Business Studies Ii Chapter 11 Marketing

There are various functions of marketing described as below:

1. Marketing research: This refers to the study of a market so that customers needs, desires, and preferences can be identified and a product can be design and developed as per their requirement.
2. Marketing planning: The marketing plan involves laying out specific strategies to increase market share, promotion program and increase production capacity to meet increased demand.
3. Product planning development: A good design improves the quality of the product and makes it attractive and competitive in the target market. Development of product should be as per requirement of customers.
4. Packaging and labeling: Packaging refers to designing the package for the products and labeling refers to designing the label to be put on the package. Both play an important role in marketing the product.
5. Branding: Branding refers to giving a name, sign or symbols to the product. Brand name provides business an identity and distinguishes its product from that of its competitors.
6. Customer support services: These services are related to handling customers after goods are sold to them. Its main aim is to maintain a good relationship with customers.
7. Storage and warehousing: For smooth flow and regular supply of goods, business needs to maintain an appropriate stock level and thus require warehousing or storage facilities.
8. Transportation: Transportation facilitates movement of goods from the manufactures to the consumers and thus creates place utility.
9. Promotion: Promotional techniques are used to create product awareness amongst the potential target customers and persuade them to purchase the product. Like advertising, personal selling, publicity and sales promotion etc.
10. Standardization and grading: Standardization refers to producing products with predetermined specifications and grading classifies the product into different groups on the basis of size, quality etc.
11. Price Fixing: Price of the product affects the success or failure of a product in the market. Demand of the product is inversely related to its price. The marketers analyses all the factors, while setting prices.

Definition: According to Philip Kotler, “Marketing is that social process by which individuals and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others.”

Features: Following are the main features of marketing:
(i) Need and Want: Marketing is the process of fulfilling the needs and wants of the consumers. All the people have almost the same needs but their wants happen to be different, e.g., feeling hungry is a need but satisfying it by eating only sambhar and dosa is a want. A seller tries to find out the needs of the consumers and how those needs are to be satisfied.

(ii) Creating a Market Offering: It refers to provide complete information about the product and services e.g., providing information about the name of product and service, type, price, size, centre of availability, etc. A good market offer is always prepared keeping in mind the needs and priorities of the customers.

(iii) Customer Value: A buyer analyses the cost and the satisfaction that a product provides before buying it. When he find that the satisfaction, that it provides out weighs the cost factors, only then he buys it. The seller should manufacture the product keeping in view this tendency of the customer.

(iv) Exchange Mechanism: Literal meaning of marketing is exchanging things. Marketing has two sides — buyer and seller. Marketing becomes possible only by the medium of exchange between the two. For example, the seller gives goods and services and in exchange the buyer gives money or something equivalent to it. These days the distance between the place of production and the place of consumption has increased. To lessen this distance the help of many intermediaries like the agents, wholesalers, retailers, etc. is taken. All these reduce this distance through the medium of marketing. Therefore, it can be said that exchange is the essence of marketing.

(i) ‘Bending the customer according to the product.’ – This statement is related with selling concept.

(ii) ‘Developing the product according to customer needs.’ – This statement is related with marketing concept.

Following are the main differences:

Marketing Planning: In order to achieve the objectives of an organisation with regard to its marketing, the marketeer chalks out his marketing plan. For example, a company has a 25 per cent market share of particular product. The company wants to raise it to 40 per cent. In order to achieve this objective the marketeer shall have to prepare a plan in respect of the level of production and promotion efforts. It will also be decided that who will do what, when and how. To do this is known as marketing planning.
Product Designing and Development: Product designing plays an important role in product selling. The company whose product is better and attractively designed sales will be more than the product of a company whose design happens to be weak and unattractive. In this way, it can be said that the possession of a special design affords a company competitive advantage. It is important to remember that it is not sufficient to prepare a design in respect of a product, but it is more important to develop it continuously.

Those companies who believe in this philosophy are of the opinion that if the quality of goods or services is of good standard, the customers can be easily attracted. The basis of this thinking is that the customers get attracted towards the products of good quality. On the basis of this philosophy or idea these companies direct their marketing efforts to increasing the quality of their product.

This concept stresses not only on the consumer satisfaction but also gives importance to Consumer Welfare/Societal Welfare. This concept is almost a step further than the marketing concept. Under this concept, it is believed that mere satisfaction of the consumers would not help and the welfare of the whole society has to be kept in mind.

Those companies who believe this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding sale. Keeping in mind the same philosophy these companies put in all their marketing efforts in reducing the cost of production and strengthening their distribution system. In order to reduce the cost of production and to bring it down to the minimum level, these companies indulge in large scale production. This helps them in affecting economies of large scale production. Consequently, the cost of production per unit is reduced.

Those companies who believe in this concept think that leaving alone the customers will not help. Instead there is a need to attract the customers towards them. They think that goods are not bought but they have to be sold. The basis of this thinking is that the customers can be attracted. Keeping in view this concept these companies concentrate their marketing efforts towards educating and attracting the customers. In order to achieve it, they resort to advertising, personal selling, sales promotion etc. In such a case their main thinking is ‘selling what you have’.

Distinction between Product and Production

(i) It is production philosophy.

(ii) (a) Main Focus: Quantity of Production

(b) Means: Balanced prices and easy availability.

     Ends: Profit through maximum production.

(i) It is product philosophy.

(ii) (a) Main Focus: Quantity of product.

(b) Means: Product improvement.

     Ends: Profit through providing better quality products.

(i) It is selling philosophy.

(ii) (a) Main Focus: Attracting consumers.

(b) Means: Advertising, personal selling and sales promotion.    
     Ends: Profit through maximum sales.

According to the modern view, market refers to the real and the group of potential buyers of products and services.

A customer means people or organisations who want to fulfill their needs.

A marketeer means a person or an organisation who provides goods or services to satisfy the needs of the customers.

(i) Goods Marketeer and (ii) Service Marketeer.

Need means a feeling of deficiency of something.

When need is seen in some special context (e.g., religion individuality, culture, etc.,) it is called want.

It refers to provide complete information about the product or service.

Exchange is known as the essence of marketing as marketing is not possible without it.

It is related with Marketing concept.

It is related with selling concept.

It is related with selling concept.

Societal concept of marketing.

Meaning: It refers to the aggregate of decisions taken with a view to successfully completing different marketing activities.

Components: Marketing decisions are mainly in respect of four variables, viz., product, price, promotion and place or physical distribution. These variables are called elements of marketing mix.

All four elements of marketing mix are described as under:

(i) Product Mix: It refers to the combination of all decisions relating to product. These decisions are mainly with regard to dimensions of the product (Product line, Product width, Line length, Product depth and Product consistency), its branding, packaging, labelling, colour, design, quality, size, after sale service, its weight etc. These decisions play an important role in attracting the customers to the product.

(ii) Price Mix: It refers to all those decisions which are concerned with the price fixation of any product or service. Determination of fair price of the product is a very important but difficult function of marketing manager. Fair price is that price which is acceptable both to the customers as well as producers. Price is one of the major factors which contribute a lot to finalise the deal between buyer and seller. Under price mix, besides fixing the price of the product or service, decisions regarding credit sale, discount, etc. are also included.

(iii) Promotion Mix: It refers to informing the customers about the product, persuading them to purchase these products. This job is done by the company through the medium of advertisement, personal selling, sales promotion and publicity. Decision with regard to all these factors directly influence the sale of the product.

(iv) Place Mix: It refers to the combination of all decisions relating to make products available to consumers. If the product is not available on right time, in right quantity and at right place then consumer will not be able to buy it. In such a situation, all activities of Marketing Mix will turn futile. So to make Marketing Mix a success, Place Mix is very important. To make the product reach the consumers the decisions regarding the following are included in ‘Place Mix’:

(a) Channels of Distribution: It refers to that path through which products reach consumers. In this path many people and firms participate.

(b) Physical Distribution: It involves decisions relating to the transportation, inventory, warehousing and order processing of goods.

Place mix: It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and consumption.

A manufacturer should keep into consideration the following factors while selecting a channel of distribution.

1. Product-related factors:
   1. Unit Value of the Product: When the product is very costly it is best to use small distribution channel. For example, Industrial Machinery or Gold Ornaments are very costly products that's why for their distribution small distribution channel is used. On the other hand, for the less costly products long distribution channel is used.
   2. Perishability: A manufacturer should choose minimum / no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.
2. Market-related factors:
   1. Number of Buyers: If the number of buyers is large then it is better to take the services of middlemen for the distribution of the goods. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers are less.
   2. Types of Buyers: Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the product belong to general category then there can be more middlemen. But in case of industrial buyers there can be less middlemen.
3. Company-related factors:
   1. Desire to control the channel of Distribution: Manufacturer ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer. For example, electronic goods sector with a motive to control the service levels provided to the customers at the point of sale are resorting to company-owned retail counters.
   2. Financial Strength: A company which has strong financial base can evolve its own channels. On the other hand, financially weak companies would have to depend upon middlemen.
      
4. Government-related factors: Considerations related to the government also affect the selection of a channel of distribution. For example, only a license holder can sell medicines in the market according to the law of the government. In this situation, the manufacturer of medicines should take care that the distribution of his product takes place only through such middlemen who have the relevant license.

In Physical Distribution of products four activities are included and decisions related to these activities are taken. These four activities are as follows:

(i) Transportation: Transportation is that activity through which products are moved from one place to another. By making the products reach at desirable place increases the importance and value of those products. Many means of transportation are available, like — road, railway, air, water, pipeline etc.

(ii) Inventory: By inventory we mean the stock of raw material, semi-finished goods and finished goods held in anticipation of sales or use. How much inventory should be kept for various items? This is an important decision in Physical Distribution. The main reason why this decision is important is that if the inventory is either more or less than required, both the situations have their advantages and limitations.

(iii) Warehousing: Oftenly it is noticed that it takes some time between purchasing/ manufacturing and selling. For this time period material has to be kept in stock. Under warehousing activity following decisions regarding the inventory of material are taken:

(a) Which is a better option? (To own or to rent a warehouse)

(b) Which is the right location for a warehouse? (Nearer to factory or nearer to market).

(c) Which decision is more apposite? (To locate the warehouse at one place or at different places)
(iv) Order Processing: Order Processing means the process which is followed to fulfill the material order of the customer. Different steps of an order processing are as follows:

(a) Orders placed by consumers to salesperson.

(b) Transmission of order by salesperson to company.

(c) Entry of order in Company Office.

(d) Evaluate the reputation of customer.

(e) Check inventory and prepare scheduling.

(f) Shipment of material in accordance to the order.

(g) Receive Payment.

Meaning: It refers to all those decisions which are concerned with the price fixation of any product or service.

Factors to be kept in mind before Pricing:

(i) Cost of Production: Cost of production is the main component of price. No company can sell its product or services at less than the cost of production. Thus, before price fixation, it is necessary to compile data relating to cost of production and keep that in mind. There are two types of cost: (a) Fixed Cost (e.g., Rent of building, Salary of permanent staff, etc.)

(b) Variable Cost (e.g., Material, Labour, etc.). At least the price should be able to recover the variable cost as the fixed cost are incurred whether the production takes place or not.

(ii) Demand for Product: Intensive study of demand for product and services in the market be undertaken before price fixation. If demand is relatively more than supply, higher price can be fixed.

(iii) Price of Competitive Firms: It is necessary to take into consideration prices of the products of the competing firms prior to fixing the price. In case of cut-throat competition it is desirable to keep price low.

(iv) Purchasing Power of Customers: What is the purchasing power of the customers and at what price and how much they can purchase? It should also be taken into consideration.

(v) Government Regulation: If the price of the commodity and services are to be fixed as per the regulation of the government, it should also be bome in mind.

(vi) Objective: Usually, at the time of price fixation a certain amount of profit is added to the cost of production. If company’s objective is to earn wants higher profit it may add higher amount of it.

(a) It is place mix. It refers to the combination of all decisions relating to make products available to consumers. If the product is not available on right time, in right quantity and at right place then consumer will not be able to buy it. In such a situation, all activities of Marketing Mix will turn futile. So to make Marketing Mix a success, Place Mix is very important.

(b) Components: Following are the components of Place Mix:

(i) Channels of Distribution: Channels of Distribution means that path through which products reach consumers. In this path many people and firms participate. They are called Middleman/Intermediary. In these mainly agents, wholesalers and retailers are included. Channels of distribution can be small or large. Through the medium of distribution channels the hurdles of time, place and possession are eliminated and goods/services are made available to consumers from manufacturers.

(ii) Physical Distribution: Under its second element Physical Distribution, the decision is taken about how goods will move from production place to consumption place in reality. It involves decisions relating to the transportation, inventory, warehousing and order processing of goods. Physical distribution by making the products reach at right time and on right place generates Time and place utility in them. That's why it is said physical distribution plays a major role for an important element ‘Place’ of Market Mix.

Meaning: It refers to the group of those activities which are related with the designing and production of the containers in which the products are packed.

Importance: The importance of packaging has enhanced because of the following reasons:

(i) Rising Standards of Health and Sanitation: As the people are becoming health conscious they like to buy packed goods. The reason is that the chances of adulteration in such goods are minimised.

(ii) Self Service Outlets: Now-a-days self service retail shops are becoming very popular, particularly in big cities. Because of this, the role of sales assistants has to gone to packaging.

(iii) Innovational Opportunity: With the increasing use of packaging more innovational opportunity becomes available in this area for the researchers.

(iv) Product Differentiation: Packaging is helpful in creating product differentiation. The colour, material and size of pakage makes difference in the perception of the buyers about the quality of the product.

(v) Product Promotion: Packaging simplifies the work of sales promotion. Packing material in the house reminds the consumers constantly about the product. In this way, the packaging performs the role of a passive salesman. Consequently, it increases the sales.

(i) Simple and Short, (ii) Easily Pronounceable, (iii) Suggestive, (iv) Distinctive.

Branding: It is the process of giving a name of or a sign or a symbol to a product. Such as Polo, LG etc.

A good brand name should contain the following characteristics:

1. Simple and Short: A brand name should be simple and short so that there is no complication or oddity related to its name. For example, the brand names like LUX, BATA, BINACA and DALDA have these qualities.
2. Easily Pronounceable: A brand name should be easily pronounceable. For example, TATA, BATA, FIFTY-FIFTY etc.
3. Suggestive: Brand name should be self-explanatory thereby suggesting the inherent quality of the product. For example, HAJMOLA indicates the curing of an in-digestive system and the product like UJALA suggests more whiteness and brightness.
4. Distinctive: Brand should be so distinctive that it highlights itself in the group of other brand names. Such as, Tide, Cinthol, Perk, Nirala etc.
5. Apart from the above features, the selection of words of the brand name should not convey any negative and confusing meaning in different languages. For example, the brand name of one Indian Car is Ambassador NOVA. Whereas the literal meaning of NOVA in spanish language is ‘does not go’ which would suggest that buyer should avoid purchasing that particular product.

Generally consumers prefer to buy goods directly from the producers but it is not always possible. Instead of it, consumers are supposed to take the help of channel of distribution, i.e., middleman. In this channel, mainly agents, wholesalers and retailers are included. Following reasons are possible for this situation:

(i) Geographical Difference: There are limited number of producers of any product while consumers are unlimited and scattered over a wide geographical areas. Hence, it is not possible to buy directly from the producers.

(ii) More Risk: At the time of transporting of goods from one place to another, element of risk is always there. By using channel of distribution such type of risk can be avoided.

(iii) Heavy Buying Costs: It is a costly and difficult task to contact directly to the producers.

(iv) Unavailability of Credit Facility: Generally, it is not possible to have credit facility while purchasing directly from the producers.

Channels of distribution mean the path through which the ownership as well as possession of goods transfer to the consumer from the producer.

Functions of Channels of Distribution:

The following are the functions of distribution.

(i) Sorting: Middlemen purchase goods from various sources. Generally these goods are not of same size, quality and nature. After receiving goods they sort them into homogeneous groups on the basis of size, quality and nature.

(ii) Accumulation: It involves accumulation of various homogeneous goods into larger quantity so that continuous flow of supply can be maintained.

(iii) Allocation: It involves dividing homogeneous goods into various marketable lots. For example, a product may be divided into convenient packs of say 10 kg, 5kg, 2kg, and 1 kg. In this way the requirement of various types of buyers may be satisfied.

(iv) Assorting: It involves maintaining stocks of a large number of goods so that consumers can satisfy their requirement by visiting at a single shop.

(v) Product Promotion. All the intermediaries do encourage the consumers by organising advertising and other sales promotion activities. They also participate in demonstrations, special displays, contests, etc.

(vi) Negotiation: Middlemen negotiate with producer as well as with consumers regarding price, quality, guarantee and other related matters. They help in transfer of ownership in goods.

(vii) Risk Taking: Middlemen as owner of goods assume risks in the form of price and demand fluctuation on the one hand and spoilage and destruction on the other.

Manufacturer and consumer are two major components of market. Intermediaries perform the duty to eliminate the distance between the two. There is no standardized level which proves that the distance between the two is eliminated. Based on necessity help of one or more intermediaries could be taken and even this is possible that there is no intermediary. Their description is as follows:

(i) Direct Channel or Zero Level Channel: When manufacturer instead of selling the goods to the intermediary sells it directly to the consumer then this is known as Zero Level Channel. Retail outlets, mail order selling, internet selling and selling through own sales force are the examples of this channel. Some companies which sell goods through this medium are as follows:

— BATA SHOE CO, — EUREKA FORBES, — ASIAN SKY SHOP.

Zero Level Channel can be explained with the help of the followinq diagram:

(ii) Indirect Channels: When a manufacturer gets help of one or were middlemen to move goods from production place to the consumption place , the distribution channel is called indirect channel. Following are the main types of it:

(a) One Level Channel: In this method an intermediary is used. Here manufacturer sells the goods directly to the retailer instead of selling it to agents or wholesaler. This method is used for expensive watches and other like products. This method is also useful for selling FMCG (Fast Moving Consumer Goods). This channel is clarified in the following diagram:

(b) Two Level Channel: In this method/ medium manufacturer sells the material to the wholesaler, wholesaler to the retailer and then retailer to the consumer. Here wholesaler after purchasing material in large quantity from the manufacturer sells in small quantity to the retailer. Then retailers make the products available to consumers. This medium is mainly used to sell-soap, tea, salt, cigarette, sugar, ghee etc. This channel is more clarified in the following diagram:

(c) Three Level Channel: Under this one more level is added to Two Level Channel in the form of agent. Agent facilitates to reduce the distance between manufacturer and wholesaler. Some big companies who cannot directly contact wholesaler, they take the help of agents. Such companies appoint their agents in every region and sells the material to them. Then agents sell the material to wholesalers, wholesaler to retailer and in the end retailer sells the material to consumers. This channel is more clarified in the following diagram:

The below label helps to provide the following information:

(i) Brand Name: Dettol

(ii) Product Name: Liquid Hand Wash

(iii) Ingredients: It specifies its contents with which it is prepared.

(iv) Weight: Net Volume is given.

(v) MRP: Maximum Retail Price is given.

(vi) Manufactured By: Name and address of the manufacturing are given.

(vii) Usage: Direction for use are given.

(viii) Other Information: Manufacturing Date, Batch No. and Expiry Date are given.

(vii) Usage: Direction for use are given.

(viii) Other Information: Manufacturing Date, Batch No. and Expiry Date are given.

The above label helps to provide the following information:

(i) Brand Name: Slice

(ii) Product Name: Fruit Beverage/Fruit Juice

(iii) Nutritional Information: It specifies the way it affects our health.

(iv) Ingredients: It specifies contents with which it is prepared.

(v) Usage: Directions for use are given.

(vi) Expiry Date: Information regarding period of best use is given.

(vii) Manufactured By: Name and address of manufacturing company is given.

(viii) Other Information: Batch No., Manufacturing Date and MRP are given.

(ix) Weight: Net weight is given.

The above label helps to provide the following information:

(i) Brand Name: TATA TEA. It shows the name of the product and the manufacturer.

(ii) Grading: Premium is the name of a particular category of the product.

(iii) Weight: Net weight is given.

(iv) MRP etc.: MRP, Manufacturing Date and Batch Code are given.

(v) Ingredients: It specifies contents with which it is prepared.

(vi) Best Use Information: The period of best use is given.

(vii) Manufactured For: The name and address of the company for which the product is manufactured is given.

(viii) Nutritional Information: It specifies the way it affects our health.

Meaning : It refers to the group of those activities which are related with the designing and production of the containers in which the products are packed. Functions of Packaging:

(i) Product Identification: Packaging serves as an identification of the product. A product is packed in special sized, coloured and shaped container for keeping its difference from the products of competitors. For example, they yellow and black coloured pack of KODAK ROLL tells itself of its producer.

(ii) Product Protection: The main function of packaging is to provide protection to the product from dirt, insects, dampness and breakage. For example, the products like biscuit, jam, chips etc. need to be protected from environmental contact. That is why they are tightly packed.

(iii) Convenience: Packaging provides convenience in the carriage of the product from one place to another, in stocking and in consuming.. For example, the new pet bottles of COKE makes the carriage and stocking easier. Similarly, the pack of FROOTI provides convenience in its consumption.

(iv) Product Promotion: Packaging simplifies the work of sales promotion. Packing material in the house reminds the consumers constantly about the product. In this way, the packaging performs the role of a passive salesman. Consequently, it increases the sales..

Meaning : It refers to the process of preparing label.

Functions of Labelling: The various functions performed by labelling are as follows:

(i) Describe the Product and specify its Contents: A label provides complete information regarding the product. It mainly includes ingredients of the product, its usage, caution in use, care to be taken while using it, date of manufacturing, batch number, etc.

(ii) Identification of the Product or Brand: It is easier to identify a particular product among many with the help of labelling. For example, you as consumer want to select CINTHOL SOAP. The task of finding the desired soap from heap of various branded soaps becomes easier with the help of labelling.

(iii) Grading of Product: When a product has different qualities, labelling helps to find out which pack contains what type of quality. For example, Hindustan Unilever Ltd., manufactures three types of tea and to differentiate the each type of tea, the company uses Green, Red and Yellow coloured labels.

(iv) Help of Promotion of Products: The Fourth function of labelling is to promote sales. Sometimes a consumer gets encouraged to buy a product simply due to attractive label. Now-a-days labelling is used as an effective sales promoting tool.

Yes, I do agree with this statement. Product provides three types of satisfaction given as under:

(i) Functional Satisfaction: To wear the shirt and cover the body with it is an example of functional satisfaction.

(ii) Psychological Satisfaction: To feel more confident and active after wearing the shirt provides psychological satisfaction.

(iii) Social Satisfaction: Getting recognition after wearing shirt from the group of known people is social satisfaction.

Levels of Packaging: There are three levels of packaging as given below:

(i) Primary Packaging: It refers to that container which is very close to the product. In some cases, it is kept throughout the entire life of the product, such as shaving cream tube, match box, etc. In other cases, it is kept till the consumer is ready to use the product, such as, plastic cover of Britannia Cake.

(ii) Secondary Packaging: It refers to that container which is used for extra care of the product till the product is come into use, such as, card board box of shaving cream tube. When a consumer starts using the cream, he will dispose off the box but retain the primary packaging (e.g., plastic tube).

(iii) Transportation Packaging: It refers to that packaging which is necessary to use for transportation, identification and storage. For example, a big card board box which is containing say 100 units of shaving cream tubes.

Packaging aims at avoiding breakage, damage, destruction etc. of the goods during transit and storage. Packaging facilitates handling, lifting, conveying of the goods. Many a time customers demand goods in different qualities which necessitates special packaging. Packing material includes bottles, canister, plastic bags, tin or wooden boxes, jute bags, etc.

It refers to the channels of distribution which makes the goods directly available by the manufacturers to the customers without involving any intermediary. Methods of Direct Channel of Distribution: (i) Retail outlets, (ii) Mail order selling, (iii) Internet selling, (iv) Selling through own sales force.

(i) Brand name helps in advertising in easier way.

(ii) Brand name establishes the permanent identity of the product.

(iii) Brand name promotes repurchasing.

(i) Rising Standards of Health and Sanitation
(ii) Self Service Outlets
(iii) Innovational Opportunity
(iv) Product Differentiation

Importance or Merits of Packaging: The importance of packaging has enhanced because of the following reasons:

(i) Rising Standards of Health and Sanitation: As the people are becoming health conscious they like to buy packed goods. The reason is that the chances of adulteration in such goods are minimised.

(ii) Self Service Outlets: Now-a-days self service retail shops are becoming very popular, particularly in big cities. Because of this, the role of sales assistants has gone to packaging.

(iii) Innovational Opportunity: With the increasing use of packaging more innovational opportunity becomes available in this area for the researchers.

Generally, the producer is at liberty to use label or not and to choose the kind of label. But it has been made compulsory by the Government to use label for some products. Besides this, the description of label has also been fixed. For example, it is mandatory to use the label alongwith its stipulated information on Medicines and Processed Food. Similarly, the products which are injurious to health must carry the statutory warning regarding its use. Such as the packets of the Cigarette and Pan Masala have always the inscription ‘Injurious to Health’.

Indirect Channels: When a manufacturer gets help of one or more middlemen to move goods from production place to the consumption place , the distribution channel is called indirect channel. Following are the main types of it:

(i) One Level Channel: In this method an intermediary is used. Here manufacturer sells the goods directly to the retailer instead of selling it to agents or wholesaler. This method is used for expensive watches and other like products. This method is also useful for selling FMCG (Fast Moving Consumer Goods). This channel is clarified in the following diagram:

(ii) Two Level Channel: In this method/medium manufacturer sells the material to the wholesaler, wholesaler to the retailer and then retailer to the consumer. Here wholesaler after purchasing material in large quantity from the manufacturer sells in small quantity to the retailer. Then retailers make the products available to consumers. This medium is mainly used to sell-soap, tea, salt, cigarette, sugar, ghee etc. This channel is more clarified in the following diagram:

When we think about a product, generally, it refers only to the tangible attributes of a product, e.g., we say we have bought a Bike. But while we take a buying decision we alongwith tangible attributes also consider the intangible attributes of a product. The examples of intangible attributes are: brand name, image of the company, guarantee, warranty, packaging, and many other such attributes. Therefore, in marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a consideration and satisfied the customer needs.

Anything that can be of value to the buyer can be termed as a product.

It refers to the combination of all decisions relating to the product.

It refers to that process through which a special identification of product is established.

It refers to a special word, symbol, letter or the mixture of all these.

It refers to that part of Brand which can be spoken, e.g. Uncle Chips.

It refers to that part of Brand which cannot be spoken but can be recognised easily, e.g., Devil of Onida.

When a Brand is registered under the Trade Marks Act, 1999 then it becomes the Trade Mark.

It refers to the combination of those activities which are related with the designing and production of the containers in which the products are packed.

It refers to the combination of all decisions relating to promotion of sale of products and services.

It refers to the combination of all decisions relating to make products available to consumers.

It refers to that path through which products reach consumers.

It refers to sell the goods directly to the consumers by the manufacturer without involving any intermediary.

It refers to the combination of all decisions relating to the Transportation, Inventory, Warehousing and Order Processing of goods.

It is primary package.

(i) It helps in advertising in easier way.

(ii) It establishes the permanent identity of the product.

In Physical Distribution of products four activities are included and decisions related to these activities are taken. These four activities are as follows:

(i) Transportation: Transportation is that activity through which products are moved from one place to another. By making the products reach at desirable place increases the importance and value of those products. Many means of transportation are available, like — road, railway, air, water, pipeline etc.

(ii) Inventory: By inventory we mean the stock of raw material, semi-finished goods and finished goods held in anticipation of sales or use. How much inventory should be kept for various items? This is an important decision in Physical Distribution. The main reason why this decision is important is that if the inventory is either more or less than required, both the situations have their advantages and limitations.

(iii) Warehousing: Oftenly it is noticed that it takes some time between purchasing/ manufacturing and selling. For this time period material has to be kept in stock. Under warehousing activity following decisions regarding the inventory of material are taken:

(a) Which is a better option? (To own or to rent a warehouse)

(b) Which is the right location for a warehouse? (Nearer to factory or nearer to market).

(c) Which decision is more apposite? (To locate the warehouse at one place or at different places) (iv) Order Processing: Order Processing means the process which is followed to fulfill the material order of the customer. Different steps of an order processing are as follows:

(a) Orders placed by consumers to salesperson.

(b) Transmission of order by salesperson to company.

(c) Entry of order in Company Office.

(d) Evaluate the reputation of customer.

(e) Check inventory and prepare scheduling.

(f) Shipment of material in accordance to the order.

(g) Receive Payment.

(A) Importance to Manufacturers: The importance of advertisement for manufacturers is cleared from the following discussion:
(i) Enhancing Customers' Satisfaction and Confidence: Through the medium of advertisement the manufacturers spread information about their product to the consumers. Only after having information about the new products, people decide to buy them. In this way, there is an increase in customers' confidence and satisfaction.

(ii) Helpful to Increase the Demand of Existing Products: The manufacturers regularly give information about their existing products through the medium of advertisement. As a result of it, people get acquainted with those products and their manufacturers and they purchase those products time and again. When the old customers repeatedly buy the same product, it also has a positive effect on the new customers. In this way, advertisement helps in increasing the demand for the old products.

(iii) Helpful in Facing Competition: Through the medium of advertisement, a manufacturer can try to establish the superiority of his product in comparison to his competing manufacturers. If this advertisement is carried on properly, he can get success in his effort. In this way advertisement helps the manufacturers in facing competition.

(B) Importance to Society: Main benefits accruing to society on account of advertising are as follows:

(i) Helpful to Generate More Employment: Advertising is instrumental in generating more employment opportunities and creating diverse kinds of jobs. It provides jobs to artists, screen printers, block-makers, script-writers, painter, etc. Today, advertising has become a profession. Some companies do only advertising job.

(ii) Helpful to Improve the Standard of Living: Through the medium of advertising people get information regarding new products. As people use these new and latest goods, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. Both have a positive effect on their standard of living.

(iii) Helpful in Survival of Communication Media: Main communication media are Newspapers, Magazines, TV, Radio, etc. Major source of their income is advertising. If these media of communication do not get support of revenue from advertising, they cannot survive for long. These media of communication keep the society well informed. Their existence is of utmost importance and they can survive only by advertising.

Yes, I do agree with this statement as it plays an important role for various parties. The role of advertisement becomes clear through the following facts:
(A) Importance to Manufacturers: The importance of advertisement for manufacturers is cleared from the following discussion:
(i) Enhancing Customers' Satisfaction and Confidence: Through the medium of advertisement the manufacturers spread information about their product to the consumers. Only after having information about the new products, people decide to buy them. In this way, there is an increase in customers' confidence and satisfaction.

(ii) Helpful to Increase the Demand of Existing Products: The manufacturers regularly give information about their existing products through the medium of advertisement. As a result of it, people get acquainted with those products and their manufacturers and they purchase those products time and again. When the old customers repeatedly buy the same product, it also has a positive effect on the new customers. In this way, advertisement helps in increasing the demand for the old products.

(B) Importance to Society: Main benefits accruing to society on account of advertising are as follows:

(i) Helpful to Generate More Employment: Advertising is instrumental in generating more employment opportunities and creating diverse kinds of jobs. It provides jobs to artists, screen printers, block-makers, script-writers, painter, etc. Today, advertising has become a profession. Some companies do only advertising job.

(ii) Helpful to Improve the Standard of Living: Through the medium of advertising people get information regarding new products. As people use these new and latest goods, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. Both have a positive effect on their standard of living.

(C) Importance to Customers: Main advantages of advertising to the customers are as under:

(i) Reduction in Prices: Advertising stimulates demand, production is on large-scale and cost of production per unit falls. Due to fall in production cost, price of the commodity is reduced.

(ii) Knowledge of Various Products: People come to know about different kinds of products by means of advertising. Thus, the customer has a large variety of goods to choose from. He picks up the best from among them.

No, I do not agree with this statement as it plays an important role for various parties. The role of advertisement becomes clear through the following facts:
(A) Importance to Manufacturers: The importance of advertisement for manufacturers is cleared from the following discussion:
(i) Enhancing Customers' Satisfaction and Confidence: Through the medium of advertisement the manufacturers spread information about their product to the consumers. Only after having information about the new products, people decide to buy them. In this way, there is an increase in customers' confidence and satisfaction.

(ii) Helpful to Increase the Demand of Existing Products: The manufacturers regularly give information about their existing products through the medium of advertisement. As a result of it, people get acquainted with those products and their manufacturers and they purchase those products time and again. When the old customers repeatedly buy the same product, it also has a positive effect on the new customers. In this way, advertisement helps in increasing the demand for the old products.

(B) Importance to Society: Main benefits accruing to society on account of advertising are as follows:

(i) Helpful to Generate More Employment: Advertising is instrumental in generating more employment opportunities and creating diverse kinds of jobs. It provides jobs to artists, screen printers, block-makers, script-writers, painter, etc. Today, advertising has become a profession. Some companies do only advertising job.

(ii) Helpful to Improve the Standard of Living: Through the medium of advertising people get information regarding new products. As people use these new and latest goods, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. Both have a positive effect on their standard of living.
(C) Importance to Customers: Main advantages of advertising to the customers are as under:

(i) Reduction in Prices: Advertising stimulates demand, production is on large-scale and cost of production per unit falls. Due to fall in production cost, price of the commodity is reduced.

(ii) Knowledge of Various Products: People come to know about different kinds of products by means of advertising. Thus, the customer has a large variety of goods to choose from. He picks up the best from among them.

Definition: In the words of C.L. Boiling, 'Advertising can be described as the art of creating a demand for article or a service.”
Features: Main features of advertising are as under:

(i) Paid Form: Only that attempt of the seller on which he has spent some money to communicate information to the consumer is called advertising. If without incurring any expenditure some information relating to some product or service is published, it will not be called advertising. It may be called propaganda or publicity.

(ii) Impersonal Presentation: Advertising is non-personal presentation of information. In other words, advertiser and consumer do not come into personal contact. Advertising is a monologue and not a dialogue.

(iii) Speedy and Mass Communication: Advertising is a speedy medium of communication. Besides being speedy, its operational area is very vast. In other words, it reaches millions of people simultaneously.

(iv) Identified Sponsor: Another feature of advertising is that its sponsor can be identified. If due to some reason it is difficult to identify the sponsor, then that information cannot be called advertising. It will be called propaganda or publicity.

Advertising is non-personal presentation of information. In other words, advertiser and consumer do not come into personal contact. Advertising is a monologue and not a dialogue.

Advertising means providing adequate knowledge about some special product/service/idea to potential consumers so that they are stimulated to buy it. Adequate knowledge about product means to let people know the name of the product, its function, size, price and place of its availability. Organisations providing service or idea give information regarding where, how and on what conditions their service or idea can be made available and how the same can be helpful to the people.

No, advertising is not a ‘dialogue’ but it is a ‘monologue’.

Yes, I do agree with this statement. The following facts clarify it:

(i) Adds to Costs: An organisation has to spend large amount on advertising. It increases the cost of the products. To meet this expenditure, price of the product is raised. No manufacturer pays for the advertising expenses out of his pocket. Advertising, therefore, leads to unnecessary rise in prices. In this reference it is said that advertising costs are passed on to the consumers in the form of high prices. (ii) Some Advertisements are in Bad Taste: Many times, foul language and objectionable pictures are used in advertising in order to attract a particular class. They may be insulting to a particular class.It causes decay of social values. Such kind of advertising is generally opposed as it hurts the feelings of the people. In this reference it is said that some advertisements are in bad taste.

OR

No, I do not agree with this statement. It is clarified from the following facts: (i) It does not Increase Costs: It is said that advertisement causes unnecessary increase in costs. However, the reality is that advertisement increases the demand for a product which in turn raises the scale of production. A lot of saving is affected in case of large production. Therefore, it can be said that advertisement is helpful in making available good quality products and services at cheap rates. (ii) It does not Create Bad Taste: It is wrong to say that advertisement creates a bad taste. Every seller makes efforts, in his own way to attract customers. In making such an effort, he sometimes exaggerates things and presents some exciting image of the product. Some people consider it modernity while others call it ungentlemanly behaviour. Therefore, it can be behaviour asserted that the blame does not go to advertisement, but it is a matter of people's own understanding.

Yes, I do agree with this statement. The following facts clarify it:

(i) Encourages Sale of Inferior Products: Every manufacturer projects his product as superior one in the advertisement. Therefore, the buyer is unable to decide as to which product is really good. Consequently, it is difficult to get good quality product even after paying a handsome price for it. If a seller gets good price for some inferior product, it becomes a habit with him. It affects other sellers also. Therefore, it is said that advertisement encourages the sale of inferior products.

(ii) Confuses the Buyers: Many a time distorted version of reality is shown in the advertising. Believing in advertising, consumers buy the product. On its use, he feels cheated. He comes to realise later that the information given in the advertisement was something else whereas the actual product was quite different from it. Thus, people lose confidence in advertising because of wrong presentation. In this reference it is said that advertising confuses rather than helps.

OR

No, I do not agree with this statement. The following facts clarify it:

(i) It does not Encourage Sale of Inferior Products: It is true that all the sellers point out the superiority of their product in the advertisement. However, it is the duty of a buyer to know about the comparative quality of a product before buying it. A seller cannot tell lies about his product in the advertisement. If he does so, legal action can be taken against him. So far as the question of selling some inferior quality product at high price, is concerned it must be said that a buyer can be cheated only once and not time and again. Those sellers who adopt such a policy, are doomed quickly.

(ii) It does not Confuse the Buyers: It is true that sometimes the reality is distorted in the advertisements, but the buyers happen to be rational beings and, therefore, they decide to purchase a product only after evaluating every aspect of it. However, if they have no information about any aspect, they can get it from the seller. Hence, it is wrong to say that advertisement confuses the buyers.

Yes, I do agree with this statement. The following facts clarify it:

(i) Confuses the Buyers: Many a time distorted version of reality is shown in the advertising. Believing in advertising, consumers buy the product. On its use, he feels cheated. He comes to realise later that the information given in the advertisement was something else whereas the actual product was quite different from it. Thus, people lose confidence in advertising because of wrong presentation. In this reference it is said that advertising confuses rather than helps.

(ii) Adds to Costs: An organisation has to spend large amount on advertising. It increases the cost of the products. To meet this expenditure, price of the product is raised. No manufacturer pays for the advertising expenses out of his pocket. Advertising, therefore, leads to unnecessary rise in prices. In this reference it is said that advertising costs are passed on to the consumers in the form of high prices.

OR

No, I do not agree with this statement. The following facts clarify it:

(i) It does not Confuse the Buyers: It is true that sometimes the reality is distorted in the advertisements, but the buyers happen to be rational beings and, therefore, they decide to purchase a product only after evaluating every aspect of it. However, if they have no information about any aspect, they can get it from the seller. Hence, it is wrong to say that advertisement confuses the buyers.

(ii) It does not Increase Costs: It is said that advertisement causes unnecessary increase in costs. However, the reality is that advertisement increases the demand for a product which in turn raises the scale of production. A lot of saving is affected in case of large production.

Therefore, it can be said that advertisement is helpful in making available good quality products and services at cheap rates.

These are the following:

1. Adds to Costs: An organization has to spend a large amount on advertising. No manufacturer pays for the advertising expenses out of his pocket. Advertising costs are passed on to the consumers in the form of high prices. It increases the price of the product. 
2. Undermines Social Values: Another important criticism of advertising is that it undermines social values and promotes materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs. 
3. Confuses the Buyers: With a continuous increase in the number of advertisement, consumers are likely to get confused. Each brand claims to be better than the other. For example: advertisement of Surf, Tide, Ariel, Vanish etc. Each brand claims to be the best brand.
4. Encourages Sale of Inferior Products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products. No advertisement should make a false claim about the quality of a product. If a firm makes a false claim it can be prosecuted for the same.
5. Some Advertisements are in Bad Taste: Some advertisements make use of indecent language, photograph or convey a bad message in order to attract customers. For example- Women running after a person because he is using a particular perfume.

Although many people have vehemently opposed it, yet it cannot be concluded that it is really not needed. The following arguments can be put forward to counter the arguments of various critics of advertisement:

(i) It does not Increase Costs: It is said that advertisement causes unnecessary increase in costs. However, the reality is that advertisement increases the demand for a product which in turn raises the scale of production. A lot of saving is affected in case of large production.

Therefore, it can be said that advertisement is helpful in making available good quality products and services at cheap rates.

(ii) It does not Undermine Social Values: It is absolutely wrong to say that advertisement undermines social values. Instead of undermining social values advertisement helps in raising the social level. It provides people with the information about modern and better products. It, therefore, widens the area of people's choice. So far as the question of day-dreaming for the customers is concerned, it only provides information about products. It is in the hands of the customers to buy them or not to buy them. If the dissatisfaction of the people increases because of advertisement, it is their own weakness and not that of the advertisement.

(iii) It does not Confuse the Buyers: It is true that sometimes the reality is distorted in the advertisements, but the buyers happen to be rational beings and, therefore, they decide to purchase a product only after evaluating every aspect of it. However, if they have no information about any aspect, they can get it from the seller. Hence, it is wrong to say that advertisement confuses the buyers.

(iv) It does not Encourage Sale of Inferior Products: It is true that all the sellers point out the superiority of their product in the advertisement. However, it is the duty of a buyer to know about the comparative quality of a product before buying it. A seller cannot tell lies about his product in the advertisement. If he does so, legal action can be taken against him. So far as the question of selling some inferior quality product at high price, is concerned it must be said that a buyer can be cheated only once and not time and again. Those sellers who adopt such a policy, are doomed quickly.

Arguments for:
Undermines Social Values: Advertisement is a sort of day-dreaming for the people. These days it is taking the people away from reality and into the realm of artificiality. Through its medium people get information about new products. Only very few products are of any use for them. The brilliance of new products really get on their nerves. They want to buy them but have no resources at their command. Consequently, they start feeling upset with their present status. Taking it as a social evil, it can be said that advertisement undermines social values.
Arguments against:
It does not Undermine Social Values: It is absolutely wrong to say that advertisement undermines social values. Instead of undermining social values advertisement helps in raising the social level. It provides people with the information about modern and better products. It, therefore, widens the area of people's choice. So far as the question of day-dreaming for the customers is concerned, it only provides information about products. It is in the hands of the customers to buy them or not to buy them. If the dissatisfaction of the people increases because of advertisement, it is their own weakness and not that of the advertisement.

(i) Manufacturers should not incur unnecessary expenditure on advertising and avoid indecent advertising which is likely to cause decay of social value.

(ii) Consumers should not be misguided by advertising nor should they discard consumer goods before the expiry of their utility period. They should also ignore such advertising as is likely to give birth to bad habits. Besides, they should not encourage monopolistic tendencies by purchasing a particular brand repeatedly.

(iii) Government should take stern action against those who indulge in false propaganda by using advertising media.

Many a time distorted version of reality is shown in the advertising. Believing in advertising, consumers buy the product. On its use, he feels cheated. He comes to realise later that the information given in the advertisement was something else whereas the actual product was quite different from it. Thus, people lose confidence in advertising because of wrong presentation. In this reference it is said that advertising confuses rather than helps.

Because, many a time distorted version of reality is shown in the advertising.

Because, many times, foul language and objectionable pictures are used in advertising in order to attract a particular class.

Meaning: It involves face-to-face interaction between the seller and the prospective buyer. It involves an oral presentation of a message in the form of conversation with one or more prospective customers for the purpose of making sales.

Qualities of a Good Salesman: A good salesman should posses the following qualities:

1. Physical Qualities: A salesman can be called a good salesman if he possesses healthy physique and attractive personality. Physical fitness is the greatest asset of a salesman. Physical qualities include personality, stamina, health and tolerance and Personality includes Good appearance, pleasing voice etc.
2. Mental Qualities: A good salesman should have a high degree of intelligence and imagination. He should understand the customers quickly and read his mind. Other qualities-mental alertness, sharp memory, initiative, imagination and self-confidence.
3. Social Qualities: Since a salesman has to deal with persons living in the society, so he must also possess social qualities. These mainly include: Sociability, tact, sound character, sweet nature, etc.
4. Vocational Qualities: Qualities which are directly concerned with the functioning of a salesman are known as vocational qualities. It includes mainly: knowledge of product, knowledge of competitive products, training and aptitude. He must have extensive knowledge with regard to the manufacturing process of his product, method of its use, its advantages, etc. 
5. Good Communication Skill: A good salesman should possess a controlled voice and a good command over the language. He should be clear of what to be communicated.

Meaning: Personal selling consists of contracting prospective buyers of product personally.

Features: Main Features of personal selling are as under:

(i) Personal Form: Under personal selling there establishes personal contact between buyers and salesman. In other words, both the parties face each other.

(ii) Development of Relationship: Persona! selling results in the development of personal relationship between the sales person and the possible buyer. Such a relationship has an important place in sales.

(iii) Oral Conversation: There is oral conversation between the sales person and the buyer regarding the features of the product, i.e., price, colour, shape, design, method of use, etc.
(iv) Quick solution of Queries: The prospective buyer can make inquiries regarding the product. Salesman answers these queries quickly and removes any doubts in the mind of the buyer.

According to Richard Buskrik, “Personal selling consists of contacting prospective buyers of product personally.

Because under it, there establishes face to face contact between buyers and salesmen.

There is oral conversation between the sales person and the buyer regarding the features of the product, i.e., price, colour, shape, design, method of use, etc.

Personality, Health Stamina and Tolerance.

Following are the main features of sales promotion:

(i) Sales promotion does not include advertising, personal selling and publicity.

(ii) Sales promotion activities are undertaken on special occasions. These are not routine activities.

(iii) Sales promotion helps in rendering advertising and personal selling more effective.

It refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service.

Once the samples of a particular product reach to the consumers through sales promotion, the advertisement of the same product gets more effective.

Sales Promotion: It refers to the short-term use of incentives or other promotional activities that seek to stimulate interest. Buyers are encouraged to make an immediate purchase of a product of service.

Following are some of the major activities in respect of sales promotion:

1. Rebate: Under it, in order to clear the excess stock the products are offered at some reduced prices. For example, giving a rebate by a car manufacturer to the tune of Rs 12,000/- for a limited period of time.
2. Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, giving a discount of 50% + 40% by the KOUTONS.
3. Refunds: Under this method, some portion of the price of an article is refunded to the customer on showing proof of purchase. For example, refunding an amount of Rs 5/- on showing the empty packet of the product priced Rs 100/-.
4. Product Combination: Under this method, along with the main product any other product is offered to the customer as a gift. The following are some of the examples:
   

   Main Product	Gift
   TV	Vacuum Cleaner
   Shakti Bhog Atta	A Packet of rice
   Maggi Noodles	A toy car

   
   
   
5.  Quantity Gift: Under this method, some extra quantity of the main product is passed on as a gift to the customers. For example, 25% extra toothpaste in a packet of 200 gm toothpaste. Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts.
6.  Instant Draw and Assigned Gift: Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. For example, on buying a car when the card is scratched such gifts are offered — TV, Refrigerator, Computer, Mixer, Dinner Set, Wrist Watch, T-shirt, Press, etc.

(i) Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, givinga discount of 50% + 40% by the KOUTONS.
(ii) Product Combination: Under this method, alongwith the main product some other product is offered to the customer as a gift. The following are some of the examples:

(i) Refunds: Under this method, some part of the price of an article is refunded to the customer on showing proof of purchase. For example, refunding an amount of Rs 5/- on showing the empty packet of the product priced Rs 100/-.
(ii) Instant Draw and Assigned Gift: Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. For example, on buying a car when the card is scratched such gifts are offered — TV, Refrigerator, Computer, Mixer, Dinner Set, Wrist Watch, T-shirt, Press, etc.
(iii) Full Finance: Under this method, the product is sold and money is received in instalments at 0% rate of interest. The seller determines the number of instalments in which the price of the product will be recovered from the customer. No interest is received on these instalments.
(iv) Sampling: Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door-to-door. This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them, they buy it and in this way sales are increased.

The name of this technique is ‘Quantity Gift’. Under it, some extra quantity of the main product is passed on as a gift to the customers.
Following are the two other techniques of promotion mix:

(i) Rebate: Under it, in order to clear the excess stock the products are offered at some reduced prices. For example, giving a rebate by a car manufacturer to the tune of Rs 12,000/- for a limited period of time.

(ii) Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, givinga discount of 50% + 40% by the KOUTONS.

The name of this technique is ‘Quantity Gift’. Under it, some extra quantity of the main product is passed on as a gift to the customers.
Following are the two other techniques of promotion mix:

(i) Rebate: Under it, in order to clear the excess stock the products are offered at some reduced prices. For example, giving a rebate by a car manufacturer to the tune of Rs 12,000/- for a limited period of time.

(ii) Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, givinga discount of 50% + 40% by the KOUTONS.

The name of this technique is ‘Product Combination’. Under it, along with the main product some other product is offered to the customer as a gift. Two other techniques are given below:

(i) Lucky Draw: Under this method, the customers of a particular product are offered gifts on a fixed date and the winners are decided by the draw of lots. While purchasing the product, the customers are given a coupon with a specific number printed on it. On the basis of this number alone the buyer claims to have won the gift. For example, ‘Buy a bathing soap and get a gold coin’ offer can be used under this method.
(ii) Usable Benefits: Under this method, coupons are distributed among the consumers on behalf of the producer. Coupon is a kind of certificate telling that the product mentioned therein can be obtained at special discount. It means that if a customer has a coupon of some product he will get the discount mentioned therein whenever he buys it. Possession of a coupon motivates the consumer to buy the product, even when he has no need of it. Such coupons are published in newspapers and magazines. Some companies distribute coupons among its shareholders. Sellers collect the coupons from the customers and get the payment from the company that issues the same.

The name of this technique is ‘Rebate’. Under it, in order to clear the excess stock products are offered at reduced prices. Two other techniques are given below:

(i) Full Finance @ 0%: Under this method, the product is sold and money is received in instalments at 0% rate of interest. The seller determines the number of instalments in which the price of the product will be recovered from the customer. No interest is received on these instalments.

(ii) Samples or Sampling: Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door-to-door. This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them, they buy it and in this way sales are increased.

(i) Samples: Under it, the producer distributes free samples of his product among the customers. For example, to distribute the sample of Washing Powder.

(ii) Rebate: Under it to clear the excess stock the products are offered at some reduced prices. For example, giving a rebate by a car manufacturer to the tune of Rs 12,000/- for a limited period of time.

(iii) Quantity Gift: Under it, some extra quantity of the main product is passed on as a gift to the customers. For example, a free gift of one RICHLOOK shirt on the purchase of two shirts.

(i) Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly, giving a discount of 50% + 40% by the KOUTONS.

(ii) Quantity Gift: Under this method, some extra quantity of the main product is passed on as a gift to the customers. For example, 25% extra toothpaste in a packet of200 gm tooth paste. Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts.

(iii) Instant Draw and Assigned Gift: Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. For example, on buying a car when the card is scratched such gifts are offered — TV, Refrigerator, Computer, Mixer, Dinner Set, Wrist Watch, T-shirt, Press, etc.

Product Combination: Under this method, alongwith the main product some other product is offered to the customer as a gift. The following are some of the examples:

The name of this sales promotion scheme is ‘Discount’.

‘Instant draw and assigned gift’ is the name of it.

Meaning: Public relations are deliberate, planned and sustained efforts to establish and maintain understanding between an organization and its public.

Role of Public Relation:

1. More Credible: Public Relation activity is considered more reliable. Public is of the opinion that they can be misled by advertising and other such mediums for increasing sales. But this is not possible in public relations because its objective is to improve the image of an organization.
2. Economical Medium: To attract the attention of Public this is the cheapest medium available. Like a lot of more money has to be spent on advertisement as compared to it.
3. Image Building: All related groups of people are satisfied with the help of public relation activity. As a result, it builds a good image of the organization.
4. Boosting Sales: An effort is made to impress all related groups through Public Relation but special attention is paid towards the consumer. This makes a favorable impact on the sales of the company.
5. End of Obstructions: Only the groups which are related to the organization can be the source of creating obstructions for that organisation. Public Relation is that medium through which all related groups are satisfied. As a result, there is no question of raising obstruction from their side in the working of an organisation.

The following are the tools of public relations:

(i) News: News is a good and faithful source to convey information to the public. The officers of the public relation department time to time present such information which are worthy being covered in news. For example, news may be how the company is giving special facility to children in the context of Childrens’ Day.

(ii) Events: In the form of events companies time to time organise press conferences and opening ceremonies of new office, factory premises and branches. This is a big image building media.

(iii) Printed Material: To attract the public various types of printed material is sent to the relevant group of public printed material mainly includes Annual report, Articles etc. Generally, these are send to the shareholders.

(iv) Speeches: Public relation department frequently creates occasions when the senior managers address the various groups of people regarding the progress of the company. The various groups of people include bankers, shareholders, employees and select customers.

(v) Public Service Activities: Oftenly the companies attach themselves to some Public Service Activities. The objective to do this is to create a good image in the Public. For example; to take the responsibility or onus of maintaining any park, religious place or any other public place.

(i) Securing Cooperation of Public: Public relation is an activity to get support from public. Every organisation wants to run successfully. For this public (i.e., all related protagonists like — consumers, employees, shareholders and society) support is essential or needed. And the support of public can be earned through Public Relations.

(ii) Successful relation with Public: Sometimes Public develops negative attitude towards any company. This attitude could be changed by establishing public relations which helps in developing better relations with public.

(iii) Satisfying different Groups: Public relation is an effort to satisfy different groups (like — consumers, employees, shareholders and society). For example, with the help of Public relation, the expectation of any particular group is acknowledged. The group is tried to satisfy by most possibly meeting their expectations.

Customers, Suppliers, Intermediaries, Employees, etc.

(i) Optimum utilisation of resources.

(ii) Environment protection.

(iii) Increasing the cost by using boxes/containers.

(i) Confusing the consumers by misleading advertisements.

(ii) Toying with the health of public.

(i) Harming the environment.

(ii) Damaging the natural beauty.

(iii) Damaging the historical monuments.

(i) Endangering the life on imitation by children.

(ii) Unfair advertising practices.

(i) Providing information for using the products.

(ii) Consumer awareness/educating the consumers.

(i) Not in the interest of society, unnecessary increase in cost.

(ii) Increasing extravagancy.

(iii) Increasing sales volume.

(iv) Achieving the objectives of the business.

The marketing mix referred here is promotional mix.    

Brand Name is a part of a brand consisting of words, letters and a group of words or letters comprising a name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors.
Following are the characteristics a good brand name should have.
(i) The brand name should be short, easy to pronounce, spell, recognise and remember e.g., lux, VIP, Rin, Vim, etc.
(ii) A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. e.g. all out, Promise ,Fair and lovely and Boost.

Price: It is the worth of a product or service in monetary terms. This money represents the sum of values that consumers exchange for the benefits of having or using the product of service.

Factors Affecting Price Determination:
There are number of factors which affect the fixation of the price of a product and they are:

1. Product Cost: One of the most important factors affecting the price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum rate at which the product may be sold. There are broadly three types of costs: viz., Fixed Costs, Variable Costs and Semi-Variable Costs. A product’s price must at least cover the variable cost to get a marginal profit.
2. The Utility and Demand: While fixing price, the utility and demand for the product must be taken into consideration. While the product costs set the minimum limit of the price, demand of the buyer sets the upper limit of price.
3. Extent of Competition in the Market: The pricing of a product also depends upon the competition for the product. If the product has close substitutes, it cannot fix high price as customers will leave the product and buy its substitute.
4. Government and Legal Regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price. They can also fix price limits within which only one can charge for a product.

(i) The important product-related decision the company failed to consider is labelling. Labelling refers to designing and developing the label to be put on the package. It gives all the details of the product like date of manufacture, details about the manufacturer, safety warnings, etc.
(ii) The two values violated by the company here is:
a) Duty to follow the laws of the country. In India, child labour is banned under various Acts.
b) The company’s duty to protect consumer and ensure their safety by making quality products and by giving the necessary information about their products.

Price is one of the most important element of marketing - mix. Price is the amount of money expected, required or given in payment for something. It represents the sum of values that consumers exchange for the benefit of having or using the product. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products.

Factors Affecting Price Determination:
There are number of factors which affect the fixation of the price of a product and they are:
1. Product Cost: One of the most important factor affecting price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum rate at which the product may be sold. There are broadly three types of costs: viz., Fixed Costs, Variable Costs and Semi-Variable Costs. A product’s price must at least cover the variable cost to get a marginal profit.
2. The Utility and Demand: While fixing price, the utility and demand for the product must be taken into consideration. While the product costs set the minimum limit of the price, the demand of the buyer sets the upper limit of price.
3. Extent of Competition in the Market: The pricing of a product also depends upon the competition for the product. If the product have close substitutes, it cannot fix high price as customers will leave the product and buy its substitute.
4. Government and Legal Regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price. They can also fix price limits within which only one can charge for a product.

1) Gathering and Analysing Market information: One of the important functions of a marketer is to gather and analyse market information. It is important to identify the needs and wants of the customers and thus to produce such products which makes the customers satisfied. An analysis of the market for the various opportunities and threats is also very important.
2) Marketing Planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc. and specify the action programmes to achieve these objectives. Planning also includes various strategies to be adopted at critical stages.
3) Customer Support Services: It is a very important function of the marketing management which relates to developing customer support services such as after sales services, handling customer complaints and adjustments, procuring credit services, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days. It helps the management to retain the customers and build customer loyalty and thus a long term relation.
4) Physical Distribution: Managing physical distribution is another very important function in the marketing of goods and services. The two major decision areas under this function include
(a) Decision regarding channels of distribution or the marketing intermediaries (like wholesalers, retailers) to be used and
(b) Physical movement of the product from where it is produced to a place where it is required by the customers for their consumption or use.
The important decision areas under physical distribution include managing inventory, storage and warehousing and transportation of goods from one place to the other.

Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts a lot of criticism. In contrast to all the benefits of advertising, following are the criticisms on advertising.
1. Adds to Cost: Advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. Giving advertisement is a very costly affair whether in visual or print medium. The money spent on advertisements add on to the cost of product and become an important factor while fixing the price of the product.
2. Undermines Social Values: Another important criticism of advertising is that it undermines social values and promotes materialism. It creates discontent among people when they come to know about a new product feel dissatisfied with their present state of affairs.
3. Confuses the Buyers: Another criticism against advertisement is that so many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. Thus it puts customers in a dilemma.
4. Encourages Sale of Inferior Products: Another criticism against advertisement is that it does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.

Marketing is called a social process due to its concern for the long-term welfare of society. Apart from the customer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing. 

The Selling Concept implies the marketing philosophy which focus on pushing the sale of product through aggressive selling techniques like advertising, personal selling, sales promotion with a view to persuade, lure or coax the buyers to buy the products.
Marketing concept focus on the satisfaction of customer’s and believes it as the key to the success of any organisation and maximisation of its profit in long run.

(i) The various distribution channels available to Ajay are:
Direct Method/ Zero level, One Level channel, Two level channel, Three level channel, Multiple level channel etc.
For distributing the product to the retail customers, he can make use of indirect channels of distribution like two, three or multiple level channels, as the product is a consumer product and not perishable.

(ii) Values, Ajay want to communicate to the society are:
a) Social Responsibility of a business enterprise
b) Charity
c) Concern for the underprivileged.
d) Hygiene 
e) Sensitivity towards health etc.

Brand Name is a part of a brand consisting of words, letters and group of words or letters comprising a name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors. Example, Promise tooth paste, Safola, Maggie, Lifebuoy, Dunlop, and Rexona are the brand names.

Advantages of branding to customers:
(i) Helps in Product Identification: Branding helps the customers to identify the product easily. Customers not always make a close watch of the features of product. If they get satisfaction from a single consumption, the brand gets identified and will get purchased repeatedly. The brand name, brand mark, etc helps the customer to identify the product easily.
(ii) Ensures Quality: If a product is a branded one the customers usually have an expectation of quality from the product. If the product didn’t satisfy their expectation they can easily approach the manufacturer and complain. Such facility builds confidence of consumers.
(iii) Status Symbol: Some brands become status symbols because of their quality. The consumers of those brands of products feel proud of using them and add to the level of satisfaction of the customers.

Price is one of the most important elements of marketing mix. Price is the amount of money expected, required, or given in payment for something. It represents the sum of values that consumers exchange for the benefit of having or using the product The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products.

Factors Affecting Price Determination

There are number of factors which affect the fixation of the price of a product and they are:

1. Product Cost: One of the most important factors affecting price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum rate at which the product may be sold. There are broadly three types of costs: viz., Fixed Costs, Variable Costs and Semi Variable Costs. A product’s price must at least cover the variable cost to get a marginal profit.

2. The Utility and Demand: While fixing price, the utility and demand for the product must be taken into consideration. While the product costs set the minimum limit of the price, a demand of the buyer sets the upper limit of price.

3. Extent of Competition in the Market: The pricing of a product also depends upon the competition for the product. If the product have close substitutes, it cannot fix high price as customers will leave the product and buy its substitute.

4. Government and Legal Regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price. They can also fix price limits within which only one can charge for a product.

1) Gathering and Analysing Market information: One of the important functions of a marketer is to gather and analyse market information. It is important to identify the needs and wants of the customers and thus to produce such products which makes the customers satisfied. An analysis of the market for the various opportunities and threats is also very important.
2) Marketing Planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc and specify the action programmes to achieve these objectives. Planning also includes various strategies to be adopted at critical stages.

3) Customer Support Services: It is a very important function of the marketing management which relates to developing customer support services such as after sales services, handling customer complaints and adjustments, procuring credit services, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days. It helps the management to retain the customers and build customer loyalty and thus a long term relation.

4) Physical Distribution: Managing physical distribution is another very important function in the marketing of goods and services. The two major decision areas under this function include
(a) Decision regarding channels of distribution or the marketing intermediaries (like wholesalers, retailers) to be used and
(b) Physical movement of the product from where it is produced to a place where it is required by the customers for their consumption or use.
The important decision areas under physical distribution include managing inventory, storage and warehousing and transportation of goods from one place to the other.

Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. In contrast to all the benefits of advertising, following are the criticisms on advertising.

1. Adds to Cost: Advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. Giving advertisement is a very costly affair whether in visual or print medium. The money spent on advertisements add on to the cost of product and become an important factor while fixing the price of the product.

2. Undermines Social Values: Another important criticism of advertising is that it undermines social values and promotes materialism. It creates discontent among people when they come to know about a new product feel dissatisfied with their present state of affairs.

3 Confuses the Buyers: Another criticism against advertisement is that so many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. Thus it puts customers in a dilemma.

4. Encourages Sale of Inferior Products: Another criticism against advertisement is that it does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.

i) The marketing philosophy adopted by Nisha is ‘product concept’.
ii) The main focus of business activity under this concept is continuous improvement in the quality of the product by adding new features, etc. Thus, under this philosophy, product improvement is the key to profit maximisation of a firm.
Here, means is improving the quality of product and ends, is profit maximisation.

The major differences between selling and marketing are listed as below:
(i) Selling is merely a part of marketing. Selling is a narrow term which comes is a process of marketing. It is concerned with promoting and transferring possession and ownership of goods from the seller to the buyer. Marketing is a wider term which starts with an identification of the customer’s needs and ends with a delighted customer.
(ii) Selling focus on transfer of title and possession from buyer to seller, whereas marketing focus on satisfying customer needs.
(iii) All selling activities are directed at sales and profit maximisation. Marketing activities are directed at customer satisfaction and there by long run profit.
(iv) Start and End of the Activities: Selling activities start after the product has been developed and end with its sales. Whereas marketing activities start much before the product is produced and continue even after the product has been sold.
(v) In selling, the emphasis is on bending the customer according to the product while in marketing, the attempt is to develop the product and other strategies as per the customer needs.