Marketi

ng

concept

Introduction To be customer oriented

To stress long-run profitability

To integrate marketing with other corporate functions.

Elements

1)

•Marketing mix

2)

•Marketing planning

3)

•New product planning

MARKETING MIX Policies adopted by the manufacturer to attain success in the market is termed as marketing mix. It is the combination of the fair inputs which constitute the core of an unit’s marketing system- the product, price structure, distribution & the promotional activities.

Elements of marketing

mixProduct mixPrice mixPlace mixPromotion mix

Product mix It involves all

those activities starting from the conception (origin) of an idea of a product till its final development for the consumer’s satisfaction.

Elements of product mix

Product range

Branding

Packaging

Product services/ after sale services

Product

range

Branding

It refers to number of similar types of goods. Eg:- The product range of Maruti udhyog ltd. Is Maruti 800, WagonR, Swift, Esteem, etc.

It refers to giving name/ symbol to a product to make it distinct from other similar products. Eg:-Toothpaste- colgate, pepsodent, close up, dabur etc.

It refers to a wrapper/ container in which product is enclosed/ put for it’s protection & the convenience of consumers.

This services ensures repeated orders from the customers & also increases the goodwill of the business.

Packaging

After sale services

Price mixPrice is the value of a product/

service in terms of money, which a buyer is ready to pay in exchange of goods & services.

Price mix comprises the policies relating to the price levels to adopt.

PRICING Pricing is a managerial task that

involves establishing pricing objectives, identifying the factors governing the price, ascertaining their relevance & significance, determining the product value in monetary terms & formulation of price policies & strategies, implementing them & controlling them for the best results.

Factors influencing pricing

decisions

Controllable

factors

Uncontrollable factors

Controllable factors• Stage of product life cycle• Brand image• Frequency of purchase• Size of purchase• Length of channel of distribution

• Promotional strategies adopted

• Cost consideration• Characteristics of product

Uncontrollable factors

• Legal consideration• Government control & regulation• Purchasing power of the customer• Consumer behaviour• Bargaining power of consumer• Social consideration• Economic condition prevailing

Methods of pricingCost based methodsCompetition based methodsDemand based methods

Cost based method•Full cost pricing•Cost plus pricing•Target return pricing•Breakeven pricing•Marginal cost pricing

Competition based pricing•Premium pricing•Competitive parity pricing

•Discount pricing•Sealed bid pricing

Demand based pricing•Skimming pricing•Penetrating pricing

PLACE MIX It comprises the policies & procedures relating to the channels to use between plant & consumer, degree of selectivity among wholesaler & retailers, efforts to gain co-operation of trade.

Channels of distribution

Transportation Warehousing

Elements of place mix

CHANNEL FOR CONSUMER GOODS

•Mail order

•Manufacturer’s retail outlet

•House-to-house selling

1)Direct

selling

•Manufacturer to consumer

•Manufacturer to retail to consumer

•Manufacturer to wholesaler to consumer

•Manufacture to agent to wholesaler to retailer to consumer

2)Indirect

selling

CHANNEL FOR INDUSTRIAL GOODS

• Manufacturer to industrial userDirect selling

• Manufacturer to industrial user• Manufacturer to wholesaler to

industrial user • Manufacturer to agent to industrial

user• Manufacturer to agent to wholesaler

to industrial user

Indirect channel

Classification of channelsChan

nel for

consumer

goods

Channel for

industrial

goods

Promotion mix It refers to informing the customers about the product/ services & persuade them to buy the product.

Elements of promotion mixAdvertising Personal sellingSales promotion

Marketing planning It defines the role &

responsibilities of marketing executives in contributing to the attainment of goals of the firm.

It is mainly concerned with the allocation, development & future use of the marketing planning refers to setting goals & strategies for the marketing efforts in an organization.

BENEFITS OF MARKETING PLANNINGMakes the firm basically consumer oriented.

New customer needs can be recognized.

More attention is given for market enlargement rather than market maintenance.

NEW PRODUCT PLANNINGProduct planning is the systematic determination of the manufacturers product line i.e. the number of variety of products to be offered by the firm to the market it serves.

It concentrates on development & introduction of new products, modification of the existing one to meet changing needs of consumers & dropping altogether marginal or unprofitable products.

SALES MANAGEMENTIt can be defined as the planning, direction & control of personal selling including recruiting, selecting, equipping, assigning, routing, supervising, paying & motivating as these tasks apply to personal sales force.

Qualities of entrepreneur as a successful salesmanPhysical attributesMental attributesMoral & social attributes

Vocational attributes

Lack of standardization of products.Maintaining poor product quality.Lack of proper infrastructural facilities.Poor knowledge of marketing strategies.Poor sales promotion.Inferior packaging.Lack of credit facility to consumer.Poor after sale service.Low scale of production.Dependence on middlemen.

Marketing problems of small-scale industries

STEPS TAKEN BY GOVT. IN MARKETING GOODS OF SMALL-SCALE INDUSTRIESCentral Govt’s stores purchase programme.

Reservation of items for exclusive purchase from small-scale industries.

Marketing services offered by small industries development organization.

Ancillary development programme of SIDO.

Subcontracting exchange programme.

Scheme of SIDBI for marketing activities.