Psychology

1. Pavithra Narasimhan

2. Why marketing?
The Main objective of any business organization
is to satisfy the needs and wants of the society
•Production or purchase is of no meaning if a
firm is unable to market its goods and services
• Marketing is the focal point of all business
activities

3. What is Marketing?
Management definition :
It is the process of planning and executing the
conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges
that satisfy individual and organizational goals.
Social definition :
A societal process by which individuals and
groups obtain what they need and want through
creating, offering and freely exchanging products
and services of value with others – Philip Kotler

4.  Comparison
Traditional View :
Performance of business activities that direct
the flow of goods and services from producers to
consumers or users
Modern View :
A business process through which products are
matched with the markets and through which
transfer of ownerships are effected

5. The American Marketing Association has
defined marketing as
“an organizational function & a set of processes
for creating, communicating & delivering value
to the customers & for managing customer
relationships so as to benefit the organization &
the stake holders.

6. Market : It consist of all the potential
customers sharing a particular need or want
who might be willing and able to engage in
exchange to satisfy that need or want.

8. Number of buyers
and sellers
Type of
Product
Transparency
of Information
Competition
Monopolistic
Oligopoly
Those characteristics of the market that
significantly affect the behaviour and interaction of
buyers and sellers.

9.  Marketing management orientations are different marketing
concepts that focus on various techniques to create, produce
and market products to customers.
 There are five main marketing management orientations
which are
 THE PRODUCTION CONCEPT (LOW
PRICES,AFFORDABILITY & AVAILABILITY)
 THE MARKETING CONCEPT(TARGET AUDIENCE)
 THE SELLING CONCEPT (SELLING ACTIVITIES)
 THE PRODUCT CONCEPT(QUALITY)
 THE SOCIETAL MARKETING C(ONCEPT(SOCIETAL &
CUSTOMER WELL BEING)

10.  On the basis of Area/Region.
 1. Local Market- When buyers and sellers are limited to an
area or region then the market is called local market.
 2. Regional Market- When buyers and sellers are
concentrated to a certain region/area. The area is wide then
the local market.
 3. National Market- When the demand of a commodity is
limited the boundary of the country.Eg. Market of Gandhi
cap , Nehru Cap
 .4. International Market- When the demand of a commodity
crosses the boundary of a country.

11.  On the basis of Time Element
 1. Very Short- Supply of a Good is limited. Cannot increase
the supply. Demand determines the price of such
commodities
 .2. Short Period- Production can be increased. Demand plays
an important role in price determination.
 3. Long Period- Supply can be adjusted to the quantity
demanded. Supply plays an imp role in price deter. Also
called Normal Price.
 4. Very long- Both demand and supply can be changed.
Demand Inc with the inc in tastes, habits, fashion etc. and
Supply inc with the inc in variable inputs.

12.  Market based on competition•
 Perfect Market- Where there is Homogeneous products. Free
Entry and exit from market of a firm. Perfect knowledge of
market condition, and perfect mobility of factors of
production.•
 Imperfect- Where perfect competition is not in existence.
Number of buyers and sellers are small. No perfect
Knowledge of market conditions. There is no single price in
this market.

13.  On the basis of Functions•
 Mixed/General market- Where all types of good are bought
and sold. Found in cities.• Specialized market- Where
particular commodity is sold, e.g. vegetables, food grains
cloths etc.•
 Marketing by Samples- When goods are bought and sold on
the basis of samples. E.g. Oil seeds, raw cotton.•
 Marketing by grades- When the goods are graded then
different buyers and sellers deal in such goods on the basis
of their grades.

14.  On the basis of nature of commodity
 Product Market- Where particular product is bought and
sold. E.g. Agri product sold in agri market (krishi Mandi).
 Stock Market- Market where stock and shares, bond,
securities debentures etc are bought and sold.
 Bullion Market- Market where Silver and Gold are bought
and sold. In this market metallic trading takes place.

15.  Market based on legality
 Legal Market- Where legal Transactions of goods and services
take place. Recognized by the Govt. Also called fair market.
 Illegal market- Where high prices are charged what have been
fixed by the Govt. Happens when supply is short. Business
earn profits by indulging in Black Marketing, Smuggling.
 Hongkong market is an illegal market.

16. Two types of marketing environment:
Micro-environment – Consists of factors close to the
company that affect its ability to serve its customers. The
company itself, marketing channel firms, customer markets
& a broad range of publics (formulating strategy)
Macro-environment – Consists of the larger societal forces
that affect the entire microenvironment. – Demographic,
economic, natural, technological, political, competitor, and
cultural forces

17.  Marketing management’s job is to build relationships by
creating customer value & satisfaction. The success of
marketing plans requires working closely with the company’s
microenvironment.

18.  The major external and uncontrollable factors that
influence an organization's decision making, and affect
its performance and strategies. These factors include
the economic factors; demographics; legal,
political, and social conditions; technological
changes; and natural forces. Specific examples of
macro environment influences include competitors,
changes in interest rates, changes in cultural tastes,
disastrous weather, or government regulations.

19.  Generation Y:
Born between 1979 and 1994, size = marketing impact, fickle
and skeptical group.
o Generation X: Born between 1965 and 1978, time premium,
majority have children and houses, savvy and cynical
consumers .
o Baby Boomers: Born between 1946 and 1964 Younger
Boomers (ages 41 to 49) – Home is the castle, spend on kids
o Older Boomers (ages 50 to 59) – Spend on home upgrades &
Holidays

20.  Needs - state of felt deprivation including physical, social,
and individual needs i.e hunger
 Wants - form that a human need takes as shaped by culture
and individual personality i.e. bread
 Demands - human wants backed by buying power i.e.
money

21.  Exchange is the essence of marketing.
 Marketing is customer/ consumer oriented.
 Marketing starts and ends with customers/ consumers.
 Modern marketing precedes and succeeds production.
 Marketing is goal oriented and the goal being profit
maximization through satisfaction of human needs.
 Marketing is a science as well as an art.
 Marketing is the guiding element of business (It tells what,
when, how to produce; Marketing is capable of guiding and
controlling business.
 Marketing is a system .
 Marketing is a process, i.e., series of interrelated functions

22.  Study of Consumer Wants and Needs: Goods are produced to
satisfy consumer wants. Therefore study is done to identify
consumer needs and wants. These needs and wants
motivates consumer to purchase.
 Study of Consumer behaviour: Marketers performs study of
consumer behaviour. Analysis of buyer behaviour helps
marketer in market segmentation and targeting

23.  Product Planning and development :
It includes the activities of product research, marketing
research, market segmentation, product development,
determination of the attributes, quantity and quality of
the products.
Branding:
Branding of products is adopted by many reputed
enterprises to make their products popular among their
customer and for many other benefits. Marketing
manager has to take decision regarding the branding
policy, procedures and implementation programs.

24.  Packaging: Packaging is to provide a container or wrapper to
the product for safety, attraction and ease of use and
transportation of the product.
 Channels of Distribution: Decision regarding selection of
most appropriate channel of distribution like wholesaling,
distribution and retailing is taken by the marketing manager
and sales manager.
 Pricing Policies: Marketer has to determine pricing policies for
their products. Pricing policies differs form product to
product. It depends on the level of competition, product life
cycle, marketing goals and objectives, etc

25.  Sales Management: Selling is a part of marketing. Marketing
is concerned about all the selling activities like customer
identification, finding customer needs, persuading customer
to buy products, customer service, etc. •
 Promotion: Promotion includes personal selling, sales
promotion, and advertising. Right promotion mix is crucial in
accomplishment of marketing goals.
 Finance: Marketing is also concerned about the finance, as
for every marketing activity be it packaging, advertising, sales
force budget is fixed and all the activities have to be
completed with in the limit of that budget.