CARE COLLEGE OF ARTS AND SCIENCE,

THAYANUR,
TIRUCHIRAPPALLI -620 009.

B.COM(CA) –I SEMESTER

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Unit-I:
Marketing - Evolution – Definition- classification- objectives- selling vs. marketing –
Marketing a science or art? - Modern Concept of marketing – role of marketing in economic
development - Functions – Buying- Selling - Transportation – Warehousing – Standardization –
Grading – Packaging- ISO Series and AGMARK - ISI.

Unit-II:
Buyer’s behaviour – Buying motive – Market segmentation - Product - Features -
Classification - New Product Planning and Development - Product Mix - Product Life Cycle - Branding
- Brand Loyalty and Equity.

Unit-III:
Pricing - Objectives - Factors - Methods and strategies – Channels of Distribution –
Wholesaler and Retailer – Services rendered by them.
Unit-IV:
Sales Promotion –types- Need –Sales Promotion mix– Advertising – Publicity- Personal
selling - Advantages - Limitations.
Unit-V:
Marketing Information System - Marketing Research - Features –Direct marketing - E Business –
Telemarketing - Mail order business.

Text and Reference Books:

1. R.S.N.Pillai&Bagavathi , “Modern Marketing,” S.Chand& Co., New Delhi.
2. RajanNair.N.,SanjithR.Nair,” Marketing,” Sultan Chand & Sons, New Delhi.
3. Kotler Philip, “Marketing Management,” Prentice Hall of India (Pvt) Ltd., New Delhi.
4. Monga&ShaliniAnand, “ Marketing Management,” Deep & Deep Publications, New Delhi.
5. Dr. L. Natarajan , “Marketing,” Margham Publications, Chennai.
6. Grewal , “Marketing,” Tata McGraw Hill management, New Delhi.
7. B.S.Raman, “Marketing,” United Publishers, Mangalore. Dr. J. Jayasankar,“Marketing,” Margham
Publications, Chennai.

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 UNIT-I
MARKETING

Meaning
The management process through which goods and services move from concept to the
customer. It includes the coordination of four elements called the 4 P's of marketing:
 identification, selection and development of a product,
 determination of its price,
 selection of a distribution channel to reach the customer's place, and
 development and implementation of a promotional strategy.
Definition
According to the American Marketing Association (AMA) Board of Directors,
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large”.
Buying
Party which acquires, or agrees to acquire, ownership (in case of goods), or benefit
or usage (in case of services), in exchange for money or other consideration under a
contract of sale. Also called purchaser. See also customer.

Selling
The last step in the chain of commerce where a buyer exchanges cash for a seller's
good or service, or the activity of trying to bring this about. See also marketing.
Customer
An individual or business that purchases the goods or services produced by a
business. The customer is the end goal of businesses, since it is the customer who pays for
supply and creates demand. Businesses will often compete through advertisements or sales
in order to attract a larger customer base.

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IMPORTANT FEATURES OF MARKETING
1. Customer focus:
The marketing function of a business is customer-centred. It makes an attempt to
study the customer needs, and goods are produced accordingly. The business existence
depends on human needs.
2. Customer satisfaction:
A customer expects some services or benefits from the product for which payment
is made. If this benefit is more than the amount paid, then the customer is satisfied. In the
long run, customer satisfaction helps to retain market demand.
3. Objective-oriented:
All marketing activities are objective-oriented. Different objectives are fixed at
different levels, but the main objective is to earn profit from business along with the
satisfaction of human wants.
4. Marketing is both art and science:
Art refers to a specific skill that is required in marketing activities of any type of
business. Science refers to a systematic body of knowledge, based on facts and principles.
The concept of marketing includes a bunch of social sciences such as economics, sociology,
psychology and law. It indicates market operations based on some principles. Hence,
marketing is an art as well as a science.
5. Continuous and regular activity:
Marketing is an activity designed to plan, price, promote and distribute products. At
the same time, it also addresses both the current and future consumers. Thus, it is a
continuous process. A marketer has to consistently monitor environment. This helps in
coming up with new products.

MODERN CONCEPTS OF MARKETING

a) Production concept: – The companies which use the production concept generally
focus too narrowly on their own activities because according to this concept the companies
think that consumer will buy the product which comes in the market.
b) Product concept: – As per this concept companies give importance to the features or
the quality of the product because in long run the product exists only with the quality it is
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giving to the consumer.

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 c) Selling concept: – it is not sufficient for the manufacturer to made the goods and wait
for the customers. Thus, according to this concept it is very important to inform the
consumer about the product which can be done through different ways of promotion.
d) Marketing concept: – consumer now a day is treated as “GOD”. So it is very important
for the manufacturer to produce the product which the consumer wants, so that consumer
get satisfaction and manufacturer earns profit.
e) Consumer concept:- now not only marketing concept is sufficient rather the companies
are using consumer concept which means to give attention to individual consumer it can be
done through one to one marketing.
f) Societal marketing concept: – this concept means that company should not only work
for the consumer but also for the society. So the company should make balance between
company’s profits, consumer wants and society welfare.
WHAT IS THE DIFFERENCE BETWEEN "MARKETING" AND "SELLING”

Point of
Marketing Concept Selling Concept
Difference

Marketing is the process of delivering Sales are the process of

Definition goods and services to create value for the rounding up customers to
customer and make a profit. increase sales.

View on It views the business as a customer It views business as a goods-

business satisfactory process. producing process.

Price Consumers determine the price. The cost determines the price.

This concept is applicable to the pure This concept is useless in a pure

Effectiveness
competition market. competition market

This concept gives equal importance to the This concept gives importance
Marketing mix
marketing mix. to only promotion.

Market This concept thinks about market This concept never thinks about
segmentation segmentation deeply. the market concept.

This concept starts with actual and This concept starts with
Start
potential customers. existing products.

This concept earns profit

This concept earns profit through
Profit through attractive sales and
customer satisfaction.
promotion.
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 This concept emphasis on
Emphasis This concept emphasis customer needs.
products or services.

The scope of the marketing concept is The scope of the selling concept
Scope
wider. is narrow.

The objective of the selling

The objective of this concept is to satisfy
Objective concept is to increase sales of
the customer through goods and services.
goods and services.

FUNCTIONS OF MARKETING

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Pricing
Setting and communicating the value of products and services. Setting the price at
the right level.
Product/Service Management
Designing, developing, maintaining, improving, and acquiring products and services
that meet consumer needs.
Distribution
Determining the best ways for customers to locate, obtain, and use the products and
services of an organization. Involves moving the product each step from the deign idea to
the consumer.
Financing
Budgeting for marketing activities, obtaining the necessary funds needed for
operations, and providing financial assista nce to customers so they can purchase the
business products and service.
Marketing-Information Management
Obtaining, managing, and using information about what customers want to improve
business decision making, performance of marketing activities, and determining what will
sell.

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Selling
Communicating directly with potential customers to determine and satisfy their
needs.
Promotion
Communicating with customers about the product to achieve the desired result--
customer demand for and purchase of the product. Includes advertising, personal selling,
publicity, and public relations.

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MARKETING MIX
The “marketing mix” involves 4 variables or 4 P’s which are product, place, price
and promotion. A company will through market research using these variables so the
designer has an accurate brief of the requirements of the market. Helps to develop a
marketing strategy.

Product
Product Standardisation “The process of setting generally uniform characteristics
for a particular good or service. Product standardization among the goods provided by
different businesses operating in technology-based industries can be useful for consumers
since it permits competition among the various suppliers.”
Place
Many companies choose to sell directly to the consumer through the internet, while
also selling through suppliers and stores. There are advantages and disadvantages to both
approaches, and also to using this hybrid model.
Price
An extremely important aspect of marketing a product is setting the correct price
that will attract consumers to make a purchase while generating profit. Without getting the
balance right, a company can quickly find that they are losing money through lack of sales
or through lack of profit generation. The following strategies for setting price can be used:
 cost-plus pricing – adding a percentage mark up to the unit cost (manufacturing,
marketing etc)
 demand pricing
 competitor-based pricing
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  product line pricing
 psychological pricing.
Promotion
When selling a product, promotion is another key aspect. Depending on the nature
of a product, its position within the product life cycle among other reasons, the forms of
promotion can be different. They include:1.advertising, 2.publicity, 3.personal selling.

TRANSPORTATION
Meaning
Transportation is indispensible function of marketing. Transportation provides the
physical means of carrying goods and persons from one place to another. In other words, it
is concerned with carrying the goods from the places of production to the places of their
consumption.
Transportation creates place utility and regularises supply from one place to
another. Transportation greatly facilitates the performance of marketing functions like
buying, assembling, selling, storage and warehousing etc. The entire economy and its
development is dependent on a well- knit system of transportation.
Modes of Transportation

Importance of Transportation
(1) Transportation plays significant role in quick industrialization and development
of agriculture.
(2) It plays important role in the process of stabilization of prices in different regions.
(3) It is helpful in increasing internal and foreign trade. The development, of air and
ocean transport has greatly increased foreign trade.

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 (4) Transportation has greatly helped in increasing standard of living of people by
providing goods even at far flung areas.
(5) Transportation is one of the important considerations to be taken into account
in deciding location of an industrial unit.

STORAGE AND WAREHOUSING

Meaning of Storage
Storage is a process concerned with retaining and preserving the goods. Usually
there is a time gap between production and consumption of goods. This gap is the concern
of the function of storage. Storage makes available the goods as and when they are required
and it ensures continuous and unrestricted supply and flow of goods in the market. In this
manner, it creates place utility also by holding and retaining of goods at different places.

Importance of Storage
Storage is an essential function of marketing. Its importance can be studied as follows:
1. Now-a-days production is carried on in anticipation of demand of the product in
the market. All the goods are not sold off immediately. For the unsold stock of goods
storage is indispensible.
2. Many commodities are seasonal in nature. They are produced during a particular
season. In order to make their availability throughout the year, they have to be stored. This
is usually done in case of agricultural produce.
3. Many products are produced throughout the year, but their demand arises only
during a particular season in the year. In such cases products have to be stored and
released when the season arrives. Wool and woollen garments are examples of this kind.
4. Storage is important from the point of view of producers as they have to store the
raw material in order to carry production without any obstruction and delay on account of
non- availability of raw material.
5. Storage of goods is necessary from the point of view of wholesalers as well as
retailers. Wholesalers have to supply these goods regularly to retailers and retailers to
consumers.
STANDARDIZATION
Formulation, publication, and implementation of guidelines, rules, and specifications
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for common and repeated use, aimed at achieving optimum degree of order or uniformity
in a given context, discipline, or field.
According to ISO, is the process of formulating and applying rules for an orderly
approach to a specific activity for the benefit and cooperation of all concerned, and in
particular for the promotion of the over all economy, considering due safety requirements.
 determines classes of a commodity or service that has fixed limits
 Involves the determination of basic limits.
 Provides scientific language to define a commodity
GRADING
It is the process of dividing a quantity of the same kind of commodity into different
homogenous groups according to prescribed standards. Grading and storage
Storage of graded produce will have the following advantages;
(a) Easy to assess the value and provide pledge loan and loan against the
warehousing receipt.
(b) Quality disputes can be resolved
(c) Storage with special case is possible for different grades as per their requirements.
(d) Helps in planning the plant protection measures. Low-grade produce needs
different care.

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Distribution and grading
 Easy to plan the blending and supply to different consuming segments

 Consumers will be able to select their choice

 Farmers will be able to plan the production matching with the demand.

 E. commerce is possible in well defined quality of the produce

 Global distribution is largely based on the grade of the produce

Consumer loyalty may be maintained
PACKAGING
Packaging is the science, art and technology of enclosing or Meaning
Packaging protecting products for distribution, storage, sale, and use. also refers to
the process of design, evaluation, and production of packages.
Important functions of packaging are given below:
(i) Product Identification
Packaging serves as an identification of the product. A product is packed in
special sized, coloured and shaped container for keeping its difference from the
products of competitors.
(ii) Product Protection
The main function of packaging is to provide protection to the product from
dirt, insects, dampness and breakage.
(iii) Convenience
Packaging provides convenience in the carriage of the product from one
place to another, in stocking and in consuming
(iv) Product Promotion
Packaging simplifies the work of sales promotion. Packing material in the
house reminds the consumers constantly about the product. In this way, the
packaging performs the role of a passive salesman. Consequently, it increases the
sales.

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