Marketing Management Marketing: - Introduction, Definition, Meaning.

Marketing management: - Definition, Meaning Differences between sales and marketing Core- Marketing Concepts Marketing Management Philosophies (Orientations) Importance of Marketing

Introduction Todays successful companies share a strong focus and a heavy commitment to marketing. Modern marketing seeks to attract new customers by promising superior value and keep current customers by delivering satisfaction. Sound marketing is critical to the success of all organizations, whether large or small, for profit or nonprofit, domestic or global. Marketing more than any other business function, deals with customers, creating customer value and satisfaction are the heart of modern marketing thinking. Many people think of marketing only as selling and advertising. However, selling and advertising is only the tip of the marketing iceberg. Today, marketing must be understood not in old sense of marketing a sale telling and selling but in the new sense of satisfying customer needs. According to Marketing concept: - the views that an industry is a customer-satisfying process not a goods producing process. An industry begins with the consumers and his needs not with plan, raw material or a selling skill Todays central problem facing business is not a shortage of goods but a shortage of customers. The marketers goal is to build a mutually profitable long-term relationship with its customers, not just sell a product.

Lester Wunderman, of direct marketing fame, contrasted selling to marketing in the following way: The chant of the Industrial Revolution was that of the manufacturer who said, This is what I make, wont you please buy it? The call of the Information Age is the consumer asking, This is what I want, and wont you please make it?

Definition We can distinguish between a social and a managerial definition for marketing. According to a social definition, marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others. As a managerial definition, marketing has often been described as 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, marketing should result in a customer who is ready to buy.7 The art of selling products. But Peter Drucker, a leading management theorist, says that

The American Marketing Association offers this managerial 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 satisfy individual and Organizational goals. Coping with exchange processespart of this management as the art and science of applying core marketing concepts to choose target markets and get, keep, and grow customers through creating, delivering, and communicating superior customer value. definitioncalls for a considerable amount of work and skill. We see marketing

Meaning Marketing deals with identifying and meeting human and social needs Marketing is Meeting needs profitably Marketing:-Marketing means managing markets to bring about exchanges and relationships for the purpose of creating value and satisfying needs and wants

Marketing management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Marketing management involves managing demand. Finding and increasing demand, also changing or reducing demand, such as in demarketing. with them. Difference between Sales and Marketing Sales Focus Organizations needs Selling goods/services Everybody Profit through max. sales volume Intensive promotion Marketing Focus Customers needs Satisfying customer wants/needs Specific groups of people Profit through customer satisfaction Coordinated mktg. activities (4 ps) The art and science of choosing target markets and building profitable relationships

Core Marketing Concepts 1. Needs, Wants, and Demands 2. Products and Services 3. Value, Satisfaction and Quality 4. Exchange, Transactions and Relationships 5. Markets 6. Marketplace, market-space, meta markets 7. Marketers & prospects 9. supply chain 10. Marketing channels 11. Marketing mix 8. Target markets and market segmentation

Needs, Wants, and Demands Need: State of felt deprivation including physical, social, and individual needs. Physical needs: personality. Social needs: Food, clothing, shelter, safety Belonging, affection

Wants: Form that a human need takes, as shaped by culture and individual Demands: Human wants that are backed by buying power. (Wants + Buying Power = Demand)

Products and Services (what is marketed ? ) Product: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes. Persons Places Organizations Information Ideas

Service: Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of a anything.

Value, Satisfaction and Quality

Customer value: The difference between the values and customers gains from owning and using a product and the costs of obtaining the product. Satisfaction: Dependent on the products perceived performance relative to a buyers expectations. Quality: Defined as Freedom from defects,

Customers satisfaction is closely linked to quality. In recent years, many Companies have adopted total quality management (TQM) programs, designed to Constantly improve the quality of their products, services, and marketing Processes. Quality has a direct impact on product performance and hence on customer Satisfaction. Exchange, Transactions and Relationships

Exchange: The act of obtaining a desired object from someone by offering something in return. Marketing occurs when people decide to satisfy needs and wants through exchange.

Transaction: A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. value-laden relationships with customers and other stakeholders. Relationship marketing: The process of creating, maintaining, and enhancing strong,

Markets The set of all and potential buyers of product or service. relationships. Marketplace, market-space, meta markets Marketplace, market-space: Today we can distinguish between a marketplace and a space is digital, as when one goes shopping on the Internet. The Metamarket: a concept proposed by Mohan Sawhney, describes a cluster of are spread across a diverse set of industries. Marketers & prospects (who markets?) Another core concept is the distinction between marketers and prospects. A marketer is someone who is seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect. If two parties are seeking to sell something to each other, both are marketers. complementary products and services that are closely related in the minds of consumers but

These people share a need or want that can be satisfied through exchange

market-space. The marketplace is physical, as when one goes shopping in a store; market-

Target markets and market segmentation Market segmentation: Dividing a market into distinct groups of buyers with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. selecting one or more segments to enter. Supply chain The supply chain describes a longer channel stretching from raw materials to components to final products that are carried to final buyers. Target markets: The process of evaluating each market segments attractiveness and

Marketing channels To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver messages to and receive messages from target buyers. They include newspapers, magazines, radio, television, mail, telephone, etc.The marketer uses distribution channels to display or deliver the physical product or service(s) to the buyer or user. They include the distributors, wholesalers, and retailers. The marketer also use service channels to carry out transaction with potential buyers which include warehouses, transportation vehicles, Banks and Insurance companies that facilitate the transaction

Marketing Mix

Marketing mix: is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. As shown below, McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion Robert Lauterborn suggested that the sellers four Ps correspond to the customers Four Cs. Four Ps Product Price Place Promotion product Physical Goods Service Features Quality Level Accessories Installation Warranty Instructions Product Lines Packaging Branding Four Cs Customer cost Convenience Communication place Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Stores Locations of How to Handle Transporting and Storing Recruiting Service Levels Promotion Objectives Blend Salespeople Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Kind price Objectives Flexibility Level over PLC Geographic Terms Discounts Allowances Customer solution

Who Prepares?

Middlemen Managing Channels

Sales Promotion Publicity

Marketing Management Philosophies (Orientations) 1. Production concept:-the philosophy that consumers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. Focuses on internal capabilities of firm. Field of Dreams strategy If we build it, they will come competition is weak demand exceeds supply generic products competing solely on price Best used when

Problem is that they dont understand wants/needs of marketplace.

2. Product concept: - the idea that consumers will favor products that offer the most its energy to making continuous products improvements.

quality, performance, and features and that the organization should therefore devote

3. Selling concept: - the idea that consumers will not buy enough of the organizations products unless the organization under takes a large-scale selling and promotion effort. People will buy more goods/services if aggressive sales techniques are used. High sales will result in high profits. Problem is that they dont understand wants/needs of marketplace.

4. Marketing concept: - the marketing management philosophy that holds that achieving organizational goals depend on determining the needs and wants of target markets and satisfactions more effectively and efficiently than do competitors. Requires: Top management leadership A customer focus Competitor intelligence

strengths weaknesses

Interfunctional coordination to meet customer wants/needs and deliver superior values.

5. Holistic marketing: -

this concept is based on the development, design and

implementation of marketing programs, process and activities that recognizes their breadth and interdependence. It recognizes that every thing matter Four components of holistic marketing Relationship marketing Integrated marketing Internal marketing Social responsibility marketing

Relationship marketing: From focusing on transactions to building long-term,profitable customer relationships. Companies focus on their most profitable customers, products, channels and suppliers. The result of the relationship marketing is marketing networks The four key constituents of relationship marketing are: Customer Marketing parties(supplier, dealers) Employees Member of financial community Integrated marketing The marketers task is to devise marketing activities and assemble fully integrated programs to create, communicate and deliver value for customers Marketing mix and communication mix help us to provide value to customer Internal marketing Internal marketing describes the work to train and motivate employees to serve customers well. In fact, internal marketing must precede external marketing. It makes no sense to promise excellent service before the companys staff is ready to provide it. Social responsibility marketing Holistic marketing incorporates social responsibility marketing and understanding broder concern and also ethical, environmental, legal, social context of marketing activates and programs

Importance of Marketing

Marketing provides jobs Marketing provides customers with alternatives Marketing helps make products affordable Marketers must be mindful of limited natural resources Marketers must be mindful of unintended social consequences Marketing promotes societal causes Marketing fuels the global economy Generates profits to an organization Marketing satisfies the customer needs Marketing educate the customer about product and services It improves the standard of living of society

The Fundamentals of Marketing Strategy Market

Market segmentation Target market

Marketing management tasks Developing marketing strategies and plans Capturing marketing insights Connecting with customers Building strong brands Delivering value Communicating value The marketing process The marketing process consists of the following activities. Analysing market opportunities Selecting target market Developing the marketing mix Managing the marketing effort Creating long term growth Shaping market offerings

Functions of marketing

The functions of marketing are performed within the marketing framework which involes three major process called concentration, equalisation and dispersion. Concentration: the first phase of the journey of goods involves the process of concentrating the basic raw material and goods at central point. Equalisation: it consists of adjustments of supply to demand on the basis of time, quantity and quality Dispersion: it is the process of dispersing of those products towards the consumer or user which have been concentrated at central point.

Functions of Marketing

Concentration

Equalisation

Dispersion

Assembling Transportation Storage and warehousing standardisation

Storage Transportation

Selling Storage and warehousing Grading and Transportation Financing Risk bearing

Grading and standardisation Financing Risk bearing

Goals of Marketing Maximise consumption Maximise consumer satisfaction Maximise choice Maximise life quality