SHEIKH MASUD

FACULTY-MCP

IBAT(KSOM)

DUBAI- OMAN-BBSR
 Introduction

1. ET6
2. E&E-2
 What is Management?
It makes human effects more productive
and brings better technology, products
and services to our society.

Final
Technology products Money services Products
and
services
Why Management ?/ Course Outcome?
At the end of the course, the students will be able to:

CO1: PERFORM, THE CRITICAL MANAGEMENT FUNCTIONS effectively and develop ideas about
implementing principles and theories of management in organizations efficiently.

CO2: DEVELOP VARIOUS MARKETING SKILLS in order to be successful in corporate world.

CO3: UTILIZE DIFFERENT FINANCIAL TECHNIQUES for better management and control of organizational
financial resources.

CO4: TAKE STRATEGIC DECISION for day to day operation through proper working capital management

CO5: HAVE COMPETENCY in production planning as well as control measures will become easy in their
professional career.

CO6: DO STRATEGY FORMULATION of the organization and how to achieve that strategy within a stipulated
time period.
Management is a must to accomplish desired goals through
group action.
convert the disorganized resources of men, machines,
materials and methods into a useful and
effective enterprise.
The function of getting things done through people and
directing the efforts of individuals towards a common
objective.
Meaning of Management
Management is the art of maximizing efficiency, as a social process, a
method of getting things done through others, a plan of action and
its direction by a co-operative group moving towards a common
goal.

Effective utilisation of available resources to

achieve same objective is management.
Management is a comprehensive function of Planning, Organising,
Forecasting Coordinating,Leading, Controlling, Motivating the efforts of
others to achieve specific objectives.

Management can precisely be called the rule – making and rule –

enforcing body.
 Definitions : 1
According to Harold Koontz

“ Management is the art of getting things done thru,with

formally organized groups “.
 Definitions : 2
According to Peter F. Drucker.

“ A Multipurpose organ that manages a business and

manages managers and manages workers and works “.
 Definitions : 3
According to J.Lundy

“ Management is what management does. It is the task of

planning , executing and controlling “.
 Definitions : 4
According to Lawrence Appley

“ Management is the development of people and not the

direction of things “.
 Definitions : 5
According to F.W. Tylor

“ Management is the art of knowing what you want to do in

the best and cheapest way “.
 Characteristics of
Management
https://businessjargons.com/management.html
 Management is----
Universal (pervasive):All the organizations,
whether it is profit-making or not, they require management,
for managing their activities. Hence it is universal in nature.

Activities involved in managing an enterprise are common to

all organizations. A petrol pump needs to be managed as
much as a hospital or school.
 Management is---
Goal-Oriented: Every organization is set up with a
predetermined objective and management helps in reaching
those goals timely, and smoothly.

An organization has a set of basic goals which are the basic

reason for its existence. Management unites the efforts of
different individuals in the organization towards achieving the
goals.
 Management is---
Continuous Process: It is an ongoing /continuous
process which never stops and tends to persist as long as
the organization exists. It is required in every sphere of the
organization whether it is production, human resource,
finance or marketing.
 Management is---
Multi-dimensional: Management is not confined to
the administration of people only, but it also manages work,
processes and operations, which makes it a
multi-disciplinary activity.

-Management of work
-Management of process
-Management of operations
 Management is a---
Group activity: An organization consists of various
members who have different needs, expectations and
beliefs. Every person joins the organization with a different
motive, but after becoming a part of the organization they
work for achieving the same goal. It requires supervision,
teamwork and coordination, and in this way, management
comes into the picture.
 Management is---
Dynamic function: (Change)
An organization exists in a business environment that has various factors
like social, political, legal, technological and economic. A slight change in
any of these factors will affect the organization’s growth and
performance. So, to overcome these changes management formulates
strategies and implements them.

Management must change its factors from time to time.

E.g. Change in technology by Nokia. Android phone.
 Management is a---
Intangible force: Management can neither
be seen nor touched but one can feel its
existence, in the way the organization
functions.

e.g. visit any hospital/colleges and you will

know the diff.
3RD CLASS

IMPORTANCE AND FUNCTIONS OF

MANAGEMENT
Management helps
in :
-personal dev

How??
 Functions of Management
Management is the science and art of getting people together to
accomplish desired goals and objectives by coordinating and
integrating all available resources efficiently and effectively.

https://businessjargons.com/management.html
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
6. Coordinating
 PLANNING:
It is the first and foremost function of
management, i.e. to decide beforehand what
is to be done in future. It encompasses
formulating policies, establishing targets,
scheduling actions and so forth. E.g. how to
increase sales of a company???
HOW…Than PLANNING.
 Organizing:
Organizing activities and resources, as in
identifying the tasks, classifying them,
assigning duties to subordinates and
allocating the resources.
 Staffing:
It involves hiring personnel for carrying out
various activities of the organization. It is to
ensure that the right person is appointed to
the right job. WHO DOES THIS??
 Directing:
It is the task of the manager to guide,
supervise, lead and motivate the
subordinates, to ensure that they work in the
right direction, so far as the objectives of the
organization are concerned.
 Controlling:
Make sure that the performance of the employees is as per
the plans. It involves establishing performance standards
and comparing them with the actual performance. In
case
of any variations, necessary steps are to be
taken for its correction.
 Coordination :
The integration of the activities, processes
and operations of the organization and
synchronisation of efforts, to ensure that
every element of the organization contributes
to its success.
 th
4 Class
Theories of Management:
-Classical
-Modern
 Introduction
Understanding and applying the best practices from workplace
management theories can help you more effectively guide your team
to success.

Many of these theories gave rise to the leadership approaches

commonly used to lead and grow organizations today.
 What are management
theories?
Management theories are a collection of ideas that recommend
general rules for how to manage an organization or business. They
address how supervisors implement strategies to accomplish
organizational goals and how they motivate employees to perform at
their highest ability.
Benefits of management theories
1. Increased productivity: Using these theories, leaders learn how to make
the most of their team members, improving performances and increasing
productivity.
2. Simplified decision making: Management theories give leaders
strategies that speed up the decision-making process, helping those
leaders be more effective in their roles.
3. Increased collaboration: Leaders learn how to encourage team member
participation and increase collaboration among an entire group.
4. Increased objectivity: Management theories encourage leaders to make
scientifically proven changes rather than relying on their judgment.
 CLASSICAL THEORY:-

These theories were practiced in 18th century. Most of these

theories has lost their relevance so for as modern
management is concerned. Some of the classical theories
are :
BUREAUCRACY THEORY:-
BUREAUCRACY THEORY:-
INTRODUCTION :- This theory was introduced by Max Weber in
18th century. At that time most of the organizations were not
developed in the management area.

APPLICATION:- This theory can be successfully applied in those

organizations where the scope of extension is limited.
Now this theory is limited only in some of the government
organizations where the scope expansion is very less. So this
theory is available in some of the government organizations of the
country.
 ELEMENTS:-This theory has the following
elements.

(01)RULES AND REGULATIONS:- This management is based on some

specific rules and regulations. All the employees of the management must
have to follow a stipulated rule and regulation. An uniform rule and principle
will be applicable to all the employees.

(02) HIEARCHY:- This element refers to the process and levels of

management. The authority level in this management is
downward(TOP-BUTTOM APPROACH). The power vested in each
employee is downward trend. The position and authority goes higher and
higher with the level of management. There is clear cut authority and
responsibility in each level of worker of the management.
(03)PAPER WORK.:- All the work in the management will be carried
out through paper evidence. No verbal work is permitted in the
management. Notice, circular, note-sheet, memorandum etc
should be the medium of work. The purpose of paper work in the
management is to keep all the records for future use and reference.

(04)EXPERT TRAINING:- The management will provide training and

orientation to all the employees in order to be expert. The promotion
of the employees in the management will be on the basis of training
availed by each employee.
 MERITS:-
01.GOOD STRUCTURE:- The workers under this management has
their own level according to their knowledge and skill. The position and
authority of each worker has been clearly defined in the management as
per their expertise. So the organization can be a structured one.
02. SPECIALISATION:- As training and orientation is the basis of
promotion for the employees most of the employees are considered to
be the specialized one.
03. STABILITY:- As all the workers are expert and the work is carried
out on written evidence the organization will be a stable one. It can
continue for a longer period of time and the work of every employee can
be verified in future.
04. RATIONALITY:- All the employees in this type of management
are considered to be rational in character. As all the workers are
expert they never interfere the work of other in the management. All
the workers are free to work in their own level as per their position and
authority.
05. DEMOCRACY:- A democratic work culture prevails in the
management. All the workers are efficient workers and they can
perform their duties and responsibilities in their own. Hence all are
independent in working.
 DE-MERITS
01. RIGIDITY :- The levels of management has been fixed in such a
way that each worker has developed a tendency of working in their own.
Hence a nature of rigidity tendency has developed in the mind of the
worker. They are not flexible so for work culture is concerned.

02. IMPERSONALITY:- As all workers are independent and expert in

their work no one take the help of his co-worker in work place.
Accordingly no one bother for the work of other in the management. So
there arises a tendency of impersonality in work.
03. COMPARTAMENTALISATION OF WORK. The work under this
management become bore & monotonous. The same type of work is
to be performed by the worker for all time to come due to non
availability of expansion scope. As there is less scope of promotion
the work become boring and compartmentalization.

04. EMPIRE BUILDING:- Each worker thinks to be a monarch of his

work. He thinks he is the only competent person to do the work in the
management. No other worker is authorized and able to perform his
work in the work place. This will create a monopoly situation in work
place.
05. RED-TAPE:- Refers to slow progress. As the duties and
responsibilities are vested on a single person and the workers are not
interfering the work of other it resulted in slow progress. The worker will
do his work as per urgency and priority. The work of urgency nature will
be performed and the routine work will not be take care of in the
management.

CONCLUSION:- By analyzing this theory we come to the conclusion that

Bureaucracy theory is not applicable in all the organization now. As most
of the organizations are multi-dimensional this theory cannot be applied
to achieve its objective. In some of the government organization. where
the expansion scope is limited this theory can be applied successfully.
 ADMINISTRATIVE THEORY:-
INTRODUCTION:- This theory was introduced by Henry Fayol
in 18th century. He has developed this theory on the basis of all
the principles of management system. According to Fayol if all
the principles of management will be applied in a system the
objectives of the management will be achieved.

APPLICATION:- This theory can be applied in all most all the

organizations. Commercial and non-commercial organizations
can apply this theory of management. As this theory is based
on all the principles of management it can be applied in public
sector undertakings also.
 ELEMENTS:-
1. Division of work, Besides these above principles as
2. Authority and responsibility,
3. Discipline, the elements of this theory Fayol has
4. Unit of command, emphasized that the functions like
5. Unit of direction, planning,organizing,directing and
6. Subordination to individual interest,
7. Remuneration,
controlling should be basis for all
8. Centralization, management. He also emphasized
9. Order, that the manager of the organization
10. Equity,
11. Stability of tenure,
must be a honest person having
12. Initiative, efficiency and integrity .
13. Unity.
 MERITS:-
01. ACHIEVEMENT OF OBJECTIVE:-As this theory is based on all
the principles of the management it is expected that it can fulfill all its
objectives.

02. SYSTEMATIC APPROACH:-This type of organization can

develop a system and on the basis of that system it can fulfill the aim
and expectation of its employees.

03. PRO MANAGEMENT:-As the manager of this type of

organization is honest and sincere person all the workers are
satisfied and they develop a pro management approach in the
organization.
 DE-MERITS:-
(A)NOT POSSIBLE IN DEVELOPING AND UNDER DEVELOPED
ECONOMY:- This theory of management is not possible in developing and
under developed economy. As this theory is based on all the principles of
management it cannot be possible for all the developing countries to apply
these principles in true spirit.

(B) BASED ON HYPOTHESIS(THEORY):-Some of the critics are in the

opinion that this theory is based on hypothesis. If all the principles applied
then only this theory will hold good. Otherwise this theory will be
meaningless. Hence based on this hypothesis this theory will not hold good.
CONCLUSION:- By analyzing this theory we can
come to conclusion that administrative theory of
management is not applicable in either
developing or under developed country. If all the
principles of this theory is applied then only this
theory will hold good. As India is a developing
country this theory cannot be applied in any
organization.
SCIENTIFIC MANAGEMENT THEORY:-
INTRODUCTION:-This theory was introduced by F.W.Taylor in 18th
century. The observations of Taylor towards management has been
utilized now in most of the organizations of 21st century. So Taylor is
considered as the father of modern management system..

Applications:- This theory can be applied in all most all commercial

and non commercial organization now. This type of management is
also suitable for public sector undertakings of both developing
and under developing countries.
 PRINCIPLES:- Taylor has developed the following
principles to prove this theory.

DEVELOPMENT OF WORK.:- This principle refers to that element of work of the organization.
According to Taylor the organization should develop a technique of work so that all the workers of the
organization can efficiently perform the work in the organization. The work should be divided among
all the workers of the organizations in such a way that the work can complete in time as per the
requirement of the organization.

SCIENTIFIC TRAINING:- Taylor has emphasized the training and orientation of the workers in order to
make them more efficient in their work. According to him training makes a worker perfect.

EQUAL RESPONSIBILITY:- For the first time Taylor introduced equal responsibility for the employer
and employee for the success and failure of the organization. According to him the contribution of both
parties leads to success and failure of the organization.
MOTION STUDY:- This principle is applied for the organization. Taylor has advocated that every
organization should prove its success with in a time period. After completion of that time period if the
organization fails to do so it should be closed down. In its place a new organization should be
established so that it can serve the society better.

TIME STUDY:- This principle is meant for the employees of the organization. Taylor clarified that every
employee should prove his efficiency with in a time period. After expiry of that time period if he fails to
do so the organization should drop that employee and in his place some new employees should be
recruited so that they can work better for the organization.

Now all most all the organization follow the principles of Taylor in their organizations. That is why
Taylor is regarded as father of modern management system.
MERITS:- The following are some of the merits
of this theory.
STANDARD OF PERFORMANCE:- This merit refers to the standard of performance of the
worker in the management. Taylor has advocated that each worker should work efficiently in the
organization and each element of work has divided in such a way that it can lead to success.

SPECIALISATION:- As training and orientation has been provided to all the worker in the
organization work and worker are specialized in character. They can able to perform their work
in more specialized way.

PARTICIPATIVE MANAGEMENT:- This theory has introduced the participative management

policy in the management. With this theory it can be possible that the workers can participate in
the management affairs of the organization.

WARNING FOR EMPLOYEE AND EMPLOYER:- As both employee and employer are equally
responsible for the success and failure of the business it is a warning for them to be vigilant in
the organization. Other wise time study and motion study will apply for them.
 DE-MERITS:-
MENTAL REVOLUTION:- This de-merits refers to the fact that both employee and employer will
blame each other for the failure of the organization as both are responsible for that. Hence a mental
revolution will always be the result in the work place.

CONFUSION IN PERFORMANCE:- This will be another de merit of this theory. When the
organization succeeds all will take the credit and when the organization fails no one will take the
blame. So there will be a confusion in performance.

RELATIONSHIP HAMPERS:- The interpersonal relationship between the employer and employee
will hamper in this type of theory. As the efficient employees can not care for the inefficient
employees in the organizational level. This will lead to reduce a suitable working environment in the
organization.
 CONCLUSION:- By analylising this theory we come to
conclusion that though this theory has introduced in 18th
century it has practical relevance in modern management
system.
 INPUT AND OUTPUT THEORY:-
INTRODUCTION:- This theory was introduced by C.I.Barnard.in 21st century. Barnard is an
industrialist and from his own experience he has described this theory of management.
According to him the management can achieve its objectives only when its input is good
and acceptable. The output of the organization can be possible when the process is
good. Both input and output can be possible when there is a suitable working
environment will be provided to all the employees.

APPLICATIONS:- This theory is applied in all most all the modern organizations now.
Both commercial and non-commercial organizations follow this theory of management in order
to achieve their goal.
 PRINCIPLES:-
The following are the principles of this theory.

INPUT:- This element refers to the employees of the organization. According to

Barnerd only qualified and efficient employees can render their services
properly for the organization. Hence it is desirable to recruit and appoint good,
qualified and efficient employees for the organization. So that it can achieve its
objectives in time.

PROCESS:- It refers to the training and orientation system in the organization.

It is desirable that all the employees of the organization should provide the
training and orientation in order to perform their duty and responsibilities
properly.
FEEDBACK:- This is the element which is necessary to evaluate the performance of the
employees periodically in the organization. On the basis of the feedback system the
employees can be promoted or demoted. This feedback will be a yardstick for the future
recruitment of employees in the organization.

ENVIORNMENT:- This element refers to the working condition provided to the employees
inside the organization. Barnerd described every employee should be provided a suitable
and favorable working situation so that they can work better for the organization. The
working condition should be suitable to all employees irrespective of their position and
authority in the organization. All employees should feel that there is a job satisfaction in
the organization.

OUTPUT:- This element refers to the objectives of the organization. With the help of
qualified and experienced employees who has been provided appropriate training and
orientation with good working environment as well as an evaluation system it can be
possible on the part of the organization to fulfill all the objectives in time. Achievement of
organizational objective is one of the important element of this theory.
 MERITS:-
GOOD STRUCTURE:- This is one of merit of this theory. As all the employees are qualified
and efficient and proper training is provided to all the employees the structure of the organization is
good
EFFICIENT EMPLOYEE:-The management can able to get efficient employees for the organization.
As feedback is a system and good working environment is provided to all the workers of the
organization the services of efficient employees can be possible.
EFFECTIVE CONTROL:- This type of management has good control over their employees. The
timely feedback system utilized by the management enables the workers to be good and honesty for
the organization. On the basis of the feedback the workers can be promoted and demoted in the
organization and hence the control system is good.
SATISFIED EMPLOYEE:- As the management provides a good and favorable working environment
to all its employees in the organization all the employees are deriving job satisfaction out of their work
. Hence they are satisfied employees of the organization and with the service of satisfied employees
the organization can able to achieve its objectives.
 DE-MERITS:-
This theory has no de-merit since no other theory has been introduced
so far in the management field.

CONCLUSION:- After analyzing this theory we can come to

conclusion that input and output theory is one of the best theory in the
management system. Most of the modern organizations are following
this theory on management now. The main objective of this theory is
achievement of organizational objective with the help of good and
qualified employees.
 th
5 Class
PRINCIPLES OF MANGEMENT:- Theories(ideas) vs
Principles(truth)

Every management has some principle. It is

desirable that the
management should follow the
principles in order to achieve its objectives.
Some of the principles of management are mentioned below.

( 12 Important Principles of Management)

1-Division of work: This principle refers that every work in the management should be
distributed among all the employees of the organization. While distributing the work it
should be noted that right man should be in right place. Work should be distributed to the
most deserved one and EXPERTISE as well as EXPERIENCE should be the basis of work
distribution in the organization. (RIGHT PERSON FOR THE RIGHT JOB)

2-Authority and responsibility: It refers to the principle that every employee must have
SOME AUTHORITY AND RESPONSIBILITY in the organization level. But it should be in
the basis of MORE IS THE AUTHORITY MORE SHOULD BE THE RESPONSIBILITY
AND VICE-VERSA. (PEOPLE SHOULD BE READY TO TAKE BOTH AUTH & RES)

3-Discipline: All the employees should follow discipline in the organization. It refers to a
system where the rules and regulations should be followed by each and every employee
irrespective of their post and position. (WELL DISCIPLINED CULTURE)

4-Unit of command: Command refers to order. It is desirable that the order should come
from a single unit and it should flow in a down ward trend so that it can be effectively
worked out in the organization.
5-Unit of direction: The direction should be from a single unit and the person who is in
charge of direction should be a COMPETENT PERSON who has considerable
experience and expertise in dealing and solving the problems of the organization.

6-Subordination of individual interest: This principle refers that it is desirable to forgo

the interest of a single employee in order to protect the interest of a large sections of the
employee in the organization. In no situation the organization should protect the interest
of a single employee and forgo the interest of large number of employees in the
organization.

7-Remuneration: It refers to the principle that each and every employee in the
organization should get financial benefit irrespective of their post and position. But the
financial benefit should be on the basis of experience and expertise of the employee.
Moe is the knowledge and expertise more should be the remuneration and vice versa.
8-Scalar chain: It is a principle which means the work of every employee in the organization should
be interlinked like a chain. There should be proper coordination among the workers of the
organization so that the objectives can be achieved.

9-Order: Each and every employee should follow the order of their superior. The order should flow
from top to bottom in order to carryout the work with in time frame.

10-Equity: All are treated equally in the organization. No one in the organization level is more
important or less important. The contribution of every employee is equal important for the
organization.

11-Stability of tenure: This principle refers that the employee should feel free in the organization.
This can be possible when an employee feels that he is secure in organization. Instability in tenure
means hamper the work culture in the organization.

12-Team spirit: Refers to the principle that all the employees should work as a unit so that the
objective of the organization should be achieved. Every employee should feel that united we will
stand and dived we will fall.
 IMPORTANCE OF MANGEMENT IN INDIA :
The concept of management has been proved to be true
and successful in all developed nations. India being a
developing nation feel the importance of management
concept.

The following are the importance of management in Indian

context.
01. IMBALANCED DISTRIBUTION OF WEALTH: It is suggested that due to absence of good
management system in India the equal distribution of wealth among the people is not possible till today.
The gap between rich and poor is widening day by day. So it is necessary to adopt a good management
system for equal distribution of wealth among the people of out country.

02. LARGEST NUMBER OF UNEMPLOYED YOUTH: India has largest number of educated youth who
are still unemployed and lead a miserable lively hood. In order to provide employment opportunity to them
it is necessary to have a good and productive management policy.

03. EASY AVAILABLITY OF LABOUR: It is found that availability of labor force in India is either free
or cheap. Due to absence of a good management system this labor force is either mis-utilized or
exploited. This can be utilized in productive way by introducing a good management system.

04. LOW INDUSTRIAL PRODUCTIVITY: It is suggested that the industries which are running in India
they are suffered due to less productivity. Higher productivity can be possible if these industries are
controlled and guided by a good management plan and policy.
05. RAPID INDUSTRIALISATION: It is felt that the economic growth of a country depends on its
industrialization. In India due to absences of good industrial policy it is not possible since independence.
Hence it is felt that a good management policy is necessary for rapid industrialization in the
country.

06. BELOW POVERTY LINE LIVING STANDARD: It is found that about 40% of the total population
are living below poverty line in India. In absence of a good management policy the situation is
becoming bad to worse. Hence the importance of a productive management plan should be
introduced in order to increase this living standard of the people.

07. LESS TECHNOLOGICAL DEVELOPMENT: Though we have developed a lot in science and
technology front it is not sufficient to develop our country. A better management policy should be
introduced in order to develop science and technology in our country to convert into a developed
country.

08. PROBLEM OF FOREIGN INVESTMENT: It is a problem for our country that less foreign investors are
coming for making business establishment. In order to attract large number of foreign investors it is
necessary to have a productive management policy for NRIs.
The above mentioned problems can be solved when India will introduce
a good management system and policy in the country. Hence the
importance of a good and productive management policy is felt for
converting India from developing nation to
developed nation in near future.
 Problem Solving Assignment-1
Do the assignment online and share this on SATURDAY. After
Friday class.

What are the functions of a Management? Explain in details.

Describe characteristics of management in your own words.

Describe Management theory, Its benefits and types. Which the best management theory, followed in
21st century?

What are the main challenges for India not becoming a developed nation?
 th
6 Class

MARKETING
MANAGEMENT.
 Introduction to
Market & Marketing Mix
INTRODUCTION TO MARKET: The concept of market was developed
by American Marketing Association. According to them market is a place where some
potentialbuyers and sellers are intended to involve in buying and
selling activity. They defined market “as the aggregate demand of the potential
buyers and sellers for a product.”

But the market concept is not new in India as there was a system called “barter system”
which was a different type of market situation practiced in our country. The meaning of
barter was exchange of goods and commodities for goods and commodities
Hence market has become a important factor for growth and development of economy of any
country now. So MARKETING MANAGEMENT plays an important management wing in
management field now. All developed and developing nations are trying to improve MARKETING
MANAGEMENT SYSTEM in order to improve their economic standard.

DEFINITION OF MARKET BY “PHILIP KOTLER”: MARKETING GURU

Kotler has defined market “as an area of exchange for potential

buyers and sellers who are interested in exchange of goods and
services in terms of money or monetary value with free
competition for transfer of ownership.”
 FEATURES:-The following are the features of a
market.

01. MARKET IS A PLACE OF EXCHANGE: This is the primary feature of a market. Market is a
place where exchange takes place among buyers and sellers. In a market there are two parties.
One is buyer and other is seller. Both the parties are interested in buying and selling activity.

02. EXCHANGE OF GOODS AND SERVICES: This feature refers to that not only goods and
commodities are exchanged by the buyer and seller in a market rather services are also exchanged
between them. Now it is one of the important feature of a market that it is dominated by services
marketing and the marketing management system largely depends of services marketing.

03. MONEY AND MONETARY VALUE: While exchange goods and services the buyer and seller
use the medium of exchange in form of money or monetary value. Where monetary
value refers to cheque, drafts and promissory notes which are used for exchange of goods and
services in a market.
04. FREE COMPETITION: This is one of the important feature of a market. It
means there should be large number of buyers and large number of
sellers in a market. No single seller can dominate the market and no single
buyer can influence the market condition. All the buyers are free to
purchase from any of the seller in the market and like wise any seller is
free to sale his goods and services to any of the buyer in the market. So
that a free competition can be possible in the market.

05. TRANSFER OF OWNERSHIP: It is necessary to transfer the ownership

among the buyers and the sellers immediate after the exchange of money or
monetary value. The buyer is supposed to get the ownership from the seller
and the seller is supposed to handover the ownership to the buyer.
 Class: 7
introduction to market &
marketing mix
 MARKET MIX:
This concept refers to those elements which dominate the
marketing management system. It is considered that without these
elements it is not possible to have marketing management system.
These elements are known as market mix and the entire marketing
management system is based on these four “P”
elements. They are:
 MARKETING MIX
1-PRODUCT MIX:
2-PRICE MIX:
3-DISTRIBUTION/PLACE MIX:
4-PROMOTION MIX:
PRODUCT MIX: This is the far most and one of the primary elements
of marketing management system. Without product there can be no
buyer and no seller. The marketing condition is available because the
products are available in the market for large number of buyers and
large number of sellers. Product mix is one of the major element of a
market. A product has design, colour, packing, warranty and after
sales services which influence the marketing management system.
PRICE MIX: This element is the determining factor for a market. Price
is the only element in a marketing management system where the
marketing organization earn some revenue. Price accounts the
revenue part of a market and it is necessary to fix an appropriate
price so that it will not adversely affect the sentiment of a buyer as
well as the seller in a market. Price consists of price policy, factors
of price, discount, rebate and terms of credit.
PLACE/DISTRIBUTION MIX: The buyers and sellers able to
exchange their goods and services in the market due to available of
distribution system. In absence of proper distribution system it will not
be possible on the part of the marketing organizations either to sale
the product or to buy the product in the market. It is divided into
distribution channel and physical distribution.
PROMOTION MIX: Due to competition among the buyers and sellers
in the market and available of large number of products in the market
it is necessary to promote the product. Now it is necessary to
promote the goods and commodities in order to attract large number
of consumers in the market. Without promotion the marketing
management system seems to be meaningless. Promotion includes
advertisement, sales promotion, personal selling and market
research which influence the marketing management system.
E) Local Marketing
Local marketing strategy involves nearby and neighbourhood areas. The
organizations use this marketing strategy to thrive on local connections
and make their presence felt. Amazon Local is a good example of a
local marketing strategy. The online service providers along with
local businesses come up with offers for hotel booking, spa
treatments, and restaurant meals at regular intervals. The local
companies earn good revenue with sales.

Reliance Fresh another example

D) Micromarketing
Micromarketing focuses on a much smaller section of people than
niche marketing. Micromarketing definition is customized marketing or
one-to-one marketing. The products are customized to the requirements
of the customer. The micro marketing strategies involve customer tastes,
whims, and wishes.

A good example of a micromarketing strategy is Etsy.com which

focuses on handmade goods taking orders from customers with their
specific requirements.
Another example is Red Bull. Reb Bull did not focus on its unique point
of being an energy drink but on a lifestyle. Red Bull focused on its
target audience ‘youth’ interested in sports.
 Class-11
Characteristics, Importance
and Elements of Product
the market due to available of distribution system. In absence of proper distribution system it will not
be possible on the part of the marketing organizations either to sale the product or to buy the

PRODUCT
product in the market. It is divided into distribution channel and physical distribution.

Meaning:- The general meaning of product is want satisfaction

capacity of goods and commodities for a consumer in the
market. When a consumer derives a bundle of satisfaction from a
commodity at the time of need it became a product for him. Product is the
primary element of a market. The entire marketing operation is surrounded
with the product. With out product it may not be possible on the part of a
consumer to go to the market and the seller is meaningless without a product.

A product has two utilities. One is economic utility and the other is
supplementary utility. Economic utility refers to that want satisfaction power
of a product related to the price and supplementary utility of a product related
to the extra satisfaction which the consumer derives from a product.
 PRODUCT-ELEMENTS
(A)BRANDING: It is the first element of a product. Without branding a product
cannot come to the market. Branding enables a product to be differentiate
from other products. It is the exclusive property of a product. Mis branding is
an offence and illegal. Branding is necessary due to the following reasons.
(01)It differentiate a product from other products in the market.
(02)Brand create market for the product and consumer can demand a branded product.
(03)A consumer can easily recognize a branded product in the market.
(04)Brand has its own advertisement and publicity for a product.
(B) PACKING: Packing is another element of a product which stimulate sale. With
the increase in number of products and large number of consumers in the market it is
necessary to attract large number of consumers for a product. Hence packing is
facilitating the consumers in the market due to easy handling and smooth operating. A
good packing ensures that it can serve the consumer in a better manner so that the
consumer is attracted towards that product in the market. Packing is necessary due to
the following reasons:

(01) It increases sale in the market and stimulate the sales process.
(02) Good packing can identify the product in the market.
(03) Packing serving as a medium of advertisement of a product.
(04) A good packing has a good image for the product.
(05) It helps the seller by instant selling and helps the consumer by instant
buying.
(C ) LABELLING: Now a days it is necessary to provide accurate
information about the product to the consumers in the market. It is the
right of every consumer to know about the product and labeling is one
of the important element of a product which provide accurate
information to the consumers. Labeling serves as a guide for the
consumers in the market. Labeling is necessary because It provides
information like :

1. It ensures the brand name of the product to the consumers.

2. Name and address of the manufacturer of the product.
3. Weight ,measurement and color of the product.
4. It provides information how to use the product.
5. Date of production and date of expiry of the product.
6. Maximum retail price of the product.
 Class-12
PRODUCT DEV PROCESS
 PRODUCT DEVELOPMENT PROCESS:
Product is one of the important element for a marketing organization. Due to large
number of consumers in the market it is a challenging task for the marketing
organizations while introducing a new product in the market. In order to be marketable
for a product the marketing organization follow a series of steps so that the new
product will be demanded by the consumers.

These steps are called as product development process. 6 STEPS

1. NEW PRODUCT IDEA: This is the primary step of product development process. In
this step the marketing organizations develop different ideas about the new product
according to the requirement of consumers in the market. While developing the new
idea the consent of the field supervisors who are directly and indirectly involved in
the selling process are taken into consideration so that they can suggest the liking
and disliking of the consumers. Example: kick start to self start of bike.

2. SCREENING OF THE IDEA: After developing different ideas now the marketing
organizations will see the relevant ideas and accept them and at the time other
irrelevant ideas may be rejected. This acceptance and rejection of ideas can be done
by a scrutinizing body who are expert in marketing line and aware the requirement of
the consumers in the market.

3. DEVELOPMENT AND TESTING OF THE PRODUCT: In this step the product will be
developed according to the recommendation of the scrutiny committee and the
product will be tested after production. While scrutiny it should be taken into
consideration that all the suggestion and recommendation of the scrutiny team has
been fulfilled and the product will prepared accordingly.
04. BUSINESS ANALYSIS: In This step it is the work of the marketing organizations to fix the
price of the product. This is one of the crucial step in product development process. Here the experts
of the financial wing take care for fixing the price of the product. The price of the product should be
fixed in such a way that the product will make good business in the market and it will not adversely
affect the sentiment of the consumers.

05. TEST MARKETING: After fixation of the price it is the work of the marketing organizations to
avail the product in the market. In this step instead of sending the product directly to the market the
marketing organizations test it with some selected cities and markets in order to know the
reaction of the consumers about the product. This enables the organization to test the liking and
disliking of the consumers and can able to study the sentiments of the consumers by sending the
limited product to the market. Now due to large number of consumers and variety of product are
available for the consumers in the market. So this step considers to be one of effective step for
marketing organizations to test the consumer sentiment.

06. COMMERCIALISATION: This is the last step in product development process. In this step
large number of products are available for the consumers in the market. After test marketing the
organization can alter and change the product according to the reaction of consumers in the selected
market and send large quantity of product to the market.
If all the above mentioned steps are taken into consideration and properly worked out then it
can be concluded that the new product can be marketable and demanded by the consumers.
 Class: 13
Product Life Cycle
 A product life cycle is the length of time from a product first being
introduced to consumers until it is removed
from the market.
 A product’s life cycle is usually broken down into four stages;
Introduction, Growth, Maturity, And Decline.

Product life cycles are used by management and marketing professionals to help determine advertising
schedules, price points, expansion to new product markets, packaging redesigns, and more.

These strategic methods of supporting a product are known as product life cycle management. They
can also help determine when newer products are ready to push older ones from the market.
 Importance of Product life cycle:

•Advertising Schedules
•Price Points
•Expansion To New Product Markets
•Packaging Redesigns

These strategic methods of supporting a product are

known as product life cycle management.
 Stages
1. Market Introduction and Development
2. Market Growth
3. Market Maturity
4. Market Decline
1. Market Introduction and Development
This product life cycle stage involves developing a market strategy, usually
through an investment in advertising and marketing to make consumers aware
of the product and its benefits.

At this stage, sales tend to be slow as demand is created. This stage can
take time to move through, depending on the complexity of the product, how
new and innovative it is, how it suits customer needs and whether there is any
competition in the marketplace. A new product development that is suited to
customer needs is more likely to succeed, but there is plenty of evidence that
products can fail at this point, meaning that stage two is never reached. For
this reason, many companies prefer to follow in the footsteps of an innovative
pioneer, improving an existing product and releasing their own version.
 2. Market Growth
If a product successfully navigates through the market introduction it is ready to enter
the growth stage of the life cycle. This should see growing demand promote an increase
in production and the product becoming more widely available.
The steady growth of the market introduction and development stage now turns into a
sharp upturn as the product takes off. At this point competitors may enter the market
with their own versions of your product – either direct copies or with some
improvements. Branding becomes important to maintain your
position in the marketplace as the consumer is given a choice to
go elsewhere. Product pricing and availability in the marketplace become
important factors to continue driving sales in the face of increasing competition. At this
point the life cycle moves to stage three; market maturity.
 3. Market Maturity
At this point a product is established in the marketplace and so the cost
of producing and marketing the existing product will decline. As
the product life cycle reaches this mature stage there are the
beginnings of market saturation. Many consumers will now have bought
the product and competitors will be established, meaning that branding,
price and product differentiation becomes even more important to
maintain a market share. Retailers will not seek to promote your
product as they may have done in stage one, but will instead become
stockists and order takers.
 4. Market Decline
Eventually, as competition continues to rise, with other companies seeking to
emulate your success with additional product features or lower prices, so the life
cycle will go into decline. Decline can also be caused by new innovations that
supersede your existing product.

Many companies will begin to move onto different ventures as market saturation
means there is no longer any profit to be gained. Of course, some companies will
survive the decline and may continue to offer the product but production is likely
to be on a smaller scale and prices and profit margins may become depressed.
Consumers may also turn away from a product in favour of a new alternative,
although this can be reversed in some instances with styles and fashions coming
back into play to revive interest in an older product.
Product Life Cycle Strategy and Management
Having a properly managed product life cycle strategy can help extend the life cycle of your
product in the market.
The strategy begins right at the market introduction stage with setting of pricing. Options include
‘price skimming,’ where the initial price is set high and then lowered in order to ‘skim’
consumer groups as the market grows. Alternatively, you can opt for price penetration,
setting the price low to reach as much of the market as quickly as possible before increasing the
price once established.
Product advertising and packaging are equally important in order to appeal to the
target market. In addition, it is important to market your product to new demographics in order to
grow your revenue stream.
Products may also become redundant or need to be pivoted to meet changing demands. An
example of this is Netflix, who moved from a DVD rental delivery model to subscription streaming.

Understanding the product life cycle allows you to keep reinventing and innovating with an
existing product (like the iPhone) to reinvigorate demand and elongate the product’s market life.
 Examples
TELEVISION

TYPE WRITER

VCR

NOKIA----SMART PHONE

ELECTRIC VEHICLES

FLOPPY----DVD-HDD----

DESKTOP—LAPTOP—PALMTOP----

AI, ROBOTICS

CLOUD COMPUTING
 Class-8
Market Segmentation
Market Segmentation and Targeting
Market segmentation and targeting refer to the process of:

•Identifying a company’s potential customers,

•Choosing the customers to pursue, and
•Creating value for the targeted customers.

It is achieved through the segmentation, targeting, and

positioning (STP) process.
Summary

Market segmentation and targeting help firms determine and acquire key
customers.

Consumers can be put into segments based on location, lifestyle, and

demographics. Another way to segment consumers is by asking the
who, what, and why questions.

Segmentation and targeting influence a company’s strategy for pricing,

communication, and customer management.
Segmentation is the first step in the process. It groups customers
with similar needs together and then determines the characteristics
of those customers.

For example, an automotive company can split customers into two

categories: price-sensitive and price-insensitive. The
price-sensitive category may be characterized as one with less
disposable income.
The second step is targeting, in which the company selects the
segment of customers they will focus on. Companies will determine
this base on the attractiveness of the segment. Attractiveness depends
on the size, profitability, intensity of competition, and ability of the
firm to serve the customers in the segment.

The last step is positioning or creating a value proposition for the

company that will appeal to the selected customer segment. After
creating value, companies communicate the value to consumers
through the design, distribution, and advertisement of the product.
For example, the automotive company can create value for
price-sensitive customers by marketing their cars as fuel-efficient and
reliable.
 How do Companies Segment
Consumers?
The most common way to segment consumers is by looking at
geography, demographics, psychographics, behavior, and
benefits sought. Psychographics include the lifestyle, interests,
opinions, and personality of the consumer.

Behavior is the loyalty, purchase occasion, and usage rate of the

buyer, and benefits sought are the values the consumer is looking
for, such as convenience, price, and status associated with the
product.

Another way to segment consumers is by asking why, what, and

The 4 types/bases of market segmentation
are:-
Geographic Market Segmentation
Demographic Market Segmentation
Psychographic Market Segmentation
Behavioral Market Segmentation
 Class-9
Target Marketing Strategies
 TARGET MARKETING STRATEGIES
DEFINITION:

A product or service is designed to suit the needs of the market. At

times, the products appeal to all or a section of the market. The product
that appeals to everyone falls under the mass marketing strategy.

Certain products are manufactured for a particular section of people.

This section of people is known as the ‘target audience’.

The marketing strategy focusing on the target audience is known

as a target marketing strategy.
 VARIOUS TARGET MARKETING STRATEGIES
Broadly the target marketing strategies are classified into the following types
Mass Marketing
1. Segment Marketing
2. Niche Marketing
3. Micro Marketing
4. Local Marketing

Few market targeting examples are:

Nike with sports shoes targeting sports playing audience.
A niche strategy example is Dior. The brand has set itself apart with its unique designs.
A) Mass Marketing
Mass Marketing involves marketing to the entire population with a
single strategy. Mass marketing focuses to reach everyone with
maximum exposure to the product. An attempt is made to spread the
message to everyone with mass media such as TV, newspaper, and
mobile.

Regularly consumed products like toothpaste and toothbrushes,

mass marketing is all that is needed.
B) Segment Marketing

Segment Marketing known for its differentiated targeting strategy

focuses on a section of people known as the ‘target audience’. The
target marketing concept is to attract customers to their products. This
segment of marketing fetches good results for new products entering
to market with established organizations. This differentiated
marketing is expensive. The differentiated marketing strategy can be
designed uniquely for the different target audiences.

E.G. MCDONALD, KFC,

-Hungry teenagers
-Small children and the rest of their family
C) Niche Marketing
Niche marketing also known as concentrated marketing targets a small section
of the market. The entire campaign is around this small section of the market.
Luxury goods like Rolex and Armani are examples of niche marketing. Niche
marketing yields results for small companies with limited production and sales.
There are advantages and disadvantages to niche marketing.

Advantages of niche market segment are:

Generates high revenues.
Loyal customer base.
Competition is less.

Disadvantages of niche marketing are:

The market is small.
The scope for growth is less.
Less competition so keenness to improve is minimal
 Class-15
Price And Its Objectives
 PRICE
MEANING: Price is another element of marketing management system. This element enables
the marketing organization to earn some revenue for the organization. In general sense price is the
perceived value of a product for the consumers in the market. The expected
satisfaction from a product and the price of the product is directly interrelated with each other.
The general tendency of a consumer in the market is to purchase a qualitative
product with a low price. So price is one of the important and crucial
element in market and marketing management system.
OBJECTIVES: Fixation of price is one of the crucial task for the marketing
organizations. Because it is the price which enable the organization to earn
revenue and the growth and development of the organization depends on this
price factor only. Keeping this in mind the marketing organization fix a
competitive price for the product so that this will not adversely affect the
consumers in the market. The following are some of the objectives while
fixing the price of a product.

1.RETURN ON INVESTEMENT: Every finished product incur some

investment before coming to market. The investment made in form of raw
material, labor and other expenditure during manufacturing process. So the
price should not be less than the amount spent on the product during
production. Whatever investment is made it should be returned back by fixing
the price of the product. The price should be fixed in such a manner that
the amount of investment should be returned back and the product will
be demanded by the consumers.
2. PROFIT TARGET: Profit is one of major component of marketing
organizations. The targeted profit amount differ from organizations to
organizations. While fixing the price of a product it should be taken into
consideration that what should be the profit and what should be the price of the
product. The price should be fixed in such way so that the targeted profit
will not hamper and at the same time the product can be marketable.

3. SALES GROWTH: It is desirable to increase the sale. To increase sale it is

only weapon for marketing organizations is price. As price is only consideration
for large number of consumers in the market. Every consumer desires to
purchase a qualitative product with a low price. So increase in sale can only be
possible with a low price. Hence while fixing the price of a product it should
be taken into consideration that the price will not adversely affect
sentiment of the general consumer which will directly hamper the sale in
market.
4. FACE COMPETITION: Now marketing organization face stiff competition in the market in terms
of product. Large numbers of products are available for the consumers now and the product have
various price. So to compete with other organizations in the market it is necessary to fix the price of the
product in such a way that it will be different from other competitors of the market. Instead of other
considerations it should be noted that the price of the product should be comparatively less than the
other competitors in the market.
5. PRODUCT IMAGE: Some marketing organizations desire to maintain the image of their product
in market. Accordingly they never compromise with the quality and price of the product. So they charge
high price and consider the quality not the quantity of the product. For them the quality of the product is
much more important than the price of the product and accordingly maintain high price for their product
in the market.
6. SOCIAL NEED: Some time society desires the price of some products should be accordingly to the
requirement of social obligation. As the price of ration card rice is less than the price of the rice
available in the market. The price of BPL wheat and sugar is less than the price of wheat and
sugar available in the market. Hence price has been fixed for some products according to the
requirement of the society.
PRICE POLICY: All marketing organizations follow a price policy while fixing the price of their
product. Some of the price policies are mentioned below.
1.PRICE-IN –LINE: This is a price policy where the price of the product has been fixed as per the price available
in the market . This type of policy is applicable to those products which are already available in the market.
Generally when the marketing organizations introduce new products this policy is applicable for those products
and the price will be as per the price already existed in the market.
2. MARKET-PLUS: When the price of the product is more than the existing price already available in the market it
is called market plus price policy. This policy is applicable for those products which are superior and improved in
quality than the existing product available in the market. The qualitative product if available than the price will be
more than the existing price of that product and this policy is called market plus price policy.
3. MARKET-MINUS: When the price of the product is less than the existing price already available in the market it
is called market minus price policy. This policy is applicable for those products which are inferior and suffered any
manufactured defect in quality than the existing product available in the market. When less qualitative product is
available in the market the marketing organizations follow market minus price policy which is less than the price
already available in the market.
4. NON-PRICE-COMPETITION: In this policy neither the price is increased nor the price is decreased rather
some non competitive devices are introduced by the marketing organizations. The purpose of introduction of
some non competitive devices like free home delivery, free insurance, free service for one year and buy
two get one free etc in order to attract the consumers to sale more.
Whichever may be the price policy the purpose is to sale more and fix a price so that it will not adversely affect the
sentiments of the large number of consumers in the market.
 Class-16
Factors Of Price
FACTORS OF PRICE:( how price is affected)? Price is one of the important
factor for each and every marketing organizations. It is crucial for them to fix a suitable price of the product so
that it can be acceptable by large number of consumers in the market. The following are some of the factors
which determine the price of a product in the market
01. LIFE CYCLE OF THE PRODUCT: Price of a product depends on its life cycle. In a market there are two
types products are available. One is durable and other is perishable. Durable products last for a longer period
and perishable products do not last for a longer period. So long lasting products cost more than the perishable
products as they can perish with in a short time. Hence considering the life span of the product the price is fixed.
02. COST INVOLVED IN A PRODUCT:-Every product has a manufacturing cost in form of raw material, labor
and expenses. The price of the product is fixed according to the cost involved in the product. More is the
manufacturing cost more is the price and less is the manufacturing cost less is the price. Hence manufacturing
cost is a factor for fixing the price of the product.
03. CONSUMER REACTION: All the products are meant for the consumers in the market. The liking and disliking
of the consumers for a product is one of the factor for determination of the price of that product. If the consumer
reaction is favorable the price of the product is more and if the consumer reaction is negative the price is less.
04. DISTRIBUTION CHANNEL: Distribution channels are a link between the producer and the consumer in the
market. The consumers are able to get the product from the market due to availability of distribution channel for
that product. Some products are coming to market with direct distribution channel and others are coming through
indirect distribution channel. If direct distribution channel is available the overhead will be less and the price will
be less and vice versa.
05. GOVERNMENT REGULATION: Price of some products are decided on the basis of rules and regulation of
the government. Some times the government also fix the price of the product. Some products are coming under
MTP marginal trade practices, some products are coming under ETP essential trade practices and some
 Class: 17
Importance of distribution
channel
 Definition
A distribution channel is a network of intermediaries that facilitates
product delivery from the manufacturer to the end consumer and
transfers payments from the buyer to the producer.

In other words, it is the route through which a product travels from the
production end to the point of consumption.
A distribution channel is a network of distributors or intermediaries that ensures
the delivery of products from manufacturers to end-users.

It is also responsible for the transfer of payments made for purchases by

customers to producers.

It could be direct (manufacturer to consumer) without any middlemen or

indirect, where intermediaries (wholesalers, retailers, distributors) are involved.

The choice of the marketing channel depends on the cost of distribution

involved, sales goals, business and product type, and targeted market.

Its functions include supplying market information to the producer,

financing its operations, promoting its products and services, maintaining
product price stability, minimizing market risk, etc.
Importance of Distribution Channel
Distribution channels are one of the important element in marketing management system. Without
distribution channel it is impossible to carry out marketing activity. The following are some of the
importance of distribution channel:-

1-DISPERSION OF GOODS AND COMMODITIES:- Due to availability of distribution channel

goods and commodities are distributed easily in the market. Both the seller and the buyer are able to
carry out their activity in the market. Non availability of distribution channel may create problem for the
producer to send their products to the market and hence the customers will face problem for getting their
desired product from the market. So for smooth distribution of goods and commodities it is
necessary to have distribution channels in the market.

2-CREATION OF EMPLOYMENT OPPORTUNITY: This is another importance of distribution

channel in the market. With the increase of distribution channel more and more retailers, wholesalers,
agents and distributors are engaged in marketing activity which leads to provide employment opportunity
in the society. Hence distribution channels can create employment opportunity.
3-REDUCTION IN NUMBER OF TRANSACTIONS: Business transactions increases when the buyers
and sellers are involved in marketing activity. More is the buyer more should be seller in the market so
that it can be possible to have smooth marketing. When a producer wants to sell his product to different
consumers then the number of transactions can increase accordingly. But availability of a distribution
channel can solve this problem as the distribution channel can easily sale the product to a large number
of consumers in the market.

4-ADVICE PRODUCERS ON PRICE: Distribution channels are coming direct contact with the
consumers in the market. So it is easy on their part to know the sentiments of large and different
type of consumers of the market. Price is one of the important consideration for a consumer in the
market. Accordingly when a new product enters into market and the reaction of the consumers for the
product as well as the price consideration can be known to the distribution channels. So the producers
can able to know the reaction of the consumers about quality and the price of the product through the
distribution channels.

5-ACT AS A COMMUNICATION CHANNEL: Distribution channels act as a communication device

between the buyer and the seller in the market. All the information about the product and the quality as
well as the price can be available with the distribution channels and at the same time the reaction of the
consumers are also available with the distribution channels. So the distribution channels are acting as
communication system between the buyer and the seller in the market.
 SELECTION OF GOOD
DISTRIBUTION CHANNEL:
Choice of a suitable distribution channel is one of the important task for marketing organizations. The
following are some of factors should be taken into consideration while choosing a suitable distribution
channel.
PRODUCT CHARACTERISTICS: There are two types of products are available in the market. One
type of product is durable and the other type is perishable. If the products are durable then indirect
distribution channel is necessary and if the product is perishable then direct distribution channel has to be
selected by the marketing organizations.

CUSTOMER CHARACTERSTICS: There are two types of customers are available in the market.
Some customers rural and others are urban customers. Rural customers have less purchasing power and
hence direct distribution channel is necessary for these type of customers. On the other hand if the
customers are urban based they have more purchasing power and hence they need indirect distribution
channel.
MIDDLEMAN CHARECTERISTICS: Availability of a middle man is one of the important element of
marketing management system. If middle man available easily then direct distribution channel is
necessary and when the middle man not available easily then indirect distribution is necessary for the
products. On the other hand if the middle man does not obey the rules and regulations of the marketing
organization then it is seems to be impossible to continue marketing system.

MARKETING ENVIRONEMENT: The situations in the market are not always favorable. Some time
unfavorable marketing situations are also available for the marketing organizations. When there is
favorable marketing condition|(people have money to buy) indirect distribution channel is applicable and
in case of unfavorable marketing condition(when no money) direct distribution channel is applicable.

COMPETITORS ATTITUDE: Now business organizations are facing steep competition in the market. As
a result the price of the product is a determining factor to face the competitors. In order to face the
competitors in the market it is necessary to select a suitable distribution channel for the product. Direct
distribution channel can reduce the cost of the product and it can be easy to compete with the
competitors in the long run on the other hand indirect distribution channel can increase the price of the
product so the facing the competitors in the short run is very difficult. Hence competitors attitude is one of
the important criteria for selection of a suitable distribution channel.

Whether it is direct or indirect distribution channel for the product it is necessary to select a suitable
distribution channel so that the marketing organization can enjoy large share in the market. At the same
time the consumers can able to fulfill their expectations from the market.
 Class-18
types of distribution channel
#1 – Direct Channel
It is where manufacturers or producers directly deal with customers
without having any middlemen involved. Businesses catering to the
low volume of consumers and targeting a narrower marketplace
consider this zero-level channel. Perishable and expensive goods
producers, such as bakers, meat and milk producers, and
jewelers, opt for this route.

The more common direct channels include door-to-door or mail

order or production plant or chain store or e-commerce.
#2 – Indirect Channel
This marketing channel is suitable for businesses that cater to a broader range of
customers and market segments. In this type of network, products travel from
producers through different intermediaries until reaching the consumers. The
intermediaries include wholesalers, retailers, and distributors.

Producers either trust large retailers to deliver their products to customers or connect
with wholesalers to do the job. These wholesalers distribute products to multiple small
retailers that make them available to consumers in their respective areas.

Based on the intermediaries involved, indirect channels can be:

One-Level (Manufacturer to Retailer or Distributor to Customer), e.g., clothing

and furniture stores.
Two-Level (Manufacturer to Wholesaler to Retailer or Distributor to Customer),
e.g., supermarket.
Three-Level (Manufacturer to Distributor/Agent/Broker to Wholesaler to Retailer
to Customer), e.g., dropshipping.
Functions Of Distribution Channel
1. Assembling, storing, bulk breaking, and sorting of products
2. Moving goods from warehouses to customers
3. Managing payment flow pre-sales or post-purchases
4. Providing market information to producers
5. Promoting the brand and its benefits to end-customers
6. Maintaining price stability by absorbing any price increase
7. Sharing the market risk with manufacturers
8. Getting a chance to promote themselves through the
distribution of products
DISTRIBUTION-MORE INFO
MEANING:- Distribution is one of the important element of marketing management system. It
is the link between the producer and the consumer in the market. The producers are producing
their goods and services and the consumers are searching them in the market. It is the distribution
channel which facilitates both the parties by having goods and services in the market for the use of the
consumers. So distribution channel is one of the most important element of a market and with out
distribution system the entire marketing management system will be meaningless and useless.
TYPES OF DISTRIBUTION CHANNEL: - The following are some of the distribution channels available
in the market. They are:

DIRECT DISTRIBUTION CHANNEL:

(A)PRODUCER TO CONSUMER: This is one of the distribution channel available in the market. In this
channel the producer can directly sell the goods and services to the consumers in the market or the
consumer can directly get the goods and commodities from the producer. This type of distribution
channel is very limited and restricted in the marketing management system. Ex-vegetables, cereals,
handloom and handicraft products and services.
INDIRECT DISTRIBUTION CHANNEL:
This is another type of distribution channel where some indirect agencies like retailer, wholesaler,
agent and distributor are involved in distributing goods and services to the consumers in the market.
Some of the indirect distribution channels are-

(B) PRODUCER TO RETAILER TO CONSUMER: This is one type of indirect distribution channel
where the role of a retailer is more significant. The retailer is a person or a group of persons who are
authorized by the producer to sell their goods and commodities to the consumers in the market. The
role of a retailer is a link between the producer and the consumers directly in the market. The retailer
is authorized to sell the goods and commodities directly to the consumer on behalf of the producer.
EX- BATA shoes, DCM cloths etc. , JIO MART, CARS, BYKES

(C ) PRODCER TO WHOLESALLER TO RETAILER TO CONSUMER: This is another indirect

distribution channel in the market. In this channel the role of a wholesaler is more significant. The
wholesaler is a person or a group of persons who are authorized by the producer to sell the goods
and services either to the consumers directly or through the retailer in the market. When the
wholesaler sale the goods and commodities directly to the consumer it is called wholesale price and in
case of retailer it is retail price. EX- All consumer goods like rice, wheat, sugar, stationeries etc.
(D)PRODUCER TO AGENT TO WHOLESALER TO RETAILER TO CONSUMER: In this indirect
distribution channel the role of an agent is much more important. The agent is a person or group of
persons who enter into an agreement with the producer to sale the goods and commodities to the
consumers in the market. The agent has the agreement which authorizes him to sale the product on
commission basis and if the agent is not able to achieve the target his agreement can be terminated by
the producer. The agent is entitled to get sales commission over and above the targeted sale from the
producer. The agent can appoint wholesaler or retailer according to the market situation in order to
achieve sale target given by the producer. EX- Medicines, Fertilizers, Chemicals etc.

(E)PRODUCER TO DISTRIBUTOR TO AGENT TO WHOLESALLER TO RETAILER TO CONSUMER:

This is the longest distribution channel available in the market. In this type of channel the role of a
distributor is significant. The distributor is a person or a group of persons who entered into an agreement
with the producer for either sale or produce the goods and commodities for the consumers in the market.
In case of production the distributor invests capital with the producer and entitled to get profit out of the
product. In case of sale the distributor is authorized to get profit on sale according to capital contribution
ratio. The distributor will utilize the services of agent, wholesaler and retailer according to the need of the
marketing situation. EX- Defense products, Pesticides and Insecticide products.
 ADVERTISEMENT
MEANING: Advertisement is one of the promotion tool in a market . Now a days it is
advertisement only used as a marketing tool so that the product can be marketable for the business
organizations. Whether it is product or service both required advertisement otherwise it is impossible on
the part of the marketing organizations to market their products. Due to increase in number of sellers,
buyers as well as products in the market it is impossible on the part of the consumers to know about the
availability of these products and services. In order to inform the old and the new product and services
available in the market advertisement is one of the best medium of promotion used by the marketing
organizations.

DEFINITION:"A paid communication message intended to

inform people about something or influence them to buy, try,
or do something.
 FEATURES
FEATURES: By analyzing the above definition the following are some of characteristic features of
advertisement.
01. NON PERSONAL PRESENTATION: Advertisement is a non personal presentation of information
and ideas about the goods and services mean neither the producer nor the consumer present when there
is advertisement. Rather a third party is responsible for the advertisement.
02. IT IS IN A PAID FORM: This feature means every advertisement incurs some expenses. With out
payment it is not possible to have advertisement for goods and services. When ever there is
advertisement it is always in a paid form. Organizations must have to pay for the advertisement and
hence it is considered as a permanent expenditure.
03. PROVIDE IDEAS AND INFORMATION: Advertisement provides ideas as well as information about
the existing products and new products in the market. So advertisement is a tool for the marketing
organizations by which the consumers can able to get ideas as well as the information for the products
available in the market.
04. IDENTIFIED SPONSOR: The person who is in charge of advertisement is known as sponsor. The
sponsor is a person or a group of persons who have considerable knowledge and experience about the
product and the market. The payment towards the expenditure of advertisement is payable to the sponsor
of advertisement.
05.POSITIVE RESPONSE: Every advertisement has a positive response for the seller and the buyer.
The positive response from the buyer is after advertisement he is convinced to make purchase and the
positive response form the seller is it helps him to sale more in the market.
 Objective of Advertisement
In marketing management system advertisement serves as a promotional tool for both sellers as well
as buyers. Considering this aspect the following are some of objectives of advertisement.

(A) TO INFORM AND SALE: The primary purpose behind advertisement is to promote sale of goods
and services in the market. At the same time advertisement is an useful tool for the buyers which
provide information and ideas about the new and old products available in the market. Hence he
consumers can have an idea for the product and they can able to purchase their liking products
from the market.

(B) PROMTION OF NEW PRODUCT: When a new product enters into the market it is the
advertisement which provide information to the consumers about its availability as well as its utility.
Hence due to large number of products and large number of buyers and sellers in the market it is
quite impossible to inform them about the new product . Hence the promotion of new product can be
possible through advertisement.
(C ) BRAND PATRONAGE: Every product before coming to market should be branded properly.
Branding of a product increases the loyalty among the consumers in the market. As advertisement
provides information to the consumers about the new product the brand of the product is known to the
consumers in the market. In order to attract the consumers it is necessary to create brand patronage
among the consumers in the market.

(D) SUPPORT DISTRIBUTORS: Distributors are one of the important portion of marketing
management system. When there is advertisement the distributors are pro active as the products should
be available to meet the demands of the consumers in the market. Hence more is the advertisement
more is the responsibility of the distributors in the market.
 Media of Advertisement
(A) OUT DOOR MEDIA: This type of media is generally meant for the outside customers of the
market. Here outside means the advertisement is in public places like road side, market area,
exhibitions, melas where large number of people are gathering. In this type of advertisement
both educated and uneducated customers can able to get information about the old product
and new product available in the market. The purpose of this type of advertisement is to
inform large number of consumers at public places about the goods and services available in
the market. EXAMPLE- Hoardings, Slides on the road side, Electric bulb, Sky advertisement,
Vehicular advertisement etc etc.

(B) PRESS ADVERTISEMENT: This type of advertisement is specially meant for educated
people. In this type of advertisement the information contain in published material so that it
can be used by large number of educated people of the market. In this type of advertisement
the information is available for a particular time period and after expiry of that time period the
information may not be available for the customers. EXAMPLE: News paper, Magazines,
Journals, Leaflets, periodicals etc etc.
(C ) MAIL ADVERTISEMENT: This type of advertisement is specifically meant for a type of customers
in the market. Under this advertisement the consumer has already have some information about the
goods and services available in the market. This advertisement provide some additional information and
idea about the product so that the existing customer can able to get more information about the product
and the services available in the market. EXAMPLE- Circular letters, Price lists, Calendar, Leaflets,
Broachers etc.
(D) OTHER ADVERTISEMENTS: With the increase in use of electronic media now a days
advertisement can also made in other medias particularly in different electronics medias. This type of
advertisement is cheaper than all other type of advertisement and can attract large number of
consumers in the market. EXAMPLE- Radio, Television, Cinema Slides, Internet, Computer etc.

E-Broadcast Advertisements
What Are The Objectives Of Advertisements?

To Inform about the brand or offering and increase

the brand awareness and brand exposure in the
target market.
To Persuade the customers to perform a specific
task like buy or try a product or provide some
information.
To Remind and reinforce the brand message and
reassure the target audience about the brand vision.
• Building brand:
• Increasing sales:
• Creating demand:
• Engaging with the target audience:
• Expanding customer base:
• Changing customers’ attitudes:
 FUNNY INDIAN AD
https://www.youtube.com/watch?v=2kab-8_q4Qw
MERITS AND DE-MERITS
OF ADVERTISEMENT
 MERITS OF ADVERTISEMENT:-
Advertisement is a promotional tool for the marketing organization in order to promote goods and
services in the market before the consumers. The following are some of merits of advertisement.

(A) PROVIDES ADEQUATE INFORMATION: The basic objective of advertisement

is to provide information about the goods and services available for the consumers in the market. In this
competition era it is difficult on the part of a consumer to know all about the products available for them.
Hence advertisement is only tool which perform the work of information as well as idea about different
goods and services available for them. It is advertisement which is a information provider to the
customers in the market.
(B) HELPS MASS PRODUCTION: It is possible to increase sale through advertisement.
When more and more advertisement are made the chance of selling goods and services increases
proportionally in the market. In order to sell more large number of stocks are required which can be
possible through production. As a result advertisement increases production level in the market.
(C) BUILD BRAND LOYALITY: Branding is one of the necessary element of a product.
The customer is able to know about different information available for him in the market. This
information sharing has an advantage to build brand loyalty among the consumers in the market.

(D) INCREASE EMPLOYMENT OPPORTUNITY: Advertisement is a skillful act. It

is possible by engaging both skilled and unskilled workers in the market. Skill labor is necessary for
press advertisement and unskilled laborers are necessary for out door advertisement. Hence with the
increase in number of advertisement the possibility of engaging large number of both skilled and
unskilled labor is necessary. Accordingly the income of the people can increase simultaneously. As a
result employment opportunity has been created in the society and hence the scope of income will also
improve.

(E) IT HAS AN EDUCATIVE VALUE: Advertisement provides educative value to the

consumers of the society. Some of the contents of advertisement is meant to awareness among the
public and information are quite helpful in day to day life. Most of govt. sponsored advertisement is
applicable for the benefit of common people in the market. Advertisement by school and mass
education, Water resources, Electricity and Power, wine, intoxication are some of educative valued
advertisement which are beneficial for the common people in the society.
 Demerits of Advertisement
(A) INCREASE THE PRICE: It is felt that every advertisement increases the price. As
advertisement has some expenditure and the expenses on advertisement goes to the value of the
product. When there is an advertisement and immediately after the advertisement generally the
price of the product increases. hence it is said that more is the advertisement more is the price of the
product in the market.
(B) CREATION OF WASTE: Some of the marketing experts are in the opinion that
advertisement is a wasteful expenditure. Whatever expenditure is incurred in advertisement it can be
utilized for improvement in the quality of the product. So that the consumers will not go for
advertisement. As a result the price of the product will not increase in the market. So the critics of
marketing management considered advertisement is a wasteful expenditure.
(C) CREATE MONOPOLY: Some of the critics are in the opinion that advertisement create
monopoly situation in the market. Because the financial sound organizations are able to make
advertisement as they are capable of make expenditure. But financial weak organizations are not in a
position to have advertisement due to their financial condition. In this condition a day will come where the
products of financial sound organizations are available in the market and financial weak organizations
product will disappear from the market. There will be a monopolistic situation in the market.
(D) FRAUD ON CONSUMERS: It is said that advertisement is a fraud and sometimes it
betrays consumers in the market. Because the contents of advertisement are not quite applicable for the
benefit of the consumer for which it is meant. The consumers are deceived through advertisement. So
some of the critics of marketing management considered it is a fraud for the consumers in the market.

(E) CREATE ACCIDENTS AND HAZARDS: It is one of the drawbacks of

advertisement. The people some time imitate the process of advertisement and it create accidents and
hazardous situation in the society. So instead of providing information and idea for a product
advertisement is responsible to create accidents and hazardous situation.
CONCLUSION: By analyzing advertisement and its merits and demerits it can be concluded that it is a
promotional tool and with the help of advertisement the marketing organizations can able to mobilize the
customers in the market to improve sale. At the same time the buyers are also able to get more and more
information as well as idea about the goods and services are available in the market and accordingly they
have the flexibility for purchase of goods and services from the market. A good advertisement can not
only increase sale but also increase the ability to purchase and create awareness in the market.
 SALES PROMOTION
https://theinvestorsbook.com/sales-promotion.html
 PROMOTION

MEANING: This is one of the important element in marketing management system. With the

necessary
PROMOTION
growth of number of consumers, number of sellers and number of products in the market it is

to promote sale as well as promote the

product with different forums. Now with out promotion it is impossible to
sale a product in the market and the consumers are in a mood to see the promotion aspects of the
product in the market. This promotion is divided into four categories. one is sales promotion, two is
personal selling, three is advertisement and four is market research. All these branches of
promotion directly related to marketing management system and how to sell more to the consumers
in the market.
Thank You!

Q&A