Marketing Management

Dr. Ch. V. V. S. N. V. Prasad Assistant Professor in Management

Learning Objectives
Core concepts of Marketing Marketing Management Evolution of Marketing Marketing Vs Selling Marketing Mix

4/19/2013

MGTSC 211: PRINCIPLES OF MANAGEMENT

Marketing

Selling

Promotion

Advertising

Physical Distribution

Branding

Publicity

Marketing
Marketing is the set of business activities that directs the flow of goods and services from producer to consumer

Producer

Consumer

Product Marketing activities

Need

Marketing
Any interpersonal and inter-organizational relationship involving an exchange is marketing.
William J Stanton

Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying products to target markets to achieve organizational objectives.

Marketing concepts
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 their need or want. Marketer : Marketer is some one seeking a resource from someone else and willing to offer something of value in exchange.

Marketing System
Communication
Goods & Services
Industry Market

Money

Information/Feedback

Evolution of Marketing
Production Orientation
Sell the product at a price fixed by production and financial executive No sales/marketing department Produce as much as you can because there is a limitless market Stage where no completion and supply is less than demand
Produce Sell

Evolution of Marketing
Selling (Sales ) Orientation
EMPHASIS ON SELLING AND ADVERTISING to sell existing products. Promotion - discounts/ offers
Produce Promote Sell

Evolution of Marketing
Marketing Orientation
Understanding and responding to customer needs Find out what consumers want and provide it. Make sure everyone in the organization has the same objectiveCUSTOMER SATISFACTION. Focus on those goods and services that will earn the most profit.

Evolution of Marketing
Marketing Orientation
Marketing Research

Customer

Produce

Customer Satisfaction

Sell

Promote

Difference Between Marketing and Selling

Marketing
Emphasis is given to customer needs First determine the customer needs and then figures out how to make and deliver the product Stresses want of buyers Adjust its supply to the will of consumer demand Long term oriented in terms of new products and future markets and growth

Selling
Emphasis is on Product Company makes product and then figures out how to sell Stresses needs of seller Attempts to alter demand to fit to the firms potential supply Planning is short term oriented in terms of today's products and markets

Marketing Mix

Product

Promotion

Target Market

Price

Place / Distributio n

Marketing Mix
Product
Different products and services the company (product line and product mix) Product features in terms of Color, size, quality, hours of operation, warranties, delivery, and installation Branding, Packaging, and Labeling
Branding: the name, symbol, or design used to identify the product Package: the box, container, or wrapper in which the product is placed Label: information about the product on the package

Marketing Mix
Product
Product Positioning :Placing a product in a certain market to get a desired customer response Creating an image in the minds of customers
Completion Target market Price and quality

Marketing Mix
Price
Price setting
Cost plus pricing Competitive pricing Marginal analysis and break even analysis Demand based pricing Maximize sales? Increase profits? Meet the competition? Attract new customers? Maintain an image? Increase market share

Price setting objective

Marketing Mix
Pricing
Pricing Strategies
Skimming pricing Penetration pricing Geographic pricing Odd pricing

Discounts , rebate, freight payments, terms of delivery, payment terms, credit terms and installment facilities

Marketing Mix
Place (Channels of Distribution) : the routes that products and services take from the time they are produced to the time they are consumed
Select and manage trade channels through which the product will reach the right market at the right time

Channels
Wholesaler, retailer, dealer, agent, broker

Intensity of Distribution
Intensive, selective, and Excusive

Marketing Mix
Promotion : Inform and persuade the market regarding company products
Advertising: Paid form of mass communication by an identified sponsor Personnel selling: presentation of a product to prospective customer Publicity: non paid form of mass communication Sales Promotion: contests, trade shows, free samples, coupons and gifts Public Relations: form of communication to influence various groups of attitude towards organization