The marketing has a remarkable change from its primitive barter system to the present day

management oriented approach of marketing.

Barter systemProduction Orientation

Sales orientation

Managementorientation

Customer Orientation

Evolution process of marketing

Recent marketing innovations

1. 1.SOCIAL MARKETING: The societal marketing concept calls for a consumer orientation backed by integrated marketing aimed at generating customer satisfaction.

2. DEMARKETING: It is a situation that may come about as a result of temporary storage due to short run excess demand for a company’s products.

3. REMARKETING: Finding new customers or create new uses or users for an existing product is remarketing.

4. OVER MARKETING: It constitutes the striving by a firm to generate increased sales while neglecting quality control, production efficiency and cash flow management.

5 .META- MARKETING: Prof. Kelly EJ, first used this concept .Meta marketing is to designate a new, although related discipline which deals critically with marketing as a discipline.

6. RELATIONSHIP MARKETING :In this approach , marketing has to keep in touch with regular customers , to identify most loyal out of them for providing special services.

7. AUGMENTED MARKETING: A set of benefits in the shape if additional customer services like high tech .services offered to customer in the augmented marketing.

8 .ORGANISATION MARKETING: It consist of certain activities undertaken to create , maintain or ,change attitudes and behavior if target audiences towards an organisation.The activities towards particular people is person marketing.

Difference between selling & Difference between selling & marketingmarketing

1. It revolves around the 1. It revolves around the needs and interests of the needs and interests of the seller.seller.

2. It starts with the existing 2. It starts with the existing products of the corporation products of the corporation and views business as a task and views business as a task of some how pushing the of some how pushing the existing products of the existing products of the corporation. corporation.

3. Selling seeks profits by 3. Selling seeks profits by pushing the products on the pushing the products on the buyers. It means the product buyers. It means the product is the main item in this is the main item in this activity.activity.

4. Over emphasises the 4. Over emphasises the ‘exchange’ aspect with out ‘exchange’ aspect with out caring for the value caring for the value satisfaction inherent in the satisfaction inherent in the exchange.exchange.

5. It is an approach to derive 5. It is an approach to derive and attain short term goals.and attain short term goals.

1. It revolves around the needs and 1. It revolves around the needs and interests of the seller.interests of the seller.

2. It starts with the customers, 2. It starts with the customers, present and potential, and views present and potential, and views business as a task of meeting the business as a task of meeting the needs of the customers by needs of the customers by producing and supplying products producing and supplying products and services that would exactly and services that would exactly meet the needs of the customers.meet the needs of the customers.

3. Marketing too seek profits-but 3. Marketing too seek profits-but not through aggressive pushing not through aggressive pushing of the products by meeting the of the products by meeting the needs of the customers and needs of the customers and giving satisfaction to them. It giving satisfaction to them. It means the consumer and his means the consumer and his choices are given prime choices are given prime considerations in this function.considerations in this function.

4. Concern mainly with the value 4. Concern mainly with the value satisfaction, that should flow to satisfaction, that should flow to the customer from the exchange.the customer from the exchange.

5. It represents an integrated 5. It represents an integrated approach to achieve long term approach to achieve long term goals. goals.

SELLING MARKETING

6. It is an activity that 6. It is an activity that converts goods in to converts goods in to cash.cash.

7. The main emphasises 7. The main emphasises on staying with the on staying with the existing technology and existing technology and reducing the cost of reducing the cost of production. production.

8. Costs determine price. 8. Costs determine price.

9. Different departments 9. Different departments of the business operate of the business operate as a separate water-as a separate water-tight compartments.tight compartments.

10. It ends with the 10. It ends with the delivery of goods delivery of goods against money.against money.

6. It is a function that 6. It is a function that converts the needs into converts the needs into products.products.

7. For providing better 7. For providing better value to the customer, value to the customer, the main emphasises on the main emphasises on innovation in every innovation in every sphere i.e., by adopting sphere i.e., by adopting the most innovative the most innovative technology.technology.

8. Consumer determines 8. Consumer determines price: Price determines price: Price determines cost. cost.

9. All departments of the 9. All departments of the business operate in a business operate in a highly integrated highly integrated manner.manner.

10. It is a creation and 10. It is a creation and delivery of a standard of delivery of a standard of living to society.living to society.

Marketing Mix

Product

Product variety

Quality

Design

Features

Brand name

Packaging

Sizes

Services

Warranties

returns

Price

List price

Discounts

Allowances

Payment period

Credit terms

Promotion

Sales promotion

Advertising

Sales force

Public relations

Direct marketing

Place

Channels

Coverage

Assortments

Locations

Inventory

transport

Target market

The other three P’s areThe other three P’s are

►People People ►Place(Physical Evidence)Place(Physical Evidence)►ProcessProcess

IMPORTANCE OF MARKETING IMPORTANCE OF MARKETING MANAGEMENTMANAGEMENT

► Marketing function is considered important on account of the Marketing function is considered important on account of the following contribution:following contribution:

► Marketing concept enables the organization to keep abreast of Marketing concept enables the organization to keep abreast of changes. An organization practicing the concept keeps feeling the changes. An organization practicing the concept keeps feeling the pulse of the market through continuous marketing audit, market pulse of the market through continuous marketing audit, market research and consumer testing.research and consumer testing.

► The purpose of any marketing concept is the satisfaction of The purpose of any marketing concept is the satisfaction of consumers. It is the customer who willing to pay for g & s, consumers. It is the customer who willing to pay for g & s, converts economic resources into wealth, things into goods. All converts economic resources into wealth, things into goods. All economic activities like production, distribution & consumption are economic activities like production, distribution & consumption are independent on marketing.independent on marketing.

► Another distinguishing feature of the marketing concept is Another distinguishing feature of the marketing concept is integrated management action i.e., all the different functions of integrated management action i.e., all the different functions of the business must be tightly integrated with one another, keeping the business must be tightly integrated with one another, keeping marketing as a pivot.marketing as a pivot.

► An efficient marketing set-up increases the volume of sales and An efficient marketing set-up increases the volume of sales and thus reduces the cost of distribution of products and services.thus reduces the cost of distribution of products and services.

► A marketing function maintains a regular interaction with the A marketing function maintains a regular interaction with the existing and potential consumers to ascertain their needs.existing and potential consumers to ascertain their needs.

► Marketing has been described as a means of helping man as a Marketing has been described as a means of helping man as a member of society and as a means of delivering a better standard member of society and as a means of delivering a better standard of life to society as a whole. of life to society as a whole.

► It creates an infra-structure of various activities viz., warehousing, It creates an infra-structure of various activities viz., warehousing, insurance, transportation e.t.c. due to which employment insurance, transportation e.t.c. due to which employment opportunities increase. opportunities increase.

Scope/Function of marketing Scope/Function of marketing managementmanagement

► Accessing the marketing opportunities.Accessing the marketing opportunities.► Planning the marketing activities.Planning the marketing activities.► Providing the effective marketing organization. Providing the effective marketing organization. ► Organizing and monitoring the stocks at optimum Organizing and monitoring the stocks at optimum

level so that the customer demand may meet level so that the customer demand may meet without any difficulty.without any difficulty.

► Organizing and maintaining the effectiveness in Organizing and maintaining the effectiveness in the activity of sales promotion, advertisement, the activity of sales promotion, advertisement, credit control and services after sales. credit control and services after sales.

► Evaluating and adjusting marketing efforts.Evaluating and adjusting marketing efforts.

Marketing management sets marketing objectives, developing marketing plans organizes marketing functions, puts marketing plans and strategies in action and monitors the marketing programs in the final analysis. According to the scope of marketing managements powers the following activities like-

The marketing functions are built around the process of marketing involving concentration, equalization and dispersion.

The marketing process

Concentration

•Buying or Assembling

•Transporting

•Storing

•Grading

•Financing

•Risk bearing

Dispersion

•Selling

•Transporting

•Storing

•Grading

•Financing

•Risk bearing

•Dividing

Basing on the different classifications given, finally we classified the marketing functions as

Marketing Functions

Merchandising

(functions of exchange)

•Selling

•Buying &advertising

Physical

Distribution

•Storage

•Transportation

Other functions

•Standardizing &grading

•Financial

•Risk bearing

•Market information

•Market promotion

•Packaging

•Product planning & development

•Personal selling

MARKETING CONCEPTKeegan says “marketing is the process of focusing the resources and objectives of an organization on environmental opportunities and needs…”.It is a concept, a business and a set of objectives ,as given below.

a) Marketing concept

b) Marketing activities

c) Marketing process

Marketing concept

concept old/new

focus means end

Productservices

Customercompetition

sellingIntegratedMarketingactivities

ProfitVia

sales

ProfitVia

Customer satisfaction

Marketing Concept

Marketing ActivitiesMarketing Activities

►Product precisionProduct precision►Pricing decisionPricing decision►Distribution decisionDistribution decision►Communication decisionCommunication decision►ResearchResearch►Services Services

Marketing Management Marketing Management ProcessProcess

►Marketing is the process of focusing Marketing is the process of focusing the resources and objectives of an the resources and objectives of an organization upon opportunities in organization upon opportunities in the environment.the environment.

Ways of satisfaction of customer Ways of satisfaction of customer wantswants

selling

advertising

service

production distribution

price

Brand name

package

product

customer

Company orientation towards Company orientation towards market placemarket place

►The production conceptThe production concept►The product conceptThe product concept►The selling conceptThe selling concept►The marketing conceptThe marketing concept►The customer conceptThe customer concept►The societal marketing conceptThe societal marketing concept

The production concept, holds that consumers will prefer products that are widely available and inexpensive .

The product concept, which holds that consumers will favor those products that offer most quality, performance, or innovative features.

The selling concept, holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s product.

The marketing concept, holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating,delivering,and communicating superior customer value to its chosen target markets.

The societal marketing concept, holds that the organizations task is to determine the needs,wants,and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and society's well-being.

The marketing conceptThe marketing concept

► Target marketTarget market► Customer marketCustomer market► Integrated Integrated

marketingmarketing► profitabilityprofitability

Nature, importance and scope of Nature, importance and scope of strategic planningstrategic planning

► Serves as a record map for the Serves as a record map for the corporationcorporation

► Lays down the growth objectives Lays down the growth objectives of the firm and also provides the of the firm and also provides the strategies needed for achieving strategies needed for achieving them.them.

► Serves as a hedge against Serves as a hedge against uncertainty arising from uncertainty arising from environmental turbulence.environmental turbulence.

► Ensures that the firm remains a Ensures that the firm remains a prepared organization.prepared organization.

► Helps the firm understand trends Helps the firm understand trends in advance and provides the in advance and provides the benefit of a lead time for taking benefit of a lead time for taking crucial decisions and actions.crucial decisions and actions.

► Helps avoid haphazard response Helps avoid haphazard response to environment.to environment.

► Provides the best possible fit Provides the best possible fit between the firm and the external between the firm and the external environment.environment.

► Ensures that the firm’s Ensures that the firm’s businesses,porducts and businesses,porducts and markets are chosen wisely.markets are chosen wisely.

► Ensures best utilisation of Ensures best utilisation of the firm’s resources the firm’s resources among the product-market among the product-market opportunities.opportunities.

► Helps build competitive Helps build competitive advantages and core advantages and core competencies.competencies.

► Prepares the firm to not Prepares the firm to not only face the future but only face the future but even to shape the future in even to shape the future in its favor ;helps the firm its favor ;helps the firm influence its mega influence its mega environs in its favour to environs in its favour to the extent possible.the extent possible.

► Draws from both intuition Draws from both intuition and logic.and logic.

Major concerns of strategic Major concerns of strategic planningplanning

► FutureFuture Long term dynamics in Long term dynamics in its concern;not day-to-its concern;not day-to-day tasks.day tasks.

► Growth Growth Direction,extent,place Direction,extent,place and timing of growth.and timing of growth.

► EnvironmentEnvironment The fit between the The fit between the business and its business and its environment.environment.

► Business portfolioBusiness portfolio Product-market scope Product-market scope and gestures.and gestures.

► StrategyStrategy Strategy is its Strategy is its concern;not the concern;not the operational activities.operational activities.

► IntegrationIntegration Integration of all Integration of all management management functions is its functions is its concern;not a concern;not a particular function.particular function.

► Creating core Creating core competencies competencies /competitive /competitive advances, Creating advances, Creating long-term,sustainable long-term,sustainable organizational organizational capability is its capability is its concern.concern.

► Corporate strategyCorporate strategy In one In one

word ,corporate word ,corporate strategy is its concern.strategy is its concern.

Component tasks in strategic Component tasks in strategic planningplanning

►Clarifying the mission of the Clarifying the mission of the corporationcorporation

►Defining the businessDefining the business►Surveying the environmentSurveying the environment►Internal appraisal of the firmInternal appraisal of the firm►Setting the corporate objectivesSetting the corporate objectives►Formulating the corporate Formulating the corporate

strategiesstrategies

Purpose of marketing Purpose of marketing environment analysisenvironment analysis

► To know were the To know were the environment is heading; to environment is heading; to observe and size up the observe and size up the relevant events and trends relevant events and trends in the environment.in the environment.

► To discern which events To discern which events and trends are favourable and trends are favourable from the standpoint of the from the standpoint of the firm, and which are firm, and which are unfavourable;to figure out unfavourable;to figure out the opportunities end the opportunities end threats hidden in the threats hidden in the environmental events and environmental events and trends.trends.

► To project how the To project how the environment –each factor environment –each factor of the environment-will be of the environment-will be at a future point of timeat a future point of time

► To assess the scope of To assess the scope of various opportunities and various opportunities and shortlist those that can shortlist those that can favorably impact the favorably impact the businessbusiness

► To help secure the right fit To help secure the right fit between the environment between the environment and the business unit, and the business unit, which is the crux of which is the crux of marketing ;to help the marketing ;to help the business unit respond with business unit respond with matching product –market matching product –market stratigies;to facilitate stratigies;to facilitate formulation of a marketing formulation of a marketing strategy in the right way-in strategy in the right way-in line with the trends in the line with the trends in the environment and the environment and the opportunities emerging opportunities emerging thereintherein

Factors to be covered under Factors to be covered under environment analysisenvironment analysis

► Demographic Demographic environmentenvironment

► Socio-cultural Socio-cultural environmentenvironment

► Economic Economic environmentenvironment

► Political environmentPolitical environment► Natural environmentNatural environment► Technology Technology

environmentenvironment► Legal environmentLegal environment► Government policiesGovernment policies

► The market/demandThe market/demand► The consumerThe consumer► The industryThe industry► The competitionThe competition► Government Government

policies(specific to the policies(specific to the business concerned)business concerned)

► Supplier-related Supplier-related factorsfactors

1.Mega/macro environment 2.Environment that is specific to the business

Factors to be covered under Factors to be covered under economic environmenteconomic environment

► General economic General economic conditionsconditions

► Economic conditions of Economic conditions of different segments of the different segments of the population; their population; their disposable income, disposable income, purchasing power,etc.purchasing power,etc.

► Rate of growth of the Rate of growth of the economy ,rate of growth of economy ,rate of growth of each sector of the each sector of the economyeconomy

► Income,prices,and Income,prices,and consumption expenditure consumption expenditure (size and pattern)(size and pattern)

► Credit availability and Credit availability and interest ratesinterest rates

► Savings rate/capital Savings rate/capital formationformation

► Inflation rateInflation rate► Behaviour of capital Behaviour of capital

marketsmarkets► Foreign exchange reservesForeign exchange reserves► Exchange ratesExchange rates► Tax ratesTax rates► Prices of important Prices of important

materialsmaterials► Energy Energy

scene(cost,availability,etc.)scene(cost,availability,etc.)► Labour scene(cost,skill Labour scene(cost,skill

availability,etc.)availability,etc.)

Analysis of the consumer Analysis of the consumer behaviourbehaviour

► According to the firm, what According to the firm, what is the basic need the is the basic need the product serves?product serves?

► According to the consumer, According to the consumer, what is the need it serves?what is the need it serves?

► What constitute customer What constitute customer value in the business as per value in the business as per their perception?their perception?

► What benefits do the What benefits do the consumers look for in the consumers look for in the product?product?

► Of the many benefits they Of the many benefits they look for, what are their look for, what are their preferences/priorities/rankinpreferences/priorities/rankings? who are the gs? who are the consumers(number,location,consumers(number,location,etc.)etc.)

► Purchasing power of the Purchasing power of the consumers.consumers.

► Buying behaviour,buying Buying behaviour,buying motives, buying habits.motives, buying habits.

► Personality traits/attitudesPersonality traits/attitudes► Lifestyles and needs; Lifestyles and needs;

present position and present position and trends.trends.

► Brand loyalty.Brand loyalty.► Reasons/motives for Reasons/motives for

customer’s patronage of customer’s patronage of specific brands.specific brands.

► Brand shifting; how Brand shifting; how loyalties are shifting.loyalties are shifting.

► Reactions of the customers Reactions of the customers to the company’s and to the company’s and competing products.competing products.

► Who among the Who among the competitors remains competitors remains closest to the customer closest to the customer and why?and why?

Factors to be monitored

THE SEA CHANGE IN THE INDUSTRIAL, THE SEA CHANGE IN THE INDUSTRIAL, BUSINESS AND MARKETING BUSINESS AND MARKETING

ENVIRONMENTENVIRONMENTI.ENTERPRENEURIAL FREEDOM VITALISES THE INDUSTRIAL SCENEI.ENTERPRENEURIAL FREEDOM VITALISES THE INDUSTRIAL SCENE► Rush of entrepreneurs.Rush of entrepreneurs.► Spate of mergers/acquisition/takeovers; corporate enhance size Spate of mergers/acquisition/takeovers; corporate enhance size

and synergy.and synergy.► The diversification Rush.The diversification Rush.II. FDI GOES UP AND INFLUENCES INVESTMENT PATTERN IN II. FDI GOES UP AND INFLUENCES INVESTMENT PATTERN IN

INDUSTRIESINDUSTRIESIII. ASCENDANCY OF MULTINATIONALS IN THE INDIAN MARKETSIII. ASCENDANCY OF MULTINATIONALS IN THE INDIAN MARKETS► MNCs acquire majority equity in their Indian enterprises and MNCs acquire majority equity in their Indian enterprises and

JV’s.JV’s.► Many MNC’s enter India anew.Many MNC’s enter India anew.► MNCs become big players even in core industries.MNCs become big players even in core industries.IV. BANKING SECTOR COMES UNDER COMPETITIVE ENVIRONMENTIV. BANKING SECTOR COMES UNDER COMPETITIVE ENVIRONMENT► Competitive existence foisted by deregulation.Competitive existence foisted by deregulation.► Onslaught from new private sector banks (NPSBs) with superior Onslaught from new private sector banks (NPSBs) with superior

technology and aggressive marketing.technology and aggressive marketing.► Capital markets, FIs, MFs, and NBFCs compete with banks.Capital markets, FIs, MFs, and NBFCs compete with banks.► Public sector banks, in particular common under severe Public sector banks, in particular common under severe

pressure; they are compelled to operate as viable, commercial pressure; they are compelled to operate as viable, commercial institutions.institutions.

► Travails arising from disinvestment.Travails arising from disinvestment.

V.V. INSURANCE SECTOR TOO EXPERIENCES COMPETITION, WITH NEWINSURANCE SECTOR TOO EXPERIENCES COMPETITION, WITH NEW PRIVATE PLAYERSPRIVATE PLAYERS

► Constituted IRDA.Constituted IRDA.► IRDA issues licenses/ in-principle clearance to several private IRDA issues licenses/ in-principle clearance to several private

players and many of them start operations.players and many of them start operations.VI.VI. CAPITAL MARKETS UNDERGO RADICAL CHANGECAPITAL MARKETS UNDERGO RADICAL CHANGE► FIIs enter Indian capital markets in a big way.FIIs enter Indian capital markets in a big way.► Foreign brokers closely follow the FIIs.Foreign brokers closely follow the FIIs.► NBFCs register growth and form alliances with global finance NBFCs register growth and form alliances with global finance

companies.companies.► Growth of private mutual funds.Growth of private mutual funds.► Indian firms raise capital globally and form alliances with global Indian firms raise capital globally and form alliances with global

finance firms.finance firms.► India’s capital markets get integrated with global capital markets.India’s capital markets get integrated with global capital markets.VII.VII. FINANCIAL SERVICES EMERGE AS A MAJOR BUSINESSFINANCIAL SERVICES EMERGE AS A MAJOR BUSINESS► Emergence of many new financial services and financial service Emergence of many new financial services and financial service

companies.companies.► Business firms spot financial services as a business and flat Business firms spot financial services as a business and flat

financial service companies of their own.financial service companies of their own.VIII.VIII. PRIVATE SECTOR BECOMES THE DOMINANT COMPONENT OF THEPRIVATE SECTOR BECOMES THE DOMINANT COMPONENT OF THE

ECONOMYECONOMY► Even in core/infrastructure areas, sector after sector, opened up to Even in core/infrastructure areas, sector after sector, opened up to

private enterprises: Oil, mining, telecom, road building, railways, private enterprises: Oil, mining, telecom, road building, railways, ports, civil aviation, EPZ/SPZ, difference production, all now ports, civil aviation, EPZ/SPZ, difference production, all now opened to the private sector.opened to the private sector.

► Import trading becomes a fresh business opportunity for the Import trading becomes a fresh business opportunity for the private sector.private sector.

Market segmentationMarket segmentationSegmentation is the process of partitioning markets into groups of potential customers with similar needs and/or characteristics who likely to exhibit similar purchase behaviour.

The process of dividing a total market into sub group of consumers who exhibit differing sensitivities to one or more marketing mix variables.

Market segmentation is a marketing approach that encompasses the identification Of different groups of customers with different needs or responses to marketing activity. the market segmentation process also considers which of these segments to target.

Market PositioningMarket Positioning► It is the technique by which marketers try It is the technique by which marketers try

to image on identity for a product, brand, to image on identity for a product, brand, or organization. It is the ‘place’ a product or organization. It is the ‘place’ a product occupies in a given market as perceived occupies in a given market as perceived by the target market.by the target market.

► Positioning is something that is done in the Positioning is something that is done in the minds of the target market.minds of the target market.

► A product position is how potentially A product position is how potentially buyers see the product.buyers see the product.

► Positioning is expressed in relative to the Positioning is expressed in relative to the position of competitors.position of competitors.