Module1: Importance of Marketing:  Helpful in Communication between

Meaning and Definition of marketing: The American Marketing Manufacturer and Customers  Helpful in Profit Maximization 
Association offers the following formal definition: Marketing is the Helpful in Decision-Making  Provide Employment  Provides
activity, set of institutions, and processes for creating, communicating, Standard of Living  Building Relationships  Maintaining the
delivering, and exchanging offerings that have value for customers, Company’s Reputation  Tackling the Competition
clients, partners, and society at large. The Chartered Institute of
Marketing defines Marketing as: “Marketing is the management Market Segmentation? Introduction  Market segmentation is a
process for identifying, anticipating & satisfying customer marketing concept which divides the complete market set up into
requirements profitably.” Marketing Mix Marketing Mix is a set of smaller subsets comprising of consumers with a similar taste, demand
marketing tool or tactics, used to promote a product or services in the and preference.  A market segment is a small unit within a large
market and sell it. It is about positioning a product and deciding it to market comprising of like minded individuals.  One market segment
sell in the right place, at the right price and right time. The product will is totally distinct from the other segment.  A market segment
then be sold, according to marketing and promotional strategy. The comprises of individuals who think on the same lines and have similar
components of the marketing mix consist of 4Ps Product, Price, Place,
interests.  The individuals from the same segment respond in a
and Promotion. In the business sector, the marketing managers plan a
similar way to the fluctuations in the market. Basic and Types of
marketing strategy taking into consideration all the 4Ps. However,
Market Segmentation  Demographic Segmentation It refers to the
nowadays, the marketing mix increasingly includes several other Ps for
categorization of the target market based on specific variables like age,
vital development.
education, and gender. Income Marketers divide the consumers into
4 P of Marketing  Product in Marketing Mix A product is a
small segments as per their income. Individuals are classified into
commodity, produced or built to satisfy the need of an individual or a
segments according to their monthly earnings. The three categories
group. The product can be intangible or tangible as it can be in the
are: High income Group Mid Income Group Low Income Group o
form of services or goods..  Price in Marketing Mix Price is a very Occupation Office goers would have different needs as compared to
important component of the marketing mix definition. The price of the
school / college student.  Psychographic segmentation It deals with
product is basically the amount that a customer pays for to enjoy it.
characteristics that are related to mental and emotional attributes.
 Place in Marketing Mix Placement or distribution is a very Psychographic segmentation divides a group of customers based on
important part of the marketing mix strategy. We should position and their personality traits, values, interests, attitudes and lifestyles. The
distribute our product in a place that is easily accessible to potential basis of such segmentation is the lifestyle of the individuals. The
buyers/customers.  Promotion in Marketing Mix It is a marketing individual’s attitude, interest, value help the marketers to classify them
communication process that helps the company to publicize the into small groups  Behaviouralistic Segmentation Based on intensity
product and its features to the public. It is the most expensive and of product use, brand loyalty, user behaviours, price sensitivity,
essential components of the marketing mix, that helps to grab the technology adoption. The loyalties of the customers towards a
attention of the customers and  Four C’s of Marketing C’s particular brand help the marketers to classify them into smaller
classification. Commodity - (Replaces Products) Cost - (Replaces Price) groups, each group comprising of individuals loyal towards a particular
involves manufacturing cost, buying cost and selling cost Channel - The brand  Geographic Segmentation Geographic segmentation refers to
various channels which help the product reach the target market. the classification of market into various geographical areas. A marketer
Communication - (Replaces Promotion) can’t have similar strategies for individuals living at different places. As
the name implies, this type of market segmentation groups people
Nature of Marketing  Marketing is an Economic Function Marketing based on their physical location. You may want to go this route because
embraces all the business activities involved in getting goods and the needs of your customers differ from region to region.
services,  Mark is a System of Interacting Business Activities Why market segmentation is important?  Ermine the Market
Marketing process through which a business enterprise, institution, or Opportunities  Efficient Use of Resources  Better Service of
organisation interacts with the customers and stakeholders with the
Customers  More Competitive Prices  Assist is Distribution
objective to earn profit, satisfy customers, and manage relationship. 
Strategies  Creating a Product Design  Media Selection
Marketing is a Managerial Function According to managerial or
Segmentation in Marketing Conclusion Successful marketing usually
systems approach - "Marketing is the combination of activities
occurs when you speak precisely to your target audience.
designed to produce profit through ascertaining, creating, stimulating,
and satisfying the needs and/or wants of a selected segment of the
What is Positioning? The third and final part of the SEGMENT –
market.  Marketing is a Social Process Marketing is the delivery of a TARGET – POSITION (STP) process is ‘positioning.’ Positioning is
standard of living to society. Societal marketing performs three undoubtedly one of the simplest and most useful tools to marketers.
essential functions: - 1. Knowing and understanding the consumer's After segmenting a market and then targeting a consumer, you would
changing needs and wants; 2. Efficiently and effectively managing the proceed to position a product within that market. The term
supply and demand of products and services; and 3. Efficient provision ‘positioning’ refers to the consumer’s perception of a product or
of distribution and payment processing systems.  Marketing is service in relation to its competitors. You need to ask yourself, what is
Consumer-oriented: A business is a work to satisfy human needs..  the position of the product in the mind of the consumer? Positioning
Marketing Starts and Ends with the Consumer:  Marketing creates is a marketing concept followed by marketers to generate an image of
mutual relationships: their product/service in the mind of customers. Where does a product
Scope of Marketing  Product Planning  Advertising  Pricing sit in the hearts and minds of customers? These associations that
Policies  Distribution The selection of the proper distribution consumers hold with a product reflect their positioning. “Positioning is
channel is very necessary for the product to attract new consumers not what you do to a product. Positioning is what you do to the mind
towards it. 5  Selling It refers to the process of selling what is of the prospect. That is, you position the product in the mind of the
manufactured by the company as a product in the market. selling prospect.” (Ries & Trout, 2001) Examples of Positioning Positioning
refers to the supply of goods and services directly or indirectly to the examples of products can be understood on the basis of various
targeted consumers.  Packaging good image in the consumer’s parameters, characteristics and features of products & services. Some
mind..  After-Sales Services The term marketing includes after-sale key examples are:  Aspirational: Nike (Just Do It).  Emotional: Coca
Cola (Open Happiness).  Price-Based: Rolls Royce
Determining a Positioning Strategy There are five main strategies Types of Distribution Channels Direct Channel or Zero-Level Channel
upon which businesses can base their positioning.  Positioning (Manufacturer To Customer) Direct selling is one of the oldest forms of
based on product characteristics Positioning based on price Brands selling products. It doesn’t involve the inclusion of an intermediary and
can also position based on price if they find a gap in the market at a the manufacturer gets in direct contact with the customer at the point
certain price point.  Positioning based on quality or luxury  Indirect Channels (Selling Through Intermediaries) When a
Positioning based on product use or application  Positioning based manufacturer involves a middleman/intermediary to sell its product to
on competition Competitor based positioning focuses on using the the end customer, it is said to be using an indirect channel. Indirect
competition as a reference point for differentiation. Brands highlight a channels can be classified into three types:  One-level Channel
key difference their product/service offers in their marketing to make (Manufacturer to Retailer to Customer Two-Level Channel
it seem favourable (Manufacturer to Wholesaler to Retailer to Customer):.  Three-Level
Importance of Market Positioning  Positioning as the interface Channel (Manufacturer to Agent to Wholesaler to Retailer to
between brand identity and brand image Brand identity in the Customer):
marketplace depends on positioning.  Positioning as a source of Dual Distribution When a manufacturer uses more than one
competitive advantage Better marketing positioning will give the marketing channel simultaneously to reach the end user, he is said to
company a competitive advantage over other firms onthe market.  be using the dual distribution strategy. They may open their own
Market Differentiation with Positioning – Positioning breaks the showrooms to sell the product directly while at the same time use
clutter of noise There are plenty of products, and the number of firms internet marketplaces and other retailers to attract more customers.
delivering them is several. Positioning will help a firm to stand out in Smartphones, in general, highlight this approach, as manufacturers
the crowd of sellers.  Positioning Makes Buy easy for Customers sell their devices through big-box stores, telecom partners, e-
Consumers want easy solutions and options to make purchase commerce markets and their own online store fronts.
decisions. And positioning triggers an emotional response from your Distribution Channel intermediaries, acting as a bridge between
target audiences, giving them a quick way to trust youand increase the manufacturers and consumers in product distribution. Marketing
interest level of customers and increase sales numbers intermediaries are business establishments that support businesses in
promoting, selling, and delivering business to consumers  Retailers
Module 4 What Is a Distribution Channel? A distribution channel  Wholesalers  Distributors  Agents  Brokers  The Internet 
Sales Teams  Resellers  Catalog
(also called a marketing channel) is the path or route decided by the
company to deliver its good or service to the customers. The route can
Retailing What is Retail? Retail is the final channel of distribution
be as short as a direct interaction between the company and the
where small quantities of goods (or services) are sold directly to the
customer or can include several interconnected intermediaries like
consumer for their own use. Directly to the consumer: Retail stores are
wholesalers, distributors, retailers, etc.. Functions of Distribution
the last channels of distribution where the actual sales to the customer
Channels In order to understand the importance of distribution
happen. What is Retailing? Retailing is the distribution process of
channels, you need to understand that it doesn’t just bridge the gap
retailer getting the goods (either from the manufacturer, wholesaler,
between the producer of a product and its user. Facilitation: Channels
or agents) and selling them to the customers for the actual use. In
of distribution even provide pre-sale and post-purchase services like
simple terms, retailing is the transaction of small quantities of goods
financing, maintenance, information dissemination and channel
between a retailer and the customer where the good is not bought for
coordination.  Creating Efficiencies: This is done in two ways: bulk
the resale purpose. How Retail Works? Retail works on a simple
breaking and creating assortments. Wholesalers and retailers
revenue model of mark-up. The retailers buy the goods at a cost price,
purchase large quantities of goods from manufacturers but break the
add up the cost of labour, equipment, and distribution to it along with
bulk by selling few at a time to many other channels or customers. 
the desired profit margin, and sell it at a higher price. Retailing Types
Sharing Risks: Distribution channel helps to distribute Sharing Risks
Retailing can be divided into five types. Here are the types of retailing
the risk associated with the business over large number of people.
that exists today –  Store retailing department stores, speciality
They do all functions of stock holding and delivering it to ultimate
stores, supermarkets, convenience stores, catalogue outlets
customers. Stocks are accumulated in large amount by intermediaries
(McDonalds and Pizza Hut outlets), drug stores, superstores, discount
and stored safely in warehouses.  Marketing Distribution channels
stores (like Subhiksha, Margin Free), extreme value stores etc.  Non-
are also called marketing channels because they are among the core
store retailing:– direct selling (where the company uses direct
touch points where many marketing strategies are executed. They are
methods like door-to-door selling) and automated vending (installing
in direct contact with the end customers and help the manufacturers
automated vending machines which sell offer variety of products
in propagating the brand message and product benefits and other
without the need of a human retailer).  Corporate retailing: It
benefits to the customers.
involves retailing through corporate channels like chain stores,
franchises, and merchandising conglomerates. Corporate retailing
focuses on retailing goods of only the parent or partner brand. E.g.
Puma, Rolex, Adidas etc.  Internet retailing: Internet retailing or
online retailing. E.g. Ebay  Service retailing: Retailers not always sell
tangible goods, retail offerings also consists of services. When a
retailer deals with services, the process is called service retailing.
Restaurants, hotels, bars, etc. are examples of service retailing

Wholesaling Wholesaling is the buying/handling of products and

services and their subsequent resale to institutional users and in some
cases to final consumers. Wholesaling assumes many functions in a
distribution channel, particularly those in the sorting process.
Manufacturers and service providers sometimes act as their own
wholesalers. Industrial, commercial and government institutions are
wholesalers’ leading customers followed closely by retailers:
Importance of Wholesaling: Wholesaling is a significant aspect of Industrial Products  Capital goods Operating Supplies  Services
distribution because of its impact on the economy, its functions in the Levels of Product Core Benefit  Generic Product  Expected Product
distribution channel and its relationship with suppliers and customers.  Augmented Product (Augment- Increase)  Potential Product
In USA, wholesalers generate almost one-fifth of their total revenues
from foreign markets. Revenues are high since wholesaling involves What is Packaging? Packaging means the wrapping or bottling of
substantial purchases by institutional consumers. From cost products to make them safe from damages during transportation and
prospective, wholesalers have a great impact on prices. Operating storage. It keeps a product safe and marketable and helps in
costs for wholesalers include inventory charges, sales force salaries, identifying, describing, and promoting the product. “Packing is the
rent charges and costs of advertising etc. Wholesaler costs and profits preparation of product or commodity for proper storage and/or
depend on inventory turnover, money value of products the functions transportation. The following are the objectives of packing and
performed and efficiency etc. packaging:  To Provide Physical Protection  To Enable Marketing 
Functions of Wholesaling: Wholesalers carry out tasks ranging from To Convey Message  To Provide Convenience Marketing
distribution to risk taking. Following functions are performed by Management | 34  To Provide Portion Control  To Enable Self
wholesalers:  Enable manufacturers and service providers to Service Sales: o Enhance Brand Image: Importance of labelling in
distribute locally without making customer contacts.  Provide a marketing Labelling is the display of label in a product. A label contains
trained sales force.  Provide marketing and research supports for information about a product on its container, packaging, or the
manufacturers, service providers and retail or institutional consumers. product itself. It also has warnings in it. For e.g. in some products,
 Purchase large quantities, thus reducing total physical distribution Functions of Labelling The different functions of labelling are as
costs.  Provide warehousing and delivery facilities.  Provide credit follows: Defines the product and its contents: A label is informative
facilities for retail and institutional customers, whenever required.  about the product’s usage and cautionto be taken while using the
Provide adjustments for defective merchandise. product. Recognition of product: Labeling assists in the identification
Types of Wholesaling:  Manufacturer Wholesaling: In this case a of the product. Example, the brand name of a chocolate willhelp one
firm has its own sales offices and wholesale activities are done at these choose from the rest of the confectionery items available. Assorting of
offices. Sales office may be conveniently located in a market place. This products: It means classification or grading of products according to
type of arrangement is preferred when the manufacturer desires more different categories in the market. Assists promotion of products: It
control on marketing and/or customers who may be few in number gives the customer the reason to purchase the product. In compliance
and each is a key account.  Merchant Wholesaling: Merchant with the law: Labels should strictly abide by the law. Example, for
wholesalers buy, take title and take possession of products for further tobacco, the label should mention ‘Tobacco is injurious to health’.
resale. Merchant wholesalers may perform full range distribution Importance of labelling Labelling is significant as it fetches customers’
tasks. They provide credit, store and deliver products, after attention to purchase the product because of visual appeal. It
merchandising and promotion assistance, have a personal sales force, promotes the sale of the product as it can make or break the sale of a
offer research and training support and provide all necessary product. Labelling is an important factor in the sale of a product. It
information to customers and provide installation and after-sales helps in grading and provides information required by the law
services.  Agents and Brokers: They perform various wholesale tasks, Labelling is another very important factor in a product. It should show
but do not take title of products, unlike merchant wholesalers. Agents the correct information about the product.
and brokers enable a manufacturer to expand sales volume because of
their special expertise and experience in the field.

Module 2: Concept of product A product is the item offered for sale. A

product can be a service or an item. It can be physical orin virtual or
cyber form. Every product is made at a cost and each is sold at a price.
The price thatcan be charged depends on the market, the quality, the
marketing and the segment that is targeted. In marketing, a product is
anything that can be offered to a market that might satisfy a want or
need. In retail, products are called merchandise. In manufacturing,
products are purchased as raw materials and sold as finished goods
Importance of Product Concept Using Product concept, a company
can give identity to the product and can add functional value and
usability so that the intended customers can derive this benefit and
eventually buy the product in the market. The product concept has
three dimensions:  Managerial Dimension: It covers the core
specifications or physical attributes, related service, brand, package,
product life-cycle, and product planning and development. As a basis
to planning, product is second onlyto market and marketing research.
 Consumer Dimension: To the consumer a product is actually a group
of symbols or meanings. People buy things not only for what they can
do, but also for what they mean. Each symbol communicates a certain
information. A product conveys a message indicating a bundle of
expectations to a buyer  Social Dimension: To the society
beneficial/useful products and desirable products are always welcome
as they fulfill the expectations of social welfare and social interests.
Salutary products yield long-run advantages but may not have
immediate appeal.
Consumer Product  Convenience Goods  Shopping Products 
Speciality Products Unsought Products (Undesired/ not required)