Chep#1: Marketing an Introduction

Marketing: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Marketing as selling and advertizing: Marketing is not only selling and telling but is to satisfy the customer needs. They must to understand the consumer needs, develop products, that provide superior value, and price, distributes and promotes them effectively, this product will sell easily. Needs, wants and demands: Needs are states of felt deprivation. They may be physical, social and individual. Wants are the forms taken by human needs as they are shaped by culture and individual personality. E.g. soft water in united state. Demands are human wants that are backed by buying power. Product: Any thing that can be offered to a market for attention that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas. Customer value, satisfaction and quality: The consumers assessment of the products overall capacity to satisfy his or her needs. If the products performance exceeds expectations, the buyer is satisfied or delighted. Quality has the direct impact on product or service performance. The program design to improve the quality of product, services and marketing is called total quality management. Marketing offers: Marketing offers are of two types: a) Physical i.e. products, or services b) Tangible i.e. info or experiences. These offers are to satisfy the consumer needs and wants. Exchange, Transactions, and Relationships: Exchange is the act of obtaining a desired object from someone by offering something in return. Transaction is a trade b/w two parties that involve at least two things of value, agreed upon conditions, a time of agreement and a place of agreement. Relationship is the process of creating and maintaining strong relationships with customers and other stakeholders. Market: The set of all actual and potential buyers of a product or service. It is a place where buyers and sellers gather to exchange their goods and values. Marketing mix: A set of controllable tactical marketing toolsproduct, price, place, and promotion--that work together to affect the market place. Marketing Strategy: The marketing logic by which the business unit is supposed to achieve its marketing objectives. Core marketing activities: 1) product development 2) research 3) communication 4) distribution 5) pricing 6) services Exchange process: 1) Seller must search for the buyers. 2) Identify their needs. 3) Design good products and services. 4) Set reasonable price for them. 5) Promote them effectively. 6) Deliver them efficiently.

Marketing myopia: It focuses on the existing wants of the customer not on the needs. It bring loose sight on the needs. E.g. people of united nation want soft water. Core Marketing concept: To examine and understand the: a) needs, wants, and demands; b) products; c) value, satisfaction, and quality; d) exchange, transactions, and relationships; e) markets. Marketing management: The analysis, planning, implementation, and maintenance of beneficial exchanges with target buyers for the purpose of achieving organizational objectives. It involve following two factors. 1. Demand management: Marketing mgt is not only to find the customers. Every org has a desired level of demand for its product. At any point there may be: a) no demand b) adequate demand c) irregular demand or d) too much demand. Power cos sometimes have trouble meeting demand during peak usage periods. In these cases of excess demand, the needed marketing task, called: de marketinga kind of marketing to reduce the demand temporarily or permanently; the aim is not to destroy demand, but only to reduce or shift it in such a way that helps the org to achieve its objectives. 2. Building profitable customer relationships: It concern to attract the new customers while keeping and satisfying the old ones. Also to retain current customers and build lasting customer relationship. Marketing mgt orientation: There are five concepts under which orgs conduct their marketing activities: 1. Production concept: It holds that consumers will favor products that are available and highly affordable and that mgt should therefore focus on improving production and distribution efficiency. There are two situations for this concept: a) when the demand for a product exceeds the supply, here mgt look the way to increase the production b) when the products cost is too high and is needed to bring it down. 2. Product concept: It holds that consumers will favor products that offer the most quality, performance, and features and that the org should therefore devote its energy to making continuous product improves. 3. Selling concept: the idea that consumers will not buy enough of the organizations product unless the org under takes a large scale selling and promotion effort. E.g. encyclopedia and insurance. 4. Marketing concept: Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. 5. Societal marketing: The org should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively than competitors to maintain societys well being. Customer relationship mgt: To build profitable customer relationships by delivering the values and satisfaction to customers. It concerns to attract retain and grow the customers by lowing price, improving the quality and services of the product. Also the product must match the customers expectations. 1. To retain and grow new customers: a) It is difficult to attract new customers rather than to retain existing one.

b) More effort is required to attract new customers rather than to retain existing one. 2. Customer loyalty and retention: Customer satisfaction is directly proportional to the loyalty, if the customer is not satisfied, he will not be loyal and vice versa. 3. Growing share to customers: Through cross selling means(gathering more business from current customers by selling new products to them with additional offers. Social and financial benefits provide to customers like to create customer communities in clubs. Marketing challenges in global world: Media, technologies, computer, telecommunication, video conferencing, internet advertisement etc. are used to meet the global competition. Move from mass marketingto make the small segment of market, it is standard way to any customer.

Chep#2: Company and marketing strategy

Strategic planning: The process of developing and maintaining a strategic fit between the organizations goals and its changing marketing opportunities. It consists of developing a clear company mission, supporting objectives, a sound business portfolio and coordinated functional strategies. There are three types of strategic plans 1) Annual plans 2) Long range plans 3) strategic plans. Annual and long range plans deal with the companys current businesses and how to keep them going. In contrast, the strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment.

Startin Focus g point Faculty through

Means Existing

Ends

Selling and Profits sales volume

Products

promoting

The selling concept

Market through Needs satisfaction

Customer Integrated Marketing The marketing concept

Profit customer

Figure 1 Core marketing concepts

Mission statement: A statement of the organizations purposewhat it wants to accomplish in the larger environment. A mission statement should be 1) market orientedsatisfying basic customer needs 2) product oriented 3) )company oriented 4) avoid making it too narrow or too broad 5) realistic 6) specific Business unit, product and 7) motivating. Corporate level market level Defining the company Setting company objectives mission and goals Setting companys objectives and goals: Designing the business portfolio Planning marketing and other function strategies

1) Marketing objectivesselling in market at low cost. 2) Business objectivesto increase production accordingly. Designing the business portfolio: Business portfolio is the collection of business needs and products that make up the company. The best business portfolio is one that best fits the companys strengths and weaknesses to opportunities in the environment. The companys business portfolio planning involves two steps: The company must 1) analyze the current business portfolio and decide which businesses should receive more, less or no investment and 2) develop growth strategies for adding new products or business to the portfolio. Portfolio analysisa tool by which mgt identifies and evaluates the various business that make up the company. 1. Strategic business unit: A unit of the company that has a separate mission and objectives and that can be planned for independently from other company business. It can be a company division or a single product or brand. SBUs portfolio analysis method evaluated on two dimensions: 1) attraction of SBUs market 2) strength of SBUs position to market. 2. The Boston consulting group approach: Using this approach, a company classifies all its SBUs according to the growthshare matrixa portfolio planning method that evaluates a companys strategic business units in terms of their market growth rate and relative market share. SBUs are classified as: 1) Starsare high growth, high share products, need heavy investments to finance their rapid growth. Eventually their growth will slow down and they will turn into cash cows. 2) Cash cowsare low growth, high share products, need less investment to hold their market share. Thus they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment. 3) Question markare low share business units in high growth markets. They require a lot of cash to hold their share. Mgt has to think hard about which question marks it should try to build into stars and which should be phased out. 4) )Dogsare low growth, low share products, they may generate enough cash to maintain themselves, but do not promise to be large sources of cash. Worst category, have to convert into question marks or phased out. If a company have too much dogs and few cash cows and stars then its better to close that business. Four strategies for each SBU: 1) Company can invest more in the business unit in order to build its share 2) It can invest just enough to hold the SBUs share at the current level. 3) It can harvest the SBU, milking its short term cash flow regardless of the long term effect. 4) It can divest the SBU by selling it or phasing it out and using the resources elsewhere. Life cycle of each SBU: Many SBUs start out as question marks and move into the stars category if they succeed. They later become cash cows as market growth falls th3en finally die off or turn into dogs toward the end of their life cycle. The company needs to add new products and units continuously so that some of them will become stars and eventually, cash cows that will help finance other SBUs. Problems with matrix approach: Difficult, time consuming, costly to implement. Difficult to measure market share and growth. Focus on classifying current business but provide little advice for future planning. Developing growth strategies: A strategy for companys growth by offering modified or new products to current market segments. Developing strategy for growth and downsizing. Product/market expansion grid: A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Market penetrationa strategy for company growth by increasing sales of current products to current market segments without changing the product in any way. Market developmenta strategy for company growth that identifies and develops new market segments for current company products. Product developmenta strategy for company growth that offers modified or new products to current market segments . the product concept is developed into a physical product in order to assure that the product ideas can be turned into a workable product. Diversificationa strategy for company growth that starts or acquires businesses outside the companys current products and markets. Downsizingproducing business portfolio by eliminating products or business units that are not profitable or not fit for long term companys strategy. Value chain: A major tool for identifying ways to create more customer value. It includes: a) Marketing efforts b) Analysis c) Planning d) Implementation and e) Control. Marketing process: The process of 1) analyzing marketing opportunities, 2) selecting target markets, 3) developing the marketing mix and 4) managing the marketing efforts. Market segmentation: Dividing a market into distinct group of buyers with different needs, characteristics or behavior who might require separate products or marketing mixes. Market segment: A group of consumers who respond in a similar way to a given set of marketing stimuli.

G r o w t h r a t e

H i g h

L o w Hig Lo h w Relative market share

Market targeting: The process of evaluating each market segments attractiveness and selecting one or more segments to enter. Market positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Figure 2 The BCG growth share matrix

Figure 3 Life cycle

Figure 4 The four P's of the marketing mix Marketing efforts relationship

Figure 5

Marketing Implementation: The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives Marketing Control: The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that marketing objectives are attained. Marketing audit: A systematic and independent examination of a companys environment, objectives, strategies, and activities to determine problem areas and to set a plan to improve the companys performance.

Chep#3 Marketing Environments

Marketing environment: The actors and forces outside marketing that affect marketing managements ability to develop and maintain successful transactions with its target customers. The marketing environment offers both opportunities and threats. Successful companies know the vital importance of constantly watching and adapting to the changing environment. Microenvironment: The forces close to the company that affect its ability to serve its customersthe company itself, suppliers, market channel firms, customer markets, competitors, and publics. Macro environment: The larger societal forces that affect the whole microenvironmentdemographic, economic, natural, technological, political, and cultural forces. The companys Microenvironment: Marketing managements job is to attract and build relationships with customers by crating customer value and satisfaction. Their success depends on other actors in the companys microenvironmentother company departments, suppliers, marketing intermediaries, customers, competitors, and various publics, which combine to make up the companys value delivery system. 1. The company: The groups such as top mgt, finance, research and development (R&D), purchasing, manufacturing, and accounting. Top mgt sets the companys mission, objectives, broad strategies, and policies. 2. Suppliers: Suppliers are an important link in the companys overall customer value delivery system. They provide the resources needed by the company to produce its goods and services. Also monitor price. 3. Marketing intermediaries: Firms that help the company to promote, sell, and distribute its goods to final buyers; they include 1) resellersdistribution channel firms that help the company find customers or make sales to them. These include a) wholesalers and b) retailers who buy and resell merchandise. 2) physical distribution firmshelp the company to stock and move goods from their points of origin to their destinations. Working with warehouse and transportation firms, a company must determine the best ways to store and ship goods, balancing such factors as cost, delivery, speed and safety. 3) marketing services agenciesare the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets. Financial intermediariesinclude bands, credit companies, insurance companies, and other business that help finance transactions or insure against the risks associated with the buying and selling of goods. 4. Customers: The company needs to study its customer markets closely. There are five types of customer markets: 1) Consumer marketsconsist of individuals and households that buy goods and services for personal consumption.

2) Business marketsbuy goods and services for further processing or for use in their production process. 3) Reseller marketsbuy goods and services to resell at a profit. 4) Govt. marketsare made up of Govt. agencies that buy goods and services in order to produce public services or transfer the goods and services to other who need them. 5) International marketsconsist of these buyers in other countries including consumers, producers, resellers, and governments. 5. Competitors: The marketers must do more than simply adapt to the needs of target consumers. They also must provide good offers against their competitors to their consumers. 6. Publics: Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives. There are seven types of publics: 1) Financial publicsinfluence the companys ability to obtain funds. E.g. banks and stockholders. 2) Media publicscarry news, features and opinions. E.g. newspapers, T.V, Radio, etc. 3) Govt. publicMarketers must often consult the companys lawyers on issues of product safety, truth an other matters. 4) Citizen-action publicspublic relation department can help to stay in touch with consumer and citizen groups. 5) Local public. 6) General public. 7) Internal publicworkers The companys Macro environment: It include six major factors: 1) Demographic environmentthe study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics. 2) Economic environmentfactors that effect consumer buying power and spending patterns. Major economic trends are: a) Change in incomeMarketers should pay attention to income distribution as well as average income. At the top are: supper class consumers, whose spending patterns are not affected by current economic events and who are a major market for luxury goods, then middle class that is somewhat careful about its spending but can still afford the good life. Working class must stick close to the basics of food, clothing and shelter and must try hard to save. Underclass persons on welfare must count their pennies when making even the most basic purchases. b) Changing in consumer spending patternschanges in major economic variables such as income, cost of living, interest rates, and savings and borrowing patterns have a large impact on the marketplace. Companies watch these variables by using economic forecasting. 3) Natural environmentnatural resources that are needed as inputs by marketers or that are affected by marketing activities. Marketers should be aware of the following four trends in the natural environment: a) Shortage of raw materialsnonrenewable resources such as oil, coal, and various minerals, pose a serious problem. b) Increased cost of energyEnergy is also a problem, in fact hundreds of firms already are offering products that use solar energy for hearing homes and other uses. c) Increased Pollution,

d) Govt. intervention in natural resource mgt. 4) Technical environmentforces that create new technologies, creating new products and market opportunities. The marketers should watch the following trends in technology: a) Fast pace of technological change b) High R&D budget c) Concentration on minor improvements d) Increased regulation. 5) Political environmentLaws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. 6) Cultural environmentInstitution and other forces that affect societys basic values perceptions, preferences, and behaviors. Following are the cultural characteristics: i) Persistence of cultural ValuesPeople in a society hold many beliefs and values, which have a high degree of persistence: a) Core belief and valuesare passed on form parents to children and are reinforced by schools by schools, churches, business, and Govt. b) Secondary beliefs and valuesare more open to change. Belief in marriage is a core belief; believing that people should get married early in lie is a secondary belief. ii) Shift in secondary cultural valuesThe major cultural values of a society are expressed in: a) peoples views of themselves, b) peoples view of others, c) peoples views of organizations, d) peoples views of society, e) peoples views of nature, f) peoples views of the universe. Environment management perspective: A management perspective in which the firm takes aggressive actions to affect the public and forces in its marketing environment rather than simply watching and reacting to it.

Chep#4: Consumers market and consumer buying behavior

Consumer Buying Behavior: The buying behavior of final consumers --individuals and households who buy goods and services for personal consumption. Consumer Market: All the individuals and households who buy or acquire goods and services for personal consumption. Model of Consumer Behavior: 1. Marketing stimuli: It consists of the four Ps: a) product, b) price, c) place, and d) promotion. 2. Other stimuli: It include major forces and events in the buyers environment:

a) economic, b) technological, c) political, and d) cultural. Model of Buyers Behavior:

Marketing and other stimuli: Product, price, place, promotion. Economic, technical, political, cultural.

Buyers Black Box: Buyers characteristic s. Buying decision process.

Buyers Responses: Product choice Brand choice Dealer choice Purchase timing Purchase amount

Characteristics Affecting Consumer Behavior: 1. Cultural Factors: Cultural factors influence the customer behavior, so marketer needs to understand the role played by the buyers culture, subculture, and social class. a. Culture: Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. E.g. colors having different means for diff people. b. Subculture: A group of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, and geographic regions. Example: Here are four important subcultures. i. Hispanic Consumers: They are Americans, Mexican, and South American consist of 26 million consumers. They use Spanish language and their products are computers, financial services, etc. They tend to buy higher quality products. Also they are very brand loyal. ii. African American Consumers: They are price conscious, give importance to brand name, strongly motivated by quality, do less shopping, brand loyal and prefer online services. E.g. coca cola. iii. Asian American Consumers: Invest to store and stock, trade two or more times to get profit and shares, include Japanese, Asian Indians. iv. Mature Consumers: Above 50 years, have more time and money , their ideal markets are restaurant, fashion, furniture, and financial services. c. Social Class: Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. They cant determined by a single factor but is measured as a combination of occupation, income, education, wealth etc. This class show distinct product and brand preferences. 2. Social Factors: A consumers behavior is also influenced by social factors, such as: 1) Groups--Two or more people who interact to accomplish individual or mutual goals. There may be: a) Primary groupswith whom there is regular but informal interaction such as family, friends

b) Secondary groupswhich are more formal and have less regular interaction c) Reference groupsserve as direct or indirect points of comparison or reference in forming a persons attitudes or behavior d) Asp rational groupis one to which the individual wishes to belong. Opinion leaderspeople within a reference group who, because of special skills,, knowledge, personality traits, or other characteristics, exert influence on others. 2) FamilyThe family is the most important consumer buying org in society, an it has been researched extensively. 3) Roles and StatusA person belongs to many groups, the persons position in each group can be defined in terms of both role and status. Each role caries a status reflecting the general esteem given to it by society. A role consists of the activities that people are expected to perform according to the persons around them. 3. Personal factors: Such as buyers: a) Age and life cycle stagePeople change4 the goods and services that they buy over their lifetimes. Tastes in food, clothes etc. are often age related. The stage thru which families might pass as they mature over time is called family life cycle b) OccupationA persons occupation affects the goods and services bought c) Economic situationA persons economic situation will affet product choice d) LifestyleA persons pattern of living as expressed in his or her psychographicsIt involves measuring the consumers major AIO dimensions: i) Activitieswork, hobbies, shopping, sports, social events ii) Interestsfood, fashion, family recreation iii) Opinionabout themselves, social issues, business, products. Several firms have developed lifestyle classification. The most widely used is the SRI values and lifestyle(VALS) topology: Classify the people according to how they spend their time and money. It divides consumers into eight groups based on two major dimensions: self orientation and resources; Self oriented 1) Principle oriented consumers who buy based upon their views of the world; ii)Status orientedwho base their purchases on the actions and opinions of others 2) Action orientedwho are driven by their desire for activity, and risk. 3) Abundant resources Minimal resources. Life style also include Techno graphic schemeconsists of: 1) Fast forwardbiggest spenders for personal 2) New age NurturesBig spenders for family, 3) Mouse potatoeswilling to spend for new technology, 4) Techno ServicesConsumers that use technology temporarily, 5) Hand shakersConsumers or managers that do not touch the computer and have assistants e) personality and self conceptA persons distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment. TypesPersonality is usually described in terms of traits such as: i) Self confidence b)Dominance, ii) Sociability, iii) Autonomy, iv) Defensiveness, v) Adaptability,

vi) Aggressiveness. Brand personalityour choice, mix of traits. Traits may be i) Sincerity(honesty), ii) Excitement, iii) Competence, iv) Sophistication(charming), v) Rigidness(tough). Self conceptalso called self image, to reflect the peoples identities 4. Psychological factors: A persons buying choices are further influenced by four major psychological factors: a) MotivationA need that sufficiently pressing to direct the person to seed satisfaction of the need. Types: i) Biologicalarising from states of tension such as hunger, thirst etc. ii) Psychologicalarising from the need for recognition, esteem, or belonging, b) PerceptionThe process by 2which people select, organize, and interpret info to form a meaningful picture of the world. It have three perceptual processes: i) Selective attentionthe tendency for people to screen our most of the info to which they are exposed to attract the customers attention, ii) Selective distortionthe tendency of people to interpret info in away that will support what they already believe , iii) Selective retentiontend to retain info that supports their attitudes and beliefs Subliminal advertizing(demerits)E.g. drama and repetition in sending messages to their market. Although most marketers worry about whether their offers will be perceived at all, some consumers are worried that they will be affected by marketing messages without even knowing it, c) LearningChanges in an individuals behavior arising from experience. It consist i) Beliefa descriptive thought that a person hold about something. ii) AttitudeA persons consistently favorable or unfavorable evaluations, feeling, and tendencies toward and object or idea. 5. Buying behavior: Buying behavior of a customer may be:i) Complex: Learn and search. Product conscious persons have this behavior, they check different market and prices. Differences among brands occur. ii) Dissonance reducing: High consumer involvement. Expensive, may be risky. Post purchased dissonance occur. Few perceived difference among brand occur. Post purchase dissonancethe behavior to which consumer discomfort after purchasing. The stag4e of the buyers decision process which consumer take further action after purchase based on their satisfaction or dissatisfaction. iii) Habitual: Low consumer involvement, few difference among brand. No need to have special attitude. iv) Variety seeking: Low consumer involvement but significant brand difference. Brand switching due to long time. Cognitive dissonancebuyer discomfort caused by post purchased conflict. The buyer decision process: Buyer decision process consists of following five stages:Need recogniti on Informati on Evaluation of alternative Purchase decision Post purchase behavior

1) Need recognition: The consumer recognizes a problem or need. The buyer senses a difference between his or her actual state and some desired state. The need can be triggered by internal or external factors. 2) Information search: The consumer is aroused to search for more info, the consumer may simply have heightened attention to info or may go into active info search. The consumer can obtain info from any of following sources:i) Personal sourceFamily, friends, neighbors, acquaintances ii) Commercial sourceAdvertising, salespeople, dealers, packaging, displays iii) Public sourcesMass media, consumer rating organizations iv) Experiential sourcesHandling, examining, using the product 3) Evaluation of alternatives: The consumer uses info to evaluate alternative brands in the choice set. This process contain: i) Product attributes ii) Degree of importance to different attributes iii) Brand beliefs--Brand imagethe set of belief that consumers hold about a particular brand. iv) Total product satisfaction v) Arrival at attitudes toward the different brands 4) Purchase decision: In this stage the consumer actually buys the product. Two factors can come between the purchase intention and the purchase decision: i) Attitudes of others ii) Unexpected situational factors 5) Post purchase behavior: In this stage the consumer take further action after purchase based on their satisfaction or dissatisfaction. It concerns with two factors: i) Consumers expectations ii) Perceived performance Cognitive dissonancebuyer discomfort caused by post purchase conflict. The buyer decision process for new products New productA good, service, or idea that is perceived by some potential customers as new. Adoption processThe mental process through which an individual passes from first hearing about an innovation to final adoption. Stages in the adaptation process:1) AwarenessThe consumer becomes aware of the new product, but lacks information about it. 2) InterestThe consumer seeks info about the new product. 3) EvaluationThe consumer considers whether trying the new product makes sense. 4) Trialthe consumer tries the new product on a small scale to improve his or her estimate of its value. 5) AdoptionThe consumer decides to make full, regular use of the new product. Influence of product characteristics on rate of adoption: Five characteristics are especially important in influencing an innovations rate of adoption:1) Relative advantage 2) Compatibility 3) Complexity 4) Divisibility 5) Communicability

Chapter#5 Target marketing

1. Three major steps in target marketing: a. Marketing segmentationDividing a market into distinct groups of buyers with different need, characteristics, or behavior who might require separate products or marketing mixes. b. Target marketThe process of evaluating each market segments attractiveness and selecting one or more segments to enter c. Market positioningFormulating competitive positioning for a product and creating a detailed marketing mix. a. Market segmentation: 1) GeographicalDividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods. Localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities. 2) Demographic segmentationDividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education,, religion, race, and nationality. i. Age and life cycle stageDividing a market into different age and lifecycle groups. As user needs and wants change with the age. ii. Gender segmentationDividing a market into different groups based on sex. iii. Income segmentationDividing a market into different income groups. 3) PsychographicDividing a market into different groups based on social class, lifestyle, or personality characteristics. 4) BehavioralDividi8ng a market into groups based on consumer knowledge, attitude, use, or response to a product. It includes:i. OccasionDividing a market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. ii. BenefitDividing a market into groups according to the different benefits that consumers seek from the product. iii. User statusMarket can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product. Potential users and regular users may require different kinds of marketing appeals. iv. User/market rateMarket also can be segmented into light, medium, and heavy user groups. v. User loyalty(direct comparison marketing)A market can also be segmented by consumer loyalty. Consumers can be loyal to brands, stores, and companies. Buyers can divided into groups according to their degree of loyalty. 5) Geo demographic segmentationAlso called multi variable segmentation combination of geographical and demographical segmentation. Segmenting business Markets: 1. Demographic variables 2. Operating variables 3. Purchasing approaches 4. Situational factors 5. Personal characteristics

Segmenting international markets: International market can be segment by geographic location, grouping countries regions such as middle east etc. It can be segmented on the bases of :1. Economic factorsCountries mighty be grouped by population income levels or by their overall level of economic development. 2. Political and legal factorsSuch as the type and stability of government, receptivity to foreign firms, monastery regulations, and the amount of bureaucracy. 3. Cultural factorsCultural factors cha be used, grouping markets according to common languages, religions, values and attitudes, customs and behavioral patterns. Inter market segmentationForming segments of consumers who have similar needs and buying behavior even though they are located in different countries. Requirements for effective segmentation: To be useful, market segments must have the following characteristics:1. MeasurabilityThe size, purchasing power, and profiles of the segments can be measured. 2. AccessibilityThe market segments can be effectively reaches and served. 3. SubstantialityThe market segments are large or profitable enough to serve. 4. Action abilityEffective programs can be designed for attracting and serving the segments. 5. Differentia tableMust be distinguished from other market. Selecting market segments: After evaluating different segments, the company must decide which and how many segments to serve is called target market selection. Target marketA set of buyers sharing common needs or characteristics that the company decides to serve. Following strategies are used for target market selection:1. Undifferentiated marketingA market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Focuses on common needs not on different. 2. Differential marketingA market coverage strategy in which a firm decides to target several market segments and designs separate offers for each. 3. Concentrated marketingA market coverage strategy in which a firm goes after a large share of one or a few submarkets. 4. Micro marketing: i. Local ii. Individual Positioning: 1. Product positioningThe way that the product is defined by consumers on important attributesthe place that the product occupies in consumers minds relative to competing products. 2. Competitive advantageAn advantage over competitors gained by offering consumers greater vale, either through lower prices or by providing more benefits that justify higher prices. Choosing and implementing a positioning strategy: Each firm must differentiate its offer by building a unique bundle of competitive advantages that appeals to a substantial group within the segment.

1. Identifying possible competitive advantagesTo give the consumers greatest value, providing superior value to selected target markets, either by offering lower prices than competitors do or by providing more benefits to justify higher prices. Positioning begins with actually differentiating the companys marketing offer so that it will give consumers more value than competitors offers do. A company or market offer can be differentiated along the lines of product, services, personnel, or image, channel. i. Product differentiationA company can differentiate its physical product by standardizing the product. Similarly companies can differentiate their products on such attributes as consistency, durability, reliability or repair ability. ii. Services differentiationSome companies gain competitive advantage through speedy, convenient, or careful delivery. Installing can also differentiate one company from another. Companies can further distinguish themselves through their repair services. Some companies differentiate their offers by providing customer training service. Other companies offer free or paid consulting servicesdata or info and advising services that buyers need. iii. Personnel differentiationCompanies can gain a strong competitive advantage through hiring and training better people than their competitors do. Personnel differentiation requires that a company select its customer contact people carefully and train them well. iv. Image differentiationEven when competing offers look the same, buyers may perceive a difference based on company or brand images. Thus companies work to establish images that differentiate them from competitors. A company or brand image should convey the products distinctive benefits and positioning. Developing a strong and distinctive image calls for creativity and hard work. v. Channel differentiation: a) Product b) Performance c) Experts d) Sale 2. Selecting the right competitive advantagesTo decide that how many differences to promote and which ones. i. How many differences to promoteUnique selling proposition(USP) for each brand and stick to it. In general a company needs to avoid three major positioning errors. a) Under positioningFailing to ever really position the company at all. b) Over positioningGiving buyers too narrow picture of the company. c) Confused positioningLeaving buyers with a confused image of a company. iii. Which differences to promoteFollowing differences are to be promote. a) ImportantHigh valued. b) DistinctiveThat competitor do not offer. c) SuperiorSuperior to other ways and beneficial for customers. d) CommunicativeVisible to buyers. e) PreemptiveCompetitors cannot easily copy. f) AffordableBuyers can afford to pay for.

g) ProfitableThe company can introduce the difference profitably. 3. Selecting an overall positioning strategy--?????????????????????????? Effective marketing strategies: 1. Depend on company resources. If there are limited resources then we will use concentrated strategies. If resources are much enough then we will use mass strategies. 2. Best strategy also depends upon degree of product variability and undifferentiated strategy is used for uniform product. i. For uniform product undifferentiated strategy is used. ii. For varying product differentiated strategy is used. 3. Product life cycle: i. When new product is launched in market for first time then undifferentiated or concentrated strategy is used. ii. For mature stag4e of a product differentiated strategy is used 4. If buyer demand the same product, same prices and react in same way then use undifferentiated strategy. 5. Competitor marketing strategiesuse opposite strategy against competitors strategy.

Chapter#5 Product and services strategies:

ProductAnything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. ServicesServices are products that consist of activities, benefits, or satisfactions that are offered for sale, such as banking, hotel, tax preparation, and home repair services. Services are essentially intangible and do not result in the ownership of anything. Or any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Levels of product and services: The product planners need to think about products and services on following three levels: 1. Core productIt addresses the question: What is the buyer really buying? The core product stands at the center of the total product. It consists of the core problem solving benefits that consumers seek when they buy a product or service. 2. Actual productThe product planner must next build an actual product around the core product. Actual products may have as many as five characteristics: a. A quality level b. Features c. Design d. A brand name e. Packaging 3. Augmented productThe product planner must build an augmented product around the core and actual products by offering additional consumer services and benefits. Product classification: In developing marketing strategies for their products and services, marketers have divided products and services into two broad classe: 1. Consumer productsProducts bought by final consumers for personal consumption. They include: a. Convenience productsConsumer products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying efforts.

b. Shopping productsConsumer products that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style. c. Specialty productsConsumer products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. d. Unsought productsConsumer products that the consumer either does not know about or knows about but does not normally think of buying. 2. Industrial productsProducts bought by individual and organizations for further processing or for use in conducting a business. Following are three industrial marketing group: a. Materials and partsInclude raw materials and manufactured materials and parts. Raw materials consist of: i. Farm products i.e. wheat, cotton, fruits, etc. ii. Natural products i.e. fish, iron, etc. Manufactured materials and parts consist of component materials i.e. cement, wires, etc. and component parts i.e. small motors, tires etc. b. Capital itemsThese are industrial products that aid in the buyers production or operations, including: i. Installationconsists of major purchases i.e. factories, offices, etc. ii. Accessory equipmentconsists portable equipments and tools i.e. hand tools, lift trucks, etc. c. Supplies and servicesSupplies include: i. Operating supplies i.e. paper, pencils, etc. ii. Repair and maintenance i.e. paint, nails, etc. Repair services are usually supplied under contract i.e. advertising, computer repair, etc. Individual product decisions: Individual product decision is important in development and marketing of individual products and services. It include: Produc Brandi Packagi Labelin Product t ng ng g support attribut services 1. Product attributesTo define the benefits of a product that it will offer. They may be: a. Product qualityThe ability of a product to perform its functions; it includes the products overall durability, reliability, precision, ease of operation and repair, and other valued attributes. Product quality has two dimensions: i. LevelIn developing a product, the marketer must first choose a quality level that will support the products position in the target market. ii. ConsistencyFreedom from defects and consistency in delivering a targeted level of performance. Concern with conformance quality. Total quality Management: An effort to constantly improve product and process quality in every phase of their operations. The ultimate goal of total quality is to improve customer value. For example when Motorola first began its total quality

program in the early 1980s its goal was to drastically reduce manufacturing defects. In recent years, however, Motorolas quality concept is total customer satisfaction. b. Product featuresFeatures are competitive tool for differentiating the companys product from competitors products. The company can create higher level models by adding more features. c. Product design/StyleProduct design is a way to add customer value. Design is a larger concept than style. Style simply describes the appearance of a product. Styles can be eye catching or yawn inspiring. A sensational style may grab attention,, but it does not necessarily make the product perform better. In some cases it might even result in worse performance. For example, a chair may look great yet be very uncomfortable. Unlike style, design goes to the very heart of a product. 2. BrandingA name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. a. Brand EquityThe value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand association, and other assets such as pates, trademarks, and channel relationships. b. Brand name selectionA good name can add greatly to a product success. Qualities: i. It should suggest something about the products benefits and qualities e.g. spic and span ii. It should be easy to pronounce, recognize, and remember. iii. The brand name must be distinctive. iv. The brand should translate into foreign languages easily v. It should be capable of registration and legal protection. c. Brand sponsorA manufacturer has four sponsorship options: i. Manufacturers brandA brand created and owned by the producer of a product or service. ii. Private brandA brand created and owned by reseller of a product or service. Manufacturers versus private brandManufacturers brands are less expensive and create number of retailers and wholesalers. On the other hand private brands can be hard to establish and costly to stock and promote but they give high profit. iii. Slotting feesPayments demanded by retailers from producers before they will accept new products and find slots for them on the shelves. iv. LicensingTo create their own brand name d. Co-BrandingThe practice of using the established brand names of two different companies on the same products. e. Brand developmentA company has four choices when it comes to brand development: i. Line extensionUsing a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, or package size. iii. Brand extensionUsing a successful brand name to launch a new or modified product in a new category. iv. Multi brandingA strategy under which a seller develops two or more brands in the same product category.

New brandsA company may create a new brand name when it enters a new product category for which none of the companys current brand names are appropriate. 2. PackagingThe activity of designing and producing the container or wrapper for a product. Innovative packaging can give a company and advantage over competitors. Developing a good package for a new product requires making many decisions such as size, shape, materials, color, text,, brand mark etc. 3. LabelingThe label might describe several things about the productwho made it, where it was made, when it was made, and how to use it. Finally the label might promote the product through attractive graphics. It also concern with unit pricing, open dating, and life of the product. Product Support ServicesTo determine customer service needs and the value customers assign to different services involves more than simply monitoring complaints that come in over toll free telephone lines or on comment cards. Product Line DecisionsA group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. In developing product line strategies, marketers face following decisions: 1. Product line lengthThe number of items in the product line. The line may too short or too long depending upon the increase or decrease in profit. 2. Product line stretchingIt occurs when a company lengthens its product line beyond its current range. The company can stretch its line downward, upward, or both ways. 3. Product line filingAdding more items within the present range of the line. There are several reasons for product line filling e.g. reaching for extra profits etc. Product Mix decisionsAn org with several product lines has a product mix. Product MixThe set of all product lines and items that a particular seller offers for sale to buyers. A companys product mix has four important dimensions: 1. WidthThe width refers to the number of different product lines the company carries. 2. Length--The length refers to the total number of items that the company carries. 3. Depth--The depth of product refers to the number of versions offered of each product in the line. 4. Consistency--The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or in some other way. The Service Profit ChainThe chain that links service firm profits with employee and customer satisfaction. 1. Internal marketingMarketing by a service firm to train and effectively motivate its customer contact employees and all the supporting service people to work as a team to provide customer satisfaction. 2. Interactive marketingMarketing by a service firm that perceived service quality depends heavily on the quality of buyer seller interaction.

v.

Compan

Marketing Strategy External marketing

Business analysis

Product developme nt Test Marketing

Internal marketing

Concept developin g Idea Screening

Commercializat ion

Idea generatio n

Implementati on

Employ

Interactive

Custom

Product Development

Marketing Organizations, persons, places and ideas: 1. Organization marketingActivities undertakes to create, maintain, or change attitudes and behavior of target audiences toward an org. 2. Person marketingActivities undertaking to create, maintain, or change attitudes and behavior of target audiences toward particular person. 3. Place marketing-- Activities undertaking to create, maintain, or change attitudes and behavior of target audiences toward particular place. 4. Idea marketingAlso called social marketingthe marketing of social ideas, such as public health campaigns, environmental campaigns, another campaigns such as family planning, human rights, and racial equality. 5. Social marketingThe design, implementation and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.

Chapter#6 New Product Development strategies:

New product developmentThe development of original products, product improvements, products modifications, and new brands through the firms own efforts. It have following Stages: 1. Idea generationThe systematic search for new product ideas. Major sources of new product idea include:

2. 3.

4. 5. 6. 7.

8.

a. Internal sourcesWithin the company. The company can find new ideas through formal research and development. b. External sourcesGood new product ideas also come from watching and listening to customers. c. CompetitorsGood source of new product ideas. Companies watch competitors ads and other communications to get clues about their new products. d. DistributorsResellers are close to the market and can pass along information about consumer problems that need solution and new product possibilities. e. Suppliers--Suppliers can tell the company about new concept, t4echniques, and material s that can be used to develop new products. Idea ScreeningScreening new product ideas in order to spot good ideas and drop poor ones as son as possible. Concept development and testingA detailed version of the new product ideas stated in meaningful in consumer terms. It includes: a. Concept developmentIt might create the following product concepts for the electric car: i. Concept1--An inexpensive subcompacts design ii. Concept2--A medium cost, medium size iii. Concept3--A medium cost sporty compact appealing to young people. iv. Concept4--An inexpensive subcompact appealing to conscientious people who wasnt basic transportation. b. Concept testingTesting new product concepts with a group of target consumers to determine if the concepts have strong consumer appeal. Marketing Strategy DevelopmentDesigning an initial marketing strategy for a new product based on the product concept. Business analysisA review of the sales, costs, and profit projections for anew product to determine whether these factors satisfy the companys objectives. Product DevelopmentThe product concept is developed into a physical product in order to assure that the product idea can be turned into a workable product. Test marketingThe stage of new product development where the product and marketing program are tested in more realistic market settings. It includes: a. Standard test marketers b. Controlled test marketers c. Simulated test marketers CommercializationIntroducing a new product into the market. The company must decide that where to launch the new product. Speeding up new product development: Following approaches are used. a. Sequential Product developmentA new product development approach in which one company department works individually to complete its stage of the process before passing the new product along to the next department and stage. b. Simultaneous product developmentAn approach t developing new products in which various company departments word closely together overlapping the steps in the product developments process to save time and increase effectiveness.

Product Life Cycle Strategies: Sale s

Profi ts

Product Introducti Growt Maturit Declin developme on h y e Product life cycleThe course of a products sales and profits over its lifetime. It involves five distinct stages: 1. Product developmentIt begins when the company finds and develops a new products idea. During product development sales are zero and the companys investment costs mount. 2. IntroductionA period of slow sales growth as the product enters in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. 3. GrowthA period of rapid market acceptance and increasing profits. 4. MaturityA period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend product against competition. 5. Declinethe period when sales fall off and profits drop. The PLC concept can describe a profit class , a product form, or a brand. It also applied to: 1. StyleA basic and distinctive mode of expression.

2. FashionA currently accepted or popular style in a given field. 3. FadsFashions that enter the market quickly, are adopted with great zeal, peak early, and decline very fast. A brief detail of rest of stages of PLC is given below: 1. Introduction StageIn this stage the new product is first distributed and made available for purchase. Introduction takes time, and sales growth is slow. Profits are negative or low due to high expenses. 2. Growth stageThe PLC stage at which a products sales start climbing quickly. Early adopters will continue to buy, and later buyers will start following their lead. Profit increase and unit manufacturing costs fall. 3. Maturity StageThe stage where sales growth slows or levels off. Posses strong challenges. a. Modifying the marketThe company tries to increase the consumption of the current product. It look for new users and market segments. b. Modifying the productChanging characteristics such as quality, features or style to attract new users and to inspire more usage. c. Modifying the marketing mixImproving sales by changing one or more marketing mix elements. They can cut prices to attract new users. 4. Decline StageThe PLC stage at which a products sales decline. Decline may be due to technological advances, or increased competition etc.

Chapter#7 Pricing strategies:

New product pricing strategies: 1. Market skimming pricingSetting a high price for a new product to skim maximum revenues layer by layer from the segments that are willing to pay the high price, the company make fewer but more profitable, sales. 2. Market penetration pricingSetting a low price for a new product in order to attract a large number of buyers and a large market share. Product mix pricing strategies: 1. Product line pricingSetting the price steps between various products in a line, based on cost differences between products, customer evaluation of different features, and competitors prices. Companies usually develop product lines rather than single products e.g. a cloth store may have a suit with three price levels. 2. Optional product pricingPricing optional or accessory products that are being sold along with a main product. E.g. a car buyer may order for CD player with it. 3. Captive product pricingSetting a price for products that must be used along with a main product, such as camera film, and computer software. 4. By product pricingSetting a price for by-products in order to make the main products price more competitive. 5. Product Bundle pricingCombining several products and offering the bundle at a reduced price. E.g. Visual studio 20x. Price Adjustment strategies: Here are six price adjustment strategies: 1. Discount and allowance pricing: a. DiscountA straight reduction in price on purchases during a stated period of time. It may be:

2.

3.

4. 5.

6.

Cash discountA price reduction to buyers who pay their bills promptly. E.g. to pay bill within 10 days etc. Quantity discount-- A price reduction to buyers who purchase in large volume. E.g. R.s 30 for 5 pieces and 20 for 2 pieces etc. iii. Functional DiscountA discount offered by the seller to trade channel members who perform certain functions, such as selling, storing, and r4ecord keeping. Also called trade discount. iv. Seasonal discountA price reduction to buyers who purchase merchandise or services out of season. E.g. warm clothes in winter. b. AllowancesPromotional money paid by manufacturers to retailers who agree to feature the manufacturers products in some way. Promotional AllowancesThese are the Payments or price reductions to reward dealers for participating in advertising and sales support programs. Segmented PricingSelling products or services at two or more prices, even though the difference in prices is not based on differences in costs. To allow for differences in customers, products, and locations. Segmented pricing takes several forms. a. Under customer segment pricing, different customers pay different prices for the same product or service. E.g. museums will charge a lower admission for students. b. Using location pricing, a company changes different prices for different locations even though the cost of offering each location is the same. c. Using time pricing, a firm varies its price by the season, the month the day and even the hour. Psychological pricingA pricing approach that that considers the psychology of prices and not simply the economics; the price is used to say something about the product. Reference pricesPrices that buyers carry in their minds and refer to when looking at a given product. Promotional pricingTemporarily pricing products below list price, and sometimes even below cost, to increase short run sales. Geographic pricingDeciding how to price products for customers located in different parts of the country or world. a. FOB origin pricing Free on board a carrier; the pricing based upon origin and location. b. Uniform delivered pricingthe exact opposite of FOB (free onboard carrier), the company charges the4 same price plus freight to all customers, regardless of their location. c. Zone pricing--Falls between FOB origin price and uniform delivered pricing. The company sets up two or more zones. All customers within a given zone pay a single total price the more distant the higher the price. d. Using basing-point pricingThe seller selects a given city as a basing point and charges all customers the freight cost from that city to the customer location, regardless of the city from which the goods are actually shipped. e. Freight-absorption pricingthe seller who is anxious to do business with a certain customer or geographical area. International PricingCompanies that market their products internationally must decide what a prices to charge in the different countries in which they operate.

i. ii.

Chapter#8 Distribution Channels:

Value delivery Network: A network made up of company, supplier, distributers who pattern with each other to make or work for.

Nature of distribution channels: Distribution channel/market channelA set of interdependent orgs involved in the process of making a product or service available for use or consumption by the consumer or business user. Functions of distribution channel: Members of the marketing channel perform many key functions. 1. InformationGathering and distributing marketing research sand intelligence information about actors and forces in the marketing environment that are needed for planning and aiding exchange. 2. PromotionDeveloping and spreading persuasive communications about an offer. 3. ContactFinding and communicating with prospective buyers 4. MatchingShaping and fitting the offer t the buyers needs, inclusion such activities as manufacturing, grading etc. 5. NegotiationReaching an agreement o price and other terms of the offer so that ownership or possession can be transferred. 6. Physical distributionTransporting and storing goods 7. FinancingAcquiring and using funds to cover the costs of the channel work. 8. Risk takingAssuming the risks of carrying out the channel work. Number of channel levels: Channel levelA layer of middlemen that performs some work in bringing the product sand its ownership closer to the final buyer. Direct marketing channelA marketing channel that has no intermediary levels; Indirect marketing channelsChannels containing one or more intermediary levels.

Chapter#9Retailing and wholesaling:

RetailingAll activities involved in selling goods or services directly to final consumers for their personal, non business use. RetailersBusiness whose sales come primarily from retailing. Store Retailing--They are classified in following characteristics: 1. Amount of serviceRetailers may offer one of three levels of service: a. Self service retailersCustomers were willing to perform their own locate-compare-select process to save money. b. Limited service retailersProvide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices. c. Full service retailersSuch as specialty stores and first class department stores, salespeople assist customers in every phase of the shopping process. These stores carry usually more specialty goods for which customer like them. 2. Product LineThey include the following: a. Specialty storeA retail store that carries a narrow product line with a deep assortment within that line. b. Department storeA retail org that carries a wide variety of product linestypically clothing, home furnishing and house hold goods. c. SupermarketsLarge, low cost, low-margin, high-volume, itself-service stores that carry a wide variety of food, laundry, and household products. d. Convenience storeA small store located near a residential area that is open long hours seven day a week and carries a limited line of high turnover convenience goods.

e. SuperstoreA store almost twice the size of a regular super-market that carries a large assortment of routinely purchased food and nonfood items and offers many services. f. HypermarketsHuge stores that combine supermarket, discount, and warehouse retailing; in addition to food they carry furniture, appliances, clothing, and many other products. g. Category killer 3. Relative pricesThey are classified as follows: a. Discount StoresA retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume. b. Off-price retailersRetailers that buy at less than regular wholesale prices and sell at ales than retail. Following are three main types of off-price retailers: i. Independent off-price retailersOff-price retailers that are either owned and run by entrepreneurs or are divisions of larger retail corporations. ii. Factory outletsOff-price retailing operations that are owned and operated by manufacturers and that normally carry the manufacturers surplus, discontinued, or irregular goods. iii. Warehouse clubOff-price retailer that sells a limited selection of brand name grocery items, appliances, clothing and a hodgepodge of other goods at deep discounts to members who pay annual membership fees. c. Catalog showroomA retail operation that sells a wide selection of high markup, fast moving brand name goods at discount prices. 4. Retail organizationsMajor type of retail orgs are: a. Chain storesTwo or more outlets that are commonly owned and controlled have central buying and merchandising, and sell similar lines of merchandise. b. FranchiseA contractual association between a manufacturer wholesaler or service org and independent businesspeople who buy the righty to own and operate one or more units in the franchise system. WholesalingAll activities involved in selling goods and services to those buying for resale or business use. WholesalerA firm engaged primarily in wholesaling activity. These are often better at performing one or more of the following channel functions: 1. Selling and promotingTo reach many customers at low cost. 2. Buying and assortment buildingSelecting items according to customer needs. 3. Bulk breaking Breaking large lots into small quantities. 4. WarehousingBy holding inventories to reduce the cost and risk of customer. 5. TransportationTo provide quicker delivery to buyers. 6. FinancingCustomer finance by ordering early and paying bills on time. 7. Risk bearingTo bear the cost of theft, damage, etc. 8. Market informationGiving info to customers about competitors and new products. 9. Mgt services and adviceTo help retailers and train them.

Types of wholesalers: Wholesalers fall into three major groups: 1. Merchant wholesalersIndependently owned business that take title to the merchandise that they handle. The may be: a. Full service wholesalersProvide a full set of services. b. Limited services wholesalersOffer fewer services to their suppliers and customers. 2. BrokerA wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation. 3. AgentA wholesaler who represents buyers or sellers on a relatively permanent basis, performance only a few functions, and does not take title to goods.

Chapter#10 Integrated marketing communication strategy:

Marketing Communication mixAlso known as promotional mix. It consists of specific land of advertizing. Sales promotion, public relation, personal selling and direct marketing tools that the company use to achieve advertise and marketing objectives. 5 Major promotional tools: 1. AdvertizingAny paid form of non personal and promotion of idea by an identify sponsor. 2. Sales promotionShort term incentives to encourage the purchase of products or service. 3. Public relationsBuilding good relation with companys various publics by obtaining favorable publicity build up a good cooperate image and handling unfavorable events 4. Personal SellingPersonal presentation by the firm sale force for the purpose of going sales and building the out relationships. 5. Direct marketingIt will carefully target individuals. Bothe take a immediate respons3e and make good customer relationships.

Chapter#10 Advertisement and public relations:

3-Basic objectives: 1. Informative advertisingTelling the market about a new product and explaining how the product works. It concerns with: a. Describing available services b. Correcting false impressions c. Reducing consumers fears d. Building a company image. 2. Persuasive advertisingBuilding brand preference and changing customers perception of product attributes. It concerns with: a. Persuading customer to purchase now b. Persuading customer to receive a sales call 3. Reminder advertisingReminding consumer that the product may be needed in the near future and reminding consumer where to buy it. it concerns with:

a. Keeping in consumers mind during off-seasons. b. Maintaining its top of mind awareness. Forms of direct marketing: 1. Telephonic marketing 2. Catalog marketing 3. Email marketing 4. Direct response marketing 5. Online marketing 6. Integrated direct marketing (Smile is Just After Your Effort, Dont Miss it)