Marketing Management

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Meaning : Meaning :-

The term market is derived from the Latin Word Marcatus. Market is a place where the goods are bought and sold. In Place point of view a market may be considered as a convenient meeting place where buyer and seller gather together for exchange of goods and services. Marketing :-

Marketing means the activities are concerned with effecting changes in the Ownership and Possession of goods and services.

Definition :-

According to American Marketing Association , “Marketing is concerned with the  people & activities involved in the flow of goods goods and services from production to consumer”.

American Marketing Association defines marketing as:

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. (Approved October 2007)

The Chartered Institute of Marketing (CIM) says:

The management process responsible for identifying , anticipating and satisfying customer  requirements profitability.

Philip Kotler defines marketing as:

Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Palmer’s marketing definition is as:

Marketing is essentially about marshalling the resources of an organization so that they meet the changing needs of the customer on whom the organization depends.

Dennis Adcock defines marketing as The right product, in the right place, at the right time, at the right price.

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Aims / Objectives Objectives of marketing marketing

The group of goals set by a business when promoting its products or services to  potential consumers that should be achieved within a given time frame. A company's marketing objectives for a particular product might include increasing product awareness among amo ng target targeted ed consum consumers, ers, provid providing ing inform informatio ation n about about produc productt feature features, s, and reduci reducing ng consumer resistance to buying the product. 1.To satisfy the customers: The marketing manager must scientifically study the demands of  customers custom ers before offering offering the many goods goods or services. Selling Selling the goods or services is not that important, as the satisfaction of the customer’s needs. Modern marketing thus always  begins and ends with the needs of customers. 2.To increase profits for the growth of the business: The marketing department is the only department which generates revenue for the business. Sufficient profits must be earned as a result of sale of want-satisfying products. If the firm is not earning profits, it will not be able to survive in the market. Moreover, profits are also needed for the growth and diversification of the firm. 3.To generate customer base for the business: The Marketing manager must attract more and more customers to buy the firm’s products and services. This will also result in to increased sales. 4.To determine marketing-mix that will satisfy the needs of the customers . Product,  pricing, promotion and physical distribution should be so planned as to mee the requirements of different kinds of customers. 5.To increase the quality of life of people: Marketing Management attempts to increase the qualit qua lity y of life of the people people by provid providing ing them better better produc products ts at reasona reasonable ble prices. prices. It facilitates production and distribution of a wide variety of goods and services for use by the customer. 6.To create good image: To build up the public image of firm over a period is another  objective of marketing. The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers. The marketing manager  attempts to increase the goodwill of its business by initiating image building activities. If a firm enjoys goodwill in a market, it will increase the morale of its sales-force. They will show greater loyalty and will develop a sense of service to the customers.This will further enhance the reputation of the business

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Importance of Marketing :a) To the society :-

i)

Mark Market etin ing g is is a con conne nect ctiv ivee link link betw betwee een n the the pro produ duce cerr and and cus custo tome mer. r.

ii) ii)

Marke Marketi ting ng hel helps ps to to incr increas easee the the stan standa dard rd of of livi living ng of of the the peop people le bec becau ause se of of mass mass  production, the cost per Unit bill come down.

iii) iii) iv) iv)

Mark Market etin ing g hel helps ps to inc incre reas asee the the nati nation onal al inc incom ome. e. Marke Marketi ting ng pr proc ocess ess incr increas eases es empl employ oyme ment nt op oppo portu rtuni niti ties. es.

v)

Mark Market etin ing g rem remov oves es the the imb imbal alan ance ce of supp supply ly & de dema mand nd..

vi) vi)

Mark Market etin ing g hel helps ps to main mainta tain in ec econ onom omic ic st stab abil ilit ity. y.

b) To the Firms :-

i)

Mark arketi eting Gener eraates re revenu enue to the firm.

ii) ii)

Marke Marketi ting ng sect sectio ion n of a fi firm rm is is the the sour source ce of of info inform rmat atio ion n to th thee top top mana manage geme ment nt for  for  taking the decisions.

iii) iii) iv) iv)

Marke Marketi ting ng & In Inno nova vati tion onss are are the the two two basi basicc func functi tion onss of all all bus busin iness ess.. Mark Market etin ing g fa faci cili lita tate tess the the dev develo elopment ment of busin usines esss an and d cr crea eate tess emp emplo loy ymen ment opportunities.

Classification of Market :-

Market can be classified into the following ways.

a) On the basis of Geographical Geographical area :i. Family Market :-

When exchanges are confined with in a family (or) close members of the family such a market can be called as family market. For (E.g) Soap, Paste etc…

ii. Local Market :-

When people, buyers & sellers belong to a local market, it is called Local Market the demands are limited.

iii. National Market :-

For a certain type of commodities a country may be regarded as a market through the fast development , it is called National Market. For(e.g.) T. Vs, Amul etc….

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iv. International Market :-

World (or) international comes up when buyers & sellers of goods evolve on World level. For(e.g.) L.G, Sony, PEPSI etc…

b) On the basis of Goods :i. Bullion Market :-

This type of market deals with the purchase (or) sale of gold (or) silver etc… For(e.g.) Bullion Market of Mumbai, Kanpur etc…

ii. Capital Market :-

 New (or) Growing markets need finance at every stage through capital. Market can be classified into the following.

I. Money Market :It is a type of market where money is borrowed borrowed and lent. This type of market market guides guides

the people to invest the surplus fund in industrial concern and help them to take loan. (E.g) London is the World’s biggest money market.

II. Foreign Exchange Market :-

It is an international market, this type of market helps exports & imports in converting their currencies into foreign & Vice Versa III. Stock Exchange Market :-

This is th This thee mark market et where where sh shar ares es & de debe bent ntur ures es of th thee co comp mpan anie iess are de deal altt wi with th  purchase (or) sale. It is also known as security market. (E.g) Stock Exchange of Mumbai, Calcutta etc…

c) On the basis of Economics :-

A market is said to be a perfect market if the following conditions are satisfied.

Perfect Market :-

i)

Large rge nu number of of bu buyers & seller erss are are there.

ii ii)) ii iii) i)

Pric Pricee sho shoul uld d be be inf infor orm med th thro rou ugh the the mar mark ket. et. Buye Buyers rs & sel selle lers rs hav havee a pe perfe rfect ct kn know owle ledg dgee abo about ut th thee pro produ duct ct.. 4

 

iv)

Goods Goods can be easily easily mov moved ed from from one one pla place ce to to anot another her place place with without out restric restrictio tions. ns.

Imperfect Market :-

i)

A mar marke kett is is tto o be be imp imper erfe fect ct,, whe when np pri rice cess are are not not Uni nifo form rm..

ii)

There is a lack of communica cattions.

ii iii) i)

Cert Certai ain n res restr tric icti tion onss on on mov movem emen ents ts of good goods. s.

d) On the basis of Regulation :I. Regulated Market :-

Here the market which is organized, controlled & regulated by statutory measures. For (e.g) Mumbai stock exchange.

II. Unregulated Market :-

This is a free market there by no control with regard to the price, quantity, quality, commission etc… e) On the basis of Time :I. Very Short Short period market market :-

Markets which deal in perishable goods that market is called as very short period market .(E.g) Fruits, Fish, Vegetables…

II. Short period Market :-

Certain type of goods is adjusted to meet the demand, if the demand is greater than supply (E.g) Cereals etc… III. Long period Market :-

It deals with durable goods. (E.g) Furniture

f) On the basis basis of volume of of business :I. Wholesale Market :-

In this market, goods are supplied in bulk manner. II. Retail Market :In this market, goods are sold in small quantities and directly to users.

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CLASSIFICATION CLASSIFICATIO N OF GOODS :-

Goods can be classified into the following :i) Consumer’s goods :-

This type of goods are purchased by ultimate users (or) consumers for personal use (E.g) Soap, Paste, Biscuits etc…It can be classified into the following :-

a) Convenience goods :-

Customers purchase goods like Sugar, toothpaste, Newspaper etc…. with minimum effort and at low cost. The demand (or) purchase cannot be postponed.

b) Shopping goods :-

Before making final selection, the customers make an enquiry as to the comparison of  rate, style, durability from different shops. Its cost is more than the Convenience goods. (E.g) Jewellary, Readymade garments. ii) Industrial goods :This type of goods are purchased purchased by customers for business business purpose (ie) Producing Producing

another product (E.g) Raw materials; Fabricated materials, Spare parts etc. iii) Speciality goods :-

This type of goods goods are having having a high value and the customer customer may wait for Purchase. (E.g) T.V, Car etc…

Basic Functions of Marketing The market marketing ing process process perfor performs ms certai certain n activi activities ties as the goods goods or service servicess move move from from  producer to consumer. Every firm does not perform all these thes e activities or jobs. However, any company that wants to operate its marketing system successfully must carry them out. The following marketing tasks have been recognized for a long time. 1. Selling It is core of marketing. It is concerned concerned with the persuasion persuasion of prospective prospective buyers to actually actually complete the purchase of an article. Setting pays an important part in realizing the ultimate aim of earning profit. Selling is enhanced by means of personal selling, advertising, publicity and sales promotion. 2. Buying

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It involves what to buy, what quality, how much, from whom, when and at, what price. People in business buy to increase sales or to decrease costs. Purchasing agents are much influenced by quality, service and price. The products that the retailers buy for resale are determined by the need and preferences of their customers. 3. Transportation Transport is the physical means whereby goods are moved from the places where they are  produced to those they are needed for consumption. Transportation is essential from the  procurement of raw materials to the delivery of finished products to the customers places. Marketing relies mainly on railroads, tracks, waterways, pipelines and air transport. The type of transportation is chosen on several consideration such as suitability, speed and cost. 4. Storage It involves the holding of goods in proper condition from the time they are produced until they are needed by consumers (in case of finished products) or by the production department (in case of raw materials and stores). Storing protects the goods from deterioration and helps in carrying over surplus for feature consumption or use in production. Goods may be stored in various warehouses situated at different places. Storing assumes greater importance when  production is seasonal or consumption may be seasonal. Retail firms are called “stores”. 5. Standardization and Grading The other activities that facilitate marketing are standardization and grading. Standardization means establishment of certain standards or specifications for products based on intrinsic  physical qualities of any commodity. This may involved quantity (weight or size) or it may involve quality (colour, shape, appearance, material, taste, sweetness etc). Government may also set some standards e.g., in case of agricultural products. A standard conveys a uniformity of the products. “Grading means classification of standardized products into certain well-defined classes or  groups.” It involves the division of products into clauses made up of unit processing similar  characteristics of size and quality. Grading is very important for “raw material” (such as fruits and cerials), mining products” (such as coal, iron-ore and mangenese) and “forest  products” (such as timber). Branded consumer products may bear grade levels, – A B C. 6. Financing It involves the use of capital to meet financial requirements of the agencies dealing with various activities of marketing. The services of providing the credit and money needed to meet the cost of getting merchandise into the hands of the final user is commonly referred to as finance, function in marketing. In marketing, finances are needed for working capital and fixed capital, which may be secured from three sources – onward capital, bank loans and advances, and trade credit (provided by the manufactures to wholesaler and by the wholesaler  to the retailers). 7. Risk Taking

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Risk means lose due to some unforeseen unforeseen circumstances circumstances in future. Risk-bearing Risk-bearing in marketing marketing refers to the financial risk inherent in the ownership of goods held for an anticipated demand, including the possible losses due to a fall in price and the losses from spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur with the passage of time. From  production of goods to its selling stage, many risks are involved due to changes in marker  conditions, natural causes and human factors. Changes in fashions or interventions also cause risks. Legislative measures of the government may also cause risks. 8. Market Information The only sound foundation, on which marketing decisions may be based, is correct and timely market information. Right facts and information reduce the aforesaid risks and thereby result in cost reduction. Business firms collect, analyze and interpret facts and information from internal sources, such as records, sales people and findings of the market research department. They also seek facts and information from external sources, such as business  publications, government reports and commercial research firms. Retailers need to know about abo ut sources sources of supply supply and also about about custom customers ers buying buying motive motivess and buying buying habits habits.. Manufacturers need to know about retailers and about advertising media. Firms in both these groups need information about competitors activities and about their markets. Even ultimate consumers need market information about availability of products, their quality standards, their prices, and also about the after-sale service facility Common sources for consumers are sales people, media advertisements, colleagues etc. S.No 1

Marketing Focuses on Customer’s needs.

Selling Focuses on seller’s needs.

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Customer enjoys supreme importance.

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Converting customer’s needs into product.

Product enjoys supreme importance. Converting product into cash.

4

Profits through customer satisfaction.

Profits through sales volume.

5

Emphasis sis iiss given on product planning an and d Emphasis is placed on sale of  development to match products with the market.  products already produced. Integ egrrated ted ap approac ach h to to mar mark keting ing is is pr practice ced d. Fragmen entted ap appro roaach to to se selling is is  practiced.

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The pri prin ncisipfollowed. le of of ca caveat v veendor ((llet th the sseeller   beware)

The principle of caveat emptor (let the buyer beware) is followed.

The Marketing Concepts

The marketing concept is the philosophy that urges organization to focus on their customers’ needs. Analyzing their needs and making such decisions that satisfy those needs in a better  way than competitors.

The Production Concept (Industrial revolution – 1920′s)

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The basic idea behind production concept was: The firms will produce what they can produce efficiently. This will ensure enough supply of the products at low-cost and demand will be created by itself. Production concept prevailed into late 1920s because most of the products being produced were the basic necessities and there was a huge unfulfilled demand for them.

The Sales Concept (1930s)

By early 1930s, competition had increased in production and on the other hand there was less unfulfilled demand. So, all the firms turned towards sales concept. Now the companies were not only producing the product but also sell it to customers through personal selling and advertisement. There was no concept of need identification, firms were just interested in beating competition  by selling more but neglecting customers’ satisfaction. We can call it hard selling.

The Marketing Concept After World War II, there was a variety of products available in the market and

customers custom ers having having discretionar discretionary y income income could make choices and purchase what really fulfill their needs. The main focus of all the firms turned from hard selling towards Identification of  customer custom er needs So, The marketing marketing concept totally relies upon marketing research that helps in identification of segments, their sizes, needs, target market and then by using the right ‘Mark ‘M arketi eting ng Mix‘ Mix‘,, mark market etin ing g team teamss make makess su such ch de decis cisio ions ns th that at re resu sults lts in cu cust stom omers ers satisfaction.

MARKETING FUNCTIONS :Clark & Clark divided the marketing functions into three major groups

1) Functions of Exchange 2) Functions of Physical Supply 3) Facilitating functions

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1) Functions of Exchange :-

Exchange means transferring of goods & Ownership from seller to buyer. a) Buying :-

It is th thee first first step step of mark market etin ing g fu func ncti tion ons. s. It is ca carri rried ed ou outt by al alll mark market eters ers,, manu ma nufa fact ctur urers ers,, whol wholesa esale le de deal aler ers, s, Reta Retail iler erss an and d Cons Consum umers ers.. Buyi Buying ng an and d Se Sell llin ing g are inseparable in nature (ie) it happens simultaneously. If one person buys a thing then that should be someone to sell the thing (ie) without selling there is no buying. b) Assembling :-

It is co conc ncer erne ned d with with th thee co coll llect ectio ion n of go good odss from from di diffe ffere rent nt sour source cess fo forr fu furt rthe her  r  movements (E.g) Retailers

c) Selling :-

Selling and buying are compliment to each other, The Primary objective of marketing is to sell the products with profit. Here product & Ownership is transferred from seller to  buyer  2) Functions of Physical Supply :-

These are the functions that are related with Creation of Place, time & utilities a) Transportation :-

It creates place utility because goods are transferred from seller to buyer through land, sea and air transport.

b) Storage :-

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It creates time utility. Products are preserved from the time of Production to the time of Consum Consumpti ption. on. Produc Productio tion n may be during during a particu particular lar season, season, but demand demand is anothe another  r  (different) season. In order to meet the demand with supply, storage is essential.

c) Distribution :-

Here the goods are distributed from storekeeper to buyer. Two types of channels of  distribution are used by the manufacturer. i) Direct Channel :-

It means Direct contact with the producer & consumer. It is mostly applicable to service sector & industrial goods. ii) Indirect channel :-

It means eans in ind dir irec ectt con contact tact betw betwee een n Pro Produ duce cerr an and d Con Consu sume merr (ie) (ie) So man any y intermediaries are there. It is applicable to consumer goods.. Manufacturer

Wholesaler

Retailer  

3) Facilitating Functions :a) Finance :- Finance is the most fundamental aspects for any trading transactions. It is

needed for Production & Marketing. The bankers and financial institutions are dealers in money (i.e.) they Provide money on credit to the business as a short term, medium term & long term. b) Risk bearing :-

In Marketing so many risks are involved. Some of the risks are insurable while others are not. i) Insu surrabl blee ris risk k ::Loss on fire, accident etc. ii) Non-I Non-Insu nsurab rable le risk risk ::-

Loss on account of fall in demand, Price, change in economic value etc… iii) Standard Standardisat isation ion :-

Standa Sta ndardi rdisat sation ion is related related with with the divisi division on of commod commoditi ities es into into distin distinct ct groups. Standards are fixed on physical characteristics of the products (E.g) shape, weight, size etc…Grading applies certain qualitative specification (E.g) Grading of  fruits, Agricultural products etc… iv iv)) Grad Gradin ing g :According to the taste, type etc…Grading starts where standardization ends.

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v) Marke Marketin ting g info informa rmatio tion n ::-

The desired success of marketing depends on correct & timely decision. These decisions are based on market information (or) market intelligence. vi) Promo Promotio tion n :-

Promotion is a wide term including advertising, sales Promotion, Personal selling, Publicity etc… Promotion of marketing device is to stimulate demand for a  product. These are the various marketing functions.

Marketing Concept :-

In olden days, marketing was concentrated on the functions of distribution of goods. The flow of goods from Producer to Consumer. In sale oriented aiming to maximize the  profit through sales. Marketing concept is a consumer’s need orientation (i.e.) It aims at customer satisfaction. Today marketing concept can be expressed at “find wants fill them” and “Love the Customers and not the products”. Factors for influencing Marketing Concept :-

The following factors are influenced by the marketing concepts;

i) Popu Popula lati tion on gro growth wth ::--

The increasing population naturally increases the demand to market are made up of   people.

ii) Incre Increasi asing ng House Househol holds ds ::The growth of demand for the household products is more than its to the total

 population at any time. Joint family system has become unpopular because most of the recent families are subdivided and increases the demand. (E.g) T.V, refrigerator.

iii) Disposal Disposal of Income Income :-

Automation in industrial birth of many new firms etc… open the door of employment when the income continues to increase, the purchasing power also increases.

iv) Surplu Surpluss Income Income ::-

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The people have Surplus income left after meeting the expenses on essential items, (i.e.) The surplus amount will be spent on non-necessary products (e.g.) Gold, Share etc…

v) Techno Technolog logica icall Develo Developme pment nt :-

Science & technology improves day by day New invention of products takes place often. These products will always possess good demand in the market. vi) Mass Communicat Communication ion Media Media :-

To grow growth th of mass mass co comm mmun unic icat atio ion n medi mediaa- News Newspa pape pers rs,, Maga Magazi zine nes, s, T.V T.V et etc. c... facilitate the buyers to learn about the New products available for sales.

vii)Credit purchases :-

Credit purchases through hire purchase schemes and instalment schemes are common today. Credit purchase pushes sales. viii) vii i) Post Post purch purchase ase dec decisi ision on :The marketer’s job is not completed on sales itself (i.e.) an after sales they have to

collect feedback from Customers to analyze the level of satisfaction. a) Sat Satis isfi fieed ::-

Customer’s needs are equal to actual output of the product. b) Di Diss ssat atis isfi fied ed :-

Customer’s needs are more than the actual output of the product. c) Deli Delig ghte hted :-

Customer’s needs are less than the actual output of the product.

Marketing Mix –   Neil Borden in the year 1953 introduced the the term Marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular  amongst the masses form marketing mix. Elements of Marketing Mix The elements of marketing mix are often called the four P’s of marketing. 1. Product Goods manufactured by organizations for the end-users are called products. Products can be of two types - Tangible Product and Intangible Product (Services) An individual can see, touch and feel tangible products as compared to intangible products. A product in a market place is something which a seller sells to the buyers in exchange of  money. 2.Price

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The money which a buyer pays for a product is called as price of the product. The price of a  product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa. Retail stores which stock unique products quote a higher   price from the buyers. 3.Place Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a  physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet. 4.Promotion Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to  promote and make a brand popular amongst amongst the masses. Promotion can be through any of the following ways: a.Advertising Print media, Television, radio are effective ways to entice customers and make them aware of  the brand’s existence. Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas, crossings, railway stations, bus stands attract the passing individuals towards a  particular brand. Taglines also increase the recall value of the brand amongst the customers. b.Word of mouth One satisfied customer brings ten more customers along with him whereas one dis-satisfied customer takes away ten more customers. That’s the importance of word of mouth. Positive word of mouth goes a long way in promoting brands amongst the customers.

Lately three more P’s have been added to the marketing mix. They are as follows: People - The individuals involved in the sale and purchase of products or services • come under people. Process - Process includes the various mechanisms and procedures which help the •  product to finally reach its target market Physical Evidence - With the help of physical evidence, a marketer tries to • communicate the USP’s and benefits of a product to the end users Four C’s of Marketing Mix  Now a days, organizations treat their customers like kings. In the current scenario, the four  C’s has thus replaced the four P’s of marketing making it a more customer oriented model. Koichi Shimizu in the year 1973 proposed a four C’s classification. Commodity - (Replaces Products) • Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost • Channel - The various channels which help the product reach the target market. • Communication - (Replaces Promotion) •

Features of Modern Marketing :-

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The marketing Management refers to planning, organizing, directing, control of the activates which facilitate the exchange of goods and services between the producers to end consumers. Firms today need to spend money to create time, place and ownership utilities .The main features of modern marketing are as follows:

Marketing is a science as well as art:* Marketing has evolv evolved ed from the economics but it has a closer relationships relationships with social and behavioral behavioral sciences. sciences. Marketing is closely associated associated with streams of science as well humanities and subject lines such as Economics, Law, Psychology Psych ology,, Anthropology Anthropology,, Sociology, Sociology, Information Information Technology Technology etc.

Marketing Marketing heavily

de depe pend ndss up upon on th thee de demo mogr grap aphi hicc featu features res of th thee ta targ rget et mark market, et, po poli liti tical cal en envi viro ronm nmen ent, t,  philosophy, mathematics, statistics etc. Exchange is essence of marketing: Marketing revolves around commercial exchange. This

also involves exchange of technology, exchange of information and exchange of ideas. Marketing is Goal Oriented: The ultimate goal of marketing is to generate profits through

the satisfaction of the customer. marketing is not not an isolated, isolated, static process process but is a Marketing is a continuous process : marketing comp comple lex, x,

cont contin inuo uous us

and and

inte interr rrel elat ated ed

pr proc oces ess. s.

It

in invo volv lves es

co cont ntin inuo uous us

pl plan anni ning ng,,

implementation and control. It is an important functional area of the m management. anagement. firms exist because because of their business business to satisfy the the Marketing is Consumer Oriented:* All firms human needs, needs, wants and demands. demands. The ultimate object objective ive of marketing is to find out what the consumer wants and how to fulfill consumer need. This This leads to production production of the goods and services as per the needs of the customer. Marke Ma rketin ting g start startss with with consum consumer er and ends ends with with consum consumer er: Market Marketing ing is consum consumer  er 

oriented and it is very important to know what the consumer wants. UNIT – II MARKETING MANAGEMENT Management :-

Management is the art of getting things done through with the people in formally organized group. - Koontz

Management Manag ement is a process process involving involving,, planning, planning, organizing, organizing, staffing, directing and controlling human efforts in achieving the objectives of an organization.

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Management Process:-

The Process of Management covers the following:i)

Si Situ tuat atio ion n anal analys ysis is & co con nsi sid der erat atio ion n of inte intern rnal al & ex exte tern rnal al envi enviro ron nmen ment & al also so its its constraints.

ii ii))

Defi Defini ning ng ob obje ject ctiv ives es & the their ir re rela lati tion onsh ship ip to th thee res resou ource rcess used used..

ii iii) i) iv)

Cho hoic icee & co combin mbinat atio ion n of of ins instr tru umen ments ts.. Preparation of of pl plans & po polici icies.

v)

Managing & organizing th the pl plans.

vi) vi)

Cont Contro roll & Evo Evolu luti tion on of of resu result ltss (ie) (ie) Rev Reven enue uess & cost costs. s.

vii) ii)

Re-p e-plann lannin ing g thr thro ough ugh fee feed dback back..

The Marketing Management has to fulfill the following responsibilities:a. Sales Sales & Mark Market et Anal Analys ysis is  b. Determination of marketing goals c. Pr Prep epar arin ing g Budg Budget etss d. Formulation Formulation of Market Market strategies, strategies, Policie Policiess & Procedures. Procedures. e. Fram Framin ing g mark market etin ing g mix. mix. f. Organi Organisin sing g all marke marketin ting g acti activit vities ies invol involved ved in in mix. mix. g. Assembling Assembling of necessary necessary resources resources like like Marketing Marketing Personnel, Personnel, finance finance etc… etc… h. Manage Managemen mentt of distr distribu ibutio tion n ch chann annels. els. i.

Effective Effective communicat communication, ion, proper proper contro controll & co-ordin co-ordination ation among among all the departm departments. ents.

 j.

Post sales servicing during the warranty period. MARKETING MANAGEMENT

  TYPES OF MARKETING ORGANIZATION STRUCTURES   Types of marketing organization structures: The marketing organization of a business can be structured on any of the following basis: a.  Line and staff organization  b.  Functional Organization c.  Product oriented marketing organization d.  Customer oriented marketing organization e.  Geography oriented marketing organization f.  Matrix form / Combined base

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1. Line and Staff Staff Organiza Organization: tion: In most busin business ess forms forms especi especially ally mediu medium m size the marketing job is structured around few line functions and few staff functions i.e. Major staff  functions funct ions is organized organized into separate department department and the line function is responsible responsible for sales department. The required coordination between the line and staff function is managed by the executive at higher level.

Merits: 1. Provides expert advice from specialists 2. Relives line executes of routine, specialize functions 3. Enables young sales executive to acquire expertise 4. Helps in achieving effective coordination 5. Easy to operate 6. Less Expensive Demerits: 1.  Produce confusions arriving from indeterminate authority relationships 2.  Curbs the authority of experts 3.  Too much is expected from executives 4.  Decision making is taken by top management 2. Functional: Under the organization the departments are created on the basis of specified functions to be performed i.e. The Activities related to marketing, distribution etc

Merits: 1. Division of work base on specialization 2. Relives line executives of routine and specialized functions 3. Promotes application of expert e xpert knowledge 4. Helps to increase overall efficiency Demerits: 1.  Leads to complex relationships 2.  Makes coordination ineffective 3.  Promotes centralization

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4.  Lack of proper coordination 5.  Delay in taking decisions 3. Product Oriented Marketing Organization: Organizations that produce wide variety of   products often organize marketing, training and promotion promotion with respect to a product.

Merits: 1.  The salesmen can render better customer service as they possess good knowledge of product and may have close contacts with customers. 2.  It makes individual departments responsible for the promotion of specific  products. 3.  It facilitates effective coordination Demerits: 1.  It increases the employment of a number of managerial personal 2.  Many salesmen of same enterprise attend same customer each representing a separate product which creates confusion in the minds of  the customer. 3.  There may be duplication of activities 4.  Cust Customer omer Oriented Oriented Marketi Marketing ng Organiza Organization tion:: Whe When n the depart departmen mentati tation on of sales sales organization is done on customer basis it is called customer oriented marketing organization. Deparmtnetation by customer may be done in enterprise engaged in providing specialized services to different classes of customers.

Merits: 1.  It takes into account needs of each class of customers. 2.  IT provides specialization among the enterprise staff 

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  Demerits: 1.  2.  3.  4. 

It makes coordination difficult It may lead to under utilization of resources in same department There may be duplication of activities These types of sales organizations are not suitable for small enterprises.

5. Geography/Territory: Geography/Territory: In a territory oriented marketing organization , the responsibilities for marketing of various products rests almost entirely with line executives .The territory manage man agers rs are given given varyin varying g nomenc nomenclatu latures res like like depot depot manage manager, r, distri district ct manage manager, r, area area manager, zonal manager , divisional manager etc.

Merits:

1.  It leads to economy in terms of times and money 2.  It helps in taking knowledge of local customers 3.  It helps in effective control

Demerits: 1.  It requires employment of number of managerial personnel. 2.  It dilutes control from head quarters

VI) Matrix Type Organisation :-

It is divided divided by two complementary complementary Organisation, Organisation, the functions functions & project. A Project Project manager has the project eam consisting of people from several functions. When the project work is complete, they go back to their respective departments. It is needed when a special type are urgent job or complicated job or a new product is introduced . So it is a temporary one.

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Responsibilities of Marketing Manager :Conducting Market Research Marketing managers carry out market research to gain a clear understanding of what an organizatio organ ization's n's customers customers really want. Marketing Marketing research enables enables these managers to identify identify new market opportunities, opportunities, helping helping the organization organization create a market market niche for its products products or  service serv ices. s. Market Market research research also involv involves es studyin studying g the organi organizat zation ion's 's compet competito itors rs so as to develop superior products and employ efficient marketing techniques. Companies conduct market research using questionnaires, face-to-face interviews or analyzing the buying habits of consumers. Developing thenage Marketing Mark Ma rket etin ing g mana ma gers rs ar aree Strategy res respo pons nsib ible le fo forr de deve velo lopi ping ng mark marketi eting ng str strat ateg egie iess fo forr th thei eir  r  organizations. These strategies outline clearly how an organization will promote its products and services to its target market with an aim of increasing its sales volumes and maintaining a competitive edge over its competitors. Customer Relationship Management The market marketing ing manage managerr perfor performs ms the functi function on of champi championi oning ng custom customer er relatio relationsh nship ip management manag ement in the organization. organization. The marketing marketing manager collects this information information from the organization's customer database to help create a customer satisfaction survey. Marketing managers then share this information with other employees to ensure they offer excellent customer service to their clients in order to build lasting relationships. Employee Management Marketing managers are in charge of the marketing department and therefore are responsible for employees within their department. They assign duties and set targets for departmental

staff.. It is also staff also th thee fu func ncti tion on of mark market etin ing g mana manage gers rs to pe perf rfor orm m pe peri riod odic ic pe perfo rform rman ance ce evaluations of the staff working for them. Identifying New Business Opportunities Marketing managers analyze market trends with an aim of identifying unexploited or new market mar ketss for the organi organizat zation ion's 's produc products ts and services services.. Throug Through h studyi studying ng the purcha purchasin sing g  patterns of consumers, they can identify the peak and off-peak demand periods for their   products. By employing sales forecasting, they can estimate future performance of the organization's products. Also through market analysis and forecasting, they can develop strategies to ensure the organization remains competitive.

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UNIT – III MARKETING ENVIRONMENT

Introduction :-

A system is a set of objects, elements or components that are interrelated with one another. These elements operate on inputs such as physical resource, human resource & the information to accomplish common objectives such as productivity & satisfaction. A system consists of inputs, processor, output & feedback. It draws inputs from its environment. It offers output in the form of products, services, information & ideas to satisfy environment demands. Processor transforms inputs into outputs. It may be a machine an individual a comput com puter, er, a chemic chemical al (or) (or) any other equipmen equipments ts .When .When the process process is designe designed d by the manager it is termed as white box. However in most cases, the transformation process is not known in detail & too complicated. Hence the processor is called as black box.

Resources Resour ces receive received d by the Organi Organisati sation on from the enviro environme nment nt are contro controlla llable ble variable. They are called inputs. The resources are plant & equipment, material, finance, labour, information, corporate image, technical & managerial know how. Factors influencing Marketing Environment :-

A dynamic marketing environment has three types of forces.

I) External Uncontrollable forces :- (Partially Controllable)

The external external uncontrollable uncontrollable forces are acting as constraints constraints in an Organisatio Organisation n at all levels. External uncontrollable forces are

a) Demography :-

Grow Gr owin ing g po popu pula lati tion on in indi dica cate tess gr grow owin ing g mark market. et. A mark market eter er is capab capable le of de deve velo lopi ping ng substantial substa ntial control over a target market. But he cannot cannot have any control over the population population characteristics (i.e.) age, income, occupation, education etc… b) Economic Environment :-

Market Mar keting ing plan plan and program program are influe influence nced d by many many other other econom economic ic ite items ms like like interest rate, Money supply, Price level, consumer credit etc… inflation coupled with scarcity conditions can radically change consumer buying habits.

c) Social & Cultural Environment :-

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a) Social :-

It is usually influenced influenced the welfare welfare of a business concern concern in the long run. We have ever changing society. There are three aspects of social environment.

1) Change Changess in Our Our life styl stylee & social social Value Values. s. 2) Majo Majorr soci social al pro probl blem ems. s. 3) Grow Growin ing g cons consum umer erism ism.. a) Cultural :-

Culture, Sub-culture, Social class, reference group, family are the different factors that influence the buyer behaviour.

b) Technological Factors :-

Development in science & technology have a very wide impact of all the marketing activities including communication marketing payment etc… (E.g.) EDI

Electronic Data interchange

c) Ecology Environment :- (Nature)

Ecology, Economic Development & market economy are flexible in nature. (E.g.) Environmental problems & Natural Colomaties.

Potential & Legal Environment :-

Potential & Legal forces are also affected the marketing activities (e.g.) import & export procedure, Tax rates, fiscal policies, flexible government etc…. Competitive Forces :In modern World, each & every Organisation should run in a difficult manner because

they they are are faci facing ng to toug ugh h & ke keen en co comp mpet etiti ition on (E.g (E.g.) .) T.V T.V manu manufac factu turer rer of ofte ten n finds finds stiff  stiff  competition not only from other T.V manufacturers alone but also from other forms of  entert ent ertainm ainment ent from from cinema cinema (or) (or) other other forms forms of recreat recreation ions. s. So compet competiti itive ve enviro environme nment nt determines the success (or) failure of the product.

Demand :-

Customer demand is ever changing & unpredictable and also a complex one. Under  the market Oriented Oriented marketing marketing philosophy philosophy,, customer needs needs and desire are at the center of 

22

 

market mar keting ing Unive Universe. rse. Marketin Marketing g polici policies, es, progra programs ms & strateg strategy y are planed planed,, organi organized zed & executed with a main objective of customer service & Satisfaction.

II) Internal Internal control controllable lable factors factors :-

The characteristics of an employee in an organization influence the marketing plan of  Organisation . 1) Demographic Environment:-

Yes, Ye s, de demo mogr grap aphi hicc en envi viro ronm nmen entt is re relev levan antt to th thee mark market eter er du duee to in incr creas easee in  population. In modern marketing concept, consumer is the goal of each and every Organization. So they must study the demographic environment. But it is uncontrollable. Since the marketer has to identify the customer needs and wants through research in order to avoid the overstock level, loss and also to maintain equilibrium in production & supply. Therefore each and every marketer has to study the demographic environment.

2) Economic Environment:-

It is also relevant to the marketer because the following factors would affect the economic conditions of the business firm. a) Demand:-

Demand is ever changing and it cannot be estimated at an accurate level. Whenever  the marketer studies the consumer needs and wants before production, it affects the market.

b) Tax Rate:-

The rate of tax is changed on day by day due to the Government Fluctuations. The tax rate is added in the rate of the product. So the value will increase.

c) Supply:-

Supply also affects the economic conditions of the firm. d) Money supply:-

The value of money also affects the economic condition of the firm. In inflation  period, the value of money is decreased but the money supply is more. Automatically, the rate of the product is increased. In deflation period the value of money is increased but the money supply is very low. Automatically, the rate of the product is decreased. 23

 

Conclusion:-

From Fro m the above above factors factors,, demogr demograph aphic ic enviro environme nment nt & econom economic ic enviro environme nment nt are affecting the marketing condition. So it is relevant to the marketer.

Challengers before going to Global Marketing

Inte Intern rnat atio ional nal Mark Market etin ing g in invo volv lves es all all th thee ac acti tivi viti ties es th that at fo form rm pa part rt of do dome mesti sticc marketing and enterprise engaged in international marketing has to be correctly identified, assesse asse ssed d and interp interprete reted d the needs needs of the Overse Overseas as custome customerr and carried carried out integr integrated ated marketing to satisfy those needs.

International marketers should be ranked on several factors including market size, market growth, cost of doing business, competitive advantage & risk level. Internation Intern ational al marketing marketing involves involves the performance performance of marketing marketing functions functions of buying, buying, selling, transportation, storage, financing, risk – bearing, advertising & sales promotion in foreign market across the National border.

The following defects are coming up while doing the business on international level. 1) Wide Wide area area Coverag Coveragee is not not possi possible ble.. 2) It does does not satisfy the internat international ional level customers. customers. 3) Marketers Marketers have have not fixed the internati international onal level level pricing pricing.. 4) Doesn’ Doesn’tt mainta maintain in cent cent percen percentt Qualit Quality y 5) Absence Absence of of iinnov nnovative ative marketing marketing approach. approach. 6) Absenc Absencee of new techno technolog logy y :In orde orderr to ov over erco come me th thee ab abov ovee de defec fects ts th thee fo foll llow owin ing g ac acti tivi viti ties es are ne need eded ed in international marketing.

a) Market Market & Produ Product ct Sele Select ction ion ::--

Product selection is important as market selection. All aspects of product like a basic  products constitutes, features, brand names, package production, size, Labelling & usage instructions. Market selection is identified through online marketing research.

b) Mark Market et Ent Entry ry ::-

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Establishment of joint ventures & collaborations of foreign firms for marketing the  products & occasionals manufacturing.

c) Di Dist stri ribu buti tion on cha chann nnel el ::-

The intern internatio ational nal market marketer er mus mustt take take into into a/c channe channels ls betwee between n nation nationss & also channels within nations. Channels between Nations include export through middlemen in one country or direct exports to foreign customers who may be end – users or middlemen in foreign countries.

d) Pricin Pricing g for Global Global Mark Market et ::-

Firms which have a short term interest in the foreign market may fix cost plus pricing strategy. However firms with long term interest in foreign market have to adopt a market oriented pricing policy.

e) Inter Internat nation ional al Marke Marketin ting g Researc Research h :-

Marketing planning should start with research. All the relevant information on the oversea ove rseass target target market market must must be system systematic aticall ally y collec collected ted,, update updated, d, analys analysed, ed, stored stored.. The market must be classified by their size, customer, customer, requirement, requirement, chann channel el pattern, pattern, distributio distribution n methods and other relevant characteristics. f) Inter Internat nation ional al Marke Marketin ting g Communi Communica catio tion n :-

The Domestic marketing, the marketer is applying to people who are better known to him, him, us usin ing g a kn know own n lang langua uage ge,, kn know own n symb symbol ol & fa fami mili liar ar medi mediaa bu butt in in inte tern rnat atio ional nal marketing, we have to tackle unfamiliar people, a storage language, unfamiliar media & Purchase Motivation. g) Proced Procedura urall Compl Complexi exitie tiess :-

A bu busi sine nessm ssman an is re requ quir ired ed to un unde ders rstan tand d a va vari riety ety of pr proc oced edur ural al co comp mple lexi xiti ties es covering a number of areas like import – Export license, customs foreign exchange, mode of   payment, Documentation, insurance regulation & Quality Quality regulation &

so on…

h) Organisat Organisation ion for internat international ional Marke Marketing ting ::-

Firms manage their international activities, in atleast three different ways. Most firms first organi first organize ze & export export depart departmen ment, t, then then create create an intern internatio ational nal divisio division n and ultima ultimately tely  become a multinational organization. 25

 

Importance of international Marketing :-

International market is important to the national economy & to the individual firm.

a) Nati Nation onal al Econ Econom omy y ::-

The developing countries need import, capital requirements, Raw material & technical know – how for rapid industrialization. A high rate of economic growth when contemplated  by a country is usually associated with a higher rate of export development. development.

Sufficient export earnings are essential to cover import debt. The national income of a countr cou ntry y can be increas increased ed to a consid considerab erable le extend extend throug through h effecti effective ve organi organisati sation. on. The standard of living of people is also improved by imported item, quality product & use of  improved technologies.

b) Individual firm :-

A firm having having an unutilised unutilised installed capacity capacity after meeting the domestic domestic market has to enter the international market. It leads to boosting up the sales. A firm is desirous to introduce new products with latest technology.

Is it necessary to scan marketing Environment?

Yes, it is necessary to scan the marketing environment due to the following :1) To iden identif tify y the the custo customer mer need needs. s. 2) To under understan stand d the polit political ical & legal legal issue issues. s. 3) To identi identifyi fying ng the compet competito itor’s r’s pos positi ition. on. 4) To analyze analyze what are the factors factors influencin influencing g the marketing marketing Enviro Environment nment..

Does the technology bring the changes in the lifetime of customer?

Yes, the technology brings the changes in the life time of customer because demand is ever changing & unlimited (i.e.) each and every customer should like a sophisticated life.

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UNIT IV MARKET SEGMENTATION Definition:-

Market Mar ket segmen segmentat tation ion is define defined d as the process process of taking taking the total total hetero heterogen geneou eouss market for a product & dividing into several sub – market (or) segments each of which tends to be homogeneous in all significances. Criteria for successful segmentation:1) Substantiality :-

It refers to the size of segmented market. Segments must be large enough to permit viablee market viabl market effect directed directed towards them. When the size of the segment segment becomes small, It may not be possible for the marketer to develop separate marketing mix for such unprofitable segments.

2) Measurability :-

The main purpose of market is to measure the change in behavoiour, patterns of  consumers. It should also be remembered the Variations in consumer behaviour are numerous and complex. (E.g.) Segment of a market for a car is motivated by a number of considerations like Economy, status, quality etc…

3) Access ability :-

It could be attained through the existing channel of distribution, advertising media, salesman etc… For (e.g.) some magazines exclusively for youth & Professional peoples.

4) Representability :-

 Normally segments should be large & profitable enough to be considered as a separate market for (e.g.) each segment will be small in the case of industrial products but large in respect of consumer goods.

5) Nature of Demand :-

It refers to different quantities of various segments for  E.g. Assume that a firm segment is marketed by age group under 25, 25-50 & > 50. After  segmenting it finds that demand in each segment is 10000 Units per month. So segmentation

27

 

 by age would be ineffective, since the variable does not affect the value of consumption of  the product.

6) Responerate :-

The segments finally must show differences in responses to the marketing variables.

Benefits of Market segmentation:-

1) Marketers Marketers are in a better better position position to locate locate & compare compare marketin marketing g opportunit opportunities. ies. 2) When When cu custo stome merr ne need edss are fu full lly y un unde derst rstoo ood, d, mark market eter erss ca can n ef effec fecti tive vely ly fo form rmul ulat atee & implement marketing plan. 3) The result result obtain obtained ed from from market market segmenta segmentatio tion n is an indicat indicator, or, to adjust adjust the produc productio tion, n, using material, labour & other resources in a profitable manner. 4) Competitive Competitive strength strength & weakness weakness can can be assessed effectiv effectively ely & marketers marketers can avoid avoid keen competition & use resources more profitably by captivating customer demand. 5) Changes Changes required required may be be studied studied & implemente implemented d without without loosing loosing markets. markets. 6) It helps in determin determining ing the kinds kinds of promotio promotional nal devices devices that are effective effective and also helps helps to evaluate the results. 7) Appropriate Appropriate timing timing for the introduc introduction tion of new products products,, advertising advertising etc…could etc…could be easily easily determined.

Different Bases of Market segmentation:segmentation:-

Market can be segmented through the following manner:1) Geographic segmentation :-

For planning & administrative purposes, the marketer will often find it convenient to subdivide the country into areas in a systematic way. Most of the National manufacturers split up their sales territories territories either state wise or district wise. It is the usual & popular basis for for mark market et segme segment ntati ation on.. Di Disti stinc ncti tion on be betw tween een urba urban n & ru rura rall mark market etss is sti still ll of gr grea eatt importance in India. We know that urban population is better educated with higher income & shows greater mobility. Rural population has less educated, lower income & it is not so mobile. Urban people are willing to buy new kind Novel things.

2) Demographic segmentation :-

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Under this method, customers are divided into homogenous in terms of demographic factors like educational standard, income level etc…

a) Age group :-

Usually age groups are considered by manufacturter of certain special products (E.g.) Toys, chocolate, ice creams, etc…

b) Family Lifecycle :-

It refers to the important stages in the life of an Ordinary family, but it is a complex variable because buying behaviour of each & every member of family is changed.

c) Social class :-

It is also a complex variable. It is based on income, Occupation, residence, religion, culture etc… (E.g.) Young, single, Young, Married, Young, No children, Young, Married, children Older, single Older, Married, No children

d) Sex :-

It also influences buying motives in consumer market. Certain products are demanded  by women. 3) Social Economic Segmentation Segmentation :-

It is done on the basis of social class like working class, income group.

4) Product segmentation :-

It is done on the basis of product categories. It is a rational approach. (E.g)

29

 

5) Benefit segmentation :-

In this method, consumers are interviewed to learn the different benefits that may need from the product.

6) Volume segmentation :-

Another way of segmenting the market on the basis of size of purchase.

7) Marketing Factors segmentation :-

The responsiveness of buyer to different marketing activities is the basis for this type of segmentation. (E.g.) Price, quality, advertising & other promotional device.

Marketing Segmentation Strategies :1) Undifferentiated Marketing :-

(One product one marketing mix for all segments) In the case of fully fully standar standardiz dized ed produc products ts & where where substi substitut tutes es are not available available,, differentiation need not be undertaken. Under such circumstances, firms may adopt mass advertising and other mass methods in marketing.

2) Differentiated Marketing :-

(Several products, Several Marketing Mix, Relevant segments) :Under this concept, a firm decides to operate in several or all segments of the market and devices separate product marketing programs. In recent years, most firms have preferred to have a strategy of differentiated marketing because consumer demand is diversified. (E.g.)

30

 

Cigarettes are now manufactured in a variety of filter types. It provides the customer an opportunity to select this choice from among filter, unfilter, long, short cigarettes.

3) Concentrated Marketing :- 

(One product, One marketing mix, One segment) Instead of spreading the market, it concentrates its forces to gain a good market  position in a few areas. When new products are introduced and test marketing is strategy. Here specialization in market which are really potential. (E.g.) Boost, Hindustan Limited etc…

4) Particularised Marketing :-

Here He re One One pr prod oduc ucts ts,, se seve vera rall mark market etin ing g mix mixs, it is al also so kno nown wn as pro rodu duct ct differentiation.

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UNIT – V BUYER’S BEHAVIOUR  Definition:-

Buyer Behaviour is defined as “all Psychological, social and physical behaviour of all  potential customers as they become aware of evaluate, purchase, consume, & tell others about  products & services”.

Introduction:-

The buyer is a riddle. riddle. He is a complex complex entity. His needs and desires are innumerable innumerable & they vary from security needs to aesthetic needs. These needs & desires are often at different stages of emergence & actualisation.

Determinants (or) Factors influencing Buyer’s behaviour :-

Buye Bu yers rs do no nott make make pu purch rchase ase de deci cisio sion n in a va vaccu ccum. m. The The bu buyi ying ng be beha havi viou ourr is influenced by cultural, social, personal & psychological factors. Most of these factors are uncontrollable & beyond the hands of marketers.

I. CULTURAL FACTORS :-

Cultural factors have the deepest influence on the buyer behaviour.

a) Culture :-

Culture Cultu re is the most basis fundamental fundamental that determines determines a person’s wants & behaviour. behaviour. Some of the prominent cultural shift today are :-

i) Leisure time:-

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Most of the couples are working & hence seeking more ways to increase leisure time to sp spen end d on ho holi lida day y an and d spor sports. ts. They They ar aree in inte teres reste ted d in pu purc rcha hase se of time time savin saving g ho home me appliances & services like washing machine, Hotel etc…

ii) Health conscious:-

People are becoming health conscious and are important in exercise, walking, yoga and so on.

iii) In formatting:formatting:-

People are adopting a more relaxed and informed life style that is choicing, furnishing and entertaining.

b) Sub – Culture :-

Each culture will contain smaller group of sub culture that provides more specific identificatio ident ification n demographic demographic variables such as Nationality, Nationality, religion, geographic geographical al location, location, caste, age, sex etc…

c) Social class:-

It also influences buying behaviour, redistinct, social classes are upper, middle & lower classes.

II. SOCIAL FACTORS :-

A customer behaviour is also influenced by social factors such as consumers reference group, family & social status.

a) Reference group:-

A person’s reference groups are those groups that have a direct (i.e.) face to face or  indirect influence on the persons behaviour. (E.g.) Religious institutions, Professional associations etc…. b) Family:-

The marketer is interested in knowing which the members normally has a greater  influence on the purchase of a particular product or services. E.g.:Category

In the purchase of product 33

 

Husban Hus band d domina dominant nt

Automo Automobil bile, e, T.V, T.V, Comput Computers, ers, policie policiess etc… etc…

Wife dominant

Was ash hing mac ach hine, Kitchen appliances, Home appliances.

Equal Equ al par partic ticipa ipatio tion n

Housin Housing, g, recreati recreation on activi activities ties,, Outsid Outsidee Environment.

c) Role & Status:-

A person is a member of many groups family, clubs, Organisation etc… Define in terms of role & status. People often choose costly products to communicate their status in the society.

III. PERSONAL FACTORS:-

A consum consumer er purch purchases ases,, decisio decisions ns are also influe influence nced d by the follow following ing person personal al characteristics.

a) Age & stage of lifecycle:-

People’s choice of goods & services change over their life time.

b) Occupation:-

A person’s occupation has a direct effect on his choice of goods & services. A clerk  willl purcha wil purchase se produc products ts which which are econom economica icall where where as the top executiv executivee will will purcha purchase se expensive goods & services. So marketers will have to identify which occupational group will be interested in their products & services.

c) Economic circumstances:-

A person’s Economic Circumstances consist of their spendable income, savings & assests ability to borrow. Income, savings credit & assets are the elements of a person’s  purchasing power.

d) Life style :-

Life style of a person pers on conveys more than the person’s personality (E.g.) Raymond’s to indicate the life style of “A Complete Man”.

34

 

e) Personality & self concept:-

Each person has got a distinctive originality which will influence buying behaviour  (E.g.) (E. g.) self confid confidenc ence, e, domina dominance nce etc… etc… Self Self concep conceptt is a related related term term which which refers refers to  person’s self image.

IV. PSYCHOLOGICAL FACTORS :-

For the purpose of understanding buyer’s behaviour, the following are the important  psychological factors :-

a) Motivation:-

It can be said to be inner drive. b) Maslow’s Theory:-

Maslow’s Theory of needs is an attempt to explain motivation. i)

Self actualisation Needs.

ii)

Esteem needs.

iii)

Social Needs.

iv)

Safety Needs

v)

Psychological Needs.

c) Perception:-

It is a proc proces esss of selec selecti ting ng,, or orga gani nisi sing ng & in inter terpr pret etin ing g to ev even ents ts ha happ ppen enin ing g in en envi viro ronm nmen ent. t. The The be beha havi viou ourr of th thee cu cust stom omer er is go gove vern rned ed by th thee fo follo llowi wing ng ph physi ysica call  perception. Eyes – To see stimuli

nose – To smell stimuli

Ears – To hear ssttimuli

mouth – To taste st stimuli

Skin – To Touch stimuli d) Learning:-

It describes changes in an individual’s behaviour arising from experience.

e) Beliefs & Attitudes:-

Thro Th roug ugh h learn learnin ing, g, pe peop ople le ac acqu quir iree certa certain in be belie liefs fs & attit attitud udes es in influ fluen enci cing ng th thei eir  r   behaviour. A belief is a thought that a person holds about something. It helps in building up  product & brand images. An attitude can be said to be a “Person’s enduring favourable or 

35

 

unfavourable cognitive & evaluation & emotional feeling & action tendencies towards some object or idea”.

Conclusion:-

The above mentioned factors (i.e.) cultural factors, social factors, personal factors &  psychological factors have influenced the behaviour of the buyers.

DECISION MAKING PROCESS:-

Every buyer is passing through the five important stages in marketing making a  purchase decision. Need Recognisation:Recognisation:-

Buyer Buy er decisio decision n process process starts starts with with need need Recogn Recognisat isation ion.. An indivi individua duall buyer buyer is stimulated by certain internal stimuli & External stimuli. A rational buyer must be able to recognise his needs clearly.

Information search:-

Once a buyer recognises his needs, he starts collecting information about the product. There The re are differe different nt ways ways throug through h which which inform informati ation on can be obtain obtained. ed. The source sourcess of  information may be personal or commercial.

Evolution of Alternatives:Alternatives:-

After collecting the required information about the brands available in the market, a  buyer makes an attempt to evaluate the performance of alternatives.

Purchase Decision:-

During Evolution stage, a buyer ranks the brands available in the market and forms  purchase intension. (i.e.) All purchase intension may not result in purchase decision. Because the attitude of others & unexpected situation may affect the purchase decision. The brand image is also playing an important role in influencing the buying decision. Post Purchase Decision:-

The job of a marketer marketer is not over when a Product is bought. It is the key which must consid con sider er for po post st purcha purchase se behavi behaviour our of the users. users. The Marketer Marketer must must underst understand and the relationship relatio nship between between buyer’s expectation expectation and the product’s product’s Pereceived Pereceived Performance. Performance. The Performance below the expectation of the buyers are dis–satisfied. If the Perceived (Actual) 36

 

Performance meets the expectation, the buyer is satisfied. But the Perceived Performance exceeds expectation, the buyer’s are delighted. The Post Purchase Evolution will enable a market to get loyal customers.

TYPES OF CUSTOMERS :i) Frie Friend ndly ly cus custo tome mer: r:--

It is always to meet a friendly customer. He listens and responses inspire hope in the mind of Salesman. He will not argue or contradict the salesman statement.

ii) Shy & Timi Timid d Cust Custome omer:r:-

Such a customer customer cannot take any decision indepe independent ndently. ly. He lacks confidence confidence in his own discretion discretion & judgement judgement.. Such customers customers should should be taken into confidence confidence & advised advised to the best course possible. He He can be motivated easily. He will purchase. He can also be won as permanent customer. iii) Impulsive Impulsive customer customer::-

An impu impuls lsiv ivee cu custo stome merr take takess de deci cisi sion on ve very ry qu quic ickl kly y wi with thou outt much much th thin inki king ng or  analyzing (i.e.) he wants quick action and less talk.

iv) Undecide Undecided d custo customer: mer:--

Such a customer is also at a loss to take any decision. He is indecisive. He is in a  position to eliminate the important details & Narrow down approach.

v) Delibe Deliberat ratee custom customer er::-

He is aggressive (i.e.) he is not open to listen the explanations and he is emotional.

vi) Silent Silent Custom Customer er::-

The silent & calm customer is trying outwardly and seems to be impressed by the talk  of the salesman. But the salesman should not get impatient and wait till the customer has to decide either way.

vii)Snobbish Customer:-

Such a customer looks down upon other persons and has a very high sense of himself. Such Suc h a person person can be easily easily satisfi satisfied. ed. The salesman salesman is apprec appreciati iating ng his extraordi extraordinar nary y intelligence and his wealth. 37

 

viii) vii i) Suspi Suspicio cious us custom customer: er:--

He has belief neither in the quality of the product nor in the sincerity of the salesman (i.e.) He has a very poor opinion about the salesman.

ix) Impatient Impatient customer customers:s:-

He expects the salesman to attend to him without delay.

x) Rude Rude and Sarc Sarcast astic ic custo customer mer::-

This type of customer is Rude, ill mannered and even vulgar.

xi) Price Price Minded Minded custom customer:er:-

Most of the customers consider price rather than the quality.

xii)Pratling customer:-

He is always taking and simply wants to exhibit his talents. The best way of dealing with talkative customers is to try to cut short the conversation by putting some questions and  breaking the Friend of his talk. xiii) xii i) Women Women custom customer: er:--

When they come in groups, they are generally talkative, they like to bargain, and they  prefer to visit the shops where they find themselves more comfortable. The salesman must not hurry women to decide quickly. The salesman must answer the various questions they like to ask, they expect some price concession. They also recommend it to other women.

Social aspects of Marketing:-

Modern business is regarded as an integral component of society. It must have a society’s approval in order to function successfully. In today’s world, society is expecting much more from business than the past. Integrated business plans & controls are expected to act as instruments of social change and these plans have to be implemented in order to  promote maximum public welfare. Sociall responsibili Socia responsibilities ties means an intelligence intelligence and objectives objectives concern for the welfare of  soci societ ety y (i.e (i.e.) .) an Orga Organi nisat satio ion n limi limits ts or pr prev even ents ts in indi divi vidu dual al an and d co corp rpor orat atee be beha havi viou our. r. (monopoly)

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Social functions of marketing:-

Marketing Management is concerned with the following four social concern. 1) Sur Surviva ival: l:--

It may be the basic and ultimate objective of a business particularly under changing environment, changing den and competition. It is the best measure of economic performance & marketing activity.

2) Prof Profit itab abil ilit ity: y:--

Business needs profits to justify its existence. The basic duty of marketing manager is to serve consumer needs profitable for long – term survival goals. It is the indicator of  efficiency.

3) Service:-

Under Customer – Oriented marketing, serving the demand of customers is the central marketing functions.

4) Social Social re respo spons nsibi ibilit lity:y:-

Modern business lives in a socio – economic environment. Hence it is an obligation to meet in social social responsibili responsibilities ties to its employees, employees, the community, community, and the public, public, as well as to it itss Owne Owners rs an and d cu custo stome mers. rs. The The fo foll llow owin ing g pict pictur uree stre stress ss th thee in inter terac acti tion on be betw twee een n th thee management and its shareholders.

Share Sh areho hold lders ers in a fi firm rm ar aree nu nume mero rous us an and d th their eir ex expe pect ctat atio ion n ca can n be di diffi fficu cult lt to reconci reco ncile. le. Modern Modern busine business ss is faced faced by critica criticall public, public, challe challengi nging ng custom customers, ers, powerf powerful ul labours & exacting share holder. Modern business also provides environment free from  pollution, Fair prices, fair quality, fair services to consumers, fair pay to consumers, fair  working conditions, to employees & fair return on share holders investment.

ECO – MARKING:-

The Eco – mark can be applied to project using natural substitute instead of synthetic materials or using wastes, or Recycled matter to produce usable consumer goods. For (e.g.) Eco – Marking electric appliances using much less energy. Washing machine using much less water, transport transport Vehicles Vehicles using less Petrol there by causing causing fuel conservation conservation and minimum minimum  pollution. 39

 

The idea is to establish the concept of the eco – mark using product based & which is also environment environment friendly. The Eco – mark label is intended intended to enable enable consumers consumers to choose  products which are environment friendly.

Like the BIS mark or the AGMARK, an ECO - MARK Product is a guarantee that its use will mean less environmental damage. For getting the Eco – Mark, the product must be  produced by the environment friendly Technology. The products demanding immediate Eco  – Marking are toilet soaps, textiles, detergents, paper, pesticides and drugs. The Prime aim of  the ECO - MARK scheme is green consumerism.

Recycled paper and Plastic goods and biogas energy are some examples of environment friendly goods. ISO 9000 series certification maintain minimum environmental standards in manufacturing operations.

Buying Motives:-

Human Motives are based on needs. All human beings have different needs or variety of needs at all the time. Broadly, the human needs can be classified into Primary and secondary needs. All human needs can be classified into five hierarchical categories by Moslow. Moslow’s hierarchy of human needs help us to understand consumer motivations.

i) Psyc Psycho holo logi gica call Need Needs: s:--

Psychological Needs are basic for human survival (E.g.) Food, water, air, shelter, sleep, Thirst etc…. ii) Safet Safety y & Secur Security ity Nee Needs: ds:--

Safety & Security Needs are physical as well as psychological security and include safety of Person & property etc… (E.g.) Insurance, Deposit etc…

40

 

iii iii)) Social Social Needs: Needs:--

Social Needs are related to belongingness, friendship, Love, Affection etc…. Most Personal care products like soap, perfume, gifts, greeting cards etc… are purchased to fulfill the social Needs.

iv) Self Esteem Esteem Needs:Needs:-

It includes needs for self – respect, self – confidence, competence, knowledge etc…

v) Self Self Actu Actuali alisat sation ion Nee Needs: ds:--

It includes Need for optional development of potential abilities, knowledge & skills. (E.g.) Purchasing of luxury Products like jewellary, imported Cars, Fancy house etc…

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