MCM 605-eL2

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M.Com 2 All right are reserved with CU-IDOL Marketing Management Course Code: MCM 605 Semester: First e-Lesson: 2 SLM Unit: 2 www.cuidol.in Unit 2(MCM 605)

Marketing Management 33 OBJECTIVES INTRODUCTION   Under this you will learn and understand the To develop an understanding of the basic concepts of Marketing Mix, its functions and its various P’s of marketing mix and its functions relevance for Managers. in today’s changing scenario.  To make them know the difference between  In this unit you will learn the implications of marketing mix elements in developing a marketing and selling. successful marketing strategy. www.cuidol.in Unit 2(MCMM60650)5) INASlTl ITriUgThEt OarFeDrIeSsTeArNvCeEd AwNitDh OCNUL-IIDNOE LLEARNING

TOPICS TO BE COVERED 4 > Difference between marketing and selling. > Introduction to Marketing Mix > Developing an Effective Marketing Mix www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Difference Between 5 Marketing and Selling Marketing Selling Focuses on Customer Needs Focuses On Sellers Needs Begins before Production Begins after Production Continues After Sales Comes To an End after sale of Product Philosophy of Business Routine Process Profits through customer satisfaction Profits through Sales Volume Long Term Perspective Short Term Perspective Customer First Product First www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Marketing Mix 6  Marketing Mix is a combination of marketing tools that a company uses to satisfy their target customers and achieving organizational goals. McCarthy classified all these marketing tools under four broad categories:  Product  Price  Place  Promotion These four elements are the basic components of a marketing plan and are collectively called 4 P’s of marketing. www.cuidol.in Unit 2(MCM 605) https://www.dreamstime.com/business-concepts- illustration-marketing-mix-ps-model-management- strategy-diagram-blue-colors-foundation-concept- image116470199 All right are reserved with CU-IDOL

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Product Product refers to the goods and services offered by the organization. 8 A pair of shoes, a plate of rice, a lipstick, all are products. All these are https://in.images.search.yahoo.com/yhs/search; _ylt=AwrxhWbLSPpdpAoAdQ3nHgx.;_ylu=X3o purchased because they satisfy one or more of our needs. We are paying DMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMx BHZ0aWQDBHNlYwNwaXZz?p not for the tangible product but for the benefit it will provide. So, in simple All right are reserved with CU-IDOL words, product can be described as a bundle of benefits which a marketer offers to the consumer for a price. While buying a pair of shoes, we are actually buying comfort for our feet, while buying a lipstick we are actually paying for beauty because lipstick is likely to make us look good. www.cuidol.in Unit 2(MCM 605)

Product Mix 9 The product mix is the set of all products offered for sale by a company. Bajaj Electricals a household name in India, has almost ninety products in its portfolio ranging from low value items like bulbs to high priced consumer durables like mixers and luminaries and lighting projects .The number of products carried by a firm at a given point of time is called its product mix. www.cuidol.in Unit 2(MCM 605) https://in.images.search.yahoo.com/yhs/search;_ylt=Aw rxhWbLSPpdpAoAdQ3nHgx.;_ylu=X3oDMTB0N2poMX RwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNw aXZz?p All right are reserved with CU-IDOL

Price Price is the amount charged for a product or service. 10 It is also a very important component of a marketing plan as it determines your firm’s profit and survival. Adjusting the price of the product has a big impact on the entire marketing strategy as well as greatly affecting the sales and demand of the product. The factors have to kept in mind while pricing a product are: • Demand for a product, • Cost involved, • Consumer’s ability to pay, • Prices charged by competitors for similar products, • Government restrictions etc. https://in.images.search.yahoo.com/yhs/search;_ylt=AwrwS23SS PpdUA8AuSsO9olQ;_ylu www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Place 11 Goods are produced to be sold to the consumers. They must be https://in.images.search.yahoo.com/yhs/search; made available to the consumers at a place where they can conveniently _ylt=AwrwS2AtUvpdpCQADGwO9olQ;_ylu=X3o make purchase. Foods and snacks are manufactured on a large scale in DMTBsZ29xY3ZzBHNlYwNzZWFyY2gEc2xrA2J1d China and you purchase them at a store from the nearby market in your HRvbg--;_ town. So, it is necessary that the product is available at shops in your town. This involves a chain of individuals and institutions like distributors, wholesalers and retailers who constitute firm’s distribution network (also called a channel of distribution). www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

12 https://in.images.search.yahoo.com/yhs/search;_ylt=AwrwS2AtUvpdpCQADGwO9olQ;_ylu=X3oDMTBsZ29xY3ZzBHNlYwNzZWFy Y2gEc2xrA2J1dHRvbg- www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Promotion 13 • If the product is manufactured keeping the consumer needs in mind, is rightly priced and made available at outlets convenient to them but the consumer is not made aware about its price, features, availability etc., its marketing effort may not be successful. • Promotion is done through means of personal selling, advertising, publicity and sales promotion. It is done mainly with a view to provide information to prospective consumers about the availability, characteristics and uses google.com/search?q=promotion+mix+images&source=lnms &tbm=isch&sa=X&ved=2ahUKEwikycGrlMHmAhUdyjgGHfB of a product. Unit 2(MCM 605) XDpEQ_AUoAXoECA0QAw&biw www.cuidol.in All right are reserved with CU-IDOL

14 https://www.google.com/search?q=advertising+images&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjl54vflsHmA hUDAXIKHVwDBIsQ_AUoAXoECA0QAw&biw=1366&bih=608#imgrc=CD7_tGSo1ghEKM www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Promotion- Advertising Advertising is the process of communication, persuasive 15 information about the product to target market by means of the written and spoken word, and by visual material. According to Kotler, Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor. There are five principal media of advertising as follows: The press- newspaper, magazines, journals etc. Commercial Television Direct mail Commercial radio Outdoor- hoardings, transport advertisements etc. www.cuidol.in Unit 2(MCM 605) https://www.google.com/search?q=advertising+images&source=lnms&tbm =isch&sa=X&ved=2ahUKEwjl54vflsHmAhUDAXIKHVwDBIsQ_AUoAXoECA0Q Aw&biw=1366&bih=608#imgrc=CD7_tGSo1ghEKM All right are reserved with CU-IDOL

Promotion- Personal Selling Personal selling is oral communication with potential 16 buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to “close the sale”. Personal selling is the most expensive from of promotion. Companies which utilize an aggressive sales policy, based on personal selling, are said to be adopting a push strategy. By comparison firms which rely more heavily on advertising are described as adopting a pull strategy. www.cuidol.in Unit 2(MCM 605) https://www.assignmentpoint.com/business/marketing- business/personal-selling-stages-and-procedures.html All right are reserved with CU-IDOL

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Promotion- Direct Marketing The business of selling products or services directly 18 to the public, e.g. by mail order or telephone selling, https://www.google.com/search?q=direct+marketing+images&source=lnms&tbm =isch&sa=X&ved=2ahUKEwj4386RqsHmAhWO4zgGHW0UBwwQ_AUoAXoECAwQ rather than through retailers. Aw&biw=1366&bih=608#img Direct marketing gives you the opportunity to promote your products and services directly to the customers who most need them. A good direct Marketing campaign will: • help you build relationships with new customers • test the appeal of your product or service • tell you which marketing approaches reach your target market • provide customers with compelling content they can share with potential customers increase sales. www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Promotion- Direct Marketing 19 Common forms of direct marketing include: • Brochures • Catalogs • Fliers • Newsletters • Post cards • Coupons • Emails • Targeted online display ads • Phone calls • Text messages https://www.google.com/search?q=direct+marketing+images&source=lnms&tbm=isch&s a=X&ved=2ahUKEwj4386RqsHmAhWO4zgGHW0UBwwQ_AUoAXoECAwQAw&biw=1366 &bih=608#img www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Promotion- Sales Promotion Sales promotion is a marketing strategy where the product 20 is promoted using short-term attractive initiatives to stimulate its demand and increase its sales. This strategy is usually brought to use in the following cases • to introduce new products, • sell out existing inventories, • attract more customers, and • to lift sales temporarily. American Marketing Association defines sales promotion Media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product availability. https://www.google.com/search?biw=1366&bih=608&tbm=isch&sa=1 &ei=jTn7XYCGDprbz7sPkNeLiA0&q=sales+promotion+images&oq= sales+promotion+images&gs_l=img.1.0.0l2j0i7 www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 21 Selling Vs. Marketing (Fill the blanks ) • Starting Point- focus- Means- End Factory ………….. Promotion Profits through sales volume ……………… Customer ………… Profit through……………….. . needs www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 22 Relationship Marketing is: 1. The process of creating, building and managing long term relationship with customers, distributors and suppliers. 2. Developing good relationships with other departments of the company 3. Concerned with the developing exchanges with customers. 4. The emphasis is to develop products that will satisfy customers and focus was basically on (single) transaction. www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Summary 23 • The Marketing mix consist of four P’s  Product  Price  Place  Promotion • Promotion mix consists of advertising, sales promotion, public relations, personal selling and publicity. • Pricing decisions are affected by internal and external factors. • Channel of distribution play an important role in marketing. www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

Frequently Asked Questions 24 Q1. Why is pricing considered most important P’ in marketing? Ans. Price is important to marketers because it represents marketers' assessment of the value customers see in the product or service and are willing to pay for a product or service. Q2. List the major product decisions made by a marketer. Ans. The main elements to consider are the production process itself, specifications, culture, the physical product, packaging, labelling, branding, warranty and service. Q3. Discuss the role of promotion element in marketing mix. Ans. The promotion mix is the blend of different methods and tools of communication you use in presenting your company, products or services to target customers. Effective promotion is a key component of the marketing mix, as it is the element that helps you attract customers, persuade them to buy, and generate loyalty. Q4. What is the difference between marketing and selling? Ans. Selling is an action which converts the product into cash, but marketing is the process of meeting and satisfying the customer needs. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service. www.cuidol.in Unit 2(MCM 605) All right are reserved with CU-IDOL

REFERENCES 25 1. Kotler,P., Keller, K.L. Koshy, A. and Jha, M. (2009). Marketing Management: A South Asian Perspective. New Delhi: Pearson Education. 2. Etzel, M., Walker, B., Stanton, W. and Pandit, A.(2007). Marketing Management. New Delhi: Tata McGrawHill. 3. Ramaswamy, V.S., Namakumari, S. (2009). Marketing Management: Global Perspective Indian Context. New Delhi: Macmillan Publishers India Ltd. 4. Saxena, Rajan. (2010). Marketing Management. New Delhi: Tata McGraw Hill Education Pvt. Ltd. www.cuidol.in Unit 2(MCM 605) 2A5ll right are reserved with CU-IDOL

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