Marketing Management

1. MARKETING MANAGAEMENTby a. sandhyaraniasst. prof.

2. MARKETING DEFINITIONS “Marketing is 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.” By Philip Kotler

3. MARKETING DEFINITIONS “Marketing is the application, management and satisfaction of demand through the exchange process.” By Evans and Burman

4. MARKETING MANAGEMENT DEFINITION “Marketing (management) is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfied individual and organizational objectives.” By American Marketing Association

5. MARKETING MANAGEMENT DEFINITION Peter Drucker, a leading management theorist, puts marketing in this way: ‘There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, the marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.’

6. ELEMENTS OF MARKETING The marketing thinking starts with customer’s needs. Today the customer is on the driver’s seat. Each marketer wants to retain and satisfy each and every customer because of intense competition. Following are the marketing elements: • Needs, wants and demands • Products • Value, cost and satisfaction • Exchange, transactions and relationship • Market • Marketers

7. NEEDS AND TYPES OF NEEDS • A Need is something, which cannot be created by Marketer but unspeakable and known part of human biology. It is a state of feeling of some basic satisfaction. Need is a compulsory activity without which, human cannot live or sustain. • Generally a person will be in a need of Food, Water, Shelter and clothes. These are basic needs. In marketing a Need can be in different nature. For a particular product, there can be so many needs and those are mentioned below.

8. TYPES OF NEEDS • There are five types of Needs, which differ from person to person and place to place. • Eg: Taking example in case of a CAR.

9. I STATED NEEDS • These needs are something can be stated i.e., expressive in nature. • A Customer can be in a position to express his needs. He can express his need of extra fittings in the car. I.e. A/c, Music System, paintings on his car etc.,

10. II REAL NEEDS • These needs are real needs, which are compulsory. • A customer needs low maintenance of car. i.e., without repairs frequently and low petrol consumption.

11. III UNSTATED NEEDS • These needs are not expressive as these are some extra feelings of customer which makes him happy and satisfied apart from the benefits of car. A customer may require better & good service from the company or showroom. Such as he may feel happy, if company or showroom management sends him festival greetings or birthday greetings and when ever customer goes to them, he may be honored and well received by them with welcome drinks etc.,

12. IV DELIGHT NEEDS • These needs are like fringe benefits or windfall benefits to the customer. surprise gifts, discounts, lucky draws or schemes given to customer as offers that makes him delight.

13. v SECRET NEEDS • These needs are which above the unstated needs and very secret in nature. A customer can expect same honor & respect from the company or showroom management to his friend or relative who is introduced by him.

14. NEEDS, WANTS AND DEMANDS Needs are basically like food, water, cloth and shelter, without which a human cannot live and survive.

15. NEEDS, WANTS AND DEMANDS Wants are desires, to have more satisfaction and comfort than the basic needs. Instead of taking rice or chapatti to satisfy hunger, a person will go for Chinese or Italian food. Needs are few but Wants are many. These wants are shaped and reshaped continuously by the social forces, institutions and marketers.

16. NEEDS, WANTS AND DEMANDS Demands are Wants for specific products that are backed by the a) ability to buy and b) willingness to pay Wants becomes demands when supported by the purchasing power of the customers. The marketers must not only know the consumer’s taste and preference but also the purchasing power of the consumer and how many are willing to buy.

17. DEMAND STATES AND MARKETING TASKS • Negative Demand: Eg., vaccinations, aids treatment, dental work, vasectomies and employees such as alcoholics, ex-convicts has negative demand • No Demand: Eg., farmers not interesting in new cultivating methods, students not interested in new foreign courses because of unaware or ignorance.

18. DEMAND STATES AND MARKETING TASKS 3 Latent Demand: Eg., harmless cigarettes, fuel efficient cars, fat-free pizzas and burgers, excess usage of cell phones etc., 4 Declining Demand: Eg., at present software jobs are facing declining demand

19. DEMAND STATES AND MARKETING TASKS 5 Irregular Demand: Eg., seasonal demand like raincoats, umbrellas, a/c’s, theaters face demand only at weak ends. 6 Full Demand: Eg., any new product with reasonable price and good quality

20. DEMAND STATES AND MARKETING TASKS 7 Overfull Demand: Eg., Because of good advertising and promotion, a product can have overfull demand which is very difficult to handle. 8 Unwholesome Demand: Eg., Without proper advertisements, marketing products, attract consumers such as cigarettes, alcohol, drugs, x-rated movies, pirated cd’s etc.,

21. PRODUCTS According to Philip Kotler, “a product is anything that can be offered to satisfy a need or want”. According to W.J. Stanton, “ a product is a set of tangible and intangible attributes, including packaging, color, price, manufacturer’s prestige, retailer’s prestige and manufacturer’s and retailer’s services”.

22. EXCHANGE Exchange is a process of, giving and taking the goods and services in return between two parties or persons who are agreed to act upon the certain terms and conditions for the benefit of the both. The ‘Exchange’ is further called “Transaction”.

23. TRANSACTION • Transactions are of two types 1] Monetary transaction: In return of products and services the buyer offers cash to the seller. 2] Barter system:Instead of cash transaction, there will be products and services exchange in between the two parties.

24. VALUE, COST & SASTISFACTION The product will be successful only if it delivers the satisfaction to the target buyers. It is a ration between the customers ‘gets’ and what he ‘gives’. Value = Benefits / Costs I.e., Functional Benefits + Emotional Benefits ---------------------------------------------- Monetary costs + Time costs + Energy costs + Psychic costs

25. MARKET & MARKETERS Market is place where buying and selling takes place and where buyers and sellers exist to exchange the goods and services for a value. Marketers are those who takes the products to the end users through promotional activities.

26. TYPES OF MARKETS • CONSUMER MARKETS • BUSINESS MARKETS • GLOBAL MARKETS • NON-PROFIT AND GOVT., MARKETS

27. CONSUMER MARKET CONCENTRATES MORE ON @ SELLING MASS CONSUMER GOODS AND SERVICES @ FEATURES OF THE PRODUCT @ QUALITY OF THE PRODUCT @ DISTRIBUTION COVERAGE @ PROMOTION EXPENDITURES - HELPS TO ACHIEVE BRAND IMAGE

28. BUSINESS MARKET CONCENTRATES MORE ON @ SELLING BUSINESS GOODS AND SERVICES @ RE-SELL THE PRODUCTS TO OTHERS OR END USERS @ FEATURES & QUALITY OF THE PRODUCT @ ADVT., PLAYS MAIN ROLE TO ACHIEVE BUSINESS CUSTOMERS @ STRONG ROLE BY SALES FORCE, PRICE, COMPANY REPUTATION

29. GLOBAL MARKET CONCENTRATES MORE ON @ HOW TO ENTER( AS AN EXPORTER, LICENSER, JOINT VENTURE PARTNER, CONTRACT MANUFACTURER OR SOLO MANUFACTURER @ HOW TO ADOPT PRODUCT OR SERVICE @ PRICING THE PRODUCT IN DIFFT., COUNTRIES @ TO ADOPT DIFFT., LEGAL SYSTEMS @ TO FOLLOW DIFFT., STYLES OF NEGOTIATIONS @ DIFFT., REQUIREMENTS FOR BUYING, OWNING AND DISPOSING THE PROPERTY @ DIFFT., CURRENCY IN DIFFT., COUNTRIES WITH DIFFT., VALUES @ CONDITIONS OF CORRUPTION OR POLITICAL FAVORITISM AND ETC.,

30. NON-PROFIT AND GOVT., MARKETS CONCENTRATES MORE ON @ SELLING GOODS & SERICES TO NON-PROFIT AND GOVT., ORG. @ LIMITED PURCHASING POWER, PRICING IS MOST IMPORTANT @ LOWER PRICES EFFECT THE QUALITY & FEATURES OF THE PRODUCT @ SELLING THROUGH BIDS, TENDERS, AUCTIONS, ETC.,

31. Scope of Marketing

32. CONCEPTS • PRODUCTION CONCEPT • PRODUCT CONCEPT • SALES CONCEPT • MARKETING CONCEPT • SOCIETAL MARKETING CONCEPT

33. PRODUCTION CONCET THE PRODUCTION CONCEPT HOLDS THAT CONSUMERS WILL PREFER PRODUCTS THAT ARE WIDELYAVAILABLE AND INEXPENSIVE. THE PRODUCTION ORIENTED BUSINESS CONCENTRATES ON ACHIEVING HIGH PRODUCTION EFFICIENCY AND LOW COSTS AND MASS DISTRIBUTION. I.E., LESS INPUTS AND MORE OUTPUTS.

34. PRODUCT CONCEPT THE PRODUCT CONCEPT HOLDS THAT CONSUMERS WILL FAVOUR THOSE PRODUCTS THAT OFFER THE MOST QUALITY, PERFORMANCE, OR INNOVATIVE FEATURES.

35. SELLING CONCEPT THE SELLING CONCEPT HOLDS THAT CONSUMERS AND BUSINESSES, IF LEFT ALONE, WILL ORDINARILY NOT BUY ENOUGH OF THE ORGANIZATION’S PRODUCTS. THE ORGANIZATION MUST, THEREFORE, UNDERTAKE AN AGGRESSIVE SELLING AND PROMOTION EFFORT.

36. MARKETING CONCEPT The marketing concept has 4 main features 1 A customer oriented: Management totally focuses on customers needs, wants, tastes and preferences and the product is made based on customer’s choice. 2 A market oriented: Here the focus is on market, that is ~ low level markets ~ middle level markets ~ high level markets, the product is made according to the market requirements and price, quality also depends to satisfy that market customer.

37. MARKETING CONCEPT 3A support of various departments aimed to company’s goals: Top management Formulates different objectives to different departments to achieve company’s main goals i.e., firm’s image, market share, brand image or profit oriented. 4 An overall performance and operations of the company: Management sets ~ Policies ~ Procedures ~ Organizational Structures ~ Programs to achieve greater total results and applies all functions of management i.e., planning, organizing, staffing, directing, coordinating and controlling to entire operations to achieve single set of objective applicable to total organization.

38. SOCIETAL MARKETING CONCEPT THE SOCIETAL MARKETING CONCEPT HOLDS THAT THE ORG., TASK IS TO DETERMINE THE NEEDS, WANTS AND INTERESTS OF TARGET MARKETS AND TO DELIVER THE DESIRED SATISFACTIONS MORE EFFECTIVELY AND EFFICIENTLY THAN COMPETITIORS IN A WAY THAT PRESERVES OR ENHANCES THE CONSUMER’S AND THE SOCIETY’S WELL-BEING.

39. ADVANTAGES OF MARKETING CONCEPT It satisfies the customer needs, wants and desires • It makes possible improvements in the existing products • It creates and innovates new products and services • It increases the comfort level of the customers • It makes optimum utilization of all resources • It creates more mediators and intermediaries for effective marketing

40. LIMITATIONS OF MARKETING CONCEPT • By too much concentration on the one sector of consumers satisfaction , firms may loose the other sector consumers • By too much concentration on the one segment market, the firm my cause harm to other segment or to the society as a whole • The firm cannot change its products as fast as consumer’s taste and preferences change • The comforts and desires of consumers may not be good and healthy for the society and organizations

41. Objectives of Marketing The basic objective of marketing is to satisfy the needs and wants of the customers. However, the overall objectives can be summarized as: • To plan and develop the product on the basis of known customer demand • To increase profits and goodwill of the enterprise. • To organize, direct and control all marketing activities. • To inform the customers and society about the markets • To enable the successful distribution • To supply necessary information for marketing decisions.

42. IMPORTANCE OF MARKETING >> Organizations fulfill their objectives through marketing >> Any organization, which is not doing marketing, is not a business >> The success and failure of any organization depends on marketing >> Marketers are forces to sell the products according to the needs and wants of the Customers >> India is developing through marketing concept >> Global markets also depends upon the marketing concept

43. INDIAN MARKETING ENVIRONMENT THERE ARE TWO TYPES OF ENVIRONMENTS IN ANY MARKET. THEY ARE 1. TASK ENVIRONMENT, INVOLVES ~~ PRODUCING ~~ DISTRIBUTING ~~ PROMOTING ~~ OFFERING MAIN ACTORS ARE COMPANY, SUPPLIERS (WHICH INCLUDES GOODS AS WELL AS SERVICES), DISTRIBUTORS, DEALERS, AND THE TARGET CUSTOMERS

44. INDIAN MARKETING ENVIRONMENT(CONTD.,) 2. BROAD ENVIRONMENT, INVOLVES SIX COMPONENTS ~~DEMOGRAPHIC ENVIRONMENT ~~ECONOMIC ENVIRONMENT ~~NATURAL ENVIRONMENT ~~TECHNOLOGICAL ENVIRONMENT ~~POLITICAL-LEGAL ENVIRONEMENT ~~SOCIO-CULTURAL ENVIRONMENT

45. ReferencesMarketing Management by Philpkotler