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.

CONT’D….

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

Industry

(A collection of Sellers)

Market

(A collection of Buyers)

Communication

Information

Goods / Services

Money

Elements of a Modern Marketing systems

Supplier

Company

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

Traditional Organisation

Chart

Front Line People

Middle Mgmt

Top Mgmt

CUSTOMER

Modern Customer- Oriented

Organisation

Chart

Top Mgmt

Middle Mgmt

Front Line People

CUSTOMER

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.

CONT’D…

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 customer’s needs, wants, and demands.

CONT’D…

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

CONT’D…

Form Utility

Person Utility

Raw Material Finished Goods

Converting into

Understanding Customer Requirement

Marketer Customer

Establish Contact

CONT’D…

Exchange Utility

Place Utility

Seller Buyers

Transfer Goods

Channels of

Distribution Customers

Physical

distribution &

Logistic

CONT’D…

Time Utility

Warehousing Customers

Making Available

goods when

needed creating

time utiliy

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

Customer Wants

Aimed at consumer

Volume of profits

It is for long run

(Marketing place new

products, tomorrow’s

markets & future growth).

Emphasis on the buyer’s

needs

SELLING

Focuses on product

Aim of business or money

Focuses on the volume of

sales

Planning is for the short

run / for today’s product &

market

Mainly emphasis on the

seller’s needs.

CONT’D…

MARKETING SELLING

Identifying Consumer Need

Developing an appropriate

product /service to attain

consumer satisfaction

Accomplish organisational goals

through integrated marketing

approach

Produce what Manufacture feel

appropriate

Emphasis only on higher sales

volume

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) Today’s competitive world it should rest in

long term satisfying relationship between both

of them.

MARKETING PROCESS

Figure 1

Understand

The marketplace

And customer needs

And wants

Design a

Customer-driven

Marketing strategy

Construct a

Marketing program

That delivers

Superior value

Build profitable

Relationships and

Create customer

delight

Capture value from

Customers to

Create profits and

Customer quality

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.

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.

CONT’D…

NATURE OF MARKETING

Marketing is both Consumer-Oriented & Competitors-Oriented.

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)

CONT’D…

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

CONT’D…

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

CONT’D…

Transportation

Storage & Warehousing

Standadisation & Grading

Branding & Packaging

CONT’D…

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

CONT’D…

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