MARKRTING MANAGEMENT

1.Difference Between Product Marketing and Service Marketing

products and services involves different strategies due to the dissimilarities in their
characteristics. While in product marketing, the aim is to fulfil the needs and wants of the
target population. As against, in service marketing, the firm seeks to create a good
relationship with the customer, to win their trust.

Definition of Product Marketing

The entire process, right from the market analysis, to delivering product to the customer and receiving
feedback, is called product marketing. The process is aimed at finding out the right market for its product
and its placement in such a way that it gets good customer response. It entails promotion and sale of a
product to its target audience, i.e. prospective and existing buyers.

Various activities involved in the product marketing involves analysis of the market, identification of
consumer demand, designing and development of product, pricing, pitching of a new product,
communicating, advertising, positioning, distributing, selling, review and feedback.

Example: Marketing for tangible objects like books, handbags, laptops, mobiles, clothes and
so on.
Definition of Service Marketing

When a person or business entity promotes services it offers to its customers or clients, it is known as
service marketing. It is aimed at providing solutions to the problems or difficulties of the clients. It
includes both business-to-business (B2B) and business-to-consumer (B2C) marketing.

A service is an act of performing something for someone in exchange for adequate consideration. It is
intangible, consumed at the time of its production, can’t be inventoried and resold. Each service offering is
unique in itself because it cannot be repeated exactly alike, even if the service is rendered by the same
person.

Example: Marketing of professional services, beauty parlours or salon, spa, coaching centres, health
services, telecommunication, etc.

Comparison Chart
BASIS FOR
PRODUCT MARKETING SERVICE MARKETING
COMPARISON

Meaning Product marketing refers to the Service marketing implies the marketing of economic activities, offered by
process in which the marketing the business to its clients for adequate consideration.
activities are aligned to
promote and sell a specific
product for a particular
segment.
 BASIS FOR
PRODUCT MARKETING SERVICE MARKETING
COMPARISON

Marketing mix 4 P's 7 P's

Sells Value Relationship

Who comes to Products come to customers. Customers come to service.

whom?

Transfer It can be owned and resold to It is neither owned nor transferred to another party.
another party.

Returnability Products can be returned. Services cannot be returned after they are rendered.

Tangibility They are tangible, so customer They are intangible, so it is difficult to promote services.
can see and touch it, before
coming to the buying decision.

Separability Product and the company Service cannot be separated from its provider.
producing it, are separable.

Customization Products cannot be customized Services vary from person to person, they can be customized.
as per requirements.

Imagery They are imagery and hence, They are non-imagery and do not receive quick response from customers.
receive quick response from
customers.

Quality Quality of a product can be Quality of service is not measurable.

comparison easily measured.

Key Differences Between Product Marketing and Service

Marketing
In the points given below, the differences between product marketing and service
marketing is elaborated:

1. The process in which the marketing activities are aligned to promote and sell a specific product for
a particular segment is called product marketing. The marketing of economic activities, offered by
the business to its clients for adequate consideration, is known as service marketing.
2. In a product marketing, only 4 P’s of the marketing mix are applicable which are product, price,
place and promotion, but in the case of service marketing, three more P’s are added to the
conventional marketing mix, which are people, process and physical existence.
3. When a product is marketed, the company offers value, as it fulfils customer’s requirements.
Conversely, when service is marketed by a company, it offers a relationship to its clients.
 4. One thing to be noted that, in product marketing, the company promotes something whose
ownership can be transferred/resold to another party. But in the case of service marketing, the
company promotes something, whose ownership can neither be transferred nor it is resold to the
other party.
5. In product marketing, products reach the buyers, as they can be transported from one place to
another through various distribution channels. Unlike service marketing, where customers come to
the services or the service provider visit customer because services cannot be transported, they are
location based.
6. Products are tangible in nature, they can be felt and touched, which make its promotion easier. On
the other hand, services are intangible, people can only experience it, and so marketing of services
is a bit difficult.
7. If the quality of a certain product is not up to the mark, or it does not fulfil the desired
requirement, it can be returned to the seller. However, it is impossible in the case of services,
because once the services are delivered, they cannot be taken back. So, the marketing of services,
should be done keeping the returnability factor in mind.
8. In product marketing, the product can be separated from its producer, and so they are durable and
can be inventoried. On the contrary, in service marketing, services can not be separated from its
source, i.e. service provider. Hence the production and consumption of services are simultaneous;
they are perishable.
9. Product offered by a company under a particular segment are standardised; they cannot be
changed or altered as per customer’s requirement. In contrast, services offered by a company are
highly variable and can be easily customised as per the requirements.
10. It is a human tendency, that we respond quickly, to what we see and it is a major pro, of product
marketing that it grabs our attention, and encourages sales. As against this, services can’t be seen it
can only be experienced and so the response it a little slow, while marketing services.
11. In product marketing, the quality of the product can be measured by making a comparison
between various products, but this is just opposite in service marketing, where the measurement of
services is not possible.

Conclusion
Whether, it’s a product marketing or a service marketing, the task is equally onerous.
However, with the former, there are some advantages such as tangibility, separability,
durability, transferability, etc. which the latter lacks, making it a bit difficult.
Demonstration of product or service is one of the best ways to promote it. Further, word of
mouth also helps in marketing them.

2. Marketing Strategies – Stages of Product Life Cycle

Introduction:
Product passes through four stages of its life cycle. Every stage poses different opportunities and
challenges to the marketer. Each of stages demands the unique or distinguished set of marketing
strategies. A marketer should watch on its sales and market situations to identify the stage in
which the product is passing through, and accordingly, he should design appropriate marketing
strategies. Here, strategy basically involves four elements – product, price, promotion, and
distribution.
Marketing Strategies for Introduction Stage:
Introduction stage is marked with slow growth in sales and a very little or no profit. Note
that product has been newly introduced, and a sales volume is limited; product and distribution
are not given more emphasis. Basic constituents of marketing strategies for the stage include
price and promotion. Price, promotion or both may be kept high or low depending upon market
situation and management approach
 Following are the possible strategies during the first stage:
1. Rapid Skimming Strategy:
This strategy consists of introducing a new product at high price and high promotional
expenses. The purpose of high price is to recover profit per unit as much as possible. The high
promotional expenses are aimed at convincing the market the product merits even at a high price.
High promotion accelerates the rate of market penetration, in all; the strategy is preferred to skim
the cream (high profits) from market.
This strategy makes a sense in following assumptions:
(a) Major part of market is not aware of the product.
(b) Customers are ready to pay the asking price.
(c) There possibility of competition and the firm wants to build up the brand preference.
(d) Market is limited in size.

2. Slow Skimming Strategy:

This strategy involves launching a product at a high price and low promotion. The purpose of high
price is to recover as much as gross profit as possible. And, low promotion keeps marketing
expenses low. This combination enables to skim the maximum profit from the market.

This strategy can be used under following assumptions:

(a) Market is limited in size.
(b) Most of consumers are aware of product.
(c) Consumers are ready to pay high price.
(d) There is less possibility of competition.
3. Rapid Penetration:
The strategy consists of launching the product at a low price and high promotion. The purpose is
the faster market penetration to get larger market share. Marketer tries to expand market by
increasing the number of buyers.
It is based on following assumptions:
(a) Market is large.
(b) Most buyers are price-sensitive. They prefer the low-priced products.
(c) There is strong potential for competition.
(d) Market is not much aware of the product. They need to be informed and convinced.
(e) Per unit cost can be reduced due to more production, and possibly more profits at low
price.

4. Slow Penetration:
The strategy consists of introducing a product with low price and low-level promotion. Low price
will encourage product acceptance, and low promotion can help realization of more profits, even
at a low price.
Assumptions of this strategy:
(a) Market is large. (b) Market is aware of product. (c) Possibility of competition is low.
(d) Buyers are price-sensitive or price-elastic, and not promotion-elastic.

Marketing Strategies for Growth Stage:

This is the stage of rapid market acceptance. The strategies are aimed at sustaining market
growth as long as possible. Here, the aim is not to increases awareness, but to get trial of the
product. Company tries to enter the new segments. Competitors have entered the market. The
company tries to strengthen competitive position in the market. It may forgo maximum current
profits to earn still greater profits in the future.
Several possible strategies for the stage are as under:
1. Product qualities and features improvement
2. Adding new models and improving styling
3. Entering new market segments
4. Designing, improving and widening distribution network
5. Shifting advertising and other promotional efforts from increasing product awareness to
product conviction
6. Reducing price at the right time to attract price-sensitive consumers
7. Preventing competitors to enter the market by low price and high promotional efforts

Marketing Strategies for Maturity Stage:

In this stage, competitors have entered the market. There is severe fight among them for more
market share. The company adopts offensive/aggressive marketing strategies to defeat the
competitors.

Following possible strategies are followed:

1. To Do Nothing:
To do nothing can be an effective marketing strategy in the maturity stage. New strategies are not
formulated. Company believes it is advisable to do nothing. Earlier or later, the decline in the
sales is certain. Marketer tries to conserve money, which can be later on invested in new
profitable products. It continues only routine efforts, and starts planning for new products.

2. Market Modification:
This strategy is aimed at increasing sales by raising the number of brand users and the usage rate
per user. Sales volume is the product (or outcome) of number of users and usage rate per users.
So, sales can be increased either by increasing the number of users or by increasing the usage rate
per user or by both. Number of users can be increased by variety of ways.

There are three ways to expand the number of users:

i. Convert non-users into users by convincing them regarding uses of products

ii. Entering new market segments

iii. Winning competitors’ consumers

Sales volume can also be increased by increasing the usage rate per user.

This is possible by following ways:

i. More frequent use of product

ii. More usage per occasion

iii. New and more varied uses of product

3. Product Modification:
Product modification involves improving product qualities and modifying product characteristics
to attract new users and/or more usage rate per user.

Product modification can take several forms:

i. Strategy for Quality Improvement:
Quality improvement includes improving safety, efficiency, reliability, durability, speed, taste,
and other qualities. Quality improvement can offer more satisfaction.

ii. Strategy for Feature Improvement:

This includes improving features, such as size, colour, weight, accessories, form, get-up,
materials, and so forth. Feature improvement leads to convenience, versatility, and
attractiveness. Many firms opt for product improvement to sustain maturity stage.

Product improvement is beneficial in several ways like:

(1) It builds company’s image as progressiveness, dynamic, and leadership,

(2) Product modification can be made at very little expense,

(3) It can win loyalty of certain segments of the market,

(4) It is also a source of free publicity, and

(5) It encourages sales force and distributors.

4. Marketing Mix Modification:

This is the last optional strategy for the maturity stage. Modification of marketing mix involves
changing the elements of marketing mix. This may stimulate sales. Company should reasonably
modify one or more elements of marketing mix (4P’s) to attract buyers and to fight with
competitors. Marketing mix modification should be made carefully as it is easily imitated.

Marketing Strategies for Decline Stage:

Company formulates various strategies to manage the decline stage. The first important task is to
detect the poor products. After detecting the poor products, a company should decide whether
poor products should be dropped. Some companies formulate a special committee for the task
known as Product Review Committee. The committee collects data from internal and external
sources and evaluates products. On the basis the report submitted by the committee, suitable
decisions are taken.

Company may follow any of the following strategies:

1. Continue with the Original Products:
This strategy is followed with the expectations that competitors will leave the market. Selling and
promotional costs are reduced. Many times, a company continues its products only in effective
segments and from remaining segments they are dropped. Such products are continued as long as
they are profitable.

2. Continue Products with Improvements:

Qualities and features are improved to accelerate sales. Products undergo minor changes to
attract buyers.

3. Drop the Product:

When it is not possible to continue the products either in original form or with improvement, the
company finally decides to drop the products.

Product may be dropped in following ways:

i. Sell the production and sales to other companies

ii. Stop production gradually to divert resources to other products

iii. Drop product immediately.

3. Marketing Control: Introduction, Definition and Need

Introduction:
Marketing control is an important task of marketing department. It is indispensable for effective
working of marketing department, achieving marketing objectives in time, and continuous
development. Controlling mechanism (or system) can prevent mistakes to occur and also help in
rectifying mistakes, if any. It ensures that everything is going on as per plan and the organisation
is achieving its objectives. Due to marketing control, entire department remains active and alive.

Marketing controls seeks answers of following questions:

i. What should happen? It shows expected (ideal) situation. ii.
What is happening? It shows on-going actual current performance.

iii. What has happened? It shows the result achieved.

iv. Why has it happened? It shows the reasons responsible for the results.

v. What is required to do? It shows the corrective actions to be initiated.

Marketing control implies application of controlling system (controlling mechanism) to
marketing activities.

Controlling of any type activities or operations involves the same steps like:
1. Setting standards (setting expected results or objectives)

2. Measuring actual performance/results.

3. Comparing actual results with standards (and detecting causes responsible for the results).

4. Taking corrective actions.

Definitions:
Definitions involve more or less same activities like setting standards, measuring performance,
comparing actual performance with standards to detect degree of deviation, and taking corrective
actions as per degree of deviation.

1. Marketing control can be defined as: Marketing control is a process of comparing actual
performance of marketing department with standards to find our degree of deviation, and,
if necessary, corrective actions are taken.

2. We can also define the term as: Marketing control involves verifying and rectifying
marketing performance.

3. Sales volume is the main criterion to evaluate marketing control. In relation to sales, it can
be said: Setting sales standards, measuring sales, finding degree of deviation by comparing
estimated sales with actual sales and detecting causing responsible for the deviation, and taking
corrective action is called marketing control.

4. Finally, in systematic way, we can define: Marketing control calls for verifying or
checking of marketing programmes and, if needed, taking suitable measures to endure that
the activities are going on as per marketing plans.

Need or Importance of Marketing Control:

Marketing control acts as a preventive as well as corrective device; it prevents errors to occur
and, in case, if errors occurred, it can rectify them.

Need and importance of marketing control can be explained in relations to the

points listed below:
1. To achieve objectives.

2. To make the plan successful.

3. To prevent mistakes to occur.

4. To formulate and modify marketing strategies.

5. To rectify mistakes.

6. To adjust with external environment.

7. To take maximum advantages of company’s strengths.

8. To verify policies, rules, objectives, and strategies.

9. To measure and evaluate effectiveness of marketing efforts.

10. To keep employees alert and active, or to apply psychological pressure.

11. To achieve better coordination.

12. To keep the organisation active and engaged.

13. To make managers responsible, regular, and disciplined.

14. To apply new ideas and methods for better performance.

15. To prevent unexpected events to occur, etc.