MARKETING MANAGEMENT

1.MEANING 2.DEFINITION 3.EVOLUTION OF MARKETING 4.ROLE OF MARKETING IN BUSINESS AND SOCIETY 5.OBJECTIVES 6.NATURE 7. DISTINCT MARKETING CONCEPT 8.DIFFERENCE BETWEEN MARKETING AND SELLING 9.FEATURES OF MARKETING CONCEPT 10.WHO BENEFITS FROM MARKETING CONCEPT

MARKETING MANAGEMENT Meaning: Marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. Marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Marketing is regarded as production/sales oriented.

Definition The American Marketing Association (AMA) defines marketing as the process of planning and executing the conception ,pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing deals with products .A product can be a good ,service or idea.

A good ;A good is a physical entity i.e. it is a tangible product that can be touched and feel .e.g. a shirt or a bar of chocolate. A service :A service has no physical form or it is an intangible Product .A service is created when human efforts are clubbed with mechanical efforts to provide intangible benefits ,it gives some value to the consumer.. e.g. laundry ,healthcare, transportation, banking etc. An idea :Ideas provide intellectual or spiritual benefits to Consumers .e.g. politician selling idea like protection of human rights to political activity

Evolution of Marketing
1.The Stage of Barter ;Before the evolution of industrial Revolution ,the agriculturist ,whether he produced corn or cotton, meat or butter, disposed off the surplus in his immediate neighbourhood. These products were required in the neighbourhood by those people who were not engaged in the same activity .The agriculturist barterd the corn, cotton, meat and butter produced by him for leather, hand tools, utensils and furniture produced by the craftsman. There was no elaborate distribution system. This represented the stage of barter in the evolution of marketing. 2.The Stage of Money Economy; No fundamental or far reaching change took place in this stage of

production and distribution of goods. The change was replacement of barter system by the money system, pricing became the mechanism of the exchange process. 3.The Stage of Industrial Revolution; Far reaching changes took place in this stage. It introduced beginning of new business system. It introduced new products, new systems of manufacture, new modes of transportation and methods 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 of disposable income to large mass of people. 4.The Stage of Competition ;The mass production and mass distribution brought by Industrial revolution soon led to stage of competition. The situation demanded the firms to make conscious efforts to make sure their products were preffered overs those by their competitors. 5.The Emergence of Marketing;After the Second World War,the size and characteristics of markets in many countries of the world changed enormously. There was substantial increase in the population; the disposable increase per family increased, new industrial concerns sprang up, a great variety of new products and services strengthened the rapidly developing consumer market; so selling of products and services became very difficult and competitive Abundant choices were made available to the consumer and consumer occupied a place of great importance .The industrial firms realized that it was

not enough to make one time sale and they ensure that consumers come and buy their products again and 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 also if any complaint then after sale service to be provided to the consumer .This lead to emergence of marketing.

Modern Concept of Marketing Modern concept of marketing According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organising business to satisfy these needs. Marketing in the modern sense involves decisions regarding the following matters; 1. Products to be produced 2. Prices to be charged from customers 3. Promotional techniques to be adopted to contact and influence existing and potential customers. 4. Selection of middlemen to be used to distribute goods & services. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.

Role of marketing Role of marketing in business Marketing involves ascertaining the needs and requirements of customers.This enables the firms to produce goods and services accordingly. Demand for goods and services is created through the techniques of advertising and personal selling.The role of marketing in business success has become vital because of the following reasons. 1. Technological changes are taking place at fast pace. 2. Competition has become intense in the market. 3. Consumer tastes and preferences are changing very 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 to people. 2.Increasing their standard of living. 3. It helps in creation of new jobs. 4.It bridges the gap between production and sale of goods, making economic activity possible. It integrates agricultural and industrial sectors. Overall it leads to economic development of the country.

Objectives of marketing Marketing activities are organised to achieve the following objectives: 1. Consumer satisfaction : Marketing activities are organised with the objective of ensuring that consumers get maximum satisfaction from the use of the product. Consumer satisfaction ensures steady and growing demand for firms products. 2. Product development : This objective aims at developing new and better products, which may provide greater satisfaction to consumers. Product development is necessary for the survival and growth of the firm. 3. Sustaining Customer loyalty : If customers continue to make repeated purchases of goods and services, it is possible to sustain the demand for the products of the firm. 4.Earning profits : Business must earn sufficient profit. Marketing activities are organised with the objective of earning adequate profits for the firm. 5. To secure competitive advantage : This objective of marketing ensures that a firms products are preferred over competitors product. Competitive advantage is achieved through cost efficiency and quality improvements of the products. 6. Growth in Sales : Marketing aims at increasing the sale of

firms products. This is necessary to maintain or increase the market share of the firm. Market share means percentage demand satisfied by the firm for a particular product. Growth in sales ensures survival of the firm in the long run. 7. Creation of goodwill : This objective of marketing ensures that a business firm is regarded as a useful part of society engaged in satisfying consumer needs. This help business firms to survive and grow. Nature of marketing 1.Marketing is essentially a managerial activity; It involves decisions regarding product, prices, promotion and place with the objective of providing satisfaction to consumers for the money they pay and earning profits for the business firms. 2.Marketing starts with the identification of consumer needs :Once consumer needs are identified, goods and services are designed and developed to satisfy those needs. Goods are produced by production department according to market requirements and as determined by the marketing department. This requires proper coordination between the two departments.

3.Advertising and personal selling are important tools of

marketing; They create an awareness among consumers of their needs for goods and services. These activities help in creating demand for products. This demand is met by distribution of goods and services through various channels. Aftersale service is also provided to consumers. DISTINCT MARKETING CONCEPTS Studies have revealed that different organisations have different perceptions of marketing and it has lead to the formation of different concepts of marketing such as: 1.The Exchange concept: a)Exchange of product between seller and buyer. b)marketing is much more broader than exchange and exchange is only a part of it. c)it does not cover other aspects of marketing like : 1.concern for the customer 2.creative selling 3.generation of value satisfactions 4.integrated action for serving the customer 2.The Production concept: a)All the focus is on the production. b)Concentrate on achieving high production efficiency, low cost& mass distribution. c)This concept also fail to understand the needs of the customer as they believe that the steep decline in the unit cost arising from the maximization of output would bring them all the customers and the profit they need but this will not give them the

customer support as the customers are motivated by the variety of considerations in their purchases. d)As a result ,the production concept also fails to serve the right marketing philosophy. e.g .In expensive Toys ,electronics 3.The Product concept: a)This concept is based on product excellenceimproved products ,new products and ideally designed and engineered products. b)It also places the emphasis on quality assurance. c)They spend considerable time and money on research and development and bring in new variety of products yet they fail in the market. d)They do not bother to study the market and the consumer in depth. e)they get so engrossed in their product that they forget to find out what the customer actually need and what they would gladly accept. f)It leads to marketing myopia. Marketing Myopia a)marketing myopia means crooked perception of marketing and short sightedness about business. b)Excessive attention to the production or product or selling aspects at the cost of customer and his actual needs ,creates a myopia. c)it leads to wrong or inadequate understanding of the market and hence failure in the market place. d)It also leads to a wrong understanding or inadequate understanding of the very nature of the business thereby affecting its future.

e)Since The business keep changing with times but the basic fundamental characteristics related to human need which business seek to serve and satisfy through its products should be maintained. f)they should define their business according to their fundamentals and not in the terms of the products and services manufactures at given point of time. E.g. movie makers should define their business as entertainment. 4.The Sales concept: a)The sales concept maintains that a company cannot expects its product to get picked up automatically by the customers. b)The company has to consciously push its products. c)Aggressive advertising ,high power personal selling ,large scale promotion ,heavy price discounts ,strong publicity and public relations are the normal tools that rely on this concept. d)In this kind of concept companies believed that selling is synonymous with marketing but in reality there is a great deal of difference between selling and marketing. Marketing Selling

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. 2.Emphasis on identification of a market opportunity and fulfilling the needs of the customer. 3.Seeks to convert customer needs into products.

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 on saleable surpluses available within the corporation. 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 a goods producing process. 5.Overemphasis the exchange aspect without caring for the value satisfaction inherent in

4.View business as customer satisfying process. 5.It is concern with the value satisfaction customer should get from the exchange.

the exchange.

6.The firm makes a total product offering that would match and satisfy the needs of customers. 7.Adopting more innovative technology to provide better value to the customer. 8.If the enterprise has a customer orientation concerned more about his needs ,and make genuine efforts to satisfy those needs ,then it is practicing Marketing. 9.Consumer determines price .price determines cost. 10.They are seen as vital services to be provided to the customers keeping in mind their convenience.

6.The firm makes the product first and then figure out how to sell it and make profit. 7.Emphasis on staying with the existing technology and reducing the cost of production. 8.If the enterprise has internal orientation concerned more about itself and its products and the need to dispose off its products ,then it is practicing Selling. 9. Costs determine price.

10.Transportation,storage and other distribution functions are

merely a part of production 11.In firms practising function. 11.In firms practising

selling ,production is the marketing marketing is central function of the the business. central function of the business .The entire company is organized 12.Marketingviews the customer as the very purpose of the business ;sees business from point of view of the customer. 12.Selling views the customer as the last link in the business.

Features of Marketing Concept 1.Consumer Orientation ;Consumer orientation places consumer at the beginning as well as at the end of the business cycle.Consumer becomes the focal point of the business .Organisations should strive ,adapt and alter products to keep pace with

the ever changing customer preferences and desires. 2.Long term profitability;Customer satisfaction,which is a major theme of the marketing concept does not preach that a firm must generate consumer and forget the other goals of the organization .Instead it should treat customer as a pathway to the attainment of all the goals of the organization .And ,inthis process ,the Organisational goals including profits are automatically realized .The Market Concept never suggests that profit is unimportant to the firm but are essential for the survival and growth of any business. 3.Integrated Management action;All Organisational departments should be well coordinated keeping marketing as the pivot.Lack of coordination between different departments or function can hamper the performance of the organization .Themarketing department should be well coordinated with other departments like R&D ,finance ,personnel and manufacturing. The organisations that do not practice integrated management ,the departments are preoccupied with the optimisation of their specific activities thus effecting the overall result. e.g. the engineering department may create a substandard product to save cost of production.

Who benefits from the Marketing Concept 1.The Organisation The organisation keep itself in the pace with the times and through contineous marketing audit ,market research and consumer testing .It is quick to respond to changes in the buyer behavior ,rectify its products and give great importance to planning ,research and innovation. 2.The Consumer ;As the organisation improve its products ,it benefits its consumers as they get better quality ,low price ,improved/new products and ready stocks at convenient places. 3.The Society ;Since the Organisations are producing products as per the consumers so it ensures that the societys economic resources are channelised in the right direction. It also creates entrepreneurs and managers in the given society. It improves the standard of living of the people and accelerates economic development of the society as a whole. MARKETING PLAN