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Semi-Literate MarketingMinistry of Micro, Small and Mini
Industries,Mangalore
B.V.Raghunandan,SVS College,
Bantwal
Women Entrepreneurs
• Compulsion of Circumstances, Lijjat Pappad• Free Time for Women of Grown-up
Children• Handicraft, Art, Embroidery, Tailoring• Home Industry like Agarbathis, Beedi
Rolling, Match Box Manufacturing, Cookery Items, Eatables like Fried Items
Small Shops
• In Front of the House• No Real Estate Cost• Zero Labour Cost• Combining with Domestic Work• Seller cum Consumer• Flexibility in timing, work etc
Corporate Entry• Corporates doing Marketing Service• Better Price Realisation• Better Financing and Larger Distribution• Network Marketing by Amway• Consumer-cum-Distributor model of
Hindustan Unilever-Streeshakti• Readymade Garments Manufacturing• Working from Home Model• Rural Marketing
Benefits Lost
• Localised Innovation• Differences in Quality• Higher Cost• Unhealthy Chemicals and Preservatives• Corporate Domination• Local and Small Industrial Units face the
Threat
Beginning of Marketing
• Begins before production• Assessing the size of the market• Stability of demand• Purchasing ability of consumers• Level and nature of competition• Scope for expansion• Distribution options
Distribution Models
• Direct Distribution: From our home or to the home of consumers
• Distribution through agents• Distribution through retailers: from home
or to home• Distribution through wholesalers• Distribution through and under a corporate
brand
Selection of Distributors
• Financial Integrity• Personal Integrity• Establishment of the distributor• Turnover and level of business of the
distributor• Location of the distributors’ esstablishment• Growth potential
Marketing Concepts: Genesis
• Personal attitude• Religious beliefs• Type and nature of market• Type of consumers• Market maturity• Consumer movement• Legal framework
Personal Attitude
• Value system• Short-term benefit Vs long-term benefit• Honesty• Hypocrisy• Pro-societal attitude towards self-interest• Kindness and charitable nature• Bothering about consequences
Religious Belief
• Certain religions preach protection of employee welfare and consumer welfare
• Fear of God• Belief in a system of punishment• After-life fear• Fear of nature of incarnation• Blending religion and society
Type and Nature of Market
• Monopoly market• Regulated market like ration shops• Technical content involved• Professional service• Uninformed customers• Highly habituated customers• Strong brand loyalty
Type of Consumers
• Indifferent consumers• Floating nature of consumers• Illiterate consumers• Language of printing• Uninformed consumers• Busy consumers• Families having lack of unity of command
Market Maturity
• Well established market• New market• Type of consumers• Level of government regulation• Level of competition• Trade association
Consumer Movement
• Restriction on malpractices• Ensuring quality• Avoiding misleading advertisements• More product information on the package• Conforming to standards• Enabling litigation and getting relief• Consumer education
Legal Framework
• Most powerful and the basis for consumer protection
• Slow but effective as a deterrent• Competition Commission• Industrial Standards like BIS• Restrictions regarding production,
package, marketing and price control
Concepts in Marketing
• Production Concept• Product Concept• Selling Concept• Marketing Concept• Societal Concept
Production Concept
• Legal Monopoly• Natural Monopoly• Financial Monopoly• Monopoly by Patent• Government Ownership• Near Cost Price• Subsidised Prices
Benefits of Production Concept
• Cost is kept to the minimum• No wasteful expenditure on advertisement
and sales promotion• No money and efforts are wasted on
meeting competition• Brand loyalty is not created• No product differentiation
Demerits of Production Concept
• Creation of shortages• No new investment in expanding capacity• No efforts on Research & Development• No benefit to the consumer coming out of
higher scales of operation• Human labour is wasted in waiting time
and standing in queues• Affecting Government Finance
Product Concept
• Country specific attitude like Germany and Japan
• Technology oriented approach• Serendipity• Belief in Research & Development• Best belief of customer service through
ignoring customers and concentrating on product development
Benefits of Product Concept
• Better Products• Lesser Cost• More Importance to Product Planning &
development• R&D• Less money is spent on creating a market• Always ahead of competition
Demerits of Product Concept
• More product failure• Less importance to market surveys• An attitude of superiority on the part of
product developers• Lesser attention to the study of consumer
psychology
Sales Concept
• Using travelling salesmen• When totally new products are introduced• Customers otherwise will not buy the
products• The purpose is to break the resistance and
scale up the market for high end markets• Once the demand is created, ordinary
channels can be used
Benefits of Sales Concept
• Personal touch to demand creation• Clarification of doubts and reservations• Demonstration of the product is possible• Good salesman can make the right
approach• A detailed discussion about the utility of
the product will compel the customer to buy the product
Demerits of Sales Concept
• Interference into their private time• Very little suitable time• Wrong salesman will create the negative
effect• Expenses of salesmen will be very high• Lack of a nearby shop to service is a big
disadvantage
Marketing Concept
• Customer is always right• Market survey is always a prelude to
production• Lot of importance is given to
understanding changing needs of the consumers
• More importance to Research & Development
• Advertisement & Sales Promotion
Benefits of Marketing Concept
• More attention to customer requirement• Regular conduct of market surveys• More investment on R & D• Better after-sales service• Obtaining regular feedback from
customers• Marketing will precede production
Demerits of Marketing Concept
• Too much money wasted on advertisement and other marketing expenses
• Too much of sales promotion• Customer opinion is valued more than the
real welfare of the customers like marketing harmful products like cigarettes and alcoholic drinks
Societal Concept
• It holds that the marketing should be in tune with the societal well-being of the people
• Harmful products will not be marketed even when the consumers want them
• Care is taken not to damage the environment either through package or through any other marketing activities
Benefits of Societal Concept
• Society at large benefits• Environment is protected• The welfare of the consumers is protected
in the long run• Wasteful products are not produced and
marketed• Wasteful marketing expenses like
advertisement are avoided
Demerits of Societal Concept
• Products packed in environment friendly material are a failure either due to a higher cost or lesser convenience
• The firm will get its place in academic circle and intellectual circle, but not in the market place
• Very often, environment protection and societal well-being are provided only a lip service
THANK YOU