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Ch-7

Marketing
▪ Marketing is a broad term which include the process of discovering the needs and
wants of potential buyers and customers, and then providing goods and services that
meet or exceed their expectations.
▪ Operations, finance, and all areas of functional management must be coordinated
with marketing decisions.
▪ Marketing is not manipulating consumers to get them to buy products they do not
want. It is not just selling and advertising; it is a systematic approach to satisfying
consumers.
▪ Marketing focuses on many activities that foster exchanges (planning, pricing,
promoting, and distributing products)
▪ The essence of marketing is to develop satisfying exchanges from which both
customers and marketers benefit.
▪ A business cannot achieve its objectives unless it provides something that customers
value, just creating an innovative product that meets many users’ needs isn’t
sufficient in today’s volatile global marketplace.

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Exchange
▪ The act of giving up one thing in return for something else.
▪ Businesses exchange their goods, services, or ideas for money or credit supplied by
customers in a voluntary exchange relationship.
▪ An exchange takes place when two parties give something of value to each other
to satisfy their respective needs or wants.
▪ In some exchanges, nonmonetary things are exchanged, such as when a person
who volunteers for the company’s CSR (Corporate Social Responsibility) activity
receives a souvenir or certificate in exchange for time spent.
▪ Companies build up their entire strategies around what would make this exchange
possible and worthwhile for both the business and its customers.

Focusing on the needs and wants of the

customers so the organization can distinguish
its product(s) from competitors’ offerings.

Integrating all of the organization’s activities,

Concept of
including production and promotion, to satisfy
marketing these wants and needs.

Careem and Uber found that its

customers are unable to get
Achieving long-term goals for the organization
products or items delivered.
by satisfying customer wants and needs legally
Therefore, they started a
and responsibly.
delivery and logistics service
using the existing fleet of cars
and motor bikes.

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▪ Marketing concept means the product is created after market research

is used to identify the needs and wants of the customers.
▪ Products are not just created by production departments and then
marketing departments are expected to identify ways to sell them
based on the research.
▪ An organization that truly utilizes the marketing concept uses the data
about potential customers from the very inception of the product to
create the best good, service, or idea possible, as well as other
marketing strategies to support it

Marketing focuses on activities to generate exchanges.

Buying. Everyone who shops for products (consumers, stores, businesses,
governments) decides whether and what to buy. A marketer must
understand buyers’ needs and desires to determine what products to make
available.
Selling. The exchange process is expedited through selling. Marketers
usually view selling as a persuasive (convincing) activity that is accomplished
through promotion (advertising, personal selling, sales promotion, publicity,
and packaging).
Branding. Branding is an activity that the marketing department would
undertake in order to increase sales or promote the products. Branding also
helps in differentiating the product from competing alternatives (e.g., a
logo, or a registered trademark, or a unique product name may be ways of
branding).

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Transporting. Transporting is the process of moving products from the

seller to the buyer. Marketers focus on transportation costs and services.
Storing. Storing is part of the physical distribution of products and includes
warehousing goods. Warehouses hold some products for lengthy periods in
order to create time utility and optimize availability of some products. This
especially pertains to a seasonal good such as orange juice. Fresh oranges
are only available for a few months annually, but consumers demand juice
throughout the entire year. Sellers must arrange for cold storage of orange
juice concentrate so that they can maintain a steady supply all of the time.
Grading. Grading refers to standardizing products by dividing them into
subgroups and displaying and labeling them so that consumers clearly
understand their nature and quality. Many products, such as meat, steel,
and fruit, are graded according to a set of standards that often are
established by the government.

Financing. For many products, especially large items such as automobiles,

refrigerators, and new homes, the marketer arranges credit to expedite the
purchase.
Marketing Research. Through research, marketers ascertain the need
for new goods and services. By gathering information regularly, marketers
can detect new trends and changes in consumer tastes.
Risk Taking. Risk is the chance of loss associated with marketing
decisions. Developing a new product creates a chance of loss if consumers
do not accept the product or its associated promotion in the intended way.
This would present the risk of losing all costs associated with developing
the product and related investments.

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Product is everything, both favorable and unfavorable, that a

person receives in an exchange.

What is Product

Favorable attributes Unfavorable attributes

▪ Purchase or exchange involves trade-offs as consumers try to

maximize their benefits and satisfaction and minimize
unfavorable attributes.
▪ If product do not meet consumer needs and expectations,
sales will be difficult, and product life spans will be
brief(short)

Characteristics of a Product
A product needs to be relevant: the users must have an immediate use for
it. A product needs to be functionally able to do what it is supposed to,
and do it with a good quality.
A product needs to be communicated: Users and potential users must
know why they need to use it, what benefits they can derive from it, and
what it does difference it does to their lives. Advertising and 'brand
building' best do this.
A product needs a name: a name that people remember and relate to. A
product with a name becomes a brand. It helps it stand out from the
clutter of products and names.
A product should be adaptable: with trends, time and change in
segments, the product should lend itself to adaptation to make it more
relevant and maintain its revenue stream.

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Convenience products are widely available to

consumers, are purchased frequently, and are
Products that are bought by the easily accessible.
end user are called consumer (Milk, newspapers, soda, and chewing gum)
products.
Shopping products are not purchased
frequently. Before purchasing shopping goods,
Consumer Products consumers typically shop around and compare
the quality and prices of competing products.
(Furniture and home appliances)

Specialty products are products that specific

Electric razors, sandwiches, cars, consumers consider to be special and therefore
stereos, magazines, mobiles, make a special effort to purchase. When
furniture and home appliances. evaluating specialty products, consumers base
their purchasing decision primarily on personal
preference, not on comparative pricing.
(iPhone , Rolex ,apple )

Products which are used as Industrial products have limited buyers, since
input for manufacturing other they are not consumer goods.
products. Unlike consumer Industrial goods are not bought for ultimate
goods, these are not for direct consumption by buyers.
consumption.
No product may be exclusively classified as
consumer goods or industrial goods. For
example- Flour is a consumer product when
Industrial Products bought by a housewife for cooking purpose, but
if it is bought by an hotelier is industrial
product

Examples of industrial products The rationale of classifying goods is the

are raw materials, machines, divergence in buying motives, approaches, and
tools, etc. attitude in respect of these two sets of
products.
An industrial product buyer is more cost,
quality and standard conscious.

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Industrial Goods

Raw Materials Manufactured Parts

▪ Raw means unprocessed and ▪ These parts are not processed

untreated material. further, rather they are
▪ Raw material is worked upon and assembled into the final product
processed for creating end as they were.
product. ▪ Components are used without
▪ materials undergo a change when any change in the end product.
used in a product.

Industrial Goods

Manufactured
Raw Materials
Components

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Industrial Goods

Capital Items Supplies

▪ long-term assets used in the ▪ Indirect items that contribute to

production process. the production of end product.
▪ Plant, machinery, and equipment, ▪ These products are also called
welding robots in an automobile consumables.
factory are capital items that last ▪ Supplies are hygiene
for years requirements whose presence
▪ Capital items can belong to a does not directly matter but their
factory or an office shortage can have a significant
effect

Supplies

Factory Supplies Office Supplies

These supplies include maintenance These supplies include such items as

materials, janitorial supplies, and paper, toner cartridges, and writing
items that are considered incidental instruments. They are typically of
to the production process. They are such low cost that they are charged
usually charged to expense as to expense as incurred.
incurred

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Products

Digital Products Services

▪ A digital product is created in a digital ▪ A service is an intangible part of a
format as a file which might be for sale product.
or not. ▪ It is an action or effort to fulfil a demand
▪ A person can download and stream it by or satisfy customer needs.
using a computer or other electronic ▪ It is unable to store or own it and
devices. consumed at a point of sale.
▪ Any digital product might include audio ▪ For instance, if you visit a doctor, he
video file, ebook, desktop or mobile offers his services to cure a disease.
applications, downloadable templates Other examples of services are banking,
graphics, fonts and PSD files. postal or educational service and many
▪ Consumers are called digital buyers more.

Difference between industrial and consumer products

Industrial products Consumer products
Meaning These products are used for These products are used
further production of other for final consumption by
goods. the direct consumers.
Number of The buyers of industrial goods The buyers of consumer
buyer are limited. goods are many in number
Buying Decisions of buyers are Decisions of buyers are
decision influenced by technical influenced by advertising
specification and goodwill. and various sales
promotional schemes.
Nature of These products have derived These products have direct
demand demand. demand.

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A plan of action for developing, pricing, distributing, and

promoting products that meet the needs of specific customers

Developing a Marketing
Strategy

Selecting a Target Appropriate

Market marketing mix
A target market is a more specific Marketing strategy is determining the
group of consumers on whose needs five different components of
and wants a company focuses its marketing. These components are
marketing efforts called “the Five Ps” of marketing.
They are the methods, tools, and
processes used by marketers to
develop and market products.

Selecting a Target Market

▪ A market is a group of people who have a need, purchasing power, and
the desire and authority to spend money on goods, services, and ideas.
▪ A target market is a more specific group of consumers on whose needs
and wants a company focuses its marketing efforts.
▪ Identifying a target market helps a company focus its marketing efforts
on those who are most likely to buy its products or services.
▪ Concentrating on potential customers lets the firm use its resources
efficiently.
▪ Target markets can be broadly classified as
✓ Consumer markets
✓ Industrial markets.

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Market approach

Appropriate
Total-market approach
marketing mix
▪ Approach, in which marketer try ▪ Market segmentation is the
to appeal to everyone and process of separating, identifying,
assume that all buyers have and evaluating the layers of a
similar needs and wants. market to identify a target market.
▪ Sellers of salt, sugar, and many ▪ For instance, a target market might
agricultural products use a total- be segmented into two groups:
market approach because families with children, and families
everyone is a potential consumer without children.
of these products

Demographic—age, sex, race, ethnicity, income,

education, occupation, family size, religion, social
class. These characteristics are often closely related to
customers’ product needs and purchasing behavior,
and they can be readily measured.
Geographic—climate, terrain, natural resources,
Market population density, subcultural values. These
segmentation influence consumers’ needs and product usage.
Climate, for example, influences consumers’
purchases of clothing, automobiles, heating and air
Market segmentation is the
conditioning equipment, and leisure activity
process of separating,
equipment.
identifying, and evaluating the
layers of a market to identify a Social factors—personality characteristics, motives,
target market. lifestyles, faith and belief systems. Soft-drink
marketers provide their products in several types of
packaging, including two liter bottles and cases of
cans, to satisfy different lifestyles and motives.

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Product
▪ A product is something offered in exchange and for which marketing
actions are taken and marketing decisions made.
▪ Products can be goods, services or ideas.
▪ All products have both tangible and intangible aspects.
▪ Every product is made at a cost and each is sold at a price.
▪ The price that can be charged depends on the market, the quality, the
marketing and the segment that is targeted.
▪ Each product has a useful life after which it needs replacement, and a
life cycle after which it has to be re-invented.
▪ Firms must continually improve existing products and develop new
products to satisfy customers over time.
▪ In this way, firms generate high sales growth, which normally increases
their value.

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Price
▪ Price is a value that a consumer is willing to give up in exchange for a
product.
▪ Price may be monetary or nonmonetary (such as waiting in long lines for
a restaurant or giving blood at the local blood bank).
▪ Price may be in different forms such as rent, fees, charges, and others.
▪ Marketers view price as much more than a way of assessing value,
however. It is a key element of the marketing mix because it relates
directly to the generation of revenue and profits.
▪ Prices can also be changed quickly to stimulate demand or respond to
competitors’ actions.
▪ The sudden increase in the cost of commodities such as oil can create
price increases or a drop in consumer demand for a product.

Place
▪ Place refers to the process of distribution or making products available
to customers in the quantities desired.
▪ For example, consumers can rent DVDs and videogames from a
physical store, a vending machine, or an online service.
▪ Intermediaries, usually wholesalers and retailers, perform many of the
activities required to move products efficiently from producers to
consumers or industrial buyers.
▪ These activities involve transporting, warehousing, materials handling,
and inventory control, as well as packaging and communication.

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Promotion
▪ Promotion includes methods for informing and influencing customers
to buy the product.
▪ Promotion includes several different components – traditional
advertising, sales promotion, public relations, personal selling, social
media, and e-commerce.
▪ Promotion is often mistaken for marketing because it is the most
visible part of marketing; however, marketing encompasses much more
than just promotion.
▪ The aim of promotion is to communicate directly or indirectly with
individuals, groups, and organizations to facilitate sales of a product.

People
▪ This includes the process of utilizing organization’s employees to
support the marketing strategies of the company.
▪ All products have both tangible and intangible aspects.
▪ People (as a marketing strategy) are crucial to the development of the
product’s intangible aspects.

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The Product Life Cycle

▪ A product life cycle is the length of time from a product first being introduced to
consumers until it is removed from the market. A product’s life cycle is usually
broken down into four stages; introduction, growth, maturity, and decline.
▪ Most products experience a product life cycle, or a typical set of phases over their
lifetime.
▪ The marketing decisions made about a particular product may be influenced by the
prevailing phase of the cycle.
▪ Product managers create marketing mixes for their products as they move through
the life cycle.
▪ The product life cycle is a pattern of sales and profits over time for a product (e.g.,
Dalda Cooking oil) or a product category (e.g., Edible oils and ghee).
▪ As the product moves through the stages of the life cycle, the firm must keep
revising the marketing mix to stay competitive and meet the needs of target
customers.

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Introduction
The introduction phase is the initial period in which consumers are
informed about a new product.
The promotion of the product is intended to introduce the product and
make consumers aware of it. In some cases, the product is first tested in
particular areas to determine consumer reaction.
For example, the concept of direct satellite television was tested in various
locations. The initial cost of producing and advertising the product may
exceed the revenue received during this phase.
The price of the product may initially be set high if no other competing
products are in the market yet. This strategy is referred to as price
skimming.

Growth
▪ The growth phase is the period in which sales of the product increase
rapidly. The marketing of the product is typically intended to
reinforce its features.
▪ Cellular telephones and direct satellite TVs are in the growth phase.
Other firms that are aware of the product’s success may attempt to
create a similar or superior product.
▪ The price of the product may be lowered once competing products
enter the market.

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Maturity
▪ The maturity phase is the period in which additional competing products have
entered the market, and sales of the product level off because of the increased
competition.
▪ At this point, most marketing strategies are used to ensure that customers are still
aware that the product exists.
▪ Some marketing strategies may offer special discounts to maintain market share.
▪ The firm may also revise the design of the existing product (product differentiation)
to maintain market share.
▪ Standard cable television service is an example of a product at the maturity phase.

Decline
▪ The decline phase is the period in which sales of the product decline,
either because of reduced consumer demand for that type of product
or because competitors are gaining market share.
▪ If firms do not prepare for a decline phase on some products, they may
experience an abrupt decline in business.
▪ Some firms begin to prepare two or more years before the anticipated
decline phase by planning revisions in their existing products or
services.

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Branding

▪ Branding is the process of giving a meaning to specific organization,

company, products or services by creating and shaping a brand in
consumers' minds.
▪ Branding is a method of identifying products and differentiating them
from competing products. Brands are typically represented by a name
and a symbol.
▪ The objective is to attract and retain loyal customers and other
stakeholders by delivering a product that is always aligned with what the
brand promises.

Branding

Name Symbols

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▪ The word “brand” is derived from the Old Norse “brand” meaning “to burn,” which
refers to the practice of producers burning their mark (or brand) onto their products.
▪ Italians are considered among the first to use brands in the form of watermarks on
paper in the 1200s. However, in mass-marketing, this concept originated in the
nineteenth century with the introduction of packaged goods.
▪ During the Industrial Revolution, the production of many household items, such as
soap, was moved from local communities to centralized factories to be mass-
produced and sold to the wider markets. When shipping their items, factories
branded their logo or insignia (sign) on the barrels (containers) used. Eventually
these “brands” became trademarks, or recognized symbols of a company or product
that are established by use.
▪ These new brand marks enabled packaged-goods manufacturers to communicate
that their products are distinctive and should be trusted as much as (or more than)
local competitors. Campbell Soup, Coca-Cola, Juicy Fruit gum, and Quaker Oats were
among the first products to be “branded.”

Packaged Goods
The terms packaged goods, consumer packaged goods (CPGs) or fast-moving
consumer goods (FMCGs) all refer to goods that are:
▪ usually sold in smaller packages,
▪ carry a low unit price,
▪ are distributed through food and drug retailers,
▪ are heavily promoted (usually in mass media), and
▪ are bought and consumed frequently.

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Importance of
Branding

Gets Increases Generates New Improves

Recognition Business Value Customers Employee Pride

Creates Trust in Supports

Marketplace Advertising

Importance of Branding
▪ Branding is absolutely critical to a business because of the overall impact it makes on a
company.
▪ Effective branding encompasses everything that shapes the perception of a company or
product in the minds of customers. Names, logos, brand marks, trade characters and
trademarks are commonly associated with brand, but these are just part of the picture.
▪ Branding also addresses virtually every aspect of a customer’s experience with a company
or product: visual design, quality, distinctiveness, purchasing experience, customer
service, and so forth.
▪ Branding requires a deep knowledge of customers and how they experience the company
or product.
▪ Brand-building requires long-term attention and investment in communicating about and
delivering the unique value embodied in a company’s “brand,” but this effort reaps long-
term profitability.
▪ In consumer and business-to-business markets, branding can influence whether
consumers will buy the product and how much they are willing to pay. Branding can also
help in new product introduction as a new brand extension or product line builds on
consumers’ positive perceptions of the established brand.

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Branding Gets Recognition Branding Increases Business Value

Through branding company gets Branding is important when trying to
recognition and becomes known to the generate future business, and a strongly
consumers. established brand can increase a
The logo is the most important element business’ value by giving the company
of branding, especially where this factor more leverage in the industry.
is concerned, as it is essentially the face This makes it a more appealing
of the company. investment opportunity because of its
This is why a professional logo design firmly established place in the
should be powerful and easily marketplace.
memorable, making an impression on a
person at first glance. Printed
promotional products are a way of
getting this across.

Branding Generates New Customers Improves Employee Pride and

A good brand will have no trouble Satisfaction
drumming up referral business. When an employee works for a strongly
Strong branding generally means there is a branded company and truly stands behind
positive impression of the company the brand, they will be more satisfied with
amongst consumers, and they are likely to their job and have a higher degree of pride
do business with a company because of the in the work that they do.
familiarity and assumed dependability of Working for a brand that is reputable and
using a name they can trust. help in high regard amongst the public
Once a brand has been well-established, makes working for that company more
word of mouth will be the company’s best enjoyable and fulfilling. Having a branded
and most effective advertising technique office, which can often help employees feel
more satisfied and have a sense of
belonging to the company, can be achieved
through using promotional merchandise
for staff desktop.

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Creates Trust Within the Branding Supports Advertising

Marketplace Advertising is another component to
A professional appearance and well- branding, and advertising strategies will
strategised branding will help the directly reflect the brand and its desired
company build trust with consumers, portrayal.
potential clients and customers. Advertising techniques such as the use
People are more likely to do business of promotional products from trusted
with a company that has a polished and companies such as Outstanding Branding
professional portrayal. Being properly make it easy to create a cohesive and
branded gives the impression of being appealing advertising strategy that plays
industry experts and makes the public well into the branding goals.
feel as though they can trust the
company, the products and services it
offers and the way it handles its
business.

Key Elements of Branding

Brand Positioning Branding positioning is all

about placing an image of the
product in the minds of
customers

Brand Attributes The brand attributes are

bundle of features and
characteristics which
highlights personality aspects
of brand. The brand attributes
are developed through
actions, images and
advertising

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Key Elements of Branding

Brand Elements The brand elements are ▪ The symbol of Honda (H).
components, which creates Slogan of Dawlance
the identity of brands. “Dawlance Reliable Hai”,
▪ Name. ▪ Character of KFC “KFC + old
▪ Slogan. man”,
▪ Colour. ▪ The yellow colour of
▪ Characters, McDonald’s (M).
▪ Symbol. are the examples of brand
▪ Sound. elements, which creates the
▪ Jingle. brand.
▪ Shape.
▪ Graphic.
▪ Tastes and movements

Key Elements of Branding

Brand Ownership A brand owner may seek to ▪ Registering the trademark.

protect proprietary rights in ▪ Patents
relation to a brand. ▪ Licence
Brand Personality It is the set of human trait and ▪ Registering the trademark.
characteristics assigned to the ▪ Patents
brand. ▪ Licence
The personality of brand
includes all the characteristics
of the brand that represent
the business culture, its
purpose, overall mission and
vision and goals.

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Brand Personality

Sincerity Excitement Competence Sophistication Ruggedness

Down to earth Daring Reliable Upper Class Outdoorsy

▪ Family oriented ▪ Trending ▪ Secure ▪ Glamorous
Honest ▪ Exciting Intelligent Charming Tough
▪ Real Imaginative ▪ Technical ▪ Smooth
Wholesome ▪ Unique Successful
▪ Original Up-to-date
Cheerful
▪ Sentimental

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Key Elements of Branding

Unique Selling The USP’s are the key

Propositions characteristics and factors,
which emphasizes that the
company’s product is better
than other similar products
available in the market.

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Key Elements of Branding

Brand Image Brand image is the perception of the brand in the mind of the
customer.
It is an aggregate of beliefs, ideas, and impressions that a customer
holds regarding the brand.

Factors affecting
perception

Basis Marketing Selling

Focus Marketing focuses on the Selling focuses on the need of the seller
need of the customers

Objective Main objective of marketing Main objective of selling is to maximise

is earning optimum profit the profit and sale
with customer satisfaction

Scope Scope of marketing is very Scope of selling is limited to exchange of

wide. It includes activities like goods or services for some
creating of demand, considerations
designing of product
according to demand using
promotional technique after
sales survey to find out
customer satisfaction

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Basis Marketing Selling

Start & end Marketing starts much before Selling starts after production and ends
production and continues with the sale of the product.
after sale.
Efforts Marketers uses integrated Seller uses promotional techniques to
market strategies to capture increase sales.
big share in the market.
Supremacy Consumer is considered king Producer is considered king pin of market
pin of market
Approach It involves integrated It involves fragmented approach to sell
approach to identify & satisfy that is produced by hook or crook
customers approach
Demand Demand is created by It assume demand for the product
producing product according
to the needs of customers.

Basis Marketing Selling

Horizon Longer term Short term

Strategy Pull Push

Priority Marketing shows how to Selling is the ultimate result of marketing.
reach to the Customers and
build long lasting relationship

Approach It involves integrated It involves fragmented approach to sell

approach to identify & satisfy that is produced by hook or crook
customers approach

Demand Demand is created by It assume demand for the product

producing product according
to the needs of customers.

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