Fahimullah (Atta)

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MARKET
A place where buyers
and sellers are
gathered to exchanges
their goods and
services.

or: the set of all actual and potential buyers

of a product or services is called market

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MARKETING
Marketing means the
transformation of
goods and services
from producer to
ultimate consumers.

Marketing: the process by which

companies create value for customers
and build strong customer relationships
in order to capture value
from customers in return

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ELECTRONIC MARKETING
Buying and selling of goods and services over the internet is
called E . Marketing.
Example: Online buying and selling.

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PRODUCER
Those who produce goods and services are called producers.
Example: Dell Computer are produced by Dell Company USA
and MTN mobile Phone connections are sold by MTN Company
so Dell and Areeba are producers.

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SUPPLIER
Are those persons or organizations which are providing raw
materials to producers for making products, e.g., a car
making company needs to purchase tyres from another
firm, batteries from another firms and many other parts
from other suppliers, as different firms supply their
products to different stores
Those who supply raw materials, products or services to
producers are called suppliers.
Example: Dell Company receives microchips from Intel
firm.

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CUSTOMER

Customer means the purchaser or buyer of the

products or goods and services is called customer.
Customer orientation + Coordinated marketing
activities = Maximum customer
Satisfaction and organizational success
Example: Zia ullah purchased a Mobile Phone for
1500 AFs and sold it to Ismail for 2000AFs.

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CONSUMER
Consumer means user of the product or goods and services is
called consumer.
Example: Rabia purchased clothes for using it.

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NEEDS
Needs include all those things that we require but we don’t
have them.
or: Needs are basic human requirements. people needs for air,
food , water , clothing etc
Example: We need cloths to wear and we don’t have them. So
it means our needs are not satisfied.

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TERMS
Wants:
 Wants are desires to have something without having money.
 Example:
 We want to have car, but we do not have money to buy it, this means our
want is not satisfy.
Exchange:
 Exchange is process of offer something (say money) and take something
(say goods).
Or: Give up something of value to get something of value.
 Example:
 Rashid offered his mobile phone to Majeed for AFs 3000 and Majeed paid the
AFs 3000 and received the mobile phone.
Conditions for exchange:
 1. Two or more parties with needs and wants to satisfy.
 2. The parties should give and take something to each other(each one has
something of value ).
 3. There should be a market place where buyer and seller can meet.
 4. Both parties must be involved voluntarily.

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EVOLUTION OF MARKETING
 Evolution of marketing means that how the present market has been
developed.
 Evolution of marketing consists of some stages which are discus in the
following words.
 Production Stage / Product Orientation Stage
 Sales Stage / Sales Orientation Stage
 Market Stage / Market Orientation Stage

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EVOLUTION OF MARKETING

1- Production Stage (late 1800 - 1930):

 The duration is before 1930.
 Focus on more production of products only.
 Customer choices are ignored.
 The quality was good but the prices were too high.
 The producer was the king of the market.
 There is no concept of sales and marketing.

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EVOLUTION OF MARKETING
2- Sales Stage (1930 - 1950):
 Duration is after 1930 and before 1950.
 This stage starts after Second World War.
 Emphasize on how to sell.
 The resources were too limited.
 Keep the price very low.
 Large money spent on advertisement, because selling concept
is possible through advertisement.

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EVOLUTION OF MARKETING
3- Market Stage: (1950 -1 980 still)
 The duration is after 1950.
 Products are produced according to taste of the customers.
 Select a specific place for the sale of product.
 Producer are success and achieve the organizational goals.

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4-MARKETING MIX: ( 4’PS)
THE COMBINATION OF A PRODUCT, HOW IT IS DISTRIBUTED AND PROMOTED, AND ITS PRICE.
TOGETHER THESE FOUR COMPONENTS OF STRATEGY MUST SATISFY THE NEEDS OF THE TARGET
MARKET(S) AND AT THE SAME TIME ACHIEVING THE ORGANIZATION’S MARKETING OBJECTIVES.

Product Price

Marketing max

place
promotion
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MARKETING MIX

Marketing is the mixture of some components and these are called

marketing mix or 4 P’s.
 Product (Good Services, and ideas)
 Product means an article which is made by a producer or business
organization.
 Or : A product is anything that can be offered to satisfy a need or want
.A product can consist of as many as three component :
1-Goods 2-Ideas 3-Services
Or
 The combination of goods-and-services that the companies offered
and which satisfies the needs of the customers is called product.
 Product must be according to the taste of the customers.
 Example: Mobile phone, computer, table, chair, pen etc.

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MARKETING MIX
Price:
 The money paid for the purchase of a product or service is called
price.
 Or :The amount of money charged for a product or service.
 The sum of the value that customers exchange for the benefits of
having or using the product or services.
Or
 The monetary consideration which is paid in return for a product
Price must be normal one which is affordable for everyone.
Example: Shoes have the price of 300 AFs.

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MARKETING MIX

Place:
 In general place means where we live (set, stand, sleep etc.)
 But In marketing place means a market, where buyer and seller meet
for transactions.
 Example: Mobile Market, Computer Market, Fruit Market. Etc.
Promotion:
 How to develop and to improve the sale volume, to increase profit.
Or
 A tool that can influence the products.
 Advertisements play a vital role in the promotion of a product.
 Radio, television, newspapers, posters and internet etc. are channels
of advertisement.

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MARKETING:

 Marketing means the transformation of

goods and services from producer to
ultimate consumers.

 Marketing is the economic process by

which
goods and services are exchanged between
the producer and the consumer and their
values
 Marketing is the process of
determined in terms of money prices.
providing Customer satisfaction at
profit.

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MANAGEMENT:
A set of activities
directed at
organizational
resources with the aim
of achieving
organizational goal in
an effective and
efficient manner

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MARKETING MANAGEMENT

Marketing management is a business discipline which is

focused on the practical application of marketing
techniques and the management of a firm's marketing
resources and activities.
Or: Marketing management is the art and science of choosing
target market and getting, growing and keeping customers
by creating delivering and communicating superior
customer value

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NATURE OF MARKETING
MANAGEMENT
It Combines the Fields of Marketing and Management
Marketing consists of discovering consumer needs and wants,
creating the goods and services that meet those needs and
wants; and pricing, promoting, and delivering those goods and
services. Doing so requires attention to six major areas -
markets, products, prices, places, promotion, and people.

Management is getting things done through other people.

Managers engage in five key activities - planning, organizing,
staffing, directing, and controlling. Marketing management
implies the integration of these concepts

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THE MARKETING CONCEPT AND SOCIAL RESPONSIBILITY:

 Socially responsible marketing is a marketing philosophy

that states a company should take into consideration what is
in the best interest of society in the present and long term.
 Socially responsible companies should aspire to produce
both desirable and beneficial products. These products
provide immediate satisfaction as well as long term benefits.
 This concept is actually the same marketing concept but
with the addition of society’s welfare.

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Needs
The feeling of deprivation is called need.
1. Needs: Needs are the basic human requirements and include food, clothing and shelter.
Without these humans cannot survive.
2. Wants: Are those needs which not basic in nature and without their fulfillment life will
be possible but if we get them life full of comfort like: you need to drink water but take
Pepsi to fulfill your need. thus wants are desire and are not mandatory part of life
3. Demand =Need + want+ purchasing power
types of demand
1. Negative demand: the people dislike the product or services even they pay money to avoid
the product or services.
2. Unexcited (zero) demand, No demand: When customer are
unaware of or uninterested in product
3. Latent Demand: A demand which cannot be satisfied by any existing
product.
4. Declining Demand: When demand of the product starts decline day- by-
day
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5. Irregular Demand: Demand for such products which varies seasonally, daily or even on
hourly basis and causing problems of idle or overworked capacity.
Or: The demand for seasonal variation of product.

6. Full Demand: Organizations face full demand when they produce up to

their full capacity. The marketing function is to maintain the current level of
demand by continuously improving its quality and by measuring customer’s
satisfaction.
Or: when the demand for a product is sufficient. (Supply= demand)
8. Over full demand: When the demand for a product is high then supply of
product is called overfull demand.
9. Unwholesome demand: the demand for those products which are
socially undesirable, marketing task is to get people who like something to
give it up using such tools as fear messages, price hikes and reduces
availability.
Goods: All those tangible things which are used to satisfy human needs and
wants, like: computer, pen, etc
Services: All those economic actions which satisfy human needs and
wants.
Or: All those economic actions which we can see but not touch and satisfy
human needs & wants
Product: A product may be goods, service , person, idea, place so all
tangible and intangible attributes which satisfy human needs and wants 25
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SCOPE OF MARKETING MANAGEMENT

The scope of marketing is very wide and multiple discipline

penetration for better results and functioning of the organization. It
may be analyzed in term of Marketing Performance through various
functions. The marketing function is inherent in every marketing
process and marketing function is to be performed on the basis of
various utilities. The major functions of Marketing are;

a)Function of exchange.
b)Function of physical distribution.
c)Function of facilities

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FUNCTIONS OF MARKETING
Marketing functions:
1. Exchange function: Exchange brings about changes in the
ownership of product.
 Buying function:
 Assembling function:
 Selling function:

2. Function of physical distribution: The next function of marketing

process is the physical supply. Physical transfer of goods from the
manufacturer to consumer takes place by means of storage and
transportation
 Storage
 Transportation:

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CONTI…

3. Function of facilities:
These functions are supporting activities. But these activities
contribute in carrying out other functions:
 Financing
 Risk –bearing :
 Standardization:

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MARKETING MANAGEMENT IN THE 21ST

CENTURY

The market place is changing with the passage of time as a

result of major forces that have created new behaviors, new
opportunities and new challenges…

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MARKETING MANAGEMENT IN THE 21ST

CENTURY

1. Changing technology:
During the industrial age, the companies were focusing on mass
production, mass consumption etc today the companies having
modern technology, to get information about the customers and
marketplace. The businesses can distribute their products anywhere in
the world due to rapid advance in communication technology. The
marketing manager must update his or her business with modern
technology

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DEREGULATION:
Govt. of country share and reduce the authority of a company
which has the monopoly power in market and then distribute
the authority to other small firms in order to create
employment opportunities and increase competition.

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PRIVATIZATION:
The process of transferring state ownership companies to private
sector. The main purpose of privatization is to enhance the
efficiency of the company

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CUSTOMER EMPOWERMENT
Customers increasingly expect high quality and services. Today’s
customers are having a lot of choice to purchase goods or services
from the market. The customers get information from internet and
other sources about shopping; now they are intelligent in choices. The
companies make what the customer wants rather than make what the
company need

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CUSTOMIZATION
The company is able to produce individually differentiated goods
whether ordered in person, online or on telephone
E.g. A manufacture company makes double bed by order of
some one

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INDUSTRY CONVERGENCE
Companies are facing intense competition from domestic and
foreign companies which is raising promotion cost and reduce
the profit margins. To reduce the risk in marketplace,
companies are trying to find new opportunities to invest new
other businesses and products.

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DISINTERMEDIATION
Now days the companies are distributing the goods and
services online or face to face to the customers. The chain of
distribution is slowly decreasing. It is the threats for the
wholesaler and retailer business who are running their
businesses on old methods

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FIRMS MARKETING FORCES

External Environment:
 The external forces exist outside the organization. These forces are not
controlled by the organization, or these are called as uncontrollable forces. it
contains following factors:
a-Firms Customers b-Suppliers c-Wholesaler, Retailer and Middleman
Internal Environment:
 The internal forces exist inside the organization. They can control by the
organization, or these are called as controllable forces. it includes employees or
human resources, technical resources, financial resources, location, building,
and production facilities.

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EXTERNAL FACTORS IN MARKETING

It includes Demographics, Economic Conditions, Competitors, Political and Legal

forces and Technology, Suppliers and Distributors which affects a firm’s
marketing activities.

Demographic:
These are the characteristics of human population such as age, size,
distribution and growth.
Or
The statistical study of human population is known as demographic.
It includes the ages of males, females, children and old and young people in a
market.
It includes the gender ratio (percentage) of males and females in a market.

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EXTERNAL FACTORS IN MARKETING

ECONOMIC CONDITIONS:
Includes the purchasing power of the customer and spending
patterns.
It includes the value of money, such as AFs.
It includes the salaries of consumers.
It includes the living style of consumers.
COMPETETIONS:
In general competition means how take leads from others, in
competition two or more than two peoples are involved.
Competitors are those companies that produce the same products in
one market.
Example: Dell and ACER Companies are producing same kind of
Laptops.

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EXTERNAL FACTORS IN MARKETING

POLITICAL AND LEGAL FORCES

The political and legal forces include laws, government
agencies, departments that make rules and regulations
related to marketing in a country.
It includes, Ministry of Commerce, and Supreme court of
Afghanistan.
TECHNOLOGY:
Technology means any equipments or tools which make
our work efficient or easy is called technology.
Technology includes Electronic or computer products that
we use in the marketing activities of a company.
Example: Electronic Boards for advertising at Shehr-e-
Now are used by marketing firms

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INTERNAL MARKETING FORCES

INTERNAL MARKETING FORCES OR CONTROLLABLE FACTORS IN
MARKETING:
Human Resources:
 All the Employees working for an organization are called as human
resources.
 Example:
 Marketing managers, Product Managers, Sale Manager, Labors. Etc.

Production Facilities:
 It includes machinery, computers, workers, mechanics that a
company uses to produce goods and services for consumers.

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INTERNAL MARKETING FORCES

Location:
 An organization is required to be located near with the customers, while some
organizations are near with raw material.
 Example:
 Cement Factory and Marble Factory.
Financial Resources:
 The amount of money that a firm has maintained with itself or at bank. A
company needs to have money to perform marketing activities. For purchasing
raw-materials from suppliers a company needs to pay money to them and it is
called as financial resources of the company.
Research and Development:
 The process through which find the problems and their solutions is called
research.
 Any activity that can lead a business to develop some new idea or then improve
the existing product. It includes generating new ideas.

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INTERNAL MARKETING FORCES

Company Image:
 Image means the picture come to the mind of the public when it thinks
of a particular manufacturer or his product.
 Example:
 Nokia mobile company, Lever Brother company, Dell computer
company. These companies have made a good image among
the customers.

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STAGES OF BUSINESS CYCLE

 The upward and down ward swing in the business activities is called business
cycle or trade cycle.
 The traditional business cycle goes through four stages.
 Prosperity
 Recession
 Depression
 Recovery

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STAGES OF BUSINESS CYCLE

Prosperity or Boom:
 Prosperity is period of economic growth.
 The economic activities reach to peak.
 In this the producer can add a new product.
Recession:
 A temporary reduction in business activities, not as serve as a depression.
 In this period the people become discourage, hopeless and angry.
 When the production capacity is high and the demand is low this caused the
recession.
Depression or Decline:
a period in which there is very little business activity and not many jobs
 In the period of depression there is a high unemployment.
 Low production.
 Low business activities.
 Low prices.

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STAGES OF BUSINESS CYCLE

Recovery:
 When the society out from recession that period is recovery.
 Again the business activities go towards prosperity.
Competition:
 In general competition means to take lead from others.
 Example:
 We can found competition almost in every field of life like competition in
classroom, in sports. Etc.
 But in marketing,
 Competition means rival between two or more companies.
 Example:
 Competition between Pepsi and Coca-cola, Competition between nokia and
Samsung.

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COMPETITION

Types of competition:
 There are three types of competition
 Brand Competition.
 Substitute Competition.
 General Competition.
Brand Competition:
 Brand competition comes from marketers of directly similar products.
 Similar products mean two or more products used for one purpose.
 Example:
 Brand Competition is of shoes is found in Service, Imperial and Bata,
and in Etisalat, Roshan and Afghan Telecom and in MTN. etc.

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COMPETITION
Substitute Competition:
 Substitute products satisfy the same needs, such type of competition
is known as substitute competition.
 Example:
 Tea and coffee is substitute for each other, while water, mineral water
and energy drinks or juices are substitute for each other’s etc.
General Competition:
 General competition means that each and every product in the market
compete with one another to attract the consumer’s attention towards
the product in order to purchase that product.
 Example:
 Mobile phones, laptop, television etc.

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MARKET SEGMENTATION

Market Segments: Groups of customers with different wants, needs,

behaviors in a market are called market segments.
Target Market: A specific Market Segment of (customers or
organizations) for which the seller designs specific promotional
activities is called as Target Market.
OR: A group of consumers having common needs or characteristics.
Market Segmentation: A process of dividing the total market for a
good or service into small, same groups is called market
segmentation.

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MARKET SEGMENTATION

Benefits of Market Segmentation

 Customers with similar wants, needs and characteristics can be
focused.
 It is easy to design promotional activities for a specific segment.
 By targeting a specific segment, much investment can be saved.
 It is easy to manage a specific segment of market.
Ultimate Consumer and Business Consumers
Ultimate consumers who buy goods or services for their own personal
or household use.
Business users who buy goods or services to use in their businesses, to
make other products, or to resell to other business users or consumers

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MARKET SEGMENTATION
CONSUMER MARKETS ARE COMMONLY SEGMENTED ON THE BASIS
OF:
Geographic Segmentation
we divide the total market on the bases of geographic criteria,
nation, states, regions ….
 The following are some examples of geographic variables often used
in segmentation.
 Region: by continent, country, state, or even neighborhood
 Size of metropolitan area: segmented according to size of population
 Population density: often classified as urban, suburban, or rural
 Climate: according to weather patterns common to certain geographic
regions

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MARKET SEGMENTATION

Demographic Segmentation: we divide market on the bases of

demographic factors
 Some demographic segmentation variables include:
 Age
 Gender
 Family size
 Family lifecycle
 Generation: baby-boomers, Generation X, etc.
 Income
 Occupation
 Education
 Ethnicity
 Nationality
 Religion
 Social class.

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MARKET SEGMENTATION

 Psychographic Segmentation
 Psychographic segmentation groups customers
according to their lifestyle. Activities, interests, and
opinions surveys are one tool for measuring lifestyle.
Some psychographic variables include:
 Activities
 Interests
 Opinions
 Attitudes
 Values

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MARKET SEGMENTATION

 Behavioral Segmentation : is a psychology in which we study the

behavior of people about a product or services
 Behavioral segmentation is based on actual customer behavior toward
products. Some behavioral variables include:
 Benefits sought
 Usage rate
 Brand loyalty
 User status: potential, first-time, regular, etc.
 Readiness to buy
 Occasions: holidays and events that stimulate purchases

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PRODUCT
Meaning of product:
 A product may be a good, service, place, person, or idea. Such as Pen,
Mobile Service, Plot in Kabul City, Burger Shop (Idea).
 A product is a set of physical and non-physical characteristics, which
include packaging, color, price, quality, and brand, plus the services
and reputation of the seller

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TYPES OF BUYERS

 Suspect
 Prospect
 Customer
 Consumer
 Ultimate Consumer
SUSPECT:
The Whole target Market about whom we are uncertain is known as a
suspect. It may be considered as the total Population of a target
market. Who are unknown that they will buy or not.
PROSPECT:
When people from the target market after awareness may try to
collect information about the product, they may or may not purchase
the product are known as prospect.

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TYPES OF BUYERS
CUSTOMER:
People from a target market who do purchases a product but could not
consume it are known as customer.
CONSUMER:
People from the Target Market who not only purchase the product but
also use the product for their own personal use are known as
consumer.
ULTIMATE CONSUMERS
Ultimate consumers buy goods or services for their own personal or
household use. They are satisfying strictly non business wants
BUSINESS USERS
Business users are business, industrial, or institutional organizations
that buy goods or services to use in their own businesses or to make
other products.
.

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PRODUCT
Levels of product
For Kotler, marketing was a 'social process by which individuals and
groups obtain what they need and want through creating and
exchanging products and value with others'.
 For him, a product is more than physical. A product is anything that
can be offered to a market for attention, acquisition, or use, or
something that can satisfy a need or want. Therefore, a product can
be a physical good, a service, a retail store, a person, an organization,
a place or even an idea.
 Kotler distinguished three components:
 need: a lack of a basic requirement;
 want: a specific requirement for products or services to match a need;
 Demand: a set of wants plus the desire and ability to pay for the
exchange

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CONTI…
Kotler defined five levels to a product:
1. Core benefit: the fundamental need or want that consumer satisfy by
consuming the product or services.
2. Generic product:
3. Expected product:
4. Augmented product:
5. Potential product:

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CLASSIFICATIONS OF PRODUCTS
1) Consumer product: which is used by final consumer?
2) Business product: which is used for further product?
CLASSIFICATION OF CONSUMER GOODS:
CONVENIENCE GOODS:
These are those products that consumers can get easily
without getting much information about the products price
and quality , and require less efforts to purchase them.
Consumers do not care about the brand names and they
are interested to buy the product with convenience (ease).
Example: Candies, drugs, and toothpastes, Milk Pak, Pen,
Bread etc.

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CLASSIFICATION OF CONSUMER GOODS

SHOPPING GOODS
Shopping Goods-Products: Are those products in which consumer
compares, price, quality, and style in different stores and then makes
a purchase.
Or: Are those products, which are having a bit high price and low purchase
frequency as compare to convenience products
In purchasing of Shopping Goods consumers consume some time and
makes efforts to find out the desired products, and save some money.
Example: Furniture, Cars, Laptops , A.C, T.V etc.

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CLASSIFICATION OF CONSUMER GOODS

SPECIALTY GOODS
Specialty Goods-Products: Specialty Goods are those goods
that are preferred by the consumers and they are ready to
spend more time and even money in finding the specific
product (brand) they need.
Consumers remain loyal to their favorite products
(specialty goods) and they are not interested to buy the other
products. They are really special products, for consumers, their
purchase frequency Is most minimum as compare to convenience
and shopping products, they are sometimes purchased on special
occasions, like a bridal dress, jewelry, diamond rings, Toyota Car
etc
UNSOUGHT GOODS
There are two kinds of unsought products: (1) new products
that the consumer is not yet aware of, and (2) products
that right now the consumer does not want.

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CLASSIFICATION OF BUSINESS GOODS

RAW MATERIALS
Raw materials are business goods that will become part of another
physical product. They have not been processed in any way, except as
necessary for economy or protection during physical handling. Or raw
material are the basic materials entering physically into the final
products for example building stones, raw cotton, raw jute etc
FABRICATING MATERIALS AND PARTS
Fabricating materials and parts are business goods that become an
actual part of the finished product. They have already been processed
to some extent, in contrast to raw materials. Fabricating materials will
undergo further processing. Examples include pig iron going to steel,
yarn being woven into cloth, and flour becoming part of bread..

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CLASSIFICATION OF BUSINESS GOODS

Installations
Installations are manufactured business products—the long-lived,
expensive, major equipment of a business user. Examples are large
generators in a dam, a factory building, and diesel engines for a rail
road, and jet airplanes for an airline.

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BRAND

BRAND
The word brand is a comprehensive term. A brand is a name, term, symbol,
and/or special design that is intended to identify the goods or services of
one seller or group of sellers. A brand differentiates one seller’s products
from those of competitors. A name consists of words, letters, and/or
numbers that can be vocalized.
 BRAND MARK
A brand mark is the part of the brand that appears in the form of a symbol,
design, or distinctive coloring or lettering It is recognized by sight but may
not be expressed when a person pronounces the brand name.
 BRANDNAME:The of a brand which can be spoken , for example Sony
Tv ,Toyota car , Nike shoes etc
TRADEMARK
A trademark is a brand that is given legal protection because, under the
law it has been appropriated by one seller Thus trademark is essentially a
legal term. All trademarks are brands and thus include the words, letters,
or numbers that can be pronounced

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LABELING

LABELS
Labels are classified as brand, grade, or descriptive. A brand
label is simply the brand alone applied to the product or package

There are three primary kinds of labels:

•Brand Label: It is simply the brand alone applied to the product or package.

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Descriptive Label:

It gives objective information about the product’s use, care,

performance, and/or other features like size, ingredients and
nutrition etc.

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Grade Label:
It identifies the product judged quality with a letter, number, or
word.
For example: A, B, C grade or 1, 2, or 3 grade.

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PRICE

Packaging.
Packaging may be defined as all
the activities of designing and
producing the container or
wrapper for a product.
PRICE
Price can be defined in many
ways and can take many forms.
The actual price is what one
party is willing to give up
acquiring something of value
from another party. We
commonly think of price in
monetary terms; however, it
can be anything of value
that is exchanged for
something else.

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PRICING OBJECTIVES
Objectives tend to fall into one of three broad classes:
Profit objectives, sales objectives, or competitive position objectives.
PROFIT OBJECTIVES
Profit maximization and target return on investment are two major
types of profit objectives. Profit maximization means that the firm
attempt to earn the largest profit possible. To do this, the firm sets the
price at the point where the additional revenue generated by the sale
of one more unit just equals the additional cost of producing and
marketing this additional unit.

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PRICING OBJECTIVES

SALES OBJECTIVES
Many organizations state their pricing objectives in sales-related terms. These
goals can take a number of forms:
• Maintenance or growth in absolute sales
• Maintenance or growth in market share
Minimum sales necessary to survive
Sometimes the firm’s objective will be to address sales volume in terms of dollars
or units sold. When industry sales are flat or the economy is in a recession, the
best a company can hope for may be to keep sales volume flat instead of
decreasing.
Competitive Position Objectives
Some firms set pricing objectives in relationship to the actions of their
competitors.
Their goals may be to meet or prevent cornpetition. Many firms attempt to
match the pricing of This pattern is very common in industries.

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DISCOUNT

DISCOUNTS AND ALLOWANCES

Discounts and allowances result in a deduction from the base (or list)
price. The deduction may be in the form of a reduced price or some
other concession
TRADE DISCOUNTS
discounts are deductions from a seller’s list price that are offered to
encourage customers to buy in larger amounts or to make the most of
their purchases from that seller. Discounts are based on the size of the
purchase, either in money or in units.

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DISCOUNTS
Cash Discounts
A cash discount is a deduction granted to buyers for paying
their bills within a specified period of time. The discount is
computed on the net amount due after first deducting trade
and quantity discounts from the base price.

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DISTRIBUTION CHANNEL

What is Distribution Channel?

A distribution channel consists of the set of people, firms involved in
the flow of title to a product as it moves from producer to ultimate
consumer.
A channel of distribution always includes both the producer and the
final customer for the product in its present form as well as any
middlemen (Such as Retailers and Wholesalers).
MIDDLEMEN
A middleman is a business firm that renders services directly related
to the purchase and/or sale of a product as it flows from producer to
consumer. A middleman either owns the product or actively aids in the
transfer of ownership. Often, but not always, a middleman takes
physical possession of the product, whereas others do not physically
handle it.

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IMPORTANT CLASSES OF MIDDLE
MEN

Middlemen are commonly classified on the basis of whether or not they

take title(ownership) to the products involved.
1. Merchant middlemen actually take title to the goods they are
helping to market.
2. Agent middlemen never actually own the goods, but they do
actively assist in the transfer of title. Real estate brokers,
manufacturers’ agents, and travel agents are examples of agent
middle men. The two major groups of merchant middlemen are
wholesalers and retailers. Middlemen operate as vital links between
producers and ultimate consumers or business users.

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 MAJOR CHANNELS OF Fahimullah (Atta)
DISTRIBUTION

DISTRIBUTION OF CONSUMER GOODS

Five channels are widely used in marketing tangible products intended
for ultimate consumers:
Producer consumer. The shortest, simplest distribution channel
for consumer goods involves no middlemen. The producer may sell
from door to door or by mail. For instance, Southwestern Company
uses college students to market its books on a house-to-house basis.
Producer retailer consumer. Many large retailers buy directly
from manufacturers and agricultural producers.

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MAJOR CHANNELS OF DISTRIBUTION

Producer —* wholesaler —* retailer —* consumer. If there is a “traditional”

channel for consumer goods, this is it. Small retailers and manufacturers by the
thousands find this channel the only economically feasible choice.
Producer — agent — retailer — consumer. Instead of using wholesalers,
many producers prefer to use agent middlemen to reach the retail market,
especially large-scale retailers. For example, a manufacturer of a glass
cleaner selected a food broker to reach the grocery store market, including
large chains.
Producer —* agent —* wholesaler —* retailer —* consumer. To reach small
Retailers, producers often use agent middlemen, who in turn call on
Wholesalers that sell to small stores.

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MAJOR CHANNELS OF DISTRIBUTION

Distribution OF BUSINESS GOODS

The four most common channels for business goods are:
Producer — user. This direct channel accounts for a greater dollar
volume of business products than any other distribution structure.
Manufacturers of Large installations, such as airplanes, generators,
.and heating plants, usually sell directly to users
Producer — industrial distributor —* user. Producers of operating
supplies and small accessory equipment frequently use industrial
distributors to reach their markets. Manufacturers of building materials
and air-conditioning equipment are two examples of firms that make
heavy use of the industrial distributor.

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MAJOR CHANNELS OF DISTRIBUTION

Producer —* agent — user. Firms without their own sales departments

find this a desirable channel. Also a company that wants to introduce
a new product or enter a new market may prefer to use agents rather
than its own sales force.
Producer — agent —* industrial distributor — user. This channel is
similar to the preceding one. It is used when, for some reason, it is not
feasible to sell through agents directly to the business user. The unit
sale may be too small for direct selling. Or decentralized inventory
may be needed to supply users rapidly, in which case the storage
services of an industrial distributor are required

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MAJOR CHANNELS OF DISTRIBUTION

Distribution OF SERVICES
The intangible nature of services creates special distribution requirements.
There are only two common channels for services:
Producer — consumer. Because a service is intangible, the production process
and/or sales activity often requires personal contact between producer and
consumer. Thus a direct channel is used. Direct distribution is typical for many
professional services, such as health care and legal advice, and personal
services, such as haircutting and weight-loss counseling. However, other
services, including travel, insurance, and entertainment, may also rely on direct
distribution.
Producer —* agent —* consumer. While direct distribution often is necessary
for a service to be performed, producer-consumer contact may not be required
for key distribution activities. Agents frequently assist a services producer with
transfer of ownership (the sales task) or related tasks. Many services, notably
travel, lodging, advertising media, entertainment, and insurance, use agents.

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WHOLESALER & RETAILER

Wholesaler
Person or firm that buys large quantity of goods from various
producers or vendors, warehouses them, and resells to retailers.
Wholesalers who carry only non-competing goods or lines are called
distributors.

Retailer
A business or person that sells goods to the consumer, as opposed to
a wholesaler or supplier, who normally sell their goods to another
business.

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SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate

the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a
business .
Setting the objective should be done after the SWOT analysis has been
performed. This would allow achievable goals or objectives to be set for the
organization.
Strengths: characteristics of the business, or project team that give it an
advantage over others
Weaknesses (or Limitations): are characteristics that place the team at a
disadvantage relative to others
Opportunities: external chances to improve performance (e.g. make greater
profits) in the environment
Threats: external elements in the environment that could cause trouble for the
business or project.

83
‫د حاالتو تحلیلول‪PERFORMING SITUATION ANALYSIS‬‬

‫د حاالتو تحلیل یا د ‪ SWOT‬تحلیل په نامه هم پیژندل‬ ‫‪‬‬

‫کیږي‪.‬‬
‫یوه کمپنې خپل داخلي قوت )‪ strength (S‬او ضعف‬ ‫‪‬‬

‫)‪ weakness (W‬نقطي په ګوته کوي او همدارنګه‬

‫خپل بیروني فرصتونه )‪ opportunities (O‬او‬
‫تهدیدونه )‪ threats (T‬په ګوته کوي‪.‬‬
‫یوه کمپنې همیشه خپل د قوت او ضعف نقطي د‬ ‫‪‬‬

‫خپلو رقیبانو په پرتله تحلیلوی او بیا وروسته تصمیم‬

‫نیسي‪.‬‬
‫همدارنګه د چاپیریال د فرصتونو او تهدیدونو تحلیل تر‬ ‫‪‬‬
‫د حاالتو تحلیلول‪PERFORMING SITUATION ANALYSIS‬‬

‫مثال‪ :‬د ‪ Nike‬کمپنې یوه سروي څو کاله دمخه‬ ‫‪‬‬

‫ترسره کړه چی معلومه کړی ددوی د بوټانو‬

‫مشتریان د بوټانو ترڅنګ نور څه غواړي‪.‬‬
‫اکثریت مشتریانو د لمرعینکو او ساعتونو‬ ‫‪‬‬

‫غوښتونکي و‪.‬‬
‫پدی ډول نوموړي کمپنې د بوټانو سره یوځای‬ ‫‪‬‬

‫عینکې او ساعتونه هم عرضه کړل‪.‬‬

‫بالخره نوموړي کمپنې په ډیر کم وخت کې زیات‬ ‫‪‬‬

‫پرمختګ وکړ‪.‬‬
‫د حاالتو تحلیلول‪PERFORMING SITUATION ANALYSIS‬‬

‫د افغان بیسیم شرکت ‪ SOWT‬تحلیل نتایج‪:‬‬ ‫‪‬‬

‫‪Strengths‬‬ ‫‪‬‬

‫د کمپنې نوم یو لوي قوت دی‪.‬‬ ‫‪‬‬

‫په کار پوه کارګران لري‪.‬‬ ‫‪‬‬

‫د خدماتو د مشتریانو په څانګه کې بااخالقه کارګران‬ ‫‪‬‬

‫درلودل‪.‬‬
‫د کارګرانو د تشویق په خاطر هر کال نوموړې‬ ‫‪‬‬

‫کمپنې خپلو کارګرانو ته په معاش کې اضافوالی‬

‫راولي‪.‬‬
‫د حاالتو تحلیلول‪PERFORMING SITUATION ANALYSIS‬‬

‫‪Weaknesses‬‬ ‫‪‬‬

‫د پوښښ ساحه‪ :‬نورو مخابراتي شرکتونو په نسبت د‬ ‫‪‬‬

‫افغان بیسیم د پوښښ ساحی کموالی‪.‬‬

‫کمزوری مارکیټ ‪ :‬د نورو رقابت کونکو په نسبت‬ ‫‪‬‬

‫کمزوری مارکیټ‪.‬‬
‫نه مقایسه کیدونکې بستې او پرمختګونه ‪ :‬افغان بیسیم‬ ‫‪‬‬

‫خپلو مشتریانو ته په هغه اندازه چی الزم دی بستې نه‬

‫وړاندي کوي‪.‬‬
‫‪ 3G‬نه شتون ‪ :‬د دری جی نه شتون هم یوه کمزوزی‬ ‫‪‬‬

‫نقطه ده‪.‬‬
‫د حاالتو ‪PERFORMING SITUATION ANALYSIS‬‬
‫تحلیل‬

‫‪Opportunities‬‬ ‫‪‬‬

‫د پوښښ ساحی ته پراخوالی ورکول‪.‬‬ ‫‪‬‬

‫د نوی تکنالوژی سره ځان عیارول‪.‬‬ ‫‪‬‬

‫د ‪ 3G‬سیستم فعالول‪.‬‬ ‫‪‬‬

‫‪Threats‬‬ ‫‪‬‬

‫امنیت‬ ‫‪‬‬

‫فساد‬ ‫‪‬‬

‫د تکنالوژې خطرات‬ ‫‪‬‬

‫رقابت کونکې‬ ‫‪‬‬

‫طبعې خطرات‬ ‫‪‬‬

‫‪‬‬
 Fahimullah (Atta)

Customer Satisfaction

Customer satisfaction is the measure of how a company’s products and

services live up to a customer’s expectation. Customer Satisfaction
has become extremely important for businesses due to increasing
competition.
After doing business with you, Customers fall into three categories. They
can be either satisfied customers, delighted customers and
dissatisfied customers.
Satisfaction = when the performance of a product is equal to the
expectation
Dissatisfaction = when the performance of a product is below the
expectation
Delight = when the performance of a product is above the expectation

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 Fahimullah(Atta)

DEFINITION
A system that analyzes and assesses marketing
information, gathered continuously from inside and
outside an organization. That marketing information
provides for decisions such as product development or
improvement, pricing, packaging, distribution, media
selection, and promotion.
OR
A Marketing Information System can also be defined as
'a system in which marketing data is formally gathered,
stored, analyzed and distributed to managers in
accordance with their informational needs on a regular
basis'
A marketing information system can be used
operationally, managerially, and strategically for several
aspects of marketing.
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COMPONENT OF MARKETING INFORMATION
SYSTEM (MKIS)

Internal Records:
These information gathered from within the company to evaluate
marketing performances and to detect marketing problems and
opportunities. Most marketing managers use internal records and
reports regularly, especially for making day-to-day planning,
implementation and control decisions.

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MARKETING INTELLIGENCE

It is a set of procedures
and sources used by
managers to obtain their
everyday information
about pertinent
development in the
marketing environment . It
is done by:
• Reading books
• Reading news papers
• Talking to customers
• Talking to suppliers,
distributor etc
Fahimullah(Atta)

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MARKETING RESEARCH SYSTEMS

Marketing research system is a

systematic way of designing,
collecting, analyzing and
reporting data and findings
which are relevant to a specific
marketing situation, faced to
the company.
is used to solve a specific
marketing problem of the
company

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ADVANTAGES OF MARKETING INFORMATION

SYSTEM

1.Organized data collection.

2. A broad perspective.
3. The storage of important data.
4. Coordinated marketing plans.
5. Speed in obtaining sufficient information to make
decisions.
6. Data kept over several time periods.

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DISADVANTAGES OF MARKETING INFORMATION

SYSTEM

The disadvantages of a Marketing information system are high

initial time and labor costs and the complexity of setting up an
information system. Marketers often complain that they lack
enough marketing information or the right kind, or have too
much of the wrong kind. The solution is an effective marketing
information system.

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MARKETING DECISION SUPPORT SYSTEM

A marketing decision support

system (sometimes
abbreviated MKDSS) is a
decision support system for
marketing activity. It consists of
information technology,
marketing data and modeling
capabilities that enable the
system to provide predicted
outcomes from different
scenarios and marketing
strategies.

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 Fahimullah(Atta)

THE MARKETING RESEARCH PROCESS

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THE MARKETING RESEARCH PROCESS

1. Define the problem and

research objectives:
A well defined problem is half
solved

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THE MARKETING RESEARCH PROCESS

2. Developing the Research

Plans :
It involves planning for gathering
the needed information. The
research plan involves decision:

Data sources:
i) Secondary Data: Already
gathered data for some purpose
and can also be used for
this purpose and
ii) Primary Data: Data gathered only
for the specific purpose.

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THE MARKETING RESEARCH PROCESS

3.Collect the information:

It is necessary for the organization
to take care while collecting
information and to edit it properly

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THE MARKETING RESEARCH PROCESS

4. Analyze the information:

Researcher tabulates the data
and develops frequency distribution. A
verages & measures of dispersion are
computed for the major variables

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THE MARKETING RESEARCH PROCESS

5. Present the finding:

present major findings that are
pertinent to the major marketing
decisions facing

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THE MARKETING RESEARCH PROCESS

6. Make Decision

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CONSUMER MARKETS

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 Fahimullah(Atta)

DEFINITION
Markets dominated by products and services designed for the general
consumer. Consumer markets are typically split into four primary
categories: consumer products, food and beverage products, retail
products, and transportation products. Industries in the consumer
markets often have to deal with shifting brand loyalties and
uncertainty about the future popularity of products and services

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THE BUSINESS MARKET VERSUS THE CONSUMER

MARKET

Consumer market represents ultimate consumers who buy goods and

services for their own personal or household use. personal use means
the products which are purchased and used for personal consumption,
e.g.
 A. You have purchased a mobile phone for yourself and you are
using it personally, your father has purchased a car for your home,
this is domestic consumption, or domestic use
 B. Washing machine which is used in your home is being
purchased by your parents for domestic purposes, not for earning
profit purposes
While, in business markets the products are made and used only and
only for earning profit purposes, not for consumption purposes e.g.
Taxi driver is using taxi for earning income.

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CONSUMER BEHAVIOR

Consumer behavior: is the study of individuals, groups, or

organizations and the processes they used to select, secure, and
dispose of products, services, experiences, or ideas to satisfy needs
and the impacts that these processes have on the consumer and
society. Or
Consumer behavior is a psychology in which we study the behavior of
people about a product or service. Consumer behavior means what
people do when they buy and use a product or service
A consumer’s buying behavior is influenced by cultural, social, and
personal factors.

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FACTOR OF INFLUENCING CONSUMER BUYING

BEHAVIOR

Cultural Factors
Culture, subculture, and social class are particularly important influences on
consumer buying behavior.
Culture is the fundamental determinant of a person’s wants and behavior.
Through family and other key institutions, a child growing up in the United
States is exposed to values such as achievement and success, activity,
efficiency and practicality, progress, material comfort, individualism, freedom.
A child growing up in another country might have a different view of self,
relationship to others, and rituals. Marketers must closely attend to cultural
values in every country to understand how to best market their existing
products and find opportunities for new products.

110
According to the informal norms of culture of the mountainous
Asian kingdom of Bhutan, people greet each other by
extending their tongues and hands
 Fahimullah(Atta)

FACTOR OF INFLUENCING CONSUMER BUYING

BEHAVIOR
 Each culture consists of smaller subcultures that provide more specific
identification and socialization for their members.
Subcultures include nationalities, religions and geographic regions. When
subcultures grow large and companies often design specialized marketing
programs to serve them.
Social Factors
In addition to cultural factors, social factors such as reference groups, family, and
social roles and statuses affect our buying behavior.
Reference groups
The impact of reference groups varies across products and brands. For example if
the product is visible such as dress, shoes, car etc then the influence of
reference groups will be high. Reference groups also include opinion leader (a
person who influences other because of his special skill, knowledge or other
characteristics).
 .

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FACTOR OF INFLUENCING CONSUMER BUYING

BEHAVIOR

Family
Buyer behavior is strongly influenced by the member of a family. Therefore
marketers are trying to find the roles and influence of the husband, wife and
children. If the buying decision of a particular product is influenced by wife then
the marketers will try to target the women in their advertisement. Here we
should note that buying roles change with change in consumer lifestyles.
Roles and Status
Each person possesses different roles and status in the society depending upon the
groups, clubs, family, organization etc. to which he belongs. For example a
woman is working in an organization as finance manager. Now she is playing
two roles, one of finance manager and other of mother. Therefore her buying
decisions will be influenced by her role and status.

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 Fahimullah(Atta)

FACTOR OF INFLUENCING CONSUMER BUYING

BEHAVIOR

Age
Age and life-cycle have potential impact on the consumer buying behavior. It is
obvious that the consumers change the purchase of goods and services with
the passage of time. Family life-cycle consists of different stages such young
singles, married couples, unmarried couples etc which help marketers to
develop appropriate products for each stage.

114
 AGE & LIFECYCLE SEGMENTATION:
AS PEOPLE AGE THEIR NEEDS AND LIFESTYLES
CHANGE.
 Fahimullah(Atta)

THE CONSUMER PURCHASING PROCESS:

These basic psychological processes play an important role in understanding

how consumers actually make their buying decisions. Marketers must
understand every stage of consumer behavior. Consumer behavior questions in
terms of “who, what, when, where, why, how. Marketer scholars have
developed a “stage model” of the buying decision process. The consumer
passes through five stages:
Problem recognition:
The buying process starts when the buyer recognizes a problem or need. One of
the person’s normal needs- hungers thirsts, rises to a threshold level and
becomes a drive. A need can be aroused by an external stimulus A person may
admire a neighbor’s new car or see television ads for a product. Marketer need
to identify the circumstances that investigate a particular need by gathering
information from a number of consumers.

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 Fahimullah(Atta)

THE CONSUMER PURCHASING PROCESS:

Information search:
An aroused consumer will be involved to search for more information.
There are two types of information sources, active search and
passive reception. The person may enter an active information
search, looking for reading material, phoning friend, going online and
visiting stores to learn about the product.
The passive reception process is another means of information
acquisition. In this mode, consumers acquire information in the
process of living their daily lives. This information might be stored
away for a future time when the need to address.

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 Fahimullah(Atta)

THE CONSUMER PURCHASING PROCESS:

Evaluation of alternatives:
In this stage consumers compare competitive products to make final
decision. Some basic concepts will help us understand consumer
evaluation process. First the consumer is trying to satisfy a need.
Second, the consumer is looking for certain benefits from the product
solution. Third, the consumer sees each product as a bundle of
attributes with varying abilities.
Purchase decision:
In the evaluation stage, the consumer forms preferences among the
brands in the choice sets the consumers may also form an intention to
buy the most preferred brand. In executing a purchase intention, the
consumer may make up to five sub-decisions, brand, dealer, quantity,
timing and payment method.

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 Fahimullah(Atta)

THE CONSUMER PURCHASING PROCESS:

Post purchase behavior:

After the purchase, the consumer might feel favorable or unfavorable
while using that product. If the consumers satisfied from that product,
they will buy more and again and again. Dissatisfied consumer never
purchase again. The marketer job is to get feedback from customers.

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 Fahimullah (Atta)

MARKETING AND SOCIETY

Marketing and society:

The role of marketing in the society is to create a competitive
environment and develop products that satisfy needs. It also aids to
increase labor thus creating employment by building demand for
products.
Importance of marketing from society point of view:
(I) Marketing improves standard of living
(II) Marketing connects the producers and consumers
(III) It provides employment opportunities
(IV) It helps to provide economic stability
(V) It helps to utilize our natural resources

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 Fahimullah (Atta)

PROMOTION

Promotion Nature: -
Promotion means such activities, in which the information regarding
products or services are brought into the notice of the customer or
consumer we can also say that its such campaign in which market
awareness or customer awareness activities are carried out when the
marketing manager places products in the markets, so his next and
most important function is to brining awareness or to inform customer
that product is being launched by firm and its now available for
consumption. Advertisement is the best source of promotion a product
in advertisement product’s positive ties and utilities are described is
such way that which create a type of desire in customer’s mind and
customer will purchase it.

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METHOD OF PROMOTION

It is quit possible that advertisement may not help organizations to

get their marketing objectives so in this situation different promotional
strategies should be adopted for making a product best selling brand
For example “XYZ” company has launched a product with heavy
advertisement by using electronic and print media, but customers are
still in not interested so show some interest in that product. So here
marketing manager should design some promotion strategies which
can help in increasing the demand, so fallowing are some method for
promoting in product in market.

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METHOD OF PROMOTION

Distribution of Sample: -
If a firm believes that our product is the best, but
competitors enjoy good will in market, so in this situation
free sample should be distributed amongst customer so
that they may come to knows that what the quality of that
product is.
Coupons: -
Coupons area types of certificates, which are given,
normally to distributor for making effects to sell the
products for example gold leaf gives coupons on regular
basis to both customers and consumers.
Note: is a piece of paper that can be used to get something
without paying for it, or at reduce price.

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METHOD OF PROMOTION

Cash Reward: -
It could also be the strategy to motivate customer in minatory terms.
Let’s suppose, “ASO” offers a sales plane that if a customer purchase
more than “100” liters he will be given R “50” as a gift, so due to this
sales can be promoted.
Buy 1 Get 1: -
If the products sales volume is reducing day by day, so firm-should
inform customer that if they will purchase one unit, 2nd will be given
free for example, “KARIGER’has started such strategy in which, they
offer buy one and get one free.

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METHOD OF PROMOTION

Advertising specialty:-
Advertising specialty mean that when a company free distributes its
up-coming product with its existing product, it will bring a variance
customer’s mind, and at the time of lunching, heavy advertisement
will not be required.
Games, Seminars:-
The most popular and modern way of promotion is set up a game or a
seminar show it will automatically catch-up the attention of customer,
for example “SERF EXCELL”is following this strategy by lunching
different games in big cities, or “Safe Guard” has standard a cartoon
show “Commander safe guard” which is a attracting customers very
highly.

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METHOD OF PROMOTION

Discount: -
Discount means reduction in the list price of commodities, so this is
very important tool because it will help firm to increase the sales.
Normally discount is given in bulks purchases.
Bulk purchase:-
Some manufacturing firm increase the discount rate beyond its policy
in order to encourage customer to purchase more and more.

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MARKETING GROWTH STRATEGEIS

Not every growth strategy is appropriate for every small business.

Since the wrong strategy can devastate your business, it's important
to determine whether you are selling new or emerging products in a
new or existing market.
Market Penetration (Existing Products/Existing Markets)
Businesses that find a situation that involves neither new markets nor
new products. A strategy that is designed to give the business a
greater percentage of market shares. This type of strategy usually
seeks to gain a competitive edge through pricing, marketing, or other
initiatives. Additionally, market penetration can be achieved by
increasing customer usage through loyalty programs and incentives
targeting your existing customer base.

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MARKETING GROWTH STRATEGEIS

Market Development (Existing Products/New Market)

A more common scenario is one in which a small business owner
attempts to develop a new market for their existing products and
services. The new market can be geographical (e.g. foreign export).
Product Development (New Products/Existing Market)
A growth strategy based on product development is the mirror image
of a market development strategy. Instead of pioneering a new market
with existing products, you attempt to roll out a new product(s) in a
market with which you are already familiar.

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MARKETING GROWTH STRATEGEIS

Diversification (New Products/New Market)

Diversification is a high-risk growth strategy because both the
products and the market are new for the entrepreneur.

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COMPETITOR’S IDENTIFICATION
Many factors play a part in forming a successful business strategy.
Part of this involves creating an effective competitive strategy. This
helps the company develop an advantage over the competition. A
competitive advantage occurs when the business provides a product
or service that the competition does not, or when the company
provides a better product or better service than the competition. The
first step in creating a competitive strategy is to identify the
competition. This article will discuss three methods of identifying the
competition.

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COMPETITOR’S IDENTIFICATION
Industry Method
The industry method of identifying the competition is based upon the industry
in which the business operates. The competition is identified as companies that
produce the same or similar products or provide the same or similar services as
your company. Using the industry method, a furniture manufacturer would
identify other furniture manufacturers as competitors, and a cleaning service
would identify other cleaning service providers as competitors.
Market Method
The market method of identifying the competition is based upon marketing
products or services to customer needs. The competition is identified as
companies that fulfill the same customer need. Using the market method, a
movie theater may identify the customer need as entertainment. Competitors
could be identified as video rental stores, amusement parks, and concert
venues.

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COMPETITOR’S IDENTIFICATION
Strategic Groups Method
The strategic group’s method of identifying the competition is based upon
similarity in strategy. The competition is identified as companies that have
similar strategies, resources, and customers. Using the strategic group’s
method, a discount clothing store with low pricing strategies would identify
other discount stores, such as discount department stores, as competitors..

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COMPETING CONCEPTS

The competing concepts under which organizations have

conducted marketing activities include the following:
The production concept:
The production concept is one of the oldest concepts in
business. It holds that consumers will prefer those products
that are widely available and inexpensive. Manager of
production oriented business focuses on achieving high
production efficiency, low costs and mass distribution. This
concept is used in different situation like when company wants
to expand the market, when the demand for the product is too
high in market and when the cost of production is too high. It
is also known as product centered “make and sell” philosophy.

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COMPETING CONCEPTS
The product concept:
The product concept holds that consumers will favor those products
that offer the most quality, performance, or innovative features.
Managers in these organizations focus on making superior products
and improving them over time to time. But a new or improved product
will not be successful unless the product is priced, distribute,
advertised and sold properly.
Selling concept:
The selling concept holds that consumer will not buy enough quantity
of products. The organization must, therefore undertake an aggressive
selling and promotion effort. The purpose of marketing is to sell more
stuff to more people more often for more money in order to make
more profit. Most firms practice the selling concept when they face
overcapacity. It means when the supply of product is greater than the
demand for a product.

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COMPETING CONCEPTS

Marketing concepts:
Marketing concept emerged in the mid 1950s. Instead of a product
centered “make and sell” philosophy, business shifted to a customer
centered “sense and respond” philosophy. The job is not to find the
right customer for your product, but the right product for your
customers. This concept holds that the key to achieving organizational
goals consist of the company being more effective than competitors in
creating, delivering and communicating superior customer value to its
target market.

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COMPETITOR ANALYSIS

Competitor analysis in marketing is an assessment of the strengths and

weakness of current and potential competitor . This analysis provides
both an offensive and defensive strategic context to indentify
opportunities and threats.
Developing a detailed profile for competitors’ analysis:
A common technique is to create detailed profiles on each of your major
competitors. These profiles give an in-depth(complete) description of the
competitor’s background ,finances, products, markets, facilities , and
strategies. This involves:

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CONTI….
 Background:
1) location of offices, plants, and online presences
2)history-key personalities, dates, events , trends
3)Ownership, corporate governance, and organizational
structure
Financials:

1) Ratios, dividend policy, and profitability

2) various financial ratios, liquidity, and cash flow
3) profit growth profile

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