What is a market?

 Traditionally before market was considered a place where buyers and sellers interact
and conducted transaction i.e. exchanged goods and services
 This term is used in day to day language.
 But its used as product market too (cotton, gold, share) or acc to geo areas (national,
international) or buyers(consumer, industrial)or quantity(retail, wholesale).
 But now acc to modern marketing concept, market is a broad concept not just a place.
 Now market is the actual and potential (willing to buy in future but paying now)
buyers of product.
 For example, if a fashion designer made a new dress, the people willing to buy that
and ready to give money will be included in money.
 Market has its actual and potential buyers.

What is marketing?
 Different people describe it differently
 Some say its shopping ie if we buy some product or service we say that’s marketing
 Some say its selling and think that marketing starts when product is made only after
that
 Some say that marketing is a merchandise, making a design of product.
 All of this is partly correct but marketing is a broad concept.
 Traditionally marketing means those functions or activities through which product
reaches the consumers
 Many manufacturing firms produce goods, they don’t produce for themselves but for
others to use.
 So that goods can move from producers to consumers, for that we perform various
activities such as merchandising, transportation, branding, selling and all these
activities are called marketing.
 Marketing is not just a post production activity, marketing starts way before
production starts.
 Activities which start before production and performed even after the product is sold
 For example to know our customers needs before product is made, to collect
information about the demand of product, product packaging, brand name etc. is
done before production
 And some follow up activities like making good relations with customers so that
repeat sale can happen.
 Acc to Modern concept, marketing is said to be a social process.
 Social process because under this people exchange goods and services but not in
free, by giving something of value.
 Thus marketing is a social process because buyers and sellers try to persuade each
other, not force.
 They purchase Goods and services rather than forcing each other
Features of marketing
1. Needs and wants
 With the help of marketing, we get the product which we require, that product
is made available to us.
 Main reason of marketing is so that we can satisfy our needs and wants- needs
of customers and org
 Need- We feel that we are deprived of something. if need is not fulfilled, we
remain unhappy and uncomfortable
 For example, if you are hungry, you’ll feel uncomfortable and search for the
things to satiate your hunger.
 Needs are basic things for human beings and its not necessarily a particular
product eg. Woodland shoes but need is a shoe to escape cold.
 But wants- if human needs are shaped acc to their culture, religion then they
are called wants
 For example, a south Indian would want a dosa but a north Indian would love
roti and sabzi.
 So a marketer tries to find what actually is the need of customers and make an
exact product or services to satisfy need of customers.

2. Creating a market offering

 Market offering refers to the complete offer of the product or service. Offers
like size, quality, taste, location availability etc.
 Suppose you’re offering your cell phone in 4 different versions on features
like memory size, connectivity to tv/ internet, camera but range is different
5,000-20,000. For more features the prize will increase.
 It will be available in all metropolitan cities.
 A good market offer is when marketer analyses the needs and wants of
customers (product, features, prize) and to accomplish that need, he gives an
offer.

3. Customer Value
 Because of marketing, buyers and sellers exchange goods and services.
 Buyers take buying decisions whether to buy the product or not) by comparing
it’s cost ( to see if he’ll get benefit/ if it has value/ if he’ll get satisfied- he buys
the product)
 The buyer will purchase the product if he’s getting benefit from the cost he’s
incurring
 Main job of marketer is to make the product valuable so that the customers
value and buy our product rather than our competitor’s product.

4. Exchange Mechanism
  2 individuals- buyers and sellers exchange products. Sellers sell the product to
buyers and buyers in return, give a valuable item or money
 In exchange, 2 or more people were involved, they talked, and exchanged
product and services with each other
 For example if a man is hungry, he has to pay money or a product in return so
that the other person accepts it.
 In modern world, goods are produced in different places and are going to be
sold in other places also. Product is exchanged at different levels like
middlemen, agents, wholesalers, retailers ( who exchange)
 Conditions which are important if you want to exchange:-
i. 2 parties must be present- buyers and sellers and both people should be
capable of giving valuable things to each other
ii. Both the parties should be able to communicate. If I’m a buyer and
cant see the product or have no knowledge then why would I buy his
product? So communication in between is necessary. No exchange will
be possible
iii. Both parties should have the freedom to accept or reject the offer. If
I'm buying a product, the seller has the right if he wants to sell at a
price reduced by me
iv. Both the parties should be willing to carry out transaction so
everything will be according to choice, no type of compulsion, no one
will force each other.

What can be marketed?

 It’s a common question whether we can do marketing about a product, a service or
something else?
 Product are things which give us satisfaction. Things through which our needs, wants
are fulfilled
 It is not necessary that it has to be a physical thing eg. Busicuit, pencil, wall. Its not
only restricted to that but also to other things of services such as services of doctors,
lawyer etc.
 In marketing term, if we buy a product of great value, it can be called a product.
 Product can be tangible (which we can feel, see or touch like pencil, cycle). These can
be intangible too like services ( cant be seen or touched like doctor’s services of your
teeth pain, lawyer fights a case)
 Along with product marketing, service can also be marketed.
 So anything which is valuable or expensive or beneficial in the eyes of buyer, it can
be marketed
 It can be a product, service, person, place, idea, event or organization
 Examples
 physical product- dvd player, motorcycle
 services- insurance
 ideas- polio vaccination
 person- election
  place- tv advertisement
 experience- dinner with dhoni
 property- new plot or flats
 event- sport event
 information- packaging
 organization- any company ad
Who is a marketer?
 Marketer is a person who is a part of exchange process. When exchange process is
going on, the one who’s going to participate the most is the marketer.
 Normally, seller takes a more active part (because he wants his goods to be sold to get
money) and finds the needs of customers and according to that he will get the market
offering ready and then persuades/ convinces his buyers to buy his particular product.
So you have seen how active this marketer is, how much he is getting involved in this
process to sell his product.
 However, there are certain situations the buyer plays a very active role in this process.
 Situations of rare supply in which supply is very less but the demand is very high. In
these cases the buyer is very active, buyer puts extra efforts to convince the seller to
sell him particularly.
 This case can be seen in defense deals or buying nuclear fuels.
 Buyer puts efforts but in this case, the buyer has to convince the seller or supplier that
“I’ll use your product with peaceful purpose and for sustainable use”. In this case,
buyer will become a marketer.
 Marketer can be anyone, whoever is more active or plays a more active role in this
process will be called a marketer.

Marketing management
 Functions related to marketing whether sales related, production, customer service,
managing all that is called marketing management.
 Planning, organizing, directing and controlling all the activities. What activities? Help
exchange of goods and services, managing these activities so that goods and services
reach from manufacturers to consumers, is known as marketing management
 Focus of marketing management is that the target market is achieving the desired
exchange outcome
 If we see through the management perspective, marketing is a process of planning,
conception, pricing, distribution ( all these activities) to enable exchange and
alongside, satisfy individual goals ( get product how we want) and organizational
goals.
 Philip Kotler says that marketing management is the art and science of choosing target
market, getting, keeping ( how to make them permanent customers), growing (how to
increase customers) through delivering customer values to customers( so that our
product sells in the market)
Process of management of marketing
i. Choosing a target market- suppose a manufacturer has chosen his target
market as 5 year olds. Readymade garments for 5 year olds
ii. After choosing target market, focus is on getting, keeping, growing customers.
That means that marketer has to maintain demand for the product, only then
the target customers will buy his product.
iii. We have to try to keep our customers satisfied and alongside, we have to try to
attract more customers to grow further.
iv. To achieve this objective, we have to create a superior value ( that’s unique
and good) so customers get attracted and communicate these values to our
prospective buyers that “our product has value and you will get benefit by
purchasing it” and convince them.

 We perform lot of functions in Marketing management like analyzing and planning

marketing activities, implement marketing plans, check control mechanism. We have
to perform these functions in a way that our organizations objective is achieved.

Marketing management philosophies

The production concept

 During industrial revolution ( when many industries emerged in India), demand for
industrial goods started increasing but producers were not adequate
 so demand expanded
 Selling was not a problem.
 Anybody could sell, one who produces will sell their goods.
 Main focus was production of goods, increase production and sales will automatically
increase
 If you want to earn profit, production has to be done on a large scale
 When production is done on a large scale, cost of production reduces.
 Like fixed cost, factory rent will be same regardless the quantity of production
 Consumers will like to buy the product which is widely available everywhere and
affordable
 Thus, availability and affordability, then success is guaranteed.
 Therefore, focus was to improve production and improve distribution

Product concept

 During earlier days, due to increase in production, supply increased.

 If prize of product is low and production is ample, doesn’t necessarily indicate that it
will grow because supply had increased ( people choose the best )
 Customers were finding product very good in quality and features
 Then the focus shifted from quantity/ more production to quality of product
  Main focus changed, to bring improvement, increase quantity, to bring new features to
our product as the supply had increased and so had competition
 Main key was to bring product improvement in order to earn profit

Selling concept

 As the time passed, marketing environment changed

 Business started getting bigger and so did supply
 Supply resulted in increased competition ( there are ample sellers but less buyers
hence increased competition)
 Product quality is good and product is available too, but doesn’t mean it will be sold
because lot of buyers were supplying good quality product.
 To attract customers and persuade them to buy our product
 Business philosophy changed
 It said that the customers will not buy or buy enough until they are convinced or
motivated to buy our product
 Very high level promotional techniques like advertisement, personal selling, sales
promotion used to sell product
 Focus shifted again. Now it was pushing the sale of product, forcefully persuade
customers to buy our product
 Sales through any means( anyway )
 Buyers to be manipulated to buy our product, but what we didn’t focus on was in long
run if you want success, satisfying customers was very important

Marketing concept

 Main focus is to satisfy customer’s needs.

 In long run, if you want your profit to increase, you see the need and satisfy them of
the customers and prospective buyers
 All decisions were taken according to customers' needs
 Customer satisfaction was the main focus
 For example, what product will be produced, features, prize, availability.
 If customer wants a double door in his fridge or a separate place for water cooler, so
make a fridge according to the customers need
 Prize also to be kept that customers are willing to pay
 If you make all marketing decisions according to customers, selling will not be a
problem, your product will be sold quickly because you are making the product which
the customer wants
 Basic role was to see the need and to complete them
 The concept says if a product is sold its not only because the product is good, or the
brand name is famous or packaging is good but because its satisfying customers' need.
 Like LG, Sony tv are demanding because they have good features which the
customers want
 If you want it to be successful, then you need to understand customer needs and then
respond ( make the product which customer needs)
i. First you have to find your target market
ii. Understanding the needs and wants of your customers
iii. Satisfy the needs better than your competitors
iv. Doing all this will avail you profit
 Hence, focus was to satisfy customer needs to achieve your objective

Societal concept

 Marketing concept is not adequate because we have lot of challenges or social

problems like environmental pollution, deforestation, shortage of resources,
population explosion and inflation ( do not include in marketing concept)
 This concept says that if it satisfies our need (ac, fridge) but for our environment it is
harmful which is harming our society. Not to make a product which does give us
satisfaction but is very harmful for our environment (temperature is rising)
 So business's main focus shouldn’t be short sighted, we don’t just see customer needs,
we also have to see their health if that later isn’t creating a problem in the
environment.
 We should also consider other things like social welfare.
 Societal marketing concept says that to satisfy needs and wants of target market and
make the product as they want but in an effective and efficient manner so that we
have to think about long term well being of customers and society.
 Thus, this is societal concept which is one step further than marketing concept i.e.
marketing concept is included in this concept but it is satisfying the needs of
customers after thinking about the society.
 Welfare of society, along with customer satisfaction is important. Attention should be
given to social, ethical and ecological aspects.

Functions of Marketing

1. Gathering and Analyzing Market information-

 It is an important function of marketer to find information and analyze it
 And we get to know our customer’s needs so that we can take decisions
and make a product accordingly
 Why It is important because we get to know our opportunities available
and from what things we have threats ( who are our competitors), strengths
and weaknesses we get to know if we gather info from the market.
 As we did market survey, we found out that there's going to be a lot of
growth
 For example, internet used at a large scale or phone use.
  After getting the information, a marketer finds out that which area we have
to enter or expand i.e. to extend our existing business in which area
 We will only get to know this if we properly analyze market, find out our
swot
 With the emergence of computers, internet and phone we have got a lot of
ways to collect market information.
 You can do online survey also
 Companies are using websites on Internet so that they can take the
customer's views and opinions and take decisions or make a product
accordingly
 There's a new channel in Hindi which asks viewer’s choice. “I have 4-5
stories, which story do you want us to broadcast or show in detail” so that
viewers can listen stories of their choice.

2. Marketing planning
 Marketer has to make a marketing plan so that our objectives of org get
achieved
 Suppose a marketer who manufactures color TV. In the whole country 10
percent share is his. In next 10 years, I want atleast 20 percent people to
prefer my TV. So he has to make a marketing plan like how do I increase
my production, how do I advertise it.

3. Product designing and development

 We have to design, develop our product
 We have to design the product so that it looks attractive to our target
customers
 If the design is good, your performance will improve
 In competition also our product will be above
 If we buy a bike, we don’t only see the features like cost, and mileage, we
also see the design, shape, style.

4. Standardization and grading

 Make goods that are already pre decided, the standard is already set the the
product should be particularly this quality, which makes our product look
the same
 Whatever goods your making, the quality mentioned should be according
to the standard not less than that, should be within that price, packaging
should be good so that inspection, testing, evaluation are not required, all
products are uniform
 In Grading , we divide our product into different groups on the basis of
quality, size etc. for example A grade, B grade.
  Giving grades is important for products and those products whose
production doesn’t happen under predetermined specification where one
never knows when the product is of good quality and when it is not.
 Like agriculture product- wheat, orange fruits, we don’t know when the
crop is very good and when it’ll get destroyed depends on rain, fertilizers,
pesticides, we can't guarantee that this will grow with good quality
 With the help of grading, we can get higher prizes if our product has high
quality

5. Packaging and labelling

 Packaging refers to designing the package of product
 Labelling means the designing of label over the packet containing all
information.
 Label can be simple tag or a design also
 Packaging and labelling have become very important
 They are also called pillars of marketing because they place a big role to
sell our product. Like kids get attracted to colorful, design packing
 Packaging is not only for protection, its safe but also is a promotional
tool. , promotes our product and makes it attractive
 Buyers assess the quality of product, for example if a product has a weak,
broken packing, he wont buy it but if a strong, container, attractive
packing then the buyer assumes that product will also be very good just
like the packaging
 Nowadays, many brands like lays, uncle chips, clinic plus shampoo are
getting purchased a lot because of packing

6. Branding
 Branding means giving a brand name to your product
 It’s a very important decision for a marketer, if your’re selling your
product, how to sell it? using a generic name like fan, pen or according to
a brand name like Pollar fan, Usha fan Rodomac Pen, giving a particular
name
 By brand name, our product looks much different from other products like
colgate, babool, dove shampoo, clinic plus shampoo. So easily we can find
out that this shampoo of this brand
 our product looks much different from our competitor, this makes our
customers loyal too. For example, “ I use clinic plus, it suits me and I want
to buy that only” and our sales also get promoted.
 We decide branding strategy, you have a choice whether you want to give
a separate brand name or under one brand name, sell all products like
Philip bulbs, tube, television
7. Customer support services
 A very important function of marketing management
 Includes- after sales services ( if there's a problem in product you can call
on toll free no.) or solving customer complaint ( complaint of electronic
product is not working so to solve it) ,giving product on credit ( on
installments) or provide technical services
 Main motive of services to give maximum satisfaction to customers so that
we get success
 If your customer is happy with your services, customers will want to buy
your product only and become loyal to your brand

8. Pricing of product
 When you buy product, the money that you pay is the price of the product.
For example, if you buy a 10 rupee pen, so that 10 rupee is the prize
 This is a very important factor to decide whether your product will do
success or failure
 Demand of product is related to price. Lower the price, higher the demand
and vice versa. If expensive, limited people who can afford will buy
 Marketer’s work here to properly analyze everything that what should be
the prize of product only then take decision regarding that and apart from
this, setting pricing objective, pricing strategies, decide prize, decide
whether to change the prize or not.

9. Promotion
 Promotion means to inform customers about our firm’s product, that
means tell them these products have come, its features, persuade them that
our product is best
 All these come under production
It has 4 methods- advertisement, personal selling (you go and sell),
publicity, use sales promotion techniques through which you can promote
your product.
 Marketer has to take decisions how to do promotions like decide
promotion budget ( if we are showing advertisement then what is our
budget 1lakh, 2 lakh, how much we’ll spend )or if we have to use
combination of promotional tools Like advertisement and personal selling
to be used.

10. Physical distribution

  Means transfer product from one place to another i.e. producers to
consumers
 This is also a very important function
 Here 2 decisions are taken- a) how many channels of distribution will be
there like wholesalers, retailers; whether you’ll sell it directly or keep
wholesaler/ retailer or both in between. b)Physical movement means
transfer goods from the production place to where the customers are sitting
is included here. And in this more important decisions are taken like
managing inventory (product is made but some extra stock we have to
keep), storage (where to store goods) and warehousing( in which
warehouse) and how to do transportation, which mode of transport to use.

11. Transportation
 Transport goods from one place to another
 Consumer products like soap, and surf, consumers of these are spread in
the whole world, different states and countries. If production takes place in
one place the consumption users are situated in different places
 For example, Tea production happens in Assam but only people of assam
will not drink chai, it has to be transferred to other states also like Tamil
Nady, Punjab, J&K, Haryana, and Rajasthan. So, production is done in
Assam but the consumption has to be sent to the whole country
 Marketing firm will first analyze how we have to transfer the product and
it depends on many factors like nature of product ( whether its weak,
heavy), cost of transportation (cheaper then bus, train, ship) location of
market(we cant use truck to send to other countries, we have to use ship,
so choose mode of transportation.

12. Storage and warehousing

 There is a lot of time in production and sale, its never like it just got
produced and got sold also, No it takes some time for a product to be sold
 Sometimes production is done but demand is not there. Like woolen
garments, raincoats these winter clothes will not be sold the whole year,
will only be sold on winters more, so the production happening in summer
we have to store them. Or we can say irregular supply happens i.e.
production doesn’t happen the whole year because of seasons such as
agricultural products sugarcane, rice, wheat, cotton are grown on certain
seasons but demand is full year like wheat which you use to make roti has
to be stored for the whole year
 So if you want your product to be available all the time, you have to store
the goods for that so that whenever demand rises, you can Take out the
goods from storage.
 You have to store goods so that there shouldn’t be any delay like if
demand is coming but for some reason, delay is happening, delay
shouldn’t happen, quick delivery of product should happen
  Storage function is not just done by manufacturer who made the product,
wholesalers, retailers also keep a stock when there is huge demand

Marketing mix

i. Prize
ii. Place
iii. Promotion
iv. Product

1. Product
 Product means any good or service or anything which has value and can be
sold in market
 Example Hindustan Unilever has many products closeup, lifebuoy or tata like
truck, lg, tv are products
 Products only don’t consist of physical products like refrigerators, sofa set or
above examples but also what benefits are of these products like toothpaste-
strengthens gums.
 Product includes extended product for eg. Company makes more products of
same product. Tata extended its market
 After sales services, handling complaints and managing spare parts are also
important
 Consumer durable products life is long
 Regarding product decisions product features, quality, labeling, branding,
packaging
 So basically taking decision regarding product
2. Prize-
 When customers pay something to buy a product that’s called a prize
 how much is the prize affects its demand, if prize is expensive, customers cant
afford and if its cheap, demand will be more
 marketer will not only decide prize objectives but also see factors which affect
our prize, like cost and fix it after considering all factors
 other decisions are discount, credit terms so that customers find prize okay
3. place mix
 also called physical distribution
 decisions taken are how product can be transferred to target customers
 here important decision is dealers and intermediaries how many should be
there and provide support to intermediaries like giving them discount or run a
social campaign for them
 intermediaries keep a stock of our products and give a demo to customers who
are interested and negotiate prize with buyers ( thoda sasta dedo), sales and
provide after sales services
 other decisions we take are how much stock to keep, how many units to
manufacture, how to store goods how many warehouses , how to transfer
goods from production to consumers.
4. Promotion
  Activities in which products are available we tell to customers, tell our
features, merits and try to convince that our product is very good, buy it
 Organization use a lot of promotional tools and use good expenses in
promotion- advertisement, sales promotion ( discount, free samples) some
ways to increase sales
 Many decisions have to be taken, what to do in advertisement, whether to do
adv or not
 When doing advertising, it is imp to know which message to give media to use
like in print or tv
 Success depends on how properly you have used the promotion mix
ingredients that customer thinks if he is getting value or not, only then you
sales will happen and you'll achieve profit
 Suppose a firm wants to sell these units, so and so cost and profit he will think,
firm can use many combinations so that his sales increases.
 Main issue is that the firm has to decide which is the best combination of
discount, advertisement.

Products

 From consumers point of view, it’s a bundle of utilities and we purchase it because it
satisfies our needs .
 A buyer buys products because the product provides some benefit like if we are
hungry, we buy food
 We get 3 benefits from using/ buying product- functional (BENEFIT we get from
functions, psychological(product which calms us) AND SOCIAL(if we use this
product ours respect increase like 10-15 lakh good car)
 For example, suppose we bought a bicycle, functional utility it fulfils, apart from that
it also gives us social benefit like prestige like bike in college.

Classification of product

- Consumer
- Producer

Consumer products

 Products which are purchased by final/ ultimate consumers like product I purchased
from market to satisfy my needs. For example soap, toothpaste
 Main purpose is we use it personally like fruits we consume or non business use- not
to earn money for our use. It has been divided into 3 types

1. Convenience product- is what we buy it without putting much effort like cigarettes,
newspaper, medicine
 These products are not much expensive and we buy them in small quantities.
Newspaper, cigarette we don’t buy 100-500 boxes
 2. Shopping products-
 When buyers buy these products they spend some time/ put efforts
 We compare quality, prize at several stores before final purchase
 Eg. Clothes, shoes, jewelery

3. Speciality products
 They have some special features due to which people put more efforts into
buying
 We become brand loyal with these products
 Buyers for these products put lot of efforts and mehnat
 Rare antique itmes
 For these products, people put a lot of their time and travel a lot too
 Day to life example- hair cutting saloon, special cut, even it is 12 km long ,
she still goes to the same salon she doesn’t want to experiment
 Demand for these goods is inelastic- even if prize increases, demand doesn’t
change (because it has special features and she wants to buy from the same
tailor)

Durablility of products

How long a product can run

1. Non durable products

 Products which we mostly can use once or for a short time
 Example- toothpaste, detergent, soap( doesn’t stay 10 years, stationery items
 In marketing point of view, these products have very less margin, not
expensive aand profit margin also kept less
 These products found in mostly all locqtion and need to be highly advertised
(in tvsoap commercials)
2. Durable products
 Tangible products which last for many years
 Eg.- refrigerator, bycycle, machines(tailor, washing)
 Used for long period
 Big margin, profit margin big
 Personal selling much efforts are put(convincing)
 Guarantee and warrantee services you have to give
 After sales services should also be given
3. Services
 Intangible activities/ benefits which can be sold
 Eg.- dry cleaning, watch repair, services of doctor and lawyer
Industrial Products

 Products which are used in industries to different product as a raw material

 Cotton is used to make thread
 Eg. – raw material, engine, lubricant, machines and tools
 Used ot make big/ finished products
 Used for non-personal use or business use
 Industrial products market is manufactirers, transport agencies, banks, mining
companies, public utilities not us
 Used as inputs to make other product
 Types-
1. Material and parts
 Include goods which are used completely in product
 Cotton used to make thread, sugar industries use sugarcane completely to
make sugar, oil factories use seeds to make oil
 Pertroleum , iron ore, fish
 Parts of two types-
 Component materials like glass, iron, plastic, these are used to make mirror,
glass cup. Plastic to plates
 Component parts like tyre, electric bulb, battery, steering also get used in
product. Tyre fit in car, battery fitted in inventer
2. Capital items
 Those goods with the help of which we make finished goods
 Installations, elevators, computer, equipments, fax machines

3. Supplies and business services

 Those goods which help us manage or develop the finished product( give a
finishing or manage the already made product)
 These include maintaining and repair items(paint, kil thok di), paint ( so that
paint doesn’t go off), operating supplies(lubricants, oil, grease so machines
work properly), computer stationery, paper, pen
 Hence, help to manage the product

BRANDING

 Very important decision the marketing team has to take

 Marketer has to decide that wjatevr product your selling has to be given a brand
name or generic name
 Generic name refers to the name of product like book, wrist watch, camera
 Camera is a lens surrounded by pastic/ stelel and it has features like flashlight, book
is a bunch of paper where all papers are tied and some useful information is written.
 If you sell your product by generic name like sell book by book’s name then it’ll be
very difficult.
  Competitors product have their own name like sunsilk shampoo but youre selling by
shampoo
 Therefore, makteers give a name to their product that’s ehy its easy to identify your
product and looks different from a comoetitors product
 This process of giving a sign/symbol/name is callwd branding
1. Brand
 It can be a name, term, sign, symbol, design or a combination of these
 It becomes very easy to identify products, goods and seller are of which sellers
 Eg. Bata, lifebuoy soap, parker
 Brand has 2 components- brand name and brand mark
2. Brand name
 Which can be spoken
 Verbal component like mcdonamls, dominos, dove
3. Brand mark
 Which can only be recognized but is not utterable
 Nike sign, mcdonalds M, LG sign, sybol or photo or color
4. Trade mark
 If you give legal protection to a product(only you can use no one else, you can
do case)
 Gives protection, no other firm can use
 If a firm gets it brand registered, takes trademark so he gets a right in that case,
no tother firm can use it whether it’s a name or mark
 If you use brand mark, then cost increases,
 Taking trademark is not easy , cost of packaging increases, labelling, legal
pprotection expenses, brand promotion also
 But it has lot of benefits too to sellers and consumers
 Sellers product is different from others and consumers now easily we can
identify the brand that they use

Characteristics of a good brand name

 Its not an easy decision but this decision is important because if suppose you have
chosen the brsnd name like dov, product launched, put posters, showed adv but
suddenly you changed the name, its very difficult people will think it’s a different
product, your sales ewill decrease or again cost, promotion, advertisement
 It is important to keep the right name the first time
 Features-
i. It should be short, can be spoken easily, easy spelling , can be remeberd easily
eg ponds, vim, rin
ii. Product benefit/qualities should be seen. According ot product’s benefit eg
shampoo like hair and care you can make out from the name that you hair will
be taken care of
iii. Shoukd be a different name like airtel you cant make it airbell
 iv. Should be adjusted to everything acc to packing, labelling, adv media,
language
v. Should be versatile if youre launching a new product or bring a new product
line like hair and care oil, shampoo if you bring or hair dye this name hair and
care will fit in all.
vi. Can be registered easily, can take protection, trademark
vii. Should not be out of date, should be a latest word that new generation can
understand

PACKAGING

 The development of packaging now has impacted a lot on businesses

 Many products about which you cant even think they can be packaged because oof
nature, they have also been packed like pulses, hee, milk, salt, cold drink, milk
 Packaging means we have to make a wrapper/ container of a product in which we can
pack the product and give
 Packing plays an imp role success of your product
 Consumerable non durableproducts there it plays importance , ac, tv fridge if they
don’t get packaged properly, they’ll get destroyed in transportation
 If someone properly analyzes of thsat reason that why some procests have been
successful recently eg. Maggi,
 Levels of packaging-
i. Primary package-
 refers to products topmost layer/ packing
 we keep the primary package until we use it like socks in transparent plastic
packet
 socks topmost packing
 until we use that product we do not dispose off the package like toothpaste
tube, matchbox

ii. Secondary package-

 Packing over primary package eg. Toothpaste tube in a cardbox tube
 It is an additional layer over primary package we keep it until we use
the product, when we start using it we throw it
 Eg. Shaving cream tube, when we start using it, we dispose off the box
and keep the inside primary box we keep it safely or medicine tube
iii. Transportation packaging-
 We use this packing to store goods or transport them eg. Toothpaste
cartoon containing 100-200 units

Importamce of packaging

 Why is it important to pack and wrap a product what are its advantages
 i. Rising standards of health and sanitation-
 People nowadays are becoming health concious, they are running
towards cleanliness
 People’s stand of living has increased
 More people have started buying packing goods because they think
adulteration chances are less eg. Cow milk doodhwala has more than
half water but packerd good has right quantity, eg dal, rice open will
have stones but packed and of good company will be clean
ii. Self service outlets
 Nowadays , self service outlets have opened like big malls have
small shelves where products are decorated and we buy product
and store it there
 Otlets are becoming very popular mainly in cities not much in
villages
 Before, personal selling ( personally shopkeepers suggested
customers themselves) was more prevalent but these stores,
product promotion is done by good, attractive packaging
iii. Innovational packaging
 Innovation has also been introduced in packaging, high level
packing
 Nowadays development high on packaging, marketing
vhanged, lot of attention to packaging
 Milkcan be stored for 4-5 days because of its packaging
 Pharceuticals, medicines, syrup, softdrinks goes on for 1-2
years until expiry date
 But if the water tank, insects appear inside it
 Packaging is done now in a very innobative packaging because
of which these kind of products are being sold more
iv. Product differentiation
 We can show our product differently than our competitors
 Uncle chips, lays can easily be identified
 To show the product differently, we can do good package
 Packaging color, size, material used (containers bourn vita
horlics if of good material then customers buy it)
 Customers think if packaging is good, product is also good
 Eg. If we see a package like hair oil then we can guess that the
quality of product of it.

FUNCTIONS OF PACKAGING

i. Product identification
 If we pack our product then it is easy to identify it
 Packaging with the help of it, we can identify it
 Eg. Colgate in red color, ponds in jar
 ii. Product protection
 If we pack our product, it stays protected
 Packaging protects our product and content, content like liquid in soft
drink from spoilage, broken, leak, theft, damage(climatic effect eg.
Refrigerate the items which can get sdestroyed)
 And we need to protect when we store eg colgate stays safe in tube
instead it wont be in bag, store, distribute and transport
iii. Facilitating the use of product
 If product is packed then using it is easy
 Packaging Size and shape should be like opening handle and using the
product is easy like hair oil small hole in top, medicine tube because of
its shape, cosmetics
iv. Product promotion
 If product is done properly, then promotion is done nicely
 Paxkaging is use for promotion purpose also, container free with
product
 If color is attractive, or a photograph or a typeface attracts people
 Sometimes it works better than advertising
 In self service stores like in malls or super stores there shelfs are there
and product is there you take buvkeys and choose your own product
 People see the packaging and buy the product.

LABELLING

 Labelling means q label is stuck in your product which contains a lot of information
like how to use this product, what all contents it has, what price, manufacturing date
 Lable its usually simple looking but label design is important and its stuck on your
package
 Label can be a small tag stuck on a product like local unbranded product like sugar
wheat, small tag is attached on it in which info is written like how is quality, what is
prize, some designs are also made like designs are made in branded product unlike
simple design in local product
 Lables give detailed info abt product, its contents =, how to use
 Function of labelling-
1. Describe the product and specify its contents
 Eg. Suppose theres a label on a package of mohini tea company
 A poweder called prickly heat powder. The label specfifies how we get
releief from hest, prevents bacteria and infections, cuts and wounds there it
shouldn’t be applied
 Fast food like dosa idli noodles , in that in label its written the procedure of
cooking
 Package of toothpaste brand teeth and gum problems, gum related
problems, product says it’ll fight againdt these problems if you use our
toothpaste, we wont let germs come in
  Suppose theres a packet of coconut oil, label says it’s pure, contains heena,
amla, lemon and its god for hair, make your hair thick, black
 Most important thing is label describes the product, how to use, while
using what precuations to take, its content

2. Identification of the Product or Brand

 We can identify the product by looking at its label like lays, maggi
 Another fuction of label is product identify and brand identify is easy
 Suppose a busiciut or chips of a brand, if a label is stuck, we can easily
identify the product by seeing it
 Many more info is written like name and address, net weight,
manufacturing date mrp, badge no.

3. Grading of product
 We can with the help of labels, give grading/ divide to products
 Sometimes marketers give different grades to products according to their
features
 Eg. Suppose a hair conditioner or shampoo comes in different categories
(dry/normal/sensitive/oily hair) giving grades to diff categories
 Tea- red label, green label, yellow label
4. Helps in promotion of product
 Helps promotion of product
 A carefully designed label we can attract the customers towards it
 Like this, lots of products are there where label is stuck which give
promotional message
 Eg Amla hair oil “baalo maid um life mai fun”
 Suppose theres a lable of detergent powder “if you use our surf, your
clothes will look beautiful and the condition of your machine will be
perfect”
 Labels help in sales promotiona lso like label in a package “if you buy this
shaving cream you’ll get 40% extra cream” or a toothpaste” if you buy this
youll get a free toothpsste or itll be 15% less proze)
5. Providing information required by law
 Some info acc to law we have to give
 If a packed food, all ingredients to write, if non veg or veg, mfd are very
imp to mention
 And these info are required on processed foods(chips), drugs(medicine )
and tobacco products
 If some goods are injurious to health, in these goods, label should mention
a safety warning for eg. Cigarette or phenyl botlle warning “keep kids
away”
PRICING

 Whenever we buy a product, we give some money

 This money is the value for product benefit or product use in return to that, you giving
money. This is called pricing
 Just like for product, you give money for services for eg. You giave fair for transport
service, indsurance policy premium, doctor advice/ consultancy
 Price can be defined as money that buyer pays and money is received by in
consideration/ seller and we pay money so that we purchase a product or service, then
in return we pay money
 So pricing is very important if we wanna do marketing of goods properly, deciding
price properly is very importamt
 If youre launching a product, it cannot be launched if price is not mentioned, ever
packed product has prize mentioned
 Price only decides the demand of product
 Suppose if prize increases, then its demand comes down because we start using some
other product
 If prize is affordable, demand increasezs
 We can use prize against our competitors (affordable than competitor)
 Suppose theres a situation of perfect competition, most factors reduce their prize and
along with that, prize affects revenue and profit (if youre getting profit, loss or what
earning)
 Thus, firms give lot of imp when fixing prize of product

Factors affecting prize determination

1. Product cost-
 We have to keep the pize of product in such a way that the selling prize is
more than cost
 Cost is a very important factor
 Cost in making goods, distributing goods in between ,advertising
 Cost sets the min lebel/ floor prize (product cost rs10 then sell at rs 10 not
less)
 Firms try that their costs get covered
 Firms always aim that we earn the profit that’s higher than cost, keeps a
margin
 If youre bringing a new product or entering a new market, you can sell
product at a prize which doesn’t cover prize ( selling rs 10 cost at rs8)
becuasr if customers get loyal to your product them you can increase prize
slowly
 But if we talk about long run, we cannot survive if we don’t see the cost
 Now cost is of three types- fixed, variable, semi-variable
 Fixed costs which do not vary with less or more production, its fixed
 Eg. Fixed Rent of building even if youre producing 1000 or 10 units
  Variable costs that are directly related with level of activity. If production
increase, cost increase and vice versa
 Eg. More production, more Raw material
More production, more electricity and vice versa
 If you make 1 chair its 100rs and if 10 chairs, 1000 raw material, if you
don’t produce any chair, no cost of raw material
 Semi variable activity are those with change with level of activity but not
in direct prop
 For eg. If you increase 10 % sales/ promotion, 10% cost
 If a sales person gets fixed salary of 10000/month and he gets 5%
commission on what he sells, now we increased sales, now his
compensation/ salary will increase because the 5 % commission he got
will be greater, but did not increase in direct proportion compared to sales,
sales increased 10% but salary is same 10000, commission is increasing
 Total cost includes all three
2. Utility and Demand
 We were studying the product cost tells us what lower limit, like if cost is
10rs we cant sell lesser than that
 The utility/ satisfaction of product/ demand tells us the upper limit of prize
(like if our product is so good, 10 rs cost product but people are
purchasing in 20rs)
 Price should be like its in the interest of both buyer and seller(buyer can
buy and seller isn’t facing loss)
 Price should be that the buyer is ready to pay that amount thorugh which
he’s getting satisfaction and seller so that he can atleast cover his cost
 Customers purchase more at low cost
 Price will be decided acc rtro competition
 We have to decide the upper limit(20) and lower limit prize(10)
 This depends on the competition on market
 We can keep the prize on upper limit when there is low competition
 Prize to keep at lower level when competition is high.
 We have to check competitiors prie when we fix our prize
 Not just prize, but the competitors quality, features

3. Govt and legal regulations-

 To save public interest, govt. can interfere can change your prize
 Govt. can say that the product your selling is an essesntia(salt, sugar, dal)
product and change the prize
 Sjuppose a drug manufacturing company is a monopoly( only drug
market) and its selling one strip of 10 medicineds in 20rs but the buyer is
ready to give even 200
 Seller can have a thought of greediness of 200 rs
  The govt can interfere and say that you cannot charge such a high prize
and change your prize
 Drug/medicine is an essential commodity, change its prize otherwise lower
middle class people will not be able to afford it

4. Pricing objectives
 When you decide the prize, what is your main objective
 Our objective is generally we want to maximise our profit
 But profit increasing can be through 2 ways short run and long run
 Suppose if I want to increase my profit in short run then my product prize
ill keep rs20 instead of 10
 In short term, firm got a lot of money but if I want to keep it in long term ,
ill keep an affordable prize and make a lot of customers so that my sales
increases and earn profit

5. Marketing methods used

 When you fix prize, which marketing method, distributuion system youre
using,how many salesmen using, quality of adv, adv cost, sales promotion
tech cost, how good is packaging, credit facility and customer service
you’re giving or not giving affects your prize
 For eg. If a company provides an option of free home delivery so it will fix
its prixe up and down on their own
 If your product has any uniqueness( any of above ) then company gets a
freedom of fixing prize
 For eg. We spend a lot on advertisemet, we can fix max prize your product
will get promoted

PHYSICAL DISTRIBUTION

 In easier words, transfer goods physically from one place to another production to
consumption
 It’s a very important element
 With the help of this, we can make available the goofds and services at right
places(where consumers are) at right time(when consumers need that product eg.
jackets during winters) to right people(those who need it)
 Suppose goods have been manufactured, packaged, branded, price tag put, promotion
also done, now the product we have to make available to customers, at right quantity
at right time
 For eg. A person you have convinced that our product quality is very good. Your
product is detergent bar and he is also interested, he saw your advertisemts. Then he
goes to a market and asks for the product he saw on tv(your product) but its not there
only in that market so he will buy an alternative product, due to this your sales are lost
because goods were not available at right place
  So, it’s the responsibility of marketeer to make the product available where consumers
want it
 2when you move the goods physically from one plave(production) to another (place
of distribution which is called physical distribution)
 Physical distribution aldo includes all those activities which the help us to send the
goods from manufacturerees to consumers
 All the activities in between will include in physical distribution
 Importsnt activities we can do in physical distribution are transportation, storage,
material handling (handling product), stock ( by chance if demand comes)

Componenets of physical distribution

1. Order processing
 When buyer and seller relationship formed, first step is order placement, buyer
gives order of the product he wants
 Product goes from manufacturers from customers
 Order go in reverse direction from customers to manufacturers (giving order )
 If your physical distribution system ois good then yiu have to recideve very
correct order ( if I want this size color quantity product) and place the order
quickly
 If you don’t receive accurate info or speed work you don’t , your goods will
reach late or in wrong quantity to customers, then your customers will be
dissatisfied and your company’s goodwill can be destroyed too
2. Transportation
 Your goods go from point of production to point of sale with the help of
transportation
 It is very important to transfer goods hysically from one plave toanother
 It is an imp decision because until you don’t deliver your goods, your sales
will not occur.
3. Warehousing
 Goods are stored in warehouses and products are kept in different groups ( a
company who makes busiciuts, toffees in different packets arranged so you
can do the delivery fast since it s different)
 Time utility her means when product is made, little time taken for sale tahst
why warehouses are made.
 Main purpose of warehouses is placement of goods (store, arrange, handle
carefully)
 Why we need warehouses? Lot of difference is there in when product is
produced and when it is consumed so we need to store them
 Our firm;s efficiency depends on our warehouses, it’s location (if its close to
customers so we can quickly deliver goods when customer demand arises on
the other hand if its far, getting delibered in 2-3 days when customer demand
arisers)
 More the warehouses, lesser time it would take to serve our customers because
more the warehouses, from wherever the demand is coming, we quickly
deliver the goods
  But the disadvantage is the cost will increase as we take warehouses on rent
 That’s why firms have to keep a balance that warehouse cost is not too much
and we can quickly provide services to customers
 And the products which we have to store for a long time, like agricultural
products, warehouses of these are in production site
 Because of this, transportation cost is less
 And if our product is heavy or shipping is difficult ike machine or automobile
car or perishable goods are kept in different loacations near different
markets(so that whenever delivery comes, we can quickly send them)


4. Inventory control
 Inventory contril means Maintaining stock
 Warehousing decision that is inventory control, manufacturer’s success
depends on it
 This decision is imp where per unit cost is high (maintaining stock cots is
high)
 A very important decision we take in inventory is that the level of inventory
how much stock to be maintained ( in what quantiy like 1000 units, 1lakh
units, 10 units) in advance in stock
 Higher the inventory, higher you will be able to provide services to customers.
(Suppose you have a lot of stock, suddenly demand rises you can reach
customers but if demand comes and you don’t have stock, production will take
time, reaching customers also late)
 But problem is if we keep lot of stock and don’t sell it, then cost will be high
because capital will be tied up/ locked for eg. If made 100 units and its in
stock for 1lakh, I cannpt sell this, ill keep this 1 lakh carefully)
 Balance has to be made that inventory doesn’t add up too much that cost
becomes high and customers also stay satisfied that if demand arises, we
should have the stock

Promotion

 Any company it will produce good quality products, put affordable cost and make it
available to customers also but apart from all this, there is a possibility product
doesn’t sell
 For this, we need communication
 We have to communicate with our cusroners and let them know the new product
launched in market
 If we don’t communicate, then customers would have no idea about the new product,
how its going to satisfy their needs and wants, how it can provide benefits to them.
Advertise through newspapers, tv
  Promotion means that we have to communicate with customers, inform potential
customers (can buy in future if we tell them benefits) and convince them
 Promotion is very important in marketing mix
 To co mmunicate with customers, many tools are used so that they buy our product
 Promotion mix means we use promotional tools, we can communicate our product
with customers
 What are these promotional tools we can use to convince them- adv, personal selling,
sales promotion, publicity.
 These tools are called elements of promotion mix also and can be used in different
combinations
 Eg. If were trying to sell Consumer goods , we use adv mire
If were selling industrial goods, personal selling is used more
“Use this machine, your production will be amazing”- public doesn’t want machines,
so physically they have to be seen
 What combinations/ tools we use depends on many factors
 Like our market nature, type of customers, our product type, promotion budget
(magazine article not tv) according to that we use these tools

ADVERTISING

 Daily we see so many adv messages like in tv, newspaper, magazine, mails
 We see ads of soap, oil ,water, sugar and services like insurance policy, mutual funds
etc
 Most commonly used tool of promotion or no personal contact of communication (tv
ad, newspaper article)
 Just marketers pay money and promote their goods and services
 Most common things through which adv is done is tv, newspaper, magazine, radio
 Features-
1. Paid form-
 Adv is shown by paying money
 Sponsor bears all the cost so that communication can be done with
prospective buyer
2. Impersonality
 No contact in adv no face to face between advertiser and prospect
 That’s why its called impersonal becuasre theres no contact in between, its
monologue (person in tv no, not 2 people having convo, you cant ask)

3. Identified sponsor
 Some famous person/ company shows an adv and the same person does
the adv and bears the cost

Merits of Advertising
 1. Mass Reach-
 It reaches many people at the same time
 Through advertising, we can reach many people, can cover a lot of
area(crore people watch)
 Eg. If you put an adv on National daily, lakhs of its subscribers watch that
ad too
2. Enhancing customer satisfaction and confidence-
 Through adv, our prospective buyers get confidence, feel comfortable and get
the assurance that the product is of good quality, acquire satisfaction
 If theres a product you know nothing of, but if preity zinta is giving that ad,
you will feel that the product is good and think that tehyre using it too
3. Expressiveness
 You can express your message to your customers through advertising
 Nowadays in art, computer designs and graphics have progressed so nicely
that advertisement affect directly reaches
 By giving special affects you can show your products/ message very attractive
(phone filter on face/ cheese on burger on tv ad)
4. Economy
 Ad becomes economical if you have to reach lot of people
 It has wide reach, if you show advertisement if lakh crore people see it, cost
will increase but it will be spread (despite the cost, sales will increase)

Objections to advertising

1. Adds to cost-
 If we show adv, our cost becomes high
 Those who are against adv, adv just unnecessarily ultimately increases cost,
and buyers have to suffer ( aproduct 10rs because of adv 22rs)
 Suppose they show an ad on tv of our product, marketer has to pay lakhs
 Adv on print media, newspaper, magazine still marketer hs to pay a lot
 And whatever we buy Increases the cost and when we fix the prize of a
product, we have to add the prize of adv in that
 Yes, we agree that adv increases our cost, but the demand increases
 Because lot of buyers are potential but amybe after watching the add they may
buy it and they get persuaded to buy it
 And if demand has increased, production will be more then we’ll get
economies of scale means we’ll get benefit
 Like if in a factory if we produce 100 units we have to pay 10000 rent, we
produce 10000 units still we pay dame rent
 Production cost reduces because if more prodfucts get sold we get more
benefit
 If we spend on adv, total cost increases but per unit cost reduces because
production is more
 With this, our burden only reduces, our cost doesn’t increase starts reducing
 2. Undermines social values
 Adv is reducing our social values and increasing our we run after materialistic
things like big car, big bike etc. not emotions, relationships
 This brings dissatisfaction in people that a new product has come into market
and they don’t have that product or don’t have the cash to buy it
 Some adv are where they show new faswhion lifestyle modern and advanced
but our society doesn’t approve of it (Sanskar)
 This is not completely accurate
 Adv informs us about new product in market which is an improvement of
existing product
 If buyers are not informed that’s very beneficial, they’ll be using the
inefficient products which are not that good
 Adv is to inform us
 Final choice is of buyer, advertisemtn people have just shown you
 And they’ll buy only if they are gettignt their needs satisfied and get otivated
to do hardwork to buy that product

3. Confuses the buyers

 Another critism is that lot of products have ads, and all say the same thing so
buyer gets confused about who to rely on and whos info is correct
 Suppose a detergent powder, clothes will turn white and stains will go
everyone says the same thing
 The people who support adv think that theyre rational human beings( we have
the ability to think) so we can see the prize, style, size and decide if we want
to buy
 So this is buyers responsibility, solve your own confusion, analyze the
information properly and take the decision
4. Encourages sale of inferior products
 Adv sometimes doesn’t tell us which product is superior or inferior, inferior
products/ low quality are also being persuaded to customers
 Supporters say that product is superior or inferior is dependent on its quality,
when both are brought into relation
 Customer wants which kind of quality depends on its financial condition or
preference
 So adv’s work to sell products of given quality and it is upto buyers if it suits
their preferences
 Advertisemt shouldn’t be like it is giving faldse claims but if there is a firm
doing false claim, they can do a case on it

PERSONAL SELLING

 By yourself you sell product like salesperson

 Earlier, Salesman used to come to your door, tell about product and sell
  Oral presentation of message means you send your message orally in not like a speech
but you converse with the customers
 You personally stay in touch with the prospective customers, face to face
 Company keeps a salesman and they go to prospective buyers and they will tell about
product at door and try to convince us for sale
 Features-
1. Personal form-
 Personal selling under that, direct face to face between buyer and seller
leads to interactive relationship between buyer and seller
 With the help of personal selling, interactive relationship
2. Development of Relationshio-
 Salesperson a good relationship with prospective customers

Merits of personal selling

1. Flexibility
 There is lot of flexibility
 The sales presentation i.e. what we tell the buyer, you can adjust anyway
acc to their need, in which language , wants to see a demo, you can quickly
tell the presenation to them
2. Direct Feedback
 In personal selling, direct face to face communication is there so we as a seller
can take a direct feedback from the customer how you found product, is it
cheap or expensive, is there anything to add you can ask anything
 Along with it, the presentation you can change acc to the prospective buyers
needs
3. Minimum wastage
 It can help to avoid wasting efforts. How company can minimize efforts like
salesman’s time doesn’t waste going from place to place talking to everyone
whether they buy or not
 The company beforehand only decide target customers and now you go talk to
the target customers and deal with them, sell this product to them which
reduces the efforts.

Role/ Importance of personal selling

 Salesman personally tells and tries to sell the product to customers

Importance of Businessman

 Personal selling is a very powerful tool for a businessman, with this businessman’
product demand increases and so does sales. Let’s study how-
i. Effective promotional tool
  Our product gets promoted using personal selling
 Personal selling salesman influences our prospects by telling merits and increases
sales
ii. Flexible tool
 Very flexible tool compared to other things like adv, sales promotion ( if an
actress speaks in a certain lang in tv, she cannot change her lang unlike in
personal selling you can change acc to needs)
 Business person can give different different offers at every situation (free
stuff if he wants to give)
iii. Minimize wadtage of efforts
 Our effors also get easted less
 If we compare to other method
 With this, our money gets less wasted we’ll only go to customers who will
buy our product
 Through personal selling, easily we can detect if the other person is losing
attention so we can say unlike in tv
 And because of this, salesperson cann easily do sales by telling the person
iv. Lasting relationship
 Through this, very good long term relationship gets formed b/w byers and
sellers
 Also beomes easy to convince them after relationship builds up

v. Personal rapport(rls)
 When our personal rls get formed with customers, this help us in
competition as customers become loyal
vi. Role in Introduction stage
 It’s the first stage in which we inform cudtomers about our product
 Personal selling plays an important role in introduction stage
vii. Link with customers
 Sales people play 3 roles- persuading customers, providing services
regarding product and providing information to customers
 Like this, making a link between business and customers

Importance to customers

 The illetrate and rural people get benefit from personal selling because they don’t
have facilities like tv and internet so they get to know about new product by persoaqnl
selling
1. Helps in identifying needs
 Through this, we can find out the needs and wants of customers and make a prioduct
accordingly to satisfy their needs
2. Latest market info
 Customers get latest info is there any change in price, availability of prodyuct, any
new product in market etc
 So customers can take decisions about what to buy
3. Expert advice
  Customers get a expert guidance becusse the salesperson have knowledge
so they can guide them about features and wwhat is best for them
4. Induces custoemrs
 The salesperson persuades the customers to purchase our product
 And this product satisfies our needs
 Buy this your needs will be satisfied and youll have a standard in the
society too

Importance to society

 Through personal selling, our economy/society progresses

1. Converts latest demand-
 Personal selling changes latest demand to effective demand ( not just demand but
production of demand)
 Economic activity increases (production) leading to more jobs, more income, more
products and services available in market and economic growth will increase through
peronal selling
2. Employment opportunities
 People who are unemployed will get more income and employment opp (jobs)
though ps
3. Carreer opportunities
 Salesman will get job satisfaction, job secutirty, respect, variety, interest jobs
and become independent also
4. Mobility in sales people
 Salesman can travel and transfer easily which is why travel and transfer both
get promoted
 Company Salesman is sent to other states to give info about our product
5. Product standardization
 Through this, product standardization is done as well as our consumption
pattern becomes uniform

Sales promotion

 To promote sales the techniques which ae used like discounts, dree samples
 Given for short term like discount which wihich buyerd get influenced
andquickly buy the product
 Under this, adv and publicity do not come but cash discount, sales contest, free
gift offer, sample distribution
 Sales promotion is done so that adv and public selling which is shown is more
effective
 Companies use sales promotional toolds to promote their product to customers
like free samples dist, discount, contest
  They do this for tradesman and middleman like corporate adv(manufacturer
and retailer both share adv cost) or discounts given to dealers and for salesman
also like bonus given to them, contest for Salesman, offers
 In Sales promotion, activities which are short term incentives (offer for short
term which boost sales)

Merits of Sales Promotion

1. Attention Value-
 Through Sales promotion we can attract of buyers by giving offers
2. Useful in new product launch
 Can be effective when we are bringing a new product in market, we can show
the new product free sample atleast use our product, its new so when people
use it if they like it then our sales will increase
 Due to this, people will try something new instead of their regular buying
behavior ebcuase this is giving them discount, samples free
3. Synergy in total promotional efforts
 Sales promotion is done so that the efforts we are putting in personal selling
adv, there it gets added on so that more energy/ become more effective
 Effectiveness increases

Limitations of Sales Promotion

1. Reflects crisis
 If firm repeatedly uses sales promotion techniques, it gives an impression that
maybe the company’s sales are reducing, that’s why to increase it company is
repeatedly using it (giving discounts)
 No one is buying the product, that’s why company is giving discounts again
and again
2. Spoils product image
 If we use these tools too much, it affects our image
 Buyers will feel that the product is not good or its of high cost

Commonly used Sales promotion activities

1. Rebate
 Price mai choot dena
 Here product is given in special prize (lesser than cost), to clear the excess
stock
 For example, a car manufafer is selling thre car and is saying he’ll give the car
10000 less, if 4 lakh car
2. Discount
 Rebate and discount is bit same but have differences
 You remove some percentage from list price
 For example, shoes company giving discount 50 % off, 4000 shoes became
2000
3. Refunds
 You purchased a product and paid prize also, you gave the product wrapper to
the seller, seller will give some choot the next time you buy it
 Suppose we bought 30rs lays, if you give the packet and buy lays again, then
next time he will give you st 28rs because you gave a proof that earlier you
purchased from me
4. Product combinations
 Suppose you purchased a product, along eith it you’ll get a nother product in
free
 You purchased atta and you got ½ kilo rice in free
5. Quantity gift
 Here, you put an extra quantity in a pridyct
 Mostly iused in toiletry product like in shaving cream 40 % extra, toothpaste
20% extra, shampoo 10-20% extra
6. Instant draws and assigned gift
 Here, scratch cards arr there or you burst a cracker and quicklu you win a
thing
7. Lucky draw
 Buy a soap, youll get a gold coin or youll get a lucky drsw coupon and you
can buy a certain petrol
 If you buy 3000 petol youll get a lucky draw coupon and if you win in it, youll
get extra free petrol
8. Usable benefit
 Youll not cash benefit, some benefit will be provided which you can use
 For eg, if you buy 3000rs product, youll get a holiday package of 3000 free
9. Full finance at 0%
 Many marketers of consumer durables (elecytronic goods like bike) here, you
are given a financing schemem like buy this tv and -in 24 installemetns-2
years you can easily buy money in kishto no byaaj reqd.
 First give 8 kishto then aram se increade it to 16 kishte, give cheque every
month
 But one thing to be keep attention on, file charges they take a lot, and your
interest gets recovered but in real 0% interest is written
10. Sampling
 Here, when new brand/ priocut gets launched you are given free sample
(shampoo pouch/detergent) use it once and if you like it, buy more
11. Contests
 Here competitive events take palce where if you dolve as quiz then that
particular prodyct is given to you for free
PUBLIC RELATIONS

 Our company’s relations with public, our image

 Managing public opinions is very imp (what public thinks about us)
 Marketing dept can make our image good in front of public that our company
and products are good
 Business needs that it communicates well with the suppliers and
dealers’because these people are very imp to increase our sales and profit
 And many more people come in contact with public and their opinions and
their voice is bvery imp
 Our general public may be interested in our product when we have a good
image infront of them and it affects our objective of earning profut and
increasing sales if our image is good
 So this is very imp that we can make good relation with public, that public
thinks positive about us
 Under public relations activities are there which we can promote in public’
eyes
 Business has relations with many people like suppliers, shareholders,
intermediaries, govt.
 Eg. We need the support of wholesailers and retailers if we want to survive in
this competition because they also help to increase sales
 Similarly, consumer activities groups (those who give info to consumers or
aware them about their rights, responsibilities) it is very imp to satidy them
also because they van can urge customers to stop from buying these products
(say these are harmful or file a case on you)
 Nowadays all organisations have a separate dept which maintains public
relations (tries to improve our image in the eyes of the public)
 Either we will have an own department or we will hire a agency from abroad
related to public relations which will create a positive image about us
 Their main task is to spread info about our company, make good goodwill
about our company, have to take many steps that we can make the positive
attitude of general public, we have positive publicity
 And this is needed when our negative publicity increases so making it positive
is very imo or our sales will reduce
 If a situation arises that our negative publicity, we have to tackle it by
considering it an emergency and try to improve our image in public
 Public relation dept has to do something imp and big so that the company’s
image damage can be stopped, reduced and our image can get better
 And they also advice top management to adopt programmes/ activities so that
our image is positive and image never goes negative

Role of public relations

1. Publicity
 It is just like advertising
 Personally, businessman doesn’t contact the customers its non personal
however it’s a non paid form of communication (we don’t have to pay money
for publicity)
 Publicity of our product happens when our product or service’s positive news
comes so we’ll tell that our product is getting publicity
 For eg. If a manufacturer made a car engine which works on water and this
news is coming everywhere tv radio newspaper, so we can say publivity is
happening ebcuase we didn’t pay for this but news itself is covering it for free
 But what will happen is manufacturer is getting benefit i.e info is getting
spread through news, you’re getting benefit without cost
 Features-
i. Publicity is an unpaid form we don not have to pay, No expense comes
here
ii. Here no advertisement sponsor doesn’t come, Straight away message
reaches our customer int the form of news.
 In publicity info spreads through press, media, news
 Messgae’s credibility is more ( people trust xmore) becusase this news spread from
news (truth) and not afvertisemnt

2. Press release-
 Info that we are giving has to be shown in positive way only then it will work
in our favour
 Generaqting news needs many skills and media convincing that acceot our
nows
 Public relation dept always stays in contact with media and tries to convince
them
 Media gets this news from othr source then it can distort (upar neeche kam
zyada ho skata hai)
3. Corporate communication
 An organisations image can be promoted when we communicate well with
public, employees tell thwm about it with the help of newsletters , anuual
report, brochure, articles, audio visual materials our organisations image can
be improved
 Company always relies on these materials so that it can influence the target
market
 Sometimes company’s big executives give speech on trade associations/ trade
fairs which boost our company’s image or our interview someone is taking in
tv or ee are responding to someone’s query this also increases our customer
relations
4. Lobbying
 Lobbying means to convince govt or politician to get in your favour to take
decision
  Organisations big have to deal with govt officials and ministers regarding
policies
 Govt also tries to maintain healthy relation with commerce and industry
because govt also hets benefit from industries that these many taxes come and
gets support from industries
 Also govt big stakeholders ( all who have direct conatact with govt company)
shareholders, customers , suppliers communicate woth them
 Public relation dept tries always to be active so that whatever rules and
regulations they can be in favour of that

5. Counselling
 Public rekation dept always gives advice to management about any issue
which affect the public and company’s position/ image
 The company gives advice that if you want to build your goodwill, you have
to contribute money and time in environment, welfare, childrens rights,
education
 These will improve our relation with public
 If you maintain good public relations then your other objectives also get
fulfilled like-
i. Building awareness-
 Dept tries to bring your product nicely in media
 This marketpace/ customers get very excited bedore eben the
product is launched these cme in news
 This creates a good impression on customers
ii. Building creditbility
 If any news comes on any product through any source, this
increases their trudt in our product
iii. Stimulates sales force
 It becomes very easier to convince sales force (retialers,
wholesalers ) that you buy this product when they have already
heard bout it in news
 If customers also have listened to it then it becomes easy for
retaikers and wholsealers also
iv. Lowers promotion cost
 if we maintain googd pubic relations, oru adv cost comes much
less because publicity in a way is free but in this we need lot of
cummicatiuon, skills to convince media that give us some time
in tv, newspaper and appreciate our product

Difference between advertising and personal selling

Advertising Personal selling

1. impersonal (businessman personally personal
doesn’t talk to consumers)

2. in advertising , one message is Salesman can change his talk according to

shown to all (in tv) customer’s needs

3. inflexible because message cant be Flexible because we can change

changed one message is displayed in
newspaper everyone will see that
same article

4. advertising in one time reaches the One time limied people can be reached
whole mass (salesman will cover one person by one)

5. cost per person is less because once High because one saleman in onece can
message is given it’ll reach to all and contact max 3 people at once
expense will be shared among all

6. advertising in small time we can But personal selling takes a lot of time
reach crore people because one person will convince how
many people

7. advertising is done through tv, radio, We need salesman

newspaper

8. feedback is not provided for eg you Direct and immediate feedback is given.
cannot give feedback to celebrity . Customers directly will tell the problem to
here we have to do market research salesman, salesman quickly gets to know
to know which product the what the customer is thinking about the
customer likes product

9. advertising is helpful to us in We make aware consumers through this, give

bringing interest in our product info and tell its merits

10. reaches many people at one time Helps us if we want to sell industrial
products, if we talk to intermediaries that is
where it helps us