Marketing Management Module 1 Notes

Marketing Management Module 1 Market “ market includes both place and region in which buyers and sellers are in free competition with one another” “ why market is meant any particular place in which things are bought and sold, but the whole of any region in which the buyers and sellers are in such free intercourse with one another,That the price of the same goods tense to equality easily and quickly” Marketing “ marketing is the process of discovering and translating consumer needs and wants into product and service specification, creating demand for these products and services and then in turn expanding the demand.” Characteristics of marketing ● It is operational: that is, managers Must Think and act to achieve results. benefits of marketing will not emerge from a passive attitude to the exchange process emphasising the statement “ no pain no gain” ● it is customer oriented: that is, Marketing firm is to be the keen observer. outside focusing its attention on needs of customer. its effectiveness lies in finding solutions to the challenges posed by these demands. ● it is mutuality off benefits: exchange of goods and services work and persist because it is the mutual interest of both parties to continue. both the market and consumer benefit true supply of quality goods and service in return for profit. here, customers benefits exceed costs. ● It is value-driven: the culture of the Marketing firm are based on a Desire to build the business through meeting the needs and responding to the market the values espoused by firms leaders are communicated to all those involved in the firm. ● It is proactive to the environment: Marketing firm is a subsystem of super system the environment. the environment is something which is external to the firm. the environmental forces are ecology, e-technology, e competition, physical, legal, socio economic forces, which are to be accepted by the marketing unit where it is to be proactive and not reactive. ● it covers both profit and non profit making organisation: marketing is not confined only to profit making organisations but also to non-profit making organisations or charitable institutions that Sell Services such as educational institution, Church, temples, Gurudwara, Hospital, sports clubs and other philanthropic organisations

Functions of Marketing A) Functions of exchange a) Selling Selling is the sum total of all the activities that push the commodities to the buyers or consumers at a profitable price . b) Buying Buying is the process of transferring of the ownership of a commodity from buyer to seller at a profitable price. B) Functions of Physical Supply a) Transportation transportation is the physical means, to move the goods and people from one place to another. transportation is an essential spoke in the wheel of marketing. b) storage the products are to be preserved from the time of production to the time of consumption, as they cannot be sold immediately. This being done by storage or warehousing system. C) Facilitating Functions a) Financing finance is the best for marketing activities. it's more than the process of text change and act as a lubricating oil to the wheel of marketing b) risk bearing Market risks are inherent, so long as the process of exchange continues. many risks are involved in marketing which bring about changes in ownership, place etc. c) market information market information includes all facts, estimates, opinion, views, regarding the market weather. d) Standardization standardization is the process of fixing a standard for the quality quantity and price of commodities and tries to achieve this standard. Marketing Process 1. Analysis The starting point of marketing process is the study of the entire market and analysing meticulously and the search for the hidden golden opportunity that enable the firm to encash on them. 2. selection of target market

there is need for identifying and locating the target market that consists of the most qualified consumers were marketeers can hope to bank upon for their contribution towards profit 3. The framework of action the next step is to build or design a framework of action that form a foundation for their marketing efforts. the marketers must work strictly according to the guideline set in the Framework so that a well planned and fruitful action is ensured. 4. preparing for action based on the Framework the market makes the offer or offers are to be made available for actual practice. it is translating plan into Action ready to meet the requirements of the prospects or the customers. 5. Action the final stage of marketing process is that of action. one should accept that there is always gap between what one plans and realizes. Marketing Environment Marketing environment consists of all those external factors which surrounds a business and has a influence on the operation of the business. the marketing environment has divided into six categories. they are 1. Social forces social forces are made up of sociological, psychological and anthropological factors Sociological Factors : the social constitution or the condition are bound to have deep influence on consumer taste, temperament, life and living. so the marketer cannot afford to neglect or underestimate these aspects Psychological Factors : the study of consumer behaviour is much more important than the number of consumer in the market because each customer is unique. his behaviour, attitude, temperament, mentality and personality have their own say on what he wants and how his needs can be satisfied. Anthropological Factors : Anthropological factors consist of National and regional characteristics, cultures and subcultures and the patterns of Living. inductive study of these factors will help the marketer in designing and implementing the advertising, sales promotion and direct selling strategies. 2. economic forces Consumers : Consumer interest, progress and prosperity is the aim of every economic activity. the marketer has to bring quality goods at reasonable prices

Competition : competition is the breath of modern economic systems. Healthy competition is the cause of quality improvement, quantity multiplication and economy encouragement Price : Pricing of a product or service is a delicate issue. if it is too high, reduces the consumers and consumption and if it is too low, the producers and marketers are left in the lurch. 3. Ethical Forces The business community has the ethical responsibility while delivering the goods to the society. of late excessive profiteering, making quick money how for some of the business people to disintegrate the ethical values from the business. 4. political forces marketing environment half the brace of political Framework in which the government of the nation works. it is the government that regulate the business activities are it is the custodian of the nation. 5. physical forces the physical factors refers to the physical distribution of goods and services. they refer to the creation of place and time utility. transportation is used to to avoid the place barrier and warehousing or storage is used to avoid the time barrier. 6. technological forces Science and technology is always changing. the business has to keep up to date with the technology in order to survive in the competitive market. Market Segmentation Market segmentation is the process of dividing the market into various segments in order to satisfy the different needs of consumers. Here the consumers are divided on the basis of their needs from the product. types of market segmentation ● Demographic Segmentation : demographic segmentation is the division of customers on the basis of their demographic features like age, gender, education, economic background etc. ● Geographic segmentation: it is dividing the market on the basis of geographical location. Indian market can be subdivided into states, and states can be divided into districts and so on. ● psychographic segmentation : this is the division of customers on the basis of their expectation from a particular product. People expect different outcomes from a single product so it is important to divide or group customers having the same types of need.

● behavioral segmentation: behavioral segmentation is the division of customers on the basis of their purchase behaviour. Usually customers are divided into heavy purchasers, medium purchasers and low purchasers. hear the quantity or their frequency of purchase is considered. Product Positioning product positioning is a process of identifying the needs of market segments, product strength and weaknesses and the extent to which competing product are perceived to meet the consumer needs. or in other words, product positioning means designing the company's image on the minds of consumers. Consumer Behavior consumer behaviour is the process by which a consumer decides what to buy, by when to buy, how to buy and from whom to buy. Consumption Behavior consumption behaviour is the sum total of consumer behaviour. it means how the consumers from a particular market segment behaves in the market. Steps in Buying Process 1. Need Recognition : Realising that there is a need for a particular product. for example a man decides to buy a car when they have a newborn baby because he realises that it is not safe to travel on a bike with baby 2. Information Search : the consumer tries to collect maximum information related to the product that he want to buy 3. Evaluation and Intention : he considers a variety of products which can satisfy his needs and compare them to find out the best product. 4. purchase decision: after finding the most suitable product for his need he decides to purchase the product. this is the step in which the actual purchase of product happens. 5. Post -Purchase Decision : after purchasing the product if the consumer is satisfied with the product, he/she would recommend it to others. Buying Motives Buying motives are the desire Which makes a person buy a particular product. there are various reasons why a person should buy a product. they are: A) product motives product buying motives are those that from the consumer or propel him and impel to buy because of physical and psychological product attributes. Consumer may buy the product because of it's design, size, colour, taste, package, price, performance, Pride, affection, durability, suitability and safety. product motives

I) Product Emotional Buying Motives Emotional buying motives are those which makes a consumer buys a product due to his or her emotional state. these motives can be: ● Pride ● Vanity ● Jealousy ● fashion or imitation ● Habits ● love and affection ● Comfort ● aesthetic pleasure ● praise II) product rational motives these are the motives which makes the consumer buy a particular product because intellectually it is a wise decision to choose that product. they are: ● Safety or fear ● suitability ● Durability ● Economy ● Convenience ● Versatility ● Profit ● Curiosity ● Recreation ● hobbies B) Patronage Motives patronage motives are those which makes a person buy a particular product not because of the qualities of that product but the attributes of the situation that product belongs. I) patronage emotional motive ● Appearance of the store ● Recommendation of friends and relatives ● Imitation ● Prestige ● habit II) patronage rational motives ● Proximity ● widest assortment ● credit facilities ● Treatment

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