
w
t
h
r
a
t
e

H
i
g
h

L
o
w

Hig
Lo
h
w
Relative market
share

Figure 2 The BCG growth share matrix

Life cycle

Figure 3

Market targeting: The process of evaluating each market segments attractiveness and
selecting one or more segments to enter.
Market positioning: Arranging for a product to occupy a clear, distinctive, and desirable
place relative to competing products in the minds of target consumers.

Figure 4 The four P's of the marketing mix

Figure 5 Marketing efforts
relationship

Marketing Implementation: The process that turns marketing strategies and plans into
marketing actions in order to accomplish strategic marketing objectives
Marketing Control: The process of measuring and evaluating the results of marketing
strategies and plans and taking corrective action to ensure that marketing objectives are
attained.
Marketing audit: A systematic and independent examination of a companys environment,
objectives, strategies, and activities to determine problem areas and to set a plan to improve
the companys performance.

Chep#3 Marketing Environments

Marketing environment: The actors and forces outside marketing that affect marketing
managements ability to develop and maintain successful transactions with its target
customers. The marketing environment offers both opportunities and threats. Successful
companies know the vital importance of constantly watching and adapting to the changing
environment.
Microenvironment: The forces close to the company that affect its ability to serve its
customersthe company itself, suppliers, market channel firms, customer markets,
competitors, and publics.
Macro environment: The larger societal forces that affect the whole microenvironment
demographic, economic, natural, technological, political, and cultural forces.
The companys Microenvironment: Marketing managements job is to attract and build
relationships with customers by crating customer value and satisfaction. Their success
depends on other actors in the companys microenvironmentother company departments,
suppliers, marketing intermediaries, customers, competitors, and various publics, which
combine to make up the companys value delivery system.
1. The company: The groups such as top mgt, finance, research and development (R&D),
purchasing, manufacturing, and accounting. Top mgt sets the companys mission,
objectives, broad strategies, and policies.
2. Suppliers: Suppliers are an important link in the companys overall customer value
delivery system. They provide the resources needed by the company to produce its
goods and services. Also monitor price.
3. Marketing intermediaries: Firms that help the company to promote, sell, and distribute
its goods to final buyers; they include
1) resellersdistribution channel firms that help the company find customers or make
sales to them. These include
a) wholesalers and
b) retailers who buy and resell merchandise.
2) physical distribution firmshelp the company to stock and move goods from their
points of origin to their destinations. Working with warehouse and transportation
firms, a company must determine the best ways to store and ship goods, balancing
such factors as cost, delivery, speed and safety.
3) marketing services agenciesare the marketing research firms, advertising
agencies, media firms, and marketing consulting firms that help the company target

and promote its products to the right markets. Financial intermediariesinclude

bands, credit companies, insurance companies, and other business that help finance
transactions or insure against the risks associated with the buying and selling of
goods.
4. Customers: The company needs to study its customer markets closely. There are five
types of customer markets:
1) Consumer marketsconsist of individuals and households that buy goods and
services for personal consumption.
2) Business marketsbuy goods and services for further processing or for use in their
production process.
3) Reseller marketsbuy goods and services to resell at a profit.
4) Govt. marketsare made up of Govt. agencies that buy goods and services in order
to produce public services or transfer the goods and services to other who need
them.
5) International marketsconsist of these buyers in other countries including
consumers, producers, resellers, and governments.
5. Competitors: The marketers must do more than simply adapt to the needs of target
consumers. They also must provide good offers against their competitors to their
consumers.
6. Publics: Any group that has an actual or potential interest in or impact on an
organizations ability to achieve its objectives. There are seven types of publics:
1) Financial publicsinfluence the companys ability to obtain funds. E.g. banks and
stockholders.
2) Media publicscarry news, features and opinions. E.g. newspapers, T.V, Radio, etc.
3) Govt. publicMarketers must often consult the companys lawyers on issues of
product safety, truth an other matters.
4) Citizen-action publicspublic relation department can help to stay in touch with
consumer and citizen groups.
5) Local public.
6) General public.
7) Internal publicworkers
The companys Macro environment: It include six major factors:
1) Demographic environmentthe study of human population in terms of size, density,
location, age, gender, race, occupation, and other statistics.
2) Economic environmentfactors that effect consumer buying power and spending
patterns. Major economic trends are:
a) Change in incomeMarketers should pay attention to income distribution as well as
average income. At the top are:
supper class consumers, whose spending patterns are not affected by current
economic events and who are a major market for luxury goods, then
middle class that is somewhat careful about its spending but can still afford the
good life.
Working class must stick close to the basics of food, clothing and shelter and must
try hard to save.
Underclass persons on welfare must count their pennies when making even the
most basic purchases.
b) Changing in consumer spending patternschanges in major economic variables
such as income, cost of living, interest rates, and savings and borrowing patterns
have a large impact on the marketplace. Companies watch these variables by using
economic forecasting.
3) Natural environmentnatural resources that are needed as inputs by marketers or that
are affected by marketing activities. Marketers should be aware of the following four
trends in the natural environment:
a) Shortage of raw materialsnonrenewable resources such as oil, coal, and various
minerals, pose a serious problem.

b) Increased cost of energyEnergy is also a problem, in fact hundreds of firms

already are offering products that use solar energy for hearing homes and other
uses.
c) Increased Pollution,
d) Govt. intervention in natural resource mgt.
4) Technical environmentforces that create new technologies, creating new products
and market opportunities. The marketers should watch the following trends in
technology:
a) Fast pace of technological change
b) High R&D budget
c) Concentration on minor improvements
d) Increased regulation.
5) Political environmentLaws, government agencies, and pressure groups that influence
and limit various organizations and individuals in a given society.
6) Cultural environmentInstitution and other forces that affect societys basic values
perceptions, preferences, and behaviors. Following are the cultural characteristics:
i)
Persistence of cultural ValuesPeople in a society hold many beliefs and values,
which have a high degree of persistence:
a) Core belief and valuesare passed on form parents to children and are
reinforced by schools by schools, churches, business, and Govt.
b) Secondary beliefs and valuesare more open to change. Belief in marriage is
a core belief; believing that people should get married early in lie is a
secondary belief.
ii)
Shift in secondary cultural valuesThe major cultural values of a society are
expressed in:
a) peoples views of themselves,
b) peoples view of others,
c) peoples views of organizations,
d) peoples views of society,
e) peoples views of nature,
f) peoples views of the universe.
Environment management perspective: A management perspective in which the firm
takes aggressive actions to affect the public and forces in its marketing environment rather
than simply watching and reacting to it.

Chep#4: Consumers market and consumer buying behavior

Consumer Buying Behavior: The buying behavior of final consumers --individuals and
households who buy goods and services for personal consumption.
Consumer Market: All the individuals and households who buy or acquire goods and
services for personal consumption.
Model of Consumer Behavior:
1. Marketing stimuli: It consists of the four Ps:
a) product,
b) price,
c) place, and
d) promotion.
2. Other stimuli: It include major forces and events in the buyers environment:
a) economic,
b) technological,
c) political, and
Marketing
other
d)and
cultural.
Marketing
and
other
Buyers Response
stimuli:
Model of Buyers Behavior:
stimuli:
Buyers Black Box:
Product,
Product, price,
price,
place,
place,
promotion.
promotion.
Economic,
Economic,
technical,
technical,
political,
political,
cultural.
cultural.

Buyers
characteristic
s.
Buying
decision
process.

Product
choice
Brand choic
Dealer choi
Purchase
timing
Purchase
amount

Characteristics Affecting Consumer Behavior:

1. Cultural Factors: Cultural factors influence the customer behavior, so marketer needs to
understand the role played by the buyers culture, subculture, and social class.
a. Culture: Culture is the set of basic values, perceptions, wants, and behaviors learned
by a member of society from family and other important institutions. E.g. colors
having different means for diff people.
b. Subculture: A group of people with shared value systems based on common life
experiences and situations. Subcultures include nationalities, religions, and
geographic regions.
Example: Here are four important subcultures.
i.
Hispanic Consumers: They are Americans, Mexican, and South American
consist of 26 million consumers. They use Spanish language and their
products are computers, financial services, etc. They tend to buy higher
quality products. Also they are very brand loyal.
ii.
African American Consumers: They are price conscious, give importance to
brand name, strongly motivated by quality, do less shopping, brand loyal and
prefer online services. E.g. coca cola.
iii.
Asian American Consumers: Invest to store and stock, trade two or more
times to get profit and shares, include Japanese, Asian Indians.
iv.
Mature Consumers: Above 50 years, have more time and money , their ideal
markets are restaurant, fashion, furniture, and financial services.
c. Social Class: Relatively permanent and ordered divisions in a society whose
members share similar values, interests, and behaviors. They cant determined by a
single factor but is measured as a combination of occupation, income, education,
wealth etc. This class show distinct product and brand preferences.
2. Social Factors: A consumers behavior is also influenced by social factors, such as:
1) Groups--Two or more people who interact to accomplish individual or mutual goals.
There may be:
a) Primary groupswith whom there is regular but informal interaction such as
family, friends
b) Secondary groupswhich are more formal and have less regular interaction
c) Reference groupsserve as direct or indirect points of comparison or reference
in forming a persons attitudes or behavior
d) Asp rational groupis one to which the individual wishes to belong. Opinion
leaderspeople within a reference group who, because of special skills,,
knowledge, personality traits, or other characteristics, exert influence on others.
2) FamilyThe family is the most important consumer buying org in society, an it has
been researched extensively.
3) Roles and StatusA person belongs to many groups, the persons position in each
group can be defined in terms of both role and status. Each role caries a status
reflecting the general esteem given to it by society. A role consists of the activities
that people are expected to perform according to the persons around them.
3. Personal factors: Such as buyers:
a) Age and life cycle stagePeople change4 the goods and services that they buy over
their lifetimes. Tastes in food, clothes etc. are often age related. The stage thru
which families might pass as they mature over time is called family life cycle
b) OccupationA persons occupation affects the goods and services bought
c) Economic situationA persons economic situation will affet product choice
d) LifestyleA persons pattern of living as expressed in his or her
psychographicsIt involves measuring the consumers major AIO dimensions:
i)
Activitieswork, hobbies, shopping, sports, social events
ii)
Interestsfood, fashion, family recreation

iii)

Opinionabout themselves, social issues, business, products. Several firms

have developed lifestyle classification. The most widely used is the SRI
values and lifestyle(VALS) topology:
Classify the people according to how they spend their time and money. It
divides consumers into eight groups based on two major dimensions: self
orientation and resources;
Self oriented
1) Principle oriented consumers who buy based upon their views of the
world; ii)Status orientedwho base their purchases on the actions and
opinions of others
2) Action orientedwho are driven by their desire for activity, and risk.
3) Abundant resources
Minimal resources. Life style also include Techno graphic scheme
consists of:
1) Fast forwardbiggest spenders for personal
2) New age NurturesBig spenders for family,
3) Mouse potatoeswilling to spend for new technology,
4) Techno ServicesConsumers that use technology temporarily,
5) Hand shakersConsumers or managers that do not touch the
computer and have assistants
e) personality and self conceptA persons distinguishing psychological characteristics
that lead to relatively consistent and lasting responses to his or her own
environment.
TypesPersonality is usually described in terms of traits such as:
i)
Self confidence b)Dominance,
ii)
Sociability,
iii)
Autonomy,
iv)
Defensiveness,
v)
Adaptability,
vi)
Aggressiveness.
Brand personalityour choice, mix of traits. Traits may be
i)
Sincerity(honesty),
ii)
Excitement,
iii)
Competence,
iv)
Sophistication(charming),
v)
Rigidness(tough).
Self conceptalso called self image, to reflect the peoples identities
4. Psychological factors: A persons buying choices are further influenced by four major
psychological factors:
a) MotivationA need that sufficiently pressing to direct the person to seed
satisfaction of the need.
Types:
i)
Biologicalarising from states of tension such as hunger, thirst etc.
ii)
Psychologicalarising from the need for recognition, esteem, or belonging,
b) PerceptionThe process by 2which people select, organize, and interpret info to
form a meaningful picture of the world. It have three perceptual processes:
i)
Selective attentionthe tendency for people to screen our most of the info to
which they are exposed to attract the customers attention,
ii)
Selective distortionthe tendency of people to interpret info in away that will
support what they already believe ,
iii)
Selective retentiontend to retain info that supports their attitudes and
beliefs Subliminal advertizing(demerits)E.g. drama and repetition in sending
messages to their market. Although most marketers worry about whether
their offers will be perceived at all, some consumers are worried that they will
be affected by marketing messages without even knowing it,
c) LearningChanges in an individuals behavior arising from experience. It consist
i) Beliefa descriptive thought that a person hold about something.
ii) AttitudeA persons consistently favorable or unfavorable evaluations, feeling,
and tendencies toward and object or idea.

5.

Buying behavior: Buying behavior of a customer may be:i)

Complex: Learn and search. Product conscious persons have this behavior, they
check different market and prices. Differences among brands occur.
ii)
Dissonance reducing: High consumer involvement. Expensive, may be risky. Post
purchased dissonance occur. Few perceived difference among brand occur.
Post purchase dissonancethe behavior to which consumer discomfort after
purchasing. The stag4e of the buyers decision process which consumer take
further action after purchase based on their satisfaction or dissatisfaction.
iii)
Habitual: Low consumer involvement, few difference among brand. No need to
have special attitude.
iv)
Variety seeking: Low consumer involvement but significant brand difference.
Brand switching due to long time.
Cognitive dissonancebuyer discomfort caused by post purchased conflict.
The buyer decision process: Buyer decision process consists of following five stages:Need
Informati
Evaluation
Purchase
Post
recogniti
on
of
decision
purchase
on
alternative
behavior
1) Need recognition: The consumer recognizes a problem or need. The buyer senses a
difference between his or her actual state and some desired state. The need can be
triggered by internal or external factors.
2) Information search: The consumer is aroused to search for more info, the consumer
may simply have heightened attention to info or may go into active info search. The
consumer can obtain info from any of following sources:i)
Personal sourceFamily, friends, neighbors, acquaintances
ii)
Commercial sourceAdvertising, salespeople, dealers, packaging, displays
iii)
Public sourcesMass media, consumer rating organizations
iv)
Experiential sourcesHandling, examining, using the product
3) Evaluation of alternatives: The consumer uses info to evaluate alternative brands in the
choice set. This process contain:
i)
Product attributes
ii)
Degree of importance to different attributes
iii)
Brand beliefs--Brand imagethe set of belief that consumers hold about a
particular brand.
iv)
Total product satisfaction
v)
Arrival at attitudes toward the different brands
4) Purchase decision: In this stage the consumer actually buys the product. Two factors
can come between the purchase intention and the purchase decision:
i)
Attitudes of others
ii)
Unexpected situational factors
5) Post purchase behavior: In this stage the consumer take further action after purchase
based on their satisfaction or dissatisfaction. It concerns with two factors:
i)
Consumers expectations
ii)
Perceived performance
Cognitive dissonancebuyer discomfort caused by post purchase conflict.
The buyer decision process for new products
New productA good, service, or idea that is perceived by some potential customers as new.
Adoption processThe mental process through which an individual passes from first hearing
about an innovation to final adoption.
Stages in the adaptation process:1) AwarenessThe consumer becomes aware of the new product, but lacks information
about it.
2) InterestThe consumer seeks info about the new product.
3) EvaluationThe consumer considers whether trying the new product makes sense.
4) Trialthe consumer tries the new product on a small scale to improve his or her
estimate of its value.
5) AdoptionThe consumer decides to make full, regular use of the new product.
Influence of product characteristics on rate of adoption: Five characteristics are
especially important in influencing an innovations rate of adoption:1) Relative advantage

2)
3)
4)
5)

Compatibility
Complexity
Divisibility
Communicability

Chapter#5 Target marketing

1. Three major steps in target marketing:
a. Marketing segmentationDividing a market into distinct groups of buyers with
different need, characteristics, or behavior who might require separate products
or marketing mixes.
b. Target marketThe process of evaluating each market segments attractiveness
and selecting one or more segments to enter
c. Market positioningFormulating competitive positioning for a product and
creating a detailed marketing mix.
a. Market segmentation:
1) GeographicalDividing a market into different geographical units such as
nations, states, regions, countries, cities, or neighborhoods. Localizing their
products, advertising, promotion, and sales efforts to fit the needs of
individual regions, cities.
2) Demographic segmentationDividing the market into groups based on
demographic variables such as age, sex, family size, family life cycle, income,
occupation, education,, religion, race, and nationality.
i. Age and life cycle stageDividing a market into different age and
lifecycle groups. As user needs and wants change with the age.
ii. Gender segmentationDividing a market into different groups based
on sex.
iii. Income segmentationDividing a market into different income groups.
3) PsychographicDividing a market into different groups based on social class,
lifestyle, or personality characteristics.
4) BehavioralDividi8ng a market into groups based on consumer knowledge,
attitude, use, or response to a product. It includes:i. OccasionDividing a market into groups according to occasions when
buyers get the idea to buy, actually make their purchase, or use the
purchased item.
ii. BenefitDividing a market into groups according to the different
benefits that consumers seek from the product.
iii. User statusMarket can be segmented into nonusers, ex-users,
potential users, first-time users, and regular users of a product.
Potential users and regular users may require different kinds of
marketing appeals.
iv. User/market rateMarket also can be segmented into light, medium,
and heavy user groups.
v. User loyalty(direct comparison marketing)A market can also be
segmented by consumer loyalty. Consumers can be loyal to brands,
stores, and companies. Buyers can divided into groups according to
their degree of loyalty.
5) Geo demographic segmentationAlso called multi variable segmentation
combination of geographical and demographical segmentation.
Segmenting business Markets:
1. Demographic variables
2. Operating variables
3. Purchasing approaches
4. Situational factors
5. Personal characteristics

Segmenting international markets: International market can be segment by geographic

location, grouping countries regions such as middle east etc. It can be segmented on the
bases of :1. Economic factorsCountries mighty be grouped by population income levels or by their
overall level of economic development.
2. Political and legal factorsSuch as the type and stability of government, receptivity to
foreign firms, monastery regulations, and the amount of bureaucracy.
3. Cultural factorsCultural factors cha be used, grouping markets according to common
languages, religions, values and attitudes, customs and behavioral patterns.
Inter market segmentationForming segments of consumers who have similar needs
and buying behavior even though they are located in different countries.
Requirements for effective segmentation: To be useful, market segments must have the
following characteristics:1. MeasurabilityThe size, purchasing power, and profiles of the segments can be
measured.
2. AccessibilityThe market segments can be effectively reaches and served.
3. SubstantialityThe market segments are large or profitable enough to serve.
4. Action abilityEffective programs can be designed for attracting and serving the
segments.
5. Differentia tableMust be distinguished from other market.
Selecting market segments: After evaluating different segments, the company must
decide which and how many segments to serve is called target market selection.
Target marketA set of buyers sharing common needs or characteristics that the company
decides to serve.
Following strategies are used for target market selection:1. Undifferentiated marketingA market coverage strategy in which a firm decides to
ignore market segment differences and go after the whole market with one offer.
Focuses on common needs not on different.
2. Differential marketingA market coverage strategy in which a firm decides to target
several market segments and designs separate offers for each.
3. Concentrated marketingA market coverage strategy in which a firm goes after a large
share of one or a few submarkets.
4. Micro marketing:
i.
Local
ii.
Individual
Positioning:
1. Product positioningThe way that the product is defined by consumers on important
attributesthe place that the product occupies in consumers minds relative to
competing products.
2. Competitive advantageAn advantage over competitors gained by offering consumers
greater vale, either through lower prices or by providing more benefits that justify
higher prices.
Choosing and implementing a positioning strategy: Each firm must differentiate its offer
by building a unique bundle of competitive advantages that appeals to a substantial group
within the segment.
1. Identifying possible competitive advantagesTo give the consumers greatest value,
providing superior value to selected target markets, either by offering lower prices than
competitors do or by providing more benefits to justify higher prices. Positioning begins
with actually differentiating the companys marketing offer so that it will give
consumers more value than competitors offers do. A company or market offer can be
differentiated along the lines of product, services, personnel, or image, channel.
i.
Product differentiationA company can differentiate its physical product by
standardizing the product. Similarly companies can differentiate their products
on such attributes as consistency, durability, reliability or repair ability.

ii.

Services differentiationSome companies gain competitive advantage through

speedy, convenient, or careful delivery. Installing can also differentiate one
company from another. Companies can further distinguish themselves through
their repair services. Some companies differentiate their offers by providing
customer training service. Other companies offer free or paid consulting services
data or info and advising services that buyers need.
iii.
Personnel differentiationCompanies can gain a strong competitive advantage
through hiring and training better people than their competitors do. Personnel
differentiation requires that a company select its customer contact people
carefully and train them well.
iv.
Image differentiationEven when competing offers look the same, buyers may
perceive a difference based on company or brand images. Thus companies work
to establish images that differentiate them from competitors. A company or
brand image should convey the products distinctive benefits and positioning.
Developing a strong and distinctive image calls for creativity and hard work.
v.
Channel differentiation:
a) Product
b) Performance
c) Experts
d) Sale
2. Selecting the right competitive advantagesTo decide that how many differences to
promote and which ones.
i. How many differences to promoteUnique selling proposition(USP) for each brand
and stick to it. In general a company needs to avoid three major positioning errors.
a) Under positioningFailing to ever really position the company at all.
b) Over positioningGiving buyers too narrow picture of the company.
c) Confused positioningLeaving buyers with a confused image of a
company.
iii.
Which differences to promoteFollowing differences are to be promote.
a) ImportantHigh valued.
b) DistinctiveThat competitor do not offer.
c) SuperiorSuperior to other ways and beneficial for customers.
d) CommunicativeVisible to buyers.
e) PreemptiveCompetitors cannot easily copy.
f) AffordableBuyers can afford to pay for.
g) ProfitableThe company can introduce the difference profitably.
3. Selecting an overall positioning strategy--??????????????????????????
Effective marketing strategies:
1. Depend on company resources. If there are limited resources then we will use
concentrated strategies. If resources are much enough then we will use mass
strategies.
2. Best strategy also depends upon degree of product variability and undifferentiated
strategy is used for uniform product.
i.
For uniform product undifferentiated strategy is used.
ii.
For varying product differentiated strategy is used.
3. Product life cycle:
i.
When new product is launched in market for first time then undifferentiated or
concentrated strategy is used.
ii.
For mature stag4e of a product differentiated strategy is used
4. If buyer demand the same product, same prices and react in same way then use
undifferentiated strategy.
5. Competitor marketing strategiesuse opposite strategy against competitors strategy.

Chapter#5 Product and services strategies:

ProductAnything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need.

ServicesServices are products that consist of activities, benefits, or satisfactions that are
offered for sale, such as banking, hotel, tax preparation, and home repair services.
Services are essentially intangible and do not result in the ownership of anything. Or any
activity or benefit that one party can offer to another that is essentially intangible and does
not result in the ownership of anything.
Levels of product and services: The product planners need to think about products and
services on following three levels:
1. Core productIt addresses the question: What is the buyer really buying? The core
product stands at the center of the total product. It consists of the core problem solving
benefits that consumers seek when they buy a product or service.
2. Actual productThe product planner must next build an actual product around the core
product. Actual products may have as many as five characteristics:
a. A quality level
b. Features
c. Design
d. A brand name
e. Packaging
3. Augmented productThe product planner must build an augmented product around
the core and actual products by offering additional consumer services and benefits.
Product classification: In developing marketing strategies for their products and services,
marketers have divided products and services into two broad classe:
1. Consumer productsProducts bought by final consumers for personal consumption.
They include:
a. Convenience productsConsumer products that the customer usually buys
frequently, immediately, and with a minimum of comparison and buying efforts.
b. Shopping productsConsumer products that the customer, in the process of
selection and purchase, characteristically compares on such bases as suitability,
quality, price and style.
c. Specialty productsConsumer products with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
d. Unsought productsConsumer products that the consumer either does not know
about or knows about but does not normally think of buying.
2. Industrial productsProducts bought by individual and organizations for further
processing or for use in conducting a business. Following are three industrial marketing
group:
a. Materials and partsInclude raw materials and manufactured materials and
parts. Raw materials consist of:
i.
Farm products i.e. wheat, cotton, fruits, etc.
ii.
Natural products i.e. fish, iron, etc.
Manufactured materials and parts consist of component materials i.e. cement,
wires, etc. and component parts i.e. small motors, tires etc.
b. Capital itemsThese are industrial products that aid in the buyers production or
operations, including:
i.
Installationconsists of major purchases i.e. factories, offices, etc.
ii.
Accessory equipmentconsists portable equipments and tools i.e. hand
tools, lift trucks, etc.
c. Supplies and servicesSupplies include:
i.
Operating supplies i.e. paper, pencils, etc.
ii.
Repair and maintenance i.e. paint, nails, etc.
Repair services are usually supplied under contract i.e. advertising, computer
repair, etc.
Individual product decisions: Individual product decision is important in development and
marketing of individual products and services. It include:
Produc
t
attribut

Brandi
ng

Packagi
ng

Labelin
g

Product
support
services

1. Product attributesTo define the benefits of a product that it will offer. They may be:
a. Product qualityThe ability of a product to perform its functions; it includes the
products overall durability, reliability, precision, ease of operation and repair,
and other valued attributes. Product quality has two dimensions:
i.
LevelIn developing a product, the marketer must first choose a
quality level that will support the products position in the target
market.
ii.
ConsistencyFreedom from defects and consistency in delivering a
targeted level of performance. Concern with conformance quality.
Total quality Management: An effort to constantly improve product and
process quality in every phase of their operations. The ultimate goal of total
quality is to improve customer value. For example when Motorola first began its
total quality program in the early 1980s its goal was to drastically reduce
manufacturing defects. In recent years, however, Motorolas quality concept is
total customer satisfaction.
b. Product featuresFeatures are competitive tool for differentiating the companys
product from competitors products. The company can create higher level models
by adding more features.
c. Product design/StyleProduct design is a way to add customer value. Design is a
larger concept than style. Style simply describes the appearance of a product.
Styles can be eye catching or yawn inspiring. A sensational style may grab
attention,, but it does not necessarily make the product perform better. In some
cases it might even result in worse performance. For example, a chair may look
great yet be very uncomfortable. Unlike style, design goes to the very heart of a
product.
2. BrandingA name, term, sign, symbol, or design, or a combination of these intended to
identify the goods or services of one seller or group of sellers and to differentiate them
from those of competitors.
a. Brand EquityThe value of a brand, based on the extent to which it has high
brand loyalty, name awareness, perceived quality, strong brand association, and
other assets such as pates, trademarks, and channel relationships.
b. Brand name selectionA good name can add greatly to a product success.
Qualities:
i. It should suggest something about the products benefits and qualities e.g.
spic and span
ii.
It should be easy to pronounce, recognize, and remember.
iii.
The brand name must be distinctive.
iv.
The brand should translate into foreign languages easily
v.
It should be capable of registration and legal protection.
c. Brand sponsorA manufacturer has four sponsorship options:
i. Manufacturers brandA brand created and owned by the producer of a
product or service.
ii. Private brandA brand created and owned by reseller of a product or
service.
Manufacturers versus private brandManufacturers brands are less
expensive and create number of retailers and wholesalers. On the other
hand private brands can be hard to establish and costly to stock and
promote but they give high profit.
iii. Slotting feesPayments demanded by retailers from producers before
they will accept new products and find slots for them on the shelves.
iv. LicensingTo create their own brand name
d. Co-BrandingThe practice of using the established brand names of two different
companies on the same products.

e. Brand developmentA company has four choices when it comes to brand

development:
i. Line extensionUsing a successful brand name to introduce additional
items in a given product category under the same brand name, such as
new flavors, forms, colors, or package size.
iii.
Brand extensionUsing a successful brand name to launch a new or
modified product in a new category.
iv.
Multi brandingA strategy under which a seller develops two or more
brands in the same product category.
v.
New brandsA company may create a new brand name when it
enters a new product category for which none of the companys
current brand names are appropriate.
2. PackagingThe activity of designing and producing the container or wrapper for a
product. Innovative packaging can give a company and advantage over competitors.
Developing a good package for a new product requires making many decisions such as
size, shape, materials, color, text,, brand mark etc.
3. LabelingThe label might describe several things about the productwho made it,
where it was made, when it was made, and how to use it. Finally the label might
promote the product through attractive graphics. It also concern with unit pricing, open
dating, and life of the product.
Product Support ServicesTo determine customer service needs and the value customers
assign to different services involves more than simply monitoring complaints that come in
over toll free telephone lines or on comment cards.
Product Line DecisionsA group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are marketed through the same
types of outlets, or fall within given price ranges. In developing product line strategies,
marketers face following decisions:
1. Product line lengthThe number of items in the product line. The line may too short or
too long depending upon the increase or decrease in profit.
2. Product line stretchingIt occurs when a company lengthens its product line beyond its
current range. The company can stretch its line downward, upward, or both ways.
3. Product line filingAdding more items within the present range of the line. There are
several reasons for product line filling e.g. reaching for extra profits etc.
Product Mix decisionsAn org with several product lines has a product mix.
Product MixThe set of all product lines and items that a particular seller offers for sale to
buyers. A companys product mix has four important dimensions:
1. WidthThe width refers to the number of different product lines the company carries.
2. Length--The length refers to the total number of items that the company carries.
3. Depth--The depth of product refers to the number of versions offered of each product in
the line.
4. Consistency--The consistency of the product mix refers to how closely related the
various product lines are in end use, production requirements, distribution channels, or
in some other way.
The Service Profit ChainThe chain that links service firm profits with employee and
customer satisfaction.
1. Internal marketingMarketing by a service firm to train and effectively motivate its
customer contact employees and all the supporting service people to work as a team to
provide customer satisfaction.
2. Interactive marketingMarketing by a service firm that perceived service quality
depends heavily on the quality of buyer seller interaction.

Business
analysis
Marketing
Product

Compan

Strategy
developme
nt
Internal
marketing

External
marketing

Concept Test
developinMarketing
g
Idea Commercializat
Screening
ion

Idea Implementati
generatio
on
n

Product Development

Employ

Interactive

Custom

Marketing Organizations, persons, places and ideas:

1. Organization marketingActivities undertakes to create, maintain, or change attitudes
and behavior of target audiences toward an org.
2. Person marketingActivities undertaking to create, maintain, or change attitudes and
behavior of target audiences toward particular person.
3. Place marketing-- Activities undertaking to create, maintain, or change attitudes and
behavior of target audiences toward particular place.
4. Idea marketingAlso called social marketingthe marketing of social ideas, such as
public health campaigns, environmental campaigns, another campaigns such as family
planning, human rights, and racial equality.
5. Social marketingThe design, implementation and control of programs seeking to
increase the acceptability of a social idea, cause, or practice among a target group.

Chapter#6 New Product Development strategies:

New product developmentThe development of original products, product improvements,

products modifications, and new brands through the firms own efforts. It have following
Stages:
1. Idea generationThe systematic search for new product ideas. Major sources of new
product idea include:
a. Internal sourcesWithin the company. The company can find new ideas through
formal research and development.
b. External sourcesGood new product ideas also come from watching and listening to
customers.
c. CompetitorsGood source of new product ideas. Companies watch competitors ads
and other communications to get clues about their new products.
d. DistributorsResellers are close to the market and can pass along information about
consumer problems that need solution and new product possibilities.
e. Suppliers--Suppliers can tell the company about new concept, t4echniques, and
material s that can be used to develop new products.
2. Idea ScreeningScreening new product ideas in order to spot good ideas and drop poor
ones as son as possible.
3. Concept development and testingA detailed version of the new product ideas stated
in meaningful in consumer terms. It includes:
a. Concept developmentIt might create the following product concepts for the
electric car:
i.
Concept1--An inexpensive subcompacts design
ii.
Concept2--A medium cost, medium size
iii.
Concept3--A medium cost sporty compact appealing to young people.
iv.
Concept4--An inexpensive subcompact appealing to conscientious people who
wasnt basic transportation.
b. Concept testingTesting new product concepts with a group of target consumers to
determine if the concepts have strong consumer appeal.
4. Marketing Strategy DevelopmentDesigning an initial marketing strategy for a new
product based on the product concept.
5. Business analysisA review of the sales, costs, and profit projections for anew product
to determine whether these factors satisfy the companys objectives.
6. Product DevelopmentThe product concept is developed into a physical product in
order to assure that the product idea can be turned into a workable product.
7. Test marketingThe stage of new product development where the product and
marketing program are tested in more realistic market settings. It includes:
a. Standard test marketers
b. Controlled test marketers
c. Simulated test marketers
8. CommercializationIntroducing a new product into the market. The company must
decide that where to launch the new product.
Speeding up new product development: Following approaches are used.
a. Sequential Product developmentA new product development approach in which
one company department works individually to complete its stage of the process
before passing the new product along to the next department and stage.
b. Simultaneous product developmentAn approach t developing new products in
which various company departments word closely together overlapping the steps in
the product developments process to save time and increase effectiveness.

Product Life Cycle Strategies:

Sale
s

Profi
ts

Product
Introducti Growt Maturit Declin
developme
on
h
y
e
Product life cycleThe course of a products sales and profits over its lifetime.
It involves five distinct stages:
1. Product developmentIt begins when the company finds and develops a new products
idea. During product development sales are zero and the companys investment costs
mount.
2. IntroductionA period of slow sales growth as the product enters in the market. Profits
are nonexistent in this stage because of the heavy expenses of product introduction.
3. GrowthA period of rapid market acceptance and increasing profits.
4. MaturityA period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. Profits level off or decline because of increased
marketing outlays to defend product against competition.
5. Declinethe period when sales fall off and profits drop.
The PLC concept can describe a profit class , a product form, or a brand. It also applied to:
1. StyleA basic and distinctive mode of expression.
2. FashionA currently accepted or popular style in a given field.
3. FadsFashions that enter the market quickly, are adopted with great zeal, peak early,
and decline very fast.
A brief detail of rest of stages of PLC is given below:
1. Introduction StageIn this stage the new product is first distributed and made available
for purchase. Introduction takes time, and sales growth is slow. Profits are negative or
low due to high expenses.

2. Growth stageThe PLC stage at which a products sales start climbing quickly. Early
adopters will continue to buy, and later buyers will start following their lead. Profit
increase and unit manufacturing costs fall.
3. Maturity StageThe stage where sales growth slows or levels off. Posses strong
challenges.
a. Modifying the marketThe company tries to increase the consumption of the
current product. It look for new users and market segments.
b. Modifying the productChanging characteristics such as quality, features or style to
attract new users and to inspire more usage.
c. Modifying the marketing mixImproving sales by changing one or more marketing
mix elements. They can cut prices to attract new users.
4. Decline StageThe PLC stage at which a products sales decline. Decline may be due
to technological advances, or increased competition etc.

Chapter#7 Pricing strategies:

New product pricing strategies:
1. Market skimming pricingSetting a high price for a new product to skim maximum
revenues layer by layer from the segments that are willing to pay the high price, the
company make fewer but more profitable, sales.
2. Market penetration pricingSetting a low price for a new product in order to attract a
large number of buyers and a large market share.
Product mix pricing strategies:
1. Product line pricingSetting the price steps between various products in a line, based
on cost differences between products, customer evaluation of different features, and
competitors prices. Companies usually develop product lines rather than single
products e.g. a cloth store may have a suit with three price levels.
2. Optional product pricingPricing optional or accessory products that are being sold
along with a main product. E.g. a car buyer may order for CD player with it.
3. Captive product pricingSetting a price for products that must be used along with a
main product, such as camera film, and computer software.
4. By product pricingSetting a price for by-products in order to make the main products
price more competitive.
5. Product Bundle pricingCombining several products and offering the bundle at a
reduced price. E.g. Visual studio 20x.
Price Adjustment strategies: Here are six price adjustment strategies:
1. Discount and allowance pricing:
a. DiscountA straight reduction in price on purchases during a stated period of time.
It may be:
i.
Cash discountA price reduction to buyers who pay their bills promptly. E.g.
to pay bill within 10 days etc.
ii.
Quantity discount-- A price reduction to buyers who purchase in large volume.
E.g. R.s 30 for 5 pieces and 20 for 2 pieces etc.
iii.
Functional DiscountA discount offered by the seller to trade channel
members who perform certain functions, such as selling, storing, and r4ecord
keeping. Also called trade discount.
iv.
Seasonal discountA price reduction to buyers who purchase merchandise or
services out of season. E.g. warm clothes in winter.
b. AllowancesPromotional money paid by manufacturers to retailers who agree to
feature the manufacturers products in some way.
Promotional AllowancesThese are the Payments or price reductions to reward
dealers for participating in advertising and sales support programs.
2. Segmented PricingSelling products or services at two or more prices, even though the
difference in prices is not based on differences in costs. To allow for differences in
customers, products, and locations. Segmented pricing takes several forms.

3.

4.
5.

6.

a. Under customer segment pricing, different customers pay different prices for the
same product or service. E.g. museums will charge a lower admission for students.
b. Using location pricing, a company changes different prices for different locations
even though the cost of offering each location is the same.
c. Using time pricing, a firm varies its price by the season, the month the day and even
the hour.
Psychological pricingA pricing approach that that considers the psychology of prices
and not simply the economics; the price is used to say something about the product.
Reference pricesPrices that buyers carry in their minds and refer to when looking at a
given product.
Promotional pricingTemporarily pricing products below list price, and sometimes even
below cost, to increase short run sales.
Geographic pricingDeciding how to price products for customers located in different
parts of the country or world.
a. FOB origin pricing Free on board a carrier; the pricing based upon origin and
location.
b. Uniform delivered pricingthe exact opposite of FOB (free onboard carrier), the
company charges the4 same price plus freight to all customers, regardless of their
location.
c. Zone pricing--Falls between FOB origin price and uniform delivered pricing. The
company sets up two or more zones. All customers within a given zone pay a single
total price the more distant the higher the price.
d. Using basing-point pricingThe seller selects a given city as a basing point and
charges all customers the freight cost from that city to the customer location,
regardless of the city from which the goods are actually shipped.
e. Freight-absorption pricingthe seller who is anxious to do business with a certain
customer or geographical area.
International PricingCompanies that market their products internationally must decide
what a prices to charge in the different countries in which they operate.

Chapter#8 Distribution Channels:

Value delivery Network: A network made up of company, supplier, distributers who pattern
with each other to make or work for.
Nature of distribution channels:
Distribution channel/market channelA set of interdependent orgs involved in the process of
making a product or service available for use or consumption by the consumer or business
user.
Functions of distribution channel: Members of the marketing channel perform many key
functions.
1. InformationGathering and distributing marketing research sand intelligence
information about actors and forces in the marketing environment that are needed for
planning and aiding exchange.
2. PromotionDeveloping and spreading persuasive communications about an offer.
3. ContactFinding and communicating with prospective buyers
4. MatchingShaping and fitting the offer t the buyers needs, inclusion such activities as
manufacturing, grading etc.
5. NegotiationReaching an agreement o price and other terms of the offer so that
ownership or possession can be transferred.
6. Physical distributionTransporting and storing goods
7. FinancingAcquiring and using funds to cover the costs of the channel work.
8. Risk takingAssuming the risks of carrying out the channel work.
Number of channel levels:
Channel levelA layer of middlemen that performs some work in bringing the product sand its
ownership closer to the final buyer.
Direct marketing channelA marketing channel that has no intermediary levels;

Indirect marketing channelsChannels containing one or more intermediary levels.

Chapter#9Retailing and wholesaling:

RetailingAll activities involved in selling goods or services directly to final consumers for
their personal, non business use.
RetailersBusiness whose sales come primarily from retailing.
Store Retailing--They are classified in following characteristics:
1. Amount of serviceRetailers may offer one of three levels of service:
a. Self service retailersCustomers were willing to perform their own locate-compareselect process to save money.
b. Limited service retailersProvide more sales assistance because they carry more
shopping goods about which customers need information. Their increased operating
costs result in higher prices.
c. Full service retailersSuch as specialty stores and first class department stores,
salespeople assist customers in every phase of the shopping process. These stores
carry usually more specialty goods for which customer like them.
2. Product LineThey include the following:
a. Specialty storeA retail store that carries a narrow product line with a deep
assortment within that line.
b. Department storeA retail org that carries a wide variety of product linestypically
clothing, home furnishing and house hold goods.
c. SupermarketsLarge, low cost, low-margin, high-volume, itself-service stores that
carry a wide variety of food, laundry, and household products.
d. Convenience storeA small store located near a residential area that is open long
hours seven day a week and carries a limited line of high turnover convenience
goods.
e. SuperstoreA store almost twice the size of a regular super-market that carries a
large assortment of routinely purchased food and nonfood items and offers many
services.
f. HypermarketsHuge stores that combine supermarket, discount, and warehouse
retailing; in addition to food they carry furniture, appliances, clothing, and many
other products.
g. Category killer
3. Relative pricesThey are classified as follows:
a. Discount StoresA retail institution that sells standard merchandise at lower prices
by accepting lower margins and selling at higher volume.
b. Off-price retailersRetailers that buy at less than regular wholesale prices and sell
at ales than retail. Following are three main types of off-price retailers:
i.
Independent off-price retailersOff-price retailers that are either owned and
run by entrepreneurs or are divisions of larger retail corporations.
ii.
Factory outletsOff-price retailing operations that are owned and operated by
manufacturers and that normally carry the manufacturers surplus,
discontinued, or irregular goods.
iii.
Warehouse clubOff-price retailer that sells a limited selection of brand name
grocery items, appliances, clothing and a hodgepodge of other goods at deep
discounts to members who pay annual membership fees.
c. Catalog showroomA retail operation that sells a wide selection of high markup,
fast moving brand name goods at discount prices.
4. Retail organizationsMajor type of retail orgs are:
a. Chain storesTwo or more outlets that are commonly owned and controlled have
central buying and merchandising, and sell similar lines of merchandise.
b. FranchiseA contractual association between a manufacturer wholesaler or service
org and independent businesspeople who buy the righty to own and operate one or
more units in the franchise system.

WholesalingAll activities involved in selling goods and services to those buying for resale
or business use.
WholesalerA firm engaged primarily in wholesaling activity. These are often better at
performing one or more of the following channel functions:
1. Selling and promotingTo reach many customers at low cost.
2. Buying and assortment buildingSelecting items according to customer needs.
3. Bulk breaking Breaking large lots into small quantities.
4. WarehousingBy holding inventories to reduce the cost and risk of customer.
5. TransportationTo provide quicker delivery to buyers.
6. FinancingCustomer finance by ordering early and paying bills on time.
7. Risk bearingTo bear the cost of theft, damage, etc.
8. Market informationGiving info to customers about competitors and new products.
9. Mgt services and adviceTo help retailers and train them.
Types of wholesalers: Wholesalers fall into three major groups:
1. Merchant wholesalersIndependently owned business that take title to the
merchandise that they handle. The may be:
a. Full service wholesalersProvide a full set of services.
b. Limited services wholesalersOffer fewer services to their suppliers and customers.
2. BrokerA wholesaler who does not take title to goods and whose function is to bring
buyers and sellers together and assist in negotiation.
3. AgentA wholesaler who represents buyers or sellers on a relatively permanent basis,
performance only a few functions, and does not take title to goods.

Chapter#10 Integrated marketing communication

strategy:
Marketing Communication mixAlso known as promotional mix. It consists of specific land
of advertizing. Sales promotion, public relation, personal selling and direct marketing tools
that the company use to achieve advertise and marketing objectives.
5 Major promotional tools:
1. AdvertizingAny paid form of non personal and promotion of idea by an identify
sponsor.
2. Sales promotionShort term incentives to encourage the purchase of products or
service.
3. Public relationsBuilding good relation with companys various publics by obtaining
favorable publicity build up a good cooperate image and handling unfavorable events
4. Personal SellingPersonal presentation by the firm sale force for the purpose of going
sales and building the out relationships.
5. Direct marketingIt will carefully target individuals. Bothe take a immediate respons3e
and make good customer relationships.

Chapter#10 Advertisement and public relations:

3-Basic objectives:
1. Informative advertisingTelling the market about a new product and explaining how
the product works. It concerns with:
a. Describing available services
b. Correcting false impressions
c. Reducing consumers fears
d. Building a company image.
2. Persuasive advertisingBuilding brand preference and changing customers perception
of product attributes. It concerns with:
a. Persuading customer to purchase now
b. Persuading customer to receive a sales call

3. Reminder advertisingReminding consumer that the product may be needed in the

near future and reminding consumer where to buy it. it concerns with:
a. Keeping in consumers mind during off-seasons.
b. Maintaining its top of mind awareness.
Forms of direct marketing:
1. Telephonic marketing
2. Catalog marketing
3. Email marketing
4. Direct response marketing
5. Online marketing
6. Integrated direct marketing

(Smile is Just Afte

THE MARKETING CONCEPT

A correct understanding of marketing concept is fundamental to the study of modern marketing and
marketing management. In any walk of life, thinking precedes doing; the way of thinking that
determines the vary course of action. A concept is a philosophy, an attitude, a course of thinking, an
idea, or a notion relating to any aspect of divine and human creations. The philosophy of an
organization in the dynamic realm of marketing is referred to as marketing concept. A concept is an
orientation or a philosophy;

STANDARD DEFINITION
Definition by Prof. Robert F.Haratley. an integration of marketing activities directed towards customer
satisfaction.
By Philip Kotler- is a customer orientation backed by integrated marketing aimed at generating
customer satisfaction, as the key to satisfying organizational goals.

MARKETING CONCEPTS
There main marketing concepts are:
1. Production Concept: During the initial stages of industrial revolution, output was limited and
marketing was limited only to physical distribution of goods. Then the goal was to increase
production to keep up with the demand. So the managers were production oriented and were
interested in achieving production efficiency and wide distribution.
2. Product Concept: consumers prefer those products that offer quality, performance and
innovativeness. Managers in these organizations focus their energies upon making superior
products and making them better overtime. Here the products are designed with no consumer
input. This leads to product myopia.
3. Sales Concept
4. Marketing Concept
5. Societal Marketing Concept
r Your Effort, Dont Miss it)