1. Marketing Concepts
Data
Data are any facts, numbers, or text that can be processed by a computer. Today, organizations are accumulating
vast and growing amounts of data in different formats and different databases. This includes:
operational or transactional data such as, sales, cost, inventory, payroll, and accounting
nonoperational data, such as industry sales, forecast data, and macro economic data
meta data - data about the data itself, such as logical database design or data dictionary definitions.
Data Warehouses
Dramatic advances in data capture, processing power, data transmission, and storage capabilities are enabling
organizations to integrate their various databases intodata warehouses. Data warehousing is defined as a process
of centralized data management and retrieval. Data warehousing, like data mining, is a relatively new term
although the concept itself has been around for years. Data warehousing represents an ideal vision of maintaining
a central repository of all organizational data. Centralization of data is needed to maximize user access and
analysis. Dramatic technological advances are making this vision a reality for many companies. And, equally
dramatic advances in data analysis software are allowing users to access this data freely. The data analysis
software is what supports data mining.
Data Mining :
Data mining, the extraction of hidden predictive information from large databases, is a powerful new technology
with great potential to help companies focus on the most important information in their data warehouses. Data mining
tools predict future trends and behaviors, allowing businesses to make proactive, knowledge-driven decisions. The
automated, prospective analyses offered by data mining move beyond the analyses of past events provided by
retrospective tools typical of decision support systems. Data mining tools can answer business questions that
traditionally were too time consuming to resolve. They scour databases for hidden patterns, finding predictive
information that experts may miss because it lies outside their expectations.
Decider :
The person who ultimately determines any part of or the entire buying decision.
The individual with the power and/or financial authority to make the ultimate choice regarding which
product to buy.
Declining :
The final stage of market development where annual industry revenues are steadily
declining because of the saturation of the market, the decrease in the market size, or the due to
the introduction of a product or a technology that serves as a replacement.

2. Defending Market Share :
After Capturing Value, a company must work at Defending Share. There are many
different tactics incumbents can use to attack. Some companies such as Safaricom engage in
price wars to stave off competetion, although it is not advisable. (Safaricom, 2010) More
effective defense strategies include: position defense, flank defense, preemptive defense,
counteroffensive defense, mobile defense, and contraction defense. Companies like Danfross
have used contraction to defend against market share with much success.
Delight Needs :
'Delight needs' are simple to understand. Every marketing company needs to ensure that
they are meeting the customers' needs and that they are not going to disappoint them. 'Delight
needs' are that of the customer and what they are going to be looking for, and any extras which
they are going to need to have. Within marketing the company has to make the customer think
they need to product that they are selling. Sure, not everyone is going to need to have the new
iPhone, but the apple company advertises to make the customers think that they will be missing
out if they don't buy one, and therefore the marketing is going to be fulfilling the delight needs
that the customer has.
Demand :
A demand forecast is the prediction of what will happen to your company's existing product sales. It would be best
to determine the demand forecast using a multi-functional approach. The inputs from sales and marketing, finance, and
production should be considered. The final demand forecast is the consensus of all participating managers. You may also
want to put up a Sales and Operations Planning group composed of representatives from the different departments that
will be tasked to prepare the demand forecast.
Demographic Environment :
Demography is the statistical and mathematical study of the size, composition, and spatial distribution of human
populations and how these features change over time. Data are obtained from a census of the population and from
registries: records of events like birth, deaths, migrations, marriages, divorces, diseases, and employment. To do this,
there needs to be an understanding of how they are calculated and the questions they answer which are included in these
four concepts: population change, standardization of population numbers, the demographic bookkeeping equation, and
population composition.
Demographic Segmentation :
Demographic segmentation is a marketing strategy that involves dividing a broad target market into subsets of
consumers who have common needs and applications for the relevant goods and services. Depending on the specific
characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, like
location or income. Marketing campaigns can then be designed and implemented to target these specific customer
segments.
Deposition :

3. Method of pretrial discovery that consists of a stenographically transcribed statement of a witness under oath,
in response to an attorney's questions, with opportunity for the opposing party or his attorney to be present and to
cross-examine. Such a statement is the most common form of discovery and may be taken of any witness (whether
or not a party to the action). When taken in the form described, it is called an oral deposition. Depositions may also
be taken upon written interrogatories , where the questions are read to the witness by the officer who is taking the
deposition.
Derived Brand :
In this case the supplier of a key component, used by a number of suppliers of the end-
product, may wish to guarantee its own position by promoting that component as a brand in its own
right.
Differentiated Pricing :
Practice of selling goods or services at different prices to different buyers, even though sales costs are the
same for all the transactions. Buyers may be discriminated against on the basis of income, ethnicity, age, or
geographic location. For price discrimination to succeed, other entrepreneurs must be unable to purchase goods at the
lower price and resell them at a higher one.
Direct Marketing :
Direct marketing is just what it sounds like - directly reaching a market (customers and potential customers)
on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials, magazine ads, etc.).
Direct marketing is often distinguished by aggressive tactics that attempt to reach new customers usually by means of
unsolicited direct communications. But it can also reach out to existing or past customers. A key factor in direct
marketing is a "call to action." That is, direct marketing campaigns should offer an incentive or enticing message to
get consumers to respond (act).
Direct marketing involves the business attempting to locate, contact, offer, and make incentive-based information
available to consumers.
Dissonance Reducing Buying Behavior:
Dissonance-reducing buying behaviour occurs when the consumer is highly involved but sees little difference
between brands. This is likely to be the case with the purchase of a lawn mower or a diamond ring. After making a
purchase under such circumstances, a consumer is likely to experience the dissonance that comes from noticing that
other brands would have been just as good, if not slightly...
Distributor , Dealer , Retailer :
An entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers or
direct to the end users or customers. Most distributors provide strong manpower and cash support to
the supplier or manufacturer's promotional efforts. They usually also provide a range of services (such as
product information, estimates, technical support, after-sales services, credit) to their customers.

4. Individual or firm that buys goods from a producer or distributor for wholesale and/or retail
reselling. Unlike a distributor, a dealer is a principal and not an agent.
A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who
normally sell their goods to another business.
Durable Goods :
In economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, one
that yields utility over time rather than being completely consumed in one use. Items like bricks could be considered
perfectly durable goods, because they should theoretically never wear out. Highly durable goods such
[1]
as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, so durable goods
are typically characterized by long periods between successive purchases.
E-commerce :
Electronic commerce, commonly known as e-commerce or e-comm, is the buying and selling
of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce
draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle,
although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.
Economic Environment :
The totality of economic factors, such as employment, income, inflation, interest
rates, productivity, and wealth, that influence the buying behavior of consumers and institutions. An area
of economics that studies the economic impact of environmental policies. Environment economists
perform studies to determine the theoretical or empirical effects of environmental policies on the
economy. This field of economics helps users design appropriate environmental policies and analyze the
effects and merits of existing or proposed policies.
Education :
You are able to perceive accurately, think clearly and act effectively to achieve self-selected goals
and aspirations. Education, therefore, is more properly defined as a process of cognitive cartography,
mapping your experiences and finding a variety of reliable routes to optimal states of mind when you find
yourself in non-optimal states.
Endorsed Brand and Sub Brand :
A sub-brand is a brand with its own name that uses the name of its parent brand in some capacity to bolster
equity. In the case of downscale offerings, the role of sub-brands is to help managers differentiate new offerings from the
parent brand while using the parent‟s equity to influence consumers.
The idea is both to maintain the parent‟s credibility and prestige regardless of how the sub-brand performs and to protect
the original brand from cannibalization.

5. Environmental Scanning :
Environmental scanning is one component of the global environmental analysis. Environmental monitoring,
environmental forecasting and environmental assessment complete the global environmental analysis. Environmental
scanning refers to the macro environment. The global environment refers to the macro environment which comprises
industries, markets, companies, clients and competitors. Consequently, there exist corresponding analyses on the micro-
level. Suppliers, customers and competitors representing the micro environment of a company are analyzed within the
industry analysis. Environmental scanning can be defined as „the study and interpretation of the political, economic, social
and technological events and trends which influence a business, an industry or even a total market.
Evaluating Channel Members :
The producer must continuously evaluate each channel member’s performance against standards such as
sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods. Cooperation in
company promotion and training programs, and service to the customer, Intermediaries having excellent performance
should be recognized and rewarded by the company. Intermediaries having unsatisfactory performance should be
helped, if not possible, replaced.
Evaluating the major alternatives:-
Using economic criteria, a company compares the likely sales, costs, and profitability of
different channel alternatives and selects the best one among it. Thus, to be considered , a
channel involving long-term commitments should be greatly superior on economic and
control grounds.
Evaluation of Alternatives
At this time the consumer compares the brands and products that are in their evoked set. The
evoked set refers to the number of alternatives that are considered by consumers during the problem-
solving process. Sometimes also known as consideration , this set tends to be small relative to the total
number of options available. How can the marketing organization increase the likelihood that their brand
is part of the consumer's evoked set? Consumers evaluate alternatives in terms of the functional and
psychological benefits that they offer. The marketing organization needs to understand what benefits
consumers are seeking and therefore which attributes are most important in terms of making a decision.
It also needs to check other brands of the customer’s consideration set to prepare the right plan for its
own brand.
Event :
1. Occurrence happening at a determinable time and place, with or without the participation of
human agents. It may be a part of a chain of occurrences as an effect of a preceding occurrence and as
the cause of a succeeding occurrence.
2. Arrival of a significant point in time. In project management, an event marks the point in time when
a task is completed. See also events.
Exclusive Distribution :
Situation where suppliers and distributors enter into an exclusive agreement that only allows the
named distributor to sell a specific product. For example, Apple had an exclusive distribution deal with
AT&T to provide the iPhone to consumers.

6. Exclusive Distribution :
Retail selling strategy typically used by manufacturers of high-priced, generally upscale
merchandise, such as cars or jewelry, whereby manufacturers grant certain dealers exclusive territorial
rights to sell the product. The retailer benefits from the lack of competition, and the manufacturer benefits
from a greater sales commitment on the part of the retailer. Additionally, exclusive distribution gives the
manufacturer greater control over the way the product is merchandised. See also open distribution.
Exclusivity :
Contract term in which one party grants another party sole rights with regard to a particular
business function. Some advertising networks demand exclusivity. Some do not demand exclusivity, but
offer a higher rate for an exclusive deal than the standard rate given to non-exclusive deals.
Expanding Market Share :
The percentage of an industry or market's total sales that is earned by a particular company over a
specified time period. Market share is calculated by taking the company's sales over the period and
dividing it by the total sales of the industry over the same period. This metric is used to give a general
idea of the size of a company to its market and its competitors.
Expanding the Total Market :
There are five significant strategies to consider when planning your marketing approach. Position yourself as a
market leader, challenger, follower, niche marketer or form an alliance to attack the market with increased power.
Consider a mix of strategies to make the most of your strengths and take advantage of your competitors' weaknesses.
Experience :
1.a particular instance of personally encountering orundergoing something: My encounter with the
bear in thewoods was a frightening experience.
2.the process or fact of personally observing, encountering, orundergoing something: business experience
3.the observing, encountering, or undergoing of thingsgenerally as they occur in the course of time: to lea
rn from experience; the range of human experience.
4.knowledge or practical wisdom gained from what one hasobserved, encountered, or undergone: a man
of experience.
5.Philosophy . the totality of the cognitions given byperception; all that is perceived, understood, andreme
mbered.
Experimental Research :
Experimental research is guided by a hypotheses (or several hypothesis) that states an expected relationship
between two or more variables. An experiment is conducted to support or disconfirm this experimental hypothesis.
For instance, much of this author's research has been involved with the physiological effects of step training with and
without handweights. With this type of experimental research, I have randomly selected the group of subjects,
decided the exercise program (step training with handweights, step training without handweights, and a control group
which remained physically active but did no step training), tried to control all relevant factors (e.g. no other aerobic
programs, no change in diet, no additional resistance training, etc.), and then measured the effect of the step training
with and without handweights on a number of variables (such as cardiorespiratory fitness, muscular strength, body

7. composition, blood lipids and lipoproteins, etc.). Experimental research, although very demanding of time and
resources, often produces the soundest evidence concerning hypothesized cause-effect relationships (Gay, 1987).
Failure of New Product :
Despite years of research and huge capital being pumped in to understanding the
consumer, making a launch successful is still a difficult task. The new product largely depends
on the product quality and the marketing tactics of the firm, there are many occasions were the
product failed miserably even after using the best technology and quality the reason is that the
new product is not worth for the customers. The prime factor for the new product success is -
customer value. Value is what the customer thinks is value. The major reasons for product
failure are
1. Faulty product idea:
2. Distribution related problems:
3. Poor timing of launch:
4. Improper Positioning:
These are some problems causing new product failure. The watchwords for new product success
are RIGHT PRODUCT TO THE RIGHT CUSTOMER AT RIGHT TIME.
Family :
A family includes a householder and one or more people living in the same household who are related to the
householder by birth, marriage, or adoption. All people in a household who are related to the householder are regarded
as members of his or her family. A family household may contain people not related to the householder, but those
people are not included as part of the householder’s family in census tabulations. Thus, the number of family
households is equal to the number of families, but family households may include more members than do families. A
household can contain only one family for purposes of census tabulations. Not all households contain families since a
household may comprise a group of unrelated people or one person living alone."
Family Size :
The number of people living in the same house as a child.(including relatives and other
household members.) the big family needs more food than a small one.
Fast Moving Consumer Goods (FMGS):
A type of good that is consumed every day by the average consumer. The goods that comprise this
category are ones that need to be replaced frequently, compared to those that are usable for extended
periods of time. While CPGs represent a market that will always have consumers, it is highly competitive
due to high market saturation and low consumer switching costs.
Final Price :
Market value is a concept distinct from market price, which is “the price at which one can transact”, while market
value is “the true underlying value” according to theoretical standards. The concept is most commonly invoked
in inefficient markets or disequilibrium situations where prevailing market prices are not reflective of true underlying
market value. For market price to equal market value, the market must be information ally efficient and rational

8. expectations must prevail. Market value is also distinct from fair value in that fair value depends on the parties involved,
while market value does not. For example, IVS currently notes fair value "requires the assessment of the price that is fair
between two specific parties taking into account the respective advantages or disadvantages that each will gain from the
transaction. Although market value may meet these criteria, this is not necessarily always the case.
Five winning Strategies :
The benefits of a planned marketing strategy are numerous. Business owners often rely solely on their intuition
to make business decisions. While this informal knowledge is important in the decision making process, it may not
provide you with all the facts you need to achieve marketing results. A marketing strategy will help you in defining
business goals and develop activities to achieve them.
Difficulty: Average
Here's How:
1. Describe your company's unique selling proposition (USP).
2. Define your target market.
3. Write down the benefits of your products or services.
4. Describe how you will position your products or services.
5. Define your marketing methods. Will you advertise, use Internet marketing, direct marketing, or public relations?
Flank Defence :
Protection of a work against undue exposure to an enemy's direct fire, by means of the fire from other works, swe
epingthe ground in its front.
1. Avoid areas of likely confrontation. A flanking move always occurs in an uncontested area.
2. Make your move quickly and stealthfully. The element of surprise is worth more than a thousand tanks.
3. Make moves that the target will not find threatening enough to respond decisively to.
Focus Group Research :
In the world of marketing, focus groups are seen as an important tool for acquiring feedback regarding new
products, as well as various topics. In particular, focus groups allow companies wishing to develop, package, name, or
test market a new product, to discuss, view, and/or test the new product before it is made available to the public. This can
provide invaluable information about the potential market acceptance of the product.
Focus Group is an interview, conducted by a trained moderator among a small group of respondents. The interview is
conducted in an unstructured and natural way where respondents are free to give views from any aspect.
Formal Marketing Research :

9. Marketing research involves conducting research to support marketing activities, and the statistical interpretation
of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a
firm's marketing environment and attain information from suppliers. Marketing researchers use statistical methods such
as quantitative research, research, hypothesis, Chi-squared tests, linear regression, correlations, frequency
distributions, poison distributions, binomial distributions, etc. to interpret their findings and convert data into information.
The marketing research process spans a number of stages, including the definition of a problem, development of a
research plan, collection and interpretation of data and disseminating information formally in the form of a report. The task
of marketing research is to provide management with relevant, accurate, reliable, valid, and current information.
A distinction should be made between marketing research and market research. Market research pertains to research
in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market
segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a
subset of marketing research.
Four C’s :
Marketing in this day and age needs to be a two-way communication. In a professional service business, it
may make more sense to focus on the four C‟s of marketing rather than the more traditional four P‟s. They are much
more customer oriented – and you need to think like your clients to do your best marketing.
1. Customer Value
You can no longer sell whatever you want to. You can only sell what people specifically want to buy.
Understand your client‟s needs and wants through ongoing survey and feedback so that you can provide massive
value back to them.
2. Convenience
With the Internet and increased competition, the availability of similar services is infinite. Think
convenience to buy. Make it very convenient for consumers to acquire your products and services. Many websites
are set up to sell online 24/7 so that when the client is ready to buy, they don‟t have to wait.
3. Cost
Understand consumer‟s costs to satisfy their wants and needs. Determine how customers will
respond to paying your sales prices by doing some market research. Are your price points set at the level where
customers are willing to buy?
4. Communication
Forget Promotion; the new word is Communication. Mass marketing no longer works. Two-way
conversation is essential. Your marketing communication may need to be more of a relationship-based process.
In today‟s economy, it‟s very easy for consumers to take their dollars elsewhere. If you can understand your client‟s
needs and wants through ongoing survey and feedback, you will be able to provide lots of value back to them.
To promote yourself effectively, you need to stand in your clients and shoes, and look at things from their
perspective. If you practice these four C‟s you‟ll have a better chance of connecting with your potential clients.
Full cost or Markup Pricing :
Cost-plus pricing is used primarily because it is easy to calculate and requires little information.
Information on demand and costs is not easily available, managers have limited knowledge as far as
demand and costs are concerned. This additional information is necessary to generate accurate estimates
of marginal costs and revenues. However, the process of obtaining this additional information is
expensive. Therefore, cost-plus pricing is often considered the most rational approach in maximizing
profits. This approach relies on arbitrary costs and arbitrary markups.

10. Full Market Coverage :
Method for evaluating the various segments of the marketplace and deciding which segments to cover in the
marketing of a particular product. Marketers generally adopt one of the following three general market coverage
strategies:
(1) undifferentiated marketing, which focuses on what is common in consumer needs in the marketplace and is
effected by presenting one product for all markets or presenting all of a company's products in one market;
(2) differentiated marketing, wherein several market segments are targeted for marketing campaigns with separate
promotional offers for each market;
(3) concentrated marketing, which focuses on one small part of the marketplace and is effected by a concentrated
marketing promotion that seeks to gain a large share of the small market.
Gain & Risk Sharing Prices :
A way of selecting a final price for a complex and high value product or service. Sometimes buyers
may resist accepting a seller’s proposal because of a high-perceived risk. The seller has the option of
offering to absorb part or all of the risk if he does not deliver the full promised value.
Gatekeepers :
In marketing, your goal is to deliver a message to someone, usually a target audience or a business. When it
comes to delivering your message to a business, you typically need the ear of the business owner or an executive, who is
the key individual. In many instances, there‟s a person that sifts through everyone who wants to talk to the owner or
executive -- that person is the gatekeeper. His job is to quickly dissect attempts to communicate with the key individual,
and give that person information that has a good chance to help the business, while ignoring unhelpful information.
Gender :
Marketers often make generalizations about groups of people in order to efficiently create effective
advertising. Yet, in an age that strives to promote equality between males and females, the line is blurred as to
whether it is appropriate to make gender generalizations. For instance, it is not uncommon for minivans to be
marketed exclusively to women, while sports cars are marketed primarily to men. Is this sexist, or a demographic
reality that more men purchase sports cars than women? It is also no coincidence that commercials for cleaning
products are most often targeting at female consumers. Is this fair? There are men who do their fair share of
household chores. While a lot of folks would agree it is not fair that men and women are portrayed this way, for the
marketer, it makes perfect sense.
General Need Description :
1. General: A motivating force that compels action for its satisfaction. Needs range from basic survival needs
(common to all human beings) satisfied by necessities, to cultural, intellectual, and social needs (varying from place to
place and age group to age group) satisfied by necessaries. Needs are finite but, in contrast, wants (which spring from
desires or wishes) are boundless. See also Maslow's hierarchy of needs.
2. Marketing: A driver of human action which marketers try to identify, emphasize, and satisfy, and around which
promotional efforts are organized.
Geodemographic Segmentation :

11. It refers to segmenting the population by recognising that people generally live in close proximity to other people
who are demographically similar. The clustering is based on the life stage and wealth characteristics of the population.
LandScape therefore allows the marketer to objectively differentiate between the diverse types of people in the
population, from those in metropolitan areas to those found in rural and semi-rural locations..
Geographic Segmentation :
Market segmentation strategy whereby the intended audience for a given product is divided according to
geographic units, such as nations, states, regions, counties, cities, or neighborhoods. Marketers will tailor marketing
programs to fit the needs of individual geographic areas, localizing the products, advertising, and sales effort to
geographic differences in needs and wants. Marketers will also study the population density or regional climate as factors
of geographic segmentation..
Geographical Pricing :
Products requiring marketers to pay higher costs that are affected by geographic area in which a product is
sold may result in adjustments to compensate for the higher expense. The most likely cause for charging a different
price rests with the cost of transporting a product from the supplier’s distribution location to the buyer’s place of
business. If the supplier is incurring all costs for shipping then they may charge a higher price for products in order
to cover the extra transportation costs. For instance, shipping products by air to Hawaii may cost a Los Angeles,
California manufacturer a much higher transportation cost than a shipment made to San Diego.
Transportation expense is not the only cost that may raise a product’s price. Special taxes or tariffs may be imposed
on certain products by local, regional or international governments which a seller passes along in the form of higher
prices.
Goods :
1. Commerce: An inherently useful and relatively scarce tangible item
(article, commodity, material, merchandise, supply, wares) produced
from agricultural, construction, manufacturing, or mining activities. According to the
UN Convention On Contract For The International Sale Of Goods, the term 'good' does not include
(1) items bought for personal use, (2) items bought at an auction or foreclosure sale, (3) aircraft or oceangoing
vessels.
2. Economics: A commodity, or a physical, tangible item that satisfies some human want or need, or something that
people find useful or desirable and make an effort to acquire it. Goods that are scarce (are in limited supply in
relation to demand) are called economic goods, whereas those whose supply is unlimited and that require
neither payment nor effort to acquire, (such as air) are called free goods.'
Graphical Method :
Correspondence analysis, multiple correspondence analysis, preference mapping, and multidimensional
preference analysis are descriptive statistical methods that generate graphical displays from data matrices. These methods
are used by marketing researchers to investigate relationships among products and individual differences in preferences
for those products. The end result is a two- or three-dimensional
scatter plot that shows the most salient information in the data matrix. This chapter describes these methods, shows
examples of the graphical displays, and discusses marketing research applications.
Green Environment:

12. Green marketing focuses on the green marketing efforts companies use, including corporate social responsibility
plans and sustainability efforts. Many consumers are environmentally conscious, seeking eco-friendly products and
services from organizations that are socially responsible. These articles look at all of the implications of green marketing,
from product modification and processing to packaging and green advertising.
Green Marketing :
According to the American Marketing Association, green marketing is the marketing of products that are
presumed to be environmentally safe.[1] Thus green marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green
marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the
existence of varying social, environmental and retail definitions attached to this term.[1] Other similar terms used
are Environmental Marketing and Ecological Marketing.
Group Pricing :
In the United States, a group purchasing organization (GPO) is an entity that is created to leverage the purchasing
power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO
members.
Many GPOs are funded by administrative fees that are paid by the vendors that GPOs oversee. Some GPOs are funded by
fees paid by the buying members. Some GPOs are funded by a combination of both of these methods. These fees can be
set as a percentage of the purchase or set as an annual flat rate. Some GPOs set mandatory participation levels for their
members, while others are completely voluntary. Members participate based on their purchasing needs and their level of
confidence in what should be competitive pricing negotiated by their GPOs.
Growth :
An increase in the demand for a particular product or service over time. Market growth can be slow
if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level. For
example, a new technology might only be marketable to a small set of consumers, but as the price of the technology
decreases and its usefulness in every day life increases, more consumers could increase demand.
Habitual Buying Behavior :
As the name suggests habitual buying behavior in consumers results when the products in question have
few or no significant and major perceived differences and as such the consumer goes for and purchases the product
that he/she has been using for sometime without having to think of switching to another brand. It‟s a sort of a habit in
that when the consumer is presented with a choice between two substitute products that have the same features
and characteristics, he/she will go for the one that he has been using before as he is familiar with it. Habitual buying
behavior can apply to products like bread, margarine, sugar etc.
Heterogeneity or Variability :
Fundamental characteristic of services which results in variation from one service to another, or variation in
the same service from day-to-day or from customer-to-customer. Heterogeneity makes it hard for a firm
to standardize the quality of its services. Opposite of homogeneity.
Hierarchy of Effects Model :
Marketing term for the sequence of five steps a consumer passes through from the initial exposure to
a product or advertisement to the purchase decision :

13. (1) awareness, (2) interest, (3) evaluation, (4) conviction, and (5) purchase.
Subsequent objectives may focus on moving prospects to higher levels in the pyramid to elicit desired behavioral
responses such as associating feelings with the brand, trial, or regular use etc. it is easier to accomplish ad
objectives located at the base of the pyramid than the ones towards the top. The percentage of prospective
customers will decline as they move up the pyramid towards more action oriented objectives, such
as regular brand use.
History :
The concept of marketing that we now see has more to do with developments during the industrial revolution
of the 18th and 19th centuries. This was a period of rapid social change driven by technological and scientific
innovation (see BBC history website). One result was that for the first time the production of goods was separated
from their consumption. Mass production, developing transport infrastructure and growing mass media meant that
producers needed to, and could develop more sophisticated ways of managing the distribution of goods.
Holistic Marketing Concept :
Holistic marketing concept is based on development, design, and implementation of marketing programs,
processes, and activities that recognize their breadth and interdependencies.
Holistic marketing recognizes that "everything matters" with marketing
and that a broad, integrated perspective is necessary to attain the best solution
Four main components of holistic marketing are: relationship marketing - integrated marketing - internal marketing -
and socially responsible marketing.
HUL Sales & Distribution in india :
A marketing channel performs the work of moving goods from producers to consumers. It overcomes the
time, place and possession gaps that separate goods and services from those who need or want them. Members of
the marketing channel perform a number of key functions like forward flow of activity from the company to the
customers(goods) and backward flow from customers to company(order,payment).
FMCG major HUL caters to seven million distinct outlets across India and 59% of these stores are in
rural India. HUL directly services over 1 million stores and has a network of over 7000 stockists and distributors.
- Modern trade
- Organized retail
- Self-service stores
- General trade
- Wholesale
- Family grocer
- Marginal retail
- Rural trade
- Multi-purpose-retail
Hyper competition:

14. Occurs when all companies focus on being the low cost producer. Each company tries to improve their
processes by adopting the best practices of their competitors. In effect each company works harder and faster
to be more efficient and their profit margins keep dropping. The alternative is for some companies to adopt
other strategies. Associated with Michael Porter.