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vidyarthiplus.comMARKETINGMANAGEMENTTopicTitle.MarketingConcepts.

ApproachestotheStudyofMarketing.MarketSegmentation.MarketingEnvironment.ConsumerPurchaseProcess.ConsumerBehaviour.MarketingInformationSystemandMarketingResearch.ProductMix.NewProductPlanningandDevelopment.ProductMarketIntegrationStrategies.BrandingandPackagingDecisions.PricingDecisions.ChannelDecisions.Advertising.SalePromotion.PersonalSelling


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vidyarthiplus.comLESSON-1MARKETINGCONCEPTSLearningObjectivesAfterreadingthislesson,youshouldbeabletounderstand-Meaningandimportanceofmarketing;Thedifferentconceptofmarketing;Themodernmarketingconcept.Thesocialmarketingconcept.Marketinghasbeendeferentbydifferentauthorsdifferently.Apopulardefinitionisthatmarketingistheperformanceofbusinessactivitiesthatdirecttheflowofgoodsandservicesfromproducertoconsumeroruser.Anothernotabledefinitionisthatmarketingisgettingtherightgoodsandservicestotherightpeopleattherightplaceattherighttimeattherightpricewiththerightcommunicationandpromotion.Yetanotherdefinitionisthatmarketingisasocialprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingproductsandvalueswithothers.Thisdefinitionofmarketingrestsonthefollowingconcepts:(i)(ii)Needs,wantsanddemands;Products;


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vidyarthiplus.com(iii)(iv)(v)Valueandsatisfaction;ExchangeMarkets.NEEDS,WANTSANDDEMANDSAhumanneedisastateoffeltdeprivationofsomebasicsatisfaction.Peoplerequirefoods,clothing,shelter,safety,belonging,esteemetc.theseneedsexistintheverynatureofhumanbeings.Humanwantsaredesiresforspecificsatisfiersoftheseneeds.Forexample,clothisaneedsbutRaymondssuitingmaybewant.Whilepeoplesneedsarefew,theirwantsaremany.Demandsarewantsforspecificproductsthatarebackedupbyanabilityandwillingnesstobuythem.Wantsbecomedemandswhenbackedupbypurchasingpower.ProductsProductsaredefinedasanythingthatcanbeofferedtosomeonetosatisfyaneedorwant.ValueandSatisfactionConsumerschooseamongtheproducts,aparticularproductthatgivethemmaximumvalueandsatisfaction.Valueistheconsumersestimateoftheproductscapacitytosatisfytheirrequirements.


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ExchangeandTransactionsExchangeistheactofobtainingadesiredproductfromsomeonebyofferingsomethinginreturn.Atransactioninvolvesatleasttwothingofvalue,conditionsthatareagreedto,atimeofagreementandaplacevidyarthiplus.comExchangeandTransactionsExchangeistheactofobtainingadesiredproductfromsomeonebyofferingsomethinginreturn.Atransactioninvolvesatleasttwothingofvalue,conditionsthatareagreedto,atimeofagreementandaplacevidyarthiplus.comofagreement.MarketAmarketconsistofalltheexistingandpotentialconsumerssharingaparticularneedorwantwhomightbewillingandabletoengageinexchangetosatisfythatneedorwant.Thus,alltheaboveconceptsfinallybringsusfullcircletotheconceptofmarketing.IMPORTANCEOFMARKETING1.Marketingprocessbringsgoodsandservicestosatisfytheneedsandwantsofthepeople.2.Ithelpstobringnewvarietiesandqualitygoodstoconsumers.3.Bymakinggoodsavailableatalplaces,itbringsequipmentdistribution.4.Marketingconvertslatentdemandintoeffectivedemand.5.Itgiveswideemploymentopportunities.


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6.Itcreatestime,placeandpossessionutilitiestotheproducts.7.Efficientmarketingresultsinlowercostofmarketingandultimatelylowerpricestoconsumers.8.Itisvitallinkbetweenproductionandconsumptionandprimarilyconstantlymoving.9.Itcreatestokeepthestandardoflivingofthesociety.MARKETINGMANAGEMENTMarketingmanagementisdefinedastheanalysis,planning,implementationandcontrolofprogrammesdesignedtocreatebuildandpurposeofachievingorganizationalobjectives.Marketingmanageshavetocarrymarketingresearch,marketingplanning,marketingimplementationandmarketingWithinmarketingplanning,marketermustmakedecisionsontargetmarkets,marketpostphoningproductdevelopment,pricingchannelsofdistribution,physicaldistribution,communicationandpromotion.Thus,themarketingmanagersmustacquireseveralskillstobeeffectiveinmarketplace.CONCEPTSOFMARKETINGTherearefivedistinctconceptsunderwhichbusinessorganisationcanconducttheirmarketingactivity.ProductionConceptvidyarthiplus.comresponsibletokeepthewheelofproductionandconsumptioncontrol.Itcreatestime,placeandpossessionutilitiestotheproducts.7.Efficientmarketingresultsinlowercostofmarketingandultimatelylowerpricestoconsumers.8.Itisvitallinkbetweenproductionandconsumptionandprimarilyconstantlymoving.9.Itcreatestokeepthestandardoflivingofthesociety.

MARKETINGMANAGEMENTMarketingmanagementisdefinedastheanalysis,planning,implementationandcontrolofprogrammesdesignedtocreatebuildandpurposeofachievingorganizationalobjectives.Marketingmanageshavetocarrymarketingresearch,marketingplanning,marketingimplementationandmarketingWithinmarketingplanning,marketermustmakedecisionsontargetmarkets,marketpostphoningproductdevelopment,pricingchannelsofdistribution,physicaldistribution,communicationandpromotion.Thus,themarketingmanagersmustacquireseveralskillstobeeffectiveinmarketplace.CONCEPTSOFMARKETINGTherearefivedistinctconceptsunderwhichbusinessorganisationcanconducttheirmarketingactivity.ProductionConceptvidyarthiplus.comresponsibletokeepthewheelofproductionandconsumptioncontrol.


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vidyarthiplus.comProductConceptSellingConceptMarketingConceptSocietalMarketingConceptPRODUCTIONCONCEPTInthisapproach,afirmisconsideredasthecentralpointandallgoodsandcommoditiesproducedweresoldinthemarket.Themajoremphasiswasontheproductionprocessandcontrolonthetechnicalperfectionswhileproducingthegoods.Theproductionconceptholdsthatconsumerswillfavourthoseproductsthatarewidelyavailableandlowincost.Managementinproductionorientedorganisationconcentratesonachievinghighproductionefficiencyandwidedistributioncoverage.Marketingisanativeforminthisorientationanditwasassumedthatagoodproductsellsbyitself.Onlydistributionandsellingwereconsideredtobemarketing.ThetechnologiststhoughtsthatamenabilityandlowcostoftheproductsduetothelargescalesofproductionwouldbetherightMarketingMixfortheconsumers.But,theydonotthebestofcustomerpatronage.Customersareinfactmotivatedbyavarietyofconsiderationsintheirpurchase.Asaresult,theproductionconceptfailstoserveastherightmarketingphilosophyfortheenterprise.


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vidyarthiplus.comPRODUCTCONCEPTTheproductconceptissomewhatdifferentfromtheproductionconcept.Theproductconceptholdsthatconsumerswillfavourthoseproductsthatofferthemostquality,performancefeatures.Managementintheseproduct-orientedorganizationsfocustheirenergyonmakinggoodproductsandimprovingthemovertime.Yet,inmanycases,theseorganizationsfailinthemarket.Theydonotbothertostudythemarketandtheconsumerin-depth.Theygettotallyengrossedwiththeproductandalmostforgettheconsumerforwhomtheproductisactuallymeant;theyfailtofindourwhattheconsumersactuallyneedandwhattheywouldaccept.MarketingMyopiaAtthisstage,itwouldbeappropriatetoexplainthephenomenonofmarketingmyopia.ThetermmarketingmyopiaistobecreditedtoProfessorTheodoreLevitt.Inoneofhisclassicarticlesbearingthesametitle,intheHarvardBusinessReview,ProfessorLevitthasexplainedmarketingmyopiaasacolouredorcrookedperceptionofmarketingandashort-sightednessaboutbusiness.Excessiveattentiontoproductionorproductorsellingaspectsatthecostofthecustomerandhisactualneeds,createsthismyopia.Itleadstoawronginadequateunderstandingofthemarketandhencefailureinthemarketplace.Themyopiaevenleadstoawrongorinadequateunderstandingoftheverynatureofthebusinessinwhichagivenorganisationisengagedandtherebyaffectsthefutureofthebusiness.Hefurtherexplainedthatwhileandor


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businesskeepchangingwiththetimes,thereissomefundamentalcharacteristicineachbusinessthatmaintainsitselfthroughthechangingtimes,whichinvariablyrelatestothebasichumanneedwhichthebusinessseekstoserveandsatisfythroughitsproducts.Awisemarketershouldunderstandthisimportantfactanddefinehisbusinessintermsofthisfundamentalcharacteristicofthebusinessratherthanintermsoftheproductsandservicesmanufacturedandmarketedbyhim.Forinstance,theAirwaysshoulddefinetheirbusinessastransportationtheMovieSALESCONCEPTThesalesconceptmaintainsthatacompanycannotexpectitsproductstogetpickedupautomaticallybythecustomers.Thecompanyhastoconsciouslypushitsproducts.Aggressiveadvertising,high-powerpersonalselling,largescalesalespromotion,heavypricediscountsandstrongpublicityandpublicrelationsarethenormaltoolsusedbyorganisationthatrelyonthisconcept.Inactualtheseorganizationstoodonotenjoythebestofcustomerpatronage.Thesellingconceptisthusundertakenmostaggressivelywithunsoughtgoods,i.e.thosegoodsthatbuyersnormallydonotthinkofbuying,suchasinsurance,encyclopedias.Thesehaveperfectedvarioustechniquestolocateprospectsandwithgreatdifficultysellthemasthebenefitsoftheirproducts.Evidently,thesalesconcepttoosuffersfrommarketingmyopia.vidyarthiplus.commakersshoulddefinetheirbusinessasentertainment,etc.practice,industriesbusinesskeepchangingwiththetimes,thereissomefundamentalcharacteristicineachbusinessthatmaintainsitselfthroughthechangingtimes,whichinvariablyrelatestothebasichumanneedwhichthebusinessseekstoserveandsatisfythroughitsproducts.Awisemarketershouldunderstandthisimportantfactanddefinehisbusinessintermsofthisfundame

ntalcharacteristicofthebusinessratherthanintermsoftheproductsandservicesmanufacturedandmarketedbyhim.Forinstance,theAirwaysshoulddefinetheirbusinessastransportationtheMovieSALESCONCEPTThesalesconceptmaintainsthatacompanycannotexpectitsproductstogetpickedupautomaticallybythecustomers.Thecompanyhastoconsciouslypushitsproducts.Aggressiveadvertising,high-powerpersonalselling,largescalesalespromotion,heavypricediscountsandstrongpublicityandpublicrelationsarethenormaltoolsusedbyorganisationthatrelyonthisconcept.Inactualtheseorganizationstoodonotenjoythebestofcustomerpatronage.Thesellingconceptisthusundertakenmostaggressivelywithunsoughtgoods,i.e.thosegoodsthatbuyersnormallydonotthinkofbuying,suchasinsurance,encyclopedias.Thesehaveperfectedvarioustechniquestolocateprospectsandwithgreatdifficultysellthemasthebenefitsoftheirproducts.Evidently,thesalesconcepttoosuffersfrommarketingmyopia.

vidyarthiplus.commakersshoulddefinetheirbusinessasentertainment,etc.practice,industries


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vidyarthiplus.comDifferencebetweenSellingandMarketingThemarketingandsellingareconsideredsynonymously.Butthereisgreatofdifferencebetweenthetwo.TheodoreLevittinhissensationalarticlesMarketingMyopiadrawsthefollowingbetweenmarketingandselling.Sellingfocusesontheneedsoftheseller;marketingontheneedsofthebuyer.Sellingispreoccupiedwiththesellersneedtoconverthisproductintocash;marketingwiththeideaofsatisfyingtheneedsofthecustomerbymeanoftheproductandthewholeofthingassociatedwithcreatingdeliveringandfinallyconsumingit.contrastclusterSellingMarketing1Sellingstartswiththeseller,Sellingfocuseswiththeneedsofthe

seller.Selleristhecenterofthebusinessuniverse.Activitiesstartwithsellers

existingproducts.Marketingstartswiththebuyers.Marketingfocusesontheneedsofthe

buyer.Buyeristhecentreofthebusinessuniverse.Activitiesfollow


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thebuyerandhisneeds.2Sellingemphasizesonprofit.Itseekstoquicklyconvertproductsintocash;concernsitselfwiththetricksandtechniques

ofpushingtheproducttothebuyers.Marketingemphasizesonidentificationofamarket

opportunity.Itseekstoconvertcustomerneedsintoproductsandemphasizesonfulfilling

theneedsofthecustomers.3Sellingviewsbusinessas


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agoodsproducingprocesses.Marketingviewsbusinessasacustomersatisfyingprocess.


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vidyarthiplus.com4Itoveremphasizestheexchangeaspectwithoutcaringforthevaluesatisfactionstothebuyers.Itconcernsprimarilywiththevalesatisfactions

thatshouldflowtothecustomerfromtheexchange5Sellersconveniencedominates

theformulationofthemarketingmix.Buyerdeterminestheshapeofthemarketingmix.

6.Thefirmmakestheproductfirstthethendecideshow


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tosellitandmakeprofit.Thecustomerdetermineswhatistobeofferedasaproductandthefirmmakesatotalproduct

offeringthatwouldmatchtheneedsofthecustomers.7Emphasizesacceptingthe

existingtechnologyandreducingthecostofproduction.Emphasissoninnovationofadopting

themostinnovativetechnology.8.Sellersmotivesdominatemarketingcommunications.


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Marketingcommunicationsactsasthetoolforcommunicatingthebenefits/satisfactionsoftheproducttotheconsumers9Costsdetermineprice.Consumerdeterminesprice.10

Transportation,storageandotherdistributionfunctionsareperceivedasmereextensionsofthe

productionfunction.Theyareseenasvitalservicestoprovideconveniencetocustomers.11There

isnocoordinationamongthedifferentfunctionsofthetotalmarketing


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task.Emphasisisonintegratedmarketingapproach.


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vidyarthiplus.com12Differentdepartmentsofthebusinessoperateseparately.Alldepartmentsofthebusinessoperateinahighlyintegratedmannerwithviewto

satisfyconsumers.13Thefirmswhichpracticesellingconcept,productionisthecentralfunction.The

firmswhichpracticemarketingconcept,marketingisthecentralfunction.14.Sellingviewsthecustomer

asthelastlinkinthebusiness.Marketingviewsthecustomer


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astheverypurposeofthebusiness.

MARKETINGCONCEPTTheMarketingconceptwasbornoutoftheawarenessthatmarketingstartswiththedeterminationofconsumerwantsandendswiththesatisfactionofthosewants.Theconceptputstheconsumerbothatthebeginningandattheendofthebusinesscycle.Thebusinessfirmsrecognizethatthereisonlyonevaliddefinitionofbusinesspurpose:tocreateacustomer.Itproclaimsthattheentirebusinesshastobeseenfromthepointofviewofthecustomer.Inacompanypracticingthisconcept,alldepartmentswillrecognizethattheiractionshaveaprofoundimpactonthecompanystocreateandretainEverydepartmentandeveryworkerandmanagerwillthinkcustomerandactcustomer.Themarketingconceptholdsthatthekeytoachievingorganizationalgoalsconsistsindeterminingtheneedsandwantsofthetargetmarketsanddeliveringthedesiredsatisfactionsefficiently,thancompetitors.Inotherwords,marketingconceptisaintegratedmarketingacustomer.


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effortaimedatgeneratingcustomersatisfactionasthekeytosatisfyingorganizationalgoals.Itisobviousthatthemarketingconceptrepresentsaradicallynewapproachtobusinessandisthemostadvancedofallideasonmarketingthathaveemergedthroughtheyears.Onlythemarketingconceptiscapableofkeepingtheorganisationfreefrommarketingmyopia.Thesalientfeaturesofthemarketingconceptare:vidyarthiplus.comeffortaimedatgeneratingcustomersatisfactionasthekeytosatisfyingorganizationalgoals.Itisobviousthatthemarketingconceptrepresentsaradicallynewapproachtobusinessandisthemostadvancedofallideasonmarketingthathaveemergedthroughtheyears.Onlythemarketingconceptiscapableofkeepingtheorganisationfreefrommarketingmyopia.Thesalientfeaturesofthemarketingconceptare:vidyarthiplus.com1)Consumerorientation2)Integratedmarketing3)Consumersatisfaction4)Realizationoforganizationalgoals.1.ConsumerOrientationThemostdistinguishingfeatureofthemarketingconceptistheimportanceassignedtotheconsumer.Thedeterminationofwhatistobeproducedshouldnotbeinthehandsofthefirmsbutinthehandsoftheconsumers.Thefirmsshouldproducewhatconsumerswant.Allactivitiesofthemarketersuchasidentifyingneedsandwants,developingappropriateproductsandpricing,distributingandpromotingthenshouldbeconsumeroriented.Ifthesethingsaredoneeffectively,productswillbeautomaticallyboughtbytheconsumers.2.IntegratedMarketing


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Thesecondfeatureofthemarketingconceptisintegratedmarketingi.e.integratedmanagementaction.Marketingcanneverbeanisolatedmanagementfunction.Everyactivityonthemarketingsidewillhavesomebearingontheotherfunctionalareasofmanagementsuchasproduction,personnelorfinance.Similarlyanyactioninaparticularareaofoperationinproductiononfinancewillcertainlyhaveanimpactonmarketingandultimatelyinconsumer.Therefore,inanintegratedmarketingset-up,thevariousfunctionalareasofmanagementgetintegratedwiththemarketingfunction.Integratedmarketingpresupposesawithmarketinginfluencingthecorporatedecisionmakingprocess.byprovidingconsumersatisfaction,naturallyitfollowsthatthedifferentdepartmentsofhecompanyarefairlyintegratedwitheachotherandtheireffortsarechannelizedthroughtheprincipalmarketingvidyarthiplus.comdepartmenttowardstheobjectivesofconsumersatisfaction.propercommunicationamongthedifferentmanagementareas,Thus,whenthefirmsobjectiveistomakeprofitThesecondfeatureofthemarketingconceptisintegratedmarketingi.e.integratedmanagementaction.Marketingcanneverbeanisolatedmanagementfunction.Everyactivityonthemarketingsidewillhavesomebearingontheotherfunctionalareasofmanagementsuchasproduction,personnelorfinance.Similarlyanyactioninaparticularareaofoperationinproductiononfinancewillcertainlyhaveanimpactonmarketingandultimatelyinconsumer.Therefore,inanintegratedmarketingset-up,thevariousfunctionalareasofmanagementgetintegratedwiththemarketingfunction.Integratedmarketingpresupposesawithmarketinginfluencingthecorporatedecisionmak

ingprocess.byprovidingconsumersatisfaction,naturallyitfollowsthatthedifferentdepartmentsofhecompanyarefairlyintegratedwitheachotherandtheireffortsarechannelizedthroughtheprincipalmarketingvidyarthiplus.comdepartmenttowardstheobjectivesofconsumersatisfaction.propercommunicationamongthedifferentmanagementareas,Thus,whenthefirmsobjectiveistomakeprofit3.ConsumerSatisfactionThirdfeatureofthemarketingisconsumersatisfaction.Themarketingconceptemphasizesthatitisnotenoughifafirmahsconsumerorientation;itisessentialthatsuchanorientationleadstoconsumersatisfaction.Forexample,whenaconsumerbuysatinofcoffee,heexpectsapurposetobeserved,aneedtobesatisfied.Ifthecoffeedoesnot


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providehimtheexpectedfiavour,thetasteandtherefreshmentshispurchasehasnotservedthepurpose;ormoreprecisely,themarketerwhosoldthecoffeehasfailedtosatisfyhisconsumer.Thus,satisfactionistheproperfoundationonwhichaloneanybusinesscanbuilditsfuture.4.RealizationofOrganizationalGoalsincludingProfitIfafirmhassucceededingeneratingconsumersatisfaction,isimpliesthatthefirmhasgivenaqualityproduct,offeredcompetitivepriceandpromptserviceandhassucceededincreatinggoodimage.Itisquiteobviousthatforachievingtheseresults,thefirmwouldhavetrieditsmaximumtocontrolcostsandsimultaneouslyensurequality,optimizeproductivityandmaintainagoodorganizationalclimate.Andinthisprocess,theorganizationalgoalsincludingprofitareautomaticallyrealized.Themarketingconceptneversuggeststhatprofitisunimportanttothefirm.Theconceptisagainstprofiteeringonly,butnotagainstprofits.BenefitsofMarketingConceptTheconceptbenefitstheorganisationthatpracticesit,theconsumeratwhomitisaimedandthesocietyatthesocietyatlarge.1.Benefitstotheorganisation:Inthefirstplace,ofthepracticeoftheconceptbringssubstantialbenefitstotheorganisationthatvidyarthiplus.comprovidehimtheexpectedfiavour,thetasteandtherefreshmentshispurchasehasnotservedthepurpose;ormoreprecisely,themarketerwhosoldthecoffeehasfailedtosatisfyhisconsumer.Thus,satisfactionistheproperfoundationonwhichaloneanybusinesscanbuilditsfuture.4.RealizationofOrganizationalGoalsincludingProfitIfafirmhassucceededingeneratingconsumersatisfaction,isimpliesthatthefirmhasgivenaqualityproduct,offeredcompetitivepriceandpromptserviceandhassucceededincreatinggoodimage.Itisquiteobviousthatf

orachievingtheseresults,thefirmwouldhavetrieditsmaximumtocontrolcostsandsimultaneouslyensurequality,optimizeproductivityandmaintainagoodorganizationalclimate.Andinthisprocess,theorganizationalgoalsincludingprofitareautomaticallyrealized.Themarketingconceptneversuggeststhatprofitisunimportanttothefirm.Theconceptisagainstprofiteeringonly,butnotagainstprofits.BenefitsofMarketingConceptTheconceptbenefitstheorganisationthatpracticesit,theconsumeratwhomitisaimedandthesocietyatthesocietyatlarge.1.Benefitstotheorganisation:Inthefirstplace,ofthepracticeoftheconceptbringssubstantialbenefitstotheorganisationthatvidyarthiplus.com


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practicesit.Forexample,theconceptenabletheorganisationtokeepabreastofchanges.Anorganisatoinprcisingtheconceptkeepsfeelingthepulseofthemarketthroughcontinuousmarketingaudit,marketresearchandconsumertesting.Itisquicktorespondtochangesinbuyerbehaviour,itrectifiesanydrawbackinitstheseproducts,itgivesgreatimportanceplanning,researchandinnovation.Alltheseresponse,inthelongrun,proveextremelybeneficialtothefirm.Anothermajorbenefitsisthatprofitsbecomemoreandcertain,asitisnolongerobtainedatthecostoftheconsumerbutonlythroughsatisfyinghim.Thebaseofconsumersatisfactionguaranteeslongtermfinancialsuccess.2.BenefitstoConsumers:Theconsumersareinfactthemajorbeneficiaryofthemarketingconcept.Theattemptsofvariousposition.Theconceptpromptstoproducestoconstantlyimprovetheirproductsandtolaunchnewproducts.Alltheseresultsinbenefitstotheconsumersuchas:lowprice,betterquality,improved/newproductsandreadystockatconvenientlocations.Theconsumercanchoose,hecanbargain,hecancomplainandhiscomplaintwillalsobeattendedto.Hecanevenreturnthegoodsifnotsatisfied.Inshort,whenorganizationsadoptmarketingconcept,asnaturalcorollary,theirbusinesspracticeschangeinfavouroftheconsumer.3.Benefitstothesociety:Thebenefitfromthemarketingconceptisnotlimitedtotheindividualconsumerofproducts.Whenmoreandmoreorganizationsresorttothemarketingconcept,thesocietyinvidyarthiplus.comtocompetingfirmstosatisfytheconsumerputhimanenviablepracticesit.Forexample,theconceptenabletheorganisationtokeepabreastofchanges.Anorganisatoinprcisingtheconceptkeepsfeelingthepulseofthemarketthroughcontinuousmarketingaudit,marketresearchandconsumertesting.Itisquicktorespondtochangesinbuyerbehaviour,itr

ectifiesanydrawbackinitstheseproducts,itgivesgreatimportanceplanning,researchandinnovation.Alltheseresponse,inthelongrun,proveextremelybeneficialtothefirm.Anothermajorbenefitsisthatprofitsbecomemoreandcertain,asitisnolongerobtainedatthecostoftheconsumerbutonlythroughsatisfyinghim.Thebaseofconsumersatisfactionguaranteeslongtermfinancialsuccess.2.BenefitstoConsumers:Theconsumersareinfactthemajorbeneficiaryofthemarketingconcept.Theattemptsofvariousposition.Theconceptpromptstoproducestoconstantlyimprovetheirproductsandtolaunchnewproducts.Alltheseresultsinbenefitstotheconsumersuchas:lowprice,betterquality,improved/newproductsandreadystockatconvenientlocations.Theconsumercanchoose,hecanbargain,hecancomplainandhiscomplaintwillalsobeattendedto.Hecanevenreturnthegoodsifnotsatisfied.Inshort,whenorganizationsadoptmarketingconcept,asnaturalcorollary,theirbusinesspracticeschangeinfavouroftheconsumer.

3.Benefitstothesociety:Thebenefitfromthemarketingconceptisnotlimitedtotheindividualconsumerofproducts.Whenmoreandmoreorganizationsresorttothemarketingconcept,thesocietyinvidyarthiplus.comtocompetingfirmstosatisfytheconsumerputhimanenviable


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Totobenefits.Theconceptguaranteesthatonlyproductsthatarerequiredbytheconsumersareproduced;therebyitensuresthatthesocietyseconomicresourcesarechannelizedintherightdirection.Italsocreatesentrepreneursandmanagersinthegivensociety.Moreover,itactsasachangeagentandavalueadder;improvesthestandardoflivingofthepeople;andacceleratesthepaceofeconomicdevelopmentofthesocietyasawhole.Italsothelifeofthepeople.Infact,thepracticeofconsumerorientedmarketingbenefitssocietyinyetanotherwaybyenablingbusinessorganizationstoappreciatethesocietalcontentinherentinanybusiness.Whentheorganisationsmoveclosertothecustomers,theyseeclearlythevalidityofthefollowingobservationofDrucker,Thepurposeofanybusinessliesoutsidethebusinessinsociety.Andthisawarenessofthesocietalcontentofbusinessoftenenthusesorganizationstomakeanotablecontributiontotheenrichmentofsociety.SocietalMarketingconceptNowthequestioniswhetherthemarketingconceptisanappropriateorganizationalgoalinanageofenvironmentaldeterioration,resourceshortages,explosivepopulationgrowthetc.andwhetherthefirmisnecessarilyactinginthebestlongruninterestsofconsumersandsociety.Forexample,manymoderndisposablepackingmaterialscreatevidyarthiplus.commakeseconomicplanningmoremeaningfulandmorerelevanttoTotobenefits.Theconceptguaranteesthatonlyproductsthatarerequiredbytheconsumersareproduced;therebyitensuresthatthesocietyseconomicresourcesarechannelizedintherightdirection.Italsocreatesentrepreneursandmanagersinthegivensociety.Moreover,itactsasachangeagentandavalueadder;improvesthestandardoflivingofthepeople;andacceleratesthepaceofeconomicdevelopmen

tofthesocietyasawhole.Italsothelifeofthepeople.Infact,thepracticeofconsumerorientedmarketingbenefitssocietyinyetanotherwaybyenablingbusinessorganizationstoappreciatethesocietalcontentinherentinanybusiness.Whentheorganisationsmoveclosertothecustomers,theyseeclearlythevalidityofthefollowingobservationofDrucker,Thepurposeofanybusinessliesoutsidethebusinessinsociety.Andthisawarenessofthesocietalcontentofbusinessoftenenthusesorganizationstomakeanotablecontributiontotheenrichmentofsociety.SocietalMarketingconceptNowthequestioniswhetherthemarketingconceptisanappropriateorganizationalgoalinanageofenvironmentaldeterioration,resourceshortages,explosivepopulationgrowthetc.andwhetherthefirmisnecessarilyactinginthebestlongruninterestsofconsumersandsociety.Forexample,manymoderndisposablepackingmaterialscreatevidyarthiplus.commakeseconomicplanningmoremeaningfulandmorerelevantto


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vidyarthiplus.comproblemofenvironmentaldegradationSituationslicallforanewkethis,concept,whichiscalledSocialMarketingConcept.Thesocietalmarketingconceptholdsthattheorganizationstaskistodeterminetheneeds,wantsandinterestsoftargetmarketsandtodeliverthedesiredsatisfactionmoreeffectivelyandefficientlythancompetitorsinawaythatpreservesorenhancestheconsumersandthesocietyswellbeing.A-fewmagazinessuchasKalki,AnandaVikadan,dotanynotaccepadvertisementsforCigarettesoralcoholicliquorstislossofrevenueforthem.Thisisatypicalexampleofsocietalmarketingconcept.Thesocietalmarketingconceptcallsuponmarketerstobalancethreeconsiderationsinsettingtheirmarketingpoliciesnamelyfirmsprofits,consumerwantsatisfactionandsocietyinterest.METAMARKETINGthoughiLikesocietalmarketing,theconceptofmeta-marketlsoofingisarecentorigin.Ithasconsiderablyhelpedtodevelopnsightintothisexcitingfieldoflearning.Theliteralmeaningofthetermmetaismorecomprehensiveandisusedwiththenameofadisciplinetodesignateanewbutreddisciplinedesignedtodealcriticallywiththeoriginalone.Inmarketing,thistermwasoriginallycoinedbyKellywhilediscussingtheissuesofethicsandscienceofmarketing.Kotlergavethebroadenedapplicationofmarketingnationstonon-businessorganisations,persons,causesetc.Inbroadeningtheconceptofmarketing,marketingwasnewi


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assignedamorecomprehensiverole.Heusedthetermmeta-marketingtodescribetheprocessesinvolvedinattemptingtodevelopormaintainexchangerelationsinvolvingproducts/servicesorganizations,persons,vidyarthiplus.comassignedamorecomprehensiverole.Heusedthetermmeta-marketingtodescribetheprocessesinvolvedinattemptingtodevelopormaintainexchangerelationsinvolvingproducts/servicesorganizations,persons,vidyarthiplus.complacesorcauses.includeFamilyWelfareProgrammesandtheideaofprohibition.DEMARKETINGTheexamplesofnon-businessmarketingormeta-marketingmayThedemarketingconceptisalsoofrecentorigin.Itisaconceptwhichisofgreatrelevancetodevelopingeconomieswheredemandsforproducts/servicesexceedsupplies.Demarketinghasbeendefinedasthataspectofmarketingthatdealswithdiscouragingcustomer,ingeneral,oracertainclassofcustomersinparticularoneitheratemporaryorpermanentbasis.Thedemarketingconceptespousesthatmanagementofexcessdemandisasmuchamarketingproblemasthatofexcesssupplyandcanbeachievedbytheuseofsimilarmarketingtechnologyasusedinthecaseofmanagingexcesssupply.Itmaybeemployedbyacompanytoreducetheleveloftotaldemandwithoutalienatingloyal(GeneralDemarketing),todiscouragethedemandcomingfromcertainsegmentsofthemarketthatareeitherunprofitableorpossessthepotentialofinjuringloyalbuyers(SelectiveDemarketing),toappeartowantlessdemandforthesakeofactuallyincreasingit(OstensibleDemarketing).customers


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Whatevermaybetheobjective,thereisalwaysadangerofdamagingcustomerrelationsinanydemarektingstrategy.Therefore,tobecreative,everycompanyhastoensurethatitslong-runcustomerrelationsremainvidyarthiplus.comWhatevermaybetheobjective,thereisalwaysadangerofdamagingcustomerrelationsinanydemarektingstrategy.Therefore,tobecreative,everycompanyhastoensurethatitslong-runcustomerrelationsremainvidyarthiplus.comundamaged.REVIEWQUESTIONS:1.Definemarketing.Bringoutitsimportance2.Brieflydiscussthevariousconceptofmarketing.3.Discussindetailthemodernmarketingconcept.*****************


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vidyarthiplus.comLESSON2APPROACHESTOTHESTUDYOFMARKETINGLearningObjectivesAfterreadingthislesson,youshouldbeabletounderstandTheapproachestothestudyofmarketing.Thesignificanceofdifferentapproaches.Therearedifferentapproachesstothestudyofmarketing.Theseapproacheshaveimmenselycontributedtotheevolutionofthemodernapproachandtheconceptofmarketing.Tofacilitatethestudy,theseapproachesmaybebroadlyclassifiedasfollows:(i)Commodityapproach(ii)Functionalapproach(iii)Institutionalapproach(iv)Managerialapproach;and(v)SystemsapproachCommodityApproachspecificcommodityisselectedandthenitsmarketingmethodsandenvironmentsarestudiedinthecourseofitsmovementfromproducertoThefirstapproachisthecommodityapproachunderwhicha


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consumer.Inthisapproach,thesubjectmatterofdiscussioncentresaroundthespecificcommodityselectedforthestudyandincludesthesourcesandconditionsofsupply,natureandextentofdemand,thevidyarthiplus.comdistributionchannelsused,promotionalmethodsadoptedetc.consumer.Inthisapproach,thesubjectmatterofdiscussioncentresaroundthespecificcommodityselectedforthestudyandincludesthesourcesandconditionsofsupply,natureandextentofdemand,thevidyarthiplus.comdistributionchannelsused,promotionalmethodsadoptedetc.FunctionalApproachThesecondapproachisthefunctionalapproachunderwhichthestudyconcentratesonthespecializedfunctionsorservicesperformedbythemarketersandtheproblemsfacedbytheminperformingthosefunctions.Suchmarketingfunctionsincludebuying,selling,storage,standardizing,transport,finance,risk-bearing,marketinformationetc.Thisapproachcertainlyenablesonetogaindetailedknowledgeonvariousfunctionsofmarketing.InstitutionalApproachThethirdapproachistheinstitutionalapproachunderwhichthemaininterestcentresaroundtheinstitutionsoragenciesthatperformmarketingfunctions.Suchagenciesincludewholesalers,retailers,mercantileagentsandfacilitatinginstitutionsliketransportundertakings,banks,insurancecompaniesetc.Thisapproachhelpsonetofindouttheoperatingmethodsadoptedbytheseinstitutionsvariousproblemsfacedbythemandtoknowhowtheyworktogetherinfulfillingtheirobjectives.ManagerialApproachandthe


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Inthemanagerialapproach,thefocusofmarketingstudyisonthedecision-makingprocessinvolvedintheperformancemarketingfunctionsatthelevelofafirm.Thestudyencompassesdiscussionofthedifferentunderlyingconcepts,decisioninfluencingfactors;alternativestrategiestheirrelativeimportance,strengthsandweaknesses,adtechniquesandmethodsofproblem-solving.Thisapproachentailsthestudyofmarketingatthemicro-levelofabusinessfirmofthemanagerialfunctionsofanalysis,planning,implementation,coordinationandcontrolinrelationtothemarketingfunctionsorcreating,stimulating,facilitatingandvaluingtransactions.SystemsApproachModernmarketingiscomplex,vastandsophisticatedanditinfluencestheentireeconomyandstandardoflivingofpeople.HencemarketingexpertshavedevelopedonemoreapproachnamelySystemapproach.Underthisapproach,marketingitselfisconsideredasasub-systemofeconomic,legalandcompetitivemarketingsystem.Themarketingsystemoperatesinanenvironmentofbothcontrollableanduncontrollableforcesoftheorganisation.Thecontrollableforcesincludeallaspectsofproducts,price,physicaldistributionandpromotion.Theuncontrollableforcesincludeeconomic,sociological,psychologicalandpoliticalforces.Theorganisationhastodevelopasuitablemarketingprogrammebytakingintoconsiderationboththesecontrollableanduncontrollableforcestomeetthechangingdemandsofthesociety.Thesystemsapproach,infact,examinesthisaspectandalsointegratescommodity,functionalinstitutionalandmanagerialapproaches.Further,vidyarthiplus.comofInthemanagerialapproach,thefocusofmarketingstudyisonthedecision-makingprocessinvolvedintheperformancemarketingfunctionsatthelevelofafirm.Thestudyencompassesdiscussionofthedifferentunderlyingconcepts,decisioninfluencingfactors;alternativestr

ategiestheirrelativeimportance,strengthsandweaknesses,adtechniquesandmethodsofproblem-solving.Thisapproachentailsthestudyofmarketingatthemicro-levelofabusinessfirmofthemanagerialfunctionsofanalysis,planning,implementation,coordinationandcontrolinrelationtothemarketingfunctionsorcreating,stimulating,facilitatingandvaluingtransactions.SystemsApproachModernmarketingiscomplex,vastandsophisticatedanditinfluencestheentireeconomyandstandardoflivingofpeople.HencemarketingexpertshavedevelopedonemoreapproachnamelySystemapproach.Underthisapproach,marketingitselfisconsideredasasub-systemofeconomic,legalandcompetitivemarketingsystem.Themarketingsystemoperatesinanenvironmentofbothcontrollableanduncontrollableforcesoftheorganisation.Thecontrollableforcesincludeallaspectsofproducts,price,physicaldistributionandpromotion.Theuncontrollableforcesincludeeconomic,sociological,psychologicalandpoliticalforces.Theorganisationhastodevelopasuitablemarketingprogrammebytakingintoconsiderati

onboththesecontrollableanduncontrollableforcestomeetthechangingdemandsofthesociety.Thesystemsapproach,infact,examinesthisaspectandalsointegratescommodity,functionalinstitutionalandmanagerialapproaches.Further,vidyarthiplus.comof


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thisapproachemphasistheimportanceoftheuseofmarketinformationinmarketingprogrammes.Thus,fromtheforegoingdiscussion,onecouldeasilyunderstandthatthemarketingcouldbestudiedinanyoftheaboveapproachandthesystemsapproachisconsideredtobethebestapproachasitprovidesastrongbaseforlogicalandorderlyanalysisandplanningofmarketingvidyarthiplus.comthisapproachemphasistheimportanceoftheuseofmarketinformationinmarketingprogrammes.Thus,fromtheforegoingdiscussion,onecouldeasilyunderstandthatthemarketingcouldbestudiedinanyoftheaboveapproachandthesystemsapproachisconsideredtobethebestapproachasitprovidesastrongbaseforlogicalandorderlyanalysisandplanningofmarketingvidyarthiplus.comactivities.REVIEWQUESTIONS1.2.ExplainSystemsApproachtothestudyofmarketing.Discussthevariousapproachestothestudyofmarketing.


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vidyarthiplus.comLESSON3MARKETSEGMENTATIONLearningObjectivesThemeaning,basesandbenefitsoftheconceptofmarketsegmentation;Afterreadingthislesson,youshouldtoabletounderstand-Theconceptoftargetmarket;MeaningandtypesofpositioninganditsimplicationsAllfirmsmustformulateastrategyforapproachingtheirmarkets.Ontheonehand,thefirmmaychoosetoprovideoneproducttoallofitscustomer;ontheotherhand,itmaydeterminethatthemarketissoheterogeneousthatithasnochoicebuttodivideorsegmentpotentialusersintosubmarkets.Segmentationisthekeytothemarketingstrategyofmanycompanies.Segmentationisademand-orientedapproachthatinvolvesmodifyingthefirmsproductand/ormarketingstrategiestofittheneedsofindividualAccordingtoWilliamStanton,Marketsegmentationistheprocessofdividingthetotalheterogeneousmarketforaseveralsub-marketsorsegmentseachofwhichtendtobehomogeneousinallsignificantaspects.marketsegmentsratherthanthoseoftheaggregatemarket.productinto


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Marketsegmentationisbasicallyastrategyofdivideandrule.Thestrategyinvolvesthedevelopmentoftwoormoredifferentmarketingprogrammesforagivenproductorservice,marketingprogrammeaimingateachsegment.Astrategyofmarketsegmentationrequiresthatthemarketerfirstclearlydefinethenumberandnatureofthecustomergroupingstowhichheintendstoofferhisproductorservice.Thisisanecessaryconditionforoptimizingefficiencyofmarketingeffort.RATIONALEFORMARKETSEGMENTATIONTherearethreereasonswhyfirmsusemarketsegmentations:BecausesomemarketsareheterogeneousBecausemarketsegmentsresponddifferentlytodifferentvidyarthiplus.comwitheachMarketsegmentationisbasicallyastrategyofdivideandrule.Thestrategyinvolvesthedevelopmentoftwoormoredifferentmarketingprogrammesforagivenproductorservice,marketingprogrammeaimingateachsegment.Astrategyofmarketsegmentationrequiresthatthemarketerfirstclearlydefinethenumberandnatureofthecustomergroupingstowhichheintendstoofferhisproductorservice.Thisisanecessaryconditionforoptimizingefficiencyofmarketingeffort.RATIONALEFORMARKETSEGMENTATIONTherearethreereasonswhyfirmsusemarketsegmentations:BecausesomemarketsareheterogeneousBecausemarketsegmentsresponddifferentlytodifferentvidyarthiplus.comwitheachpromotionalappeals;andBecausemarketsegmentationconsiderwiththemarketingconcept.HeterogeneousMarkets:

Marketisheterogeneousbothinthesupplyanddemandside.Onsupplyside,manyfactorslikedifferencesinproductionequipments,processingtechniques,natureofresourcesorinputsavailabletodifferentmanufactures,unequalcapacityamongthecompetitorstermsofdesignandimprovementanddeliberateeffortstoremaindifferentfromotheraccountfortheheterogeneity.Similarly,thedemandside,whichconstituteconsumersisalsodifferentduetodifferencesinphysicalandpsychologicaltraitsofconsumer.Modernbusinessmanagersrealizethatundernormalcircumstancestheycannotattractallofthefirmspotentialin


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customerstooneproduct,becausedifferentbuyerssimplyhavedifferentthesellermustprovidedifferentproducts.Forexample,intwowheelers,theTVSCompanyfirstintroducedTVS50Moped,butlateronintroducedavarietyoftwowheelers,suchasTVSXL,TVSPowerport,TVSChamp,TVSSport,TVSScooty,TVSSuzuki,TVSVictor,tosuittherequirementsofdifferentvidyarthiplus.comneedsandwants.Toaccommodatethisheterogeneity,customerstooneproduct,becausedifferentbuyerssimplyhavedifferentthesellermustprovidedifferentproducts.Forexample,intwowheelers,theTVSCompanyfirstintroducedTVS50Moped,butlateronintroducedavarietyoftwowheelers,suchasTVSXL,TVSPowerport,TVSChamp,TVSSport,TVSScooty,TVSSuzuki,TVSVictor,tosuittherequirementsofdifferentvidyarthiplus.comneedsandwants.Toaccommodatethisheterogeneity,classesofcustomers.2.VariedPromotionalAppeals:Astrategyofmarketsegmentationdoesnotnecessarilymeanthatthefirmmustproducedifferentproductsforeachmarketsegment.Ifcertainpromotionalappealsarelikelytoaffecteachmarketsegmentdifferently,thefirmmaydecidetobuildflexibilityintoitspromotionalForexample,manypoliticalcandidateshavetriedtosellthemselvestotheelectoratebyemphasizingonemessagetolabour,anothertobusiness,andathirdtofarmers.strategyratherthantoexpanditsproductline.Asanotherexample,theSheratonHotelservesdifferentdistrictmarketsegments,suchasconventioneers,businesspeopleandtourists.Eachsegmentshasdifferentreasonsforusingthehotel.Consequently,

Sheratonusesdifferentmediaanddifferentmessagestocommunicatewiththevarioussegments.


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3.ConsistencywiththeMarketingConceptAthirdreasonforusingmarketsegmentationisthatitisconsistentwiththemarketingconcept.Marketsegmentationrecognizestheexistenceofdistinctmarketgroups,eachwithadistinctsetofneeds.Throughsegmentation,thefirmdirectsitsproductandpromotionaleffortsatthosemarketsthatwillbenefitmostfromorthatwillgetthegreatestenjoymentfromitsmerchandise.Thisistheheartofthevidyarthiplus.com3.ConsistencywiththeMarketingConceptAthirdreasonforusingmarketsegmentationisthatitisconsistentwiththemarketingconcept.Marketsegmentationrecognizestheexistenceofdistinctmarketgroups,eachwithadistinctsetofneeds.Throughsegmentation,thefirmdirectsitsproductandpromotionaleffortsatthosemarketsthatwillbenefitmostfromorthatwillgetthegreatestenjoymentfromitsmerchandise.Thisistheheartofthevidyarthiplus.commarketingconcept.Overtheyears,marketsegmentationhasbecomeanincreasinglypopularstrategictechniqueasmoreandmorefirmshaveadoptedthemarketingconcept.Otherhistoricalforcesbeingtheriseofmarketsegmentationincludeneweconomiesofscale,increasededucationandaffluence,greatercompetition,andtheadventofnewsegmentationtechnology.BasesofMarketSegmentationThereareanumberofbasesonwhichafirmmaysegmentitsmarket1.Geographicbasisa.Nationsb.Statesc.Regions2.Demographicbasisa.Age


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b.Sexc.Incomed.SocialClasse.MaterialStatusvidyarthiplus.comSexc.Incomed.SocialClasse.MaterialStatusvidyarthiplus.comf.FamilySizeg.Educationh.Occupation3.Psychographicbasisa.Lifestyleb.Personalitiesc.Loyaltystatusd.Benefitssoughte.Usagerate(volumesegmentation)f.Buyerreadinessstages(unaware,aware,informed,interested,desired,intendtobuy)g.Attitudestage(Enthusiastic,positive,indifferent,negative,hostile)METHODSOFSEGMENTATION


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variouscharacteristicsofthecustomersandgeographicalcharacteristicsetc.,commonmethodsofmarketsegmentationscouldbedone.Commonmethodsusedare:GeographicalSegmentationWhenthemarketisdividedintodifferentgeographicalunitasregion,continent,country,state,district,cities,urbanandruralareas,itiscalledasgeographicalsegmentation.Evenonthegeographicneedsandpreferenceproductscouldbemade.EventhroughTataTeaissoldonanationallevel,itisflavouredaccordinglyindifferentregions.TheBajajhassub-dividedtheentirecountryintotwodistinctmarkets.Owingtothebetterroadconditionsinthenorth,thesuperFESectorispromotedbetterwithsmallwheels;whereasinthecaseofsouth,BajajpromotesChetakFEwithlargewheelsbecauseofthebadroadconditions.DemographicSegmentationDemographicsisthemostcommonlyusedbasisformarketsegmentation.Demographicvariablesarerelativelyeasytounderstandandmeasure,andtheyhaveproventobeexcellentsegmentationcriteriaformanymarkets.InformationinseveraldemographiccategoriesisOnthebasisofthebasesusedforthemarketsegmentation,particularlyusefultomarketers.Demographicsegmentationreferstodividingthemarketintogroupsonthebasisofage,sex,familysizecycle,income,education,vidyarthiplus.comstrengthoftheteadiffersineachregionsofthecountry.variouscharacteristicsofthecustomersandgeographicalcharacteristicsetc.,commonmethodsofmarketsegmentationscouldbedone.Commonmethodsusedare:GeographicalSegmentationWhenthemarketisdividedintodifferentgeographicalunitasregion,continent,country,state,district,cities,urbanandruralareas,itiscalledasgeographicalsegmentation.Evenonthegeographicneedsandpreferenceproductscouldbemade.Eve

nthroughTataTeaissoldonanationallevel,itisflavouredaccordinglyindifferentregions.TheBajajhassub-dividedtheentirecountryintotwodistinctmarkets.Owingtothebetterroadconditionsinthenorth,thesuperFESectorispromotedbetterwithsmallwheels;whereasinthecaseofsouth,BajajpromotesChetakFEwithlargewheelsbecauseofthebadroadconditions.DemographicSegmentationDemographicsisthemostcommonlyusedbasisformarketsegmentation.Demographicvariablesarerelativelyeasytounderstandandmeasure,andtheyhaveproventobeexcellentsegmentationcriteriaformanymarkets.InformationinseveraldemographiccategoriesisOnthebasisofthebasesusedforthemarketsegmentation,particularlyusefultomarketers.Demographicsegmentationreferstodividingthemarketintogroupsonthebasisofage,sex,familysizecycle,income,education,vidyarthiplus.comstrengthoftheteadiffersineachregionsofthecountry.


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Inbetterdistinctionsamongthecustomergroupsthissegmentationhelps.Theabovedemographicvariablesaredirectlyrelatedwiththeconsumerneeds,wantsandpreferences.organizations.Someaspectsofageasasegmentationvariablearequiteobvious.Forexample,childrenconstitutetheprimarymarketfortoysandpeople65yearsandolderaremajorusersofmedicalservices.Ageandlifecycleareimportantfactors.Forinstanceintwowheelermarket,asBajajhasSunnyforthecollegegirls;BajajChetakforyoungsters;BajajChetakfortheofficegoingpeopleandBajajM80forruralpeople.Inappealingtoteenagers,forexample,themarketingexecutivemustcontinuallymonitortheirever-changingbeliefs,politicalandsocialattitudes,aswellsastheentertainersandclothingthataremostpopularwithyoungpeopleataparticulartime.Suchfactorsareimportantindevelopingeffectiveadvertisingcopyandillustrationsforaproductdirectedtotheyouthmarket.Sexsegmentationisappliedtoclothing,cosmetics,magazinesandhairdressing.ThemagazineslikeWomensEra,Femina,(inMalayalam),MangaiyarMalar(inTamil)aremainlysegmentedforwomen.Recentlyevenacigaretteexclusivelyforwomenwasbroughtout.BeautyParloursarenotsynonymsfortheladies.occupation,religion,race,castandnationality.Incomesegmentation:Ithaslongbeenconsideredagoodvariableforsegmentingmarkets.Wealthypeople,forexample,aremorelikelytobuyexpensiveclothes,jewelleries,cars,andtoliveinlargehouses.Invidyarthiplus.comAge:MarketsegmentsbasedonagearealsoimportanttomanyInbetterdistinctionsamongthecustomergroupsthissegmentationhelps.Theabovedemographicvariablesa

redirectlyrelatedwiththeconsumerneeds,wantsandpreferences.organizations.Someaspectsofageasasegmentationvariablearequiteobvious.Forexample,childrenconstitutetheprimarymarketfortoysandpeople65yearsandolderaremajorusersofmedicalservices.Ageandlifecycleareimportantfactors.Forinstanceintwowheelermarket,asBajajhasSunnyforthecollegegirls;BajajChetakforyoungsters;BajajChetakfortheofficegoingpeopleandBajajM80forruralpeople.Inappealingtoteenagers,forexample,themarketingexecutivemustcontinuallymonitortheirever-changingbeliefs,politicalandsocialattitudes,aswellsastheentertainersandclothingthataremostpopularwithyoungpeopleataparticulartime.Suchfactorsareimportantindevelopingeffectiveadvertisingcopyandillustrationsforaproductdirectedtotheyouthmarket.Sexsegmentationisappliedtoclothing,cosmetics,magazinesandhairdressing.Themagazin

eslikeWomensEra,Femina,(inMalayalam),MangaiyarMalar(inTamil)aremainlysegmentedforwomen.Recentlyevenacigaretteexclusivelyforwomenwasbroughtout.BeautyParloursarenotsynonymsfortheladies.occupation,religion,race,castandnationality.Incomesegmentation:Ithaslongbeenconsideredagoodvariableforsegmentingmarkets.Wealthypeople,forexample,aremorelikelytobuyexpensiveclothes,jewelleries,cars,andtoliveinlargehouses.Invidyarthiplus.comAge:Marketsegmentsbasedonagearealsoimportanttomany


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addition,incomehasbeenshowntobeanexcellentsegmentationcorrelateforanevenwiderrangeofcommoditypurchasedproducts,includinghouseholdtoiletries,paperandplasticitems,furniture,etc.SocialClasssegmentation:Thisisasignificantmarketsegment.Forexample,membersofdifferentsocialclassesvarydramaticallyintheiruseofbankcreditcards.Peopleinlowe4rsocialclassestendtousebankcreditcardsasinstallmentloans,whilethoseinhighersocialclassesusethemforconveniencepurposes.inbehaviourcanbesignificantwhensegmentingamarketanddevelopingamarketingprogramtoserveeachsegment.PsychographicSegmentationOnthebasisofthelifestyle,personalitycharacteristics,buyersaredividedandthissegmentationisknownaspsychographicssegmentation.Certaingroupofpeoplereactsinaparticularmannerforanappealprojectedintheadvertisementsandexhibitbehaviouralpatterns.Marketershavealsousedthepersonalityvariablesasindependent,impulsive,masculine,aggressive,confident,nave,shyetc.formarketingtheirproducts.Oldspicepromotestheiraftershavelotionforthepeoplewhoareselfconfidentandareveryconsciousoftheirdresscode.Theseadvertisementsfocusmainlypersonalityvariablesassociatedwiththeproduct.BehaviouralSegmentationBuyerbehaviouralsegmentationisslightlydifferentfrompsychographicsegmentation.Herebuyersaredividedintogroupsonthebasisoftheirknowledge,attitude,useorresponsetoaproduct.vidyarthiplus.comThesedifferencescommonontheaddition,incomehasbeenshowntobeanexcellentsegmentationcorrelateforanevenwiderrangeofcommoditypurchasedproducts,includinghouseholdtoiletries,paperandplasticitems,furniture,etc.SocialClasssegmentation:Thisisasignificantmarketsegment.

Forexample,membersofdifferentsocialclassesvarydramaticallyintheiruseofbankcreditcards.Peopleinlowe4rsocialclassestendtousebankcreditcardsasinstallmentloans,whilethoseinhighersocialclassesusethemforconveniencepurposes.inbehaviourcanbesignificantwhensegmentingamarketanddevelopingamarketingprogramtoserveeachsegment.PsychographicSegmentationOnthebasisofthelifestyle,personalitycharacteristics,buyersaredividedandthissegmentationisknownaspsychographicssegmentation.Certaingroupofpeoplereactsinaparticularmannerforanappealprojectedintheadvertisementsandexhibitbehaviouralpatterns.Marketershavealsousedthepersonalityvariablesasindependent,impulsive,masculine,aggressive,confident,nave,shyetc.formarketingtheirproducts.Oldspicepromotestheiraftershavelotionforthepeoplewhoareselfconfidentandareveryconsciousoftheirdresscode.Theseadvertisementsfocusmainlypersonalityvariablesassociatedwiththeproduct.BehaviouralSegmentationBuyerbehaviouralsegmentationisslightlydifferentfrompsycho

graphicsegmentation.Herebuyersaredividedintogroupsonthebasisoftheirknowledge,attitude,useorresponsetoaproduct.vidyarthiplus.comThesedifferencescommononthe


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Benefitsegmentation:Theassumptionunderlyingthebenefitsegmentationisthatmarketscanbedefinedonthebasisofthebenefitsthatpeopleseekfromtheproduct.Althoughresearchindicatesthatmostpeoplewouldliketoreceiveasmanybenefitsaspossiblefromaproduct,ithasalsobeenshownthattherelativeimportancethatpeopleattachtoparticularbenefitsvariessubstantially.Thesedifferencescanthenbesuedtosegmentmarkets.Oncethekeybenefitsforaparticularproduct/marketsituationaredetermined,theanalystmustcompareeachbenefitsegmentwiththerestofthemarkettodeterminewhetherthatsegmenthasuniqueandidentifiabledemographiccharacteristics,consumptionpatterns,ormediahabits.Forexample,themarketfortoothpastecanbesegmentedintermsoffourdistinctproductbenefits;flavourandproductappearance,brightnessofteeth,decaypreventionandprice.Themajoradvantageofbenefitsegmentationisthatitisdesignedtofitthepreciseneedsofthemarket.Ratherthantryingtocreatemarkets,thefirmindentifiesthebenefitorthatprospectivecustomerswantfromtheirpurchasesdesignsproductsandpromotionalstrategiestomeetthoseneeds.Asecondandrelatedadvantageisthatbenefitsegmentationhelpsthefirmavoidcannibalizingitsexistingproductswhenitintroducesnewones.Buyerscanbedividedbasedontheirneeds,topurchaseproductforanoccasion.Thenumberoftimesaproductisusedcouldbealsoconsideredasasegmentationpossibility.Atoothpastemanufacturerurgesthepeopletobrushtheteethtwiceadayforavoidingtoothdecayandfreshness.Eitheracompanycanpositioninsinglebenefitordoublevidyarthiplus.comsetofbenefitsandthenBenefitsegmentation:Theassumptionunderlyingthebenefitsegmentationisthatmarketscanbedefinedonthebasisofthebenefitsthatpeopleseekfromtheproduct.Althoughresearchindicatesthatmostpeoplewouldliketoreceiveasma

nybenefitsaspossiblefromaproduct,ithasalsobeenshownthattherelativeimportancethatpeopleattachtoparticularbenefitsvariessubstantially.Thesedifferencescanthenbesuedtosegmentmarkets.Oncethekeybenefitsforaparticularproduct/marketsituationaredetermined,theanalystmustcompareeachbenefitsegmentwiththerestofthemarkettodeterminewhetherthatsegmenthasuniqueandidentifiabledemographiccharacteristics,consumptionpatterns,ormediahabits.Forexample,themarketfortoothpastecanbesegmentedintermsoffourdistinctproductbenefits;flavourandproductappearance,brightnessofteeth,decaypreventionandprice.Themajoradvantageofbenefitsegmentationisthatitisdesignedtofitthepreciseneedsofthemarket.Ratherthantryingtocreatemarkets,thefirmindentifiesthebenefitorthatprospectivecustomerswantfromtheirpurchasesdesignsproductsandpromotionalstrategiestomeetthoseneeds.Asecondandrelatedadvantageisthatbenefitsegmentationhelpsthefirmavoid

cannibalizingitsexistingproductswhenitintroducesnewones.Buyerscanbedividedbasedontheirneeds,topurchaseproductforanoccasion.Thenumberoftimesaproductisusedcouldbealsoconsideredasasegmentationpossibility.Atoothpastemanufacturerurgesthepeopletobrushtheteethtwiceadayforavoidingtoothdecayandfreshness.Eitheracompanycanpositioninsinglebenefitordoublevidyarthiplus.comsetofbenefitsandthen


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benefitwhichtheproductoffers.Thestatusofthebuyersusingtheproductandthenumberoftimestheyusetheproductcanalsorevealthatbehaviouralpatternsofconsumersvaryonalargescale.vidyarthiplus.combenefitwhichtheproductoffers.Thestatusofthebuyersusingtheproductandthenumberoftimestheyusetheproductcanalsorevealthatbehaviouralpatternsofconsumersvaryonalargescale.vidyarthiplus.comLife-StyleSegmentationLife-stylesegmentationisarelativelynewtechniquethatinvolveslookingatthecustomerasawholepersonratherthanasasetofisolatedparts.Itattemptstoclassifypeopleintosegmentsonthebasisofabroadsetofcriteria.Themostwidelyusedlife-styledimensionsinmarketsegmentationareanindividualsactivities,interests,opinions,anddemographiccharacteristics.Individualsareanalyzedintermsof(i)howtheyspendtheirtime,(ii)whatareasofinteresttheyseeasmostimportant,(iii)theiropinionsonthemselvesandoftheenvironmentaroundthem,and(iv)basicdemographicssuchasincome,socialclassandeducation.Unfortunately,thereisnoonebestwaytosegmentmarkets.Thisfactshascausedagreatdealoffrustrationmarketingexecutiveswhoinsistthatasegmentationvariablethathasproveneffectiveinonemarket/productcontextshouldbeequallyeffectiveinothersituations.Thetruthisthatavariablesuchassocialclassmaydescribethetypesofpeoplewhoshopinparticularstores,butproveuselessindefiningthemarketforaparticularproduct.Therefore,inusingasegmentationcriteriainordertoidentifythosethatwillbemosteffectiveindefiningtheirmarkets.UNDERSTANDINGMARKETINGforsome


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vidyarthiplus.comHerethecompanyoperatesinmostofthesegmentsofthemarketbydesigningseparateprogrammesforeachdifferentsegment.Bajaj,TVS-Suzuki,HeroCyclearethosecompaniesfollowingthisstrategy.Usuallydifferentialtedmarketingcreatersmreosalesthanundifferentiatedmarketing,buttheproductionproductmodificationandadministrativecosts,inventoryandproductpromotionalbudgetsandcostswouldbeveryhigh.Themainaimofthistypeofmarketingisthelargevolumeturnoverforaparticularbrand.Requirementsforeffectivesegmentations1.Measurabilitythedegreetowhichthesizeandpurchasingpowerofthesegmentscanbemeasured.2.Accessibilitythedegreetowhichthesegmentscanbeeffectivelycosts,costs,reachedandserved.3.Substantialitythedegreetowhichthesegmentsarelargeand/orprofitableenough.4.Actionabilitythedegreetowhicheffectiveprogrammescanbeformulatedforattractingandservingthesegments.BENEFITSOFMARKETSEGMENTATIONMarketsegmentationgivesabetterunderstandingofconsumerneeds,behaviourandexpectationstothemarketers.Theinformationgatheredwillbepreciseanddefinite.Ithelpsforformulatingeffectivemarketingmixcapableofattainingobjectives.Themarketerneednotwastehismarketingeffortovertheentirearea.Theproductdevelopmentiscompatiblewithconsumerneeds,pricingmatchesconsumer


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expectationsandpromotionalprogrammesareintunewithconsumerwillingnesstoreceive,assimilateandpositivelyreacttocommunications.Specifically,segmentationanalysishelpsthemarketingmanager.Todesignproductlinesthatareconsistentwiththedemandsofthemarketandthatdonotignoreimportantsegments.Tospotthefirstsignsofmajortrendsinrapidlychangingmarkets.Todirecttheappropriatepromotionalattentionandfundstothemostprofitablemarketsegments.Todeterminetheappealsthatwillbemosteffectivewitheachvidyarthiplus.comexpectationsandpromotionalprogrammesareintunewithconsumerwillingnesstoreceive,assimilateandpositivelyreacttocommunications.Specifically,segmentationanalysishelpsthemarketingmanager.Todesignproductlinesthatareconsistentwiththedemandsofthemarketandthatdonotignoreimportantsegments.Tospotthefirstsignsofmajortrendsinrapidlychangingmarkets.Todirecttheappropriatepromotionalattentionandfundstothemostprofitablemarketsegments.Todeterminetheappealsthatwillbemosteffectivewitheachvidyarthiplus.commarketsegments.Toselecttheadvertisingmediathatbestmatchesthecommunicationpatternsofeachmarketsegment.Tomodifythetimingofadvertisingandotherpromotionaleffortssothattheycoincidewithth

eperiodsofgreatestmarketresponse.Inshort,thestrengthofmarketsegmentationliesinmatchingproductstoconsumerneedsthataugmentconsumersatisfactionandfirmsprofitposition.However,themajorlimitationofmarketsegmentationistheinabilityofafirmtotakecareofallsegmentationbasesandtheirinnumerousvariables.Still,thestrengthsofsegmentationoutweighitslimitsandoffersconsiderableopportunitiesformarketexploitation.marketFEATURESOFCONSUMERMARKETING


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Consumergoodsaredestinedforusebyultimateconsumersorhouse-holdsandinsuchformthattheycanbeusedwithoutcommercialvidyarthiplus.comConsumergoodsaredestinedforusebyultimateconsumersorhouse-holdsandinsuchformthattheycanbeusedwithoutcommercialvidyarthiplus.comprocessing.Consumergoodsandservicesarepurchasedforpersonalconsumption.Consumerbuyersareindividualsandhouseholds.Impulsebuyingiscommoninconsumermarket.Thenumberofconsumerbuyersisrelativelyverylarge.Thenumberoffactorsinfluencingbuyingdecision-makingisrelativelysmall.Decision-makingprocessisinformalandoftensimple.Relationshipmarketingislesssignificant.Technicalspecificationsarelessimportant.Ordersizeisverysmall.Demandforconsumergoodsandservicesaredirectdemand.Manyconsumerpurchasesareinfluencedbyemotionalfactors.Serviceaspectsaregenerallylessimportant.Consumermarketingdependsheavilyonmassmediaadvertising.Salespromotionisverycommon.Directmarketingandpersonalsellingarelessimportant.


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Supplyefficiency,isnotascriticalasinindustrialmarketing.Distributionchannelsaregenerallylengthyandthenumbersofresellersareverylarge.Systemssellingisnotimportant.Thescopeforreciprocityisverylimited.Vendorloyaltyisrelativelylessimportant.Lineextensionsareverycommon.Brandingplaysagreatrole.Packagingalsoplaysapromotionalrole.Consumersaredispersedgeographically.Demandforconsumergoodsispriceelastic.FEATURESOFINDUSTRIALMARKETINGInindustrialmarketing,themarketsisconcernedwiththemarketingofindustrialgoodstoindustrialusers.Theindustrialgoodsarethoseintendedforuseinproducingofothergoodsroerenderingofsomeserviceinbusiness.Theindustrialusersarethoseindividualsandorganizationswhobuytheindustrialgoodsforuseintheirownbusiness.Thesegmentsforindustrialgoodsincludemanufacturing,miningandquarrying,transportation,communication,agriculture,forestry,finance,insurance,realestateetc.vidyarthiplus.comSupplyefficiency,isnotascriticalasinindustrialmarketing.Distributionchannelsaregenerallylengthyandthenumbersofresellersareverylarge.Systemssellingisnotimportant.Thescopeforreciprocityisverylimited.Vendorloyaltyisrelativelylessimportant.

Lineextensionsareverycommon.Brandingplaysagreatrole.Packagingalsoplaysapromotionalrole.Consumersaredispersedgeographically.Demandforconsumergoodsispriceelastic.FEATURESOFINDUSTRIALMARKETINGInindustrialmarketing,themarketsisconcernedwiththemarketingofindustrialgoodstoindustrialusers.Theindustrialgoodsarethoseintendedforuseinproducingofothergoodsroerenderingofsomeserviceinbusiness.Theindustrialusersarethoseindividualsandorganizationswhobuytheindustrialgoodsforuseintheirownbusiness.Thesegmentsforindustrialgoodsincludemanufacturing,miningandquarrying,transportation,communication,agriculture,forestry,finance,insurance,realestateetc.

vidyarthiplus.com


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Industrialgoodsareservicesareboughtforproductionofothervidyarthiplus.comIndustrialgoodsareservicesareboughtforproductionofothervidyarthiplus.comgoodsandservices.Impulsebuyingisalmostabsentinindustrialmarket.Industrialbuyingdecisionsarebasedonrational,economicfactors.Thenumberofbusinessbuyersisrelativelysmall.Thenumberoffactorsinfluencingbuyingdecision-makingisrelativelylarge.Relationshipmarketingismorerelevantandsignificant.Technicalspecificationsaremoreimportant.Ordersizeisoftenverylarge.Serviceaspectsandperformanceguaranteesareveryimportant.DemandforindustrialgoodsandservicesisderiveddemandSpecificmedialiketradejournalsaremoreimportantforindustrialmarketing.Industrialbuyersaremostlyfirmsandotherorganizations.Decision-makingprocesstendstobecomplexandformal.Directmarketingandpersonalsellingarehighlyimportant.Salespromotionisnotcommon.Supplyefficiencyisverycriticalbecausesupplyproblemcanevencausesuspensionoftheentirebusiness.


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Distributionchannelsaregenerallytendtobedirectorshortandthenumberofresellersaresmall.Systemssellingisveryimportant.Thescopeforreciprocityisverylarge.Vendorloyaltytendstobehigh.Lineextensionislimitedbyjustificationofclearbenefittothebuyer.Conformitytoproductspecificationsandreputationofthemanufacturersupplieraremoreimportant.Packaginghardlyhasapromotionalrole.Businessbuyersinmanycasesaregeographicallyconcentrated.Pricesensitivityofdemandforindustrialgoodsislow.FEATURESOFSERVICESMARKETINGServicemarketisrepresentedbyactivities,benefitsandsatisfactionsofferedforsalebyprovidersofservices.Theseservicesmaybelabourservices,personalservices,professionalorinstitutionalservices.Thepeculiarcharacteristicsofservicescreatechallengesandopportunitiestotheservicemarkets.Thesearegivenvidyarthiplus.comservicesDistributionchannelsaregenerallytendtobedirectorshortandthenumberofresellersaresmall.Systemssellingisveryimportant.Thescopeforreciprocityisverylarge.Vendorloyaltytendstobehigh.Lineextensionislimitedbyjustificationofclearbenefittothebuyer.Conformitytoproductspecificationsandreputationofthemanufacturersupplieraremoreimportant.

Packaginghardlyhasapromotionalrole.Businessbuyersinmanycasesaregeographicallyconcentrated.Pricesensitivityofdemandforindustrialgoodsislow.FEATURESOFSERVICESMARKETINGServicemarketisrepresentedbyactivities,benefitsandsatisfactionsofferedforsalebyprovidersofservices.Theseservicesmaybelabourservices,personalservices,professionalorinstitutionalservices.Thepeculiarcharacteristicsofservicescreatechallengesandopportunitiestotheservicemarkets.Thesearegivenvidyarthiplus.comservicesbelow:INTANGIBILITY


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Servicesareessentiallyintangible.Becauseservicesareperformanceoractionsratherthanobjects,theycannotbeseen,felt,tasted,ortouchedinthesamemannerthatwecanseesensetangiblegoods.Forexample,health-careservicesareactionssurgery,diagnosis,examinations,treatment)performedbyprovidersanddirectedtowardpatientsandtheirfamilies.Theseservicescannotactuallybeseenortouchedbythepatientmaybeabletoseenandtouchcertaintangible,componentsoftheservices(e.g.equipment,hospitalroom).Infact,manyservicessuchashealthcarearedifficultfortheconsumertograspevenmentally.Evenafteradiagnosisorsurgeryhasbeencompletedthepatientmaynotfullycomprehendtheserviceperformed.vidyarthiplus.com(e.g.Servicesareessentiallyintangible.Becauseservicesareperformanceoractionsratherthanobjects,theycannotbeseen,felt,tasted,ortouchedinthesamemannerthatwecanseesensetangiblegoods.Forexample,health-careservicesareactionssurgery,diagnosis,examinations,treatment)performedbyprovidersanddirectedtowardpatientsandtheirfamilies.Theseservicescannotactuallybeseenortouchedbythepatientmaybeabletoseenandtouchcertaintangible,componentsoftheservices(e.g.equipment,hospitalroom).Infact,manyservicessuchashealthcarearedifficultfortheconsumertograspevenmentally.Evenafteradiagnosisorsurgeryhasbeencompletedthepatientmaynotfullycomprehendtheserviceperformed.vidyarthiplus.com(e.g.INSEPARABILITYServicesarecreatedandconsumedsimultaneouslyandgenerallytheycannotb

eseparatedfromtheprovideroftheservice.Thustheserviceprovidercustomerinteractionisaspecialfeatureofservicesmarketing.Unlikethetangiblegoods,servicescannotbedistributedusingconventionalchannels.Inseparabilitymakesdirectsalestheonlypossiblechannelofdistributionandthusdelimitsthemarketsforthesellersservices.Thischaracteristicsalsolimitsthescaleofoperationoftheserviceprovider.Forexample,adoctorcangivetreatmenttolimitednumberofpatientsonlyinaday.Thischaracteristicalsoemphasizestheimportanceofthequalityofproviderclientinteractioninservices.Thisposesanothermanagementaschallengetotheservicemarketer.Whileaconsumerssatisfaction


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dependsonthefunctionalaspectsinthepurchaseofgoods,inthecaseofservicestheabovementionedinteractionplaysanimportantroleindeterminingthequalityofservicesandcustomersatisfaction.Forexample,anairlinecompanymayprovideexcellentflightservice,butadiscourteousonboardstaffmaykeepoffthecustomerpermanentlyfromvidyarthiplus.comdependsonthefunctionalaspectsinthepurchaseofgoods,inthecaseofservicestheabovementionedinteractionplaysanimportantroleindeterminingthequalityofservicesandcustomersatisfaction.Forexample,anairlinecompanymayprovideexcellentflightservice,butadiscourteousonboardstaffmaykeepoffthecustomerpermanentlyfromvidyarthiplus.comthatcompany.Thereareexemptionsalsototheinseparabilitycharacteristic.Atelevisioncoverage,travelagencyorstockbrokermayrepresentandhelpmarketingtheserviceprovidedbyanotherservicefirm.HETEROGENEITYThischaracteristicisreferredtoasvariabilitybyKotler.Wehavealreadyseenthatservicescannotbestandardized.arehighlyvariabledependingupontheproviderandthetimeandplacewheretheyareprovided.Aserviceprovidedonotheroccasions.Alsothestandardofqualityperceivedbydifferentconsumersmaydifferaccordingtotheorderofpreferencegivenbythemtothevariousattributeofserviceactuality.Forexample,thetreatmentsgivenbyahospitaltodifferentpersonsondifferentoccasioncannotbeofthesamequality.Consumersofservicesareawareofthisvariabilityandbytheirinteractionwithotherconsumerstheyalsoessenefluncedorinfluenceothersintheselectionofserviceprovider.TheyPERISHABILITYANDFLUCTUATINGDEMANDPerisbabilatyreferstothefactthatservicescannotb

esaved,stored,resoldorreturned.Aseatonanairplaneorinarestaurant,anhouroralawyerstime,ortelephonelinecapacitynotusedcannotbe


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reclaimedandusedorresoldatlatertime.Thisisincontracttogoodsthatcanbestoredininventoryorresoldanotherday,orevenreturnediftheconsumerisunhappy.vidyarthiplus.comreclaimedandusedorresoldatlatertime.Thisisincontracttogoodsthatcanbestoredininventoryorresoldanotherday,orevenreturnediftheconsumerisunhappy.vidyarthiplus.comTARGETMARKETINGmarketsegmentsanddevelopingproductsandmarketingmixessuitedtoeachsegments.TargetmarketingreferstoselectionofoneormoreofmanySTEPSINTARGETMARKETING1.DefinetherelevantmarketThemarkethastobedefinedintermsofproductcategory,theproductformandthespecificbrand.2.geographiclocation,demographics,psychographicsproductrelatedvariable.3.IdentifybasesforsegmentingthemarketFromtheprofilesavailableidentifythosehasstrengthadequatetoasegmentandreflectionthewantstokjdfgkjsdfgjsdkgjsfdkgjsf4.DefineanddescribemarketsegmentsAsanyonebasis,sayincomeismeaninglessbyitself,acombinationofvariousbaseshastobearrivedassuchthateachsegmentisTargetmarketingessentiallyconsistofthefollowingsteps:AnalyzecharacteristicsandwantsofpotentialcustomersThecustomerswantsandneedsaretobeanalyzedintermsofand


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distinctlydifferentfromothersegmentsinbuyingbehaviourandvidyarthiplus.comdistinctlydifferentfromothersegmentsinbuyingbehaviourandvidyarthiplus.comwants.5.AnalyzecompetitorspositionsInsuchsegmentgdfkgjxfkgnfdkgdxngmdfgkdfjgkdfjdfkjgdfkbytheconsumersaretofoundourkjgfksjdfgdsfgsconsumersandthelist6.Evaluatemarketsegmentspotentialandcostofthemarketingeffort.Theinvolvesestimatingthedemandfortheproductwhilethelatterisanestimateofcostsinvolvedinreachingeachsegment.7.SelectthemarketsegmentChoosingdfkjgdfkjgfdtheavailablesegmentsinthemarketonehastobearinmindtheksdfjgksjgkjdandresources,thepresenceorabsenceofcompetitorsinthesdkjgksjdfandthecapacityofthegrowinsize.ofattributeswhichtheyconsiderimportantisdetermined.Themarketsegmentshavetobeevaluatedintermsofrevenueformer8.FinalisethemarketingmixThisinvolvesdecisionsonproduct,distribution,promotionsandprice.Productdecisionswillgkjsdfintoaccountproductattributedfdgkdjfwantedbyconsumers,choiceofappropriatebrandnameandimagewillhelpinpromotingtheproducttothechosensegmentandpricingcanbedonekeepingthepurchasebehaviourinmind.


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Hence,itcanbeseenthattargetedmarketingconsistsofsegmentingthemarket,choosingwhichsegmentstoserveanddesigningthemarketingmixinsuchawaythatitisattractivetothechosensegments.Thethirdsteptakesintoaccounttheuniquenessofacompanysmarketingmixinarelationtothatofcompetitors.Theuniquenessordifferentiationmaybetangibleorintangibledependinguponthephysicalattributesorthepsychologicalattributesoftheproduct.Establishingandcommunicatingthesedistinctiveaspectsisvidyarthiplus.comHence,itcanbeseenthattargetedmarketingconsistsofsegmentingthemarket,choosingwhichsegmentstoserveanddesigningthemarketingmixinsuchawaythatitisattractivetothechosensegments.Thethirdsteptakesintoaccounttheuniquenessofacompanysmarketingmixinarelationtothatofcompetitors.Theuniquenessordifferentiationmaybetangibleorintangibledependinguponthephysicalattributesorthepsychologicalattributesoftheproduct.Establishingandcommunicatingthesedistinctiveaspectsisvidyarthiplus.comtermedpositioning.MARKETINGMIXMarketingmixisoneofthemajorconceptsinmodernmarketing.Itisthecombinationofvariouselementswhichthecompanysmarketingsystem.Itissetofcontrollablemarketingvariablesthatthefirmblendstoproducetheresponseitwantsinthetargetmarket.Thoughtherearemanybasicmarketingvariables,itisMcCarthy,whopopularizedafour-factorclassificationcalledthefourPs:Product,Price,PlaceandPromotion.EachPconsistsofalistofparticularmarketingvariables.ThefirstPProductconsistsof(i)Productplanninganddevelopment;(ii)Productmixpoliciesandstrategies;and(iii)Brandingandpackagingstrategies.constitutes


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ThesecondPPriceconsistsof(i)Pricingpoliciesandobjectives;and(ii)Methodsofsettingprices.ThethirdPPlaceconsistsof(i)Differenttypesofmarketingchannels;(ii)Retailingandwholesalinginstitutions;and(iii)Managementofphysicaldistributionsystems.ThefourthPPromotionconsistsofvidyarthiplus.comThesecondPPriceconsistsof(i)Pricingpoliciesandobjectives;and(ii)Methodsofsettingprices.ThethirdPPlaceconsistsof(i)Differenttypesofmarketingchannels;(ii)Retailingandwholesalinginstitutions;and(iii)Managementofphysicaldistributionsystems.ThefourthPPromotionconsistsofvidyarthiplus.com(i)(ii)(iii)Advertising;Salespromotion;andPersonalselling.AdetaileddiscussiononeachoftheabovefourPsfollowsnow:PRODUCTProductstandsforvariousactivitiesofthecompanysuchasplanninganddevelopingtherightproductand/orservices,changingtheexistingproducts,addingnewonesandtakingotheractionsthataffecttheassortmentsofproducts.DecisionsarealsorequiredintheareasAproductissomethingthatmustbecapableofsatisfyinganeedorwant,itincludesphysicalob

jects,services,personalitiesplaces,organisationandideas.Thus,atransportservice,asitsatisfiershumansuchasquality,features,styles,brandnameandpackaging.


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needisaproduct.Similarly,placeslikeKashmirandKodaikanal,astheyThesecondaspectofproductisproductplanninganddevelopment.Productplanningembracesallactivitiesthatdetermineacompanyslikevidyarthiplus.comsatisfyneedtoenjoythecoolclimatearealsoproducts.needisaproduct.Similarly,placeslikeKashmirandKodaikanal,astheyThesecondaspectofproductisproductplanninganddevelopment.Productplanningembracesallactivitiesthatdetermineacompanyslikevidyarthiplus.comsatisfyneedtoenjoythecoolclimatearealsoproducts.ofproducts.Itinclude-a)Planninganddevelopinganewproduct;b)Modificationofexistingproductlines;andc)Eliminationofunprofitableitems.Productdevelopmentencompassesthetechnicalactivitiesofproductresearch,engineeringanddecision.Thethirdaspectofproductisproductmixpoliciesandstrategies.Productmixreferstothecompositeofproductsofferedforsalebyacompany.ForexampleGodrejcompanyofferscosmetics,steelfurnitures,officeequipments,locksetc.withmanyitemsineachcategory.Theproductmixisfourdimensional.Ithasbreadth,length,depthandconsistency.Yetanotherintegralpartofproductispackaging.PRICEThesecondelementofmarketingmixisprice.Pricestandsforthemonetaryvaluethatcustomerspaytoobtaintheproduct.Inpricing,thecompanymustdeterminetherightpriceforitsproductsandthendecide


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onstrategiesconcerningretailandwholesalediscounts,allowancesandcreditterms.Beforefixingpricesfortheproduct,thecompanyshouldbeclearaboutitspricingobjectivesandstrategies.Theobjectivesmaybesetlowinitialpriceandraisingitgraduallyorosethighinitialpriceandreducingitgraduallyorfixingatargetrateofreturnorsettingpricestomeetthecompetitionetc.ButtheactualpricesettingisbasedonthreefactorsRegardingretailpricing,thecompanymayadopttwopolicies.Onepolicyisthathemayallowtheretailerstofixwithoutprices,interferinginhisright.Anotherpolicyisthathemaywanttoexercisecontrolovertheproducts.Discountsandallowancesresultinadeductionvidyarthiplus.comnamelycostofproduction,levelofdemandandcompetition.anypriceonstrategiesconcerningretailandwholesalediscounts,allowancesandcreditterms.Beforefixingpricesfortheproduct,thecompanyshouldbeclearaboutitspricingobjectivesandstrategies.Theobjectivesmaybesetlowinitialpriceandraisingitgraduallyorosethighinitialpriceandreducingitgraduallyorfixingatargetrateofreturnorsettingpricestomeetthecompetitionetc.ButtheactualpricesettingisbasedonthreefactorsRegardingretailpricing,thecompanymayadopttwopolicies.Onepolicyisthathemayallowtheretailerstofixwithoutprices,interferinginhisright.Anotherpolicyisthathemaywanttoexercisecontrolovertheproducts.Discountsandallowancesresultinadeductionvidyarthiplus.comnamelycostofproduction,levelofdemandandcompetition.anyprice

fromthebaseprice.PLACEThethirdelementofmarketingmixisplaceorphysicaldistribution.Placestandsforthevariousactivitiesundertakenbythecompanytomaketheproductaccessibleandavailabletotargetcustomers.Therearefourdifferentlevelchannelsofdistribution.Thefirstiszero-levelchannelwhichmeansmanufacturedirectlysellingthegoodstotheconsumers.Thesecondisone-levelchannelwhichmeanssupplyingthegoodstotheconsumerthroughtheretailer.Thethirdistwo-levelchannelwhichmeanssupplyingthegoodstotheconsumerthroughwholesalerandretailer.Thefourthisthree-levelchannelwhichmeanssupplying


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goodstotheconsumersthroughwholesaler-jobber-retailerandconsumer.Therearelarge-scaleinstitutionssuchasdepartmentalstores,andsmall-scaleretailinstitutionssuchassmallretailshop,vending,franchisingetc.Thecompanymustchosetodistributetheirproductsthroughanyoftheaboveretailinginstitutionsdependinguponthenatureoftheproducts,areaofthemarket,volumeofscaleandcostinvolved.Theactualoperationofphysicaldistributionsystemrequiredcompanysattentionanddecision-makingintheareasofinventory,locationofwarehousing,materialshandling,orderprocessingandvidyarthiplus.comchainstores,mailorderbusiness,super-marketetc.automaticgoodstotheconsumersthroughwholesaler-jobber-retailerandconsumer.Therearelarge-scaleinstitutionssuchasdepartmentalstores,andsmall-scaleretailinstitutionssuchassmallretailshop,vending,franchisingetc.Thecompanymustchosetodistributetheirproductsthroughanyoftheaboveretailinginstitutionsdependinguponthenatureoftheproducts,areaofthemarket,volumeofscaleandcostinvolved.Theactualoperationofphysicaldistributionsystemrequiredcompanysattentionanddecision-makingintheareasofinventory,locationofwarehousing,materialshandling,orderprocessingandvidyarthiplus.comchainstores,mailorderbusiness,super-marketetc.automatictransportation.PROMOTION

Thefourthelementofthemarketingmixispromotion.Promotionstandsforthevariousactivitiesundertakentocommunicatethemeritsofitsproductsandtopersuadetargetcustomerstobuythem.Advertising,salespromotionandpersonalsellingarethemajorpromotionalactivities.Aperfectcoordinationamongthesethreeactivitiescansecuremaximumeffectivenessofpromotionalstrategy.Forsuccessfulmarketing,themarketingmanagerahstodevelopabestmarketingmixforhisproduct.REVIEWQUESTIONS:1.Whatismarketsegmentation?Whatareitsbases?bythecompany


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2.Whatarethebenefitsofmarketsegmentation?3.Definemarketingmix.Brieflyexplaindifferentelementsofmarketingmix.vidyarthiplus.comWhatarethebenefitsofmarketsegmentation?3.Definemarketingmix.Brieflyexplaindifferentelementsofmarketingmix.vidyarthiplus.com


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vidyarthiplus.comLESSON4MARKETINGENVIRONMENTLearningObjectivesAfterreadingthislesson,youshouldbeabletounderstandThevariousmicroenvironmentalfactorsthataffectthemarketingsystem;Thevariousmacroenvironmentalforcesthataffectthesystem;andOneofthemajorresponsibilitiesofmarketingexecutivesistomonitorandsearchtheenvironmentwhichisconstantlyspinningoutnewopportunities.Themarketingenvironmentalsospinsoutnewthreatssuchasfinancial,economicpoliticalandenergycrisisandfirmsfindtheirmarketscollapsing.Recenttimeshavebeenmarkedbysuddenchangesinthemarketingenvironment,leadingDruckertodubitanAgeofDiscontinuityandTofflertodescribeitasatimeofFeatureShock.Companymarketersneedtoconstantlymonitorthechangingenvironmentmorecloselysothattheywillbeabletoaltertheirmarketingstrategiestomeetnewchallengesandopportunitiesintheenvironment.Thestrategiestobeadoptedbythemarketingexecutivesonthefaceofchallengesposedbytheseenvironmentalforces.


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ThemarketingenvironmentcomprisesthenoncontrollableactorsandforcesinresponsetowhichorganizationsdesigntheirmarketingstrategiesSpecifically,andforcesexternaltothemarketingmanagementfunctionofthefirmthatimpingeonthemarketingmanagementsabilitytodevelopandmaintainsuccessfultransactionswithitstargetcustomers.Thecompanysmarketingenvironmentconsistsofmicroenvironmentandmacroenvironment.Themicroenvironmentconsistsoftheactorsinthecompanysimmediateenvironmentthataffectsitsabilitytoservethemarkets:thecompany,suppliers,marketintermediaries,customers,competitorsandpublics.Themacroenvironmentconsistsofthelargersocietalforcesthataffectalloftheactorsinthecompanysmicroenvironmentthedemographic,economic,physical,technological,political,legalandsocio-culturalforces.vidyarthiplus.comAcompanysmarketingenvironmentconsistsoftheactorsThemarketingenvironmentcomprisesthenoncontrollableactorsandforcesinresponsetowhichorganizationsdesigntheirmarketingstrategiesSpecifically,andforcesexternaltothemarketingmanagementfunctionofthefirmthatimpingeonthemarketingmanagementsabilitytodevelopandmaintainsuccessfultransactionswithitstargetcustomers.Thecompanysmarketingenvironmentconsistsofmicroenvironmentandmacroenvironment.Themicroenvironmentconsistsoftheactorsinthecompanysimmediateenvironmentthataffectsitsabilitytoservethemarkets:thecompany,suppliers,marketintermediaries,customers,competitorsandpublics.Themacroenvironmentconsistsofthelargersocietalforcesthataffectalloftheactorsinthecompanysmicroenvironmentthe

demographic,economic,physical,technological,political,legalandsocio-culturalforces.vidyarthiplus.comAcompanysmarketingenvironmentconsistsoftheactorsACTORSINTHECOMPANYSMICROENVIRONMENTEverycompanysprimarygoalistoserveandsatisfyaspecifiedsetofneedsofachosentargetmarket.Tocarryoutthistask,thecompanylinksitselfwithasetofsuppliersandasetofmarketingintermediariestoreachitstargetcustomers.Thesupplierscompanymarketing


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intermediariescustomerschaincomprisesthecoremarketingsystemofthecompany.ThecompanyssuccesswillbeaffectedbytwoadditionalCompanymanagementhastowatchandplanforallthesefactors.SUPPLIERSSuppliersarebusinessfirmswhoprovidetheneededresourcetothecompanyanditscompetitorstoproducetheparticulargoodsandservices.ForexampleBakeryDesottamustobtainwheat,cellophanepaperandothermaterialstoproduceandpackageitsbreads.Labour,equipment,fuelelectreicityandotherfactorsofproductionarealsotobeobtained.Nowthecompanymustdecidewhethertopurchaseormakeitsown.Whenthecompanydecidestobuysomeoftheinputs,itmustmakecertainspecificationcallfortenderetc.andthenitsegregatesthelistofsuppliers.Usuallycompanychoosethesupplierswhoofferthebestmixofquality,deliveryschedulecredit,guaranteeandlowcost.Anysuddenchangeinthesuppliersenvironmentwillhaveasubstanceimpactonthecompanysmarketingoperations.Sometimessomeoftheinputstothecompanymightcostmoreandhencemanagershavecontinuouslymonitoredthefluctuationsinsuppliersside.Marketingmanagerisequallyconcernedwithsupplyavailability.Suddensupplyshortagelabourstrikesandothereventscaninterferewiththefulfillmentofdeliverypromisecustomersandlosesalesintheshortrunanddamagecustomergoodwillinlongrun.Hencemanycompaniesprefertobuyfrommultiplesourcestoavoidoverdependenceonanyonesupplier.Sometimesevenfortheappendageservicestomarketinglikemarketingresearch,advertising,salestrainingetc.thecompanyusevidyarthiplus.comgroupsnamely,asetofcompetitorsandasetofpublics.sugar,

theintermediariescustomerschaincomprisesthecoremarketingsystemofthecompany.ThecompanyssuccesswillbeaffectedbytwoadditionalCompanymanagementhastowatchandplanforallthesefactors.SUPPLIERSSuppliersarebusinessfirmswhoprovidetheneededresourcetothecompanyanditscompetitorstoproducetheparticulargoodsandservices.ForexampleBakeryDesottamustobtainwheat,cellophanepaperandothermaterialstoproduceandpackageitsbreads.Labour,equipment,fuelelectreicityandotherfactorsofproductionarealsotobeobtained.Nowthecompanymustdecidewhethertopurchaseormakeitsown.Whenthecompanydecidestobuysomeoftheinputs,itmustmakecertainspecificationcallfortenderetc.andthenitsegregatesthelistofsuppliers.Usuallycompanychoosethesupplierswhoofferthebestmixofquality,deliveryschedulecredit,guaranteeandlowcost.Anysuddenchangeinthesuppliersenvironmentwillhaveasubstanceimpactonthecompanysmarket

ingoperations.Sometimessomeoftheinputstothecompanymightcostmoreandhencemanagershavecontinuouslymonitoredthefluctuationsinsuppliersside.Marketingmanagerisequallyconcernedwithsupplyavailability.Suddensupplyshortagelabourstrikesandothereventscaninterferewiththefulfillmentofdeliverypromisecustomersandlosesalesintheshortrunanddamagecustomergoodwillinlongrun.Hencemanycompaniesprefertobuyfrommultiplesourcestoavoidoverdependenceonanyonesupplier.Sometimesevenfortheappendageservicestomarketinglikemarketingresearch,advertising,salestrainingetc.thecompanyusevidyarthiplus.comgroupsnamely,asetofcompetitorsandasetofpublics.sugar,the


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servicefromoutside.Thisdependencymayalsocreatesomebottlenecks,attimes,duetothebehaviouroftheseagenciesandconsequentlyaffectthemarketingoperationsofthecompany.COMPANYMarketingmanagementatanyorganisation,whileformulatingmarketingplanshavetotakeintoconsiderationothergroupsinthecompany,suchastopmanagement,finance,R&D,purchasing,manufacturingandaccounting.Financedepartmenthastobeconsultedforthefundsavailableforcarryingoutthemarketingplanapartfromothers.R&Dhastobecontinuouslydoingnewproductdevelopment.Manufacturinghastobecoordinatedbasedonthemarketdemandandsupplyoftheproducts.Accordinghastomeasurerevenuesandcoststohelpmarketinginachievingitsobjectives.Usuallymarketingdepartmenthastofacethebottlenecksputupbythesisterdepartmentswhiledesigningandimplementingtheirmarketingplans.MARKETINGINTERMEDIARIESChannelmembersarethevanguardofthemarketingimplementationpart.Theyarethepeoplewhoconnectthecompanywiththecustomers.Therearenumberofmiddlemenwhooperateinthiscycle.Agentmiddlemenlikebrokersandagentsfindcustomersandestablishcontacts,merchantmiddlemenarethewholesalers,retailers,whotaketitletoandresellthemerchandise.Apartfromthesechannelmembers,therearephysicaldistributionfirmswhoassistinstockingandmovinggoodsfromtheoriginallocationstotheirdestinations.Warehousefirmsvidyarthiplus.comservicefromoutside.Thisdependencymayalsocreatesomebottlenecks,attimes,duetothebehaviouroftheseagenciesandconsequentlyaffectthemarketingoperati

onsofthecompany.COMPANYMarketingmanagementatanyorganisation,whileformulatingmarketingplanshavetotakeintoconsiderationothergroupsinthecompany,suchastopmanagement,finance,R&D,purchasing,manufacturingandaccounting.Financedepartmenthastobeconsultedforthefundsavailableforcarryingoutthemarketingplanapartfromothers.R&Dhastobecontinuouslydoingnewproductdevelopment.Manufacturinghastobecoordinatedbasedonthemarketdemandandsupplyoftheproducts.Accordinghastomeasurerevenuesandcoststohelpmarketinginachievingitsobjectives.Usuallymarketingdepartmenthastofacethebottlenecksputupbythesisterdepartmentswhiledesigningandimplementingtheirmarketingplans.MARKETINGINTERMEDIARIESChannelmembersarethevanguardofthemarketingimplementationpart.Theyarethepeoplewhoconnectthecompanywiththecustomers.Therearenumberofmiddlem

enwhooperateinthiscycle.Agentmiddlemenlikebrokersandagentsfindcustomersandestablishcontacts,merchantmiddlemenarethewholesalers,retailers,whotaketitletoandresellthemerchandise.Apartfromthesechannelmembers,therearephysicaldistributionfirmswhoassistinstockingandmovinggoodsfromtheoriginallocationstotheirdestinations.Warehousefirmsvidyarthiplus.com


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storeandprotectgoodsbeforetheymovetothenextdestinations.Therearenumberoftransportingfirmsconsistsofrail,road,truckers,ship,airlineetc.thatmovergoodsfromonelocationEverycompanyhastodecideonthemostcosteffectivemeansoftransportTherearefinancialintermediarieslikebanks,insurancecompanies,thecompanybyprovidingfinanceinsurancecoveretc.Thebehaviourandperformanceofalltheseintermediarieswillaffectthemarketingoperationsofthecompanyandthemarketingexecutiveshavetoprudentlydealwiththem.vidyarthiplus.comtoanother.consideringthecosts,delivery,safetyandspeed.whosupportstoreandprotectgoodsbeforetheymovetothenextdestinations.Therearenumberoftransportingfirmsconsistsofrail,road,truckers,ship,airlineetc.thatmovergoodsfromonelocationEverycompanyhastodecideonthemostcosteffectivemeansoftransportTherearefinancialintermediarieslikebanks,insurancecompanies,thecompanybyprovidingfinanceinsurancecoveretc.Thebehaviourandperformanceofalltheseintermediarieswillaffectthemarketingoperationsofthecompanyandthemarketingexecutiveshavetoprudentlydealwiththem.vidyarthiplus.comtoanother.consideringthecosts,delivery,safetyandspeed.whosupportCOMPETITORSIfonecompanyplansamarketingstrategyatoneside,therearenumberofothercompaniesinthesameindustrydoingsuchothercalculations.CokehascompetitorsinPepsi.MarutihascompetitionsfromTataIndica,Santroetc.Notonlythatthecompetitioncomesfromthebrandedsegmentbutalsofromthegenericmarket,wherethereareonlyfewbrandedproductsofri

cebuttherearenumerousgenericvarietyofriceaccordingtothelocaltastesineachcountry.AirlineshavetoovercomecompetitionsnotonlyfromtheotherAirlinesbutalsofromRailwaysandShips.Basicallyeverycompanythecompetitor,monitortheiractivitiesandcapturetheirmovesandmaintaincustomerloyalty.Henceeverycompanycomesoutwiththeirownmarketingstrategies.regiontheSometimescompetitioncomesfromdifferentforms.hastoidentify


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vidyarthiplus.comPUBLICSApubliccanfacilitateorseriouslyaffectthefunctioningofthecompany,PhilipKotlerdefinespublicasanygroupthathasanactualorpotentialinterestorimpactonacompanysabilityachieveitsobjectives.Kotlernotesthattherearedifferentofpublics,Governmentpublics,citizenactionpublics,localpublics,generalpublicandinternalpublics.Since,thesuc

marketing-management-full-notes-mba-anirudh_2.txt

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