MM

23 April 2026 07:02

Marketing is the process of identifying, anticipating, and satisfying customer needs in a profitable way.
It includes activities like product planning, pricing, promotion, and distribution.
Its main aim is to create value for customers and build long-term relationships.

Features of Marketing (in short)

• Customer-oriented
• Value creation
• Exchange process
• Continuous activity
• Integrated functions
• Profit-oriented
• Dynamic in nature
• Builds relationships

Evolution of marketing concept:

0. Barter system:

1. Production Concept
Focus: Mass production & low cost
Idea: Customers prefer products that are easily available and affordable.
“Produce more, sell more”
Example: Ford Motor Company (early days of Model T – mass production at low cost)

2. Sales-Oriented Concept
Focus: Selling & promotion
Idea: Customers will not buy enough unless aggressive selling and advertising is done.
“Push the product to customers”
Example: Coca-Cola (heavy advertising and promotions)

3. Customer-Oriented (Marketing) Concept

Focus: Customer needs & satisfaction
Idea: Find what customers want first, then produce accordingly.
“Customer is king”
Example: Amazon (focus on customer experience and personalization)

4. Social-Oriented (Societal Marketing) Concept

Focus: Customer + Society welfare
Idea: Satisfy customers while also protecting environment and social well-being.
“Do good for society along with profit”
Example: Tata Group (focus on social responsibility and sustainability)

[Link] 2nd Sem Page 1

Example: Tata Group (focus on social responsibility and sustainability)

Recent marketing innovations

1. Social Marketing
It means focusing on customer needs along with society’s welfare.
The company tries to give satisfaction without harming society or environment.
It considers long-term effects on people, health, and nature.
Example: Eco-friendly products, pollution control.

2. Demarketing
It means reducing demand when demand is too high and supply is less.
It is used in situations of shortage or limited supply.
Companies may increase price or reduce promotion.
Example: Limited stock sale.

3. Remarketing
It means finding new customers or new uses for an existing product.
It is useful when demand is falling or product is old.
It helps to increase product life and sales.
Example: Using baking soda for cleaning.

4. Over Marketing
It means trying to increase sales too much while ignoring quality and efficiency.
This may create problems like poor quality or high costs.
It can damage the company’s reputation in the long run.

5. Meta Marketing
Given by E. J. Kelley.
It studies marketing as a whole system, including social and ethical issues.

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It studies marketing as a whole system, including social and ethical issues.
It goes beyond traditional marketing and looks at wider impact.
It helps in better understanding of marketing discipline.

6. Relationship Marketing
It means building long-term relationships with customers.
Companies focus on loyal customers and give them special services.
It increases trust, satisfaction, and repeat purchases.
Example: Membership programs, loyalty cards.

7. Augmented Marketing
It means giving extra services along with the product.
These services add more value and satisfaction to customers.
It helps companies stand out from competitors.
Example: Free service, warranty, online support.

8. Organisation Marketing
It means activities done to create or improve the image of an organisation.
It tries to build a positive attitude among the public.
It is important for reputation and public trust.
(Person marketing = promoting a specific person)

Basis Selling Marketing

Focus Product Customer needs
Aim Increase sales Customer satisfaction + profit
Starting point After production Before production
Approach Push strategy Pull strategy
Orientation Product-oriented Customer-oriented
Time focus Short-term Long-term
Motto Sell what is produced Produce what customer wants

Aspect Traditional Marketing Modern Marketing

Focus Product-centric Customer-centric
Channels TV, Radio, Print Ads, Billboards, Social Media, Email, SEO, PPC, Content,
Direct Mail Influencer Marketing
Audience Broad, less targeted Highly targeted using data and analytics
Targeting
Measurement Difficult to measure ROI accurately Easy to measure using analytics tools
Flexibility Less flexible, takes more time More flexible, real-time changes possible
Cost High cost (especially media ads) More cost-effective (digital channels)

What is Marketing Mix?

Marketing mix means the combination of tools a company uses to satisfy customers and achieve its goals.
In simple words: It is the set of decisions about product, price, place, and promotion.
It helps the firm to plan its marketing strategy properly.
All elements work together to attract and satisfy customers.

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 Types of Marketing Mix (4Ps)

1. Product
It means the goods or services offered to customers.
The company decides quality, design, features, brand, packaging, etc.
It should match customer needs and preferences.
Example: A smartphone with good camera and battery.

2. Price
It means the amount customers pay for the product.
The company decides price based on cost, demand, and competition.
Price affects customer demand and company profit.
Example: Setting ₹10,000 for a mobile.

3. Place
It means where and how the product is sold.
It includes distribution channels like wholesalers, retailers, and online platforms.
Proper place ensures product availability to customers at the right time.
Example: Selling on Amazon or in local stores.

4. Promotion
It means informing and attracting customers.
It includes advertising, personal selling, sales promotion, and publicity.
It helps to create awareness and increase sales.
Example: TV ads, social media ads, discounts.
5. People
It means the employees and staff who deal with customers.
Their behavior, attitude, and service quality matter a lot.
Example: Polite staff in a bank or hotel.

6. Process
It means the procedure or steps through which service is delivered.
It should be smooth, fast, and customer-friendly.
Example: Easy online booking system.

7. Physical Evidence
It means the physical environment and proof of service.
Since services are intangible, customers judge by surroundings.
Example: Clean office, good interior, proper bills, website.

Importance of Marketing

A. Normal Importance of Marketing (Simple & Common Points)

• Marketing helps to identify customer needs
• It ensures customer satisfaction
• It increases sales and profit
• It helps in proper distribution of goods
• It builds brand image and awareness
• It supports business growth and expansion

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 • It supports business growth and expansion

B. Important & Unique Points (From Your Teacher – Simplified)

Now I’ll take your teacher’s points and make them very easy:

1. Keeps company updated (Market awareness)

Marketing helps the company understand changes in customer needs.
It uses tools like research and feedback to stay updated.

2. Customer is the center of all activities

All business activities depend on customers.
Without customers, production and business have no value.

3. Integration of all departments

Marketing connects all departments like production, finance, etc.
Everything works together with marketing as the main focus.

4. Increases sales and reduces cost

More sales = lower cost per unit (economies of scale).
This improves profit and efficiency.

5. Maintains regular contact with customers

Marketing keeps continuous communication with customers.
This helps to understand needs and improve products.

6. Improves standard of living

Marketing provides better products and services.
It helps people enjoy a better quality of life.

7. Creates employment and infrastructure

Marketing supports activities like transport, storage, insurance.
This creates jobs and economic development.

The marketers need to study 5 categories of customer markets

Consumer Markets- It consists of individuals and households that buy products and services for their own
personal use.

Business Markets- these customers are popularly as business-to business customers or B-2-B customers. The
products and services they buy are further processed or used in their internal business processes.

Resellers- These customers purchase products and services to resell them to others with the motive of earning
profits.

Government Markets- It refers to government agencies who buy products and services to provide public
services or to those who they deem need them.

International Markets- these set of customers reside in other countries other than the country in which the
business organization is in existence. These customers could be consumers, businesses, resellers as well as
government.

Generally, a business organization sells its products and services to multiple markets. The marketing manger
needs to have a separate marketing plan to sell their products and services to its distinct type of customers.

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 Characteristics of Consumer Behaviour
These show the nature of how consumers think and act while buying.
1. Complex
Consumer behaviour is not simple. It involves many factors like culture, income, and psychology.
Different people think differently, so decisions are complex.

2. Dynamic (Changing)
Consumer behaviour changes over time.
Changes happen due to trends, technology, income, and lifestyle.
Example: Shift from offline shopping to online shopping.

3. Influenced by Many Factors

Buying decisions are affected by cultural, social, personal, and psychological factors.
No single factor alone decides behaviour.

4. Goal-Oriented
Consumers buy products to satisfy their needs and wants.
Every purchase has a purpose.

5. Varies from Person to Person

Each consumer is different in taste, preference, and income.
So, behaviour is not the same for everyone.

6. Decision-Making Process
Consumer behaviour involves steps like:
Need → Search → Compare → Purchase → Feedback
It is not a one-step action.

Importance of Consumer Behaviour

It explains why understanding consumers is important for business.
1. Helps in Understanding Customers
Firms can know what customers need and expect.
This reduces wrong decisions.

2. Improves Marketing Strategies

Companies can design better products, pricing, and promotion.
Leads to more effective marketing.

3. Increases Sales and Profit

By satisfying customer needs, firms can attract more buyers.
This improves revenue.

4. Helps in Market Segmentation

Businesses can divide customers into groups based on behaviour.
Makes targeting easier.

5. Builds Customer Satisfaction

Understanding behaviour helps in giving better value.

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 Understanding behaviour helps in giving better value.
Leads to repeat purchases.

6. Helps in Facing Competition

Firms can study competitors and improve their strategies.
Gives competitive advantage.

Process of Market Segmentation (Refined)

1. Identify the Potential of the Market
First, the company studies the market to see whether there is enough demand and opportunity.
It checks size, needs, and growth of customers.

2. Determine the Basis of Differentiation

The firm decides how to divide the market into segments.
It uses factors like age, income, lifestyle, or behaviour.

3. Analyze Competition
The company studies how many competitors are present in each segment.
It checks whether it can compete effectively.

4. Evaluate Profit Availability

The firm examines whether the segment is profitable and worth targeting.
It considers cost, revenue, and long-term returns.
Features of Target Market
1. Specific Group
It focuses on a particular group of customers, not the whole market.

2. Based on Segmentation
It is selected after dividing the market into segments.

3. Similar Needs
Customers in the target market have similar needs and preferences.

4. Profitable
The selected group should be large and profitable enough.

5. Reachable
The company must be able to reach and serve the target customers.

Importance of Target Market

1. Better Customer Understanding
Helps the company understand customer needs clearly.

2. Effective Marketing Strategy

Firms can design better product, price, and promotion.

3. Saves Cost and Time

Focuses only on relevant customers, avoiding waste.

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4. Increases Sales and Profit
Targeted marketing leads to higher success rate.

5. Competitive Advantage
Helps firms compete better by focusing on specific groups.

Price Leadership in Oligopoly

✅ Meaning
Price leadership is a form of collusive oligopoly where one dominant firm fixes the price of a product, and the other
firms in the industry follow that price.

Simple Definition
“P p k u o w o f p o f fo ow p .”

Why Price Leadership Arises

In oligopoly:
• Firms are interdependent
• Price wars are harmful
• Continuous competition creates uncertainty
So firms prefer: ✅ Stable prices
✅ Avoiding conflict
✅ Following one leader

Main Features of Price Leadership

1. Few Firms
Only a small number of firms dominate the market.

2. One Dominant Firm

One large or efficient firm becomes leader.
Reasons:
• Large market share
• Lower cost
• Strong reputation

3. Followers Accept the Price

f o o p p . y fo ow ’ p .

4. Price Uniformity
Same or similar price exists in the market.

5. Avoidance of Price War

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5. Avoidance of Price War
Firms avoid aggressive competition.

6. Interdependence
Every firm depends on actions of others.

How Price Leadership Works

Step 1:
Leader firm studies:
• demand
• cost
• market conditions
Step 2:
Leader fixes price.
Step 3:
Other firms accept and follow that price.

Types of Price Leadership

✅ 1. Dominant Firm Price Leadership
A large firm dominates the market and fixes the price.
Small firms follow.
Example:
A very large company in an industry setting market price.

✅ 2. Barometric Price Leadership

One experienced firm predicts market changes correctly.
Other firms trust and follow it.
Leader is not necessarily the biggest firm.

✅ 3. Aggressive Price Leadership

One powerful firm forces others to accept its price.

Advantages of Price Leadership

✅ Stable prices
✅ Avoids price wars
✅ Reduces uncertainty
✅ Better planning for firms
✅ Continuous profits

Disadvantages of Price Leadership

❌ Consumers may pay high prices
❌ Less competition
❌ Small firms become dependent
❌ Possibility of exploitation

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❌ Possibility of exploitation
❌ Can create monopoly-like power

Difference Between Price Leadership and Perfect

Competition
Price Leadership
• One firm controls price
• Few firms
• Interdependence exists
Perfect Competition
• Market determines price
• Many firms
• No interdependence

Difference Between Price Leadership and Stackelberg Model

Price Leadership

Stackelberg Model

Diagram Idea (Theory)

• Leader firm determines equilibrium price
• Followers accept same price
• Industry price becomes stable
(Usually explained with MR and MC curves of dominant firm.)

Important Assumptions
• Few firms exist
• Firms accept leadership
• Common interest among firms
• F ll w h ll g l ’

Very Short Exam Conclusion

“P l h f m f lg l wh m f m m h m k h f m f ll w
v m m m k bl .”

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[Link] of Pricing with Examples

enetration ricing
A company sets a low price in the beginning to attract many customers quickly and capture
market share.
✅ Purpose:
• Increase sales fast
• Enter competitive market
• Attract price-sensitive customers
Example:
Reliance Jio initially offered very cheap data packs to gain millions of users quickly.

imming ricing
A company charges a high price at first and later reduces the price gradually.
✅ Purpose:
• Recover research and development cost
• Target premium customers first
• Earn high profit initially
Example:
Apple launches new iPhones at very high prices and later reduces prices after some months.

om etition ricing
Price is fixed based on competitors’ prices in the market.
✅ Purpose:
• Survive competition
• Maintain market position
Example:
Petrol pumps of companies like Indian Oil Corporation and Bharat Petroleum keep similar fuel
prices.

conomy ricing
Products are sold at a very low price with minimum marketing and packaging cost.
✅ Purpose:
• Target low-income customers
• Increase sales volume
Example:
Local grocery brands or low-cost airlines use economy pricing.
Example: SpiceJet sometimes offers very low-cost flight tickets.

undle ricing om o ricing

Two or more products are sold together at a single lower price.
✅ Purpose:
• Increase sales
• Encourage customers to buy more
Example:
McDonald's sells burger + fries + cold drink as a combo meal.

sychological ricing

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 sychological ricing
Prices are fixed to influence customers psychologically.
✅ Purpose:
• Make product look cheaper
• Increase buying tendency
Example:
A shirt priced at ₹999 instead of ₹1000 appears cheaper to customers.

remium ricing
A company keeps a high price to create an image of luxury and quality.
✅ Purpose:
• Build prestige image
• Target rich customers
Example:
Rolex watches are highly priced to maintain luxury status.

ne rice olicy
Same price is charged from all customers for the same product.
✅ Purpose:
• Fair pricing
• Simplicity in selling
Example:
Fixed price shops and supermarkets charge the same price from every customer.

iscounting ricing
Products are sold at reduced prices through discounts, offers, or seasonal sales.
✅ Purpose:
• Increase sales
• Clear old stock
• Attract customers
Example:
Amazon and Flipkart offer discounts during festival sales.

Discriminatory Pricing
Different prices are charged from different customers for the same product or service.
✅ Purpose:
• Earn maximum revenue
• Charge according to customer ability or timing
Example:
Movie theatres charge different ticket prices for students, children, and adults.

[Link] and Labelling (Whole Concept)

Branding

Branding means giving a special name, symbol, design, logo, or mark to a product so that
customers can identify it easily and differentiate it from competitors’ products.
The name or symbol used is called a Brand.
Example:
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 Example:
• ike → “ ike” name and logo
• Coca-Cola → unique brand name and bottle design

Objectives / Importance of Branding

A) Importance to Customers
1. Easy Identification
Customers can identify products quickly.
2. Quality Assurance
Branded products usually maintain standard quality.
3. Saves Time
Customers do not need to compare every product repeatedly.
4. Status Symbol
Some brands give prestige and social status.
Example:
Using Apple products is often seen as a status symbol.

B) Importance to Sellers
1. Product Differentiation
Helps distinguish products from competitors.
2. Customer Loyalty
Satisfied customers repeatedly buy the same brand.
3. Advertisement Becomes Easy
A popular brand needs less explanation.
4. Higher Price Possible
Strong brands can charge premium prices.
5. Helps in New Product Launch
Well-known brands can introduce new products easily.

Types of Branding

ndi idual randing

Under this method, a company uses separate brand names for its different products.
If one product fails, it does not affect the image of other products of the company.
Example:
Hindustan Unilever uses different brands like Lux, Dove, Lifebuoy, Surf Excel etc.

amily randing
All products of a company are sold under one common brand name.
It reduces advertising cost and helps new products become popular quickly.
Example:
Samsung uses the same “Samsung” brand for mobiles, TVs, refrigerators, etc.

om any randing
The company name itself is used as the brand name for all products.
This creates strong company reputation and customer trust.
Example:
Tata Group uses “Tata” in Tata Salt, Tata Tea, Tata Motors etc.

om ination randing
A company uses both company name and individual product name together.
It gives benefit of company reputation as well as separate product identity.

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It gives benefit of company reputation as well as separate product identity.
Example:
Maruti Suzuki uses names like Maruti Suzuki Swift, Maruti Suzuki Baleno etc.

Labelling

Labelling means attaching a label, tag, sticker, or printed information on the product package
which provides information about the product such as ---ingredients, price, manufacturing date,
expiry date, weight, usage instructions, etc.

Functions / Importance of Labelling

1. Identification of Product
Helps identify the product and brand.
2. Provides Information
Shows ingredients, price, manufacturing date, expiry date, weight, usage instructions, etc.
3. Grading of Product
Shows product quality or category.
✅ Example:
Tea graded as Premium, Standard, etc.
4. Helps in Promotion
Attractive labels attract customers.
5. Legal Requirement
Some products must legally mention warnings and details.
✅ Example:
Medicine labels show dosage and precautions.

Branding Labelling
Gives identity to product Gives information about product
Uses name, logo, symbol Uses tag or printed details
Creates product image Provides product details
Used for differentiation Used for communication

3. Reasons for Product Failure in Marketing Management

oor uality roduct
If the product quality is low, customers become dissatisfied and stop buying it.
Example:
A mobile phone with poor battery backup may fail in the market.

rong ricing
Very high price or very low price can reduce customer interest.
Example:
If a new brand prices its product higher than famous brands, customers may avoid it.

ac of ar et esearch
Failure occurs when companies do not understand customer needs, tastes, and demand properly.
Example:
Launching winter clothes in a hot region.

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Launching winter clothes in a hot region.

oor romotion
If customers are not aware of the product, sales remain low.
Example:
A good product may fail because of weak advertising.

trong om etition
Powerful competitors with better products or prices can push a product out of the market.
Example:
Small mobile brands struggling against Samsung or Apple.

rong arget ar et
Selling the product to the wrong group of customers leads to failure.
Example:
Expensive luxury products targeted at low-income consumers.

oor istri ution ystem

If products are not easily available in shops or online, customers cannot buy them.
Example:
Limited availability in rural markets.

ac of nno ation
Products that do not change with customer preferences become outdated.
Example:
Old keypad phones losing demand after smartphones entered the market.

ad iming of aunch
Launching a product at the wrong time may reduce demand.
Example:
Launching raincoats during summer season.

Negative Brand Image

Bad reputation or negative publicity reduces customer trust.
Example:
Food products facing safety complaints may fail quickly.

[Link] Marketing

Meaning of Rural Marketing

Rural marketing refers to the process of selling and distributing goods and services in rural areas.
It includes understanding the needs, preferences, and purchasing behavior of rural consumers.
Rural marketing not only involves selling products to villages but also purchasing agricultural
products from rural areas.

Importance of Rural Marketing--

A) Importance to Companies

arge ar et ortunity

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 arge ar et ortunity
Rural areas have a huge population, providing a large customer base for companies.
Example:
Hindustan Unilever sells soaps, shampoos, and detergents widely in villages.

ncrease in ales and rofit

Companies can increase sales by entering rural markets where demand is growing rapidly.
Example:
Mobile companies selling budget smartphones in villages.

ess om etition
Many rural markets have fewer competitors compared to urban markets.
Example:
New brands can easily attract rural customers where limited brands are available.

usiness ansion
Rural markets help companies expand when urban markets become saturated.
Example:
Coca-Cola expanding distribution in villages.

rand oyalty
Rural customers often remain loyal to brands if they are satisfied with product quality.
Example:
Farmers repeatedly buying the same fertilizer or tractor brand.

ong erm rowth

Rural marketing provides future growth opportunities due to increasing income and awareness.
Example:
Growing demand for internet services and digital products in villages.

B) Importance to Rural People

aila ility of oods and er ices

Rural marketing helps villagers access modern products and services easily.
Example:
Availability of packaged food, medicines, and mobile phones in villages.

m ro ed tandard of i ing
Better products and services improve comfort and living conditions of rural people.
Example:
Use of refrigerators, televisions, and gas stoves in rural homes.

m loyment ortunities
Rural marketing creates jobs through shops, dealerships, transportation, and distribution
activities.
Example:
Village youths working as sales agents or delivery workers.

etter wareness and ducation

Advertisements and promotions increase awareness about health, hygiene, and technology.
Example:
Awareness campaigns for sanitation and digital payments.

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 ccess to ew echnology
Rural people get access to modern agricultural and communication technologies.
Example:
Farmers using tractors, water pumps, and smartphones.

conomic e elo ment

Rural marketing supports rural business growth and increases income opportunities.
Example:
Farmers getting better markets for agricultural products.

Strategies for Rural Marketing

fforda le ricing
Products should be priced low or reasonably because rural consumers are price-sensitive.
Small and low-cost products help companies attract more customers.
Example:
Small shampoo sachets sold at low prices by Clinic Plus.

im le ac aging
Packaging should be simple, attractive, and easy to use.
Small packaging sizes are more suitable for rural consumers with limited income.
Example:
Tea and detergent sold in small packets.

se of ocal anguage
Advertisements and communication should use local languages for better understanding.
This helps build trust and improves communication with rural consumers.
Example:
Advertisements shown in Assamese, Hindi, or regional languages.

trong istri ution etwor

Companies should ensure products are available in remote villages through dealers and retailers.
Proper transportation and supply systems are essential for rural marketing success.
Example:
Products supplied through village shops and local distributors.

ural d ertising
Use traditional methods like fairs, wall paintings, folk shows, radio, and local events.
Traditional promotion methods are more effective in villages than costly modern advertising.
Example:
Promotion through village fairs and loudspeaker announcements.

uilding rust
Companies should maintain product quality and good relationships with rural customers.
Word-of-mouth publicity plays an important role in rural markets.
Example:
Farmers recommending good fertilizer brands to others.

Green Marketing

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 Meaning of Green Marketing
Green marketing refers to the marketing of products and services that are environmentally safe
and eco-friendly. It includes production, packaging, promotion, and distribution in a way that
causes minimum harm to the environment. Environmental Marketing and Ecological Marketing
are also called Green Marketing.

Features/Importance of Green Marketing

co riendly roducts
Products are made in a way that causes less environmental damage.
Example:
Energy-saving bulbs, recyclable paper, organic products.

n ironment riendly ac aging

Packaging materials are recyclable or reusable.
Example:
Paper bags replacing plastic bags.

educed ollution
Companies try to reduce air, water, and noise pollution during production.

ustaina le e elo ment

Green marketing focuses on meeting present needs without harming future generations.

onsumer wareness
It promotes awareness about environmental protection among consumers.

Importance of Green Marketing

ost ffecti eness
Recycling and reuse reduce production costs and save resources.
Example:
Using recycled paper reduces cost and saves trees.

trategic m ortance
Green products help firms compete in international markets where eco-friendly standards are
important.
Example:
Export companies using eco-friendly packaging.

o ernment egulations
Governments are making rules to control pollution and protect the environment.
Example:
Restrictions on plastic usage.

or orate ocial es onsi ility

Companies use green practices to show social responsibility and build good image.
Example:
Rainwater harvesting and waste recycling plants.

rowing onsumer wareness

Consumers now prefer safe and environmentally friendly products.
Example:

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Example:
Demand for organic food and electric vehicles.

Four Rs of Green Marketing

educe
Reduce the use of harmful materials and unnecessary packaging.
Example:
Using less plastic in packaging.

ecycle
Use recycled materials again for production.
Example:
Making paper from recycled waste paper.

euse
Use old containers or products again instead of throwing them away.
Example:
Reusable glass bottles.

e uy
Encourage customers to refill or reuse products instead of purchasing new packaging every time.
Example:
Refill packs of detergents and shampoos.

Examples of Green Marketing

oca ola
Used direct syrup pumping systems which reduced material waste.

c onald s
Replaced harmful packaging materials with eco-friendly waxed paper packaging.

ero
Introduced recycled photocopy paper.

hili s
Launched energy-efficient CFL bulbs called Earth Light.

Used coal ash management methods to reduce pollution.

ndian il or oration
Took steps to reduce air and water pollution in refineries.

Challenges of Green Marketing

ew once t
Many consumers still do not fully understand green marketing.
Problem:
Some companies misuse green claims only for publicity.
eed for tandardi ation
There should be proper standards to identify truly eco-friendly products.
Problem:
False environmental claims create confusion.

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False environmental claims create confusion.
igh nitial ost
Green technology and eco-friendly production require large investment.
Example:
Installing pollution-control equipment.
atience and erse erance
Green marketing gives long-term benefits, not immediate profits.
Problem:
Many firms avoid long-term investment.

reenwashing
Some firms falsely claim products are eco-friendly only for promotion.
Example:
Using “natural” or “green” labels without real environmental benefits.

International Marketing

Meaning of International Marketing

International marketing refers to the process of promoting, and distributing goods and services
beyond the domestic boundaries of a country.
In simple words, it means buying and selling products in foreign countries.
Example:
Samsung selling mobile phones in India, USA, and many other countries.

Definitions of International Marketing

Philip Kotler:
“International marketing is the performance of business activities designed to plan, price,
promote and direct the flow of goods and services to consumers in more than one nation for
profit.”

Features of International Marketing

arge cale erations
Business activities are conducted in many countries.
Example:
Coca-Cola operating worldwide.

n ol es oreign change
Payments are made in different currencies.
Example:
Indian exporters receiving payment in dollars.

ore is and ncertainty

Political, economic, and cultural differences create risk.
Example:
Changes in import-export policies.

ide ar et
International marketing provides access to global customers.

o ernment egulations
International trade is controlled by rules, tariffs, and customs laws.

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International trade is controlled by rules, tariffs, and customs laws.

ultural ifferences
Consumer tastes and preferences differ from country to country.
Example:
Food habits differ in India and Europe.

Importance of International Marketing

ansion of ar et
Companies can sell products in many countries.
Example:
Apple selling iPhones globally.

ncrease in ales and rofit

International markets increase demand and revenue.

timum tili ation of esources

Surplus production can be exported to other countries.

oreign change arnings

Exports help earn foreign currency.
Example:
India exporting tea and spices.

m ro es tandard of i ing
Consumers get access to better and advanced products.

nternational oo eration
Trade improves relations among countries.

conomic e elo ment

International trade increases employment and industrial growth.

Objectives of International Marketing

ncrease ales
arn oreign change
and usiness lo ally
tili e cess roduction
chie e ong erm rowth
ace nternational om etition

Modes / Scope of International Marketing

The scope of international marketing refers to the various activities and methods through which
business is conducted in foreign countries.

m orts
Import means purchasing goods and services from foreign countries.
Example:
India imports crude oil from countries like Saudi Arabia and UAE.
Another Example:
Apple imports electronic components from different countries.

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Apple imports electronic components from different countries.
Importance:
• Helps obtain products not available domestically
• Improves quality and technology access

orts
Export means selling domestic products to foreign countries.
Example:
India exports tea, rice, spices, and textiles to many countries.
Another Example:
Tata Motors exports vehicles to Africa, Europe, and Asian countries.
Importance:
• Earns foreign exchange
• Expands business globally

ontractual greements
Companies enter agreements with foreign firms for business operations without full ownership.
Example:
McDonald's uses franchising agreements in many countries.
Importance:
• Reduces investment risk
• Helps quick market entry

oint enturing
Two or more companies from different countries jointly establish a business.
Example:
Maruti Suzuki was formed through a joint venture between India’s Maruti and Japan’s Suzuki.
Importance:
• Sharing of risk and resources
• Access to local market knowledge

ontract anufacturing
A company hires another foreign company to manufacture products on its behalf.
Example:
Nike manufactures shoes and garments through factories in Asian countries.
Importance:
• Reduces production cost
• Saves investment in factories

ully wned anufacturing

A company establishes its own manufacturing unit in another country.
Example:
Samsung has its own manufacturing plants in India.
Importance:
• Full control over production and quality
• Higher long-term profit

trategic lliances
Two or more companies cooperate for mutual benefit without forming a new company.
Example:
Star Alliance partnership among international airline companies.
Importance:

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Importance:
• Technology sharing
• Market expansion

anagement ontracts
One company provides managerial or technical services to another company in a foreign country.
Example:
Hilton Hotels & Resorts manages hotels in many countries through management contracts.
Importance:
• Earns management fees
• Expands international presence

Advantages of International Marketing

igher rofit
lo al rand ecognition
etter tili ation of roduction a acity
i ersification of is
ccess to ew echnology
m loyment eneration

Disadvantages / Challenges of International Marketing

olitical is
Government instability affects business.

change ate luctuation

Currency value changes create uncertainty.

ultural ifferences
Different languages and traditions affect marketing.

egal estrictions
Different countries have different trade laws.

igh om etition
Firms face strong international competitors.

rans ortation ost

International shipping increases expenses.

Difference Between Domestic and International Marketing

Domestic Marketing International Marketing
Operates within one country Operates in many countries
Same currency Different currencies
Less risk More risk
Limited market Global market
Similar culture Different cultures

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Services

Service are organised activities designed to provide complete satisfaction for the
target group of customers for a consideration known as fee or charge.

Characteristics / Features of Services

Services have some special characteristics which make them different from physical goods.

ac of wnershi
In services, customers cannot own the service permanently like physical products.
After using the service, ownership is not transferred to the customer.
Example:
When a person travels by airplane, he only enjoys the journey but does not own the airplane.

ntangi ility
Services cannot be seen, touched, tasted, heard, or smelled before purchase.
Customers can only experience the service after consuming it.
Example:
An airline passenger only has a ticket and promise of travel before the journey.
Another Example:
Education service cannot be physically touched.

nse ara ility

Services are produced and consumed at the same time. The service provider and customer both
are involved together.
Services cannot be separated from the service provider.
Example:
In a restaurant, cooking, serving, and consuming happen together.
Another Example:
A doctor provides treatment directly to the patient.

aria ility
The quality of services may differ depending on who provides the service, when, where, and how
it is provided.
Service quality cannot be perfectly standardized.
Example:
Different teachers may teach the same subject differently.
Another Example:
Hotel service quality may vary from one employee to another.

erisha ility
Services cannot be stored for future use or sale.
Unused services are lost forever.
Example:
An empty hotel room for one night cannot be sold later.
Another Example:
Missed doctor appointments cannot be stored for future use.

ser artici ation

Customers participate directly in the production and consumption of services.

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Customers participate directly in the production and consumption of services.
Without customer involvement, many services cannot be completed.
Example:
Students participate in educational services.
Another Example:
Passengers must be present to receive transport services.

luctuating emand
Demand for services changes according to season, time, and situation.
Example:
Tourism demand increases during summer holidays.
Another Example:
Hotels and transport services face high demand during festivals and vacations.

ricing of er ices
Pricing of services depends on demand, competition, season, and quality.
Therefore, service prices are often flexible or variable.
Example:
Hotel room rent becomes higher during tourist season.
Another Example:
Air ticket prices increase during holidays.

The first 4 P’s are same as product marketing, while 3 extra P’s are added for services because
services are intangible.

roduct
In services, the product is intangible and cannot be touched or stored.
Service products must be carefully designed to satisfy customer needs.
Example:
Education, tourism, banking, and hotel services.

lace
Place refers to where and how the service is provided to customers.
A good location helps attract more customers.
Example:
A petrol pump on a highway gets more customers than in a remote area.
Another Example:
Banks and restaurants are usually opened in busy market areas.

romotion
Promotion means advertising and communicating services to customers.
Since services are easily copied, promotion helps create brand image.
Example:
Airtel and State Bank of India use advertisements to attract customers.

rice
Pricing of services is difficult because many invisible factors are included.
Price depends on labour cost, quality, ambiance, and competition.
Example:
Luxury hotels charge higher prices because of better facilities and environment.

eo le

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 eo le
People means employees and staff who provide services to customers.
Their behavior and skills affect customer satisfaction.
Example:
Friendly hotel staff and skilled doctors improve service quality.

rocess
Process means the procedure or method of delivering services to customers.
Fast and smooth process improves customer experience.
Example:
McDonald's provides quick food delivery through efficient processes.
Another Example:
Courier companies like FedEx provide fast delivery through proper systems.

hysical idence
Physical evidence means the tangible things that support services.
It helps customers judge service quality.
Example:
Clean rooms, uniforms, lighting, music, furniture, and building design.
Another Example:
Private hospitals with modern equipment and attractive interiors.
Internal and External Factors Affecting Services
Services are influenced by many internal and external factors. These factors affect service
quality, customer satisfaction, and business success.

Reasons for Growth in Service Marketing

ncrease in ncome
People’s income has increased, so they spend more on services like tourism, healthcare,
education, and entertainment.
Example:
More people now travel by air and stay in hotels.

r ani ation
Growth of cities and urban lifestyle has increased demand for various services.
Example:
Higher demand for restaurants, transport, banks, and salons in cities.

echnological e elo ment

Technology has improved the speed and quality of services.
Example:
Online banking, mobile payments, and online shopping.

ansion of ector
Growth of Information Technology has increased service activities worldwide.
Example:
Infosys and Tata Consultancy Services providing IT services globally.

lo ali ation
International business and trade have increased demand for banking, transport, communication,
and tourism services.
Example:
International courier and airline services.

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International courier and airline services.

hanging ifestyle
Busy and modern lifestyles increase demand for convenience services.
Example:
Food delivery and online cab booking services.

rowth of ducation and wareness

Educated consumers demand better and specialized services.
Example:
Higher demand for professional healthcare and online education.

rowth of ourism
Tourism development increases demand for hotels, travel agencies, transport, and entertainment
services.
Example:
Growth of hotel and tourism industries in Goa and Kashmir.

o ernment u ort
Government policies and infrastructure development support service industries.
Example:
Digital India and tourism promotion programs.

Increase in Competition
Competition among companies encourages better and expanded services.
Example:
Telecom companies improving internet and customer services.

ise in o ulation
Growing population increases demand for healthcare, education, banking, and transport services.
Example:
Increase in hospitals, schools, and public transport facilities.

Factors affecting services-----

A) Internal Factors
Internal factors are factors within the organization that affect services.

m loyees taff
The behavior, skill, and attitude of employees directly affect service quality.
Example:
Friendly hotel staff improve customer satisfaction.

anagement olicies
Company rules and management decisions influence service delivery.
Example:
A bank introducing fast customer service policies.

inancial esources
Availability of funds affects service quality and expansion.
Example:
Hospitals with more funds can buy better equipment.

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[Link] Culture
A positive work culture improves employee performance and customer service.
Example:
Companies encouraging teamwork and customer care.

5. Service Process
Efficient procedures improve service delivery.
Example:
Fast billing system in supermarkets.

B) External Factors
External factors are factors outside the organization that influence services.

ustomers
Customer needs, preferences, and expectations affect services.
Example:
Increasing demand for online food delivery.

om etition
Competitors force companies to improve service quality.
Example:
Telecom companies providing better internet services due to competition.

o ernment olicies
Government laws and regulations affect service businesses.
Example:
Rules related to banking and healthcare services.

conomic onditions
Income level and economic condition influence demand for services.
Example:
Demand for luxury hotels decreases during economic recession.

ocial and ultural actors

Culture, lifestyle, and traditions affect customer behavior.
Example:
Tourism demand increases during festivals and holidays.

echnological hanges
New technology changes the way services are provided.
Example:
Online classes and telemedicine services.

atural n ironment
Weather and natural conditions also affect services.
Example:
Tourism services affected by floods or heavy rainfall.

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Factors Affecting Price of a Product
The price of a product is influenced by many internal and external factors. These factors help a
company decide the suitable price of a product.

A) Internal Factors
Internal factors are factors within the organization.

ost of roduction
Cost is the most important factor in pricing.
Higher production cost leads to higher price.
Example:
If raw material prices increase, product price also increases.

rofit ecti e
Companies fix prices according to desired profit.
Example:
Luxury brands keep high prices to earn more profit.

ar eting ecti es
Pricing depends on company goals like market expansion or survival.
Example:
New companies may keep low prices to attract customers.

roduct uality
High-quality products generally have higher prices.
Example:
Premium smartphones cost more because of better features.

rand mage
Popular brands can charge higher prices.
Example:
Apple products are expensive because of strong brand image.

ar eting i trategy
Price is affected by promotion, packaging, and distribution strategies.
Example:
Heavy advertising increases product cost and price.

B) External Factors
External factors are factors outside the organization.

emand for roduct

High demand allows companies to charge higher prices.
Example:
Air ticket prices increase during holidays.

om etition
Competitors’ prices influence pricing decisions.
Example:

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Example:
Telecom companies keeping similar recharge prices.

onsumer urchasing ower

Income level of customers affects pricing.
Example:
Low-priced products are sold in rural markets.

o ernment olicies
Taxes, regulations, and price controls affect product prices.
Example:
GST increases the final selling price.

conomic onditions
Inflation and recession influence pricing.
Example:
Prices of daily goods rise during inflation.

ar et onditions
Nature of market and customer preferences affect price.
Example:
Luxury products are priced higher in premium markets.

istri ution and rans ortation ost

Higher transport and delivery expenses increase product price.
Example:
Imported products are often expensive due to shipping cost.

Types of Channels of Distribution

irect hannel
Meaning
Direct Channel is a distribution system in which the producer sells goods directly to the final
consumer without using any intermediaries such as wholesalers, retailers, or agents. It creates a
direct relationship between the producer and customers. This channel is commonly used for
customized products, online sales, and local markets.
Flow:
Producer → Consumer
No middlemen are involved.
✅ Advantages
• Higher profit to producer
• Direct contact with customers
• Better control over price and quality
• Faster feedback from consumers
❌ Disadvantages
• Limited market coverage
• High transportation and marketing cost
• Difficult for large-scale distribution
Example
Farmers selling vegetables directly to customers.

ndirect hannel
Meaning

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Meaning
Indirect Channel is a distribution system in which one or more intermediaries help move goods
from producers to consumers. These intermediaries perform functions such as storage,
transportation, promotion, and selling. It is widely used for mass-produced consumer goods and
products sold over large geographical areas.
Middlemen help in distributing goods.

One-Level Channel
Meaning
In a One-Level Channel, the producer sells goods to retailers, and retailers sell them to
consumers. There is only one intermediary between the producer and the final buyer. This
channel is suitable when producers want reasonable market coverage while maintaining some
control over distribution.
Flow:
Producer → Retailer → Consumer
✅ Advantages
• Faster delivery
• Less cost than long channels
• Better control compared to multi-level channels
❌ Disadvantages
• Retailer may demand high margin
• Limited market reach compared to wholesaler network
Example
Clothing brands selling through retail stores.

Two-Level Channel
Meaning
In a Two-Level Channel, goods pass through both wholesalers and retailers before reaching
consumers. Wholesalers purchase products in bulk from producers and supply them to retailers.
This channel is commonly used for FMCG and other widely consumed products.
Flow:
Producer → Wholesaler → Retailer → Consumer
✅ Advantages
• Wide market coverage
• Suitable for mass consumer goods
• Wholesalers help in bulk distribution
❌ Disadvantages
• Higher product price
• Reduced control of producer
• Communication gap may occur
Example
Soap, biscuits, and FMCG products.

Three-Level Channel
Meaning
In a Three-Level Channel, an agent acts as an additional intermediary between the producer and
wholesaler. Agents help producers find buyers, negotiate deals, and expand into new markets.
This channel is generally used for international trade and large-scale distribution.
Flow:
Producer → Agent → Wholesaler → Retailer → Consumer
✅ Advantages
• Very large market reach

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 • Very large market reach
• Helpful in international and large-scale trade
• Agents help in finding markets and customers
❌ Disadvantages
• Very costly due to many intermediaries
• Slow communication
• High chances of conflict among members
• Producer loses direct customer connection
Example
Export business and agricultural products.
now give all advantage and disadvategs you given in a table
Type of Channel Advantages Disadvantages
Direct Channel • Higher profit to producer • Limited market coverage
• Direct contact with customers • High transportation and marketing
• Better control over price and cost
quality • Difficult for large-scale distribution
• Faster feedback from consumers
One-Level • Faster delivery • Retailer may demand high margin
Channel • Less cost than long channels • Limited market reach compared to
• Better control compared to multi- wholesaler network
level channels
Two-Level • Wide market coverage • Higher product price
Channel • Suitable for mass consumer • Reduced control of producer
goods • Communication gap may occur
• Wholesalers help in bulk
distribution
Three-Level • Very large market reach • Very costly due to many
Channel • Helpful in international and large- intermediaries
scale trade • Slow communication
• Agents help in finding markets • High chances of conflict among
and customers members
• Producer loses direct customer
connection
add real life company example
Type of Advantages Disadvantages Real-Life Company Example
Channel
Direct • Higher profit to • Limited market Dell Technologies — Dell sells laptops
Channel producer coverage directly to customers through online
• Direct contact • High transportation orders.
with customers and marketing cost
• Better control • Difficult for large-
over price and scale distribution
quality
• Faster feedback
from consumers
One-Level • Faster delivery • Retailer may Zara — Zara products are sold through
Channel • Less cost than demand high margin company-owned retail stores directly to
long channels • Limited market consumers.
• Better control reach compared to
compared to multi- wholesaler network
level channels

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 level channels
Two-Level • Wide market • Higher product Hindustan Unilever — Products like
Channel coverage price soaps and shampoos move through
• Suitable for mass • Reduced control of wholesalers and retailers before
consumer goods producer reaching customers.
• Wholesalers help • Communication
in bulk distribution gap may occur
Three- • Very large • Very costly due to Tata Tea — Export of tea often
Level market reach many intermediaries involves agents, wholesalers, and
Channel • Helpful in • Slow retailers in international markets.
international and communication
large-scale trade • High chances of
• Agents help in conflict among
finding markets members
and customers • Producer loses
direct customer
connection

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