Marketing Management
Marketing Management Philosophies
Ø Marketing Management Philosophies :
(i)
Production Concept : It focuses on increase in
production quantity.
(ii)
Product Concept : It refers to the development of
variety, quality and new features of the product.
(iii) Selling Concept : It refers to the use of selling and promotional techniques.
(iv) Marketing Concept : It concentrates on customer satisfaction.
(v)
Societal Marketing Concept : It refers to the customer
satisfaction along with social welfare.
Marketing Mix-Concept and Elements
Ø Marketing
mix :
Product Price
Promotion Place
4Ps of Marketing Mix
Ø Product : It means anything which can be
offered to a market to satisfy the want or need of the customers.
Ø Important decisions related to a
product include :
I. Branding : It is a process of giving a name,
or a sign or a symbol to a used product.
l Brand : It is a name, term, sign, symbol,
design or any combination used to differentiate product from its competitors. Its components are :
(i)
Brand name : Verbal component of a brand.
(ii)
Brand mark : Recognised in the form of symbol,
colour, etc. but non-utterable.
(iii)
Trade mark : Legally registered brand or part
of the brand.
A good
brand name should be easy to pronounce, suggestive, distinctive, flexible,
versatile, legally registered and permanent.
II.Packaging
: It is an
art of designing and producing the container or the wrapper of a product. l Levels of
packaging :
(i)
Primary package : It refers to product’s immediate
container.
(ii)
Secondary package : It refers to an additional layer
of protection, kept till product is ready to use.
(iii)
Transportation
package : It refers to further packaging components necessary for storage and transportation of the product.
l Functions of Packaging :
(i)
Product identification.
(ii)
Product protection.
(iii)
Convenient use of a product.
(iv) Product promotion.
III. Labelling : It is a process of putting/designing labels on the product.
l Label : It may be a small slip or printed
statement that conveys information like nature, content, ownership, price, etc. about the product to the
consumers.
Functions of Labelling :
(i)
Describe the product and its components.
(ii)
Identify the product or the brand.
(iii)
Helps in grading of the products.
(iv) Helps in promotion of the
products.
(v) Provides information required by
the law.
Ø Price : It is the amount paid by a buyer
or received by a seller in consideration of the purchase/sale of a product.
l Factors
affecting price determination :
(i)
Product cost.
(ii)
Utility and demand.
(iii)
Competition.
(iv) Government regulation.
(v) Pricing objectives.
(vi) Marketing methods used.
Ø Place or Physical Distribution : It
involves activities necessary to transfer ownership of products to the end customers and making products
available at the right time and at the right place.
l Channels of Distribution : Distribution
channels consist of intermediaries such as —retailers, wholesalers and distributors
through which goods pass on from manufacturers to the customers.
l Types of
channels :
I. Direct
channel (zero level) Manufacturer – Consumer
II. Indirect channel
(i)
One level : Manufacturer – Retailer –
Consumer
(ii)
Two level : Manufacturer – Wholesaler – Retailer
– Consumer
(iii)
Three level : Manufacturer – Agent –Wholesaler
– Retailer – Consumer
l Factors Determining the choice of Channels :
(i)
Product related factors,
(ii)
Company characteristics,
(iii)
Competitive factors,
(iv) Market factors,
(v) Environmental factors.
l Components of a physical distribution :
(i)
Order processing,
(ii)
Transportation,
(iii)
Warehousing,
(iv) Inventory control.
Ø Promotion mix : It refers to combination tools
used to communicate with potential customers to inform about a product and persuading them to buy it.
Ø Elements of a Promotion Mix :
I. Advertising : It is an
impersonal form of communication which is paid by the marketers to promote some goods or services.
l Merits of
advertising :
(i)
Mass reach,
(ii)
Enhance customer satisfaction and confidence,
(iii)
Expressiveness.
l Objections to Advertising :
(i)
Adds to cost,
(ii)
Undermines social values,
(iii)
Confuses the buyers,
(iv) Encourages sales of inferior
products.
II.Personal
Selling : It involves face-to-face contact between seller and the prospective
customer for effecting a sale.
l Merits of Personal Selling :
(i)
Flexibility,
(ii)
Direct feedback,
(iii)
Minimum wastage.
l Qualities of a good salesman :
(i)
Physical qualities,
(ii)
Psychological qualities,
(iii)
Technical qualities,
(iv) Good communication skills,
(v) Honesty,
(vi) Courtesy,
(vii) Persistence.
II.Sales
Promotion : It refers
to short-term incentives, offered to encourage immediate sale of the product.
l Merits of Sales Promotion :
(i)
Attention value.
(ii)
Useful in a new product launch,
(iii)
Synergy in total promotional efforts.
l Limitations of Sales Promotion :
(i)
Reflects crisis,
(ii)
Spoils product image.
l Sales promotion techniques :
(i)
Rebate,
(ii)
Discount,
(iii)
Refunds,
(iv) Product combination,
(v) Quantity gift,
(vi) Instant draws and assigned gifts,
(vii) Lucky draw,
(viii)
Usable benefits,
(ix) Full finance,
(x) Sampling.
(xi) Contests.
II.Public
Relations : It involves activities required to promote and
protect the image of a company or its product.
l Role of Public Relations :
(i)
Smooth functioning of a business,
(ii)
Building the corporate image,
(iii)
Facilitating launch of a new product,
(iv) Supplementing to promote the
existing products,
(v) Counselling,
(vi) Press Relations,
(vii) Product Publicity,
(viii)
Lobbying,
(ix) Satisfying interest of different
public groups,
(x) Stimulating sales force,
(xi) Building credibility,
(xii) Lowering
promotion costs,
l Tools of
Public Relations :
(i)
Press releases,
(ii)
Press kits,
(iii)
Brochures,
(iv) Newsletters,
(v) Annual reports,
(vi) Conferences and Seminars,
Know the
Terms
Ø Market : It refers
to a set of actual and potential buyers.
Ø Marketing mix : It is a set of marketing tools that
a firm uses to pursue its marketing objectives in a target market.
Ø Generic name : The name of the whole class of the product.
Ø Marketer : Person
who takes more active part in the process of sales.
Ø Synergy : Overall
effectiveness.
Ø Market offering : Complete variety of the product.
ØGrading : Classification of products into different groups on the
basis of size, quality, etc.
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