Marketing Notes for IBPS Exam

* Terms -

* Business Organized efforts by an individual or group engaged in making a living

* Industry It is concerned with the production of goods and materials

* Commerce It is mainly concerned with the distribution of goods

* Consumer goods the goods that are finally used by consumer

* Producer goods goods used by producer to produce some other goods

* Industry Types:

* Primary Industry: concerned with production of goods with help of nature

* Ex agriculture, horticulture, forestry, fishing

* Genetic Industry: Reproduction of certain species of plants and animals with object of scale

* Ex Plant nursery, cattle rearing, poultry

* Extractive Industry: coal, minerals, oil, iron ore

* Manufacturing Industry: textiles, chemicals, sugar, paper

* Construction: buildings, bridges, roads

* Service: hotel, tourism, entertainment

* Trade Buying and selling

* Wholesaler one who buys and sells in large quantities

* E commerce Buying and selling of goods and services over internet is electronic commerce

* B2B companies doing business with each other such as manufacturer selling to distributors and wholesalers selling to retailers

* B2C selling to general public through catalogs utilizing shopping cart s/w

* C2B consumer posts his req with set of budget online and companies review costumers requirement and bid for it

* C2C sites offering free classifieds, forums where individuals do trans ebay

* Joint Hindu family business:

* Karta The head of the family or the oldest member

* Co-operative society Group of individuals who want to work together with some common economic objective can form a society called co-operative society

* Joint stock company companys capital is divided into a number of shares of equal value. An individual holding these one or more shares become shareholder for this company

* Types of companies:

* Private company:

* Has minimum paid up capital of 1lakh rupees

* Restrict right of its members to transfer their shares

* Limits the number of members to 50 and a minimum of 2 should be present

* Prohibits any invitation to public to subscribe for any shares or debentures

* Prohibits any invitation of deposits from person other than its members, directors or relatives


* Public Company:

* Its shares can be transferable freely

* Has a minimum paid up capital of 5lakhs or more

* Members have limited liability

* Number of shareholders can be up to the number of issued and subscribed shares or even more but minimum number should not be less than 7

* Government Company:

* Which has not less than 51% of shares held with Government itself

* Audit of Government companies is done by CAGI

* All the directors or a majority of them are appointed by company

* Its employees are not civil servants

* Multi-National Company:

* Company which carries its business in more than one country

* Large scale production and distribution across national borders huge profits
Service Sector

* Transport Services:

* Transportation auxiliary to trade

* Modes of transport air (costlier), water, road (cheaper)

* Means of transport plane, ship, truck

* Water Transport

* Inland transport through boats and launches in inland waters of rivers and canals

* Oceanic carry goods and passengers through sea route

* Liners Passenger or Cargo vessel, which belongs to a regular shipping company. They ply over a fixed route foll a prescribed time schedule

* Tramps Cargo ship, doesnt make regular trips but plies whenever cargo is offered to it. Doesnt follow fixed route or schedule

* Warehousing:

* It is the activity of storage of goods on a large scale in a systematic and orderly manner and making them available conveniently when needed

* Types of warehouses:

* Private: owned or managed by manufacturers or traders. No license

* Public: run to store goods of general public. License required

* Government: owned, managed, controlled by govt. CWCI, FCI

* Bonded: owned, managed, controlled by govt as well as private agencies. License required. Generally owned by dock authorities and found near ports

* Co-operative: owned, managed and controlled by co-operative societies

* Insurance Services:

* Risk Possibility of loss or damage due to factors over which businessman has little or no control

* Speculative business judgment based on speculation.

* Ex change in fashion, govt. policy

* Pure where chance of loss is predictable

* Property related to loss of property

* Personnel related to life or health of a person

* Financial related to financial transactions of business

* Marketing associated with marketing of goods

* Types:

* Life Insurance contract whereby insurer undertakes to pay a certain amount either on death of insured or on expiry of number of years

* Whole-life policy runs for whole life of insured and premium is payable all along. The sum assured becomes due for payment to the heirs of the insured only after his death

* Endowment policy Runs for a limited period, or upto certain age of the insured. Sum assured becomes due for payment at the end of specified person or on the death, if it occurs earlier

* Outsourcing:

* BPO (Business Process Outsourcing) act of giving other party responsibility of performing what would otherwise be an internal system or service

* Back office outsourcing functions such as billing or purchasing

* Front office outsourcing includes customer related services(marketing or technical)

* KPO (Knowledge Process Outsourcing) upward shift of BPO in the value chain

* Involves off shoring of knowledge intensive business processes that require specialized domain expertise

* Purchase and Sale:

* Wash sales sales conducted to clear surplus or old stocks

* Deferred installment method contract of sale; ownership rights passes to buyer immediately; buyer can return goods at any time; seller can take good on non-payment

* Hire purchase method contract for hiring of goods; ownership right remains with seller; default in payment seller can sue for balance cannot take possession of goods; buyer cannot return the good and adjust for payment due

* Invoice contains details of transaction and amount to be received by seller from buyer

* Credit note document which informs buyer that his account has been credited

* Debit note document which informs seller that his account has been debited

* Quotation satisfactory terms and conditions of sale

* Deferred installment plan buy now pay later plan

* Deferred payment Amount to be received by the seller

* Letter of regret non-execution of order

* Dispatch note when goods are dispatched a copy of dispatch note is forwarded to buyer. This is also known as Advice Note or Letter of Advice

* Retail Trade:

* Retailer middlemen who buy goods from wholesalers or producers and sell them to consumers

* Small scale retailing:

* Itinerant retailing sellers sell goods directly to the customers

* Fixed shops business carried out in a small shop

* Large scale:

* Department Store sells a variety of goods through different departments or counters in a single building

* Multi shops single brand name selling similar range of commodities at same price in all shops

* Super bazaar large scale consumer co-operative store where a wide range of goods of daily household needs are sold under one roof to consumers at a reasonable price

* Sales Promotion:

* It is the approach of selling goods by luring customers with attractive offers and discounts

* Types:

* Free samples when a product is to be introduced

* Exchange schemes Useful for drawing attention for product improvement

* Price-off offer to boost up the sales in off season

* Trading stamps to induce customers to buy a product more frequently

* Consumer Rights and Responsibilities:

* Consumerism self effort on the part of consumers to safe guard themselves is known is known as consumerism

* Consumer Protection Act -1986

* Rights

* Right to safety

* Right to be informed

* Right to choose

* Right to be heard

* Right to seek redressal

* Right to consumer education


* Responsibilities

* Responsibility of self help

* Proof of transaction

* Proper claim

* Proper use of products/services

Practice Questions (theory):

* Marketing by nature is Both Arts and Science

* How marketing is to used It depends upon the type of product or service for which marketing it to be used

* According to Philip Kotler Marketing is a Social Process

* Which was thought as the main objective of Marketing by traditional marketing professionals? To just sell the product and services

* Which is the main objective of marketing now? Sell the product so that the customer gets satisfaction also

* Which is the new dimension added to objectives of Marketing? Customer Welfare

* Who is called the King or the BOSS in new marketing approach? the customer

* Which are the constituent elements of modern Marketing? It includes selling of products and services, after-sales services and complete satisfaction of customer

* What is the scope of after sales service? Important activities coming under gamut of after sales service include repairs, prompt delivery and installation after repairs

* Marketing is not important in which type of market monopolistic market

* Which is the most powerful element of a market the Customer or Consumer

* Who is a customer? whoever pays for a product or a service (may or may not consume it)

* Who is a consumer? - Whoever consumes a product or a service (may or may not pay for it)

* Which types of buyers are important for Marketing? Both present and prospective buyers

* What are the important factors without which there is no requirement of Marketing? Buyers, Seller, a product or service and a market

* Is after sales service important part of Marketing? Yes

* What is the focal point of new concept of Marketing? customer satisfaction

* Which popular phrase has been derived from the customer-centric concept of Marketing? Customer is the King

* What is the base of customer-centric concept of Marketing? Customer Satisfaction

* Customer satisfaction is a new concept or an old one? A new concept

* What is SWOT? Strengths, Weaknesses, Opportunities and Threats

* What would be the most important criteria for a person going to open a Savings Bank (SB) account in a bank? Standard of Service

* What would be the most important criteria for a person going to open a Fixed Deposit (FD) account in a bank? Rate of Interest

* What is the meaning of TQM, a term often used in Marketing? Total Quality Management

* What are the 4 Ps of Marketing? Product, Price, Place and Promotion

* What is the importance of 4 Ps of Marketing? these 4 Ps are together and collectively called basic elements of Marketing

* What is another popular name given to 4 Ps? Marketing Mix

* What is meaning of Marketing Mix? Marketing Mix are the combination of variables chosen by a firm to prepare its market offering

* Marketing Mix is which type of variable? Controllable Variable

* What is meaning of Controllable Variable in Marketing? Those variables which can be controlled or influenced at the level of the firm

* A practical example of controllable variable When a competitor reduces the price of its product the firm in question can either reduce the price of its product or can differentiate the product (this can be done by the firm itself)

* A practical example of an uncontrollable variable When the Govt. puts a ban on selling tobacco products in plastic packing, a firm has no other option left but to follow the order (it is therefore uncontrollable variable)

* What is the meaning of Product in Marketings 4 Ps? It means goods or services or anything of monetary value which is offered in the market for exchange

* What is the meaning of Price in Marketings 4 Ps? Price is the amount of money customers have to pay to acquire ownership of the product or service

* What is the meaning of Place in Marketings 4 Ps? Place is generally physical distribution activities that make firms products to the target customers

* What is the meaning of Promotion in Marketings 4 Ps? Promotion includes activities that communicate availability of a product or service

* Can only products and services be marketed? No, other than product and service ideas, places, persons, experience, events, information, properties can also be marketed

* Which is a wider concept Marketing or Selling? Marketing

* What is Selling? - Selling is only a part of the process of marketing and is concerned with promoting and transferring possession and ownership of goods from the seller to the buyer

* In context of selling, how wide is the concept of marketing? - Marketing is a much wider term consisting of number of activities such as identification of the customers needs, developing the products to satisfy these needs, fixing prices and persuading the potential buyers to buy the same



* DSA means Direct Sales Agent

* USP means Unique Selling Proposition

* What is meaning of a prospect in marketing language? - A likely buyer

* What is the meaning of close a call in marketing lingo? To clinch a sale

* What is Target Group in marketing? Persons who could be likely buyers of a product or service

* A Call in Marketing means to call on prospective customers

* What is delivery channel in marketing? - places where products are made available to the buyers

* What would be the target market for marketing of Internet Banking Services of a commercial bank? - All the computer educated customers of the Bank

* 7Ps Price, Product, Promotion, Place (4P), People, Process, Physical Environment

* blue ocean strategy Effective commn, Innovative skills, motivation

* Mission Statement A summary of aims and values of a company or organization

* Zero level channel Manufacturer selling the products directly to final customer

* Also known as Direct Marketing Channel

* Four Fns. of Marketing Mgmt. Analysis, Planning, Implementation, Control

* Characteristics of Services Intangibility, Inseparability, Heterogeneity, Perishability

* Tools by Firm to pursue Marketing obj. in target market marketing mix, marketing strategy, marketing mgmt.

* Two 4Cs theories -Lauterborn's four Cs (consumer, cost, communication, convenience); Shimizu's four Cs (commodity, cost, communication, channel)

* Product Life cycle Introduction -> Growth -> Maturity -> Decline

* Maslows theory of motivation or needs self-actualization, esteem, love/belonging, safety, psychological

Previous questions:

* Home loans are granted to Individuals

* Customization tailor made products for each customer

* Providing goods/products to customers at affordable prices

* Call in marketing language means calling on a customer

* Target group a group of persons to whom sales should be focused

* Target group for education loans meritorious students seeking higher studies

* Target group for savings deposit account Students

* Target group for car loan any individual needing car

* Target group for agriculture loan individual dealing in agriculture or allied activity

* Target group for credit card individuals with taxable income

* Debit card can be issued to all savings account holders

* Mutual Fund Investments can be canvassed among salaried persons

* Target group for personal loans Salaried persons

* Cross selling selling other products to existing customers

* Market segmentation segmenting the customers as per their needs (or)

* Segmentation of target groups according to their needs

* Marketing segmentation is useful for

* Preferential Marketing

* Targeting Existing Clients

* Identifying prospects

* Knowing customers taste

* Marketing Information Knowledge of Customers taste

* Bancassurance Bank selling insurance products

* Direct Selling Agent (DSA) who sells directly to customer. Helps in boosting direct sales

* Good and effective DSA should be more effective than competitor company

* Marketing in banks is necessary due to Liberalisation

* A lead, is a marketing Jargon, means a likely customer

* Benchmark set standards

* Call center back office setup where customer queries are answered

* Sequence of Sales Process Lead generation, call, presentation and Sale

* Value added services additional services

* Close a call to clinch (confirm or settle, quick trading at close quarters) the sales

* Safe deposit locker can be canvassed among all existing account holders

* Tele marketing marketing through telephone calls

* Market share means Share for business among peers

* USP of a credit card cashless operations

* USP of current account is Friendly features

* Optimum results in marketing is possible through Motivated stuff


* Banks and taglines:

* Union Bank of India -- Good people to bank with

* Indian Overseas Bank -- Good people to grow with

* Syndicate Bank -- Your Faithful And Friendly Financial Partner

* Federal Bank -- Your Perfect Banking Partner

* United Bank of India -- The Bank that begins with U

* HDFC -- We Understand Your World

* Bank Of Baroda -- India's International Bank

* Yes Bank -- Experience our expertise

* Allahabad Bank -- A tradition of trust

* Bank of India -- Relationships beyond Banking

* Oriental Bank of Commerce -- where every individual is committed

* Dena Bank -- Trusted Family Bank

* Indian Bank -- Taking Banking Technology to Common Man

* IDBI Bank -- Banking for all; Not just for Big boys; "AaoSocheinBada"

* Canara Bank -- it's easy to change for those who you love; Together we can do...

* Vijaya Bank -- A Friend You can Bank Upon

* Punjab National Bank -- A Name you can Bank Upon

* The Economic Times -- Knowledge is Power

* Max New York Life Insurance -- Your Partner for Life; "KaroZyaadaKaIraada"

* Central Bank of India -- Build A Better Life Around Us

* J & K Bank -- Serving to Empower

* ICICI Bank KhayalAapka

* Andhra Bank Where India Banks

* Bank of Rajasthan -- Together we Prosper

* SBI Bank -- Nations banks on us; Pure Banking Nothing Else; With you all the way

* Lakshmi Vilas Bank -- The Changing Face of Prosperity

* UCO Bank -- Honours Your Trust

* KarurVysya Bank -- Smart way to Bank

* South Indian Bank -- Experience Next Generation Banking

* SBI was formerly known as Imperial Bank of India

* Nationalized in 1july, 1955;

* Largest and oldest commercial bank in subcontinent

* Banking Terms:

* Adjustment credit - A short-term loan made by a Federal Reserve Bank to a smaller commercial bank as needed to maintain reserve requirements and support short-term lending (Generally done during the FY end time)

* Grameen Bank of Bangladesh awarded Nobel Peace Prize 2006 for micro finance

* Investor Provident Fund(IPF) was established by BSE

* Teaser Loan Rate Rate of Interest in the initial period is less and goes up subsequently










GV Simha