Marketing Management- Study Material

Dr.A.Ravi.
Definition:
According to Philip Kotler, "Marketing Management is the analysis, planning, implementation and control
of program designed to bring about desired exchanges with target audiences for the purpose of personal
and of mutual gain. It relies heavily on the adoption and coordination of product, price, promotion and
place for achieving responses."

Marketing management is a business process, to manage marketing activities in profit seeking and
nonprofit organizations at different levels of management. Marketing management decisions are based
on strong knowledge of marketing functions and clear understanding and application of supervisory and
managerial techniques.

Nature of Marketing Management

1. It Combines the Fields of Marketing and Management As the name implies, marketing
management combines the fields of marketing and management. Marketing consists of
discovering consumer needs and wants, creating the goods and services that meet those
needs and wants; and pricing, promoting, and delivering those goods and services.
Doing so requires attention to six major areas - markets, products, prices, places,
promotion, and people. Management is getting things done through other people.
Managers engage in five key activities - planning, organizing, staffing, directing, and
controlling. Marketing management implies the integration of these concepts.

2. Marketing management is a business process, to manage marketing activities in profit

seeking and nonprofit organizations at different levels of management, i.e. supervisory,
middle-management, and executive levels. Marketing management decisions are based
on strong knowledge of marketing functions and clear understanding and application of
supervisory and managerial techniques. Marketing managers and product managers are
there to execute the processes of marketing management. We, as customers, see the
results of such process in the form of products, prices, advertisements, promotions, etc.

3. “Marketing management is art and science of choosing target markets and getting,
keeping and growing customers through creating, delivering and communicating
superior customer value.” (Kotler, 2006). Marketing management is a science because it
follows general principles that guides the marketing managers in decision making. The
Art of Marketing management consists in tackling every situation in a creative and
effective manner. Marketing Management is thus a science as well as an art.
Importance of Marketing:
Marketing management has gained importance to meet increasing competition and the need for
improved methods of distribution to reduce cost and to increase profits. Marketing management
today is the most important function in a commercial and business enterprise.

Factors showing importance of the marketing management

1.Introduction of new products in the market.
2.Increasing the production of existing products.
3. Reducing cost of sales and distribution.
4. Export market.
5. Development in the means of communication and modes of transportation within and
outside the country.
6. Rise in per capita income and demand for more goods by the consumers

Scope Of Marketing:
1. Setting Marketing Goals:
The prime task of marketing manager is to set marketing goals and objectives.
Clearly and precisely defined objective can help marketing manager to direct
marketing efforts effectively. The goals and objective (whether strategic and
operating, or short-term and long term) must be suitably communicated with the
employee’s concern. As far as possible, objectives should be expressed in the
quantifiable terms.

2. Selecting Target Market:

Segmenting the total market and selecting the target market is a fundamental task of
marketing management. Modern marketing practice is based on the target market,
and not on the total market. Marketing manager cannot satisfy the needs and wants
of entire market. He must concentrate his efforts only on well-defined specific
groups of customers, known as the target market. All the marketing functions are
directed to cater needs and wants of the target market only. Based on company’s
overall capacity, the target market should be selected.

3. Formulating Suitable Marketing Organization:

To implement marketing plan, a suitable organization structure is essential. On the
basis of analysis of type of products, type of market, geographical concentration of
market, and many other relevant factors, appropriate organization must be designed.
Various alternative structures are available, such as product organization, geographic
organization, functional organization, matrix organization, etc. Based upon
requirements, the appropriate structure should be prepared and modified as per
needs.
4. Maintaining Healthy Relations with other Departments:
Marketing department needs cooperation from other departments of organization,
including financial department, personnel department, and production department,
to satisfy customers effectively. Their support is considered to be important to satisfy
consumers. Thus, for integrated efforts, marketing manager should try to establish
good relations with them. Likewise, within marketing department, he must establish
coordination among various personnel.

5. Establishing and Maintaining Profitable Relations with Outside Parties:

Alike internal support, the external relations are also extremely necessary. Marketer,
in order to carry out marketing activities effectively, must establish and maintain
healthy relations with various parties, such as suppliers, service providers,
government agencies, dealers, consultants, and so forth. Without their support,
marketing manager cannot carry out functions successfully. Due to important role of
external relations, contemporary marketing practices can be said as relationship
marketing.

6. Marketing Research Activities:

Marketing research is one of the important functions of modern marketing.
Marketing research involves systematic collection, analysis, and interpretation of
data on any problem related to marketing. It provides the manager with valuable
information on which marketing decisions can be taken. Marketing research is
essential to know adequately about consumers and market situation. It is a basic
function to satisfy consumers. Marketing efforts are based on the marketing research
information.
7. Sales Management:
Sales management is one of the important functions of marketing management.
Sales management concerns with planning, implementation, and controlling selling
efforts. It performs all the activities directly related to execution of sales. Sales
department carry out selling functions. Sales department formulates sales policies,
ensures adequate quantity of products, maintains sales records, formulates
structures for sales department, manages sales force (salesmen), and controls selling
efforts.

8. Exercising Effective Control on Marketing Activities:

Control is essential to ensure that activities are performed as per plan. Control
involves establishing standards, measuring actual performance, comparing actual
performance with standards, and taking corrective actions, if needed. Control keeps
the entire marketing department alert, active, and regular. Marketing manager
 should set up an effective controlling system to monitor marketing efforts. Marketing
Management is a social and managerial process by which individuals or firms obtain
what they need or want through creating, offering, exchanging products of value
with each other.
Five concepts of Marketing:
(1) Production Concept

(2) Product Concept

(3) Selling Concept

(4) Marketing Concept

(5) Societal Marketing Concept

1. Production Concept Those companies who believe in this philosophy think that if the goods/services
are cheap and they can be made available at many places, there cannot be any problem regarding sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts in reducing the
cost of production and strengthening their distribution system. In order to reduce the cost of production
and to bring it down to the minimum level, these companies indulge in large scale production. This helps
them in effecting the economics of the large scale production. Consequently, the cost of production per
unit is reduced. The utility of this philosophy is apparent only when demand exceeds supply. Its greatest
drawback is that it is not always necessary that the customer every time purchases the cheap and easily
available goods or services.

2. Product Concept Those companies who believe in this philosophy are of the opinion that if the
quality of goods or services is of good standard, the customers can be easily attracted. The basis of this
thinking is that the customers get attracted towards the products of good quality. On the basis of this
philosophy or idea these companies direct their marketing efforts to increasing the quality of their
product. It is a firm belief of the followers of the product concept that the customers get attracted to the
products of good quality. This is not the absolute truth because it is not the only basis of buying goods.
The customers do take care of the price of the products, its availability, etc. A good quality product and
high price can upset the budget of a customer. Therefore, it can be said that only the quality of the
product is not the only way to the success of marketing.

3. Selling Concept Those companies who believe in this concept think that leaving alone the customers
will not help. Instead there is a need to attract the customers towards them. They think that goods are
not bought but they have to be sold. The basis of this thinking is that the customers can be attracted.
Keeping in view this concept these companies concentrate their marketing efforts towards educating and
attracting the customers. In such a case their main thinking is ‘selling what you have’. This concept offers
the idea that by repeated efforts one can sell-anything to the customers. This may be right for some
time, but you cannot do it for a long-time. If you succeed in enticing the customer once, he cannot be
won over every time. On the contrary, he will work for damaging your reputation. Therefore, it can be
asserted that this philosophy offers only a short-term advantage and is not for long-term gains.
 4. Marketing Concept Those companies who believe in this concept are of the opinion that success can
be achieved only through consumer satisfaction. The basis of this thinking is that only those
goods/service should be made available which the consumers want or desire and not the things which
you can do. In other words, they do not sell what they can make but they make what they can sell.
Keeping in mind this idea, these companies direct their marketing efforts to achieve consumer
satisfaction. In short, it can be said that it is a modern concept and by adopting it profit can be earned on
a long-term basis..

4. Societal Marketing Concept This concept stresses not only the customer satisfaction but also
gives importance to Consumer Welfare/Societal Welfare. This concept is almost a step further
than the marketing concept. Under this concept, it is believed that mere satisfaction of the
consumers would not help and the welfare of the whole society has to be kept in mind. For
example, if a company produces a vehicle which consumes less petrol but spreads pollution, it
will result in only consumer satisfaction and not the social welfare. Primarily two elements are
included under social welfare-high-level of human life and pollution free atmosphere. Therefore,
the companies believing in this concept direct all their marketing efforts towards the
achievement of consumer satisfaction and social welfare. In short, it can be said that this is the
latest concept of marketing.
MARKETING MIX : -Definition of Marketing Mix
According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's
(product, Price, Promotion, and Place), that every company has the option of adding,
subtracting, or modifying in order to create a desired marketing strategy" According to Principles
of Marketing, 14e, Kotler and Armstrong, 2012 - "The Marketing Mix is the set of tactical
marketing tools - Product, Price, Promotion, and Place - that the firm blends to produce the
response it wants in the target market.
" Meaning of Marketing Mix
The Marketing Mix is a marketing tool used by marketing professionals. It is often crucial when
determining product or brand's offering, and it is also called as 4P's (Product, Price, Promotion,
and Place) of marketing. However, in case of services of different nature the 4 P's have been
expanded to 7P's or 8P's. In recent times, giving more importance to customer a new concept
have been introduced, i.e. Concept of 4C's.
The Concept of 4C's is more customer-driven replacement of 4P's. According to Lauterborn's the
4C's are - Consumer, Cost, Communication, and Convenience. According to Shimizu's the 4C's are
-Commodity, Cost, Communication, and Channel

4P's - Producer-oriented Model of Marketing Mix •

Product - Products are offerings that a marketer offers to the target audience to satisfy their
needs and wants. Product can be tangible good or intangible service. Tangible products are
goods like - cellphone, television, or motor car, whereas intangible products are services like -
financial service in a bank, health treatment by a doctor, legal advice of a lawyer.
• Price - Price is the amount that is charged by marketer of his offerings or the amount that is
paid by consumer for the use or consumption of the product. Price is crucial in determining the
organization's profit and survival. Adjustments in price affects the demand and sales of the
product. Marketers are required to be aware of the customer perceived value of the product to
set the right price.
• Promotion - Promotion represents the different methods of communication that are used by
marketer to inform target audience about the product. promotion includes - advertising,
personal selling, public relation, and sales promotion.
• Place - Place or distribution refers to making the product available for customers at convenient
and accessible places. In case of services, the producer-oriented model of marketing mix is
consisting of 7P's. Including the above 4P's there are additional 3P's - Physical Evidence, People,
and Process. Physical evidence refers to elements like uniform of employees, signboards, and
etc. People refers to the employees of the organization comes in contact with the customers in
the process of marketing. Process refers to the systems and processes followed within
organization.

4C's - Consumer-oriented model of marketing Mix

• Consumer - In this model the Product is replaced by Consumer. Marketers focuses more on
consumer satisfaction. The product is designed and produced keeping in consideration the
requirements of consumer.
 • Cost - Price is replaced by Cost. Here the cost refers to the total cost of owning a product. It
includes cost to use the product, cost to change the product, and cost of not choosing the
competitor's product.
• Communication - Promotion is replaced by Communication. Communication includes
advertising, public relation, personal selling, and any method that can be used for proper, timely,
and accurate communication between marketer and consumer.
• Convenience - Place is replaced by Convenience. it focuses on ease of buying, convenience in
reaching to the store/product, and convenience in getting product information.

Marketing Strategy .
Marketing strategy is the comprehensive plan formulated particularly for achieving the
marketing objectives of the organization. It provides a blueprint for attaining these marketing
objectives. It is the building block of a marketing plan. It is designed after detailed marketing
research.
A marketing strategy helps an organization to concentrate it’s scarce resources on the best
possible opportunities so as to increase the sales.

“Strategic marketing management is concerned with how we will create value for
the customer
Asks two main questions
What is the organization’s main activity at a particular time? – Customer
Value
What are its primary goals and how will these be achieved? – how will this
value be delivered”
Strategic Planning is the managerial process of creating and maintaining a fit between
the organization’s objectives and resources and the evolving market opportunities.
 Also called Strategic Management Process
 All organizations have this
 Can be Formal or Informal
A marketing strategy is designed by:
1. Choosing the target market: By target market we mean to whom the organization wants to
sell its products. Not all the market segments are fruitful to an organization. There are certain
market segments which guarantee quick profits, there are certain segments which may be
having great potential but there may be high barriers to entry. A careful choice has to be made
by the organization. An indepth marketing research has to be done of the traits of the buyers
and the particular needs of the buyers in the target market.
2. Gathering the marketing mix: By marketing mix we mean how the organization proposes to
sell its products. The organization has to gather the four P’s of marketing in appropriate
combination. Gathering the marketing mix is a crucial part of marketing task. Various decisions
have to be made such as - What is the most appropriate mix of the four P’s in a given situation
What distribution channels are available and which one should be used What developmental
strategy should be used in the target market How should the price structure be designed
Importance of Marketing Strategy
Marketing strategy provides an organization an edge over it’s competitors. Strategy helps in
developing goods and services with best profit making potential.
Marketing strategy helps in discovering the areas affected by organizational growth and thereby
helps in creating an organizational plan to cater to the customer needs. It helps in fixing the right
price for organization’s goods and services based on information collected by market research.
Strategy ensures effective departmental co-ordination. It helps an organization to make optimum
utilization of its resources so as to provide a sales message to it’s target market.
A marketing strategy helps to fix the advertising budget in advance, and it also develops a
method which determines the scope of the plan, i.e., it determines the revenue generated by
the advertising plan. In short, a marketing strategy clearly explains how an organization reaches
it’s predetermined objectives.

Managing marketing effort.

Marketing efforts are the resources a company dedicates to promoting its products and
services. Through marketing activities, a company can create demand and interest in its items
and gain greater visibility with potential customers.
Types of Marketing Efforts
There are many effective ways to implement marketing plans. Some common and successful
marketing efforts include: •

Social media:
With the popularity of sites like Facebook, Twitter, Instagram, and Pinterest, social media is an
immediate and inexpensive way to connect with your audience. Let's imagine you are selling
accessories for luxury cars.
By targeting consumers who purchase and drive luxury cars, you can build a following of target
buyers that are your ideal audience. Once you have a connection to these shoppers, you can
educate them about your products and encourage them to make a purchase.
• Television and radio ads: Running ads can help you show your products quickly and easily to a
large audience. You can also target your ads to run on stations that appeal to your audience. For
instance, if you sell clothes and makeup to 18-25-year-old females, you can place your ad on
television stations that have young women as their target market. This helps you reach the
women who are most likely to purchase your products.
• Google and online ads: By placing ads online, you can reach people who use their computer or
phones to find information. For instance, you can place a Google ad for your luxury car
accessories and define the potential buyers you want to reach. When those people look for
something on Google, your ad may pop up and build interest for your car accessories.
A written document that acts as a g

Marketing Environment

The term Marketing Environment refers to the forces and factors that affects the organization
ability to built and maintain good relationship with its customers. Marketing environment
surrounds the organization and it impacts upon the organization. Marketers have to interact
with internal and external people at micro and macro level and builds internal and external
relationships.

The key elements of marketing environment are

1. Internal Environment, 2. Micro Environment, and 3. Macro Environment. Of
Internal Environment

Internal factors like men, machine, money, material, etc., on which marketing decision depends
consists internal marketing environment. The internal environment refers to the forces that are
within the organization and affects its ability to serve its customers. It includes marketing
managers, sales representatives, marketing budget, marketing plans, procedures, inventory,
logistics, and anything within organization which affects marketing decisions, and its
relationship with its customers.

Micro Environment

Individuals and organizations that are close to the marketing organization and directly impacts
its ability to serve its customers, makes Marketing Micro Environment. The micro environment
refers to the forces that are close to the marketing organization and directly impact the customer
experience. It includes the organization itself, its suppliers, marketing intermediaries, customers,
markets or segments, competitors, and publics. Happenings in micro environment is relatively
controllable for the marketing organization.

Macro Environment

Macro environment refers to all forces that are part of the larger society and affects the micro
environment. It includes demography, economy, politics, culture, technology, and natural forces.
Macro environment is less controllable.

Association of Marketing with Other Functional Areas

The marketing function within any organization does not exist in isolation. Therefore, it's
important to see how marketing connects with and permeates other functions within the
organization. In this next section let's consider how marketing interacts with research and
development, production/operations/logistics, human resources, IT and customer service.
Obviously, all functions within your organization should point towards the customer i.e. they are
customer oriented from the warehouseman that packs the order to the customer service team
member who answers any queries you might have. So let's look at these other functions and
their relationship with marketing.

Research and development

Research and development is the engine within an organization which generates new ideas,
innovations and creative new products and services. For example cell phone/mobile phone
manufacturers are in an industry that is ever changing and developing, and in order to survive
manufacturers need to continually research and develop new software and hardware to compete
in a very busy marketplace. Think about cell phones that were around three or four years ago
which are now completely obsolete.
The research and development process delivers new products and is continually innovating.
Innovative products and services usually result from a conscious and purposeful search for
innovation opportunities which are found only within a few situations. Peter Drucker (1999)
Research and development should be driven by the marketing concept. The needs of consumers
or potential consumers should be central to any new research and development in order to
deliver products that satisfy customer needs (or service of course).

The practical research and development is undertaken in central research facilities belonging to
companies, universities and sometimes to countries. Marketers would liaise with researchers and
engineers in order to make sure that customer needs are represented. Manufacturing processes
themselves could also be researched and developed based upon some aspects of the marketing
mix. For example, logistics (place/distribution/channel) could be researched in order to deliver
products more efficiently and effectively to customers.

Production/operations/logistics

As with research and development, the operations, production and logistics functions within
business need to work in cooperation with the marketing department. Operations include many
other activities such as warehousing, packaging and distribution. To an extent, operations also
includes production and manufacturing, as well as logistics.

Production is where goods and services are generated and made. For example an aircraft is
manufactured in a factory which is in effect how it is produced i.e. production. Logistics is
concerned with getting the product from production or warehousing, to retail or the consumer in
the most effective and efficient way.

Today logistics would include warehousing, trains, planes and lorries as well as technology used
for real-time tracking. Obviously marketers need to sell products and services that are currently
in stock or can be made within a reasonable time limit. An unworkable scenario for a business is
where marketers are attempting to increase sales of a product whereby the product cannot be
supplied. Perhaps there is a warehouse full of other products that our marketing campaign is
ignoring.

Human resources

Human Resource Management (HRM) is the function within your organization which overlooks
recruitment and selection, training, and the professional development of employees. Other
related functional responsibilities include well-being, employee motivation, health and safety,
performance management, and of course the function holds knowledge regarding the legal
aspects of human resources.

When you become a marketing manager you would use the HR department to help you recruit a
marketing assistant for example. They would help you with scoping out the job, a person profile,
a job description, and advertising the job. HR would help you to score and assess application
forms, and will organise the interviews. They may offer to assist at interview and will support
you as you make your job offer. You may also use HR to organise an induction for your new
employee. Of course there is the other side of the coin, where HR sometimes has to get tough
with underperforming employees.

Human resources Department also have a strategic role. Moving away from traditional
personnel management, human resources sees people as a valuable asset to your organization.
Say they will assist with a global approach to managing people and help to develop a workplace
culture and environment which focuses on mission and values. They also have an important
communications role, and this is one aspect of their function which is most closely related to
marketing.

For example the HR department may run a staff development programme which needs a
newsletter or a presence on your intranet. This is part of your internal marketing effort.

IT (websites, intranets and extranets)

If you're reading this lesson right now you are already familiar with IT or Information
Technology. To define it you need to consider elements such as computer software, information
systems, computer hardware (such as the screen you are looking at), and programming
languages. For our part is marketers we are concerned with how technology is used to treat
information i.e. how we get information, how we process it, how we store the information, and
then how we disseminate it again by voice, image or graphics. Obviously this is a huge field but
for our part we need to recognise the importance of websites, intranets and extranets to the
marketer. So here's a quick intro.

A website is an electronic object which is placed onto the Internet. Often websites are used by
businesses for a number of reasons such as to provide information to customers. So customers
can interact with the product, customers can buy a product, more importantly customers begin to
build a long-term relationship with the marketing company. Information Technology underpins
and supports the basis of Customer Relationship Management (CRM), a term which is
investigated in later lessons. An intranet is an internal website. An intranet is an IT supported
process which supplies up to-date information to employees of the business and other key
stakeholders.

For example European train operators use an intranet to give up-to-date information
about trains to people on the ground supporting customers.

An extranet is an internal website which is extended outside the organization, but it is not a
public website. An extranet takes one stage further and provides information directly to
customers/distributors/clients. Customers are able to check availability of stock and could check
purchase prices for a particular product.

For example, a car supermarket could check availability of cars from a wholesaler.

Customer service provision

Customer service provision is very much integrated into marketing. As with earlier lessons on
what is marketing?, the exchange process, customer satisfaction and the marketing concept,
customer service takes the needs of the customer as the central driver. So our customer service
function revolves around a series of activities which are designed to facilitate the exchange
process by making sure that customers are satisfied.
Today customer service provision can be located in a central office (in your home country or
overseas) or actually in the field where the product is consumed. For example, you may call a
software manufacturer for some advice and assistance. You may have a billing enquiry. You
might even wish to cancel a contract or make changes to it. The customer service provision
might be automated, it could be done solely online, or you might speak to a real person
especially if you have a complex or technical need. Customer service is supported by IT to make
the process of customer support more efficient and effective, and to capture and process data on
particular activities. So the marketer needs to make sure that he or she is working with the
customer service provision since it is a vital customer interface. The customer service provision
may also provide speedy and timely information about new or developing customer needs. For
example if you have a promotion which has just been launched you can use the customer service
functions to help you check for early signs of success.

Finance department

The marketing department will need to work closely with the finance department to ensure that:
There is an adequate budget to meet the needs for research, promotion and distribution. The
finance department has a whole organization brief to ensure that all the business operates within
its financial capabilities. They will want all departments to work within their allocated budgets.
Like all departments, marketing may wish to overspend if profitable marketing opportunities
emerge over the year. The marketing department is likely to concentrate on sales volume and
building market share, while the finance department may be more focused on cash flow,
covering costs and paying back investment as quickly as possible.

Market Segmentation:

Definition : Divide a potential market into distinct groups of buyers with relatively similar
product needs, characteristics and behavior.

Wendell R. Smith was probably the first one who introduced the concept of market
segmentation, published in his article “Product Differentiation and Market Segmentation as
Alternative Marketing Strategies

According to the Smith article, he had observed “many examples of segmentation” in the
marketplace and considered it a natural force. Nowadays market segmentation is shifting
towards mass customization that can help marketers to increase the rate of conversion. Mass
customization means reaching customers at a personal level and provide the products and
services and develop customized marketing mix strategies according to segment needs and
wants.

Different Levels of Market Segmentation

Marketers subdivide markets into segments, so they can do focus on marketing plans. Each
Level of market segmentation determines the strategy a company will follow to promote,
distribute and position its product in the market and respectively target audience or its
customers. Before developing a marketing plan, one must know the what are the levels of
market segmentation

Mass Marketing In Segmentation,

Mass marketing refers to the strategy of targeting the entire potential customer market by means
of a single marketing message. The marketing strategy used in this segmentation does not target
the specific requirements or needs of customers. Mass marketing strategy, instead of focusing on
a subset of customers, focuses on the entire market segment that can be a probable customer of a
product. An example of mass marketing strategy is of Baygon cockroach spray or Mortein
mosquito repellent coils that target all its potential customers through a single marketing
message

Segment Marketing

Segment marketing refers to a strategy where the company divides its target audience into
different segments based on their unique needs and requirements. This way the company targets
different messages to different segments, appealing them towards the unique features the
product offers. This strategy creates product differentiation for customers with similar needs and
preferences, based on their gender, age, income and location.

The example of segment marketing within clothing industry may be men, women, casual,
fashionable and business clothing segments.

Niche Marketing

This strategy of marketing focuses on a narrower customer segmentation. Customers may want
or desire a product that is not met completely by the products offered in a market. When
companies move forward and develop highly specialized products to offer these customers their
specific needs, they offer distinct products in a market that caters to specific customer segments
only.

Mountain bikes are an example of a niche marketing segment.

An example of niche marketing is luxury cars that are very high priced and offer exceptional
features such as high speed, customized look, etc. Since these cars are very expensive and
limited in number, the niche market for these vehicles targets rich, car lovers who are interested
in the unique features and has the financial capability to buy them

Types of Market Segmentation

Market segmentation process is imperative for marketers as it allows them to efficiently design
and convey messages to target market. It allows marketing budgets to be utilized effectively
through reaching to potential customers that will ultimately transform into leads, instead of
being wasted on impressions that will never convert.

Types of market segmentation

Geographic Segmentation

Geographic segmentation refers to divide markets based on geography. Considering where your
potential customer is located, some companies market their goods with the specific requirement
to specific areas. For example, LG Electronics, the leading electrical appliances company
markets for its heaters in cold geographical areas whereas the same company markets for Air
Conditioners in hot geographical areas.

Demographic Segmentation
This is one of the widest market segmentation, marketers divide customer population based on
different variables in this segmentation. For example, segmentation based on age, gender,
income, religion, nationality, race, occupation, family size, etc is taken up by companies to
target potential customers. An example of demographic segmentation is of cereal giant
Kellogg’s that offers different cereal brands for kids and adults, healthy eaters and weight
watchers, etc

Psychographic Segmentation

This type of market segmentation targets the lifestyle, activities, interests and opinions of
potential customers. Psychographic segmentation considers the psychological aspect of how the
potential customer responds to a product. For example, Mountain Dew uses a marketing strategy
that promotes its product through associating masculinity and a daring personality with the
drinkers of the brand, targeting young individuals who crave for such a personality and associate
themselves with it. Branded clothing lines such as Zara involve in psychographic segmentation,
offering clothing range for individuals that follow a trendy and chic lifestyle.

Behavioral Segmentation

Behavioral segmentation refers to customer segmentation based on how they use, behave or
make decisions related to a product. Here I am giving you an example of behavioral market
segmentation is of soap bars. Young girls will prefer using Dove as it is a beauty soap bar,
whereas sports enthusiast will prefer using the Zest soap bar. While girls will prefer drinks such
as Minute Maid or Rani, owing to their general behavior of preferring healthy and natural
drinks, boys will prefer energy drinks such as Lucozade or Sting, owed to their decision of
likeness towards energy drinks.

Examples of Market Segmentation

Market segmentation is the most common activity of every business organization. Marketers
and Business owners cannot focus on mass marketing with one marketing strategy. Here are a
few examples of market segmentation for better understanding this point.

Fast food restaurant should target teenagers and younger couples if target older people it will be
a mistake and will affect their revenue generation. If marketing Lingerie and beauty products
like “Victoria Secret” focus on young, successful and working-class women. Sports brand, for
example, Nike and Lululemon segment the market and target health conscious, athletes, gym
lovers and sportsmen and sportswomen.

Market segmentation is the best strategy to increase the conversion rate and cut down on the
product cost. It helps marketers to always target niche market and attain your objectives.

Segmenting Consumer Markets

Demographic Segmentation The most common way to identify a consumer market is by

demographic segmentation, which refers to the criteria most businesses use to understand how
groups of their target market are different from one another.

The criteria for demographic segmentation include:

Gender, Age, Family status

 Sex, Income, Education

Religion, Ethnicity & Nationality

It's essential to segment your target market by demographics because these criteria affect their
individual needs. For example, a man in his early 30s has different preferences than a woman in
her late 60s. If your business sells shoes, you cannot appeal to both demographic segments in the
same way.

The young man may be interested in athletic name-brand shoes, while the older woman may
want comfortable sandals with arch support. The marketing you use to reach both demographic
segments needs to take their requirements into account.

In some cases, people from different demographics may have the same needs, which is why it's
critical to understand your consumer on a granular level. For example, the customers of a bakery
may differ in religion, nationality, education and occupation, but they may all desire the same
baked goods and react the same way to the marketing.

Geographic Segmentation

Another way to segment the consumer market is geographically. Sometimes, this is seen as a
subcategory of demographic segmentation. Many businesses and marketers treat this category as
major because customers’ geographic criteria can significantly affect their needs as consumers.
Geographic segmentation elements include:

Region or area, such as country, state, province, county, town or city Size, such as population or
population density Climate, such as weather patterns Consumers from different geographic areas
have varying needs.

An online retailer who sells swimwear to customers across the United States and Canada may
need to vary the marketing to those consumers who live in colder climates. Many parts of
Canada and the northern United States have a beach season that only lasts for a few months. As a
result, the retailer needs to focus promotional efforts during this time in those areas, while in the
southern United States, they can run year-round promotions.

Similarly, a corner store that operates in a rural area with a sparse population uses different
marketing and sales tactics than a corner store on a busy metropolitan street with a high
population density. In these market segments examples, businesses need to understand how
geographic segmentation criteria affect the needs of their consumers.

Psychographic Segmentation

While demographic and geographic segmentation look at many tangible criteria, psychographic
segmentation is about how consumers live their lives. Some of these qualities are intangible and
difficult to research. Conduct customer surveys to learn more about their psychographic
attributes, which include:

Values, such as what they believe to be important to them, including family, community, money
or success
 Attitudes and opinions, such as how they feel about a political party or toward a key social issue
Interests, such as what kinds of movies they watch or what their hobbies are Activities, such as
whether they play a sport or instrument or enjoy a cooking a particular kind of cuisine.

A consumer’s psychographic qualities affect which products and services they buy. For example,
consumers who strongly value environmental sustainability may look for products that are
manufactured using recycled materials. They may choose to buy only from businesses with a
formal program for reducing their carbon footprint. Some consumers only support companies
that are in line with their political or social beliefs.

For other consumers, their interests and activities determine the types of products and services
they buy. For example, an avid basketball player may want to buy basketball shoes and jerseys,
while a musician may be interested in specific instruments. By understanding a segment's values,
attitudes, interests and activities, businesses can market the right products to them in the right
way.

Behavioral Segmentation

While demographic, geographic and psychographic traits include specific qualities about your
customers and their needs, behavioral segmentation is about how your customers feel about your
products. According to Net MBA, this is a good starting point for market segmentation because
it is directly related to your business

Behavioral segmentation includes:

Benefits your consumers are looking for from the product Whether they have previously bought
the product How often they need the product or how often they use the product How ready they
are to buy the product right now Whether they feel loyal toward your brand When they buy the
product, such as on holidays or for specific milestones The way you market to a loyal customer
is different from how you market to someone who knows nothing about your business. Use
behavioral segmentation to understand what your consumers need and what they think of your
business. If you approach loyal customers with basic information about your products, they may
feel insulted you think they don’t know it already. Similarly, if you don't begin by talking about
the benefits of your product to a new prospect, they will not know what makes your solution
better than a competitor's.

Creating Effective Consumer Market Segments

There are endless ways to segment your consumer markets, so how do you know which
segments to use? Segmenting your target market ineffectively may mean your marketing
message does not resonate with your audience. Qualtrics suggests doing a market segment
analysis to see if you have the right criteria. Consider these five elements when segmenting your
market:

Is your segment measurable:

You need to be able to determine how much your consumer market segment will spend on your
products and when they will buy. If this is something you cannot estimate, it won't be easy to
develop sales and marketing plans.
Is your segment accessible:

Segments of the consumer market you're targeting should be easy for your business to reach. For
example, if you have a potential market segment that does not use technology but all of your
company's marketing is currently done online, this may not be the best segment for you to target.

Is your segment substantial:

Your market segment needs to be a sufficient size to be worth it for your business to cater to
them. If it is too small, you won't see the kind of return you need.

Does your segment have unique needs:

If your market segment has the same requirements as another market segment, you don't need to
separate them. They need to be diverse enough to require tailored marketing.

Is your segment durable:

If your consumer market segment is volatile and changes frequently, you may not be able to keep
up with their needs. Using Market Segmentation for Best Results When you've developed
segments of the consumer market you want to target, you must put your plans into action. Single
Grain recommends creating buyer personas and ensuring your marketing and sales teams are
familiar with them.

Develop personalized messaging for each persona that takes into account their pain points and
challenges and includes their needs. Where possible, use personalization to show your consumers
you understand them and can help with their problems.

Requirement for effective segmentation

The Requirements for Effective Market Segmentation Categories: The requirements for effective
market segmentation are as follows:

a) Measurable: The size, needs, purchasing power, and characteristics of the customers in the
segment should be measurable. Quantification should be possible.

b) Divisible: The segments should be differentiable. There must be clear-cut basis for dividing
customers into meaningful homogeneous groups. They should respond differently to different
marketing mixes. There should be differences in buyer's needs, characteristics and behaviour for
dividing in groups.

c) Accessible: The segment should be reachable and serviceable. It should be accessible through
existing marketing institutions, such as distribution channels, advertising media and sales force.
There should be middlemen to distribute the products.

d) Substantial: The segment should be substantial. It should be large enough in terms of

customers and profit potential. IT should justify the costs of developing a separate marketing
mix.

e) Actionable: It should be actionable for marketing purposes. Organizations should be able to

design and implement the marketing mix to serve the chosen segment.
Market Targeting,

Market targeting is a process of selecting the target market from the entire market. Target market
consists of group/groups of buyers to whom the company wants to satisfy or for whom product is
manufactured, price is set, promotion efforts are made, and distribution network is prepared.

A company cannot concentrate on all the segments of the market. The company can satisfy only
limited segments. The segments the company wants to serve are called the target market, and the
process of selecting the target market is referred as market targeting. Market segmentation results
into dividing total market into various segments or parts.

Such segments may be on the basis of consumer characteristics or product characteristics or

both. Once the market is divided into various segments, the company has to evaluate various
segments and decide how many and which ones to target. It is simply an act or process of
selecting a target market.

However, we can define the term as:

1. We can define the term as: Market targeting is a process of selecting the target market from
the entire market. Target market consists of group/groups of buyers to whom the company wants
to satisfy or for whom product is manufactured, price is set, promotion efforts are made, and
distribution network is prepared.

2. It involves basically two actions – evaluation of segments and selection of the appropriate
market segments. In this relation, market targeting can be defined as: Market targeting is an act
of evaluating and selecting market segments.

3. Finally, we define market targeting as: Market targeting consists of dividing the total market
into segments, evaluating these segments, and selecting the appropriate segments as the target
market.

Procedure of Market Targeting:

Market targeting procedure consists of two steps:

1.. Evaluating Market Segments: Evaluation of market segments calls for measuring suitability
of segments. The segments are evaluated with certain relevant criteria to determine their
feasibility.

To determine overall attractiveness/suitability of the segment, two factors are used:

i. Attractiveness of Segment: In order to determine attractiveness of the segment, the

company must think on characteristics/conditions which reflect its attractiveness, such as
size, profitability, measurability, accessibility, actionable, potential for growth, scale of
economy, differentiability, etc. These characteristics help decide whether the segment is
attractive.
ii. ii. Objectives and Resources of Company: The firm must consider whether the segment
suit the marketing objectives. Similarly, the firm must consider its resource capacity. The
material, technological, and human resources are taken into account. The segment must
be within resource capacity of the firm.
2. Selecting Market Segments:

When the evaluation of segments is over, the company has to decide in which market
segments to enter. That is, the company decides on which and how many segments to enter.
This task is related with selecting the target market. Target market consists of various groups
of buyers to whom company wants to sell the product; each tends to be similar in needs or
characteristics. Philip Kotler describes five alternative patterns to select the target market.
Selection of a suitable option depends on situations prevailing inside and outside the
company. Alternative Strategies (Methods) for Market Targeting: Basically five alternative
patterns/strategies are available. Company may opt for any one of the following strategies
for market targeting based on the situations:

Single Segment Concentration:

It is the simplest case. The company selects only a single segment as target market and
offers a single product. Here, product is one; segment is one. For example, a company may
select only higher income segment to serve from various segments based on income, such as
poor, middleclass, elite class, etc. All the product items produced by the company are meant
for only a single segment.

Single segment offers some merits like:

(1) Company can gain strong knowledge of segment’s needs and can achieve a strong
market position in the segment.

(2) Company can specialize its production, distribution, and promotion.

(3) Company, by capturing leadership in the segment, can earn higher return on its
investment.

1.It suffers from following demerits like: (1) Competitor may invade the segment and can
shake company’s position. (2) Company has to pay high costs for change in fashion, habit,
and attitude. Company may not survive as risk cannot be diversified. Mostly, company
prefers to operate in more segments. Serving more segments minimizes the degree of risk.

2. Selective Specialization: In this option, the company selects a number of segments. A

company selects several segments and sells different products to each of the segments. Here,
company selects many segments to serve them with many products. All such segments are
attractive and appropriate with firm’s objectives and resources. There may be little or no
synergy among the segments. Every segment is capable to promise the profits. This multi-
segment coverage strategy has the advantage of diversifying the firm’s risk. Firm can earn
money from other segments if one or two segments seem unattractive. For example, a
company may concentrate on all the income groups to serve.

3. Product Specialization: In this alternative, a company makes a specific product, which can
be sold to several segments. Here, product is one, but segments are many. Company offers
different models and varieties to meet needs of different segments. The major benefit is that
the company can build a strong reputation in the specific product area. But, the risk is that
product may be replaced by an entirely new technology. Many ready-made garment
companies prefer this strategy.
4. Market Specialization: This strategy consists of serving many needs of a particular
segment. Here, products are many but the segment is one. The firm can gain a strong
reputation by specializing in serving the specific segment. Company provides all new
products that the group can feasibly use. But, reduced size of market, reduced purchase
capacity of the segment, or the entry of competitors with superior products range may affect
the company’s position.

5. Full Market Coverage: In this strategy, a company attempts to serve all the customer
groups with all the products they need. Here, all the needs of all the segments are served.
Only very large firm with overall capacity can undertake a full market coverage strategy.

Philip Kotler identifies two broad ways for full market coverage strategy as under:

Undifferentiated Marketing:

Company sells the same products to all the customer groups. It does not consider difference
among buyers. Product and marketing programme remain common for all the segments. The
firm relies on mass production, mass distribution, and mass advertising. So, it can
considerably reduce production, distribution, and promotional costs. Similarly, reduced costs
result into low price and the price-sensitive consumers can be attracted. This method is
followed by pharmaceutical companies. However, many experts and practicing managers
have expressed strong doubts about the strategy. It is erroneous to believe that all the
segments have similar needs. It is a rare case. Such strategy may invite competition to serve
larger groups of buyers, and smaller groups are neglected. People, in different segments,
differ significantly in terms of needs, preference, and advertising appeal.

Differentiated Marketing:

Here, company operates in several segments and designs different marketing programmes
for each of the segments. Various groups of customers are targeted by several types of
products and marketing strategies. It is based on the notion that each group needs different
products. This strategy is used by the most of automobile companies. This strategy creates
more total sales, but costs of doing business also on increase.

Following costs are likely to be higher in differentiated marketing strategy:

i. Marketing research cost

ii. ii. Administrative costs
iii. iii. Manufacturing costs
iv. iv. Inventory costs
v. v. Promotional costs vi. Product modification costs

Here, costs and sales both increase. So, profitability is doubtful. However, it is less
risky. Loss in one segment can be offset against profitable segments. Most of
companies prefer this option. Thus, market targeting is an essential aspect of
marketing programme. A manager needs a lot of experience, knowledge, and
expertise to take decision on target market. The alternative to be used depends upon a
large number of internal and external variables. Careful and objective analysis of
these variables can assist in selecting target market.

Product Positioning,
Positioning Strategies. Positioning strategy can be conceived and developed in a variety of
ways. It can be derived from the object attributes, competition, application, the types of
consumers involved, or the characteristics of the product class. All these attributes represent
a different approach in developing positioning strategy, even though all of them have the
common objective of projecting a favorable image in the minds of the consumers or
audience. There are seven approaches to positioning strategy:

1) Using Product characteristics or Buyer Benefits as a positioning This strategy

basically focuses upon the characteristics of the product or customer benefits. For
example if I say Imported items it basically tell or illustrate a variety of product
characteristics such as durability, economy or reliability etc. Lets take an example of
motorbikes some are emphasizing on fuel economy, some on power, looks and others
stress on their durability. Hero Cycles Ltd. positions first, emphasizing durability and
style for its cycle.
2) Pricing as a positioning Quality Approach or Positioning by Price-Quality – Lets
take an example and understand this approach just suppose you have to go and buy a pair
of jeans, as soon as you enter in the shop you will find different price rage jeans in the
showroom say price ranging from 350 rupees to 2000 rupees. As soon as look at the
jeans of 350 Rupees you say that it is not good in quality.
3) Positioning based on Use or Application Lets understand this with the help of an
example like Nescafe Coffee for many years positioned it self as a winter product and
advertised mainly in winter but the introduction of cold coffee has developed a
positioning strategy for the summer months also. Basically this type of positioning-by-
use represents a second or third position for the brand, such type of positioning is done
deliberately to expand the brand’s market. If you are introducing new uses of the product
that will automatically expand the brand’s market.
4) Positioning strategy based on Product Process Another positioning approach is to
associate the product with its users or a class of users. Makes of casual clothing like
jeans have introduced ‘designer labels’ to develop a fashion image. In this case the
expectation is that the model or personality will influence the product’s image by
reflecting the characteristics and image of the model or personality communicated as a
product user.

Let’s not forget that Johnson and Johnson repositioned its shampoo from one used for
babies to one used by people who wash their hair frequently and therefore need a mild
people who wash their hair frequently and therefore need a mild shampoo. This
repositioning resulted in a market share.

5. Positioning based on Product Class In some product class we have to make sure critical
positioning decisions for example, freeze dried coffee needed to positions itself with
respect to regular and instant coffee and similarly in case of dried milk makers came out
with instant breakfast positioned as a breakfast substitute and virtually identical product
positioned as a dietary meal substitute.
6. Positioning based on Cultural Symbols In today’s world many advertisers are using
deeply entrenched cultural symbols to differentiate their brands from that of competitors.
The essential task is to identify something that is very meaningful to people that other
competitors are not using and associate this brand with that symbol.
7. Positioning based on Competitor In this type of positioning strategy, an implicit or
explicit frame of reference is one or more competitors. In some cases, reference
competitor(s) can be the dominant aspect of the positioning strategy of the firm, the firm
either uses the same of similar positioning strategy as used by the competitors or the
advertiser uses a new strategy taking the competitors’ positioning strategy as the base.
 Personal Selling:

Personal Selling in Marketing involves direct. Face to face or virtual interaction between
a salesperson and potential customer to build relationship, understand needs, and
ultimately persuade them to purchase a product or service

Personal selling is a marketing technique that involves direct communication with

potential customers to make a sale.

Goals: Build relationship, build trust and make sales

How it works: Sales people meet with customers to learn their needs and offer solutions

Benefits: Improves customer satisfaction, builds brand awareness and can be especially
effective for complex products

Challenges: Can be time consuming and resource intensive.

Process of Personal Selling:

Prospecting: Identifying the potential customers

Preparation: Preparing for the sales call

Approach: Approaching the identified customers or potential buyer .

Presentation: Presenting the profile of the product, company , about on time service and post
purchase services.

Handling the objections: Addressing the customer concern like clarifying the doubts and
convincing the customer to buy the product.

Closing; Negotiating terms to close the deal.

Indusrial Market

such as need recognition, information search, evaluation, purchase decision, and post purchase
behavior. But, in industrial markets the buying decision making process includes observable
sequential stages involving many people in the buying organisation. The understanding of these
steps/phases of buying-decision making is helpful to an industrial marketer to develop an
appropriate selling strategy.

The purchasing activities of industrial buyers consist of various steps/phases in buying decision
making process. The importance of each step depends upon the type of buying situation. The
industrial marketers should understand both (step in decision-making process and the type of
buying situations) to market the product or service. In 1967, Robinson, Faris, and Wind
developed a process “buy-phases” having eight steps in buying-decision process in industrial
market.

These phases or steps in industrial buying process are elaborated as

1. Recognition of Need of Industrial Buyer

A smart marketer recognizes the need/problem of industrial buyer originated within the
firm. If the material supplied by the existing supplier is not satisfactory in terms of quality,
or the material is not available as per requirement, or the machine supplied by him breaks
down too often, the buying organisation recognizes the problem. If an industrial marketer
identifies a problem in the buying organisation and suggests how the problem could be
solved, there will be a better possibility of it being selected as a supplier.

2. Determination of the Characteristics and Quantity of Needed Product

If the problem is recognized within or outside the buying organisation, then the buying firm
will try to answer questions such as: What type of products or services to be considered?
What quantity of the product needed? and so on. For technical products, the technical
departments (R&D, industrial engineering, production, or quality control) will suggest
general solutions of the needed product. For non-technical goods or services, either the user
department or purchase department may suggest products or services, based on experience
and also the quantity required to solve the problem. Nevertheless, if the required information
is not available internally within the buying organization, the same can be obtained from the
outside sources.

3. Development of Specification of Needed Product Stage 2 and 3 are closely related.

After the general solution to the problem is determined in the second phase, the buying
organisation, in the third stage, develops a precise statement of the specifications or
characteristics of the product or service needed. During this stage the purchase department
takes the help of their technical personnel, or if required, outside sources such as suppliers or
consultants. Industrial marketers have a great opportunity to get involved at this stage by
helping the buyer organisation to develop product specifications and characteristics. It would
give a definite advantage by ensuring that the needed product includes his or her company’s
product characteristics and specifications.

4. Search the Qualified Potential Suppliers

In this stage, the buying organisation searches for acceptable suppliers or vendors. Firstly,
they have to obtain information about all available suppliers and secondly, they have to
 decide the qualifying suppliers. The search for potential suppliers is based on the various
sources of information like trade journals, sales calls, work-of-mouth, catalogues, trade
shows, industrial directories. The qualifications of acceptable supplies may depend on the
type of buying organization such as government undertaking, private sector commercial
organisation, or institutions, and the buying situation, and the decision-making members.
Furthermore, the factors like quality of product or service, reliability in delivery, and service
are considered in qualifications of suppliers.

5 .Obtaining and Analyzing Supplier Proposals

If the qualified suppliers are decided then the buying organisation obtains the proposals by
sending enquiries to the qualified suppliers. A supplier’s proposal can be in the form of a
formal offer, quotation, or a formal bid, submitted by the supplier to the buying organisation.
It must include the product specification, price, delivery period, payment terms, taxes and
duties applicable, transportation cost (or freight), cost of transit insurance, and any other
relevant cost or free service provided. For purchases of routine products or services, the
stages 4 and 5 may occur simultaneously, as the buyer may contact the qualified suppliers to
get the latest information on prices and delivery periods. For technically complex products
and services, a lot of time is spent in analyzing proposals in terms of comparisons on
products, services, deliveries, and the landed costs: includes the price after discount plus
excise duty, sales tax, freight, and insurance.

6. Evaluation of Proposals and Selection of Suppliers

The industrial buyers evaluate the proposals of competing suppliers and selects one or more
suppliers. Further negotiations may continue with selected suppliers on prices, payment
terms, deliveries, and so on. The decision makers in the buying organization may evaluate
each supplier on a set of agreed-upon attributes or factors. Each supplier is evaluated on
each attribute by giving a weightage to each attribute proportionately or on rating scale
basis. The supplier(s) who get the highest total score receives the business or the order from
the buying organisation. If a buying firm faces a make-or-buy decision, the supplier’s
proposals are compared with the cost of producing the needed item within the buying
organization. If it is decided to make the item within the buying organization, the buying
process is stopped at this stage.

7. Routine Order Selection

In this stage the procedure of exchange of goods and services between a buyer and a seller is
worked out. The activities include placement of orders (i.e. purchase orders) with the
selected suppliers, the quantity to be purchased from each supplier, frequency of order
placement by buyers and delivery schedules to be adhered to by the supplier, schedule, and
the payment terms to be adhered to by the buyer. The user department would not be satisfied
until the supplier delivers the required item as per delivery schedule, and with acceptable
quality.

8. Performance Feedback and Post-Purchase Evaluation

In this final phase a formal or informal review regarding the performance of each supplier
(or vendor) takes place. The user department gives a feedback on whether the purchased
item solved the problem or not. If not, the members of the decision-making unit review their
earlier decision and decide to give a chance to the previously rejected supplier. The
industrial vendor should recognize that marketing effort is no over after the order is
received. He or she must check the feedback and evaluation process in the customer (buyer)
organisation. In particular, the industrial marketer must monitor the user satisfaction levels
or complaints so that immediate corrective action can be taken before a major damage. In
fact, a quick response to customers’ complaints can result in good buyer-seller relationship.
The type of products, the phase of the buying-decision making process of customer firms,
and the purchasing situations also influence the marketing strategy of industrial seller.

Concepts of Green Marketing:

Here, the term ‘green’ is indicative of purity. Green means pure in quality and fair or just in
dealing. For example, green advertising means advertising without adverse impact on
society. Green message means matured and neutral facts, free from exaggeration or
ambiguity. Green marketing is highly debated topic for lay people to highly professional
groups.

Concept of green marketing concerns with protection of ecological environment. Modern

marketing has created a lot of problems. Growth in marketing activities resulted into rapid
economic growth, mass production with the use of advanced technology, comfortable and
luxurious life, style, severe competition, use of unhealthy marketing tactics and techniques
to attract customers, exaggeration in advertising, liberalization and globalization, creation of
multinational companies, retailing and distribution by giant MNCs, etc., created many
problems

Basically, green marketing concerns with three aspects:

1. Promotion of production and consummation of pure/quality products,

2. Fair and just dealing with customers and society,

3. Protection of ecological environment.

Global ecological imbalance and global warming (also global cooling) have called upon
environmentalists, scientists, social organisations, and alert common men to initiate the
concrete efforts to stop further deterioration of ecological environment. The World Bank, the
SAARC, the UNO, the WHO, and other globally influential organisations have started their
efforts to promote and practice green marketing. The world environment summit at
Copenhagen (2009) is the mega event that shows the seriousness of ecological imbalance.

To increase awareness, 5th June is declared as the World Environment Day. Green
marketing emphases on protection of long-term welfare of consumers and society by
production and use of pure, useful, and high quality products without any adverse effect on
the environment. Mass media have started their campaign for protecting the earth from
further deterioration. Worldwide efforts are made to conserve natural water resources.
 Thus, green marketing is a marketing philosophy that promotes production and selling of
pure (eco-friendly) products with protection of ecological balance. Green marketing involves
multiple activities. Green Marketing encourages production of pure products by pure
technology, conservation of energy, preservation of environment, minimum use of natural
resources, and more use of natural foods instead of processed foods. Efforts of people, social
organisations, firms, and governments in this regard can be said as green marketing efforts.

Green marketing raises the voice against production, consumption, and/or disposal of such
products that anyway harm consumers, the society, and the environment. It is necessary that
businessmen and users should refrain from harmful products.

Impacts or Importance of Green Marketing: Green marketing affects positively the health of
people and the ecological environment. People are aware of pure products and pure methods
of producing, using, and disposing the products. It encourages integrated efforts for purity in
production and consumption as well.

We can witness following impacts of green marketing:

1. Now, people are insisting pure products – edible items, fruits, and vegetables based on
organic farming. The number of people seeking vegetarian food is on rise.
2. Reducing use of plastics and plastic-based products.
3. Increased consumption of herbal products instead of processed products.
4. Recommending use of leaves instead of plastic pieces; jute and cloth bags instead of
plastic carrying bags.
5. Increasing use of bio-fertilizers (made of agro-wastes and wormy-composed) instead of
chemical fertilizers (i.e. organic farming), and minimum use of pesticides.
6. Worldwide efforts to recycle wastes of consumer and industrial products.
7. Increased use of herbal medicines, natural therapy, and Yoga.
8. Strict provisions to protect forests, flora and fauna, protection of the rivers, lakes and
seas from pollutions.
9. Global restrictions on production and use of harmful weapons, atomic tests, etc. Various
organisations of several countries have formulated provisions for protecting ecological
balance.
10. More emphasis on social and environmental accountability of producers.

11. Imposing strict norms for pollution control. Consideration of pollution control efforts
and eco-technology in awarding IS), ISO 9000, or ISO 14000 certificates and other awards.

12. Declaration of 5th June as the World Environment Day.

MarketingAudit&control

Definition: The Marketing Audit refers to the comprehensive, systematic, analysis,

evaluation and the interpretation of the business marketing environment, both internal
and external, its goals, objectives, strategies, principles to ascertain the areas of problem
and opportunities and to recommend a plan of action to enhance the firm’s marketing
performance.
he marketing audit is generally conducted by a third person, not a member of an
organization.

The firm conducting the Marketing Audit should keep the following points in mind:

The Audit should be Comprehensive, i.e. it should cover all the areas of marketing where
the problem persists and do not take a single marketing problem under the consideration.
The Audit should be Systematic, i.e. an orderly analysis and evaluation of firm’s micro
& macro environment, marketing principles, objectives, strategies and other operations
that directly or indirectly influences the firm’s marketing performance.

The audit should be Independent; the marketing audit can be conducted in six ways: self
audit, audit from across, audit from above, company auditing office, company task-force
audit, and outsider audit.

The best audit is the outsider audit; wherein the auditor is the external party to an
organization who works independently and is not partial to anyone.

The audit should be Periodical; generally, the companies conduct the marketing audit
when some problem arises in the marketing operations. But it is recommended to have a
regular marketing audit so that that problem can be rectified at its source.

Components of Marketing Audit

Macro-Environment Audit: It includes all the factors outside the firm that influences the
marketing performance.

These factors are Demographic, Economic, Environmental, Political, and Cultural.

2. Task Environment Audit: The factors closely associated with the firm such as
Markets, Customers, Competitors, Distributors and Retailers, Facilitators and Marketing
Firms, Public etc.that affects the efficiency of the marketing programs.

3. Marketing Strategy Audit: Checking the feasibility of Business Mission, Marketing

Objectives and Goals and Marketing Strategies that have a direct impact on the firm’s
marketing performance.

4. Marketing Organization Audit: Evaluating the performance of staff at different levels

of hierarchy.

5. Marketing Systems Audit: Maintaining and updating several marketing systems such
as Marketing Information System, Marketing Planning System, Marketing Control
System and New-Product Development System.

6. Marketing Productivity Audit: Evaluating the performance of the Marketing activities

in terms of Profitability and Cost-Effectiveness.

7. Marketing Function Audit: Keeping a check on firm’s core competencies such as

Product, Price, Distribution, Marketing Communication and Sales Force.
Thus, the marketing audit helps to determine how well a firm’s marketing department is
carrying out the marketing activities. And how much it is adding to the overall
performance of the organization

LOGISTICS AND SUPPLY CHAIN MANAGEMENT

LOGISTICS MEANING
Logistics is the process of planning and executing the perfect transportation and storage
of goods from the point of origin to the production of consumption

The aim of Logistics is to meet customer requirements in a timely cost-effective manner.

Definition: Logistics is the part of supply chain management that deals with the efficient
forward and reverse flow of goods, services and related information from the point of
origin to the point of consumption according to the needs of the customers.

Historical Evolution:
1. Military Origins The term "logistics" originated from military operations. o Focus:
Supplying troops with equipment, food, and ammunition during wars. o Logistics
determined success in battles due to timely and strategic resource allocation.
2. Post-War Industrial Era (1950s–70s) Businesses began applying logistics to supply
goods efficiently. o Focus on physical distribution: transportation and warehousing.
3. Emergence of Integrated Logistics (1980s–90s) Integration of procurement, inventory,
transportation, and warehousing. o Just-In-Time (JIT) systems popularized. o Technology
like barcoding and early ERP systems enhanced efficiency.
4. Modern Logistics (2000s–Present) Globalization and digital transformation. o Real-
time tracking, automation, robotics, and data analytics. o Strategic importance for
competitive advantage.
Nature and Importance of Logistics
Nature of Logistics: • Process-Oriented: Involves planning, execution, and control.
• Cross-Functional: Connects purchasing, production, marketing, and customer service.
• Customer-Centric: Designed to meet customer expectations effectively.

Importance of Logistics
: 1. Customer Satisfaction o On-time delivery, correct order fulfilment, and
responsiveness. Enhances brand reputation and customer loyalty.
2. Cost Efficiency Reduces wastage, minimizes holding and transportation costs. o
Streamlined operations improve profitability.
3. Competitive Advantage Faster delivery and reliable service can differentiate a
business. o Example: Amazon’s superior logistics creates market dominance.
4. Supply Chain Optimization Improves coordination among suppliers, manufacturers,
and retailers. Results in lower lead times and better inventory control.
 5. Adaptability and Resilience Effective logistics systems respond quickly to
disruptions. Crucial in crisis situations (e.g., pandemics, natural disasters).

SUPPLY CHAIN MANAGEMENT: -Meaning

Supply Chain Management is the coordination of a business’s entire production flow

from sourcing raw materials to delivering a finished product aiming to optimize
efficiency, reduce costs and improve customer satisfaction.

SCM involves managing the flow of goods, data, finance related to a product or service
from the procurement of raw materials to the delivery of the product at its final
destination.

SCM is the coordination of all activities involved in sourcing, producing, and delivering
goods. It connects suppliers, manufacturers, warehouses, retailers, and customers.
Efficient SCM minimizes costs, enhances speed, and improves quality. It involves
demand forecasting, procurement, logistics, and information sharing.
Example: Toyota’s supply chain integrates just-in-time inventory and long-term supplier
relationship
Core Elements: •
Flow of Goods: Raw materials → Production → Distribution → Retail
• Flow of Services: After-sales support, maintenance, and reverse logistics
• Flow of Information: Real-time data sharing across stakeholders for coordination and
planning
Value Chain – Michael Porter’s Model
The value chain is a model developed by Michael Porter that outlines the key activities
within an organization that add value to its products and services.

Primary Activities:
1. Inbound Logistics – Receiving, storing, and managing inputs
2. Operations – Transforming inputs into finished products
3. Outbound Logistics – Distributing products to customers
4. Marketing & Sales – Promoting and selling the product
5. Service – Post-sale support and services
Support Activities:
• Firm Infrastructure
• Human Resource Management
• Technology Development
• Procurement
Functions of SCM
1. Procurement: Sourcing quality materials at the right price and time Supplier
relationship management
2. Operations: Production planning, scheduling, and control, Quality management and
process optimization
3. Distribution: Order fulfillment, warehousing, and transportation , Managing channel
partners and logistics providers
4. Customer Service: Order tracking, returns management, and support Building
loyalty through responsive service

Careers in LSCM

logistics and distribution manager: Ensure products are efficiently

delivered to the right location on time and guide decisions about
transportation and stock control.

procurement manager: Oversee and coordinate procurement

agents, buyers, or purchasing agents while managing the company’s
most complex purchases

inventory planner: Draft effective inventory plans that detail quantity

specifications about products and equipment
Quality control analyst:

Conduct scientific analyses to evaluate the quality of raw materials, in-

process materials, and finished goods; ensure compliance.

Transportation solutions analyst: Manage a portfolio of clients and

projects to assess performance, project prioritization, and risk
management.

Other jobs include:

purchasing manager, warehouse supervisor, customs specialist, global
logistics manager, inventory planner, logistics automation specialist,
transportation solutions analyst, materials coordinator, director of
logistics, distribution center manager, logistics analyst, and quality
control analyst.

Challenges of SCM
Common supply chain logistics challenges include customer service, cost
control, planning and risk management, supplier/partner relationship
management, and talent.
As companies become more global, however, they face the challenges of being
flexible enough to successfully grow and expand into new markets in order to
remain competitive
Today’s supply chain logistics executives oversee and drive multiple supply
chains and work tirelessly to meet the needs and expectations of customers and
suppliers. Personalized offerings are helping them do so, but managing
personalization in and of itself is a logistics challenge.
Advanced supply chain management systems, customer relationship
management systems, and Big Data are helping companies gain the visibility they
need into their customers to make supply chain management and logistics
efficient, cost-effective, and crowd-pleasing
Logistics Examples
Inbound Logistics: A manufacturing plant receiving raw materials from Suppliers
Outbound Logistics: A Retailer shipping product to customers after they place an order
Reverse Logistics: A Customer returning a faulty product to a retailer
Third Party Logistics: A Company using a 3 PL Provider for warehousing and distribution
Fourth Party Logistics: A Company will manage all aspects of transaction from production
point to delivery point.

Examples for Supply Chain Companies:

Mahindra Logistics , Blue Dart Express
Allcargo Logistics Delivery
All cargo Gati Ltd
TVS Supply Chain Solutions
VRL Logistics , DHL
FedEx Express India. ,Flipkart
Amazon supply chain …
Marketing Channels
Marketing channels are the routes through which products reach customers from
producers. They include wholesalers, retailers, distributors, and agents. Effective
channel design considers market needs, cost, and control. Channel management
ensures smooth coordination among members and handles conflicts. Example:
Apple uses both physical retail stores and online platforms to reach customers.

Channel Design and Management

Channel design involves selecting the most efficient path to deliver goods or services. It
includes decisions on the type, number, and responsibilities of intermediaries.
Management ensures coordination, motivation, and performance monitoring of channel
members. Channel conflicts must be resolved to ensure efficiency and customer
satisfaction.

Example: Coca-Cola designs a distribution system using bottlers, retailers, and vending
machines.

Types of Channels:

1. Direct Channels

No intermediaries; manufacturer sells directly to the customer. o Examples:

Company-owned stores, online stores (e.g., Apple.com)

2. Indirect Channels Involves intermediaries like wholesalers, retailers, agents. o

Examples: FMCG products sold via supermarkets

3. Hybrid Channels (Multichannel) o Combination of direct and indirect methods. o

Example: Nike sells through its website (direct), retailers (indirect), and third-party
platforms (e.g., Amazon).

Factors Influencing Channel Design: •

Market characteristics (e.g., customer preferences, geographic spread)

• Product characteristics (e.g., perishability, complexity)

• Company objectives and resources

• Competitor strategies
• Cost-effectiveness and profitability

Classification of Channel Management:

1. Channel Selection Criteria:

Reach, cost, control, partner reputation, expertise o Example: Choosing between a

national distributor vs. regional agents

2. Channel Motivation

Providing incentives (financial or non-financial) o Offering training, marketing

support, joint promotions o Building long-term relationships through trust and
collaboration

3. Channel Evaluation

Assessing performance using KPIs like sales volume, market coverage, customer
satisfaction Periodic reviews and feedback sessions

4. Conflict Resolution

Types of Conflict:

 Horizontal: Between same-level channel members (e.g., two retailers)

 Vertical: Between different levels (e.g., manufacturer vs. retailer)

 Multichannel: Conflicts in hybrid channels

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