Unit 1: Fundamental Concepts in Marketing and Marketing Environment:

Definition and Scope of Marketing- Basic Concepts in Marketing- Need,

Want, Demand, Customer, Consumer, Exchange, Markets, Marketing
Segmentation, Marketing Channels, Competition, Marketing Environment,
Customer Value, Customer Satisfaction, Customer Delight, Marketing
Mix- 7 P

Marketing is identifying, anticipating, and satisfying customer needs and wants

through creating, promoting, distributing, and pricing products, services, or ideas.
The scope of marketing includes understanding customer needs, researching the
market, developing products or services, creating promotional materials,
identifying distribution channels, setting prices, and analyzing customer
feedback.

1. Need: A need is essential for survival or maintaining a certain standard of

living. For example, food, clothing, and shelter are basic human needs.

2. Want: A want is a desire or aspiration to fulfill a need in a specific way. For

example, a person might need food but want pizza instead of a sandwich.

3. Demand: Demand refers to the willingness and ability of a customer to pay

for a product or service. Price, quality, and availability influence the demand
for a product or service.

4. Customer: A customer is an individual or organization that buys goods or

services. Customers are the backbone of any business.

5. Consumer: A consumer is a person who uses or consumes a product or

service. Consumers are the end-users of products or services and are the ones
who make purchasing decisions.

6. Exchange: An exchange occurs when a buyer and a seller agree to trade a

product or service for something of value. The buyer gives the seller money
or some other form of payment in exchange for the product or service.

7. Markets: Markets refer to the groups of potential customers who share similar
needs and wants. Markets can be segmented based on various factors such as
demographics, psychographics, behavior, and geography.
8. Marketing Segmentation: Marketing segmentation divides a market into
smaller groups of customers with similar needs and wants. Companies can
create targeted marketing campaigns by segmenting the market and tailoring
their products or services to specific customer groups.

9. Marketing Channels: Marketing channels are the various ways a product or

service is made available to customers. Examples of marketing channels
include brick-and-mortar stores, online marketplaces, and direct sales.

10.Competition: Competition is rivalry among businesses in the same market.

Competitors offer similar products or services and compete for the same
customers.

11.Marketing Environment: The marketing environment consists of the

internal and external factors that affect a company’s marketing activities.
Internal factors include the company's goals, culture, and resources, while
external factors include economic, social, technological, and legal aspects.

12.Customer Value: Customer value is the perceived benefit that a customer

receives from a product or service. Customers evaluate the help of a product
or service against its cost to determine its value.

13.Customer Satisfaction: Customer satisfaction is the extent to which a

customer is happy with a product or service. Customer satisfaction is
important because satisfied customers are more likely to become repeat
customers and recommend the product or service to others.

14.Customer Delight: Customer delight is the positive emotional response that

a customer experiences when using a product or service. Customer delight
goes beyond customer satisfaction and creates an emotional connection
between the customer and the brand.

15.Marketing Mix - 7 Ps: The marketing mix is a set of tools a company uses to
promote its products or services to customers. The 7 Ps of the marketing mix
are:

 Product: The product is the company’s physical item or service.

 Price: The price is the amount that the customer pays for the product or
service.

 Place: Place refers to the distribution channels that the company uses to make
the product or service available to customers.
 Promotion: Promotion refers to the marketing and advertising activities that
the company uses to promote its products or services.

 People: People refer to the individuals who are involved in delivering the
product or service, such as salespeople or customer service representatives.

 Process: Process refers to the steps and procedures that the company uses to
deliver the product or service.

 Physical Evidence: Physical evidence refers to the tangible elements that

customers can see and touch, such as packaging, store design, and signage.

Marketing Orientation towards Market Place-Production Concept,

Product Concept, Selling Concept, Marketing Concept. Societal Marketing,
Relationship Marketing Concept, Holistic Marketing, Marketing Myopia.

1. Production Concept: The production concept is a marketing orientation

focusing on producing high-quality products at low costs. Companies that use
this concept believe that consumers will buy product affordable and readily
available products is approach assumes that consumers prioritize products that
are widely available and reasonably priced, rather than products that are
tailored to specific needs.

2. Product Concept: The product concept is a marketing orientation that focuses

on creating the best possible product or service. Companies that use this
concept believe that consumers will buy products that offer superior quality,
performance, or features. This approach assumes that consumers are willing
to pay a premium for products that meet their specific needs and preferences.

3. Selling Concept: The selling concept is a marketing orientation that focuses

on aggressive selling and promotion to generate sales. Companies that use this
concept believe that consumers will not buy products unless they are
convinced to do so through advertising and other forms of promotion. This
approach assumes that consumers are resistant to buying products unless they
are heavily marketed and sold to them.

4. Marketing Concept: The marketing concept is a marketing orientation that

focuses on understanding the needs and wants of customers and delivering
products and services that meet those needs. Companies using this concept
believe building long-term customer relationships is key to success. This
 approach assumes that understanding and satisfying customer needs is the
most important factor in achieving business success.

5. Societal Marketing Concept: The societal marketing concept is a marketing

orientation that focuses on delivering value to customers in a way that also
benefits society. Companies that use this concept believe that they have a
responsibility to consider the impact of their products and services on the
environment and society. This approach assumes that businesses should be
socially responsible and work towards sustainable practices that benefit both
consumers and society.

6. Relationship Marketing Concept: The relationship marketing concept is a

marketing orientation that focuses on building strong, long-term relationships
with customers. Companies that use this concept believe customer loyalty is
key to success and must go above and beyond to satisfy customers. This
approach assumes that building trust and loyalty with customers is more
important than simply making a sale.

7. Holistic Marketing Concept: The holistic marketing concept is a marketing

orientation that takes a broad, integrated view of marketing that considers all
aspects of the customer experience, including product design, pricing,
distribution, promotion, and customer service. This approach assumes that all
aspects of the customer experience must be considered in order to build strong,
lasting relationships with customers.

8. Marketing Myopia: Marketing myopia is a marketing orientation that refers

to a short-sighted approach to marketing that focuses on the company's
products and services rather than the needs and wants of customers.
Companies that fall into this trap often fail to innovate and adapt to changing
customer needs. This approach assumes that businesses must continually
adapt to changing customer needs and preferences to remain successful.

Marketing Environment- Concept of Marketing Environment, Micro and

Macro environment concept, and factors.

The marketing environment refers to all of the external forces and factors that can
impact a company's marketing activities. This includes everything from economic
trends and technological advancements to social and cultural factors that can
affect consumer behavior. There are two main types of marketing environment:
the micro environment and the macro environment.
 1. Micro Environment: The micro environment refers to the internal factors
that influence a company's marketing activities. These include suppliers,
distributors, competitors, customers, and stakeholders. Companies must
consider these factors when developing marketing strategies to ensure that
they meet all stakeholders' needs and preferences.3

2. Macro Environment: The macro environment refers to the external

factors that influence a company's marketing activities. These include
political, economic, social, technological, legal, and environmental factors.
Companies must consider these factors when developing marketing
strategies to ensure that they are adapting to changes in the broader
environment and remaining competitive in the market

Factors Affecting the Marketing Environment:

1. Political Factors: Political factors refer to government policies and

regulations that can impact a company's marketing activities. These include
factors such as taxation policies, trade regulations, and laws related to
consumer protection.

2. Economic Factors: Economic factors refer to the overall economic

conditions that can impact a company's marketing activities. These include
factors such as inflation, unemployment rates, and economic growth.

3. Social and Cultural Factors: Social and cultural factors refer to the values,
beliefs, attitudes, and customs of the society in which a company operates.
These can impact consumer behavior and influence the way in which
companies develop their marketing strategies.

4. Technological Factors: Technological factors refer to technological

advancements that can impact a company's marketing activities. These include
factors such as new software or hardware, communication channel changes,
and manufacturing process advancements.

5. Legal Factors: Legal factors refer to laws and regulations that can impact a
company's marketing activities. These include factors such as intellectual
property laws, antitrust laws, and consumer protection laws.

6. Environmental Factors: Environmental factors refer to the physical

environment in which a company operates. These include factors such as
climate change, natural disasters, and environmental regulations.
Overall, the marketing environment is complex and constantly changing.
Companies must stay up-to-date on these factors in order to develop effective
marketing strategies that can adapt to changes in the environment and remain
competitive in the market.

Unit 2 -Consumer Buying Behaviour & Segmentation Targeting Positioning

(CBB and STP)

Concept of Consumer Buying Behaviour, steps in Consumer Buying Decision

Process and Buying Roles. Detailed

Consumer buying behavior refers to the process by which consumers make

purchasing decisions. It involves a complex set of factors influencing a
consumer's decision to buy a product or service, including psychological, social,
and cultural factors.

Steps in the Consumer Buying Decision Process:

1. Problem Recognition: The consumer recognizes a need or a problem that

needs to be solved. Internal factors, such as hunger or thirst, or external
factors, such as advertising could trigger this.

2. Information Search: The consumer begins to search for information about

potential solutions to their problem. This can involve both internal and
external sources of information, including personal experience, friends and
family, and online research.

3. Evaluation of Alternatives: The consumer evaluates the various options

available based on their needs and preferences. This involves comparing the
features and benefits of different products or services, as well as considering
factors such as price, quality, and convenience.

4. Purchase Decision: After evaluating their options, the consumer decides to

purchase a particular product or service.

5. Post-Purchase Evaluation: After making a purchase, the consumer evaluates

their decision and experiences with the product or service. This can influence
their future purchase decisions and can also lead to word-of-mouth
recommendations to others.
Buying Roles:

1. Initiator: The initiator is the person who first recognizes a need or a problem
that needs to be solved. They may be the person who suggests purchasing a
particular product or service.

2. Influencer: The influencer is the person who provides information and advice
to the consumer during the decision-making process. This can include friends,
family members, or experts in a particular field.

3. Decision Maker: The decision maker is the person who ultimately decides to
purchase a product or service. This may be the same person as the initiator or
someone else in the group.

4. Purchaser: The purchaser is the person who makes the purchase, either in-
store or online.

5. User: The user is the person who uses the product or service. This may or may
not be the same person as the decision maker or purchaser.

Understanding consumer buying behavior and the roles played by different

individuals in the decision-making process can help companies to develop more
effective marketing strategies. By understanding what factors influence
consumers' purchasing decisions and who the key decision-makers are,
companies can tailor their marketing messages better to meet the needs and
preferences of their target audience.

Business Buying Behaviour Process and roles.

Business buying behavior refers to how organizations make purchasing decisions

for goods and services. It involves a complex set of factors influencing a
business's decision to buy a product or service, including economic, technical,
and social aspects.

Steps in the Business Buying Decision Process:

1. Problem Recognition: The business recognizes a need or a problem that

needs to be solved. Internal factors, such as an increase in demand for a
particular product, or external factors, such as changes in the market, could
trigger this.
 2. Information Search: The business begins to search for information about
potential solutions to their problem. This can involve both internal and
external sources of information, including personal experience, industry
experts, and online research.

3. Evaluation of Alternatives: The business evaluates the various options

available based on their needs and preferences. This involves comparing
the features and benefits of different products or services and considering
factors such as price, quality, and reliability.

4. Supplier Selection: After evaluating their options, the business selects a

supplier from which to purchase the product or service. This decision is
based on several factors, including the supplier's reputation, price, and
delivery capabilities.

5. Post-Purchase Evaluation: The business evaluates its decision and

experiences with the product or service after making a purchase. This can
influence their future purchasing decisions and can also lead to word-of-
mouth recommendations to others.

Buying Roles:

1. Initiator: The initiator is the person or group who first recognizes a need or
problem to be solved. They may be the ones who suggest purchasing a
particular product or service.

2. Influencer: The influencer is the person or group who provide information

and advice to the business during the decision-making process. This can
include industry experts, consultants, or other stakeholders.

3. Decision Maker: The decision maker is the person or group who ultimately
decides to purchase a product or service. This may be based on the
recommendations of influencers and the evaluation of alternatives.

4. Purchaser: The purchaser is the person or group of people who make the
purchase in-store or online.

5. User: The user is the person or group who use the product or service. This
may or may not be the same person or group as the decision maker or
purchaser.
Understanding business buying behavior and the roles played by different
individuals in the decision-making process can help companies to develop more
effective marketing strategies. By understanding what factors influence a
business's purchasing decisions and who the key decision-makers are, companies
can tailor their marketing messages better to meet the needs and preferences of
their target audience.

Concept and Definition: Market Segmentation, Market Targeting

&Positioning (STP):

Market segmentation, targeting, and positioning (STP) are three essential

marketing concepts that help businesses effectively identify and reach their target
audience.

Market Segmentation:

Market segmentation divides a more significant market into smaller, more

defined segments or customers with similar characteristics and needs. This
enables companies to better under to understand their customers targeted
marketing strategies that are more likely to resonate with their audience.

Market Targeting:

Market targeting is the process of selecting and prioritizing the most attractive
segments identified through market segmentation. It involves analyzing the
potential of each segment in terms of size, growth, profitability, and compatibility
with the company's strengths and capabilities. Based on this analysis, businesses
choose the most promising segments to target with their marketing efforts.

Market Positioning:

Market positioning is the process of creating a unique image and identity for a
product or brand in the target audience’s minds. It involves positioning the brand
to stand out from competitors and to be associated with specific attributes,
benefits, or values that resonate with the target audience. Effective positioning
helps to differentiate the brand and create a competitive advantage in the market.
STP Process:

The STP process involves three key steps:

1. Segmentation: Identify and group customers into smaller, more defined

segments based on similar needs, characteristics, and behavior.

2. Targeting: Evaluate and prioritize the most attractive segments based on their
potential profitability and compatibility with the company's strengths and
capabilities.

3. Positioning: Develop a unique and compelling image and identity for the
brand that resonates with the target audience and differentiates the brand from
competitors.

Benefits of STP:

Effective STP can provide several benefits for businesses, including:

1. Improved understanding of customers: By dividing the market into smaller

segments, businesses can gain a better understanding of the needs,
preferences, and behaviors of their target audience.

2. Better targeting: Businesses can optimize their marketing efforts and allocate
resources more effectively by prioritizing the most attractive segments.

3. Improved competitiveness: By positioning the brand effectively, businesses

can differentiate themselves from competitors and create a competitive
advantage in the market.

4. Higher customer satisfaction: By targeting and positioning the brand to

better meet the needs and preferences of their customers, businesses can
improve customer satisfaction and loyalty.

In summary, market segmentation, targeting, and positioning are essential

concepts in marketing that help businesses to effectively identify and reach their
target audience. By understanding the needs, preferences, and behavior of their
customers and positioning their brand effectively, businesses can differentiate
themselves from competitors and create a competitive advantage in the market.
Bases of Market Segmentation: Geographic, Demographic, Psychographic
and Behavioural. Detailed

Market segmentation is the process of dividing a larger market into smaller, more
defined segments or groups of customers who share similar characteristics and
needs. There are several bases of market segmentation that businesses can use to
identify and group their target audience. The most common bases of market
segmentation include geographic, demographic, psychographic, and behavioral
segmentation.

1. Geographic Segmentation:

Geographic segmentation involves dividing the market based on geographical

location, such as country, region, city, or climate. This type of segmentation is
useful for businesses that operate in specific regions or have products that are
tailored to specific climate conditions. For example, a company that sells winter
jackets may segment their market based on geographic location to target
customers living in colder climates.

2. Demographic Segmentation:

Demographic segmentation involves dividing the market based on demographic

factors such as age, gender, income, education, occupation, family size, and
marital status. This type of segmentation is useful for businesses that offer
products or services that are more likely to be used by certain demographic
groups. For example, a company that sells luxury skincare products may segment
their market based on income and age to target high-income earners and older
adults who are more likely to invest in high-quality skincare.

3. Psychographic Segmentation:

Psychographic segmentation involves dividing the market based on consumer

personality traits, values, lifestyles, interests, and attitudes. This type of
segmentation is useful for businesses that offer products or services that appeal
to specific lifestyles or personalities. For example, a company that sells adventure
travel experiences may segment their market based on personality traits such as
risk-taking, adventure-seeking, and outdoor enthusiasts.
4. Behavioral Segmentation:

Behavioral segmentation involves dividing the market based on consumer

behavior, such as usage rate, brand loyalty, benefits sought, and purchase
occasion. This type of segmentation is useful for businesses that offer products
or services that are more likely to be used by certain consumer groups. For
example, a company that sells energy drinks may segment their market based on
usage rate and purchase occasion to target customers who consume energy drinks
frequently and during specific times of the day.

In conclusion, businesses can use several bases of market segmentation to

identify and group their target audience. Geographic, demographic,
psychographic, and Behavioral segmentation are the most common bases of
market segmentation. By using these segmentation bases, businesses can develop
targeted marketing strategies that resonate with their target audience and improve
their overall marketing effectiveness.

Market Targeting: Target Market Selection, Market Targeting Strategies:

Market targeting, also known as target marketing, involves selecting a specific

market segment or segments to focus on when developing marketing strategies.
Targeting a specific market segment allows businesses to tailor their marketing
efforts to meet the needs and preferences of that segment, which can lead to
increased sales and customer loyalty.

Target Market Selection:

The target market is the group of customers that a business aims to serve. To
select a target market, businesses need to consider several factors, including the
size of the market segment, its growth potential, and its profitability. Businesses
should also consider the unique needs and preferences of the target market and
how they can meet those needs through their products or services.

Market Targeting Strategies:

Once a target market has been identified, businesses can use various targeting
strategies to reach that market. The most common targeting strategies include:

1. Undifferentiated Targeting:

Undifferentiated targeting, also known as mass marketing, involves creating a

single marketing strategy that targets the entire market. This approach is typically
used for products or services that have broad appeal and are not specific to any
market segment. Examples include household cleaning products, soft drinks, and
fast food.

2. Differentiated Targeting:

Differentiated targeting, also known as segmented marketing, involves creating

different marketing strategies for different market segments. This approach is
used when a business identifies multiple market segments with distinct needs and
preferences. Examples include automobile manufacturers who create different
models for different segments based on price, features, and functionality.

3. Concentrated Targeting:

Concentrated targeting, also known as niche marketing, involves creating a

marketing strategy targeting a specific market sub-segment. This approach is
typically used when a business identifies a small but profitable market segment
not being served by competitors. Examples include specialty stores that cater to
specific hobbies or interests.

4. Micro-Marketing:

Micro-marketing involves creating a customized marketing strategy for

individual customers or small groups of customers. This approach is made
possible by technological advancements that allow businesses to collect data on
individual customer preferences and behavior. Examples include personalized
email marketing campaigns and targeted advertising on social media platforms.

In conclusion, selecting a target market and using targeting strategies is essential

to developing a successful marketing strategy. By identifying a specific market
segment and tailoring their marketing efforts to meet the needs and preferences
of that segment, businesses can increase their sales, customer loyalty, and overall
marketing effectiveness.

Positioning: Concept & Definition USP, POP, POD.

Positioning is creating a unique perception of a brand or product in the minds of

target customers. It involves identifying a specific market segment and creating
a marketing strategy that emphasizes a brand's unique features and benefits to
differentiate it from competitors.
USP:

Unique Selling Proposition (USP) is the key feature or benefit that differentiates
a brand or product from competitors in the minds of customers. It is the main
reason why customers should choose the brand or product over others. A USP
should be communicated clearly and consistently in all marketing efforts to build
brand awareness and loyalty.

POP:

Points of Parity (POP) are the similarities between a brand or product and its
competitors. POPs help customers understand what they can expect from the
brand or product and are necessary to establish credibility and relevance in the
market. Identifying and highlighting POPs can help businesses differentiate their
products from competitors and build a strong brand reputation.

POD:

Points of Difference (POD) are the unique features or benefits that set a brand or
product apart from its competitors. PODs make a brand or product unique and
give customers a reason to choose it over others. Identifying and emphasizing
PODs in marketing efforts can help businesses create a strong brand identity and
attract loyal customers.

Effective positioning requires a deep understanding of customer needs, wants,

preferences, and the competitive landscape. The following are the steps involved
in the positioning process:

1. Identify the target market: This involves determining the specific group of
customers the brand or product serves.

2. Conduct market research: This involves gathering information about

customer needs, preferences, and behavior, as well as competitor strengths and
weaknesses.

3. Determine the brand's or product's unique selling proposition (USP):

This involves identifying the key feature or benefit that sets the brand or
product apart from competitors.

4. Develop a positioning statement: This involves creating a clear and concise

message that communicates the brand's or product's unique value proposition
to the target market.
5. Communicate the positioning: This involves using various marketing
channels to communicate the brand's or product's positioning to the target
market.

In conclusion, effective positioning is critical to building a solid brand identity

and attracting loyal customers. By identifying and emphasizing a brand or
product's unique features and benefits, businesses can differentiate themselves
from competitors and create a strong market presence. USPs, POPs, and PODs
are key concepts that can help enterprises to effectively identify and communicate
their positioning.

UNIT 3- Product (Customer value)

Product: Concept definition:

In marketing, a product is defined as a tangible or intangible item that is offered

to customers in exchange for money or other valuable consideration. A product
can be a physical good, such as a piece of furniture or a car, or a service, such as
a haircut or a consulting session. It can also be a digital or virtual offering, such
as a software program or an online course.

At its core, a product is a solution to a customer's problem or need. The value of

a product is determined by the benefits it provides to the customer and the price
they are willing to pay for those benefits. Product development and management
involves identifying customer needs, designing, and developing products to meet
those needs, pricing the products, promoting, and distributing them to the target
market, and monitoring their performance and making necessary adjustments.

Product features can be tangible or intangible and include things such as size,
colour, shape, design, functionality, durability, and quality. Intangible features
may include things such as brand image, reputation, customer service, and after-
sales support.

Product development involves several stages, including idea generation, product

concept development, product design and engineering, prototyping, testing, and
commercialization. During these stages, market research is critical to identify
customer needs, preferences, and buying behavior. Additionally, product
managers must consider the competitive landscape and regulatory requirements
when developing new products.

Product management involves ongoing monitoring and adjustment of products to

meet changing customer needs and competitive pressures. This includes
monitoring sales and profitability, gathering feedback from customers and
stakeholders, identifying opportunities for product improvements, and adjusting
marketing strategies to optimize product performance.

In conclusion, a product is a key component of the marketing mix and is designed

to provide a solution to customer needs or problems. Effective product
development and management require a deep understanding of customer needs,
preferences, and behavior, as well as the competitive landscape and regulatory
environment.

Levels of products:

In marketing, a product can be viewed as having three levels: the core product,
the actual product, and the augmented product. These levels are often referred to
as the "product hierarchy" and are used by marketers to understand how to create
and market products that meet the needs of customers.

1. Core product: The core product is the primary benefit or service that the
customer is seeking. This is the fundamental reason why the customer is
purchasing the product. For example, the core product for a car might be
transportation.

2. Actual product: The actual product is the physical or tangible product that
the customer receives when they purchase the product. This includes the
product's features, design, and packaging. For example, the actual product for
a car might include the make and model, engine size, color, and design.

3. Augmented product: The augmented product includes all of the additional

services or benefits that are provided to enhance the value of the actual
product. These may include after-sales service, warranties, product training,
or delivery options. For example, the augmented product for a car might
include a maintenance plan, roadside assistance, and financing options.

Understanding the different levels of a product can help marketers to create and
market products that meet the needs and desires of their target customers. By
focusing on the core product, actual product, and augmented product, marketers
can create products that offer value to customers and differentiate themselves
from competitors. Additionally, understanding the different levels of a product
can help marketers to identify areas for improvement and innovation to meet
changing customer needs and preferences.
 Classification of products:

Products can be classified based on several criteria, including their durability and
tangibility, the level of consumer involvement in the purchase process, and the
degree of brand loyalty among customers. Here are some common classifications
of products:

1. Durability and tangibility: Products can be classified as either durable or non-

durable, and tangible or intangible. Durable products are those that are expected to
last for a long time, such as appliances or furniture, while non-durable products are
those that are consumed or used up quickly, such as food or toiletries. Tangible
products are those that can be physically touched or seen, while intangible products
are those that cannot be touched or seen, such as services or digital products.

2. Consumer involvement: Products can be classified as either high or low

involvement based on the level of effort and thought consumers put into purchasing.
High-involvement products are expensive, complex, or significantly impact the
consumer's life, such as a house or a car. Low-involvement products are inexpensive
or routine, such as groceries or household items.

3. Brand loyalty: Products can also be classified based on the degree of brand loyalty
among customers. Some products have a strong brand association and customer
loyalty, while others are more commoditized and have less brand differentiation.
Brand-loyal products such as Apple products or luxury cars have a strong brand
association and high customer loyalty. Commodity products are those that need more
differentiation among brands, such as basic household goods like flour or sugar.

4. Product life cycle: Products can also be classified based on their stage in the product
life cycle, which includes introduction, growth, maturity, and decline. Products
newly introduced to the market are in the introduction stage, while those widely
adopted and growing in sales are in the growth stage. Products that have reached
their peak sales are in the maturity stage, and those that are declining in sales are in
the decline stage.

Understanding the different classifications of products can help marketers to

develop effective marketing strategies that are tailored to the unique
characteristics of each product. For example, high involvement products may
require more detailed and informative marketing communications, while
commodity products may require a focus on price and convenience.
Product Life cycle and strategies:

The product life cycle (PLC) is a concept that describes the stages a product goes
through from introduction to decline. The four stages of the PLC are introduction,
growth, maturity, and decline. Each stage has different characteristics and
requires different marketing strategies to be successful.

1. Introduction: The introduction stage is when a new product is introduced to

the market. Sales are low, and the product is not yet profitable. The focus of
marketing efforts during this stage is on creating awareness and generating
interest among potential customers. Key marketing strategies include
advertising, public relations, and promotions to encourage trial and adoption
of the product.

2. Growth: The growth stage is characterized by rapidly increasing sales and

profits. The product is gaining acceptance in the market, and competitors may
start to enter the market as well. The focus of marketing during this stage is
on building brand awareness and loyalty, expanding distribution channels, and
increasing production to meet growing demand.

3. Maturity: The maturity stage is when sales growth starts to slow down, and
the product reaches its peak. Competitors are abundant, and price competition
can become intense. Marketing efforts during this stage focus on
differentiating the product from competitors, maintaining market share, and
extending the product life cycle through product innovation or new features.

4. Decline: The decline stage is when sales start to decline due to changing
consumer needs, increased competition, or product obsolescence. Marketing
efforts during this stage focus on reducing costs, managing inventory, and
phasing out the product. Strategies may include focusing on loyal customers
or finding new uses for the product.

Overall, understanding the product life cycle is important for marketers to

develop effective marketing strategies for each stage of the cycle. By tailoring
marketing efforts to the specific needs of each stage, marketers can maximize
sales and profits, extend the product life cycle, and remain competitive in the
market.
Product mix (Portfolio):

The product mix, also known as the product portfolio, refers to the range of
products and product lines offered by a company. A product mix can include
different types of products, such as goods, services, and digital products. The
purpose of a product mix is to provide customers with a variety of products to
choose from, meet different customer needs, and maximize sales and profits.

The product mix can be divided into four categories:

1. Width: The width of the product mix refers to the number of product lines a
company offers. For example, a clothing company may offer several product
lines, such as men's, women's, and children's clothing.

2. Length: The length of the product mix refers to the total number of products
within each product line. For example, a company may offer shirts, pants,
jackets, and other items within the men's clothing line.

3. Depth: The depth of the product mix refers to the variations of each product.
For example, within the shits category, a company may offer different styles,
colours, and sizes.

4. Consistency: The consistency of the product mix refers to how closely related
the product lines are to each other. For example, a company that sells office
furniture and supplies has a consistent product mix.

A company's product mix strategy can vary depending on market demand,

competition, and company goals. Some strategies include:

1. Product line expansion: A company may expand its product lines to meet
changing customer needs and preferences.

2. Product line contraction: A company may eliminate product lines that are
not profitable or that no longer meet customer needs

3. Product line depth expansion: A company may expand the variations of each
product to appeal to different customer segments and increase sales.

4. Product line narrowing: A company may narrow its product line to focus on
its most profitable products and reduce costs.
In conclusion, a well-managed product mix can help a company meet different
customer needs, maximize sales and profits, and remain competitive in the
market. Companies should regularly evaluate their product mix strategy to ensure
that it aligns with their goals and meets the needs of their customers.

Unit 4- Price (Customer Cost) & Place:(Customer Convenience) Price

(Customer Cost)

Pricing Basics: Definition and concept of Price, Factors influencing pricing

decisions (Internal & External).

Price is the amount customers pay for a product or service. It is an essential

element of the marketing mix that affects a company's revenue, profitability, and
competitiveness. Pricing decisions are based on a range of internal and external
factors that impact the company's ability to set attractive prices while still
generating a profit.

Internal factors that influence pricing decisions include:

1. Marketing objectives: The pricing decision should align with the company's
overall marketing objectives, such as increasing market share or maximizing
profits.

2. Cost of production: The cost of producing the product or service is an

important factor in setting the price, as it determines the minimum price the
company must charge to cover its expenses and generate a profit.

3. Marketing mix strategy: The price should be consistent with other elements
of the marketing mix, such as product quality, promotion, and distribution.

4. Product differentiation: The uniqueness of the product or service can affect

the price, as customers may be willing to pay more for products that offer
unique benefits or features.

External factors that influence pricing decisions include:

1. Customer demand: The price should be consistent with the level of demand
for the product or service. Generally, higher-demand products can be priced
higher than lower-demand products.
2. Competition: The price should be competitive with other companies offering
similar products or services. If a company prices its products too high,
customers may choose to purchase from competitors.

3. Economic conditions: The state of the economy, including inflation and

interest rates, can impact pricing decisions as companies must adjust prices to
remain profitable.

4. Government regulations: Some industries are regulated by government

agencies that dictate pricing practices.

In conclusion, pricing decisions are influenced by a range of internal and external

factors that impact a company's ability to set prices that are attractive to customers
while still generating a profit. A thorough understanding of these factors is critical
for companies to make informed pricing decisions that align with their marketing
objectives and overall business strategy.
.
Steps in Setting the Price: Selecting the Pricing Objectives, Determining
Demand, Estimating Cost, Analyzing Competitors’ Costs, Prices, and
Offers, Selecting the Pricing Method, and Selecting the Final Price.

Setting the price for a product or service requires a thorough understanding of the
market, competitors, and cost structure. Here are the steps involved in developing
the price:

1. Selecting Pricing Objectives: The first step is determining the pricing

objectives, which could be maximizing profits, increasing market share, or
simply maintaining the status quo. The pricing objectives should be aligned
with the overall business objectives.

2. Determining Demand: The next step is estimating the product or service

demand. This involves analyzing the market, competition, and target
customers. The price should be set in such a way that it matches the level of
demand for the product or service.

3. Estimating Cost: The cost of production, marketing, and distribution should

be estimated to determine the minimum price that can be set to cover all the
expenses and generate a profit. The cost structure should be analyzed in detail
to identify areas where costs can be reduced.
4. Analyzing Competitors’ Costs, Prices, and Offers: A thorough analysis of
competitors' costs, prices, and offers is necessary to set a competitive price.
This involves studying the competitors' products, features, and pricing
strategies.

5. Selecting Pricing Method: After analyzing the market, competition, and cost
structure, the pricing method should be selected. The most common pricing
methods are cost-plus, value-based, and competition-based.

6. Selecting the Final Price: The final price should be set once the pricing
method is selected. The price should be placed in a way that is attractive to the
target customers while still generating a profit for the company.

In conclusion, setting the price involves a series of steps that require a thorough
understanding of the market, competition, and cost structure. By following these
steps, companies can set a competitive price attractive to customers while still
generating a profit.

Pricing strategies: Skimming, Penetration, Geographical Pricing, Price

Discounts and Allowances, Promotional Pricing, Differentiated Pricing.
Detailed

Companies use several pricing strategies to price their products and services.
Here are some of the most common pricing strategies:

1. Skimming Pricing: Skimming pricing is a strategy in which a high price is

set for a new product or service with a unique feature or benefit. This strategy
is typically used for innovative products that are in high demand. The goal is
to generate maximum profit in the early stages of the product's life cycle.

2. Penetration Pricing: Penetration pricing is a strategy in which a low price is

set for a new product or service to attract customers and gain market share.
This strategy is used when the company wants to enter a highly competitive
market. The goal is to attract customers with a low price and then gradually
increase the cost as the product gains acceptance.

3. Geographical Pricing: Geographical pricing is a strategy in which the price

of a product or service varies based on the customer’s location. This strategy
accounts for differences in shipping, taxes, and other costs associated with
selling in different regions.
4. Price Discounts and Allowances: Price discounts and allowances are
temporary price reductions offered to customers to increase sales. Examples
include seasonal discounts, volume discounts, and cash discounts.

5. Promotional Pricing: Promotional pricing is a strategy in which a temporary

price reduction is offered to customers to promote a product or service.
Examples include coupon codes, free shipping, and buy-one-get-one-free
offers.

6. Differentiated Pricing: Differentiated pricing is a strategy in which prices

are charged for the same product or service based on customer segments. This
strategy is used to capture different levels of willingness to pay among various
customer segments.

In conclusion, companies use different pricing strategies to achieve their business

objectives. By carefully selecting the right pricing strategy, companies can
increase sales, gain market share, and generate maximum profit.

Marketing Channel: Meaning, Channel Functions, Flows, Channel Levels.

Marketing or distribution channels are the intermediaries that help get products
or services from the producer to the end customer. They are essential to a
company's marketing strategy as they determine how a product or service reaches
its target market. Here are the critical aspects of marketing channels:

1. Meaning: A marketing channel is a set of intermediaries that help move a

product or service from the producer to the end customer. These
intermediaries include wholesalers, retailers, distributors, agents, and brokers.

2. Channel Functions: The main functions of marketing channels include:

 Facilitating the exchange of goods or services between the producer and the
customer
 Providing market information to producers about customer needs and
preferences
 Promoting and advertising products or services to customers
 Financing and providing credit to customers
 Assisting with logistics and transportation of products or services
 Providing after-sales service and support to customers
3. Channel Flows: Three main flows occur in marketing channels:
 Physical Flow: This involves the movement of goods or services from the
producer to the customer.
 Payment Flow: This involves the transfer of payment for goods or services
from the customer to the producer.
 Information Flow: This involves the exchange of information between
different members of the channel, such as customer feedback, sales data, and
market research.

4. Channel Levels: Different marketing channels are different, depending on the

number of intermediaries involved. The three main levels are:
 Direct Channel: This involves selling products or services directly to the end
customer without any intermediaries.
 Indirect Channel: This involves selling products or services through one or
more intermediaries, such as wholesalers or retailers.
 Multichannel: This involves using multiple marketing channels to reach the
end customer, such as online and offline.

In conclusion, marketing channels are essential to a company's marketing

strategy. They help move products or services from the producer to the end
customer and provide various functions such as promotion, financing, and after-
sales service. The choice of marketing channels and the level of intermediaries
involved depend on the company's target market and business objectives.

Marketing Channel Design: Analysing Customer’s Desired Service Output

Levels, Establishing Objectives and Constraints, Identifying Channel
Alternatives, Evaluating Channel Alternatives:

Marketing channel design is creating a marketing channel that meets the needs of
both the producer and the customer. Here are the steps involved in designing a
marketing channel:

1. Analyzing Customer's Desired Service Output Levels: The first step is to

understand the customer's desired service output levels, which includes the
level of convenience, speed of delivery, and level of after-sales support they
expect. This information can be gathered through market research and
customer feedback.
2. Establishing Objectives and Constraints: The next step is to establish the
objectives and constraints of the marketing channel. This includes determining
the target market, the level of control the producer wants to have over the
track, and the budget available for the channel.

3. Identifying Channel Alternatives: The third step is to identify the different

channel alternatives available. This includes direct channels, such as selling
through a company-owned store or website, and indirect channels, such as
selling through a distributor or retailer.

4. Evaluating Channel Alternatives: The final step is to evaluate the different

channel alternatives based on their effectiveness in meeting the customer's
desired service output levels and the producer's objectives and constraints.
This includes evaluating factors such as the cost of each channel, the level of
control the producer has over the channel, and the level of service provided to
customers.

To summarize, designing a marketing channel involves analyzing the customer's

desired service output levels, establishing objectives and constraints, identifying
channel alternatives, and evaluating them based on their effectiveness in meeting
the customer's needs and the producer's objectives. By following these steps,
companies can create a marketing channel that effectively reaches their target
market and meets their business objectives.

E-commerce Channels: Pure Click, Brick and Click mode:

E-commerce channels are the different ways companies can sell their products or
services online. Here are the two main types of e-commerce channels:

1. Pure Click Model: In the pure click model, companies sell their products or
services exclusively online without having physical storefronts. Customers
can browse and purchase products through the company's website or mobile
app. Examples of pure-click companies include Amazon, eBay, and Alibaba.

2. Brick and Click Model: In the brick-and-click model, companies have

physical storefronts and an online presence. Customers can choose to purchase
products online, in-store, or both. In this model, the company's online and
offline channels are integrated, allowing customers to move between the two
seamlessly. Examples of brick-and-click companies include Walmart, Best
Buy, and Target.
There are also hybrid models that combine elements of both pure click and brick
and click models. For example, some companies may have physical storefronts
but also offer the option for customers to purchase products online for home
delivery or in-store pickup. Other companies may sell their products through
third-party online retailers in addition to their own website.

The choice of e-commerce channel depends on a company's goals, target market,

and resources. Pure click models may be more cost-effective for startups and
niche markets, while brick and click models may be more suitable for larger
companies with a wider customer base. Ultimately, the key is to create a seamless
and convenient online shopping experience for customers, regardless of the
chosen e-commerce channel.

Unit 5- Promotion (Customer Communication) & Marketing Mix:

Promotion (Customer Communication)

Meaning and Role of Promotion and Integrated Marketing Communication

(IMC)in Marketing:

Promotion refers to companies' activities and communication efforts to promote

their products or services and persuade potential customers to buy from them.
Promotion can be done through various marketing communication tools, such as
advertising, sales promotion, personal selling, public relations, and direct
marketing.

Integrated Marketing Communication (IMC) is a strategic approach that

combines all the marketing communication tools to deliver a clear, consistent,
and compelling message to the target audience. IMC aims to create a seamless
and unified brand message across all marketing communication channels,
including traditional, digital, and social media. IMC helps companies achieve a
more effective and efficient communication strategy that can improve brand
awareness, customer engagement, and sales.

The role of promotion and IMC in marketing is critical, as it allows companies to

effectively reach their target audience and communicate their value proposition.
Advertising helps companies to create awareness and generate interest in their
products or services, while IMC ensures that the message is consistent and
delivered through all communication channels. Effective promotion and IMC can
help companies differentiate themselves from their competitors, build customer
loyalty, and drive sales.
In the digital age, promotion and IMC have become even more critical, as
consumers are increasingly using online channels to research and purchase
products or services. Companies need to create an effective digital marketing
strategy that integrates traditional and digital media, and leverages the power of
social media to reach their target audience. This requires a deep understanding of
customer behavior, preferences, and needs, and the ability to create engaging
content that resonates with them.

In summary, promotion and IMC are critical components of marketing that allow
companies to reach their target audience, communicate their value proposition,
and differentiate themselves from their competitors. Effective promotion and
IMC require a deep understanding of customer behavior and preferences, and the
ability to create a seamless and unified brand message across all communication
channels.

Promotion Mix Elements – Advertising, Sales Promotion, Personal Selling,

Public Relations, and Direct Marketing:

Promotion mixes elements refer to the various marketing communication tools

companies use to promote their products or services and reach their target
audience. The most used promotion mixes elements include advertising, sales
promotion, personal selling, public relations, and direct marketing.

1. Advertising: Advertising is a paid form of communication that is designed to

reach a large audience and create awareness of a product or service.
Advertising can be done through various media channels, such as television,
radio, newspapers, magazines, billboards, and digital media. Advertising can
be used to promote a new product or service, build brand awareness, or
communicate a special offer or promotion.

2. Sales promotion: Sales promotion involves short-term incentives that are

designed to encourage immediate purchase or action by the consumer. Sales
promotion can take many forms, such as discounts, coupons, free samples,
contests, sweepstakes, and loyalty programs. Sales promotion is often used to
create a sense of urgency and motivate customers to act.

3. Personal selling: Personal selling involves face-to-face communication

between a salesperson and a potential customer. Personal selling is often used
in B2B marketing, where the salesperson is responsible for building
relationships with key decision-makers and persuading them to buy a product
or service. Personal selling can be expensive, but it can also be highly effective
in building trust and rapport with customers.
4. Public relations: Public relations (PR) involves building and maintaining a
positive image for a company or brand. PR can be done through various
channels, such as media relations, social media, events, sponsorships, and
community outreach. PR is often used to manage a company's reputation,
respond to negative publicity, and build credibility with customers and
stakeholders.

5. Direct marketing: Direct marketing involves reaching out to potential

customers directly through various communication channels, such as email,
direct mail, telemarketing, or SMS. Direct marketing can be highly targeted
and personalized, which makes it effective in reaching a specific audience.
Direct marketing can generate leads, promote a new product or service, or
build customer loyalty.

In summary, the promotion mix elements are the various marketing

communication tools companies use to promote their products or services and
reach their target audience. The choice of promotion mix elements will depend
on the marketing objectives, the target audience, and the budget allocated to the
promotion. A well-designed promotion mix can help companies create
awareness, generate interest, build brand loyalty, and drive sales.

Fundamentals of Digital Marketing- definition, Difference between

traditional Vs. Digital marketing, Paid, Owned, Earned media, Engagement
and Impression, Tools of digital marketing:

Digital marketing promotes products or services using digital channels such as

search engines, social media, email, mobile apps, and websites. Unlike traditional
marketing, digital marketing enables businesses to target a specific audience and
measure the effectiveness of their marketing efforts in real time.

Traditional marketing focuses on reaching a mass audience through TV, radio,

newspapers, and billboards. In contrast, digital marketing is more targeted and
data-driven, allowing businesses to reach their desired audience more precisely.

There are three types of digital media: paid, owned, and earned media. Paid media
refers to advertising a business pays for, such as social media ads or Google
AdWords. Owned media refers to content a company creates and controls, such
as its website or social media profiles. Earned media promotes a business through
word-of-mouth or other types of unpaid marketing, such as customer reviews or
shares.
Engagement refers to how users interact with a business's digital marketing
efforts, such as by commenting on social media posts or sharing content.
Impressions, on the other hand, refer to how many times users view a piece of
content.

Tools of digital marketing include various platforms and software, such as social
media management tools, email marketing software, search engine optimization
(SEO) tools, pay-per-click (PPC) advertising tools, and analytics software to
measure the effectiveness of digital marketing campaigns.

Overall, digital marketing offers businesses a more targeted, data-driven

approach to promoting their products or services, with the ability to measure the
effectiveness of their efforts in real-time