Marketing Knowledge: New Industry Policy for IBPS and SBI Interviews

Marketing Knowledge: Industries and Industrial Policy

Definition of Industry:
Industry refers to an economic activity concerned with the processing of raw materials and manufacture of goods in factories are often classified based on their principal product Ex:- steel industry, auto-mobile industry, textile industry etc. The product of industries can be consumer goods (Goods, which finally consumed by consumers) like textiles, cosmetics etc or producer goods (Goods used by manufacturers for producing some other goods) like machinery, tools, equipment etc.

Importance of Industry's:
The industry sector of the economy is important for a country for many reason like. Rapid growth of national income is possible only through industrialisation as growth in agriculture is limited by factors including natural factors. Industries can provide better quality and more employment than the agriculture sector. Value addition in the industrial sector can earn more foreign exchange than simply exporting raw materials. The industrial sector provides goods for the development of basic infrastructure of the country like power, telecom etc, which then provides the basis for the growth of other sectors like agriculture and services. National security requires that products for defence and other strategic sectors be produced within the country itself, so as to guard against adverse eventualities like sanctions, wars etc.

The concept of "Industrial Policy" is comprehensive and it covers all those producers, principles, policies rules and regulations which control the industrial undertakings of a country and shape the pattern of industrialisation. It incorporate fiscal and monetary policies, the tariff policy, Labour policy and Government's attitude not only towards external assistance, but the public and private sectors also.


New Industrial Policy (NIP), 1991

The Government of India announced the New Industrial Policy on 24th July, 1991. The main objective of this policy is to unshackle the Indian industrial economy from administrative and legal controls. Its main aim is to raise industrial efficiency to the international level through substantial deregulation of the industrial sector of the country. An industrial policy provides guidelines for the effective co-ordination of the activities of various sectors of the economy. When India achieved independence in 1947, the national consensus was in favour of rapid industrialisation of the economy, which was seen not only as the key to economic development, but also economic sovereignty. The industrial licensing was abolished irrespective of the level of investment, except for 18 specified industries like defence, atomic energy etc. Since then, most of these industries were de-licensed and now only three industries fall under the purview of industrial licensing.

In the subsequent years, India's Industrial Policy evolved through successive Industrial Policy Resolutions and Industrial Policy Statements. Specialise priorities for industrial development were also laid down in the successive five year plans.

Marketing Knowledge: Branding and Packaging for IBPS, SBI and Other Bank Tests

Marketing Topics: Branding and Packaging

Branding:

Branding is the management process by which a product is branded. It is a general term covering various activities like giving a brand name to a product, designing a brand mark and enforcing it. Brand is a perceptual entity rooted in reality which ultimately resides in the minds of consumers. Branding is all about creating difference between products.

It creates mental structure that help consumers to organise their knowledge about products and services in a way that clarifies their decision making which also provides value to the firm. Marketers can apply branding virtually anywhere a consumer has a choice. It is possible to brand a physical good (Maggi noodles, Lux soap) a service, (ICICI's banking service) a stores like Bigbazar, West side an organisation (UNICEF) or an Idea (Family Planing). Brand often relate to attributes or benefits of the product itself.


Functions of Branding

• Branding helps in product identification and gives distinctiveness to a product.
• It indirectly, it denotes the quality or standard of a product.
• It eliminates imitation of products.
• Branding helps in legal right on the product.
• It helps in advertising and packaging activities.
• It is also helps to create and sustain brand loyalty to particular products.
• Branding helps in price differentiation of products.

Advantages of Branding:

The advantages of using brand names could be easily recognised for each group of participants in the marketing via manufacturers, consumers, distributors as follows.

1) To the Manufacturer: It identifies the product and distinguishes it from other competing products. Thus, it protects the interests of the manufacturers. It saves advertising cost if the brand name is popular. If properly promoted, brand name creates confidence and goodwill for the products.

2) To the Consumers: It provides an easy way for purchase by easy identification of a product. The branding name indirectly assures certain quality by identifying the manufacturer with the product.

3) To the Distributors: Widely popular brands ease the selling process and lead to large sales. It helps in advertising and sales promotion programmes. The distributor can easily find out quick moving products. Branding reduces price flexibility. Thus, in turn, reduces the risk in business. Special selling efforts need not be undertaken. This reduces the cost of distribution and thus, the final price.

Packaging

Packaging is the technology of enclosing or protecting products for distribution, storage, sale and use. It means putting the products in suitable containers or packets such as tin, plastic jar or card board box etc. Packaging should be such that product is protected and can be easily handled. It should be attractive and eye-catching and as far as a eco-friendly.

Functions of Packaging: First, packaging must protect the product it also has a promotional role which has become more important. It helps to identify the contents, the brand and the maker. To facilitate transporting, storing and warehouse handling. It helps to encourage repurchase. Packaging helps to assemble and arrange the contents in the desired form.

Marketing Knowledge: Marketing Distribution Channel and Marketing Middlemen for Competitive Exams

Marketing Distribution Channel and Marketing Middlemen

Most producers do not sell their goods directly to the final users, between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel. A channel of distribution is the path a product takes from the producer or manufacturer to the final user. So, marketing channels are a set of interdependent organisations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.

Importance of Distribution Channel:

• They act as communication agent which often guide the consumers in right direction to fulfil their wants.
• A distribution channel is important for understanding the logistics of the business.
• It helps in managing, planning, producing, transporting and storage of products.
• They help to reduce the storage cost.

Types of Marketing Middlemen

Middlemen are broadly classified into two groups

• 1) Merchant Middlemen
• 2) Agent Middlemen

1) Merchant Middlemen: Merchant middlemen normally take title to, and therefore own, the product they handle. The buy and sell for their own gain and derive their income from the margins arising from the sales. i.e., difference between buying price and selling price.There are two categories of merchant middlemen and they are:

i) Wholesalers: They deal with goods in bulk and reap the benefit of economies of sales. They provide goods in relatively small quantities to retailers and provide them with facility of credit purchase. Wholesalers may be defined as the middlemen who operates between the producers (from whom they purchase goods) and the retailers (to whom they sell goods).

ii) Retailers: Retailers are middlemen who procure goods from the wholesalers and sell the product to the end-users or the consumers. They cater to the demand of the customers by providing a variety of products of different companies at one place. They also offer pre and after sales services and communicate to consumers the feature, discount retailer, vending machine and super market are types of retailer.


2) Agent Middlemen: All Agent Middlemen of marketing don't own what they handle i.e., not take title to the goods. They derive their income from the fees they are paid by their client or commissions given. There are three categories of Agent Middlemen they are:

i) Broker: He brings the buyers and sellers together and negotiate between them. He generally specialises in a narrow range of products and posses in-depth knowledge of market condition in his area of specialisation. A broker does not receive payment until the product is sold and has to ensure the best deal for the customer.

ii) Commission Agent: They procure goods on consignment and transport them to bigger markets to sell them for the best price in the market. They deduct the commission and the transportation costs and pay the rest of the money earned to the producer. They generally deal with agricultural products, sea foods, etc.

iii) Auctioneer: An auctioneer is an agent who sells goods by auction i.e., to the highest bidder in public competition. He has no authority to hold the goods sold and can deliver the goods only on receipt of price. He is the agent of the vendor.

Marketing Knowledge: Importance of Product Life Cycle for IBPS, SBI and Other Competitive Exams

Importance of Product Life Cycle & Product Policy Decision

Importance of a Product life cycle 

Following are the importance of product life cycle;

1) Life of a Product is Limited:

According to this concept, the product will die out over a period of time irrespective of the fact that the product had made tremendous progress during the post. Knowing this fact, management always try to improve its existing product or to develop a new product.

2) Estimation of Profits:

The quantum and rate of profits increase or decrease with the quantum of turn over. In introductory stage, profits are negligible, then they go up and after sometime they begin to fall and gradually they move to nil. Thus, the management can well predict the firm's profits in different stages of the life cycle of the product.

3) Marketing Programme:

Different policies, procedures and strategies are followed in the different stages of the life cycle of a product. So, management can prepare the marketing programmes accordingly and may get success.

Importance of Product Life Cycle also includes

• Help in promotional decision.
• Help in product control.
• Facilitates sales forecasting.

Product Related Policy Decision

Decisions taken by the producers on the given three aspects;

1) Product Item: A detailed description of a product in a list of a producer or seller is called product item.

2) Product Line: It means group of product, which are closely related to each other for Ex:- Lakme, Maybline, etc. In product line decision, the marketer has to make decision regarding the product line length which means the number of product in the product line.

3) Product Mix: It means the complete set of product line produced and bold by the company. Ex:- Nestle produces mill powder, maggie, ghee, etc.

Marketing Knowledge: Product Life Cycle (PLC) and Stages in Product Life Cycle

Production Life Cycle (PLC) and Stages in Product Life Cycle

Product Life Cycle (PLC):

The Product Life Cycle (PLC) is the life span of the product from the stage of product development to testing, branding, promotion and marketing. For some products this also involves the stage of decline and perhaps regeneration.

Characteristics of Product Life Cycle:

The life cycle of each product begins with its introduction in the market and passes through the phases of market development, maturity, becomes leader and ultimately declines. The product production speed of movement through various stages of life cycle, cannot be same for all kind of products. With the decrease in profits in the maturity stage, changes such as research and development, production pattern, marketing and financial control activities, etc become essential.

Stages in Product Life Cycle:

Stage 1:
Market Introduction: In this stage, some innovative products may be launched. Innovation means product designing, new ideas and creativity. This stage is most expensive for companies. The cost for products like research, development, testing and marketing is high.

Stage 2:
Market Growth: This stage is typically characterised by a strong growth in sales and profits. As the company can start to benefit from economies of scale in production, the overall profit margins will increase. Price stabilises or falls slightly, depending on how fast demand increases.

Stage 3:
Market Maturity: In this stage sales will continue grow early of maturity, but at a lower rate than expected growth phase. At this time sales reaches the peak. This period may stands for extended of time. This maturity phase of the life cycle is longest stage for most products.

Stage 4:
Market Saturation:  In this stage, the amount of product provided in a market has been maximised in the current state of market place and selling price has been constant. At the point of saturation, further growth can only be achieved through product improvements, market share gains or a rise in overall consumer demand.

Stage 5:
Market Decline: This is the last stage of Product Life Cycle (PLC). At this stage, there is  a down turn in the market. Profit margins touch a low level, competition becomes severe and customers start using newer and better products.

Marketing Knowledge: Marketing Planning and Its Importance in Marketing for IBPS, SBI and Other Competitive Exams

Marketing Planning and Its Importance in Marketing 

Classification of Marketing Planning

Marketing planning activities can be divided into three parts;

1) Long-Term Planning:
It means planning for a period of more than one year. It involves the development of basic objectives and the determination of fundamental policies to guide future efforts of an enterprise. Generally, this type of planning relates to the planning of a new product, product diversification, expansion of product line. etc.,

2) Short-Term Planning:
It is the planning of marketing activities for a period of less than one year. This type of planning is the liability of medium level of management. The problems to be dealt by this planning are adjustment in the prices of products to face the competition, adjustment in the quantity of production to meet the changes in demand.

3) Adhoc Planning:
It is the planning of activities to be performed in the future. Adhoc planning is not a regular and systematic form of planning and it is the solution to the problems arising in the actual performance of marketing activities. Target consumers remains at the centre of any marketing process.


Importance of Marketing Planning 

It prepares planned strategies and programmes for the future so that future uncertainties may be minimised and the objectives of the enterprise may successfully be achieved. The objectives of the enterprise are clarified by marketing planning and clearly explained to all the concerned employees of the enterprise. It helps in co-ordination all the managerial activities of the enterprise. It increases the organisational efficiency by making decision-making process quick and by defining individual duties, right and liabilities of all the employees of the enterprise. It checks all unnecessary expenses and hence leads to economy in the operations of enterprise. It is helpful in controlling functions. It stresses upon the achievement of pre- determined objectives of the enterprise through maximum satisfaction to the consumers.

Objectives of Marketing Planning

• To formulate marketing plans on the basis of sales forecasting. 
• To minimise future uncertainties as for as possible. 
• To co-ordinate the activities not only of its own department but it helps in coordinating the activities of all the departments of the enterprise.
• It helps in controlling the activities of all the departments of the enterprise.
• It makes a difference between the problems of key nature and that of routine nature.
• It helps in checking all the wastages in the enterprise.
• It is helpful in maintaining healthy competition within enterprise.
• Helpful in increasing the efficiency of employees.

Marketing Knowledge: Marketing mix and Elements of Marketing Mix for IBPS, SBI and other Competitive Exams

Marketing Mix and Elements in Marketing Mix

Marketing Mix:

Marketing mix is an important concept in modern marketing. It is the crux of marketing process. It refers to the set of actions or tactics, that a company uses to promote its brand or product in the market. It includes almost everything that a firm uses to affect consumer's perceptions favourably towards its products or services, so that the consumer and organisational objectives can be achieved.

However, the 4 P's remain the most popular classification in terms of marketing mix. In 1990, Robert F Lauterborn proposed a 4 C's classification, which is a more consumer-oriented version of the 4 P's.

Elements of Marketing Mix:

The elements or components of marketing mix may be grouped broadly under the following four heads.

• 1) Product
• 2) Price
• 3) Place
• 4) Promotion

1) Product: 

Product refers to the goods and services offered by the organisation for sale to the consumer for a price. In other words, a product is a bundle of utilities consisting of various features and accompanying services.

Product can be broadly classified as follows:

Based on Use, the products can be classified as

i) Consumer Goods: Products that are purchased for personal consumption by the households or ultimate consumers are known as "Consumer Goods". Dresses, auto-mobiles, food, Gold or other jewellery item are all examples of consumer goods. These consumer goods are classified into 3 parts they are

• Convenience Goods
• Shopping Goods
• Speciality Goods

ii) Industrial Goods: These goods are meant for use as inputs in production of other products or provision of some service and include raw materials, machinery, components and operating supplies. These are meant for non-personal and commercial use.

2) Price: 

It is the amount charged for a product or services. In other words, price is the consideration in terms of money paid by consumers for the bundle of benefits, he derives by using the product or service. It is the exchange value of goods and services in terms of money. Price is the only element in the marketing mix of a firm that generates revenue. Rest of them generate only cost. Price and volume of sales together decide the revenue of any business. Various factors that have to be kept in mind while fixing the price are demand for a product, cost involved, consumer's ability to pay, prices charged by competitors for similar products, government restrictions, etc.

3) Place: 

Goods and services are produced to be sold to the consumers. They must be made available to the consumers at a place where they can conveniently make purchase. Place is concerned with various methods of transporting and storing goods and then making available for the customer.Getting the right product, to the right place, at the right time, involves the distributions system and the choice of distribution method depends on a variety of circumstances. Making the products available, it involves a chain of individuals and institutions like distributors, wholesalers and retailers who constitute company's distribution network.

4) Promotion: 

Promotion is an important thing in marketing mix as it refers to a process of advertising, influencing a consumer to make select the product of the company is a big question. Promotion is done through selling, advertising, publicity and sales promotion. It is done mainly with a view to provide information to consumers about the quality, durability, availability and use's of the product.

Marketing Knowledge: You Must Know the MRTP Act for Competitive Exam Preparation

Details of MRTP Act

Now-a-days there is a tendency in the businessmen to exploit customer by giving the misleading advertisements. Sometimes impossible things are guaranteed, also the advertised things to the monopoly. To protect the consumer from this type of exploitation, central government has prepared Monopolies and Restrictive Trade Practices Act, it is abbreviated as MRTP. Consumers need to complain to MRTP Commission about such matter so that necessary action can be taken.

What can be the Complaints ?

• In case of loss due to the use of improper / restricted techniques.
• Defect in the goods purchased.
• Problems in the hired or used services.
• Price charged than the indicated price.
• In case of violation of law and a good is being sold to public which can cause their life.

Who can File a Complaint ?

• Consumer itself.
• Volunteer consumer organisation which is registered under committee register act 1860 or company act 1951 or registered under law, applied currently. 
• Central or State Government can take this matter in its cognition.

Where to File a Complaint ?

Where to file a complaint depends on the cost of service or amount demanded as compensation:

• If the amount is less than 20 Lac, then complain can be filed in district forum.
• If the amount is more than 20 Lac and less than 1 crore, then complain can be filed in State Commission.
• If the amount is more than 1 crore, then commission can be filed in national commission.

How to fill Complaint ?

• Consumer can file a complaint on plain paper.
• Details of the consumer and opposite party.
• Facts related to the complain, like when and where.
• Documents supporting the complaint.
• Signature of authorised agent.
• There is no need of lawyer for these types of complaints, a nominal court fee is charged for it.

Marketing Knowledge: Importance of Marketing Management and Marketing Concepts for Competitive Exams

Marketing Management Concepts and Importance of Marketing Management

Marketing Management Concepts:

There are four main stages of the marketing concepts which are as follows

1) Consumer Oriented Concept:

Orientation to consumer needs is the main target for the success of marketing activities. More customers know what they need. This is the main reason that while deciding the production targets in industrial business, consumer's desires present itself as a paramount.

2) Marketing Oriented Concept:

Marketing orientation has three main alternatives such as sales orientation, product orientation and production orientation which can be adopted by a company. With marketing orientation, a business revolves its strategic decisions around the wants and needs of the target market, including potential customers.

3) Consumer Satisfaction Concept:

According to this concept, the position of consumer is the foremost position in all the business activities. Business can achieve the long-term prosperity by satisfying its customers which induce the customers to repurchase.

Businessmen should keep the following points in mind

• Consumer is always correct.
• Consumer is the king of the market.
• Consumer's position is at the top.
• Consumer is a boss.

4) Consumer Welfare Concept:

It seems to be the best marketing concept. It focus on consumer needs and wants, profit and also the social welfare. This helps in improving the Branding of the company.

Importance of Marketing Management

In Indian economy, the significance of the marketing management could be described in the following ways:

( i ) Importance for Consumers: Consumer can select the product in an effective manner if he is properly aware about the concept of marketing.

( ii ) Increase in Living Standards: Organisation provides new products to the society which helps to increase their living standards through marketing. For this, different ways of better living can be discussed on the basis of advertisements and sales promotion.

( iii ) Economic Growth: Through marketing management, economic growth can be achieved because when there is less marketing and usage of the product by the consumer, there will be idle stock of manufactured goods and raw-material accumulated with the manufacturers.

( iv ) Producing Maximum Results with Minimum Efforts: In our country, the resources are very limited. With this limited resources we work hard to achieve maximum results. It only possible only when we know the significance of marketing.

Marketing Knowledge: Importance of Marketing and Characteristics of Marketing for Competitive Exams

Importance of Marketing

( i ) Importance of Marketing to the Consumers:

• Provides different information about the product and services. 
• Helps to know the different benefits and techniques of products.
• Provides satisfaction by providing different products to meet their demand and tastes when they need.
• Facilitates customers to select the best one according to their demand and capability.

(  ii ) Importance of Marketing to the Firms:

• Easily distribute the products.
• Suggest to manage the transportation and wire-housing systems which help the firm to delivery the product.
• Provides valuable information to make effective plan for future and right decision.
• Suggest to reduce unnecessary costs and utilise the revenue in proper way.
• Accumulates the opinion and ideas of different customers and supplies to the management.

( iii ) Importance of Marketing to the Society:

• An important source for the creation of employment opportunities.
• Helps in developing the living standard.
• Helps to utilise the different resources such as natural, financial, physical and human resources.

Characteristics of Marketing Environment:

Marketing environment refers to the factors and forces that affects a firm's ability to build and maintain successful relationship with customers. Some of the factors are controllable, while some others are uncontrollable. It is the responsibility of the marketing manager to change the company's policies along with the changing environment.

 

• Marketing environment plays a vital role while taking decision related to marketing.
• Its limit is decided on the basis of geographical factors.
• There are some non-controllable variable included in marketing environment which effect the potentiality of a company and provide new direction to the market.
• New opportunities and risks always rise in the marketing environment which reinforces marketing experiments and research.
• Consumers are divided in homogeneous sections for marketing of a product on the basis of marketing environment.