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Table of Contents

S. No.

Topic

Page No.

What is Marketing?

Concepts of Marketing

Old Vs New Concepts of Marketing

Seven Ps of Marketing

Varied Avenues for Marketing

Organic Products

11

Consumer Behaviour

14

2|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

What is Marketing?
Marketing is the process used to determine what products or services that is in the interest of the customers and that fulfils the customer requirements. The best way to generate awareness about your product is the Word of Mouth. Other than this it generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is the strategy for allocating resources (time and money) in order to achieve your objectives (a fair profit for supplying a good product or service). Marketing may be narrowly defined as a process by which goods and services are exchanged and the values determined in terms of money prices. That means marketing includes all those activities carried on to transfer the goods from the manufacturers or producers to the consumers. We shall be learning later in the lesson that marketing is more than a mere physical process of distributing goods and services. It is the process of discovering and translating consumer wants into products and services. It begins with the customer (by finding their needs) and ends with the customer (by satisfying their needs). The scope of marketing can be understood in terms of functions that an entrepreneur has to perform. These include the following: a. Functions of exchange: which include buying and assembling and selling? b. Functions of physical supply: include transportation, storage and warehousing c. Functions of facilitation: Product Planning and Development, Marketing Research, Standardisation, Grading, Packaging, Branding, Sales Promotion, Financing

Concepts of Marketing
The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants i.e. the expectations of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. Under marketing concept, the emphasis is on selling satisfaction and not merely on the selling a product. The objective of marketing is not the maximization of profitable sales volume, but profits through the satisfaction of customers. The consumer is the pivot point and all marketing activities operate around this central point. It is, therefore, essential that the entrepreneurs identify the customers, establish a rapport with them, identify their needs and deliver the goods and services that would meet their requirements. The components of marketing concept are as under: a. Satisfaction of Customers: In the modern era, the customer is the focus of the organization. The organization should aim at producing those goods and services, which will lead to satisfaction of customers. b. Integrated marketing: The functions of production, finance and marketing should be integrated to satisfy the needs and expectations of customers. 3|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

c. Profitable sales volume: Marketing is successful only when it is capable of maximizing profitable sales and achieves long-run customer satisfaction.

Old Vs New Concept of Marketing

Old Concepts
The communication of the product was delivered ONE-WAY, and CREATIVITY was the secret sauce that commanded the audiences attention. Among the fundamental concepts of the OLD marketing paradigm:

S. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. Organize by Product Units

Old Concepts
Focus on Profitable Transactions Look Primarily at Financial Scorecard Focus on Shareholders Marketing does the Marketing Build brands through Advertisements Focus on customer acquisition No customer Satisfaction measurement Overpromise, Under Deliver

The Old Concepts of Public Relations (PR)

4|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

New Concepts
Its no longer TV, radio; newspapers; magazines; direct mail, etc. are meaningful and valuable. CONTENT that communicates and helps in making the suitable perception is the vehicle that captures audiences attention. The new means used for marketing are Websites, Blogs, Microblogs (Tweets), Social Media platforms (Facebook.com, Myspace.com, etc), and Article Directories, Videos, Mobiles, Telemarketing, B2B (Business to Business), B2C (Business to Consumer)

S. No. 1.
2. 3. 4. 5. 6. 7. 8. 9.

New Concepts
Organize by Customer (Customization) Focus on Customer lifetime Value Look also at Marketing Scorecard Focus on Stakeholders Everyone does Marketing Build Brands through behaviour Focus on Customer retention and growth Measure Customer Satisfaction and Retention Rate Under promise, Over deliver

The NEW Rules of Marketing and PR Since the internet is now one huge publisher, ANYONE can learn how to create compelling messages and publish them. Getting found online is the science and art. A few of the new rules include: a. b. c. d. e. f. People dont want spin they want authenticity People dont want to be interrupted anymore (its now called SPAM) People dont want to be told (push marketing), they want to be heard People want VALUE (content), which develops relationship and trust Marketing and PR can reach niche audiences online in a wider variety of ways Content is KING, and stays online, with no end to the campaign

5|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

Seven Ps of Marketing
1. 2. 3. 4. 5. 6. 7.
Product Place Pricing Strategy Promotion People Process Passion

Product
A product is anything, good or service, and that is needed in the market. All products can be broken down in to three components. The CORE PRODUCT is defined as the end benefit for the customer. For example, a person who buys a pair of shoes is buying comfort and foot protection. The next component is the FORMAL PRODUCT which refers to the actual item and includes its physical and psychological aspects. That same person who buys a pair of shoes is buying a brand name because they view it as best. The last component is the AUGMENTED PRODUCT which refers to the entire service or good including any additional support items like a warranty, service, or delivery. As a business owner you must take into consideration all aspects of a product because they each play an important role in whether or not customers choose your product over other products. Place Place is all about how your customers can get a product. It is incredibly important that business owners think about where their customers are, and how they will get their product to those customers. Positioning your business in the right place so that it is convenient for both i.e. your customers and from your manufactures standpoint is a great idea. The place also takes into consideration how the product will get to customers, meaning whether you will sell it directly or through a retailer or online. Pricing Strategy The price at which you sell your product depends on a number of factors. You must set a price that allows you to make a profit while also meeting your competitors prices or beating them. It also has to be the right amount to allow you to maintain and increase your customer base. To figure this out, you have to know how much it costs to get your product to a consumer including all costs, not just that of your raw materials. You will also have to do research to find out what your competition charges and what price consumers will pay. Promotion Promotion is the nuts and bolts of getting your message out to the public. This is mainly done through advertising in the form of radio, newspapers, television, and digital promotions. Getting the right message out to your core customers is a big task. You must try to find a balance between what your competitors are saying and what you need to say to give your product a positive image. There are many rules governing truth in advertising here in India, so be certain you comply with all regulations before you launch any promotion campaign. It is really important for a company to position its product well in the eyes of the customer. As through the above mentioned means company can make customer perceive what they actually manufacture. 6|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

People You might think that this P refers to customers, but it does not. The most important people in your business are the people who work with and for you. Hiring the right people is one of the most important things you will do for your business. They are the face of your product to the world as well as the hands behind the scene that make sure everything gets done correctly and on time. As a business owner you must work hard to develop your employees and to manage them with dignity so they want to work for you. You also have to figure out what you need done in your business so you can hire the right people to fill each position and task. Process Process takes into account all of the previous Ps to ensure that each customer has a good experience when they do business with you. Your process includes everything that you did to get your product to the consumer including all of the planning and paperwork and marketing that it took to do it. As you look at your process you have to ensure that you have planned for every possible scenario so that you can guarantee success. You also have to have efficient procedures in place that make your business run as effectively as possible. Also make sure you accurately document each step so you can control the quality of your product and services all the way down the line. You must also be able to review your procedures so that you can improve as necessary all the time. This is just brief overview of the 6 Ps of marketing. Once you have decided to open a business you will need to spend a great deal of time understanding them as they relate to your particular product. Each one plays an important role in the level of success your business can have.

Passion
Passion really matters. If you dont care, find someone who does to represent your precious Brand. Syndicated and proprietary research studies have quantified what you already know to be true: customers who love the (product or service) brands they use are more loyal, less price sensitive, more forgiving when things go wrong (and you make them right), purchase more of your products and services, and importantly, are much more likely to recommend your product and services to friends and families.

7|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

Varied Avenues for Marketing

Lots of people are talking about all the new forms of marketing a company can pursue. Its true, certain traditional marketing has been around for a long time and is still used today, but with the Internet now playing such a huge role in any companys success, people are coming out with more and more ways to market their products or services. The more we thought about all the different varieties of marketing, the more we realized there are so many different ways to promote something. Internet Marketing Internet marketing is any marketing strategy that takes place online. Also referred to as online marketing, it encompasses a variety of marketing forms like video advertisements, search engine marketing and e-mail marketing. It is the opposite of offline marketing, and can also fall under digital marketing. Internet marketing needs a good approach in areas of design, development and advertising. A company with a total web site marketing plan will have more success online than one that has just designed a web site without thinking of how to market their company through it. Offline Marketing Offline marketing, the opposite of online marketing, includes all forms of marketing that arent done on the Internet. Examples of offline marketing are local advertising in newspapers and on television. In todays marketing world, companies are finding ways to leverage their offline marketing campaigns with their online ones, making them complement each other. Outbound Marketing When you think of marketing, the different forms you come up with are mostly outbound marketing (also called traditional marketing). In fact, the majority of companies today are using different types of outbound marketing to reach their potential customers. Outbound marketing includes any marketing efforts that are taken to introduce a product or service to someone who isnt looking for that product or service. Some examples are cold calling, sending newsletters, billboards, and banner ads on different web sites. Inbound Marketing Inbound marketing focuses on having your company found by customers, as opposed to reaching out to them directly like in outbound marketing. The important thing to remember here is that a person starts out with the want/need to purchase a product or service, and they go out to find it. When they search for that product/service on a search engine, the search engine results page will show inbound marketing results. Instead of using paid advertisements, inbound marketing is the search engine optimization (SEO) part of web marketing. Newsletter Marketing Newsletter marketing and email marketing refer to ways of promoting your company through emails. Typically, a firm using newsletter marketing will have a group of contacts that they will send a newsletter containing some interesting information to. The success of newsletter 8|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

marketing depends on grabbing attention, writing good content and reaching a large number of potential clients. Article Marketing Businesses will often write articles related to the industry they are in and distribute them online and offline. These free articles will inform people about an important topic and give the company that wrote it more credibility within the market. The organization can also include their business contact information in the article, allowing them to get new clients. Trade Show Marketing Companies that want to reach a large number of potential customers can participate in public or private trade shows. Trade shows and other forms of event marketing are often a large investment to participate in, but trade shows allow companies to demonstrate new products and examine what is going on in the industry. Search Marketing Search engine marketing (SEM) is the way in which companies promote their business through paid placement on search engines like Google. Instead of increasing the organic search results that a website has, companies will pay to have their advertisements in the sponsored section of search engines. This is also known as Pay Per Click Advertising or PPC Direct Marketing Direct marketings main goal is to send a message directly to consumers, without having to use any third party outlets. . Direct marketing is often preferable because the results can be easily measured, giving the marketer a better understanding of the success of that campaign. Niche Marketing When a product or service is not being readily supplied to a certain portion of a market, a company can focus their efforts on that niche to address a need that isnt currently being addressed. This targeted marketing is successful because the marketer has identified a need that isnt being resolved by mainstream providers. Sometimes it is beneficial for a company to focus on a niche instead of trying to compete in a larger market. Social Media Marketing Social network marketing and social media campaigns provide a window to market a product or service on the Internet through different social networks. Companies can use these outlets for their marketing, customer service and sales. The most common and successful means of social media marketing are found on sites like Facebook, Twitter, LinkedIn, YouTube and even company Blogs.

9|Page Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

Referral Marketing One of the less strategic types of marketing, referral marketing relies on a companys customers to refer new customers to that company. Also called word of mouth marketing, this is a more spontaneous way of receiving new business, and can not be solely relied on because results arent very predictable. However, word of mouth is still a powerful part of a companys efforts to bring in new business, especially in the social media community where communication travels freely. Also known as Viral marketing, typically, a viral marketing campaign will not last as long as other marketing efforts, but if a company can come up with a good idea for viral marketing and reach the right people, it will become highly successful in a short amount of time. Promotional Marketing Promotional marketing is a common form of marketing strategy that companies use to motivate a consumer to make a decision and purchase their product. There are a number of ways that businesses will promote a product or service, including holding contests to win a prize, offering coupons for purchasing a product at a discount, and having samples of the product so people can experience it before they purchase. B2B Marketing Any type of business, whether an organization, individual, government or other institution that markets to other businesses is involved in business to business marketing. Since B2B marketing involves companies trying to sell mass quantities of product to one another, there is a more personal relationship that needs to be established between businesses. If your company sells to other businesses, your marketing efforts will most likely be more direct. B2C Marketing Campaigns on Business to consumer marketing try to reach a category of people that will be likely to purchase their product or service. The marketing efforts the company takes should be more rigorous than B2B, which focuses on specific companies. B2C marketing can involve different marketing techniques such as door to door marketing, promotion marketing, newspaper marketing, television marketing and radio marketing. In todays marketing world, B2C Internet marketing is becoming more important to reach consumers. Mobile Marketing Along with Internet marketing, mobile marketing is part of the newest groups of marketing activities. Companies have been experimenting with the certain ways to reach consumers through their phones, especially with the rise of Apples iphone. Some ways to marketing a product or service through a mobile phone include SMS marketing, in-game marketing, banner marketing on different web pages and location based marketing. Reverse Marketing This form of marketing is similar to inbound marketing. The goal of reverse marketing is to market a product in a way that will cause the consumer to seek the firm doing the marketing. Reverse marketing can be conducted through such means as television, print and Internet marketing. If a company has a product that solves a problem in the market, they will have more success using reverse marketing because they will seek out that product. 10 | P a g e Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

Organic Products

With the invention of chemistry in the late 18th century, scientists uncovered the incoherence of the traditional distinction: all material substances are constructed from the same set of chemical elements. Today we understand that the special properties of living organic matter emerge from the interactions of a large variety of large molecules built mostly with atoms of carbon, oxygen, and hydrogen. Organic foods are foods that are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives. For the vast majority of human history, agriculture can be described as "organic"; only during the 20th century was a large supply of new synthetic chemicals introduced to the food supply. The organic farming movement arose in the 1940s in response to the industrialization of agriculture known as the Green Revolution. Domestic retail avenues for organic produce have traditionally been the odd cottage emporium, fruit mart, bakery and kirana store along with an upmarket provision store here and a delicatessen there. `Today, however, marginal growth is slowly becoming evident in the increase in organised producers, retailers and product offerings in the market, where before the movement had been driven entirely by the spirit of individual initiatives of the farmers, the odd entrepreneur and non-governmental organizations. Various Organic Items 1. Organic Green Tea

a. Organic Tulsi Green Tea b. Organic Ginger Green Tea c. Organic Elaichi Green Tea d. Organic Masala Green tea

2. Organic Holi Colours

a. Organic Dhaani Green b. Organic Basant Yellow c. Organic Gulabi Pink

3. Organic Sugar 11 | P a g e Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

a. Golden Crystal Sugar b. Jaggery (Cane Sugar) c. Organic Forest Honey

4. Organic Pickles

a. Mango Pickle b. Lime Pickle c. Chilli Pickle d. Mixed Pickle

5. Organic Black Tea

a. Organic Tulsi Black Tea b. Organic Ginger Black Tea c. Organic Elaichi Black Tea d. Organic Masala Black tea

Another aspect of the organic food 'issue' at least in India is a common problem faced by organic farmers: the lack of a ready market and often unremunerative prices for their produce. In many cases, the grower does not receive timely payments from middlemen including organic food traders. Interested buyers of organic food on the other hand, cannot find what they need, at least not at reasonable prices. Supplies are often erratic or unreliable and in some cases buyers are not even sure if the food they are buying is indeed organic. Some of more Examples are illustrated below in the Table

S/No 1 2 3 4 5

Name of Organic Commodity Dehraduni Basmati Rice Basmati PADDY Long Grain PUSA -1 Basmati Long Grain Taraouari Basmati Long Grain PUSA-1121 Basmati Paddy conversion

Farm Gate Price Rs/qtl As on -2010-11 Cereals 7000-7500 2800-3100 2800-3100 2800-3000 2200-2400
12 | P a g e

Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

6 7 8 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 36 37 38 38

Red Rice Wheat Wheat Conversion Spices Red Chilly powder Turmeric Whole Dry Ginger Powder/dry Coriander Bhanga Tejpatta Jamboo Fern Bhanjeera Jeera (Cumin) Flour Finger Millet flour Wheat flour Amaranths Flour (Ram dana) Pulses Tuar dal Rajma Soybean(White) Soyabean(Black) Lentil Naurangidal Horse Gram(Kulath) Black Gram Others Wheat Dalia Mustard Oil Apricot oil Rose water Jaggary Powder Jaggary Cubes Rosemary Thyme Oregano Parsley

3800-4000 1400-1450 1300-1350 10000-11000 16000-16500 20000-25000 16000-16500 2000-2200 50000-55000 20000-250000 2000-2200 15000-20000 1500-1800 2200-2500 5000-5500 8500-9000 8500-9000 2200-2500 2800-3000 8500-9000 6500-7000 9000-12000 7000-7500 2500-2800 7500-8000 30000 25000 4500-4700 4200-4500 350 350 350 350
13 | P a g e

Medicinal and Culinnary Herbs DRY /kg

Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

38

Sweet Basil dry

2000

14 | P a g e Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

Consumer Behaviour
The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how a. The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); b. The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); c. The behaviour of consumers while shopping or making other marketing decisions; d. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; e. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and f. How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. One "official" definition of consumer behaviour is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points: a. Behaviour occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). b. Consumer Behaviour involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. c. Consumer Behaviour involves services and ideas as well as tangible products. d. The impact of consumer Behaviour on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. There are four main applications of consumer behaviour:
a. The most obvious is for marketing strategyi.e., for making better marketing

campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that 1. Companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success 2. It is important to please initial customers, since they will in turn influence many subsequent customers brand choices.

15 | P a g e Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

b. A second application is public policy. In the 1980s, Accutane, a near miracle cure for

acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. c. Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centres for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. d. As a final benefit, studying consumer behaviour should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, and awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.

Consumer Attitude
Consumer Behaviour has several attitudes for perceiving and positioning the product in their eyes. Consumer attitudes are a composite of a consumers: 1 2 3 Beliefs about Feelings about Behavioural intentions toward some object

16 | P a g e Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.

Within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object.

Beliefs
The first component is beliefs. A consumer may hold both positive beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be neutral (coffee is black), and some may be differ in valance depending on the person or the situation (e.g., coffee is hot and stimulates--good on a cold morning, but not well on a hot summer evening when one wants to sleep). Note also that the beliefs that consumers hold need not be accurate (e.g., that pork contains little fat), and some beliefs may, upon closer examination, be contradictory (e.g., that a historical figure was a good person but also owned slaves).

Affect
Consumers also hold certain feelings toward brands or other objects. Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it contains), but there may also be feelings which are relatively independent of beliefs. For example, an extreme environmentalist may believe that cutting down trees is morally wrong, but may have positive affect toward Christmas trees because he or she unconsciously associates these trees with the experience that he or she had at Christmas as a child. Behavioural Intentions The behavioural intention is what the consumer plans to do with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances--e.g., although a consumer does not really like a restaurant, he or she will go there because it is a hangout for his or her friends.

17 | P a g e Surabhi Mahajan (8212) BSc. (G) Mathematical Sc.