Class B.Com. V Sem. (Hons.) 45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, 4...

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Transcript of Class B.Com. V Sem. (Hons.) 45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, 4...

  • B.Com 5th Sem. (Hons.) Subject- Marketing Concept & Consumer Behavior

    45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com 1

    SYLLABUS

    Class – B.Com. V Sem. (Hons.) Subject – Marketing Concept & Consumer Behavior

    UNIT – I Basics of marketing, meaning & definition of market & marketing, nature scope & importance of marketing; marketing concepts.

    UNIT – II Consumer behavior: Nature, scope and significance types of consumers, factors influencing consumer behavior; market segmentation: Concept & importance basis for market segmentation.

    UNIT – III Development of Marketing strategies & Plans, marketing & Customers values & satisfaction.

    UNIT – IV Product: concept of product, consumer & Industrial goods, product planning & development packing role and functions, brand and functions, brand name.

    UNIT – V Price concept of Price V/s cost; importance of price marketing importance of price in marketing mix; factors affecting price of a product or service; pricing policies.

  • B.Com 5th Sem. (Hons.) Subject- Marketing Concept & Consumer Behavior

    45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com 2

    DEFINITION OF MARKETING

    Product-oriented Definition - Marketing may be narrowly defined as a process by which goods and services are exchanged and the valued determined in terms of money prices. Customer-oriented Definition - According to Cardiff and Still. “Marketing is the business process by which products are matched with the markets and through which transfers of ownership are effected.” System-Oriented Definition - William J. Stanton has given a system oriented definition of marketing. “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute wants satisfying products to target markets to achieve organisational objectives. Kotler’s Definition - Kotler has defined marketing as a social and managerial process by which individuals and groups obtain what need and want through creating, offering and exchanging products of value with others.

    NATURE OF MARKETING 1. Marketing is Customer-focused. 2. Marketing must Deliver Value.

    3. Marketing is Business. 4. Marketing is Surrounded by Customer Needs. 5. Marketing is a Part of Total Environment. 6. Marketing Systems Affect Company Strategy. 7. Marketing as a Discipline. 8. Marketing Creates Mutually-beneficial Relationships.

    SCOPE AND FUNCTIONS OF MARKETING

    Functions of Marketing The business by selling want satisfying goods and services to the customers. In order to achieve this purpose, the Marketing Manager performs the following functions:

    Benefits

    Cost

    Customer Value=

    (A) Functions of

    Research

    (B) Functions of

    Exchange

    (C) Functions of

    Physical Treatment

    (A) Functions Facilitating

    Exchange

    1. Marketing research

    2. Product Planning

    and Development

    1. Buying and

    Assembling

    2. Selling

    1. Standardisation Grading and Branding 2. Packaging 3. Storage 4. Transportation

    1. Salesmanship 2. Advertising 3. Pricing 3. Financing 4. Insurance

  • B.Com 5th Sem. (Hons.) Subject- Marketing Concept & Consumer Behavior

    45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com 3

    (i) Marketing research. (ii) Product planning and development. (iii) Buying and assembling. (iv) Selling (v) Standardisation, grading and branding. (vi) Packaging. (vii) Storage (viii) Transportation (ix) Salesmanship (x) Advertising (xi) Pricing (xii) Financing (xiii) Insurance

    Making management is an important operative function (as distinct from managerial function) of management. It performs all managerial functions in the field of marketing. It is responsible for planning, organising,, directing and controlling the marketing activities. OBJECTIVE OF MARKETING MANAGEMENT A business aims at earning reasonable long-term profits by satisfying the needs of customers.

    1. To create customers for the business. 2. To satisfy the needs of the customers. 3. to determine marketing-mix that will satisfy the needs of the customers. 4. To generate adequate profits for the business. 5. To earn goodwill for the business. 6. To raise standard of living of the people.

    PHILOSOPHY OF MARKETING

    1. PRODUCTION CONCEPT: Managers of production oriented organizations concentrate on achieving high production efficiency and wide distribution coverage.

    2. PRODUCT CONCEPT: The product concept holds that consumers will favour those products that offer the best quality, performance or innovative features.

    3. THE SELLING CONCEPT: The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the organisation’s products.

    4. THE MARKETING CONCEPT: This is a customer oriented approach which points out that the primary task of a basis of latest and accurate knowledge of market demand, the enterprise must produce and offer the products which will give the desired satisfaction and services to the customer.

    It involves the following orientation 

    (a) Customer orientation. (B) Integrated approach.- (C) Marketing information system (D) Profitability. (E) Societal marketing concept

    What is the difference between a customer and a consumer? The following distinction should help: • A customer – purchases and pays for a product or service • A consumer – is the ultimate user of the product or service; the consumer may not have paid for the product or service

  • B.Com 5th Sem. (Hons.) Subject- Marketing Concept & Consumer Behavior

    45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com 4

    PRODUCT LIFE-CYCLE

    INTRODUCTION Every product has its life. Industrial goods may have a longer life than consumer goods. What a product idea is commercialised, the product enters into the market and competes with the rivals, for making sales and earning profits. Product like human being, have length of life. This has been described as life- cycle in human beings, and when applied to products, its is called as product life-cycle. The product life- cycle is generally termed as product market life-cycle, because it is related to particular market. Every product passes through certain stages, collectively known as product life-cycle stages. These stages include:

     Introduction,  Growth,  Maturity, and  Decline

    The advantages of PLC to a firm are as follows:

     When the product life-cycle is predictable, the management must be cautions in taking advance steps before the decline stage, by adopting product modification, pricing strategies, style, quality change, etc.

     The firm can prepare an effective product play by knowing the product life-cycle of a product.

     The management can find new uses of the product for the expansion of market during growth stage and for extending the maturity stage.

     The management can adopt latest technological changes to improve the product quality, features and design.

    STRATEGIES IN PRODUCT LIFE-CYCLE

    1. Introduction Stage a) Advertisement and publicity of the product-‘Money back’ guarantee may be offered to stimulate the

    people try the product. b) Attractive gift to customers as an ‘introductory officer’. c) Selective distribution and attractive discount to dealers. d) Higher price of product to earn greater profit during the initial e) Ironing out of product deficiencies. 2. Growth Stage

  • B.Com 5th Sem. (Hons.) Subject- Marketing Concept & Consumer Behavior

    45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com 5

    a) The product is advertised heavily to stimulate sales. b) New versions of the product are introduced to cater to the requirements of different types of

    customers. c) The channels of distribution are strengthened so that the product is easily available wherever

    required. d) Brand image of the product is created through promotional activities. e) The price of product is completive. f) There is greater emphasis on customer service.

    3. Maturity Stage a) Product may be differentiated from the competitive product and brand image may be

    emphasised more. b) The warranty period may be extended. Fro instance, manufacturers of typewriters have

    introduced the concept of life-time warranty. c) Reusable packaging may be intruded. d) New markets may be developed. e) New uses of the product may be developed.

    4. Decline Stage a) New features may be added to the product and its packaging may be made more attractive. b) Economy packs or models may be introduced to revive the market. c) The promotion of the product should be selective to reduce distribution costs.

    MARKET SEGMENTATION According to Stanton, "Market segmentation consists of taking the total, heterogenous market for a production dividing it. into several sub-markets or segment