www.vertschoolofbanking.com
MARKETING
CONTENTS
1.
2.
3.
4.
5.
6.
7.
Introduction to Marketing
Marketing Environment
Marketing Mix
Consumer Behavior
Marketing Segmentation
Marketing Management & Planning
Product Life Cycle(PLC)
CONTENTS
8. Channels of Distribution
9. Pricing
10. Advertising
11. Personal Selling
12. Sales Promotion
13. Branding, Packaging & Labeling
14. Marketing Research
15. Consumer Protection
16. Modern Marketing System
1. Introduction to Marketing
-
the action of promoting and selling
products or services.
I. Concepts of Marketing
II. Types of Marketing
III. Functions of Marketing
I. Concepts of Marketing
•
•
•
•
Exchange Concept
Production Concept
Product Concept
Sales Concept
II. Types of Marketing
A. Marketing to Individuals
a. Convenience goods – newspaper,
medicine, pen
b. Shopping Goods – tv, ref,ac
c. Speciality Goods – restaurant
B. Marketing to Organization – machines,
raw material
III. Functions of Marketing
A.
B.
C.
D.
E.
F.
G.
H.
I.
Marketing Research
Product planning and Development
Buying and Assembling
Packaging and Labeling
Standardization and Grading
Branding
Pricing
Transportation
Promotion
India’s Best Marketing Service
Provide
Hindustan Unilever (www.hul.co.in)
Proctor and Gamble (www.pg-india.com
)
2. Marketing Environment
- Factors and forces outside marketing
Ex:- seagate
I. Components of ME
II. PEST Analysis
III. SWOT Analysis
I. Components of ME
• Internal Environment
Dept – HR, Finance and etc…
• External Environment
(A)Micro Environment
- Company, Marketing Intermediaries,
Customers, Public.
(B)Macro Environment
- Demographic, Social – Cultural, Economic,
Political – Legal, Technological, Natural
II. PEST Analysis
P – Political Factors
E – Economic Factors
S – Socio – cultural factors
T – Technological factors
III. SWOT Analysis
INTERNAL
S – Strength(advantage)
W – Weakness(disadvantage)
EXTERNAL
O – Opportunities
T – Threats
3. Marketing Mix
I. 4 Ps
II. 7 Ps
III. 4 Cs
I. 4Ps
1. P – Product
2. P – Price
3. P – Place
4. P - Promotion
I. 4Ps
1. PRODUCT
(i) Consumer Goods(based on use) –
Convenience, Shopping, Speciality.
(ii) Industrial Goods (based on Durability)
– Durable (capital goods – car, ac) ,
- Non Durable (FMCG - soap, salt)
(based on Tangibility)
– Tangible (machinery, raw material) ,
- Intangible(medical treatment, education)
I. 4Ps
2. PRICE
(i) Internal factors
– Organisation, Marketing mix, Product
Differentiation, Cost.
(ii) External factors
– Demand, Competition, Behaviour, Nature of
Buyers, Govt rules and rugulations.
3. PLACE
4. PROMOTION
II. 7Ps
1. P – Product
2. P – Price
3. P – Place
4. P – Promotion
5. P – People
6. P – Process
7. P – Physical Evidence
III. 4Cs
1.
2.
3.
4.
C – Consumer
C – Cost
C – Communication
C – Convenience
4. Consumer Behaviour
I. Classification of Consumer
II. Importance of CB
Nature of Indian Consumers.
I. Classification of Consumer
1. Individual – own use
2. Commercial – Manufacturing or reselling
II. Importance of CB
1.
2.
3.
4.
Production policies
Price Policies
Distribution policies
Sales Promotion policies
5. Market Segmentation
-
Dividing a market into sub groups.
I. Importance of MS
II. Causes of MS
III. Basis of MS
I. Importance of MS
1.
2.
3.
4.
Understand customers
Maximize product potential
Improve distribution NW
Gain New clients
II. Causes of MS
1.
2.
3.
4.
5.
Increase in profit
Popularity in the market
Better customer satisfaction
Better opportunity for product sales growth
Very easier customer – Business communication
Flow
III. Basis of MS
1. Consumer Market
2. Industrial Market
6. Marketing Management &
Planning
Marketing Management:
- MM - Analysis, planning, implementation
and control.
I. Concepts of MM
II. Importance of MM
Marketing Planning:
I. Process of MP
II. Classification of MP
III. Factors affecting the MP
I. Concepts of MM
1. Consumer oriented concept
- target : consumer needs
2. Marketing oriented concept
- orientation : sales, product , production
3. Consumer satisfaction
4. Consumer welfare concept
- focuses : consumer needs, wants, profits and also
social welfare
II. Importance of MM
1. Maximum Results with Minimum Efforts.
2. Importance for Consumers
- will select the product if aware.
3. Increase in Living Standards
4. Economic growth
I. Process of MP
Step 1 Goal Setting
- mission
- objectives
Step 2 Analysis the Current situation
- Marketing audit
-SWOT
- Marketing Assumption
Step 3 Creating the marketing strategy
- marketing objectives and strategies
- Forecasts of expected results
- Create alternative plans
step 4. Allocating Marketing Resources and Monitoring
- budget
- Detailed action plan
II. Classification of MP
1. Long term
- more than one year
2. Short term
- less than one year
3. Adhoc
- future plan (solution if problem arise in the actual
performance)
III. Factors affecting the MP
1. Internal
2. National
- Population, National Income(6.7 trillion PPP dollars),
Price trends, Industrial policy.
3. International
- Monetary system(regulate the supply of money)
- Stability and peace
- Scientific and technical development
7. Product Life Cycle(PLC)
- distinct stages in the sales history.
I. Stages in PLC
II. Importance of PLC
III. Factors Affecting PLC
IV. Product Related policy Decision
V. Product Development Steps
I. Stages in PLC
Market Introduction – innovative may launch
Market Growth – in sales and profit
Market Maturity - reached state of equilibrium
Market Saturation – supplies large quantities for
sale and saturate the market
5. Market Decline – Customers goes for better products.
1.
2.
3.
4.
II. Importance of PLC
1. Life of a product is Limited
2. Estimation of profits
3. Marketing Programme
III. Factors Affecting PLC
1.
2.
3.
4.
5.
6.
7.
Development of substitute products
Product regulatory system
Technical change
Competitive entry
Legal and Govt.
Goodwill
Quality of raw material
IV. Product Related policy
Decision
1. Product Item – list of producer or reseller
2. Product Line – group of products by a single company
3. Product Mix – total no of product lines by a single
company
V. Product Development Steps
1.
2.
3.
4.
5.
6.
7.
Idea Generation
Product Screening
Concept testing
Business Analysis
Product Development
Test Marketing
Commercialization
8. Channels of Distribution
- set of people and firm.
I. Importance of CoD
II. Functions of DC
III. Types of CoD
IV. Factors Affecting the DC
I. Importance of CoD
1.
2.
3.
4.
Reduce cost
Guide the consumer
Understand the logistics
Reduce the storage cost
II. Functions of DC
1.
2.
3.
4.
Contact Between Producer and Consumer
Satisfaction to the consumer
Transferring the title – through sales and purchase
Fixing prices
III. Types of CoD
Conventional DC – producer, wholesaler, and retailer work separately
(i) Direct Channel or Zero level channel
Manufacturer  Consumer
(ii) Indirect Channel – manufacturer gets help of 1 or more
(a) One stage channel
Manufacturer Retailer  Consumer
(b) two stage channel
Manufacturer wholesaler  Retailer  Consumer
(iii) three stage channel
Manufacturer Agent  wholesaler  Retailer  Consumer
2. Non – Conventional DC – full co-ordination
(i) Vertical – producer, wholesaler, and retailer work together as a unified group in orde
r to meet consumer need
a)corporate - single firm own production and distribution Ex: Bata, Tata)
b)Administrated VC - more than one firm own production and distribution )
c) Contractual VC – producer, wholesaler, retailers employed voluntary basis
(ii) Horizontal DC – two or more companies join
Ex: Associated Cement Company
1.
IV. Factors Affecting the DC
1. Product consideration
2. Market Consideration
3. Company Consideration
4. Middlemen consideration
Marketing Middlemen
(A) Merchant – person or company involved in
wholesale trade
(B) Agent – Broker, Commission Agent, Auctioneer
9. Pricing
I.
II.
III.
IV.
V.
Importance of Pricing
Factors Affecting pricing decisions
Types of Pricing policies
Process of pricing
Methods of pricing
I. Importance of Pricing
1.
2.
3.
4.
Determines demand of the product
Determine revenue and profit
Can regulate the competition
Affect the total sale, total revenue, total profit
II. Factors Affecting pricing
decisions
1. Primary – demand, cost,
2. Secondary
– Char of product and consumer, aims, benefits,
marketing method, Economic and political
environment, Govt. laws and regulation, Delivery
route, market competition
III. Types of Pricing policies
1. Variable – demand, cost,
2. One price policy
3. Other ways
- Based on flexibility, char, price level, geographical
ground
V. Methods of pricing
1. Cost plus pricing method – determined by adding a
percentage to a product Ex : government contracts
2. Marginal cost method - consisting of labor and mate
rial costs, plus estimated portion of fixed cost
3. Market penetration method - brand or category
Ex : Mercedes Benz
1. Fixed cost – EX : retailer
2. Variable cost – Ex : comission
3. Mark up method - Ex : Computer shop
10. Advertising
- ad VERTere (to turn toward) Non personal presentation and promotion.
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
Characteristics of advertising
Objectives of advertising
Types of advertising
Classification of advertisement on the basis of stages
Functions of advertising
Media of advertising
Factors taken into consideration while selecting the advertising media
Principles of Effective advertisement
Advantages of advertising
Limitation of advertising
Publicity
Important terms
I. Characteristics of advertising
1.
2.
3.
4.
5.
6.
Impersonal
The idea is to promote goods or services
Sponsorship
Paid form of communication
Facilitates consumer choice
Element of creativity
II. Objectives of advertising
1.
2.
3.
4.
5.
6.
7.
8.
Introduction of new product
Increase in sale
Maintaining existing buyers
Create and enhance goodwill of the firm
Remind consumer
Convince consumer
Create and enhance brand image
Help in personal selling
five Ms of advertising
1.
2.
3.
4.
5.
Mission
Money
Message
Media
Measurement
III. Types of advertising
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Classified advertisement
Decorative advertisement
Financial advertisement
Informative advertisement
Authenticated advertisement
Pannel advertisement
Souvenir advertisement
National advertisement
Cooperative advertisement
Contract advertisement
IV. Classification of advertisement
on the basis of stages
1. Pioneering stage
2. Competitive stage
3. Retentive stage
V. Functions of Advertising
1.
2.
3.
4.
5.
6.
Promote sale
Introduce new products
Stimulate research and development
Educate people
Provides source of revenue to press
Builds reputation advertiser
VI. Media of Advertising
1.
2.
3.
4.
5.
6.
7.
Press Advertising
Outdoor advertising
Direct mail advertising
Electronic advertising
Entertaining advertising
Point of purchase advertising
Modern advertising
1.Press Advertising
1. Newspaper advertising
2. Magazine advertising
2.Outdoor advertising
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Banners
Posters
Hoarding
Sky advertising
Bus advertising
Train advertising
Tram advertising
Electric display
Advertising board
Sticker advertising
Hoarding
Sky advertising
Bus advertising
Train advertising
Tram advertising
Electric display
Advertising board
Sticker advertising
3. Direct mail advertising
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Post card
Booklets
Folders
Sales letter
Price list
Circular
Catalogue
Personal letters
Monthly magazines
Leaflets(flyer)
4.Electronic advertising
1.
2.
3.
4.
5.
6.
7.
Radio
Television
Cinema
Video Cassette
Cinema slide
Film
Loudspeaker
5. Entertaining advertising
1.
2.
3.
4.
Drama
Music programmes
Exhibitions
Educational Programme
6. Point of purchase advertising
1. Window display
2. Counter display
7. Modern advertising
1.
2.
3.
4.
5.
6.
Satisfied customers
Past customers
E-Commerce
E-Mails
Mobile
Internet(Digital Marketing)
VII. Factors taken into
consideration while selecting the
advertising media
1.
2.
3.
4.
5.
6.
7.
Nature of product
Objectives of marketing
Nature of market
Life of advertisement
Type of audience
Financial consideration
Circulation of media
VIII. Principles of Effective
advertisement
1.
2.
3.
4.
5.
Attract the people
Suggest something
Should aim at educate people
Create need for the product
People remember
IX. Advantages of advertising
1. Benefits Consumers
2. Benefits Manufacturer
3. Benefits society
X. Limitations of Advertising
1.
2.
3.
4.
5.
Adds cost
Undermines social values
Creation of monopoly(exclusive possession )
Encourages sale of inferior(lower in rank) products
May not increase overall demand
XI. Publicity
- mass medium
Characteristics of publicity
- third person involve
- need not bear expense
- communicate greater no of people
- no possibility of repetition
XII. Important Terms
1.
2.
3.
4.
Surrogate Advertising
Industrial Advertising
Sandwich board
Advertising frequency
world top 3 adagency
1. Y& R (Young & Rubicam) Brands - Newyork
6500 people in 186 offices in 90 countries, all on a
mission to resist the usual for our clients.
2. McCANN world group - US
McCann is a global advertising agency network,
with offices in 120 countries - US
3. Dentsu - Tokyo
Dentsu Inc. is an International advertising and publi
c relations company whose headquarters are locate
d in the Dentsu Building in the Tokyo
India top 5 adagency
1. Ogilvy and Mather
With its presence in over 100 countries . most successful and renowned bra
nds such as utch (Vodafone), Cadbury, Asian Paints and Fevicol.
2. Mudra Communications
renowned brands like McDonalds, Tourism Australia, Colgate and PolicyBaza
ar.com.
3. JWT
It is behind many famous ad campaigns like Listerine, Good night, and Teac
h for India.
4. McCann Erickson India
Its holds the account of some famous brands like MasterCard, Coca Cola, a
nd Greenlam Laminates.
5. Lowe Lintas
responsible for ad campaigns like Idea, ICICI Prudential and Tata Tea.
11. Personal Selling
- salesperson  customer
I. Steps in PS
II. Characteristics of PS
III. Significance of PS
IV. Qualities of Good salesperson
I. steps in Personal Selling
1.
2.
3.
4.
5.
6.
7.
Prospecting and Qualifying
Pre-Approach
Approach
Presentation
Handling Objections
Closing the sale
Follow up
II. Characteristics of Personal
Selling
1.
2.
3.
4.
5.
Oral presentation
Two way communication
Creative activity
Involve personal relationship
relationship marketing
III. Significance of Personal Selling
1. Benefits the consumer
2. Benefits the business
3. Benefits the society
DIFFERENCE BETWEEN Personal
Selling & ADVERTISING
IV. Qualities of Good salesperson
1.
2.
3.
4.
5.
6.
Impressive Personality
Good Behaviour
Ability to communicate and persuade
Persistence
Mental qualities
Knowledge of the product and the
company
12. Sales Promotion
I.
Objectives & Importance of
promotion
II. Promotion Mix
III. Sales Promotion
I.
Objectives & Importance of
promotion
Objectives of promotion
- introduce new product
- compete with competitor’s product
- improve the company/brand image
- increase sales
Importance of promotion
- boost sales
- encourage people to try, buy a product
II. Promotion Mix
1. Elements of PM
- advertising, personal selling, sales
promotion, public relations, social media,
direct marketing
2. Factors affecting PM
- budget, stages in PLC, type of
product, consumers preference,
competitors.
III. Sales Promotion
1.
2.
3.
4.
5.
Objectives of SP
- Informative to customers
- persuades customers
- increase in sales volume
- incentive to retailers
- create product identity
Characteristics of SP
- Attractiveness, fit to product category, reception delay,
value
Importance of SP
Elements of SP
Merits and Demerits of SP
13. Branding, Packaging & Labeling
I.
Branding
1. Importance of Branding
2. Functions of Branding
3. Advantages of Branding
4. Types of Brand
5. Brand Name
1. Importance of Branding





Creating difference between products
Create mental structure
Physical goods : pears, lux
Service : VIT,SRM,ICICI
Place : Goa, Kerala
2.




Functions of Branding
Helps product identification
Indirectly denote quality
Ensure legal right
Help price differentiation
3.Advantages of Branding
A. To the Manufacturer
B. To the Consumers
C. To the Distributors
4. Types of Brand
A. Manufacturer Brand
- National, Regional, Advertising,
Family Brands, Individual Brand
A. Distributors Brand
- Private, Store, Dealer, House
5. Brand Name
A.
Characteristics of a Good Brand Name
- easy to pronounce, read, understand,
remember,
B. Brand Awareness
C. Brand Mark
D. Brand Cover
E. Brand Loyalty
F. Brand Equity
G. Trademark
H. Logo
2. Packaging
- Enclosing or protecting products
1. Types of packaging
- Primary, secondary, teritrary ,family,
reuse, multiple
2. Characteristics of packaging
3. Importance of packaging
3. Labelling
1.Types of Labels
Brand, Grade, Descriptive
2. Functions of Labelling
14. Marketing Research
I.
II.
III.
IV.
V.
VI.
VII.
- systematic gathering, recording, and
analysing of data.
Characteristics of MR
Elements of MR
Types of MR
Methods of MR
Steps in MR
Needs of MR
Limitation of MR
I. Characteristics of MR
- prodcut, packaging, sales
- scientific method to solving
problem
- important to decision making
- component of MIS
- reduce the gap between producer
and consumer
II.
Elements of MR
- Research of Market, sales, product,
packaging, advertising, business
economic, export marketing
III. Methods of MR
-
product analysis
market analysis
Distribution analysis
Competitions analysis
consumer research
Sales analysis
Motivational research
IV. Methods of MR
A. Questionnaire method
B. Experimental method
C. Observation method
V.








Steps in MR
Define the problem and objectives
Analysis of problem
Determine the information needed
Determine source of information
Decide research methodology
Analyse and interpret data
Prepare the report
Follow up the study
V.




Needs of MR
To start production of new product
Provides in deciding marketing policies, strategies
and programme
Helps to select CoD
Helping sales forecasts
VI. Limitation of MR




Heavy expenditure adopt only large industry
Sufficient time
Based on research scholar
If research scholar biased.
15. Consumer Protection
I. Consuemr Protection Act(CPA), 1986
II. Rights to Consumers
III. MRTP ACT – Monopolies(exclusive
control) and Restrictive Trade
Practices Act
II.Rights to Consumers






Rights to safety
Rights to be informed
Rights to choose
Rights to be heard
Rights to seek redressal ( management- and gover
nance-related process)
Rights to consumer education
16. Modern Marketing System
I. Fields of MMS
II. Functions of MMS
III. Various MMS
IV. Type of E-commerce
V. Global marketing
VI. Service marketing
VII. Bank marketing
I. Fields of MMS



Traditional Fields
Modern Fields
Newly Developing Fields
II.Functions of MMS





Understand the nature of service
Understand the customer and his expectations
Promotion
To decide price
Organise delivery system
III. Various MMS





Mobile banking
Cyber markting
CRM(customer relationship Management)
Green Marketing
E -Commerce
IV. Type of E-commerce




B2B
B2C
C2B
C2C
V. Global marketing




B2B
B2C
C2B
C2C