marketing management naveen

8/3/2019 Marketing Management Naveen

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MARKETING MANAGEMENT

1.MEANING2.DEFINITION3.EVOLUTION OF MARKETING4.ROLE OF MARKETING IN BUSINESS ANDSOCIETY5.OBJECTIVES6.NATURE7. DISTINCT MARKETING CONCEPT

8.DIFFERENCE BETWEEN MARKETING ANDSELLING9.FEATURES OF MARKETING CONCEPT10.WHO BENEFITS FROM MARKETINGCONCEPT


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MARKETING MANAGEMENTMeaning:

Marketing means selling of goods and services. Inother words, it is the process by which goods aremadeavailable to ultimate consumers from their place of

origin.

Marketing consists of those activities whichare concerned with the transfer of ownership of

goods fromproducers to consumers. Marketing is regarded asproduction/sales oriented.

DefinitionThe American Marketing Association (AMA) defines

marketing as the process of planning and executingthe conception ,pricing, promotion and distributionof ideas, goods and services to create exchangesthat satisfy individual and organizational goals.Marketing deals with products .A product can be agood ,service or idea.


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A good ;A good is a physical entity i.e. it is atangible product that can be touched and feel .e.g. ashirt or a bar of chocolate.

A service :A service has no physical form or it is anintangible Product .A service is created when humanefforts are clubbed with mechanical efforts toprovide intangible benefits ,it gives some value tothe consumer.. e.g. laundry ,healthcare,transportation, banking etc.

An idea :Ideas provide intellectual or spiritualbenefits toConsumers .e.g. politician selling idea likeprotection of human rights to political activity

Evolution of Marketing

1.The Stage of Barter ;Before the evolution ofindustrialRevolution ,the agriculturist ,whether he producedcorn or cotton, meat or butter, disposed off thesurplus in his immediate neighbourhood. Theseproducts were required in the neighbourhood bythose people who were not engaged in the sameactivity .The agriculturist barterd the corn, cotton,meat and butter produced by him for leather, handtools, utensils and furniture produced by thecraftsman. There was no elaborate distributionsystem. This represented the stage of barter in theevolution of marketing.

2.The Stage of Money Economy; No fundamental

or far reaching change took place in this stage of


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production and distribution of goods. The changewas replacement of barter system by the moneysystem, pricing became the mechanism of the

exchange process.

3.The Stage of Industrial Revolution; Farreaching changes took place in this stage. Itintroduced beginning of new business system. Itintroduced new products, new systems ofmanufacture, new modes of transportation andmethods of communication and brought about

changes in the physical and economic environment.Mass production lead to variety of low priced goods.It lead to income revolution, giving a great deal ofdisposable income to large mass of people.

4.The Stage of Competition ;The massproduction and mass distribution brought byIndustrial revolution soon led to stage of

competition. The situation demanded the firms tomake conscious efforts to make sure their productswere preffered overs those by their competitors.

5.The Emergence of Marketing;After the SecondWorld War,the size and characteristics of markets inmany countries of the world changed enormously.There was substantial increase in the population;

the disposable increase per family increased, newindustrial concerns sprang up, a great variety ofnew products and services strengthened the rapidlydeveloping consumer market; so selling of productsand services became very difficult and competitiveAbundant choices were made available to theconsumer and consumer occupied a place of greatimportance .The industrial firms realized that it was


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not enough to make one time sale and they ensurethat consumers come and buy their products againand again .They also ensure that product was made

available at a place convenient to the consumer.They also ensure best price of the product and alsoif any complaint then after sale service to beprovided to the consumer .This lead to emergenceof marketing.

Modern Concept of Marketing

Modern concept of marketingAccording to the modern concept, marketing is

concerned withcreation of customers. Creation of customers meansidentification of consumer needs and organisingbusiness to satisfy these needs. Marketing in themodern sense involves decisions regarding thefollowing matters;1. Products to be produced2. Prices to be charged from customers

3. Promotional techniques to be adopted to contactand influence

existing and potential customers.4. Selection of middlemen to be used to distributegoods & services. This concept of marketing isregarded as consumer oriented as the emphasis ofbusiness is laid on consumer needs and theirsatisfaction.


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Role of marketing

Role of marketing in businessMarketing involves ascertaining the needs andrequirements ofcustomers.This enables the firms to produce goods

and servicesaccordingly. Demand for goods and services iscreated through the techniques of advertising andpersonal selling.The role of marketing in businesssuccess has become vital because of the followingreasons.1. Technological changes are taking place at fastpace.

2. Competition has become intense in the market.3. Consumer tastes and preferences are changingvery fast.4. Production is organised on a large scale.

Role of marketing in society

Marketing has also an important role in

society.;1.It makes new and better products available topeople.2.Increasing their standard of living.3. It helps in creation of new jobs.4.It bridges the gap between production and sale ofgoods, making economic activity possible. Itintegrates agricultural and industrial sectors. Overall

it leads to economic development of the country.


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Objectives of marketing

Marketing activities are organised to achieve thefollowingobjectives:1. Consumer satisfaction : Marketing activitiesare organised with the objective of ensuring thatconsumers get maximum satisfaction from the useof the product. Consumer satisfaction ensuressteady and growing demand for firms products.

2. Product development :This objective aims atdeveloping newand better products, which may provide greatersatisfaction toconsumers. Product development is necessary forthe survivaland growth of the firm.

3. Sustaining Customer loyalty : If customerscontinue to makerepeated purchases of goods and services, it ispossible to sustain the demand for the products ofthe firm.4.Earning profits : Business must earn sufficientprofit. Marketing activities are organised with theobjective of earning adequate profits for the firm.

5. To secure competitive advantage :Thisobjective of marketing ensures that a firmsproducts are preferred over competitors product.Competitive advantage is achieved through costefficiency and quality improvements of theproducts.6. Growth in Sales : Marketing aims at increasingthe sale of


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firms products. This is necessary to maintain orincrease themarket share of the firm. Market share means

percentage demand satisfied by the firm for aparticular product. Growth in sales ensures survivalof the firm in the long run.7. Creation of goodwill :This objective ofmarketing ensures that a business firm is regardedas a useful part of society engaged in satisfyingconsumer needs. This help business firms to surviveand grow.

Nature of marketing

1.Marketing is essentially a managerialactivity; It involvesdecisions regarding product, prices, promotion andplace with the

objective of providing satisfaction to consumers forthe money they pay and earning profits for thebusiness firms.

2.Marketing starts with the identification ofconsumer needs :Once consumer needs areidentified, goods and services are designed anddeveloped to satisfy those needs. Goods are

produced by production department according tomarket requirements and as determined by themarketing department. This requires proper co-ordination between the two departments.

3.Advertising and personal selling are

important tools of


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marketing; They create an awareness amongconsumers of their needs for goods and services.These activities help in creating demand for

products. This demand is met by distribution ofgoods and services through various channels. After-sale service is also provided to consumers.

DISTINCT MARKETING CONCEPTSStudies have revealed that differentorganisations havedifferent perceptions of marketing and it has

lead tothe formation of different concepts ofmarketing suchas:1.The Exchange concept:a)Exchange of product between seller and buyer.b)marketing is much more broader than exchangeand exchange is only a part of it.

c)it does not cover other aspects of marketing like :1.concern for the customer2.creative selling3.generation of value satisfactions4.integrated action for serving the customer

2.The Production concept:a)All the focus is on the production.

b)Concentrate on achieving high productionefficiency, low cost&mass distribution.c)This concept also fail to understand the needs ofthe customer as they believe that the steep declinein the unit cost arising from the maximization ofoutput would bring them all the customers and theprofit they need but this will not give them the


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customer support as the customers are motivatedby the variety of considerations in their purchases.d)As a result ,the production concept also fails to

serve the rightmarketing philosophy.e.g .In expensive Toys ,electronics

3.The Product concept:a)This concept is based on product excellence-improvedproducts ,new products and ideally designed and

engineered products.b)It also places the emphasis on quality assurance.c)They spend considerable time and money onresearch anddevelopment and bring in new variety of productsyet they fail in the market.d)They do not bother to study the market and theconsumer in depth.

e)they get so engrossed in their product that theyforget to find out what the customer actually needand what they would gladly accept.f)It leads to marketing myopia.

Marketing Myopiaa)marketing myopia means crooked perception ofmarketing and

short sightedness about business.b)Excessive attention to the production or productor selling aspects at the cost of customer and hisactual needs ,creates a myopia.c)it leads to wrong or inadequate understanding ofthe market and hence failure in the market place.d)It also leads to a wrong understanding orinadequate understanding of the very nature of the

business thereby affecting its future.


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e)Since The business keep changing with times butthe basicfundamental characteristics related to human need

which business seek to serve and satisfy through itsproducts should be maintained.f)they should define their business according totheir fundamentals and not in the terms of theproducts and services manufactures at given pointof time.E.g. movie makers should define their business as

entertainment.

4.The Sales concept:a)The sales concept maintains that a companycannot expects itsproduct to get picked up automatically by thecustomers.b)The company has to consciously push its

products.c)Aggressive advertising ,high power personalselling ,large scalepromotion ,heavy price discounts ,strong publicityand public relations are the normal tools that rely onthis concept.d)In this kind of concept companies believed thatselling is

synonymous with marketing but in reality there is agreat deal ofdifference between selling and marketing.

Marketing Selling


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1.Marketing starts with

the customer ,present

and potential and

focuses constantly on

the need of the buyer

.Buyer is the centre of

the business universe

.activities follow the

buyer and his needs.

1.Selling starts with the

seller .It focuses on the

need of the need .Seller is

the centre of the business

universe .activities starts

with sellers existing

products.

2.Emphasis onidentification of a

market opportunity

and fulfilling the needs

of the customer.

2.Emphasis on saleablesurpluses available within

the

corporation.

3.Seeks to convert

customer needs intoproducts.

3.Seeks to convert

product into cash,concerns itself with the

tricks and techniques of

getting the customers to

buy the product available

with the salesman in

exchange of cash.

4.View business as

customer satisfying

process.

4.View business as a

goods producing

process.

5.It is concern with the

value satisfaction

customer should get

from the exchange.

5.Overemphasis the

exchange aspect without

caring for the value

satisfaction inherent in


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the exchange.

6.The firm makes atotal product offeringthat would match andsatisfy the needs ofcustomers.

6.The firm makes the

product first and then

figure out how to sell it

and make profit.

7.Adopting more

innovative technology to

provide

better value to the

customer.

7.Emphasis on staying

with the existing

technology and

reducing the cost of

production.

8.If the enterprise has a

customer orientation

concerned more about

his needs ,and makegenuine efforts to

satisfy those needs

,then it is practicing

Marketing.

8.If the enterprise has

internal orientation

concerned more about

itself and its products andthe need to dispose off its

products ,then it is

practicing Selling.

9.Consumer determines

price .price determines

cost.

9. Costs determine price.

10.They are seen as

vital services to be

provided to the

customers keeping in

mind their convenience.

10.Transportation,storage

and

other distribution

functions are


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the ever changing customer preferences anddesires.

2.Long term profitability;Customersatisfaction,which is a majortheme of the marketing concept does not preachthat a firm mustgenerate consumer and forget the other goals of theorganization .Instead it should treat customer as apathway to the attainment of all the goals of theorganization .And ,inthis process ,the Organisational

goals including profits are automatically realized.The Market Concept never suggests that profit isunimportant to the firm but are essential for thesurvival and growth of any business.

3.Integrated Management action;AllOrganisational departments should be wellcoordinated keeping marketing as the pivot.Lack of

coordination between different departments orfunction can hamper the performance of theorganization .Themarketing department should bewell coordinated with other departments like R&D,finance ,personnel and manufacturing. Theorganisations that do not practice integratedmanagement ,the departments are preoccupiedwith the optimisation of their specific activities thus

effecting the overall result.e.g. the engineering department may create asubstandard product to save cost of production.


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Who benefits from the Marketing

Concept

1.The OrganisationThe organisation keep itself inthe pace with the times and through contineousmarketing audit ,market research and consumertesting .It is quick to respond to changes in thebuyer behavior ,rectify its products and give greatimportance to planning ,research and innovation.

2.The Consumer ;As the organisation improve itsproducts ,it benefits its consumers as they getbetter quality ,low price ,improved/new productsand ready stocks at convenient places.

3.The Society ;Since the Organisations areproducing products as per the consumers so it

ensures that the societys economic resources arechannelised in the right direction. It also createsentrepreneurs and managers in the given society. Itimproves the standard of living of the people andaccelerates economic development of the society asa whole.

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marketing management naveen

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