Marketing Notes - Class 8 includes Marketing Mix, Consumer Relationship, Consumer Behaviour and Ethical Behaviour.

UNIT 1, Marketing Mix

 

Marketing Mix

A marketing mix is a group of tools or tactics used to promote and sell goods and services. It is concerned with deciding, what, where, when and how etc. in the process of marketing. The 4Ps that make up the marketing mix are product, price, place, and promotion.

Elements of Marketing Mix – 4Ps

4 Ps are Product, Price, Place and Promotion

All the marketing managers take their decisions based on different combinations of these 4 Ps to meet their organisational goals.

  1. Product:

The product means the goods and services to satisfy the needs or wants of customers. Business is able to sell goods only if they stand out in competitive world. There comes the role of branding. Business also decides the combinations of products that can be sold together.

  1. Price:

In the marketing mix, price which is to be paid by the customer to acquire goods and services plays a major role. Price must be reasonable as far as customer is concerned. At the same time, it must cover the cost incurred by the business with a reasonable margin of profit.

If price is kept low, business suffers and if the price is kept high the customers won’t respond positively.

  1. Place:

Next P is Place. It means Physical Distribution also. In the time of competition the goods must be made available at the place of customers if the business has to stay and survive. Keeping a particular level of inventory, transportation, warehousing etc. play major role in Place Mix.

  1. Promotion:

Promotion here means the awareness created for the customers about the availability and quality etc. of goods and services to satisfy customer needs and wants. Here also, keeping the competitors in mind it is important to offer discounts, after sale services etc. to the customers so that they become loyal and repeat customers.

Direct marketing, advertising, personal branding, sales promotion, and other promotional activities are a few elements of Promotion Mix.

 

UNIT -2 Customer Relationship

 

Customer service is a set of activities performed by any organisation to satisfy customer needs.

Know Your Customer (KYC)

A very important concept crucial for building good relationship with your customer is to ‘Know Your Customer’ well.

KYC was initially associated with the banking and financial sector, but now it is used for all types of business.

KYC here indicates that a business should understand the needs and wants of its customers so well that they are satisfied at the end and there is positive relationship of business with its customers.

Customer Relationship

Customer expectations start before buying the goods and end after the goods are sold. So, the business must keep in view everything it can do for improving the relationship with its customers for new and repeat customers.

So, companies are now very much concerned with:

  1. How to manage their customer relationship
  2. How to make repeat customer
  3. Strategies to understand customer needs and desire
  4. Techniques to motivate potential customers

 

Customers are the lifeline of any business. Customer is the king of the market. Therefore, it is crucial for organizations to retain their customers.

 

Importance of Customer Relationship

For any business, it is vital to consider the convenience, taste, and preferences of customers – insights that can be gained primarily through customer feedback.

Importance of Customer Relationship:

  1. For business growth

In case of strong relationship of business with its customers, there are more chances to retain them and increase sales. This is because satisfied customers become repeat customers and bring new customers with their mouth publicity.

  1. For brand loyalty

Satisfied customers increase brand loyalty. They also recommend the product to others. According to a study, purchasing the same brand more than 70% of the time for a period of 3 years shows brand loyalty.

  1. For positive customer feedback

When a business has a strong relationship with its customers, they provide honest feedback about the company’s product or services. This helps the business to improve and make changes in their operations and products that will better meet their customers’ needs.

  1. For customer retention

The customer feels valued and appreciated when a business takes the time to build a relationship with them. Good relationship helps the business keep customers coming back.

  1. For attracting new customer

In today’s digital age, there is rise of social media and online reviews, where customers post their reviews and can affect the existing as well as future customers. A negative review will bring the reputation down where as positive reviews can take it to the sky.

  1. For enhancing customer satisfaction.

In case of a strong relationship of business with its customers, they feel satisfied with the company’s products or services. They continue to buy the same goods and services.

 

UNIT -3 Consumer Behaviour

 

Meaning of Consumer Behaviour

Consumer behaviour is the study of how and why consumers make different choices and decisions relating to the purchase of products or services. It involves the understanding of what influences their preferences, needs, wants and desires, and how they respond to various marketing factors affecting their purchase behaviour.

The study of consumer behaviour helps in better understanding and anticipation of consumers' needs and motivations, thus create more effective marketing campaigns and products.

 

Factors affecting Consumer Behaviour

Consumer behaviour is affected by a large number of factors:

  1. Psychological factors:

Psychological factors mean the internal mental and emotional processes that influence how individuals respond to marketing conditions, leading to their buying decisions. These factors include motivation, perception, learning, memory, attitudes, beliefs, personality, emotions, and cognitive biases which vary from person to person.

  1. Socio-cultural factors:

Socio-cultural factors include family, reference groups, social class, culture, influencers, social media and online communities. Word of mouth communication from friends, family, or acquaintances can greatly influence consumer choices. Positive or negative recommendations can significantly impact their perception of the brand.

  1. Economic factors:

Economic factors are related to the overall economic conditions, individual financial situations, and purchasing power of consumers like price and affordability, income levels, economic conditions, employment, job security, interest rates, disposable income, inflation, government policies, etc.

  1. Government factors:

Government factors refer to various policies, regulations, and actions taken by the government. These factors can include taxation policies, subsidies, consumer protection laws, product regulations, environmental policies, trade policies, monetary policies, employment and social welfare policies, health and safety regulations, and advertising and marketing regulations.

 

UNIT IV Ethical Behaviour In Marketing

 

Meaning of Ethical Behaviour

Ethical behaviour in marketing means acting in a morally and socially responsible manner and to honour honesty, fairness, openness, and respect for all the stakeholders. It means making decisions and taking actions that are good for customers, workers, competitors, society, and the environment.

Some Ethical Marketing Campaigns

  1. Levi Strauss and Company launched the "Waterless" and "Wash less" campaigns to raise awareness about the environmental impact of denim production.
  2. The Body Shop launched the "Forever against Animal Testing" campaign in 2017 which aimed to end animal testing in the cosmetic industry.

 

Components of Ethical Behaviour

The components and principles of ethical behaviour:

  1. Honesty and Transparency

Honesty means telling the truth about products and services, while transparency means being open about how products are marketed, manufactured and sold.

A company that practices honesty and transparency builds trust with its customers, leading to customer loyalty and repeat business.

  1. Fairness

Fairness means treating customers, employees, and suppliers with respect and equality. A company that practices fairness provides equal opportunities to all regardless of their background, gender or race.

  1. Responsibility

Responsibility means taking ownership of a company's actions and their impact on the environment and society. A company that practices responsibility takes steps to minimize its environmental impact, supports the local community, and create products that are safe for customers.

  1. Good advertisement

Ethics in advertising is directly related to the purpose of advertising and the nature of advertising. A good advertisement does not make false claims, is decent and does not mislead the customers and general public. It doesn’t hurt the sentiments and feelings of any group in society.

  1. Health and Safety

The consumers have to choose from what is being offered to them, check the labels, ingredients, and mark of safety and not get lured by catchy advertisements. Consumers should be aware that some advertised products can be unhealthy.

Companies should work towards sustainability and avoid unethical practices through false advertisements.

  1. Legality

The business organisation should comply with all the environmental and government regulations and industry standards. It will also help the business to grow and expand.

  1. Accuracy

It needs to be ensured that all claims presented in advertisements, during sales, or in product descriptions can be verified and are substantiated by evidence. Marketers must refrain from making claims about a product that cannot be proven.

  1. Consumer Privacy and Data Protection

There should be protection of customer rights and the security of their personal information. Marketers must obtain proper consent to collect customer data while ensuring its safety and preventing any misuse.

 

Evaluation of the Components of Ethical Behaviour in Marketing:

Ethical behaviour of the marketers can help the brand's reputation and keep buyers coming back.

 

Good marketing ethics are:

  1. Customer information should not be disclosed without their consent.
  2. Abide by the government laws, rules and regulations.
  3. Avoid misleading advertisements.
  4. The product details should be revealed to the customers
  5. Only promote products which are safe for customers.
  6. Do not indulge in malpractices rather offer fair prices to customers.

It is important to note here that all these above points have been ensured by Consumer Protection Act 2019.

 

Check your Understanding 

 

 

 

 

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