MARKETING MANAGEMENT

MARKET
Originates from the Latin word MARCATUS It means: A Place where business is conducted. OR A place where buyers & Sellers personally interact & finalise the deal. Acc to Definition: Market is a place or region in which buyers & sellers Functions.

CONTD.
Aggregate of condition within which buyers & sellers make decision that result in the transfer of goods & services. Aggregate of demand of the potential buyers of goods & services. Marketing is not only advertisement, sales promotion, Business research or merely selling along with this it is demand generation and above this it is a concept, process and managerial function.

DEFINING

Acc to Kotler:Margeting Management is the analysis, planning, implementation & control of programmes designed to bring about desired exchange with target audiences for the purpose of mutual or personal gain. It relies heavily on the adaption & co-ordination of product, price, promotion & place for achieving effective response

MEANING OF MARKETING
Marketing is the basic reasons for the existence of a business organisation. It is a powerful mechanism which alone can satisfy the needs & wants of consumers at the place & price they desire. The success of a business depends largely on the effectiveness with which its marketing strategies are formulated & implemented. Marketing helps in having a good range of products in constant demands & suggests to the management the scope for improving & developing new products to satisfy the changing customer needs.

TRADITIONAL
Communication

Goods / Services

Industry (A collection of Sellers)

Money

Market (A collection of Buyers)

Information

Elements of a Modern Marketing systems

Company

Supplier
Competitors

Marketing Intermediaries

Final Consumers

KEY CUSTOMER MARKETS

Consumer Markets Business Markets

Global Markets
Government Markets & Non Profit

WHO IS THE KING OF THE MARKET NOW A DAY ?

CUSTOMER
CUSTOMER Top Mgmt Front Line People

Middle Mgmt
Front Line People

Middle Mgmt

Top Mgmt CUSTOMER Modern Customer- Oriented Organisation Chart

Traditional Organisation Chart

DIFF B/W NEED, WANT & DEMAND

Need
Need are the basic human requirement. eg. Air, food, water, clothing & shelter to survive. NEED BECOME WANTS

Want

When they are directed to specific objects that might satisfy the need. USA: Hamburger, French-fries, Soft drink INDIA: Chapattis, rice, curry etc.

CONTD

Demand
Are wants for specific product backed by an ability to pay. Companies not only measure how many people want their product, but also how many actually be willing to buy their product. E.g., Mercedes, only a few are willing and able to buy one.

Marketers spends time and money for a market research to understand the customers needs, wants, and demands.

CONTD

Customer decide what product suit their need. So, Marketing satisfies our need by providing utility. Utilities are:
Form

Utility Person Utility Exchange Utility Place Utility Time Utility

CONTD

Form Utility
Raw Material

Converting into Finished Goods

Understanding Customer Requirement

Person Utility
Establish Contact

Marketer

Customer

CONTD

Exchange Utility
Seller

Transfer Goods Buyers

Place Utility
Channels of Distribution
Physical distribution & Logistic

Customers

CONTD

Time Utility
Warehousing

Making Available goods when needed creating time utiliy

Customers

MARKETING AS A CONCEPT
Mahatma Gandhi preached customer is the king- product and services satisfy the needs of the customer The Essences of this is: A) Customer oriented concept B) Competition oriented C) Ability to respond to environmental changes

DIFF B/W MARKETING & SELLING

MARKETING

SELLING

Customer Wants Aimed at consumer Volume of profits It is for long run (Marketing place new products, tomorrows markets & future growth). Emphasis on the buyers needs

Focuses on product Aim of business or money Focuses on the volume of sales Planning is for the short run / for todays product & market Mainly emphasis on the sellers needs.

CONTD
MARKETING
Identifying Consumer Need

SELLING
Produce what Manufacture feel appropriate

Developing an appropriate product /service to attain consumer satisfaction

Emphasis only on higher sales volume

Accomplish organisational goals through integrated marketing approach

Consumption (By-End User)

MARKETING AS A PROCESS-HOW?
Process of marketing involves an exchange of transactions between buyer and seller The Essences of this is: A) Marketing is an exchange process B) Both buyer & seller must gain C) Todays competitive world it should rest in long term satisfying relationship between both of them.

MARKETING PROCESS
Figure 1

Capture value from Customers to Create profits and Customer quality

Build profitable Relationships and Create customer delight

Construct a Marketing program That delivers Superior value Design a Customer-driven Marketing strategy Understand The marketplace And customer needs And wants

MARKETING AS A MANAGERIAL FUNCTION

The Essences of this is: A) Understanding consumer needs B) Environmental scanning & market opportunity analysis C) Development of competitive plans & strategy D) Implementation of marketing plans & development of tactical plans to overcome problems at the market E) Development of control mechanism

ROLE OF MARKETING IN MODERN ORGANISATION

Main role is of integrating the needs & wants of the customers to other organisation functions like production, R&D, finance, personnel etc. Marketing performs the role of integration

INTEGRATIVE FUNCTION OF MARKETING

Today marketing is not a function of one department Responsibility to market the products & to expand the market & maintain the market share rests on every individual in the organization.

OBJECTIVES OF MARKETING

Main Objective:
Demand generation Match the demand with supply position of the company Satisfaction of Human Need.

Other Objectives are:

To develop the marketing field. To develop guiding policies & their implementation for a good result. To suggest solution by studying the problems relating to marketing. To revive existing marketing function, if something are found.

CONTD

To take appropriate action in the course of action. To determine the Marketing Mix. To satisfy needs & wants of customers. To raise the standards of life.

NATURE OF MARKETING

Marketing is both Consumer-Oriented & CompetitorsOriented. It starts with customers & ends at Customers. Marketing is the most important function of Management. Long term objective of marketing is profit maximisation through Customer Satisfaction. It is a integrated process. (strategies & model)

CONTD

It must deliver Goods/Services in exchange of money. It emphasises the necessity of Consumer-orientation of the entire business. It reflects the business mission of a firm. It has universality. Marketing increases the standard of living of the society.

SCOPE OF MARKETING
1.

Managerial Activities

2.

Functional Activities

MANAGERIAL ACTIVITIES

Determing Marketing Objectives

Planning the Marketing Function Organising the Marketing Function Staffing the Marketing Function

CONTD

Directing the Marketing Function Co-ordinating the Marketing Function Contolling the Marketing Function Analysing & Evaluating the Marketing Function

FUNCTIONAL ACTIVITIES

Marketing Research
Product Planning & Development Buying & Assembling Selling

CONTD

Transportation
Storage & Warehousing Standadisation & Grading Branding & Packaging

CONTD

Pricing & Discount Policies Financing Advertising After Sales Services

IMPORTANCE OF MARKETING

For the Firm/Manufacturer For the Consumers For the Society

As a Business Function
In the Developed Economy

FOR THE FIRM/MANUFACTURER

Helpful in Business Planning & Decision Making

Helpful in Distribution Helpful in Increasing Profits Helpful In Communication b/w Firm & Society

FOR THE CONSUMERS

Increase in Customer Satisfaction

Facilitates Choice Increase in Knowledge Providing Good Quality Product

CONTD

Price Stabilisation
Increase in Standard of Living

FOR THE SOCIETY

Provide Employment
Increase in National Income Reduction in Distribution Cost Protection from Depression

AS A BUSINESS FUNCTION

Bases for Business Function

Creation of Utility Bases for Economic Activities Production of Socially Useful Products

IN THE ECONOMIC DEVELOPMENT

Pre-Industrial Stage
Early-Industrial Stage Industrial Stage Post-Industrial Stage