Notes - I

Hello Readers,
As we all know, SBI Associates PO exam will held in the month of November 2014 and Marketing is
asked in the exam. Starting today, we will try to provide Notes on Marketing everyday, which will help
you in the exam. Hope it helps!!
What is the market?
Any structure which may be a place or may not be can be defined as the market that allows buyers
and sellers to exchange any type of goods, services and information. It can also be called as an
arrangement constructed by buyers and sellers. It facilitates trade and enables the distribution of
resources in a society.
Thus a market:
1. It establishes the prices of goods and services.
2. It consists of systems, institutions, procedures, social relations and infrastructure.
3. It brings a sense of competition.
4. It works on a basic force of demand and supply.
Types of market:
On the basis of place
1. Local market
2. National market
3. International market
On the basis of time
1. Very short period market
2. Short period market
3. Long period market
4. Very long period market
On the basis of competition
1. Perfectly competitive It consists many sellers. E.g. Mobile market, internet providers etc.
2. Imperfectly competitive
(a) Monopoly one seller. E.g. Indian Railway
(b) Duopoly two sellers.
(c) Oligopoly few sellers. E.g. petroleum product market
(d) Monopolistic many sellers
On the basis of product
1. Consumer market - These are the markets where products and services bought by consumers
for their own and family use.
Types:
(a) Fast moving consumers goods (FMCG)

High volume

Low unit cost

Fast and frequent purchase

E.g. Biscuits, soaps, detergents, newspapers etc.

(b) Consumer durables

Low volume

High unit cost

E.g. Freeze, TV, computers, motorbikes, laptops etc.

(c) Soft goods - It is like consumer durable.

Low/high volume

High/low unit cost

Frequently purchased

E.g. Clothes, shoes, specs etc.

(d) Services

Targeted consumers

Brand name more important

Intangible

E.g. Health insurance, beauty parlours, insurance etc.

2. Industrial market- These markets are not intended directly to consumers but among
businessmen.

Finished goods market

Raw material market

Services

E.g. Accountancy, legal advice, security services, waste disposal services etc.
What is a market economy?

It is an economy system in which economic decisions regarding monetary control, products and their
production and methods and control over distribution are based on supply and demand. These are
decided solely by the aggregate interaction of a countrys citizens as consumers and businesses and
there is very little government intervention or central planning.
Since in market economy, markets are governed by the law of supply and demand, the market itself
will determine the price if goods and services.
Businesses can decide which goods to produce and in what quantity and consumers can decide
what they want to purchase and at what price. The prices of goods and services are determined in a
free price system. In such economy, the government allows and protects ownership of property and
exchange. Government plays an important role as the protector of property rights and individual
liberty.
In theory, market economy is completely different from practical market economy. However most
developed nations today can be classified as mixed economies, they are often said as market
economies because they allow market forces to drive most of their activities, typically engaging in
government intervention only to the extent that it is needed to provide stability. It can be contrasted
with planned economy or centrally planned economy, in which government decisions drive most
aspects of a country's economic activity.
What do you understand by Market Penetration?
Market Penetration is basically a strategy to increase the base or market share of the existing
product. It is one of the four growth strategies of the product market growth matrix defined by
Ansoff. It occurs when a company penetrates a market in which current or similar products already
exist.
Market Penetration can be done by the following means:
(a) Attracting nonusers of the product
(b) Encouraging existing users to use more quantity of products.
(c) Advertisement
(d) Mega sales
(e) Lowering prices
(f) Bundling
Market Penetration can also be mathematically calculated using following formula
Market Penetration = (sales volume of the product 100) total sales volume of all
competing products.
What is a product?
A product can be defined as anything which can be offered to a market to satisfy a need or want.
Here want or need can be different from different angles. For example if a product biscuit is sold in
a market, it is satisfying the need of stomach of a person and same time maximizing profit of the
company selling the biscuit. In retail product are called as merchandise.
Product can be classified as:
1. Tangible Vehicle, cloth, gadget etc.
2. Intangible Cannot be perceived by touch. E.g. sad songs, action movies etc.
3. Branded It carries a brand name.
4. Unbranded It does not carry any brand name.
Note Goods, idea, method, information, object or service that is the end result of a process and

serves as a need or want satisfier. It is a bundle of tangible and intangible attributes like benefits,
features, functions, uses etc. that a seller offers to buyers for purchase.
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1. Marketing is the process of communicating the value of a product or service to customers, for the
purpose of selling that product or service.
2. Mass Marketing means marketing the mass produced goods.
3. Strategic marketing means decision making process that involves the analysis of the internal capabilities
and external environment of a company.
4. Stimulation marketing means there is no demand for the product and people are not interested to purchase
the product hence special offers are given to stimulate the people.
5. Synchrome marketing means irregular demand.
6. De-marketing means the demand for the product exceeds the supply.
7. Producer goods means goods which are priced high and required a few to produce other goods in the
industry ex: lathe, motor etc
8. Consumer goods are required in large number and directly used by the consumer.
9. Derived goods means the demand for the product is derived from the demand of other products ex: the
selling of stabilizer depends upon the selling of TVs and refrigerator.
10. The client of an advertising agency is called Customer.
11. CRM means Customer Relationship Management.
12. Segmentation of consumer market is based on consumer characteristics and consumer responses.
13. B2B means business to business
14. Database marketing is direct form of marketing.
15. A Buyers Market means supply exceeds demands
16. Niche market means a specified market for the target group.
17. HNI marketing means High Networth Individual.
18. Relationship marketing is useful for cross selling of products.

19. Good public relations indicate

Improved marketing skills

Improved brand image

Improved customer service

20. Marketing functions includes

Designing new products

Advertisements

Publicity

After sales service

21. Effective selling skills depends on

Effective lead generation

Sales call planning

Territory allocation

Effective communication skills

22. Marketing channels mean

Delivery period

Delivery outlets

Delivery time

Delivery place

23. Marketing information means

Knowledge level of marketing staffs

Information about marketing staff

Information regarding share market

Knowledge of related markets

24. A DSA means Direct Selling Agent.

25. Service marketing resorted to in Insurance companies and banks.
26. Service marketing is same as

Internet marketing

Telemarketing

Internal marketing

Relationship marketing

27. Market segmentation helps to determine target groups.

28. The seven Ps of marketing

Product

Price

Place

Promoting

Process

People

Physical Evidence

29. SWOT Strengths Weakness Opportunities Threats.

30. Standard marketing practices include lowering the selling price.
31. USP of a product means Unique Selling Proposition.
Rosser Reeves coined the term USP.
32. MBO means Management by Objectives (Peter Drucker)
33. AIDA Attention Interest Desire Action
34. BTL Below the line
35. Right-time marketing is an approach to marketing which selects an appropriate time and place for the

delivery of a marketing message.

36. A group of related products manufactured by a single company is called product line.
37. MDSS Marketing Decision Support System.
38. Target group for the marketing of Internet Banking All the computer educated customers.
39. Innovation means new ideas and product designing.
40. Service after sale is not the function of marketing staff.
41. A good seller should have the following quality/qualities

Devotion to the work

Sympathy

Submissive

42. Planned cost service means additional profit on same cost.

43. A non-traditional, low-cost, flexible and highly effective marketing is termed as Gorilla marketing.
44. The aim of successful marketing is to increase the outlet of the seller.
45. Low end market means a market for lower price products.
46. The strategy used to charge different prices for the same product is called price discrimination.
47. The system designed to support marketing decision making is marketing information system.
48. Conversion in marketing means converting suspect into prospect.
49. MC means Marginal Cost.
50. Personalized marketing (also called personalization, and sometimes called one-to-one marketing) is an
extreme form of database marketing. Personalization tries to make a unique product offered for each
customer.

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Dear readers, since Marketing is a major portion of SBI Exams, so here we are presenting you some quick
notes on Marketing. Hope they prove to be useful in the upcoming exam.

Market: It is a physical place or an environment where sellers and buyers meet together to exchange
goods and services.

Marketing: It is the sum total of all activities that are related to the free flow of goods from the
producer to the customer. Getting the right goods & services, to the right people, at the right place, at
the right time and at the right price.

Marketing Management: It is the art and science of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating superior customer value.

Market Research: It is a process of collection and analyzing information regarding customer needs
and buying habits, the nature of competition in the market, prevailing prices, distribution network,
effectiveness of advertising media etc for arriving at a decision.

Relationship Marketing: It is basically building mutually satisfying long term relationships with key
parties like customers, suppliers, distributors and other marketing partners in order to earn and retain
their business.

Direct Marketing: It consists of a manufacturer selling directly to the final customer. It is also called
zero level channel. The major examples are door-to-door sales, telemarketing, Internet selling etc.

Packaging: It involves putting the goods in attractive packets according to the convenience of
consumers. Well designed packages can build brand equity and drive sales. The package is the
buyer's first encounter with the product and is capable of turning the buyer on or off.

Personal Selling: It is a part of promotional activity. It involves communicating directly with the target
audience through paid personnel of the company or its agents for making sales.

SWOT Analysis:

PEST Analysis:

Marketing Mix (4P's):

Product, Price, Place, Promotion

Viral Marketing: Marketing by the word of mouth having a high pass route from person to person is
called viral marketing. It can create a splash in the market place to showcase a brand and its
noteworthy features.

Product Policy: It is concerned with defining the type, volume and timing of the products a company
offer for sale.

Rights of consumers: Right to safety, Right to be informed, Right to choose, Right to be heard Right
to seek redressal, Right to consumer education.

Cross Selling: An exposure to various other unutilized services of the bank to a customer is called
cross selling. It also includes identifying customer needs, matching the products to customer needs,
convincing the customers of product benefits & responding to questions and objections of customers.

SME's: It stands for Small & Medium Enterprises.

Market Expansion: It is growth in sales through existing and new products by adopting competitive
strategies. It includes expanding the total market, defending market share, expanding market share
etc.

Product Diversification: It refers to manufacturing or distributing more than one product by the
producer or dealer.

Marketing Plan: It is a written document that summarizes what the marketer has learned about the
market place and indicates how the firm plans to reach its marketing objectives. It is the one of the
most important outputs of the marketing process.

Green Marketing: It is a new environment friendly marketing technique.

Product Elimination: It is a process of removing product from the product line (it is a group of
products that are closely related to each other).

Drip Marketing: The method of sending promotional items to clients is called drip marketing.

Selling: It is confined to persuasion of consumers to buy firm's goods and services. It involves the
transfer of ownership of goods to create possession utility.

Bench Marketing: A comparison of the business processes with competitors and improving prevailing
ones is called bench marketing.

Qualities of a good seller: Devotion to the work, Submissive, Sympathy, Active mind set,
Communication skill, Creativity, Motivation.

Prospect: A 'likely' interested customer of the bank is termed as a prospect.

Customer Relationship Management (CRM): It allows the company to discover whom its customers
are, how they behave and what they need or want. It also enables the company to respond
appropriately, coherently and quickly to different customer opportunities.

Call: In marketing, calling the prospective customer is known as a call.

Sales Forecasting: It is the expected level of company's sales based on a chosen marketing plan an
assumed marketing environment. It involves sales planning, sales pricing, distribution channels,
consumer tastes etc.

Motivation: It refers to inspiring one self and others to perform better.

Branding: The essence of a product, its quality and competitiveness displayed in the form of letters,
symbols and colours is known as branding.

Sales Forecasting: The method of estimating volume of sales that a company can expect to attain
within a planned period is called sales forecasting.

Marketing for Growth:

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Quick notes on Marketing

Marketing:
Marketing is nothing but to Tell about your product and to sell it.
The technical definition is
Marketing is the process of planning and executing the concepts, pricing, promotion and distribution
of ideas/goods/services to satisfy individual's/organizational.

Marketing is the process of communicating the value of a product or service to customers, for the
purpose of selling that product or service.
There are several types of marketing are there, some of them are

Bench Marketing: The Bench Marketing is nothing but the comparison of the business
processes with competitors and improving prevailing ones.

Drip Marketing: Drip Marketing is sending promotional items to Clients.

Viral Marketing: Viral Marketing is marketing by the word of the mouth, having a high pass
rate from person to. The best example for this is creating a 'buzz' in the industry.

Guerilla Marketing: Guerilla Marketing is an Unconventional marketing intended to get

maximum results from minimal resources (Maximum results from Minimum resources)

Social Media Marketing: Marketing using online communities, social networks, blog
marketing etc is called the social media marketing.

Internet Marketing: M marketing of products or services over the Internet is called Internet
Marketing. It is also known as i-marketing, web-marketing, online-marketing, Search Engine
Marketing (SEM) and e-Marketing.

Digital Marketing: The marketing which uses digital advertising is called digital marketing.
Television, Radio, Internet, mobile etc.

Direct Marketing: If the company directly reaches to the customers on a personal basis (ex :
phone calls, private mailings, etc) rather than traditional channel of advertising (like TV,
Newspapers, etc) then that type of marketing is called the Direct Marketing. There are a
number of types in direct marketing. Some of them are

1. Direct Mail Marketing: Advertising material sent directly to home and business addresses
(This is the most common form of direct marketing)
2. Telemarketing: It is the second most common form of direct marketing, in which marketers
contact consumers by phone.
3. Email Marketing: This type of marketing targets customers through their email accounts
(you might have observed them in your e mails too)

Indirect Marketing: It is the distribution of a particular product through a channel that

includes one or more re-sellers.

Difference between Direct and Indirect Marketing:

Direct marketing is where the consumer hears about a product or service from a sales person or
associate, representing the company offering the product or service.
Indirect marketing is where the consumer hears about a product or service from a third party. The
third party could consist of word of mouth from another customer, radio, television, newspaper, or

billboards.
For example, an advertisement may ask the prospect to call on a free phone number, mail in a
response or order, or click on a link to a website. This is an example of marketing is Direct
Marketing.
Example of Indirect marketing is Katrina Kaif, as she markets LUX but she doesnt own that
company.
Product Life Cycle (PLC): Product life cycle is a business analysis that attempts to identify a set of
common stages in the life of commercial products. In other words the 'Product Life cycle' PLC is
used to map the lifespan of the product such as the stages through which a product goes during its
lifespan.

IMPORTANT ABBREVIATIONS:
Ad: Advertising
MKT: Marketing
B2B: Business to Business
F500: Fortune 500
EM: Email
DM: Direct Mail
ABM: Account Based marketing
TAP: Targeted account programs
DM: Digital Marketing
SE: Search Engine
SERP: Search Engine Results Page
SEM: Search Engine Marketing
SEO: Search Engine Optimization
SMM: Social Media Marketing
SMO: Social Media Optimization
PPC: Pay Per Click
PPA: Pay Per Action
PPI: Pay Per Impression
PPL: Pay Per Lead
CTR: Click through rate
CPC: Cost Per Click
CPL: Cost Per Lead
CPS: Cost Per Sale
CMS: Content Management System
CRM: Content Relationship Management
MAP: Marketing Automation Platform
SFA: Sales Force Automation
BI: Business Intelligence
MLM: Multi Level Marketing
FDI: Foreign Direct Investment
POP: Point of Purchase Display
R&D: Research and Development
UPC: Universal Product Code
POS: Point of Sale Display

ROI: Return on Investment

CLS: Costumer Location System
RPM: Resale Price Maintenance
VAT: Value Added Tax
CR: Concession Rate
DRA: Direct Response Advertising
CLV: Customer Lifetime Value
eCommerce: Electronic Commerce
CRM: Customer Relationship Management
NPD: New Product Development
ROMI: Return on Marketing Investment
LTV: Life Time Value
BDI: Brand Development Index
CDI: Category Development Index
MR: Market Research
AIM: Alternative Investment Market
MS: Market Share
TMV: True Market Value
MAA: Marketing Authorization Application
MS: Market Surveillance
WOMM: Word of Mouth Marketing
IDRA: Industries Development and Regulation Act
UX: User Experience
GRS: Gross rating Point
BEP: Break Even Point
PAN: Permanent Account Number
IMF: International Monetary Fund
EOQ: Economic Order quality.
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