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MARKETING MECHANICS (A text book of Marketing
Management)
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Publishing-in-support-of,
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MARKETING MECHANICS
A textbook of Marketing Management
Shivakumar Upavasi (Teaching Faculty,
Department of PG studies in Commerce,
SKNG Government First Grade College, Gangavthi-583227)
EDUCREATION PUBLISHING (Since 2011)
www.educreation.in
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Date of Publication : 06-July-2015
No of Pages : 366
ISBN : 978-93-85247-26-2
Copyright © : Author
DTP : Sateesh Managore
______________________________________________________________
Publisher : EDUCREATION PUBLISHING RZ 94, Sec 6, Dwarka, New Delhi - 110075
Shubham Vihar, Mangla, Bilaspur, CG –
495001
www.educreation.in
Contact address of the
author : Opp to Kondamme school,
Vijayanagar colony,
Gangavathi-583227.
Dist : Koppal,
State : Karnataka.
Country : India
Contact No: 9916136755
For all judiciary matters JMFC, Gangavthi only
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“I am dying for you
and you are
Living for me in my eternal life.”
This Book Is Dedicated To My Mother.
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Preface
As an academician it is my ethical responsibility to contribute my
experience and knowledge to the following subject. The following book
will be a landscape in focusing on those thrust areas of Marketing
Management that are crucial and significant in studying the subject
applications effectively. The important topics that are newly introduced
in this book are
1. Behavioural Economics and Entrepreneurial Marketing
2. Green Marketing
3. Corporate Governance and Global value chains of the Global
scenario.
4. Antidumping law of WTO-Article VI
5. Stakeholders (Inter and Intra) of societal marketing
6. Consumerism
7. Strategies of customer retention
8. Service values
9. Classification of products
10. Value Engineering and Value types.
Two sections are specially introduced in each chapter as Marketing Mail
and Marketing Reports to provide subject knowledge with a Global
perspective for the students. In view of this most of the reports from
websites of various departments of Government of India, WTO,
UNCTAD, ILO etc. have been presented to provide evidence for
studying Marketing Management subject with international standards.
The section of case studies will provide students a good
foundation to understand things thoroughly and deeply about the
concerned subject. Apart from this additional topics and supplementary
reading shall be helpful to improve the domain with extra information.
Most of the work in this book is presented referring the research carried
out by the researchers of Marketing Management worldwide. And with
utmost faith as the author of this book it is my belief that the reader’s
community shall be capable in turning this book as a milestone.
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Acknowledgements
I would like to express my sincere gratitude to my senior faculty
members and students of our department. It is my duty to thank all those
who have helped a lot to contribute for the following subject. Most of the
articles displayed on the internet were very useful for reference and in
view of this I shall extend my complements to the researchers.
Apart from this, I would like to thank leading newspapers of
India-The Economic times, Business Line, The Indian Express and other
papers whose reports were very useful in producing the book. It is my
duty to thank the Government of India for furnishing a lot of information
on the web and in the same way the websites of UNO, UNCTAD, IMF,
ILO and UNICEF were also very useful for collecting global facts and
figures.
Finally, I shall be thankful for the DTP work and the Publisher
and without their efforts, this work was not a possible task. Hoping that
my hard work and sincere efforts towards this academic contribution will
be useful for the reader.
Author
Shivakumar Upavasi
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Contents List
Topic Page
Chapter 1: Marketing 01-28
Nature, Meaning, Definition, Scope And Characteristics
02
Core Concepts Of Marketing 05
Marketing Approaches 06
Marketing Environment 12
Marketing Philosophy 14
The Marketing Process- Challenges and Opportunities 16
Marketing Functions 18
Points to be remembered 19
Exercise 22
Assignments 22
Marketing Mail 23
Marketing Reports 25
Chapter 2: Holistic Marketing- Meaning
& Definition 29-65
Meaning & Definition
30
Theory Of Cognitive Dissonance 32
Integrated Marketing 33
Internal Marketing 37
Ethics In Business And Corporate Governance 40
Corporate Social Responsibility 45
Societal Marketing 48
Stakeholders Inter & Intra 51
Points to be remembered 56
Exercise 60
Assignments 60
Marketing Mail 61
Marketing Reports
63
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Chapter 3: Marketing Relationship With Other
Disciplines
66-94
Introduction
67
Entrepreneurship 67
Entrepreneurial Marketing 68
Marketing And Finance 70
Economics 71
Behavioural Economic 73
Points to be remembered 76
Exercise 77
Assignments 77
Marketing Mai 78
Marketing Reports
81
Chapter 4: Market Segmentation 95-112
Introduction
96
Meaning and Definition 96
Over Segmentation 98
Niche Marketing 100
The Process Of Segmenting The Market 103
Geography 103
Demography 104
Objectives Of Market Segmentation 106
Scope And Significance of Market Segmentation 106
Points to be remembered 107
Exercise 108
Assignments 108
Marketing Mail 109
Marketing Reports
109
Chapter 5: Product Management 113-148
Introduction
114
Meaning, Definition And Characteristics 114
Product Standardization 114
Product Adaption 115
Product Mix 116
Product Positioning 118
Product Life Cycle 121
Strategies Of Product Life Cycle 123
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Brand Management 124
Corporate Branding 128
Supplementary Reading-Marketing Mix 129
Points to be remembered 132
Exercise 134
Assignments 134
Marketing Mail 134
Marketing Reports 135
Suggested Reading-New Product Development
139
Chapter 6: Promotional Mix 149-168
Introduction
150
Definition And Meaning 150
Scope Of Promotional Mix 150
Significance Of Promotional Mix 152
To Develop A Promotional Mix- 5 Steps 154
Characteristics Of Pricing 156
Significance Of Price 156
The Three Different Perspectives Of Price 158
Pricing Strategies 160
Points to be remembered 161
Exercise 162
Assignments 162
Marketing Mail 162
Marketing Reports
163
Chapter 7: Marketing channels 169-197
Introduction
170
Electronic Distribution Channels 173
Supply Chain Management 174
Online Marketing 178
Marketing Information System 179
Retail Management 180
Marketing Intermediaries 184
Logistics Management 188
Points to be remembered 190
Exercise 191
Assignments 191
Marketing Mails 192
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Marketing Reports
194
Chapter 8: Consumer Behaviour 198-214
Introduction
199
Theories Of Human Psyche 199
Buying Motives 206
The Buying Process 207
Consumer Buying Motives-Model 208
Points to be remembered 208
Exercise 208
Assignments 208
Marketing Mail 209
Marketing Reports
210
Chapter 9: Planning and Forecasting 215-229
Introduction
216
Module Of A Marketing Plan 217
Types Of Plans 219
Corporate Strategy 220
Short Term Plans And Long Term Plans 220
Segmental Steps In Planning 221
Forecasting 221
Forecasting Techniques 223
The Values Of Forecasting 224
Points To Be Remembered 225
Exercise 226
Assignments 226
Marketing Mail 226
Marketing Reports
227
Chapter 10: Value and Retention 230-257
Customer Value Management
231
What Is A Value? 232
Customer Values 232
Value Engineering 240
Objectives Of Value Engineering 240
Customer Acquisition and Product Implementation 241
Value Chains 242
Cultural Values And Beliefs 243
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Customer Retention 245
Strategies For Customer Retention 247
Point To Be Remembered 248
Exercise 250
Assignment 250
Marketing Mail 251
Marketing Reports
253
Chapter 11: Service Marketing 258-350
Introduction
259
Add Industry Standards To Service Marketing 260
Significance And Scope Of Service Marketing 262
Careers And Opportunities 263
The Life Cycle Of Service Marketing 264
Service Marketing And Economy 264
Model Of A Service Continuum 266
Types Of Values (Service Values) 268
Processing Tools For Service Products 269
Market Survival 270
Points To Be Remembered 272
Exercise 272
Assignments 273
Marketing Mail 273
Marketing Reports
274
Important Topics 290-324
Green Marketing
290
Consumerism 296
Franchising 299
Classification of Products 301
Marketing Research 304
Marketing Careers and Opportunities 307
The Indian Rural Market 312
The Global Scenario
315
Case Studies 325-350
Case-1
325
Case-2 326
Case-3 328
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Case-4 329
Case-5 331
Case-6 333
Case-7 334
Case-8 335
Case-9 336
Case-10 340
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Abbreviations
AMA American Marketing Association
AFP Agence France-Presse
B2B Business to Business
BOP Balance Of Payments
BSNL Bharatia Sanchar Nigam Limited
C2C Customer to Customer
C&F Clear and Forward
CSRC Corporate Social Responsibility and Corporate
Citizenship
C2P Consumer to Product
EE Eastern European
EU European Union
EXIM BANK Export and Import Bank
ERP Enterprise Resource Planning
FMCG Fast Moving Consumer Goods
GI Geographical Indicators
HUL Hindustan Unilever Limited.
IOSCO International Organization of Securities Commissions
ILO International Labour Organization
LOC Line Of Credit
ISO-3100 International Organization for Standardization
MFN Most Favoured Nations
NEET Not in Education, Employment, or Training
OECD Organization for Economic Cooperation and
Development
NGO Non-Government Organization
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PPP Purchasing Power Parity
R&D Research and Development
SME Small and Medium Enterprises
TV Television
TRIPS Trade-Related Aspects of Intellectual Property Rights
UNCTAD United Nations Conference on Trade And Development
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Marketing Mechanics
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Chapter
______________________________________________________
Marketing
Nature, Meaning, Definition, Scope and Characteristics.
Core Concepts Of Marketing.
Marketing Approaches.
Marketing Environment.
Marketing Philosophy.
The Marketing Process- Challenges and Opportunities.
Marketing Functions.
Points to be remembered.
Exercise.
Assignments.
Marketing Mail.
Marketing Reports.
01
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Shivakumar Upavasi
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MARKETING
Nature, Meaning, Definition, Scope and Characteristics.
You purchase a new ring- tone to your mobile by pressing some number
on your hand set and who sells it is paid by your currency account
followed by a product delivered to you. Every product you buy for your
need adds a value for an exchange and provides satisfaction. In all the
phases of life as a consumer, buying of products is essential to satisfy our
needs. It is not a question of force we purchase products but it is our
needs that can be divided into several types. In view of this the
consumption of a number of products is due to improvement of standard
of life. The civilized societies have been claiming standard products
which can maximize their utility at affordable prices. To serve consumer
needs in a unique way, the process of providing goods and services has
been identified as marketing. Even though the basic nature of marketing
is to promote goods and services to its needy consumers at an affordable
price and place but it is a vast industry followed by its applying statistics.
What do you mean by marketing?
Basically products differ as goods and services which are sold for a profit
motto by the seller to the buyer. In general selling of products is not
marketing but it in one of the activities of marketing. The modern
markets are consumer sovereign and studying of consumer needs is very
essential. The activities of marketing include understanding consumer
needs, developing such products based on their needs, promoting them to
potential markets and hence reaching the needy consumers in a better
and convenient way. Marketing implies to develop the civilized societies
by offering carriers and opportunities in sales, accounting,
administration, education, finance and advertising are few of them to list.
The broader meaning of marketing is to understand consumer needs and
convert them into opportunities followed by creating a value for an
exchange to its customers.
What are the characteristics of marketing?
It is a planned activity to meet out the obligation of a needy
consumer systematically.
The task of marketing process does include studying of consumer
needs, designing need based products, strategies to promote such
products and hence creating markets by dividing the market into
potential groups. (Market segmentation).
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To support the marketing obligations, it is the duty of a marketer to
support the moral standards of a society in terms of business ethics
and corporate governance.
Giant marketing companies build global brands to increase their
market share, and to provide service for their loyal customers
globally.
Customer adds a value for an exchange by consuming the product of
his choice.
Marketing is a department in an organization which is the pulse of
the business.
Products may be categorized on the bases of specific attributes like
quality, quantity, price etc.
Marketing as an industry had created numerous opportunities in
sales, accounting, administration, logistics, packing, retailing etc.
Goods & services are promoted by means of channels either directly
or indirectly.
Marketing is an exciting subject to study for researchers,
academicians, students and marketing managers.
Define Marketing
Let us analyze the following.
The significance of marketing is in delivering such products to the
consumer that is needful for them at an affordable price.
The supply of goods and services to improve the standard of living
by creating employment opportunities with a motto of making profit
through their business from individuals and organizations refers to
marketing.
By adding a value for an exchange to the consumer in terms of utility
and status in the society.
Marketing is a planned activity of pursuing consumer needs
followed by developing and promoting of such products at an affordable
price in creating a value for an exchange, subject to its consumption.
Scope of marketing.
The scope of marketing is very wide compared to the statistics of its
applications and their significance. The use of resources like men, money
and material has developed huge businesses, where companies are using
marketing tools to boost their sales with advanced strategies. Activities
like market research, innovative products, eco-friendly products,
entrepreneurship are common terms associated to marketing and its
allied services. In spite of supplying goods and services the marketing
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realities are working to create carriers and opportunities for those, who
are seeking employment.
Industries like Banking, Insurance, Automobiles, Hotels,
Airlines, Advertising, Retailing, Logistics etc. have separate marketing
departments to promote their products. The marketing team plays a
significant role in designing new products, creating special segments,
pricing products, promoting products and all that is associated to earn
revenue on sales. The communication is strong with the company affairs
in the market related to sales and profit by virtue of marketing
department involvement among markets.
What is Management?
Management is systematically assigning the skillful work into the
efficient hands for the sake of getting anticipated results in the form of
value chains followed by the sequences, periodically.
Now what is Marketing Management?
The overall process of managing the marketing activities such as
studying of consumer needs, designing new products, creating new
markets, adding a value for an exchange of products, creating
employment opportunities in a systematic and scientific way as directed
by ERP (Enterprise Resource Planning) where all the activities are
followed in a sequence in Marketing Management, with social
responsibility of the society.
Marketing Management helps the marketing firms to plan their
work systematically such as allocation of resources like men, money and
material that are basically needed to start the task.
Management is important in deciding two things
Who will do this work?
When and how, he will do this work?
Business Managers need to possess matured knowledge to overcome
problems like inflation, recession, Government Law and Policy,
competitors, substitute products, flow of funds and supply of human
resources to achieve success at a competitive edge.
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Marketing Mechanics
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Core concepts of Marketing.
The core concepts of marketing include all those activities of
marketing which define marketing as a particular discipline and its vital
role in the success of the organization that we call as integrated services.
Every organization has divided the nature of works like research &
development, finance, marketing, inventory and so on to attain accurate
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Shivakumar Upavasi
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progress in a stipulated period of time, where success depends upon the
integrated services of allied departments.
Marketing Approaches.
What is an approach?
Approach is coming closer or it is the beginning of an action.
The activities of marketing constitute of four important phases.
The real challenge for a marketer is, “how to sell”?
A hawker sells his goods and a company also does it even
though both are indulging themselves in selling, the ways of approach
are different and so the customers and so the markets. By analyzing the
following situation we can reach to a consideration.
How to approach the customer? Define your business to industry standards so that you can reach the
valuable customers.
List out the potential customers and their socio- cultural and socio-
economic status to deal with them at their expectations.
Your business premise is a key to your success.
Communication skills, body language, postures, facial expressions,
seating arrangement, dress code, business hours, time for a
transaction, feedback, personal relations and all things related to
business shall matter.
When once there is a successful approach, what matters is the way
you convince?
Get into a negotiation led by your product theme.
Technicalities will mind much because the effect of technology is
rapid in changing and smartness in adopting it.
If products are marketed online, use tools like social network,
company blogs, product feedback, study customers likes and dislikes
before promoting a product. Apply advanced strategies to reach-out
Product
Approach
Market
Approach
Consumer
Approach
Promotion
and Pricing
Approach
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Marketing Mechanics
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the customers through groups formed in social networks. Provide
better payment and delivery options, flexible business hours, use
references and hence reach out the valuable customer.
The value of an exchange you provide to a customer plays a
significant role in promotion of products.
Use advanced tools like event management and auctioning to reach-
out the customers for your products.
Who is my customer?
Choose customers form specific segments.
Better decide, what are the attributes of your product that can attract
potential customers?
Study the customer’s nature whether they are rational thinkers.
Scan the socio-cultural and socio-economic environment.
Use demography & geography as tools for market segmenting to
study non-behavioral characteristics.
Specify customer such as regular, accidental, occasional,
unpredictable, profit motto, stock-motto etc.
Study about the price what they can afford.
Brand loyalty can encash good business.
Customer feedback is necessary to attend grievances.
Communication with customers establishes long term relations with
the product.
Product Approach.
Product – Items which are tangible or intangible in nature consisting of
specific attributes that may provide utility on consumption and they may
be differentiated into goods and services which are ready for sale at a
fixed price.
What are goods?
Goods – Tangible items either raw or in finished form have specific
attributes that are classified under individual type among groups of a
class and may provide utility by consumption.
Service – Intangible in nature to be consumed in a stipulated period of
time that may derive utility and they are perishable in nature.
Commodity: Any kind of product that creates demand in the market or it
is in scarcity of the user then the product itself becomes a commodity.
Gold ore – good (raw)
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Gold coin – product (finished)
Gold ETF – service industry (exchange traded fund)
Gold biscuit – commodity (product in demand)
(Examples to understand products and its types)
Type of products:
1. Essential products – products like food grains, edible oil, FMCG
products, medical products, building materials, transportation
vehicles etc.
2. Inessential products – luxurious goods like jewelry, highly paid
cosmetics, costly cars, snacks, soft drinks, star hotel services etc.
How to select a product?
The marketing organizations take initiative in studying market
conditions and decide about products depending on.
1. Consumer segments based on geography.
2. Purchasing power and demography.
3. Socio-cultural and Socio-economic conditions.
4. Trends & fashion.
5. Consumer psyche.
6. Innovative technology.
7. Pricing strategies.
8. Promotion equation.
9. Substitute products market performance.
10. Brand loyalty.
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Marketing Mechanics
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How to sell a product?
MARKET APPROACH
What is a market?
The potential to create an activity of sales either physically or through
mode of online communication where buyers and sellers commence for
an exchange.
Crucial elements of the market.
1) Buyer
2) Seller
3) Marketer
Who is a buyer?
Any individual or group both organized and unorganized, who by virtue
of a purchase represents a special buying motive behind it.
Decide well in advance, what types of products are needed by the
consumers?
What is the market share of your product?
Product engineering – product design.
Product packing – attractive and flexible
Promotion and pricing strategies that can work-out for your special
segment.
Special offers and discounts for consumers and display incentives
for retailers
Incentives on sales target for sales team
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Who is a seller?
Any individual or group who sells a product with a motto of making
profit either produced by him or sold on behalf of the producer.
Who is a marketer?
Any person who promotes products for serving consumer needs either
produced by him or by the producer for a motto of profit and service.
Marketing intermediaries.
Individuals or organizations indulged in activities of sales, promotion,
distribution and dumping of products to the targeted markets on behalf
of the provider of goods for a special commission on sales.
Marketing intermediaries
1) Brokers
2) Agent – individual
3) Clearing & Forward Agent – firms
4) Super Stockiest
5) Distributors
6) Wholesalers
7) Retailers
8) Promotion portals – websites
Types of market
A market can exist only when a buyer and a seller are able to carry on
their transactions. Let us analyze the customers and variety of products,
they buy and their area of operation.
Buying a t-shirt and jeans pant on the Flip-kart website – electronic
market or non-physical market.
Purchasing a sheep in a live stock market – physical market.
So, two types of market can exist where the transaction between the
buyer and seller takes place directly (physical market) and indirectly
(non-physical).
FMCG –Fast moving consumer goods have a high volume of sales
and the value of each unit is low but the repurchase is fast.
Examples - soap, shampoo, biscuits, chocolates, soft drinks etc.
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Marketing Mechanics
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