Module II Pm

7/30/2019 Module II Pm

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1Assist. Prof Sachidananda Sahoo, IIIT, BBSR

WHAT IS 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,

In other words marketing is the management process which identifies, anticipates, and supplies

customer requirements efficiently and profitably. In other words, it is the process of

understanding, creating, and delivering profitable value to targeted customers better than the

competition. Its aim is to establish, maintain, and enhance long term relationship with customers

at a profit so that the objectives of the parties involved are met. In short marketing consists of

attracting, developing, and retaining profitable customers.

WHAT IS MARKETING MANAGEMENT?

Marketing management is a business discipline which is focused on the practical application of

marketing techniques and the management of a firm's marketing resources and activities. Rapidly

emerging forces ofglobalization have led firms to market beyond the borders of their home

countries, making international marketing highly significant and an integral part of a firm's

marketing strategy. Marketing managers are often responsible for influencing the level, timing,

and composition of customer demand accepted definition of the term. In part, this is because the

role of a marketing manager can vary significantly based on a business's size, corporate culture,

and industry context. For example, in a large consumer products company, the marketing manager

may act as the overall general managerof his or her assigned product. To create an effective, cost-

efficient marketing management strategy, firms must possess a detailed, objective understanding

oftheir own business and the market in which they operate. In analyzing these issues, thediscipline of marketing management often overlaps with the related discipline ofstrategic

planning.

According to Philip Kotler, "Marketing Management is the analysis, planning, implementation

and control of programmes designed to bring about desired exchanges with target audiences for

the purpose of personal and of mutual gain. It relies heavily on the adoption and coordination of

product, price, promotion and place for achieving responses.

Marketing Management is the analysis, planning, implementation and control of programs

designed to create, build and maintain beneficial exchanges and relationships with target markets

for the purpose of achieving Organizational objectives.

Marketing management is demand management or it involves the task of influencing the level,

timing and composition of demand. At times the actual demand level may be below, equal to, or

above the desired demand level and the major task of marketing management is to regulate the

level of demand.
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Nature of Marketing Management

It Combines the Fields of Marketing and ManagementAs the name implies, marketing management combines the fields of marketing and management.

Marketing consists of discovering consumer needs and wants, creating the goods and services that

meet those needs and wants; and pricing, promoting, and delivering those goods and services.

Doing so requires attention to six major areas - markets, products, prices, places, promotion, and

people.

Management is getting things done through other people. Managers engage in five key activities -

planning, organising, staffing, directing, and controlling. Marketing management implies the

integration of these concepts.

Marketing Management is a Business ProcessMarketing management is a business process, to manage marketing activities in profit seeking and

non profit organisations at different levels of management, i.e. supervisory, middle-management,

and executive levels. Marketing management decisions are based on strong knowledge ofmarketing functions and clear understanding and application of supervisory and managerial

techniques. Marketing managers and product managers are there to execute the processes of

marketing management. We, as customers, see the results of such process in the form of products,

prices, advertisements, promotions, etc.

Marketing Management is Both Science and ArtMarketing management is art and science of choosing target markets and getting, keeping and

growing customers through creating, delivering and communicating superior customer value.

(Kotler, 2006). Marketing management is a science because it follows general principles that

guide the marketing managers in decision making. The Art of Marketing management consists in

tackling every situation in an creative and effective manner. Marketing Management is thus ascience as well as an art.

EXPLAIN THE VARIOUS FUNCTIONS OF MARKETING

1. Market Research: Marketing research is the systematic investigation of the facts relevant to

various aspects in marketing. It helps in identifying the needs of the customers. It involves study

of the markets and customers, their tastes and preferences and what they are willing to buy, when

they are likely to buy etc.

2 Marketing planning: Marketing plans are prepared to achieve marketing objectives of

organization.

3 Product Planning and Development: PPD is concerned with identifying customers needs,

developing new products and improving existing products in order to meet desires of customers.

4 Buying and Assembling:

Buying: means purchase of raw materials for use in manufacture of finished goods for resale.

Assembling: means collection of specific type of products from different buyers under a

common roof.

5 Standardization and Grading:

Standardization refers to the process of setting certain norms or standards for a product with

regard to shape, size, color, quantity, quality, weight etc. It helps in ensuring that product


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confirms to standards.

Grading: refers to the process ofclassification of products into different categories on

the basis of quality, size etc. Grading is done generally for agricultural products-fruits and

vegetables.

Graded products are of uniform quality and it becomes easy to market.

6. Branding: A brand is a name, sign, symbol, design assigned to a product so as to

differentiate it from products of competitors.

It helps in identification of products

It helps in ensuring quality.

It helps in product differentiation,

It helps in building image (goodwill) in the market.

It helps in advertisingof firms products.

It helps in introducing new product .

It helps a firm to charge different prices for its products.

Examples LG Lux, Nano, Parker, Colgate, Parle ji

7.Packaging: Packaging is the act of designing and producing the package for a product. A

package is a wrapper or container in which a product is kept. Packaging performs the following

functions:

Packaging reduces the risk of spoilage, breakage etc.in the process of transportation.

Packaging helps in product identification.

Packaging speaks about the product i.e. .Self Promotional tool.

It helps in differentiating the product.

It makes the product marketable by breaking them into small lots. So consumers

can purchase the product according to their requirements.

It provides convenience to the consumer in the usage of the products.

7. Labelling: a Label is a carrier of information about the product. Labels are attached on the

product package to provide information about the product such as manufacturer of the product,date of manufacture, date of expiry, its ingredients, how to use product and its handling.

Functions:

It describes the product, its usage, contents, date of manufacture and expiry etc.

It helps in grading of the products.

It helps in product identification.

In supports product promotion.

8. Customer Support Services: In todays competitive environment, customer support services


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play an important role in marketing. Services such as after sale services, maintenance services,

handlingcustomer complaints provide satisfaction to customers and also helps in building product

loyalty.

9. Promotion: Promotion refers to communication to inform, persuade and influence the

prospective customers to buy a product. Tools of promotions are

Advertising

Personal selling or salesmanship

Publicity

Sales promotion

10. Physical Distribution: is concerned with making the goods and services available at the

right place. It includes 2 important decisions:

(i) Channels of Distribution means middleman or intermediaries

like wholesaler, agents and retailers which facilitate the movement of goods and services and their

title between the point of production and the point of consumption, by performing various

marketing activities.

(ii) Physical movement of goods from producers to consumers through means oftransport,

storage and warehousing, inventory control.

MARKETING CONCEPTS

There are FIVE competing concepts under which organizations conduct their marketing activities:

The Production Concept The Product Concept The Selling Concept The Marketing Concept The Societal Marketing Concept

PRODUCTION CONCEPT: It is one of the oldest concepts in business. The

production concept holds that the consumers will prefer products that are widely

available and inexpensive. Managers of production oriented business concentrate onachieving high production efficiently, low costs and mass distribution. They assume


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that consumers are primarily interested in product availability and low prices. This

orientation makes sure in developing countries where consumers are more interested

obtaining the product than its features.

It is also used when a company wants to expand its business and market. Some

service organization also operates on the production concept. Many medical and dental

practices are organized in assembly line principles, as are some government agencies

(such as employment offices). Although this management orientation can handle many

cases per hour, it is open to chances of impersonal and poor quality service.

PRODUCT CONCEPT :Other businesses are guided by this concept, which holds thatconsumers will favor those products that offer the most quality, performance or

innovative features. Managers in these organizations focus on making superior

products and improving them over time. They assume that buyers admire well madeproducts and can evaluate quality and performance. Product oriented companies often

trust that their engineers can design exceptional products. They get little or no

customer input and very often they will not even examine competitors products.

SELLING CONCEPT : It is another common business orientation. It holds that

consumer and business ifleft alone will ordinarily not buy enough of the organizations

products. The organization must, therefore must undertake an aggressive selling and

promotion effort.

Sell more stuff to more people more often for more money in order to make more

profit.

The selling concept is practiced most aggressively with unsought goods, goods

that buyers normally do not think of buying, such as insurance, encyclopedias etc.

Most firms practice the selling concept when they have over capacity. Their aim is to

sell what they make rather than what the market wants.

Sellers have to scramble for customers. Prospects are bombarded with TV

commercials, newspaper ads, direct mail and sales costs. At every turn, someone is

trying to sell something. Hard selling carries high risks such as bad mouth and negative

publicity affecting the goodwill and companys regulations and thereby affecting its

sales/profits.

THE SOCIETAL MARKETING CONCEPT : Some have questioned whether the marketing

concept is an appropriate philosophy in an age of environment deteration, resource

shortages, explosive population growth, world hunger and poverty and neglected social

services.


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Are companies that do an excellent job of satisfying customers wants necessary action in

the best long run interest of consumer and society. The marketing concept sidesteps the potent

ional conflicts among customer wants customer interiors and long run societal welfare.

For example, the fast food hamburger industry offers tasty but unhealthy food. The

hamburgers have a high fat contents and the restaurant promote fries and pies produce high instarch and fat. The products are wrapped in convenient packing which leads to much waste. In

satisfying customers wants, these restaurants may be hurting customer heath and causing

environmental problems.

Hence , the Societal Marketing concept holds that the organization task is to determine the

needs , wants and interests of target markets and to develop and deliver the desired satisfaction

more effectively and efficiently than competitors in the way that preservers or enhances the

customer and the societys well being.

The Societal marketing concept calls upon marketers to build social and ethicalconsiderations into there marketing practices. They must balance and juggle the often conflicting

criteria of company profits, consumer satisfaction and public interest.

THE MARKETING CONCEPT : The Marketing concept holds that the key to achieving its

organization goals consist of the company being more effective than competitors in creating,

delivering and communication superior customer value to its chosen target markets.

This can be explained in many ways

Meeting needs profitably Find wants and fill them Love the customer not the product Putting people first and so on.

The marketing concept rests on four pillars,

Target market Customer needs Integrated marketing

Profitability

(1) THE PRODUCTION CONCEPT

Consumers will favour those products that are widely available and low in cost. Therefore increase production and cut down costs. And build profit through volume.2. THE PRODUCT CONCEPT


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Consumers will favour those products that offer the most quality, performance, orinnovative features.

Therefore, improve quality, performance and features. This would lead to increased sales and profits.3. THE SELLING CONCEPT

Consumers, if left alone, will not buy enough of companys products. Therefore, promote sales aggressively. And, build profit through quick turnover.4. THE MARKETING CONCEPT

The key to achieving organizational goals consist in determining the needs and wants oftarget markets and delivering the desired satisfactions more effectively and efficiently thancompetitors.

And build profit through customer satisfaction and loyalty.(5) THE SOCIETAL MARKETING CONCEPT

It is Marketing Concept (+) Societys well being. Balancing of following three considerations while setting marketing policies :

-Customers want satisfaction -- -Societys well being--Companys profits

The societal marketing concept holds that the organizations task is to determine theneeds, wants, and interests of target markets and to deliver the desired satisfactions more

effectively and efficiently than competitors in a way that preserves or enhances the

consumers and the societys well being. It addresses conflicts between consumers and

firms short run wants and long term welfare. The SOCIETAL MARKETING involves the

marketer paying attention not only to the needs of customers but also to the wider natural

and social environment. Marketers concern for the natural environment involves taking

into account the environmental impact of production and distribution.


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DIFFERENCES BETWEEN MARKETING & SELLING

S.

No.

Marketing S.

No.

Sales

1 Marketing starts with the buyer and focuses

constantly on buyers needs.

1 Selling starts with the seller and is preoccupied

all the time with the sellers needs.

2 Seeks to convert customer needs into

products.

2 Seeks to convert products into Cash.

3 Views business as a customer satisfying

process.

3 Views business as a goods producing process.

4 Marketing effort leads to the products that the

customers actually want to buy in their own

interest.

4 The company makes the product first and then

figures out how to sell it and make a profit.

5 Marketing communication is looked upon as a

tool for communicating the benefits/

satisfactions provided by the product

5 Sellers motives dominate marketing

communication (promotions).

6 Consumers determine the price; price

determines costs.

6 Cost determines the price.

7 Marketing views the customer as the very

purpose of the business. It sees the business

from the point of view of the customer.Customer consciousness permeates the entire

organization all departments, all the people

7 Selling views the customer as the last link in

the business.


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and all the time.

8 Customer satisfaction is the primary motive. 8 Sales is the primary motive.

9 External market orientation. 9 Internal company orientation.

10 Marketing concept takes an outside in

perspective

10 Selling concept takes an inside-out

perspective.

11 It is a broad composite and worldwide

concept, more so in this era of globalisation.

11 It is a narrow concept related to product, seller

and sales activity.

12 Marketing is more pull than push. 12 Selling involves push strategy.

13 Marketing begins much before the production

of goods and services, i.e. with identification

of customers needs. It continues even afterthe sale to ensure customer satisfaction

through after sales services.

13 Selling comes after production and ends with

the delivery of the product and collection of

payment.

14 Marketing has a wider connotation and

includes many activities like marketing

research, product planning & development,

pricing, promotion, distribution, selling etc.

14 Selling is a part of marketing.

15 It concerns itself primarily and truly with the

value satisfactions that should flow to thecustomer from the exchange.

15 It over emphasizes the exchange aspect,

without caring for the value satisfactionsinherent in the exchange.

16 It assumes: Let the seller beware. 16 It assumes: Let the buyer beware.

17 Marketing generally has a matrix type of

organizational structure.

17 It has a functional structure.

18 The main job is to find the right products for

your customers.

18 The main job is to find the customers for your

products.

19 The mindset is What is that we can makehere or source from outside to satisfy the

needs of the target customers.

19 The mindset is Hook the customer.

20 Conceptual and analytical skills are required. 20 Selling and conversational skills are required.


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FUNDAMENTAL NEEDS OF CUSTOMERS

Every customer comes into the customer situation with differing wants. While wants are

frequently hard to identify and may occasionally be unrealistic, all customers have the following

five basic needs:

1. Service: Customers expect the service that they think is appropriate for the level ofpurchase that they are making. A small, spontaneous purchase may have a smaller service

need than a larger purchase that has been carefully planned and researched.

2. Price: The cost of everything we purchase is becoming more and more important. Peopleand businesses want to use their financial resources as efficiently as possible. Many

products previously considered unique are now considered commodities. This means that

while a consumer previously had to travel to the local hamburger restaurant to purchase a

hamburger, now one can be acquired at many other locations. This makes the component

of price even more important to the customer.

3. Quality: Americans are less likely today to think of their purchases as throw-away items.Customers want the products that they purchase to be durable and functional until thecustomer decides to replace them. This requirement of quality mandates that

manufacturers and distributors produce products that live up to the customers' expectations

of durability. Customers are much less likely to question price if they are doing business

with a company that has a reputation for producing a high quality product.

4. Action: Customers need action when a problem or question arises. Many companies offertoll-free customer assistance telephone lines, flexible return policies, and customer

carryout services in response to the need for action. Customers are human beings and like

to think that they are an important priority and that when a need or question arises

someone will be ready and waiting to help them.

5. Appreciation: Customers need to know that we appreciate their business. Customerservice providers can convey this appreciation in many appropriate ways. Saying thankyou to the customer through our words and actions is a good starting point. Preferred

customer mailing lists, informational newsletters, special discounts, courtesy, and name

recognition are good beginnings to showing our customers our appreciation. Additionally,

letting them know that we are glad that they have chosen to do business with us conveys a

positive message. A fast food restaurant has a sign in its drive-through lane that says, We

know that you could eat somewhere else; thank you for allowing us to serve you.

MARKETING MIX

Marketing Mix is a combination of marketing tools that a company uses to satisfy their target

customers, and achieving organizational goals. In others words The marketing mix is the

combination of variables that a business uses to carry out its marketing strategy and meet customer

needs.McCarthy classified all these marketing tools under four broad categories:

Product Price Place PromotionThese four elements are the basic components of a marketing plan and are collectively

called 4 Ps of marketing. All marketing decision-making can be classified into four strategy

elements, sometimes referred to as the marketing mix or the four Ps. Product: What are the benefits of this product and service to its customers?


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Price: Should this product and service be free or funded by a grant? Should a price becharged to cover costs only? Should the price allow for a profit?

Place: What can be done to make this product and service more accessible and available? Promotion: What can be done to increase the visibility of this product and service? What

can be done to increase its usage or exposure?

Product

PRODUCT

Product is the actually offering by the company to its targeted customers which also includes

value added stuff. Product may be tangible (goods) or intangible (services).

For many a product is simply the tangible, physical entity that they may be buying or selling.

While formulating the marketing strategy, product decisions include: What to offer? Brand name Packaging Quality Appearance Functionality

Accessories Installation After sale services WarrantyWhat is product-mix?

Set of all product offered for sale by a company. It consist of various product line. Anycompanys product mix has four dimension : 1. Width 2. Length 3. Depth 4. Consistency

Width : Number of different product lines carries by the company. Length : Total numberof items in the product mix of the company. Depth : Assortment of size, colour and

models offered in each item of a product line. Consistency : It refers to the rela tionship of

various product line either in their end use, production requirement, distribution channel orother way.


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PRICE

Price includes the pricing strategy of the company for its products. How much customer should

pay for a product? Pricing strategy is not only related to the profit margins but also helps in

finding target customers. Pricing decision also influence the choice of marketing channels.

Price decisions include: Pricing Strategy (Penetration, Skim, etc) List Price Payment period Discounts Financing Credit terms Using price as a weapon for rivals is as old as mankind, but its risky too. Consumers are

often sensitive for price, discounts and additional offers. Another aspect of pricing is that

expensive products are considered of good quality.

PRICE MIX is the value of the product determined by the producers. Price mix includes thedecisions as to: Price level to be adopted; discount to be offered; and, terms of credit to be

allowed to customers to customers

PLACE (PLACEMENT)

It not only includes the place where the product is placed, all those activities performed by the

company to ensure the availability of the product to the targeted customers. Availability of the

product at the right place, at the right time and in the right quantity is crucial in placement

decisions.

Placement decisions include:

Placement Distribution channels Logistics Inventory Order processing Market coverage selection of channel members There are many types of intermediaries such as wholesalers, agents, retailers, the Internet,

overseas distributors, direct marketing (from manufacturer to user without an

intermediary), and many others.

Place mix refers to providing the product at a place which is convenient for consumers to access.Various strategies such as intensive distribution, selective distribution, exclusive distribution and

franchising can be used by the marketer to complement the other aspects of the marketing mix

PROMOTION

Promotion includes all communication and selling activities to pursuade future prospects to buy

the product. Promotion decisions include:

Advertising Media Types Message Budgets Sales promotion


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Personal selling Public relations/publicity Direct marketing Sponsorship The elements of the promotions mix are integrated to form a coherent campaign. As with

all forms of communication.

As these costs are huge as compared to product price, So its good to perform a break-evenanalysis before allocating the budget. It helps in determining whether the new customers

are worth of promotion cost or not.

Promotion Mix all of the methods of communication that a marketer may use to provide

information to different parties about the product. Promotion comprises elements such as:

advertising, public relations, personal selling and sales promotion.

Marketing mix (4 Ps)was more useful in early 19s when production concept was in and

physical products were in larger proportion. Today, with latest marketing concepts, marketing

environment has become more integrated. So, in order to extend the usefulness of marketing mix,

some authors introduced a fifth Ps and then seven Ps (People, Packaging, Process). But the

foundation ofMarketing Mix still stands on the basic 4Ps.

CHANNEL OF DISTRIBUTION

A set of interdependent organizations that ease the transfer of ownership as products move

from producer to business user or consumer.

A channel of distribution or trade channel is defined as the path or route along which goods move

from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a

distribution network through which producer puts his products in the market and passes it to the

actual users. This channel consists of producers, consumers or users and the various middlemen

like wholesalers, selling agents and retailers (dealers) who intervene between the producers andconsumers. Therefore, the channel serves to bridge the gap between the point of production and

the point of consumption thereby creating time, place and possession utilities
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The Role of Marketing Channels in Marketing Strategy

Channels provide the means by which the firm moves the goods and services it produces to

ultimate users

Facilitate the exchange process by cutting the number of contacts necessary Adjust for discrepancies in the markets assortment of goods and services viasorting

Standardize exchange transactions Facilitate searches by both buyers and sellers

Types of Marketing Channels

Marketing channel: system of marketing institutions that promotes the physical flow ofgoods and services, along with ownership title, from producers to consumer or business

user; also called a distribution channel

Marketing intermediary: wholesaler or retailer that operates between producers andconsumers or business users; also called a middleman

Wholesaler: marketing intermediary that takes title to goods and then distributes thesegoods further; also called a jobber or distributor

Direct Selling

The following diagram (chart) is illustrative of the channel of distribution which may exist in a

market.

The above chart indicates that the number of middlemen may vary. If there is direct sale by the

produce to the consumers then there is no middleman. But that is very rare. As the chart shows theproducer may sell goods to retailer who may then sell the same to consumers. The producer may

sell goods to wholesalers who may inturn sell to retailers and the retailer may sell to consumers.


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The fourth alternative channel of distribution is when any agent/dealer intervenes between the

producer and retailers and acts as a middlemen. The agent is appointed by the producer for the

sale of goods to the retailers. Another alternative channel is there when producers agent sells

goods to wholesalers who sell to retailers. Agent/dealer is an independent person/firm buying

goods and selling them to retailers. Agent/dealer may also sell to wholesalers who may then sell

to retailers and goods are thus made available to consumers. In the channel of distribution there

may be more than one agent/dealer and wholesaler.

Role of middlemen : Middlemen performs various marketing functions which are stated as

below:

i) Searching out buyers and sellersii) Implementing pricing policiesiii) Providing feedback informationiv) Creating and establishing a market for new productv) Providing pre-and after sale services to consumersvi) Communicating the use of technique of the product vvii)

Providing credit facility to retailers and consumers.Desirability of eliminating the middlemen: The elimination of middlemen the based on the

following grounds.

I) Excessive number II) Superfluous III) Limited risk taking IV) Anti

social activities V) Limiting consumers' choice

Role of wholesaler in distribution of goods:

Role of wholesaler in distribution of goods is given as below : I) Buying and assembling II)

Selling and dispersing III) Transportation IV) Storage V) Packing and grading VI) Advertising

and Promoting sale VII) Financing VIII) Risk.

Role of Retailer in distribution of goods: Role of retailers in distribution of goods is enumerated

as below:

I) Wide choice to consumer II) Availability of goods in small quantities and at convenient places

III) Home delivery IV) Assurance of regular supply V) Credit facility to customers VI) Close

interaction with customers.

Types of Channel Members

Agents/Brokers

Channel partners that match marketers with wholesalers or in organization markets,

with customers

They are very important for international marketing, for exports

Think of the success of Ebay, Placement Consultants, Online dating/Matrimonial

sites

In a way, all are brokers

Wholesalers


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A wholesaler is someone who primarily sells to other retailers

Also may retail on own

Typically, buys in bulk

Very important in rural India

Companies think of him a necessary evil

Retailer

The most visible face of the distribution system

India has the largest number of retailers in the world

Hence, the reluctance of the Govt in allowing FDI herefear of unemployment.

ADVERTISING

INTRODUCTION:

Adverting is only one element of the promotion mix, but it often considered prominent in the overall

marketing mix design. Its high visibility and pervasiveness made it as an important social and encomia

topic in Indian society. Promotion may be defined as the co-ordination of all seller initiated efforts to

set up channels of information and persuasion to facilitate the scale of a good or service. Promotionis most often intended to be a supporting component in a marketing mix. Promotion decision must be

integrated and co-ordinate with the rest of the marketing mix, particularly product/brand decisions, so

that it may effectively support an entire marketing mix strategy. The promotion mix consists of four

basic elements. They are:-

1. Advertising

2. Personal Selling

3. Sales Promotion, and

4. Publicity

1. Advertising is the dissemination of information by non-personal means through paid media where

the source is the sponsoring organization.

2. Personal selling is the dissemination of information by non-personal methods, like face-to-face,

contacts between audience and employees of the sponsoring organization. The source of information

is the sponsoring organization.

3. Sales promotion is the dissemination of information through a wide variety of activities other than

personal selling, advertising and publicity which stimulate consumer purchasing and dealer

effectiveness.

4. Publicity is the disseminating of information by personal or non-personal means and is not directly

paid by the organization and the organization is not the source.

DEFINITION OF ADVERTISISNG

The term advertising originates from the Latin word adverto,which means to turn around.

Advertising, thus, denotes the means employed to draw attention towards any object or purpose.The dictionary meaning of the term is to give public notice or to announce publicly. Advertising or

advertizingis a form of communication for marketing and used to encourage, persuade, or


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manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or

take some new action.

According to American Marketing Association,Advertising is the nonperson communication of information, usually paid for and usually

persuasive in nature, about products (goods and services), or ideas by identified sponsors through

the various media.

FUNCTIONS /OBJECTIVES OF ADVERTISEMENT

To inform and influence the buyers to buy the product and thereby increase the sales. To introduce a new product to potential customers To influence the middlemen to store and handle the product. It helps build up brand image and brand loyalty to the products Advertising may be necessary to publicize the changes made in prices, channels of

distribution, any improvement made in the quality, size, weight and packing of the

product. It may be issued, sometimes, to compete with or neutralize competitors advertising. It helps build up corporate image. In the case of mail order business, advertising does the selling job by itself. By supplementing personal selling, advertising makes the job of sales force easier. It helps increase the effectiveness of sales promotion campaign. Finally, it encourages the creative arts and the artists.

CLASSIFICATIONS OF ADVERTISEMENT (Classification by medium)

Print advertising (newspaper, magazines, brochures, flyers) Electronic advertising (television, radio: commercials; Internet) Outdoor advertising (billboards, kiosks, public transport, events) Direct-mail advertising (through the Postal Service and by e-mail) POP (point of purchase) advertising

ADVERTISING MEDIA & METHODS wall paintings web banners web popups mobile telephone screens shopping carts skywriting human directional town criers blimps painted vehicles

logo jets in-flight ads subway platforms shopping bags inflatables train cars event tickets and supermarket

receipts

e-mails (spam) street furniture

IMPORTANCE OF ADVERTISING Promotion of Sales Introduction of New

Product

Creation of Good PublicImage

Mass Production


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Research Education of People Support to Press To announce a new To announce location of

product stockiest

To expand the market to To educate consumers new

buyers

To maintain sales To announce a To announce a new pack To please the sales force To make a special offer To attract investor

CONSUMERISM

Consumerism is an organized movement of citizens and government to strengthen the rights

and power of buyers in relation to sellers. Consumerism refers to the wide range of activities

of government business and independent organizations designed to protect rights of the

consumers. Consumerism is a collective consciousness on the part of consumers, business,

government and civil society to enhance consumer satisfaction and social welfare which will

in turn benefit all of them and finally make the society a better place to live in. The consumer

is exposed to many hazardous - physical, environmental and exploitation due to unfair trade

practices. The consumer needs protection against products which are unsafe for consumption

such as drugs and adulterated food products and products which may cause injury such as

defective electrical appliances. Consumer needs protection against mal-practices and deceitby sellers. Consumer should have adequate rights and right of recourse to redressal measures

against defaulting businessmen. In ourIndian system, the consumer has six rights given for

his protection from exploitation from the shopkeepers or sellers. Consumer exploitation

means mistreatment or cheating with consumer by adulteration, Thagi or in any other unfair

form. To prevent consumer from exploitation, our government have passed many Acts from

time to time.

Some of them are as follows:-

1. Drug and Cosmetics Act, 1940

2. Prevention of Food Adulteration Act, 19543. Essential Commodity (supply) Act, 1955

4. Monopolies and Restrictive Trade Practices Act, 1969

5. Standard of Weights and Measures Act, 1976

6. Consumer Protection Act, 1986

Why Is It Needed?

Demand-supply imbalance (demand > supply / demand < supply) Lack of workable competition (monopoly > perfect competition) Unfamiliarity with innovations (poverty, lack of social awareness, accepting life

as it is and passive outlook)

Unconsciousness about rights (illiterate uneducated ignorant and ill-informed)


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Feign advertisements (a need for consumer guidance) Time consuming legal process

ENVIRONMENTALISM

Environmentalism is a broad philosophy, ideology and social movement regarding concerns

for environmental conservation and improvement of the health of the environment,

particularly as the measure for this health seeks to incorporate the concerns of non-human

elements. Environmentalism advocates the preservation, restoration and/or improvement of

the natural environment, and may be referred to as a movement to control pollution. For this

reason, concepts such as a land ethic, environmental ethics, biodiversity and ecology the

hypothesis figure predominantly.

At its crux, environmentalism is an attempt to balance relations between humans and the

various natural systems on which they depend in such a way that all the components are

accorded a proper degree of sustainability. The exact nature of this balance is controversial

and there are many different ways for environmental concerns to be expressed in practice.

Environmentalism and environmental concerns are often represented by the color green, but

this association has been appropriated by the marketing industries and is a key tactic of green

washing. Environmentalism is opposed by anti-environmentalism, which takes a skeptical

Environmentalism is a social movement aimed at preserving biodiversity and theearths environment. The activity of protecting the environment from pollution or

destruction

We are living in a major extinction eventand humans are the cause of it.Environmentalism is a response to human activity that is causing extinctions of

species and of habitats.

Advocacy for or work toward protecting the natural environment from destruction orpollution.

The theory that environment rather than heredity is the primary influence onintellectual growth and cultural development.

Documents

Module II Pm