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CHAPTER 3

THEORETICAL FRAMEWORK

3.1 Theoretical Frame Work

The below concept are theory based of management and research methodologies.

3.2 Meaning of management

Management in commerce and organizations is the function that coordinates the efforts of

people to realize goals and objective using available resources efficiently and effectively.

Management comprises planning, organizing, staffing, leading or directing, and controlling

an organization or initiative to accomplish a goal. Resourcing encompasses the deployment

and manipulation of human resources, financial resources, technological resources, and

natural resources.

3.3 Definitions of management

Harold Koontz expresses, "Management is the art of getting things done through and with

people in formally organized groups”, but Henri Fayol viewed that "To manage is to

forecast and to plan, to organize, to command, to co-ordinate and to control." According to

Peter Drucker, "Management is a multi-purpose organ that manages business and manages

managers and manages workers and work." So as Mary Parker Follet observed

"Management is the art of getting things done through people."

3.4 Theoretical scope

Management involves the treatment of the human capital of an enterprise to contribute to the

success of the enterprise. This implies effective communication: an enterprise environment

implies human motivation and implies some sort of successful progress or system outcome.

As such, management is not the manipulation of a mechanism, not the grouping of flora and

fauna, and can occur in both a lawful as well as illegal enterprise and environment. Based on

this, management must have humans, communication, and a positive enterprise Endeavour.

Plans, capacity, motivational psychosomatic tools, goals, and monetary measures may or may

not be necessary components for there to be management. At first, solitary views

management functionally, such as measuring quantity, adjusting plans, congregation of the

goals. This applies even in situations where planning does not take place.

Page | 29ALVAS INSTITUTE OF ENGINEERING AND TECHNOLOGY, MIJAR

A STUDY ON IMPACT OF PROMOTIONAL ACTIVITIES ON CONSUMER BUYINGBEHAVIOUR AT PANTALOONS BANGALORE

3.5 Nature of managerial work

In for-profit work, management has as its primary function the satisfaction of a range of

stakeholders. This typically involves making takings for the shareholders, creating valued

products at a reasonable cost for customers, and providing rewarding service opportunities

for employees. In non-profit management, add the importance of keeping the faith of donors.

In most models of management and supremacy, shareholders vote for the floorboard of

directors, and the board then hires senior management. Some organizations have

experimented with other methods (such as employee-voting models) of selecting or

reviewing managers, but this is rare.

In the public sector of countries constituted as delegate democracies, voters elect politicians

to public office. Such politicians hire many managers and administrators, and in some

countries like the United States political appointees lose their jobs on the election of a new

president.

Towards the end of the 20th century, business administration came to consist of six part

kindling, specifically:

Financial Management

Human Resource Management

Information Technology Management

Marketing Management

Operations Management

Strategic Management

In the 21st century observers find it increasingly difficult to subdivide management into

functional categories in this way. More and more processes simultaneously involve several

categories. Instead, one tends to think in terms of the various processes, tasks, and objects

subject to management. Branches of management theory also exist relating to nonprofits and

to government: such as public government, public administration, and educational

management. Further, management programs related to civil-society organizations have also

spawned programs in non profit management and social entrepreneurship.

3.6 Basic functions



Administration operates through five basic functions: planning, organizing, coordinating,

commanding, and controlling.

Planning

Organizing

Coordinating

Commanding

Controlling

3.7 Basic roles of Business administration

Interpersonal

Informational

Decisional

3.8 Basic Skills for the Business Administration:

Political

Conceptual

Interpersonal

Diagnostic

Technical

3.9 Various functional areas of management are:

Production management Personal management

Financial management Marketing management

Marketing management: Marketing management engrosses distribution of the product to

the purchasers. It may need few number of process and they are

Advertising, This quarter deals with advertising of product, introducing new product in

market by various means and encourage the customer to buy the products. Sales

management, Sales management deals with fixation of prices, authentic transport of

products to the customer after fulfilling certain formalities and after sales services and

Market research, It involves in compilation of data related to product claim and

performance by research and analysis of market.

3.10 Introduction to the marketing world



In today's world of marketing, all over the place you go you are being marketed to in one

shape or another. Marketing is with you each second of your walking life. From morning to

night you are uncovered to thousands of marketing messages every day. Marketing is

something that affects you even though you may not necessarily be conscious of it.

3.11 Meaning of marketing

Marketing is Process by which individuals and groups obtain what they need and want

through creating and exchanging products and value with others.

3.12 Marketing Definitions

According to American Marketing Association (2004), "Marketing is an organizational

function and set of processes for creating, communicating and delivering value to customers

and for managing relationships in a way that benefits both the organization and the

stakeholder." Earlier the AMA (1960)"Marketing is the performance of business activities

that direct the flow of goods and services from producer to consumer or user."

Eldridge (1970) expressed "Marketing is the combination of activities designed to produce

profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a

selected segment of the market." So as Kotler (2000) stated that "A societal process by which

individuals and groups obtain what they need and want through creating, offering, and freely

exchanging products and services of value with others."

3.13 The Marketing Management Concepts

There are four marketing management concepts that companies will utilize in their marketing

objectives. All of these aims to achieve profits and objectives, but the focus and means by

which they do so will differ. They will typically follow one of these four major concepts:

Product Concept; this management orientation says that if you build a quality product and

set a reasonable price, very little marketing effort is needed to sell it. The product generates

the demand "build it and they will come", Selling Concept; this management orientation says

that consumers will not normally buy enough of a product unless it is aggressively promoted

to them, Marketing Concept; this management orientation says the major purpose of an



organization is to identify consumer needs and then adapt the organization in a way that will

satisfy the customer’s needs more effectively and efficiently than competition and Societal

Concept; this management orientation focuses on satisfying consumer’s needs and

demonstrating long run concern for societal welfare in order to achieve company objectives

and attend to its responsibilities for society. The idea is to find a balance between social

welfare, consumer needs, and company profits.

3.14 Marketing Environment

Marketing environments are divided into parts: Micro environment and Macro environment.

Micro environments are those that firm level environment and on which firm may have

control. On the other hand macro environment are those external environment upon which

firm have no control and they impact on bigger way.

Micro environment includes customer, suppliers, competitors, distributor and firms own

management and Macro environment includes Economic environment, political

environment, demographic environment, technology and physical environment.

Marketing Challenges The Business Organizations Facing Today:apidly changing

customer needs, wants, and expectations;

Increasing domestic and global competition;

Heterogeneous and fragmented market

Increasing popularity of Internet;

Rapid technological changes;

Challenge of selecting among too many options; and

Challenge of generating leads.

3.15 Market segmentation

Market segmentation is a marketing strategy that involves separating a wide target market

into subsets of consumers, who have common needs and priorities, and then designing and

executes strategies to target them. Market segmentation strategies may be used to identify the

target customers, and provide supporting data for positioning to achieve a marketing plan

objective. Businesses may develop product differentiation strategies, or an undifferentiated

approach, involving specific products or product lines depending on the specific demand and

attributes of the target segment.



3.16 Market targeting

A target market is a group of customers towards which a business has decided to aim its

marketing efforts and ultimately its merchandise. A distinct target market is the first element

to a marketing strategy.

3.17 Positioning

The marketing movement is a process of identifying a market trouble or opportunity,

developing solutions based on market investigation, segmentation and supporting data.

Positioning may refer the position a business has chosen to carry out their marketing and

company objectives.

3.18 Different Specializations in Marketing Management

Advertising, Advertising or advertising in business is an appearance of marketing

communication used to encourage, persuade, or manipulate an audience to take or continue to

take some action. Most commonly, the desired result is to drive consumer behaviour with

respect to a commercial offering, although political and ideological advertising is also

common. This type of work belongs to a category called affective labour.

Branding, an effectual brand strategy gives you a major edge in increasingly competitive

markets. But what exactly does "branding" mean? Purely put, your brand is your promise to

your customer. It tells them what they can expect from your products and services, and it

differentiates your offering from that of your competitors.

Communication requires a sender, a message, a medium and a recipient, although the

receiver does not have to be present or aware of the sender's intent to communicate at the

time of communication; thus communication can occur across vast distances in time and

space. Communication requires that the communicating parties share an area of

communicative commonality. The communication process is complete once the receiver

understands the sender's message.

Database marketing, the distinction between direct and database marketing stems primarily

from the attention paid to the analysis of data. File marketing emphasizes the use of statistical



techniques to develop models of customer behaviour, which are then used to select customers

for communications.

Direct marketing, is a channel-agnostic outline of advertising that allows businesses and

non-profit organizations to communicate straight to the customer, with publicity techniques

that can include mobile text messaging, email, interactive consumer websites, online display

ads, database marketing, fliers, catalog distribution, promotional letters, targeted television

commercials, response-generating newspaper/magazine advertisements, and outdoor

advertising.

Event Management is the process of planning a carnival, ritual, competition, party, concert,

or convention. Event planning can include budgeting, establishing dates and alternate dates,

selecting and reserve the event site, acquiring permits, coordinating haulage and parking,

developing a theme or motif for the event, arranging for speakers and alternate speakers,

coordinating location support and arranging furnishings, event support and security, catering,

emergency plans, aid stations, and cleanup. Event management is the application of project

management to this process.

International marketing is the sell overseas, franchising, joint venture or full direct entry of

a marketing organization into another country. This can be achieved by exporting a

company's product into another location, entry through a combined venture with another firm

in the objective country, or foreign direct investment into the target country. The enlargement

of the marketing mix for that country is then required - international marketing.

Internet marketing also called Online advertising, utilizing the Internet to deliver

promotional marketing messages to consumers. It includes email marketing, search engine

marketing, social media marketing, many types of display advertising and mobile advertising.

Like other advertising media, online advertising frequently involves both a publisher, who

amalgamates advertisements into its online content, and an advertiser, who provides the

advertisements to be displayed on the publisher's content.



Industrial marketing or business to business marketing is the marketing of possessions and

services by one business to another. Industrial goods are those an industry uses to produce an

end product from one or more raw materials.

Market planning is market economy is an economy in which decisions regarding

investment, production and distribution are based on supply and demand, and prices of goods

and services are unwavering in a free price system. The main defining characteristic of a

market economy is that decisions on investment and the allocation of producer goods are

mainly made through markets. This is difference with a planned economy, where investment

and production decisions are personified in a plan of production.

Public relations are the practice of managing the spread of information between an

individual or an organization and the public. Public relations may include an organization or

individual gaining exposure to their audiences using topics of public interest and news items

that do not require direct payment. The aim of public relations by a company often is to

persuade the public, investors, partners, employees, and other stakeholders to maintain a

certain point of view about it, its leadership, products, or of political decisions.

Marketing strategy is defined by David Aaker as “a process that can allow an organization

to concentrate its resources on the optimal opportunities with the goals of increasing sales and

achieving a sustainable competitive advantage”. Marketing strategy includes all indispensable

and long-term actions in the field of marketing that deal with the analysis of the strategic

initial situation of a company, and the formulation, evaluation and selection of market-

oriented strategies and therefore contribute to the goals of the company and its marketing

objectives.

Service marketing is a sub ground of marketing which covers the marketing of both goods

and services. Goods marketing include the marketing of fast moving consumer goods

(FMCG) and durables. Services marketing typically refer to the marketing of both business to

consumer (B2C) and business to business (B2B) services. Common examples of service

marketing are found in telecommunications, air travel, health care, financial services, all

types of hospitality services, car rental services, and professional services.



Consumer behaviour is the study of individuals, groups, or organizations and the processes

they use to choose, protect, and organize of products, services, experiences, or ideas to satisfy

needs and the impacts that these processes have on the consumer and society.

Distribution Management is a collection of appliance designed to monitor & control the

entire distribution system efficiently and reliably. It acts as a decision support system to assist

the control room and field operating personnel with the monitoring and control of the electric

distribution system. Improving the reliability and quality of service in terms of reducing

outages, minimizing outage time, maintaining acceptable frequency and voltage levels are the

key deliverables of a DMS.

Market research it is any organized effort to gather information about target markets or

customers. It is a very important constituent of business strategy. The term is commonly

interchanged with marketing research; however, specialist practitioners may wish to draw a

distinction, in that marketing research is concerned specifically about marketing processes,

while market research is concerned specifically with markets.

Retailing is the deal of goods and services from individuals or businesses to the end-user.

Retailers are part of an integrated structure called the supply chain. A retailer purchases

goods or products in large quantities from manufacturers directly or through a wholesale, and

then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed

locations like stores or markets, door-to-door or by delivery. Retail is the process of selling

consumer goods and/or services to customers through multiple channels of distribution to

earn a profit. Shopping generally refers to the act ofexchangeproducts and services.

Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done

as anentertainingactivity. Recreational shopping often involves window shopping (just

looking, not buying) and browsing and does not always result in a purchase

Bazaar (Market) is a location where goods and services are exchanged. The conventional

market plazaisacityopen area where traders set up stalls and buyers browse the stores. This

kind of market is very old, and countless such markets are still in operation around the whole

world.



In some parts of the world, the retail business is still dominated by small family-run stores,

but this market is increasingly being taken over by largeretailmanacles. Most of these stores

are called high street stores. Gradually high street stores are being re-grouped at single

locations called malls. These are more defined and planned spaces for retail stores and

brands.

Types by products

Retail is usually classified by type of products as follows:

1. Food products — typically require cold storage facilities.

2. Hard goods or durable goods ("hard-line

retailers")automobiles,appliances,electronics,furniture,sportinggoods,lumber,

3. Soft goods or consumables like clothing, other fabrics, footwear, cosmetics,

medicinesandstationery. Goods that are consumed after one use or have a limited period

(typically under three years) in which you may use them.

4. Arts: Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift

shops, and supplies for them.

Types by marketing strategy

There are the following types of retailers by marketing strategy:

Department store are very large stores offering a huge assortment of "soft" and "hard goods;

often bear a resemblance to a collection of specialty stores. A retailer of such store carries

variety of categories and has broad assortment at average price. They offer considerable

customer service.

Discount store, tend to offer a wide array of products and services, but they compete mainly

on price offers extensive assortment of merchandise at affordable and cut-rate prices.

Normally, retailers sell less fashion-oriented brands.

Warehouse store, Warehouses that offer low-cost, often high-quantity goods piled on pallets

or steel shelves; warehouse clubs charge a membership fee.

Variety store, stores offer extremely low-cost goods, with limited selection.

Demographic, Retailers that aim at one particular segment

Mom-And-Pop, small retail outlet owned and operated by an individual or family they

focuses on a relatively limited and selective set of products.



Specialty store, A specialty store has a narrow marketing focus - either specializing on

specific merchandise, such as toys, shoes, or clothing, or on a target audience, such as

children, tourists, or oversize women. Size of store varies - some specialty stores might be

retail giants such as Toys "R" Us, Foot Locker, and The Body Shop, while others might be

small, individual shops such asNutters of Savile Row. Such stores, regardless of size, tend to

have a greater depth of the specialist stock than general stores, and generally offer specialist

product knowledge valued by the consumer. Pricing is usually not the priority when

consumers are deciding upon a specialty store; factors such as branding image, selection

choice, and purchasing assistance are seen as important. They differ from department

tstoresand supermarkets which carry a wide range of merchandise.

Boutique, concept stores are similar to specialty stores. Concept stores are very small in size,

and only ever stock one brand. They are run by the brand that controls them.

General store is a rural store that supplies the main needs for the local community;

Convenience store provides limited amount of merchandise at more than average prices with

a speedy checkout. This store is ideal for emergency and immediate purchases as it often

works with extended hours, stocking everyday;

Hypermarkets, provides variety and huge volumes of exclusive merchandise at low

margins. The operating cost is comparatively less than other retail formats.

Supermarket is a self-service store consisting mainly of grocery and limited products on non

food items.

Mall, has a range of retail shops at a single outlet. They can include products, food and

entertainment under one roof. Malls provide 7% of retail revenue in India, 10% in Vietnam,

25% in China, 28% in Indonesia, 39% in the Philippines, and 45% in Thailand.

Customer service is the "sum of acts and elements that allow consumers to receive what they

need or desire from your retail establishment." It is important for a sales associate to greet the

customer and make himself available to help the customer find whatever he needs. When a



customer enters the store, it is important that the sales associate does everything in his power

to make the customer feel welcomed, important, and make sure he leaves the store satisfied.

Giving the customer full, undivided attention and helping him find what he is looking for will

contribute to the customer's satisfaction. For retail store owners, it is extremely important to

train yourself and your staff to provide excellent customer service skills. By providing

excellent customer service, you build a good relationship with the customer and eventually

will attract more new customers and turn them into regular customers. Looking at long term

perspectives, excellent customer skills give your retail business a good ongoing reputation

and competitive advantage.

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