Principles of Marketing

The word ‘Market’ is derived from the Latin word ‘Marcatus’, means a place where business is conducted.
A market is a place which allows the purchaser and the seller to invent and gather information and lets them carry-out exchange of various products and services. In other words, the meaning of market refers to a place where the trading of goods takes place.
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges which satisfy individual and organizational objectives
Marketing is an effective way of engaging customers
Marketing helps to build and maintain the company’s reputation.
Marketing helps to build a relationship between a business and its customers
Marketing is a communication channel used to inform customers
Marketing helps to boosts sales
Marketing aids in providing insights about your business
Marketing helps your business to maintain relevance
Marketing creates revenue options
Marketing helps the management team to make informed decisions

1. INTRODUCTION TO MARKETING

2. Meaning Definition A marketer is an individual who is responsible for creating an involvement chain between the customer and the product or service offered by the company. This involvement is garnered by maintaining huge stocks of goods for supply or properly advertising the product to invite huge sales. According to Philip Kotler “A market is an area for potential exchanges.” According to Pyle Market includes both place and region in which buyers and sellers are in free competition with one another The word ‘Market’ is derived from the Latin word ‘ Marcatus ’, means a place where business is conducted. A market is a place which allows the purchaser and the seller to invent and gather information and lets them carry-out exchange of various products and services. In other words, the meaning of market refers to a place where the trading of goods takes place. Meaning and definition of Market and Marketer

3. Meaning Definition Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges which satisfy individual and organizational objectives Meaning and definition of Marketing According to Philip Kotler Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. 1. What do customers want? 2. Can we develop a while they still want it? 3. How can we keep our customers satisfied?

4. Managerial Function: Marketing is all about successfully managing the product, place, price and promotion of business to generate revenue. Human Activity: It satisfies the never-ending needs and desires of human beings. Economic Function: The crucial second marketing objective is to earn a profit. Both Art and Science: Creating demand of the product among consumers is an art and understanding human behaviour , and psychology is a science. Customer Centric: Marketing strategies are framed with the motive of customer acquisition. Consumer Oriented: It practices market research and surveys to know about consumer’s taste and expectations. Goal Oriented: It aims at accomplishing the seller’s profitability goals and buyer’s purchasing goals. Interactive Activity: Marketing is all about exchanging ideas and information among buyers and sellers. Dynamic Process: Marketing practice keeps on changing from time to time to improve its effectiveness. Creates Utility: It establishes utility to the consumer through four different means; form (kind of product or service), time (whenever needed), place (availability) and possession (ownership).

5. Scope of Marketing 1. Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants . These needs and wants motivates consumer to purchase. 2. Study of Consumer behaviour : Marketers performs study of consumer behaviour . Analysis of buyer behaviour helps marketer in market segmentation and targeting. 3. Production planning and development Product planning and development starts with the generation of product idea and ends with the product development and commercialization. Product planning includes everything from branding and packaging to product line expansion and contraction. 4. Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs form product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc. 5. Distribution: Study of distribution channel is important in marketing. For maximum sales and profit goods are required to be distributed to the maximum consumers at minimum cost. 6. Promotion: Promotion includes personal selling, sales promotion, and advertising . Right promotion mix is crucial in accomplishment of marketing goals. 7. Consumer Satisfaction: The product or service offered must satisfy consumer. Consumer satisfaction is the major objective of marketing. 8. Marketing Control: Marketing audit is done to control the marketing activities.

6. Functions of Marketing: According to Clark and Clark 1. Functions of Exchange 2. Functions of Physical Supply 3. Facilitating Functions Functions of Exchange Buying: Involves procuring goods of required quality and quantity at a satisfactory price. It involves assembling goods under a single ownership for production, resale or consumption. Buying process may involve following activities: I. Planning, Negotiating, Contracting and Assembling Selling: Involves finding buyers to sell goods at a satisfactory price. Selling process may involve following activities: I. Planning, Prospecting, Creating demand/ inducing buyers, Negotiating and contracting.

7. Functions of physical Supply The function of Physical supply of goods from the producers to consumers involves Transportation: needs to be speedy, efficient, on-time, hassle-free and safe delivery. Company has a choice of five modes of transportation: Rail, Road, Air, Waterways (Shipping) and Pipelines. Storage and Warehousing: Goods are stored for different reasons such as: Goods produced seasonally may be used throughout the year and vice versa. Manufacturers store raw materials for ready supply Goods are also stored in the hope of getting a higher price in future

8. Facilitating Functions The function of Physical supply of goods from the producers to consumers involves Financing Risk Taking Sales Promotion Packing And Advertising Branding Market Information Standardization and Grading Pricing

9. a) Financing : Marketing department needs capital for Investing in land, buildings, furniture etc.; maintaining inventory and extending credit to customers. Acquiring funds for these marketing purposes is known as financing. b) Risk Taking: Marketing may face the risk of loss, fire, theft, natural calamity, price fluctuations, exchange rate fluctuations etc. Some of these risks may be insured wholly or partly or borne by the businessman. c) Market Information: The function of collecting, analyzing and communicating information is also important in marketing. Modern Marketing involves setting up an efficient Marketing Information System and undertaking Market research. d) Standardization and Grading: Standardization and Grading is a measure of quality consisting of specifications such as size, color, appearance, shape, chemical contents, flavor etc... e) Pricing: Generates revenue, all other functions involve costs. Pricing need to be right. Neither too high nor too low. f) Branding: Branding is the practice of giving a specified name to a product or a group of products from one seller. Branding helps Identify & differentiate products from those of competitors. g) Packing and Advertising: Packing provides handling convenience, maintains freshness and quality of the product and prevent damages or adulteration of the product. Packaging is an attractive display or an eye-catching appearance. It informs guides, educates and protects buyers, so that they can take right decisions on what to buy. h) Sales Promotion: are the short term promotion tools designed to stimulate customers to buy and assist sales-force/ retailers in their sales efforts.

10. Need of Marketing Marketing is an effective way of engaging customers Marketing helps to build and maintain the company’s reputation. Marketing helps to build a relationship between a business and its customers Marketing is a communication channel used to inform customers Marketing helps to boosts sales Marketing aids in providing insights about your business Marketing helps your business to maintain relevance Marketing creates revenue options Marketing helps the management team to make informed decisions

11. Definition of Marketing-Mix: According to Stanton, Marketing-mix is a combination of four elements— product, pricing structure, distribution system, and promotional activities —used to satisfy the needs of an organisation’s target market(s) and, at the same time, achieve its marketing objectives. Meaning of Marketing Mix: The marketing mix refers to the set of actions, or tactics , that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. in other words, Marketing Mix is a combination of marketing tools that a company uses to satisfy their target customers and achieving organizational goals.

12. Marketing-mix is a combination of several-mixes. Marketing-mix encompasses product-mix (brand, quality, weight, etc.); Price-mix (unit price, discount, credit, etc.); Promotion-mix (advertising, salesmanship and sales promotion); and Place-mix (distribution channels, transport, storage, etc.) 4 P’s of Marketing Mix Product:  refers to the item actually being sold. Price: refers to the value that is put for a product Place: refers to the point of sale. Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade.

13. A product is any good or service that consumers want. It is a bundle of utilities or a cluster of tangible and intangible attributes. Product component of the marketing- mix involves planning, developing and producing the right type of products and services. It deals with the dimensions of product line, durability and other qualities.

14. PRODUCT MIX: Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. The four dimensions to a company's product mix include width, length, depth and consistency. 1. Width also known as breadth, refers to the number of product lines offered by a company. 2. Length refers to the total number of products in a firm’s product mix 3. Depth refers to the number of variations within a product line. 4. Consistency refers to how closely related product lines are to each other.

15. Refers to the value you put for your product. Pricing is mainly determined by the cost of the product and also how much the customer would be willing to pay. If we price it too high no one buys, if we price it too low, company makes losses. So we have to devise the right pricing strategy to make the mix perfect. Formulating the right pricing strategy depends upon a number of factors such as the cost of production, competitor’s pricing strategy, ability of the target market to pay, supply-demand, brand personality, and so on. It covers the following aspects: List Price, Discounts, Allowances, Financing, Leasing Options Pricing Strategies: Broadly speaking, there are three approaches to pricing a product: Cost-oriented Pricing: The profit margin is added on top of the cost of production Customer-based Pricing: Pricing is decided on the basis of what the market segment can pay for the product Competitor Pricing: The prices set by competitors influence the company’s pricing strategy

16. This element of the marketing-mix involves choice of the place where products are to be displayed and made available to the customers. The objective of selecting and managing trade channels is to provide the products to the right customer at the right time and place on a continuing basis. In deciding where and through whom to sell , management should consider where the customer wants the goods to be available. It implies that a suitable marketing channel is to be chosen, to reach the customers, because the better the chain of distribution, the higher would be the coverage . This involves a chain of individuals and institutions like distributors, wholesalers and retailers who constitute firm’s distribution network (also called a channel of distribution). The channel through which the products are distributed to the final customer are known as channel of distribution

17. PROMOTIONAL MIX: The term ‘promotional mix’ is used to refer to the combination of different kinds of promotional tools used by a firm to advertise and sell its products. Philip Kotler opines, “A company’s total marketing communication mix also called promotion mix consists of specific blends of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company use to pursue its advertising and marketing objectives.”

18. Advertising   is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Branding is the act of giving a company a particular design or symbol in order to advertise its products and services. Personal selling is where businesses use people (the "sales force") to  sell  the product after meeting face-to-face with the customer. The sellers promote the product through their attitude, appearance and specialist product knowledge. Sales promotion  is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its  sales . Public relations (PR) refer to the variety of activities conducted by a company to promote and protect the image of the company, its products and policies in the eyes of the  public . Direct marketing  is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. The term  social media marketing (SMM) refers to the use of social media and social networks to market a company's products and services.

19. Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy: People Process Physical Evidence

20. The ‘ people ’ element of the 7Ps involves anyone directly, or indirectly, involved in the business-side of the enterprise. Those people who are involved in selling a product or service, designing it, managing teams, representing customers... Etc., The most cost-effective means of differentiating yourself from the competition is the degree of customer focus, competence and efficiency of the People the organisation employs Customers experience this as the degree of Care and Concern they receive from the organisation

21. It includes, Marketers: The 7Ps model highlights the importance of hiring the best talent for every position on your marketing team. Sales team members: These are the people who typically handle the first person-to-person interactions with your customers – and often seal the deal. Customer service team: The individuals tasked with keeping your customers happy, even when things aren’t quite going to plan. Recruitment: Hiring the best talent starts with having quality recruitment personnel. Training & skills: The people responsible for ensuring all of your team members encompass the brand ethos and meet your requirements. Managers: The people with skills to manage teams, get the best out of everyone and ensure you hit targets.

22. Processes: Process in the 7Ps model refers to your processes for delivering the product or service to your customers, as well as any additional customer service and post-purchase systems you have in place. All Processes are concerned with the consistent creation and delivery of Customer Value The Customer’s experience is affected directly at those points at which s/he interacts with the Organisation Processes should be continuously reviewed and co-ordinated to improve the customer experience and demonstrate Customer Consideration.

23. It involves Customer-end delivery:  The customer’s process for attaining your product or service, whether it’s ordered online and delivered via a courier, bought in-store, downloaded from your website or accessed through an online signup process. Business-end delivery:  Your processes for facilitating customer-end delivery and safeguards for resolving any potential issues ( eg : technical issues preventing online purchases). Customer service:  Your processes, systems and channels for providing customer service beyond the initial sale. Resolutions:  Your processes for dealing with problems that prevent usual delivery systems from completing successfully and instances where customers are unhappy with the process/service received. Incentives:  Measures designed to keep unhappy customers engaged with your brand so you can keep them on board and win them over. Returns & refunds:  Your systems for dealing with returns, cancellations, refunds and any other processes for customers who refuse to stay on board. Feedback:   Your processes for collecting customer feedback and applying these insights to product/service improvements.

24. Physical Evidence: “The environment in which service is assembled and delivered Combined with tangible commodities that facilities performance or communication of service.” It includes, Infrastructure Physical facilities Sale/Staff contact experience of brand. Physical evidence refers to everything your customers see when interacting with your business. This includes: The physical environment where you provide the product or service The layout or interior design Your packaging Your branding.

25. To Conclude

26. APPROACHES OF MARKETING Product Or Commodity Approach Institutional Approach Functional Approach Management Approach System Approach Environmental Approach Legal Approach Economic Approach

27. The commodity approach: Single commodity from the farm to the fork The commodity approach of marketing is related to demand and supply of commodity. Under this approach, the flow of goods from the producers to the consumers is studied. In this study, emphasis is given to production center, involvement of men in selling and purchasing of the products, means of transportation, problems in sale and advertisement of goods, problems in financing, storing, channel of distribution and transportation and other related matters. The commodity approach of marketing is practiced mostly in agricultural products, in cotton, jute, wheat, etc. Commodity Approach

28. The Institutional approach: Examine the roles of the Middlemen Institutional approach of marketing emphasis to the study of marketing institutions and agencies. Wholesalers, importers, transporters, exporters, business agents, transport organization, banks, insurance companies, finance companies etc. play their roles in marketing by supplying or distributing commodities from producers to the consumers. The study is, 'how these different institutions and agencies function together for marketing system’ The cost of marketing can be reduced by selecting proper institutions. Institutional Approach

29. Institutional Approach

30. Functional Approach Functional approach of marketing indicates the study of the functions of marketing. Marketing performs exchange function, physical distribution function and other auxiliary functions. Exchange Functions: Exchange function of marketing include purchasing and selling. These are the basic functions of marketing. Physical Distribution Function: Physical distribution function includes transportation and storage. These functions transport goods/products to right place at right time as desired by the customers. Auxiliary Function: The auxiliary functions of marketing include, standardization and classification, financing, labeling, packaging, risk bearing, information flow etc.

31. Management Approach It concentrates upon the activities or marketing functions and focuses on the role of decision-making at the level of firm. This approach is mainly concerned with how managers handle specific problems and situations. It aims through evaluation of current market practices to achieve specific marketing objectives. Generally there are two factors-controllable and uncontrollable , which are more concerned with the decision-making. Controllable include price adjustment, advertisement etc. Uncontrollable- economical, sociological, psychological, political etc. are the basic causes for market changes. And these changes cannot be controlled by any firm.

32. System Approach System approach of marketing supposes marketing as a system which includes input, processing, output and feedback and gives an integrated picture of marketing and the objectives of marketing can be achieved effectively from it. Goods, price, place and promotion are included in input of this system. Environmental effect and buyers' decision are included in processing. Profits, costumer's satisfaction and social welfare are included in output and The task of sending message asking for redesigning input and processing fall under feedback

33. Environmental Approach According to environmental approach, environment affects marketing. So, marketing should be made suitable to the environment by studying and scanning the environment. Environment always becomes dynamic. It changes continuously. The environment of marketing can be classified into two types as micro-environment and macro-environment. Micro-environment Of Marketing : Micro-environment is also called internal environment. Production, financial resource, human resource, research and development, culture of organization, suppliers, customers, labor organization, pressure group, competitors, market intermediaries etc. are the micro-environmental components. Macro-environment Of Marketing : Macro-environment is also called external environment. Macro-environmental components do not remain under control of marketing. Economic, political and legal, social and cultural and technological components are included in macro-environment.

34. Legal Approach Legal approach advocates that marketing should be regularized by laws. All the marketing activities should agree with and remain under control of legal provisions . Acts, rules and regulations, policy, procedure, working process etc. are included in Law. Legal approach of marketing strongly emphasis that all the marketing activities should remain within legal purview . It gives high priority to bearing social responsibility. The economic approach of marketing gives emphasis on increase of profit maximization . Buyers and sellers are the important components of marketing. Marketing helps how to utilize limited resources to fulfill the unlimited needs and wants. It researches markets, studies and analyzes demand and supply. Similarly it believes in sales promotion through advertisement and other promotional activities . It uses different economic tools in market research and analyzing demand and supply . So, this approach is popular among economists. Economic Approach

35. Internal Environment Meaning of Marketing Environment: The marketing environment refers to all internal and external factors, which directly or indirectly influence the organization’s decisions related to marketing activities. Internal factors are within the control of an organization ; whereas, external factors do not fall within its control . The external factors include government, technological, economical, social, and competitive forces; whereas, organization’s strengths, weaknesses, and competencies form the part of internal factors. COMPONENTS OF MARKETING ENVIRONMENT Micro Environment Macro Environment

36. 01 02 03 04 INTERNAL ENVIRONMENT: T he internal environment of the business includes all the forces and factors inside the organisation which affect its marketing operations. These components can be grouped under the Five Ms of the business, which are: 05 Men:  The people of the organisation including both skilled and unskilled workers. Minutes:  Time taken for the processes of the business to complete. Machinery:  Equipment required by the business to facilitate or complete the processes. Materials:  The factors of production or supplies required by the business to complete the processes or production. Money:  Money is the financial resource used to purchase machinery, materials, , and pay the employees.

37. MICRO ENVIRONMENT Customers Suppliers Market Intermediaries Partners Every business revolves around fulfilling the customer’s needs and wants. Thus, each marketing strategy is customer oriented that focuses on understanding the need of the customers and offering the best product that fulfills their needs. One provides raw material to produce goods and services. Suppliers can influence the profit of an organization because the price of raw material determines the final price of the product. Organizations need to monitor suppliers on a regular basis to know the supply shortages and change in the price of inputs. These are the firms that benefit the organization to advertise, sell and distribute goods to the absolute buyers . Being in direct touch with customers they can give suggestions about customer’s desires regarding a product and its services. are all the separate entities like a dvertising agencies, market research organisations , banking and insurance companies, transportation companies, brokers, etc. which conduct business with the organisation . EXTERNAL ENVIRONMENT: T he ex ternal environment of the business includes all the forces and factors out side the organisation which affect its marketing operations.

38. MICRO ENVIRONMENT Competition refers to a situation where various organizations offer similar products and try to gain market share by adopting different marketing strategies. So Keeping a close watch on competitors enables a company to design its marketing strategy according to the trend prevailing in the market. Public may hold attention in the business undertakings, and it’s the duty of the organization to please the people at large in addition to competitors and customers. Hence Public relations are surely a vast marketing operation which must be completely taken care of by the company.

39. MACRO ENVIRONMENT Demographic Environment Economic Environment Physical Environment The demographic environment is made up of the people who constitute the market. It is characterised as the factual investigation and segregation of the population according to their size, density, location, age, gender, race, and occupation. The economic environment constitutes factors which influence customers’ purchasing power and spending patterns. These factors include the GDP, GNP, interest rates, inflation, income distribution, government funding and subsidies, and other major economic variables.. The physical environment includes the natural environment in which the business operates. This includes the climatic conditions, environmental change, accessibility to water and raw materials, natural disasters, pollution etc. The technological environment constitutes innovation, research and development in technology. As technology is advancing day by day, the firms have to keep themselves updated so that customers needs can be met with more precision. Technological Environment

40. MACRO ENVIRONMENT Political & Legal Factors Social-Cultural Environment With the change in political parties, several changes are seen in the market in terms of trade, taxes, and duties, codes and practices, market regulations, etc. So the firm has to comply with all these changes and the violation of which could penalize its business operations. The lifestyle, values, culture, prejudice and beliefs of the people. since business operates in a society and has some responsibility towards it must follow the marketing practices that do not harm the sentiments of people. Also, the companies are required to invest in the welfare of general people by constructing public conveniences, parks, sponsoring education, etc.

41. 4 6 1 3 05 2 The Production Concept Marketing Concepts Marketing Concepts The Product Concept The Selling Concept The Marketing Concept The Societal Marketing Concept The Holistic Marketing Concept Marketing Concepts

42. The Production Concept Production Concept: The production concept holds that the consumer prefer the goods which are easily available at lower prices. Therefore, it is necessary to produce in large quantities at lower costs. FEATURES: Production in large volume, at low cost will be acceptable to customers Concentrates on production efficiency May do well in distribution Rarely appreciated by customers Therefore increase production and cut down costs The Product Concept Product concept: It is a belief of the management that consumers favour the products of superior quality, better performance and innovative features. Therefore, successful marketing requires continuous product planning and development and improvement in quality standards. FEATURES: Focuses on design and quality of products Believes that customers will automatically buy products of high quality R&D is essential element Do not bother to study the market & consumer in depth Therefore improves the quality, performance and features.

43. The Selling Concept The Marketing Concept Selling Concept: This concept assumes that consumers will not buy goods voluntarily unless the seller undertakes a large scale selling and promotional efforts. FEATURES: Believes that customers need to be persuaded to buy the products Involves advertising, large scale promotions, publicity, discounts, public relations etc. Does not take care of the need of the customer Therefore promotes sales aggressively Marketing Concept: This concept holds that the primary task of a business firm is to study the needs, desires and the preferences of the potential consumers and produce goods which are actually needed by the consumers. When an organisation practices the marketing concept, all it’s activities are directed to satisfy the consumer. FEATURES: Starts with determination of consumer needs Ends with satisfaction of these needs Organizational activities revolve around customer Products & Services are designed to serve customer need Realizing organizational goals including profits Therefore they love the customer not the product.

44. The Societal Marketing Concept The Holistic Marketing Concept According to this concept , the task of management is to identify and satisfy consumer wants, in conformity with social interests. Firms should not only consider consumer wants and profits but also society interests while making their marketing decision. FEATURES: It is a Marketing concept (+) Society’s well being Balancing of following three considerations while setting marketing policies : Customer’s want satisfaction Society’s well being Company’s profits Therefore it enhances the consumer’s needs and society well being. According to holistic marketing concept , even if a business is made of various departments, the departments have to come together to project a positive & united business image in the minds of the customer. It’s FOUR Components are: Internal marketing – Marketing between all the departments in an organization Relationship marketing – Building a better relationship with your customers, internal as well as end customers is beneficial for holistic marketing. Performance marketing – Driving the sales and revenue growth of an organization holistically by reducing costs and increasing sales. Integrated marketing – Products, services and marketing should work hand in hand towards to growth of the organization. This concept recognizes that “everything matters” with marketing. It involves interconnected marketing activities to ensure that the customer is likely to purchase their product rather than competition.

45. Value Philosophy in Marketing: Value   Value means utility per unit of price. It reflects the relationship of benefits to costs, or what we get for what we give. Value = Benefits - Cost. Value: What consumers get for the what they give up Benefits: what they get Cost: what they give up Marketing is the process by which a firm creates value for its customers . Marketing revolves around value. It is all about creating, communicating, delivering and exchanging products or services that have value for customers and society at large. Value is created by meeting customer needs . Marketing is the delivery of value to customers at a profit. Thus, the two core elements of marketing are value and profit , providing value and generating profit on sustainable basis is a characteristic of the most successful companies, such as Apple and Tesco.

46. Value Philosophy in Marketing: Value from the Customer’s Perspective Value is the ratio of costs (price) to benefits (utilities) Value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself Brand image is a critical component Value from the Seller’s Perspective: Value for the seller takes many forms Making a profitable exchange Earning prestige among rivals Taking pride in doing what a company does well Nonprofits: motivating, educating, or delighting the public Value from Society’s Perspective Marketing transactions and company activities influence the world and add or subtract value from society Stressing ethical or socially responsible decisions is often good business in the long run

47. Value in marketing can be defined by both qualitative and quantitative measures. On the qualitative side, value is the perceived gain composed of individual's emotional, mental and physical condition plus various social, economic, cultural and environmental factors. On the quantitative side, value is the actual gain measured in terms of financial numbers, percentages, and dollars. Marketing creates five types of values. They are functional value, social value, emotional value, epistemic value and conditional value. These may be briefly explained as below:

48. Functional Value: Functional value relates to the product’s or the service’s ability to perform its utilitarian purpose. Reliability, Durability, Speed of service and Price are the attributes of a product. Ex: 1. A car may be judged on its miles per litre or the time to go from zero to sixty miles per hour. 2. In considering the purchase of a laptop computer, customers may compare different models on the basis of weight, battery lifetime, or speed. Social Value: The extent to which owning a product or engaging in a service allows the consumer to connect with others. Ex: 1. Boutique clothing stores often try to convey a chic or trendy environment so that customers feel that they are on the cutting edge of fashion. 2. Rolex watches try to convey the sense that their owners are members of an economic elite Emotional value: is derived from the ability to evoke an emotional or an affective response . This can cover a wide range of emotional responses. Ex: Food companies and restaurants may wish to stimulate childhood memories or the comfort associated with a home-cooked meal. Epistemic value is generated by a sense of novelty or simple fun, which can be derived by inducing curiosity or a desire to learn more about a product or a service. Ex: a sense perception or memory

49. Conditional value is derived from a particular context or a sociocultural setting. Ex: For the vast majority of Americans, Thanksgiving means eating turkey with the family. Supermarkets and grocery stores recognize this and increase their inventory of turkeys and other foods associated with this period of the year. Value Creation and Delivery In any marketing situation, one can discern four distinct steps in the value providing process: Value selection. Value creation/value delivery Value communication (making a value proposition and communicating it.) Value enhancement. Marketing planning, buyer analysis, market segmentation and targeting are concerned with value selection. Product development, manufacturing, service planning, pricing, distribution and servicing, are concerned with value creation & value delivery. Personal selling, advertising, publicity and sales promotion are concerned with value communication. Activities like market research and market control assess the effectiveness of the value delivery process, the level of satisfaction the customer has actually received for the purpose of enhancing value.

50. Value Creation and Delivery Value creation: Creating value from their resources into something valuable to others. Value creation is any process that creates outputs that are more valuable than its inputs. This is the basis of efficiency and Productivity. Ex: A farmer uses land, equipment, water, labour, sunlight and seeds to grow onions. This process creates value from resources. Value delivery is the manner in which you design your products such that it gives maximum value to the customer using it. The value delivered to customers can be in the form of products, benefits, attributes etc. Anything which creates value for your customer should be involved in your value delivery process.

51. THE VALUE DELIVERY PROCESS Marketing affects customer value. Successful marketers must focus on delivering value to customers at a profit. This is accomplished by fine tuning the value delivery process The value delivery process begins before there is a product and continues through development and after launch.

52. Upstream Marketing V/S Downstream Marketting Upstream marketing is a type of marketing strategy that focuses on a specific group of customers and identifies their particular needs. Downstream Marketing solidifies marketing stratergy. it identifies the ads, branding, promotion, and communication stratergies use to sell the product. Upstream marketing focuses on creating long-term goals and considers the future of the business. In contrast, downstream marketing looks at current customer needs and sets goals that are reachable in a short period of time. Value Innovation: Value innovation is  a process in which a company introduces new technologies or upgrades that are designed to achieve both product differentiation and low costs . ... The goal of value innovation is to create new demand and change the market enough to render the competition irrelevant in that market.

53. CO-CREATION OF VALUE Co-creation of value is a business strategy, one that promotes and encourages active involvement from the customer to create on-demand and made-to-order products. Co-creation is a marketing strategy based on consumer values. Customers use different forums to share ideas and problem faced and their knowledge for product improvement. This in turn, creates an additional value to the product. Personalized experience and loyalty to the product increases its value . This also affords an opportunity to the manufacturer to earn higher profits.

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