Page 21 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes According to Philip Kotler, "A products anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a need or want". In effect, according to this
definition products include physical products, services, persons, places, organisations and ideas.
Various product attributes such as quality, variety, design, brand, packaging, services, and
warranties, etc., can be manipulated depending on what the target market wants. This may
ultimately affect the product quality that can be kept high or low. Marketers also develop other
product aspects such as service, packaging, labelling, instruction manual, warranties, and after
sales service. Customers always look for new and improved things, which is why marketers
should improve existing products, develop new ones, and discontinue old ones that are no
longer needed or wanted by customers.

Example: Shampoo, Soap, hair oil, Cream, detergent, juices, etc. are products from HUL;
Savings account, current account, Fixed deposits, credit cards, etc. are products from banking
companies; Consulting services, India as a tourism destination, Avatar (the movie) are also products.

Promotion (Marketing Communications)

Promotion is a key element of marketing programme and is concerned with effectively and
efficiently communicating the decisions of marketing strategy, to favourably influence target
customers' perceptions to facilitate exchange between the marketer and the customer that may
satisfy the objectives of both customers and the company. In reality, everything that a company
does has the potential to communicate something to the target customers. For instance, the price
of a product has the potential to communicate to target customers a certain image of the product.

Example: A low-priced designer dress is unlikely to attract high-profit, well-heeled
target customers, while less affluent buyers may find the designs too avant garde for comfort.
The major elements of promotion mix include advertising, personal selling, sales promotion,
direct marketing, and publicity. A company's promotion efforts are the only controllable means
to create awareness among publics about itself, the products and services it offers, their features,
and influence their attitudes favourably. It is critically important for marketing managers to
create a strong marketing mix, because any weak element not complementing others can adversely
affect the chances of a product's success in the market-place. All the marketing mix elements
should complement others to communicate effectively with target market. The best products
and high class promotional efforts would not sell it if they products are not available at
distribution outlets.

Distribution (Customer Convenience)

Decisions with respect to distribution channel focus on making the product available in adequate
quantities at places where customers are normally expected to shop for them to satisfy their
needs. The aim of the management is also to keep the physical distribution costs (that would
include inventory, transportation, and storage) as low as possible. Depending on the nature of
the product, marketing management decides to put into place an exclusive, selective, or intensive
network of distribution, while selecting the appropriate dealers or wholesalers. The right choice
of these factors can give a company some competitive advantage.

Example: A low-priced product consumed regularly on an ongoing basis should be
available at as many outlets as possible (intensive distribution) otherwise consumers would
buy any other substitutes that are more conveniently available. On the other hand, for purchasing
products such as CTV, washing machine, computer, or other similar durable items, consumers

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