Functions of Marketing Research

The various functions of marketing research are as follows:

1. Description:

Marketing research give full description about the consumers. It describes their age, sex, education, income, etc. It also gives a description about the competitors and the market situation. This description is used to take marketing decisions and solve marketing problems.

2. Evaluation:

Marketing research helps to evaluate the company's performance, It helps to evaluate the company's production and marketing policies. It helps to evaluate to the quality of the product, price, packaging. advertising, sales, promotions techniques, etc. If the consumer reactions are bad, then the company must change its policies. It also compares the company's policies with the competitors policies.

3. Explanation:

Marketing research gives explanations (answers) for all the marketing problems, For example, it answers in detail, why are the sales falling, why are the retailers giving negative reaction, etc. It gives all the causes or reasons for the problem. It also tells how to solve the problem.

4. Prediction:

Marketing research also gives predictions. Predictions mean to forecast or guess about the future marketing environment, future consumer behavior, etc. All the prediction may not be correct. However, these predictions help the company to make future plans and policies. It helps to make advantage of future opportunities. It also helps to avoid future risks.

5. Aid in Decision Making:

Marketing research helps the marketing manager to 

Online Marketing

Online Marketing:

Online marketing is the marketing of products or services over the Internet. It ties together creative and technical aspects of the internet, including design, development, advertising and sales. Online marketing is the process of promoting an organization using online media, typically with the goals of increasing sales and boosting profits. Internet marketing does not simply mean building or promoting a website nor does requires a comprehensive stategy that synergizes a given company's business model and sales goals with their website function & appearance, focusing on their target market through proper choice of advertising type, media, and design.

Online Marketing Channels:

Online Marketing refers to marketing of your product or service over the internet. Online Marketing allows you to promote your products and services online at a fraction of the cost of traditional advertising.

Online Marketing involves different business models. One is direct selling to buyer, another by generating involves different business models. One is direct selling to buyer, another by generating leads to websites and even a model called affiliate marketing in which product is developed by one person and sold by another with an arrangement for profit sharing.

Objectives of Online Marketing:

Online marketing can serve several purposes:

1. Actual Sales of Products:
Products are ordered , sale and purchase online through internet. Many sites like amazon.com, eBay involve in actual sales of products.

2. Promotion/Advertising:
Customers can be quite effectively targeted in many situations because of the context that they, themselves, have sought out. 

3. Customer Service:
The sites may contain information for those who no longer have their manuals handy and, for electronic products provide updated drivers and software patches.

4. Market Research: 
Data can be collected relatively inexpensively on the Net.
However, the response rates are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to read instructions. This is one of the reasons why the quality of data collected online is often suspected.

Functions of Marketing Channels

Functions of Marketing Channels:

There are following major distribution or marketing channel functions as given below

1. Information Provider:
Middlemen have a role in providing information about the market to the manufacturer. Developments like changes in customer demography, psychography, media habits and the entry of a new brand and changes in customer preferences are some of the information that all manufacturers want. Since these middlemen are present in the market place and close to the customer they can provide this information at on additional cost.

2. Matching Buyers and Sellers:
The most crucial activity of the marketing channel members is to match the needs of buyers and sellers. Normally, most sellers do not know where they can reach potential sellers. From this perpective, the role of the marketing channel to match the buyers' and sellers' needs becomes very vital. For example, a painter of modern art may not know where he can reach his potential customers, but an art dealer would surely know.

3. Time and Place Utility:
Channels of distribution help the consumers to buy goods at the time and place they need them. They create time and place utilities to the buyer. Thereby reducing the spatial discrepancy in the buying space.

4. Assortment of Products:
This activity leads to the customer convenience because channels of distribution help the consumers to buy goods in convenient units, lots,packs and assorted varieties of the products. in order to use the economies of scale and to minimise  the overall production cost, goods and services are product in bulk. But these goods and services consumed in smaller quantity so there is essentially the need of breaking the bulk. This job is carried out by channel intermediaries. 

5. Price Stability:
Maintaining Price stability in the market is another function a middlemen performs. Man\a time the middlemen absorb an increase in the price of the products and continue to charge the customer the same old price. This is because of the intramiddlemen competition. The middleman also maintains price stability by keeping his overheads low.

6. Promotion:
Promoting the products in his territory is another function that middleman perform. Many of them design their own sales incentive programmes, aimed at building customers traffic at the other outlets. Channels of distribution perform promotional activities like advertising, Personal selling and sales promotion etc. so as to assist the producer in achieving greater market share in sales and market coverage of the product.

7. Financing:
Middlemen finance manufacturers operation by providing the necessary working capital in the form of advance payments for goods and services. The Payment is in advance even though the manufacturer may extend credit, because it has to be made even before the products are bought, consumed and paid for by the  ultimate consumer.

8. Title:
Most middlemen take the title to the goods, services and trade in their own name. This also enables middlemen to be in physical possession of the goods, which in turn enables them to meet customer demand at very moment it arises.

9. Help in Production Function:
The producer can concentrate on the production function leaving the marketing problem to middlemen who specialise  in the profession. Their services can best utilised for selling the product.The finance, required for Organising marketing can profitably be used in production where the rate of return would be greater. 

10. Matching Demand and Supply:
The chief function of intermediaries is to assemble the goods from many producers in such a manner that a customer can affect purchases with ease! The goal of marketing is the matching of segments of supply and demand.

11. Pricing:
In pricing a product, the producer should invite the suggestions from the middlemen who are very close to the ultimate users and know what they can pay for the product.Pricing may be different for different markets or products depending upon the channel of distribution.

12. Standardising Transactions:
Standardising transactions is another function of marketing channels. Taking the example of the milk delivery system, the distribution is standardised throughout the marketing channel so that consumers do not need to negotiate with the sellers an any aspect, whether it is price,quantity, method of payment or location of the product. By standardising transactions, marketing channels automate most of the stages in the flow of products from the manufacturer to the customers.

13. Provide Salesmanship:
Marketing channels also provide salesmanship. In particular, they help in intriducting and establishing new products in the market. In many cases, buyers go by the recommendations of the dealers. The dealers establish the products in the market through their persuasive selling and person to-person communication. They also provide pre-sale and after sale service to the buyers.

14. Assist in Merchandising:
Merchandising is another important function performed by marketing channels. Through merchandising, they help reinforce the awareness about the product among customers. When a customer visits  a retail shop, his attention can be allured by an attractive display of the product/brand increasing his awareness and interest.Merchandising especially display, complements the selling efforts of the company and acts as a silent salesman at the retail outlet.

15. Provide Market Intelligence:
Channels provide market intelligence and feedback to the principal. In the nature of things, channels are in a good position to perform this task, since they are in constant and direct contact with the customers. They feel the pulse pf the market all the time.

Nature /Characteristics of Channel of Distribution

Nature/Characteristics of Channel of Distribution:

1. Route or pathway:
Channel of distribution is a route or pathway through which goods and services flow from the manufactures to consumers.

2. Flow:
The flow of goods and services is smooth and sequential and usually unidirectional.

3. Composition:
It is composed of intermediaries, such as, wholesalers, retailer, agents, distributors etc.,also called middlemen who participate in the flow voluntarily.

4. Functions:
The intermediaries perform such functions which facilitate transfer of ownership, title and possession of goods and services form manufacturers to consumers.

5.Remuneration :
The intermediaries are paid in the form of commission for the 
services rendered by them. The same is compensated by the manufacturer in the form of commission allowed by the manufacturer or added in the price of the goods sold.

6.Time Unity :
As they bring goods to the consumers when needed.

7. Convenience Value:
As they bring goods to the consumers in convenient shape, unit, size, style and package.

8. Possession Value:
As they make it possible for the consumers to obtain goods with ownership title.

9.Marketing Tools:
As they serve as vehicles for viewing the marketing organisation in its external aspects and for bridging the physical and non-physical gaps which exist in moving goods from the producers to the consumers.

10. Supply Demand Linkage:
As they bridge the gap between the producers and consumers by resolving spatial (geographical distance) and temporal (relating to time)discrpancies in supply and demand.

Marketing Channel

Manufacturers normally use intermediaries for taking their products to the users. The inter-mediaries bear a variety of names. Chart 28.3 presents a list of the commonly used names.

All such intermediaries constitute the marketing channel. The manufacturer's branch of-fices, depots, warehouses and showroom too form part of the marketing channel. Where institutional channels like chain stores, super markets, etc., are used by the firm, they too form part of the marketing channel of the firm.

Channels play a pivotal role in marketing, they perform a number of vital distribution functions. Their importance emanates from the functions performed by them.

Firms rely on the marketing channels for generating customer satisfaction and for achieving differentiation over competitors. Channels are thus a vital source of competitive advantage for the firm.

Meaning 

A channel of distribution is a group of individuals and organisations that direct the flow of products from producers to customers. The main function of this element is to find out appropriate ways through which goods are made available to the markets.

Definitions:

According to American Marketing Association,"A channel of distribution or marketing channel is the structure of intra company organization units and extra company agents and dealers, wholesalers and retailers through which a commodity, product or services is marketed.

According to Philip Kotler, "Every producer seeks to link together the set of marketing intermediaries that best fulfil the firm's objectives. This set of marketing intermediaries is called the marketing channel (also trade channel or channel of distribution)".

Direct Marketing and Features

Meaning of Direct Marketing:

Direct marketing is the process by which a firm approaches its customers on one to one basis and markets its products directly to them . In conventional marketing , a firm approaches the customers on a mass basis and sells to them indirectly.

It communicates one-on-one with existing festival or event-goers via mail , the telephone or the internet. It relies on organisers developing a list of people who previously attended the event and obtaining knowledge about their demographic profile and preferences. Incentives for consumers to provide information may include entry in a competition and the receipt of next year's event programme. Organisers can purchase lists of potential event consumers form direct marketing agencies.

Definition:

According to Direct Marketing Association of USA,"Direct marketing is an interactive system of marketing which uses one or more advertising media to affect a measurable response and transaction at any location".

Features of Direct Marketing:

Successful direct marketing is based in four types of characteristics /feature. These are targeting,interaction, control and continuity, or TICC for short,as shown in figure. The figure can be looked at either as four triangles or alternatively as one triangle inside another. These features are discussed below.

1. Targeting:
It refers to the selection of the recipients of the marketer's message, whatever media they may use, be it broadcast media, print advertising, direct mail , or telemarketing of sales calls. They may be targeting our established customers, identified prospects or a much larger audience of suspects.

2. interaction:
It has been placed in the centre. It includes the stimuli marketers produce in the hope of eliciting a response from the people in the target market. Their response is also included in the interaction triangle . In all cases marketers will attempt to attribute a response to the correct stimulus.

3.Control:
It is the management of marketing system .It includes setting objectives, planning at the strategic and operational level, budgeting and assessment of results. The process is cyclical,future planning being informed by past results . The completeness of the data within the interaction triangle will be crucial to the exercise of control.

4.Continuity.
It is about retaining customers, cross-selling other produts and upgrading them. Marketers'painstaking care in recording interaction enables them to coomunicate with customers ,recognising their interest and showing appreciation of their past customs.

Major Tools in Public relation

Major Tools in Public relation :

By using proven public relations tools and activities, you can promote positive attitudes and behaviors towards your business that will help convert interested consumers into customers.

Public relation tools are very cost-effective, and often give you a greater degree of control than more broadly targeted advertising campaigns. Consider using these Public relation tools to build your business's reputation.

1. Media relations:
Media strategies focus on circulating messages through media channels to manage how your business is portrayed by the media tools might include releasing media statements and fact sheets, offering on-site media tours to encourage journalists to report positive messages about your business, and using social media to get the attention of journalists and track journalists who report in your media to:

2. Advertorials:
Advertorials are advertisements in the form of news stories or reviews in newspapers. Advertorials allow you to associate your advertising with the credibility of the newspaper.  

Many businesses employ advertising or marketing professionals to help them develop TV advertorials which are commonly used as a form of advertising and product placement.

3. Social media:
Social media lets you bypass the media and go straight to your customers. Using social networking sites such as Facebook and Twitter allows you to follow and be followed by journalists, drive web traffic, manage issues by responding quickly to criticisms or negative perceptions, and increase exposure for your business brand. Learn more about social media and your business.

4. Brochures and catalogues:
Take home or mail out brochures or catalogues can help keep your customers thinking about your business and its products and services.

Properly designed brochures and catalogues give customers confidence in you and your brand , and help drive customers to your website or store. Information contained in business brochures and catalogues can be effectively reworked for your website, helping you do business online.

5. Business events:
Events are opportunities for business people to gain exposure for their businesses, promote new products or services and make sure accurate information reaches targeted customers.
from a sales point of view, events are a chance to counter customer doubts and build customer confidence. They can also help you research your market and competitors, and build your mailing list. Make sure you go to the event prepared with marketing materials to disseminate and a way to collect information and customer details.

6. Speaking engagements:
Speaking at events where customers are likely to attend helps position you as a leader or innovator in your field. As a business owner or leader, building your reputation as an expert also builds the reputation of your business and draws new customers.

7. Sponsorships or partnerships:
Partnerships and sponsorships  are good for business. Supporting a not-for profit cause can help build feelings of goodwill and loyalty towards your business. Community partnerships may involve an exchange of funds or in-kind benefits to grow a local community organisation in return for benefits that promote your business reputation . Partnerships can help consumers identify your brand with good business practice and good ethics.

8. Employee relations:
Your staff are ambassadors for your business and brand. Many larger businesses conduct employee relations-building their business culture and team relationships by sharing information, promoting involvement and instilling a sense of pride in business achievement. This can improve teamwork, staff retention and productivity, and ensure that staff are representing your business consistently and with the right messages.

9. Community relations;
Building good relationship with members of the community where you do business helps build customer loyalty.Find out where the customers in your community live by collecting postcodes at point of sale.

Role and Importance of Public Relation

Role and Importance of public Rrelation:

Assisting in the launch of new products:
Assisting in repositioning  a market products
Building interest in product category
Influencing specific target groups
Building corporate image.

Media Selection

Media Selection:

The main concern of any media planner is how best to carry the Advertising message to the intended Audience? Which media or combination of media will serve his purpose in the most effective manner?

Before assessing and evaluating the various media Available, the media planner has t study in detail the firm's target Audience. It is essential for him to understanding characteristics of the Target customers. Their buying habits, their lifestyle and aspirations, their Reading habits, their pastimes etc. The media planner will also seek information regarding the age, Income, occupation, education, religion, social class etc, of the firm's target Audience.

Selection of Advertising Media for a Company (14 Factors)

1. Objectives if firm:
Company's general and advertising objectives are the prime considerations in media selection. Those media capable to meet company's expectations are likely to be selected. Advertising objectives may be to inform , remind, convince, create prestige, or to increase sales and profits. Different media have verying capacity to meet these objectives.

2. Costs Media and Company's financial Position:

 Media selection decision is highly influenced by media costs and firm's ability to pay.
Company has to pay for buying space. or time and preparing advertising copy fit for the media to be selected . TV, radio, films are costly in terms of buying time and preparing advertising copy. Print media are relatively cheaper in both space and preparation of advertising message. 

3. Reach or Number of People Exposed to the Message:

It is an important criterion to choose among ad media.Reach means the number of different people exposed to a particular medium at least once during a specified time period. Mass media are capable to reach millions of people by just one exposure. Television has more exposure capacity compared to outdoor media in a particular time.

4. company's advertising Policy and Approach :
company's advertising policy and approach determine which of the media should be selected. For example, if company's policy is not to spend more money for advertisement and to offer the product at a low price, it may go for cheaper media.

5. Type of Buyers:
People to be influenced should be taken into account while selecting the media. Buyers can be classified into various classes as discussed in market segmentation.Each medium has its special viewers, readers, or audience.For the firm, it is important to know whether the target groups can be exposed by the particular medium.

6. Condition under which Customers are Influenced :
Readers mood and interest determine receptivity of message. Television is the best fit medium to associate advertising message when people are watching or enjoying related programmes. For example, advertising TVS Cup One-day Series.

7. Circulation/Coverage:
The area covered by the medium is an important criterion. Some media are capable to cover the globe while some can cover only the limited locality .

8. Repetition or Frequency:
Repetition or frequency implies the number of times within specific time period an average person is exposed to the message for relatively long time. Magazines or periodicals publish monthly or quarterly; mostly they publish advertisements only in a particular edition.

9.Credibility and Image of Media:
In case of newspapers and magazines, the factor is critical. Naturally, advertising message appears in the reputed newspapers or magazines carry heavy impression and effect than substandard media. people don't trust the prestige of advertiser. Firms opt for credible or prestigious media to carry the advertising message.

10. Past Experience:
Company's own past experience may be instrumental to decide on advertising media, For example , if company has satisfactory experience of using a particular medium, there are more chances to use the same medium and vice versa.

11. Experience of other Companies:
Experience of other companies is one of the important considerations in media selection. Company may try to know what other companies say about applicability and usefulness of varius media. Various media. Views of other companies must be followed with care and caution.

12. Expert Opinion:
Marketing experts or consultants who work on professional basis can be consulted to suggest an appropriate medium to carry the message. These experts, on the basis of analysis of market situations in relation to products to be advertised, can recommend the suitable media.

13.Type of Advretising Message:
Each advertising message needs specific advertising vehicle. If a message is simple, print media are sufficient. If a message is complicated, and the company wants to demonstrate and explain, audiovisual media suit the needs.

14. Others: 
Apart from above mentioned factors, there are certain factors that affect media selection decision.
They are listed as under
i) Effectiveness of media
ii) Availability of media
iii) Government Rules and Regulations
vi) Time and Place 
v) Type of Products etc,.

MEDIA AND TYPES OF MEDIAS

Media:
Media as the very meaning implies is nothing but a medium or a channel for carrying the intended Advertising message to the target audience . It is essential to under stand the distraction between the commonly used terms-Media and Media vehicle.

Types of Media:

There are several media vechicles. The major media commonly used for Advertising.

1. Print Media:
○ News Paper
○ Magazines
○ Trade Journals
○ Direct magic

2. Audio/visual/Audio-visual /Electronic media:
○ Radio
○ Television
○ Internet
○ Cinema
○ Cassettes -audio and video
○ Out door. These include
○ Hoardings
○ Postens
○ Transist Advertising
○ Fairs and exhibitions
○ Dance, drama and puppet shows
○ loud speaker announcement
○ Balloons and sky writtings.

ADVANTAGES OF ADVERTISING

Advantages of Advertising;

Advertising guarantees quick sales. The middlemen dealing with the advertised products are benefited with the advertising in the following manner.

1. Creates easy sales:
Advertisement informs consumers about the quality of the product.Hence, they know about the product.Sale of the product is easy for the wholesalers and retailers.

2. Increase in turnover:
Advertisement helps in easy and quick sales. This increases the rate of turnover and reducing the level of stock. It also reduces maintenance cost and obslescence  risk.

3. Attracts more customers:
Advertising gives detailed information about the product and the availability of the product in a particular shop. As such, it attracts more customers in that particular shop.

4. Permanent source of income:
Advertisement stabilises demand. Customers are thereby available through out the year which ensures permanent income to the middlemen.

5. Increases the prestige of the store:
Customers know about the store through advertising, The goodwill or reputation earned by the manufacturer is also shared by the selling shops. Thus, the prestige of the firm increases.

6. Reduces the burden of middlemen:
Advertising is generally under-taken by manufacturer. Therefore, middlemen's work is reduced. His job is supplemented by advertisement, which makes it easy for him to sell.

7. Stimulates sellers:
Advertisement saves the time and effort of the middlemen. He can contact many customers in a short period. This creates enthusiasm and confidence in him. 

8. Publicity:
In advertisement, product publicity and wholesale or retail shop publicity are done simultaneously. Thus, the retailers are also known to the public and there by increase their sales too.

ADVERTISING MEANING AND DEFINITIONS,

Advertising 

Introduction to Advertising:

The term Advertising origionates from the Latin 'Advero' Which means to turn Round. Advertising thus denotes the means employed to attention to any object or purpose. In marketing context, Advertising has been defined " as Any paid form of Non-personal presentation and promotional of ideals, good or services by an identified sponsor.

Meaning of Advertising:

Advertising is a paid form of non-personal communication of ideas, products or services or people by a sponsorer  or organisation. In is a vital tool of marketing the products, services and ideas. Advertising is an important tool of promotion. Advertising has acquired great importance in the modern India characterised by tough competition in the market, fast changes in technology, fashion and taste of the consumers.

Definitions of Advertising:

Although advertising has been variously defined by different authors but the basic theme has more or less remained the same. Some of the widely accepted definitions of advertising are as follows;

According to Philip Kotler "Advertising is non-personal form of communication conducted through paid media under clear sponsorship".

According to Willian J. Stanton " Advertising consists of all the activities  involved in presenting to a group a non-personal, oral or visual, openly sponsored message regarding a product, service or idea".

objectives of promotion mix

Objectives of Promotion Mix:

The promotion objectives centers around the following six stages to attract the target audience. They are,

1. Awareness:
The seller's task is to create awareness in the minds of the buyers towards the brand or products.

2. Knowledge:
Knowledge is more than awareness where a buyer gathers and learns about the usage of products and its associated features. With the help of knowledge , customers get an idea about the priduct and its usefulness.

3. Liking :
Liking refers to the market's perception towards the product. Various techniques are used to differentiate one brand from another. The common technique for the brand is to associate with attractive logo, symbol or person.

4. preference:
Preference refers to giving more preference to the products of a particular brand over the products of other brands. Customers give preference to the brand if they are satisfied with that brand or that brand has special effects in the minds of customers irrespective of other brands offering the same benefits.

5. Conviction:
Conviction factor helps the customers to take final decision of purchasing the product, which fulfill the buyers needs.

ex: cameras with bluetooth, image clarity,dual sim card facility etc...

6. Purchase:
A customer may delay the purchase of a product even though he wants to by due to the hinderance caused by the situational factors such as lack of sufficient money at the time of shopping, customer's resistance to change. Promotional efforts acts as a tool in maintaining loyalty among customers who purchase the product in specific stores frequently.

Objectives,Role/Importance of Promotion

Objectives/Role/Importance of promotion:

1. To Communicate:
Communicate is the basis of all marketing efforts. It is the main objective of Promotion to inform the products. Information tools are advertising, sales promotion, personal selling and other modes which communicate properly to the consumers about the product/services.

2. To Convince:
It is not enough merely to communicate ideas to be communicated must be convincing so that necessary action(purchase) may follow. In other words, dissemination of information must produce marketing results. For this purpose, sellers should differentiate their own products with those of the competitors by creating brand loyalty. 

3. To Motivate:
The next objective of promotion is to motivate the consumers to purchase the product. For this purpose customers should be reminded time and again to purchase the product and services of the products with a comparative analysis of competitive products. Demand should be stimulated by creating awareness and interest among customers.

4. To Highlight the Utility of Product:
Promotional activities add value to a product by emphasising its special features. For example, in the advertisement of surf washing powder its whitening power and safety of clothes are emphasised. Such value fetches a higher price and provides more utility to the consumer. The image of the product continues to be high.

5. To Differentiate the Product:
A businessman carries on promotional activities in order to differentiate his product from the competitive products. The objective of promotion is nor only to increase one time sale of  a product but to build the consumer loyalty for its brand so that consumers keep on buying the same brand again and again. Such brand loyalty helps a business firm in facing competition and in gaining control over the market.

6.To Stabilise Sales:
Promotional activities help to ensure steady sales by ensuring that existing customers do not purchase the competitors products and new customers are created.

7. To Counter Competition:
In the modern age of competition it is an important objective of promotional activities to fight competition by reassuring the customers about the quality and price of the product.

8. To Build Image:
Promotional activities such as public relations, advertising and sales promotion may be used to build a favourable public image of the firm.

promotion ,meaning and definition.

Promotion:

Introduction:
Communication is necessary in exchange activities. The products cannot be sold to the customers unless they know them. People must know that the right products are available at the right place and at the right price. This is the job of promotion in marketing. Promotion is a spark plug in  marketing mix. It can be defined as "the to facilitate the sale of goods or services".

Meaning of Promotion:

Promotion is one of the four variables is the marketing mix. Basically it is a communication between producer and the consumers. After developing the product and pricing the product the next function of marketing manager is to formulate a suitable strategy for promoting the product. Promotion strategy is the fourth key element  in overall marketing strategy. Promotion strategy focuses upon making the product flow through the marketing channels to the target market. Promotion activities in marketing are basically a communication exercise.Promotion intends to inform , persuade and influence people through communication.

Definition of Promotion:

According to Douglas W. Mellot
"Promotion encompasses all the tools in the marketing mix whose major role is persuasive communications".

According to Philip Kotler " Promotion encompasses all the tools in the marketing mix whose major role is persuasive communications".

PRICING METHODS

PRICING METHODS;

Fundamentals which may affect price decisions are consumer situation and cost considerations. It is quite unfortunate that many firms have no clear pricing policies. The following are the basic policies recognised  for pricing as given below:

Methods of pricing
1. Cost Based:

Cost of production of a product is the most important variable and most important determinant of its price. There may be many types of costs such as -fixed cost, variable cost, total cost, average cost, and marginal cost etc. Methods of determining price on the basis of cost are as under

• Mar-up/cost plus pricing
• Full cost/ Absorption pricing
• Marginal/ Incremental pricing
• Break-even Pricing method
• Rate of return/ Target pricing.


2. Customer Demand Based Pricing:

The basic feature of all these demand- based method is that profits can be expected independent to the costs involved, but are dependent on the demand. This pricing method differs from Csot-driven pricing, as it starts by asking at what price the market will be prepared to pay for the product and works back to the level of profit and costs, which that price will afford to the organisation.

• What the Traffic Can Bear Pricing
• Skimming Based Pricing
• Penetration Based pricing

3. Market/ Competitor Based pricing
Market- based pricing means different things in different contexts. One uses it to refer to the practice of pricing based solely on the prices being offered by the competition. It is commonly applied by small cola brand might set its price based on the price of Coca-Cola.Market-based pricing can also be an effective strategy for a low-cost supplier seeking to enter a new market. Most companies fix the prices of their products after a careful consideration of the competitors price structure. Deliberate policy may be formulated to sell its products in the competitive market. Four policy alternatives are available to the firm under this pricing method

• Parity Pricing or Going Rate Pricing
• Pricing Below Competitive Level or Discount pricing
• Pricing Above Competitive Level or Premium Pricing
• Competitive Bidding/ Sealed Bid/Tender Pricing.

4. Other Pricing Methods:
the major other pricing methods are as follows.

• Value Based Pricing: Good pricing begins with a complete understanding of the value that a product or service creates for customers. Value-based pricing uses buyer's perceptions of value, not the seller's cost, as the key to pricing.Value-based pricing means that the marketer firstly designs a product, after that marketing program and then set the price. 

• Affordability Based Pricing: The method is relevant in respect of essential commodities, which meet the basic needs of all sections of the population 

• Prestige Based Pricing: As a purchasing motivation, 'prestige' is rarely openly admitted.Many buyers do not realise that this might be their prime motivation for wanting to possess a particular item. This is associated with what we term 'psychological pricing'. Prestige pricing' suggests a demand curve that is given in figure

• Market and Demand Based Pricing:
Good pricing starts with an understanding of how customers perceptions of value affect the prices they are willing to pay. Both consumer and industrial buyers balance the price of a product or service against the benefits of owning it. Thus, before setting prices, the marketer must understand the relationship between price and demand for its product.

pricing management

pricing management:

Meaning of pricing:
Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. Price is the only element in the marketing mix that produces revenue, while all other elements represent costs. Price is also one of the most flexible element of the marketing mix. Unlike product features price can be changed quickly. At the same time, pricing and price-competition is the number one problem faced by many marketing executives.

price is a exchange value of goods and services in terms of money. Price is all around us. We pay rent for house, tuition fees for education, consultancy fees to a doctor, fare for taxi , wages to workers, salary to executive and money for goods we consume in our daily life. Thus, price has various forms. The term 'price' denotes money value of a product. It represents the amount of money for which a product can be exchanged. In other words, price represent the money which the buyer pays to the seller for a product.

Definition of Pricing:

"According to Prof. K.C. Kite," 'Pricing is a managerial task that involves establishing pricing objectives, identifying the factors governing the price, ascertaining their relevance and significance, determining the product value in monetary terms and formulation of price policies and the strategies, implementing them and controlling them for the best results'.

Pricing Objectives:

 Pricing objectives provide basis for formulating pricing policies, pricing strategy and setting actual prices. The pricing objectives should be consistent with internal organisational atmosphere and compatible with the external environment. They should aim at achieving the firm's objectives. Pricing objectives of individual firms in an industry usually differ from each other depending upon the variations in their overall organisational goals.

1. Survival:

Survival is the most fundamental objectives in most of the cases. Most organisations will tolerate short-run losses, internal upheaval, and many other difficulties if these are necessary to continue existence. When the organisation/firm faces survival crises, pricing is used to increase sale volume to levels that the organisation's expenses. In other world, fix low prices for the products. However, survival objective is a short-term objective.

2. Target return on investment:

This is a common objective of well established and reputed firms in the market to fix a certain rate return on investment. The prices of the products are so calculated as to earn that rate of return on investment.Different target returns may be fixed for different products but such return should be related to a single overall rate of target return.

3. Profit Maximisation:
Profit maximisation is the age-old  objective of pricing.The firm should aim at maximising profit on total output rather than on each product item. The monopoly situation or scarcity condition give chances for profit maximaisation. Profit maximaisation can be a long-term objective because, at the early stages of product life cycle, there is a need for building up minimum market share/sales volume which is possible with lower prices and lower margins. 

4. Price stability:
Many firms have the objective of price stabilisation. It is a long-term objective. It is found in industries that have a price leader. Generally, in oligopolistic situation, one seller acts as the peice leader and other follow him. The price leader tries to maintain stability in his pricing.

5. Market share:
Market share is really a meaningful measure of the success of a firm's marketing strategy. Market share means that portion of the industry sale, which a firm desire to achieve. The firm may adopt this as an objective either to maintain or to improve the market share. When the market has a potential for growth, market share is a better indicator of firm's progress.

6.

Advantages of packaging

Advantages of packaging:

1. protection during Transportation and Storage
2. Identification of products and quality 
3. Packaging is an Advertisement at the point of sales
4. Carrying the messages from the marketer to the consumer
5. Package serves as a silent salesman in consumer products
6. Attract the consumers
7. Packing is Reminder.
8. It increases the sales & profit.

Disadvantages of Packaging:

1. packaging and sales promotion: Product package has a vital role to play in SP .Some of sales promotion Techniques used are

a) Money-off pack: 

Packaging and Labeling

Packaging and Labeling:

Packaging:
Packaging has on most widely accepted definition. It is an art, science and technology of preparing goods for transport and sale. Packaging has two dimensions the technical which is related to packaging materials, pack design and the behavioral which is related to the art of product design which is so closely linked to consumer motivation and buying behavior. 

Packaging materials include metal, plastic, wood, paper, glass, laminates and polyester. There is wide variety of package formations. However, the master carters is which unit packages are kept are standardized to facilitate handling and transportation.

Definition:

"According to william J. Stanton," Packaging may be defined as the general group of activities in product planning which involves designing and producing and producing the container or wrapper for a product.

Labeling 

Introduction:
In sociology, the word labeling  is used more as a metaphor, than a concrete concept. The general function of labels are widely known and recognized as a method of distinction that helps people that is considered by many as a form of prejudice and discrimination.

The most common method of 'labeling 'people derives from a general way of perceiving members of a certain nationality, religion,ethnicity, gender, or some other group. When a majority of people hold a certain point of view towards a certain group, that point of view becomes a stereotype. The stereotype affects the way other people perceive the groups in question and the result is a 'label ' that is metaphorically imposed on the members of the group in question. A member of a targeted group is thus ' labelled' by the larger society, and along with it, the nuances underlying the label, be it positive or negative, that aids in the formation of social stereotypes .

Meaning:

Branding, packaging, and labeling are the secondary functions of marketing. They perform functions together as integrated parts  of product planning and development.

The function of putting identification mark of the product on its package is called 'labeling'.

In other words, to put certain mark , or paste or tag with certain instruction or description on its package is called labeling product.

If information about the product is printed on the package or pasted on it, then it is called label.

A label can be printed statement pr written in paper, or it may be unprinted piece or leather piece.

Definitions:
"a piece of paper, card, or other material attached to an object to identify it or give instructions or details concerning its ownership, use, nature, destination, etc"

a brief descriptive phrase or  term given to a person, group, school of thought, etc"

Branding

Branding

In marketing, a brand is the symbolic embodiment of all the information connected with a product or service. A brand typically includes a name, logo, and other visual elements such as images, fonts, colour schemes, or symbols.It also encompasses the set of expectations associated with a product or service which typically arise in the minds of people.Such people include employees of the brand owner, people involved with distribution, sale, or supply of the product or service, and ultimately consumers.

Definition:
 A brand is defined as " a name, term,sign , symbol or special design or some combination of these elements that is intended to identify the good or services of one seller or group sellers. A brand differentiates these products from those of competitors.
                                "American marketing Association, Chicago."

Product Life Cycle Stages and Marketing Implications

Product Life Cycle Stages and Marketing Implications:

A new product progresses through a sequence of stages from introduction to growth, maturity,and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. 

The product life cycle goes through many phases and involves  many professional disciplines and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures.

Stages of Product Life Cycle:

The different stages in a product life cycle are:

a) Market Introduction

b) Growth stage

c) Mature stage

d) Decline or Stability stage

a) Market Introduction stage:

In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:

* Product branding and quality level is established and intellectual property protection such as patents and trademarks are obtained.

* Pricing may be low penetration pricing to build market share rapidly, or high  skim pricing to recover development costs.

*Distribution is selective until consumers show acceptance of the product.

* Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

b) Growth Stage:
In the growth stage, the firm seeks to build brand preference and increase market share. 

* product: quality is maintained and additional features and support services may be added.

* Pricing: is maintained as the  firm  enjoys increasing demand with little competition. 

* Distribution: channels are added as demand increase and customers accept the product.

* Promotion: is aimed at a broader audience.

c) Maturity Stage:
At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

* product: features may be enhanced to differentiate the product from that of competitors.

* Pricing: may be lower because of the new competition.

* Distribution: becomes more intensive and incentives may be offered to encourage preference over competing products.

* Promotion: emphasizes product differentiation.

d) Decline Stage:
In the Decline Stage, the market is shrinking, reducing the overall amount of profit that can be shared amongst the remaining competitors. At sales decline, great care has to be taken to manage the product carefully.
As sales decline, the firm has several options:

* Maintain the product- possibly rejuvenating it by adding new features and finding new uses.

* Harvest the product-reduce costs and continue to offer it, possibly to a loyal niche segment.

* Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.