MARKETING MANAGEMENTManish 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

societyImportance of marketing

to the firm

IMPORTANCE OF MARKETING TO THE SOCIETY

Increase in

national

income

Protection

against

business

recession

Increase in

employment

opportunities

Decrease in

distribution

cost

Delivery of

standard of

living to the

society

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

marketers

Relationship

and

networks

Cost and

satisfactionProductsMarket

Exchange

and

transaction

Value

Needs,

wants and

demands

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

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

Secondary

Market

CLASSIFICATION ACCORDING TO COMMODITIES AND GOODS

Stock MarketBullion MarketManufactured

Goods market

Product

exchange

market

CLASSIFICATION ACCORDING TO NATURE AND DEGREE OF COMPETITION

Perfect market

Imperfect market

ON THE BASIS OF BUSINESS TRANSACTED

Retail market

Wholesale

market

Industrial

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 for 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 Emphasis on product Emphasis on consumer needs and wants

ApproachCompany 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 Management is Profit Oriented

PlanningPlanning is short term oriented in terms of

todays products and markets

Planning is long term oriented in terms of new products, tommorrows markets and future

growth

Need priority Stresses needs of a seller Stresses needs and wants of buyers

Philosophy Views business as a goods producing processviews business as a consumer satisfying

process

TechnologyEmphasiis 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 ofgetting 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 createexchanges 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

MARKETING CONCEPTS: MARKETING ,MANAGEMENT ORIENTATIONS

Product Concept

PRODUCTION CONCEPT

• Production concept is a concept where goods are produced without taking intoconsideration the choices or tastes of the customers.

• The production concept is the management philosophy, which believes andoperates with the guiding force that the consumer will prefer those products whichare conveniently available in adequate quantity and are affordable

• There is fair amount of competition and competing products are sold with completeknowledge of the products available in market.

• The manufacturers should maintain availability of sufficient quantity of products andconsistency 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 1950s and early 1960s,

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

Population

growth

Increasing

households

Disposal

income

Surplus income

Technological

development

Mass

communication

media

Credit

purchase

LIMITATIONS OF MODERN MARKETING CONCEPT

SOCIETAL MARKETING CONCEPT

• The societal marketing concept is an enlightened marketing concept that holds thata company should make good marketing decisions by considering consumerswants, the company’s requirements, and society’s long term interests. It is closelylinked with the principles of corporate social responsibility and of sustainabledevelopments.

• Societal marketing place emphasis on the long-term well being of society as awhole, incorporating this goal into the overall marketing plan of a company.

• The societal marketing concepts calls on marketers to balance three considerationsin setting their marketing policies-company profits, consumer wants, and society’sinterests.

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, internalas well as end customers is beneficial for holistic marketing.

• Performance marketing – Driving the sales and revenue growth of an organizationholistically by reducing costs and increasing sales.

• Integrated marketing – Products, services and marketing should work hand in handtowards to growth of the organization.