Marketing Management Overview

MARKETING
MANAGEMENT
PREPARED BY
Dr. M.S. Balaji
Associate Professor & Head
Research Department of Business Administration
Sourashtra College(Autonomous)
Madurai-625004

MARKETING
Legal : It includes all activities which are concerned with effecting changes in
the ownership and Possession of goods.
Economic : It deals with the creation of time, place, form and possession
utilities
Factual : The Performance of business activities that direct the flow of goods &
services from producer to consumer or user.

MARKETING : Philip Kotler
Marketing is a social and managerial process by
which individuals and groups obtain what they need and want
through creating and exchanging products and value with others.

MARKET :
Market is
(a) People
(b) Place
(c) Produce
MARKETER :
‘Marketer’ is one who is seeking an exchange more actively.
The Other one is ‘Prospect’

What is Market ?
The term ‘market’ is originated from Latin word ‘marcatus’ having a verb
‘mercari’ implying, ‘merchandise’ ‘ware traffic’ or ‘a place where business is
conducted’.
For a layman, the word ‘market’ stands for a place where goods and persons
are physically present.
Definitions:
“Market includes both place and region in which buyers and sellers are in free
competition with one another” – Mr. Pyle.
“Market means any body of persons who are in intimate business relations and
carry on extensive transactions in any commodity”.

Marketing
Marketing Management is the process of planning & executing the conception,
pricing, promotion & distribution of ideas, goods, & services to create
exchanges that satisfy individual & organizational goals.
Definitions:
“Marketing is the human activity directed at satisfying needs and wants
through an exchange process” (Original definition in 1980) “Marketing is a
social & managerial process by which individuals & groups obtain what they
need & want through creating, offering & exchanging products of value with
others” (Latest modified definition) – Professor Philip Kotler

MARKETING
Starts with buyer and focuses
on his needs
Activities and product take their
direction from consumer and
his needs
Views customer as the very
purpose of business and sees if
form that point of view.
Views business as a “ Customer
Satisfying process”
Starts with seller and pre-occupied
with his needs
Selling is confined to existing
Activities and products
Views customer as the last in the
Business
views business as a good
Producing Process.
SELLING

Difference between Marketing and Selling
Marketing Selling
Focuses on customers needs Focuses on sellers need
Begins before production Begins after production
Continues after sales Comes to an end with sales
A comprehensive term in terms of meaning A narrow term in terms of meaning
Philosophy of business Routine day to day physical process
Profits through customer satisfaction Profits thorough sales volume
Let the seller beware Let the buyer beware
Integrated approach Fragmented approach
Long-term perspective Short-term perspective
Customer first then product Product first then customer

Scope of Marketing
The scope of marketing covers the vital aspects such as what is marketing?,
what is marketed?, and who markets?.
What is marketing?
Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, services to create exchanges that
satisfy individual and organizational goals
-American MarketingAssociation
Marketing management is the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value.

What is marketed?
Goods – Visible goods, e.x. Mobile phone
Services – e.x. Mobile Networks (Vodafone,Aircel, etc..,)
Events – e.x. Orchestra group, TV shows, fashion shows
Experiences – e.x. climbing of Mount Everest, a pirated ship
Personalities – Celebrity marketing.
Place – real-estate agents
Organizations – slogans like “Nothing is Impossible” for Micromax.
Properties – intangible rights of ownership, real estate or financial property
Information – Wikipedia, Encyclopedia, Journals etc…,
Ideas and concepts – produce cosmetics – but in the store sell hope.

Who markets?
A “marketer” is some one who seeks a response or an attention, purchase a
vote, a donation from another party called the “prospect”.
In case these two parties are seeking to sell something to each other, one can
call them both marketers – e.g. commodity to commodity exchange.
These marketers are skilled in stimulating a demand for organization’s
products or services, but this is too limited view of the tasks they perform.
Just as production and logistics professionals are responsible for supply
management, marketers are responsible for demand management.
The marketing managers are interested in influencing the level, timing and
composition of demand to meet the organization’s objectives.
According to Dr. Philip Kotler, at least eight demand states are possible, which
are as follows:

Eight Demand states:
1.Negative demand – is a case where consumers dislike the product and even may pay a
price to avoid it.
2.Non-existent demand – is a case where consumers may be unaware or uninterested in
the product.
3.Latent demand –where consumers may share a strong need that can not be satisfied by
an existing product.
4.Declining demand – where consumers begin to buy the product less frequently or not at
all.
5.Irregular demand – is a situation where consumers’ purchases vary on a seasonal,
monthly, weekly, daily or even hourly bases.
6.Full demand – is a case where consumers are adequately buying all products put into the
market place.
7.Overfull demand – is a case where consumers like to buy the product that can be
satisfied.
8.Unwholesome demand – is a situation where consumers may be attracted to products
that have undesirable social consequences.

Objectives of Marketing Management
The objectives of Marketing Management are derived from the overall
objectives of business which is profit-making, growth and service of society
among other things.
Marketing management can contribute towards the achievement of these
objectives by developing and distributing products and services which satisfy
the needs of customers and give profits to the business enterprise.
1. Creating Customers– means exploring and identifying the needs and requirements of
customers.
2. Satisfying Customers’Needs– fulfilling the customers expectation.

Marketing Mix
The key to understand integrated marketing today is to understand the
implications of the word ‘strategy’.
A strategy is what you are going to do; a marketing strategy is the link between a
product and the market; it provides the much desired directions for allocating the
marketing effort.
It is translated into an action plan through the tools of marketing management.
These tools together are called as ‘Marketing Mix’.
Individually they are Product, Price, Promotion and Place.
The credit of introducing this concept of ‘marketing mix’goes to Professor N.H.
Borden.
According to Professor N.H. Borden “Marketing-mix covers two things (a) a list
of important elements or ingredients that make up this marketing programme, and
(b) the list of forces having bearing on the marketing operations”

According to Philip Kotler Marketing Mix is a “Set of marketing tools that
the firm uses to pursue its marketing objectives in the target market”:
1. Product
2. Price
3. Promotion
4. Place
Also known as the 4 P’s of Marketing
Marketing Mix

Customer
Solution
Customer Cost Communication
Marketing
Mix
Product
Price Promotion
Place
Convenience
The 4 Ps & 4Cs

Variety – Product line and product range
Quality
Design
Features
Brand name
Packaging
After-sale services and Guarantees
Product-Mix Variables

List price
Discounts
Allowances
Payment period
Credit terms
Price-Mix Variables

Personal Selling
Sales promotion
Advertising
Trade Fairs and Exhibitions
Public-Relations
Promotion-Mix Variables

Channels
Coverage
Assortments
Locations
Inventory
Transport
Place-Mix Variables

It provides a valuable guide for resource allocation: both human and
financial resources.
It helps to allocate the responsibilities: by means of specialization of
human resources, some are accountable for product management.
It provides an opportunity to analyse cost benefit elasticities: a perfect
mix is based on total recognition of relationship between the cost and
revenue.
It facilitates communication process:
How Marketing-Mix concept helps the Business Firms?

The behaviour that consumers display in
searching for, purchasing, using, evaluating,
and disposing of products and services that
they expect will satisfy their needs.
Consumer Behaviour

The individual buys
services for his
who
or her own use,
goods and
for
household use, for the use of a family
member, or for a friend.
Personal Consumer

Development of the Marketing Concept
Production Concept
Product Concept
Selling Concept
Marketing Concept

Needs, Wands
And
Demands
PRODUCTS
Value, Cost
And
Satisfaction
Exchange
Transactions &
Relationship
MARKETS
Marketing
and
Marketers
CORE THEME OF MARKETING

Produce more
Reduce the cost
Distribute widely
People will purchase
The Production Concept

CONCEPTS OF MARKETING
1)Production Concept :
products that are widely
oriented towards high
distribution coverage.
2) Product Concepts :
The Customers will favour those
available and low in cost. It is
production efficiency and wide
those
and
most quality,
The Consumers will favour
performance
products that offers the
features.
-Marketing myopia – undue concentration on quality.
Cont.

Assumes that consumers will buy the product that offers
them the highest quality, the best performance, and the most
features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia
The Product Concept

3)Selling concept : of consumers left alone, will ordinarily not
buy. The organization must therefore undertake an aggressive
selling.
-Hard Selling-
4)Marketing Concept : It is determining the needs and
wants of targets and delivery the desired satisfactions more
effectively and efficiently than competitors.
-‘Love the customers, not the product’-

Assumes that consumers are unlikely to buy a product
unless they are aggressively persuaded to do so
Sell, sell, sell
Lack of concern for customer needs and satisfaction
The Selling Concept

Assumes that to be successful, a company must
determine the needs and wants of specific target markets
and deliver the desired satisfactions better than the
competition
Profits through customer satisfaction
The Marketing Concept

5) Societal Marketing concept : It is determining the
needs and wants of targets and delivering the desired
satisfaction more effectively and efficiently than
competitors in a way it preserves or enhances
society’s well being.
It calls for balancing among:
(a) Profit
(b) Customer Satisfaction
(c) Public interest.

Buying Motives
Buying
Motives
Patronage
Motives
Emotional Emotional Rational
Product
Motives
Rational

Product motives are those that prompt the consumer or propel him and impel
to buy because of physical and psychological product attributes.
The product might be appealing to the consumer’s eyes, nose, ear, tongue and
skin and matching to his mind.
These physical and psychological attractions may be design, size, colour, taste,
package, price, performance, pride, affection, durability, suitability, versatility,
safety, comfort, economy, convenience and so on.
These product motives may be ‘emotional’ or ‘rational’. This sub-
classification is of much significance to understand the very girth of
buying motives.

Emotion is the excited state of feeling or mental agitation.
Emotional action is more quick, pulsive, jerky without much thinking or
reasoning being applied.
These actions are based on feelings or passions.
Emotional decision is not based on detailed study or plan but it is the
spur of the moment.
Emotional buying motives pertaining to products can be:
1. Pride: Example- rich peoples always prefer for high quality products
2. Vanity: V
anity is a virtue of women. Example: changing cars every
year as a fashion.
Product Emotional
Buying Motives

3. Jealousy: comparison with other people
4. Fashion or Intimation: To intimate is to copy the things. Example: Dressing
as same as a film star, buying coolers as same as a sports player.
5. Gender: To attract opposite gender.
6. Habits: example: chewing gum, smoking,
7. Love andAffection: Gift-presentations,
8. Comfort: Example: Recron Pillow, luxury car, etc..,
9. Aesthetic Pleasure: Aesthetics is a study of art, tastes, beauty, aroma and the
like. Example: Interior decoration, altering their vehicles as they wish, etc…,
10. Praise: Some people like to be praised or admired by others. It may be
praising a man’s honesty, daring, personality, integrity, achievements,
abilities, attitude towards others, even simple matter like his dress,
spectacles, haircut or tattoos, etc…

Human beings are both social and rational. They think before doing.
They have an astounding ability of creative thinking and imaginative
juggling of environmental variables to their great benefit.
It is rationality that distinguishes a man from animals.
Reasoning is predominant in host of his activities actions and decisions.
Rational motives are based on reasoning or judgment. He has such
product rational buying motives.
1. Safety or fear: human life is patent example of uncertainty as it is full
of hazards. Today, we are buying vitamin pills, capsules, tonics for
maintaining and improving sound health, iron safes and burgler alarms
for safety, insurance policies to reduce and shift risks.
Product Rational Buying Motives

2. Suitability: Individual requirements differ widely depending on hi paying
capacity, size of the family, etc…, with respect to individuals’ requirement the
suitability of the product is selected. For example: single-door fridge for small
and medium family, small car for small family (Nano car for low paying
capacity people).
3. Durability: Durability is the quality of last longer. Example: Jeans pant for
hard workers (tough and durable)
4. Economy: Example: High mileage bike for medical representatives and sales
persons since they travel more distance than others.
5. Convenience: Convenience speaks of saving valuable time, mental and
physical exertion and guarantees accurate and efficient work. For example:
using calculator, using trolley suitcase.
6. Versatility: Good example is reversing dress (two-side shirt), two-in-one,
three-in-one, combo pack etc…,

7. Profit or Cupidity: No one wants to lose in this material world.
Profit-making or earnings is more a cupid urge in human beings.
Example: offers for Newspaper subscription during Vijayadasami or
other festive seasons.
8. Curiosity: Curiosity is the burning passion for new experience. It is
the desire for much a waited exposure. Example: children have a
curiosity to buy a toy that is imitated from a new cartoon show,
archeologists curious over buying old age paintings and sculptures.
9. Recreation: Example Leisure tours, enjoying movies in weekend,
social get-togethers, witness matches in stadium.
10.Hobbies: Example: trekking, gardening, singing, dancing, etc….,

Patronage Motives
Patronage motives speaks of the choice of a particular person – a shopkeeper or an outlet for
purchase.
In other words, he has certain motives to patronise or support and suggest a
particular shop or a store.
Patronage Emotional Motives
Patronage emotional motives are based on his wish or emotion or pulsive attitude.
His decision to support a store is not the out coming of reasoning and judgment. His
selection is founded on the casual factors and these are:
1. Appearance of the store: “love at first sight” well decorated, colourfully couched
store. Consumer may buy out of temptation.
2. Recommendation of Friends and Relatives: based on past experience of our
friends or relatives they suggest us to visit a particular store for some rare
products.

3. Imitation: Opinion-leaders, brand ambassadors (cine-stars, Sport-stars
for Boost energy drink advertisement), trend-setters.
4. Prestige: For some people Prestige is all. For the sake of Prestige, they
do and undo the things. Example: Paying premium price for some
services like Special lunch, paying Rs. 300 for hair-dressing at luxurious
salloon.
5. Habit: Consumer loyalty is developed out of consumer habit. Once he is
emotionally attracted by a particular store, he continues to patronize the
same. It is the usual case with grocers, green-grocers, druggists and
chemists, barbers, beauty parlours, restaurants, hotels, motels, and so on.
It becomes a routine thing to go top a particular outlet almost
mechanical. The customer sells himself to than outlet or store without
thinking or much thinking.

All customers are not emotional in supporting a particular store. They are rational. They think and
judge before extending loyalty to a particular store. The motives of this kind can be:
1. Proximity: Convenience in buying cannot be ruled out. Here cost is not a matter.
Thus, a house-wife selects one shop very near to her residence for emergency
purchases. Similarly, she has her regular grocer, green-grocer, baker, pharmacy,
library, a textile dealer and so on. What is convenience t one may not be
convenient to another. It is purely individualistic.
2. Widest Assortment: Example: Super Market – where grocery items, stationary
items, vegetables, fruits and all are available.
3. Credit Facilities: Modern business cannot be thought of terms ‘cash’. Credit is the
breath of today’s business world
4. Treatment: Today’s customers is having his own self-respect and standing and
wants that he is to be given due respect through warm treatment.
5. Services offered: Additional services like free door-delivery, booking orders on
phone, replacements (ex. One month replacement period in e-shopping medias).
Patronage Rational Motives

Consumer Buying Decision Process
These basic psychological processes play an important role in understanding
how consumers actually make their buying decisions.
Marketing scholars have developed a “stage model” of the buying decision
process, which is shown below
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post purchase Behavior

The Buyer Decision Process
Step 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the environment
Internal Stimuli
• Hunger
• Thirst
• Aperson’s normal
needs
Need Recognition
Difference between an actual state and a desired state

The Buyer Decision
Process
Step 2. Information Search
•Family, friends, neighbors
•Most influential source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources

Step 2. Information Search – Successive Sets Involved in
Consumer Decision Making
Total Set Awareness Set Consideration Set Choice Set Decision
Apple Apple Apple Apple
Dell Dell Dell Hewlett-Packard
Hewlett-Packard Hewlett-Packard Hewlett-Packard
Toshiba Acer HCL
Compaq HCL
Acer Samsung
HCL Asus
Samsung
Asus

Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.

The Buyer Decision
Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors

Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer
Satisfied
Customer!
Product’s Perceived
Performance
Cognitive Dissonance

MARKETING
MANAGEMENT
UNIT – II
- DR. M.S. BALAJI

▶ The term product includes the tangible and intangible attributes related not just
to physical goods but also services, ideas, people, places, experiences and even a
mix of these various elements.
What does the term ‘Product’ mean?

Components of Product
Materials
used
Managerial
Factors
Design
Factors
Reliability
or Durability
Company
Reputation
Functional
Performance
Services
Before and
After
Price

Product Characteristics
▶ Any thing to be called as a product, has certain characteristics – both explicit and implicit.
A. Explicit Characteristics: Explicit product characteristics are those the perception of which
is reasonably uniform among the observers. That is, there is a common agreement as to both the
existence and the nature of these attributes. There are five such attributes, which are as follows:
1.Physical Configuration: Most obviously, product is a bundle of physical stuff. It is made up
of certain materials – wood, plastics, glass, stone, metal etc.., related in particular way. Every
product has its own shape, size, density, odour, taste, texture, colour, weight and host of other
such physical attributes.
2.Associated Services: Products are sold with the common understanding that the seller will
render associated services in case of each product. These are before and after-sale services.
‘Before’ sale services are demonstration, credit facilities available and the ‘after’ sale services
are its delivery, installation, making available of spare-parts, repair services to maintain the
operating condition of the product and warrantees expressed or implied.

Product Characteristics continuity. . . . ,
3.Package and Brand name: It is useful to consider package as the part of product. Example:
Bru Coffee Aroma pack, Sunfeast Dark fantasy Biscuit pack (Each biscuit has separate package
in the box), Brand stands for a product. You need not name the product – name it by brand. For
example: Dalda(brand name of Vanaspathi), Sintex tank, Xerox (brand name of Photo copier
machine).
4.Product mix: This points out the relationship to other products sold by the firm or made and
sold by the firm. That is, a given product is the part of a set of products offered for sale by a
particular seller bears and how both the seller and the buyer consider it. A seller consider the
width, depth and consistency of products offered. ‘Width’ refers to how-many different product-
lines; ‘depth’ stands for the average number of items within each product-line and the
‘consistency’ means the similarity among the product-lines. Similarly, consumer does not think
of a single product in isolation as he knows that the producer makes other products too.
5. Product Life-Cycle

B. Implicit Characteristics: When one considers the product from the view point of
consumer, these are not explicit. The perception of one man is not the same in case of
another. His/her disagreement is the point. This disagreeing point can be called as
implicit product characteristics. There are four such features:
1. Product Symbolism: Product is the cluster of symbols. Among other things, a product
is a symbol of virtue of its form –size- colour- and functions. It is and it has significance
which varies according to how much it is associated with individual needs and social
interaction. A product is the sum-total of meanings it communicates when others look at
it or use it. It may be status symbol – of economy – of performance – of achievement
and so on.

2. Communication media: Because a product is a cluster of symbols, it is bundle of
communication also.Apiece of information is there with a product given or hidden.
3. Product Perception: How products are perceived by consumers is an essay itself.
Perception is really critical to a product’s market viability and perceptual process is
central to the meanings consumers attach to a given product. Perception is the physio-
psychological process. The perception of consumer will help the producer to develop
the relevant product.
4. Product evaluation: It is comprising the ‘efforts’ involved and ‘rewards’ received by
the consumer.

•The core product – consists of the real core benefit or service. This may be a
functional benefit in terms of what the product will enable you to do, or it may
be an emotional benefit in terms of how the product or service will make you feel.
•The embodied product - consists of the physical good or delivered service that
provides the expected benefit. It consists of many factors, for example the features
and capabilities, its durability, design, packaging and brand name.
•The augmented product – consists of the embodied product plus all those
other factors that are necessary to support the purchase and any post-purchase
activities. For example, credit and finance, training, delivery, installation,
guarantees and the overall perception of customer service.
Three Product Levels

Product Classifications
Unsought
Products
Specialty
Products
Shopping
Products
Convenience
Products
Consumer
Products
Business
Products
PRODUCTS

▶Traditional Classification
▶ Consumer and Industrial Products: - Consumer products are those which are meant
for the consumption or final use of consumers or households. E.g.. Shampoo, biscuits,
watches, two-wheelers. Industrial products such as raw-materials, spare-parts, equipment or
machinery etc…, which are used by business buyers as inputs for further commercial
processing.
▶ Durable goods - reflect a purchaser’s high level of involvement in the purchase
decision.
▶ Non-durable goods - reflect low levels of involvement by buyers who are not concerned
which particular product they buy. E.g. food and grocery items.
Product Classification

▶ Convenience Products - non-durable goods or services bought because the consumer
does not want to put very much effort.
▶ Shopping Products - not bought frequently so consumers do not always have sufficient
up-to-date information in order to make a buying decision. The purchase of furniture,
electrical appliances and mobile phones all require some search for information, if only to
find out about the latest features.
▶ Speciality Products represent high risk, are very expensive and are bought infrequently,
often only once.
▶ Unsought Products - a group of products which people do not normally anticipate
buying or indeed want to buy. Egg water meters.
Product Classification

▶ Equipment Goods - concern the everyday operations of the organisation; capital
equipment goods and accessory equipment goods.
▶ Raw Materials - the basic materials that are used in order to produce finished goods.
▶ Semi-Finished Goods - raw materials that have been converted into a temporary state.
▶ Maintenance, Repair and Operating (MRO) - are products, other than raw
materials, such as nuts and bolts, light bulbs and cleaning supplies, are used to ensure that
the organisation is able to continue functioning.
▶ Component Parts - are finished, complete parts bought from other organisations that
are then incorporated directly into the finished product .
▶ Business Services - intangible services used to enhance the operational aspects of the
organisations.
Types of Business Products

Product Policies
▶ Product policies are the stands taken by the manufacturers and marketers to get best deal for
their product or products. Product policies hover round basically the 4 P’s of Marketing-mix
namely, Product, Price, Place and Promotion.
▶ Product policies are in the area of product-mix and product variables.
1. When one comes to product policies in this area, a stand is taken whether the company wants
to stay in core product or products area wants to diversify in to other lines. It is because no
company deals in only one or two products but number of products which we calls as product
lines culminating into product mix or product portfolio.
2. A company has to decide precise on product variables such as product-line and product range,
product design, product package, product quality, product labelling, product branding, and
after sale services and guarantees.

Product Policies
3. In the area of product pricing – the vital decisions or policies relate to pricing policies and
strategies, the terms of credit, terms of delivery, the amount of percentage of margin, and
resale price maintenance.
4. In the area of product place-mix, variables or distribution variables the policies relate to,
transportation, warehousing, inventory levels, channels of distribution.
5. In the area of product promotion, the promotion-mix area cover crucial product policies as to
personal selling, advertising, sales-promotion, public-relations, publicity, trade fairs and
exhibitions and direct marketing including e-marketing.
▶ No company can depend on core product or products for longer period of time because of
product or brand proliferation. That is competitors come into picture to share the market and
margins of profit. Hence, the existing products are to be improved to differentiate form the
existing ones of the house or those of competitors.

Product Policies
▶ Further certain products become old fashioned and the demand fades which calls for deletion
of the product from product line. Again, there is need for simplification of product whereby the
varieties existing are to be reduced to increase the sales by reducing confusion caused by too
many varieties.
▶ It is quite common in case of products like biscuits, pickles, food drinks, chocolates and so on.
It also means reducing the product-line for better utilizing the inputs and reducing the other
marketing costs.
▶ Still another aspect in case of existing products is that of ‘trading up’ and ‘trading down’
policy.
▶ ‘Trading up’policy is to make products of better or superior quality and charge premium price
where people do not mind paying higher price provided the product meets the requirements.

Product Policies
▶ On the other hand, product ‘Trading down’ policy is to produce goods of cheaper or lower
quality and sell them at much lower price.
▶ This is also liked by people. This is called coverage of “Bottom of the Pyramid”
▶ Another very important area is totally going in for an introduction of new product.
▶ It is really risky to go in for entirely new product where competitors enter again with modified
or improved product.
▶ These product policies normally differ from company to company, from product to product,
time to time, and the stage of product life-cycle.
▶ However, product policies are those that makes or mar the fortune of the corporate world.
▶ Hence, only carefully thought out and planned policies which are intelligently and effectively
implemented will succeed.

Product Planning
▶Definitions
▶ Mr. Karl H. Tietjen defines product planning as “the act of marketing out and
supervising the search, screening, development and commercialization of new
products; the modification of existing lines, and the discontinuance of marginal or
unprofitable items”.
▶ Professor Frederick D. Sturdivant and associates defines “the specification of means
for attaining corporate goals that occur concerning new products-modification of
existing ones and the deletion of those current that appear moribund”.

Objectives of Product Planning
1. To meet the customer needs
2. To spot-light firm’s Strengths and Weaknesses
3. To fortify better resource utilization
4. To guarantee firm’s survival
5. To increase firm’s sales

Components of Product Planning
1. Product innovation
2. Product diversification
3. Product standardization
4. Product elimination

Steps in New Product Development
Idea Generation
Screening
BusinessAnalysis
Product Development
Test Marketing
Commercialisation

New Product Development Process
Step 1. Idea Generation
▶ Systematic Search for New Product Ideas
▶ Internal sources
▶ Customers
▶ Competitors
▶ Distributors
▶ Suppliers

Step 2. Idea Screening
▶ Process to spot good ideas and drop poor ones
▶ Criteria
▶ Market Size
▶ Product Price
▶ Development Time & Costs
▶ Manufacturing Costs
▶ Rate of Return

Step 3. Marketing Strategy Development
Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget
Part Three - Long-Term:
Sales & Profit Goals
Marketing Mix Strategy
Marketing
Strategy
Statement
Formulation
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share

Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If Yes, Move to
Product Development
If No, Eliminate
Product Concept
Step 4. Business Analysis
Step 5. Product Development
BusinessAnalysis

Step 6. Test Marketing
Standard
Test Market
Full marketing campaign
in a small number of
representative cities.
Controlled
Test Market
A few stores that have
agreed to carry new
products for a fee.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.

Product
Life
Cycle
Maturity
Decline
Time
Sales
Introduction
Growth

Introduction Stage of the PLC
Sales Low sales
Costs High cost per customer
Profits Negative
Create product awareness
and trial
Marketing Objectives
Product Offer a basic product
Price Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among early
adopters and dealers

Growth Stage of the PLC
Sales
Costs
Profits
Rapidly rising sales
Average cost per customer
Rising profits
Maximize market share
Offer product extensions, service, warranty
Price to penetrate market
Product
Price
Distribution
Advertising
Build intensive distribution
Build awareness and interest in the mass
market

Maturity Stage of the PLC
Peak sales
Low cost per customer
High profits
Maximize profit while defending market share
Diversify brand and models
Price to match or best competitors
Build more intensive distribution
Sales
Costs
Profits
Product
Price
Distribution
Advertising Stress brand differences and benefits

Decline Stage of the PLC
Sales
Costs
Profits
Product
Price
Distribution
Advertising
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk the brand
Phase out weak items
Cut price
Go selective: phase out unprofitable outlets
Reduce to level needed to retain hard-core loyal
customers

Marketing Strategies for PLC
INTRODUCTION GROWTH MATURITY DECLINE
Product
Strategy
Distribution
Strategy
Promotion
Strategy
Pricing
Strategy
Limited models
Frequent
changes
More models
Frequent
changes.
Large number
of models.
Eliminate
unprofitable
models
Limited
Wholesale/
retail distributors
Expanded
dealers. Long-
term relations
Extensive.
Margins drop.
Shelf space
Phase out
unprofitable
outlets
Awareness.
Stimulate
demand.Sampling
Aggressive ads.
Stimulate
demand
Advertise.
Promote heavily
Phase out
promotion
Higher/recoup
development
costs
Fall as result of
competition &
efficient
production.
Prices fall
(usually).
Prices
stabilize at
low level.

Marketing Strategies for PLC
INTRODUCTION GROWTH MATURITY DECLINE
Product
Strategy
Limited models
Frequent
changes
More models
Frequent
changes.
Large number
of models.
Eliminate
unprofitable
models
Distribution
Strategy
Limited
Wholesale/
retail distributors
Expanded
dealers. Long-
term relations
Extensive.
Margins drop.
Shelf space
Phase out
unprofitable
outlets
Promotion
Strategy
Awareness.
Stimulate
demand. Sampling
Aggressive ads.
Stimulate
demand
Advertise.
Promote heavily
Phase out
promotion
Pricing
Strategy
Higher/recoup
development
costs
Fall as result of
competition &
efficient
production.
Prices fall
(usually).
Prices
stabilize at
low level.

Brand
▶ A brand is a symbol, a mark, a name that act as a means of communication which
brings about an identity of a given product.
▶ Brand is product image, brand is quality of product; brand is value; it is personality.
▶ Brand is not only a product decorating the shelf in a store, but is distinguished from
similar products or services.
Brand = Product + Packaging + added values
▶ These added values are to do with quality, image, price and the function.

Trade Marks and Branding
▶ “Trade mark” or “trade-name” is a particular name, design, symbol which can bot be vocalized.
▶ Generally trade mark is registered.
▶ Brand name can be vocalized and can be legalized like registered trade mark.
▶ The aims of branding are to give personality to the product, to make its existence known to the
public; to create preference for the branded product; to control the price of commodities; to
impress about product performance.
▶ There is a slight difference between a ‘brand’and a ‘trade mark’.
▶ ‘Trade mark’is a legalized brand. Such legalization avoids imitation by rivals.
▶ For example: 3 Roses Tea is a trade mark, which cannot be imitated under Names and Emblems
Act in India

Role of Branding
▶ Identifying is essential to competition because, without means of identification there is no way of
making a choice except by happen stance.
▶ Brand names not only facilitate choice but they spur to a responsible action.
1. Brand is a Massive Asset: Brand is a highly intangible asset because all the physical assets
such as plant, equipment, inventory, building can be duplicated or copied very easily, however, it
is almost impossible to duplicate brand name. For example: Apple iPhone, Samsung, Micromax,
Toyota, etc….,
2. Brand is a Promotional Tool: People’s preference to branded products makes the brand as a
promotional tool. For example: think about ‘Photocopy’ people’s thinking will go to ‘Xerox’
where Xerox is a brand name of Photocopier machine. Since there are so many other brands like
Cannon, Hawlett Packard (HP), produce Photocopier machine we still found the name Xerox in
boards of the shop.As same as in the cases of Plastic Water Tank (Sintex), Vanaspathi (Dalda)

Role of Branding
3. Brand is a Weapon to Protect Market: Once a consumer has tried and liked a
product the brand enables him to identify so well that he is tempted to levy it again. For
example: VKC PU-Sandals, adidas shoes, Raymond Shirting and suiting.
4. Brand is a Antidote for Middlemens’ Survival: If a product wins consumer
reputation, the manufacturer gain control over product distribution. The class of
middlemen always tend to go in for a successful brand. That is, without brand
identification, these middlemen find it difficult as to what to buy and sell. In fact, brand
names can be so strong and penetrating that the very survival of middlemen rests on their
efforts and ability to sell a powerful branded product.
5. Brand is a Means of Identification for Customers: For example: ‘Baby soap’ –
‘Johnson and Johnsons’, KFC, VKC, adidas, Nike, Reebok etc..,

A GOOD BRAND NAME
1. It must be easy to Pronounce and Remember: For example: Apple iPhone,
Samsung, Xerox, Dove, Pears, Idhayam, Vicks, Camlin, etc…, these are easy to
pronounce and easy to remember rather than Morphy Richards, Hoechst, Almonard
(Fan), etc.., are difficult to pronounce and remember.
2. It Should be Short and Sweet: The name should be short and sweet, appealing to
eyes, ears and brain. For example: Tata, Batta, Nokia, Micromax, Sony,
3. It Should Point out Producer: The name or symbol should be given concentration of
the product, producer, etc., The best examples are NELCO, MICO, L&T, AMUL,
INDAL, NOKIA, VKC, RAYMOND, etc…,

A GOOD BRAND NAME
4. It Should be Legally Protectable: The brand name must lend, themselves for legal
protection. A brand name, legally recognized is known as trade mark. Normally it
depends on the will and discretion of a producer, middlemen than on brand name.
5. It Should be Original: The brand name selected must not be general but specific. It
must be such that it is not easily copied by others. Hardly does one finds the use of brand
“Philips” by imitators. On the other hand, “Gluco” and “Glucose” biscuits are different.
6. It Should Reflect Product Dimensions: for example: Good-Night is a mosquito
repellant pad implies the user says ‘good-night’ to mosquitos as he is going to have good
and sound sleep. Another example is PUMA brand shoes are the symbol of speed as
panther(Cheetah) is known for speed.Also in the case of Jaguar car.

Merits of Branding
MERITS TO THE MANUFACTURER:
1. Product gets Individuality
2. Control of Product Prices
3. Increases Bargaining Power
4. It reduces theAdvertising Costs
5. Ever Increasing Demand
6. Introduction of New Product is Made Easy Task
7. It is a Powerful Weapon of Production Differentiation

Merits of Branding
MERITS TO WHOLESALERSAND RETAILERS:
1. Quicker Sales
2. Advertising and Displaying of Product is Rendered Easier
3. Increases Market Share and Control over Market
4. Introduction of New Products is Rendered Easier
5. Branded Products have More Stabilized Prices
6. Economical way of Doing Business

Merits of Branding
MERITS TO CUSTOMERS:
1. Brand stands for Quality
2. Consumer Protection against Cheating
3. Branded Products Reflect their Life Styles
4. Steady and Regular Supply of Products
5. Prevalence of Stable Prices

PACKAGING
▶ Packaging is the other side of the product identification
▶ Traditionally, the functions of packaging was to protect goods.
▶ However, it is a promotional tool and the major image builder contributing to the product success.
E.g. Kinder Joy, Sunfeast Dark fantasy (individual pack for each biscuits)
DEFINTIONS:
▶ “Packaging is the general group of activities in designing the containers or wrappers for the
products” – Professor William Stanton
▶ “Package design is the unique combination of colours, graphics, and symbols to distinguishing the
products” – John Bull
▶ “Packaging is an activity which is concerned with the protection, economy, convenience and
promotional considerations”. – Professor Philip.

OBJECTIVES OF PACKAGING
1. Product protection
2. Product identification
3. Product Convenience
4. Product Promotion
a) Self advertising
b) Point of purchase display
c) Media of advertising
d) Product publicity
5. Product profit generation

ROLE/ FUNCTIONS OF PACKAGING
1. To protect the contents – the canning and deep-freezing of some Perishable products like Straw-
berries, orange-juice, mango-pulp enable all the year consumption.
2. It provides product density – better use of space in storage
3. It acts as promotional tool – e.g. Kinder Joy, Nestle, Sun feast Dark Fantasy
4. It provides user convenience – easy to carry, storage, handling.
5. It facilitates product identification – distinguishing between other products – e.g. box pack or
cover pack. Product differentiation is the hall-mark of these days of keen competition.
6. It allows easy product-mix – sizes, colours, measures, grades, package types etc., offered by the
selling house.
7. It extends product life-cycle – updating design may help to give the pack a more contemporary
image. For example: Bru – aroma pack (air-tight)

ESSENTIALS OF GOOD PACKAGING
1. It Should protect the contents – protect the content from dust, dirt, watering etc…,
2. It Should be Attractive – package design, weight, material, colour, graphics, texture
etc…,
3. It should bestow Convenience– convenient to transport, store, easy to open etc..,,
4. It should guarantee economy– must be less or moderate packaging expenses
5. It should assure adjustability– ability of flexibility or is capable of being put to
alternative uses.
6. It should be pollution free – should be bio-degradable, should not harshly affect the
environment
7. It should be informative – date of package, expiry date of the content, M.R.P
. etc.,
should be present in the pack.

MARKETING
MANAGEMENT
UNIT – II OVER

MarketingManagement
Unit – III
Dr. M.S. Balaji

• What is Price?
• A price is the amount we pay for a good or a service or a idea is
exchanged, or offered for sale regardless of its worth or value, to
the potential purchaser.
• What is Pricing?
• The term ‘price’ need not to be confused with the term ‘pricing’.
• Pricing is the art of translating into quantitative terms (rupees and
paise) the value of the product or a unit of service to customers at
point in time.

• Price : The amount of money that is charged for something of value.
• Prices are how much someone is willing to pay.
• Price is called differently
• university
• landlord
• banks
• transportation
• highway
• doctor ,lawyer
• employee
• motels
: tuition fee
: rent, lease
: interest
: fares
: toll
: consulting fee
: wage, salary
: room rate

Dollar or Unit
Sales Growth
Growth in
Market Share
Target
Return
Maximize
Profits
Meeting
Competition
Nonprice
Competition
Pricing
Objectives
Sales
Oriented
Profit
Oriented
Status Quo
Oriented

•Target return sets a specific level of profit as
an objective.
•Profit maximization: to get as much profit as
possible.

•Sales-oriented objective: to get some level of unit
sales, dollar sales, or share of market, without referring to
profit.
• Sales growth – for companies pioneering innovative products
or technologies to develop markets.
• Growth in market share – to enjoy better economies of
scale (more profits, lower costs).

•Status quo: To stabilize prices, or meet
competition, or even avoid competition.
•Non-price competition: aggressive action on
one or more of the Ps other than price.

• In price competition, a seller regularly offers products
priced as low as possible and accompanied by a minimum
of services.
• In non-price competition, a seller has stable prices and
stresses other aspects of marketing.
• With value pricing, firms strive for more benefits at lower
costs to consumer.
• With relationship pricing, customers have incentives to be
loyal-- get price incentive if you do more business with one
firm.

• some firms feel price is the main competitive tool, that
customers always want low prices
• other firms are looking for ways to add value, thereby
being able to avoid low prices
• sometimes prices have to be changed in response to
competitive actions
• many firms would prefer to engage in non-price
competition by building brand equity and
relationships with customers

• Uses price as a method to build long-term relationships
with the best customers
• Focuses on giving better deals to better customers
• Goal is to price relative to the value of the customer to
the firm, while building loyalty and stimulating repeat
buying

 One-price policy – used in mass selling
 The same price to all customers who purchase products under
essentially the same conditions and quantities
 Flexible pricing (e.g., in channels, business markets, expensive
consumer shopping products) – used in personal selling
 Offering the same product and quantities to different
customers at different prices.

• Influencing factors
• Skimming price policy
• Penetration pricing policy
• Introductory price dealing: temporary price cuts to speed new
products into a market.
• Basic list prices: are the prices final customers or users are
normally asked to pay for products.
• Value pricing – setting a fair price level for a marketing mix that
really gives the target market superior customer value.

• Demand
• Costs
• Competition

Quantity
Price
Initial
skimming
price
Second
price
Final
price
Skimming Pricing
Sell at high
price before
reducing to
next price level
and repeat
“Skim the
cream ” pricing
involves
selling at a high
price to those
who are willing
to pay before
aiming at more
price-sensitive
consumers
when demand
is quite
inelastic.

Penetration
pricing involves
selling the whole
market at one low
price when the
demand curve is
fairly elastic.
Penetration Pricing
Whole
market price

• Introduction – skimming or penetrating
• Growth – lower the price
• Maturity – meeting competition, i.e. pricing at the market.
• Decline – lower the price further

• Discount: are reductions from list price given by a seller to
buyers, who either give up some marketing function or provide
the function themselves.
• Quantity discounts - to buy larger quantities.
• Cumulative quantity discounts
• Noncumulative quantity discounts
• Seasonal discounts – to buy earlier.
• Payment terms and cash discounts
• Trade discounts - to channel members.
• Sale price – temporary price cuts.

• Cash discounts – to pay quickly
• Net: payment for the face
immediately.
value of the invoice is due
• 2/10,net 30: the buyer can take a 2% discount off the face value
of the invoice if the invoice is paid within 10 days. The full face
value is due within 30 days.

• Allowances: like discounts are given to final consumers, customers,
or channel members for doing something or accepting less of
something.
• Advertising allowances – to channel members for promotion.
• Stocking allowances – to intermediaries for shelf space.
• Push money(or prize money) allowances – to retailers to pass on
to the salesclerks for selling certain items.
• Trade-in allowances (given the used products when similar new
products are bought) – for used products.
• Rebates – refunds to consumers after a purchase.

Common
Geographic
Pricing
Policies
F.O.B.
Uniform
Delivered
Freight
Absorption
Zone

FOB: free on board
• Zone pricing: making an average freight charge to all buyers
within specific geographic areas.
• Uniform delivered pricing: making an average freight charge
to all buyers.
• Freight absorption pricing: absorbing the freight cost so that a
firm’s delivered price meets the nearest competitor’s.

• In pricing, an organization first must decide on its
pricing goal.
• The next step is to set the base price for a product.
• The final step involves designing pricing strategies that
are compatible with the rest of the marketing mix.
• Many strategic questions must be answered:
• Will our company compete on the basis of price or
other factors?
• What kind of discount schedule (if any) should be
adopted?

SELECT METHOD OF DETERMINING THE BASE PRICE:
Cost-plus
pricing
SELECT PRICING OBJECTIVE
Price based on
both demand
and costs
Price set in
relation to
market alone
DESIGN APPROPRIATE STRATEGIES:
Price vs. non-price
competition
Skimming vs.
penetration
Discounts and allowances
Freight payments
One price vs.
flexible price
Psychological pricing
Leader pricing
Everyday low vs.
high-low pricing
Resale price
maintenance

• Market-Skimming Pricing: Setting a high initial price for a
new product.
• Works if product is new, distinctive and desired
• Early in Product Life Cycle, when demand inelastic
• Protected by entry barriers, e.g. patents
• Market-Penetration Pricing: Setting a low initial price for a
new product.
• Works if large market, elastic demand
• Economies of scale are possible
• Fierce competition

•Quantity discount: The more you buy, the cheaper it
becomes-- cumulative and non-cumulative.
• Trade discounts: Reductions from list for functions
performed-- storage, promotion.
• Cash discount: A deduction granted to buyers for
paying their bills within a specified period of time, (after
first deducting trade and quantity discounts from the
base price)

14 - 27
1/7, NET 30
Number of days from
date of invoice in
which bill must be
paid to receive cash
discount
Number of days from
date of invoice after
which bill is overdue
3/10, NET 30
Percentage to be
deducted if bill is
paid within specified
time

14 - 28
•Seasonal Discounts
•Forward Dating
•Promotional Allowances

• F.O.B. Point-of-Production pricing: Price quoted at factory-
- buyer pays transportation.
• Uniform delivered pricing: Same delivered price quoted
to all; works if transportation costs small.
• Zone-delivered pricing: Set same price within several
zones, e.g. Maritimes, Quebec.
• Freight-absorption pricing: Seller absorbs transport cost
to penetrate market.

•firms may adopt a one-price strategy or
charge different prices to different customers
•flexible pricing strategies: shoppers may
pay different prices if they buy the same
quantity

• the psychology of pricing suggests that price will convey a
message about the product or service being sold
• leader pricing
• bait pricing
• prestige pricing
• price lining involves setting prices at a small number of fixed
levels within a retail store
• odd pricing is often used to suggest a bargain, while even
pricing is used more in prestige, fashion stores

• Resale Price Maintenance involves a supplier requiring that
intermediaries sell a product at a certain price: illegal in
Canada, firms are allowed to specify a “suggested” retail price
• some firms reduce prices, possibly even below cost, to attract
customers; this form of “loss-leader” pricing is not illegal
unless it persists for a long time with the goal of eliminating
competition (predatory pricing)

MARKETING
MANAGEMENT
UNIT- IV
Dr. M.S. Balaji

Channels of Distribution
 A channel of distribution is an organized network or a system of agencies and
institutions which, in combination, performs all the activities required to link
producers with users and users with producers to accomplish the marketing
task.
 Definitions
 “The structure of intra company organization units and extra company agents
and dealers, wholesale and retail, through which a commodity, product or
service is marketed”. -American MarketingAssociation
 “A set of independent organizations involved in the process of making a
product or service available for use or consumption”.
– Professor Philip Kotler
 Thus, a channel of distribution is a pathway directing the flow of goods and
services from producers to consumers composed of intermediaries through
their functions and attainment of the mutual objectives.

The Role of Marketing Channels
Significance of the channels of distribution can be compared to
the pipeline system or the routes that connect two points. They
are the lifelines in the palm of marketing system.
That is why, Professor Peter Drucker once said “Channels are
primary and products are secondary” and “deserve much
more attention and study than they usually receive”

Channel Functions
A marketing channel performs the work of moving goods from producers
to consumers.
It overcomes the time, place, and possession gaps that separate goods and
services from those who need or want them.
Members of the marketing channel perform a number of key functions
such as
Gather information about potential and current customers, competitors,
and other actors and forces in the marketing environment.
Develop and disseminate persuasive communications to stimulate
purchasing

Channel Functions
Reach agreements on price and other terms so that transfer of ownership
or possession can be effected
Place orders with manufacturers
Acquire the funds to finance inventories at different levels in the
marketing channel
Assume risks connected with carrying out channel work
 Provide for the successive storage and movement of physical products
 Provide for buyers’ payment of their bills through banks and other financial
institutions,
 Oversee actual transfer of ownership from one organization or person to
another.

Factors Considered in Channel Selection
A. Product Factors:
1. Physical Nature: Physical nature of the product. The channel must cope up with
perishability in the product – either physical deterioration or fashion perishability.
E.g. Egg – must be carried safely, Ice-cream – carried in an freezer chamber.
2. Technical Nature: A complicating element is that of product installation and
training the user. On technical products, exclusive dealers may be also to give
advice; in other instances, the manufacturers will be forced to sell directly.
3. The Length of Product-line: A product-line consists of a group of products related
either from a production or a marketing stand point. A manufacturer with a short
product-line is more apt to sell through middlemen than the one who has the full
product-line.
4. The Market Position: An established product made and prompted by a reputed
manufacturer may have a high degree of market acceptance and can be sold easily
and readily through various channels. Frequently, new product sells on the
reputation of the established brands. Such type of trading may result in longer
short-term sales but have greater long-term inherent risks.

B. The Market Factors:
1. The Existing Market Structure: The existing market may be highly
concentrated geographically or it may be widely dispersed. Manufacturers of
baby food, for example, change their channels of distribution after research
that revealed that the Mothers preferred super markets to drug stores.
2. The Nature of the Purchase Deliberation: Some products are purchased on
impulse; with others the purchase is important enough for the consumer to
make a rational deliberation. The consumer who purchases an automobile
tyre, for example, has different purchase deliberations that the buyer of a
toothpaste
3. Availability of the Channel: The existing channels may not be interested in
adding products to their assortments , and the channel commander has the
task of winning the cooperation from the channel members.
4. Competitors’ Channels: The distribution channel is used by the competitors
of the channel commanders influence his channel selection.

C. Institutional Factors:
1. The Financial ability of Channel Member: manufacturers aid the retailers
through direct financing either interest-free loans or liberal credit terms.
Credit terms are competitive and willingness to extend credit influences the
channel acceptance.
2. The Promotional ability of Channel Members: the ability of wholesalers
to sell the product quickly as possible. As soon as the product is disposed by
the wholesalers, as soon will be the next consignment made by them.
3. The Post-sale service ability: In many cases, warranty is associated with a
product. The question arises as to which member of the channel will make
warranty adjustments. The retailer distributor is the closest contact with the
consumer and the consumer may expect the retailer to service the product. In
other instances, the product is returned to the manufacturer for service. The
manufacturer have Service Centre at all major points of his region.

D. Unit Factors:
1. The Company’s Financial Position: A company with a strong financial
background can develop its own channel structure.
2. The Extent of Market Control Desired: The channel selection is governed
by the degree of market control desired by the company. Here, market
control implies the ability of the company to bend the behaviour of the
channel members to the will of management.
3. The Company’s Reputation: A company well known for its products, does
not face any difficulty in having easy settlement of channel clutter. A reputed
company needs not go to intermediaries, instead the intermediaries are eager
and pant for having relations. The company reputation is reflected in higher
sales turnover, lower inventory levels, quick replenishment of stocks, easy to
claim settlements and high competitive product strength.

4. The Company Marketing Policies: The company marketing policies
designed and implemented have greater and deeper bearing on the channel of
distribution are advertising – sales-promotion – delivery – after-sale services
– and pricing.
E. Environmental Factors:
 Among the environmental factors, the most significant are three namely,
1. Economic
2. Legal and
3. Fiscal
 Though fiscal is a part of economics, it needs a special treatment as an
independent point.

Marketing
Management
Unit -V
Dr. M.S. BALAJI Ph.D.,

SALES PROMOTION
 DEFINITIONS:
 “Sales promotion is the achievement of short term
marketing objectives by schematic means”.
- Mr. Christian Peterson
 “Sales-promotion’ are those marketing activities
other than personal selling, advertising and
publicity that stimulate consumer purchasing and
dealer effectiveness such as display, shows and
exhibitions, demonstrations and various non-
recurrent selling effort in the ordinary routine”
- American Management Association

Promotion
• communication of information
• influence the buyer
3 methods
Personal Selling
Mass Selling
Sales Promotion

Personal Selling
•direct communication between seller
and buyer
• face2face contact
•Usually used to sell industrial goods and
services
•Also used to sell some expensive
consumer items, eg. Cars, computer
systems

Mass Selling
•communicating with large numbers of
potential customers
• “non”-personal selling
•used when the target market is large
and dispersed
•Advertising is a form of Mass Selling

Sales Promotion includes:
 Point-of-purchase advertising
 specialty advertising
 samples
 coupons
 premiums
 loyalty points / air miles
 rebates
 contests

Promotion People
Sales Promotion Managers
 They manage the Sales Promotion activities
 They decide about in-store coupons, prizes,
contests etc.
 They spend a lot of time visiting the retail
outlets where the product is sold

Objectives Alternative Programmes
Inquiries Free-gifts – mail in coupons for information,
catalog offer –exhibitions – demonstrations,
Product trails Coupons – rupees off specials – Free samples,
contests – premium.
Repurchase On pack coupons – mail in coupons for rebate –
continuity premiums
Traffic buildings Special sales – weekly specials – entertained
events – retailer coupons – premiums
Inventory building Multi-packs – special price on twos –
merchandise allowance – return premiums
Promotional
support
Reusable display case – sales contests for
distributors sales people - promotional
allowance – cooperative promotions

Thank you all
Wish you all the Success

Marketing
Management
Dr. M.S. Balaji Ph.D.,

Syllabus
UNIT-I: Marketing –definition –nature and scope of marketing –
concepts of marketing mix – consumers behaviour - buying motives –
consumer decision making.
UNIT-II: Product –product classification –product policies –product
planning and development - product mix - product life cycle -
branding and packing.
UNIT-III: Pricing –pricing objectives –kinds of pricing –new product
pricing, Steps in price determination – pricing problems.

Unit -IV: Channels of distribution –channel functions – factors considered in
channel selection – retailing and whole selling.
UNIT-V: Sales promotion –objectives –kinds of sales promotion.
Text Book:
Marketing –Dr.N.Rajan Nair.
Reference Books:
1. Marketing management- Philip Kotler
2. Fundamentals of Marketing –William J.Stanton.
3. Marketing Mangement – R.S.N. Pillai and Bhawathi

Marketing Management Overview

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Marketing Management Overview

Ähnlich wie Marketing Management Overview (20)

Mehr von BBAsourashtracollege

Mehr von BBAsourashtracollege (12)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Marketing Management Overview