*MARKETING MANAGEMENTMODULE 1

Anirban / Micro Economics Module 1 / CCIM

*MARKETING MANAGEMENTchap 1Understanding Marketing Management

Anirban / Micro Economics Module 1 / CCIM

Marketing is everywhere. Formally or informally, people and organizations engage in a vast number of activities that could be called marketing. Good marketing has become an increasingly vital component for business success. And marketing profoundly affects our day-to-day lives. Good marketing is no accident, but a result of careful planning and execution. It is both an art and a science*

*What is Marketing?Marketing is the creation and delivery of standard of living to the society. - Prof. Malcolm McNair

Marketing is the business process by which products are matched with the market and through which the transfers of ownership are affected.- Cundiff and Still

*Objectives of marketing?Intelligent application of modern marketing policies.To develop marketing field.For guiding policies and their implementation for a good result.For suggest solutions by studying the problems relating to marketing. To find out sources for further information related to marketing.To revive existing marketing function, if shortcomings are found.To take appropriate actions in the course of action.

Marketing environment

(A)Task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company suppliers,distributors,dealers,and the target customers.*

(B) Broad environment

DemographicEconomicPhysical TechnologicalPolitical-LegalSocial-cultural

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*Nature of MarketingSpecialized business function.Socially desirable functionIntegrative functionReflects the business missionAdaption to environment variablesUniversal functionManagement function

*GoodsPhysical goods constitute the bulk of production and marketing efforts.Services A growing portion of business activities are focused on the production of services. The U.S. economy today consists of a 7030 services to goods mix. Scope of Marketing

Events Marketers promote time-based events such as trade shows, artistic performances, and the Olympics.Experiences By several services and goods, a firm can create and market experiences such as Walt Disney Worlds Magic Kingdom.

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Persons Celebrity marketing is a major business.

Places Cities, states, regions, and whole nations compete actively to attract tourists, factories, and new residents.

Properties Are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds).

Organizations Actively work to build a strong, favorable, and unique image in the minds of their target publics.

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Information Can be produced and marketed as a product. Schools, universities, and others produce information and then market it. Ideas Every market offering includes a basic idea. Products and services are platforms for delivering some idea or benefit.

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*Marketing FunctionBuyingAssemblingSellingTransportationStorageWarehousingFinancingPricingRisk-BearingStandardizationMarketing Information

*Importance of MarketingImportance of Marketing

*Importance of Marketing Contd.Importance to the societyDelivery of standard of living to the societyDecreases in the distribution costIncrease in employment opportunityProtection against business slumpIncrease in National IncomeImportance of marketing to the firmHelpful in business planning and decision makingHelpful in increasing profitsHelpful in communication between firm and societyImportance of marketing in developed economyImportance of marketing in underdeveloped or developing economyImportance of marketing in a sellers or buyers market

*Different between marketing and selling

Basis of DiffMarketing SellingOriginNew approachClassical approachActivitiesDiscovery & satisfaction of needOnly physical distribution of goods and servicesProduct oriented vs. customer orientedCustomer orientedProduct orientedTargetSatisfy customerEarn maximum profitApproach to profitmore profit through satisfactionOnly maximum profitNatureLong-term objectivesshort term objectiveViews businessCustomer satisfaction processGood producing processProduct determinationBy the buyerBy the sellerDetermination of priceConsumer determinesCost determinesView the customerMarketing views are impSelling views are impEmphasisProduct, promotion, pricing & distributionSelling Anyhow selling

*Basic marketing conceptNeeds, Wants and DemandsProductsValuesExchange, Transaction and relationshipMarketMarketers

Detail explanation is as under

*Basic marketing concept, cont..Needs, Wants and DemandsNeedsBasic Physiological or Primary NeedsSocio-Psychological or secondary needsGeneral needsWantsDemands

Projects

ValueCustomer perceived value=Benefits deriving from a product / Cost of acquiring the products

*Basic marketing concept, cont..Exchange, transaction and relationshipExchangeNeedsWantsDemandOffers for saleResearchesFactors affecting the exchange processDemand and SupplyPriceMarket information with sellers and buyersLegal control and regulations to ensure fair price.

*Basic marketing concept, cont..MarketsA market consists of all the potential customer sharing a particular need or wants who might be willing and able to engage in exchange to satisfy that need or want- Philip Kotler

MarketersA marketer is someone seeking a resource from someone else and willing to offer something of value in exchange. It is clear, that marketer is not a producer. Marketer is one of the parties of exchange- Philip Kotler

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Company orientation towards the Marketplace

The competing concepts under which organizations have conducted marketing activities include; the production concept, product concept, selling concept, marketing concept, and holistic marketing concept.

*Comparison of Different Marketing Orientation

ParametresProduct conceptProduction conceptSelling conceptMarketing conceptCompany policyCompany believes in its quality of product offered to customerCompany feels that customer should be satisfied and feel happy that value products are offered to them. Company attempts to cut costs and bring out better products.Company feels that with persuasion they would be able to sell their products and services.Try to understand customers needs and segment the target audience to serve them better.Production policyCompany sells products of reasonable qualityCompany sells what it can produce.Company offers products which are essentially alright but not perfect match of consumers need.Company offers products which will give maximum satisfaction to customers.

*Comparison of Different Marketing Orientation

ParametresProduct conceptProduction conceptSelling conceptMarketing conceptResearch and development policyTries to use research to get customers reasonable quality.To determine customer feelings to its quality and availability but not regularly.Company uses research to increase its sales without in depth analysis of customer needsCompany tries to understand consumer needs and evolve products to satisfy themProduct Quality PolicyFocus on quality improvementFocus on reduction and improving productivityFocus onQuality of product and its availabilityFocus onLocating new opportunities and new application

*Comparison of Different Marketing Orientation

ParametresProduct conceptProduction conceptSelling conceptMarketing conceptProfit PolicyComputed after all costs are taken and matter of immediate importanceComputed after all costs are taken and matter of immediate importanceComputed on the basis of high volume sales resulting in higher profitProfit is not immediate short-term objective but long-term sustained objective.Customer Service PolicyNot appreciated as a good practiceNot appreciated as a good practiceNot very keen to give this serviceBelieved as a customer service for long-term association

*Comparison of Different Marketing Orientation

ParametresProduct conceptProduction conceptSelling conceptMarketing conceptExamplesTextile, furniture office equipmentDefense items, railways, postal service, hospital governmentPetrol and diesel steel and cementModi xerox, color tv, cars, mobile phones soap, cosmetics fashion products, insurance, banks, travels, restaurant, hotel

Holistic marketingHolistic marketing sees itself as integrating the value examination, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and prosperity among key stakeholders.*

*7. Holistic Marketing ConceptMarketing dept,senior mgmt,other deptProduct&service,communication,channelsEthics,Environment,legal,communityCustomers, channel,partners

The 4 ps of mktg.*Marketing mixProduct

Variety,quality,design,features,Brand name,packaging,size,services,warranties,returns.Price

List price Discounts allownces Payment period Credit termsPromotion

Sales promotion Advertisingsales forcepublic relation direct marketing

Place

channels coverage assortments locations inventory transport

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