Marketing Study Guide
Marketing 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 objectives.
Importance of Marketing:
- Helps in increasing sales and profits
- Creates brand awareness and recognition
- Helps in understanding customer needs and preferences
- Facilitates business growth and expansion
- Builds customer loyalty and retention
Marketing Concepts:
- Production Concept
- Product Concept
- Selling Concept
- Marketing Concept
- Societal Marketing Concept
Marketing Mix refers to the set of tactical marketing tools that a company uses to produce the response it wants from its target market. It consists of everything the firm can do to influence the demand for its product.
Components of Marketing Mix (4Ps):
- Product: The goods or services offered to customers
- Price: The amount customers pay for the product
- Place: The distribution channels used to make the product available to customers
- Promotion: The activities used to communicate with customers and persuade them to buy the product
Buying Motives are the influences or considerations that provide the impulse to buy, induce action, or determine choice in the purchase of goods or services.
Classifications of Buying Motives:
- Emotional Motives: Based on feelings and emotions (e.g., pride, fear, affection)
- Rational Motives: Based on logical reasoning and economic considerations (e.g., durability, economy, utility)
- Product Motives: Related to the product itself (e.g., quality, price, design)
- Patronage Motives: Related to the place of purchase (e.g., location, service, reputation)
Warehousing refers to the activities involving storage of goods on a large scale in a systematic and orderly manner and making them available when needed.
Functions of Warehousing:
- Storage of goods
- Protection of goods
- Risk bearing
- Financing
- Processing
- Grading and branding
Functions of Transportation:
- Movement of goods
- Place utility creation
- Time utility creation
- Price stabilization
- Employment generation
Marketing Environment refers to the external and internal factors and forces that affect the company's ability to develop and maintain successful transactions and relationships with its target customers.
Internal Environment Components:
- Company's mission and objectives
- Organizational structure
- Company resources (human, financial, physical)
- Company culture
- Marketing mix elements
External Environment Components:
- Microenvironment: Customers, competitors, suppliers, intermediaries, public
- Macroenvironment: Demographic, economic, natural, technological, political, cultural forces
Consumer Products are products bought by final consumers for personal consumption.
Types of Consumer Products:
- Convenience Products: Frequently purchased with minimal effort (e.g., toothpaste, newspapers)
- Shopping Products: Compared on quality, price, and style (e.g., furniture, clothing)
- Specialty Products: Unique characteristics with strong brand preference (e.g., luxury cars, designer clothes)
- Unsought Products: Products that consumers don't normally think of buying (e.g., life insurance, funeral services)
Pricing is the process of determining what a company will receive in exchange for its products or services.
Objectives of Pricing:
- Profit maximization
- Market share leadership
- Survival
- Product quality leadership
- Status quo maintenance
Importance of Pricing:
- Affects company's profitability
- Influences customer perception
- Determines market position
- Affects product demand
- Impacts competitive advantage
Departmental Store is a large retail establishment offering a wide range of consumer goods in different product categories known as "departments".
| Basis of Difference | Departmental Store | Super Market |
|---|---|---|
| Product Range | Wide variety of products | Mainly food and household items |
| Pricing | Higher prices | Lower prices |
| Services | More personalized services | Self-service |
| Location | Central business districts | Residential areas |
| Target Customers | Higher income groups | All income groups |
Sales Promotion refers to short-term incentives to encourage the purchase or sale of a product or service.
Methods of Sales Promotion:
- Consumer Promotions: Coupons, samples, premiums, contests, rebates
- Trade Promotions: Discounts, allowances, free goods, push money
- Business Promotions: Conventions, trade shows, sales contests
- Sales Force Promotions: Bonuses, contests, sales meetings
Internet Marketing (also known as digital marketing) is the process of promoting products or services using digital channels to reach consumers.
Features of Internet Marketing:
- Global reach and accessibility
- Cost-effectiveness compared to traditional marketing
- Measurable results and analytics
- Interactive and engaging
- Targeted and personalized approach
- 24/7 availability
- Easy to update and modify campaigns
All the best for your exams!