MARKETING MANAGAEMENT

by a. sandhya rani asst. prof.

MARKETING DEFINITIONS
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others. By Philip Kotler

MARKETING DEFINITIONS
Marketing is the application, management and satisfaction of demand through the exchange process.

By Evans and Burman

MARKETING MANAGEMENT DEFINITION

Marketing (management) is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfied individual and organizational objectives. By American Marketing Association

MARKETING MANAGEMENT DEFINITION

theorist, puts marketing in this way: There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, the marketing should result in a customer who is ready to buy. All that should be needed then is to make the

Peter Drucker, a leading management

ELEMENTS OF MARKETING
The marketing thinking starts with customers needs. Today the customer is on the drivers seat. Each marketer wants to retain and satisfy each and every customer because of intense competition. Following are the marketing elements:

Needs, wants and demands Products Value, cost and satisfaction Exchange, transactions and relationship Market Marketers

NEEDS AND TYPES OF NEEDS

A Need is something, which cannot be created by Marketer but unspeakable and known part of human biology. It is a state of feeling of some basic satisfaction. Need is a compulsory activity without which, human cannot live or sustain. Generally a person will be in a need of Food, Water, Shelter and clothes. These are basic needs. In marketing a Need can be in different nature. For a particular product, there can be so many needs and those are mentioned below.

TYPES OF NEEDS

There are five types of Needs, which differ from person to person and place to place.

Eg: Taking example in case of a CAR.

I STATED NEEDS

These needs are something can be stated i.e., expressive in nature. A Customer can be in a position to express his needs. He can express his need of extra fittings in the car. I.e. A/c, Music System, paintings on his car etc.,

II REAL NEEDS

These needs are real needs, which are compulsory. A customer needs low maintenance of car. i.e., without repairs frequently and low petrol consumption.

III UNSTATED NEEDS

These needs are not expressive as these are some extra feelings of customer which makes him happy and satisfied apart from the benefits of car.

A customer may require better & good service from the company or showroom. Such as he may feel happy, if company or showroom management sends him festival greetings or birthday greetings and when ever customer goes to them, he may be honored and well received by them with welcome drinks etc.,

IV DELIGHT NEEDS

These needs are like fringe benefits or windfall benefits to the customer. surprise gifts, discounts, lucky draws or schemes given to customer as offers that makes him delight.

v SECRET NEEDS

These needs are which above the unstated needs and very secret in nature.

A customer can expect same honor & respect from the company or showroom management to his friend or relative who is introduced by him.

NEEDS, WANTS AND DEMANDS

Needs are basically like food, water, cloth and shelter, without which a human cannot live and survive.

NEEDS, WANTS AND DEMANDS

Wants are desires, to have more satisfaction and comfort than the basic needs. Instead of taking rice or chapatti to satisfy hunger, a person will go for Chinese or Italian food. Needs are few but Wants are many. These wants are shaped and reshaped continuously by the social forces, institutions and marketers.

NEEDS, WANTS AND DEMANDS

Demands are Wants for specific products that are backed by the a) ability to buy and b) willingness to pay Wants becomes demands when supported by the purchasing power of the customers. The marketers must not only know the consumers taste and preference but also the purchasing power of the consumer and how many are willing to buy.

DEMAND STATES AND MARKETING TASKS

1

Negative Demand: Eg., vaccinations, aids treatment, dental work, vasectomies and employees such as alcoholics, ex-convicts has negative demand No Demand: Eg., farmers not interesting in new cultivating methods, students not interested in new foreign courses because of unaware or ignorance.

DEMAND STATES AND MARKETING TASKS

3 Latent

Demand: Eg., harmless cigarettes, fuel efficient cars, fatfree pizzas and burgers, excess usage of cell phones etc.,

4 Declining Demand: Eg., at present software jobs are facing declining demand

DEMAND STATES AND MARKETING TASKS

5 Irregular Demand: Eg., seasonal demand like raincoats, umbrellas, a/cs, theaters face demand only at weak ends.

6 Full Demand: Eg.,

any new product with reasonable price and good quality

DEMAND STATES AND MARKETING TASKS

7 Overfull Demand: Eg., Because of good advertising and promotion, a product can have overfull demand which is very difficult to handle.

8 Unwholesome Demand: Eg., Without

proper advertisements, marketing products, attract consumers such as cigarettes, alcohol, drugs, x-rated movies, pirated cds etc.,

PRODUCTS
According to Philip Kotler, a product is anything that can be offered to satisfy a need or want. According to W.J. Stanton, a product is a set of tangible and intangible attributes, including packaging, color, price, manufacturers prestige, retailers prestige and manufacturers and retailers services.

EXCHANGE
Exchange is a process of, giving and taking the goods and services in return between two parties or persons who are agreed to act upon the certain terms and conditions for the benefit of the both. The Exchange is further called Transaction.

TRANSACTION

Transactions are of two types

1] Monetary transaction: In return of

products and services the buyer offers cash to the seller.

2] Barter system:

Instead of cash transaction, there will be products and services exchange in between the two parties.

VALUE, COST & SASTISFACTION

The product will be successful only if it delivers the satisfaction to the target buyers. It is a ration between the customers gets and what he gives.

Value = Benefits / Costs

Functional Benefits + Emotional Benefits ---------------------------------------------Monetary costs + Time costs + Energy costs + Psychic costs I.e.,

MARKET & MARKETERS

buying and selling takes place and where buyers and sellers exist to exchange the goods and services for a value. Marketers are those who takes the products to the end users through promotional activities.

Market is place where

TYPES OF MARKETS

CONSUMER MARKETS BUSINESS MARKETS GLOBAL MARKETS NON-PROFIT AND GOVT., MARKETS

CONSUMER MARKET
CONCENTRATES MORE ON

@ SELLING MASS CONSUMER GOODS AND SERVICES @ FEATURES OF THE PRODUCT @ QUALITY OF THE PRODUCT @ DISTRIBUTION COVERAGE @ PROMOTION EXPENDITURES HELPS TO ACHIEVE BRAND IMAGE

BUSINESS MARKET
CONCENTRATES MORE ON @ SELLING BUSINESS GOODS AND SERVICES @ RE-SELL THE PRODUCTS TO OTHERS OR END USERS @ FEATURES & QUALITY OF THE PRODUCT @ ADVT., PLAYS MAIN ROLE TO ACHIEVE BUSINESS CUSTOMERS
@ STRONG ROLE BY SALES FORCE, PRICE, COMPANY REPUTATION

GLOBAL MARKET
@ HOW TO ENTER( AS AN EXPORTER, LICENSER, JOINT VENTURE PARTNER, CONTRACT MANUFACTURER OR SOLO MANUFACTURER @ HOW TO ADOPT PRODUCT OR SERVICE @ PRICING THE PRODUCT IN DIFFT., COUNTRIES @ TO ADOPT DIFFT., LEGAL SYSTEMS @ TO FOLLOW DIFFT., STYLES OF NEGOTIATIONS @ DIFFT., REQUIREMENTS FOR BUYING, OWNING AND DISPOSING THE PROPERTY @ DIFFT., CURRENCY IN DIFFT., COUNTRIES WITH DIFFT., VALUES @ CONDITIONS OF CORRUPTION OR POLITICAL FAVORITISM AND ETC.,

CONCENTRATES MORE ON

NON-PROFIT AND GOVT., MARKETS CONCENTRATES MORE ON

@ SELLING GOODS & SERICES TO NON-PROFIT AND GOVT., ORG. @ LIMITED PURCHASING POWER, PRICING IS MOST IMPORTANT @ LOWER PRICES EFFECT THE QUALITY & FEATURES OF THE PRODUCT @ SELLING THROUGH BIDS, TENDERS, AUCTIONS, ETC.,

Scope of Marketing
ideas
information
organisations

goods

services
experiances

properties
places

events
persons

CONCEPTS
PRODUCTION CONCEPT PRODUCT CONCEPT SALES CONCEPT MARKETING CONCEPT SOCIETAL MARKETING CONCEPT

PRODUCTION CONCET
THE PRODUCTION CONCEPT HOLDS THAT CONSUMERS WILL PREFER PRODUCTS THAT ARE WIDELY AVAILABLE AND INEXPENSIVE. THE PRODUCTION ORIENTED BUSINESS CONCENTRATES ON ACHIEVING HIGH PRODUCTION EFFICIENCY AND LOW COSTS AND MASS DISTRIBUTION. I.E., LESS INPUTS AND MORE OUTPUTS.

PRODUCT CONCEPT THE PRODUCT CONCEPT HOLDS THAT CONSUMERS WILL FAVOUR THOSE PRODUCTS THAT OFFER THE MOST QUALITY, PERFORMANCE, OR INNOVATIVE FEATURES.

SELLING CONCEPT
THE SELLING CONCEPT HOLDS THAT CONSUMERS AND BUSINESSES, IF LEFT ALONE, WILL ORDINARILY NOT BUY ENOUGH OF THE ORGANIZATIONS PRODUCTS. THE ORGANIZATION MUST, THEREFORE, UNDERTAKE AN AGGRESSIVE SELLING AND PROMOTION EFFORT.

MARKETING CONCEPT
1
The marketing concept has 4 main features A customer oriented: Management totally focuses on customers needs, wants, tastes and preferences and the product is made based on customers choice. A market oriented: Here the focus is on market, that is low level markets middle level markets high level markets, the product is made according to the market requirements and price, quality also depends to satisfy that market customer.

2
~ ~ ~

MARKETING CONCEPT
3 A support of various departments aimed to companys goals: Top management
Formulates different objectives to different departments to achieve companys main goals i.e., firms image, market share, brand image or profit oriented.

4 An overall performance and operations of the

company: Management sets
~ ~ ~ ~ Policies Procedures Organizational Structures Programs to achieve greater total results and applies all functions of management i.e., planning, organizing, staffing, directing, coordinating and controlling to entire operations to achieve single set of objective applicable to total organization.

SOCIETAL MARKETING CONCEPT

THE SOCIETAL MARKETING CONCEPT HOLDS THAT THE ORG., TASK IS TO DETERMINE THE NEEDS, WANTS AND INTERESTS OF TARGET MARKETS AND TO DELIVER THE DESIRED SATISFACTIONS MORE EFFECTIVELY AND EFFICIENTLY THAN COMPETITIORS IN A WAY THAT PRESERVES OR ENHANCES THE CONSUMERS AND THE SOCIETYS WELL-BEING.

ADVANTAGES OF MARKETING CONCEPT

It satisfies the customer needs, wants and desires It makes possible improvements in the existing products It creates and innovates new products and services It increases the comfort level of the customers It makes optimum utilization of all resources It creates more mediators and intermediaries for effective marketing

LIMITATIONS OF MARKETING CONCEPT

By too much concentration on the one sector of consumers satisfaction , firms may loose the other sector consumers By too much concentration on the one segment market, the firm my cause harm to other segment or to the society as a whole The firm cannot change its products as fast as consumers taste and preferences change The comforts and desires of consumers may not be good and healthy for the society and organizations

The basic objective of marketing is to satisfy the needs and wants of the customers. However, the overall objectives can be summarized as: To plan and develop the product on the basis of known customer demand To increase profits and goodwill of the enterprise. To organize, direct and control all marketing activities. To inform the customers and society about the markets To enable the successful distribution To supply necessary information for marketing decisions.

Objectives of Marketing

IMPORTANCE OF MARKETING
>> Organizations fulfill their objectives through marketing >> Any organization, which is not doing marketing, is not a business >> The success and failure of any organization depends on marketing >> Marketers are forces to sell the products according to the needs and wants of the Customers >> India is developing through marketing concept >> Global markets also depends upon the marketing concept

INDIAN MARKETING ENVIRONMENT

THERE ARE TWO TYPES OF ENVIRONMENTS IN ANY MARKET. THEY ARE

1. TASK ENVIRONMENT, INVOLVES ~~ PRODUCING ~~ DISTRIBUTING ~~ PROMOTING ~~ OFFERING MAIN ACTORS ARE COMPANY, SUPPLIERS (WHICH INCLUDES GOODS AS WELL AS SERVICES), DISTRIBUTORS, DEALERS, AND THE TARGET CUSTOMERS

2. BROAD ENVIRONMENT,
SIX COMPONENTS

INDIAN MARKETING ENVIRONMENT (CONTD.,)

INVOLVES

~~DEMOGRAPHIC ENVIRONMENT ~~ECONOMIC ENVIRONMENT ~~NATURAL ENVIRONMENT ~~TECHNOLOGICAL ENVIRONMENT ~~POLITICAL-LEGAL ENVIRONEMENT ~~SOCIO-CULTURAL ENVIRONMENT

References Marketing Management by Philp kotler