SBI ASSOCIATES PO 2014 - Marketing 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

SBI ASSOCIATES PO 2014 - Marketing Notes - II

Hello Readers,
As promised, here we are providing you all the Marketing Notes for SBI Associates PO
2014. Please refer to the previous post of the Marketing Notes too. The link is given at the
end of the post. Happy Reading!!
What is a good?
It can be defined as something that is intended to satisfy some wants or needs of a
customer with some economic utility.
Types:

On the basis of tangibility

(a) Tangible goods However in economics, all goods are considered tangible but in reality
certain classes are not tangible like information. All tangible goods occupy physical space.
(b) Intangible goods - Cannot be perceived by touch. E.g. information (it is different from
services because final in goods can be transferrable and traded but not services)On the
basis of relative elasticity
(a) Elastic goods It is one for which there is a relatively large change in quantity due to a
relatively small change in the price.
(b) Inelastic goods It is one for which there is very little change in quantity due to relative
change in the price.
Note
1. Normal goods Elasticity is greater than zero.
2. Inferior goods Elasticity is smaller than zero.
3. Luxury goods Elasticity is greater than one.
4. Necessary goods Elasticity is less than one.
Other types:
(a) Convenience goods These are easily available to consumers without any extra efforts.
It mostly comprises non-durable goods. E.g. fast foods, sweets, cigarettes, etc.
(b) Staple convenience goods This type comprises basic demands like breed, sugar, milk
etc.
(c) Impulse convenience goods These are goods which are bought without any prior
planning with impulse. E.g. Candies, chocolates, wafers.
(d) Consumer goods These are final goods that are brought from retail stores to meet the
needs and wants.

(e) Emergency goods These are goods that are bought quickly when they are urgently
needed in the time of the crisis. These are typically distributed at the stores.
E.g. Tents, flashlights, lighters, shovels, umbrellas etc.
(f) Specialty goods These goods are unique or special enough to persuade the consumer
to exert unusual effort to obtain them. It means that they are bought after extensive
research. E.g. Designer clothes, painting, perfumes, limited edition cars, stunning design,
typically expensive, antiques, diamonds, wedding gowns etc.
What is a customer?
Customer can be defined as the recipient of a good, service, product or idea obtained from
a seller, vendor or supplier for a monetary or their valuable consideration.
Types:
(a) Intermediate customer These are who purchases goods for resale.
(b)Ultimate customer These are consumers.
What is a Captive Market?
Captive markets are markets where the potential consumers face a severely limited amount
of competitive suppliers; Their only choices are to purchase what is available or to make no
purchase at all. Captive markets result in higher prices and less diversity for consumers.
The term therefore applies to any market where there is a monopoly or oligopoly.
Examples of captive market environments include the food markets in cinemas, airports,
and
sports arenas and food in jails prisons.
What is Marketing?
Marketing is the activity, set of institutions and process for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and
society at large. It is a function that links consumers, public to the marketer of a product
through information. Here the information addresses the issues regarding all aspects of the
products. Products can be tangible or intangible. It differs from selling because in selling,
the main motive remains the maximization of profit by way of selling a product but with
absence of value but in marketing value is also considered at the par with profit. So
marketing is a integrated effort to discover, create, raise and satisfy customer needs with
values. It is one of the competing concepts which can be looked as an organizational
umbrella function to benefit the organization with superior customer value.
What is niche marketing?
Niche marketing is a type of marketing in which a narrowly defined customer group is
targeted. It focuses on small segment of consumers who have unique and similar needs.
The market in which this marketing technique is applied is called niche market. E.g.
Blackberry application or Android application, sports car, luxury cars, internet based
marketing etc.
This technique of marketing can be contrasted with mass marketing.
What is Relationship Marketing?

Relationship Marketing is a technique of marketing which involves creating and

maintaining strong ties with customers and other parties like dealers, suppliers,
contractors, shareholders, stakeholders, employees etc.
This technique revolves around a concentric chain of long term relationship. It also
includes Partner Relationship Management (PRM) apart from Customer Relationship
Management (CRM). Its main objective is to find, maintain and enhance the customer base
and mutually long term satisfying relationship.In Relationship Management buyer and
seller continuously improves their understanding and thus they build up more loyalty
towards each other. The final product of this system is a
unique asset that is marketing network.
This marketing technique includes following steps:
Creating a customer database
Identifying key customers
Creating details
Getting closer through different channels
Maintaining relationship
Advantages of Relationship Management
Consistency of business within the marketing network
Long term brand recognition
Easy redressal of customer grievances

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SBI Assocaites PO - Marketing Notes - III

Hello Readers,
Here, we are presenting you the "Notes on Marketing" for SBI Associates 2014. Hope you
like the post!!!
What is marketing process?
This is the process, which is performed by marketing managers using all marketing mixes
as and when required. The marketing process involves the following variables:
(a) The product itself
(b) Place for selling
(c) Marketing channel
(d) Price
These variables combine in a market offering which the consumers may decide to buy if it
provides satisfaction as per their needs. The marketing process seems to be very easy in
theory; However it is very complex one to perform. If any small change occurs in the
marketing environment, the whole concept of marketing offering and strategy changes
drastically.
What is cross selling?
Cross selling is the practice of selling an additional product or service to an existing
customer. The objectives of cross selling can be either to increase the income derived from
the client or clients or to protect the relationship with the client or clients. The approach to
the process of cross selling can be varied. Unlike the acquiring of new business, cross
selling involves an element of risk that existing relationships with the client could be
disrupted. For that reason, it is important to ensure that the additional product or service
being sold to the client or clients enhances the value the client or clients get from the
organization. In practice, large businesses usually combine cross selling and upselling
techniques to enhance the value that the client or clients gets from the organization (and
vice versa).
For the cross selling there can be substantial barriers.
Let us see some of them:
1. Presence of multiple vendors.
2. Different purchasing points within an account, which reduce the ability to treat the
customer like a single account.
3. The fear of the incumbent business unit that its colleagues would spoil their work at the
client, resulting with the loss of the account for all units of the firm.
Let us see some forms of cross selling:
Selling addon services--- is another form of cross selling. That happens when a supplier

shows a customer that it can enhance the value of its service by buying another from a
different part of the supplier's company. When one buys an appliance, the salesperson will
offer to sell insurance beyond the terms of the warranty. Though common, that kind of
cross selling can leave a customer feeling poorly used. The customer might ask the
appliance salesperson why he needs insurance on a brand new refrigerator, "Is it really
likely to break in just nine months?"
The kind of cross selling can be called selling a solution. In this case, the customer
purchasing a TV is provided with Direct to home inbuilt set top box. In this case customer
can be relived from purchasing a set top box to watch different channels.
Examples of cross selling
1. A CDMA mobile
2. A Life Insurance company suggesting its customer sign up for car or health insurance.
3. A television brand suggesting its customers go for a set top box of its or another's
brand.
4. A laptop seller offering a customer a mouse, pen drive, and or accessories.
5. A shampoo seller suggesting conditioner of its own company for better result.
What is SWOT analysis?
It is a structured planning method proposed by Albert Humphrey. It is used to analyse the
following factors of an organization:
(a) Strengths It includes all the characteristics of a company which is not with other
companies. It needs to be exploited.
(b) Weakness It gives a inside look of the areas where there is scope for improvement
(c) Opportunities It includes external chances that can be used to improve performance
of the company.
(d) Threats It includes external as well as internal elements that could cause trouble for a
project. It can be looming or sleeping.What is USP in marketing?
USP stands for Unique Selling Proposition. The unique selling proposition (USP) is a
marketing concept that was first proposed as a theory to understand a pattern among
successful advertising campaigns of the early 1940s. It states that such campaigns made
unique propositions to the customer and that this convinced them to switch brands.
The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used
in other fields or just casually to refer to any aspect of an object that differentiates it from
similar objects.
So, USP basically provides uniqueness to a particular product. It impresses a
viewer/audience so much that the voice or view of the Ads buzzes into their ears. For
example for this site that you are using now, I can propose USP tuition till your service.
So, through USP, a seller tries to present his product as a unique one and better than all
other competitive products. It provides an instant theme for the buyer to purchase the
product.
What is Upselling?
Upselling is a sales technique whereby a seller induces the customer to purchase more

expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
Upselling usually involves marketing more profitable services or products but can also be
simply exposing the customer to other options that were perhaps not considered
previously.
Upselling implies selling something that is more profitable or otherwise preferable for the
seller instead of, or in addition to, the original sale.
In a restaurant and other similar settings, upselling is commonplace and an accepted form
of business. In other businesses, such as car sales, the customers perception of the
attempted upsell can be viewed negatively and thereby affect the desired result.
Some examples of upsales include:
(a) Suggesting a premium brand of alcohol when a brand is not specified by a customer
(b) Selling an extended service contract for an appliance
(c) Suggesting a customer purchase more RAM or a larger hard drive when servicing his or
her computer
(d) Selling luxury finishing on a vehicle
(e) Suggesting a brand of watch that the customer hasn't previously heard of as an
alternative to the one being considered.
(f) Suggesting a customer purchase a more extensive car wash package.
(g) Asking the customer to super-size a meal or add cheese at a fast food restaurant.
Techniques
A common technique for successful upsellers is becoming aware of a customer's
background and budget, allowing the upsellers to understand better what that particular
purchaser might need.Another way of upselling is creating fear over the durability of the
purchase, particularly effective on expensive items such as electronics, where an extended
warranty can offer peace of mind. The vendor can tell that you are only investing not so
much money so, this particular thing cannot be so durable. Upselling also works with items
like cars, where the seller suggests doing rubber paint inside the chassis to make the car
more durable.

Click here to View the Previous Notes on Marketing -

Marketing Notes - I
Marketing Notes - II

SBI Associate PO - Marketing Notes - IV

Hello Readers,
Here, we are presenting you the "Notes on Marketing" for SBI Associates 2014. Hope you
like the post!!!
What is product life cycle management?
This management is a process of managing a product throughout its lifecycle. It starts
from its introduction, growth, maturity and disposal.
This management integrates people, data, processes and business systems. It works in the
following areas:
(a) Product system engineering
(b) Product and portfolio management
(c) Product design
(d) Manufacturing process management
(e) Product data management

This management process basically involves:

(a) Conceive Imagine, specify, plan, innovate
(b) Design Describe, define, develop, test, validate
(c) Realize Make, procure, produce, deliver, launch
(d) Service Maintain, support, sustain
(e) Dispose Recycle, disposal, retire
What is product life cycle?
In the same fashion of our life cycle i.e. birth, growth, maturity and finally death, a product
also goes through a life cycle which consists of following stages:
(a) Product introduction/market development this is the stage when a new product is
first brought to market. It can be on the basis of demand or innovation of a company. In
this stage sales are low and slow. However, thanks to our communication channels and
modern management techniques that at this stage also sales goes up.
(b) Market growth at this stage the demand begins to accelerate and it takes off.
(c) Maturity
(d) Disposal
What is marketing management?
It is a business discipline which applies different type of marketing techniques, resources,
and trends. The application of this discipline can vary significantly based on businesss
size, culture and environment.

Marketing management employs various tools like SWOT analysis, product positioning,
product differentiation, value chain analysis, strategic group analysis, statistical surveys,
ethnographic observations, competitive intelligence, environment scanning etc.
So, this discipline is very broad one and to create an effective marketing management, it is
very necessary for a company to have its elaborated and objective understanding of its
own business model and markets.
What is marketing environment?
It is an umbrella term used for forces and variables inside as well outside the organization
which influence the decision of marketing managers.
Marketing environment comprises trends that appear and disappear and determine the
success of the organization marketing efforts. For better marketing and formulation of a
marketing strategy, it is necessary to scan internal and external marketing environment
variables.
Marketing environment can be classified into three groups:
(a) Micro (internal) Objective of the company Finance Resources like man power, raw
material, capital etc.
(b)Macro (external) Technology Economic Social Physical National/international
(c) Market (just outside) Competitors Intermediaries Suppliers Threats Opportunities
What is marketing mix?
Marketing mix is a tool in the hand of marketer, which is a mixture of several ideas and
plans, to promote a particular product. Different models of marketing mix:
Four P model-This is also known as producer oriented model. It was proposed by EJ McCarthy in 1960.
Elements:
(a) Product The thing which is offered
(b) Price High/low, stable/fluctuating
(c) Promotion Brand recognition and positioning
(d) Place Convenient for consumers
Seven P model
It was proposed by Booms and Bitner in 1981.
Elements:
(a) Physical evidence Interior
(b) People Human resources
(c) Process Quality
Four C model
It is a consumer oriented model. It was proposed by Lauterborn in 1993.
Elements:

(a) Product Consumer

(b) Price Cost
(c) Promotion Communication
(d) Place Convenience/channel for consumers
Seven C model Elements:
(a) Consumers
(b) Cost
(c) Communication
(d) Convenience/channel
(e) Corporation
(f) Commodity
(g) Circumstances
Compass model Elements:
(a) N National and international
(b) W Weather
(c) S Social
(d) E Economic

Click here to View the Previous Notes on Marketing -

Marketing Notes - I
Marketing Notes - II
Marketing Notes - III

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SBI Associates PO - Marketing Notes - V

Hello Readers,
Here, we are presenting you the "Notes on Marketing" for SBI Associates 2014. Hope you
like the post!!!
What is Demarketing?
Demarketing is a type of marketing which discourages certain customers on a temporary or
a permanent basis. This marketing is mainly applied on such products which are either
harmful or very rare. Example: Tobacco, petroleum products, water, electricity etc.

This marketing process is generally supported by government or international organization

with a sole aim of humankind welfare. It is also done for the sake of conservation of
resources, controlling inflation, eliminating the factor of over competition and over demand.
This technique is applied by following methods:
Bringing substitute
Suppress demand
Increase the cost of the product itself manifold
Through government legislation

What is Remarketing?
Remarketing is a marketing process by which the demand of such product is renewed
which has witnessed declining trend of demand. It is done by spreading awareness in
general, introducing new and interesting use of the existing product, resale of second hand
well fabricated products.
This concept of marketing is opposite to the Demarketing concept.
What is Synchro Marketing?
Synchro Marketing is marketing process which solves the problem of irregular demand
pattern of a product. For example a Beach side hotel is overcrowded during evening time,
whereas it is almost like desert during morning hours. A cotton shop is crowded during
summer season whereas during winter it is not.So, Synchro Marketing finds a way to solve
the problem of inconsistent demand pattern by the following methods:
(a) Keeping high price during season
(b) Offers lucrative options during offseason
(c) Using the stores with many varieties of item

(d) Promotion and incentives

What is differentiated marketing?
This is a type of marketing in which customers are divided into groups on the basis of
some common characteristics like religion, income, age, sex, caste, education etc. Thus the
customer base is segmented. This is why this marketing is also known as market
segmentation. This technique is customer oriented with higher customer satisfaction and
profits.
It has following advantages:
(a) Increased sales and profits
(b) Large number of customers from all segments
(c) Quality products manufacturing can be accurate
(d) Customer oriented
It has following disadvantages:
(a) Chances of cost rise due to small quantity manufacturing. So, it is opposite to mass
marketing.
(b) Huge amount of work for R & D for customer segmentation.
(c) Wastage of money for separate advertisements for different segments
What is market segmentation?
It is a marketing strategy which involves the following criteria:
(a) Divides the target consumer/market as per their common want/need/relevant goods.
(b) It is internally homogenous and externally heterogeneous.
(c) Cost effective
(d) Profit maximization
(e) Responsiveness
(f) Sustainable
(g) Measurable
(h) Needs can be satisfied by particular product category
So, through this strategy, within a market, a market segment is created which is a subgroup
of people or organization. Sharing one or more characteristics that cause them to have
similar needs. So, this strategy is a process of enabling the marketer to tailor marketing
mixes to meet the need of one or more specific segments.
It has following advantages:
(a) It helps decision makers to more accurately define marketing objectives and better
allotment of resources.
(b) Performance evaluation is also more precise.
(c) Better marketing results.
What is undifferentiated marketing?
It is just opposite to differentiated marketing and similar to mass marketing. Under this
technique company identifies the entire consumers as one with common head. This
strategy does not consider segmented demand pattern. It involves same product, same
brand, same price, same marketing program, same advertising media with mass production
and distribution.

It has following advantages:

(a) Large scale production is possible.
(b) Cheap products
(c) One type of advertisement, so, less expense
(d) One marketing mix
(e) Single brand name
It has following disadvantages:
(a) It is product oriented rather than consumer oriented.
(b) Reduces profits due to product competition.

Click here to View the Previous Notes on Marketing -

Marketing Notes - I
Marketing Notes - II
Marketing Notes - III
Marketing Notes - IV

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