Marketing Keywords and Brief Notes

Marketing

  • performance of business activities that direct the flow of goods and services from producers to consumers.
  • not merely a post-production activity.

Functions of Marketing

  1. Gathering and Analysing Market Information
  2. Marketing Planning,
  3. Product Designing and Development,
  4. Standardisation and Grading,
  5. Packaging and Labelling,
  6. Branding,
  7. Customer Support Services,
  8. Pricing of Products,
  9. Promotion,
  10. Physical distribution,
  11. Transportation,
  12. Storage or Warehousing.

 

Concepts/ Philosophies of Marketing Management

Production Concept

Marketing through emphasis on low cost of production/affordability/availability of product.

Product Concept

Marketing through emphasis on good quality, size, shape, design etc. of Product.

Selling Concept

Marketing through emphasis on aggressive selling using advertising and sales promotion.

Marketing Concept

Marketing through emphasis on making an effort to find wants of people and fulfil them i.e customer satisfaction.                .

Social Marketing Concept

Marketing through emphasis on social welfare like adopting environment friendly techniques.

 

Marketing Mix

A set of marketing tools that the firm uses to pursue its marketing objectives in a target market.

Variables/Elements of Marketing mix (four Ps)

  1. Product
  2. Price
  3. Place
  4. Promotion

 

Product

In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs.

Packaging

The act of designing and producing the container or wrapper of a product.

Levels of Packaging

  1. Primary package,
  2. Secondary packaged,
  3. Transport package.

Main Functions of Packaging

  1. Product identification
  2. Product protection
  3. Facilitating the use of the product
  4. Promotion of goods and services

Labelling

Designing the label to be put on the package.

  • simple tag or complex graphics

Functions of Labels

  1. Describing the product
  2. Identifying the product or brand
  3. Grading the products into different categories
  4. Aids in promotion of the products.

 

Branding

It is the process of giving a name or a sign or a symbol etc., to a product.

Brand is the name or sign or symbol etc., of a product given for its identification.

Generic name refers to the name of the whole class of the product. For example, a book.

Brand Name

That part of a brand, which can be spoken, is called a brand name.

Brand Mark

part of a brand which can be recognised but not utterable i.e. symbol, design, distinct colour scheme or lettering.

Trade Mark

A brand with legal protection.

 Features of a Good Brand Name

  1. Short and easy
  2. Suggestive
  3. Distinctive
  4. Versatile
  5. Adaptable
  6. Lawful
  7. Staying power

Pricing

The amount of money paid by a buyer or received by a seller in consideration of the purchase of a product or service.

  • Pricing is a competitive weapon.
  • The most important factor affecting the revenue and profits of a firm.

Factors affecting Price determination

  1. Product Cost
  2. The Utility and Demand
  3. Competition
  4. Government and Legal regulation
  5. Marketing Methods Used

 

Physical Distribution

All the activities required to physically move goods from manufacturers to the customers.

Two important decisions

  1. physical movement of goods
  2. channels of distribution

Main components of Physical Distribution

  1. Order Processing
  2. Transportation
  3. Warehousing
  4. Inventory Control

 

Promotion

The use of communication to inform potential customers about a product and persuade them

to buy it.

Tools/Elements of Promotion mix

  1. Advertising
  2. Personal Selling
  3. Sales Promotion
  4. Publicity

Advertising

  1. The most commonly used tool of promotion
  2. an impersonal form of communication, which is paid for by the marketers (Sponsors) to promote some goods or service.

Merits of Advertising, as a medium of communication

  1. Mass reach
  2. Enhancing customer satisfaction and confidence
  3. Expressiveness
  4. Economy

Limitations of Advertising

  1. less forceful
  2. lacks Feedback
  3. inflexibility
  4. low effectiveness

Objections to Advertising

  1. adds to cost
  2. undermines social Values
  3. confuses the buyers
  4. encourages sale of Inferior Products

Most of the criticisms against advertising are not fully true. Advertising is therefore considered an essential function of marketing.

 

Personal Selling

  • Personal Oral presentation of message with one or more prospective customers to making sales.

Sales Promotion

  • Short-term incentives, to encourage the buyers to make immediate purchase.

Publicity

  • A non-personal, non-paid form of communication.
  • not within the control of a marketing firm.

Public Relations

  • managing organisations image in the eyes of all stake holders.

 

Choose the Element of relevant Marketing Mix for each item given.

 

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