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  2. 2. UNIT: 1 INTRODUCTION TO MARKETING Meaning and definition Goals Concepts of Marketing Approaches to Marketing Functions of Marketing. Recent Trends in Marketing: • e-business • Tele-marketing • M-Business • Green Marketing • Retailing, Relationship Marketing Customer Relationship Management.
  3. 3. MARKET A market is a place where two parties can gather to facilitate the exchange of goods and services. the parties involved are usually buyers and sellers. The market may be physically like a retail outlet, where people meet face to face. According to Philip Kotler. “Marketing is an area of potential exchanges”
  4. 4. DEFINITION According to Philip Kotler and Gary Armstrong, “Marketing is a social and managerial process by which individual and groups obtain what they need and want through creating and exchanging products and value with others”. According to Theodore Levitt “Marketing is getting and keeping the customer”. According to Gini Dietrich “Marketing Is branding, naming, pricing and the bridge between paid and earned media. It is NOT sales”.
  5. 5. Marketing and society / consumers 1.Increase in the standard of living Importance of marketing, modern society is divided into three classes (1)Rich Class (2) Middle Class and (3) Poor class. Standard of living of society is mainly depends on purchasing power of these classes. Better standard of living needs, fulfillment of various wants, which is possible with the help of marketing. Hence, it can be stated that standard of living is a gift of marketing. In simple words, marketing improves the standard of living of society. 2.Employment opportunities Importance of marketing, marketing is a prominent instrument of employment. These processes include various activities such as buying, selling warehousing, transportation, grading, finance, risk undertaking, etc., which provides employment to the number of persons. Thus, marketing generates sufficient scope for employment to thousands of people and improve their income
  6. 6. 3. Economic stability Importance of marketing, marketing plays a vital role, in the economic stability of a country. Economic growth depends on economic stability. Economic stability depends on balance between production and consumption, i.e. demand and supply. To maintain balance in production and consumption marketing is necessary. Marketing maintains this balance and stabilizes the economy. 4. Creates utility Importance of marketing, marketing is an economic activity. It creates ownership, place and time utility in goods and services. Marketing creates demand. Various activities of marketing create utility. E.g. Exchange of goods offered, ownership, time utility and place utility is created due to warehousing and transportation. Thus, marketing provides value to the goods and services. It also provides goods at the right time at right place and at reasonable price. 5. Satisfaction of human wants Importance of marketing, marketing plays a significant role in the distribution of goods and services to the consumer satisfaction of their wants. It is the activity which transfers goods and service from the place of consumption to satisfy the needs of society. Thus, marketing has great importance in providing goods necessary to fulfill human needs.
  7. 7. Marketing and organizations 1. Gain income Importance of marketing, organizational profits depends on its income, while the future of organization depends on its profit. Importance of marketing, organizational profits based on its income, while the future of organization depends on its profit. Organizations can earn the profit through various activities. Marketing provides 'Market' to goods and services. The function of marketing develops, wants and fulfils the same. Organizations can spend on production and marketing through the income earned. 2. Marketing information Importance of marketing, modern economics is dynamic in nature. There are tremendous and rapid changes in likes, dislikes, price and demand. An entrepreneur has to take decisions according to changed environment. Entrepreneurs have to search new products, new customers, new market, new process of production and so on. Producer can collect all this information from various marketing sources and can introduce changes in their production, and can survive in the competition.
  8. 8. 3. Source and channel of new ideas Importance of marketing, Marketing is a significant and complex aspect of the modern dynamic economy. Dynamic changes constantly occur in the field of marketing, which is very essential for providing sources and channels of new ideas and guiding policies. 4. Decision making Importance of marketing, Producers produce goods and services. He has to take major decision like what to produce? Where to produce? How much to produce? All these decisions directly affect the profit. These decisions are major and hence are difficult to take. Marketing helps producers to take the proper decisions, at the right time. Hence, “Success” of business and proper decisions are interdependent, which is possible due to marketing.
  9. 9. NATURE OF MARKETING The Nature of Marketing (or Modern marketing) may be studied under the following points: 1.Human activity: Originally, the term marketing is a human activity under which human needs are satisfied by human efforts. It’s a human action for human satisfaction. 2.Consumer-oriented: A business exists to satisfy human needs; hence business must find out what the desire of customer (or consumer) and thereby produce goods & services as per the needs of the customer. Thus, only those goods should be produce that satisfy consumer needs and at a reasonable profit to the manufacturer (or producer). 3.Art as well as science: In the technological arena, marketing is the art and science of choosing target markets and satisfying customers through creating, delivering, and communicating superior customer value. It is a technique of making the goods available at right time, right place, into right hands, right quality, in the right form and at right price.
  10. 10. 4.Exchange Process: All marketing activities revolve around commercial exchange process. The exchange process implies transactions between buyer and seller. It also involves exchange of technology, exchange of information and exchange of ideas. 5. Starts and ends with customers: Marketing is consumer oriented and it is crucial to know what the actual demand of consumer is. This is possible only when required information related to the goods and services is collected from the customer. Thus, it is the starting of marketing and the marketing end as soon as those goods and services reach into the safe hands of the customer. 6. Creation of Utilities: Marketing creates four components of utilities viz. time, place, possession and form. The form utility refers to the product or service a company offers to their customers. The place utility refers to the availability of a product or service in a location i.e. Easier for customers. By time utility, a company can ensure that products and services are available when customers need them. The possession utility gives customers ownership of a product or service and enables them to derive benefits in their own business.
  11. 11. 7. Goal oriented: Marketing seeks to achieve benefits for both buyers and sellers by satisfying human needs. The ultimate goal of marketing is to generate profits through the satisfaction of the customer. 8. Guiding element of business: Modern Marketing is the heart of industrial activity that tells what, when, how to produce. It is capable of guiding and controlling business.
  13. 13. 1.Product design Product design is the four most important element in marketing the communication needs & problems of the consumer have to be considered before marketing a new product design. 2. Implementation of product Once the decision is finalized about the design of product more focus should be there on communication with production department regarding the implementation of product features. 3. Pricing of Product Pricing is the most important aspect of the product because it only decides the major buying decision of the consumer. So if the product is very new to the market correct & affordable pricing should be done. 4. Selection of Layout The layout is the place where actually the product /services will be availed so more focus should be done on the exact location and layout.
  14. 14. 5. Publicity of the product Publicity means communication about the product and services for creating awareness & demand for the product by publicity& Advertisement. 6. Distribution channel Distribution channel means the number of intermediators like whole sellers, Retailers, distributors, Agent who all are involved in the marketing channel. 7. Selling of Product Selling involves the actual challenge of marketing. Selling of product and services involves different strategies like distribution through stores, salesman, Advertisement, Exhibitions, trade fairs etc. 8. Collecting the feedback This begins after the product is marketed and sold collecting feedback regarding satisfaction or dissatisfaction related features like price, to make availability etc it is to make changes in the marketing mix.
  15. 15. GOALS OF MARKETING Marketing itself is a series of activities with the ultimate aim of increasing the sales of the goods. however, selling goods in a competitive situation such as the present one is not easy Therefore, the following are the objectives of marketing in the present scenario:  Identification of consumer wants/preferences/needs/tastes.  Get an appropriate product designed to get consumer approval.  Create demand in the minds of the consumer for the product of the Company.  Make arrangements for the consumers to buy the products.  Market research to help product development
  16. 16. 1.Identification of consumer wants/preferences/needs/tastes: In a competitive situation such as the present one, the consumer requirement is the guiding point for any product development. All the aspects of the product such as the quality, features, size, appearance, image, durability, price etc. should be to the satisfaction of the consumers. Consumer was considered the king of market, but not anymore because presently consumer is considered the God of the market. Therefore, the most primary function of marketing is to understand the requirements of the consumers.
  17. 17. 2. Get an appropriate product designed to get consumer approval: All the understanding about the consumer wants, preferences, tastes, needs etc. should be used to design an appropriate product. Only then will the product be acceptable to the consumer. 3. create demand in the minds of the consumer for the product of the company: A mere designing of the most appropriate product is not sufficient. An awareness about such a product in terms of the brand, the price, the availability, a comprehensive description about the positive features, the competitive advantages etc. should be brought about in the minds of the consumers. This is done by various means such as advertising, salesmanship etc. If sufficient demand is created for a product, it is likely to sell by itself.
  18. 18. 4. Make arrangements for the consumers to buy the products: After product designing and demand creation, it must be ensured that the product is widely available, so that consumers can purchase the product easily. Product availability goes a long way in determining the success of a product. This is brought about by a pragmatic distribution scheme. 5. Market research to help product development: Securing knowledge about the consumers' tastes and preferences is not restricted till the development of the product. It is must be an ongoing activity. Since the market is a very dynamic place, consumer preferences change very fast. The product also has to keep pace with such changes. All products are consistently evolving. There is nothing like a perfect product in the long run because the perfect product remains sold only at a given point of time. Therefore, it is the responsibility of the marketing to devise a system to study the consumer and understand his needs and wants.
  20. 20. 1. The Production Concept This is the old concept of marketing. This concept advocate that consumers will buy products that are available and affordable. Therefore, a manufacture in order to sell large quantities Of goods and only has to concentrate on production, distribution of goods and price them affordably. concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices.
  21. 21. 2. The Product concept This concept will advocate that the consumer will buy products that are better in quality, performance, durability and features. Therefore, manufacture have to focus on product improvement continuously. The customer chooses good products. This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door.
  22. 22. 3.The Selling Concept. This concept advocates that consumer will buy products only when the manufactures put in sufficient amount of selling and promotion efforts. Therefore, manufacture have to advertise, improve the distribution and do any thing else to bring the product to the notice of the consumers and make it easy for them to buy the product. However, even according to this concept there is no effort on the part of the manufacture to understand the consumer’s needs and tastes before designing the product or improving an existing product.
  23. 23. 4. Marketing Concept A company that believes in the marketing concept places the consumer at the center of the organization. All activities are geared towards the consumer. A business, oriented towards the market, aims to understand the needs and wants of a customer and executes the marketing strategy according to market research beginning from product conception to sales. As sales begin, further research can be implemented to figure out what customers think about a product and whether improvements are needed. While markets change continuously, product development and market research is always ongoing for a company that concentrates on the market. The following are the features of marketing concept 1. Focus on customer needs: The needs of the customer are studied and those become the basis of all product related activities such as designing, pricing, distribution, packaging. Etc. 2. Providing consumer satisfaction: every organization aims at providing maximum customer satisfaction by understanding his needs and designing an appropriate product. The success of an organization is directly related to the customer satisfaction it provides. 3. Integrated marketing management: MM is only a part of the total managerial function of an organization such as FM, PM and HRM etc. all this function are integrated in order to provide maximum satisfaction to the consumer. Thus all the functional areas of an organization are integrated. 4. Achieving organizational goal: modern marketing states that an organization must aim at maximizing consumer satisfaction and in the process enable itself to achieve its goal such as growth , market share and reasonable amount of profit or return on investment. 5. Innovation: it an important tool to provide consumer satisfaction. Innovative methods must be used to understand the consumer, design an appropriate product and offer it to the consumer.
  24. 24. 5. The Societal marketing concept: This approach does not consider marketing as a means by which business meets the needs of consumers but as a means by which society meets its own consumption needs. This approach focuses on the well- being of the society in the lights of the interaction between the society and the marketing activities. The societal approach to the study of marketing is relatively recent and was born out of the criticism of the marketing behavior of business which was obsessed with the profit attainment. 6. System Approach This Approach Is based on the thinking that the marketing of an organization is also a part of a larger system. A system itself is a set of inter related and inter dependent objects or activities which are held together.
  25. 25. APPROACHES TO MARKETING 1.Product or Commodity Approach 2.Institutional Approach 3.Functional Approach 4.Management Approach 5.System Approach 6.Societal Approach 7.Legal Approach 8.Economic Approach
  26. 26. 1. Product or Commodity Approach Under the commodity approach the focus is placed on the product or it is an approach on the marketing on commodity wise basis. In other words, the study relates to the flow of a certain commodity and its movement from the original producer right up to the ultimate customer. The subject-matter, under this study, is commodity. When one studies the marketing on this basis—commodity approach, one must begin to study and analyses the problems relating to a commodity i.e., sources and conditions of supply, nature and extent of demand, mode of transporting, storage, standardization, packing etc. Again, take an example of a commodity, say rice. One has to study the sources of rice, location, people involved in buying and selling, means of transport, problems of selling the product, financing, storage, packing etc.
  27. 27. 2. Institutional Approach: In the institutional approach, the focus is on the study of institutions- middlemen, wholesalers, retailers, importers, exporters, agencies, warehousing etc., engaged in the marketing during the movement of goods. The approach is also known as middlemen approach. Here, emphasis is given to understand and analyses the functions of institutions, who are discharging their marketing functions. The activities of each institution form a part of marketing and collectively complete the marketing functions. In the process of moving the goods from the producer to the final consumers, a large number of persons are engaged. This system pays attention to the problems and functions of marketing institutions-transporting, banks and other financial institutions, warehousing, advertising, insurance etc.
  28. 28. 3. Functional Approach: The functional approach gives importance on the various functions of marketing. In other words, one concentrates attention on the specialized services or functions performed by marketers. In this approach, marketing splits into many functions-buying, selling, pricing, standardization, storage, transportation, advertising, packing etc. This may be studied one after another. Here each function is studied in detail in order to understand it and analyses the nature, need and importance of each function. In this approach, marketing is regarded as “business of buying and selling and as including those business activities involved in the flow of goods and services between producers and customers.” This system gives too much importance to various marketing functions and fails to explain how such functions are applied to the specific business operations.
  29. 29. 4. Management Approach: This approach is the latest and scientific. It concentrates upon the activities or marketing functions and focuses on the role of decision-making at the level of firm. This approach is mainly concerned with how managers handle specific problems and situations. It aims through evaluation of current market practices to achieve specific marketing objectives. Generally, there are two factors-controllable and uncontrollable, which are more concerned with the decision-making. Controllable include price adjustment, advertisement etc. Uncontrollable-economical, sociological, psychological, political etc. are the basic causes for market changes. And these changes cannot be controlled by any firm.
  30. 30. 6. Societal Approach: This approach has been originated recently. The marketing process is regarded as a means by which society meets its own consumption needs. This system gives no importance as to how the business meets the consumer’s needs. Therefore, attention is paid to ecological factors (sociological, cultural, legal etc.) and marketing decisions and their impact on the society’s well-being.
  31. 31. 7. Legal Approach: This approach emphasizes only one aspect i.e., transfer of ownership to buyer: It explains the regulatory aspect of marketing. In India, the marketing activities are largely controlled by Sales of Goods Act, Carrier Act etc. The study is concentrated only on legal aspects, leaving other important aspects. This does not give an idea of marketing. 8. Economic Approach: This approach deals with only the problems of supply, demand and price. These are important from the economic point of view, but fail to give a clear idea of marketing.
  32. 32. FUNCTIONS OF MARKETING Clark and Clark have classified the marketing functions into the following three divisions: 1. Functions of Exchange 2. Functions of Physical Supply 3. Facilitating Functions
  33. 33. 1.Functions of Exchange These functions create exchanges of good and services for money. It is through these exchanges that legal ownership/title in the goods and immediately or at a later stage that the physical possession of the goods are also transferred from seller to the buyer. 1. Buying: involves procuring goods of required quality and quantity at a satisfactory price. It involves assembling goods under a single ownership for production, resale or consumption. Buying process may involve following activities:  Planning of Purchases  Selection of Proper source of supply  Selection of goods to be purchased  Assembling of goods  Contracting the seller  Negotiation with the seller.
  34. 34. 2. Assembling: the functions of assembling involve purchasing the requires goods in small quantities from numerous sources of supply and thereby creating a large quantity of stock of goods. Therefore, assembling involves bringing together, concentration or collecting goods from numerous sources of supply. Assembling in the context of industry has a different meaning—in industry it means bringing together several components and physically assembling them to construct or erect a large product such as a large machine, a motor car etc. Assembling assumes great importance in case of goods produced by small producers scattered over a very wide area such as agricultural goods, forest produce, goods produced, artisans /small scale industries etc. The following are the advantages of assembling: 1.Savings in the cost of handling 2. Standardization and grading of goods can be done economically 3.Goods of seasonal nature can be made available throughout the year 4.Large quantities of goods can be supplied
  35. 35. 3. Selling: selling is transferring of goods by the sellers to the buyers for a price. This also involves transfer of the legal title/ownership of the goods. selling requires a persuasive effort on the part of the seller to convince the buyers to buy the goods. Goods are sold to yield profit to the sellers and deliver satisfaction to the buyers. Selling is the most characteristic feature of the modern marketing system. Importance of selling Selling is the only function that brings in revenue to the seller whereas all the other functions are actually expenses. Selling sustains the large-scale production of goods during the present days. Selling also establishes relationship with the buyers/market. The following are the sub-functions of selling: (a) Product planning and development—This is planning the right product to suit the consumers' tastes and also manufacturing such a product. (b) Contractual —This is establishing trade relations with the buyers. (c)Demand creation—This involves creation of demand for the goods in the minds of prospective buyers through advertising, sales promotion etc. (d) Negotiation—This is negotiating the various terms of the sale such as the price, the payment, method of transportation etc. (e)Contractual—This is legalizing the agreement containing all the terms and conditions of the sale.
  36. 36. II. Functions of physical supply The Goods must be Physically transferred from the seller to the buyer - Manufacturer to the wholesaler, wholesaler to the retailer and retailer to the final customer. Such transfer involves physical handling of the goods. This requires transportation and storage and warehouse of the goods. 1.Transportation Transport facility is needed for the produced goods to reach the hands of consumers. So the enterprise must have an easy access to means of transportation. Transportation needs to be speedy, efficient, on-time, hassle-free and safe delivery. Company has a choice of five modes of transportation ie is Rail, Road, Air, Waterways (Shipping) and Pipelines. 2.Storage and Warehousing There is a time-lag between the purchase or production of goods and their sale it is very essential to store the goods at a safe place during this time-interval. Go downs are used for this purpose. Keeping of goods in god owns till the same are sold is called storage.
  37. 37. III. Facilitate functions The goods to be sold from the seller to the buyer and to be physically transported from the seller’s place to the buyer ‘s place require several services for their smooth operation. The following are the important of such services/functions: a) Financing: Marketing department needs capital for Investing in land, buildings, furniture etc.; maintaining inventory and extending credit to customers. Acquiring funds for these marketing purposes is known as financing. b) Risk Taking: Marketing may face the risk of loss, fire, theft, natural calamity, price fluctuations, exchange rate fluctuations etc. Some of these risks may be insured wholly or partly or borne by the businessman. c) Market Information: The function of collecting, analyzing and communicating information is also important in marketing. Modern Marketing involves setting up an efficient Marketing Information System and undertaking Market research.
  38. 38. d) Standardization and Grading: A standard is a measure of quality consisting of specifications such as size, color, appearance, shape, chemical contents, flavor etc... Standardization carries the idea of uniformity. When standardized goods are further subdivided into well-defined classes it is called grading. Grading may be done basis quality, size etc. conforming to certain standards. e) Pricing: Generates revenue, all other functions involve costs. Pricing need to be right. Neither too high nor too low. f) Branding: Branding is the practice of giving a specified name to a product or a group of products from one seller. Branding helps  Identify & differentiate products from those of competitors  Create Brand Image and Brand Equity  Build Brand loyalty and control over the market
  39. 39. g) Packing and Packaging: Almost every article has to be packed to make a trip to the ultimate consumer. Packing provides handling convenience, maintains freshness and quality of the product and prevent damages or adulteration of the product. Packagingis much more than mere packing. It is ‘advertising on the shelf’, an attractive display or an eye-catching appearance. Packaging creates an image in the minds of the consumer. h) Sales Promotion: are the short-term promotion tools designed to stimulate customers to buy and assist sales- force/ retailers in their sales efforts. i) Personal Selling/ Salesmanship: Personal Selling involves salesman making direct contact with the buyer and negotiate for the sale of the goods. Salesmanship is an art of persuading people to buy. j) Advertising: is the backbone of modern marketing. It informs guides, educates and protects buyers, so that they can take right decisions on what to buy. It is beneficial to the manufacturer, retailers, salesmen, consumers & to the community in general
  40. 40. E-business Tele-Marketing M-business Green Marketing Retailing Relationship Marketing Customer Relationship Management
  41. 41. E-business or Online business means business transactions that take place online with the help of the internet. The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business. So the buyer and the seller don’t meet personally. E-Business is the conduct of business on the Internet, not only buying and selling, but also servicing the customers and collaborating with the business partners. E- Business includes customer service (e-service) and intra-business tasks.
  42. 42. Features of E – Business  It is easy to set up  There are no geographical boundaries  Much cheaper than traditional business  There are flexible business hours  Marketing strategies cost less  Online business receive subsidies from the government  There are a few security and integrity issues  There is no personal touch  Buyer and seller don’t meet  Delivery of products takes time  There is a transaction risk  Anyone can buy anything from anywhere at anytime  The transaction risk is higher than traditional business
  43. 43. Types of E-Busniess  Business-to-Business (B2B)  Business-to-Consumer (B2C)  Consumer-to-Business (C2B)  Consumer-to-Consumer (C2C)  Business-to-Government (B2G)  Government - to – Business  Government - to - Citizen
  44. 44. B2B B2B, or Business to Business, is the largest e- commerce model. In this model, both the sellers and buyers are business entities. This model describes the transactions between a retailer or a wholesaler, or a wholesaler and manufacturer. Also, the transaction of the B2B business model is much higher than that of the B2C model.
  45. 45. B2C The B2C business is the most common type. This is the thickest e-commerce market. Business to consumer, known as B2C, is the most common and the thickest e-commerce market. In this online model, the business sells to individual customers. This business model offers direct interaction with the customers. This model works by marketers and retailers so that they can sell their goods to internet users. This is the traditional retail model, but the business is conducted online as opposed to in a physical store
  46. 46. C2C The C2C or consumer to consumer business model involves a transaction between two consumers. It is also known as a citizen to citizen. A common example of this model would be an online auction, where a customer or visitor posts an item for sale and other customer bids to purchase it. However, the third party generally charges a commission. Also, having a C2C business or website requires immense planning and marketing understands. Although the sites act as intermediaries to match the customers, they don’t check the quality of products being posted online.
  47. 47. C2B Customer to business, known as C2B, involves customers selling their services or products to business. It is roughly the same as a sole proprietorship serving a larger business. Freelancing sites would be included in C2B Commerce like Fiverr, Shutterstock, B2G Business to government is also referred to as the business to administration commerce. In this model, government and businesses use central websites to do business with each other more efficiently than they can off the web.
  48. 48. Government - to - Business Governments use B2G model websites to approach business organizations. Such websites support auctions, tenders, and application submission functionalities. Government - to - Citizen Governments use G2C model websites to approach citizen in general. Such websites support auctions of vehicles, machinery, or any other material. Such website also provides services like registration for birth, marriage or death certificates. The main objective of G2C websites is to reduce the average time for fulfilling citizen’s requests for various government services.
  49. 49. Advantages of E Business  Easy to Set Up: It is easy to set up an electronic business. You can set up an online business even by sitting at home if you have the required software, a device, and the internet.  Cheaper than Traditional Business: Electronic business is much cheaper than traditional business. The cost taken to set up an e-business is much higher than the cost required to set up a traditional business. Also, the transaction cost is effectively less.  No Geographical Boundaries: There are no geographical boundaries for e-business. Anyone can order anything from anywhere at any time. This is one of the benefits of e-business.  Government Subsidies: Online businesses get benefits from the government as the government is trying to promote digitalization.  Flexible Business Hours: Since the internet is always available. E-business breaks down the time barriers that location-based businesses encounter. As long as someone has an Internet connection, you may be able to reach and sell your product or service to these visitors to your business website.
  50. 50. Limitations of e-Business Lack of Personal Touch Delivery Time Security Issues Unsure about the quality Some products are difficult to purchase online Site Crash issues E-commerce is highly competitive
  52. 52. Telemarketing is the act of selling, soliciting, or promoting a product or service over the telephone; the telephone is the most cost-efficient, flexible, and statistically accountable medium available. At the same time, the telephone is still very intimate and personal. It is individual to individual. Telemarketing is the process of using the telephone to generate leads, make sales, or gather marketing information. Telemarketing can be a particularly valuable tool for small businesses, in that it saves time and money as compared with personal selling, but offers many of the same benefits in terms of direct contact with the customers.
  53. 53. Features of Telemarketing 1. Inbound or outbound- inbound tele-marketing refers to handling incoming tele-calls which emerge on account of advertising, direct mail, catalogues etc. Outbound tele-marketing refers to making calls to prospective customers to generate sales. 2. In-house or out sourcing – The work of telemarketing can be done by the organization in -house or it can be outsourced to other firms which are called call centers. 3. B2B or B2C—Tele-marketing can be used for both B2B or B2C. 4. Live or recorded—Tele-marketing can be done live by an operator or by using a recorded message in which case it called automated tele-marketing. 5. Two stages—A tele-marketing process often involves two or more calls. The first, to generally enquire about the customer needs and market the product and the subsequent calls to motivate the customers and finalize the sale. 6. Useful to small businesses—Tele-marketing is very useful to small businesses especially when the customers are widely scattered.
  54. 54. Types of Telemarketing
  55. 55. Inbound Telemarketing: It consists of handling incoming telephone calls—often generated by broadcast advertising, direct mail, or catalogues—and taking orders for a wide range of products. The representatives working in this type of telemarketing programme normally do not need as much training as the outbound representatives. Outbound Telemarketing: It can be aimed directly at the end consumer; for example, a home repair business may call people to search for prospects and customers. Representatives working on this side of the industry generally require more training and product knowledge, as more actual selling is involved in comparison to the inbound operations.
  56. 56. The mobile support of business transactions regarding the search, negotiation, production and the delivery of products or services. The main focuses are the enabling of mobile business process and the automation of technical processes. It is the practice of running business transactions and applications on mobile devices. Features of M-business 1. anywhere access—A person can access such business and carry out transactions irrespective of his location. 2. Simple authentication—The mobile devices operate with the easily identifiable electronic chip—The SIMS This along with the PIN (Personal Identification Number) makes the authentication process simple. 3. Instant connectivity—Features such as GPRS (General Packet Radio Service) enable the persons involve to be in constant touch with each other and secure instant connectivity. 4. Localization—Location tracking devices such as GPS (Global Positioning System) enable companies to deliver the goods or services to the customers at their current location. 5. Immediacy—This system provides goods and services instantly and immediately to the customers.
  57. 57. Advantages of M-business I. Convenience- M-business enables people to transact with others irrespective of their location and time. 2. Reachability —M-business enables unrestricted reachability. 3. Flexibility—The sellers can access the buyers via mobile phones and also be accessible by the buyers through mobile messengers such as Yahoo and Gtalk. The buyers however have the option of not being accessible by shutting down their mobile devices. 4. Easy connectivity-The mobile devices can connect to each other and transact the network signal is available. There is no need for a modem or WI-FI connectivity set Up 5.Time—The users of m-business do not require plugging in anything as in the ease of Personal Computers. This saves time. 6. Personalization—Each mobile device is dedicated to one individual user and is therefore personal. One can do anything with his mobile device such as modify the wall paper, lchange view settings, send e-mails or make e- payments. 7. Easy targeting—The exactly required persons can be targeted by the sellers through m-business techniques. 8.Quality of service-The service or goods delivery quality and the entire business process can be improved.
  58. 58. Limitations of M-business 1.People's mindset—People are still reluctant to change over from making actual purchases and paying actual cash to mobile purchases and payments through the mobile. 2.Limited use of graphics—The capacity Of mobile devices to transmit graphics effectively is lesser than that of computers. 3.Technology constraints—Mobile devices have technological constraints such as memory, processing power. display capabilities, input methods etc. 4.Security and privacy issues—Mobile devices face security issues in terms of data movement across wireless networks. 5.Ineffective visual—Since the screens of most mobile devices is smaller, the visual effect is limited. 6.Prohibitive cost—cost of establishing mobile and wireless broadband infrastructure is very high.
  59. 59. GREEN MARKETING Green marketing is the marketing of environmentally friendly products and services. It is becoming more popular as more people become concerned with environmental issues and decide that they want to spend their money in a way that is kinder to the planet. DEFINITION According to American Marketing Association ,“The Marketing of products that are presumed to be environmentally safe The following can all be part of a green marketing strategy:  Using eco-friendly paper and inks for print marketing materials  Skipping the printed materials altogether and option for electronic marketing  Having a recycling program and responsible waste disposal practices  Using eco-friendly product packaging  Using efficient packing and shipping methods  Using eco-friendly power sources  Taking steps to offset environmental impact
  60. 60. 1. Saving the environment—Green marketing is a powerful and sure step taken by mankind in the direction environmental protection. 2. Educating the public—The manufacturers adopting green marketing actually educate the public regarding environmental issues in the process of green Marketing. 3. Environmental responsibility—The manufacturers adopting green marketing themselves take up responsibility for environment protection and also convey the same to the public. 4. Safe products—Green marketing compels the companies to manufacture and sell safe products to the public. Safe products may mean chemically free, absence of toxins etc. 5. Recycling—Green marketing promotes the concepts of recycling and re-use of the products and packages. This reduces the strain on our planet. 6. Improved company image—All companies successfully adopting green marketing enjoy a very strong positive image in the minds of the public. 7 Competitive advantage—The companies adopting green marketing have a Competitive advantage in the market over such companies which do not adopt green Marketing. Advantages of Green Marketing
  61. 61. Limitations of Green Marketing 1. Expensive new technologies—Adoption and implementation of green marketing requires new technologies of manufacturing and new techniques of marketing which are very expensive. 2. Water treatment—Green marketing concept invariably involves water treatment and recycling during manufacture. This requires huge investments. 3. Lack of awareness—Majority of the people is still unaware of the benefits of green marketing which may act as a hurdle to green marketers. 4. Higher prices—The products manufactured under the green marketing concept initially have a higher price and the benefits accrue only in the long run.
  62. 62. RETAILING Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the final consumer (i.e. the one who intends to use the product) are included. It encompasses sale of goods and services from a point of purchase to the end user, who is going to use that product. Retailers have occupied an important place in the field of business. The retailers remain as very useful and as the last link in the channel of production and distribution. They provide goods and services to the final consumers.
  63. 63. Features of Retailing 1. Small quantities - Retailers buy and sell goods in small quantity. 2. Sell to ultimate consumers - Retailers sell goods to ultimate final consumers. 3. Varieties of goods - A retailer can sell various necessary goods to consumers. 4. Personal contact - A retailer establishes direct and personal contact with customers. 5. Shop display - Retailers decorate and display goods to attract customers. 6. Last link - Retailers work as the last link of distribution channel.
  64. 64. Functions of Retailing 1. Buying and selling—The retailer purchases a wide variety of goods from various wholesalers and manufacturers, so that he can offer all the goods under one roof to the final consumer. The retailer thus performs the function of buying and selling. 2. Storage—The retailer buys the goods whenever they are available and sells them to the final consumers whenever they need the goods. The retailer thus performs the function of storage. 3. Shopping convenience—The retailer develops personal contact with the final consumers and also sells the goods to them on credit. The retailer thus offers convenience to the consumers. 4. Risk bearing—The retailer bears the entire risk in goods from the time of purchase to the time of their sale such as physical spoilage, price fluctuations, loss of goods, deterioration of the quality etc. The retailer thus performs the function of risk bearing. 5. Standardization, grading and packaging—The retailer performs functions such as standardization and grading the goods based on their quality. The retailer also packages the goods according to the convenience of the customers. The retailer thus performs the function of standardization, grading and packaging.
  65. 65. 6. Communication—The retailer collects market information from the consumers (feedback) and conveys them to the manufacturers and also conveys the information about the goods from the manufacturers to the consumers. The retailer thus acts a twoway channel of communication. 7. Advertising and display—The retailer actually advertises goods by displaying them attractively at his premises. 8. Financing—The retailer finances the customers by selling goods on credit. 9. Selling—The retailer ultimately sells the goods to the final consumers.
  66. 66. Services Rendered by Retailers 1.Services to consumers/ customers I. Convenience of time—The retailer offers the goods to the consumers exactly at the time convenient to the consumers. 2. Convenience of quantity—The retailer offers the goods to the consumers in the quantities as required by the consumers. 3. Wide variety of goods—The retailer offers a wide variety of goods to the consumers and thus gives them the pleasure of a wide choice. 4. Credit facilities—The retailer maintains a personal contact with the consumers and offers them credit facilities. 5. Consumer services—The retailer offers several services to the consumers such as home delivery of goods, collection of orders etc. 6. Provides information—The retailer provides information about new products and the latest trends in the manufacturing to the consumers. 7. Solving problems—The retailer attends to all the complaints of the consumers and at times also replaces or takes back the goods
  67. 67. 2.Services to Wholesalers/ Manufacturers 1. Function of linking—The retailer Jinks the wholesalers/manufacturers with the final consumers. 2. Selling and distribution of goods—The retailer sells the goods made by the manufacturers to the final consumers. 3. Market information—The retailer gathers market information such as consumers' preferences and tastes, emerging trends etc. and provides the same to the "wholesalers/manufacturers. Such information is very important for product improvement and re-designing. 4. Creation of goodwill—The retailer creates a positive image about the manufacturer and his products in the minds of the consumers by positive promotion of the products. 5. Sense of relief—The retailer takes up the responsibility of the selling the goods in small quantities to numerous final consumers. Therefore, the manufacturers are saved from the botheration of retail sales.
  68. 68. Types of Retail Format 1. General Store-These are small scale shops selling general goods such as groceries toiletries, chocolates etc. 2. Specialty Stores—These are organizations selling one line of goods such as furniture, auto components etc. 3. Warehouse Stores—These organizations sell goods at a low cost/low margin generally to members. 4. Convenience Stores—These organizations are established in residential areas and offer a limited variety of goods. 5. Departmental Stores—These are large scale retail organizations and sell a very wide variety of goods under various product lines. These actually resemble a collection of several specialty stores within one roof. 6. Chain Stores—These are large scale retail organizations with branches at various places. All these branches are similar in terms of layout, product range, prices etc. 7. Demographic Retailers—These organizations cater to any one of the demographic divisions such as students, senior citizens etc. 8. Supermarkets—These are large scale organizations generally offering groceries and few other lines of goods.
  69. 69. 9.. Hypermarkets—These organizations sell goods on retail in large quantities at low margins of profit. 10. Malls—These have a large number of retail shops in one premise itself. These also offer food and entertainment. II. E-retailers —These are organizations which offer online trading/e-trading. These organizations collect orders online, deliver the goods to the door steps and also receive the payments online. 12. Discount Stores—These offer a wide range of products mainly on low prices and discounts. 13. Vending machines—These are actually machines into which the customers have to drop in the money and the machines give out the goods. 14. Variety Stores—These offer inexpensive goods with limited range. 15. Mom —And- Pop Stores—These are small scale retail organizations generally run by families. 16. Franchisees—A franchisee is a retail organization which sells goods of another organization under a licensing agreement. All the terms of sale are dictated by the parent organization. 17. Service Retailers—These are organizations which sell services and not tangible goods to the customers. Services are attaining a great importance in our economy presently.
  70. 70. RELATIONSHIP MARKETING Relationship marketing is a very popular technique used by sellers. This involves, basically, understanding the customers, their needs, consuming habits etc. and marketing the goods to them accordingly. The sellers attempt to serve the customers well and also maintain a good relationship with them in the hope that such customers will develop trust and loyalty towards the sellers and become their permanent customers. "Relationship marketing involves creating, maintaining and enhancing strong relationships with customers and other stake holders". -Philip Kotler and Gary Armstrong
  71. 71. Characteristics of relationship marketing  It focuses on partners and customers rather than on the company’s products.  It puts more emphasis on customer retention and growth than on customer acquisition.  It relies on cross-functional teams rather than on departmental-level work.  It relies more on listening and learning than on talking.
  72. 72. Advantages of Relationship Marketing 1.Retention—Relationship marketing enables the sellers to retain customers for the long run. This is a very advantageous factor considering the competition in the market. 2.Happy employees—The focus of relationship marketing is to keep the customers happy and when this is achieved, the employees of the sellers/manufacturers also are happy. This improves the employees' morale and ultimately and their productivity. 3.Feedback—Relationship marketing provides an interactive medium with the customers. This medium provides for the communication of feedback from the customers to the manufacturers and sellers. This enables the manufacturers to manufacture the goods in accordance with consumer tastes. 4. Measurable results—Since relationship marketing enables the seller to be in touch with the customers constantly, the results of marketing in terms of sales can be measured by the sellers. 5. Free publicity—Relationship marketing enables the sellers to provide satisfaction to the customers. Such satisfied customers are sure to provide word of mouth promotions and positive reference of the manufacturers and the sellers. 6.Focus on value—Relationship marketing focuses on providing value to customers. This provides higher degree of satisfaction.
  73. 73. Limitation of Relationship Marketing I. No involvement in production—Relationship marketing focuses only on marketing' therefore it does not enable customer involvement in production. 2. Single transaction than relationship—Some customers are found to prefer a single transaction with a seller rather than a long-term relationship. 3.No focus on attracting new customers—Relationship marketing merely focuses on retaining existing customers but an equal focus is also necessary on attracting new customer
  74. 74. Customer relationship management (CRM) is an approach to manage a company's interaction with current and potential customers. It uses data analysis about customers' history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth. Features of CRM 1.Customer’s Needs-An organization can never assume what actually a customer needs. Hence it is extremely important to interview a customer about all the likes and dislikes so that the actual needs can be ascertained and prioritized. Without modulating the actual needs it is arduous to serve the customer effectively and maintain a long-term deal. 2.Customers Response- Customer response is the reaction by the organization to the queries and activities of the customer. Dealing with these queries intelligently is very important as small misunderstandings could convey unalike perceptions. Success totally depends on the understanding and interpreting these queries and then working out to provide the best solution. During this situation if the supplier wins to satisfy the customer by properly answering to his queries, he succeeds in explicating a professional and emotional relationship with him. 3.Customer Satisfaction- Customer satisfaction is the measure of how the needs and responses are collaborated and delivered to excel customer expectation. In today’s competitive business marketplace, customer satisfaction is an important performance exponent and basic differentiator of business strategies. Hence, the more is customer satisfaction; more is the business and the bonding with customer.
  75. 75. 4.Customer Loyalty- Customer loyalty is the tendency of the customer to remain in business with a particular supplier and buy the products regularly. This is usually seen when a customer is very much satisfied by the supplier and re-visits the organization for business deals, or when he is tended towards re-buying a particular product or brand over times by that supplier. To continue the customer loyalty the most important aspect an organization should focus on is customer satisfaction. Hence, customer loyalty is an influencing aspect of CRM and is always crucial for business success. 5.Customer Retention- Customer retention is a strategic process to keep or retain the existing customers and not letting them to diverge or defect to other suppliers or organization for business. Usually a loyal customer is tended towards sticking to a particular brand or product as far as his basic needs continue to be properly fulfilled. He does not opt for taking a risk in going for a new product. More is the possibility to retain customers the more is the probability of net growth of business. 5.Customer Complaints- Always there exists a challenge for suppliers to deal with complaints raised by customers. Normally raising a complaint indicates the act of dissatisfaction of the customer. There can be several reasons for a customer to launch a complaint. 6.Customer Service- In an organization Customer Service is the process of delivering information and services regarding all the products and brands. Customer satisfaction depends on quality of service provided to him by the supplier. The organization has not only to elaborate and clarify the details of the services to be provided to the customer but also to abide with the conditions as well. If the quality and trend of service go beyond customer’s expectation, the organization is supposed to have a good business with customers.
  76. 76. 1.Effortless Marketing/Sales – CRM software can develop a strong communication channels with your customers. CRM system effortlessly can close more business as it can speed up the process of sales. Sales activities, meeting notes like when the last time customer were contacted and what was discussed is available2.Gain Customers and increase in Revenue – CRM Software helps you to manage your business well and boost the revenue. CRM Software is rapidly growing because Customer Relationship Management saves the time and manages work in a well-mannered way. CRM Software is a cloud-based application. It provides you real time visibility of team’s activities accessible from anywhere no headaches regarding installations and data lost, you will find drastic increases in productivity. 3.Better Customer Service- Companies using CRM Software can better serve their customers as all the systems are in place. Since all the details are available in CRM systems you can create a good and long-lasting relation with your customers CRM can help to personalize and customize relationships with your customers regardless of which employee deals directly with them. 4.Improves internal communication– Companies today can understand the importance to have excellent CRM software as to keep a company profitable. Customer Relationship Management is beneficial to your employees because they won’t have to keep reentering information, since it will easily be available to everyone within your company. Leads can be transferred within the executives. 5. Data Mining -The customer data is not the only important thing when it comes to CRM software. There are specific sales reports as well as other analytics which can assist the organization to discover what works best for them. Customer Relationship Management Software makes it possible for people to discover the areas they are making progress, resulting in the creation of a real-time business environment where changes can be made instantly. Advantages of CRM
  77. 77. Disadvantages of CRM 1. Record Loss - Some Customer Relationship Software utilizes remote Internet Connections to keep customers’ data. The downside of this kind of CRM is that the organization has no control of customers’ details, and in case there is an outage in the CRM system, it will be next to impossible for the business to retrieve the relevant details. If the organization chooses a small Customer Relationship Management program which is unstable, it may imply thousands of dollars in lost income for the business. 2. Overhead - If a business chooses a local Customer Relationship Management software, there will be overhead costs linked to it. If the application is proprietary, the organization will need to pay for professionals such as system administrator, software developers, and maintenance personnel to ensure the efficient running of the software. Keeping backups for the data also adds to the expenses of operating a personalized CRM system. 3. Eliminate Human Element- Although CRM applications allow for the automation of processes within a company, there is a loss of human element in the organization, something which essential for creating an excellent business relationship with customers. It’s the same as receiving an automated menu system at the end of the phone rather than the voice of an actual person. When the company loses its human touch, then clients will likely drift away and this will mean a reduction in revenue on the part of the business.
  78. 78. 4. Training -If it’s a small business, the issues of training aren’t so much pronounced. Nonetheless, the large companies will be required to roll out training sessions for the workers. For CRM of larger scale, this will mean appointing professional to conduct the training. In many occasions, training deprives the company the time required for enhancing productivity, so this is quite a disadvantage for new CRM applications. Additionally, the CRM training is usually different for the staff and managers because a good number of these applications have specialized features and functions for executive and managers. What’s more, these additional features also require training. It should be known that the training session can be short (take a few hours) or even longer, taking several days. 5. Security Issues - Although the CRM application is secure, data which is found in a centralized location is a threat for any company running the CRM solution. What if a resentful employee adds inaccurate data to the system? To avoid this, there need to be encryption safeguards as well as supervision and backup system so as to maintain the integrity of data in the CRM system. 6. Technical Support - There are two options available when it comes to CRM support: to outsource the work to a different person or to hire a specialist within the organization. Many organizations offering CRM solutions will offer support, but this usually comes at a higher rate. Buying the software is just a part of the consideration process and many tend to forget the costs of ongoing support which is associated with the CRM application.