module 1 mm notes

8/8/2019 Module 1 Mm Notes

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MODULE 1

1. Define marketing management? (3)

2. There are five alternative concept under which organization conduct their

marketing activities Elaborate (7)3. Difference between product and service. Briefly explain with examples the

classifications of consumers and industrial product.(7)

4. What are relations marketing?(3)5. Differentiate between marketing concept and selling concept(3)

6. Explain system approach to study marketing with the help of a diagram(7)

7. All organizations need marketing. Do you agree to this statement? If so give

reasons in support of your answer along with relevant examples from businessand non business sectors.(10)

8. Explain in brief the functions of marketing management.(10)

9. Explain very briefly the concept of integrated marketing and its relevance in

present day context.(3)10. Define the term marketing mix.(3)

11. Discuss the importance and characteristics of service marketing(10)12. Explain the ethical issues involved in marketing.(7)

1) Define marketing management.

Marketing is total system of business activities designed to plan, price, promote,and distribute want-satisfying products to target markets in order to achieve

organizational objectives. This is defined have two significant implications:

i. Focus: the entire system of business activities should be customer oriented

customers wants must be recognized and satisfied.ii. Duration: marketing should start with the idea about the want satisfying productand should not end until customer wants are completely satisfied, which may be

sometime after the exchange is made.

2) There are five alternative concepts under which organizations conduct their

marketing activities Elaborate

There are 5 competing concepts under which organizations conduct marketingactivities they are

i. Production concept

ii. Product conceptiii. Selling concept

iv. Marketing concept

v. Societal concept

Production concept: This concept holds the view that consumers will prefer, produce tat

are widely available and inexpensive. Those managers working in production oriented

business will concentrate on achieving high production. Low cost and mass distribution.


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Product concept

This concept holds the view that customers will favor those products that offers the mostquality, performance .manager in these organization make efforts to improve quality

overtime. They assume that the customers admire well made product. The problem or

drawback of this concept is that managers gets bug down with the product instead ofrealizing what markets need. The companies which is product oriented will have very

little input from the customers. They will not brother to study the competitors product.

They believe that engineering division can produce an exceptional product.

Selling concept

This concept assumes that customers if left alone will ordinarily not buy enough of

organization products. The organization must, therefore undertake aggressive selling andpromotion efforts.

This concept assumes that consumers that consumers typically show resistance to buy

and therefore must be coaxed into buying. It also assumes that the company has a battery

of effective selling tools to stimulate more buying.

Marketingconcept

This concept assumes that, the key to achieve organizational goal consists of the

company being more effective than competitors in creating, delivering and

communicating, customer value to its chosen target markets.

The marketing concepts can be expressed in many ways:1. Love the customer not the product

2. You are the boss {customer}

3. Have it your way

Marketing success rests on 3 pillars

A} target marketsB} customer needs

C} integrated marketing

A) Target markets: Companies prepare exclusive marketing program for each of the

target markets.

B) Customer needs: company may define a target market, but unable to understand the

customer needs. Understanding the customer needs is not always simple. Somecustomers have needs of which they are not fully conscious or they cannot express the

same or sometimes they use words which need interpretations.

c) Integrated marketing:

When all the departments in the company work together to serve the customers interests,

the result is integrated marketing. Integrated marketing takes place on 2 levels. First, the

various marketing functions like sales, advertising, customer service, market researchmust be work together. Secondly other department like manufacturing, engineering, all

departments must work together.


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Societal marketing:

Societal marketing concept not only takes care of needs, wants and interest of

target markets and to the desired satisfaction more effectively and the societys wellbeing

Societal marketing calls for the inclusion of 4 criteria in the marketing:1. costumers needs and wants

2. costumers interest

3. organizational interest4. societys interest

What do you mean by needs and want?

Need:

Need is a basic human requirement .people need food, air, water etc to survive. Peoplealso have a need for recreation, education.

Want:

Need becomes a want, when they are directed to specific objects that might satisfy theneed.

E.g. A person needs food but wants rice and dal. Another person needs food but want

sandwiches and soft drink.Demand:

Demand are want for a specific products backed by ability to pay. Many wants Benz car,

few can offered it. Therefore while ascertaining demands markets must not only measure

how many people want their product but also how many would be willing to pay andbuy it.

Marketers create needs is wrong. Markets do not create needs. Needs exist in the

market. Marketers might promise that the idea of owing a lance would satisfy a personneed for social status. They do not however create the need for social status.

Society (human

resource)

Consumers (want

satisfaction)

Company

(profit)

Societalmarketing

concept


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Explain in briefly the functions of marketing management

The scope of marketing is very wide. A number of functions are inherent in any

marketing on basis of various utilities like time and Place utility and Possession utility.

1. Buying function

2. Assembly function3. Selling function

1. Transportation

2. Inventory management

3. Ware housing

4. Material handling

1. Financing

2. Risk taking

3. Standardization4. After sales services

I. Functions of Exchange:

Buying Function

A manufacturer is required to buy raw material for production purposes similarly awholesaler has to buy good from manufacturer for selling it to retailer. A retailer sells the

goods to the customer. The function of buying has to be done at various levels. Buying

involves transfer of ownership from seller to buyer.Assembly function

Goods purchased from various sources and assembled at one place, to suit the

requirement of the buyer.

Selling functionsSelling function involves, sale of goods from seller to buyer. Selling function is very

important to all organization due to the fact the selling has to be done against severe

competition.II Function of Physical Distribution:

Transportation

This includes mode of transport, selection of transporter or carrier, freight coincide ratiolike freight paid or to pay

Inventory management

Function ofExchange

Function of

PhysicalDistribution

Function of

facilities


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These include short term fore casting, product, size and location of warehouse, just in

time and push or pull strategy adopted

WarehousingThe following functions are included like space requirement, suitability of location,

layout design and physical arrangement

Material handlingThis includes equipment selection. equipment replacement, storage methods and receipts

and issuesIII Functions of facilities

Financing

This means extending credit facilities during selling, if organization has to do this it must

have adequate working capital. Marketer has to plan

Short term financeLong term finance

Risk taking

There are innumerable risk which marketer has to bear while marketing a product. Goods

may be destroyed by fire. The marketer needs to cover the goods through insuranceStandardization

Buyers prefer standardization goods. This will prevent the buyer from wasting time ininspecting 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 specification

Grading is also part if standardization. Its is a process of sorting out goods into a numberof graded according to some characteristics like quality and size.

Difference between Selling and marketing Briefly explain

Selling Marketing

1. selling is a activity designed to meet

sellers need

1. marketing is a function designed to meet

customers need

2. selling concentrate on sales volume 2. marketing concentrate on quality and

customer satisfaction and hence volume

3. selling has short time goals 3. marketing has long time goal

4. selling activity converts goods into cash 4 .marketing activity converts consumers

needs into products5. selling ends with the transfers from

sellers to buyers

5. marketing starts with the producing as

per customers requirement

6. product is the prime concern of sellingactivity

6. Customers and his preferences are theprime concern of marketing activity.


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Starting

point Products Means Ends

Factory Products Selling and Profits throughPromoting sales volume

The selling concept

Target customer integrated profitsMarket needs marketing customerSatisfaction

The marketing concept

What is relationship marketing?

Many cannels partnership are the part of a broader, significant trend called relationshipmarketing. in the context of distribution channels, relationship marketing refers to the

concern efforts by a company not only to work closely with customers to better

understanding and satisfying their needs but also to develop long term , mutually beneficial relationship with them. Conversely the customers can seek to engage in

relationship marketing with their suppliers.

Relationship marketing aims to build long-term mutually satisfying relations with keyparties, which ultimately results in marketing network between the company and its

supporting stakeholders

Evolution of market

Traditional concept of marketing was concentrated only on profit. Technologies changes

in production leads to progress in production and also human needs wants increased inthe scope of marketing function. The following are the various stages in evolution of

marketing.

1. self sufficient stage Every family was self sufficient unit. They could satisfy their

need and there was no exchange. There fore the concept of marketing did not exit

at that time. Customer was satisfied with product that is available and affordable

2. Exchange oriented stage


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People came to know the importance of time, place and possession utilities

competition was absent. It became necessary for the producer to bring their

products together to a central place for the purpose of exchange. In this waymarket came into existence this is the first stage in the evolution of marketing.

3. Production oriented stageThis is the stage when it was felt if the product is good, customer will buy and

there is no need in the market, the purpose of purchasing an item is to consume.

4. Sales oriented stage

During this stage, development of transport and communication, living standard

improved. Industrial also improves. It was through that customer will not buy

enough unless he is approached and convinced.

5. Market oriented stage

This is the stage, when realization comes to the mind that goods cannot move

unless marketed. It was felt that needs/ wants of the customer to assess. The mainmotive of the business is to make and sell what customers want at a price. He is

willing to pay and at that time when he wants. The main task was to conductresearch. Choose target market and draw marketing programs. The confusion

between selling and marketing became clear. Selling focuses on the needs of

buyers. Selling assumes profit through sales but marketing focuses on the needs

of the buyer. Selling assumes profit through sales volume. Whereas marketingconcept assumes profit through customer satisfaction

6. Customer oriented stageCompetition became keen. Greater risk was involved in investment because

customer taste and demand was changing continuously. It was realized that

knowing customer needs and wants alone is not sufficient. All activities theorganization should be directed towards customer and for customer only.

7. Human oriented stageAt this stage there was a common for environmental problems under this stage. It

is not merely supplying better quality of goods but emphasis is on delivering

better quality of life. Marketing task is not only to help to recognize business

opportunity and serve the public but also to enhance the quality f the life in thesociety to monitor customers changing needs and wants and to adjust the

companies product


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What are the Four Ps of marketing?

Product

A product is an offering which a business offers to customers. Strategies are needed fordeciding what products to introduce, managing existing products over time, and dropping

products that are no longer viable. Strategic decision must also be made regarding

branding, packing and other products features such as warranties.

Price

Setting the base price for a product is a marketing decision. Others necessary strategies

preferred from producers to customers and items within a product line, terms of sale, andpossible discounts. An especially challenging decision is selecting the price for the new

product.

Promotion

Strategies are needed to combine individual methods such as advertising personal selling

and sales promotion into an integrated communications campaign. In addition,

The Four Ps of the Marketing Mix

Product Place

Price Promotion

C


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promotional strategies must be adjusted as a product moves from the early stages to the

later stages of its life.Place

The distribution strategies followed by the company. Decisions regarding the number of

channel members, type of channels used etc

What is the importance of marketing in the current era?

Marketing management today is the subject of growing interest in all types of

organizations, within and outside the business sectorsIn the business sectors

In the business sectors marketing entered different companies conscious at different

times. General electric, general motors, P&G were among the early leaders. Marketing

spread rapidly in consumers packaged goods companies. Within the past decadeconsumers service firms, especially airlines and banks have moved towards modern

marketing

The most recent business groups to take an interest in marketing are professional service

provider, such as lawyer, accountants etcIn non-profit sectors

Marketing is increasingly attracting the interest of nonprofit organizations such ascolleges, hospitals, churches etc.

To sustain their organization in the face of rapidly changing consumers attitudes and

diminishing financial resources these organizations turning to marketing

Ex: as hospitals costs soars, many hospitals have turned to marketing. They aredeveloping product line plans, improved emergency room service advertising programs.In the global arena

Marketing theory and practice at one time limited to certain western countries are rapidlyspreading throughout the world. The reasons are that many large companies have gone

global and brought their marketing practice with them. In competing for new markets,

they have forced the local firms to defend their turf by learning and refining their ownmarketing practices

Services marketing

A large number of business organizations offer services airlines, banks, hotels,

insurance companies, consulting firms, medical & law practices, entertainment

companies, real estate firms, financial services firms, retailers etc

Goods-Services Continuum


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Characteristics of services

-Intangibility-Inseparability

-Perishability

-Heterogeneity

The service profit chain

1. Internal service quality2. Satisfied & productive service employees

3. Greater service value

4. Satisfied & loyal customers

5. Healthy service profits & growth

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