Marketing is a set of business activities which facilitates the flow of goods and services from producer to consumer and it also includes product planning and after sale service.
JOB/IMPORTANCE OF MARKETING:-
According to a statement by "Buel" Marketing is making available the right product to the right people at right place in right time on roght price through right communication medium.
i.e.,
Right product :- As per current needs.
Right People :- The Target Group.
Right Place:- Through Proper Distribution Channel.
Right Time :- With the Proactive approach.
Right Price :- As per the purchasing Power of the customer.
Right Communication :- In easily understandable way of Communication.
Value :-
Value = Benefits / Cost = All we Recieve / All we Pay.
Value Increases => Cost decreases or Benefit increases.
Development Stages of Marketing Concept :-
(i) Production Concept
(ii) Product Concept
(iii) Selling Concept
(iv) Marketing Concept
(i) The Production Concept :-
In early 1900s, production was the only problem and not the selling. Companies tries to achieve Economies of Scale ie., That largest level of Production where per unit manufacturing cost falls to minimum.
(ii) The Product Concept :-
This Concept holds that consumers will favour those products which offers the top most quality , performance or innovative features.
Marketing Myopia i.e., Overemphasis on product excellance & ignorance of customer need is the basic problem in the product concept.
(iii) The Selling Concept :-
Good Sales is possible only through advertisements & other promotional tools. This is a seller oriented approach.
(iv) The Marketing Concept :-
It is a customer oriented approach. The job is not to find the right customer for your product but the right product for your customer. Under this concept profit is achieved through customer's satisfaction.
(v) The Societal Marketing Concept :-
Customer should get satisfaction.
Company Should get profit.
Society should get Welfare.
Customer , Consumer and Client :-
CUSTOMER:-
Customer is a person who pays for the product i.e., having purchasing power.
It is not necessary that a customer will be a consumer too.
CONSUMER:-
A person who consumes or uses the product is a consumer. It is not necessary that a consumer will be a customer too.
CLIENT :-
A client is the one who can be served "individually" and can be "addressed by name".
MARKETING ENVIRONMENT :-
All those factors which effects the existance of marketing is called as the marketing environment.
Marketing environment is of two types :-
(i) Internal (Controllable)
(ii) External (Uncontrollable)
Micro Factors are those factors which directly effects the 4P's.
Macro-Factors are those factors which first- effects micro factors & hence ultimately affecting the 4P's indirectly.
(i) Demography :- It Largely involves the people i.e., the population group. It affects the taste of customer.
(ii) Politico- Legal Factor :-
This may include change in government , change in policies with reference to goods manufactured by the seller.
(iii) Economical Factor:-
Factors such as prices, inflation, stagnation, credit availability, excess liquidity, etc. have impact on a given market. If there is high inflation, sales maybe affected.
(iv) Social and Cultural Factors:-
This factor also plays an important role in the marketing concept.
(v) Technological Factors :-
Technological developments have greatly influenced the lifestyles of people across the globe and are also responsible for creating needs and demands for newer products and services fom them.
PRODUCT:-
A product is anything that can be offered to market to satisfy certain needs & wants.
Example:- Chocolate, AC, Teaching, Poliodrops, Gujarat, etc.
It can be in the form of :-
(i) Physical goods.
(ii) Ideas/ services.
(iii) Places.
(iv) Persons.
SERVICES & Their Unique Characteristics :-
Any act/ performance which one party offers to another is a service.
Services are of following types :-
(i) Person---> Person (ex:- Teaching, Barber's haircut, etc)
(ii) Person---> Machine (ex:- AC service person, etc )
(iii) Machine---> Person (ex:- ATM, ROsystem,etc )
(iv) Machine---> Machine (Ex:- Automatic cleaning system, etc)
Unique Characteristics :-
=> Intangibility i.e., a service (since it lacks physical existence or form) cannot be seen, smelled, tasted, touched, or stored.
=> Inseparability i.e, As soon as it is produced it is consumed.
=> Variability i.e., Variation in a service are possible.
=> Perishability i.e., Services cannot be kept or stored.
=> Ownership doesnot get transferred from level to level.
PRODUCT CLASSIFICATION :-
(i) Convenient Product :-
Less Priced, No bargaining product, Purchase with minimum efforts, frequently purchased.
Ex:- FMCG :- Fast Moving Consumer Goods , Petrol, etc.
Characteristics of FMCG:-
(i) Packaged & Short Shelf Life.
(ii) Personal & Home Care.
(iii) Packaged food and beverages.
(iv) Tobacco & Alcohols.
(v) Over the counter Medicines.
(ii) Shopping Product :-
Medium priced, Bargaining products, Purchase with some efforts. We buy them only after comparing their prices, qualities & designs etc.
Ex:- Clothes, Footwear's, Sunglasses, artificial Jewelries, etc.
(iii) Speciality product :-
High Priced, Brand Preferances, Durable Nature (Not frequently purchased ), purchased with high efforts.
Example :- Smartphones, Laptops, Ac's, Car, Diamonds, etc
(iv) Unsought Products :-
Unsought Products are those the customer doesnot know more about or doesnot normally think of buying.
Example:- Encyclopedias, Smoke Detectors, etc.
PRODUCT LEVELS :-
There are five levels of the products :-
(i) Core product :- The fundamental service or benefit that the customer is really buying.
(ii) Basic Product :- It consist of all those arrangements which are absolutely necessary for the delivery of Core .
Ex:- Pen is an actual product.
(iii) Expected Product :- It consist of all those arrangements, terms and conditions that must be fulfilled & checked before buying any product.
Ex:- While Buying a water bottle , we expect the water to be clean.
(iv) Augmented Product :- It is the effort or process to make the product better from its counter parts.
(v) Potential Product :- All those things that are not in the product currently but can be made available in future is called Potential Product.
PRODUCT DEVELOPMENT STAGES :-
1. Idea generation / Screening.
2. Concept testing.
3. Product Development.
4. Test Marketing.
5. Commercialization.
That is All We have in Module-I of Marketing :)
3 more Modules to come :)
JOB/IMPORTANCE OF MARKETING:-
According to a statement by "Buel" Marketing is making available the right product to the right people at right place in right time on roght price through right communication medium.
i.e.,
Right product :- As per current needs.
Right People :- The Target Group.
Right Place:- Through Proper Distribution Channel.
Right Time :- With the Proactive approach.
Right Price :- As per the purchasing Power of the customer.
Right Communication :- In easily understandable way of Communication.
Value :-
Value = Benefits / Cost = All we Recieve / All we Pay.
Value Increases => Cost decreases or Benefit increases.
Development Stages of Marketing Concept :-
(i) Production Concept
(ii) Product Concept
(iii) Selling Concept
(iv) Marketing Concept
(i) The Production Concept :-
In early 1900s, production was the only problem and not the selling. Companies tries to achieve Economies of Scale ie., That largest level of Production where per unit manufacturing cost falls to minimum.
(ii) The Product Concept :-
This Concept holds that consumers will favour those products which offers the top most quality , performance or innovative features.
Marketing Myopia i.e., Overemphasis on product excellance & ignorance of customer need is the basic problem in the product concept.
(iii) The Selling Concept :-
Good Sales is possible only through advertisements & other promotional tools. This is a seller oriented approach.
(iv) The Marketing Concept :-
It is a customer oriented approach. The job is not to find the right customer for your product but the right product for your customer. Under this concept profit is achieved through customer's satisfaction.
(v) The Societal Marketing Concept :-
Customer should get satisfaction.
Company Should get profit.
Society should get Welfare.
Customer , Consumer and Client :-
CUSTOMER:-
Customer is a person who pays for the product i.e., having purchasing power.
It is not necessary that a customer will be a consumer too.
CONSUMER:-
A person who consumes or uses the product is a consumer. It is not necessary that a consumer will be a customer too.
CLIENT :-
A client is the one who can be served "individually" and can be "addressed by name".
MARKETING ENVIRONMENT :-
All those factors which effects the existance of marketing is called as the marketing environment.
Marketing environment is of two types :-
(i) Internal (Controllable)
(ii) External (Uncontrollable)
Micro Factors are those factors which directly effects the 4P's.
Macro-Factors are those factors which first- effects micro factors & hence ultimately affecting the 4P's indirectly.
(i) Demography :- It Largely involves the people i.e., the population group. It affects the taste of customer.
(ii) Politico- Legal Factor :-
This may include change in government , change in policies with reference to goods manufactured by the seller.
(iii) Economical Factor:-
Factors such as prices, inflation, stagnation, credit availability, excess liquidity, etc. have impact on a given market. If there is high inflation, sales maybe affected.
(iv) Social and Cultural Factors:-
This factor also plays an important role in the marketing concept.
(v) Technological Factors :-
Technological developments have greatly influenced the lifestyles of people across the globe and are also responsible for creating needs and demands for newer products and services fom them.
PRODUCT:-
A product is anything that can be offered to market to satisfy certain needs & wants.
Example:- Chocolate, AC, Teaching, Poliodrops, Gujarat, etc.
It can be in the form of :-
(i) Physical goods.
(ii) Ideas/ services.
(iii) Places.
(iv) Persons.
SERVICES & Their Unique Characteristics :-
Any act/ performance which one party offers to another is a service.
Services are of following types :-
(i) Person---> Person (ex:- Teaching, Barber's haircut, etc)
(ii) Person---> Machine (ex:- AC service person, etc )
(iii) Machine---> Person (ex:- ATM, ROsystem,etc )
(iv) Machine---> Machine (Ex:- Automatic cleaning system, etc)
Unique Characteristics :-
=> Intangibility i.e., a service (since it lacks physical existence or form) cannot be seen, smelled, tasted, touched, or stored.
=> Inseparability i.e, As soon as it is produced it is consumed.
=> Variability i.e., Variation in a service are possible.
=> Perishability i.e., Services cannot be kept or stored.
=> Ownership doesnot get transferred from level to level.
PRODUCT CLASSIFICATION :-
(i) Convenient Product :-
Less Priced, No bargaining product, Purchase with minimum efforts, frequently purchased.
Ex:- FMCG :- Fast Moving Consumer Goods , Petrol, etc.
Characteristics of FMCG:-
(i) Packaged & Short Shelf Life.
(ii) Personal & Home Care.
(iii) Packaged food and beverages.
(iv) Tobacco & Alcohols.
(v) Over the counter Medicines.
(ii) Shopping Product :-
Medium priced, Bargaining products, Purchase with some efforts. We buy them only after comparing their prices, qualities & designs etc.
Ex:- Clothes, Footwear's, Sunglasses, artificial Jewelries, etc.
(iii) Speciality product :-
High Priced, Brand Preferances, Durable Nature (Not frequently purchased ), purchased with high efforts.
Example :- Smartphones, Laptops, Ac's, Car, Diamonds, etc
(iv) Unsought Products :-
Unsought Products are those the customer doesnot know more about or doesnot normally think of buying.
Example:- Encyclopedias, Smoke Detectors, etc.
PRODUCT LEVELS :-
There are five levels of the products :-
(i) Core product :- The fundamental service or benefit that the customer is really buying.
(ii) Basic Product :- It consist of all those arrangements which are absolutely necessary for the delivery of Core .
Ex:- Pen is an actual product.
(iii) Expected Product :- It consist of all those arrangements, terms and conditions that must be fulfilled & checked before buying any product.
Ex:- While Buying a water bottle , we expect the water to be clean.
(iv) Augmented Product :- It is the effort or process to make the product better from its counter parts.
(v) Potential Product :- All those things that are not in the product currently but can be made available in future is called Potential Product.
PRODUCT DEVELOPMENT STAGES :-
1. Idea generation / Screening.
2. Concept testing.
3. Product Development.
4. Test Marketing.
5. Commercialization.
That is All We have in Module-I of Marketing :)
3 more Modules to come :)
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