(Useful for Various Competitive Exams., Especially for Banking Services)

By Dr. L. N. Koli (D.Lit.) & Prem Koli (NET/M.Phil)

Revised Edition

UPKAR PRAKASHAN, AGRA–2

© Publishers Publishers UPKAR PRAKASHAN (An ISO 9001 : 2000 Company)

2/11A, Swadeshi Bima Nagar, AGRA–282 002 Phone : 4053333, 2530966, 2531101 Fax : (0562) 4053330, 4031570 E-mail : [email protected] Website : www.upkar.in Branch Offices 4845, Ansari Road, Daryaganj, New Delhi—110 002 Phone : 011–23251844/66

1-8-1/B, R.R. Complex (Near Sundaraiah Park, Adjacent to Manasa Enclave Gate), Bagh Lingampally, Hyderabad—500 044 (A.P.) Phone : 040–66753330

Pirmohani Chowk, Kadamkuan, Patna—800 003 M. : 9334137572

● The publishers have taken all possible precautions in publishing this book, yet if any mistake has crept in, the publishers shall not be responsible for the same. ● This book or any part thereof may not be reproduced in any form by Photographic, Mechanical, or any other method, for any use, without written permission from the Publishers. ● Only the courts at Agra shall have the jurisdiction for any legal dispute.

ISBN : 978-81-7482-874-3

Price : 99·00 (Rs. Ninety Nine Only) Code No. 1645

Printed at Repro Knowledgecast Limited, Thane

Contents

1.

Marketing : Nature, Scope and Importance ………………………...…………

3–10

2.

Marketing Concept……………………………….……………………………

11–15

3.

Marketing Mix…………………………………………………………………

16–24

4.

Marketing Environment………………………..………………………………

25–33

5.

Market Segmentation……………………………………...……………………

34–41

6.

Buyer Behaviour……………………………………………………….………

42–51

7.

Product Life Cycle…………………………………………..…………………

52–66

8.

Pricing…………………………………………………………………………

67–75

9.

Advertisement…………………………………………………………………

76–83

10.

Sales Management…………………………………..…………………………

84–95

11.

Personal Selling………………………………………..………………………

96–102

12.

Marketing Planning…………………………………………………………… 103–110

13.

Sales Promotion…………………………………………………..…………… 111–119

14.

Channels of Distribution……………………………………………………… 120–129

15.

Modern Marketing…………………………………………..………………… 130–140

16.

Bank Marketing………………………………………………………..……… 141–152

MARKETING KNOWLEDGE

1

Marketing : Nature, Scope and Importance Definitions of Marketing

1. “Marketing is the managerial Process by which products are matched with markets and through which transfers of ownership are affected.” —Cundiff, Still and Govoni 2. “Marketing is a Social and Managerial Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” —Kotler and Armstrong 3. “Marketing is a total system of business activities designed to plan, Price, Promote and distribute want-satisfying Products to target markets to achieve organisational objectives.” —Stanton, Etzel and Walker 4. “Marketing is the Process of Planning and executing the Conception, Pricing, Promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.” —American Marketing Association 5. “Marketing is the management function which organises and directs all those activities involved in assessing and converting Customer Purchasing Power into effective demand for a Specific Product or Service and in moving the Product or Service to the Final Consumer or user so as to achieve the Profit target or other objectives set by a Company.” —Council of the Institute of Marketing

Nature of Marketing 1. Marketing is a human activity. 2. Marketing is a Social-economic activity. 3. The subject matter of marketing is a Product or Service. 4. Certain market is must for marketing. 5. Marketing is Consumer-oriented Process.

6. There must be two parties—Marketor and Consumer. 7. Exchange is the basis of marketing. 8. Marketing involves the various functions like— (i) Marketing Research (ii) Advertisement (iii) Sales Promotion (iv) Personal Selling (v) Product Planning (vi) Product Development (vii) Storing of Material (viii) Distribution (ix) Pricing (x) Publicity (xi) Sales Planning (xii) Packaging 9. Marketing is an art and Science. 10. Marketing is an Universal activity. 11. Marketing is a Social based Concept. 12. Marketing involves the following modern branches of marketing— (i) Social Marketing (ii) Green Marketing (iii) Rural Marketing (iv) Online Marketing/Internet Marketing (v) Digital Marketing.

Subject-matter of Marketing As per Philip Kotler, the subject-matter of marketing includes— 1. Goods 2. Services 3. Experience 4. Events 5. Persons 6. Place 7. Properties/Assets 8. Organisation 9. Information and Knowledge 10. Ideas.

4A | Marketing

Scope of Marketing 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29.

Analysis of Market Market Research Sales Research Product Research Advertising Research Sales technique Sales Policy Buying Motive Research Advertisement Sales Promotion Personal Selling Publicity Marketing Research Sub-markets Market Segmentation Product Planning Product Development Product Simplification Product diversification Packaging Labelling Pricing Valuation of product and price Cost benefit analysis Financing Risk bearing Physical distribution Transportation Selling

30. 31. 32. 33. 34. 35.

Assembling function Inventory management Storage Wharehousing Branding Packing.

Importance of Marketing 1. Helpful in obtaining physical distribution channel 2. Maximum Profit 3. Innovation 4. Reduction in Per Unit Cost 5. Large Production 6. Maximum Sales 7. Production of goods as per the requirement of the Customer 8. Creation of goodwill 9. Development of the organisation 10. Increase the living Standard of the Consumer 11. Durable technical goods 12. Increase in Knowledge and Skill 13. Market Information 14. Goods available on Fair Price 15. Increase in employment 16. Protection of Social values 17. National Income 18. Increase in National Production 19. Optimum uses of national resources 20. Growth in Net Revenue.

Objective Questions 1. Which of the following is a part of marketing ? (A) The Process of Creating Pricing (B) Distribution (C) Promotion (D) All of these (E) None of these 2. Marketing involves— (A) Product (B) Programme (C) Project (D) Problem (E) None of these

3. Marketing is— (A) A total system of interacting business activities designed to plan, price, promote and distribute want satisfying Products and Services to Present and Potential Customers (B) A system of Production (C) A system of Accounting (D) A Product (E) All of these 4. Which is the essential of marketing ? (A) Marketing is a human activity (B) Marketing is a Product

Marketing | 5A (C) Marketing is a Knowledge (D) All of these (E) None of these 5. Marketing includes— (A) Consumer-oriented Process (B) Certain market (C) Socio-economic activity (D) All of these (E) None of these 6. Which is the functions of marketing ? (A) Pricing of goods and services (B) Promotion (C) Marketing Research (D) Product Development (E) All of these 7. What is the basis of marketing ? (A) Exchange (B) Net Sales and Net Profit (C) Profit (D) Packaging (E) All of these 8. Marketing is required in banks due to— (A) Computerisation (B) Increase in population (C) Globalisation (D) Government dictates (E) None of these 9. Marketing is a Social-economic activity because— (A) Marketing is related with Social Staisfaction (B) It is a Social Person (C) It is a Corporate Citizen (D) All of these (E) None of these 10. Certain market means— (A) The place where functions of marketing is exercised (B) Future market (C) Present market (D) All of these (E) None of these

11. In stock market— (A) Shares are purchased and sold (B) Stock are kept (C) Capital is disposed (D) All of these (E) None of these 12. Which is the activity of stock market ? (A) Fruits are purchased and sold (B) Production (C) Share and debendtures are purchased and sold (D) Financing (E) Accounting 13. In Bullion market— (A) Books are purchased (B) Production (C) Golds are purchased and sold (D) Investment are made (E) All of these 14. DMA stands for— (A) Digital Market Area (B) Demand Money Area (C) Designated Market Area (D) Designated Money Activity (E) None of these 15. Marketing is— (A) An Art and Science (B) An Art (C) A Science (D) A Science and Accounting (E) None of these 16. Which is the subject matter of Marketing ? (A) Machine, man and money (B) Product or Service (C) Capital (D) Brand (E) Place 17. Marketing is— (A) a day to day function (B) a one-off affair

6A | Marketing (C) a one man show (D) a collective process (E) None of these 18. Which is the subject Matter of marketing ? (A) Man (B) Labour (C) Planning (D) Word (E) Goods and Services 19. Rural Marketing is related to— (A) Book (B) Car (C) Rural product like–Agricultural tools (D) Mobile (E) T.V. 20. Which is the feature of Rural Market ? (A) Number of Consumer (B) High Income (C) Educated Population (D) High Living Standard (E) None of these 21. Which is the correct matching ? (A) Organisation—World Trade Organisation and RBI (B) Properties—Issue Houses (C) Place—Jaipur (D) ATM—Bank (E) All of these

24. Who is the Potential Customer of the Bank ? (A) A Person who want to take loan from the Bank (B) A Staff of Bank (C) A Manager of Bank (D) Present Customer (E) All of these 25. The market analysis function includes— (A) Purchasing Power of Consumer (B) Consumer’s Income (C) Study of the market environment (D) All of these (E) None of these 26. Which is the assembling product ? (A) Motor Car or Buses (B) Motor Cycles (C) Buses (D) Cycles (E) All of these 27. The exchange function of marketing involves— (A) Buying of Product or Services (B) Assembling (C) Selling (D) All of these (E) None of these

22. Marketing starts and ends with— (A) Certain Market (B) Consumer (C) Advertising and Sales Promotion (D) Selling (E) Purchasing

28. Which is the function of Physical distribution ? (A) Transportation (B) Inventory Management (C) Warehousing or Storage (D) All of these (E) None of these

23. Who is the Customer of the Bank ? (A) An account holder (B) A Loan holder (C) A Fixed deposit holder (D) All of these (E) None of these

29. Marketing includes— (A) Branding (B) Standardisation and grading (C) Packing (D) Packaging (E) All of these

Marketing | 7A 30. Which is the branding of Bank ? (A) Fixed deposits or Term deposits (B) Personal Loan (C) Mutual Fund (D) All of these (E) None of these 31. After Sales Service means— (A) To help in Product utilisation (B) Production (C) Payment (D) Investing (E) Merging 32. Which is the benefit of Marketing ? (A) Maximum Production and Sales (B) Reduction in Per Unit Cost (C) Maximum Profit (D) All of these (E) None of these 33. Innovation means— (A) Introduction of new product (B) Management (C) Budgeting (D) Cost (E) All of these 34. Which is the new product of the Bank ? (A) ATM (B) International Debit Card (C) Credit Card (D) All of these (E) None of these 35. Marketing is important for bank customer, in which area— (A) Available of bank loan at fair rate of interest (B) Knowledge of banking market (C) Knowledge of banking’s new product (D) All of these (E) None of these 36. The market information includes— (A) Product available in the market (B) News about new product (C) Knowledge of Product Price

(D) All of these (E) None of these 37. Which is the sources of market information ? (A) Advertisement (B) Salesman or Personal Selling (C) Satisfied Customer (D) All of these (E) None of these 38. Which is the information about the bank ? (A) Rate of Interest on Loan (B) Rate of Interest on Savings (C) New Product of Bank (D) All of these (E) None of these 39. Marketing should be resorted— (A) Only among rich persons (B) Depends on the product (C) Only among the poor (D) Only in crowded areas (E) Depends on the banks 40. Which is the benefits of marketing to the nation ? (A) Increase in the national production (B) Government Income (C) Utility of national resources (D) All of these (E) None of these 41. Today, market is— (A) Buyer or Consumer or Customer’s market (B) Seller (C) Business (D) Government (E) Law 42. The Old Market was— (A) Buyer or Consumer’s Market (B) Law (C) Seller’s Market (D) All of these (E) None of these 43. Marketing comprises— (A) Buying and Production (B) Production

8A | Marketing (C) Buying and Selling activities (D) Auditing (E) Harvesting 44. ………… includes activities involved in the flow of goods and services from Production to Consumption. (A) Product planning and Product innovation (B) Marketing (C) Selling (D) Pricing (E) Cost 45. Which is the risk for marketing ? (A) Product (B) Customer (C) Change in the demand of goods (D) Brand (E) Value 46. ………… is the managerial Process by which Products are matched with markets and through which transfers of ownership are affected. (A) Accounting (B) Financial planning and management (C) Marketing (D) Advertisement (E) Sales 47. Marketing is an Integreted System of action that creates values in goods through its creation of form, place, time and— (A) Ownership utilities (B) Marketing Research and Planning (C) Promotion (D) Brand (E) All of these 48. Marketing is the— (A) product (B) programme (C) set of human activities (D) demand (E) All of these 49. Which is the Correct Code about the marketing ?

(A) (B) (C) (D) (E)

P = Product P = Planning for maximum Production C = Cost P = Path P = Problem

50. Social marketing— (A) Is a social product (B) Is a social transaction (C) Is the design, implementation and control of programmes. Seeking increase the acceptability of a social idea or practice in a target group (D) Is a technique (E) All of these 51. Which is the P of Marketing ? (A) Permanent problem of the organisation (B) Place (C) Premium (D) Programme (E) All of these 52. Which is the source of marketing development ? (A) Product orientation (B) Sales orientation (C) Management orientation (D) All of these (E) None of these 53. ESP stands for— (A) Email Service Provider (B) Economic Save Problem (C) Economic Service Provider (D) Economic Safety Production 54. In Consumer-orientation, bank considered— (A) Bank customer’s need (B) Bank customer’s requirement (C) Bank customer’s attitude (D) All of these (E) None of these 55. The object marketing— (A) Is maximum sales (B) Is maximum production

Marketing | 9A (C) As of all production activities is to supply human wants (D) Is orientation (E) All of these 56. Marketing— (A) Produce the Product or Service (B) Distribution (C) Supply the Product to the Consumer (D) Selling (E) All of these 57. The nature of marketing involves— (A) After sale Service (B) Promotion decision (C) Determination of Distribution channel (D) All of these (E) None of these 58. ATM Centre of the bank is a means of— (A) Direct marketing (B) Indirect marketing (C) Negative marketing (D) All of these (E) None of these 59. Consumer is the ……… of market. (A) King (B) Producer or manufacturer (C) Creator (D) Capitalist (E) Socialist 60. Which is the function of determination of Product Policy ? (A) Colour of Product (B) Size and design of Product or Service (C) Brand (D) Trade mark (E) All of these 61. Who is the king of bank’s market ? (A) Bank’s Customer (B) Bank’s Managing Director (C) Bank’s Staff (D) Bank’s C.A. (E) None of these

62. Who is the part of the channel of distribution ? (A) Sales Traveller (B) Distributor agent or Agent (C) Retailer (D) Wholesaler (E) All of these 63. What is after sale service of the bank ? (A) To pay the loan (B) To provide Job (C) To make the payment after or on maturity of Fixed deposits (D) To provide loan (E) All of these 64. Which is the function of marketing ? (A) Contractual (B) Commercialization and Publicity (C) Pricing (D) Physical distribution (E) All of these 65. Blog is a term of— (A) Internet Marketing (B) Digital Marketing (C) Social Marketing (D) Green Marketing (E) All of these 66. Which the function of marketing— (A) Branding and Packing (B) Production (C) Costing (D) Recording (E) None of these 67. An advertisement that appears on a web page is called— (A) Blog (B) Banner Ad (C) Spam (D) Message (E) None of these 68. Bank risk is related with— (A) Non-performing assets (B) Deposits

10A | Marketing (C) Fund (D) Service (E) All of these 69. Which is the financing activity of the bank ? (A) Funding to the Customer (B) Bank Credit (C) Bank Advance (D) All of these (E) None of these 70. Which is the decision of marketing ? (A) Promotion decision (B) Nature and Scope of marketing (C) Marketing (D) Information (E) All of these

Answers 1. (D) 6. (E) 11. (A) 16. (B) 21. (E) 26. (E) 31. (A) 36. (D) 41. (A) 46. (C) 51. (B) 56. (C) 61. (A) 66. (A)

2. (A) 7. (A) 12. (C) 17. (D) 22. (B) 27. (D) 32. (D) 37. (D) 42. (C) 47. (A) 52. (D) 57. (D) 62. (E) 67. (B)

3. (A) 8. (C) 13. (C) 18. (E) 23. (D) 28. (D) 33. (A) 38. (D) 43. (C) 48. (C) 53. (A) 58. (A) 63. (C) 68. (A)

4. (A) 9. (A) 14. (C) 19. (C) 24. (A) 29. (E) 34. (D) 39. (B) 44. (B) 49. (A) 54. (D) 59. (A) 64. (E) 69. (D)

5. (D) 10. (A) 15. (A) 20. (A) 25. (D) 30. (D) 35. (A) 40. (D) 45. (C) 50. (C) 55. (C) 60. (E) 65. (B) 70. (A)

2 Marketing concept is a customer-oriented Philosophy that is implemented and integrated throughout an organisation to serve customers better than competitors and achieve specified goals.

Definitions of Marketing Concept 1. “Marketing concept emphasises customers orientation and coordination of marketing activities to achieve the organisation’s performance objectives.” —Etzel and Walker 2. “Marketing concept is the marketing management Philosophy that holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits.” —Philip Kotler and Armstrong 3. “Marketing conept is a Company wide Consumer-orientation with the objective of achieving long run success.” —Lawrence A.K. 4. “Marketing concept is an integration of marketing activities direct towards customer satisfaction.” —Robert F. Hartley

Element of Marketing Concept 1. 2. 3. 4. 5.

Consumer Protection Marketing of Services Marketing of Products Marketing of product with coordinated efforts Goal of the organisation related to marketing.

Example of Marketing Concept 1. 2. 3. 4. 5. 6.

Customer is a king of market. Customer is a boss of market. We sells the faith. Your satisfaction is our profit Your satisfaction is our aim. We loves customer, not products.

Marketing Concept 7. 8. 9. 10. 11. 12.

We shares your problem. Your satisfaction is our satisfaction. You are (customer) always true. You are god. Customer is good. Customer satisfaction is our worship.

Nature of Marketing Concept 1. Marketing concept is a comprehensive philosophy. 2. Profit maximisation through effective marketing. 3. It focuses on product planning and development. 4. It is an integrated activity. 5. It is a customer-oriented concept. 6. It involves marketing research. 7. It is applicable to all organisations.

Types of Marketing Concept 1. Production concept (It is a Productionoriented concept). 2. Product concept (It is Product-oriented concept). 3. Selling concept (Maximum Sales). 4. Marketing concept (It is Customer-oriented Marketing). 5. Social marketing concept (It is based on customer satisfaction and customer welfare).

Assumptions of Marketing Concept 1. Customer-orientation 2. Integrated marketing 3. Realisation of Profit and other goals through customer satisfaction 4. Customer satisfaction 5. Customer welfare 6. Social welfare

99.00