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(Unit 1) Q1:- Define marketing and its scope? The term market refers to a place where goods are purchased and sold. Management process consists of five Ms .Man, Money, Material, Machines and marketing. Marketing is the last component of this chain. The success of a business enterprise lies not only in production but mainly in successful marketing. In simple words, marketing is a process which carries goods from producers to ultimate consumers. Marketing bridges the gap between consumer and producer. Marketing is thus concerned with handling and transportation of goods from the point of production to the point of consumption. Marketing is a social process by which individual and organization obtain what they need and what through creating, offering and freely exchanging products and services of value with others. The aggregate of forces or conditions within which buyers and sellers make decisions that results in transfer of goods and services (exchange of goods concept). The place within the specific geographic area where the buyer and seller meet and enter into transactions involving the transfer of ownership of goods and services and securities etc. In economics term is used to refer to Aggregate demand for a commodity and forces which determine prices. Q2:- What is the difference between Marketing and Selling? Marketing Selling 1. It is the process which begins with planning the 1. Selling is exchange of goods for price. Selling is product. the activity of Marketing. 2. Its objective is to satisfy the consumers needs 2. it is an activity designed to meet the sellers need. and expectatutions. 3. focus is only on sales volume and profit. 3. Focuses on quality as per need to provide satisfaction leads to higher sales volume. 4. it is for product, sales volume and profit. 4. Prime consideration is given to customer his preferences and satisfaction. 5. Approach to attain short term goals. 5. Approach to achieve long term goals. 6. Conversation of goods into cash. 6. Needs and wants are concerted into goods and services. Q3:- Differentiate between Market and Marketing? Selling means finding customers and transfer goods to them for value or money. Marketing has wide meaning it includes not only selling but also other activities. Main points of difference between market and Marketing are as follows. Market Marketing 1. Market includes both place and region in which 1. Marketing is a total system of business activities buyer and seller are in free competition with one designed to plan, price, promote and distribute another. satisfied goods and services. 2. Marketing includes all activities involved in the 2. Market for most commodities may be though of creation of place, time and possession in utilities. not a geographical meeting place but as getting together of buyers and sellers in person, by mail, telegraph, and telephone or any other means of 3. Marketing is a delivery of standardized of living communication. to society. 3. Market must be a :a) Place as on open space. b) As assembly or meeting place. c) The act of buying and selling. Q4:- Discuss various functions of Marketing? Functions of Marketing may be classified into the following three categories. Functions of exchange. Functions of physical distribution. Facilitating functions. Functions of exchange

1. 2.

3.

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The functions of exchange refer to activities related with exchange or transfer goods from production to consumers these are:

a) b)

Buying and assembling: - Buying as a part of marketing function means purchase of raw material or purchase of finished goods for manufacturing or sale purposes. Assembling involves connection of particular type of goods from different places under a common roof. Selling:- Selling means find the customers and transferring the goods to them for value or money. Selling seeks profit through higher sales volume.

Functions of physical distribution These functions refer to the functions concerned with physical movement of goods from producers to the consumers. These include: a) Standardization:- Standardization refers to process of setting certain standards for a commodity on the basis of its desired qualities like durability, safety and desirable features like design, weight, color etc in a product. b) Grading:- Grading refers to the process of dividing the products into classes, lots of grades. Grading is very popular in the case of agricultural products like food grains, cotton, tobacco and fruits. Grading helps in fixing and securing remunerative prices for products. c) Branding: - Branding is a name, sign, symbol, design used to distinguish the product .of one firm from others. In other words, a brand is a means by which the firm identifies itself with customers. Branding helps in creating a distinct image of the seller in the market (e.g. Bata shoes). d) Packing:- A packing in a wrapper or container in which a product is enclosed. Packing reduces the risk of spoilage, breakage, leakage etc in the process of storage and transportation of goods. Packing helps a manufacturer in providing useful product information to the customers. e) Storage and warehousing: Storage is the process of holding and preserving goods between the times of their production of purchase to the time of their sale. The storage function is facilitated by warehouses where the goods are stored. f) Transportation: - Transportation refers to the physical movement of goods from the place of production to place of consumption. Facilitating functions The facilitating functions include all those activities which help the process of exchange. These include: a) Promotion activities like advertising, personal selling, sales promotion and publicity. b) Pricing. c) Financing. d) Risk taking. e) Market research. f) Product planning and development. Q5:- What is Marketing Mix? Marketing Mix is the term used to describe the combination of four inputs. Which consists the core of companys marketing system- the product, the price structure, the promotional activity and the distribution system. There are various ingredients or elements of Marketing Mix but 4 ps were popularized by P.I McCarthy which are universally accepted. They are product, price, promotion and place. (Physical distribution). These ingredients of the Marketing Mix are so inter-related to one another that change in one ingredient effects the other. Each of these ingredients contain a number of variables from these variable management tries to adop a specify combination of mixes in such a way so that we can have realization of companys goals such as profit, market share and so on. Q6:- Evolution of Marketing concept? The development of Marketing concept is evolutionary i.e. gradual rather than revolutionary i.e., sudden. The concept of Marketing changed due to change in human behaviour. The evolution of Marketing has various stages. a) Exchange oriented stage. b) Self sufficient stage.

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c) d) e) f) Product oriented stage. Sale oriented stage. Market oriented stage. Consumer oriented stage.

a) b) c) d) e)

Marketing concept There are five alternative concept under which organization conducts their Marketing activities. Production concept. Product concept. Selling concept. Marketing concept. Social market concept. Production concept:- Consumers will prefer the goods which are widely available in the market and inexpensive e.g. petroleum product, largest Chinese PC manufacturing legend. Product concept:- Consumers will favour those products that offers most quality performances or innovative features. Selling concept:- Consumers and business organization if left alone will not normally buy enough of firm products. The firm must undertake aggressive selling and promotion efforts. Market concept (1950s) :- The key to achieve organizational goals consists of the company being more effective. Example Motorola. Q7:- Give the classification of Marketing? On the basis of selling era, we have local, national and international market. Target the basis of article of trade, we have product market e.g cotton market, bullion market. wants integrated Marketing customers satisfaction customers demand On

On the basis of period, we have short term and long term markets e.g money market for short term fund and capital market for long term funds. On the basis of nature of magnitude of selling, we have wholesale and retail markets. (Unit 2) Product:-The product is a bundle of all kinds of satisfaction of both material and non-material kinds ranging from economic utilities to satisfaction of social-psychological nature. A product supplies two kinds of utilities economic utility and supplementary utility in the form of social psychological benefits. The product may be a good (commodity), a service a good plus service or just an idea. A product is all any things offered to a market. In short a product is a sum total of physical, economic, social and psychological benefits. The selling points of a product are the components i.e. physical attribution, utilities, brand package, label, design color, price etc. Product Mix:-It is the entire range of a product for sale. Product Mix need not consists of related products. The product mix has three main characteristics, width, depth and consistency. Width of product mix depends upon the number of a product. Group of product lines found within product. Depth depends upon the number of product item within each product line. Consistency of product mix refers the question, whether or not the products have production affinity. Marketing affinity or research affinity. Product life cycle and Marketing strategy The most essential feature of the product life cycle is the difference between the two curves, sales curve and profit curve. Long before sales decrease, profit margins usually decreases. Product life cycle concept governs strategic marketing planning at all levels. It is involved not only in product planning and development, but also in pricing, promotion and distribution policies. The product life cycle concept is used in formulating approach private marketing strategy and its prompt implementation. The concept enables the marketer in planning the entry of a new product in a chosen market. The product life cycle has the different stages in the sales history of a product. Corresponding to the various stages in life of human beings, children, teenage, adulthood and old age a product has different stages on its life cycle. They are introductory stage growth stage, maturity stage, saturation stage and decline stage. The length of a particular stage in the life cycle may be long or short depending on the type of product.

On the basis of nature of exchange dealings, we have spot or cash market and future or forward market. On the basis of nature of goods sold, we have consumer goods market and industrial goods market.

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The marketers should know then product life cycle at any time. This information will be useful for designing strategies because strategies will differ according to the stage. Product related strategies Branding:- The word Brand is a comprehensive term. It means a sign or symbol of quality. Branding strategy indicated how the firm chooses to use branding as an internal part of its over all marketing strategy. In a sense branding is simple another dimension of marketing strategy. To a consumer a brand name is a means of identification of a product as well as means of differentiation of the branded product from its rivals. The brand name can incorporate all marketing efforts, together either in consumer mind or in the marketing programme. Branding simplifies control of the commercial process. It gives necessary advertising and promotional support in order to make the product recognizable and to create consumer awareness. Branding is the practical of giving a specified name to a product or group of products from one seller. The specified name creates individuality in the product. Hence, it can be easily distinguished or recognized in the market from the rival market. Packaging Packaging is critically important to the buyer recognition of the product. Package is a wrapper or container in which a product is enclosed, encased or sealed. Packaging reduces the risk of spoilage, breakage, leakage etc in the process of storage and transportation of goods. Packaging helps a manufacturer in providing useful product information to the customers. It thus, acts as a silent salesman in self service stores such as super bazaars and super markets. Packaging is a marketing necessity. The public does not want just the product. They want explanation, assurance, encouragement, confidence and praise i.e put-on-the-back, all integrated on combined with a pleasant can claim for damages but has no right to reject the contract. A warranty is an obligation of the producer and seller to stand behind the product and assure the buyer that he will derive certain services and satisfaction from the product. The product warranty must be clear, unambiguous and meaningful. It has become an important selling point and a means of product differenciation in a competitive market. Warranties are also considered as promotional devices. Full disclosure of warranty information will ensure the consumers right to know. A warranty is an assurance of the quality, service and performance. It is a written guarantee of the intrinsic value of a product. It points out the responsibility of the market for repairs, service and maintaince in the case of consumer durables. The producer should use the word warranty instead of the word guarantee. Importance of sound product A product is the starting point of all marketing activities. The other marketing efforts will prove useless, unless the policies pertaining to a product intended for sale are decided and exact nature of a product is determined. Product is expected to satisfy all the need and desires of a customer. If the product is sound is easily acceptable to the market, it satisfies re-sale need and customer satisfaction and is carefully fitted to the need and desires of the customer sales success are assured. In essence, the right product is a great stimulus to sales. A product is bound to reduce considerably the problem of pricing promotion and distribution. It may not demand extra-ordinary sales promotion gimmicks. Hence, product superiority in want satisfaction can carry greatest selling load in our marketing mix. In fact, product and market are expected to be two sides of the same blade, i.e marketing. Guarantee of a product It is the obligation of the seller to assure the buyer that he will derive certain services and satisfaction from the product. Guarantee points out the responsibility of the producers to replace the product in case of any defect. Marketing strategies The various strategies adopted by a company to increase its sales, market share and profit in the market is known as marketing strategies. For this, market must develop new markets for existing products, new products for existing market and so on. Features of a product 1. It should fulfill the need of customer. 2. It should be easily available to every body.

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3. It should possess good brand name. 4. It should not more precaution. 5. It should have proper packaging and labeling. 6. Its price should be affordable to everyone.

Stages in product life cycle As the product moves through different stages of its life-cycle, sales volume and profitability change from stage to stage. The management emphasis on the marketing mix elements also undergoes substantial changes from stage to stage. A brief discussion of the product life-cycle is given below. Introductory stage:- The first stage of a product life cycle is the introduction stage. Under this stage, competition is almost nil or non-existent, prices are relatively high, markets are limited and the product innovation is not known much. The growth in sales volume is at a lower rate because of lack of knowledge on the part of the customers. On this stage product development and design are considered critical. 2. Growth stage:- It is the period during which the product is accepted by the consumers and traders. During the growth stage, the rate of increase of sales turnover is very rapid. Profits also increased at an accelerated rate. In spite of competition, we may have rising sales and profits. The firm gives top priority to sales volume and quality maintaince may have secondary preference. For marketing success manufacturing and distribution efficiency are vital factors. Words of mouth advertising leads to more new users. Repeat orders are secured. 3. Maturity stage:- During this stage keen competition brings pressure on prices. Increasing marketing expenditure and falling prices will reduce profits. Additional expenditure is involved product modification and improvement or broadening the product line. Marketers have to adop measures to stimulate demand and face competition through additional advertising and sales promotion. Overall market effectiveness becomes the key had in the stage of maturity. Low price increasing competition, rising marketing costs and declining profits are the features of this stage. 4. Decline stage:- Once the peak or saturation point is reached, product inevitable enters the decline stage and becomes obsoletes. It may be gradually displaced by same new innovation, sales drop severely, competition dwindles and even then the product cannot stand in the market. It may be priced out of the marked by other new innovation. A marketer is expected to keep new product ready to fill up the gap created by the demise of existing product. At this stage, price becomes the primary weapon of competition, and we have to reduce considerably expenditure on advertising and sales promotion cost control becomes the key to generate profit. (Unit 3) Q1:- What is pricing? Discuss its objectives? Pricing is a significant component of marketing management. The price of product or service is a major determinant of the market demand for the product. Price refers to the money value of a product. In simple words, it represents the money which the buyer offers for the product offered by the seller. The market price of a product influences wages, rent, interests and profits. In other words, the price of a product influences the price paid for the factors of production. Land Labour Capital Entrepreneurship Price can decide the success or failure of a firm. Price is a primary source of revenue. Determination of proper price of the product is often a difficult task before the marketing manager. The price should be such where by sales can be maximized and overall objectives of the concern are met. Objectives of price/pricing The main objectives of a proper planned pricing policy are as follows:1. Achieving to target return on investment:- This is the most important objective which every concern wants to achieve. The objective is to achieve a certain rate of return on investments and frame the pricing policy in order to achieve that rate, e.g the concern money have set target of 20% return on investments and 10% return on investments after taxes.

1.

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Price stability:- It is a long objectives and aims at preventing frequent and violent fluctuations in prices. It also prevents price war amongst the competitors. The prices are designed in such a way that during the period of depression, the prices are not allowed to fall below a certain level and in the boom period, the prices are not allowed to rise beyond a certain level. Profit maximization:- Maximization of profits is one of the main objectives of a business enterprise. A firm can adopt such a price policy which ensures large profits. Profits maximization is not only objectives but a business has to discharge certain social obligations also. Customers ability to pay:- The prices that are charged, differ from person to person according to his capacity to pay. For instance, doctors charges fees for their services according to the capacity of the patient. Prevention of competition:- Pricing can be used as on of the effective means of fight against the competition and business rivalries. Lesser prices are charged by some firms to keep their competitors out of the market. But a firm cannot afford to charges less prices for a long period of time.

3.

4. 5.

1. 2. 3. 4. 5. 6.

Q2:- What are the factors that effects a suitable pricing policy? There are number of factors that influence pricing decisions, some of these factors are internal and controllable while some others are external and uncontrollable. Internal factors Effecting pricing are:Role of prices in marketing programme. Corporate and marketing objectives of the firms. Marketing image of the firm and its product. Costs of production. Price elasticity of demand of the product. Composition of product line of the firm. External factors 1.Nature of market. 2. Buyers behaviour. 3.Nature of competition. 4.Nature of economy. 5.Purchasing power of the consumer. 6. Social consideration. 7.Govt regulation. 8.Bargaining power of customers. Q3:- discuss various price strategies or price policies? Broadly, the following are the important price strategies and policies followed by different business enterprise: 1. Skimming price policy:- Under this strategy a high introductory price is charged for an innovative product and later on the price is reduced when more competitors enter the market with same type of product. This way the cream of demand may skimmed. The main aim of this policy is profit maximization in the shortest possible time. This policy is undertaken in order to make quick recovery of the investment made by the manufacturer. 2. Penetrating price policy:- This type of price policy uses lower initial price to capture large market. This forces the customers to buy the product and company can capture very big share and leave very small share for competitors. Under this policy, the main aim and motto is (get the business even at loss). The reliance company followed penetrating pricing strategies when it introduced mobile phone.

3 4
5

Discriminating pricing:- It is a pricing strategy where firm charges different prices for the same product in different markets from different type of consumers. Charge want the traffic can bear:- It is a demand based pricing policy. It is usually adopted by Railways, Professionals like Doctors, Advocates, consultants also adopt this type of policy. Re-sale price maintaince:- It is a pricing policy adopted by manufactures goods where the products shall be sold by wholesalers and retailers at the price fixed by the manufacturers.

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Q4:- What is the importance of pricing in the marketing management? 1 Consumers view of the price:- The consumer means by price the way of getting the product they want. The reaction of consumers to prices change with the nature of product. For example, products and services like cigarettes, alcohol, electricity or shopping goods are used habitually by people and as such a slight rise or fall in price does not matter much. 2 Marketers view of the price:- The marketers launch the product with an indication of price. Many of the marketing strategy like packaging, advertising etc effects prices. 3 Social dimensions of pricing:- Pricing also has impact on society in so far as the demand and supply of a product is concerned for example, the prices may be slashed to make the product competitive .

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