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Semester 2: B.B.A., INTERNATIONAL BUSINESS
Fundamentals of Marketing: Role of Marketing, Relationship of Marketing With Other Functional Areas, Concept of Marketing Mix, Marketing Approaches, Various Environmental Factors Affecting the Marketing Functions
Fundamentals of Marketing
Role of Marketing
Marketing plays a critical role in connecting businesses with customers. It identifies customer needs and preferences, facilitates the exchange of goods and services, and helps build brand awareness and loyalty. The key functions include market research, product development, pricing strategy, promotion, and distribution.
Relationship of Marketing With Other Functional Areas
Marketing interacts closely with other departments such as finance, operations, and human resources. Collaboration with finance ensures proper budget allocation for marketing campaigns. Operations help in product development and timely delivery to customers, while HR plays a role in staffing for marketing initiatives. Effective communication among these areas is essential for achieving overall business objectives.
Concept of Marketing Mix
The marketing mix consists of the 4 P's: Product, Price, Place, and Promotion. Product refers to the goods or services offered by a business. Price involves the strategy for pricing those products. Place encompasses the distribution channels used to make products available. Promotion involves advertising and promotional strategies to generate interest and sales.
Marketing Approaches
Different marketing approaches include traditional marketing, digital marketing, and relationship marketing. Traditional marketing focuses on offline methods, while digital marketing leverages online platforms and social media. Relationship marketing emphasizes building long-term customer relationships through personalized services and customer engagement.
Various Environmental Factors Affecting Marketing Functions
Environmental factors include economic conditions, cultural trends, technological advancements, regulatory changes, and competitive landscapes. These factors can impact consumer behavior and influence marketing strategies. Marketers must be adaptive and responsive to external changes to maintain a competitive edge.
Segmentation: Need And Basis of Segmentation, Targeting, Positioning, Product Characteristics, Benefits, Classifications, Consumer Goods, Industrial Goods, Product Mix, New Product Development Process, Product Life Cycle, Branding, Packaging
Segmentation Need and Basis of Segmentation
Need for Segmentation
Segmentation allows businesses to identify and target specific groups of consumers that have distinct characteristics and needs. This targeted approach enables more effective marketing efforts and resource allocation.
Basis of Segmentation
Segmentation can be based on various criteria such as demographics, psychographics, geographic locations, and behavioral factors. Each basis offers unique insights into consumer preferences and purchasing behaviors.
Targeting
Targeting involves selecting one or more segments to focus marketing efforts. This can include strategies such as differentiated marketing, undifferentiated marketing, concentrated marketing, and micromarketing.
Positioning
Positioning refers to how a product is perceived in the minds of consumers relative to competitors. Effective positioning builds a unique image that resonates with the target audience.
Product Characteristics
Product characteristics include features, quality, design, brand name, and packaging that differentiate a product from competitors. These attributes play a significant role in consumer purchasing decisions.
Benefits
Identifying benefits helps marketers to communicate what problem a product solves for consumers. Benefits can be functional, emotional, or social.
Classifications of Products
Products can be classified as consumer goods or industrial goods. Consumer goods are intended for personal use, while industrial goods are used for manufacturing or operational purposes.
Consumer Goods
Consumer goods can be segmented into convenience goods, shopping goods, specialty goods, and unsought goods based on how consumers evaluate and purchase them.
Industrial Goods
Industrial goods include materials and parts, capital items, and supplies and services. Each category serves different business needs.
Product Mix
Product mix refers to the total range of products that a company offers. It includes product lines, categories, and individual products.
New Product Development Process
The new product development process typically includes stages such as idea generation, screening, concept development, testing, and commercialization.
Product Life Cycle
The product life cycle consists of four stages: introduction, growth, maturity, and decline. Each stage requires different marketing strategies.
Branding
Branding involves creating a unique identity for a product or company through the use of names, symbols, and designs. Strong branding increases customer loyalty.
Packaging
Packaging protects the product, provides information, and contributes to brand image. Effective packaging can influence consumer purchase behavior.
Pricing: Factors Influencing Pricing Decisions, Pricing Objectives, Market
Pricing: Factors Influencing Pricing Decisions, Pricing Objectives, Market
Factors Influencing Pricing Decisions
Pricing decisions are influenced by various factors which include costs, competition, market demand, customer perception, and external economic conditions. Companies must assess their production and operational costs to ensure profitability while also considering the prices set by competitors. Additionally, understanding the customer's willingness to pay and their perceived value of the product is crucial. Economic factors such as inflation and market trends also play a significant role in establishing price points.
Pricing Objectives
Pricing objectives guide the strategic approach a company takes in setting prices. Common objectives include profit maximization, market share expansion, revenue growth, and survival. Companies may choose a skimming strategy to maximize profits in the short term by setting high initial prices, or a penetration pricing strategy to gain market share quickly by offering lower prices. Other objectives may involve pricing for psychological impact, such as appealing to customer perceptions and brand positioning.
Market Considerations
The market environment significantly affects pricing strategies. Market structure, including whether the market is monopolistic, oligopolistic, or perfectly competitive, determines pricing flexibility. Additionally, customer demographics and behavior, market segmentation, and the presence of substitutes all influence pricing decisions. Companies must remain agile and responsive to shifts in market dynamics to maintain competitive pricing and meet consumer expectations.
Physical Distribution: Importance, Various Kinds of Marketing Channels, Distribution Problems
Physical Distribution: Importance, Various Kinds of Marketing Channels, Distribution Problems
Importance of Physical Distribution
Physical distribution plays a crucial role in ensuring that products reach consumers in a timely manner. It impacts customer satisfaction, sales volume, and overall business performance. Effective physical distribution helps minimize costs and optimize inventory management, ensuring that businesses meet customer demands while maintaining efficiency.
Various Kinds of Marketing Channels
Marketing channels can be categorized into direct and indirect channels. Direct channels involve selling products directly to consumers, often through online platforms or company-owned stores. Indirect channels involve intermediaries such as wholesalers and retailers, which help in reaching a broader audience. Additionally, there are multiple sales formats including brick-and-mortar stores, e-commerce platforms, and direct sales.
Distribution Problems
Various distribution problems may arise such as logistics challenges, inventory shortages, and transportation issues. Geographic barriers can complicate delivery processes, while demand variability can lead to stockouts or excess inventory. Additionally, coordination between different distribution channels can enhance or hinder overall effectiveness, creating the need for robust supply chain management.
Communication Mix: Types of Media and Characteristics, Print, Electronic, Outdoor, Internet, Sales Promotion tools, Integrated Marketing Communication, Sales Force Management
Communication Mix Types of Media and Characteristics
Print Media
Print media includes newspapers, magazines, brochures, and flyers. It is characterized by tangible materials that provide information. Print media is effective for targeting specific demographic groups and can be kept for future reference.
Electronic Media
Electronic media encompasses television, radio, and film. This type of media allows for real-time dissemination of information and has a wide reach. It can utilize audio-visual elements to enhance engagement and retention.
Outdoor Media
Outdoor media includes billboards, transit ads, and posters. This form of advertising is strategically placed in high-traffic areas to capture attention. It is effective for brand awareness but often limited in the message length.
Internet Media
Internet media includes social media, websites, email, and blogs. It offers interactive communication and enables direct engagement with consumers. Internet media allows for precise targeting and measurement of campaign effectiveness.
Sales Promotion Tools
Sales promotion tools include discounts, coupons, contests, and giveaways. These tools are designed to encourage immediate purchase and increase sales volume. They are often time-sensitive and create a sense of urgency.
Integrated Marketing Communication
Integrated marketing communication (IMC) ensures consistency across all marketing channels. It combines various promotional tools to reinforce the brand message and effectively reach consumers.
Sales Force Management
Sales force management involves recruiting, training, and motivating the sales team. It includes setting sales targets and measuring performance to enhance sales effectiveness. Effective management aligns the sales force with the overall marketing strategy.
