MARKETING MANAGEMENT Manish Kumar IN THIS UNIT YOU

MARKETING MANAGEMENT Manish Kumar

IN THIS UNIT YOU WILL STUDY ABOUT • Marketing- Definition, Nature, scope and importance, Marketing management, core concept of marketing, selling concept, production concept, modern marketing concept, societal marketing

MEANING AND DEFINITION • Generally marketing is understood to mean the sale and purchase of goods and services, but it is too narrow view to understand it so. • Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want-satisfying products and services to the present and potential customers. William J. Stanton • Marketing is an organizational function and a set of processes for creating , communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders. American Marketing Association

NATURE OF MARKETING Specialized business function Integrative function Adaption to environment variables Social desirable function Reflects the business function Universal function

SCOPE OF MARKETING • • • Goods Services Experiences Events Persons Places Properties Organization Information Ideas

IMPORTANCE OF MARKETING Importance of marketing to the society Importance of marketing to the firm

IMPORTANCE OF MARKETING TO THE SOCIETY Delivery of standard of living to the society Decrease in distribution cost Increase in employment opportunities Protection against business recession Increase in national income

IMPORTANCE OF MARKETING TO THE FIRM Helpful in business planning and decision making Helpful in communication between firm and society Helpful in increasing profit

CORE CONCEPTS OF MARKETING Needs, wants and demands Value Exchange and transaction Market Products Cost and satisfaction Relationship and networks marketers

MARKET • The term market has traditionally been used to describe a place where buyers and sellers gather to exchange goods and services, e. g. , a fruit and vegetable market or stock market. • A market consists of all the potential customers sharing a particular need or wants who might be willing and able to engage in exchange to satisfy that need or want. Philip Kotler

Vo tranlume sac of b ted usin ess of Na comture a pet nd d itio n egree ods ties /Go odi s ller of s e on mm Co siti Po tion nsa c of Tra eas l Ar ica aph ogr ture Na Ge CLASSIFICATION OF MARKET

CLASSIFICATION ACCORDING TO GEOGRAPHICAL AREAS National market International market Regional market Local market

ON THE BASIS OF NATURE OF TRANSACTION Spot Market Future Market

CLASSIFICATION ACCORDING TO POSITION OF SELLERS y r a t ir m rke P a M Secondary Market Te m rmi ar na ke l t

CLASSIFICATION ACCORDING TO COMMODITIES AND GOODS Product exchange market Manufactured Goods market Bullion Market Stock Market

CLASSIFICATION ACCORDING TO NATURE AND DEGREE OF COMPETITION Perfect market Imperfect market

ON THE BASIS OF BUSINESS TRANSACTED Industrial market Wholesale market Retail market

MARKETING FUNCTION Function of exchange • Buying • Assembling • Selling Function of physical supply • Transportation • Storage and warehousing • Choosing & motivating Channel of distribution Facilitating Function • Financing • Pricing • Risk-Bearing • Standardization • Marketing information • Managing Products Other Function Identifying opportunities Promoting products and services Planning marketing activity

RELEVANCE OF MARKETING IN DEVELOPING ECONOMY • • • Marketing impact in people Improved quality of product Acceleration of economic growth Provide job opportunities Development of managers and entrepreneurs Improved quality of life Contribute to grows national product Economic resuscitation and business turnaround Industrial development Development of small scale industries Large scale consumption

PROBLEMS OF MARKETING IN DEVELOPING ECONOMIES • Low marketing education • Preference foreign products • Low patronage for non essential products and services • High cost of production • Inadequate infrastructure • Few competitive opportunities • Over regulation of business by government • Political instability and civil unrest

DIFFERENCE BETWEEN SALES AND MARKETING Basis of Difference Selling Marketing Emphasis on product Emphasis on consumer needs and wants Approach Company manufactures the product first and then decides to sell it Company firest determines customers needs and wants and then decides on how to deleiver a product to satisfy these wants Orientation Management is sales volume oriented Planning Need priority Philosophy Technology Management is Profit Oriented Planning is long term oriented in terms of new Planning is short term oriented in terms of products, tomorrows markets and future todays products and markets growth Stresses needs of a seller Stresses needs and wants of buyers Views business as a goods producing views business as a consumer satisfying process Emphasiis on staying with existing technology and reducing cost emphasis on innovation in every sphere, on providing between value to the customer by adopting a superior technology

MEANING AND DEFINITION OF MARKETING MANAGEMENT • Marketing management is a compound word ‘Marketing plus management’. Marketing is the total system of business activities while management is the art of getting things done in a coordinated and harmonious way. • Marketing management is the process if planning and executing the conception, pricing and promotion and distribution of goods, services and ideas to create exchanges with target groups that satisfy customer and organizational objectives. Philip Kotler

OBJECTIVES OF MARKETING MANAGEMENT Creating new customers Raising the standard of living of the people Satisfying the needs of customers Determining the marketing mix Enhancing the profitability of the business

MARKETING MANAGEMENT PROCESS Setting Marketing Objective Organizing, implementing and controlling the marketing effort Analyzing Marketing Opportunities Planning marketing programs Researching and selecting target Designing marketing strategies

MARKETING CONCEPTS: MARKETING , MANAGEMENT ORIENTATIONS Ma Co rketi nc ng ep t tal cie g So rketinpt Ma nce Co Pro Co duct nc ion ep t g in t l l Se ncep Co Product Concept

PRODUCTION CONCEPT • Production concept is a concept where goods are produced without taking into consideration the choices or tastes of the customers. • The production concept is the management philosophy, which believes and operates with the guiding force that the consumer will prefer those products which are conveniently available in adequate quantity and are affordable • There is fair amount of competition and competing products are sold with complete knowledge of the products available in market. • The manufacturers should maintain availability of sufficient quantity of products and consistency in quality.

PRODUCT CONCEPT • The product concept is management philosophy that consumers generally prefer those products in the market which offer the best in terms of quality and price and essentially all organisations in marketing business try to produce and provide sustainable improved quality products. • The product concept is somewhat different from production concept. Whereas the production concept seeks to win markets and profits via high volume of production and low unit costs of production, the product concept seeks to achieve the same result via product excellence.

SELLING CONCEPT • Many organisation follow the selling concept, which holds that consumers will not buy enough of the organisation's products unless it undertakes a large scale selling and promotion effort. • The selling concept is a management philosophy based on the premises that consumers generally do not buy products that are not essential or don not buy in sufficient quantity unless the organisation itself puts efforts to create awareness and interest of the consumer in its products and makes them inclined positively to buy these products.

MODERN MARKETING CONCEPT • The marketing concept as the management philosophy emerged in 1950 s and early 1960 s, when the organisation started working out in different segments of the market and found that market characterises and their needs are not similar, they are not static and changing with time and place. • The marketing concept is a management philosophy that focuses on the needs and wants of the customers of the target markets and the organisation would need to find products and services that will prove to be useful solution to solve the requirement of such needs and wants and deriving the satisfaction of the customers.

FACTOR INFLUENCING MODERN MARKETING CONCEPT Credit purchase Technological development Surplus income Disposal income Increasing households Population growth Mass communication media

LIMITATIONS OF MODERN MARKETING CONCEPT Marketing concept as an ideology Marketing and society Marketing as a constraint on innovation Internal disagreement Organizational constraints Societal constraints Conflicting Obectives

SOCIETAL MARKETING CONCEPT • The societal marketing concept is an enlightened marketing concept that holds that a company should make good marketing decisions by considering consumers wants, the company’s requirements, and society’s long term interests. It is closely linked with the principles of corporate social responsibility and of sustainable developments. • Societal marketing place emphasis on the long-term well being of society as a whole, incorporating this goal into the overall marketing plan of a company. • The societal marketing concepts calls on marketers to balance three considerations in setting their marketing policies-company profits, consumer wants, and society’s interests.

HOLISTIC MARKETING CONCEPT • Holistic marketing concept is a part of the series on concepts of marketing and it can be defined as a marketing strategy which considers the business as a whole and not as an entity with various different parts. • According to holistic marketing concept, even if a business is made of various departments, the departments have to come together to project a positive & united business image in the minds of the customer. Holistic marketing concept involves interconnected marketing activities to ensure that the customer is likely to purchase their product rather than competition.

KEY CONCEPT OF HOLISTIC MARKETING CONCEPT • Internal marketing – Marketing between all the departments in an organization • Relationship marketing – Building a better relationship with your customers, internal as well as end customers is beneficial for holistic marketing. • Performance marketing – Driving the sales and revenue growth of an organization holistically by reducing costs and increasing sales. • Integrated marketing – Products, services and marketing should work hand in hand towards to growth of the organization.