Introduction to Marketing
Meaning of Marketing :
Marketing is a Vital area of business organization.
The main objective of marketing is a balance between consumer satisfaction + Social Welfare + Profit.
Marketing is an important socio-economic activity with history of many centuries. Marketing Links producers and consumers together for mutual benefits.
Definition of marketing:
Chartered institute of marketing (UK) defines marketing as. 'Marketing is the management process of identifying, anticipating satisfying customer requirements profitability.'
Willian Scott defines marketing as, 'Marketing is the system of interaction in business activities designed price, promote and distribute want satisfying products and services to the present and potential customers.'
Features / Nature / Marketing
1) Systematic Process : Marketing is a systematic process of identifying customer needs and wants and then satisfying then designing and distributing products.
2) Continuous Process : Marketing starts with marketing research and continues with After sales service and consumer feedback. It is continuous in nature.
3) All Pervasive : Marketing is applicable both to business organisation as well as non-business organization for eg educational institution also needs to adopt marketing approach.
4) Target Markets : Marketing is concerned with target markets. One cannot sell everything to everyone. The co designs the products according to the likes, dislikes, income etc of the target markets.
5) Ideas, Goods a Services : Marketing is undertaken to sell tangible goods, intangible services and ideas for eg. consumer goods, bonus, airlines, AIDS awarness etc.
6) Customer Satisfaction : Marketing places emphasises on customer satisfaction by providing additional facilities at little or no extra cost. If possible marketers needs to astonish customers by providing services which are very much more than their expectations.
7) Integrate & Approach : Marketing needs to integrate with other departments such as finance, human resources etc. to achieve overall firm's objectives.
8) Organisational Objectives : Marketing activities are undertaken to achieve organisational objectives like increase in profits, brand image, brand loyalty etc.
9) Social Responsibility : Modern Marketing gives a lot of importance to social responsibility. Marketing tries to achieve a balance between company profits, customer satisfaction and social welfare.
10) Marketing Environment: Marketing is affected by various environmental factors such as political, economic, legal, technological etc. These factors are dynamic and uncontrollable in nature. The success in marketing depends upon now quickly the marketer adjust to this charges.
Importance of Marketing
1) Customer Satisfaction : Marketing is customer oriented. The essence of marketing is to understand the need and wants of consumers. It starts with consumers and ends only after satisfying their needs.
2) Helps to face competition : Effective marketing helps to face competition in Market through pro-active decision making.
3) Corporate Image : Effective marketing helps the firms to develop and enhance its corporate image.
4) Brand loyalty : Effective marketing helps to develop brand loyalty of customers. Loyal customers does repeat purchases and gives recommendations to friends, relatives etc.
5) Brand Equity : Effective marketing develops brand equity as customers are willing to pay premium price for effectively marketed brands.
6) Generates Employment : Marketing generates job opportunities directly or indirectly in distribution, advertising, promotion etc.
7) Improves Standard of living : Marketing helps consumers to enjoy new and better varieties of products and services at reasonable prices. It is marketing which has converted "yesterdays luxuries into todays necessaries".
8) Price Control : Marketing brings a proper balance between demand and supply and provides price stability.
9) Economic grow in : Marketing brings industrial and economic growth. It facilitates full utilisation of available natural resources.
10) Creates Social awareness : Marketing helps non-profit organisation that creates social - awareness on public issues.
11) Expansion of other sectors : Marketing helps in expansion of supporting sectors like banking, communication, transport etc.
12) Market Expansion : Effective marketing helps business firms to expand its business from local to national and international level.
Functions of Marketing :
1) Marketing Research : Marketing research is a detailed and comprehensive study of different expects of marketing. Marketer can come to know about the tastes and preferences and buying behaviour of consumers through marketing research.
2) Product Designing and Development : Another area of Marketing is product development and designing. It is used for improving the existing products of the company and for introducing new and better products through R & D.
3) Advertising : Advertising creates awarness of the products. It is a medium of mass communication. Companies spend crores of rupees on advertising indicates the benefits of advertising on Sales promotion.
4) Sales Promotion : Sales promotion tools are short term incentives given by the seller in order to promote the sale of the product in the market, it includes discounts, gifts, coupons free samples etc.
5) Pricing : Price is an important factor affecting the success or failure of product in the market. The price should be right and within the lines of the competitors. The price of product should be neither too high nor too low. Periodical review of the pricing policy is necessary so as to make necessary changes as per market conditions.
6) After Sales Services : Another area of marketing is after sales services provided to customers. Customers value a company by quality of after sales service provided to them.
7) Packaging and labeling : Packaging means covering or wrapping the product for safety and convenience in handling. Attractive package is a sales promotion technique. Labeling means to put a label on the product. It gives useful information of the product to the customers. Packaging and labeling plays an important role in marketing.
8) Test Marketing : This is another area of marketing. It is a process of introducing. It is a process of introducing a new product in a very limited market area to find out whether consumer would accept new product or not. If test marketing is successful then the product is launched over a larger market area.
9) Customer Relationship Management : [CRM]
Nowadays professional companies use CRM. CRM means to collect, store and use information about customer to develop a long term relationship. CRM helps to achive maximum customer loyalty.
10) MIS Management : MIS enables business firms to gamer, analyse and distribute accurate information to marketing decision makers.
11) Physical Distribution : Physical Distribution is another important function of marketing. Marketer can either use direct or indirect channels for distributing the products to buyers. Proper distribution channels makes the goods available to the consumers at convenient place and time.
Evolution of Marketing Concepts
The various concepts of marketing adopted over the years are as follows:
1. The Exchange Concept:
According to this traditional concept of marketing the central idea of marketing is the exchange of a product between the seller and the buyer. This concept holds the view that customer will accept whatever design quality etc. of products offered to them to fulfill their needs.
2. The Production Concept:
According to this concept firms concentrate on finding more efficient ways to produce and distribute products. This concept hold the view that customer will prefer those products that are widely available and are of low price.
3. The Product Concept:
Under this concept there is a shift from marketing of low cost products to marketing of high costs products. This concept holds the view that consumer will prefer those product that offers best quality and performance.
4. The Selling Concept;
The concept emphasises on selling efforts such as advertising, salemanship etc. This concept holds the view that consumer will buy products only when they are induced to buy through aggressive selling and promotion effort on the part of the seller.
5. The Marketing Concept:
Under this concept the target customer becomes the focus of all marketing decision. This concept holds the view that the key to organisational success consist identifying and satisfying customers requirement more effectively than competitors. The marketing concept is also referred to as customer oriented concept.
6. The Societal Concept: (April 2011)
a) This concept emerged in 1980's and 1990's. This concept hold the view that the tasks of an organisation is to determine the needs, wants and interest of target markets and deliver the desired satisfaction more efficiently and effectively than compoetitors.
b) It further emphasises on to enhance and preserve the consumer and the society well being. The societal concept thus calls upon markets to build social and ethical values into their market practices.
c) The societal marketing stresses the need for an organisation to balance three factors while taking marketing decisions. They are as follows :
i) Consumer Satisfaction
ii) Company's Profit
iii) Society's Well-Being
7. Relationship Marketing Concept:
This concept emerged in 1990's. According to this concept relationship marketing in broader sense involves creating. maintaining and enhancing profitable and long term relationship with valued customers, distributors, dealers and suppliers. This concept holds the view that customers, distributors, dealers and suppliers will favour those companies that are concerned with building and maintaining long term relationship.
8. Holistic Concept of Marketing:
According to holistic concept introduced by Phillips Kotler the best marketing includes more complete and cohesive approach. It includes four more elements:
1. Integrated Marketing:
Under integrated marketing activities like pricing, packaging, branding etc. are employed to deliver value to customers.
2. Relationship Marketing:
Under relationship marketing efforts are made to build and maintain long-term relationship with customers, dealers etc. to increase business prospects.
3. Internal Marketing :
Internal marketing is the task of selecting, training and motivating employees to serve customers well. Under internal marketing the employees within the organisation are treated as customers in order to treat external consumers effectively.
Strategic Marketing Management
Meaning : Strategic marketing management is a part of overall marketing plan of the company.
SMM is a process for creating, communicating and delivering value to customers.
SMM is all about helping the organisation develop a unique identity in the market, grow its business, serve the customers better than the competition.
SMM includes various concepts like target market, segmentation, SWOT analysis and marketing mix.
Definition "Strategic marketing management is continuing efforts by an organisation to allocate its marketing mix resources to reach its target market, involving phases of planning, implementation and control."
Tradintional Marketing Managemtn
Strategic Marketing Management
It is a process of identifying and satisfying customers in order to achieve firms objectives.
It is a process where by a firm strategically differentiates it self from its competitors by capitalizing on its strengths to provide better value to customers than its competitors.
It is internally focused with stress on financial gains.
It has external orientation with stress on value focus.
It is a narrow concept with no intention to consumer and social welfare
It is a broad concept with stress on consumer satisfaction and social welfare.
TMM revolved around the seller and was in existence mainly before 1950's
SMM revolves around buyer and is followed in the 21st Century accorss the globe.
TMM considers short term time frame.
SMM marketing managers consider long term time frame
TMM does not invest funds in Marketing research
SMM Places a lot of emphasis and invert lots of funds in marketing research.
TMM adopts cost oriented methods of pricing.
SMM adopts consumer oriented methods of pricing.
TMM Managers make reactive decisions.
SMM managers make proactive decisions.
During TMM no SWOT Analysis was undertaken before introducing a product
Under SMM products are introduced in market only after undertaking SWOT analysis.
TMM gives more importance to maturity and experience rather than creativity.
SMM gives more importance to creativity and originality to develop plans and programmes.
Customer relationship management
Definition and Meaning.
a) Philips Kotler defines customer relationship management as, "CRM is concern with managing detailed information about individual customers and a customer touch points to maximise customer loyalty."
b) The "touch points" of customer includes customer purchases, credit and payment interactions, service calls, satisfaction surveys etc.
c) CRM helps to provide better service to customer and to develop effective customer relationship.
Need and Importance of CRM
The need and importance of CRM can be explained in details as follows:
1) Corporate Image :
The CRM helps to improve the image of a firm which further enables firms which further enables firms to get additional customers.
2) Competitive Advantages :
The CRM helps firms to face competition easily due to goodwill generated by among customers.
3) Higher Return on Investment :
The CRM helps company to generate higher return on investment due to repe..... purchase by loyal customers.
4) Increases Long Term Relationship :
The CRM help company to develop long term relationship with customers as firm involves customers to improve their services.
5) Reduces Customer Defection Rate :
The CRM helps to reduce customer defection rate as it emphasises on training of employees to show more care towards valuable customers.
6) Better Service to Customers :
The CRM helps company to provide better service to regular and valuable customer.
7) Increases Customer Equity:
The CRM helps to increase marketing efforts more an must valuable customers an increase customer equity.
8) Develop Customised Products :
The CRM helps company to develop interaction with customers through contact center. Such interaction helps to develop customised products.
Techniques of CRM.
The firms uses number of techniques to build CRM. Some of these techniques are as follows :
1) Data warehousing and Data Analysis :
a) CRM analysts first develop data warehouses. A data warehouse is electronic database of detailed customer information.
b) Once the data warehouse is developed then the CRM analyst examines the data in detail to find out the interesting facts of the customers.
c) The examined data can be further utilised for various marketing decisions such as :
i) Product design and modification.
ii) Product pricing and promotion mix.
iii) Selection of channels of distribution.
iv) Monitoring dealer relationship etc.
2) One to One Marketing :
The another technique used to build CRM is "One to One Marketing". Under the method firms treats their customers as partners and involve them in designing products or to improve their services.
3) Loyalty Programmes :
Firms may use variety of loyalty programmes like special discount and gift to loyal customers. However, the firms has to be selective and has to determine the value of customers and focus only on most valuable customer.
4) Priority Customer Programme :
The another important technique used by firms to build CRM is priority customer programme. Under this technique the priority customers i.e. must valuable customers are given priority in delivery, after sales services, immediate action on their complaint etc. Priority customer programmes are followed by several organization in banking sector. The banks generally maintains list of priority customers and provides additional facilities to them.
5) After Sales Services :
Professional business firms consider after sales services as a vital factor to gain customer trust and supoport.
6) Customer delight :
Customer delight is a situation where the business onwer is able to exceed the customers expectations. It help in brand loyalty.
7) Satisfaction Surveys :
Post purchase surveys to find out the level of customer satisfaction. It required necessary measures are taken to improve customer satisfaction.
Meaning : Social Marketing is a systematic application of marketing technique to achieve specific behavioral goals for the benefit of society.
The main objective of social marketing is to promote socially desirable goods and services such as education, healthy food etc. and discourage undesirable goods like tobacco, cigaretter, liquor etc. Social Marketing focuses only on welfare of the people. It does not have commercial angle.
The concept of social marketing was introduced by Philip kotler and Gerabld Zalton in 1971. It is also know as marketing for social causes.
Significance of Social Marketing
1) Welfare of Society : Social marketing aims at promoting merit goods and helps promoting social welfare of the whole society. It makes people to avoid demerit goods and under takes campaigns such as anti drugs, anti child marriage etc. so to overcome social eveils.
2) Corporate image : Social Marketing enables an organisation to build its image in the minds of various stakeholders.
3) Builds Brand loyalty: Social marketing helps to improve brand loyalty. It also gets positive support from the government.
4) Social Responsibility : Business firms by undertaking social marketing can fulfill their social responsibilities towards customers, employees etc.
5) Financial Benefits : Social marketing leads to more profitability. Company doing social marketing enjoys good will and customer support and as a result their product sales increases leading to more profits.
Application of social Marketing
a) Anti - tobacco campaign
b) Anti - Pollution Campaign
c) Anti - Drugs campaign etc.
Definition and Meaning:
According to American Marketing Association, 'Green Marketing is the marketing product that are presumed to be environmentally safe.' The green marketing thus refers to any marketing activity of the firm that is intended to create positive impact or lessen then negative impact of product on the environment. The green marketing broadly includes a environmentally friendly business activies.
Contribution to Growth of Green Marketing :
There are several ways in which firm can contribute towards green marketing. Some these ways are as follows :
a) Adopt effective anti-pollution measures.
b) Encourage people to demand eco-friendly product through aggressive publicity.
c) Undertake research and development to develop eco-friendly products.
Concern about Green Marketing :
1) Deceptive Advertising :
The firm should not undertake deceptive advertising to mislead the people when the really do not produce eco-friendly products.
2) High Prices :
The companies producing eco-friendly products should not charge very high prices. They should recover their cost of research and development in long run.
Effectiveness of Green Marketing :
The corporate firms should do following three important things to make green marketing effective.
1) Be Genuine :
The firms should genuinely do what it is claiming in green marketing campaign. The firms policies must be consistent with green marketing objectives. For example Research and Development of firm should focus on the development of environment friendly products.
2) Educating Customers :
The firm should educate customer regarding the importance of green marketing through suitable campaign.
3) Giving customers Opportunity to Participate :
The firm should encourage customers to take part in environmental friendly actions. For Example a tea manufacturing can encourage its consumers to use the tea leaves waste for the purpose of gardening rather than using chemical fertilisers.
The terms digital advertising was first used in 1990's
Digital marketing is marketing that makes are of electronic devices such as computers, tables, smartphone etc. to engage with customers to sell the products. Here the marketer use email, websites, social networking sites like Facebook etc. to connect with customers.
Digital marketing are in 2 different forms i.e. pull digital marketing and push digital marketing.
Digital marketing is growing in importance by the day. Many organisation are using a commination of traditional and digital marketing channels.
Forms of Digital Marketing
I) Internet Marketing.
Internet Marketing refers to marketing of goods or services through internet. It is also called online marketing main components of internet marketing are us follows:
1) B-to-B (B2B) :
It refers to Business to Business e-commerce, where business firm sell their product and services to other business firms on net eg. wholesaler and retailer.
2) B-to-C (B2C) :
It refers to Business to Consumers where business firms sell their product and service to ultimate consumers on the net.
3) C-to-C (C2C)
It refers to consumer to consumer, where consumer directly sell products or services to other consumers.
Advantages of Internet Marketing
1) Convenience :
Online marketing offers convenience to customers as they can order the products of their choice at any point of time i.e. 24 hours a day.
2) Information :
Customers can get lot of comparative information about firms, product and prices without leaving home.
3) Better Prices :
Online marketing is a direct form of marketing. It saves the margin of middlemen which results in better prices offered to customers.
4) Less Troubles :
Online marketing creates less trouble to customer as they don't have to face strong persuasive tricks of sales force to purchase a product.
Advantages to Marketers :
1) Lower Cost :
Online marketing reduces cost to marketers as they don't have to maintain a store and bear the cost of rent, insurance etc.
2) Builds Customer Relationship :
Online marketing helps to develop relationship with customer as marketer can interact with customer and learn from them about their specific needs.
3) Global Market :
Online marketing help to attract customers located all over the world. It creates global market for producers.
Limitations of Internet Marketing :
1) Limitations of Examining the Product :
The most important limitation of internet marketing is that it does not provide and opportunity to physically examine the product before purchasing.
2) Problem of Delivery :
The another problem faced in internet marketing is that there are often delays in getting the products ordered online.
3) Problem of Confidence :
The another problem in internet marketing is that the consumers do have much faith in online marketing. They are suspicious about quality of product.
4) Problem of Payment :
The another limitation of internet marketing is the problem of payment through credit cards or debit card. The customers generally feel that hackers may misuse their cards.
5) Poor Internet Connection :
The another limitation of Internet Marketing in India is the poor quality of internet connection. The coverage of internet facility is also very low in developing countries.
Social Media Marketing
Social Media Marketing involves approaching target customers through social media sites such as Facebook, Twitter, whatsapp, Google Plus etc.
Under social media marketing, marketers create content such as event marketing, launching of product, etc. The programme content is then uploaded on the social networking sites communication through social media results in electronic word of month publicity as the receiver shares the massage (e wom) with other.
Social media marketing helps in building and developing long term relationships with customers.
According to social media marketing report more than 250 million people are active on Facebook, 100 million viewers p m are on You Tube which all suggest that social media marketing is growing very fast and has lots of potential in future world of marketing.
1) Marketer can read large number of customers.
2) It is very cost effective.
3) It results in earned advertising rather than paid advertising.
4) Customer discuss brands and services with free and frank reactions on social media sites which helps companies to form future business strategies.
Viral marketing is the Internet word of mouth advertising.
Viral marketing was first used in 1997, to explain the extra ordinary growth of Hotmail, which is the king of viral marketing.
The name viral is derived from the image of a person being infected with advertising message and then spreading it to friends like a virus.
Viral marketing encourages individuals to pass on a marketing message about a product or service from person to person, through internet or e-mail or even media news.
Viral marketing enables a firm to gain rapid product awareness at a low cost.
Popularity of the sory "Kolaveri Di", is the best example of viral marketing accepted by all IIM's.
1) Viral marketing has a global reach. It can reach large number of people through the internet at any time and any place.
2) Viral marketing is cost effective as there is no much cost for building profiles, writing blogs etc.
3) Viral marketing enables firm to gain rapid product awarness.
Mobile phones have become "Ubiquitous", i.e. they are found every where and with every one. Mobile marketing is marketing on or with a mobile device such as a smart phone. Mobile marketing is also know as wireless marketing.
Mobile marketing is highly penetrative. Advertisers find it simple to reach the target customers through mobile marketing, because consumers carry their mobile devices with them thought the day i.e. 24 x 7.
Mobile marketing can be done through mobile apps, sms, mms etc. with mobile phone technology growing by leaps and bounds mobile marketing has become a effective tool in marketing various products and services.
1) Instent messaging in possible as SMS service takes a few seconds to reach to the target customer.
2) Mobile phone provides the ideal medium for direct and personalised customer communication.
3) Since mobile content can be easily shared among uses, mobile marketing can have huge viral benefits.
4) Mobile marketing is simples & less expensive as compared to other forms of marketing.
Telemarketing is a direct form of marketing. There are two types of telemarketing. They are as follows:
1) Inbound Telemarketing :
Under this type of telemarketing the company provides toll free telephone members to order goods and services. The customers may respond to telemarketing message on radio, TV and place orders.
2) Outbound Telemarketing :
Under this method the company uses call centers for contacting customers. The call centers contact prospective customer and encourages them to place orders.
Advantages of Telemarketing :
The main advantages of Telemarketing are as follows :
A) Benefit to Sellers :
1) Customer Selectivity :
Under telemarketing the seller can identify exactly the market he want to reach and cover it the way he wants.
2) Cost Effective :
Since under telemarketing the marketing efforts are directed towards selective market the cost per person contacted is very less.
3) Continuous Customer Relationship :
Telemarketing helps companies to build continuous customer relationship by providing continuous information about various schemes over a period of time.
4) Effective Measurement of Response :
Telemarketing helps companies to measure effectively the response which it generates through advertisement.
B) Benefits to Customers :
1) Convenience :
Telemarketing is convenient to customers as they can place order on telephone and get home delivery of products.
2) Gifts and Discounts :
Telemarketing enables consumers to get lot of gifts and discount given by marketer due to low cost of marketing.
3) Information about new products :
Telemarketing provides information about new products to consumers which adds to their comfortable life style.
4) Time Saving :
Telemarketing saves lot of time of consumer as he does not need to go to the shopping centre to purchase the goods required by him.
Disadvantages of Telemarketing :
The main disadvantages of Telemarketing are as follows:
1) Delay in Delivery :
The most important disadvantage of telemarketing is that it often results in delay delivery of goods.
2) Poor Reputation :
The telemarketing in India has poor reputation. Hence, people do not trust the offerings.
3) Pre-purchase Inspection of Goods:
Telemarketing most important disadvantage is that it does not offer an opportunity to inspect the goods before they place an order to buy the goods.
4) Problem in Replacement or Exchange of Products :
Under telemarketing the customer finds it very difficult to exchange products or replace the defective items.
Event refers to any happening in the society.
Event marketing therefore refers to marketing of events. The events can be a product launch, music concert, release of a movie, sports event like world cup, college festival and so on.
Event marketing helps to create media hype about on event to generate interest among consumers.
Event marketing is a creative process.
Event up with new ideas to make event successful.
There is a tremendous growth in event marketing these days. It has taken of very well with Indian consumer.
Steps in Event Marketing
1) Establish Event Marketing organisation : To begin with event organisers must establish a business organisation to look after successful handling of event marketing.
2) Define Objective : Event manager should outline clear objectives for the event. For eg if the event is marketing for a music concert; the objective would be to get the maximum possible audience at the event.
3) Develop Event strategy : Event manager must formulate event marketing strategy. He should decide location of the event, obtain permission from local authorities, arrange for media coverage, preparation of invitees list etc.
4) Prepare contact list : Every event needs audience to attend. Event manager has to prepare a contact list of right target audience that would be interested in the event. In case the event was organised previouly, it is desirable to invite former clients. A mix of familiar and new faces means more networking opportunities.
5) Determine promotion schemes : Event manager should decide the forms of promotion depending upon the budget and nature of event. Promotion can be done through phone calls, emails, social media, online marketing, etc.
6) Develop Event Website : Event marketing firm must develop event website Event website will be the biggest promotional tool. Event schedule, event highlights, sponsors details must be all provided through the website
7) Attractive offers : Event marketing firm must offer something special like free T-shirt, Coffee Mugs, reusable bags with event name & company logo etc. Such tempting offers will increase the attendance at the event. Firm can also offer free food, drinks or may provide free coupons for shopping.
8) Post Event Action : Port event, the marketing firm must conduct satisfaction surveys with the attendees. Feed back from attendees can be used to further improve the business in future. Personalised thank you notes can also be send. Photos and video clips may be placed on the event website to maintain the level of excitement.
Emerging Ethical Issues in Marketing
Ethics are moral guidelines which govern good behaviour. Behaving ethically is doing what is morally right. Ethical issues in marketing have increased in recent years. Some of them are explained as under.
1) Misleading (Receptive) Advertising :
Receptive advertising is too common. Reception taken place with wrong use of statistics, wrong testimonials, concealing facts, etc.
2) Unhealthy products :
Manufacturing of unhealthy products such as cigarettes and alcohol and promoting them through surrogate ads.
3) Unhealthy competition :
Business competition should be fair and honest Business man spreading false rumours about his competitors is unhealthy competition.
4) Dumping :
Dumping is offering products at a very low price to enter and capture new markets till the competition is wiped out from the market.
5) Trade mark & Brand name violations :
Such violations are happening throughout the developing world. MNC's dose huge sums of money due to such violations.
6) Online marketing frauds :
Products sold online and actual product delivered are not the same.
7) Celebrity endorsements :
It is a major ethical issue in marketing. Firms pay huge sums to celebrities to endorse the products but quite often, the celebrity that endorses the product does not use the product at all.
8) Wrong information sharing :
A marketer should know what information to disclose in from of whom. If the product is meant for adults then make sure that it is not promoted in front of children as this is unethical.
9) Other ethical issues :
Poor after sales service
Artificial shortage to increase prices.
Media bias etc.
Importance of Ethics in Marketing
1) Corporate image : Good image of the organisation depends to a great extent on the ethical practices followed by the organisation. Ethical companies command strong brand valve. For et TATA group in India.
2) Customer Satisfaction : Ethical business practices generate customer satisfaction. Ethical firms supply quality goods at lower prices, which generate customer satisfactions.
3) Less Government interference : Business firms following ethics in marketing will have less interference by govt. agencies in its day to day operations.
4) Growth and Expansion : Ethical Marketing practices enable a business firm to expand and grow, because such organisation enjoys more trust & confidence of customers, employee etc.
5) Increase Sales : The sales of organisation which adopts ethical marketing practices is more because consumer feel confident about purchasing products of such companies.
6) Brand Extension : Ethical marketing practices help in brand extension which creates position perception about organsation. Challenges Before marketing manager in changing Business Environment.
Now a days business firms face shift competition at the market place. Business environment is constantly changing as a result marketing managers have to face growing challenges which as follows.
1) Global Market :
The world has become a global market. Many countries have removed their trade barriers which have made selling globally possible. Global markets have stiff competition making survival difficult. Also there are cultural, social, political natural and economic differences which further more challenges marketing managers who finds difficult to form marketing strategies. Marketing managers also face communication barriers due to different languages.
2) Compressed Product life cycle (PLC)
PLC refers to the period of time over which a product survives in the market from product development to its withdrawal from the market. Due to more and more brands being introduced every day competition has increased many times which has shortened the life span of every product. What should be done to lengthen the life span of the product is big challenge in front of marketing managers. Companies have to introduce new brands other wise it may soon be wiped out of the market by its competitions.
3) Increasing Customer Awareness :
Modem day customers are aware of features, benefits, price etc. of the various products available in the market. So the marketer has to be careful as to what he claims if customers are not satified they may change the marketer. Hence attracting and retaining customers has become a challenge for marketers. In developing country like India, problem of lack of customer awareness also exit. Marketing manager also have to conduct customer awareness programmes so to increase etc sales. In rural areas product demonstration, street plays etc. can be undertaken, whereas for urban customers digital marketing can be adopted for increasing customer awareness.
4) Technology Boom :
Technology is changing at a very fast pace. The advent of new technologies such as internet and mobile devices has posed a great challenge to marketing managers of many firms. Technology Boom has forced marketing managers to redesign the communication mix. Due to new technology many popular products have become obsolete and firms have shut down the production of such products like sony walk man, etc. All this cretes new challanges for marketing managers.
5) Emergence of Social Media :
Social media has emerged as the powerful medium of marketing for eg Twitter, Facebook etc. Marketing Managers can use social media to introduce new products. However there is no control on social media unethical transaction and misleading comments are also common on social media. In such case marketers may loose business and customers may suffer. How to counter an opinion on social media site is a great challenge for marketing managers.