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MARKETING MANAGEMENT

UNIT-I

INTTODUCTION:

Marketing – Definitions – Conceptual frame work – Marketing Environment: Internal and External – Marketing interface with other functional areas – Production, Finance, Human Relations Management, Information System. Marketing in global environment – Prospects and Challenges.

MARKETING MANAGEMENT

INTRODUCTION : The word “MARKETING” is originated from the Latin noun “MORCATUS”, which means “A place where business is conducted”. It is a place where buyers and sellers meet, and exchange goods and services for money.

Evolution of Marketing:

The stage of Barter:

Agriculturists and craftsmen were the main producers of this era. After meeting his own requirements the sulphurwere disposed in their immediate neighbors. There was no elaborate distribution system as the habits and needs of the people and the prevailing

technology did not demand such a system. Marketing under those conditions meant a task of producing the basic necessities of life and

exchanging them with known consumer groups in the immediate neighborhood. This represented the stage of barter in the evolution of marketing.

The stage of Money Economy:

In this next stage of evolution money came into picture. The change was limited to the replacement of the barter system by the money system with the

result that pricing became the chief mechanism of marketing.

The stage of Industrial Competition:

Far reaching changes took place in this stage. This stage introduced new products, new systems of manufacture, new modes of transportation

and methods of communication. This stage brought about changes in the physical and economic environment of man. Mass production became the order of the day and variety of low-priced goods became available

in abundance.

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The industrial revolution also generated the income revolution that sustained the mass production and mass distribution unleashed by the industrial revolution.

The Stage of Competition:

The ever increasing number and size of the producing firms generated the phenomenon of competition, which was not known in the agriculture and handicrafts economy or in the early stage of Industrial Evolution.

The main task of the industrial firms was disposal or distribution of whatever they produced. In the subsequent stage, meeting competition became the chief issue.

The situation demanded a conscious effort to face the competitors and the firms had to ensure that their products were accepted in preference to those of their competitors.

The Emergence of Marketing:

After the Second World War there war there was a substantial increase in population. New industrial concerns sprang up rapidly and a great variety of new products and services strengthened the

consumer market. Consumer had abundant choices and consumer began to occupy a place of unique importance. The businessmen who got consumers who are well educated and endowed with a good discretionary

income realized that it was not enough if they made a onetime sale of their products to the consumers.

They had to make available their products at a price that was advantageous to the consumer. They also had to ensure that complaint from the consumer about the product was attended to promptly and if required after sales servicing had to be provided and that led to the emergence of marketing.

MARKETING DEFINITION:

“Marketing may be defined as – marketing is the business activity that direct. The flow of goods and services from producer to ultimate consumer”.

“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”.

According to Philip Kotler: Marketing involves two steps:-

Step-1=>To identify the customer needs and wants.

Step-2=>To satisfy the customer needs and wants.

According to American Marketing Association(AMA), “Marketing is the process of planning and executing the conception, pricing, promotion, and distributing of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives”.

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According to him, Marketing is not, in the form of telling and selling and also satisfy the customer needs and to build (CRM) Customer Relationship Management.

MEANING OF MARKETING

“Marketing is a social and managerial process by which individuals and groups attain what they need and want through creating, offering and exchanging products of value with others”

“A System of interacting business activities designed to plan, price, promote and distribute want, satisfying products and services to present and potential customers”.

“Marketing is the performance of business activities that directs the flow of goods and services form the producer to the consumer”.

“Marketing is designed to bring about desired exchange with target audiences for purpose of mutual gain”.

MODERN DEFINITION OF MARKETING

A total system of business, an ongoing process of (1) Discovering and transacting consumer needs and desires into products and services (through planning and producing the planned demand)2. Creating demand for these products (through promotion and pricing)3. Serving the consumer demand through planned physical distribution (with the help of marketing channels and then4. Expanding the market even in the face of keen competition.

DEFINITION FOR MARKETING MANAGEMENT

“Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals”.

ELEMENTS OF MARKETING:-

1) Need, wants & demand.2) Product.3) Value, customer satisfaction.4) Exchange (buying and selling)5) Market it is a place where buyer and seller.

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NATURE OF MARKETING:-

NATURE OF MARKETING

1. Marketing is an Economic FunctionMarketing embraces all the business activities involved in getting goods and services , from the hands of producers into the hands of final consumers. The business steps through which goods progress on their way to final consumers is the concern of marketing.

2. Marketing is a Legal Process by which Ownership Transfers In the process of marketing the ownership of goods transfers from seller to the purchaser or from producer to the end user. 3. Marketing is a System of Interacting Business Activities Marketing is that process through which a business enterprise, institution, or organisation interacts with the customers and stakeholders with the objective to earn profit, satisfy customers, and manage relationship. It is the performance of business activities that direct the flow of goods and services from producer to consumer or user.

4. Marketing is a Managerial function According to managerial or systems approach - "Marketing is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market." 

According to this approach the emphasis is on how the individual organisation processes marketing and develops the strategic dimensions of marketing activities. 

5. Marketing is a social process Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham (1981) societal marketing performs three essential functions:-

1. Knowing and understanding the consumer's changing needs and wants;2. Efficiently and effectively managing the supply and demand of products and services; and3. Efficient provision of distribution and payment processing systems.

6. Marketing is a philosophy based on consumer orientation and satisfaction

Management Function

Adaptation to Environment variables

Specialised Business Function

Integrative Function

Socially Desirable Function

Reflects the Business Mission

Universal Function

Consumer Orientation

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7. Marketing had dual objectives - profit making and consumer satisfaction8. Marketing As a 'Science’. It is essential for being called marketing that there be some of the

rules or principles of its own and in it the scientific practices are followed. Marketing proves to be the most effective in the form of a science since it has some of its own principles and rules, and in it are used the scientific methods like those of other social sciences. Today, before undertaking the manufacturing of a product, the producer tries to collect various kinds of researches and knowledge for instance, marketing research, purchaser-behavior research, etc. All these facts prove the marketing to be a science.

9. Marketing As an Art. Along with a special qualification and ability, if some work is undertaken, it is known as 'art'. Within the marketing itself, is covered the salesmanship. On the basis of salesmanship, some of the shopkeepers extend their sales too much in comparison to that of their other contemporary sellers. Marketing too is an art which is acquired by studies and ability and by the proper training this art is led to perfection. The various problems of marketing are solved by a special art only.

10. After studying both the above, it might be said that marketing is both an art and a science, since in it the scientific techniques and art are used, and thereafter various decisions undertaken.

Different States of Demand in Marketing:Marketing is typically seen as the task of creating, promoting , and delivering goods and services to consumers and business. Marketers are skilled in stimulating demand for a company's products, but this becomes limited view of the tasks marketers perform. Just as production and logistics professionls are responsible for supply management, marketers are responsible for demand management. Marketing managers seek to influence the level, timing, and composition of demand to meet the organization's objectives. There are eight different states of demand and the corresponding tasks faced y marketing managers. They are as follows:

1.Negative Demand: when the markets dislike the products and avoid them, negative demand gets generated. The task of marketing managers, is to analyze why the markets dislike the products and whether a marketing program consisting of Product redesign, lower prices, and more positive promotion can change beliefs and attitudes.

2.NoDemand:The target consumers may be unaware or uninterested in the product. The marketing task is to find ways to connect the benefits of the products with people's natural needs and interests.

3.Latent Demand: Consumers may share a strong need that cannot be satisfied by the existing Products.The marketing task is to measure the size of the potential market and develop goods and services to satisfy the market.

4.DecliningDemand:The demand for certain goods and services over a period of time starts declining. The marketer should analyze the causes of the decline and should determine whether demand could be re stimulated.

5. IrregularDemand: Demand may vary on a seasonal, daily , or even hourly basis. The marketing task called Synchro marketing is to find ways to alter the pattern of demand through flexible

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pricing ,promotion and other incentives.

6.FullDemand:Organizations face full demand when they are pleased with their volume of business . The marketing task is to maintain the current level of demand in the face of changing consumers preferences and increasing competition.

7.OverfullDemand:Organizations may face a demand level that is higher than they can or want to handle. The marketing task called de marketing requires finding ways to reduce demand temporarily or permanently.

8.UnwholesomeDemand:Unwholesome products will attract organized efforts to discourage their consumption. The marketing task is to get people who like something to give it up. Example: Campaign against drugs, large families etc.

Marketing people are involved in marketing a variety of entities like goods, services, experiences, events, persons, places, properties, organizations, information and ideas.

THE SCOPE OF MARKETING

Marketing is typically seen as the flash of creating promoting, and delivering goods and services to consumers and businesses. In fact marketing people are involved in marketing types of entities goods services, experiences, event, person, places.

1. Goods: physical goods 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.

2. Services: At economies advance a growing proportion of their activities are focused on production of services. The US economy today consists of a 10-30 services to good mix. Service include the work of airlines, hotels can rental firms, barbers and beauticians, maintenance and repair people, dog kennels and dog therapists, as well as professionals working with in or for companies, such as accounts lawyers, engineers, doctors, software programmers and management consultants.

SCOPE OF MARKETING

Goods

Experiences

Persons

Properties

Information

Services

Events

Places

Organization

Ideas

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3. Experiences: by orchestrating several services and goods, one can create, stage, and market experiences. There is a market for different experiences, such as spending a week at a base ball camp playing with some retired baseball greats, playing to conduct the Chicago symphony orchestra for five minutes, or climbing mount Everest.

4. Events: Marketers promote time – based events such as the Olympics, company anniversaries, major trade shows, sports events, and artistic performances, there is a whole profession of meetings planners who work out the details of an event and stage it to come off perfectly.

5. Persons: Celebrity marketing has become a major business. Years ago some one seeking same would hire a press agent to plant stories in newspapers and magazines. Today artists, musicians, CEO’s, physicians high profile lawyers and financiers, and other professionals are drawing help from celebrity marketers.

6. Places : cities, states, regions, whole nations compete actively to attract tourists, factories, lump any head quarters and new residents. Ireland has performed as an outstanding place marketer, having attracted more than 500 companies to locate their plants in Ireland.

7. Properties : Properties are intangible rights of ownership of either real property or financial property. Properties are brought and sold, and this occasions a marketing effort.

8. Organizations: Organizations 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. Philips puts out ads with the tag line “let’s make things better”. Universities, museum and performing arts organization all lays plans to boost their public image to compete more successfully for audiences and funds.

9. 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. Encyclopedias and most notification books, market information. We buy CDs and visit the internet for information.

10. Ideas: Every marketing offering includes a basic idea at its core. marketers search hard for the core need they are trying to satisfy. A church example, must decide whether to market itself as a place of worship or a community center.

NEEDS, WANTS, & DEMAND

NEEDS: NEED is a state of felt deprivation of some basic satisfaction. People require food, clothing, shelter, safety belonging, esteem and a few other things to survival. These NEEDS are not created by their society or by marketers.

WANTS: WANTS are desires for specific satisfiers of these deeper needs.For example: if a person needs a vehical to travel to his office he can go for two wheelers, but if he specifically buys a car or a FOUR WHEELER that becomes a want.

DEMAND: DEMANDS are wants for specific products that are backed up by an ability & willingness to by them.

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CORE CONCEPTS OF MARKETING:-

1. Needs, Wants and Demands.2. Utility,3. Cost and Satisfaction.4. Relationship and Networks.5. Products6. Value.7. Exchange and Transaction.8. Markets9. Marketers.

CONCEPTS OF MARKET:-

Old concept of marketing was to make goods available so that people who had needs can buy. But as human needs changes and many players offering same goods, the concept changes from making available to satisfying needs.

The core concept of marketing “exchange process “have stated since human civilization and it has transforms through many phases into modern marketing management today.

CONCEPT OF MARKETING

6. Exchange concept

1. Production concept

2.Product concept

3.Selling concept

4.Marketing concept

5.Social Marketing concept

De-Marketing concept

Meta-Marketing concept

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1. Exchange Concept:-

After the stages of nomads people started to settle on the banks of rivers and engaged in agriculture and other economic activities. Then the problem of deficit and surplus in production came into existence. In order to have smooth exchanges “Barter System” came into existence. This is the starting point of marketing activities

Goods move from seller to buyer. The Purpose of marketing is money.

2. Production concept:-This stage came with the dawn of industrial revolution which started during 1760. The concept

behind this stage was if you can offer products with reasonable price and quality, nothing can prevent you from selling and making profits. Here producer gave more emphasis on their production not on the customer requirements

1. Mass production 2. Produce the product at the bulk level.3. The cost of per unit reduce.

3. Product concept:-

This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door.

1. Major Focus Value for money.2. Quality products.3. Retaining customers through quality offers and value for money.

What is Marketing Myopia?

The term point by Professor Theodore Levitt. “Marketing Myopia has colored and crocked

Perception of marketing & a short signed view of a business”.

4. SELLING CONCEPT:-

This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also assumes that the

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company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants

The Principle of selling concept based on PUSH THE PRODUCT.

Elements of Promotional mix consist of

1. Advertising ,2. Personal selling,3. Sales promotion,4. Publicity,5. Direct Marketing,

5. MARKETING CONCEPT:-

This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.

 The main AIM of marketing is customer satisfaction.Integrated management function.

6. SOCIETAL MARKETING CONCEPT:-This concept holds that the organization’s task is to determine the needs, wants, and interests of

target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being.This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services.

1. DE-MARKETING CONCEPT :-

In simple words De marketing means “The Discouraging customer/ to reduce the need of the customer”. (Oil and Petrol)

2. META-MARKETING CONCEPT :-

Meta means ---- More-comprehensive/ new learning approach .Ex- Family Planning Programme.

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IMPORTANCE OF MARKETING:

CREATING UTILITY: A Customer purchases a product because it provides satisfaction. The want satisfying power is called its utility. it comes in many forms. It is through marketing that much of a product’s utility is created. There are different kinds of utilities:-

Form utility:R.M Converted to Finished product. Understand customersRequirements Form utility is primarily associate with production- the physical or chemical changes that make a product more valuable.Eg: Lumber is made into furniture is an example of form utility.

Place Utility Channel Distribution Physical Distribution Customer As per customers Requirement Place utility exists when a product is readily accessible to potential customers. An auction on the net can increase the number of buyers and sellers, but once products are purchased they still have to be delivered quickly and in condition. Physically moving a purchased item to a successful bidder in an essential element of its value.

Time UtilityWarehouse making available goods customer When needed As per customers RequirementPerson Utility:Marketer Established Contact Customer Understand Customers Requirements

Exchange UtilitySeller Transfer Goods to Buyer as per Customers Requirement

FUNCTIONS OF MARKETING:-

The scope of marketing is very wide. A number of functions are inherent in any marketing on the basis of various utilities like (in II) time and place utility and (III) possession utility.

I FUNCTION 1.Buying FunctionOF EXCHANGE 2.Assembly Function

3. Selling Function.

II FUNCTION OF 1.TransporationPHYSICAL 2.Inventory Management

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DISTRIBUTION 3.Ware Housing4. Material Handling

III FUNCTION 1.FinancingOF FACILITIES 2.Risk Taking

3. Standardization4. After Sales Service

(I) FUNCTIONS OF EXCHANGE

a) BUYING FUNCTION :A Manufacturer is required to buy raw material for production purposes similarly a wholesaler has to buy good from manufacturer for selling it to retailer. A retailer sell the goods to the customers. The function to buying has to be done at various levels. Buying involves transfer of ownership form seller to buyer.

b) ASSEMBLY FUNCTION :Goods purchased form various sources and assembled at one place to suit the requirement of the buyer.

c) Selling Function :Selling function involves sales of goods from seller to buyer. Selling function is very important to all organizations due to the fact the selling has to be done against severe competition.

II FUNCTION OF PHYSICAL DISTRIBUTION:

a. TRANSPORATION: This include mode of transport selection of transporter or carrier freight consideration like freight paid or to pay routing, scheduling, processing claim in case of transit damage etc.,

b. INVENTROY MANAGEMENT : This includes:

1. Short term fore casting 2. Product size and location of warehouse 3. Just in time4. Push or pull strategy adoption.

c. WARE HOUSING :The following functions are included:

1. Space requirement2. Suitability of location

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3. Layout design4. Physical arrangement

d. MATERIAL HANDING: This includes:

1. Equipment Selection2. Equipment Replacement3. Storage methods4. Receipts and issue (F I F I or L I F O )

III FUNCTIONS OF FACILITIES:

a. FINANCING :This means extending credit facilities during selling. It an organization has to do this. It must have adequate working capital. Marketer has to plan.

a. Short term financeb. Long term finance

This financier’s are provided by a. Banks like nationalized or b. Financial institutions like ICICI, IDBIc. Credit societies d. Government agencies like KIDB, KSFC etc.,

b. RISK TAKING There are innumerable risk. Which a marketer has to bear while marketing a product. Risk arises due to unforeseen circumstances. Risks can be insured also.Eg.Risks due to fire and accidents.

But some risks cannot be insured. Eg. Changes due to Govt. policies, risks due to increased Competition, technological risks and business cycle risks.

c. STANDARDIZATION: Buyers refer standardized goods. This will prevent the buyer form wasting his time in inspecting or examining the goods. Standardization and growing is a part of marketing function. Standardization is a process of setting up standards to manufacture products which confirms to a set of Specifications. Standardization, Size, shape, dimension colour etc.,

Grading is also a part of standardization. It is a process of sorting our goods into a number of graded, according to some characteristics such as quality and size grading is usually necessary for those products over which the producer cannot exercise any control in terms of physical properties.

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Example: Food Grains, Fruits etc.,

d. AFTER SALES SERVICEThis is very important in case of industrial products whether final product or an intermediate. Hence, arrangement of after sales service has become an increasingly important function. Therefore, marketer has to plan for after sales service. Eg.Repairs, replacement, maintenance, etc.

OTHER FUNCTIONS OF MARKETINGIn addition to the above, marketing has several other functions as follows:

1. Product planning and development2. Packaging3. Pricing 4. Market Research.5. Promotion etc.,

1. Product Planning:

A Product planning is something which is a business offers to customers. Hence product planning, product improvement, product development, product diversification are all parts of product management, profitability depends on product mix planning. Product planning involves adding dropping a modifying a product. Sometimes product line planning may have to be undertaken by marketer. 2. PACKAGING:Provides protection and improves aesthetic appeal. This enables the marketer to sell more. The two important aspects of packaging are:

a. Labeling b. Branding

3. PRICING:Pricing is nothing but the value of the product in terms of money. It is the amount paid by the buyer to the seller. Profitability is decided by the price. Marketers need to formulate pricing strategies.4. MARKET RESEARCH:Market research involves systematic gathering recording and analyzing of data about relating to the marketing of goods and services.

However different authors describe marketing function in different ways. Above we have mentioned one of those methods. Another way of classification of marketing function is as follows Mc.Garrv.Classified marketing function in to 6 categories.

a. Contractual: Buyers Sellers are brought together for marketing transaction.b. Merchandizing: This is concerned with making products acceptable to the market.c. Pricing :d. Propaganda: Buyers are informed about the activities of organizations.e. Physical distribution: Consisting of transportation storage etc.,f. Termination: This is the end of marketing activity.

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DIFFERENE BETWEEN SELLING AND MARKETING:-

SELLING CONCEPT

CONCEPTUAL FRAMEWORK OF MARKETING MANAGEMENT:-

Starting point Focus Means Ends

Factory Factory Selling and Promoting Profits through sales

Market Customer needs Coordinated marketing Profits through

Customer satisfaction

Place

Marketing Analysis

1.Marketing Intermediaries 2Competitors

Basis of Difference Selling Marketing1) Emphasis Emphasis on product. Emphasis on consumer needs

and wants.2) Approach Company manufactures the

product first and then decides to sell it.

Company first determines customers’ needs and wants and then decides on how to deliver a product to satisfy these wants.

3) Orientation Management is sales-volume oriented

Management is profit-oriented.

4) Planning Planning is short-term oriented, Planning is long-term oriented,5) Price Determination Cost determines price. Consumers determine price,

price determines cost.6) Primary and secondary motive

In selling the primary motive is sales, secondary motives are satisfied company’s needs.

In marketing customer satisfaction & delight is the primary objectives, secondary motive is meeting the buyers expected needs & wants.

7) Importance Importance on seller side Importance on customer side8) View Views business as a good producing

processViews business as consumer producing process sat¬isfying process

9) Department Different departments work as in a highly separate water tight compartments

All departments of the business integrated manner, the sole purpose being generation of consumer satisfaction

10)Starting Point Selling Starting point is at production

Marketing Starting point is at Customer needs

11)Strategy Push Strategy Pull Strategy12)Elements

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MARKETING ENVIRONMENT ( Important 16 Mark Qustions)

In simple words ‘environment mean “surrounding of business.”

Accounting to Philip Kotler-“Marketing environment refers to external factors and forces that affect the company’s ability to develop and maintain successful relationship with its target customers”.

TYPES OF MARKETING ENVIRONMENT:-

There are two types of marketing environment:-

1. Internal environment/ Controllable elements, and2. External environment/ Uncontrollable elements.

TYPES OF MARKETING ENVIRONMENT

Internal Marketing environment External Marketing environment

Place

4Suppliers

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1. Top Management.2. Finance and Accounting.3. Research and Development.4. Manufacturing. I. Micro environment Macro environment5. Purchasing. 1. The companies. 1.Demographic

environment6. Company Image. 2. Suppliers. 2. Economic environment. 7. 5 M’s 3.Market intermediaries. 3.Technical environment.

a) Man 4.Customers. 4.Physical environment.b) Money 5.Competitors 5.Politica/Legal environmt.c) Material 6.Public. 6.Socio-cultural environmt.d) Machine 7.Natural environment.e) Methods 8.International

environtmt.

I.INTERNAL MARKETING ENVIRONMENT: (CONTROLLABLE FACTORS)

1.TOP MANAGEMENT:-

The organizational structure, the composition of the Board of Director, extent of professionalization of management etc., are important factors influencing business decisions. The business domains of the company, priorities, direction of development, business philosophy, business policy etc., are guided by the mission and objectives of the company.

2.FINANCE AND ACCOUNTING:

Finance is concerned with funding and using funds to carry out the marketing plan. Financial Factors like financial policies, financial position and capital structure are also important internal environment affecting business performances, strategies and decisions. Accounting has to measure revenues and costs to help marketing know how well it is achieving its objectives.

3.RESEARCH AND DEVELOPMENT :-

The R&D department focuses on designing safe and attractive products. R&D and technological capabilities, determine a company’s ability to innovate and compete.

4. MANUFACTURING:-

Manufacturing is responsible for producing the desire quality and quantity of products.

5. PURCHASING:-

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Purchasing worries about getting supplies and materials. Purchasing means procurement of goods and services from some external agencies. Purchasing is one of the most common at the same time a strategic activity of the business. The success of any business activity is contingent upon having materials and parts, stores and supplies, machines and equipment available in proper quantity, with proper quality, at the proper place and time and at the proper price.

6.COMPANY IMAGE:-

The image of the company matters while raising finance, forming joint ventures or other alliances, soliciting marketing intermediaries, entering purchase or sale contracts, launching new products etc.

II.EXTERNAL MARKETING ENVIRONMENT: (UNCONTROLLABLE FACTORS)

The external marketing environment or uncontrollable elements consists of the following:

1. Micro environment, and2. Macro environment.

i.MICRO ENVIRONMENT:-

1.THE COMPANY:-

All the functional department=> HR, Marketing, finance, System, Production.

2.SUPPLIERS :-

The customer value delivery to treat supplier as a partner. The seller firm is a monopoly or an oligopoly firm.

3.MARKET INTERMEDIARIES:-

Promote sell and distribute production to the ultimate user.

4.CUSTOMERS:-

1. Ultimate consumers.2. Industrial consumers.3. Resellers.4. Government and other non- profit customers.5. International customers.6. Internal customers.

5.COMPETITORS:-

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Competitors are those who sell the goods and service of the same and similar description, in the same market. Apart from competition on price factor, there are other forms of competition like product differentiation.

6.PUBLIC:-

Any group that has an actual or potential interest are impact on organization ability to achieve its objectives.

According to “Philip Kotler” there are 7 types of Public.

1. Financial public.2. Media public.3. Government public.4. Citizen public action.5. Local public6. General public.7. Internal public.

III.MACRO ENVIRONMENT:-

1.DEMOGRAPHIC ENVIRONMENT:-

Is the study of Human Population in terms of SIX density, Location, Age, Gender, Race, Occupation & Other statistics.

1. World population.2. Growing middle class.3. A changing family system.4. The change role of women.

2.ECONOMIC ENVIRONMENT:-

Per capital income(Inflation, demand, supply).GDP and GNP. Interst rate, Economic growth ,Budgetetc

3.TECHNICAL ENVIRONMENT :-

Force that create new technical, new product and marketing opportunities.

4.PHYSICAL ENVIRONMENT:-

Components of physical forces are earth’s natural renewal and non-renewal resources. Natural renewal forces and forests, food products from agriculture or sea etc.non-renewable natural resources are finite such as oil, coal, minerals etc. Both these components quite often change the level and type of resources available to a marketer for his production.

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5.POLITICAL AND LEGAL ENVIRONMENT:-

Developments in political and legal field greatly affect the marketing decisions. Sound marketing decision cannot be taken without taking into account, the government agencies, political party in power and in opposition their ideologies, pressure groups, and laws of the land.

6.SOCIAL AND CULTURAL ENVIRONMENT:-

Social responsibility concept has crept into marketing literature as an alternative to the marketing concept. The social forces attempt to make the marketing socially responsible. It means that the business firms should take a lead in eliminating socially harmful products (e.g., cigarettes or wine) and produce only what is beneficial to the society.

7.INTERNATIONAL ENVIRONMENT:-

The international environment is particularly important for industries directly depending on imports or exports and import-competing industries.

MARKETING INTERFACE WITH OTHER FUNCTIONAL AREAS:-

In opinion of mine, the most important business functions which marketing can assist are:

- Finance/Management: marketing plans should include financial information for both new and existing products. In this sense, marketing can be a means supporting management when taking investment decisions. Marketing can also give inputs on sales forecasts under different marketing strategies scenario (Wind, 1981). Management can be supported by financial inputs provided by marketing but also to other data such as market actual (or expected) response to a product/service

- Production/operational department: marketing can assist these departments in estimating the number and the type of products and services to be produced/provided. Marketing strategies can also try

Marketing Interface with Other functional Areas

Research and DevelopmentPurchasing

ManufacturingOperations

FinanceAccounting

Human Resource Management

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to stimulate a certain response of markets in order to influence the demand of goods/services in terms of level and/or timing. This can be useful to match the production/operational constraints of the organisation

- R&D: marketing can assist R&D throughout from the idea of new product/services to its implementation. Marketing researches can provide inputs to understand what kind of products/services are likely to be the most marketable and/or understand what kind of features customers would like to have

- Sales: sales department cultivates relationships with clients and marketing can offer inputs to make it more profitable

Relationship of Finance with Marketing

Marketing department’s main duty is to sell maximum goods and satisfy the consumers. Its product’s input cost will decrease if all products are sold by marketers of company. For developing the product, promotion activities and distribution activities of marketing department need some money for paying salesmen, advertising budget and other promotional expenses. For this marketing department makes his marketing budget and it is cleared by finance department, but sometime finance department will not all specific marketing expenses but marketing department need that type of expenses for promotion of sales. This will create confliction. Good relations will be helpful for both departments. If both department does meeting and show behavior like good relative, the problem can easily solve. Both departments should think that both are the part of company’s organization and co-ordination between them is must. Sometime, marketing department obtains big order for supplying the goods, at that time finance department should help marketing department for arrangement of money for buying raw material and supplying fastly without any delay

MARKETING IN GLOBAL ENVIRONMENT:-

1. Meaning of Global Marketing.2. Steps (or) Process of Global Marketing.3. Difference between Domestic Marketing and Global marketing.4. Forms (or) entry of Global Marketing 5. Advantages/ Opportunities of Global marketing.6. Challenges/ Limitations/ Problems of Global Marketing.

11. MEANING OF GLOBAL MARKETING:-

Global Marketing=>It refers to the strategy, process, and implementation of the marketing activities in the international arena around the globe.

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According to Johansson, “Global marketing refers to marketing activities coordinated and integrated across multiple country markets”.

12. STEPS (OR) PROCESS OF GLOBAL MARKETING:-

13. DIFFERENCE BETWEEN DOMESTIC MARKETING AND GLOBAL MARKETING:-

POINTS DOMESTIC MARKETING GLOBAL MARKETING1. Operating conditions One nation, same Language and

culture.Many nations, many languages and cultures.

2. Currency One currency Different currencies in different countries.

3. Nature of Market Homogenous Marketing Heterogeneous Marketing4. Business Area Small Level Large Level5. Political Environment Same Political environment Different types of political

environment6. Transportation cost Transport cost is a major

marketing expense.Transport cost influences only to some extent.

7. Business environment Relatively stable Multiple environments, many of which are highly unstable.

8. Risk Level Low High

Global Market Research and Forecasting

To Analysis the International Marketing Environment.

Economic – Legal-Cultural-Political-Social-Natural

Global Marketing Decisions

Market Selection Decisions

Marketing Entry Decision

Exporting, Licensing, Franchising, Contract, Joint venture, Merger,

Marketing Mix

4 P’s--- Product, Price,Place,Promotion

Market Organizing Decision

Step-1

Step-2

Step-3

Step-4

Step-5

Step-6

Step-7

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9. Tariff and Duties Limited Unlimited10. Financial Uniform Different11. Political/ Legal Same Same12. Cultural Factor Same Same13. Infrastructure Same Same

14. PROSPECTSS OF GLOBAL MARKETING (OR) ENTRY OF GLOBAL MARKET LEVEL:-

ENTRY OF GLOBAL MARKET LEVEL

Elaborately discuss various Opportunities and Challenges of Global marketing (16 marks)

II.Advantages/ Opportunities/ Prospects of Global Marketing:-

1. Diversification Opportunities.2. Expansion Opportunities.3. Increased Market Store.4. Increased Profit.5. Global recognition.6. To reach new customer.7. Investment Opportunities.8. Mobility of Factor of Production.

1.Market needs/ Efforts

2.Low Cost

5.Technology

8.Regional Economic Agreements

6.Quality

4.Deregulation and Privatisation

3.Communications and Transportation

7.Leverage

9World Economic Growth

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9. Increase standard of living.10. Nature resource advantage.

III.CHALLENGES/ LIMITATION/PROBLEM OF GLOBAL MARKETING….

1. Political/ Legal Difference.2. Cultural Difference.3. Economic Difference.4. Currency Difference.5. Language Difference.6. Trade Practice Tariff.7. High Customer Distance.8. Risk Level is more.9. Problem in Regulatory Environment.10. Self-reference.11. Brand History.12. Organization Culture.13. Natural control

Global marketing Advantages and Disadvantages

Advantages ;Economies of scale in production and distributionLower marketing costsPower and scopeConsistency in brand imageAbility to leverage good ideas quickly and efficientlyUniformity of marketing practicesHelps to establish relationships outside of the "political arena"Helps to encourage ancillary industries to be set up to cater forthe needs of the global player

Disadvantages ;Differences in consumer needs, wants, and usage patterns for productsDifferences in consumer response to marketing mix elementsDifferences in brand and product development and the competitive environmentDifferences in the legal environment, some of which may conflict with those ofthe home marketDifferences in the institutions available, some of which may call for the creationof entirely new ones (e.g. infrastructure)Differences in administrative proceduresDifferences in product placement.