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CONCEPT OF MARKETING MANAGEMENT

The American Marketing Association defines a

market as the aggregate demand of potential buyers

for a product/service.

Philip Kotler defines a market as an area for

potential exchanges.

A market consists of the forces of demand and

supply facilitating an exchange process betweenbuyers and sellers.

Exchange is the heart of marketing.

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Concepts of a Market

Place Concept

A market is a convenient place for buyers and sellers to gather together

in order to conduct buying and selling activities. Eg wholesale or retail

market

Area Concept

A market develops in any area given the three pre requisites viz.

Two or more individuals with unsatisfied wants

Products for exchangeMeans of communication

The market may be local, national or international, based on the area

covered.

Demand ConceptIn the sense of demand, market means people with needs to satisfy,

money to spend and the will to spend.

Human beings have never ending wants and the seller seeks to

understand these needs and then develop a program to satisfy those

needs.

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Types of Goods

Products

Agricultural

Goods

Manufactured

Goods

Natural Raw

Material

Industrial

Goods

Consumer

Goods

Industrial

Goods

Consumer

Goods

Industrial

Goods

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MARKET COMMUNICATIONS

Body of Sellers Body of Buyers

Feedback

Information

Satisfaction

Dissatisfaction

Market

The Circle

of

Exchange

Flow of

Products

Flow of

Money

The Market Exchange Process

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Concepts of Marketing

American Marketing Association defines marketing as the

performance of business activities that direct the flow of goods andservices from producer to consumer or user.

Philip Kotler defines marketing as the set of human activities directed

at facilitating and consummating exchanges.

Modern definition is as followsMarketing is an ongoing process of

(1) discovering and translating consumer need and desires into products

and services (2) creating a demand for these products and services (3)

serving the consumer demand through marketing channels and (4)expanding the market even in the face of keen competition.

Therefore Marketing is a system of integrated business activities

designed to develop strategies and plans to the satisfaction of customer

wants of selected market segments or targets.

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MODERN MARKETING PROCESS

Market Anticipation

Exchange something of

value

Producers ConsumersMarketing

Mix

ProductPrice

PlacePromotionGoods Flow

Goods

Flow

Market offering

Customer demand through marketing research

Marketing Environment ; Govt, Suppliers,

competition, etc

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Systems approach to Marketing

A system is a set of interacting or interdependent components or

groups co-ordinated to form a unified whole and organized to

accomplish a set of objectives.

Adoption of a systems approach provides a good basis for the logical

and orderly analysis of marketing activities.

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SYSTEMS APPROACH TO MARKETING

ManagementControl

InputsCapital

Physical assets

People

Information

Process

Production

Finance

Personnel

Marketing

Output

Products and

Information

Objectives

Profits

Customer satisfaction

Social welfare

Feedback

Information

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Functions of Marketing

Selling, which includes product planning and development,

locating buyers, negotiating terms of sale, sale contract.

Buying

Standardization and grading

Financing

Marketing information

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Importance of Marketing

Long term success is assured for the organization.

It enables the firm to move quickly and capitalize on market

opportunities

Marketing risks can be reduced by understanding the market.Customer needs, wants and desires receive top consideration.

Greater attention is given to product planning and development.

Demand side of the equation is honoured more than the supply side.

More emphasis is given to R&D and innovation.It gives an integrated view of business operations and indicated

interdependence of different departments.

Profit through service motive is emphasized.