Marketing and Services Management

By Prof.Sunil B Rao, Principal - IAME -Bangalore

Marketing and Services Management


You will be learning;• Meaning and definition of market, concept of market,

meaning and definition of marketing, Principles of marketing , nature of marketing, scope of marketing, importance of marketing, role of marketing in economic growth, advantages of marketing, approaches to study of marketing and economic development, distinction between marketing and selling, functions of marketing, steps in marketing management process, recent trends in marketing,E-business,principles of e-business, advantages of e-business, tale-marketing-business, green marketing, retailing, relationship marketing, customer relationship management.


Market• An actual or nominal place where forces of demand and

supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

• Markets include mechanisms or means for • (1) determining price of the traded item, • (2) communicating the price information,• (3) facilitating deals and transactions, and • (4) effecting distribution. The market for a particular item is

made up of existing and potential customers who need it and have the ability and willingness to pay for it.


Concept of market

• A Market is one of many varieties of systems,Institutions,procedures,social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and service by barter.


Meaning and Definition of marketing

• Definition of ‘Marketing’ What is Marketing: According to Philip Kotler, “The term Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others” is known as Marketing.


Principles of marketing

• Marketing is a business strategy that organizations use to promote their products and services to the target audience and it also plays a big role in determining the success or failure. According to marketing professionals, a successful marketing plan should comprise of the five different elements also known as the five P's or principles of marketing. The five P’s are; product, price, promotion, place and people.



• Marketing management includes those activities by which management is able to satisfy customers with a view to earn profits. The main principles of marketing management are as follows

1. Sound Planning2. Motivation3. Proper directions



4. Decision Making5.Effective Organization6.Sales promotion7. Research and Development


Nature of marketing,

• The Nature of Marketing are described as below –Customer Focus – As we know that the main focus of marketing is the customers. Thus, the marketing intends to satisfy the needs or wants of the customers. Due to this, a marketer can optimise its cost for the customer and allowing the organization to focus on its core competencies in order to achieve its goals - See more


Scope of marketing

• Marketing concept holds that achieving goals of the organization depends on determining the needs and wants of the target markets and delivering the desired satisfaction more effectively and efficiently than do the competitors


Traditional Concept of Marketing

1. The exchange orientation2. The product orientation3. The production orientation4. The Sales Orientation 5. The Marketing Concept


Modern Concept of Marketing

1. Customer Orientation 2. Integrated Marketing3. Profitable Sales through customers

satisfaction4. Customer Welfare


Importance of marketing

Marketing to SocietyMarketing to the firm Marketing in underdevelopedMarketing in developed economyMarketing in a seller market



Importance of Marketing to the firma) Helpful in business planning and decision

makingb) Helpful in increasing the profitsc) Helpful in communication between firm and

society


Importance of marketing Society

a) Raises Standard of livingb) Provides employmentc) Decreases Distribution Cost



Importance of marketing in underdeveloped/Developing Economy

Importance of marketing in developed Economy

Importance of marketing in seller or buyer’s market


Goals of Marketing

• As an economics activity, marketing has four objective

1. Creation of utility Place Utility Time Utility Possession Utility2.Cost Reduction3.Price Stability4.Maximizes life quality


Distinguish b/w Sales and MarketingSales Marketing

Sales•The Manufacturer begins his activity in the factory by producing the goods•The focus of the marketer is on selling the product•Push Strategy•It aims at increasing the sales volume•Increase in sales volume increase profits•Short term Objective

Marketing•The Manufacturer begins his activity in the market by assessing the needs and wants to unsatisfied customer•The emphasis or focus of the marketer is to satisfy customer needs and wants•Pull Strategy•It aims to increase the consumer satisfaction•Long term Objective


Functions of Marketing

• Exchange Function-a) Buying b) Assemblingc) Selling • Physical Supply Functiona) Transportationb) Warehousing or Storage


Functions of Marketing• Facilitating functionsa) Brandingb) Packing and Packagingc) Gradingd) Labelinge) Standardizationf) Market Financeg) MISh) Market Researchi) Market Risk


Recent Trends in Marketing

A. E –businessB. Tele-MarketingC. M-BusinessD. Green Marketing E. RetailingF. Relationship MarketingG. Customer Relationship Management


E –Business

• Electronic business, commonly referred to as e-business may be defined as the utilization of the information and communication technology in support of all the activities of business


E-Marketing

• E-Marketing is one aspect of an organization function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders


Tele-Marketing

• Use of the telephone to market goods or services directly to prospective customers


M-Business• Mobile business development is a category of business

development which focuses on attracting new customers in the Mobile Web markets. There are large efforts being made to make innovative mobile ICT services work. Examples of these services include mobile tourist guides and shopping guides for consumers. As an emerging trend, technology and service providers combine their expertise and resources to design these services. This incorporates designing several models: the Value network, a Value proposition, a Revenue model and a Technological architecture


Green Marketing• Green marketing is the marketing of products that are

presumed to be environmentally preferable to others. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are environmental marketing and ecological marketing.


Retailing • Retail is the sale of goods and services from individuals or

businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. In the 2000s, an increasing amount of retailing is done using online websites, electronic payment, and then delivered via a courier or via other services


Relationship Marketing• Relationship marketing was first defined as a form of marketing developed

from direct response marketing campaigns which emphasizes customer retentionand satisfaction, rather than a dominant focus on sales transactions.

• As a practice, relationship marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.

• With the growth of the internet and mobile platforms, relationship marketing has continued to evolve and move forward as technology opens more collaborative and social communication channels. This includes tools for managing relationships with customers that goes beyond simple demographic and customer service data. Relationship marketing extends to include inbound marketing efforts, (a combination of search optimization and strategic content), PR, social media and application development.

http://en.wikipedia.org/wiki/Public_relations


Customer Relationship Management

• Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support.


CRM


You have learnt • Meaning and definition of market, concept of market,

meaning and definition of marketing, Principles of marketing , nature of marketing, scope of marketing, importance of marketing, role of marketing in economic growth, advantages of marketing, approaches to study of marketing and economic development, distinction between marketing and selling, functions of marketing, steps in marketing management process, recent trends in marketing,E-business,principles of e-business, advantages of e-business, tale-marketing-business, green marketing, retailing, relationship marketing, customer relationship management.

Documents

Marketing and Services Management