33. What Is Market Orientation?

Market orientation is an approach to business that prioritizes identifying

the needs and desires of consumers and creating products that satisfy
them.

 Market orientation is a strategic focus on identifying consumer

needs and desires in order to define new products to be
developed.
 Established businesses like Amazon and Coca-Cola use market
orientation principles to improve or expand their products or
services.

Market orientation is a customer-centered approach to product design. It

involves research aimed at determining what consumers view as their
immediate needs, primary concerns, or personal preferences within a
particular product category.

Additional data analysis may also be employed to reveal trends and

consumer desires that are not specifically expressed. A knowledge of
these trends ideally can help product developers meet or even anticipate
consumer needs. They may even inspire improvements that the
consumer was not aware of as being an option.

A marketing manager is someone who manages the marketing

resources of a business or product. He may be responsible for
various products and services or be in charge of a single
product or service. A manager needs to have a friendly, social
and spontaneous nature. In accord with these attributes,
heneeds to be highly focused, detail-oriented and very
scrupulous of meeting budget restraints and timelines.

Functions of Marketing Manager

 To work with the top management

The main function of marketing manager is to work with top

management. He is to assist the top management in
determining the marketing plans and policies so that all the
problems of the process of planning may be removed and
sound plans and policies may be formulated.

Supervise and coordinate business activities

A marketing manager has to establish effective co-ordination

among the business activities of purchase, sale, packing,
storage, transportation, advertisement, sales promotion, after
sale-services, etc.

Identify Potential Markets

To create and increase the demand of the goods and services

produced by the enterprise, the marketing manager has to
identify new potential markets and also has to maintain the
relationships among the existing markets for their enterprise
and its products.

Evaluate the Product

In the technological arena, the needs and demands of the

customers changes time to time. Thus, it becomes necessary
for the marketing manager to study all these changes and
evaluate the product periodically so that necessary
modifications and alterations may be made in the product.

Launch new product or services

To attract new customers and retain old customers, marketing

manager study needs and demands of the market. According to
it, he launches new goods and services to satisfy the existing
customers and to attract new customers (or consumers).

Select the Channels of Distribution

 The physical distribution of goods and services through many
channels viz. wholesalers, retailers, etc. is decided by the
marketing manager. As per the needs of the firm, he selects the
specific channel and supplies the finished products from
producers to consumers

. Create a market plan

According to the marketing nature of the firm, the marketing

manager creates an action plan to determine when, how, where
and by whom the marketing activities viz. sales forecast,
advertisement, sales promotion, distribution of products, etc.
should be carried out to achieve marketing goals.

Study the Economic and Political Environment

To survive and get success in the business, the marketing

manager not only has to study the economic, social and the
political environment of the business enterprise but also has to
follow the government rules and regulations, social norms and
cultural values, regional treaties and global alignment,
economic rules and tax policies of the government. After
analyzing all these factors, he formulates the business
strategies for the customer satisfaction and profit maximization
of the enterprise.

34. GREEN MARKETING

 Green marketing means developing environment friendly products.

 Green marketing came into prominence in the late 1980s and early
1990s.  This requires conservation of natural resources and
controlling pollution.  Some global and domestic companies are
developing products that are less harmful to environment, and use
cycled materials.
To be effective, green marketing programme requires…

 top management commitment,

 company environment to encourage green marketing,

 rewarding employees for reducing waste,

 developing new environment friendly products, and

 Making them available to consumers at reasonable prices.

Green marketing is a part of the new marketing approaches which do

not just refocus, adjust or enhance existing marketing thinking and
practice, but seek to challenge those approaches and provide a
substantially different perspective.

Green marketing incorporates a broad range of activities, including

product modification, changes to the production process, packaging
changes, as well as modifying advertising.

Firms using green marketing must ensure that their activities are not
misleading to consumers or industry, and do not breach any of the
regulations or laws dealing with environmental marketing.  The
media came up with the term "green washing" to describe cases where
organizations misrepresented themselves as environmentally
responsible. Examples of environmentally-beneficial products and
services: Cereals sold without excess packaging, Energy-efficient
cars, Cleaning supplies that do not harm humans or environment,
Wood harvested from sustainable forests, Energy-efficient light bulbs,
Energy from renewable sources of energy such as windmills and solar
power

WHY GREEN MARKETING?

1. Organizations perceive environmental marketing to be an

opportunity that can be used to achieve its objectives
2. Organizations believe they have a moral obligation to be more
socially responsible

3. Governmental bodies are forcing firms to become more responsible

4. Competitors' environmental activities pressure firms to change their

environmental marketing activities

5. Cost factors associated with waste disposal, or reductions in

energy and material usage forces firms to modify their behavior

35. MARKETING MIX

So the marketing manager concentrates on four major
decision areas while planning the marketing activities,
namely, (i) products, (ii) price, (iii) place (distribution)
and (iv) promotion. These 4 ‘P’s are called as elements
of marketing and together they constitute the
marketing mix. All these are inter-related because a
decision in one area affects decisions in other areas. In
this lesson you will learn about the basic aspects
relating to these 4‘P’s viz., product, price, place and
promotion.
Marketing involves a number of activities. To begin
with, an organisation may decide on its target group of
customers to be served. Once the target group is
decided, the product is to be placed in the market by
providing the appropriate product, price, distribution
and promotional efforts. These are to be combined or
mixed in an appropriate proportion so as to achieve the
marketing goal. Such mix of product, price, distribution
and promotional efforts is known as ‘Marketing Mix’.
According to Philip Kotler “Marketing Mix is the set of
controllable variables that the firm can use to influence
the buyer’s response”. The controllable variables in
this context refer to the 4 ‘P’s [product, price, place
(distribution) and promotion]. Each firm strives to build
up such a composition of 4‘P’s, which can create
highest level of consumer satisfaction and at the same
time meet its organisational objectives. Thus, this mix
is assembled keeping in mind the needs of target
customers, and it varies from one organisation to
another depending upon its available resources and
marketing objectives. Let us now have a brief idea
about the four components of marketing mix.
Product : Product refers to the goods and services
offered by the organisation. A pair of shoes, a plate of
dahi-vada, a lipstick, all are products. All these are
purchased because they satisfy one or more of our
needs. We are paying not for the tangible product but
for the benefit it will provide. So, in simple words,
product can be described as a bundle of benefits which
a marketeer offers to the consumer for a price. While
buying a pair of shoes, we are actually buying comfort
for our feet, while buying a lipstick we are actually
paying for beauty because lipstick is likely to make us
look good. Product can also take the form of a service
like an air travel, telecommunication, etc. Thus, the
term product refers to goods and services offered by
the organisation for sale.
Price: Price is the amount charged for a product or
service. It is the second most important element in the
marketing mix. Fixing the price of the product is a
tricky job. Many factors like demand for a product, cost
involved, consumer’s ability to pay, prices charged by
competitors for similar products, government
restrictions etc. have to be kept in mind while fixing the
price. In fact, pricing is a very crucial decision area as it
has its effect on demand for the product and also on
the profitability of the firm.
Place: Goods are produced to be sold to the consumers.
They must be made available to the consumers at a
place where they can conveniently make purchase.
Woollens are manufactured on a large scale in
Ludhiana and you purchase them at a store from the
nearby market in your town. So, it is necessary that the
product is available at shops in your town. This
involves a chain of individuals and institutions like
distributors, wholesalers and retailers who constitute
firm’s distribution network (also called a channel of
distribution). The organisation has to decide whether to
sell directly to the retailer or through the
distributors/wholesaler etc. It can even plan to sell it
directly to consumers. The choice is guided by a host
of factors about which you will learn later in this
chapter.
Promotion: If the product is manufactured keeping the
consumer needs in mind, is rightly priced and made
available at outlets convenient to them but the
consumer is not made aware about its price, features,
availability etc, its marketing effort may not be
successful. Therefore promotion is an important
ingredient of marketing mix as it refers to a process of
informing, persuading and influencing a consumer to
make choice of the product to be bought. Promotion is
done through means of personal selling, advertising,
publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers
about the availability, characteristics and uses of a
product. It arouses potential consumer’s interest in the
product, compare it with competitors’ product and
make his choice. The proliferation of print and
electronic media has immensely helped the process of
promotion.
36. PLC –The product life cycle or PLC model is one of the most frequently encountered
concepts in marketing management .The PLC is a conceptual representation.It is a product
aging process

Stages of PLC (siddhi)

37). Marketing and societal concept

Marketing concept starts with the company’s target customers and
their needs and wants. The company integrates and co-ordinates all
the activities that will affect customer satisfaction. The company
achieves profit through creating and maintaining customer
satisfaction.

Societal marketing:- It is concerned with the long-term health and

happiness of consumers and well-being of society. This concept
questions – whether the firm that does an excellent job of serving
and satisfying individual consumer wants and is necessarily acting
in the best long-term interests of consumers and society.  

According to Philip Kotler, “The societal marketing concept

holds that the organisational task is to determine the
needs, wants, and interests of target markets and to
deliver the desired satisfaction more effectively and
efficiently than competitors in a way that preserves or
enhances the consumers’ and society’s well-being.”
When schematically presented, the considerations in
setting the marketing policies under two marketing
concepts appear as:
39). Ethical Issues in Marketing

Ethical problems in marketing stem from conflicts and disagreements. Each party in
a marketing transaction brings a set of expectations regarding how the business
relationship will exist and how transactions should be conducted. Each facet of
marketing has ethical danger points as discussed below.

Market Research

Some ethical problems in market research are the invasion of privacy and
stereotyping. The latter occurs because any analysis of real populations needs to
make approximations and place individuals into groups. However, if conducted
irresponsibly, stereotyping can lead to a variety of ethically undesirable results.

Market Audience

Selective marketing is used to discourage demand from so-called undesirable

market sectors. Examples of unethical market exclusion are past industry attitudes to
the gay, ethnic minority, and plus-size markets.

Another ethical issue relates to vulnerable audiences in emerging markets in

developing countries, as the public there may not be sufficiently aware of skilled
marketing ploys.

Ethics in Advertising and Promotion

The advertising of certain products may strongly offend some people while being of
interest to others. Examples include: feminine hygiene products as well as
hemorrhoid and constipation medication. The advertising of condoms has become
acceptable in the interests of AIDS-prevention, but are nevertheless seen by some
as promoting promiscuity. Violence is an issue especially for children’s advertising
and advertising likely to be seen by children.
Through negative advertising techniques, the advertiser highlights the disadvantages
of competitor products rather than the advantages of their own. These methods are
especially used in politics.

Delivery Channels

Direct marketing is the most controversial of advertising channels, particularly when

approaches are unsolicited. TV commercials and direct mail are common examples.
Electronic spam and telemarketing push the borders of ethics and legality more
strongly.

Deceptive Advertising and Ethics

Deceptive marketing is not specific to one target market, and can sometimes go
unnoticed by the public. There are several ways in which deceptive marketing can be
presented to consumers; one of these methods is accomplished through the use of
humor. Humor provides an escape or relief from some kind of human constraint, and
some advertisers intend to take advantage of this by deceptively advertising a
product that can potentially alleviate that constraint through humor.

Anti-competitive Practices

Bait and switch is a form of fraud where customers are “baited” by advertising for a
product or service at a low price; second, the customers discover that the advertised
good is not available and are “switched” to a costlier product.

Planned obsolescence is a policy of designing a product with a limited useful life,

so it will become unfashionable or no longer functional after a certain period of time
and put the consumer under pressure to purchase again.

A pyramid scheme is a non-sustainable business model that involves promising

participants payment or services, primarily for enrolling other people into the
scheme, rather than supplying any real investment or sale of products or services to
the public.

Pyramid Scheme: This business practice relies on getting the initial investor or “captain” to enroll others
for a fee to them who in turn will also enroll others in order to get paid.

Pricing Ethics

Bid rigging is a form of fraud in which a commercial contract is promised to one

party, although for the sake of appearance several other parties also present a bid.

Predatory pricing is the practice of selling a product or service at a very low price,
intending to drive competitors out of the market, or create barriers to entry for
potential new competitors.
42 & 55 7 Stages or Steps Involved in Marketing Research Process

The various stages or steps in the marketing research process are discussed below: 1.
Identification and Defining the Problem: The market research process begins with the
identification “of a problem faced by the company. The clear-cut statement of problem may
not be possible at the very outset of research process because often only the symptoms of the
problems are apparent at that stage. Then, after some explanatory research, clear definition of
the problem is of
crucial importance in marketing research because such research is a costly process involving
time, energy and money.
Clear definition of the problem helps the researcher in all subsequent research efforts
including setting of proper research objectives, the determination of the techniques to be
used, and the extent of information to be collected.
It may be noted that the methods of explanatory research popularly in use are—survey of
secondary data, experience survey, or pilot studies, i.e., studies of a small initial sample. All
this is also known as ‘preliminary investigation’.
2. Statement of Research Objectives: After identifying and defining the problem with or
without explanatory research, the researcher must take a formal statement of research
objectives. Such objectives may be stated in qualitative or quantitative terms and expressed as
research questions, statement or hypothesis. For example, the research objective, “To find out
the extent to which sales promotion schemes affected the sales volume” is a research
objective expressed as a statement.
On the other hand, a hypothesis is a statement that can be refuted or supported by empirical
finding. The same research objective could be stated as, “To test the proposition that sales are
positively affected by the sales promotion schemes undertaken this winter.”
Example of another hypothesis may be: “The new packaging pattern has resulted in increase
in sales and profits.” Once the objectives or the hypotheses are developed, the researcher is
ready to choose the research design.
3. Planning the Research Design or Designing the Research Study: After defining the
research problem and deciding the objectives, the research design must be developed. A
research design is a master plan specifying the procedure forcollecting and analysing the
needed information. It represents a framework for the research plan of action.
The objectives of the study are included in the research design to ensure that data collected
are relevant to the objectives. At this stage, the researcher should also determine the type of
sources of information needed, the data collection method (e.g., survey or interview), the
sampling, methodology, and the timing and possible costs of research.
4. Planning the Sample: Sampling involves procedures that use a small number of items or
parts of the ‘population’ (total items) to make conclusion regarding the ‘population’.
Important questions in this regard are— who is to be sampled as a rightly representative lot?
Which is the target ‘population’? What should be the sample size—how large or how small?
How to select the various units to make up the sample?
5. Data Collection: The collection of data relates to the gathering of facts to be used in
solving the problem. Hence, methods of market research are essentially methods of data
collection. Data can be secondary, i.e., collected from concerned reports, magazines and other
periodicals, especially written articles, government publications, company publications,
books, etc.
Data can be primary, i.e., collected from the original base through empirical research by
means of various tools. There can be broadly two types of sources
(i) Internal sources—existing within the firm itself, such as accounting data, salesmen’s
reports, etc. (ii) External sources—outside the firm.
6. Data Processing and Analysis: Once data have been collected, these have to be converted
into a format that will suggest answers to the initially identified and defined problem. Data
processing begins
with the editing of data and its coding. Editing involves inspecting the data-collection forms
for omission, legibility, and consistency in classification. Before tabulation, responses need to
be classified into meaningful categories.
The rules for categorizing, recording and transferring the data to ‘data storage media’ are
called codes. This coding process facilitates the manual or computer tabulation. If computer
analysis is being used, the data can be key punched and verified.
Analysis of data represents the application of logic to the understanding of data collected
about the subject. In its simplest form analysis may involve determination of consistent
patterns and summarising of appropriate details.
The appropriate analytical techniques chosen would depend upon informational requirements
of the problem, characteristics of the research designs and the nature of the data gathered.
The statistical analysis may range from simple immediate analysis to very complex
multivariate analysis.
7. Formulating Conclusion, Preparing and Presenting the Report: The final stage in the
marketing research process is that of interpreting the information and drawing conclusion for
use in managerial decision. The research report should clearly and effectively communicate
the research findings and need not include complicated statement about the technical aspect
of the study and research methods.
Often the management is not interested in details of research design and statistical analysis,
but instead, in the concrete findings of the research. If need be, the researcher may bring out
his appropriate recommendations or suggestions in the matter. Researchers must make the
presentation technically accurate, understandable and useful.

44. social factors are reference groups, family, role &status

45). STEPS TO DEVELOP A NEW PRODUCT

 New product development is the process of bringing an
original product idea to market. Although it differs by
industry, it can essentially be broken down into   

1. Idea generation – The New Product Development Process

The new product development process starts with idea generation. Idea generation refers to the
systematic search for new-product ideas. Typically, a company generates hundreds of ideas,
maybe even thousands, to find a handful of good ones in the end. Two sources of new ideas can
be identified:

 Internal idea sources: the company finds new ideas internally. That means R&D, but also
contributions from employees.
 External idea sources: the company finds new ideas externally. This refers to all kinds of
external sources, e.g. distributors and suppliers, but also competitors. The most important
external source are customers, because the new product development process should focus on
creating customer value.
2. Idea screening – The New Product Development Process
The next step in the new product development process is idea screening. Idea screening means
nothing else than filtering the ideas to pick out good ones. In other words, all ideas generated are
screened to spot good ones and drop poor ones as soon as possible. While the purpose of idea
generation was to create a large number of ideas, the purpose of the succeeding stages is to
reduce that number. The reason is that product development costs rise greatly in later stages.
Therefore, the company would like to go ahead only with those product ideas that will turn into
profitable products. Dropping the poor ideas as soon as possible is, consequently, of crucial
importance.

3. Concept development and Testing – The New Product

Development Process
To go on in the new product development process, attractive ideas must be developed into a
product concept. A product concept is a detailed version of the new-product idea stated in
meaningful consumer terms. You should distinguish

 A product idea à an idea for a possible product

 A product concept à a detailed version of the idea stated in meaningful consumer terms
 A product image à the way consumers perceive an actual or potential product.    
4. Marketing strategy development – The New Product
Development Process
The next step in the new product development process is the marketing strategy development.
When a promising concept has been developed and tested, it is time to design an initial
marketing strategy for the new product based on the product concept for introducing this new
product to the market.

The marketing strategy statement consists of three parts and should be formulated carefully:

o A description of the target market, the planned value proposition, and the sales,
market share and profit goals for the first few years
o An outline of the product’s planned price, distribution and marketing budget for
the first year
o The planned long-term sales, profit goals and the marketing mix strategy.
 5. Business analysis – The New Product Development
Process
Once decided upon a product concept and marketing strategy, management can evaluate the
business attractiveness of the proposed new product. The fifth step in the new product
development process involves a review of the sales, costs and profit projections for the new
product to find out whether these factors satisfy the company’s objectives. If they do, the product
can be moved on to the product development stage.

In order to estimate sales, the company could look at the sales history of similar products and
conduct market surveys. Then, it should be able to estimate minimum and maximum sales to
assess the range of risk. When the sales forecast is prepared, the firm can estimate the expected
costs and profits for a product, including marketing, R&D, operations etc. All the sales and costs
figures together can eventually be used to analyse the new product’s financial attractiveness.

5. Product development – The New Product Development

Process
The new product development process goes on with the actual product development. Up to this
point, for many new product concepts, there may exist only a word description, a drawing or
perhaps a rough prototype. But if the product concept passes the business test, it must be
developed into a physical product to ensure that the product idea can be turned into a workable
market offering. The problem is, though, that at this stage, R&D and engineering costs cause a
huge jump in investment.

The R&D department will develop and test one or more physical versions of the product concept.
Developing a successful prototype, however, can take days, weeks, months or even years,
depending on the product and prototype methods.Also, products often undergo tests to make
sure they perform safely and effectively. This can be done by the firm itself or outsourced.

In many cases, marketers involve actual customers in product testing. Consumers can evaluate
prototypes and work with pre-release products. Their experiences may be very useful in the
product development stage.

5. Test marketing – The New Product Development

Process
The last stage before commercialisation in the new product development process is test
marketing. In this stage of the new product development process, the product and its proposed
marketing programme are tested in realistic market settings. Therefore, test marketing gives the
marketer experience with marketing the product before going to the great expense of full
introduction. In fact, it allows the company to test the product and its entire marketing
programme, including targeting and positioning strategy, advertising, distributions, packaging etc.
before the full investment is made.

The amount of test marketing necessary varies with each new product. Especially when
introducing a new product requiring a large investment, when the risks are high, or when the firm
is not sure of the product or its marketing programme, a lot of test marketing may be carried out.

5. Commercialisation
Test marketing has given management the information needed to make the final decision: launch
or do not launch the new product. The final stage in the new product development process is
commercialisation. Commercialisation means nothing else than introducing a new product into
the market. At this point, the highest costs are incurred: the company may need to build or rent a
manufacturing facility. Large amounts may be spent on advertising, sales promotion and other
marketing efforts in the first year.
 Some factors should be considered before the product is commercialized:

o Introduction timing. For instance, if the economy is down, it might be wise to wait
until the following year to launch the product. However, if competitors are ready to introduce their
own products, the company should push to introduce the new product sooner.
o Introduction place. Where to launch the new product? Should it be launched in a
single location, a region, the national market, or the international market? Normally, companies
don’t have the confidence, capital and capacity to launch new products into full national or
international distribution from the start. Instead, they usually develop a planned market rollout
over time.
In all of these steps of the new product development process, the most important focus is on
creating superior customer value. Only then, the product can become a success in the market.
Only very few products actually get the chance to become a success. The risks and costs are
simply too high to allow every product to pass every stage of the new product development
process.

47.) Packaging can help sell the product because it provides space for sharing
information about the product, such as nutritional information, usage or directions.
For example, some packaging contains marketing messaging on the front to attract
customers to pick it up and look at the product.
When developing a product in a new market, it is important to conduct market
research, such as focus groups, to determine what is appealing to the new market.
For example, preferences of colours, pictures and labels on products can differ from
one country to another or from one group of customers to another. Packaging is
such an essential part of the marketing process, companies spend a considerable
amount of time and money planning and designing it.

1. Protect Products
Product packaging ensures that products are safe when they are shipped to
consumers and stores, as well as when they sit on store shelves. It's important to
marketers that customers receive their products in undamaged containers, so that
customers experience the care and consideration companies put into planning the
packaging the products. Poorly packaged products can turn into customer service
and public relations problems for companies. Consumers perceive products as
inferior and lacking quality if they are not packaged appropriately.

2. Attract Consumers

The visual presentation of product packaging helps attract consumers and

persuade them to pick up a product, learn what it's used for and determine if the
product will add value to their lives. Packaging design is heavily dependent on the
company's target market. 00:3200:59

3. Provide Information

Businesses rely on product packaging to communicate information. Packaging

provides ingredient information, instructions for use, features and benefits.
Customer service information also appears on packaging, as a way to give
consumers a way to contact companies and provide feedback or ask questions.

4. Reinforce Branding and Logo

Product packaging features and the branding elements that companies work hard
to keep consistent, such as logos, product characters and tag lines. Branding
elements help consumers instantly recognize products on shelves and in
advertising.

5. Keeping products fresh longer

Many food products — from bread to cookies — stay fresher when sealed in
packaging. For example, bread becomes stale in mere minutes outside of its
packaging. Foods that are canned or vacuum-sealed can stay fresh on a shelf for
months or even years, while they'd last only days in the refrigerator before spoiling.

6. Preventing breakage and wear-and-tear

Packaging keeps fluids like ink and perfume from evaporating. Paper becomes
discoloured and glue unusable when exposed to the air, but keeps for years in its
packaging. Items that could be sold without packaging — like stuffed animals and
other toys — are shielded from the dings and dirt they encounter during shipping
or sitting on store shelves.
What is Labelling?
Labelling is the process of providing identification to the product. It is a
subpart of the branding process & aims at providing uniqueness to the
product. It is simply a printed slip that is attached to the product. It contains
all the information regarding the product like price, ingredients used,
quantity, manufacture date etc.

It is the medium through which all required information is communicated to

the customers. Customers after reading the labels of products easily make
decisions during the buying process and are easily able to recognise
whether the product will be able to fulfil their needs & demands.

Benefits of Labelling in Marketing

Labelling has a very efficient role in the marketing of the product. Some of
the important roles of labelling are discussed below:

Provides Identification
Labelling plays an efficient role in providing uniqueness & identity to
products. It helps the consumers in the identification of products among
large number of products available in the market.

It prevents confusion among the people that can be created by the

substitute products of other competitors. Therefore, through customer
easily recognises its brand. For example, the Label of Dettol helps people
in easy identification of its products.

Provides Description
Label is a medium that communicates the information regarding the
product to customers. It is basically a slip that contains detail like nature,
quality, price, quantity etc. Customers can easily get each & every required
information by simply reading labels. It will help them in making their
decision during the buying process fast & easily.

Makes Products Comparison Easy

Comparison is something on which customers relies to make the best &
right choice. It has an important part in the buying process of the
customers. Labelling gives each & every detail regarding the product on a
small printed slip.

Customers just by reading the labels of different products can choose the
best one as per their choice. It enables the customers in understanding &
checking product even before using it.
 Helps in Marketing
Labelling is considered an efficient sales tool for marketing of the product. It
helps in the promotion of products easily. It adds attraction to the products.
Labelling helps in attracting more & more consumers for the products.

Many times the people are encouraged to buy a product just by seeing the
labels of the product. Businesses should try to design attractive & small
labels for their products. It will create a long-lasting influence on your
customers. 

Protects Customers from Getting Cheated

Labelling helps customers in the right choice. It helps the people in
choosing a product that can fulfil all their demands. Customers can easily
recognise fake products by seeing their labels.

They can get all the details regarding the manufacturing date & date of
expiry from labels. It helps in assuring the customers whether the product is
right or not. Making the wrong choice during the buying process will have ill
effects on customers. Therefore, it avoids all chances of wrong decisions
during the buying process.

Provides Information As Per Law

Business are required to provide certain statutory information regarding
their products. It is mandatory by law & they are strictly required to follow it.
Labelling is a means through which all required information required by law
is provided on the product package.

There are certain poisonous & hazardous products, with which providing
safety tips & certain warning is very important to be mentioned. Likewise in
the case of different tobacco products giving health warning is important.
All these requirements of the law are fulfilled by business by printing labels
with all these details.

48. factors managers need to observe an organization

MICRO - ENVIRONMENT VARIABLES
It consists of elements or forces that influence marketing directly. It includes Supplier,
Marketing Intermediaries, Costumers, Competitors and the General Public.
1. SUPPLIER: One who supply the resources to a company. Any shortage of Supply
affect the Marketing function and thus, should avoid dependence on any single
supplier.
 2. MARKETING INTERMEDIATES: They are the middlemen who create place
Utility, Time utility and Quantity utility. These includes Physical Distribution
Firms, Transport Companies, Marketing Consulting Firms, Marketing Services
Agencies and Assist the company in promoting the right products to the right
markets.
3. CUSTOMERS: It refers to consumer markets, industrial markets, reseller markets,
international markets and govt. markets having its own characteristics.
4. PUBLIC: The marketing decisions considerably influenced by public relations,
govt. policies, the press, the legislatures and the general public.
5. COMPETITORS: Own pe likh lena gadhii !! (SIDDHI PIDDHI)

MACRO- ENVIRONMENT VARIABLES

Macro-environment consist of forces affecting the entire society or economy at large. It
influences entire industry as a whole.
 Demographic environment.
 Social-Cultural environment.
 Economic environment.
 Political environment.
 Technological environment.

 DEMOGRAPHIC ENVIRONMENT It includes factors such as population growth,

change in age-group, marriages, family sizes, movement of people from big cities to rural
or sub urban areas, literacy etc. It is essential for the market to understand the
demographic forces in a country which helps him frame optimal marketing-mix.
 SOCIO-CULTURAL ENVIRONMENT
 Sociological Factors Consumers being social animal and their life style is deeply
influenced by the social set up. It is found to have deep influence on consumer
taste, temperament, life and living. The needs, desires, hopes and aspirations of
the consumers are necessary to be understood.
 Psychological The study about the behaviour, attitude, temperament, mentality
and personality is must and how there wants and needs can be best satisfied?
 Anthropological these factors are vital in noting the national and regional
characters, cultures and sub cultures and the pattern of living.
 ECONOMIC ENVIRONMENT
It comprises of economic system of the country, affects the demand structure of any industry/
product. Changes in economic conditions provides marketers with new challenges and
threats. Various economic factors which directly affect the Marketing strategies are discussed
below.
 Role of Govt: Marketing in greatly influenced by the role of govt. through fiscal
policies, industrial regulations, economic controls, import-export policies etc.
Monetary and Non-Monetary policies of the Govt. also determine the tempo of
economic development.
 Consumers: Consumer welfare and interest should be taken into consideration
while preparing marketing programme. The marketer is to make available quality
products at reasonable prices, in sufficient qualities, at required time interval.
  Competition: Healthy competition is always in the interest of customers whereas
unhealthy competition is harmful and leads toward increasing cost and waste.
 Price: It is determinant of the fate of any business. If the Price is too high, reduces
the consumer and consumption and if too low, the producers and marketers are
left in the lurch.
 POLITICAL/ LEGALENVIRONMENT
The legal environment for marketing decision is characterized by various laws passed by
Central or State Govt. and even by local administration. Govt. agencies, political parties,
pressure groups and laws create tremendous pressure and constraints for marketer. Marketing
managers required full knowledge and understanding of political philosophy and ideologies
of major political groups and legal environment for framing marketing strategies and growth
of business.
 TECHNOLOGICALENVIRONMENT
It helps to shape changes in living style of the consumers. It has the responsibility of relating
changing life- style patterns, values and changing technology to market opportunities for
profitable sales to particular market segment.

49.Importance of Societal Marketing:

 Business is marketing and marketing is business.
 The ultimate purpose of business, from the point of view of society, is to produce
products and render services for exchanging for money by which needs of man can be
fulfilled and the needs of society can be looked after.
 Societal Marketing is very important to society, the environment, and businesses. This
concept was developed in order to tackle the consumerism and profit only the motive
of business.
 The societal marketing concept helps to maximize profits for the organization and
creates a long-term relationship with customers.
 It encourages developing products that benefit society in the long run and satisfies
consumers.

52.Wholesalers

1. The wholesaler is a middle man in the distribution of goods

2.He provides his own storage facilities in so doing he relieves the manufacturer of the
burden and cost of maintaining warehouse in every town and city.

3.The wholesaler finance the manufacturer through the depot which often run into thousands
of dollars, to him in in lies of supplies .

4.He gives the producer vital information regarding the market situation of the products he
deals in.
5.The wholesaler sometimes provides credit facilities to the retailers. 

Retailer  1.The retailer is the last link of distribution he has the right goods in the right place
and at the right time.

2.Sometimes, the retailer take the goods to where it is most convenient to the customers.

3.Retailers may provide credit facilities to customer in the sense that they do not
immediately pay for what they buy.

4.They may also provide after sales services to their customers.

5.They may advise the wholesaler and manufacturer on the goods they market.

53). CONCEPT OF DEMANDS NEED TO BE MET BY THE ORGANISATION

Demands are wants for specific products backed by ability to pay, need
for the product and willingness to pay a price for a specific good or
service. Holding all other factors constant, an increase in the price of a
good or service will decrease the quantity demanded, and vice versa.

Demand is generally classified on the basis of various factors, such

as nature of a product, usage of a product, number of consumers of
a product, and suppliers of a product.

The demand for a particular product would be different in different

situations.

Therefore, organizations should be clear about the type of demand

for their products.

The different types of demand (as shown in Figure-1) are

discussed as follows:
i. Individual and Market Demand:
Refers to the classification of demand of a product based on the
number of consumers in the market. Individual demand can
be defined as a quantity demanded by an individual for a product at
a particular price and within the specific period of time. For
example, Mr. X demands 200 units of a product at Rs. 50 per unit
in a week.

The individual demand of a product is influenced by the price of a

product, income of customers, and their tastes and preferences. On
the other hand, the total quantity demanded for a product by all
individuals at a given price and time is regarded as market demand.

For example, there are four consumers of oil (having a certain

price). These four consumers consume 30 liters, 40 liters, 50 liters,
and 60 liters of oil respectively in a month. Thus, the market
demand for oil is 180 liters in a month.

ii. Organization and Industry Demand:

Refers to the classification of demand on the basis of market. The
demand for the products of an organization at given price over a
point of time is known as organization demand. For example, the
demand for Toyota cars is organization demand. The sum total of
demand for products of all organizations in a particular industry is
known as industry demand.

For example, the demand for cars of various brands, such as Toyota,
Maruti Suzuki, Tata, and Hyundai, in India constitutes the industry’
demand. The distinction between organization demand and
industry demand is not so useful in a highly competitive market.

This is due to the fact that in a highly competitive market,

organizations have insignificant market share. Therefore, the
demand for an organization’s product is of no importance.
However, an organization can forecast the demand for its products
only by analyzing the industry demand.

iii. Autonomous and Derived Demand:

Refers to the classification of demand on the basis of dependency
on other products. The demand for a product that is not
associated with the demand of other products is known as
autonomous or direct demand. The autonomous demand arises due
to the natural desire of an individual to consume the product.

For example, the demand for food, shelter, clothes, and vehicles is
autonomous as it arises due to biological, physical, and other
personal needs of consumers. On the other hand, derived demand
refers to the demand for a product that arises due to the demand for
other products. For example, the demand for petrol, diesel, and
other lubricants depends on the demand of vehicles.

iv. Demand for Perishable and Durable Goods:

Refers to the classification of demand on the basis of usage of
goods. The goods are divided into two categories, perishable goods
and durable goods. Perishable or non-durable goods refer to the
goods that have a single use. For example, cement, coal, fuel, and
eatables. On the other hand, durable goods refer to goods that can
be used repeatedly.

For example, clothes, shoes, machines, and buildings. Perishable

goods satisfy the present demand of individuals. However, durable
goods satisfy both present as well as future demand of individuals.
Therefore, consumers purchase durable items by considering its
durability.

In addition, durable goods need replacement because of their

continuous use. The demand for perishable goods depends on the
current price of goods and customers’ income, tastes, and
preferences and changes frequently, while the demand for durable
goods changes over a longer period of time.

v. Short-term and Long-term Demand:

Refers to the classification of demand on the basis of time
period. Short-term demand refers to the demand for products that
are used for a shorter duration of time or for current period. This
demand depends on the current tastes and preferences of
consumers.

For example, demand for umbrellas, raincoats, sweaters, long boots

is short term and seasonal in nature. On the other hand, long-term
demand refers to the demand for products over a longer period of
time.

Generally, durable goods have long-term demand. The long-term

demand of a product depends on a number of factors, such as
change in technology, type of competition, promotional activities,
and availability of substitutes. The short-term and long-term
concepts of demand are essential for an organization to design a
new product.