INTRODUCTION

Marketing 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. The ultimate goal of a marketer is to have an exchange successfully occur.
We use a large variety of goods and services in our daily life. These include items like
toothpaste, toothbrush, soap, oil, clothes, food items, telephone, electricity and many more. How
do all these goods and services reach our home? Obviously the business houses who produce the
goods and services have to ensure that these are to be sold, and so they have to make the
consumers/users aware of their products and place them at points convenient to the consumers.
This involves a number of activities such as product planning, pricing, promotion, use of
middlemen (wholesalers, retailer etc.) for sale, warehousing, transportation etc. All these activities
taken together are termed as Marketing.

Meaning of market:
We know that the businessman produces goods and services for our use. These are not
necessarily produced at the places where they are consumed or used. Even in villages, now-a-days
you find the products manufactured all over India and in other countries. This implies that the
manufacturers must be making efforts to ensure that their products are in demand and reach the
ultimate consumers all over the globe. So, when you go to the market to buy a readymade shirt
you find that there are several options available to you in terms of quality of cloth used, design,
color, price etc. and you can buy what suits most. This also implies that the manufactures assess
the needs of the consumers, their tastes and preferences and plan the products accordingly. Not
only that, they also ensure that people are aware about the product and its features. All these
activities are said to be part of marketing function of any organization. Thus, marketing refers to
the process of ascertaining consumers’ needs and supplying various goods and services to the final
consumers or users to satisfy those needs. Basically, marketing is the performance of business
activities that direct the flow of goods and services from producers to consumers or users. The
American Marketing Association defines marketing as an or generational function and set of
processes for creating, communicating and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its stakeholders.

Meaning of marketing

In simple words, marketing is a process which carries goods from producer to ultimate
consumer. Marketing bridges the gap between consumer and producer. It is in this sense that
 marketing has been defined as “all the activities involved in the creation of place, time and
possession utilities’.
Marketing is thus concerned with handling and transportation of goods from the point of
production to the point of consumption. In this process of carrying the goods from the place of
production to the place of consumption, many hindrances have to be removed. Marketing involves
the creation of three types of utilities viz,

(A) Place Utility:

Goods are to be taken from the place of their origin or production to the place where they are
needed.

(B) Time Utility:

Goods are to be made available at the time when they are needed by the consumers. It means that
they are to be stored and protected against the risks of fire, rain and pests etc.

(C) Possession Utility:

The ownership and possession of these goods are to be transferred from the producer to the ultimate
consumer.

definition:

Marketing is a business term that experts have defined in dozens of different ways. In fact,
even at company level people may perceive the term differently. Basically, it is a management
process through which products and services move from concept to the customer. It includes
identification of a product, determining demand, deciding on its price, and selecting distribution
channels. It also includes developing and implementing a promotional strategy.

Nature of marketing:
Marketing is an Economic Function
1. Marketing embraces all the business activities involved in getting goods and services , from the
hands of producers into the hands of final consumers. The business steps through which goods
progress on their way to final consumers is the concern of marketing.

2. Marketing is a Legal Process by which Ownership Transfers

In the process of marketing the ownership of goods transfers from seller to the purchaser or from
producer to the end user.
3. Marketing is a System of Interacting Business Activities
Marketing is that process through which a business enterprise, institution, or organisation interacts
with the customers and stakeholders with the objective to earn profit, satisfy customers, and manage
relationship. It is the performance of business activities that direct the flow of goods and services
from producer to consumer or user.

4. Marketing is a Managerial function

According to managerial or systems approach - "Marketing is the combination of activities designed
to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or
wants of a selected segment of the market." According to this
approach the emphasis is on how the individual organisation processes marketing and develops the
strategic dimensions of marketing activities.

5. Marketing is a social process

Marketing is the delivery of a standard of living to society. According to Cunningham and
Cunningham (1981) societal marketing performs three essential functions:-
1. Knowing and understanding the consumer's changing needs and wants;
2. Efficiently and effectively managing the supply and demand of products and services; and
3. Efficient provision of distribution and payment processing systems.

6. Marketing is a philosophy based on consumer orientation and satisfaction

7. Marketing had dual objectives - profit making and consumer satisfaction.

SCOPE OF MARKETING:

1. 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.

2. Study of Consumer behaviour

Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in
market segmentation and targeting.

3. Production planning and development

Product planning and development starts with the generation of product idea and ends with the
product development and commercialisation. Product planning includes everything from branding
and packaging to product line expansion and contraction.
4. 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.

5. Distribution
Study of distribution channel is important in marketing. For maximum sales and profit goods are
required to be distributed to the maximum consumers at minimum cost.

6. Promotion
Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is
crucial in accomplishment of marketing goals.

7. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer satisfaction is the major objective
of marketing.

8. Marketing Control
Marketing audit is done to control the marketing activities.

IMPORTANCE OF MARKETING:

The things that every good marketing should cover are advertising, promotions, public
relations and sales.

 Marketing Is Helpful In Development Of An Economy

 Marketing Acts as a Source of New Ideas
 Marketing Acts as a Basis for Making Decisions
 Marketing as a Source of Income and Revenue
 Marketing Creates Employment

FUNCTIONS OF MARKETING:

1] Identify Consumer Needs

One of the first steps the company needs to take is to identify the needs and wants of the consumers
in the market. To do so they must gather information and analyse this information. Once you
understand your customer thoroughly you can base your product design on this information.
2] Planning

The next logical step would be to make a marketing plan. Firstly you must be very clear about the
objectives of the company and what it wishes to achieve. Then you figure out a timeline to achieve
these objectives. And finally, you plan the marketing strategy of your company accordingly.

3] Product Development

As per your consumer research, we then develop the product that suits the needs of the consumer. The
design of the product is also an important factor in many products. Like for example when buying a
car, the design will play a huge factor. There are other factors to be considered like cost, durability
etc

4] Standardisation and Grading

Standardisation means ensuring uniformity in the product. All customers must get the same product
of the same design and quality. And these standards need to be maintained throughout.

Grading is the process of classification of products according to similar characteristics and/or

quality. If the product does not have any predetermined quality or other specifications like say
agricultural products. Grading will ensure the consumer knows your goods are of the highest quality.

5] Packing and Labeling

The package and the label are the first impressions your product makes on the consumer so they are
of essential importance. They are not only to protect and identify the goods but are great marketing
tools. There is proof that an attractive package and label can go a long way in making a product a
success.

6] Branding

One important decision the company has to make is whether they want the product to have an
individual identity in the market or they want it to be recognized by the brand name.

Certain brands enjoy incredible goodwill in the market and it can benefit the product. But you may
also want the product to have a separate identity so it can flourish on its own attributes.

7] Setting up Customer Support Services

Depending on your product there may be a variety of customer services that the company has to set
up. Pre-sales service, consumer helpline, maintenance services, technical support are just some of the
services that your product may require. These are important functions of marketing.
8] Pricing

This may be one of the most important functions of marketing. The price of a product will largely
determine its success or failure. Factors like demand, market conditions, competition prices etc will
be considered to come up with the correct pricing strategy.

One other thing the company must remember that prices of the products should not be changed too
frequently. This leads to confusion in the market.

9] Promotion

This is where you inform the customers of your product and persuade them to buy it. There are four
major promotion methods – advertising, personal selling, sales promotion and publicity. The
company must decide on its best promotion mix, a combination involving all or some of these four
methods.

10] Distribution

Here the company must ensure the correct distribution channel for its product. It will depend on a
variety of factors such as the concentration of the market, shelf life of the product, company’s capital
requirements etc. Inventory management is another important factor the company must look into.

11] Transportation

The physical movement of the goods from its place of production to its place of consumption is
transportation. It is a very important function of marketing. The company must analyse the
geographical boundaries of its market. This will help them choose the correct modes of transportation.

And in the global economy where we live in, there are almost no barriers to international trade. So if
a company wishes to go global transportation will be a key factor in their marketing mix.

12] Warehousing

As we have seen there is always a lag time between the production and the consumption of most
goods. Sometimes the products are seasonal or the supply is irregular or there are production
difficulties. But companies like to maintain a smooth flow of goods. So storage and warehousing of
goods are necessary.
MARKETING PROCESS:

The marketing process includes unearthing the unfulfilled customer needs which also needs
to be realized to the customers. Once this is known the next step is to make those products which
address this need and promote it in a suitable manner after proper marketing research.

THE MARKETING PROCESS STEP:

Part 1 of the Marketing Process: Creating Value for Customers

The first step of the Marketing Process looks at who the customer is and what he needs and wants.
Before any other marketing activities make sense, the company should gain a complete
understanding of the marketplace. For that, it must research the marketplace, as well as customer
needs and wants. Simultaneously, the information about the marketplace and customer data, which
is to say marketing information, must be managed.
The second step of the process is to design a customer-driven marketing strategy. How does a
company do that? It involves first of all market segmentation and targeting. The firm must segment
the market and then target and focus on one or more of these identified segments. This answers
the simple question: What customers do we want to serve? Answering this question and thereby
carrying out a proper segmentation and targeting is necessary because a company cannot serve all
customers in every way. On the contrary, the company should focus its resources on those
customers it can serve best and most profitably. Segmentation and targeting determines who will
be served. The next question is how the targeted customers can be served best, which
involves differentiation and positioning. What is the company’s value proposition, what makes it
more valuable for customers than other companies and which position does it want to achieve in
customers’ minds? Doing that also involves to choose a Marketing Concept, also called Marketing
Management Orientation.
When the marketing strategy is designed, the company can address the third step, which focuses
on constructing an integrated marketing programme, which is the so-called marketing mix. The
purpose of the marketing programme is to turn the marketing strategy into real value for the
customers. Therefore, the marketing programme should deliver superior customer value. The
marketing programme is often called the 4 P’s, consisting of the four marketing mix elements. The
marketing mix consists of the Product, Price, Place, and Promotion. The Product is about designing
a product (or service) which is desirable for the targeted customers and creating strong brands
around these products. Then, they must be priced so as to make them attractive to customers, and
distributed (Place), managing demand and supply chains, to make them available to the targeted
customers. To round the marketing mix off, a promotion strategy must be set up to communicate
the customer value and the value proposition to target customers and convince them to take on the
company’s offer.
The fourth step in the first part of the Marketing Process which aims to create value for customers
is to build profitable customer relationships with target customers. The factor leading to success
in this goes beyond satisfying customers. Instead, the orientation must be creating customer
delight, meaning that the company’s offers exceed customers’ expectations. Then, customers will
repeat the purchase action and stay loyal and profitable for the company. Therefore, this step may
be the most important one in the first part of the Marketing Process. The process which leads to
the creation and maintenance of customer relationships is CRM, Customer Relationship
Management. However, the firm cannot do all of this alone. Creating customer value and
maintaining strong customer relationships also requires strong relationships and collaboration
with marketing partners, which leads to PRM, Partner Relationship Management.

Part 2 of the Marketing Process: Capturing Value in Return

After these four steps have been accomplished, the firm has created value for the right customers
by an integrated marketing programme leading to strong customer relationships. Now, it can reap
the fruit of its work. The fifth step can now focus on capturing value from customers in return.
Capturing value from customers means that the firm is able to create profits and customer equity.
This is based on satisfied, delighted and loyal customers who repeat the purchase action and thus
come back to buy more and again. Hence, the company can capture their value in the long-term,
which is the Customer Lifetime Value (CLV). If all activities are planned and executed properly,
the company will be able to increase its market share and win a greater share of customers to
maximize the value it can capture from customers.
 GOALS AND OBJECTIVES:
1. Building brand awareness
2. Generating a high volume of qualified leads
3. Establishing thought leadership
4. Attributing marketing activities to revenue generation
5. Increasing brand engagement

MARKETING OBJECTIVES:
Marketing objectives are goals set by a business when promoting its products or services
to potential consumers that should be achieved within a given time frame. In other words,
marketing objectives are the marketing strategy set in order to achieve the overall organizational
objectives. A company's marketing objectives for a particular product might include increasing
product awareness among targeted consumers, providing information about product features and
reducing consumer resistance to buying the product.

SMART Approach to Marketing Objectives

When setting objectives, it is very important to ensure that they are specific, measurable,
achievable, realistic and time-specific - or SMART for short. The SMART approach allows a
supervisor to effectively manage the marketing activities and be able to determine how successful
new objectives will be.
The SMART approach can help achieve your marketing objectives by asking the following MAR
Specific
Are the objectives stated in a way that is precise about what you are hoping to achieve?
Measurable
Can you quantify each objective, i.e. can you use a unit of measure, such as a market share in
percentage or dollars, to provide a way to check your level of success?
Achievable
Are your objectives reasonable in terms of what you can actually achieve, or are you setting your
sights too high?
Realistic
Do you have sufficient employees and resources to achieve the objectives you have set? If you
don't, are they likely to be unrealistic?
Time-specific
When are you hoping to achieve these objectives? You need to define a timing plan by using target
timing for each specific objectives.
MARKETING RESEARCH:
Marketing research is "the process or set of processes that links the producers, customers,
and end users to the marketer through information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process. Marketing research specifies
the information required to address these issues, designs the method for collecting information,
manages and implements the data collection process, analyzes the results, and communicates the
findings and their implications."[1]
It is the systematic gathering, recording, and analysis of qualitative and quantitative data about
issues relating to marketing products and services. The goal of marketing research is to identify
and assess how changing elements of the marketing mix impacts customer behavior. The term is
commonly interchanged with market research; however, expert practitioners may wish to draw a
distinction, in that market research is concerned specifically with markets,
while marketing research is concerned specifically about marketing processes.

MARKETING RESEARCH PROCESS:

The marketing research process is a six-step process involving the definition of the problem
being studied upon, determining what approach to take, formulation of research design, field work
entailed, data preparation and analysis, and the generation of reports, how to present these reports,
and overall, how the task can be accomplished.

The first stage in a marketing research project is to define the problem. In defining the
problem, the researcher should take into account the purpose of the study, relevant background
information and all necessary data, and how the information gathered will be used in decision
making. Problem definition involves discussion with the decision makers, interviews with industry
experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups.
Once the problem has been precisely defined, the research can be designed and conducted properly.
Development of an approach to the problem is the second step. This includes formulating an
objective or theoretical framework, constructing analytical models, generating research questions,
hypotheses, and identifying characteristics or factors that can influence the research design. This
process is guided by discussions with management and industry experts, case
studies and simulations, analysis of secondary data, qualitative research and pragmatic
considerations.
The third step involves the formulation of the research design which is the framework or
blueprint for conducting the marketing research project. It details the procedures necessary in
obtaining the required information, and its purpose is to design a study that will test the hypotheses
of interest, determine possible answers to the research questions, and provide the information
necessary for decision making. Conducting exploratory research, precisely defining the variables,
and designing appropriate scales to measure them are also components of the research design. The
issue on how the data should be obtained from the respondents must be addressed. It is also
necessary to design a questionnaire and a sampling plan to select respondents for the study.
Formulating the research design involves the following steps:[1]

1. Secondary data analysis

2. Qualitative research
3. Methods of collecting quantitative data (survey, observation, and experimentation)
4. Definition of the information needed
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis
Fourth is data collection which involves manpower/staff members who operate either in the field,
as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal
interviewing), from an office by telephone (telephone or computer-assisted telephone
interviewing), or through mail (traditional mail and mail panel surveys with pre-recruited
households). Proper selection, training, supervision, and evaluation of staff members helps
minimize data-collection errors.
Data preparation and analysis is the fifth step and includes the editing, coding, transcription, and
verification of data. Each questionnaire or observation form is inspected, or edited, and, if
necessary, corrected. Number or letter codes are assigned to represent each response to each
question in the questionnaire. The data from the questionnaires are transcribed or key-punched on
to magnetic tapes, or disks or inputted directly into the computer. Verification ensures that the data
from the original questionnaires have been accurately transcribed.
Analyzed data gives meaning to the information that have been collected. Univariate techniques
are used for analyzing data when there is a single measurement of each element or unit in the
sample, or, if there are several measurements of each element, each RCH variable is analyzed in
isolation. On the other hand, multivariate techniques are used for analyzing data when there are
two or more measurements on each element and the variables are analyzed simultaneously.
The last stage is the report preparation and presentation. The entire project should be
documented in a written report and the results and major findings must be presented. The findings
must be in a comprehensible format so that they can be readily used in the decision making process.
In addition, an oral presentation should be made to management using tables, figures, and graphs
to enhance clarity and impact.

TYPES OF MARKET:

1. Physical Markets - Physical market is a set up where buyers can physically meet the
sellers and purchase the desired merchandise from them in exchange of money. Shopping
malls, department stores, retail stores are examples of physical markets.
2. Non Physical Markets/Virtual markets - In such markets, buyers purchase goods and
services through internet. In such a market the buyers and sellers do not meet or interact
 physically, instead the transaction is done through internet. Examples - Rediff shopping,
eBay etc.
3. Auction Market - In an auction market the seller sells his goods to one who is the highest
bidder.
4. Market for Intermediate Goods - Such markets sell raw materials (goods) required for
the final production of other goods.
5. Black Market - A black market is a setup where illegal goods like drugs and weapons are
sold.
6. Knowledge Market - Knowledge market is a set up which deals in the exchange of
information and knowledge based products.
7. Financial Market - Market dealing with the exchange of liquid assets (money) is called a
financial market.

MARKETING MIX:
The marketing mix (also known as the 4 Ps) is a foundation model . The marketing
mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing
objectives in the target".[1] Thus the marketing mix refers to four broad levels of marketing
decision, namely: product, price, promotion, and place. Marketing practice has been
occurring for millennia, but marketing theory emerged in the early twentieth century. The
contemporary marketing mix, or the 4 Ps, which has become the dominant framework for
marketing management decisions, was first published in 1960. In services marketing, an
extended marketing mix is used, typically comprising 7 Ps, made up of the original 4 Ps
extended by process, people, and physical evidence. Occasionally service marketers will
refer to 8 Ps, comprising these 7 Ps plus performance.

MARKETING STRATEGY:
Marketing strategy is a long-term, forward-looking approach to planning with the
fundamental goal of achieving a sustainable competitive advantage.[1] Strategic planning involves
an analysis of the company's strategic initial situation prior to the formulation, evaluation and
selection of market-oriented competitive position that contributes to the company's goals and
marketing objectives.
Strategic marketing, as a distinct field of study emerged in the 1970s, and built on strategic
management that preceded it. Marketing strategy highlights the role of marketing as a link between
the organization and its customers.

STEPS IN MARKETING STRATEGY:

Mission Identification

The first step in strategic marketing is to articulate the reason why the enterprise exists and how it
can benefit target consumers over the long term. In particular, this mission statement is intended
to anticipate the future and describe an ongoing role for the organization's product, service or
expertise. For example, the mission of an aerospace firm might be to provide continuing innovation
in global transportation. A hospital could state a mission to take the lead in improving public health
and education.
Situation Analysis

Organizations conduct a situation analysis, also known as a SWOT, to evaluate and prioritize their
strengths, weaknesses, opportunities and threats. This second step in the strategic marketing
process helps managers understand the resources they can build on and the challenges they will
encounter. Strengths and weaknesses are considered internal factors, under the firm's control. For
example, a good image in the fashion press would be a key strength for a dress manufacturer, while
a poorly maintained relationship with clothing retailers would be considered a weakness.
Opportunities and threats arise from the external environment, such as a strong economy or a new
payroll tax.
Marketing Objectives

The third step in strategic marketing is to set marketing objectives. These are clear, measurable
goals that give decision makers a basis for making choices and assessing progress. Objectives are
typically expressed in terms of one or more quantitative targets like revenue, profit, sales or market
share. Importantly, each objective must be achievable within a fixed period of time. For example,
aiming for a five-percent increase in profits might be realistic within a year, but probably not within
one quarter.
Strategy and Evaluation

The fourth step in strategic marketing is strategy development. This involves selecting a target
market, or a distinct group of consumers who are more than likely to buy the firm's product or
service. Marketing planners must also choose implementation tactics, specifically, effective ways
to use the marketing mix tools of product, promotion, price and distribution to reach and influence
prospective buyers. The fifth step, evaluation, means specifying how, when and by whom these
tactics are to be monitored and assessed over time.
TYPES OF MARKETING STRATEGY:

Interactive

Interactive marketing refers to a marketing strategy that encourages active participation between
the consumer and the marketing campaign. This term often refers to a fast-growing shift from one-
sided customer interaction to a two-sided conversation. Interactive marketing is becoming a trend
because of customers’ demand for a better online experience and improved internet technology.

Customers want a company to know who they are as individuals, not as a demographic or just a
number. For instance, every time a customer logs into a company’s website, the person may want
to see his or her name displayed along with product interests and communication preferences.

Interactive marketing gives customers the power to receive and give up-to-date, minute-to-minute
feedback on the particular business or product. When you think about interactive marketing, a
great example is Amazon. Amazon is known as the biggest trailblazer in this marketing area.

The company collects and saves information about customers' searching and buying behavior. It
also remembers customers’ names, provides suggested reading sections for book searches,
suggested products based on past shopping behavior, and consistently asks for the customers
feedback on items they have purchased.

Digital

Digital marketing is a marketing campaign that takes place using a digital platform. Digital
defines the medium used to deliver the campaign. Digital marketing could easily be considered
and explained as a “push/pull” marketing technique. If you’re not familiar with marketing
campaigns, it’s your advertising blitz to sell your service or product.

The “push” part allows you to get in touch with consumers and inspire them to buy your service
or product. There are a lot of ways to achieve the push—technologies such as instant messaging,
text messaging, content marketing, podcasting, mobile marketing, and email. Also, there are many
marketing tools you can use like pay per click, search engine optimization, and even online banner
advertising.
The “pull” technique occurs when consumers take the initiative to locate your business via an
online search via digital marketing.

For instance, they may perform a search on the internet using your name. The customers then
establish a link, via your website, where they can easily contact your company or keep track of
your business. For example, they may sign up for text messages, streaming video, emails, or
podcasts on your website. So, you’re pulling in, or attracting, customers.

Internet or Online
Internet or online marketing is a marketing campaign that requires an internet connection. This
marketing technique allows you to reach customers, conduct research, and sell your product or
services over the internet. For example, you can promote your company’s message. The definition
varies according to how it’s used. A home business person may refer to this marketing as selling
over the internet.

However, if you have a website, you may refer to it as blogging—writing articles or placing banner
advertisements on other websites to drive traffic to your site. It’s important to note there are many
terms for internet marketing like web marketing, online marketing, and website promotion.

THE ROLE OF MARKETING:

 Understanding the economic and competitive features of a sector
 Identifying target markets
 Identifying segments within a target market
 Identifying most appropriate strategies
 Commissioning, understanding and acting upon market research
 Understanding competitors and their strategies and likely responses
 Developing new products
 Auditing customers’ brand experience
 Establishing environmental scanning for opportunities and threats
 Understanding an organisation’s strengths and weaknesses
 Creating a sustainable competitive advantage
 Understanding where a brand needs to be in the future
 Creating and delivering marketing plans to get there
 Establishing management information systems to identify progress

7 P’S OF MARKETING:
The 7 Ps are a set of recognised marketing tactics, which you can use in any combination to satisfy
customers in your target market. The 7 Ps are controllable, but subject to your internal and external
marketing environments. Combining these different marketing tactics to meet your customers'
needs and wants is known as using a 'tactical marketing mix'.

Product

Product refers to what you are selling, including all of the features, advantages and benefits that
your customers can enjoy from buying your goods or services. When marketing your product, you
need to think about the key features and benefits your customers want or need, including (but not
limited to) styling, quality, repairs, and accessories.
Price

This refers to your pricing strategy for your products and services and how it will affect your
customers. You should identify how much your customers are prepared to pay, how much mark-
up you need to cater for overheads, your profit margins and payment methods, and other costs. To
attract customers and retain your competitive advantage, you may also wish to consider the
possibility of discounts and seasonal pricing..

Promotion

These are the promotional activities you use to make your customers aware of your products and
services, including advertising, sales tactics, promotions and direct marketing. Generally these are
referred to as marketing tactics.

Place

Place is where your products and services are seen, made, sold or distributed. Access for customers
to your products is key and it is important to ensure that customers can find you.

You can set yourself apart from your competition through the design of your retail spaceand by
using effective visual merchandising techniques. If you are not a retail business, place is still an
important part of your marketing. Your customers may need a quick delivery turnaround, or want
to buy locally manufactured products.

If you are starting a new business, finding the right business location will be a key marketing tactic.

People

People refer to the staff and salespeople who work for your business, including yourself.

When you provide excellent customer service, you create a positive experience for your customers,
and in doing so market your brand to them. In turn, existing customers may spread the word about
your excellent service and you can win referrals.

Give your business a competitive advantage by recruiting the right people, training your staff to
develop their skills, and retaining good staff.

Process

Process refers to the processes involved in delivering your products and services to the customer.
It is also about being 'easy to do business with'.

Having good process in place ensures that you:

 repeatedly deliver the same standard of service to your customers

  save time and money by increasing efficiency.

Physical evidence

Physical evidence refers to everything your customers see when interacting with your business.
This includes:

 the physical environment where you provide the product or service

 the layout or interior design
 your packaging
 your branding.

Physical evidence can also refer to your staff and how they dress and act.

CUSTOMER SATISFACTION:
Customer satisfaction (often abbreviated as CSAT, more correctly CSat) is a term frequently
used in marketing. It is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals."

REASON WHY CUSTOMER SATISFACTION IS IMPORTANT:

Customer satisfaction is the key to both customer retention and customer acquisition. Satisfied
customers are not only likely to purchase from you again; they also have the potential to become
brand advocates and share their great experiences with others, both online and offline.
On the other hand, unsatisfied customers are unlikely to return to a business without additional
support, and often spread negative word-of-mouth, deterring more potential customers from your
business.

Measuring customer satisfaction

It is imperative for businesses to monitor customer satisfaction levels. They often do this with
customer satisfaction surveys. Customer satisfaction surveys are invaluable resources for many
reasons. They help companies measure satisfaction, find unhappy customers, and identify potential
brand advocates.
Customer satisfaction ratings
These can have very beneficial effects. Good ratings keep employees focused and motivated on
exceeding customer expectations. Low ratings provide warnings of potential pain points that may
affect revenue in the future.

Customer satisfaction metrics

Customer satisfaction metrics help you understand how happy or unhappy your customers are
overall, which is critical for customer retention: 96% of unhappy customers don’t complain, but
91% of them never return (1Financial Training Services). Despite common assumption, price is
not the primary reason for customer churn--poor customer service is (Accenture global customer
satisfaction report). Asking every customer for feedback helps you discover unhappy customers
and fix their problems before they decide not to return.