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  1. 1. Marketing Management Notes By: Harpreet Singh Assistant Professor Sun Institute of Management & Technology Shahjahanpur
  2. 2. Unit 1 Definition of marketing: According to American marketing Association, Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and foe managing customer relationships in ways that benefit the organization and its stakeholders. Nature of Marketing Management: The nature of marketing is as follows: I. Specialized Business Function: In early days, the selling function did not call for any specialized skills as the sales could have been affected on production basis. But now the business environment has undergone tremendous changes in social, economic, political, and cultural aspects. Therefore the management of a firm has to develop a specialized department with a view to absorbing new ideas, new approaches and new market demands with the occurring and expected changes. II. Socially desirable function: It requires constant interaction with various strata of society. It is instrumental in manipulating the factors of production, distribution, promotion and price. III. Integrative function: It integrates and combines the other business functions like production, finance, personnel, R&D etc with a view to accomplishing the organizational goals. IV. Reflects the business mission: Marketing reflects the business goals and aims of a firm before the public and society. V. Universal Function: It has a universality in the sense that it can be applied to both profit- motive and non-profit motive organizations. A profit seeking business is essentially dependent on marketing and institutions like hospital, schools, university also practice marketing in popularizing the services offered by them VI. Management Function: The business policies, strategies and programs related to marketing are mostly of managerial functions. These are needed to be planned, organized, directed, coordinated and controlled so as to achieve the marketing objectives of the firm. Scope of Marketing
  3. 3. The scope of marketing is as follows: I. Goods: Physical good constitute the bulk of most countries production and marketing effort. In developing nations, goods particularly food, commodities, clothing and housing are the mainstay of the economy. II. Services: Services include the work of airlines, hotel, car rentals, hospitals, schools, as well as professional working within or for companies, such as accountants, lawyers, engineers, doctors, software programmers and management consultants. III. Experiences: By orchestrating several services and goods, one can create and stage different market experience. IV. Events: Marketers promote time-based events such as the Olympics, company anniversaries, major trade shows, and sports events. There is a whole profession of event planners who work out the details of an occasion and stage it come off perfectly. V. Persons: Celebrity marketing has become a major business. Today every film star has an agent, a personal manager and ties to a public relations agency. Cricketers, artists, musicians, CEOs, Physicians, and other professionals are drawing help from celebrity marketers. VI. Places: Places- cities, states, regions, and whole nations- compete actively to attract tourists, factories, company headquarters and new residents. Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relation agencies. VII. Properties: Properties are tangible rights of ownership of either real property or financial property. Properties are bought and sold, and this occasions a marketing effort. Real estate agents work for property owners or seekers to sell or buy residential or commercial real estate and arrange rental properties off-shore. VIII. Organisations: Organisations are actively work to build a strong, favorable image in the mind of their publics. We see corporate identity ads by companies seeking more public recognition and acceptance. IX. Information: Information can be produced and marketed as a product. This is essentially what schools and universities produce and distribute at a price to parents, students and communities. X. Ideas: Every market offering includes a basic idea at its core. Products and services are platforms for delivering some idea or benefit. Marketers search hard for the core need they are trying to satisfy. Importance of Marketing The importance of marketing management is as discussed below: Importance of Marketing to society: marketing can play a vital role for well being to society. The importance of marketing to society may be summarized under following heads:
  4. 4. i. Delivery of standard of living to the society: Chief obligation of marketing is to produce goods and services for the society according their needs and tastes at reasonable price. Firms produce the goods and services according to the customers needs, create demand for these goods and services, encourages customers to use them and thus improves the standard of living of the society. ii. Decrease in distribution cost: Marketing aims at reducing the cost of distribution as far as possible so that the commodities might be within the reach of maximum number of consumers. iii. Increase in employment opportunities: Employment opportunities are directly affected by the development of marketing. According to an estimate, about 40% of the labour force in developed countries like U.S.A., Japan, Canada, Germany, France etc is engaged in different activities of marketing such as marketing research, transport, communication, storage, warehousing, publicity, wholesale and retail trade. iv. Protection against business recession: Business slowdown causes unemployment, slackness in productivity and great loss to the economy. Marketing helps in protecting society against all the re-occurring problems. v. Increase in National Income: Successful operation of marketing activities creates, maintains and increases the demand for goods and services in the society. It results in the increased level of production and utilization of services which in turn enhance the scope of marketing. Importance of marketing to the firm: Marketing plays an important role for the well being of a firm. The importance of marketing to a business firm may be summarized under following heads: i. Helpful in business planning and decision making: Marketing is helpful in the overall business planning and taking various decisions regarding production and other activities in the business. A firm will produce what it can sell or as much quantity as it can sell and not what and how much it can produce. ii. Helpful in increasing profits: Every business is carried on with the profit motive. Marketing helps in increasing the business profits by reducing the selling cost on the one hand and by increasing the demand of the product through advertising and sales promotion activities on the other hand iii. Helpful in communication between firm and society: Business collects information regarding consumers behavior and changes therein from time to time through marketing. Marketing also provides information to the firm of the competitors, price policies, production policies, advertising and sales promotion policies and distribution policies. It helps the firm in framing its own policies or making necessary adjustments therein accordingly. Classification of Market
  5. 5. Markets have been classified on the basis of different approaches, in various ways as are given below: (1)On the basis of geographicalarea:There are four types of markets which are: i. National Market: For certain types of commodities, a country may be regarded as a market with the rapid speed of industrialization; it is called a national market. ii. International Market: world or international market comes up when buyers and sellers of goods evolve trans-globally, i.e. involvement of buyers and sellers beyond the boundaries of a nation iii. Regional Market: A regional market covers a particular region of a country. Such regional classification is found in a large country. For example India is divided into four regions, east, west, north, and south for all practical purposes. iv. Local Market: A local market has a very limited area and exists generally for daily necessary good perishable in nature like fish, vegetable etc. (2) On the basis of Nature of Transaction: There are two types of markets: i. Spot Market: In such a market, goods are exchanged and the physical delivery of goods takes place immediately for all practical purposes. ii. Future market: In such a market, contracts are made over the price for future delivery. The dealing and settlement take place on different dates. (3) Classificationaccording to position of sellers:There are three types of markets which are: i. Primary Market: The agricultural or industrial goods are sold by the producers to some middlemen like wholesalers. This is the primary market. ii. Secondary market: In the secondary market, the middlemen like the wholesalers sell the goods to another group of middlemen called the retailers. iii. Terminal Market: Ultimately the goods are sold in the terminal market to the actual consumers. (4) On the basis of commodities/Goods : There are four types of market: i. Produce Exchange Market: This type of market is found only in developed industrial centres or cities. One market deals in one commodity only. For Example: Wheat exchange market of Hapur and Cotton exchange market of Mumbai. ii. Manufactured Goods Market: Such type of market deals with manufactured goods. For example: Leather goods, machinery etc.
  6. 6. iii. Bullion Market: This type of market deals with the purchase or sale of gold, silver etc. Bullion markets of Mumbai, Kolkata, Kanpur etc are the example of bullion market. iv. Stock Mark