Study Materials for UGC NET Commerce

1. 1
Dr.K.Karthikeyan
Associate Professor of Commerce
Dean and Controller of Examinations
Vivekananda College
Tiruvedakam West – 625 234
Mobile: +91-9865074994
Email: karthikeyan.madurai@gmail.com

2. Marketing Management
1. Marketing – Mix and Market Segmentation
2. Product Decisions
3. Pricing Decisions
4. Promotion Decisions
5. Distribution Decisions
6. Consumer Behaviour
7. Service Marketing
8. Trends in Marketing – Social Marketing, Online
Marketing, Green Marketing, Direct Marketing,
Rural Marketing, CRM
9. Logistics Management

3. Marketing – Concept and Approaches
“Marketing is concerned with people and the
activities involved in the flow of goods and
services from producer to consumer”
Approaches to study of Marketing
1. Functional Approach
2. Commodity Approach
3. Middlemen or Institutional Approach
4. Management Approach
Marketing System
1. Business Marketing Institutions
2. Marketing Environment
3. Customers
4. Marketing Tasks

4. Marketing – Concept, Process, Functions
Marketing Concept
1. Customer’s Need Orientation
2. Integrated Marketing
3. Customer Satisfaction
Marketing Process
1. Concentration
2. Equalisation
3. Dispersion
Marketing Functions
1. Functions of Exchange
2. Functions of Physical Supply
3. Facilitating Functions

5. Marketing Channels
“A means of reaching customers with products
and services. This includes both the process of
selling to customers and delivering the product or
service to them.”
“The set of people, activities, and the intermediary
organizations that play a crucial role in transferring
the ownership of the goods from the point of
production or manufacturing to the point of
consumption.
Types
1. Manufacturer to Consumer
2. Manufacturer to Retailer to Consumer
3. Manufacturer to Wholesaler to Consumer
4. Manufacturer to Agent to Wholesaler to Retailer to
Consumer

6. Importance of Marketing Channels
1. Information provider
2. Stability of the price
3. Promotion
4. Pricing strategy
5. Matching the demand and supply of the
products
Modern Marketing Channels
Company Website, Social Media, Email
Marketing, Content Marketing and SEO
(Search Engine Optimisation), PPC (Pay Per
Click), Word of Mouth Marketing,
Franchising, Direct Marketing, Retail
Partners, Value Added Retailer

7. Marketing Functions
Functions of Exchange
1. Buying
2. Assembling
3. Selling
Functions of Physical Supply
1. Transportation
2. Storage and Warehousing
Facilitating Functions
1. Standardising and Grading
2. Financing
3. Market Information
4. Risk Bearing
5. Promotion

8. Elements of Marketing Mix
“Putting the right product or a combination
thereof in the place, at the right time, and at the
right price”.
4 Ps of Marketing
1. Product Mix
2. Pricing Mix
3. Place Mix
4. Promotion Mix
7 Ps of Marketing ( used in Service Industries)
Product, Price, Place, Promotion, People,
Process, Physical Evidence

9. 4 Ps of Marketing Mix

10. Marketing Planning Process
1. Scanning the Marketing Environment
2. Internal Scanning
3. Setting Marketing Objectives
4. Formulating Marketing Strategy
5. Developing Functional Plans
Strategic Marketing Plan
1. Company Positioning
2. Goals and Strategies
3. Market Opportunities
4. Target Market Defined
5. Marketing Budget

11. Classification of Products
Consumer Goods
1. Convenience Goods
2. Shopping Goods
3. Speciality Goods
Industrial Goods
1. Production facilities and equipments
2. Production Materials
3. Production Supplies
4. Management Materials

12. Market Segmentation
“Sub-dividing of a market into homogeneous
sub-sects of customers where any sub-sect may
conceivably be selected as a market to be
reached with distinct market mix”
Characteristics
1. Measurability
2. Substantiality
3. Accessibility
4. Differentiability
5. Auctionable
6. Nature of demand
7. General Considerations

13. Bases of Consumer Market Segmentation
“Geographical variables, Demographic variables,
Psychographic variables and buyer behaviour
variables” - Philip Kotler
1. Population Market Segments
2. Regional Distribution
3. Urban and Rural Distribution
4. Sex
5. Age
6. Education
7. Religion
8. Occupation
9. Income
10.Discretionary Purchasing Power
11.Income Distribution

14. Market Segmentation
Bases of Industrial Market Segmentation
1. Kind of the business or activity
2. Geographical location of the user
3. Usual purchasing procedures
4. Size of the user
Alternative Strategies to Market Segmentation
1. Concentrated Marketing
2. Undifferentiated Marketing
3. Differentiated Marketing

15. Segmenting, Targeting and Positioning
Steps in the process of product promotion
1.Segmenting - “The division of a broad market
into small segments comprising of individuals
who think on the same lines and show inclination
towards similar products and brands”
2.Targeting – “devising various marketing
strategies and promotional schemes according to
the tastes of the individuals of particular
segment”
3.Positioning – “Creating an image of its product
in the minds of the consumers”

16. Segmenting, Targeting and Positioning

17. Segmenting, Targeting and Positioning

18. Market Segmenting, Targeting and Positioning

19. Product Decisions
Product Mix
1. Product Width
2. Product Depth
3. Product Consistency
Stages in Development of New Product
1. Generation of new product ideas
2. Evaluation of new product ideas
3. Product Concept Development and Testing
4. Business Analysis
5. Product Designing and Development
6. Test Marketing
7. Commercialization (Product Launching)

20. Product Line

21. Product Life Cycle

22. Stages of Product Life Cycle
Introduction Stage
The product is introduced in the market in this stage; it is the
initial stage of the product. Sales of the product are low in
this stage because there may not be a need of the product
in the market. The product may undergo brand trouble. In
this stage, there is very little or no profit. The demand for
the product is created and developed in this stage.
Growth Stage
In this stage, the demands and market share increases as
well as competition emerges in the market. Generally, the
price remains constant in this stage. Marketing and
promotional expenses increase. There is rapid increase in
sales. The manufacturing cost decreases so there is
increase in profit margin. It penetrates other market
segment. In the growth stage, there is a boom in the
demand of the product and the profit increases
substantially.

23. Stages of Product Life Cycle
Maturity Stage
The price of the product is comparatively low, but the
advertisement and promotion cost increases in this stage. This
stage remains for a comparatively longer duration. In this
stage, there is high competition. Profit is decreased. Sales
growth can be divided into the following three categories in the
maturity stage − Growth, Stability, Decay. In growth, there is
an increase in the demand of the product. In stability, the
demand of the product remains constant. In decay, there is a
slight decrease in the demand.
Decline Stage
There is a decrease in sales in this stage. Demand of
product also decreases. There is decrease in the price of the
product. Margins are lowered. There is introduction of new
product in market. New strategies are implemented. This is the
final stage of the product. There is a decrease in demand and
sales of the product.

24. Pricing Decisions
Steps in determination of price
1. Estimate the demand for the product
2. Anticipate the competitive reaction
3. Establish the expected share of the
market
4. Select the price strategy to be used to
reach the market target
5. Consider company policies regarding
products, channels and promotion
6. Select the specific price

25. Factors Influencing Pricing Decisions
Internal Factors
1. Company objectives and desired public image
2. Stage in product life cycle
3. Product Differentiation
4. Distribution Strategy
5. Promotional Strategy
External Factors
1. Estimated Demand
2. Competition
3. Buyer psychology and behaviour
4. Legislation and Government Pressures
5. Suppliers
6. Economic Conditions

26. Pricing Methods

27. Pricing Methods
Cost Oriented Methods
1. Cost plus pricing
2. Mark up pricing
3. Break Even Pricing
4. Early Cash Recovery Pricing
5. Marginal or Incremental cost pricing
6. Target Return Pricing
Market Oriented Methods
1. Perceived Value Pricing
2. Going Rate Pricing
3. Sealed Bid Pricing
4. Differentiated Pricing

28. Price Policies and Strategies
1.Aims and Objects of the selling
organisation
2.Nature of the Market
3.Competition
4.Nature of the Product
5.Discount and Allowances
6.Geographical Pricing
7.Price Variation Policy

29. Pricing Strategies
1. Pricing at a Premium
2. Pricing for Market Penetration
3. Economy Pricing
4. Price Skimming
5. Psychology Pricing
6. Bundle Pricing

30. Promotion Decisions
Factors influencing Promotional Mix Strategies:
1. Target Market
2. Nature of the Product
3. Stages of Product Life Cycle
4. Funds available
5. Price Strategy
6. Distribution Strategy
Types of Promotion Strategies:
1. Push Strategy
2. Pull Strategy

31. Promotion Methods
1.Advertising
2.Personal Selling
3.Sales Promotion
4.Public Relations
5.Publicity
6.Direct Marketing

32. Advertising Media
1. Newspapers
2. Magazines
3. Outdoor Advertising
4. Advertising Literature
5. Radio
6. Television
7. Film Advertising
8. Display
9. Exhibition
10.Direct Mail
11.Internet

33. Advertisement Copy
1. Attention Value
2. Suggestive Value
3. Memorising Value
4. Conviction Value
5. Sentimental Value
6. Educational Value
7. Instinctive Value

34. Measuring Advertising Effectiveness
1. Surveys
2. Experiments
3. Laboratories
4. Historical Data
5. The Measurement of recall
6. Attitude Surveys
7. Psychological Measurement
8. Sort and Court

35. Personal Selling
Classification of Salesmanship
1. Creative salesmanship
2. Professional salesmanship
3. Demand filling salesmanship or order taking
salesmanship
Types of Salesman
1. The Manufacturer’s salesman – Promotional
salesman or Pioneer salesman, Dealer
servicing salesman, Specialty salesman
2. The Wholesaler’s salesman -
3. The Retailer's salesman – Counter Salesman,
Outdoor salesman

36. Kinds of Sales Promotion
1. Dealer’s Level – Sales Meeting, Contests,
Dealer Gifts, POP Material, Trade Shows
and Exhibition, Business catalogues, Buy
Back Allowance, Display and Advertising
Allowance, Premiums
2. Consumer’s Level – In-Store
demonstrations, Premium, Free samples,
Coupons, Trading Stamps, Direct Mailing,
Free Gifts,
3. Salesmen’s Level – Sales Meetings, Sales
Manuals, Product Demonstrations,
Contests, Sales Bulletins

37. Publicity
“Any communication about an
organisation, its products or policies
through the media that is not paid for by
the organisation”
“ “Non-personal stimulation of demand
for the product or service, or business
unit by placing commercially significant
news about it in public medium or
obtaining favourable presentation of it
upon radio, television, or stage that is
not paid for by the sponsor.” - Kotler

38. Objectives of Publicity
1. Building Corporate Image
2. Economy
3. Assisting Middlemen and Salesmen
4. Information with High Creditability:
5. Removing Misunderstanding or
Bad Image
6. Building Interest on Product
Categories
7. Newsworthiness Information

39. Channels of Distribution
Direct Channel Distribution
1. Through opening retail shops
2. Through mail order business
3. Through travelling salesmen
4. Through marketing of industrial products
Indirect Channel Distribution
1. Producer to retailer to Consumer
2. Producer to Wholesaler to Consumer
3. Producer to wholesaler to retailer to
consumer
4. Producer to agent middlemen to wholesaler
to retailer to consumer

40. Types of Retailers
1. Departmental Stores
2. Multiple shops or chain stores
3. Mail Order Business House
4. Consumer’s Cooperative stores
5. Super Market
6. Discount Houses
7. Hire Purchase Trading Houses

41. Factors Influencing Choice of Channels
1. Nature of Product – Perishability, Unit value,
Technical nature, Age and size of product, product
line
2. Nature of Market – Size of market, number and
location of buyers, size and frequency of purchase,
buying habit and preferences
3. Nature of Manufacturer – Size of firm, Financial
resources, volume of output, degree of control,
facilities available, managerial experience
4. The Middlemen
5. Nature of Consumers – Consumer Preferences,
distribution network, order size, consumer buying
habit
6. Environment – economic conditions, technical
conditions, legal conditions
7. Cost Requirements

42. Factors influencing Consumer Behaviour
Internal Factors
1. Need
2. Motivation
3. Learning
4. Attitude
5. Perception
External Factors
1. Social Influences
2. Business Influences
3. Family Influences
4. Cultural Influences
5. Economic Influences

43. Services Marketing
Features of Services
1. Intangibility
2. Inseparability
3. Heterogeneity
4. Perishability
5. Changing Demand
6. Pricing of Services
7. Direct Channel
Types of Services
Core Services: A service that is the primary purpose of
the transaction. Eg: a haircut or the services of lawyer
or teacher.
Supplementary Services: Services that are rendered as
a corollary to the sale of a tangible product. Eg: Home
delivery options offered by restaurants above a
minimum bill value.

44. Services Marketing Mix

45. Trends in Marketing
1.Social Marketing
2.Online Marketing
3.Green Marketing
4.Direct Marketing
5.Rural Marketing
6.CRM

46. Logistics Management
“Process of planning, implementing and
controlling the efficient flow of raw-
materials, work-in-progress and finished
goods and related information-from point
of origin to point of consumption; with a
view to providing satisfaction to the
customer”.
“Planning, implementing and controlling
physical flow of material and final
(finished) goods from the point of origin to
the point of use to meet customer
requirements, at a profit.” - Kotler

47. Classification of Logistics
Inbound logistics: which is concerned with the
smooth and cost effective inflow of materials and
other inputs (that are needed in the manufacturing
process) from suppliers to the plant. For proper
management of inbound logistics, the management
has to maintain a continuous interface with
suppliers (vendors).
Outbound logistics (also called physical distribution
management or supply chain management); is
concerned with the flow of finished goods and other
related information from the firm to the customer.
For proper management of outbound logistics, the
management has to maintain a continuous interface
with transport operators and channels of
distribution.

48. Functions of Logistics Management
1. Network Design
2. Order Processing
3. Procurement of Goods and Services
4. Material Handling
5. Inventory Management
6. Packaging and Labelling
7. Warehousing
8. Transportation
9. Customer Service

49. THANK YOU