UGC NET/JRF/SET

MARKETING FOR PAPER 2 & 3 OF COMMERCE AND MANAGEMENT

UGC NET/JRF/SET

MARKETING FOR PAPER 2 & 3 OF COMMERCE AND MANAGEMENT

MEGHA AGARWAL

Notion Press Old No. 38, New No. 6 McNichols Road, Chetpet Chennai - 600 031 First Published by Notion Press 2017 Copyright © Megha Agarwal 2017 All Rights Reserved. ISBN 978-1-948096-17-1 This book has been published with all reasonable efforts taken to make the material error-free after the consent of the author. No part of this book shall be used, reproduced in any manner whatsoever without written permission from the author, except in the case of brief quotations embodied in critical articles and reviews. The Author of this book is solely responsible and liable for its content including but not limited to the views, representations, descriptions, statements, information, opinions and references [“Content”]. The Content of this book shall not constitute or be construed or deemed to reflect the opinion or expression of the Publisher or Editor. Neither the Publisher nor Editor endorse or approve the Content of this book or guarantee the reliability, accuracy or completeness of the Content published herein and do not make any representations or warranties of any kind, express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose. The Publisher and Editor shall not be liable whatsoever for any errors, omissions, whether such errors or omissions result from negligence, accident, or any other cause or claims for loss or damages of any kind, including without limitation, indirect or consequential loss or damage arising out of use, inability to use, or about the reliability, accuracy or sufficiency of the information contained in this book.

CONTENTS Prefacevii Syllabus of Marketing for Paper 2, 3 of UGC NET Commerce and Management

ix

UNIT – 1 INTRODUCTION Chapter – 1: Basics of Marketing

3

Chapter – 2: Consumer Behaviour

14

Chapter – 3: Market Segmentation

24

UNIT – 2 MARKETING MIX Chapter – 4: Product33 Chapter – 5: Pricing

52

Chapter – 6: Place

59

Chapter – 7: Promotion

74

PREFACE This book has been exclusively designed according to UGC NET/JRF COMMERCE and MANAGEMENT pattern of marketing. All the best!!

SYLLABUS OF MARKETING FOR PAPER 2, 3 OF UGC NET COMMERCE AND MANAGEMENT COMMERCE The evolution of marketing, Concepts of marketing, Marketing mix, Marketing environment. Consumer behaviour, Market segmentation, Product decisions, Pricing decisions, Distribution decisions, Promotion decisions, Marketing planning, Organising and Control. Marketing Tasks, Concepts and Tools, Marketing Environment. Consumer Behaviour and Market Segmentation. Product decisions, Pricing decisions, Distribution decisions, Promotion decisions. Marketing Research, On-line marketing, Direct Marketing; Social, ethical and legal aspects of marketing in India. EXPECTED NUMBER OF QUESTIONS: PAPER 2 – 5 Questions (approx.) PAPER 3 – 5+7=12 Questions (approx.)

MANAGEMENT Marketing Environment and Environment Scanning; Marketing Information Systems and Marketing Research; Understanding Consumer and Industrial Markets; Demand Measurement and Forecasting; Market Segmentation –

Syllabus of Marketing for Paper 2, 3 of UGC NET Commerce and Management

Targeting and Positioning; Product Decisions, Product mix, Product Life Cycle; New Product Development; Branding and Packaging; Pricing Methods and Strategies. Promotion Decisions – Promotion mix; Advertising; Personal Selling; Channel Management; Vertical Marketing Systems; Evaluation and Control of Marketing Effort; Marketing of Services; Customer Relation Management; Uses of Internet as a Marketing Medium – Other related issues like branding, market development, Advertising and retailing on the net. New issues in Marketing. Marketing – Concept; Nature and Scope; Marketing myopia; Marketing mix; Different environments and their influences on marketing; Understanding the customer and competition. Role and Relevance of Segmentation and Positioning; Static and Dynamic understanding of BCG Matrix and Product Life Cycle; Brands – Meaning and Role; Brand building strategies; Share increasing strategies. Pricing objectives; Pricing concepts; Pricing methods. Product – Basic and Augmented stages in New Product Developments, Test Marketing Concepts. Promotion mix – Role and Relevance of advertising. Sales promotion – media planning and management. Advertising – Planning, execution and evaluation. Different tools used in sales promotion and their specific advantages and limitations. Public Relations – Concept and Relevance. Distribution channel hierarchy; Role of each member in the channel; Analysis of business potential and evaluation of performance of the channel members. Wholesaling and Retailing – Different types and the strengths of each one; Emerging issues in different kinds of retailing in India. Marketing Research – Sources of Information; Data Collection; Basic Tools used in Data Analysis; Structuring a Research Report. Marketing to Organisations – Segmentation Models; Buyer behaviour models; Organisational, buying process. Consumer Behaviour theories and models and their specific relevance to marketing managers. Sales Function – Role of technology in automation of sales function Customer relationship management including the concept of ‘Relationship Marketing.’ Use of internet as a medium of marketing; Managerial issues in reaching consumers, organisation through internet. Structuring and managing marketing organisations. Export Marketing – Indian and global context. EXPECTED NUMBER OF QUESTIONS: PAPER 2 – 5 Questions (approx.) PAPER 3 – 5+7=12 Questions (approx.) x

UNIT – 1

INTRODUCTION

Chapter – 1

BASICS OF MARKETING Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably.” Dr. Philip Kotler defines Marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential.” The American Marketing Association offers the following formal definition, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” What Is Marketed? Marketers market 10 main types of entities: 1. Goods: Physical goods such as cars, refrigerators, televisions, machines, food products. 2. Services: Services include the work of airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, and accountants, bankers, lawyers, engineers, doctors, software programmers, and management consultants. Many market offerings mix goods and services, such as a fast-food meal. 3. Events: Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics and the World Cup are promoted aggressively to both companies and fans.

UGC NET/JRF/SET Marketing for Paper 2 & 3 of Commerce and Management

4. Experiences: Experiences include visit to a fairy kingdom, a pirate ship, or a haunted house, amusement parks, Disneyland etc. 5. Persons: Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other professionals all get help from celebrity marketers. Some people have done a masterful job of marketing themselves – David Beckham, Oprah Winfrey etc. 6. Places: Cities, states, regions, and whole nations compete to attract tourists such as Atithi devo bhava is India’s tag line, Malaysia truly asia etc. 7. Properties: Properties are intangible rights of ownership to either real property (real estate) or financial property (stocks and bonds). They are bought and sold, and these exchanges require marketing. Real estate agents work for property owners or sellers, or they buy and sell residential or commercial real estate. 8. Organizations: Organizations work to build a strong, favourable, and unique image in the minds of their target publics such as Reliance Jio which aims at digital India initiative. 9. Information: The production, packaging, and distribution of information are major industries. Information is essentially what books, schools, and universities produce, market, and distribute at a price to parents, students, and communities. 10. Ideas: Every market offering includes a basic idea such as Make in India, Clean Delhi Green Delhi etc.

NEEDS, WANTS AND DEMANDS Needs: They are the basic human requirements such as for air, food, water, clothing, and shelter. We can distinguish following five types of needs with an example: 1. Stated needs: The customer wants an inexpensive car. 2. Real needs: The customer wants a car whose operating cost, not initial price is low. 3. Unstated needs: The customer expects good service from the dealer. 4. Delight needs: The customer would like the dealer to include an onboard GPS navigation system. 5. Secret needs: The customer wants friends to see him or her as a savvy consumer. 4

Megha Agarwal

Wants: These needs become wants when they are directed to specific objects that might satisfy the need. Demands: They are wants for specific products backed by an ability to pay. Eight demand states are there in marketing: 1. Negative demand: Consumers dislike the product and may even pay a price to avoid it such as we pay a price to avoid headache. 2. Non-existent demand: Consumers may be unaware of or uninterested in the product. 3. Latent demand: Consumers may share a strong need that cannot be satisfied by an existing product. 4. Declining demand: Consumers begin to buy the product less frequently or not at all. 5. Irregular demand: Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. 6. Full demand: Consumers are adequately buying all products put into the marketplace. 7. Overfull demand: More consumers would like to buy the product than can be satisfied. 8. Unwholesome demand: Consumers may be attracted to products that have undesirable social consequences such as smoking cigarettes, drinking alcohol etc.

TYPES OF MARKET Types of market according to demand are as follows: •

•

The potential market is the set of consumers with a sufficient level of interest in a market offer. However, their interest is not enough to define a market unless they also have sufficient income and access to the product. The available market is the set of consumers who have interest, income, and access to a particular offer. The company or government may restrict sales to certain groups; a particular state might ban motorcycle sales to anyone under 21 years of age. Eligible adults constitute the qualified available market-the set of consumers who have interest, income, access, and qualifications for the market offer. 5

Marketing Management for UGC NET/ JRF  Commerce and Management has been primarily designed for UGC NET/JRF commerce and management students and covers the marketing unit of their subject for paper II and III. It comprehensively covers all major, important topics of Philip Kotler, Kevin Lane Keller starting from the basics of marketing and covering product, price, place, promotion and theories of consumer behavior according to the latest pattern of UGC NET exam.

Megha Agarwal is a NET/JRF qualified faculty in management as well as BBA, MBA, M.Com. She is an aspiring Ph.D. in marketing.

Price 170