MARKETING MANAGEMENT. What is a Market? Definition: “ A market, or marketplace, is regular gathering of people for the purchase and sale of provisions,

MARKETING MANAGEMENT

What is a Market?

Definition:

“A market, or marketplace, is regular gathering of people for the purchase and sale of provisions, livestock, and other goods. It is a place where buying and selling occurs.”

Some markets operate on most days; others may be held weekly, or on less frequent specified days.

The term ‘Market’ is derived from Latin word mercātus, which means trade or place of business.

‘The Grand Bazaar’ in Istanbul is often cited as the world's oldest still-operating market; its construction began in 1455.

Kinds of Markets

Markets have been classified into different types on the basis of:

Area : Regional, National, International etc Items : Commodity, Money, Capital. Link : Primary, Secondary, Terminal. Volume of Business : Wholesale & Retail. Nature of Transactions : Spot & Future Nature of Goods : Consumer & Producer Regulations : Regulated & Unregulated.

Market Types : On the basis of area1) Local Markets :

Local markets are generally limited to a specific local area.

2) Regional Markets:Regional marketers tend to serve adjoining cities,

parts of states, or entire state.

3) National Markets:National markets are generally are restricted

within the boundaries of a particular country.

4) International Markets:International marketers operate in more than one

country.

Local Market

National Market International Market

Regional Market

Market Types : On the basis of items1) Commodity Market:

A commodity market is a market that trades in primary economic sector rather than manufactured products. 

In this type of market both Soft & Hard commodities are traded.

2) Money Markets:It is a market where short-term finance is availed.

Commercial banks & indigenous bankers are part of Money Market.

3) Capital Markets: It is a market where long term finance is availed.

Various financial institutions, finance corporations, investment trusts, stock exchanges etc. are part of Capital Market.

Commodity Market

Money Market Capital Market

Market Types : On the basis of Link1) Primary Market:

In these markets, a major part of the produce is brought for sale by the producer-farmers themselves.

Transactions in these markets usually take place between the farmers and primary traders (wholesalers).

2) Secondary Markets:In Secondary Markets, wholesalers sell their

goods to retailers.

3) Terminal Markets: A terminal market is one where the produce is

either finally disposed of to the consumers or assembled for export.

Market Types : On the basis of Nature of transaction1) Spot Market:

In these markets, goods are sold to the buyer on the spot when the payment is made or payment time fixed.

2) Future Markets:In these markets, goods are transferred on a

later date.Spot Market Future Market

Market Types : On the basis of volume of business1) Wholesale Market:

In these markets, goods are sold in huge quantities to the retailers.

2) Retail Markets: In these markets, goods are sold in small

quantities to the consumers. Wholesale Market Retail Market

Market Types : On the basis of nature of goods

1) Consumer Market: A consumer market is the system that allows us

to purchase products and services. These items can be used for personal use or shared with others.

2) Producer Markets:In these markets, goods are purchased for the

use in the further process of production.Producers buy goods and services and transform

them into a sellable product, which they sell to their customers for the purpose of making a profit. 

Consumer Market

Producer Market

Market Types : On the basis of regulation

1) Regulated Market: A regulated market or controlled market, is

a market where the government controls the forces of supply and demand, such as who is allowed to enter the market or what prices may be charged.

2) Free Markets:A free market is a market economy system in

which the prices for goods and services are set freely by consent between vendors and consumers.

The laws and forces of supply and demand are free from any intervention by a government

Traditional & Non-traditional markets1) Traditional Market:

Traditional marketing refers to any type of promotion, advertising or campaign that has been in use by companies for years, and that has a proven success rate.

2) Non-traditional Markets: Non-traditional marketing strategies rely on new

and unorthodox marketing methods. The goal of non-traditional advertising is to

create striking advertising experiences that capture interest through their creativity and unpredictably.

These markets do not have a fixed place; purchases & sales are carried out from different places.

Traditional

Marketing

BillboardsNewspaper ads

Non-Traditional

Marketing

TeleshoppingOnline / Mobile shopping

What is a Marketing?

Definition:

“The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people.”

Marketing involves all the activities which result in the flow of goods and services from the producers to the consumers.

Marketing includes research, targeting, communications (advertising and direct mail) and often public relations.

Marketing is building your brand, convincing people that your brand is the best and protecting the relationships you build with your customers.

Functions of Marketing

1) Market Research

The action or activity of gathering information about consumers' needs and preferences.

All the relevant information about the consumer is collected and analyzed. On the basis of this analysis an effort is made to find out as to which product has the best opportunities in the market.

2) Marketing Planning

The marketer has to prepare a plan in respect of the level of production and promotion efforts.

After writing marketing plans for a few years, you can sit back and review a series of them, year after year, and check the progress of your company.

Functions of Marketing

3) Buying & Assembling

Buying in marketing implies buying of goods by manufacturers for use in production.

The goods purchased at different places have to be collected at one central place for further processes. This is Assembling.

4) Product Designing and Development

The company whose product is better and attractively designed sells more than the product of a company whose design happens to be weak and unattractive.

It is not sufficient to prepare a design in respect of a product, but it is more important to develop it continuously.

Functions of Marketing

5) Standardization & Grading

Standardization refers to determining of standard regarding size, quality, design, weight, color, raw material to be used, etc., in respect of a particular product.

Grading is the process of sorting out products on the basis of some established criteria. Grading widens the market & helps in price fixation.

6) Packaging and Labeling

Packaging aims at avoiding breakage, damage, destruction, etc., of the goods during transit and storage.

Label is a slip which is found on the product itself or on the package providing all the information regarding the product and its produce.

Functions of Marketing

7) Pricing of Products

The price of a product is affected by its cost, rate of profit, price of competing product, policy of the government, etc.

8) Promotion

Promotion means informing the consumers about the products of the company and encouraging them to buy these products.

There are four methods of promotion: (i) Advertising (ii) Personal selling (iii) Sales promotion and (iv) Publicity.

Functions of Marketing

9) Physical Distribution & Transportation

Under this function of marketing the decision about carrying things from the place of production to the place of consumption is taken into account.

Physical distribution, by taking things, at the right place and at the right time creates time and place utility.

Transport facility is needed for the produced goods to reach the hands of consumers.

So the enterprise must have an easy access to means of transportation.

Functions of Marketing

10) Storage & warehousing

It refers to storage of goods between time of production & time of sale.

Good planning ensures no or minimal loss during storage.

11) Insurance

Insurance provides security against all types of insurable risks & help to overcome uncertainties in business.

It protects the businessmen against various losses.

Functions of Marketing

12)Selling

It is the end function of marketing.

Selling takes place when manufacturers sell to wholesalers, wholesalers sell to retailers, and retailers sell to the end customer. At each of these sets in distribution, companies need salespeople to sell to buyers.

13) Customer Service

Customer support is a range of customer services to assist customers in making cost effective and correct use of a product.

It includes assistance in planning, installation, training, trouble shooting, maintenance of a product.

Importance of Marketing1) Marketing Helps in Transfer, Exchange and

Movement of Goods

Goods and services are made available to customers through various intermediaries’ viz., wholesalers and retailers etc.

Marketing is helpful to both producers and consumers.

2) Marketing enhances standard of living of the community

By making available the uninterrupted supply of goods and services to consumers at a reasonable price, marketing has played an important role in raising and maintaining living standards of the community.

Importance of Marketing3) Marketing Creates Employment

The major marketing functions are buying, selling, financing, transport, warehousing, Quality control, standardization etc.

Thus, marketing gives employment to many people.

4) Marketing ensures effective utilization of resources

Marketing activities ensure optimum utilization of factors of production to produce goods & services.

It enables to satisfy various needs of the consumers.

Good marketing strategies minimize wastage.

Importance of Marketing5) Marketing Acts as a Source of New Ideas

With the rapid change in tastes and preference of people, marketing has to come up with the same.

Marketing as an instrument of measurement, gives scope for understanding this new demand pattern and thereby produce and make available the goods accordingly.

6) Marketing Is Helpful In Development Of An Economy

Marketing is the only way through which the concern could generate revenue or income and bring in profits.

Job opportunities, higher income, higher standard of living. International marketing /trade & increased savings bring together overall economic development.

Marketing Mix

What is Marketing Mix?

Definition:

“The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.”

A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps: ProductPricePlacePromotion

These four elements are adjusted until the right combination is found that serves the needs of the product's customers, while generating optimum income.

Importance of Marketing MixMarketing Mix -

Helps the firm to increase its sales & profits.

Helps to maintain the balance among various elements which are interrelated.

Serves as a link between a company & its customers.

Helps in pursuing customer oriented marketing. This ensures increased satisfaction of the customers.

Helps to meet the needs of the customers.

Allows various companies to look at the different marketing considerations with a view to finding out how best to allocate their resources.

Marketing Mix: Importance

Product Mix

Price Mix

Empty bottle recycling enables PEPSI to reduce costs and keep the selling price low.

Place Mix

Promotion Mix

Distribution Channels

Definition:

“A distribution channel in marketing refers to the path or route through which goods and/or services travel from the place of production or manufacture to the final users.”

A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers.

Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer.

Transport & Logistics play a vital component of distribution channel.

Distribution Channels

There are mainly two categories of channels:1) Direct Distribution or Direct Selling2) Indirect Distribution or Indirect Selling

Consumer Rights & Protection

Consumer & Consumer ProtectionWho is a Consumer?

Consumer is a person who purchases goods and services for personal use.

Consumers play a vital role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce.

What is Consumer Protection?

Consumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace.

The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors.

Consumer Rights

Definition

‘The right to have information about the quality, potency, quantity, purity, price and standard of goods or services’.

Many regulatory acts have been passed in our India to safeguard the interests of the consumers.

1) Indian Contracts Act – 1872.2) The Sale of Goods Act – 1930.3) Indian Standards Institutions Act – 1952.4) Essential Commodities Act – 1955.5) Consumer Protection Act – 1986.

Consumer Protection Act of India The Right to be protected from all kind of hazardous

goods and services

The Right to Information - The right to be fully informed about the performance and quality of all goods and services.

The Right to Choice - The right to free choice of goods and services

The Right to be Heard - The right to be heard in all decision-making processes related to consumer interests

The Right to seek redressel - The right to seek redressel, whenever consumer rights have been infringed

The Right to Consumer Education – The Consumers should be educated about their rights.

Consumer Courts & Forums Consumer Court is the special purpose court, mainly in

India, that deals with cases regarding consumer disputes and grievances.

These are judiciary set ups by the government to protect the consumer rights. Its main function is to maintain the fair practices by the sellers towards consumers.

The Consumer Protection Act of India provides for the establishment of Consumer Disputes redressel agencies, such as

1) District Forum2) State Commission3) National Commission