Marketing Management Lecture PDF

U01_L01 Hello, and welcome to our course of marketing management. My name is Dr. Pretty Bhalla, and I have been teaching the marketing course since last 10 years. It is a very interesting topic. Marketing is basically the backbone of the industry. So, in this lecture, particularly in this lecture w...

U01_L01 Hello, and welcome to our course of marketing management. My name is Dr. Pretty Bhalla, and I have been teaching the marketing course since last 10 years. It is a very interesting topic. Marketing is basically the backbone of the industry. So, in this lecture, particularly in this lecture we will be able to understand about the market, and marketing. What are the basic concepts of the marketing and what is the nature and the scope of marketing? To begin with, let's take this example here onto the screen, what is these sessions, why do you think like the first slide of the sessions, do the thing to the session industries industry has revolutionized the world. It has actually revolutionized the way that people purchase consumed and approach the new time. It was like if I talk about, specially the shampoo sachets, It was way back in the 80s beginning of 80s and mid 90s as well. There were some families or there were people like in the starting of 80s 1980s where people were not using soaps as a daily aspect rather using a shampoo was considered as like something as a privilege because the cost of the bottles was of the highest cost of the water was way higher, and then with the thought process that would actually benefit us, or it won't benefit us. So what happened with us and marketing that gave birth to the sachets, and why the sachets or use of sachets are cheaper they are convenient they're very much profit friendly as inventor sachets were introduced to the market, as and when these sachets were introduced to the market what happened, it was revolutionized as everybody was right. Everybody got started adopting the same thing, and what has happened over the period of time we have realized. He soap factory was very prominent and dominant one time, it has like left the market. It is nowhere to be seen. Similarly, any marketer who wants to introduce their product. What is the most important, the most important is to make the customers understand the value of the product first is we need to understand, does the customer really needs a product. If he needs to hire people that don't. And finally, communicating the same, so we would be talking of elaboratively, what exactly is marketing. So marketing is basically, as for the definition by the American Marketing Association, marketing is an organizational function. It is an organizational function and a set of process for creating, communicating, and delivering values to customers and to manage customers relationship in a way that benefits the organization and the stakeholders like for example, the three aspects that we need to deal is creating, communicating and delivering, we have talked about the shampoo sessions. They created the need to communicate and deliver the needs of performance similarly to do things. So, the recent industries. Zomato, what did they created, they created the want and they communicated and delivered swiggy, OYO, Ola, how these companies have develop in this pandemic, even VFC in the online platforms of making your children glow and making yourself learn to the new aspect what it is. It is a game creating, communicating and delivering value to the customers and to and for managing the customer relationship now what is value, the most important aspect for any marketing student to understand as what is value, value is not the cost of product, least minded here value is not just a cost of the product rather what is value as the benefits of a product exceeds the cost of the product. When the benefits exceed the cost like for example I purchased a pen, and within a day it was broken. What I will say, there was no value for the product, why because the benefits never exceeded the cost. But if I say that I showed up. I have the shirt for the last five years, what can I say from last five years, I'm hearing it formally and it has repaid me so what it is, the benefits are much more as compared to the cost. So, this is what the marketers are searching for the marketers are searching for creating, communicating and delivering the value, and then after delivering the value is what is most important is to create the customer relationship for a longer run, you cannot satisfy a customer, and then leave the customer to themselves. Why, because then satisfied customer would go to somebody else. Why'd somebody else because in this competitive market there are a lot of companies that want the customers, they want to attract the customers that they are attracting but different compensation means by different promotions strategies freebies, number of faces. So, I need to first as we get a customer satisfy the customers and build a long-term relationship so that the long-term relationship is not just benefiting the organization, but all the stakeholders. So, another definition we should see, and keeping to it is marketing is a total system of business activities, as I said in the beginning of the lecture marketing is the backbone of any industry, any company, any organization without marketing existence doesn't seem to happen. So marketing is a total system of business activities designed to plan, price, promote, and distribute avoid satisfying products to target markets to achieve the organizational objective. Let's take this example, I have created a wonderful magnetic fridge magnet that I love a lot, and I think that everybody should love it. I created a wonderful fridge like a magnet, which I believe is the best use of the magnet, and nobody else have created it. What do you think, just by assuming creating that magnet and keeping to myself, it would be marketed and the people would start buying it. What I need to do, I need to communicate with a different style, so it's likely that what that would help people to record to record what is going on into their rooms or appliances, and further on, you can put the notes onto it. So what it is, it is giving the three benefits see when the value of a particular product is getting increased from a fridge magnet to a video recorder, then to have our writing slip, what happens, it has a lot of values, but now these, all these values, are they the needs of the customers, I need to understand that I need to understand what my customers want my customer wants small things, and that must be much more impactful. So based upon that I have created. Now I need to come, communicate so that the customers should be aware, yes, this product is available in the market and it can be purchased from here. And these are the offers going on, or these, this is the best. Like services that are going on or best qualities, and then that has to be delivered accordingly. So, what it says the sum total of all the business activities planned for a product, I put a cost to it, I promoted it and distribute it distributed what, what is one satisfying. I cannot sell a product that is not required by my customers. Can I can I sell a classroom projector to the, to any of the homes, a housewife who's sitting at home, can I sell a home like classroom projector to the same lady, I cannot. The most important thing is I need to understand what is want and need of the customer base the point that I have to target my customers. So, another definition is very crisp, that says marketing is a creation communication and the delivery of value, as well as management, customer relationship for the lifetime, for the lifetime similarly it is again creation communication and delivery of values. So, what exactly is the difference between market and marketing, market is actually a place where a lot of buyers and sellers meet. It is a place, or it is an area where the exchange of the goods can easily take place, that number of buyers can meet number of sellers, where there would be a lot of competition so market is basically an arrangement. So, market can be a wholesale market, it can be a retail market, it can be a mall. So, what exactly is a market, market is an arrangement that provides an opportunity to exchange goods. So, we will be discussing what does exchange goods exchange goods as elaborately we were discussing, but what does exchange good so when we buy something and give something. We are receiving something and giving something back that is what has been systems. So, that is just a money market is a place it is an arrangement but marketing is, it is a sum total of all the activities. It is a sum total of all the activities that are related to, to the flow of the goods from production to consumption, that are related from production to consumption like marketing is, it is a two-way weapon. Marketing is a two -way weapon into which we are first understanding the needs and the wants of the customers we are first understanding the needs and the desires of the customer, and based upon those needs and desires, we are creating the product, and then selling it back to the market. So, because it is a two way process, why because the first is we are before production before manufacturing, we are understanding the needs of the customer. And then, after analysing after going ahead with the market research and understanding the needs and the demands of the customer we are producing the same product. And finally, delivering what was communicated. We should understand now what exactly is going on. So, in a market what I said, it is a buyer and the sellers. That means what it is a marketer and the customers. So, marketers and customer. They are retail. Exactly. Those are there to sell, and customers are there to buy. Now what are the things that can. Can I hear this. Definitely ideas are sold consultancies are sold. This is our sole saloon. Education. Our beauty industry, all these other services, even the food industry services offered nexus of what products are sold. So, marketers are trying to sell numerous of the things that can be as an entertainment that can be something as an idea that can be something as a port that can be something as a delivery, like for example a lawyer. His lawyer giving you anything as a product. No, it's just giving your services. Similarly, a doctor, doctor did an operation to a person, what he did. Did he give him certain objects. Okay, this is the object that I have given to you this is a good that you have purchased for me now give me 10 lakhs of the money. Now he has done the services he has operated on to the body and remove the malgelite cells and all those. Similarly, what a marketer does actually sells or gives who its services are he has bought experience to the customers. And when he is on to the giving the customer is on to the receiving end, the receiver would definitely get something back to the giver. So that is what is an exchange. So how we exchange as he exchanges it by money through credit through loans, or through some efforts of the done okay like are you refuse to be a barter system, the barter system in the small rural areas that I am going to grow up arise and you're gonna grow up process, so I agree would go ahead and exchange things. Similarly, if there's an exchange process, the exchange is of goods, services, ideas with the money credit and goods. So, let's understand the difference between selling and marketing but before that let's understand what the sending back when our world was not industrialized, what was the very few people who were producing something on all the space, like for example, in a village. One Carpenter, one quarter, One Porter, one black smith, one gold smith. So whatever he or she was producing the rest of the people who directly consume what was happening, was just selling, imagine, there was only one colour as red, imaginable world where there was only one colour so red shirts are the dresses we would buy maximum, like it can be two to three because one it is, you're wearing the other is on to like a dry-cleaning aspect or it is in the washing area. The other day you should repeat because there is only one pattern one colour and the things, but now this was not helping out the marketers. So what they did, they come up with different favourite reads of different colours of red nitrate, dark red maroon red, what it means, faded colours, and then somewhat faded colours, it was a shot, shot top cropped off long term. Silver's the bottom, so they produce a different phase. So, all is our thought process of the marketers is a planning, it is a marketing system that is actually making them sell the production, so I was talking about selling, selling was a different scenario, nobody sells the products market, selling was an aspect, where there was only one. There was one manufacturer and he was forcing the customers or the customers were forced to buy, what was happening, it started from a family that family was here that was formed by me, so whatever shape, size, colour was consumed that was like, sold to the customers and the profit was because there was like we were talking off in the starting of the lecture we talked off hair soaps. So everybody was consuming the hair soap because there was no option. Everybody used Colgate, because there was no option. Everybody used gillite because there was no option. So what does, what was a selling. Selling was that it started from a factory and finally got the profit. Like Bajaj Chetak was the only option for the Indians that ruled for the decades. Store, talk about their existing products they never change that sold and final quarter profit, like the chart said the cost of only options with the Indians and ruled the market for the decades. before there were new options, because they were just doing selling the marketing, they never charge to Bajaj scooters never understood what has changed aspect of what is the need and the want of customers. So what next let's talk about marketing, what is marketing, marketing is a two-way weapon, it is a two way weapon. What does marketing does marketing does. First thing, as research, they understand the needs of the customer based opon the needs, they put it in production, and then they communicate the same, they go through integrated marketing integrated marketing to varied channels, varied channels might be the customers existing customers who have used the products and they are giving the reviews, or they are becoming their brand investors, or it can be radio, TV, promotions, a lot of the ways are being used so that the customer, get to know about the product. And finally, the profit is only made through customer satisfaction, please. This thing has to be noted, it has satisfied customers pains to buy larger capacities of the goods, and a new customer tends to buy the small capacities of the goods, like for to increase the basket size of a customer to increase the size that the people are buying. So what is required is the customer satisfaction, and the customer relationship. So, what does this marketing does the marketing is doing, trying to understand the needs of the customer based upon the needs, they are trying to create a product, and then they sell the product, not we, marketers do not stop at this point, whether they have a long term relationship. Like for example, with, with the launch of every iPhone, who are the people who change or switches to the next iPhone in the like the early stages, very start, as an episode, we are all the existing customers who are satisfied customers who have already used one version, and they are ready to move on to the next, there would be no new customer that somebody has, has been using Nokia, and he is going to buy the high end off the recent release of Apple. There can be chances but the chances are very less, so there is always a ratio. It is 30% of the customers 30% of the existing and the loyal customers contribute to the 70% of the sales, and it is a 70% of the new customers who contribute to just 30% of the sales, so we need to understand that we need to satisfy the customers. So my here is a depth difference between selling and marketing, what is selling, selling was of a bad concept if there's no more done. It was a part of the manufacturer who had the money to set up our industry he used to produce the product and sell it to the customers. If somebody remembers when it was not direct to home channels, science, India or our country was by direct cables that cable wallas was like a prominent position so whatever they decide they used to do. So somebody cable services was not after that so we called them, sir, that our services are not there. Ok, it doesn't matter, it would be resumed after Saturday Sunday because it's a holiday to us. Why, because at that time, it was a monopoly. Now, if I talk about the current marketing aspect, what it is. Anybody comes up with the complaint it is we need to give the feedback. Instead, why, otherwise what would happen the customers would shift. So we need to understand the basic difference between selling and marketing, selling was started at a factory. They started at a factory but marketing started as a marketplace where they try to understand what is the needs of the customer in selling they just concentrated on producing more the products more the products were sold more it was sold. But now that's not the scenario now we need to understand what is the need of a customer, customer is technologically oriented customers like not technology oriented, what exactly is the need based upon the needs we are making customized products so that our products can be sold, the perspective of the selling was just inside out. It was from inside that whatever is my thought process has to be implemented on everybody. My product is a best, so I'm making it, and this is the more you product so everybody has to buy it. Red was only colour available so everybody was wearing red. But now, in the marketing, what this is new. It is not just the way you tell us a colour, you tell us a range of the colours you can create your own Legos, you create your own products and service products and we will manufacture in the industry. So again, the business planning for the selling is very short term but with a marketing it is a long term because selling the orientation was so called new volumes, the more I'm producing more I would be selling and marketing the most important is, is profit, like for example, Imagine if the most of Mercedes people start trying to sell, the sell their car at the cost of a Tata Nano, what would happen would the profit increase or it will decrease, definitely could decrease, why because that have created a brand image that cannot be competed with the other, other product. similarly might be they're selling the lesser units might be they're selling the lesser units but they are increasing much more with a profit, because that is much more customers. So, it talks about much of the brand, brand awareness and the costs, the cost of the product and selling was the cost of the production, but in marketing, it is part of the market, it is according to the market value. So, we need to understand that we, as, as marketers have moved away from selling to the marketing aspect, no more we can sell to the customers. The customers are much more educated, much more educated so they would only buy the things that have a value that have a hidden need or a want, and then, so they would buy. This is the reason why marketing has become much more important. So, let's understand the nature of the nature of marketing. The nature of marketing. The first is, it is a customer focus. What does marketing does marketing is trying to understand what is the need of a customer based upon that they're trying to break up to that, and then promote the product, committed to the game so everything is surrounded around the customer So marketing is customer marketing has only relationship with the end result that is a board that has to increase multiply the profit of any organization that is a reason. Much of the company's expenditure or the most. much of the company's revenue is put into the marketing efforts because more is a marketing effort more risk across my life. And if a customer likes a product so they are ready to pay an extra amount for the same have realized, like, sometimes the same product, different colours, the bestest colour has cost much more as compared to the piece colour, why, just because of its limited edition just because of its marketing aspect that has created a different edge bigger thanks. So why the customer is ready to pay an extra chunk to the organization and make the organization on much more profit, because the answer is customer focus. So next point is it creates market offering. It creates market offering water change, it says in the market there are very few projects created perception very thoughts, vivid likings radiate dislike things you cannot create just one product and make that product fit into all what we need to understand we need to segment the customer. We need to segment them based upon their age, education, income light desires of our place of living numerous of a new thing and based upon those aspects, we can target the customers in a very different manner, with a very different product. So, this is what has created a market offering, it has exchange oriented. So, in a marketing, it doesn't mean that we are creating the basis of the product, just for an NGO for personnel, if we are creating the business of the production team efforts to satisfy the needs and the wants of a customer, and to give them more value what is required, the profit margins is why the more the customers thing is more, and the people are ready to pay the people are ready to pay the more amount that is what is exchanged oriented. Now, let me over here share a little story, the story goes like this, there was a father and a son who was talking to each other, and then he the son asked what do we mean by value, and how we create the value of what is value and how we create a value of something. So his father said, let me explain this thing with an example. He gave him a stone, a very polished to a different colored stone, and asked him that you would go to the market, you would go to a market find a customer, and sell this product, but you are not supposed to open your mouth, you just have a symbolize as this. So, the boys enter the market and there was a lady who asked, what you're trying to sell, while you're standing by the roadside, trying to sell something and the boy said, yes, yes, he showed this. And the lady said, it is very pretty. It's very pretty. I'm ready to buy it. What is the cost of the stone. The boy, as promised to the Father who said, Oh, she loves, August, $2, and ready to buy it. But the boy never gave it went back to the Father. And then the father said, Oh, that is great that you found your customer. Now, take this. Take this same stone and go to a museum. Go to a museum over the earth, there was a person who was fond off like old paints and things. So, again, he repeated the process he shoulders founder, the, the person was very much attracted and he asked the cost, and he said this, the owner of the museum said oh, I'm ready to pay $200 for this, and then he went back, he was really excited that from $2 Now the value has moved up to 200, or $200, don’t worry go towards the gem store, he went towards the Gem store, and there he showed the stone, the owner of the store said oh my goodness. Why were you caught this precious stone form. And where can I buy it, what is the cost of the product. He said, again. The owner said OKAY I'm ready to give you a pay you 2000$. Imagine for $2 to $2,000, what it means it means is where you market yourself where you market yourself who you need to find the best place you need to target the right kind of customers to get the best value this is what does that exchange for the next meter from the nature of marketing we would understand that marketing is a continuous activity. If we are out of marketing that means we are out of market and our market share would reduce and our customers would move from our company to our competitors’ companies, The good example is of Nokia, Nokia was ruling the Indian market it was ruling across the globe, but they were not ready to accept the things, and they were not ready to communicate. So, what happened, they have flopped down, they're trying to relive the things that has. So marketing is a continuous activity we need to read the interest in the customer, every now and then. So, you must be wondering why the established companies so still, they become the sponsors to the IPL, still they are always seen on the screen, why the main reason is that they are actually making the customers have continuous interactions with the brain. So, the brain must have a confidence activity that this is the right kind of a product, so my do I am not going to buy the product now, but in the future. My might be I'm a potential customer to them. So, again the marketing activities are always goal oriented, if I'm increasing the cost, it is goal oriented, and decreasing the cost, it is goal oriented, if I am asking celebrity endorser goal oriented, I have to pay this much and this must be should be the revenue. If I am not asking celebrity endorser whether I'm making my satisfied customers as my endorses what it means. It means it has certain costs associated with it. All the activities are going on. Make sense like next nature of marketing is it manages the four P's, what are four P's, it is product, price, place and promotion, what it is, it is product, price, place and promotion, the very existence of any organization depends upon the four P's. It monitors, what kind of a product, the size of the product shape of the product cost of the product, where would it be sold. Imagine if it is like roadside Hawker onto his like small. I would really say, a small carrier as he's getting I'm moving from one street to another, and he's trying to sell cap T shirts, by cap T shirts, by cap T shirts, would you, would you be ready to spend 2000 Or might be 1500 rupees for the same, would you be ready to sell. Definitely no. But the same T shirt, if it is present in a showroom in an exclusive showroom via very provide it for us onto an MRP costume. So, we need to manage all the four P's that is product, price, please place where it is sold, and how it has been being watered. So, another nature of marketing, it says, it creates utilities. So, as we have rightly said nobody buys no individual onto the earth buyers anything without a purpose, they only buy a utility, what is the utility that brings them up. I would never definitely buy a plasma projector or a big screen for myself, until and unless it is required. So, marketers are the people who actually create the utilities in the minds of the consumer, they create a utility why I should not buy a pair of 500 rupees, a pair of shoes, for 500 rather, I should spend 5,000 Why, because that is a plan. So, what they're trying to do, they're trying to create a utility. Utility can be a status utility, it can be a need utility, it can be any aspect, we have seen, we are seeing or who are everyday aspect the people. As we move to the next level. Next level might be they have a small card they pile up bigger. The. This time they had a trip to just close by, just to grab this time the next time we are planning for the Singapore, So what it is, it is a marketing utilities that are creating the utilities that meet in the minds of the need in the minds of the consumer. See, even now it is a country that have created started coming up with this aspect of marketing their own country so that more customers come and visit. The more the customers, the more is the income to our country. And the last nature that I will be discussing for the marketing activities and economic process. It is an economic process, why because the money is associated, it means a company the stakeholders, the customers give the money, buy the things, everything is at the cost, all the four P's are at a cost, like making a product is out of the four Ps three P's are there, the marketer or the manufacturer or the organization people are putting the money, the only one feed that to reach them or money is the price like see for producing the product we need to invest for marketers, promoting it, we need to put the efforts more money might be celebrity endorser might be social media anywhere but I need to put money, and last place where I have to sell I have to create a showroom I have to like put onto the AC’S, Hire the customer, or hire the salespeople so what it is, it is the three P's, where I am investing money. The only one P that's raised money for the organization is the price, cost of the product. So, this is what is the nature of marketing, all in the creative business. Now let's talk about the scope of marketing. There is a little correlation between the nature of marketing, and the scope of marketing Nature says, how, what exactly is a mark and scope say we're all, it can be implemented. So marketing is first to create awareness create awareness that yes, this product is available like I told you, I created that fridge magnet, that was a three, three version of the things that was a camera, that was a pen note pack, and another was a fridge magnet. So, what is this, I need to create awareness regarding my product to the customers if they want to buy the things, so I need to create awareness for that awareness creating, I need to I need to study that, what exactly is the customer wants, what are their needs and desires. So, we would be discussing what does need want and desire. In our next lecture, but it's actually a customer buys, only those things that have a poor related utility. The utility is what is the need and the water for customer so marketing discusses over marketing say that we need to understand what is the wants of a customer, and then we need to plan the product accordingly. Plan the product means the design of the product, the cost of the product, how it is used within should be used, how it is consumed, like for example if I talk about this tool so it came up into us. Then they started coming up in a liquid. Now they have converted, come in, in Lotus to the liquid zone as well. It is an inverted. And now they have come on to the sanitizers as well, washing utensils washing it all as well so what it is, it is a product planning, what should be there in my range, and that could have an impact to the same, so the next thing that I need to see for the scope of marketing is the after sales services. If my customer has bought product, but he's not satisfied, should I focus my energy focus my energy to make my employees, go and check what exactly is a problem, why is this one customer out of 1000’s of other customers. Just one customer out of the 1000s of the customers, should it be focused. Yes, it should be focused, why the cost of one customer would have a link to the 1000s of one negative reviews, what would happen. There was a lot of people who would be actually signing on to that review and they want to satisfy one satisfied customer. Similarly, can attract a number of others, like for example, I always come up with this example like any food sector or a food joint that comes up with a wonderful face to the food and wonderful delivery and hospitality and as pieces. Smile, what would happen is going to attract more customer might be the same customer over the years, because people have the fixed restaurants, but the same restaurant that changed sales boy under sales boy’s okay what, what do you want to order. Okay, this is how you want to eat, or you're not. What would happen, the customers go off, they are not going to stop those same restaurants, so we need to understand that, after sales and sales services are much more required. Next is a pricing policy, what it is, should we price it at par with the competition, we should price it lower than the competition, or we should price it above the competition so we need to understand what is the segment of the society that are ready to buy. For example, the sessions, why that was chosen because they understood that the people who are buying the Fosters is only one person or the 10% of the society, but everybody doesn't have the paying capacity, or whether they are not even trying to make the people fly on to the business game. And what has happened, it has revolutionized and today we can see onto mantra or to number of other sites, any new products or products that are over there, they are sent to the customers as a free gift, so that the people just apply it to us, and what would happen, they would become their loyal customers. So, we need to check up on the pricing policies because the price is a very sensitive matter. It is a very sensitive matter that attracts a lot of customers, and even it can expel a lot of customers out of your range. So, scope and marketing. Another aspect or a dimension is a distribution. See, leads, maybe other things, they are available every nook and corner and that is a reason they have an extensive distribution channel, and doesn't actually count, it does count I think if Maggie was only manufactured in one part of Bombay or an industry of Bombay. So, how many times in a year, would you have Nike might be once a month might be, once in five years because it's not. One has to be in every house of what they want, they had made an extensive supply chain management that it is available every nook and corner of the country of the world. So, what happens, might be the manufacturing centre is only one or 10 or 15 number as manufacturing centres are lesser, but the distribution of the supply is huge. And that is what is counting to the sales of the product makes us again the selling scope of marketing is selling and what it means, over the counter on the social medias. So, it is like, what matters is how you are being impacted, or to your sales by art and attracting to the customers and they are able to close the sales. So, scope of marketing, even talks about the packaging systems, what is packaging how beautiful the attractive package is. Now, if I talk about all the gift items. The most important thing is about the packaging. It is about like how they are being packaged how they are being delivered, and how they can be kept safe, over the period of time so packaging is a wonderful aspect that is a new industry going on, that it is not just the utility. What matters to some extent is the packaging and how things are done. The next is scope of marketing talks about the advertising. Advertising is a way of communication, how the products or the services are the nature of the products or the facilities of the product or the qualities that a product, who was better than its competitors are being communicated to the customers, the more is the communication, the more customer is being exposed to our particular product, what would happen, that is advertising that goes into our cognitive minds of the customers and they buy the product. Now, for example, you want to buy a soap, and you went to easy day simple local store. And over there, you had a call if you want to buy pears, but the Pears was not available. So onto the rack, there was some product as Hammam, there was another as sohan for someone there was another as clearance and other was there as Johnson's, so what would happen. Johnson's and Hammam the two common names would definitely impact your mind a lot. So what you would think instead of buying personal or the other products for sohan, I would buy the one that has a common name, then from Hammam and John says everything John says just for the kids. I should go for the Hamam. So what has happened, what has happened. It is an over-the-counter sale, just by advertising. Now for example you have another example let me give you, I went to enter to the Easy day store, I wanted to buy Coke, but Coke was present some corner of the stores, but over here it was Pepsi do all them profitable so I said like instead of traveling toward towards the far ends, and to a secure place. Why not just pick the things that are over the counter again and advertising has taken great impact with the things, and finally the scope of marketing is to collect the feedback, the feedback is the most important aspect, the customers who are coming up with the complaint the customers who are coming up with the theory they are the most prized possession of any company, because they are the people who are telling the false directly to the company, instead of spreading a word of mouth of negativity to the others, so they these customers should be handled in a very tricky manner, so that a negative word of mouth is not spread, and this positive feedback, which is collected from few from the major or the few of the customers should be communicated to all. Why, so that it is one satisfied customer can bring in lots of other customers. So this is all about the basics of marketing. Thank you. Have a nice day. U03_L01 Hello and welcome to the next lecture of Marketing Management. In this lecture we will be talking about the importance and relevance of 7P’s and 7 C’s. We have already talked for 4P’s, we know our little base of 4P’s product, price, place and promotion, but in this lecture we will elaboratively discuss what is seven P's. But before that, what is marketing. Marketing is planning, executing conception pricing distribution of ideas goods services to create exchange that satisfied, individual and organizational needs, so set up clearly the states as that we are trying to understand the needs and the wants of the customers and then creating a product and services that deliver services, and then having a longer-term relationship that enables to have, like, individual satisfaction also an organizing achievement of the organizational goals to. So, in the words of Peter Drucker the aim of marketing is to know and understand the customers. So well get the product or the services fits him and sells itself, that we don't have to put a pressure on selling them that we have understood the customer so well, and we have created as per the needs of the customer, that the product sells itself. So, this was by our marketing guru Peter Drucker. So, about marketing. The marketing function is a study of the market forces founders and the development of the company's position to optimize its benefit from them. So, the marketing Yes, basically it is all about understanding where the company is what the company wants to do where it wants to go, what benefits is want to give their gift to the customer and how it can own the benefit from the customers. It is all about getting the right product, or the right service to the customers at the right price, and in the right place at the right time. So, it is everything about the right, the, if the product is right, it is delivered right the people are going to be happy and this is going to give them the satisfaction and give money to the organization. So, a successful marketing actually depends upon what the company is going to produce. So, what sort of a product that is what sort of a service that does what sort of an experience at this how it is endorsing the thing. Hello and welcome to the next lecture, marketing, in this engrossing domain. So, what is the output of a company. So what is, what a company is going to produce, how much it is going to charge it. See what it is going to produce how much it is going to charge it and how it is going to deliver its products or services to the customers and how it is going to tell its customer about its products and services might be a wonderful product that's there and we know that sauce, and we know how to deliver it, but we have not communicated the presence of a product the need of a product, would it be so it would never be sold. So all these aspects are considered are known or they're considered as a seven piece of marketing, and they are also known as a marketing mix, the earlier we'll use to consider the four P's of marketing that is product, price, place and promotion now we have an extended version of the marketing mix. That is 7P’s. So about, if I talk about marketing. Marketing is more successful than when the philosophy tasks and the manner of implementing available technology are coordinated and complimentary to each other. So, what they say is whatever is the philosophy, the thought versus how the product is and how it has been delivered, or the study they are associated with the technology and they are correlated and they are complementary to those products and services. So, what we need to do we need to find and keep the customers, the major aims the prime aim of any marketing is to find and keep the customers. Now if I talk about the types of the marketing, the types of the marketing are, if I say according to the sensibility and standardization. According to sensibilities standardization storage product and the involvement of the products, we can talk about marketing in two ways. It can be a good marketing it can be a service comedy with marketing is a physical product so it has to be a manufacturing company, it can be about Rexona It can be about serve it can be about it or anything that has been manufactured and another is a service industry. So this marketing that is about banking sector that is about education sector that is about beauty industry, So they support instability standardization stories production and involvement marketing are basically of two types, goods marketing, and service modeling. Next, we move ahead and discuss the types of marketing depending upon the nature of contact information process for purchasing and delivering, we can talk marketing from the perspective that is mass marketing direct marketing and internet marketing is the same product that's been sold to a large chunk of people like Sony LCDs, LED’s all these products are like mass marketed, but the cost is failing, but the almost a similar product for the entire thing. Next is how you send the messages are you sending them the message is correct, that is more matching that is to our telephone, that is for direct mail, direct mail marketing internet marketing is when you are using some other platform to sell your products, it can be Amazon Flipkart social media, all these are internet marketing. They are a platform is being used to sell your products. Now we can even discuss the types of marketing depending upon the geographic area extent of distribution network marketing variation commitment to the country. So based upon the geographic area and the distribution we can talk of Marketing, Local Marketing Regional Marketing national marketing international marketing and global marketing, we have seen certain products that are very, very, very regional and they're very famous, and we know the brands that are into the global market and also they are very famous, like for example if I talk about the local washing cloth 777 or triple five or chakra so they have regional folks but the companies are doing perfectly. Similarly, the global plans as well as gap us. They are doing perfectly well. Now, from all these aspects we can talk about seven P's of marketing, the seven P's of marketing, onto which the entire marketing entire organization. the entire business depends upon the seven P's of marketing the seven P's of marketing are product, price, promotion, place packaging positioning and people. We've been talking about all these aspects, we should keep into mind what are the seven P’s or you will use to talk about the marketing mix as a four piece as product, price, place and promotion. Now we have an extended portion of our marketing mix of 40s to the 70s and then seven P's product, price, promotion place packaging positioning and people. Now, let's talk about product, what is a product, product is anything that is offered to the market for the same purpose, anything that a customer goes and buy the products, and why we buy a product. We never buy a product we buy a utility we buy a benefit. We always tend to buy, like for example, there is a class room projectors, Should we buy this class projector in particular for the house, but would never buy it, why because for the house we do not need a classroom projector, the special chairs and tables that are into the Polish, colleges, should we buy the same sort of sitting arrangement for the home. No, because there is no utility of the same. So, what is a product, product is a bundle of benefits. It is a bundle of utility, which the customer wants to get it fulfilled, so there is no point in developing a product or services that no one wants, but yet many businesses try to offer it first hoping that the product would be that, like for example, story of Segway. The Segway was a wonderful equipment, a wonderful product that was, but that was not required. The people didn't like that. So what happened, instead of like heavy marketing heavy manufacturing the product failed and the company was a flop show. Rather, what should we do. In contrast, the successful companies actually find out what the customer need and want is, and then develop the right kind of product with the right level of quality to meet those needs. For future and for the person. So, a product must provide value to the customer. And as I've already discussed what is value, value means when the benefits exceed the cost. For example I have paid 100 for a particular pen, and the pen work for me just for two days, I would say the benefits are very less as compared to the past, but the same pen lasted for three months, but I would say oh my goodness, the value is much higher as compared to the cost so the value of the product is higher. So what does value is when benefits exceed the cost, the value is in the eyes of the beholder. We must give our customer what they fought, not what we think they should want it, the customer, the product does not have to be tangible and insurance policy can be a product too. So similarly, the product is not always sensible the products are not that which we can touch feel apart. Rather, it can be an insurance policy, it can be a massage. Massage Center. It can be a relaxed center, it can be all information it can be advice, anything can be a product of a company. Next, from moving from product let's move on to what is price. In this lecture we're just gonna talk briefly about all these aspects are. So what is price, price is only worth what the customers aren't prepared to pay for it. See, out of all the fees. The only value data costs are that the organization gets as from the price, the only source of revenue. See, I'm making a product and promoting it and placing it and attaching people and doing all the activities. What it is a cost to the company, but where the company get the revenue for the company gets the revenue, only from the price, the price also needs to be very much competitive, but this does not necessarily mean specific person, see the company doesn't have to come up with the cheapest product like for example, China has the cheapest product, but now the people have realized that they're not buying it. Tata Nano tried to protect itself as a cheapest car and what happened, a flop show, so it doesn't have to be the cheapest rather it has to be value for money, the small business may be able to compete with the larger rivals by adding extra services or details that will offer better value for money, So, a price should come up with a value for money. Pricing must provide a profit, it is not only element of marketing which can generate revenue. Everything else represents a costs. So, these are all the tax, tax here on to the things so the price varies so the people, maximum organization keeper the MRP then reduce it and then we reduce it so all these price tracks are the costs that are associated in the exchange for process of keeping that product. Now the types of pricing can be a premium pricing penetration pricing economy pricing and scheduling pricing. Very briefly, we'll be discussing this, into this introductory session, what is pricing, what is premium pricing premium pricing is when you are intentionally keeping the cost of a product is very high, to target a specific category of the customer, like for example the premium pricing of the Apple phones. So, the cost is very high. So premium pricing is when we have kept it for like specific, like for example, in an airplane as well. So, it is gonna take other customers from one destination to another destination. Still, there are certain blocks. This is a premium class, this is a middle class and this is for the Lord, some of the people similarly in the in right while traveling through trades also what is it, this premium pricing is when we are ready to pay an extra charge some the same practice has started in, even in the hospitals as well. So, if you want to stand in a queue and wait for a doctor might do for an hour or two, till he gets a free and takes you, you need to pay a normal pricing, but if you're ready to pay a little some extra so it can, the process can be speak fast. Similarly, now on to an Amazon platform, and that to Flipkart platforms. If you're ready to pay a little more extra money for the transport costs, they would deliver the products very easily. Next is penetration. What is penetration means, when we are intentionally keeping the cost of a productive very low. When we are intentionally keeping the costs of a product very low, so that it is the masses that buys the product, like for example if I talk about the phone, it kept its cost as nothing, and what happened, it was the entire population that adopted the product. So what is penetration is intentionally keeping the cost of a product, very low, so that the people get used to it, and then slowly you can raise the price as well, so penetration is one of an inspect into what you want the, the customers, or the masses, and where the cost of the product is associated is comparatively very low so penetration is when you're intentionally keeping the cost, initial cost of the product very low, so that a larger chunk of the society, or it is the maximum population adopts the products. Next is the economy prices, economy prices are when we are actually checking. What is the pain capacity of maximum of the chunk of the people, the middle-class people the economy of what, how much they can afford, at what cost they can afford. Accordingly, we are setting the prices so that our sales keep on going, like for example, Apple iPhone, they are always at the higher costs, so they have actually positioned themselves as a possibly but quality given, but now they wanted to target the middle class the economy class how the targeted the targeted to coming up with the SC model, the SC model is what is economy pricing economy pricing is understanding your customers and accordingly charging the average cost, that would be bringing the profit to both the shirt, the company people, and to the customers to make services come in price and skimming pricing is again the aspect into which initially we are keeping the costs of a product, very high. And the elite class, or the future of the people who are willing to buy at that cost, they would give the maximum of the profit, and when this, This like these number of people are saturated, then you reduce the costs a little less, and then you reduce the cost a little less, and then you reduce our cost a little less that is us coming pricing like, Let's take an example over here, when the mobile phones are for launch. The cost of the product was very huge. It was just 10% of the population who was able to afford it, and from the 10% of the population, the company skimmed the profit they took the maximum profit, and when this 10% was saturated, they targeted next 20% of the population then what they did to reduce the cost and as and when they reduce the past little, this 20% of the population bought the product. And then, after saturating this 20% the targeted next 40% of the population, and then the reducer was further on, and brought the profit, and finally they reduce it to that level that it is an entire chunk of the society can by default, this is what is the type of pricing the type of pricing is basically of the full type that is premium penetration, economy, and skimming. Now, what is the pricing strategy, what is the, like, pricing strategy importance or strategy. Strategy is what it is a longer-term aspect is a longer-term planning, into which we are trying to hold the relationship with the with our customers for a longer duration of time and trying to create a chunk of the market share that lasts long. So for this what we need to understand we need to understand what is our market is on the market very heterogeneous people with various demographic features over here are a very specific sort of our demographic is like for example if I talk about macros. So, demography is like almost a similar nature, youth, maximum of the youth, the population of the of the lichens early 50s or 60s, is there, but again they, they are not dominating the market so we need, no need to know the market, and then we need to understand the elasticity like how much they are ready to pay how much it can be reduced, so that it is neither the customers who are getting the loss and it is neither the company that is, or getting the loss. So, elasticity has to be defined well we need to understand the strategy, how to keep the cost of the product, if we are keeping the cost of the product very high, the people are not going to buy it, even if we are keeping the cost of production, very low, then again, the quality of the thought process with the psychology would be that the production is of not quality. Even then, they are not going to buy it. So, what we need to understand we need to understand the elasticity. So, what is the needs of the product, what is the choice of the people. And what is the quality of it so, based upon that we can price our product. and then the most important thing is we need to know how what rivals are setting up in the market, what are they asking for the cost and how quickly they are changing or revolving around the costs. So, keeping the rivals. Understanding this strategy is also very most important. Now, let's move on to the next fee of seven years. The third one is promotion. Promotion. So, when we have a product where we know the price, but if it is not promoted Well, what would happen, it would be the competitors who would take the chunk of art market share, or it would be before be able to sell our product because the people are not out there making the people aware of our products and services as what is promotion. Promotion as a way, the company communicates what it does, what it can offer to the customers. It includes activities like branding, advertising, public relations, corporate identity, sales management, special offers an exhibition. So, what does promotion. Promotion is basically how the company is talking to its customer, making them aware that this product this service but this distinct feature is available at this cost. So, promotion is basically to gain attention to, to become very much, attractive and giving a very consistent presence so that trust factor is also developed with the community at large. So, good promotion, one way communication see promotion. Good. Even if we talk about communication, communication is always two way. And if we want to have good communication with our customers, it has to be two ways so how it comes up, it comes up when we open the platform for the feedback. When we open the offense as a free gift, and share your experience. So, what is it, it is a Communication is a two way communication, and nowadays this has become a great rule and PCs role as well, everything is available online, so the people are giving the reviews positive negative as and when they have purchased a product or services, and this original customers are actually becoming storytellers are there becoming grant endorser to all those people who want to buy a product. For example, you want to buy a new buy online, so you have shortlisted one, okay, this fits my pocket and this fits up with my own needs, and qualities that are required, what do you do, do you go and check the reviews. If maximum of the reviews is positive, what would happen it would give you a trust factor of relaxing your mind. Yes, I have taken out the decision, but if the maximum view views are negative. Do you think so you would actually check upon who you buy this product for you would have a doubt in the mind, and might be you do not end up buying the things as well. So now let's see about what are the types of promotion, the types of promotion can be advertising, branding, competitive advantage. So, advertising, it's again advertising can be onto the online media social media TV screens. Branding is all consisting of tag logo, or it can be or it can be a tag, logo, symbol, sign that actually creates a relationship, know that putting a tick Mean means Nike, having so called means Audi. So what is branding. Branding is actually making communicating, or creating a prospect of with the Emperor, with the customer so that just with an image, they realize that this is a product endorsement is when certain celebrities, certain celebrities that have old, a greater position in the society, because of their activities, or they have greater fan following. So they people are actually asked to endorse the product, tell about the goods and the positives of the things, so that masses start buying the things like for example the maximum as a beauty products, Our hero in our beautiful girl migration here i talks about my skin is much clearer because I use this product. So what would happen is a half of the young viewers would start buying the same buy because it has been in draws to buy the beauty queen. Similarly, the types of the promotion can be the competitive advantage, competitive advantages, okay we can talk of this product doesn't have this for this feature, we are providing this special feature, like for example the voice can canceling in airports or might be like double sausages into a burger. So that is what is a competitive advantage competitive advantages, what extra feature that you are providing what your customer, what your competitors are not providing that is what is a competitive advantage. So, let's move on to the next p of the seven p’s get this place does matter, it doesn't matter. It is only the product and the price matters, what do you think, do you think like if I want to buy a Nike shirt and I move to the store and on to the store the shortage there I liked it but it was of 900 rupees so I will take that might be I will come again in the same. But then, as when I was stepping out of the store I find far have found like somebody, a street side hawker, he's also trying to sell almost a similar shirt and when I got to, I can find no distance between that shirt bra which I found in the Nike store, and the shoe that was put by the street hawkers, but the cost of the shortest just 200 rupees would you buy it or you won't buy it might be you end up buying, But you're assurity that is genuine product would never be. You would not trust. So, please have a great mentor, please, as Brother customers buys a product and means of distributing products to the place must be appropriate and convenient to the customer. we cannot try to sell like for example Reliance's selling petrol, petroleum, it is having communication, it is having like Reliance trains put wheels close, it is having jewels, it is having even the edge cameras and phones. So do you think it should open up big hall, and all these things should be put into different corners. Can you imagine a lady traveling with a big bag, wanted to buy vegetables and after buying vegetables, she went to a jewellery shop and asked her, show me a diamond set, it can never happen. So, what is the place just matter, a place that is very convenient. Imagine a place where some people are trying to buy vegetables and the other lady's trying to buy diamonds jwell, would the debt concentration happen, it can never happen. So what it is. Products must be available in the right place at the right time and in the right, wants to be, while keeping the store is inventory distribution costs to an acceptable level. Imagine you went to buy mangoes, but the hawker said only two mangoes are available. Would you like to buy from him, or would you like to buy from somebody that have a good stock and you can pick and choose any of the mangoes, definitely. so keeping the storage option is also much more important. Now, imagine that a person is just a sweet hawker tries to sell, mangoes, and we have purchased 100 kgs of mangoes, would he be able to sell it, because he's just a single person No, so we need to keep in mind how much to keep in an inventory, depending upon this every sales of every day. So, what is place, place is actually, our area or it is our dimensions where the customers actually go to buy the product. So this place should be much more convenient. So the types of the places can be like it can be a direct channel, it can be a retail channel it can be a wholesale channel it can be an agency that channel like for example Oriflamme products or Tupperware products we can go and buy it directly to products are being sold directly through agents, so these agents get it from a wholesaler, and from that wholesale from the retailer and finally we are, we are getting out to the consumer. So what is the ad we have like Oriflamme on top of the selling through the agent. So, how the producers and the consumers are meeting their meeting through a lot of channels in between. Now, imagine I want to buy crackers, I do not want to buy direct from the retail store because they are very costly with and I can go and buy from the shop, where the retailers have bought. So what would happen a little margin to reduce so that our wholesale channels, the wholesalers, the producers, produces a product sell it into bulk to the wholesalers, and this wholesalers sell it to the consumers. Similarly it, the wholesalers can sell it to retailers and retailers can buy it from the consumers, or it can be a direct from the company like Eureka Forbes, they produce the product and sell it directly to the customers. So these are the various platforms of the various types of the places where the products are sold. Next P in the seven Ps as the people. The most important aspect of any organization or any existing company that has people that it can. The company can have a wonderful product at a good cause, good promotion but if the people leaving or not right, definitely the customers are not going to be attached with the company, so the people represent the business, the image they represent, is very important because this is how they produce present their company like for example, I present myself as I'm very lazy. Would the interviewer by me or good the interviewer hire. Definitely no because I have created my own image that I'm very lazy and I do not do the work, but then if I come up and say, present my image as a very hardworking and very innovative, and try to be present or grab on new options so what is happening, I'm giving an image to my interviewer that I am a good like employee so please hire me. So the first contact, often humans or human what is a lasting image do we provide to the customer. So, what sort of an information an employee is giving to the customer that is going to last with the customer is, like for example, I talked to a customer, about a new eating joint available, and the customer was very satisfied, he said, our data is wonderful, even my wife like it my kids like that, you should go and try extra leaf chili Pizza and you should go and go and have like a magical coffee, but the employee over there is a good friend of mine, and he says, oh please, there extra coffee, don't go over there. Do you have number of options, would I go to that place or I would not go to that place. Definitely I would never go to the place because the employee himself is promoting negatives of the organization. So now, how we can train our people. We can train our people and we can be assured that our people are doing the right kind of spread by involving them into the right kind of training and knowledge about the product and services concerned. So, we should actually be for the people. We should understand that the staff represent the desired culture of business, so why Zappos, as the most favorable in the form of a culture, because they are treated well, if they are treated well, so they have a curiosity to grow and learn and be participative, but any employee that a snippet, and is never asked for an opinion what would happen, they would say, This is not my organization I'm just working nine to five, and I do not represent my company, so they can talk of anything as negatives. So the next Seven P’s is a process, how the things are being done process. So, the process we talk about how do people consume the service, how do imagine like you go to a saloon and ask for services, and they without checking your hair length or something, bring the Caesars and give you a great cut. Would you like it, and then they justify it because you just wanted to cut the hair this thing, know what we need to understand we need to understand the process the process should be, that they are making a certain front of the camera, they're asking you. Can I cut this merch; this is the way you want the things. So, what is the process for processes how you do the task, how you do the task is much more important, like, what process do you go through to acquire the services, imagine you need to stand for like a mark for good to us to get a product or services would you like to book, keep on buying that product or services you want, but there is another easy pass to the channel and get the services onto the doorstep. Would you buy from that. Definitely we would prefer us door or doorway supplies. So what does that process is how, how things are actually being done. So where do we find the availability of the services, the availability of the services is through contact reminders resuscitation through subscription to form filling. It is for the degree of technology, how I am getting an assess and how my order is getting completed is called as the process, process, is the stages or the faded steps through which our consumer moves in moves and before, like between deciding to buy a product and finally acquiring the product. So, till the time you have paid you have not paid the product, if you are still into a process so how you get the services, it is just through contacting with the people filling your registration form or going to the lead the procedures audit is at a click of a why the people have suffered to e commerce, because everything is on to a click away, and you can have a widest range of, like, appliances and the services and the product, which you can actually scroll through and check through in details, and even you can get a review of every product that is a reason why this E platform has increased the sales have increased the next P the final p is the physical evidence. So, the final p is the physical evidence that physical evidence as it is about the ambience mood or the physical presentation of the environment, how good, how smart how shabby friendly how retro, how old or how modernized, where you are setting what you like and, like for example, whenever we go to Himalayas and health ways, what we like we like the bakeries. Why, because they are very small, and they are belonging to our cultures. And similarly, when they go to next metro cities and all that. So what we find we find them as very much like up to the train more drain, music, and sometimes we go to pubs and clubs, and if we find them dirty unkempt. So what we need, we need that. We do not like the areas as smelly but we like something as like a fresh environment, tidy neat. So all these things are the physical evidence, where I am interested to sit and watch the things earlier like are getting your car washed or getting your car's car repaired was like something as p state my car I cannot sit over there. But now, the companies have made it modernized, they have read the information of every, every part changed every tool or technique that has been adopted, you can see through the screen and the relevance of every part is also the also a modernized aspect of actually meal made that getting your car cleaned as a learning aspect. So, this is what is a physical evidence, and how the things are getting changed. Now, with nobody likes to wait for one hour or two hours that is a reason, even on to like might be waiting for a doctor, a lot of medicines are there or not, a TV is there. So, what is that this is what is a physical evidence and that that does plays a very crucial role. So overall, if I talk about the marketing mix, marketing mix is a beautiful blend of that is composed of marketing objectives, targets of the production, what is my target market, what is my rifle like product or services organization behavior. What are the global issues how I'm taking care of culture, religion technology of the socio-political aspects, what is my marketing position can I increase it, I'm decreasing it I'm promoting I'm being associated with certain aspect like it was only yesterday, when it was like a famous football player, who kept the coke aside, and what happened. The, evaluation of coke fell by 4 billion so what is that, that is again a market positioning and next is a product portfolio, what all I have to give to my customer. And I'm selling only one product or I'm selling a wide range of products, and that that wide range of products have a good assortment as well. So, all this contributes towards marketing mix. The seven p's and seven Cs are almost similar the seven C's seven P's of marketing our product, price, promotion place people process and physical evidence, and the similar aspect can be seen in the seven C's. So, as seven C ’ of the things which can be called correlated, it talks about the customers, it talks about the cause, it talks about the convenience, it talks about how the customer are being taken care of, so all seven P's represent the seven C's of marketing. That’s it for the day today. Thank you. U14_T03 Hello and welcome to the next lecture of marketing management. In this lecture we would be able to understand, ethics in marketing. Before starting up, let's understand what is ethics, what is ethics. Ethics is a science and art of determining, good or bad, right or wrong, as a moral behaviour so what is ethics. Ethics is just a distinction. It is a distinction between as a good or as bad as it right or as it wrong. So now what does ethics, and how does ethics is different from law. Law is something that has been written by the government by the law, that these has to be adopted in this manner, anybody is not adopting the things would be illegal. But everything is not written. There are certain moral consideration, that has to be adopted has to be seen, that becomes ethical in nature like nobody has said that competition is bad, and for competition. Like, everybody goes and practices very hard, so that is like something good but in a competition when you're trying to use unfair means that is dropping your costs to bare minimum, and making the new entrant dissolve its identity what happened that is unethical, and that is unethical as a business. So, in this lecture we will be trying to understand what are the ethical or what are the unethical practices that is adopted by the marketing, so if I talk about what is marketing marketing is a science and art of exploring, creating delivering value to satisfy the needs of offer target market at a profit. So what is marketing. Marketing is basically a two way weapon in which we are trying to understand what is the needs and desires of customers in accordance to the needs and desires we are trying to come up with the products and services that would deliver that benefit, and that would bring up our value value is when benefits exceed the cost. So now, in doing the same. we can use ethical measures and we can use unethical measures, ethical measure says that we are respecting the consumers we are not cheating upon with the consumer we are using the right kind of ingredients, we are coming up with the right kind of promotion, right, kind of a strategy we are not cheating off with the customers by printing something else on to the packet and ingredients is something else, like for example, as an ethical buy like if I talk about the healthy soup that was like that been there that says that it is very healthy to digest and it is very good for the heart but in real, it has a high content of sodium, and that high content of sodium is actually bad for the health. So is it ethical to misguide the consumers. Is it ethical No it's not. So we need to understand how to come up with an ethical marketing strategy and marketing is a sum total of all the activities that is creating and delivering values. So, while creating and delivering value we should be very ethical in nature. So, now why we need to understand marketing ethics, why we need to understand ethics see. When an organisation, when a business is working, by the people for the people. So when it is working by the people for the people then it should not adopt certain unethical measures that would do that would bring harm to the greater part of a society that would just break free for instant benefit to the organisation but, like, might not be, it would bring certain negative aspects to the consumer. So why ethics says, When organisation behaves, ethically, will now be here, let's understand when an organisation is behaving unethically like for example if I talk about the dhara oil. Dhara oil was like bought at a, at one time, A decade ago ago it was a prime, like refined oil that for sold and there was a full of advertisements and promotion, but then it was found to be adult, it was found to be putting certain ingredients that is not good for human consumption and what happened. The customers lost the faith, and that organisation is not able to revive back to its original position. Do it is trying to come up with all the best of the ingredients but still the position is not there. So why should we behave ethically because it develops a very positive attitude about the form about the products and its services, and his positive attitude brings the positioning of the products organisation and the services in the minds of the consumer, and that increase the market share. Increase the market share means increased profitability. So what is marketing ethics marketing ethics is defined as a right or wrong action, it is defined as a right or wrong action. Which is standard by the marketing action that can be judged as right or wrong, means that we need to understand that the action is right or the action is wrong. So, what is marketing ethics, It is and it is the area of Applied Ethics which deals with the moral principles behind operations and regulations of marketing, ethics in marketing, applies to different spheres such as product pricing place distribution promotion advertising all those. I for example the intentionally we are keeping the price very high or intentionally we were keeping the price very low there is an unetheicale where the place of distribution is where it is already existing market or the promote the promotion is that, that, that talks about certain big packages or the big volume or the big, big the size of the products but in actual The size is very small, or like for example, advertisement, shows that the packet full of layers or kukure is the size but in actual it's the size. If I talk about the McDonald's, Burger, that is count to the poster that is, the spec, but in real it is the small size. So what is said, that is unethical practices that are being followed by certain organisations. So now why we need to understand, ethics and marketing when an organisation behaves, ethically, customers developed a deep positive attitude about the firm its products and services. So what it happens it creates values and trust with the key holders with the stakeholders, and when, and organisations build a good image with the customers, employees stakeholders in the society that means what it does having high market value more than market value more as a market share. So the art ethical issues which in marketing we can discuss, is about the product and packaging, price, place, placing place where it is distributed or the promotion that is so advertising and running like for example production packaging for the same ingredients of the products, the ingredients of the products are like. Right Thought has all the ingredients been disclosed on to the packaging is the date of packaging rightly mentioned is the, the, how to use the product, how to consume the product and what is the shelf life of a product rightly mentioned or not, and is the price adequate hope the organisation is not maintaining lot of money, and when it is a necessity, it is forcing the consumers to buy the product like for example, sometimes the cost of the rice goes to paying high, sometimes the price of the onion supposed goes to paying too high, why because certain unethical practices of hoarding all the material at one place, and then. And when artificial deficiency is created in the market, and then the products are being sold at a higher rate, that is what is unethical and the distribution centre should not be like intensely we're creating that there is lack of the product in the market and as and when there is a lack of our product, what happens is demand automatically goes up, like last to last year we have seen that it was like the toilet papers that was running out of the shelves in Australia why because that was as simple as a segment displayed, so the people what they did, they started hoarding and buying a lot of products altogether. Similarly, the start of pandemic, it was the sanitizers similar the promotions should come up with the right kind of content and the right kind of advertisement, it should not be comparing it should not be been demeaning any other brand, or it should not be superficially highlighting its ingredients. So, the products we should be like consumer safe, they should be liable, and they, the should be reliable, and they should come and serve the special needs for which the product is there. So the first point is like we are talking of the ethical issues in marketing a product that is ethical if it is safe it is liable, it is reliable, and for the purpose for which the product is bought that the serving it like for example, mobile is port for the, for communication that is serving it is for, like, clicking the photos it is there it is for sending the email sending the WhatsApp messages and all that all that is purpose is for that means it is right kind of a thing. Next if I talked about the packaging. The packaging should be very fried. There should be information about the organisations as a producer right kind of ingredients are said shelf life, current contact centres, Even the bar coding so it should have a right kind of a label information packaging graphics packaging safety and environmental implication of a packaging should be there this is an new aspect like we have talked off green marketing green marketing talks of the packaging practices because it is a packaging. It is the polythene it is a packaging into which the contents are being trapped that are not being decomposed over the years and that becomes a threat to the environment so it is implication to use environmental safe products like packaging of the peoduct should be with the right kind, it should not contaminate the products, or it should not come up with like a spoiling the its ingredients so this is an example like sometimes when the seal is not proper or when there is a content of the air in the package what happened. The ingredients go get like spoiled up, they get contaminated and that are not right to consume. Next is pricing pricing is another another aspect like the four out of the four P's product, price, place and promotion the four P's. All the unethical practices can be there, the, it can be the predatory pricing that is coming up with a price that is very low or very high low it kills a competition and very high, it makes the people buy out of their purchasing power, and when the product is of necessity, they need to come up by, and they should be. It should be like unnecessary price was should be kept at away or dumping that as like, reducing the cost to almost negligible that should be avoided because that kills the competition, and if the competition is being killed, competition is actually very important for the consumers in a competition, it becomes mandatory for the organisation to bring the best quality. But if a product doesn't have a competition, that means they can come up with any product or any services, which the consumers have to buy it, like for example, a decade ago, when the systems was just after cable walas so the cable walas cable systems and all that they were doing their own at their own discrete, there was some time showing and sometimes not showing sometimes, if the connection is just disconnected, one implant at four months old together, and they increase the cost to have way too high. So what was that the pricing was because there was a monopoly, as in when there is a lot of DTS services, and competition is there. Now this, the cause of DTH services. It is a channels that are keeping the prices very adequate, and the proper facilities are being provided to the customers. Next is placing product distribution or place as one of the four elements of marketing mix, distribution of the products or services and transportation from manufacturer to stockers to wholesalers to retailers and then consumers, it should be done in a perfect manner. The recent pandemic, we have seen, although there was a good supply of oxygen slain does but it was not transported or it was not given the right time because it was the internal people who were trying to mint money and sell it to the people activate too much prices when the distribution system is not adequate, it does not proper and it does not regularise what happens or disturbances is created, and that brings a negative face for everybody. Next is a advertising and branding promotion is one of the four elements of marketing mix of marketing myths that is product, price, place and promotion. It is a communication link it is advertisement promotion is a communication link between the sellers and the buyers, and if the communication is not right. It is without a purpose exaggerating it services like ads came up that as and when a guy's using an axe, axe is a perfume it is a fairy status dropping down, or a girl is using that fear and glow as a cream it does all the boys that are hanging around her, or anybody who's trying to use booze. He is like the best in the field, or anybody who had a bornvita which is taller sharper and stronger than anybody else but it is the kind of for promotions that has to be with certain relevance or with certain are right kind of information. So the, the information should be processed in a, in a good manner and rightly manners to others. So advertising and branding says done to increase the demand, and to differentiate the product, but to increase the demand and to differentiate the product we should use ethical means not unethical means unethical means like an intensely showing the bigger size of our product intensely showing the, the very good ingredients are intentionally showing a great change with the image layer, for example the unethical issues and advertising is puffery like showing like puffing it up like for the size of an ice cream as well as but and then advertisement, it shows us a huge cop, like for example, in the McDonald's small pack of this French fries. It is just like a countable 20 pieces but as an when it is on to the advertisement, it shows as if it is Ever lasting and then unethical issues is using children using children as an emotional tool, who are deciding which size of the car use the parents would buy which colour of the house for the painting, they should use, or which brands of the clothes they should be wearing so it is also using an emotional aspect or like using something as an innocence of a child to promote their product status very unethical in practice, another is promoting the unhealthy products, unhealthy products by saying they are healthy, like for example the people who are using a lot of chemicals to get their body in tone or shape that as something as unethical. Next is subliminal advertising subliminal Advertising is when you're trying to advertise but that is like, whenever there is a moving picture there are 32 frames in a sequence and out of one frame, you're trying to put something as a popcorn or trying to put put something as a coke that goes into your cognitive mind but that is not being adequately heard so that is also are wrong means of advertising, this was very much used by cinema halls to encourage people buy Coke and popcorns. So, again, as the last form of advertising can be the deceptive advertising deceptive advertising that cheats upon that doesn't tell us what the right like the for example the, the body shapes like in 30 days you would be all changed, or by applying the screen you would be looking 20 years younger. That cannot happen. So these are all the unethical issues there in advertising, that has to be stopped, so that the people keep on having the trust and the loyalty, with the organisations as and when the organization's patients are using unethical practices, the trust, the relationship between the organisations, and the consumer is broken and if the relationship is broken, what would happen, it will, it is gone an leads to a full shop for an organisation that the organisation is stagnant, it will decline but it won't reach with the success. So this is all with the course content, I expect that you have understood all what is meant by marketing what are the types of marketing, how the marketing is done about the four P's and elaborate about the ethical practices about like the various kinds of marketing as well like service marketing CRM, All this, that's it. Thank you. U4_T1 Hello and welcome to the next lecture of marketing management. In this lecture we will be able to understand what is environment what is marketing environment, and how it impacts the thing and how we can scan this marketing environment. So this total is talking entirely about the environment. So to begin with what is environment. Environment is a sum total of internal and external factors that have a direct or an indirect impact on to individual behavior, organizational decision making, or to a situation. So let's take an example, individualized example I wanted to go to a party, but like I was dicey like what would happen if some of the friends that I don't like some of the people that I don't like if they come over and come up with certain comments. So what was happening the internal environment was very dicey, as an I went over there can be two options, the one can be yes they will present but they will very lively second was what I doubted. They will present and they will pred with their words, what happened. So I would be taking the decision based upon the internal and external environment might be based upon their reaction from tomorrow onwards or after the party I won't talk to them, or I won't be a part of the, the, any parties ahead, or it can be based upon the internal environment of my mind, itself that I do not go to the party at all. So what exactly is an environment environment is, it is a sum total of internal factors, internal the internal is whatever it is going within the organization, within its rules, policies culture, how the people are behaving. It is a sum total of internal within the organization which can be controlled, like within an individual which can be controlled my attitude my behavior and the external factors which cannot be controlled like governmental policies, like the behavior of the other people, like the suppliers buyers or certain like calamities might be floods as they are or the pandemic is here. So, what exactly is an environment environment is the aspect, it is a sum total of all the factors within which the business is running business is running in an open system it is not working in a closed system, what is open system and closed system, open system and closed system is very simple open system as that draws information from the external and the internal factors, and then behave accordingly. Like we take our information, process it and give a feedback. So what is a closed system closed system is where the information or a direct command is there and the process is there but it is not taking any information or any situational environmental analysis from outside. So that is a closed system computer is a closed system whatever command is there that is going to happen, irrespective of like wind blowing over there are there is some crime going on, it is gonna act upon, based upon the commands given but organization humans we are working in open system so we are drawing the information from technological environmental, cultural, all the aspects and based upon these aspects, we are trying to processes work upon it and give the feedback to the people and process accordingly. So that is the most important aspect of why environmental scanning is required when a business is working in an open system, it is drawing information from the environment outside and inside the organization, we need to scan the environment very minutely so that the right decisions are taken, like my decision about going to the party or not. So, if the decision was right might be because I have heard to my internal self and I never went to the party, so I was peaceful and calm. but I went to the party and God like negative words what happens, I broke the relations with all and I broke my inner peace and I would try to make their peace go away too. So what is important over here, over here, is to analyze scan the environment. So, like, what exactly is scanning and why it is required, see when we are working in an environment that, that is, like ever changing, we need to analyze and find out what are the opportunities trade the important lessons the weaknesses that are going on, and that can be captured well, like numerous of the organization captured this pandemic and went online. Zara close the numerous showrooms, the physical stores, because it had to pay a huge amount of rent, but their online sales have gone up. So what they did, they took an information from the external environment that the people are buying the things the people want to relax and enjoy, and all those people who are like buyers and party freaks or they are like, they want the change, they would definitely buy but they cannot go to the store and online option is the best thing so they went on. Similarly the Reliance people they came up with like a giving off the daily aspects or the daily groceries onto an online platform, and that has increased the businesses. Similarly, we have seen, we are trying to close, or we have closed all the schools, colleges everything, but learning goes on numerous of the online learning platforms have come up. So what is environmental scanning environmental scanning is a constant and a careful analysis of internal and external environment, internal and external environment of an organization in order to detect the opportunities threats trends important lessons and weaknesses, which can impact the current and the future strategies of the organization. So what is environment environment is the surroundings, it is the it is the vacuum or it is, it is a balloon into which the organization is there, and accordingly it is working, it is external also an internal or internal also. So, identification of these variables can either use to build the strategies, either to expand the business or to minimize the impact of impact on to the growth of the business. So, for example, we have the prediction or the environmental analysis that technology is saying that because of the rains, the, the crops are gonna get destroyed so what the business houses will do they would try to come up with the alternatives, they would try to come up with like storing the more of the grains. So, what is that, that is identification identification, getting the information from the external sources, and then embedding the same. Similarly, the internal environment in an internal environment is the culture of an organization, how the people are behaving how the management is behaving, are the people satisfied. Are they working in accordance to the goals and mission and vision of an organization. So if the internal environment is very strong. It is definitely give the gonna give the positive vibes to the outer world like the Zappos. Zappos have a very positive internal culture. So culture is like, it can be the train stories how the people react react, what is the behavior, attitude of the individuals, so we need to understand that environment has to be studied to take the further action. I need to understand what is the level of learning of my employers, so that I can draw or I can make another learning or training lessons for them. So, the basic is I need to understand the current scenario. So, similarly, like for example I need to understand, understand, are my employees are like work streaks or they are workaholic, are they putting a lot of like time efforts in the business or they are not like the culture of Amazon, the culture of Amazon or Google what they do, they do not have any biometric attendance, like we have the biometric attendance for the hospitals for the doctors for the facility for the teachers for everybody there is a biometric attendance that put them into certain rules that is a culture that you need to punch in at nine, and leave at four or five or six whatever is the time schedule, but in Google, Amazon, these, these companies are not following the times past fix city, because because they have implemented or they have created a culture to hire all those people who take the responsibility head on. So when these people are taking the responsibility head on might be they're coming at 10, but they're leaving the offices at one in the evening, or one at night, and they're doing the things might be they're having a like business deal into a pool, but that is very much productive. So, again we need to understand what is a culture. So culture is dependent upon the people in an organization, if the people within, within my organization, are, are shouldering the responsibility the management is not gonna be be strict or stringent, but if they are not. So we have to take the strict rules and action so that it is a lesson learned for the future coming, and the proper functioning of the organization keeps on working. So what is environmental scanning environmental scanning is a review of the external sources to discover the factors that impact the business. That is a review of the external sources as well as internal sources also the main goal is to identify and conserve the sources outside the business. All of these sources are uncontrollable the external environment is uncontrollable from the business perspective because a business cannot control what has to be the, the rules for the import and export policy. So, it cannot control so it has to work in that environment. It is important to consider them for the decision making processes. So, how would this can be done the way there are various method one of the very prominent and the easiest method which, which has been followed. Since long is a SWOT analysis what is SWOT analysis, SWOT analysis is a simply each letter that stands out, it stands out for the strength, weakness, opportunities and threats, the strength and the opportunities are the factors within the organization and the weakness and the threats, comes from outside the organization maximum of the time. So what is strength, my culture, my policies. So what is an opportunity, how I can, how I can deal with the situation that has come out from the external environment or to the internal environment might be I have hired the best employee, and they know how to deal with the situation. So what are strengths and opportunities they are the factors within the organization that can be created to achieve the organizational goal, but what are the weaknesses and the threats. They are from outside the company that cannot be controlled the threat of a new player. The weakness can be weak marketing policies or might be we have not targeted the right kind of people on our right. Advertising style has not impacted the people. So what is that, again, that isn't something is a weakness, because our policies is the strongest we created the best, But what happened, the result is not there. So when companies are putting resources and time towards environmental scan, they want the result to be comprehensive as possible. Most scans include a look of the competition economics technology legal issue, social and demographical factors, so there are numerous of the spec that would be ideal of, like, in this current pandemic life boy was a brand that was about to die, but how it started, they came up with numerous of the new ad TV and radio advertising, and even the other shows, they came up. Clean your hands with any soap. So what was that that was something I have not heard like any advertising that comes up, they always take the our is the basis of the product our is this, but what they talked of that, they just said that you should use soap. Let it be any soap be a life boy of real life way. So another there was a beautiful hand sanitizer display, so it was during Durga Puja, they had a good standees, we had a lot of people were there so, so it was in a form of Blessings, Blessings the hand was in a form of a blessing and what they, they did, they actually remade their brand relive so life boy again into the minds and the thoughts of every individual, and they have seen a gradual increase with the sales volume. So what actually they did, they analyze the environment they analyzed that our brand is dying and the current pandemic, we just want to make the, the people rethink of a brand, and have a assurety, and like a relationship that we are the business of the product, and they did it through numerous of the campaigns. Similarly, at McDonald's and the Burger King. So what happened it was McDonald's that wanted to target the common, like in India they just wanted to target like the school going kids or the college going kids who are not working, and they have to take money from the family. So the money is comparatively lesser. So, every child or every. The this college going aspect cannot afford to buy the big tubs of this chicken wings and all those, but yes, because they are eating outside from small vendors about a small burger of 2025 30 and having an ice cream so they wanted it, they started the same schedule. They