Study Materials For Bank's Examinations
Professional Knowledge for Specialist
Officer - Marketing
This material is made for the aspirants who are going to
appear for Marketing Officers (Scale I) post of IBPS Specialist Officers. We’ve
left no stone unturned to cover all basic topics of Marketing in this small pdf
So this will be helpful as a basic reference guide to review marketing topics.
You can download more materials of the same from .
The objective of all business enterprises is to satisfy the
needs and wants of the society. Marketing is, therefore, a basic function of all
business firms. When a salesperson sells washing machines, a doctor treats a
patient or a Government asks people to take their children for getting polio
drops, each is marketing something to the targets.
Traditionally, small firm owners did not give as much
importance to marketing as to other functions such as accountancy, production
and selling. Training programmes, enterprise development and the current thrust
for competitiveness have now given high priority to promoting marketing
awareness among small business owners, and marketing is now assuming its
rightful place along with other business functions. Since early 1990s there has
been a change in the thinking of businessman from product orientation to
consumer orientation. Modern business concerns lay emphasis on ‘selling
satisfaction’ and not merely on selling products. The activities have to be
coordinated so as to develop the marketing mix, which provides maximum
satisfaction to the customers. That is why marketing research and product
planning occupy an important role in marketing. The other important functions of
marketing include: buying and assembling, selling, standardization, packing,
storing, transportation, promotion, pricing and risk bearing. Thus, the scope of
marketing is very wide and no more restricted to merely selling of products.
What is Marketing ?
Marketing may be narrowly defined as a process by which goods
and services are exchanged and the values determined in terms of money prices.
That means marketing includes all those activities carried on to transfer the
goods from the manufacturers or producers to the consumers. We shall be learning
later in the lesson that marketing is more than a mere physical process of
distributing goods and services. It is the process of discovering and
translating consumer wants into products and services. It begins with the
customer (by finding their needs) and ends with the customer (by satisfying
The scope of marketing can be understood in terms of
functions that an entrepreneur has to perform. These include the following:
Functions of exchange : which include buying and
assembling and selling?
Functions of physical supply : include transportation,
storage and warehousing
Functions of facilitation : Product Planning and
Development, Marketing Research, Standardisation, Grading, Packaging,
Branding, Sales Promotion, Financing
The Marketing Concept
The marketing concept holds that the key to achieving
organizational goals consists in determining the needs and wants of target
markets and delivering the desired satisfactions more effectively and
efficiently than competitors1. Under marketing concept, the emphasis is on
selling satisfaction and not merely on the selling a product. The objective of
marketing is not the maximization of profitable sales volume, but profits
through the satisfaction of customers.
The consumer is the pivot point and all marketing activities
operate around this central point. It is, therefore, essential that the
entrepreneurs identify the customers, establish a rapport with them, identify
their needs and deliver the goods and services that would meet their
The components of marketing concept are as under:
Satisfaction of Customers: In the modern era, the
customer is the focus of the organization. The organization should aim at
producing those goods and services, which will lead to satisfaction of
Integrated marketing: The functions of production,
finance and marketing should bem integrated to satisfy the needs and
expectations of customers.
Profitable sales volume: Marketing is successful only
when it is capable of maximizing profitable sales and achieves long-run
Marketing in Simple Words
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”
Types of Marketing
There are several types of marketing are there, some of them
Social Media Marketing
If the company directly reaches to the customers on a
personal basis (ex : phone calls, private mailings, etc) rather than
raditional channel of advertising (like TV, Newspapers, etc) then that type
of marketing is called the
Direct Mail Marketing :
Advertising material sent directly to home and business
addresses (This is the most common form of direct marketing)
It is the second most common form of direct marketing, in
which marketers contact consumers by phone.
Email Marketing :
This type of marketing targets customers through their email
accounts (you might have observed them in your e mails too)
Difference between Direct and Indirect Marketings :
In Direct marketing you advertise your own products or
But in Indirect marketing you advertise somebody else’s
Ex: Example of direct marketing is Shivani Sharma… As she
markets her blog on her own. Example of Indirect marketing is Katrina Kaif,
as she markets LUX but she doesn’t own that company ;)
Marketing of products or services over the Internet is
called Internet Marketing. It is also know as i-marketing, web-marketing,
online- marketing, Search Engine Marketing (SEM) and e-Marketing.
• The marketing which uses digital advertising is called
digital marketing. Television, Radio, Internet, mobile etc.
Marketing Mix (4 Ps) :
The Marketing Mix model (also known as the 4 P’s) is a tool
used by marketers while defining the marketing strategy. Iif you could identify
the right combination of these elements, your marketing would succeed. E. Jerome
McCarthy introduced the 4 P’s of Marketing as a way to describe the mix of
factors required to successfully market a product.
The 4 P’s are :
5 P’s of Marketing :
Place (distribution) and
7 P’s of marketing
Important Note: Here the first 4 P’s are considered as the
basis of any marketing process. The last 3 P’s are a recently added.
SWOT Analysis (Strengths, Weaknesses, Opportunities, and
Threats) is a tool for auditing an organization and its environment. The SWOT
Analysis is the first stage of planning and helps marketers to focus on key
issues. Strengths and weaknesses are internal factors. Opportunities and threats
are external factors.
Customer Relationship Management (CRM)
In order to sell my product, I should maintain good Customer
Relations. I mean I should interact with customers and know their needs and
according to that I have to design my product. This is called Customer
Relationship Management (CRM in short). The CRM concerns the relationship
between the organization and its customers (to learn more about customers’ needs
and behaviors in order to develop stronger relationships with them).
Three Levels of a Product
Researching (or gathering information) about Customers or
Market. I mean, to discover what customers want, need, or believe (and ofcourse,
how the Act). Once you came to know all the details then you can easilea get an
idea on how to market your product.
The Information about Market. I mean the information like the
prices of the different commodities in the market, and getting the Demand and
Market Segmentation is nothing but dividing the market into
Parts. Into different homogeneous groups of consumers. The purpose of this is to
allow your marketing program to focus on the subset of prospects that are “most
likely” to purchase your offering. If done properly this will help to insure the
highest return for your marketing expenditures.
Displaying the importance of the product and other things in
the form of Logo is called Branding (this logo may consists some symbols,
colours and letters)
Marketing versus Selling
The basic difference between marketing and selling lies in
the attitude towards business. The selling concept takes an inside-out
perspective. It starts with the factory, focuses on the company’s existing
products, and calls for heavy selling and promoting to produce profitable sales.
The marketing concept takes an outside-in perspective2. It starts with a
well-defined market, focuses on customer needs, coordinates all the activities
that will affect customers, and produces profits through creating customer
Importance of Marketing in Small Business
Since marketing is consumer oriented, it has a positive
impact on the business firms. It enables the entrepreneurs to improve the
quality of their goods and services. Marketing helps in improving the standard
of living of the people by offering a wide variety of goods and services with
freedom of choice, and by treating the customer as the most important person.
Marketing generates employment both in production and in
distribution areas. Since a business firm generates revenue and earns profits by
carrying out marketing functions, it will engage in exploiting more and more
economic resources of the country to earn more profits.
A large scale business can have its own formal marketing
network, media campaigns, and sales force, but a small unit may have to depend
totally on personal efforts and resources, making it informal and flexible.
Marketing makes or breaks a small enterprise. An enterprise grows, stagnates, or
perishes with the success or failure, as the case may be, of marketing. “Nirma”
is an appropriate example of the success of small scale enterprise.
Marketing of Services
The services sector is more than twice the size of the
manufacturing sector. The growing competitive market for services means that a
marketing orientation has become essential for the survival for service
industries too. India’s high capabilities in Information Technology are well
known. In addition, there is the most popular segment of its services sector,
the entertainment industry, particularly films and TV happens to be one of the
fastest growing in the world. Indian films are popular across West Asia,
Afghanistan, Central Asia, Russia, South Africa and South East Asia. They are
now penetrating the western world.
Marketing research is the means by which the information
necessary to run a business is obtained. It helps an entrepreneur to take
decisions concerning the type of product, the price policy, the channel of
distribution, and sales promotion can be made rightly with the help of marketing
information at the right time. It is the gathering, recording, and analysis of
all facts about problems relating to the transfer and sale of goods and services
from producer to consumer. For example, a hotel should find out what all
services are needed to satisfy its customers and the soft toy manufacturer
making teddy bears needs to find out if children really want purple teddy bears
and so on. Every company, irrespective of size, must research its market,
customers and competition; initially to set it on the right course and then
continually to monitor its performance. Small-scale firms are often unable to
afford continuous marketing research. However, they can use personal contacts
and other informal methods for collecting required information about markets.
A market consists of large number of individual customers who
differ in terms of their needs, preferences and buying capacity. Therefore, it
becomes necessary to divide the total market into different segments or
homogeneous customer groups. Such division is called market segmentation. They
may have uniformity in employment patterns, educational qualifications, economic
status, preferences, etc.
Market segmentation enables the entrepreneur to match his marketing efforts to
the requirements of the target market. Instead of wasting his efforts in trying
to sell to all types of customers, a small scale unit can focus its efforts on
the segment most appropriate to its market.
A market can be segmented on the basis of the following
Geographic Segmentation : The characteristics of customers
often differ across nations, states, regions cities or neighborhoods. The
entrepreneur can decide to operate in one or a few or all the geographic areas,
but pay attention to differences in geographic needs and preferences.
Demographic Segmentation : Variables such as age, sex, family
size, income, occupation, education, religion, race and nationality are widely
used for market segmentation.
Psychological variables : Personality, life style, social
class, etc. can also be used for market segmentation. For example, some products
like pens, watches, cosmetics and briefcases are designed differently for common
men and status seekers.
Behavioural Segmentation : Buyers are divided into groups on
the basis of their knowledge, attitude, use or response to a product.
In order to cater to the requirements of identified market
segment, an entrepreneur has to develop an appropriate marketing mix. Marketing
mix is a systematic and balanced combination of the four inputs which constitute
the core of a company’s marketing system – the product, the price structure, the
promotional activities and the place or distribution system”. These are
popularly known as “Four P’s” of marketing.
An appropriate combination of these four variables will help to influence
demand. The problem facing small firms is that they sometimes do not feel
themselves capable of controlling each of the four variables in order to
influence the demand.
A brief description of the four elements of marketing mix is
as follows :
1. Product: The first element of marketing mix is product. A
Product is anything that can be offered to a market for attention, acquisition,
use, or consumption that might satisfy a want or need. Products include physical
objects, services, events, persons, places, ideas or mixes of these. This
element involves decisions concerning product line, quality, design, brand name,
label, after sales services, warranties, product range, etc. An appropriate
combination of features and benefits by the small firm will provide the product
with USP (unique selling proposition). This will enhance the customer loyalty in
favour of its products.
Products and services are broadly classified into consumer products and
industrial products. Consumer products are bought for final consumption; where
as Industrial products are bought by individuals and organisations for further
processing or for use in conducting business. Other ways of classifying products
are as follows:
a. Convenience products : These are consumer products that
the customer buys very frequently, without much deliberation. They are low
priced of low value and are widely available at many outlets. They may be
further subdivided as :
Staple Products : Items like milk, bread, butter etc.
which the family consumes regularly. Once in the beginning the decision is
programmed and it is usually carried on without change.
Impulse Products : Purchase of these is unplanned and
Usually when the consumer is buying other products, he
buys these spontaneously for e.g. Magazines, toffees and chocolates. Usually
these products are located where they can be easily noticed.
Emergency products : Purchase of these products is done
in an emergency as a result of urgent and compelling needs. Often a consumer
pays more for these. For example while traveling if someone has forgotten
his toothbrush or shaving kit; he will buy it at the available price.
b. Shopping products : These are less frequently purchased
and the customer carefully checks suitability, quality, price and style. He
spends much more time and effort in gathering information and making
comparisons. E.g. furniture, clothing and used cars.
c. Specialty products : These are consumer goods with unique
characteristics/ brand identification for which a significant group of buyers is
willing to make a special purchase effort. For example, Mitsubishi Lancer, Ray
d. Unsought product : These are products that potential
buyers do not know exist or do not yet want .For example Life Insurance, a
Lawyers services in contesting a Will.