Chapter -1 Introduction MARKETINGThe concept of exchange leads to the concept of market .a market is the setof actual and potential buyers of a products .these buyers share a particular need orwant that can be satisfied through exchange .thus, the size of a market depends onthe number of people who exhibit the need, hae resources to engage in exchange,and are willing to offer these resources in exchange for what they want. !riginally the term market stood for the place where buyers and sellers gatheredto exchange their goods, such as illage s"uares. #conomics use the term market torefertoacollectionofbuyersandsellerswhotransport inaparticularproductclass, as in the housing market or the grain market. Marketing #xchange processes inole work. $eller must search for buyer, identifytheir needs, design good products and serice, set price for them promote them andstore and delier them. %ctiities such as product deelopment, research,communication, distribution, pricing, andsericearecoremarketingactiities.%lthoughwenormallythinkof marketingactiities. Consumers do&marketing&whentheysearchforthegoodstheyneedapricetheycanoffered. Companypurchasing agent do &marketing' when they track down seller and bargain for goodterms.DEFINITION OF MARKETING()arketing* is concerned with the people and actiities inoled in the flowof goods and serices from producer to consumer.-American marketing association The purpose of business is to create a customer by which lays stress on twoaspects. (a) Identification of consumer needs and (b) Organiing the business to meet these needs - !eter ". drucker MARKETING MANAGEMENT +e define marketing management as the analysis, planning, implementation,and control of programs designed to create, build, and maintain beneficialexchange with target buyers for the purpose of achieing organization ob,ecties,thus, marketing management inoles managing demand, which in turn inolesmanaging customer relationship. MARKETING MIX The set of controllable tactical marketing tools-product, price, place, andpromotion-that thefirmblendstoproducetheresponseit wantsinthetargetmarket. !nce the company has decided to its oerall competitie marketingstrategy, it is ready to begin planning the details of the marketing mix. The marketing is one of the ma,or concepts in modern marketing as the setof controllable tactical marketing tools that the firm blends to produce the responseit wants in the market. The marketing mix consist of eerything the firm can do itinfluences the demand for its product. The many possibilities can be controlled intofour groups of ariables known as the (four .s.!roduct# !rice# !lace#!romotion. PRODUCT:.roducts mean the (goods-and-serice (combination the company offers tothe target market. The product is the first element of the marketing mix. % productis anythingthat canbe offeredtoa market for attention, ac"uisition, use orconsumption that might satisfy a want or need. .roducts include physical goods,serices, places, organizationandideas. )arketingorientedfirms are able tomodifytheir products tobringabout thegreatest benefit. /esigns, packaging,conenience and warranty are all components of the complete products. PRICE .rice is the amount of money customer has to pay to obtain the product.%nother element of the marketing mix is price .or the perceied alue of theproduct must be affordable for the targeted customers, yet affordability aries frombuyer to buyer .an important correspondent of a complete programis thecompany's policies regarding payment of offering credit. .rice is the only elementof themarketingmixthat produces reenuethat other element "uicklyunlikeproduct features. %t the same time pricing 0 pure competition are the number one problemsfacingmanymarketingexecuties1Companies handlepricingandarietyofways. Tiisbyaseparatedimensionormayeenbesafetymarketingorsalespeople. PLACE .lace includes company actiities that make the product aailable to targetcustomers. it is where and when satisfaction that consumer and users re"uires. Itmakes little difference how attractie or functional the product might be if is notaailable when needed. The company must identify, recruit and like ariousmiddleman and marketing facilities so that its products and serices are efficientlysuppliedtothetarget market. It must understandthearioustypesofretailers,wholesalers and physical distribution firms and how they make their decisions. PROMOTION .romotion means that communicate the merits of the products and persuadetarget customers to buy it .promotion, the fourth marketing mix tool, stands for thearious actiities the company undertake to communicate and promote its productsto the target market. The glamour and sheer olume of adertising make promotionmare eidence than the other elements. .romotion is the ehicle marketers use toinform, remind or persuade potential buyer.This element of the marketing mix can be powerful and influenced force indeterminingconsumerpreference.%neffectiemarketingprogramblendsallofthemarketingmixelementsintoaco-ordinateprogramdesignedtoachieethecompany's marketing ob,ecties by deliering alue to consumer. The marketingmixconstitutes thecompany'stactical tool tokit for establishingthefour .srepresenttheseller'siewoftheeachmarketingtoolsaailableforinfluencingbuyers. 2rom a consumers iew point, each marketing tool is designed to delier acustomer benefit. !ne marketing expert suggests that companies should iew thefour .s in terms of the customer's four C'$Customer needs and wants. Cost to the customer Conenience. Communication. CONSUMER ATTITUDE%ll business firms hae realizedthat marketingis a core element ofmanagementphilosophy andthe key toits successliesin focusing more onthecustomer .that is, it will be the customer who will decide where the firm is heading.Thus the challenge before the market is to ensure that they satisfy eery customer. %dam smith in his, the wealth of nation, has said (Consumption is the sole end and purpose of all production and the interests of theproducts ought to be attended to only so far as it may be necessary for promotingthat consumer*This "uotationonlyreiterates that thepurposeis consumptionandone'sownpurpose will be sered only if the consumer's interests are attended to. 3ere thenarises a ery ital "uestion. 3ow can a market ensure that his or her firm is able torespond to their customer's re"uirement "uickly1 The answer to his lies in "ualityof serice it is offering to its customers. This again will depend upon the customerexpectation from the product or serice. Factors in!"encing cons"#er attit"$e :The ma,or factors influencing consumer behaior are CULTURAAL FACTORS : Cultural factors exert thebroadest anddeepest influenceonconsumerbehaior .It includes41. Culture5. $ubculture SOCIAL FACTORS :1.2amily 5.6eference group7.$ocial class and caste 8.$tatus PERSONAL FACTOR:.ersonal chacteristics include characteristic such as the buyers a.%ge and stage in the life cycleb. !ccupationc.#conomic circumstances 9ife style PS%C&OLOGICAL FACTORS:a. )!TI:%TI!; b. .erceptionc. 9earningd. .ersonalitye. million subscribers in the preious month. =lobally, the =$)market reached 7.> billion users in 2ebruary 5D17, adding =$) accounted for IDper cent of thenewsubscriber growthin5D15.J%lmost eery9atin%mericanoperator has chosen =$). In ;orth %merica =$) growth is bigger than C/)%Acode diision multiple accessB,J he said. Commenting on the raging debate oer=$) ersus C/)% in mobile serices arena, 3adden said4 J=$) is the world?smost successful mobile standard with oer 5 billion users, and is an open mobilestandard. It also supports automatic international roaming, which is a ma,orcontributor to business plans.JIndia's priatetelecomsfirms offering=$)-basedmobilesericesreported a 51 percent rise in reenue in the year to )arch 5D15 but said futuregrowth rates could slow because of heay taxes on the nascent industry. %lthoughIndia'smobilesectoristheworld'sfastest growingma,orwirelessmarket, itisamongst the highest taxed industries in the country. )obile carriers pay as much as5E percent of their reenue as licence fee, spectrum charges and other taxes. TheCellular!perators %ssociationofIndiaAC!%IBsaidreenueforfiscal 5DD7KD8stood at I7.DI billion rupees AL1.I@ billionB compared with @8 billion rupees a yearearlier. %ccording to T.:. 6amachandran, director general at C!%I, (Thesereenue growth rates cannot be maintained unless there is a concerted effort by thegoernment to cut excessie leies and allow sharing of infrastructure*. (