Distinction between Marketing and Selling Marketing Selling

Selling Marketing
1. Marketing is not part of selling 1. Selling is part of marketing
2. Selling starts after production 2. Marketing starts before production
3. Selling is concerned with seller’s needs 3. Marketing is concerned with buyer’s needs
4. It is static 4. It is a changing concept.
5. It is concerned with just one aspect, 5. It requires the performance of several
namely, transfer of title for a price. activities including selling
6. It is done towards the end. 6. It is the starting point of all business
activities
7. Profit maximisation’ is the philosophy of 7. The philosophy of marketing is ‘customer
selling. satisfaction’.

Marketing Functions The functions of marketing are classified as shown in the following
chart:

FUNCTIONS OF EXCHANGE

Functions of exchange include all those activities which are performed to transfer possession
as well as ownership of goods by the seller to the buyer.
“Product can be defined as anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need.” - Philip Kotler

IMPORTANCE OF PRODUCT

Product is a tool in the hands of the management through which it gives life to all marketing
programmes. So, the main responsibility of the management should be to know its product
well.

i) Product is the Central point for all marketing Activities. Product is the pivot, and
all marketing activities revolve around it. Marketing activities, selling, purchasing,
advertisement. Distribution, sale promotion are all useless unless there is product. It is
a basic tool by which pro
ii) Product is the starting point of planning. No marketing programme will be prepared
if there is no product because planning for all marketing activities as a distribution,
price sales promotion, advertising etc., is done on the basis of the nature, quality and
the demand of the product. Product policies decide the other polices.
iii) Product is an End. The main objective of all marketing activities is o satisfy the
customers. It is the philosophy of the modern marketing concept. Various policy
decisions are techniques to provide the customers benefits, utilities and satisfaction
through product. Thus, product is an end (satisfaction of customers) and the producer,
therefore must insist on the quality, size etc., of the product so that it may satisfy the
customer needs.
The product must contain the qualities which can satisfy the customers. It requires
continuous and sincere efforts on the part of the producers or marketers to know their
product through marketing research and planning and to improve it if it is somewhere
lacking.

FEATURES OF PRODUCT:

1. Tangibility
 It should be perceptible by the touch. An item to be called a product, should have a
tangibility character touch seen or feeling. For instance, car, shirt book etc
2. Intangible Attributes:
The product may be intangible, in the form of services, for instance, banking services
repairing ect. It is an associated feature. For instance, scooter is a tangible product and
when free servicing is offered by the seller, then the product is not only a tangible item
but also an intangible one.
3. Associated attributes: such attributes may be brand, package, warranty etc., for instance
Hindustan Lever Vanaspati ghee has a brand name DALDA and with its package it can
be identified by the consumers.
4. Exchange Value: whether the product is tangible or intangible, it should have exchange
value and must be capable of being exchanged between seller and buyer for mutually
agreed price.
5. Consumer Satisfaction: products should have the ability to offer value satisfaction to
the consumer. The satisfaction may be both real or psychological. For instance when
we buy SNOW we also buy beauty a product with a bundle of utilities.

CLASSIFICATION OF PRODUCTS:
The products may be classified into the following categories
1. Industrial Goods
2. Consumer Goods
a. Convenience Goods
b. Shopping Goods
c. Speciality Goods
1. Industrial Goods:
Industrial goods are those which are used for further production of goods or services
and include capital goods raw materials component parts etc. these are used as input in
producing other products. For instance, iron ore machine tools etc.
2. Consumer Goods are meant for final consumption by consumers and not for sale. They
are of three types
a. Convenience Goods: items the consumer buys frequently immediately and with
minimum shopping effort are convenience goods. For instance, food items,
newspaper drugs soap toothpaste biscuit tec.
b. Shopping goods: there are goods purchased by the consumers only after a careful
comparison suitability quality price style etc. For example, clothes, furniture,
household appliances fans etc.
c. Speciality Goods: these are goods with unique characteristics or brand
identification and to the purchasers make a special purchasing effort, for instance
fancy goods, special eating items etc.

According to durability or tangibility products can be classified into three

1. Non-durable goods such as soap, salt

2. Durable goods such as clothing, tools refrigerators etc
3. services such as repair haircut etc

PRODUCT MIX
The product mix is one of the segments in the product policy. This is more important
nowadays once most of the manufacturers are diversifying their products. The product
policy decisions are made of these different levels: Product mix; Product items; and
product Line. These ‘Three in one’ elements take the product planning effective.
Product Mix is the list of all products offered for sale by accompany. It is defined as
‘the composite of products offered for sale by a firm or a business unit’. The product
mix is three mentioned, it has breadth, depth and consistence. Breadth is measured by
the number of variety of products manufactured by a single manufacturer.

Product mix, also known as product assortment, is the total number of product lines
that a company offers to its customers. The product lines may range from one to many
and the company may have many products under the same product line as well. All of
these product lines when grouped together form the product mix of the company. The
product mix is a subset of the marketing mix and is an important part of the business
model of a company. The product mix has the following dimensions
Product Width: The width of the mix refers to the number of product lines the
company has to offer. For e.g., If a company produce only soft drinks and juices, this
means its mix is two products wide. Coca-Cola deals in juices, soft drinks, and mineral
water and hence the product mix of Coca-Cola is three products wide.
Product Length: Length of the product mix refers to the total number of products in
the mix. That is if a company has 5 product lines and 10 products each under those
product lines, the length of the mix will be 50 [5 x 10].
Product Depth: The depth of the product mix refers to the total number of products
within a product line. There can be variations in the products of the same product line.
For example – Colgate has different variants under the same product line like Colgate
advanced, Colgate active salt, etc.
Product Consistency: Product mix consistency refers to how closely products are
linked to each other. Less the variation among products more is the consistency. For
example, a company dealing in just dairy products has more consistency than a
company dealing in all types of electronics.
Product line
The product line is a subset of the product mix. The product line generally refers to a
type of product within an organization. As the organization can have a number of
different types of products, it will have similar number of product lines. Thus, in
Nestle, there are milk-based products like milkmaid, Food products like Maggi,
chocolate products like KitKat and other such product lines. Thus, Nestle’s product
mix will be a combination of the all the product lines within the company.

FACTORS INFLUENCING CHANGE IN PRODUCT MIX

It is very difficult for a concern to take a decision about the number of products it
should produce at a given time because the number of products or product mix is
affected by several factors such as demand, competition, cost of product and
appropriate time etc., In short, factors influence the decision of product mix:
1. Market Demand. The change in the demand of a product affects the decision of
product mix. If the demand of a new product is increasing in the market and the
production of that new product is beneficial to the company considering its cost of
production, utilisation of its plant and machinery and labour – force, and if thinks that
can compete its competitors, it can start production of the new product.
2. Cost of Production. If the company can develop a new product with the help of the
same labour force, plant and machinery and technique, it can decide to start the
production of that product at lower cost. For example, a byproduct can be developed
by a company at low cost.
3. Quantity of Production. If the production of the new product is considered to be at
a scale and the company can add one more item to its product line just to get economics
of large-scale production.
4. Advertising and Distribution factors. Advertising and Distribution factors may be
the one of he reasons for the change in production mix. If the advertising and
distribution organisation are the same, the company may take the decision to add one
more item to its product line. For example, company can produce one more product if
the same raw materials are used in its production.
5. Use of Residuals. If residuals can be used gainfully, the company can develop its
by-products into the main products. For example, a sugar mill can develop the
production of paper, card board or wine from the bagasse profitably
6. Change in Company desire. Keeping in mind the objectives if the firm, i.e.,
maintaining or increasing the profitability process or may start the process of producing
a new product. In this way, the firm tries to make its product-mix an idle one.
7. Competitors actions and reactions. The decision adding or eliminating the product
may be the reaction of competitor’s actions. If company thinks that it can meet the
competition well by adding new product it can decide to produce the product.
8. Change in Purchasing power or Behaviour of the customers. If the number of
customer’s are increased with the increase in their purchasing power or with the change
in their buying habits, fashion, etc., the company may think of adding one more product
keeping mass production or increase in profitability in the mind.
9. Full-utilisation of marketing Capacity. If the marketing personnels are not being
utilized their capacity, the company may start the production of another product in
order to utilize their marketing c capacity fully. In this way, company may be able to
reduce its marketing cost.
10. Goodwill of the Company. If the company is of repute, it can market any new
product in the market without much difficulty. It may take decision of adding new
product without any hitch because it knows that customer will accept any product
introduced by the firm.

BRANDING:
Branding of products is of strategic and increasing importance. Product brand is an
associated attribute and is so significant that due weight age is to be given in product
policy and strategy formulation. Brand though is a name, plays more important role.
PRODUCT LIFE CYCLE

Products, like living beings, have a definite life span. The life cycle human beings is
characterised by certain stages like childhood adolescence, adulthood and old age. The
life cycle of a product consists of the following stages:

1. Introduction

2. Growth

3. Maturity and

4. Decline

Product Life Cycle. 1. Introduction Stage : When a product is just introduced into
the market, it will take some time for the buyers to come to know of it. Sales will
gradually start. Profits will be low. Selling costs will very high at this phase. Steps must
taken by the marketer to popularise the brand name.

2. Growth Stage: In this stage, both sales and profits will begin to rise. Competitors
may enter the market seeing business prospects. The marketer shall, at this, strive to
highlight the positive aspects of this product and ensure that the buyers do not shift to
the competitors’ products. This may be done by an effective advertisement campaign.
3. Maturity Stage : Both sales and profits will reach the maximum level at this stage.
Towards the end of this stage, the marketer ma y also witness ‘the supply exceeding
the demand’ situation. He may adopt certain promotional measures like ‘free gift on
purchase’, ‘exchange offer’ and so on. Such measures may help to extend the span of
this stage and may not offer a permanent solution.

4. Decline Stage: At this level, profits touch the lowest point, Competition becomes
intense and the customers show preference for better products. Products alteration or
modification may provide solution in some cases. Is that is not possible, the marketer
may have to abandon the product. The concept of product life cycle guides the marketer
in selecting the appropriate strategy for every stage. However, it is not necessary that
every product should pass through all the different stages. Some products may die in
he introduction stage itself. The time span in every stage will also vary from product
to product.
New product development The following are the various state stages involved in the
development of a new product:

1. Exploration or idea Generation: The idea for making a new product shall first of
all be conceived by the marketer. Such an idea would have either struck the marketer
himself or would have been secured from external sources like buyers, fellow
businessman, distributors, inventors and so on.

2. Screening: The idea conceived shall than be reviewed to check whether it will
materialize. Steps must be taken to ensure that there are no legal hurdles in
implementing the proposal. Availability of men, machinery, materials and money to
carry out the proposal must be ensured. At this stage, it will become clear whether to
go ahead with the proposal or to drop it.

3. Business Analysis: In this phase the businessman will carry out such further analysis
that will him to know the cost of making the product the cost of distribution and the
profits likely to accrue. The commercial viability of the product will become clear.

4. Concept testing: The marketer may be interested in knowing the reactions of the
buyers to the idea of the product. The idea of the product is made known to the buyers
with as many details as possibly usually through printed forms with provision of
comments. The response from the buyers will confirm the workability of the proposal.

5. Product development: At this stage, the businessman will do all that is necessary
inputs, tools and equipment. Normally ‘Prototype’ (trial mode) products are made to
start with.
 website offering one month free for a subscription-based service or a bank offering a
free checking account for six months

The main objectives of pricing:

1. To achieve target rate of return on investment;

2. To stabilize prices;

3. To maintain or improve share of the market;

4. To meet or prevent competition;

5. To maximize profits; and

6. To improve public image

UNIT -3
Distribution channel
A distribution channel is the network of individuals and organizations involved in getting
a product or service from the producer to the customer. Distribution channels are also
known as marketing channels or marketing distribution channels.
Types of distribution channels
There are three types of distribution channels: direct, indirect and hybrid.
1. Direct. With the direct channel, the company sells directly to the customer. For
example, a brewery that brews its own beer and sells it to customers at its own
brick-and-mortar location employs a direct channel of distribution. The seller
delivers the product or service directly to customers. The vendor might also
maintain its own sales force or sell its products or services through an e-
commerce The direct channel approach requires vendors to take on the expense
of hiring and training a sales team or building and hosting an e-commerce
operation.
2. Indirect. Indirect channels use multiple distribution partners or intermediaries to
distribute goods and services from the seller to customers. Indirect channels can
be configured in the following ways:
• With the single-tier distribution model, vendors develop direct relationships with
channel partners that sell to the customer.
 • In the two-tier distribution model, the vendor sells to distributors that provide
products to channel partners, which, in turn, package products for the end
customer. Two-tier distribution helps smaller channel partners that would have
difficulty establishing direct sales relationships with large vendors.
3. Hybrid. Hybrid channels combine the characteristics of direct and indirect
channels. The seller uses both direct and indirect methods. For example, a
manufacturer might sell an item on its e-commerce website, but then an
intermediary delivers the physical product to the customer. The customer still has
a direct interaction with the seller, but an intermediary is also involved.
Examples of distribution channel intermediaries
Intermediaries are used in indirect channels to distribute, sell and promote goods
and services. Intermediaries may more commonly be referred to as middlemen.
Examples of intermediaries include the following:
• Wholesalers are intermediaries between manufacturers and retailers.
• Agents represent a person or entity and serve as an intermediary between buyers
and sellers.
• Brokers are similar to agents but represent a person or entity on a limited, per-
transaction basis.
• Catalogs are collections of products gathered in a publication and distributed at
regular intervals.
• Consultants are individuals who connect distributors with intermediaries lower
on the supply chain and give advice on how to distribute product effectively.
• Distributors are in direct contact with the manufacturer but sell to end users.
• Retailers either buy from the manufacturer or another intermediary and
distribute to consumers through shops, grocery stores or websites.
• Independent software vendors are vendors that sell their software using a
marketplace.
• Managed service providers (MSPs) offer managed software services.
• Online marketplaces are e-commerce sites that connect buyers and sellers.
• Original equipment manufacturers, or OEMs, are companies that sell a product
and markets itself as the company that originally manufactured the product.

he importance of distribution channels

The various channels of distribution play a critical role in a vendor's go-to-market strategy. If
successfully executed, any distribution channel model -- whether focused entirely on one
mode, such as direct sales, or embracing multiple outlets, such as multichannel distribution --
can open or expand markets, exceed sales goals and grow a vendor's bottom line.
Beyond boosting revenue, distribution channels can also broaden the portfolio of products
and services available to customers. VAR, SI and MSP channel partners, for instance, often
provide consulting, technology implementation services and post-sales support. They might
also incorporate a vendor's product into an integrated IT product.

The final customer is focused on whether a product or service meets its needs. The customer
is often unaware or unconcerned about the intricacies of distribution channels.

Physical Distribution
It is essential to make the product or service available to the customer at the right
place and at the right time, then only the customer would be able to purchase the
product or service. Place is an element of marketing and is a process of
transferring goods from the place of production to the place of consumption.
Therefore, Place Mix is an important decision and is related to the physical
distribution of the goods and services to the customers. The decisions under place
mix include deciding the market for distribution, the channel of distribution, etc.
Hence, the place mix consists of Channels of Distribution and Physical Movement
of Goods. The two different channels of distribution are direct channel and
indirect channel. And the components of physical distribution include order
processing, transportation, warehousing, and inventory.
Components of Physical Distribution
The process of physical movement of goods involves the following four managerial
decisions:
1. Order Processing
The time and steps involved between receipt of an order from customer and
delivery of goods is known as order processing.
• A customer always ants prompt, punctual, safe and reliable delivery services. If
the processing of order is delayed, then consumer may lose interest and switch over
to competitors’ products which are available in the market.
• So, in order to enhance customer’s satisfaction, a good distribution system should
be used, which provides for accurate and speedy processing of orders.
• Marketers are now using a computer system which is an information technology-
based system of order processing to speed up the order handling process
2. Transportation
The movement of goods from one place to another is known as transportation.
• It is one of the most important elements of physical distribution as it adds value to
the products by making them available at the required place. For example, Dry
fruits are transported from Afghanistan to other parts of the world.
The promotion mix is the set of strategies marketers use to communicate with their
customers. With combined strategies, the promotion mix creates a powerful method of
connecting with the customer and conveying all the other marketing mix elements for a
holistic marketing approach. The promotion mix allows marketers to reach customers in
many different ways, ensuring that the message is seen, heard, and understood. After
determining and defining the target market, creating a good product, selecting a pricing
strategy and optimal price, and
deciding on the distribution method, the marketer is ready to communicate with the customer.
Messages sent by multiple methods provide a better opportunity for consumers to see and
hear the message and make the connection back to the company. When a message is only sent
by one method, the potential for interference, noise, and avoidance is more likely to occur.
Marketers use a multichannel approach to send an integrated message.

Promotion Mix Defined

The full set of strategies that combine to make up the promotion mix include advertising,
sales promotion, personal selling, public relations, direct marketing, and Internet/digital
marketing. Each of these methods is intended to produce different results when used.
Combining the elements creates an overall integrated message designed to reach consumers
at various points in their path to purchase. Marketers call this integrated messaging integrated
marketing communications.
The Importance of the Promotion Mix
Of all the marketing mix variables, the promotion mix can be further divided into different
message channels that allow for connection and communication with the customer. When the
promotion connects with the customer, it is the moment when all the marketing activities
come together. When the messaging and method of delivery reach the customer and create the
desired result, the marketing has achieved its purpose.
The strategies in the promotion mix provide the marketer with an arsenal of methods to
achieve their marketing objectives, such as increasing sales or introducing a new product.
However, consumers are bombarded with marketing messages throughout the day, and these
are combined with the business of everyday life events like news, music, work, chores,
family, and friends. With this busy pace and activity, the consumer is very difficult to reach.
For the busy consumer, one communication method alone is not likely to cut through the
clutter and noise to reach them and make an impact. Marketers must combine the various
communication elements to connect with the customer and meet the communication
objective.
Elements of the Promotion Mix
When analyzed individually, each of the promotional mix elements is powerful. They each
have a part to play in the overall success of a company. When combined and carefully
executed, they create powerful brands with legions of loyal fans and followers—the
consumers. What do each of these promotional mix elements do, and how do they contribute
to the whole process of connecting with the consumer?
Advertising
Advertising is a multibillion-dollar industry. According to Statista, in 2020 alone, worldwide
advertising spending reached $586 billion.Advertising is paid, nonpersonal communication
from an identified source that allows for creative messaging about all aspects of a product,
service, idea, person, or place. Consumers are able to quickly point to advertising as a form of
promotion. It is perhaps the element of the promotional mix that we are most familiar with
and the one we have been most exposed to throughout every phase of our lives.
From our very first commercial showing how much fun it is to build with LEGO to imagery
of a toddler walking the Disney streets with a costumed princess and Cinderella’s castle in the
foreground, we know what advertising looks like. And while advertising can take many
forms, it is important to note that advertising consists of carefully designed messaging from
the company to the consumer. Advertising is meant to produce a response in the viewer. And
advertising is all about what the company wants to tell us.
Advertising can be the pop-up window while we are doing a Google search. It can be
the Chick-fil-A billboard we pass every day on our way to work. Advertising can be the
trailer we watch before our movie starts. And advertising can be the fun Doritos spots we
look forward to during the annual Super Bowl.
While advertising can be a costly means of communication with the customer, it is relatively
inexpensive based on the number of people reached. When NBC priced the 2021 Super Bowl
at $6 million for a 30-second spot, with a record 96 million viewers, the price averaged out to
around $0.06 per person reached.7
Advertising is effective based on the frequency with which it is usually viewed. And because
of the media, the advertising message can usually be repeated many times, depending on the
budget. Due to its repeatability, production costs have a better return on investment (ROI) the
more an ad is used, and the recall of the ad increases significantly.

Sales Promotion
Most consumers love a sales promotion. It creates a feeling of excitement and often includes
a bit of a gaming experience into the purchase decision. Marketers value the benefits of sales
promotions because the results are immediate and they have a wide variety of options when
using this promotional mix element. A sales promotion is a method for a marketer to induce
sales in the short term. Sales promotion is not a long-term strategy but is geared toward
specific calls to action, typically aimed at getting the consumer to buy something
immediately or enter a sweepstakes or contest
Using sales promotions can be an effective method of getting the consumer to try a product or
buy more of a product, or it can be a way to quickly deplete an inventory to make way for
new products.
While sales promotions have many tactics that the marketer can employ, several commonly
used examples of sales promotion include the following:
• Buy One Get One (BOGO). When Domino’s Pizza offers the customer a free pizza
when they buy a medium one-topping pizza, this BOGO deal is used to get an
immediate increase in sales for Domino’s pizza. Consumers may buy Domino’s over
other pizza brands because they can get more pizza for their money.
• Enter to Win. PepsiCo needed to gain traction with the millennial audience. It needed
to boost the Lay’s brand of potato chips and compete with new flavorful organic chips
that were getting market share in the category once dominated by Lay’s. To generate
new interest in its brand, Lay’s launched a campaign for consumers to create a new
flavor. New flavors could be entered, Lay’s would create samples, and the winner of
the new chip flavor would win $1 million.
• Coupons. This method of promotion has come a long way with the use of technology.
While consumers are still able to “clip” coupons and redeem them at the point of sale
to receive savings on the products they are buying, many companies are making
coupons available through mobile apps and discount codes to apply at the point of
sale through an e-commerce store. Using coupons is a great method of inducing trial
of a new product and increasing market share.
• Personal Selling
• Personal selling is one of the most expensive forms of promotion because it is a one-
on-one, person-to-person form of communicating with the customer. The role of the
salesperson is to inform and persuade the customer. This is usually done in what is
termed an exchange situation. The salesperson is exchanging knowledge and
something of value, while the customer is exchanging money for the item of value.
Personal selling is ideal for products that can be customized, are complex, and have a
relatively high price point.
 • Typically, personal selling is most often used in business-to-business (B2B) markets.
Business buyers have longer buying cycles, more complex buying situations, and
larger budgets. The pharmaceutical industry is well-known for using personal selling.
Company representatives must have a high degree of training and knowledge about
the products they are selling to physicians and hospitals. It is also very common to
have a sales force to sell equipment and machinery to manufacturing plants.
Businesses rely on the knowledge and service of the sales force selling them products.
• In the business-to-consumer (B2C) market, personal selling is used for items that cost
more or items that have a high degree of variation. We find sales representatives when
we buy automobiles, home improvement products, and insurance. The job of the sales
representative is to determine our needs and provide solutions that fill those needs.
• When compared to advertising, which has a very general message directed to a very
large audience, personal selling is an individualized message for one or several people
within the buying group. When evaluating the costs of personal selling, it is typically
hundreds to thousands of dollars per person reached.
• The process of personal selling can be time-consuming. The process of selling and the
tasks of the sales force can be complex. The sales professional is tasked with
prospecting to identify the right customers and then qualifying them to make certain
they are a good fit for the product.
• It is not uncommon to hear people say, “You talk a good game. You could sell to
anyone.” In reality, salespeople do not want to talk people into a product. A good
sales force only wants to sell to customers who want and need the product. The best
sales force knows that when the customer is a good fit, they will bring repeat business
and good word of mouth.
• While some salespeople have a natural inclination for selling, others are highly skilled
with the technical knowledge of the products they are selling. Understanding
customers, the buying situation, and the product being sold are a few of the skills
needed to master the art of selling. Good sales professionals know that the real work
of the sale is to service the needs of the client long after the sale has been made.

Public Relations

Public relations is a nonpaid, nonpersonal form of promotion. Because it is nonpaid, it has a

high degree of credibility and is beneficial because a typically credible, non-biased third party
is the messenger. While there are many tactics that marketers might use for public relations,
some of the most commonly used include press releases, press conferences, events, and
annual reports.

Many of the other promotional tools focus specifically on communication with the customer.
By contrast, public relations includes efforts to work with the community where it operates,
media, government officials, educators, and potential investors.

When Nordstrom opened its flagship store in Manhattan, it unlocked the doors a few days
early for a VIP celebration that included Vogue’s editor, Anna Wintour, along with actresses,
models, and designers. Some of the noted attendees included Zoe Saldana, Katie Holmes,
Olivia Wilde, Karlie Kloss, Joan Smalls, Winnie Harlow, Tory Burch, Tommy Hilfiger, and
Stacey Bendet of Alice + Olivia. Guests formed long lines around the store in an attempt to
access the party.9
 • With risk minimized and clarity about the marketing and delivery of a product
heightened, a company can then focus its resources on efforts likely to be the most
profitable.
• Market segmentation can also increase a company's demographic reach and may help
the company discover products or services it hadn't previously considered.

Types of Market Segmentation

There are four primary types of market segmentation. However, one type can usually be split
into an individual segment and an organization segment.

Demographic Segmentation

Demographic segmentation is one of the simple, common methods of market segmentation.

It involves breaking the market into customer demographics such as age, income, gender,
race, education, or occupation. This market segmentation strategy assumes that individuals
with similar demographics will have similar needs.

Example: The market segmentation strategy for a new video game console may reveal that
most users are young males with disposable income.

Firmographic Segmentation

Firmographic segmentation is the same concept as demographic segmentation.

However, instead of analyzing individuals, this strategy focuses on organizations and
looks at a company's number of employees, number of customers, number of offices,
or annual revenue.

Example: A corporate software provider may approach a multinational firm with a

more diverse, customizable suite while approaching smaller companies with a fixed-
fee, more simple product.

Geographic Segmentation

Geographic segmentation is technically a subset of demographic segmentation. This

approach groups customers by physical location, assuming that people within a given
geographical area may have similar needs. This strategy is more useful for larger
companies seeking to expand into different branches, offices, or locations.

Example: A clothing retailer may display more raingear in their Pacific Northwest
locations compared to their Southwest locations.

Behavioral Segmentation

Behavioral segmentation relies heavily on market data, consumer actions, and the
decision-making patterns of customers. This approach groups consumers based on
how they have previously interacted with markets and products. It assumes that
consumers' prior spending habits are an indicator of what they may buy in the future.

Example: Millennial consumers traditionally buy more craft beer, while older
generations are traditionally more likely to buy national brands
 Psychographic Segmentation

Often the most difficult market segmentation approach, psychographic segmentation

strives to classify consumers based on their lifestyle, personality, opinions, and
interests. This approach may yield the strongest market segment results as it groups
individuals based on intrinsic motivators as opposed to external data points. However,
it's also difficult to achieve, primarily because the traits it focuses on can change
easily and there may be a lack of readily available objective data.

Example: A fitness apparel company may target individuals based on their interest in
playing or watching a variety of sports.

Determine Your Market Segment

There's no single universally accepted way to perform market segmentation. To

determine market segments, it's common for companies to ask themselves the
following questions along their market segmentation journey.

Phase I: Setting Expectations/Objectives

• What is the purpose or goal of performing market segmentation?

• What does the company hope to find out by performing marketing segmentation?
• Does the company have any expectations on what market segments may exist?

Phase 2: Identify Customer Segments

• What segments are the company's competitors selling to?

• What publicly available information (i.e. U.S. Census Bureau data) is relevant and
available to our market?
• What data do we want to collect, and how can we collect it?
• How should we segment customers?

Phase 3: Evaluate Potential Segments

• What risks are there that our data is not representative of the true market segments?
• Why should we choose to cater to one type of customer over another?
• What is the long-term repercussion of choosing one market segment over another?
• What is the company's ideal customer profile, and which segments best overlap with
this "perfect customer"?

Phase 4: Develop Segment Strategy

• How can the company test its assumptions on a sample test market?
• What defines a successful marketing segment strategy?
• How can the company measure whether the strategy is working?

Phase 5: Launch and Monitor

• Who are the key stakeholders that can provide feedback after the market segmentation
strategy has been unveiled?
• What barriers to execution exist, and how can they be overcome?
• How should the launch of the marketing campaign be communicated internally?

Benefits of Market Segmentation

Marketing segmentation takes effort and resources to implement. However, successful

marketing segmentation campaigns can increase the long-term profitability and health
of a company. Several benefits of market segmentation include:

• Increased resource efficiency: Marketing segmentation allows management to focus

on certain demographics or customers. Instead of trying to promote products to the
entire market, marketing segmentation allows a focused, precise approach that often
costs less compared to a broad reach approach.
• Stronger brand image: Market segmentation forces management to consider how it
wants to be perceived by a specific group of people. Once the market segment is
identified, management must then consider what message to craft. Because this
message is directed at a target audience, the company's branding and messaging are
more likely to be very intentional. This may also have an indirect effect of causing
better customer experiences with the company.
• Greater potential for brand loyalty: Marketing segmentation increases the
opportunity for consumers to build long-term relationships with a company. More
direct, personal marketing approaches may resonate with customers and foster a sense
of inclusion, community, and a sense of belonging. In addition, market segmentation
increases the probability that the company lands the right client, who fits its product
line and demographic.
• Stronger market differentiation: Market segmentation gives companies the
opportunity to pinpoint the exact message they want to convey to the market and
competitors. This can also help create product differentiation by communicating
specifically how a company is different from its competitors. Instead of a broad
approach to marketing, management crafts a specific image that is more likely to be
memorable and specific.
• Better targeted digital advertising: Marketing segmentation enables a company to
perform better targeted advertising strategies. This includes marketing plans that
direct effort toward specific ages, locations, or habits via social media.

Limitations of Market Segmentation

Market segmentation also comes with some potential downsides. Here are some
disadvantages to consider when implementing market segmentation strategies.

• Higher upfront marketing expenses: Marketing segmentation has the long-term

goal of being efficient. However, to capture this efficiency, companies must often
spend resources upfront to gain the insight, data, and research into their customer base
and the broad markets.
• Increased product line complexity: Marketing segmentation takes a large market
and attempts to break it into more specific, manageable pieces. This has the downside
risk of creating an overly complex, fractionalized product line that focuses too deeply
on catering to specific market segments. Instead of a company having a cohesive
product line, a company's marketing mix may become too confusing and
inconsistently communicate its overall brand.
 • Greater risk of misassumptions: Market segmentation is rooted in the assumption
that similar demographics will share common needs. This may not always be the case.
By grouping a population together with the belief that they share common traits, a
company may risk misidentifying the needs, values, or motivations of individuals
within a given population.
• Higher reliance on reliable data: Market segmentation is only as strong as the
underlying data that support the claims that are made. This means being mindful of
what sources are used to pull in data. This also means being conscious of changing
trends and when market segments may have shifted from prior studies.

Examples of Market Segmentation

Market segmentation is evident in the products, marketing, and advertising that people use
every day.

Auto manufacturers thrive on their ability to identify market segments correctly and create
products and advertising campaigns that appeal to those segments. For example, different
zip codes can have drastically different average incomes, which impacts car buying budgets,
and terrain. People living in a big city tend to prefer smaller cars, while people living in the
country may prioritize greater fuel efficiency and perhaps even off-road capabilities.

Cereal producers market actively to three or four market segments at a time, pushing
traditional brands that appeal to older consumers and healthy brands to health-conscious
consumers, while building brand loyalty among the youngest consumers by tying their
products to, say, popular children's movie themes.

A sports shoe manufacturer might define several market segments that include elite athletes,
frequent gym-goers, fashion-conscious people, and individuals who have health issues or
who spend a lot of time on their feet. In all cases, the manufacturer's marketing intelligence
about each segment enables it to develop and advertise products with a high appeal more
efficiently than trying to appeal to the broader masses.

consumer behaviour

Consumer behaviour is the actions and decisions that people or households make when they
choose, buy, use, and dispose of a product or service. Many psychological, sociological, and
cultural elements play a role in how consumers engage with the market.

It is a multi-stage process that involves identifying problems, collecting data, exploring

options, making a decision to buy, and evaluating the experience afterward. Consumers may
be impacted during these stages by things including personal views and values, social
conventions, marketing campaigns, product features, and environmental conditions.

Understanding consumer behavior is essential for businesses to create marketing plans that
work and to supply goods and services that satisfy customers’ wants and needs. To see
trends and patterns, forecast demand, and make wise choices regarding product design,
 can be implemented at a lower cost, making it accessible to businesses of all sizes,
including small, large and medium enterprises (SMEs). Additionally, e-marketing
campaigns can be tracked and measured, allowing businesses to optimize their
marketing strategies and allocate their budget more effectively.
4. Measurable Results:- One of the significant advantages of e-marketing is the ability
to measure the effectiveness of marketing campaigns in real-time. Through the
analytics tools and tracking mechanisms, businesses can get data on user behavior,
engagement, conversion rates, and return on investment (ROI). This data-driven
approach enables marketers to make data-backed decisions, refine their strategies,
and continuously improve their marketing efforts.
5. Interactivity and Engagement:- E-marketing allows for greater interactivity and
engagement with the customers. Through various digital channels, businesses can
create engaging content, facilitate two-way communication, and build relationships
with their audience. Interactive elements such as quizzes, polls, and contests can be
incorporated to encourage user participation and generate user-generated content,
fostering brand loyalty and advocacy.
6. Personalization and Customization:- E-marketing enables businesses to
personalize their marketing messages and offers based on individual customer
preferences and behavior. By leveraging data and automation tools, businesses can
deliver targeted content, product recommendations, and personalized offers,
enhancing the overall customer experience and increasing the likelihood of
conversion.
7. Enhanced Customer Relationship Management:- E-marketing facilitates better
customer relationship management through various digital touchpoints. Businesses
can collect customer data, track interactions, and implement customer relationship
management (CRM) systems to provide the personalized support, address customer
concerns, and foster long-term relationships. This leads to improved customer
satisfaction, loyalty, and repeat business.
8. Real-Time Marketing:- With e-marketing, businesses can respond to market trends
and consumer behavior in real-time. Messages, offers can be quickly adjusted based
on market conditions, competitor activities, and customer feedback. This agility
allows businesses to stay relevant, capitalize on emerging opportunities, and adapt to
changing market dynamics more efficiently.

Advantages and Disadvantages of E-Marketing

E-Marketing:

E-Marketing is utilizing web-based features and applications for advertising and marketing
efforts to draw traffic to your business. It is a digital advertisement that targets internet users.
Businesses and product manufacturers use e-marketing to build or maintain a brand image and
market products and services to consumers.

The Internet's introduction has completely changed how people market their products.
Although advertisements using traditional media (television, newspaper, magazines, and radio)
continue to be effective, more and more people and companies prefer web marketing because
this method is much cheaper and has a much bigger scope.

Generally, consumers use mobile Internet and social media to research product features and
prices before making final decisions: Hence, E-marketing becomes important because it
supports the consumers in purchasing decisions.
Advantages of E-Marketing:

E-marketing offers several benefits. Its inexpensive, convenient, wider range, bigger
scope, and affordable features provide the opportunity for companies to track campaign
results. Internet marketing allows even the smallest company to compete in a global
marketplace. The main advantage of E-marketing is that there is no requirement for a
large number of funds for a big marketing campaign. E-marketing differs from print
advertising, television and radio advertising, and person-to-person marketing. The
benefits of E-Marketing can be summarized as the following:

Reducing costs: Compared to traditional marketing E-marketing is d Traditional

advertising on television, newspaper, magazines, and radio, which can cost millions of
dollars. With web marketing, however, you need to spend a connection and a reliable
computer to start a web-based prim campaign.

Convenience: It can help companies do marketing 7 days a week and 24 a day. The time
restrictions are nonexistent, as web marketing empowers conduct marketing 24 hours a
day and even on holidays and weekends. This significantly increases sales and profit.
Offering your products on the Internet is also convenient for customers. They can
browse your online store anytime and order when it is convenient for them.

Innovation: The Internet presents fresh opportunities for new products or markets.

The advantage over competitors: It enables companies to improve competitiveness by

becoming closer to the customer. If the company improves communication with
customers, staff, suppliers, and distributors, it will gain an advantage over competitors.

Marketing research: The internet/intranet can track customer behavior and how staff
delivers services.

Improve customer interaction: Keeping clients happy has become much more
economical for companies. By putting information on frequently asked questions on
their website, organizations are saving costs by reducing the number of customer service
representatives. Moreover, the organization can get the immediate product.

Improve Service: The company website can include interactive queries of containing
stock availability or customer service questions.

Sales initiation: Web marketing support the consumers to make purchasing. The
Internet can be used to support the buying decision even if the purchase does not occur
via the web.

Disadvantages of E-Marketing

o Dependability technology
o Slow internet connections cause difficulties.
o Security privacy issues
o Maintenance costs due to constantly evolving environment.
o Higher transparency pricing and increased price competition.
o Worldwide competition through globalization.
Definition:
According to AMA “Marketing is concerned with the people and the
activities involved in the flow of goods and service from producer to the
consumer”.

The management process responsible for identifying anticipating and satisfying

customer requirements profitably.

Classification of Market:
Marketing may be classified into the following headings.

1. Retail market:

It is the market where goods are brought and sold in small

quantity and are supplied directly to consumers near to home at retail price.

2. Whole sale market:

In this market goods are brought and sold in large scale at

wholesale price. Generally wholesalers purchase goods directly from the
producer of the goods directly from the producer of the goods and are
supplied to retainers. He thus plays the role of middleman between retailers
and producers.

3. Stock exchange market:

It is an organised market. These shares, bonds and debentures of
the bonafide trading unit are regularly transacted. Its dealing are carried
on within a particular place in which a person can easily covert his
securities into cash. There are large number of buyers and sellers who
conduct their activities under strict rules.
4. Foreign exchange market:

It denotes that market where foreign currencies are bought and sold.

5. Capital market:

In this market loans are given to businessman, industrialists and

traders for the object of removing financial difficulties and expansion of
business.
 6. Money market:

This market is the portion of capital market. It provides the financial

facilities to various businessman for short period only.

7. Commodity market:

It refers to an organized market where raw materials are transacted

with manufacture who offer the goods to consumers in useful form

Objective of Marketing:
The following aims are sought to be achieved by studying marketing.

1. To develop n intelligent appreciation of modern marketing practices.

2. To provide guiding policies regarding marketing procedures and their

implementation.

3. To study marketing problem according to circumstances and to suggest

solution.

4. To analyze the shortcomings inthe existing pattern of marketing;

5. To enable successful distribution of agricultural products, mineral wealth,

and manufactured goods;

6. Enable managers to asses and decide a particular course of action.

Importance of Marketing:
1. Marketing helps to achieve maintain and raise the standards of
living.
2. Marketing increases employment opportunities.
3. Marketing increases national income.
4. Helps maintain economic stability and development.
5. Link between producer and consumer.
6. Removes imbalance of supply and demand by transferring
surplus.
7. Helps create utilities of time, place and possession
Evolution of Marketing;
1. Production orientation Era: (1869-1930)
The prevailing attitude and approach of the production
orientation era was consumers favour products that are available and
highly affordable.

2. Product orientation era:

The attitude changed slowly and approach shifted from
production to product and from the quantity to quality.

3. Sales orientation era: (1930-1950)

The increased competition and variety of choices/ option
available to customers changed the marketing approach and now the
attitude was consumers will buy products only if the company promotes/
sells these products.

4. Marketing orientation era: (1950-1960)

The shift from production to product and from product to
customers later manifested in the marketing era which focused on the
needs and wants of the customers and the mantra of marketers was the
consumer is king.

5. Relationship marketing orientation era: (1960-Present)

The following sentences summarize4 the above evolution of
marketing.
1. Production era: ‘Cut costs, profit will take care of themselves’.
2. Product era: ‘A good product will sell itself’
3. Sales era: ‘Selling is laying the bait for the customer’
4. Marketing era: ‘The customer is king’
5. Relationship marketing area: “Relationship with customers
determine our firm’s future’.
Market segmentation
Market segmentation i the process of taking the total
heterogeneous market for a product and dividing it into several submarkets or
segments each of which tends to be homogeneous in all significant respects.

Criteria for segmentation:

1. Substantial scope
2. Measurable
3. Accessible to the market
4. Representative nature
5. Growth rate
6. Response rate

Types of segmentation

1. Geographical segmentation
2. Demographic segmentation
3. Product segmentation
4. Economic segmentation
5. Benefit segmentation
6. Socio Volume segmentation
7. Life segmentation

Levels of segmentation

1. Mass marketing
2. Segment marketing
3. Niche marketing
4. Local marketing
5. Individual marketing

Benefits of segmentation

1. Proper choice of target market

2. Tapping a particular market
3. Efficient and economic marketing efforts
4. Benefits to the customer
Need for market segmentation

1. It enables the marketer to have better control over the market

2. It is possible to satisfy the varying needs of the buyers
3. The marketer can adopt the right strategy at right time
4. The resources of the business can be more utilized more efficiently
5. The segment requiring greater attention can be given more
weightage

E-marketing
E-marketing (Electronic marketing) are also known as Internet
marketing, web marketing, Digital marketing, or Online marketing

Types of E-marketing

1. E-mail marketing
2. Search engine optimization
3. Paid advertising
4. Social media channels
Following are the main functions of marketing
A)Function of exchange

1.Buying
2.Assembling
3.Selling

B)Function of physical

1. Transportation
2. Storage
3. Warehousing

C)Function of facilitating

1. Financing
2. Risk-tasking
3. Standardizing
4. Grading
5. Market information

A) Function of exchange
1. Buying
2. Assembling
3. Selling

1.Buying
Buying of goods or services is the first and important function of
marketing process. Producers, intermediaries, wholesalers and retailers do this
function. Producers buy raw materials or semi-finished goods to produce
finished and intermediaries buy goods to resell.

Factors to be considered in buying:

1. Quality
2. Quantity
3. Timing
4. Price
5. Source of supply
2.Assembling
Assembling means to purchase necessary component and to fit them
together to make a products . Assembly line indicates a production line made up
of purely assembly operation. The assembly operation involves the arrival of
individual component parts at the work place and issuing of these parts to be
fastened together in the form of an assembly or sub-assembly.

Advantage of assembling

1. A manufacture it ensures availability of raw materials

and avoids shortage of stock.
2. A trader, who buys from different manufacture, is able
to offer choice to his consumed.
3. It results in savings in transportation costs and handing
changes for a manufacture as the frequency of buying is
reduced.
4. The production of certain goods is seasonal but their
consumption is parental.

Disadvantage of assembling

1. Assembling depends much on the avaibility of storage

facilities. But proper storage may not allow the
performance of assure function.
2. The perishable nature of certain goods may not provide
scope for assembling.
3. The certain goods have a tendency to become outdated
quickly. The keeping stock of such goods may only
result in loss.
4. The quality of certain goods deteriorates with the
effetely of time. One their expire date loses.

3.Selling
The process of transferring ownership of goods from the seller to the
buyer is called selling. Selling starts after production and the philosophy of
selling is profit maximization.
Steps of the selling

1. Finding a buyer
2. An agreement between the seller and the buyer on quality,
quantity, price, plant of delivery of goods and also the mode of
payment.
3. The contract of sale provides for certain condition and warranties
to be fulfilled by the seller.

B) Function of physical supply

The term physical distribution is used, generally to
describe a series of interrelated activities. It was described as the other hall of
marketing. This function is merely one of a number of sub-system that comprise
the total business activities.

1. Transportation
2. Storage
3. Warehousing

1.Transportation
The goods produced in a particular placed are not consumed
there itself. From the place of production the goods need to be taken to the
various consumption centres.

It creates place, utility transportation is essential from the procurement of raw

material to the delivery of finished products to the customer’s places. Marketing
relies mainly on railroads, trucks, waterways, pipelines and air transport.

Function of transportation

1. It helps the business to carry the goods to the various

consumption centres.
2. It makes available goods at the doorstep of the consumer.
3. The market for the goods by catering to buyer in different
regions
4. It helps those business are easily perishable goods in
nature by carrying these to the market at right time.
5. It creates place utility by bridging the gab between the
production and consumption centres.
 6. It is only development of the transportation system that
has given the buyers access to international brands of
goods.
7. It also offers employment opportunities to many.

Classification of transport:

1. Road transport
2. Rail transport
3. Sea transport
4. Air transport

The type of transportation is chose on several considerations such as suitability,

speed and cost. Transportation may be performed either by the buyer or by the
seller. The nature and kind of the transportation facilities determine the extend
of the marketing area, the regularity in supply uniform price maintenance and
easy access to supplier or seller.

Storage
Storage is major marketing function which involves the utilization of
substantial manpower and capital resources. The ultimate consumer finds it
necessary to purchase some goods in advance of needs and to store them for the
future use. The maintenance of stock of raw materials and finished products call
for storage.

Functions of storage

1. To preserve goods that is produced only during a particular

season, but demand throughout the year (agricultural goods).
2. To preserve goods that is produced throughout the year. The
demand during a particular season (crackers, umbrellas)
3. To enable businessmen to make speculative gain and to wait and
sell at a higher price.

Warehousing
Goods may be stored in various warehouse situated at
different places, which is popularly known as warehousing.
Warehouses are required to store the goods for the adjustment of
supply to demand.
Different kinds of warehouse:

1. private warehouse (own use)

2. public warehouse (any individual or business units and

controlled by the govt.)

3. bonded warehouse (it is located near by ports)

C) Function of facilitating:
There are different facilitating functions of marketing:

1. Financing
2. Risk- talking
3. Standardizing and grading
4. Market information
1. Financing
The whole modern production and marketing
mechanism is based on credit and money. No person can think
of conducting business without sufficient finance. The business
needs finance for various purpose, one such purpose for
marketing. There is wide gap between the production of goods
and consumption of goods. So the product, distributing and
consuming require large funds.
2. Risk – taking (insurance)
When the goods are sent by the
seller to the buyer through rail, road and ship, there may be risk of
loss. the goods may be lost or damaged or destroyed by sea perils,
flood, fire, theft, storm and change in the temperature. So
insurance provides safely against any unforeseen circumstances
and ways to the business people to cover losses or dangers.
 3. Standardizing and grading
A standard provides the basis that
credit enables the consumers to make a comparison between
goods. Whether a product conforms to the expected quality and
the price paid is justified. Standardization is relevant for consumer
and industrial goods.

Grading is a reality a part of

standardization. It is process which tests the conformity of
commodities to standards that have been previously set up.
Product of agriculture and the extractive industries are usually
graded according to general standard. Grading may be based on
shape, size, colour, strength, appearance, specified gravity and
chemical contents.

Advantage of standardization and grading

1. Standardization and grading facilitate buying and selling
of goods by sample or description. When goods are of
standardization quality, customers do not insist on
detailed inspection.

2. Standardization goods sell better and fetch a better price

to seller because customers have more faith in them.

3. Transportation, storage and advertising expenses can be

reduced by handing different grades or lots.

4. Standardization goods enjoy a wider market.

5. Standardization and grading facilitate trading of goods on

the commodity exchange. Hedging future trading and
price comparisons become easy.
Product life cycle (PLC):
A product passes through different stages in the life. That stages
collectively known as product life cycle. Products have length of life.
This length of life to product is known as product life cycle.

I ->Introduction
II ->Growth
Annual Sales Volume

III ->Maturity or
stability
IV ->Decline

Time
I II III IV
Different stages in product life
cycle

Consumer goods:
Those goods which are directly consumed or use by the
buyers without any commercial processing are known as consumer of goods.

Classification:
• Convenience goods
• Shopping goods
• Speciality goods
• Impulse goods

i)Durable goods:

Motor car, Furniture, Clothing

ii)Non durable goods:

Medicines, Toiletries
Features of a product (or) Characteristics of a product:
• Tangibility
• Intangibility attributes
• Buyers buy the benefits
• Exchange value
• Consumer statisfaction

Product branding:
• Branding is the practise of giving a specified name to a product of
one seller. Branding is the process of finding an fixing the means
identification. The essence of branding is identification of
particular products from among rival products.
• Branding is a general name describing the establishment of a brand
mark or trade mark for a product.

Function of branding:
• It is helps to identify a product.
• It helps to identify the manufacturer also.
• It helps to distinguish between competing
products in the markets.
• It enables the buyers to buy quality goods.
• It gives legal protection to the manufacturers.
• It helps in packing, labelling, advertisement and in all sales
promotional activities.

Advantages of branding:
• It gives item to legal protection.
• It helps to secure goodwill for their business.
• Can easily find out the fast moving brands.
• The buyer can buy with confidence.
• The buyer can buy a brands product from any shop.
Disadvantage of branding:
• The product price tends to go up.
• It involves heavy expenditure and sustained effort to establish a
brand.
• It imports a sort of rigidity to the product.
• The selection of a proper brand name also creates problem.

Characteristics of a good brand:

• It should be just appropriate for the product (for example – All
out).
• It should be easily to remember.
• It should be suggestive. (For example- Fair and lovely face
cream)
• It shoud be aeasy to pronounce. (Illiterate person).
• It should be cabable of being registered and protected legally.

Product packaging:
• Packaging means wrapping of goods before they are transported
or stored or delivered to a consumer. Packaging is the sub
division of the packing function of marketing
• Packing has been defined and activity which is concerned with
protection, economy, convenience and promotional consideration
.

Function of package:
• To protect the contents from getting spoiled or Damaged.
• To allow easy handling of certain bulky goods like rice ,
wheat,sugar etc.,
• To facilitate transportation of goods to different Places.
o To allow space also for pasting label .
o To facilitate self service .
o To scope for reuse
Characteristics of good package:
• Attract attention
• Clean and sanitary
• Establish idendity
• Develop and sustained interest
• Convenient to handle
• Enhance the image of the product

Kinds of package:
1. Consumer package;
It refers to the package which holds the required volume of
product for house hold consumption for example ; tooth paste

2. Family package;
The different products of a particular company are packed in a
uniform way. Application of the same materials and method of packaging for
all products is called Family packaging for example ; Tata oil, shampoo.

3. Dual use package;

It is also known as reuse package. It refers to package that
could be reused after its contents are fully consumed. For example; glass
jars, plastic containers, and cotton bags.

4. Multiple packages;
The method of placing several units in one container is known
as multiple packaging. For example; baby’s care set, cosmetics and perfumes
set.
5. Bulk package;
Bulk package is useful for supplying the product to the industrial
consumers in large quantities, similarly, bulk package is used for loose
dispending by the dealers.
Promotion policy
Physical distribution involves planning, implementing and controlling the
physical flow of material and finished goods from points of origin to points of
use to meet customer needs at a profit.

Physical distribution as a part of the marketing mix

Channel of distribution

1. Retailers
2. Wholesalers
3. Middlemen

Promotion mix

1. Advertising
2. Sales promotion
3. Personal selling
4. Publicity

Promotion mix

According to the American marketing association, promotion

is “the personal or impersonal process of assisting and/ or persuading a
prospective customer to buy a product or service or to act favourably upon the
idea that idea that has commercial significance to the seller”.

Elements of promotional mix:

There are various tools and elements available for promotion.

These are adopted by firms to carry on its promotional activities. The market
generally choose a combination of these promotional tools.

Following are the tools or elements of promotion They are called elements of
promotional mix.

A. Advertising
B. Sales promotion
C. Personal selling
D. Publicity
E. Public relation
Objectives of advertisement

1. Effect of advertisement on values, materialism and life styles.

2. Advertising encourages sae of inferior and dubious products.
3. Advertising confuses rather than helps.
4. Some advertisements are in bad taste.

Feature of advertising

1. Paid form: The sponsor has to pay for advertising he has to bear
a cost to communicate with customers.
2. Impersonality: There is no face to face contact between
customers and advertiser. It creates a monologue and not a
dialogue.
3. Identified sponsor: Advertisement is given by an identified
company or firm of individual.

Kinds of Advertising

Advertising may be classified into following categories

1. Product Advertising
Normal characteristic of advertising is to create primary
demand for a product category rather than for a specific brand ( e.g.
dalda, Dettol, Horlicks ). In short, where the company tries to sell its
product or services through advertising, it may be referred to as product
advertising.
2. Institutional advertising
Where the objective of advertising is to the project the
image of a company or its services, it is called institutional advertising.
These, advertisements are not always directed only to customers.
3. Primary demand Advertising
It is intended to stimulate primary demand for a new
product or a product category. It is heavy utilized during the introduction
stage of the product life cycle.
4. Selective or competitive advertising
When a product enters growth stage of the life cycle and
when completion begins, advertising becomes competitive or selective.
 5. Comparative advertising

This is a highly controversial trend in competitive market

that is recently noted. Such type of advertising stress on comparative features of
two or more specific brands in terms of productive / services attributes.

6. Co-operative advertising

The certain products are jointly advertised by the

manufactures and dealers together. Such advertising is what is known as
collective or co-operative advertising. The manufactures of car, motorcycle are
TV also.

7. Non-commercial advertising

Such advertisements are brought out by charitable

organization mainly to secure financial help from philanthropists.

Benefits of advertising (significance)

Benefits to the manufactures

1. It helps to introduce a product in to the market.

2. It helps to create primary demand for a product.
3. It includes buyers to buy and there by increase the sales
volume.
4. It is vital to maximize sales during festive times.
5. It is required to inform the buyers about product modification
and alternative.

Benefits to the dealers

1. It facilitates selling
2. It helps to achier a higher turnover of inventory.
3. It supplements the selling efforts of dealers
4. It helps them to get product information from the manufacture
and pass itself on to the customers.
5. It helps to enhance the prestige of the dealers.
Benefits to the consumers

1. It gives product information to the buyers.

2. It indirectly assures quality of goods.
3. When and from whom they can buy the goods and at what
price.
4. It helps them to compare the relative merits of the substitutes
available in the market.

Benefits to the salesman

1. It prepares the necessary ground for the salesmen to start their

work.
2. It reduces selling efforts as advertisements has already made
the products popular.
3. The contacts established with the customer by a salesman is
made permanent through advertising.
4. The salesman can weight the effectiveness of advertising when
he makes a direct contact with the customer.

Different media of advertising

There is no dearth of media today. The media are broadly
classified into direct and Indirect. Direct method of advertising refers to such
method used by the advertiser with which he could establish a direct contact
with the prospects, e.g., Direct mail.

Indirect method, o the other hand, involves the use of a hired agency for
spreading the information. Most of the media are direct in nature, e.g., press
publicity, cinema etc.

The various media that are commonly used are:

1. Press publicity
2. Direct mail
3. Outdoor publicity
4. Audio-visual methods
5. Point of purchase advertising
6. Speciality advertising
 1. Press publicity
This remains the most popular method of publicity today. Newspaper
and magazines have become a part of the cultural and political life of people
now. Press publicity takes two forms

a. Newspaper
b. Magazines
2. Direct mail
1. Directness- The message is directly addressed to the prospective
customers.
2. Flexibility- The message could be changed or altered to suit
different conditions.
3. Time lines- Advertising could be timed according to the wishes of
the advertiser.
4. Economical- cheap compared to other forms of advertising.
5. Personal appeal- The greatest attraction of this method is its
capacity to create and maintain personal contact.
3. Outdoor advertising
It is oldest form of advertising and remains the most common
medium even today. Press publicity is basically ‘indoor advertising’, as papers
are generally read indoors. Outdoor advertising projects the message to a large
number of people of heterogeneous interests. The products that need a wide
appeal use this method.

4. Audio-visual methods
Advertising could be effectively carried out through the
use of motion pictures or cinema. Though it is comparatively a new medium,
it has become one of the popular ones.

5. Point of purchase advertising (P.O.P)

This is a direct method because the advertising
process is undertaken by the dealer. There are various forms commonly
known as ‘store display’. It is also powerful medium. It is observed that
the point of purchase is the exact where the prospects are reminded
finally about a product.