2

Meaning, Functions and Importance of

Marketing Management

“Management is simply the process of

decision making and control over the
action of human beings for the express
purpose of attaining predetermined goals”
– Stanley Vance
 Marketing:


 Marketing is the activity, set of

institutions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large. (Approved October 2007)
Meaning of Marketing Management
1. “Marketing is the performance of business
activities that direct the flow of goods and
services from producer to consumer or user.”
American Marketing Association

2. “Marketing is a total system of interacting

business activities designed to plan, price
promote and distribute want satisfying
products and services to present and potential
consumers.” - William J. Santon
 Definition of Marketing Management

1. “Marketing Management is the marketing

concept in action” - William J. Stanton

2. “A branch of the broad area of management.

Marketing management is concerned with
the direction of purposeful activities towards
the attainment of marketing goals”
- Cundiff and Still
 Basic concepts.
 Market
 A market is the set of all actual and
potential buyers of a product or service.

 A market is the total value and /or volume

of products that satisfy the same customer
needs.
 Need.

A need is defined as“ a state of felt deprivation in a person"

(Kotler, Chandler, Gibbs, & McColl 1989, p. 4).

This refers to a general feeling of needing something. This

can include needing physical items such as food, clothing, a
place to live, or a mode of transport.

It can also refer to a more psychological need such as a

need to fit in and feel accepted, a need to express oneself,
or a need to feel loved and valued.
 Want.
 A want is defined as "the form human needs take as
shaped by culture and individual personality" (Kotler,
Chandler, Gibbs, & McColl 1989, p. 5). This refers to the
specific item that a person wants to fill a certain general
need.
 For example, a general need for clothing may result in
an individual wanting a certain pair of jeans and a
certain jumper.
 One of the main differences between wants and needs
is that needs refers to a general desire, while wants
refers to a specific desire.
 Marketing & Selling
SELLING MARKETING
1. Starts with seller 1. Starts with buyer
2. Seeks quickly convert
product into cash 2. Seek to convert
customer needs into product
3. Business as goods producing pro. 3. Customer satisfying
process
4. Make product & find how to sell 4. What is to be offered
determined by customer
5. Stay with existing technology 5. Innovation to produce best
6. Cost determines price 6. Consumer determine price
7. Each dept., functions separately 7. Consumer integrated
8. Selling is central function 8. Marketing is central function
 Elements of Marketing Mix
PRODUCT : Variety
Quality
Design
Fea ture Goods & Services.
Brand Name
Packaging
Services

PROMOTION : Advertising
Personal Selling Activities to communicate.
Sales Promotion
Public Relations
PLACE : Channels
Coverage
Locations To make product available delivery/distribution.
Inventory
Transportation
Logistics
PRICE: Least Price
Discounts
Payment Period Amount that customer pay.
Credit terms
 Factors affecting the Marketing Mix
A. Market Factors :
1. Consumer Behavior (Need, Will, Preference)
2. Competition
3. Distribution System
4. Govt. Control

B. Marketing Factors :
1. Product Planning
2. Brand Policy
3. Packaging Policy
4. Distribution Channel
5. Personal Selling
6. Advertisement Policy
7. Market Research
 Marketing Process
* MARKETING PROCESS:
It is the process of analyzing marketing
opportunities, the process of selecting target
markets, the process of developing the marketing
and the process of managing the marketing
efforts.
*
MARKETING PROCESS INVOLVES FOLLOWING
STEPS :
1. Measuring & forecasting demand
2. Market segmentation
3. Market targeting
4. Market positioning
 * IMPORTANCE OF MARKETING :

FIRM :
- Revenue generation to the firm
- It is the basis for making decisions
- Helps management to take innovative decisions
* SOCIETY :
- Raise the study of living
- Increases employment opportunities
- National growth through revenue generation
- Helps to maintain economic stability
- Brings new variety, quality to the customer
- Improves Productivity
- Utilization of resources.
 Marketing Environment
* COMPANY’S MICRO ENVIRONMENT :
Micro-Environment : Factors that affect its ability to serve its customers, suppliers,
marketing channels competitors & public
Macro-Environment : It consists of social forces that affects the micro-environment.
Ex: Demographic, Economic, Technological, Political & Cultural forces, Environmental
(Pollution, Energy, Govt. norms)
*ELEMENTS INVOLVED IN MARKETING ENVIRONMENT :
1. COMPANY : * Finance
* AIC
*R&D
* Purchase
* Sales
* Service
2. SUPPLIERS : Provides resources needed by the company to produce its goods &
services.
3. MARKETING & CHANNELS : Help company to promote & sell as well as distribute
goods to the end users.
4. CUSTOMER :
5. COMPETITORS :
6. PUBLIC : Media, Customers, Financiers, Social groups.
7. GOVERNMENT :
 Activities Involved Under Marketing Mix

1. PRODUCT :A thing that can be offered to a market to satisfy a want or

need. ( Policies related to product.)

Ex : Variety, Quality, Features, Design, Brand Name, Packaging,

Warranties, R & D.

2. PRICE : Amount of money that being exchange by the customer to obtain a

benefit of the product or service owning. ( Least price, discounts,
allowances, payment period, credit terms.)

3. PROMOTIONAL ACTIVITIES :
- Advertising, Media, Budget allocation.
- Personal selling, special selling plans.
- Publicity & Public relations.
4. PLACE : Distribution activities.
- Transportation, Warehousing, Inventory Control.
- Types of Intermediates, Channel design location
of outlets, Channel Percentage.
- Dealer relations.
 MARKETING PROGRAMME
- Marketing programme involves determining the level, mix &
allocation of marketing resources in pursuit of marketing
objectives.
- It is a policy decision, defining the activities & the course of action
in carrying out those activities, directing towards the
achievement of goals.
- It includes marketing mix & marketing strategies :
Marketing Programme :
A. Planning & Marketing Programme :
1. Demand variables ( Price, taste of consumer, and season ).
2. Marketing variables (Internal),(E.g. Packaging, distribution,
communication).
3. Marketing Mix.
4. Marketing strategy.
B. Implementation Of Marketing Programme :
1. Marketing efforts.
2. Marketing allocation.
3. Marketing responsibilities.
 MARKETING STRATEGY
A set of objectives, policies, sales that guides over
time the firms marketing efforts :

- Policy to be adopted to face sudden changes

in the market situation.
- Factors affecting marketing strategy :
1. Competitors counter moves.
2. Synergistic potential (effective
advertisement).
3. Substitutability .
4. Diversity in productivity (Effectiveness of
advertisement).
5. Elasticity of marketing inputs.
Functions of Marketing Manager
1. Integrated Marketing
i. Collection of necessary information regarding
marketing analyzing the data and draw conclusions
ii. Analyzing the data and draw conclusion
iii. Product development
iv. Search and development of new marketing
techniques
v. To check out detailed marketing programmed
vi. To implement that marketing programmed
vii. To coordinate between the wants of the customers
and their satisfaction
2. Determining Objective
3. Product Policy
4. Proper Planning
i. Marketing Research, forecasting the demand
and developing the marketing activities
ii. Determining product line strategy and
planning for product departments
iii. Planning sales policies and their
implementation
iv. Planning the long term marketing
programmed
v. Coordinating the activities of production,
finance and service departments
5. Sales Management
i. To direct the sales manager to regulate sales
ii. To organise sales territories and to fix their
sales quota
iii. To select and train personnel for the sales
department and organise sales.
iv. To organise and develop distribution
channels
v. To advertise and organise sales promotion
and public relations
6. Service.
 Managerial functions of Marketing
1. Determining the Marketing objectives
2. Planning
3. Organising
4. Coordinating
5. Staffing
6. Operating and Directing
7. Analysing and Evaluating
8. Controlling
 Qualities of Marketing Manager
1. Enthusiasm, Patience, Timing and Judgment.
2. Liaison with other departments
i. With own departments
ii. with Own distributors
iii. With Other agencies
3. Thinking objectively
4. Loyalty towards company
5. Sympathetic
 Objectives of Marketing Manager
1. Increase in the volume of the sales
2. Increase the net profits of the company
3. Growth of the Company
 Principles of Marketing Management

1. Principle of Planning
2. Principle of Organization
3. Principle of Control
4. Principle of Direction
5. Principle of Objectivity
6. Principle of Sales Promotion
7. Principle of Motivation
8. Principle of Research and Development
9. Principle of Consumer’s Satisfaction
 Factors Influencing the adoption of
the Marketing Concept
1. Population Growth
2. Growth in Disposable Personal Income
3. Leveling off Income Distribution Pattern
4. Technological Changes
5. Changes in Marketing Channels
6. Transport Facilities
7. Growth of Mass Communication Media