MANAGEMENT - II

INTRODUCTION TO MARKETING MANAGEMENT

Mrs. Priyanks Soni Sigma Institute of Engineering.

MARKET.
A

market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want (Philip Kotler). It refers to a group of sellers and buyers that co-operate to exchange goods and services.

WHAT IS MARKETING?
Simple definition:
Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.

Goals:
1.

2.

Attract new customers by promising superior value. Keep and grow current customers by delivering satisfaction.

INTRODUCTION CONTD.

Marketing came into existence with the first barter exchange (e.g. the barter trade in ancient Egypt, Songhai and Ghana empires in Africa etc.) when someone realized that exchanges add value for both parties.

This was the first real step forward in economic

development.

INTRODUCTION CONTD.
According

to Peter Drucker, the first test of any business is not the maximization of profit but the achievement of sufficient profit to cover the risks of economic activity and thus avoid loss. Customers are the foundation of a business and their purpose of existence. In other words, customers are the foundation of the business.

INTRODUCTION CONTD.
As

Peter Drucker puts it: There is only one valid definition of business purpose: to create a customer. It is the customer who determines what business is What the business thinks it produces is not of first importance, especially not to the future of the business and to its success in the market place. The customer determines what a business is, what it produces and whether it will prosper (Drucker).

WHAT IS MARKETING?

It is the most interesting, dynamic, versatile of all academic disciplines.

It is both theoretical and practical in nature. It yields real results in the form of profits and/or satisfaction of business aims/objectives.

Charles Blankson, Ph.D., Department of Marketing & Logistics

WHAT IS MARKETING? CONTD.

It is a multidisciplinary (economics, psychology, sociology, history, statistics) management process of identifying and satisfying consumer and organizational needs profitably.

The aim of marketing is to make profit and/or satisfy business objectives.

Thus, overall, it enhances human and national economic development/progress.

OLD view of marketing:

Making a sale telling and selling

NEW view of marketing:

Satisfying customer needs

MARKETING AS PER PHILIP KOTLER

Philip Kotler Satisfying needs and wants through an exchange process

Process by which one or more parties give something of value to each other to satisfy perceived needs

Dr. Rosebloom

EXCHANGES
Learning Environment

Tuition

Promised Action

Votes
Dr. Rosebloom

WHY IS MARKETING IMPORTANT?

Shifting Business Concepts

Buyers markets

Sellers markets

1.

Promotes Product Awareness to the Public Marketing Helps Boost Product Sales Marketing Builds Company Reputation Help to increase companies profit.

2.

3.

4.

THE FOUR PS OF MARKETING

1.

PRODUCT PRICE

2.

3.

PROMOTION
PLACE

4.

The Marketing Mix Variables

Target Market

Group(s) of potential customers toward which a firm directs its marketing mix(es)

Dr. Rosebloom

The Marketing Mix Variables

Product Strategy

Identifying consumer needs and wants New product development Designing the product Branding Packaging

Dr. Rosebloom

The first element of marketing mix. Product is anything that is offered to market for attention, acquisition, use and consumption. Product includes any physical objects, ideas, service, events, person place and mixture of these. It involves decisions about product line, quality, design, brand name, after sales services, product range, USP (unique selling proposition).

There are two types of product :

Industrial products used by business houses for further use. Consumer products used for final consumption.

The Marketing Mix Variables

Place / distribution Strategy

Physical distribution

Dr. Rosebloom

It involves various activities company undertake to make the product available to target customer. Physical distribution of product at the right time and at the right place. It involves decision like,

Selling, Inventory control, Storage, Warehouse, Location, Transportation.

The Marketing Mix Variables

Pricing Strategy

Pricing objectives Price determination Pricing policies

Dr. Rosebloom

Price will affect the volume of sales. This is the most difficult task b the marketing manager to fix the price.

The variable affecting the price are:

Demand for the product, Competition, Cost, Government regulations.

It includes decision about:

Price of the products, Pricing policies and strategies, Discounts and Level of sales. Credit terms Term of delivery and payments

The Marketing Mix Variables

Promotion Strategy

Advertising Personal selling Sales promotion Sponsorships, PR

Dr. Rosebloom

It includes various activities undertaken by the enterprise to communicate and promote its product to the target market. The different method for promoting a product is
Advertising, PR, Sales promotion Publicity

Like cooking, no standard formula..

Varies from company to company. Situation to situation.

Proper marketing mix is required to long product life cycle.

INTRODUCTION TO MARKETING CONCEPTS

Six orientations (philosophical concepts to the marketplace have guided and continue to guide organizational activities:

1. 2. 3. 4. 5. 6.

The Production Concept The Product Concept The Selling Concept The Marketing Concept The Societal Marketing concept The holistic concept

MARKETING MANAGEMENT PHILOSOPHIES

Customer-Driven
Holistic concept Societal Marketing Concept Marketing Concept Selling Concept Product Concept Production Concept

PRODUCTION CONCEPT

Consumers will favor those products that are widely available and low in cost. Therefore increase production and cut down costs. And build profit through volume. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution.

THE PRODUCTION CONCEPT

A customer can have any colour he likes for his car so long as it's black

Henry Ford

PRODUCT CONCEPT
Consumers will favor those products that offer the most quality, performance, or innovative features. Therefore, improve quality, performance and features. This would lead to increased sales and profits.

Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs.

THE SELLING CONCEPT

Consumers, if left alone, will not buy enough of companys products. Therefore, promote sales aggressively. Build profit through quick turnover.

This is another common business orientation. The organization must, therefore, undertake an aggressive selling and promotion effort. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.

THE MARKETING CONCEPT

Build profit through customer satisfaction and loyalty. This is a business philosophy that challenges the above three business orientations.

It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.

MARKETING AND SALES CONCEPTS CONTRASTED

THE SOCIETAL MARKETING CONCEPT

The

societal marketing concept holds that the organizations task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well being. - It addresses conflicts between consumers and firms short run wants and long term welfare.

Additionally, it holds that this all must be done in a way that preserves or enhances the consumers and the societys well-being. This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best longrun interests of consumers and society?

The marketing concept possibly sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Just consider: The fast-food hamburger industry offers tasty unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.

SOCIETAL MARKETING CONCEPT

THE HOLISTIC (UNIVERSAL) MARKETING CONCEPT

It

is based on the development, design and implementation of marketing programmes, processes and activities that recognizes their coverage and interdependencies. Companies who adopt this new marketing model are not only generally more profitable, but they subscribe to a triple bottom line objective of profit, people and planet as opposed to a pure profit maximization strategy that typically only serves to benefit shareholders.

Businesses no longer exist in a emptiness / alone / isolated but within a multi-dimensional, global, interconnected landscape.

The holistic marketing concept is a relatively new marketing perspective that takes into account the entire organization in addition to its counterparts when determining or executing its overall marketing strategy. Holistic marketing recognizes that there are many stakeholders involved in each transactionfrom suppliers, to employees, customers, shareholders, the community at large, and the environment

Marketing deptt

Senior Mgt

Other Deptt

Channels Communications Products & Services

Internal Marketing

Integrated marketing

Holistic Marketing
Social Responsibility Marketing

Relationship Marketing

Ethics

Community

Customers Channels

Partners

Environment

Legal

Thank you.