General Awareness - SPLessons

Chapter 20

Marketing

Marketing

Marketing as defined by American Marketing association is “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”. In general, marketing is the management process through which goods and services move from concept to the customer.

Marketing is a coordination of the following processes, commonly known as the 4 P’s of marketing: Product, Price, Place, Promotion. 

(1) identification, selection and development of a Product,

(2) determination of Price,

(3) selection of a distribution channel to reach the customer’s Place, and

(4) development and implementation of a Promotional strategy.

In other words, Marketing is the way toward arranging and executing the origination, evaluating, advancement and conveyance of thoughts, goods and administrations to engage in trades that fulfill individual and organizational objectives.


Nature of Marketing:

  • Marketing is a human activity.
  • Marketing is a social-economic activity.
  • Marketing is consumer-oriented process.
  • The core of marketing is product or service.
  • Marketing is based on exchange.
  • Marketing is both art and science.
  • Marketing is a universal activity.

Scope of Marketing:
The scope marketing has been increased a lot in this modern time. The following are now included under the scope of marketing.

  • All the choices identified with item like size, color, plan, bundling, and so on are brought with active participation of marketing department of the organization.
  • All the choices identified with the customers are taken in the wake of having examined the consumer’s responses with respect of various items, distinctive costs and brands.
  • All promotional decisions like choosing type of marketing media are also being taken under activity.

Concepts of Marketing:
Marketing is based on many ideas as per the introduction and view of the firms about the business and market place.
Exchange Concept:
This concept of marketing indicates that the exchange of a product between the seller and buyer is necessary.
Production Concept:

  • Production dominates the thinking process of the consumers.
  • Products produced in a great volume at a low unit cost are supported by the consumers.

Product Concept:
Good and quality products are provided to the customers.
Sales Concept:
Large sales promotion is believed to maximize the selling.
Marketing Concept:

  • Organization focuses on the consumer.
  • Consumer is at both the beginning and the end of the business cycle.
  • Consumer needs and aims at the satisfying those needs are determined.

Product Planning and Development:

  • The task of marketing begins with planning and designing a product for the consumers.
  • It can also be done while modifying and improving an existing product.
  • The marketers gather information regarding the needs of the consumers and then decide what to produce.

Objectives of Marketing:

  • Provide satisfaction to customers.
  • Increase the demand.
  • Provide better quality product to the customers.
  • Create Goodwill for the Organization.
  • Generate profitable sales volume.

Role of Marketing:

  • Role of Marketing in Business.
  • Role of Marketing in Society.

Consumer Behaviour:
The following elements constitute the consumer behavior.

  • Want of consumer.
  • Attitude of consumer.
  • Decision making in purchase process.
  • Finding out the problems relating to purchase.

Steps in consumer behavior:
These are the stages of consumer behavior
Problem Recognition Alternative Search Evaluation of Alternatives Test of product Purchase Decision Post purchase Evaluation.
A consumer behavior is influenced by cultural, social, personal and psychological factors.
Sales Promotion:
Some of the objectives of sales promotion are listed below

  • Information to customers
  • Persuades customers
  • Increase in sales volume
  • Incentive to retailers
  • Create product identity

Sales promotion tools and Programmes:
Sales promotion techniques are known as promotion tools and the mode of their application tools and the mode of their application is known as sales promotion.
These tools and programmes are divided into two broad heads.

  • Tools and Programmes for consumer’s sales promotion.
  • Tools and Programmes for dealer/distributer sales promotion.

Advertising:
The characteristics of advertising may be stated as follows.

  • Impersonal
  • The idea is to promote goods or services
  • Sponsorship
  • Paid form of communication

Objectives of Advertising:

  • Introduction of new product
  • Increase in sale
  • Maintaining existing buyers
  • Create and enhance goodwill of the firm
  • Create and enhance brand image
  • Helps in personal selling

Media of Advertising:
Promoting media are the methods through which messages with respect to items and services are transmitted from the advertising firm to individuals at whom that item is targeted.
Many types of Medias are available for the purpose.
Press Advertising:

  • Newspaper Advertising
  • Magazine Advertising

Outdoor Advertising:

  • Banners
  • Posters
  • Hoardings
  • Bus Advertising
  • Electric display
  • Advertising

Direct mail Advertising:

  • Post cards
  • Circular
  • Personal Letters
  • Booklets
  • Monthly Magazines
  • Sales letters

Electronic Advertising:

  • Radio
  • Cinema
  • Television
  • Film
  • Loudspeaker
  • Video cassette

Entertaining Advertising:

  • Drama
  • Fairs
  • Music Programmes
  • Exhibitions
  • Educational programmes

Point of purchase advertising:

  • Window display
  • Counter display

Modern Advertising:

  • Satisfied customer
  • Past customer
  • E-mails
  • Mobile
  • E-commerce

Advantages of Advertising:
Advertising plays an important role in business and society.
The advantages of advertising is explained below

  • Benefits Consumers
  • Benefits manufacturers
  • Benefits society

Consumer protection Act, 1986:
Consumer protection Act was passed in 1986 and it came into power from 1 July, 1987. The main principle goals of the act are to provide better and all round protection to consumers and successful protection against different types of exploitation such as defective goods, deficient services and unfair trade practices.
Goods and services covered under CPA, 1986:
The term goods under this act has the same meaning as under the sale of goods Act.
Appropriately it covers all types of property other than money and incorporates stocks and shares growing crops. The term service means service of any description made accessible to potential clients and includes banking, housing construction, finance, insurance, entertainment, transport, and supply of electrical and other energy, boarding and lodging, amusement. The services of doctors, engineers, architects, lawyers etc. are also to be included under the provisions of Consumer Protection Act.
Machinery for Settlement of Grievances:
The judicial machinery set up under the consumer protection act 1986 consists of consumer courts at the district, state, national levels.

  • District Consumer forums
  • State Commission
  • National Commission

Marketing Planning:
Concept of bank marketing:

  • The bank marketing concept evolved following the significant increase in the developed countries of the financial sector and implicitly the banking sector.
  • The adaptation of the bank marketing concept as an assembly of strategic and tactical decisions adopted in the management process and the bank existence, implies the consideration of the following elements.
  • Satisfaction of customer needs, increasing the bank profitability, employees involvement, social responsibility.

Rule of Marketing in Banking:

  • The marketing management philosophy that holds achieving organizational goals depends on knowing the needs and wants of target market and delivering the desired satisfactions better than the competitors.
  • The banking and marketing are the two different terminologies because banks provide the services so that is why bank use the service marketing tool in the banking industry.

Banking products:
Banks offer a number of tangible and intangible products which can be considered as follows
Cheque:
Cheque may be of three types
Bounced Cheque:
A cheque that a bank has refused to cash or pay as the account holder doesn’t have sufficient funds to cover in this account.
Cashier cheque:
A Cheque issued by a bank or drawn on its own funds rather than on the funds of depositors.
Clear:
A cheque is cleared when its account is debited
Bank Draft:
A cheque drawn by one bank against funds deposited into its account at another bank, authorized individual named in draft.
Plastic Money:
Plastic money emerged at the end of 20th century following the introduction of credit cards. PIN number is required to perform transactions with the plastic money.
Examples of plastic money are Credit cards, Debit cards, ATM cards, Smart cards.
NRI Banking:

  • Banks allow the NRI’s to open an NRI account when they complete the account opening formalities.
  • The customers can have a NRI saving account, current account, fixed deposits in Indian rupees, fixed deposits in foreign currency, NRO account, saving account.
  • A saving account helps people to make day to day transactions besides earning some return on the savings mode.


1. Marketing intermediaries are?
A. retailers
B. firms that help the company promote, sell and distribute its goods to final buyers
C. purchasers
D. wholesalers
Answer-B
2. The most basic concept underlying marketing is that of?
A. wants
B. products
C. needs
D. customer satisfaction
Answer-C
3. The difference between total customer value and total customer cost is?
A. customer satisfaction
B. customer dissatisfaction
C. customer retention
D. customer delivered value
Answer-D
4. The buyer’s black box refers to?
A. brand and delivered value
B. buyer characteristics
C. Marketing stimuli and buyer responses
D. Buyer characteristics and buyer decision process
Answer-D
5. Which segmentation form to marketers depend on most?
A. Geographic
B. Demographic
C. Psychographic
D. No one method is used most
Answer-D
6. New product idea generation can come from?
A. customers
B. distributers/suppilers
C. competitors
D. All of these
Answer-D
7. Two major movements that aim to keep business in line are?
A. Green peace and the sierra club
B. Australian senator’s brown and stott-Despoya
C. Consumerism and environmentalism
D. Helen Wellings and Reverend Fred Nile.
Answer-C
8. The end use specialist is one of several specialist roles open to?
A. Market challengers
B. Market nichers
C. Market followers
D. Market Leaders
Answer-B
9. Which of the following is an e-Business?
A. Entertainment Services
B. Financial Business
C. Marketing Channels
D. All of these
Answer-D
10. Marketing Channels means?
A. Delivery Objects
B. Sales targets
C. Delivery Outlets
D. Delivery boys
Answer-C