Principles of Marketing: Unit No. 1: Important notes for FYBBA students for Principles of Marketing

Important notes for FYBBA students for Principles of Marketing

1. BBA-IB Semester- II 204- Principles of Marketing Prepared by, Prof. Mayuri Londhe Sanjivani Arts, Commerce and Science College Dept. of BBA-IB

2. Unit-I Concepts and Functions of marketing Marketing concepts, its objectives, importance and functions of marketing . Various approaches of marketing Challenges and opportunity of marketing manager in international market

3. Marketing: Marketing is about identifying and meeting human and social needs. Marketing refers to  activities a company undertakes to promote the buying or selling of a product or service . Marketing includes: advertising , selling , To consumers or other businesses. and delivering products Marketing  is the process of exploring, creating, and delivering value to meet the needs of a  target market  in terms of goods and services;  potentially including selection of a target audience .

4. Objectives of marketing: 1. The objective of customer satisfaction (customer objectives) 2. The objective of reasonable profit to the company (company objectives). 3. The objective of social good (social objectives). Thus it can be said that marketing today has threefold objectives; that of satisfying customer needs at a profit to the company and benefit to the society .

5. CUSTOMER OBJECTIVES COMPANY OBJECTIVES SOCIAL OBJECTIVES (a) To locate the present and potential needs of the customers. (a) To carry out the right kind of research activity so as to ensure production of need based products To create consciousness in the customer about those needs, the satisfaction of which will give a benefit to the society at large. (b) To create time, place and possession utilities in the goods to satisfy human wants (b) To make the right kind of goods available at the right time, at the right place, in the required quantities and at the right price b) To widely publicise and promote social causes and issues. (C) To create satisfied customers. (c) To create satisfied customers so as to ensure their continued patronage to the company and its products

6. Importance of marketing : Benefits for manufacturer/ individual firm Benefits for the society 1. Helping in earning and increasing profits 1. Marketing is instrumental in improving the standard of living of society. 2. Helpful in business planning and decision making 2. It provides employment 3. Marketing is source of new ideas 3. Marketing stabilizes the economic conditions 4. Marketing places the goods in the hands of the ultimate consumer 4 . Marketing increases National Income.

7. Functions of marketing: Functions of Exchange Functions of Physical Supply Facilitating Functions Buying and assembling selling Transportation Storage Standardization and grading Branding, Packaging and Labeling Insurance Financing Marketing information Risk bearing Advertising Market research

8. 1. Functions of Exchange: (a) Buying and assembling Buying: Sub functions of buying Estimating the demand Selection of Consumer oriented goods Selection of supplier Negotiation Entering into a contract Assembling: (b) Selling: Product planning and development Creation of demand Establishing contact with the buyer Negotiations Entering into a contract

9. 2. Functions of Physical Supply Transportation Facilitate production Facilitate the growth of markets for perishable products It creates place utility Transportation rises the standard of living of the people Equalizing prices Provides employment opportunities Modes of Transport A. Land Transport i ) Road Transport ii) Railway Transport B. Water Transport C. Air Transport (b) Storage or Warehousing

10. 3. Facilitating Functions: F acilitation can help a group improve how they work together, identify and solve problems, make decisions, and handle conflict. The role of the facilitator is to guide the group to work together more efficiently by creating synergy, generating new ideas, and arriving at agreement . Standardization and grading Standardization The marketing of products sold internationally may be standardized to keep a uniform image among the various markets. For example, COCA-COLA Company uses global standardization in marketing by keeping the appearance of the product relatively unchanged between different markets. G rading It refers to the process of dividing products into classes made up of units possessing similar characteristics .  It involves division of products into classes,lots or groups in accordance with predetermined grades of quality. Grading helps in fixing and securing the prices for the products

11. (b) Branding, Packaging and Labelling Branding : Branding is an activity that includes giving a name and identification to a product. Branding includes activities like giving -the product a brand name, -a brand mark and -also popularizing the product. Branding gives an identity to the product. Identity is essential to competition, because without a means of identification there is no way of making a choice . Branding definitely facilitates in making a choice . Brand : A brand is a name, symbol, term or design or a combination of all these which is intended to identify the goods or services of one seller or a group of sellers and to differentiate them from those of the competitors. F or example: pears soap, dove soap etc .

12. Brand Name and Brand Mark : Brand name is a part of the brand consisting of a word or a group of words or letters. A brand name is one which can be pronounced or vocalized. Brand mark is a part of the brand that constitutes a symbol, mark or design. It is that part which can be recognized and not pronounced, e.g. the symbol of the Wheel on the Wheel soap bar, the symbol of Maharaja of Air India. Trade Mark: When a brand name is registered and legalized it becomes a trade mark. Thus registered trade marks are brands. From this, we can come to the conclusion that all trade marks are brands but all brands are not trade marks. Trade mark is a legal term protecting the right of the manufacturer to use the brand name or brand mark

13. C. Insurance Insurance  is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management , primarily used to give security against the risk of a uncertain loss. Importance of Insurance : Transfer of Risk: The risk of business losses can be transferred to the Insurance Companies against the payment of a small amount known as 'insurance premium Protection : In the event of a business loss the insurance company makes up for the goods lost. Thus the businessman is protected from the worry of loss or damage. Stable Prices: Insurance protects a businessman from the risk of price fluctuations. If there is a loss it is absorbed by the insurance company. In the absence of insurance every time a businessman suffers a loss, he will increase the price of the product to make good his loss, thus resulting in drastic price fluctuations .

14. (4) Assured Profits: It is insurance that assures normal profits to the businessmen; as losses are absorbed by the insurance company, even in the event of a loss the businessman can enjoy normal profits. (5) Specialization : Insurance companies have the ability to shoulder the risk in a professional manner thus leaving the businessman free to carry out his duty of production and distribution of goods. (6) Financial Assistance: Insurance helps a businessman in raising finance as banks do not hesitate in giving loans against insured property. (7) Minimizing Risk: There is no way to avoid risk completely. However, insurance spreads the risk between a number of parties and thus the individual risk is minimized . (8) Industrial Development: Insurance companies invest their funds in shares and debentures of companies. Thus, they help in the industrial development of a country. Therefore, insurance is an important facilitating function to be performed.

15. d) Financing: Financing is  the process of providing funds for business activities, making purchases, or investing . Financial institutions, such as banks, are in the business of providing capital to businesses, consumers, and investors to help them achieve their goals . The process of arranging finance for a business is known as business finance. The process of arranging finance for marketing is known as Marketing finance . Fixed Capital Fixed capital are  assets of a business that are permanent in nature and are not intended to be disposed of by a business . These assets include land, buildings, plant, machinery, fixed equipment, furniture, fixtures, vehicles, livestock, etc. Working Capital working capital refers to cash or other liquid assets that an organization uses to finance day-to-day operations such as payroll and bill payments . Also known as Circulating or revolving or floating capital. e)Marketing information: Marketing Information means all information relating to the marketing of any products or services, including customer names and lists, sales targets, sales statistics, market share statistics, marketing surveys and reports, marketing research

16. f) Risk bearing Marketing risk means uncertainty, loss or damages arising out of unforeseen causes while undertaking the activities of marketing. Economic Risks- -Time Risk -Place Risk -Competition Risk Political risks (Government intervention) Physical Risks (breakage) Natural Risks (rain, flood, Earthquake) Human Risks (Unethica l behavior, sickness, death of employee) g) Advertising: Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponcer . Definition: the physical means where a manufacturer or supplier of goods utilities or services tell the consumer about his products or services.

17. h) Market research i ) Factual Survey House to house enquiry or personal interview Investigation through the post or mail survey Telephone survey Ii) Observation Method Iii) Experimentation method Iv) The panel research

18. A pproaches of marketing: Traditional concept Production Oriented Marketing (Till 1930) Sales Oriented Marketing (After 1930) Modern Concept i ) consumer Oriented Marketing (1950) ii) Socially Oriented Marketing (1960-1970)

19. Challenges And Opportunity of marketing manager in international market : Qualities of a Marketing Manage r Physical qualities Mental qualities Political qualities Social qualities Moral qualities

20. 2. Duties , Responsibilities and role of marketing manager: To be on the lookout for marketing opportunities To determine marketing plans, policies and procedures in consultation with managing director. Evolving a marketing mix for each market segment. Supervision and control over sales manager, advertising manager, product manager distribution manager, and any other managers who are directly responsible for implementing and expanding the marketing program of the company. Developing and expanding existing markets. Negotiating transactions with major suppliers and intermediaries. Development of new products, new markets, new channels, new innovations etc. in the field of marketing Making modifications in the marketing plans, policies and procedures. Controlling marketing costs. Selection , management and control of the channels of distribution. Formulation of marketing strategies Undertaking consumer and public relations Integrating all marketing activities.

21. 3. Challenges Faced by Marketing Manager Generating Awareness and driving traffic Targeting Effectively Using social media to generate customers and revenue keeping up with market trends and Strategies ROI