Market

The term Market is originated from Latin word Marcatus ware traffic or a place where business is conducted.

According to Pyle ,Market includes both place and region in which buyers and sellers are in free competition with one another.

Marketing
It is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others. Acc to Philip Kotler ,Marketing is a human activity directed at satisfying needs and wants through an exchange process.

Classification of Markets
On the Basis of Area :Local Regional National International

Classification of Markets
On the Basis of Time: Short Period Long Period On the Basis of transactions Spot Transactions Future Transactions

Classification of Markets
On the Basis of Nature of Goods Commodity Capital Securities On the Basis of Volume of Business Wholesaler Retailer

Difference Between Marketing and Selling

Marketing focuses on customer needs Begins before production Continues after sale Profits through customer satisfaction Long term perspective Customer first then product Focuses on sellers needs Begins after production Comes to end after sale Profits through sales volume Short term perspective Product first then customer

Marketing Management

According to American Marketing Association : Marketing Management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Functions of Marketing Management

Assessing the Market opportunities. Planning the market activities. Evaluating and adjusting the market efforts Marketing research Advertising Sales Promotion Sales Planning

MARKETING MANAGEMENT TASKS

S.NO 1. STATE OF MARKETING DEMAND TASKS Negative Demand Reverse the Negative Demand FORMAL NAME Conversional Marketing

2. 3.
4.

Latent Demand Faltering Demand

Full Demand

Develop demand Revitalize Demand

Maintain Demand

Developmental Marketing Remarketing

Maintenance Marketing

Conversional Marketing

Negative demand exists for a product or service when substantial or majority consumers show a dislike & do not approve it.
Challenge of negative demand to marketing management is to develop a

Developmental Marketing

Here a substantial number of customers in the market strongly share the need for a product/service that does not exist at all . Example , Growing no. of middle class demand for passenger cars at affordable prices.

Remarketing

A state in which the demand for a product or service is less than it used to be & further decline is expected in the absence of some remedial efforts. In these days of Hi-tech products , many traditional products loose demand. Indian consumers exhibit a strong interest & desire of fast foods & processed foods

Maintenance Marketing

Full demand is a state in which the current level of demand for a product or service is equal to the desired level. The task of marketing management is to monitor the demand level continuously & maintain it. Task is to carrying out marketing

Core Marketing Concepts

Needs, wants, and demands

Products and Services

Core Marketing Concepts

Markets Value, satisfaction, and quality Exchange, transactions, and relationships

What Motivates a Consumer to Take Action?

Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am thirsty Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola.

What Will Satisfy Consumers Needs and Wants?

Products anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want.

Services activities or benefits offered for sale that are essentially intangible and dont result in the ownership of anything.

How Do Consumers Choose Choose Among Products and Services?

Customer Value - benefit that the customer gains from owning and using a product compared to the cost of obtaining the product. Customer Satisfaction - depends on the products perceived performance in delivering value

How do Consumers Obtain Products and Services?

Exchanges - act of obtaining a desired object from someone by offering something in return.
Transactions - trade of values between parties. Usually involves money and a response.

Who Purchases Products and Services?

Market - buyers who share a particular need or want that can be satisfied by a companys products or services.

Actual Buyers

Potential Buyers

Different Types of Markets

On the basis of Purchasing & Consumption

a) Consumer Market b) Industrial Market

On the basis of Products in Trade

a) Basic Goods Market b) Intermediary Goods Market

Consumer Goods Market On the basis of Magnitude of Selling

Marketing Management Philosophies

Production Concept
Product Concept Selling Concept Marketing Concept
Societal Marketing Concept
Consumers favor products that are

available and highly affordable Improve production and distribution Consumers favor products that offer the most quality, performance, and innovative features Consumers will buy products only if the company promotes/ sells these product Focuses on needs/ wants of target markets & delivering satisfaction better than competitors Focuses on needs/ wants of target markets & delivering superior value Societys well-being

The Production Concept

One of the oldest concept in business. Consumers will favor those products & services that are readily available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is the guiding marketing philosophy.

The Product Concept

It assumes that consumers will favor products that offer the most in quality, performance and innovative features. Thus an organization should devote its full energy to offer quality products & services.

The Selling Concept

This concept assumes that consumers will not buy a companys products unless it undertakes selling & promotion efforts. This concept is typically practiced in case of non-essential goods as buyers do not normally think of buying these products & tend to postpone them. The company has to be good at tracking down prospective buyers through advertising

The Marketing Concept

It emphasizes that a company can achieve its goals by determining the needs and wants of target buyers (markets) and delivering the desired satisfactions more effectively and efficiently than competitors. The marketing concept starts with well defined -: a) Target market b) Consumer needs c) Aspirations

The Societal Marketing Concept

1. This emphasises that the key task of the company is not only to determine the needs & wants of the target market & delivering the desired satisfaction but also to maintains or Concept the consumers and enhance Societal Marketing S.N Marketing o the societys well being. Concept 1. Consumers express Consumers 2. Societal Marketing Concept differs from needs & wants unexpressed interest marketing concept in respect of the 2. Consumers interest Societies well being following -: first & then & interest- strive to

Societal Marketing Concept

Society (Human Welfare)

Societal Marketing Concept

Consumers (Wants)

Company (Profits)

Marketing & Sales Concepts Contrasted

Starting Point
Factory

Focus
Existing Products

Means
Selling and Promotion

Ends
Profits through Volume

The Selling Concept

Market

Customer Needs

Integrated Marketing

Profits through Satisfaction

The Marketing Concept

The Marketing Process

Contd

The marketing process consists of the following activities-: a) Analysing Market Opportunities b) Selecting Target Markets c) Developing marketing Mix d) Managing the Marketing Effort

Contd..

At the centre there are customers & our objective will be to build a strong relationship. First step is market segmentation, targeting & positioning, to decide which customers the company should serve & how ? Process identifies-: Total target market Divide them into smaller segments Select most promising segments

Contd..

Next step is to design a marketing mix (product. price, place & promotion) For selecting best marketing mix company engage itself into-: Marketing analysis Planning Implementation Control Activities

INTEGRATED MARKETING
When all the companys departments work together to serve the customers interests the result is INTEGRATED MARKETING

Integrated marketing takes place at 2 levels

Various Marketing Organisational Functions

Various

External Vs Internal Marketing

EXTERNAL

INTERNAL

Marketing Task of Directed at people successfully outside the hiring, training, & company motivating able employees who want to serve the

PROFITABILITY

In case of private firms, the major goal is profit

In case of non-profit & public organisations, the major goal is surviving & attracting enough funds to perform their work.

Why organisations prefer marketing concept ?

Sales Decline Slow Growth Changing Buying Patterns Increasing Competition Increasing Marketing Expenditures

Customer Value

It is the difference between Total Customer Value & Total Customer Cost TCV-: It is the bundle of benefits customers expect from product & services
TCC-: It is the bundle of costs customers expect to incur in evaluating, obtaining &

CUSTOMER VALUE
PRUDUCT VALUE SERVICES VALUE PERSONNEL VALUE IMAGE VALUE
TOTAL

CUSTOMER
VALUE CUSTOMER DELIVERED VALUE

MONETARY COST TIME COST ENERGY COST PSYCHIC COST

TOTAL CUSTOMER COST

CUSTOMER SATISFACTION

Customer satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (outcome) in relation to his/her expectations.

TOOLS FOR TRACKING & MEASURING CUSTOMER SATISFACTION

COMPLAINT & SUGGESTION SYSTEMS

Customer centered organisations makes it easy for its customers to deliver suggestions & complaints. Example-: Hotels & Restaurants provide forms for guests to report likes & dislikes

TOOLS FOR TRACKING & MEASURING CUSTOMER SATISFACTION

GHOST SHOPPING

Companies can hire persons to pose as potential buyers to report their findings on strong & weak points they experienced in buying the companys products.
LAST CUSTOMER ANALYSIS

MARKET ORIENTED STRATEGIC PLANNING

It is the managerial process for developing & maintaining a viable fit between the organisations objective, skills & resources & its changing market opportunities.
The aim of strategic planning is to

Marketing Mix

It is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. According to Philip Kotler, The marketing mix is the set of controllable , tactical , marketing tools that the firm blends to produce the response it wants in target market.

Contd..

Marketing Mix Consists of -:

PRODUCT

PRICE
PLACE PROMOTION

Marketing-Mix Variables

PRODUCT
Most basic Marketing Tool It is the firms tangible offer to the market which includes the product quality, features, design, branding, & packaging.

Leasing, delivery, repair, & training are also the part of product offering.

PRICE

The amount of money that customers pay for the product .

Price should commensurate with the offers perceived value. If it is not, buyers will turn to competitors products.

PLACE
Another key Marketing-Mix tool Includes the various activities the company undertakes to make the product accessible & available to target customers. Company must identify, recruit, & link various marketing facilitators to supply its products & services efficiently to the target market.

PROMOTION

It includes all the activities the company undertakes to communicate & promote its product to the target market

Company has to hire, train, & motivate salespeople.

MARKETING ENVIRONMENT

DEFINITION

According to Philip Kotler, A companys marketing environment consists of the actors and forces outside marketing that affect managements ability to build and maintain successful relationships with target customers.

MICRO ENVIRONMENT

The microenvironment consists of the actors close to the company that affect its ability to serve its customers. This Includes -: (1)The company- goals, mission, vision, administration

(2) The suppliers raw materials, spares, semi finished goods (3) The marketing intermediaries-

Microenvironment

MACRO ENVIRONMENT
The macro environment consists of the following larger societal forces that affect the microenvironment. This Includes -: (1) Demographic Density, location, age, gender, occupation etc. (2) Economic size of market, disposable income, willingness to spend etc. (3) Natural ecological system, prevention of environment pollution (4) Technological communication systems, online shopping etc.

(5) Political system of govt., centre govt., legislative agencies etc

(6) Legal laws of land, public & consumer protection acts (7) Cultural.- culture, values, beliefs, customs, traditions etc

Macro Environment

Opportunities
Examples of Opportunities Posed by Marketing Environment in India 1. The New Economic Policies of the Government of India in general. 2. The New Industrial Policy. 3. Liberalisation of industrial licensing. 4. Foreign Exchange Regulation Act (FERA) and Monopolies and Restrictive Trade Practices Act (MRTP) liberalization. 5. Curtailment of and disinvestments in public sector. 6. The New Trade Policy lowering of import tariffs, abolition of import licenses, convertibility of rupee, globalisation, etc. 7. Fiscal and monetary reforms, banking sector reforms, capital market reforms. 8. Removal or phasing out of subsidies. 9. Encouragement to foreign direct investment (FDI). 10.Dismantling of price controls and introduction of market-driven price environment.

Threats
Examples of Threats Posed By Marketing Environment In India 1.Entry of Multi-National Companies (MNCs) into the Indian market on a large scale increases the competition for products and services. 2.Survival of the fittest rule forces many weaker and small-scale companies to close down due to non-viability. 3.Big players start buying smaller players through mergers and acquisitions. 4.Removal of subsidy affects profitability and viability of many industries. (Fertiliser

MARKETING & GLOBALISATION

Globalisation

GLOBALISATION

Integration of various Economies

Assimilation of various cultures

Integration of Markets, products & consumer values

How Globalisation Starts

The developed capitalistic nations pronounced the globalisation of world economy & world markets. Many foreign economies deregulated & encouraged market forces to operate freely They claimed to create a new world order through the free market system free movement of products, technology, services

REGULATION

The rich nations (G-8) proposed the World Trade Organisation (WTO) as a mechanism to regulate world trade. The WTO , combined with the powers of other world agencies like World Bank (WB) & the International Monetary Fund (IMF) , began forcing the developing countries to open their

Impact of Globalisation Indian on India

India opted for economic reforms to match the global changes. The reform process was initiated in the 1990s & then the congress govt. declared a new policy on economic reforms which popularly known as New Economic Policy, 1991 (NEP 1991).

Features of NEP1991 -:

Contd..
NEP 1991

Liberalisation

Privatisation

Globalisation

Market Economy

Full freedom for entrepreneurs to enter any Market or Industry

Private Sector invited to play vital role in the economy

Integration of domestic economy with global economy

Allowing the market forces to operate freely. Less intervention of the State.

PLANNING
Planning is a managerial activity which is a basic requirement for all organisations. Based on overall plan, each division of the organisation will have to determine its own plan. Key elements of Planning Activity -: a) Timing

LEVELS OF PLANNING

In an organisation planning is done at different levels -:

a) Strategic Planning b) Tactical Planning c) Operational Planning

Strategic Planning
Strategic Planning is the overall corporate planning. This plan typically covers the companys long-range goals & dictates the direction of all departments & divisions within the company.
According to Philip Kotler -: Strategic Planning is the process of

Tactical Planning

Tactical planning involves specifying details which pertain to the organisations activities for a specific period of time, usually one year Features -:
A tactic is a means by which a strategy is implemented

OPERATIONAL PLANNING

This is done by supervisory managers & it focuses its attention on activities of narrower scope & short duration of all the marketing planning activities.

Example -:
BASIS STRATEGY TACTICS

Top management Lower level Level of Management formulation & Implementati on Continuous Time Element Continuous &

The Time

Irregular Longer

Periodic basis Shorter

Basic Elements of Strategic Planning

There are five basic elements of Strategic Planning -:

1.Mission 2.Strategic Business Units (SBUs) 3.Objectives 4.Strategic Planning Tools

MISSION

It is a statement in which, the organisation define a) Its business b) What makes it different from competitors c) What consumers it serves d) What needs it satisfies e) What type of products it offers f) Indicates boundaries for an organizations

Strategic Marketing Planning

Development Determining Situational the Business of mission analysis Composition statement
Market Competitive Profitability Decide the nature & scope of org. Determine various activities that make up the total operations of a company

Strategic Analysis of Business Units

Product mix grids BCG GE

Selecting Preparation business Business Objectives strategic & strategies plan

Macro Level to Micro Level Based on the goals of an org.

Strategic Business Units (SBUs)

To make planning more effective, a large, diverse organization may divide itself into smaller planning units called Strategic Business Units. OR The unit of the company that has separate mission and objectives and that can be planned independently

Strategic Business Units (SBUs)

Characteristics of SBUs It may be brand, or a product line or separate division of the company. It is having distinct mission and objectives. Be a separately identifiable business Have a distinct mission Have separate competitors Have a separate group of executives

Strategic Business Units (SBUs)

Strategic planning models used in assessing the existing businesses:

1. BCG matrix ( Boston Consultancy Group) 2. GE matrix ( General electric)

BCG matrix( Boston Consultancy Group) This model is used to identify companys SBUs position in the market. This model identifies the SBUs strength, weaknesses, opportunities and threats on the basis of market growth rate and relative market share. This model is also known as Growth share matrix The resulting 2 x 2 grid has 4 quadrants that represent distinct categories of major

Companys Relative Market Share

High
Low

Market growth rate

High

Stars

Question marks

Low

Cash cows

Dogs

Contd..
Axis components:
1. Market growth rate: The rate at which market is growing 2. Relative market share: Market share of the SBU divided by the market share of the largest competitor.

Model components:
Star : This category represents the high
market share and high industry growth. SBUs in this category require large investment

Contd

Question Mark: This category represents

high market growth and low market share. SBUs in this category has two options, either to invest heavily and bring them to star position or divest / liquidate from that position.

Dogs: SBUs in this category generates less

cash for the company as it operates in low growth and low market share. Usually companies will not invest in this

GE / McKinsey Matrix

GE/McKinsey Matrix is another great portfolio analysis tool developed by McKinsey & Company in the 70s. First-class consultants like McKinsey & Company and CEOs and COOs like to use them to better assess their business units. Consultants would plot the business units in the chart and decide whether they should

GE MATRIX

GE Matrix (General Electric)

Management can use the GE business matrix to classify SBUs on the basis of two factors -:
a. Market / Industry Attractiveness: might be determined by such factors as the rate of industry growth, the number of competitors in an industry, and the weakness of competitors within an industry.

GE Matrix

Invest strategy
In this position SBU a. Should receive ample resources b. Should be supported by well financed marketing efforts.

Protect strategy
SBUs in this position should a. Allocate the resources selectively.

GE Matrix

Harvest strategy
a. SBUs should not receive substantial new resources and if required, sell them.

Divest strategy
a. SBUs which falls into this category should not receive any resources and sell it

Marketing Planning
companys marketing efforts & resources towards present marketing objectives of -: Growth Survival Minimisation of risks Maintaining status quo Profit maximization Service to customers Diversification Image building & so on.
Marketing Planning is the direction of

MARKETING PLAN

The Marketing plan is the detailed

scheme of the marketing strategies & activities associated with each products marketing mix. or Marketing plan is the document of future course o action that spells

MARKETING PLANNING PROCESS

Marketing Planning Process 1) Assessing Opportunities & Threats 2) Establishing Marketing Objectives

3) Framing marketing strategies & Policie 4) Programming Operations

5) Developing Marketing Mix

6) Designing Resource Mobilization Plan 7) Monitoring the Operations

Step-1 Assessing Opportunities & Threats Assesses major threats & opportunities that the product might face. It helps management to anticipate important positive or negative developments that might have impact on the firm & its strategies.

Major steps are -:

Step-2 Establishing Marketing Objectives

An objective is a temporary estimate of desirable future result that cannot be predicted with accuracy but is achievable through efforts It states the marketing objectives that the company would like to attain during the plans term and discuss key issues that will affect their attainment

Step-3 Framing marketing strategies &

Policies

It outlines the broad marketing logic by which the business unit hopes to achieve its marketing objectives & the specifics of -: a) Target markets b) Positioning c) Market expenditures etc. It outlines specific strategies for each

Step-4 Programming Operations This step spells out how marketing strategies will be turned into specific action programs. These are based on the input of policies & strategies
Various operations can be -: 1) Product mix Plan 2) Sales force Plan 3) Adv. & sales promotion Plan

Step-5 Developing Marketing Mix

It involves the integration of various activities & the critical evaluation of sub-plans in relation to others in terms of costs incurred & benefits derived.
EXAMPLE -: Advertising Plan needs to think about

Step-6 Designing Resource Mobilization This is basically an implementation stage

Resource mobilization plan portrays -: a) Quantum of resources b)Types of resources c) Costs of resources to be used to implement the master plan

Step-7 Monitoring the Operations

Control is the counter side of planning. Control will be used to monitor progress & allow higher management to review implementation results & spot products that are not meeting their goals. Monitoring has four major aspects 1) Fixing the standards

Marketing Information System

DEFINITION
According to Prof. Cundiff, Still & Govani Marketing Information System (MIS) is an organised set of procedures, information handling, routines & reporting techniques designed to provide information required for making marketing decisions. According to Kotler A marketing information system is a continuing and interacting structure of

NEED OF MARKETING INFORMATION

Because of Dynamic & Highly competitive environment the organisations are under continuous threat & to survive they need to be updated with the recent information.
Need of MIS arises because of underlined reasons -:

Knowledge of consumer demand Growing complexity of marketing

Benefits Of MIS
It allows marketing managers to carry out their analysis, planning, implementation & control responsibilities more effectively. It ensures effective tapping of marketing opportunities & enables the company to develop effective safeguard against emerging marketing threats. It provides marketing intelligence to the firm & helps in early spotting of changing trends.

Types of Marketing Information

A Marketing information System supplies 3 types of information -:

a)Recurrent Information b)Monitoring Information c)Problem Related or Customized Information

Recurrent Information

It is the data that MIS supplies periodically at a weekly, monthly, quarterly or annually. This includes data such as -:
a)Sales data b)Market Share c)Sales call reports d)Inventory Levels e)Payables & Receivables

Monitoring Information

It is the data obtained from regular scanning of certain sources such as trade journals & other publications.
Relevant data from external data is captured to monitor changes & trends related to marketing situation

Problem Related or Customized Information

It is the information which is developed in response to some specific requirement related to a marketing problem or any other particular data requested by a manager. Primary Data or Secondary Data are collected through survey research in response to a specific need.

COMPONENETS OF MIS
Marketing Decisions and Communications

Marketing Managers ( Analysis Planning Implementation Marketing Information System Control)

Marketing Information System

Analytical Marketing System

Internal Reports System

Marketing Research System

Marketing Intelligence System

Marketing Environment ( Target Markets Marketing Channels Competitors Publics Macro Environment)

COMPONENETS

INTERNAL REPORT SYSTEM MARKETING INTELLIGENCE SYSTEM MARKETING RESEARCH SYSTEM ANALYTICAL MARKETING SYSTEM

INTERNAL REPORT SYSTEM

The internal accounting system involves using marketing data available from within the company as a means of indicating the cost effectiveness of the firm. Relationship of internal forces & their relationship to good information management influence the decision making. Internal data includes-: 1) Operation reports- prod schedules,

MARKETING INTELLIGENCE SYSTEM It involves the collection & analysis of publicly available information about competitors & developments in the marketing information. Goal of Marketing intelligence is to improve strategic decision making, assesses & track competitors actions & provide early warning of opportunities & threats.

MARKETING RESEARCH SYSTEM

It provides intense but short lived insight into particular areas of marketing.

Marketing research information includes -: a) Buyer behaviour b) Product or Brand preferences c) Product Usage d) Advertising Awareness

ANALYTICAL MARKETING SYSTEM

Application of scientific methodology & quantitative techniques to business or other operating problems. Operation researchers use mathematical models in their analysis These models are used for -: 1) Media Selection

MARKEITNG RESEARCH

According to AMA (American Marketing Association) Marketing Research is the function which links the consumer, customers, & public to the marketer through information information used to identify & define marketing opportunities & problems ; generate, refine, evaluate marketing actions ; monitor marketing performance ; &

FEATURES OF MARKETING RESEARCH

IT IS A SYSTEMATIC PROCESS - It has to be carried out in a stepwise & systematic manner & the whole process needs to be planned with a clear objective. IT SHOULD BE OBJECTIVE It is important that the methods employed & interpretations are objective. The research should not be carried out to establish an opinion nor should it be intentionally suited

OBJECTIVES OF MARKETING RESEARCH

Marketing Research may be conducted for different purposes -:

1) To understand why customers buy a product. 2) To forecast the probable volume of future sales or expected market share. 3) To assesses competitive strengths & strategies.

MARKETING RESEARCH PROCESS

Marketing Research Process
1) Define the Problem & Research

2) Develop the Research Plan & Designs

3) Collect the Information

4) Analyze the Information

7) Present the Findings

SAMPLING
Sampling is a selection of units from the entire group called the population or universe of interest. Choosing small no. of items picked up from a large no. of items, that sample will tend to possess almost the same characteristics as the larger or the whole group of items A sampling plan must indicate -: 1) Sampling Unit (Respondents)

Classification of Sampling Techniques

Sampling Techniques

Nonprobability Sampling Techniques

Probability Sampling Techniques

Convenience Sampling

Judgmental Sampling

Quota Sampling

Snowball Sampling

Simple Random Sampling

Systematic Sampling

Stratified Sampling

Cluster Sampling

Other Sampling Techniques

Convenience Sampling
Convenience sampling attempts to obtain a sample of convenient elements. Often, respondents are selected because they happen to be in the right place at the right time.
use of students, and members of social organizations mall intercept interviews without qualifying

Judgmental Sampling
Judgmental sampling is a form of convenience sampling in which the population elements are selected based on the judgment of the researcher.
test markets purchase engineers selected in industrial marketing research expert witnesses used in court

Quota Sampling
Quota sampling may be viewed as two-stage restricted judgmental sampling.
The first stage consists of developing control categories, or quotas, of population elements. In the second stage, sample elements are selected based on convenience or judgment.

Snowball Sampling
In snowball sampling, an initial group of respondents is selected, usually at random.
After being interviewed, these respondents are asked to identify others who belong to the target population of interest. Subsequent respondents are selected based on the referrals.

PROBABILIT Y SAMPLING TECHNIQUE S

Simple Random Sampling

Each element in the population has a known and equal probability of selection. Each possible sample of a given size (n) has a known and equal probability of being the sample actually selected. This implies that every element is selected independently of every other element.

Systematic Sampling
The sample is chosen by selecting a random starting point and then picking every ith element in succession from the sampling frame.

The sampling interval, i, is determined by dividing the population size N by the sample size n and rounding to the nearest integer.
If the ordering of the elements produces a cyclical pattern, systematic sampling may decrease the representativeness of the

Stratified Sampling
A two-step process in which the population is partitioned into subpopulations, or strata. The strata should be that where every population element should be assigned to one and only one stratum and no population elements should be omitted. Next, elements are selected from each stratum by a random procedure, usually SRS. The elements within a stratum should be as homogeneous as possible, but the

Cluster Sampling
The target population is first divided into subpopulations, or clusters. Then a random sample of clusters is selected, based on a probability sampling technique such as SRS. For each selected cluster, either all the elements are included in the sample (onestage) or a sample of elements is drawn probabilistically (two-stage). Elements within a cluster should be as

QUESTIONNAIRE

A questionnaire is a formalized set of questions for obtaining information from respondents.

OR A structured technique for data collection that consists of a series of

SOURCES OF DATA

MARKETING RESEARCH DATA

PRIMARY DATA

SECONDRY DATA

Primary vs. Secondary Data

Primary Data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process
Secondary Data - which have already been collected for purposes other than the problem at hand.

Comparison of Primary & Secondary Data

Primary Collection purpose

Secondary

For Problem in Hand Very Involved

For Other Problems Rapid & Easy

Collection process

METHODS OF DATA COLLECTION

Survey Techniques Observation Approach Focus Group Research Behavioral Research Experimental Research

Survey Techniques
Most common of the approaches wherein surveys are undertaken with the help of a questionnaire to learn about peoples knowledge, benefits & behaviour.

Observation Approach

Focus Group Research

It is the method of discussion in which a team of 8-12 persons invited for a group discussion in presence of a skilled moderator to discuss a product, service, a firm or any marketing activity Behavioral Research or problem. The proceedings are observed on videotape and analysed later.

Experimental Research
The most scientific method of research is experimental research which tries to capture cause & effect relationships.

CONSUMER BEHAVIOUR
-DEFINITION FACTORS INFLUENCING -CONSUMER BUYING BEHAVIOUR -BUYING PROCESS

CONSUMER BEHAVIOUR
According to Prof. Leon G. Sciffman & Leslie Lazon Kanuk

The behaviour that consumers display in searching for, purchasing, using, evaluating & disposing of, if products & services will satisfy their needs.
According to Blackwell & Miniard

Consumer Behaviour refers to actions

Characteristics/Determinants/Factors Block Diagram Influencing Consumer Behavior

BUYER

CULTURAL

SOCIAL

PERSONAL

CONCEPT

CULTURAL FACTORS
Cultural factors exert the broadest & deepest influence on consumer behavior.

The roles are played by the -:

a)CULTURE b)SUBCULTURE c)SOCIAL CLASS

CULTURE
Most fundamental determinant of a persons wants & behavior It is a set of values, perceptions, preferences & behavior through his/her family or other kind of institution.

Example -: Majority of Indians are vegetarians & a company which sells non-veg items should analyze these values of the

SUB-CULTURE
These are also part of culture comprising geographical regions, religions, nationalities & racial groups. Sub-cultures provide more specific identification & socialization for its members. Many subcultures make up important market segments. Marketers often design products & marketing programs tailored to their

Social Class
Social classes are relatively homogeneous & enduring divisions in a society which are hierarically ordered & whose members share similar values, interests & behaviour.

Social class do not reflect income only but 1) Occupation 2) Education

SOCIAL FACTORS In addition to cultural factors, a consumers behaviour is influenced by some social factors.

The roles are played by the -:

a) Reference Groups b) Family c) Roles

Reference Groups
A persons Reference Groups consists of all the groups that have direct (face-toface) or indirect influence on the persons attitudes or behavior. Groups having direct influence on a persons are called Membership Groups. Membership Groups are-:

Contd..
Primary Groups
Family Friends Neighbors Co-workers Groups Secondary With whom the person interacts fairly continuously & informally

Aspirational Groups

People are also influenced by the Groups Dissociativegroups in which they are not members. Groups to which a person would like to belong

FAMILY
The family is the most important consumer buying organisation in society & it has been researched extensively. Family members constitute the most influential primary reference group. We can distinguish between two families in the buyers life

Contd..
Family of Orientation -: It consists of ones parents & siblings From parents a person acquires an orientation toward religion, politics & economics & a sense of personal ambition, self worth & love. Family of Procreation -: It consists of ones spouse & children

PERSONAL FACTORS
Buyer behaviour is influenced by the buyers personal characteristics. These includes -: 1. Age & Life cycle Stages 2. Occupation 3. Economic Circumstances 4. Lifestyle 5. Personality & Self-Concept

Age & Life cycle Stages

Buyers tastes in food, clothes, furniture & recreation are all related to age.

Family life cycle consists of stages like young singles, newly married, married with children, elderly couple living alone & single parents.
Consumption is shaped by the stage in which the buyer is presently.

Bachelor stage:
Young, single, not living at home Few financial burdens. Fashion opinion leaders. Recreation oriented. Buy: basic home equipment, furniture, cars, equipment for the vacations.

Newly married couples:

Young, no children Highest purchase rate and highest average purchase of

Occupation
A factory worker may buy work clothes, work shoes, lunch boxes etc.

A company executive may buy expensive suits, watches, travel accessories, tickets for air travel, luxury car etc.

Economic Circumstances
Economic circumstances of the buyer will affect his product choice

This consists of Spendable Income Saving & assets Borrowing Power Attitude towards spending & savings

Lifestyle
Lifestyle is an individuals way or pattern of living, which is reflected in his activities, interests & opinions. Consumers with the same cultural, subcultural, occupational & social class background could have varying lifestyles.

Personality & Self-Concept

Personality is the persons distinguishing psychological characteristics that lead to relatively consistent & enduring responses to his / her own environment. It is described in terms of such traits like self confidence, dominance, sociability, defensiveness & adaptability.

Personality plays a very important role in

PSYCHOLOGICAL FACTORS

These factors include -:

1) Motivation 2) Perception 3) Learning 4) Beliefs 5) Attitudes

MOTIVATION
Buyers needs are normally biogenic & physiological. When needs are aroused to a sufficient level of intensity they become motives & urging the buyer to seek satisfaction. Abraham Maslow explained the driving force of peoples need hierarchy.

MASLOWS Hierarchy of Needs

Perception
It is the process by which an individual selects, organizes & interprets information inputs to create a meaningful picture of the world. Marketer Researches his consumers profile & then communicate the message through radio, demo or television.

PERCEPTION
The message given by company may pass through 3 different selection procedures -:
1) Selective Attention -: The habit of the people to analyze the information completely & then they develop perception about the product or service only after complete information.
2) Selective Distortion -: If consumer understands the wrong message in a right way it is positive but if he

LEARNIN G
It involves changes in an individuals behaviour arising from experience. Most human behavior is learned.

BELIEFS
Through doing & learning. People acquire beliefs & attitudes.

A Belief is a descriptive thought that a person holds about something. These beliefs make up product & brand images & people often act on these images.

ATTITUDES
Attitudes puts people into a frame of mind of liking or disliking an object.

An attitude is a persons enduring favorable or unfavorable evaluations, emotional feelings & actions tendencies toward some object or idea.
People have attitude towards almost everything : religion, politics, clothes,

Buying Process
Problem or need recognition Information search Evaluation of alternatives

Purchase decision
Post purchase behavior

Problem or need recognition

Consumer recognizes a need Example: Consumer recognizes that he needs to upgrade his computer. He wants faster processing, more memory, and several other features.

Information Search

Consumer seeks out information to fulfill the need. Example: Consumer searches through PC World and other magazines for information on computers.

Evaluation of Alternatives

Consumer evaluates the options that may fulfill his needs. Example: Consumer selects several different brands and models of computers to consider and evaluates them.

Purchase Decision

Consumer decides which product or brand to purchase. Example: Consumer decides to buy a Dell Computer by mail.

Post-Purchase Behavior

Consumer will use the product and evaluate his or her decision. Example: Consumer decides the brand was a good choice.

New Marketing Challenges

New Marketing Landscape & Information Technology

Nonprofit Marketing

Ethical Concerns

Emerging Challenges
Changing World Economy

Globalization

Modern Marketing System

Suppliers

Competitors

Company (Marketer) Environment

Environment

Marketing Intermediaries

End User Market

Marketing Management
Marketing Management
Implementing programs to create exchanges with target buyers to achieve organizational goals

Demand Management
Finding and increasing demand, also changing or reducing demand

Profitable Customer Relationships

Attracting new customers and retaining current customers