SBI ASSOCIATES PO 2014 - Marketing Notes - II
Hello Readers,
As promised, here we are providing you all the Marketing Notes for SBI Associates PO 2014. Please refer to the previous post of the Marketing Notes too. The link is given at the end of the post. Happy Reading!!
What is a good?
It can be defined as something that is intended to satisfy some wants or needs of a customer with some economic utility.
Types:
On the basis of tangibility
(a) Tangible goods – However in economics, all goods are considered tangible but in reality certain classes are not tangible like information. All tangible goods occupy physical space.
(b) Intangible goods - Cannot be perceived by touch. E.g. information (it is different from services because final in goods can be transferrable and traded but not services)On the basis of relative elasticity
(a) Elastic goods – It is one for which there is a relatively large change in quantity due to a relatively small change in the price.
(b) Inelastic goods – It is one for which there is very little change in quantity due to relative change in the price.
Note –
1. Normal goods – Elasticity is greater than zero.
2. Inferior goods – Elasticity is smaller than zero.
3. Luxury goods – Elasticity is greater than one.
4. Necessary goods – Elasticity is less than one.
Other types:
(a) Convenience goods – These are easily available to consumers without any extra efforts. It mostly comprises non-durable goods. E.g. – fast foods, sweets, cigarettes, etc.
(b) Staple convenience goods – This type comprises basic demands like breed, sugar, milk etc.
(c) Impulse convenience goods – These are goods which are bought without any prior planning with impulse. E.g. – Candies, chocolates, wafers.
(d) Consumer goods – These are final goods that are brought from retail stores to meet the needs and wants.
(e) Emergency goods – These are goods that are bought quickly when they are urgently needed in the time of the crisis. These are typically distributed at the stores.
E.g. – Tents, flashlights, lighters, shovels, umbrellas etc.
(f) Specialty goods – These goods are unique or special enough to persuade the consumer to exert unusual effort to obtain them. It means that they are bought after extensive research. E.g. – Designer clothes, painting, perfumes, limited edition cars, stunning design, typically expensive, antiques, diamonds, wedding gowns etc.
What is a customer?
Customer can be defined as the recipient of a good, service, product or idea obtained from a seller, vendor or supplier for a monetary or their valuable consideration.
Types:
(a) Intermediate customer – These are who purchases goods for resale.
(b)Ultimate customer – These are consumers.
What is a Captive Market?
Captive markets are markets where the potential consumers face a severely limited amount of competitive suppliers; Their only choices are to purchase what is available or to make no purchase at all. Captive markets result in higher prices and less diversity for consumers. The term therefore applies to any market where there is a monopoly or oligopoly.
Examples of captive market environments include the food markets in cinemas, airports, and
sports arenas and food in jails prisons.
What is Marketing?
Marketing is the activity, set of institutions and process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. It is a function that links consumers, public to the marketer of a product through information. Here the information addresses the issues regarding all aspects of the products. Products can be tangible or intangible. It differs from selling because in selling, the main motive remains the maximization of profit by way of selling a product but with absence of value but in marketing value is also considered at the par with profit. So marketing is a integrated effort to discover, create, raise and satisfy customer needs with values. It is one of the competing concepts which can be looked as an organizational umbrella function to benefit the organization with superior customer value.
What is niche marketing?
Niche marketing is a type of marketing in which a narrowly defined customer group is targeted. It focuses on small segment of consumers who have unique and similar needs.
The market in which this marketing technique is applied is called niche market. E.g. –Blackberry application or Android application, sports car, luxury cars, internet based marketing etc.
This technique of marketing can be contrasted with mass marketing.
What is Relationship Marketing?
Relationship Marketing is a technique of marketing which involves creating and maintaining strong ties with customers and other parties like dealers, suppliers, contractors, shareholders, stakeholders, employees etc.
This technique revolves around a concentric chain of long term relationship. It also includes Partner Relationship Management (PRM) apart from Customer Relationship Management (CRM). Its main objective is to find, maintain and enhance the customer base and mutually long term satisfying relationship.In Relationship Management buyer and seller continuously improves their understanding and thus they build up more loyalty towards each other. The final product of this system is a
unique asset that is “marketing network”.
This marketing technique includes following steps:
As promised, here we are providing you all the Marketing Notes for SBI Associates PO 2014. Please refer to the previous post of the Marketing Notes too. The link is given at the end of the post. Happy Reading!!
What is a good?
It can be defined as something that is intended to satisfy some wants or needs of a customer with some economic utility.
Types:
On the basis of tangibility
(a) Tangible goods – However in economics, all goods are considered tangible but in reality certain classes are not tangible like information. All tangible goods occupy physical space.
(b) Intangible goods - Cannot be perceived by touch. E.g. information (it is different from services because final in goods can be transferrable and traded but not services)On the basis of relative elasticity
(a) Elastic goods – It is one for which there is a relatively large change in quantity due to a relatively small change in the price.
(b) Inelastic goods – It is one for which there is very little change in quantity due to relative change in the price.
Note –
1. Normal goods – Elasticity is greater than zero.
2. Inferior goods – Elasticity is smaller than zero.
3. Luxury goods – Elasticity is greater than one.
4. Necessary goods – Elasticity is less than one.
Other types:
(a) Convenience goods – These are easily available to consumers without any extra efforts. It mostly comprises non-durable goods. E.g. – fast foods, sweets, cigarettes, etc.
(b) Staple convenience goods – This type comprises basic demands like breed, sugar, milk etc.
(c) Impulse convenience goods – These are goods which are bought without any prior planning with impulse. E.g. – Candies, chocolates, wafers.
(d) Consumer goods – These are final goods that are brought from retail stores to meet the needs and wants.
(e) Emergency goods – These are goods that are bought quickly when they are urgently needed in the time of the crisis. These are typically distributed at the stores.
E.g. – Tents, flashlights, lighters, shovels, umbrellas etc.
(f) Specialty goods – These goods are unique or special enough to persuade the consumer to exert unusual effort to obtain them. It means that they are bought after extensive research. E.g. – Designer clothes, painting, perfumes, limited edition cars, stunning design, typically expensive, antiques, diamonds, wedding gowns etc.
What is a customer?
Customer can be defined as the recipient of a good, service, product or idea obtained from a seller, vendor or supplier for a monetary or their valuable consideration.
Types:
(a) Intermediate customer – These are who purchases goods for resale.
(b)Ultimate customer – These are consumers.
What is a Captive Market?
Captive markets are markets where the potential consumers face a severely limited amount of competitive suppliers; Their only choices are to purchase what is available or to make no purchase at all. Captive markets result in higher prices and less diversity for consumers. The term therefore applies to any market where there is a monopoly or oligopoly.
Examples of captive market environments include the food markets in cinemas, airports, and
sports arenas and food in jails prisons.
What is Marketing?
Marketing is the activity, set of institutions and process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. It is a function that links consumers, public to the marketer of a product through information. Here the information addresses the issues regarding all aspects of the products. Products can be tangible or intangible. It differs from selling because in selling, the main motive remains the maximization of profit by way of selling a product but with absence of value but in marketing value is also considered at the par with profit. So marketing is a integrated effort to discover, create, raise and satisfy customer needs with values. It is one of the competing concepts which can be looked as an organizational umbrella function to benefit the organization with superior customer value.
What is niche marketing?
Niche marketing is a type of marketing in which a narrowly defined customer group is targeted. It focuses on small segment of consumers who have unique and similar needs.
The market in which this marketing technique is applied is called niche market. E.g. –Blackberry application or Android application, sports car, luxury cars, internet based marketing etc.
This technique of marketing can be contrasted with mass marketing.
What is Relationship Marketing?
Relationship Marketing is a technique of marketing which involves creating and maintaining strong ties with customers and other parties like dealers, suppliers, contractors, shareholders, stakeholders, employees etc.
This technique revolves around a concentric chain of long term relationship. It also includes Partner Relationship Management (PRM) apart from Customer Relationship Management (CRM). Its main objective is to find, maintain and enhance the customer base and mutually long term satisfying relationship.In Relationship Management buyer and seller continuously improves their understanding and thus they build up more loyalty towards each other. The final product of this system is a
unique asset that is “marketing network”.
This marketing technique includes following steps:
- Creating a customer database
- Identifying key customers
- Creating details
- Getting closer through different channels
- Maintaining relationship
- Advantages of Relationship Management
- Consistency of business within the marketing network
- Long term brand recognition
- Easy redressal of customer grievances.
What is the market?
Any structure which may be a place or may not be can be defined as the market that allows buyers and sellers to exchange any type of goods, services and information. It can also be called as an arrangement constructed by buyers and sellers. It facilitates trade and enables the distribution of resources in a society.
Thus a market:
1. It establishes the prices of goods and services.
2. It consists of systems, institutions, procedures, social relations and infrastructure.
3. It brings a sense of competition.
4. It works on a basic force of demand and supply.
Types of market:
On the basis of place
1. Local market
2. National market
3. International market
On the basis of time
1. Very short period market
2. Short period market
3. Long period market
4. Very long period market
On the basis of competition
1. Perfectly competitive – It consists many sellers. E.g. – Mobile market, internet providers etc.
2. Imperfectly competitive
(a) Monopoly – one seller. E.g. – Indian Railway
(b) Duopoly – two sellers.
(c) Oligopoly – few sellers. E.g. – petroleum product market
(d) Monopolistic – many sellers
On the basis of product
1. Consumer market - These are the markets where products and services bought by consumers for their own and family use.
Types:
(a) Fast moving consumers goods (FMCG)
E.g. – Biscuits, soaps, detergents, newspapers etc.
(b) Consumer durables
E.g. – Freeze, TV, computers, motorbikes, laptops etc.
(c) Soft goods - It is like consumer durable.
E.g. Clothes, shoes, specs etc.
(d) Services
E.g. – Health insurance, beauty parlours, insurance etc.
2. Industrial market- These markets are not intended directly to consumers but among businessmen.
E.g. – Accountancy, legal advice, security services, waste disposal services etc.
What is a market economy?
It is an economy system in which economic decisions regarding monetary control, products and their production and methods and control over distribution are based on supply and demand. These are decided solely by the aggregate interaction of a country’s citizens as consumers and businesses and there is very little government intervention or central planning.
Since in market economy, markets are governed by the law of supply and demand, the market itself will determine the price if goods and services.
Businesses can decide which goods to produce and in what quantity and consumers can decide what they want to purchase and at what price. The prices of goods and services are determined in a free price system. In such economy, the government allows and protects ownership of property and exchange. Government plays an important role as the protector of property rights and individual liberty.
In theory, market economy is completely different from practical market economy. However most developed nations today can be classified as mixed economies, they are often said as market economies because they allow market forces to drive most of their activities, typically engaging in government intervention only to the extent that it is needed to provide stability. It can be contrasted with planned economy or centrally planned economy, in which government decisions drive most aspects of a country's economic activity.
What do you understand by Market Penetration?
Market Penetration is basically a strategy to increase the base or market share of the existing product. It is one of the four growth strategies of the ‘product market growth matrix’ defined by Ansoff. It occurs when a company penetrates a market in which current or similar products already exist.
Market Penetration can be done by the following means:
(a) Attracting nonusers of the product
(b) Encouraging existing users to use more quantity of products.
(c) Advertisement
(d) Mega sales
(e) Lowering prices
(f) Bundling
Market Penetration can also be mathematically calculated using following formula –
Market Penetration = (sales volume of the product × 100) ÷ total sales volume of all competing products.
What is a product?
A product can be defined as anything which can be offered to a market to satisfy a need or want. Here want or need can be different from different angles. For example if a product ‘biscuit’ is sold in a market, it is satisfying the need of stomach of a person and same time maximizing profit of the company selling the biscuit. In retail product are called as merchandise.
Product can be classified as:
1. Tangible– Vehicle, cloth, gadget etc.
2. Intangible – Cannot be perceived by touch. E.g. – sad songs, action movies etc.
3. Branded– It carries a brand name.
4. Unbranded– It does not carry any brand name.
Any structure which may be a place or may not be can be defined as the market that allows buyers and sellers to exchange any type of goods, services and information. It can also be called as an arrangement constructed by buyers and sellers. It facilitates trade and enables the distribution of resources in a society.
Thus a market:
1. It establishes the prices of goods and services.
2. It consists of systems, institutions, procedures, social relations and infrastructure.
3. It brings a sense of competition.
4. It works on a basic force of demand and supply.
Types of market:
On the basis of place
1. Local market
2. National market
3. International market
On the basis of time
1. Very short period market
2. Short period market
3. Long period market
4. Very long period market
On the basis of competition
1. Perfectly competitive – It consists many sellers. E.g. – Mobile market, internet providers etc.
2. Imperfectly competitive
(a) Monopoly – one seller. E.g. – Indian Railway
(b) Duopoly – two sellers.
(c) Oligopoly – few sellers. E.g. – petroleum product market
(d) Monopolistic – many sellers
On the basis of product
1. Consumer market - These are the markets where products and services bought by consumers for their own and family use.
Types:
(a) Fast moving consumers goods (FMCG)
- High volume
- Low unit cost
- Fast and frequent purchase
E.g. – Biscuits, soaps, detergents, newspapers etc.
(b) Consumer durables
- Low volume
- High unit cost
E.g. – Freeze, TV, computers, motorbikes, laptops etc.
(c) Soft goods - It is like consumer durable.
- Low/high volume
- High/low unit cost
- Frequently purchased
E.g. Clothes, shoes, specs etc.
(d) Services
- Targeted consumers
- Brand name more important
- Intangible
E.g. – Health insurance, beauty parlours, insurance etc.
2. Industrial market- These markets are not intended directly to consumers but among businessmen.
- Finished goods market
- Raw material market
- Services
E.g. – Accountancy, legal advice, security services, waste disposal services etc.
What is a market economy?
It is an economy system in which economic decisions regarding monetary control, products and their production and methods and control over distribution are based on supply and demand. These are decided solely by the aggregate interaction of a country’s citizens as consumers and businesses and there is very little government intervention or central planning.
Since in market economy, markets are governed by the law of supply and demand, the market itself will determine the price if goods and services.
Businesses can decide which goods to produce and in what quantity and consumers can decide what they want to purchase and at what price. The prices of goods and services are determined in a free price system. In such economy, the government allows and protects ownership of property and exchange. Government plays an important role as the protector of property rights and individual liberty.
In theory, market economy is completely different from practical market economy. However most developed nations today can be classified as mixed economies, they are often said as market economies because they allow market forces to drive most of their activities, typically engaging in government intervention only to the extent that it is needed to provide stability. It can be contrasted with planned economy or centrally planned economy, in which government decisions drive most aspects of a country's economic activity.
What do you understand by Market Penetration?
Market Penetration is basically a strategy to increase the base or market share of the existing product. It is one of the four growth strategies of the ‘product market growth matrix’ defined by Ansoff. It occurs when a company penetrates a market in which current or similar products already exist.
Market Penetration can be done by the following means:
(a) Attracting nonusers of the product
(b) Encouraging existing users to use more quantity of products.
(c) Advertisement
(d) Mega sales
(e) Lowering prices
(f) Bundling
Market Penetration can also be mathematically calculated using following formula –
Market Penetration = (sales volume of the product × 100) ÷ total sales volume of all competing products.
What is a product?
A product can be defined as anything which can be offered to a market to satisfy a need or want. Here want or need can be different from different angles. For example if a product ‘biscuit’ is sold in a market, it is satisfying the need of stomach of a person and same time maximizing profit of the company selling the biscuit. In retail product are called as merchandise.
Product can be classified as:
1. Tangible– Vehicle, cloth, gadget etc.
2. Intangible – Cannot be perceived by touch. E.g. – sad songs, action movies etc.
3. Branded– It carries a brand name.
4. Unbranded– It does not carry any brand name.
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