GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

BACHELOR OF COMMERCE (Hons)

BCOM 203- Marketing Management

Unit IV
Emerging Trends and Issues in Marketing: Consumerism, Rural Marketing, Social
Marketing; Direct Marketing; Online Marketing, Selling Skills.

Consumerism
Definition- Consumerism is defined as organised efforts of
consumers seeking redress and remedy for dissatisfaction they have
accumulated in the acquisition of their standard of living.
Consumerism is a public movement which protest against certain
marketing practices. It is a social movement and not just protests by
an individual consumer or a group of consumers.
Unique problem of Indian Consumers
1)Consumerism is still in its infancy and not well organised . Majority
of Indian consumers are not consciously aware of their rights.
2)Shortage of essential commodities occur very of often in India
.Such imbalances lead to hoarding, black marketing , profiteering and
corruption.
3)Many consumers are ignorant and uneducated and in such situations
, the marketers exploit the consumer
4)Consumers become easy vicitim , in absence of information , and
buy substandard and defective products.
5)The courts procedure in India is a time consuming and tiresome
process.
6)Supplier and not the consumer, become the king in the market.

Consumer Exploitation in India

Consumers at large become a prey to the exploiters. Examples are not
few but countless
1)Supplied material are of sub standard.
2)Goods in many cases , fall short of their weight.
3)Goods and services are priced high
4)Consumers are tortured with false advertisements.
5)Artificial scarcity to earn illegitimate profit
6)Adulteration
7)High pricing of goods and services
8)Duplication
10)Product Risk.
11)Consumer have been harassed during the guarantee period , when
free repair is warranted

Examples
Toothpaste tubes filled with air at the end
Buying a package of biscuit , one finds more package material than
the quantity of biscuit
One litre milk packet contains 40 % of water , where packet is sealed
with label “PURE MILK”
500 grams of chilly powder packet consist of 150 grams of red brick
powder or colored saw dust , where label reads PURE.

RIGHTS OF CONSUMER
1) Right to choose- A consumer has a right to choose the best
quality products and services
2) Right against exploitation- A consumer has a right against
exploitation by unfair trade practices including fraudulent and
misleading advertisement
3) Right to protection – A consumer has right to protect and
enhance the quality of his life.
4) Right to safety- A consumer has right to protect health and
safety from goods and services
5) Right to seek redress- A consumer has a right for the redressal
of his grievances.
6) Right to be informed – A consumer has a right to be informed of
quality , price , ingredients of the product , purity , quantity and
other pertinent facts relating to the product.
7) Right to heard –The right to be heard and assured that consumer
interest will receive due consideration at appropriate forums.
8) Right to receive after sale service- A consumer has a right for
services after sale and for warranties and guarantees.
Laws relating to protect consumer interest
1)The Prevention of Food Adulteration Act, 1954- This is a consumer
oriented legislation designed to protect health of the public by
prohibiting adulteration of food.
2)The Essential Commodities Act , 1955- it is one the of the major
consumer oriented legislation of the country , in the interest of general
public , the production , supply and distribution of trade and
commerce in certain commodities declared essential.
3)Weights and Measures Act- This Act was enacted to safeguard the
consumer against the exploitation of weighing measures of
commodities by traders. Under this act standard weights and measures
are introduced and metric system has been introduced
4)The Monopolies and Restrictive Trade Practices Act , 1969- This
Act was enacted in order to regulate the monopolistic and restrictive
trade practices followed by companies.
5)Drugs and Cosmetics Act 1940- Just as in food products , drugs of
sub standard quality are manufactured and marketed. The prices
charged for medicines are not proportional to the cost of production.
6)Packaged Commodities Act- This is an important measure for
consumer protection. This order provides the producers of several
packaged commodities should print in the packages the contents,
weights , price, month of manufacture, the date of expiry of products,
the name of manufacturer so that consumer will come to know what
they purchase.
7)The Consumer Protection Act 1986- The Government of India has
passed the Consumer Protection Act in 1986. This is a landmark in
the history of consumer movement in India and to all goods. It is not
applicable to public enterprises. It seek to set up courts in each state
with powers to punish the guilt by heavy fine and imprisonment.
Rural Marketing
Rural Marketing is promotion of a company’s products in the rural
markets by using strategies which differs from that of urban markets.
The rural market is more price sensitive but it has preference quantity.
Nature of Rural Market
1)Large, diverse and scattered market- Rural marketing in India is
large and scattered into a number of regions. There may be less
number of shops available to market products
2) Major income of rural Consumer is agriculture- Rural prosperity is
tied with agricultural prosperity . In the event of crop failure , the
income of masses is directly affected this further affects their
purchasing power.
3)Traditional Outlook- Villages develop slowly and have traditional
outlook . Change is continuous process but rural people accept
change gradually. This is gradually changing due to literacy
especially in the youth.
4)Standard of living and rising disposable income of rural customers-
It is known that majority of rural population lives below poverty line
and has low literacy level, low savings etc. Today the rural customers
spend money to get value and are of aware of the happening around
him.
5)Diverse Socio Economic Background – Due to difference in
geographical areas and uneven land fertility, rural people have
different socio economic background , which ultimately affects the
rural market.
6)Infrastructure Facilities- The infrastructure facilities like
warehouses, communication system and financial facilities or
inadequate in rural areas .Physical distribution is a challenge to
marketers who has found innovative ways to market their products.

Rural Marketing Mix Strategies

Rural markets are becoming important for reasons for economic
growth in these areas and increasing inter firm rivalry in urban market
Product- Product for the rural market must be built or modified to
suit the lifestyle and needs of the rural customers. The product
strategies to be followed in rural markets are

 Newly/modified products
 Utility Oriented products
 Avoiding sophisticated packaging
 Application of value engineering
 Small unit packaging
Example – Low unit packs packs sachets by HUL, P & G- Vicks
vaporub.Family pack – Britania and Priyagold
Price- The price strategies to followed in rural market are

 Large volume- low emerging

 Low cost / value for money products
 Low volume –low price
Example – Clinic plus in fifty paisa , one rupee and two rupee pack
Place- The distribution strategies to be followed in rural market

 Segmentation
 Covering of villages having population above 2000
 Distribution to feeder market or mandi town
 Direct control with rural detail
Example- Samsung van display all the products, the company has tied
up with local distributor to showcase the Samsung range in local
melas.
Promotion- Promotion aspects always create a challenge in rural area
as they have very thin population density but are spread in large
remote areas. The promotion strategies to be followed for promotion
in rural market

 TV
 Radio
 Print Media
 Cinema
 Hoarding
Example- Films on products like Vicks ,Colgate, Lifebuoy are
shown in rural cinemas.

Challenges in Rural Marketing

The diverse nature of rural markets has made it very difficult for
marketers to undertake a marketing plan. Some of the major
challenges faced by marketer are
1)Under Developed People- Rural society is bound by tradition ,
old customs, practices etc. The modern language has made very
less impact .Old beliefs are still continuing.
2)Under Developed Market- Rural markets are note developing
because of inadequate banking and credit facilities. Rural market
needs bank to enable remittance , to transact on credit basis and to
obtain credit support from the bank.
3)Poor or Improper Communication Facilities- Most villages even
today largely depends on telegraphs and phones for their
communication needs print media and visual media.
4)Many Languages- India is a country of many languages
.Language becomes a barrier in effective communication in the
marketing efforts. The languages vary from state to state , place to
place , district to district . There are now 18 schedule regional
languages.
5)Low per Capital Income – Most farmers have small lands and
many villages are drought prone , this result in low per capita
income. Low per capita income results in low consumption pattern
as compared to the urban population. The marketer face challenges
in rural marketing to decide about quantities , frequencies of
distribution , package size etc due to low per capita income of rural
income.
6)Poor Infrastructure Facilities- Infrastructure facilities like roads ,
warehouse , power etc are inadequate in rural area. Infrastructural
costs are very high and impact adversely in rural market activities.
7)Seasonal Demand- The main occupation of rural people is
agriculture which is seasonal hence their demand as well as income
is also seasonal .Thus markets may face a challenge to market its
product in case of off seasons as the purchasing power of the rural
people would be low.
Social Marketing

Social marketing is an approach used to develop activities aimed at

changing or maintaining people's behaviour for the benefit of
individuals and society as a whole.
According to Philip Kotler - Social Marketing is "the
design, implementation, and control of programs seeking to
increase the acceptability of a social idea or practise in a target
group"

According to W. Smith, Academy for Educational Development -

"Social Marketing is a process for influencing human behaviour on
a large scale, using marketing principles for the purpose of societal
benefit rather than commercial profit."

Social marketing is based on tools and techniques of commercial

marketing, it uses principles of commercial marketing for the
purpose of societal benefit. In social marketing,
advertising campaigns are designed, implemented, and controlled
by using the principles of commercial marketing. The key features
of social marketing are taken directly from commercial marketing,
but the purpose of social marketing differs from the purpose of
commercial marketing. The purpose of commercial marketing is to
increase sales and revenue, but it is not so in the case of social
marketing.

The purpose of social marketing is societal benefit rather than

commercial profit. Its purpose is to bring about positive health and
social change. Its ultimate outcome is behavioural change rather
than increased sales.

Social advertising campaigns are advertising tools that attempt to

influence attitude and behaviour related to social cause. For
example, social advertising campaigns have been used to influence
behaviour related to energy conservation, pollution, tobacco
prevention, family planning, breast cancer screening, and etc.

Direct Marketing
Definition- Direct marketing is a subset of marketing which can
entail selling to a consumer through direct mail (a magazine or
newspaper campaign), mail order , coupon advertising , telephone
marketing , direct response TV ad or any other method of
marketing that attempts to make the sale then and there.

Forms of Direct Marketing

1) Online marketing- Online marketing refers to a set of powerful
tools and methodologies used for promoting products and services
through the internet. It includes a wide range of marketing
elements than traditional business marketing due to extra channels
and marketing mechanism available on the internet
2) Direct mail- Direct mail encompasses a wide variety of
marketing materials such as brochures , postcards ,newsletters and
sales letters. Direct mail involves sending of information about
special offer , product , sales announcement , service reminder or
other type of communication to a person at a particular street or
electronic address.
3) Catalogue marketing – Catalogue direct marketing is the most
commonly used to feature a variety of products that target the need
of a specific audience with a propensity to order from catalogues.
4) Direct response marketing- Direct response marketing provides
a mean for entrepreneurs to measure the cause and effect
relationship between advertising budget and its result. Direct
response marketing is any advertising that invites the recipient to
contact the seller directly through a toll free number , a mailing
address or a business reply card.
5) Telephone marketing- Telephone marketing or telemarketing
uses the telephone to sell directly to consumers. Successful
telemarketing campaign depends upon few essentials : well trained
and rewarded salespeople, a good calling list and an effective
script.
6) Personal Selling- Personal Selling represents the most costly but
effective forms of direct connecting consumer with a company ‘s
product and services.

Difference between Mass Marketing and Direct Marketing

S.No Mass Marketing
1 Average Customer
2 Customer Anonymity
3 Standard products
4 Mass production
5 Mass Distribution
6 Mass Advertising
7 Mass promotion
Direct Marketing
Individual Customer
Customer profiles
Customised market offering
Customised production
Individual Distribution
Individual Dialogue
Individual Messages
8 One way message Interactive Dialogue
9 All customer Profitable Customer
10 Customer Attraction Customer Retention

Advantages of Direct Marketing

1)Direct marketing offers the advantage of reaching large number
of well defined target customers .
2)There is a direct reduction on the cost to serve customers due to
less number of intermediaries in the value network
3)The companies are able to remove the non value adding
intermediaries from the channel; thus serve the customer with
profit.
4)Direct marketing often has an immediate impact on customer
responses
5)Direct marketing facilitates to reach prospects at just the right
moments
Disadvantages of Direct Marketing
1)Practise of direct marketing may upset marketing intermediaries
as sales through direct marketing can take away sales from them.
2)Door to door and telemarketing practices are often found to be
intruding into the life of customer and creating irritation among
customers.
3)Initial customer acquisition cost are high
Online Marketing

Online marketing- Online marketing refers to a set of powerful

tools and methodologies used for promoting products and services
through the internet. It includes a wide range of marketing
elements than traditional business marketing due to extra channels
and marketing mechanism available on the internet. It is also
known as Internet marketing , Web marketing , digital marketing
and search engine marketing (SEM).
Advantages of Online Marketing
1)Fast availability of the information- The clients /users can easily
get information , by navigating the internet, about the products that
they wish to purchase and besides that , they can check the
information at anytime of the day.
2)Saves money- It allows the companies to save money , an aspect
that is really taken into account by the companies since the online
marketing campaigns don’t require a large amount of investments.
3)Increase competition – The previous mentioned aspect , gives
less importance to the difference between large and small
companies in some way, thus increasing competition and giving
that way advantages to the customers.
4)Growth and development- Presence on the internet can help the
expansion of the company from the local market to national and
international markets at the same time , offering almost infinite
expanding possibilities.
5)Measurable results- On the internet everything can be measured ,
thus it’s easier for the companies to know almost instantly if their
campaign is working or nor, what company or user is interested in
their products , from what cities or countries are they etc.
 Disadvantages of Online Marketing
1)Slow internet connection- This can cause difficulties. If the
companies build too complex or too large websites, it will take too
long for users to check them or download them and they will get
bored eventually.
2)No tangibility- The e-commerce does not allow the users to
touch the merchandise before purchasing it. Because of this , some
salesmen are starting to guarantee the possibility of returning the
product.
3)Complex mode of payment-Other factor is the payment :many
users especially in India are not computer literate and still don’t
trust in the electronic methods of paying and give up buying online
because of this.
4)Lack of trust of the users- Because of constant virtual promotion
that appears to be frauds, customer lose faith in online shopping.
This is an aspect that deteriorates the image and reputation of
quality and honest companies.
5)Cash on delivery system- Since it does not guarantee the 100%
purchase of the product .This is also the case of thousand of users
that dedicate themselves to daily mock big companies by ordering
on the internet using false identities.

Selling Skills

Salesmanship is an attempt to induce people to buy goods. “Personal

Selling” and “Salesmanship” are often used interchangeably, but there
is an important difference. Personal Selling is a broader concept
.Salesmanship may or may not be an important part of personal
selling and it is never all of it.
The flow of goods from the producers to the consumers may not be
possible without the involvement of salespersons. The salespersons
play an important role in the process of sale. Starting from the
conversation with the consumer to effecting a sale they actually act as
an important link between the manufacturer and the consumer. They
ensure the sale of products and so also provide satisfaction to
customers. Thus, it is not only the business houses which benefit from
salesmanship but also the consumers and the society.

Benefits of Salesmanship
1. Benefits to Consumers : A salesperson acts as a friend and guide to
the consumers. By making conversation with salesperson, the
customer gets help in identifying the product of his need and the price
range that suits him. The salesperson explains to the customers the
uses and the operational aspects of a product. By giving the requisite
information about the company and the product, the salesperson
provides confidence to the customers to try something new which
might be better and/or cheaper. The salesperson also provides the
necessary after sales service to the customers.

2. Benefits to the Business : Salesmanship helps a business in

increasing its sales.
Identification of new customers and persuading them to buy can be
done effectively hrough personal selling. Since the salesperson comes
in direct contact with the customers, understands the needs and
preferences of the customers and thus, can help the businessman in
planning for the right type of products and effecting the necessary
improvements therein. In case of products of technical nature the role
of salesmanship is very important as the salesperson can personally
explain the functioning of the product, its use and precaution to be
taken in its use. This ensures proper handling of the product, and
boosts customer’s confidence in his choice of the products.

3. Benefits to the Society : Salesmanship facilitates the process of

production, distribution and consumption. Salespersons help in
collecting market information, credit information, delivering goods
and collecting payments. It helps in matching demand with supply
because they know what the consumers want. They also inform the
consumers about the introduction of new products, if any. By
increasing sales, they help in the growth of business.

Qualities/Traits of Salesman

(a) Good Personality : Personality is a mixture of many traits like

physical appearance, dressing-up, way of talking, manners, pitch of
voice, habits etc. Personality of a salesperson should be such that the
moment he/she comes in contact with the customer, he/she looks
amiable with whom the customer is at least ready to start a
conversation.

(b) Mental Qualities : A salesperson must have the quality of

alertness, imagination, foresightedness, empathy etc. He should have
the ability to read the customer’s mind and behave accordingly. There
may be certain doubts or apprehensions in the mind of the customer
regarding the product. Only a salesperson with these mental qualities
will be able to solve the customer’s problems. A good salesperson
should be able to match the product with the customers need and
ability to pay.

(c) Good Behaviour : A salesperson should be a well behaved person

having ability to interact with people comfortably. He/she should be
cooperative so that he/she can help people in making up their minds
by patiently answering all their questions. Patience and humility will
help him/her in not only holding the attention of the customer but also
in getting them interested in purchasing the product.

(d) Knowledge : While buying a television set normally we ask the

salesperson a number of questions about the features of the latest
model. If the salesperson fails to answer our queries or if we do not
satisfied with the reply, we may leave that shop and visit another shop
where all of our queries are answered by the salespersons. This is
possible only when the salesperson has detailed knowledge about the
product. He/ she should know every detail relating to the product and
the company he/she is representing. He/she should be able to explain
the various features of the product, the way it is to be used and the
precautions to be taken and so on. Knowledge about competitors’
product is also a must so that the salesperson can explain the
superiority of his/her product.

(e) Ability to communicate and persuade : If a salesperson can

communicate properly and effectively then he/she will be able to clear
the biggest hurdle of making the prospective customer listen to
him/her. The salesperson must speak confidently, clearly and audibly.
Good communication ability coupled with good knowledge about the
product helps the salesperson in persuading the customer to buy.
(f) Persistence : The salesperson must know the art of persistence. It
requires a sense of determination to convince the customers to buy.
He/she must not give up easily. Without being offensive, he/she must
persuade the customer to finalize the purchase with a sense of
satisfaction.

Some people says salesmen are born salesmen, while others believe
that training can help in making good salesmen. Irrespective of these
opinions, good salesman has certain qualities and abilities as a result
he is able to perform better than others. In this section we would
discuss qualities of a good sales person.
Philip Kolter has identified two basic qualities of a good' sales person
namely, empathy and persuasion. But others have listed more. Some
of the qualities of a good sales person are as follows

1. Ability to estimate customer's needs and desires: He is alert and

quickly determines what the customer wants and the best way to
sell.

2. Ambition: He likes to do a good job and is interested in getting

ahead with your company.

3. Appearance: Appearances mean a lot toady and the successful

salesman is neat and organised. He presents himself well in
 person. Also, he keeps his desk. books and manuals neat and ready
for use.

4. Business Sense: He understands that you are in business to make a

profit and quickly learns the ins- and -outs of your organisation.

5. Courtesy: He reveals a sincere desire to help customers and treats

them as guests even when he visits their places of business.

6. Creativeness: Imagination, vision and the ability to create ideas

make your man dynamic.

7. Curiosity: He wants to learn all he can about his job, his products
and his customers.

8. Enthusiasm: There is nothing that can drain away a prospect's

buying interest more than a half-dead salesman. A salesman must
radiate enthusiasm during and after the sales call.

9. Figure Sense: He should have the mathematical ability to figure

and fill up order form correctly and to make the necessary reports.

10. Flexibility: A good salesman is able to adapt himself to a variety

of customers. Each contact may require a adapting the sales talk,
speech habits and even appearance.
11. Friendliness: A salesman should be able to make people like him
and he must like to meet people.

12. Handwriting: He must write legibly so that his paper work can be
readily understood by his office people and by his customers.

13. Health: Good health generates energy and energy is needed to sell.
Poor health prevents many salesmen from fulfilling their
potentials.

14. Integrity: A salesman must be trusted to do his job well. He

cannot help but he successful when his customers trust him.

15. Interest in his job: He likes selling and working for your company.
.

16. Knowledge: In some business, an applicant must also have a

through knowledge of the highly specialized products or services
his employer offers. In some cases, this knowledge can be gained
only by years of experience.

17. Loyalty: He must be able to impress upon his customers the idea
that his company is the best in the business.

18. Mental abilities: He has the intelligence to understand your

products and those of your competitors. He must know how to use
 words, to understand and direct people' and to remember names
and faces. He should also be able to understand prospective
customers and know how to act under varying conditions.

19. Motivation: He must have more than just an interest is selling.

Psychologists have found certain predominant patterns in men
who have become realty successfully sales men. They live in the
present and not in the future. They do. want power over others and
prefer not to work under close supervision.

20. Originality: He is constantly searching for new ideas to be used in

selling your products and will suggest better ways of doing things.

21. Persuasiveness: Very few products of any type actually sell

themselves. They must be sold. Your man must have the ability to
get people to agree, There are situations when persuasiveness may
vary keeping in view the consumer's response.

22. Poise: His maturity is .reflected in his behaviour. He should be

positive and confident, energetic and businesslike. He should be
able to demonstrate to your customers that he knows what he is
talking about.

23. Self-starter: He should be able to work well without constant

supervision and is able to make decisions on his own.
24. Speech: He can speak clearly and maturely in a natural tone. He
can emphasize sales points with sincerity and friendliness.

Skills of Sales Manager

A successful sales manger requires several skills which are given

below

1)People skills- Sales manager must possess good human or people

skills. These includes the ability to communicate, motivate, lead and
coordinate effectively the activities and efforts of the sales team. Sales
managers should have the ability to develop team spirit and cordial
relationship. The sales manger must understand the individual needs
,strengths and skills of sales person. Sales manager must possess
interpersonal skills, interactive skills, leadership quality, motivational
ability and should be able to accept new ideas even from the
subordinates.

2)Managing Skills –The sales manager requires managerial skills like

planning, organizing ,staffing, directing, controlling and decision
making ability in order to manager sale force effectively. They should
understand the corporate goals and determine sale objectives in line of
corporate perspectives.

3)Technical Skills – These are the skills to perform specific tasks or

function such as negotiating, selling, training and ability to use
technology effectively. Sales managers should have the knowledge on
technical areas of sales management such as designing sales
territories, determining salesorce size, designing compensation
package etc. Technical skills also include problem solving in some
specific industry .

4)Analytical Skills- These skills are required to estimate and analyze

market conditions, customer demands, market and sales potentials,
strengths and weakness of his own company in comparison with
competitors, environmental threats and opportunities etc. Sales
managers should estimate the opportunity cost of decision alternatives
and their expected outcome. Sales managers should have aptitude to
select and use mathematical models, econometric models, statistical
techniques, operations research techniques etc to suitable diagnose the
problem and evolve solutions.

5)Conceptual skills-Sales manager should have theoretical

background on organization structure, function and roles of
management, organizational theories ,organizational behaviour
,corporate social responsibilities .They should also have
understanding of marketing and sales management, consumer
behaviour, market segmentation, market research, product positioning
etc.