AKSHI

TAPANDEYDI
XIT

BBA2ndYEAR

MARKETI
NGMANAGEMENT
UNI
T-1
Mar
ket
ingDef
ini
ti
on,
Nat
ure& 
Scope
Marketi
ng 
ref
erstoacti
vit
iesundertakenbyacompanyt opromotethebuyingorsell
ing
ofaproductorservi
ce.Mar ket
ingincl
udesadver
tisi
ng,sel
l
ing,anddeli
ver
ingproducts
toconsumersorotherbusinesses.Somemar ket
ingisdonebyaf f
il
iat
esonbehalfofa
company.

Market
ingasadi scipl
i
nei nv
olv
esal lt
heactionsacompanyunder t
akestodr awincust
omers
andmai nt
ainrel
ati
onshipswiththem.Net worki
ngwi thpot
enti
alorpastcl
ientsi
spartofthe
worktoo,incl
udi
ngwr iti
ngthanky ouemai l
s,playi
nggolfwit
hapr ospect
ivecli
ent
,ret
urni
ng
cal
l
sandemai lsquickl
y,andmeetingwithcli
entsforcoff
eeorameal.

Marketi
ngi stheprocessofconv ertingpr ospecti
vebuy ersintoactualcust omersby
communi cat
ingcompl et
einformat i
onoft hepr oductorser v
icestothecust omer .The
keyelementswhichar ethesecr ettoasuccessf ulmar ket
ingpracticearet horough
marketsur v
eyand r esearch,framing a compet iti
ve strat
egy,designing a reali
sti
c
marketi
ngplanandimpl ementingdifferenttacti
cst oexecutethepl
an.

Marketi
ngisanongoi
ngpracti
cetocaptur
ecust
omer ’
sattent
iontowar
dsaproductor
serv
ice. 
Iti
sthecoreofallthebusi
nesspract
ices,wi
thoutwhichanybusi
nesswi l
l
provetobeacol
ossalf
ail
ure.

Nat
ureofMar
ket
ing

Mar
ket
ingi
sacompl
exf
unct
ionanddoesnotsum upt
osal
esal
one.
 Todevelopabet
terunder
standi
ngoft
hemar
ket
ingpr
act
ices,l
etusknow abouti
ts
nat
ure:

 Manager
ialFunct
ion:
 Mar
ket
ingi
sal
laboutsuccessf
ull
ymanagi
ngt
hepr
oduct
,pl
ace,
pri
ce
andpr
omot
ionofbusi
nesst
ogener
ater
evenue.
 HumanAct i
vi
ty:
 I
tsati
sfi
esthenever-
endi
ngneedsanddesir
esofhumanbei
ngs.
 EconomicFunct
ion:
 Thecruci
alsecondmarketi
ngobj
ect
ivei
stoearnapr
ofi
t.
 BothArtandScience: 
Creati
ngdemandoft hepr
oductamongconsumersisanar
tand
under standi nghumanbehav i
our,andpsy chol ogyi
sasci ence.
 Cust omerCent ri
c: 
Mar ketingstrategiesar eframedwi ththemot i
veofcustomeracquisi
ti
on.
 ConsumerOr i
ented: 
Itpr acti
cesmar ketr esearchandsur veystoknow aboutconsumer ’
s
tast eandexpect ati
ons.
 GoalOr iented: I
tai ms ataccompl i
shing t he sel
ler’
s pr of
itabi
li
ty goals and buy
er ’
s
pur chasinggoal s.
 InteractiveAct ivi
ty: 
Mar ketingisal laboutexchangi ngideasandi nf
ormationamongbuy ers
andsel lers.
 Dy nami cPr ocess: 
Mar ket i
ngpract icekeepsonchangi ngf rom timetot i
met oimproveits
effectiveness.
 Creat esUt il
it
y: 
Itestablishesut il
itytot heconsumert hroughf ourdif
ferentmeans;form
(ki
ndofpr oductorser vi
ce) ,t
ime( whenev erneeded) ,place( avai
l
abil
ity
)andpossessi on
(owner shi p).

ScopeofMar
ket
ing

1.St
udyofConsumerWant
sandNeeds

Goodsar
epr
oducedt
osat
isf
yconsumerwant
s.Ther
efor
est
udyi
sdonet
oident
if
y
consumerneedsandwant
s.Theseneedsandwant
smot
ivat
esconsumert
opur
chase.

2.St
udyofConsumerbehav
iour

Mar
ket
ersper
formsst udyofconsumerbehavi
our
.Anal
ysi
sofbuy
erbehav
iourhel
ps
mar
ket
erinmarketsegmentat
ionandt
arget
ing.

3.Pr
oduct
ionpl
anni
nganddev
elopment

Pr
oductpl
anninganddevel
opmentst
art
swit
hthegenerati
onofproducti
deaandends
wi
ththe productdevel
opmentand commerci
ali
zati
on.Productplanni
ng incl
udes
ev
ery
thi
ngfrom br
andi
ngandpackagi
ngtopr
oductl
ineexpansi
onandcontract
ion.

4.Pr
ici
ngPol
ici
es

Mar
keterhastodeter
minepr i
cingpol
i
ciesf
orthei
rpr
oduct
s.Prici
ngpol i
ciesdif
fer
s
f
orm productt
oproduct
.Itdependsont helev
elofcompet
it
ion,productl i
fecycl
e,
market
inggoal
sandobj
ecti
ves,etc.

5.Di
str
ibut
ion

Studyofdi
str
ibuti
onchanneli
simport
anti
nmar ket
ing.Formaxi
mum sal
esandprof
it
goodsarer
equiredtobedi
stri
but
edtothemaxi
mum consumersatmi
nimum cost
.

6.Pr
omot
ion

Pr
omoti
oni
ncl
udespersonalsel
l
ing,sal
espromoti
on,andadv
ert
isi
ng.Ri
ghtpr
omot
ion
mi
xiscr
uci
ali
naccompli
shmentofmar ket
inggoal
s.

7.ConsumerSat
isf
act
ion

Theproductorser
viceoffer
edmustsat
isf
yconsumer
.Consumersat
isf
act
ioni
sthe
majorobj
ect
iveofmarket
ing.

8.Mar
ket
ingCont
rol

Mar
ket
ingaudi
tisdonet
ocont
rol
themar
ket
ingact
ivi
ti
es.

I
mpor
tanceofMar
ket
ing
7Maj
orI
mpor
tanceofMar
ket
ing

I
mpor
tanceofmar
ket
ingcanbest
udi
edasf
oll
ows
(
1)Mar
ket
ingHel
psi
nTr
ansf
er,
ExchangeandMov
ementofGoods

Marketi
ngisv er
yhelpfulintransf
er,exchangeandmov ementofgoods.Goodsand
ser
vices are made av ai
l
ablet o customerst hrough var
ious i
nter
mediar
ies’vi
z.,
wholesal
ersandret
ail
ersetc.Marketi
ngishelpf
ultobothproducer
sandconsumers.

Totheformer,i
ttel
l
saboutt hespeci
fi
cneedsandpr eferencesofconsumer sandtothe
l
att
eraboutt hepr oductsthatmanufacturer
scan of fer.Accor di
ng t
o Prof.Haney
Hansen“ Mar
keti
ngi nvol
vesthedesignoft heproductsaccept abletotheconsumers
andtheconductoft hoseacti
vi
tieswhichfaci
li
tat
et hetransferofowner shi
pbetween
sel
lerandbuyer
.”

(2)Mar
keti
ngi
sHel
pfuli
nRai
singandMai
ntai
ningt
heSt
andar
dofLi
vi
ngoft
he
Communit
y

Mar ket
ingisaboveallt
hegivi
ngofastandar
dofli
vingtothecommuni t
y.PaulMazur
stat
es,“ Mar
keti
ngisthedel
iver
yofst
andardofl
i
ving”.Pr
ofessorMalcol
m McNairhas
furt
heraddedt hat“
Marketi
ngisthecr
eati
onanddel i
ver
yofst andar
dofli
vi
ngtot he
society
”.

Bymaki ngavail
abl
et heuninterr
uptedsupplyofgoodsandservicest oconsumersata
reasonablepri
ce,mar ket
inghaspl ayedanimport
antrol
einr aisi
ngandmai ntai
ning
l
ivingstandar
dsofthecommuni ty.Communitycompri
sesofthr
eecl assesofpeoplei.
e.,
ri
ch,middleandpoor .Every
thingwhi chisusedbythesedi
ff
erentcl assesofpeopleis
suppli
edbymar ket
ing.

I
nt hemoder nt i
mes,wi t
ht heemer genceofl at
estmar ket
ingtechni
queseventhe
poorersect
ionsofsocietyhav eatt
ainedareasonablelev
elofliv
ingstandar
d.Thi
sis
basi
call
yduet olargescaleproduct
ionandlesserpri
cesofcommodi ti
esandservi
ces.
Marketi
nghasi nfact
,revolut
ioni
sedandmoder nizedthelivi
ngstandar
dofpeoplein
moderntimes.

(
3)Mar
ket
ingCr
eat
esEmpl
oyment

Marketi
ngiscompl exmechanism i
nvolvi
ngmanypeopl einonef orm ortheother.The
majormarketi
ngf uncti
onsarebuying,selli
ng,fi
nanci
ng,transport
,warehousing,ri
sk
beari
ng and standardi
zat
ion,etc.I n each such funct
ion diff
erentacti
vit
ies are
perf
ormedbyal ar
genumberofi ndi
vidual
sandbodi es.

Thus,marketi
nggivesempl oymenttomanypeopl e.I
tisesti
matedthatabout40%of
tot
alpopulat
ionisdir
ect
lyorindi
rect
lydependentuponmarketi
ng.I
nthemoder ner
aof
l
argescaleproduct
ionandindustr
ial
i
sati
on,rol
eofmarketi
nghaswidened.

Thi
senlar
gedroleofmar
keti
nghascreat
edmanyemploymentoppor
tuni
ti
esforpeople.
Conver
se,HuegyandMit
chel
lhaveri
ghtl
ypoi
ntedoutt
hat“I
nordert
ohav econt
inuous
product
ion,t
her
e mustbe cont
inuous market
ing,onl
yt hen empl
oymentcan be
sustai
nedandhi
ghl
evel
ofbusi
nessacti
vi
tycanbeconti
nued”.

(
4)Mar
ket
ingasaSour
ceofI
ncomeandRev
enue

Theper f
ormanceofmar keti
ngfunct
ionisallimport
ant,becauseiti stheonlyway
thr
oughwhi cht heconcerncouldgenerat
er evenueorincomeandbr i
nginpr of
it
s.
Buski
rkhaspoi nt
ed outt hat
,“Anyacti
vi
tyconnected with obt
aining i
ncome isa
marketi
ngaction.Iti
salltooeasyfortheaccountant
,engi
neer,et
c.,tooperateunder
thebroadassumptionthattheCompanywil
lreal
isemanydoll
arsintotalsal
esvolume.

However
,someonemustact ual
lygoi nt
othemarketplaceandobtai
ndoll
arsfr
om
soci
etyi
nordert
osustaintheact
ivi
ti
esofthecompany
,becausewit
houtt
hesefunds
theor
gani
zat
ionwil
lper
ish.
”

Marketingdoespr ovi
demanyoppor tuni
tiestoearnprof
it
sintheprocessofbuy i
ngand
sell
i
ngt hegoods,bycr eati
ngt i
me,pl aceandpossessi onuti
li
ti
es.Thisincomeand
profi
tar erei
nvestedintheconcer n,therebyearni
ngmor eprofi
tsinfut
ure.Mar ket
ing
shouldbegi venthegreatesti
mpor tance,sincet
hev er
ysurvi
valofthefi
rm dependson
theeffecti
venessofthemar ket
ingfunction.

(
5)Mar
ket
ingAct
sasaBasi
sforMaki
ngDeci
sions

Abusinessmanisconf
rontedwithmanypr
obl
emsi nthefor
m ofwhat
,how,when,
how
muchandf orwhom t
opr oduce?I
nthepastprobl
emswasl essonaccountofl
ocal
markets.Ther
ewasadirectl
inkbet
weenpr
oducerandconsumer.

I
nmodernti
mesmar ket
inghasbecomeav er
ycomplexandtedi
oust
ask.Mar
ket
ing
hasemer
gedasnewspecial
i
zedact
ivi
tyal
ongwi
thpr
oduct
ion.

Asaresult,producer
saredependi
nglar
gel
yonthemechanism ofmarket
ing,t
odecide
whattoproduceandsel l
.Witht
hehel
pofmarket
ingt
echni
quesaproducercanregul
ate
hi
sproductionaccordi
ngly.

(
6)Mar
ket
ingAct
sasaSour
ceofNewI
deas

Theconceptofmar ket
ingisadynamicconcept.I
thaschangedal toget
herwit
hthe
passageofti
me.Suchchangeshavef
arreachi
ngeff
ectsonproducti
onanddist
ri
buti
on.
Witht her
api
dchangeint ast
esandprefer
enceofpeople,market
inghastocomeup
wit
ht hesame.

Market
ingasaninst
rumentofmeasurement
,gi
vesscopeforunderst
andingthi
snew
demandpatt
ernandt
herebypr
oduceandmakeavai
labl
ethegoodsaccordi
ngly
.
(
7)Mar
ket
ingI
sHel
pfulI
nDev
elopmentofanEconomy

Adam Smi t
hhasr emarkedt hat“nothinghappensinourcountr
yunt i
lsomebodysell
s
something”
.Mar keti
ngist heki ngpinthatsetstheeconomyrevol
ving.Themarket
ing
organi
zati
on,mor escienti
fi
callyorganised,makestheeconomystrongandstabl
e,the
l
esserthestressont hemar keti
ngf uncti
on,t
heweakerwill
betheeconomy .

MARKETI
NGMANAGEMENT
Marketi
ngmanagement f
aci
li
tatest
heact
ivi
ti
esandf
unct
ionswhi
char
einv
olv
edi
nthe
di
str
ibut
ionofgoodsandser
vices.

Accor
ding to Phi l
i
p Kot l
er,“ Mar
keti
ng management i sthe analysi
s,planning,
i
mplement at
ionandcontrolofprogr
ammesdesignedtobringaboutdesir
edexchanges
wit
htargetmarketsfort
hepur poseofachi
evi
ngorgani
zat
ionalobj
ect
ives.

Itreli
esheavil
yondesigningt heorgani
zationsofferi
ngi ntermsofthet ar
getmar kets
needsanddesi resandusingeffect
ivepr
icing,communi cati
onanddistr
ibuti
ontoinform,
mot iv
ate and servi
ce t
he mar ket
.”Mar keting managementi s concerned wi
tht he
chalkingoutofadef i
nit
epr ogramme,af tercarefulanalysi
sandf orecasti
ngoft he
mar ketsit
uat
ionsandtheulti
mat eexecuti
onoft heseplanst oachi
evetheobject
ivesof
theor gani
zat
ion.

Furt
her,
thei
rsalesplanstoagr eaterextentrestupontherequi
rement sandmotiv
esof
theconsumersint hemar ket.Toachi evethisobjecti
ve,t
heor ganizat
ionhastopay
heedtot heri
ghtpr i
cing,eff
ecti
veadv er
ti
singandsal espromot i
on,dist
ri
but
ionand
sti
mulat
ingtheconsumer sthr
ought hebestser v
ices.

Tosum up,mar
ket
ingmanagementmaybedef
inedast
hepr
ocessofmanagementof
market
ing

pr
ogrammesforaccompl
i
shingor
ganizat
ional
goal
sandobj
ect
ives.I
tinv
olv
espl
anni
ng,
i
mplement
ati
onandcontr
olofmarket
ingprogr
ammesorcampaigns.

I
mpor
tanceofMar
ket
ingManagement

Market
ingmanagementhasgai
nedimpor
tancetomeetincreasi
ngcompeti
ti
onandthe
needforimprov
edmet hodsofdist
ri
but
iontor educecostandt oincr
easeprofi
ts.
Market
ingmanagementtodayisthemosti mportantf
unctioninacommer ci
aland
busi
nessent
erpr
ise.

Thef
oll
owi
ngar
etheot
herf
act
orsshowi
ngi
mpor
tanceoft
hemar
ket
ingmanagement
:

(
i)I
ntr
oduct
ionofnewpr
oduct
sint
hemar
ket
.
 (
ii
)Incr
easi
ngt
hepr
oduct
ionofex
ist
ingpr
oduct
s.

(
ii
i)Reduci
ngcostofsal
esanddi
str
ibut
ion.

(
iv)Expor
tmar
ket
.

(v)Dev
elopmentinthemeansofcommuni
cat
ionandmodesoft
ranspor
tat
ionwi
thi
n
andoutsi
dethecountr
y.

(
vi)Ri
sei
npercapi
tai
ncomeanddemandf
ormor
egoodsbyt
heconsumer
s.

CORECONCEPTOFMARKETI
NG
Phili
pKotler
,theemi nentwri
ter,defi
nesmodernmar ket
ingas,“Market
ingissocialand
manager i
alprocessbywhichindivi
dualsandgroupsobtainswhattheyneedsandwant s
throughcreati
ngandexchangi ngpr oductandvaluewithothers.
”Carefulanddetail
ed
analysi
softhisdefini
ti
onnecessari
lyreveal
ssomecor econcept
sofmar keti
ng,shownin
Figure.

1.Needs
 Existenceofunmetneedsisprecondi
ti
ontounder
takemar ket
ingactivi
ti
es.Market
ingtri
es
tosat isf
yneedsofconsumer
s.Humanneedsar et
hest at
eoffeltdepri
vati
onofsomebasi c
satisfacti
on.A needisthestateofmi ndthatref
lectsthel ack-
nessandr estl
essness
sit
uat i
on.

Needsar ephysiologicali
nnatur
e.Peopl
erequirefood,shel
ter,
clot
hing,est
eem,belonging,
andlikewise.Notet hatneedsarenotcr
eated.Theyarepre-exi
stedinhumanbei ng.Needs
creat
ephy siol
ogicaltensi
onthatcanberel
easedbyconsumi ng/usi
ngproducts.

2.Want
s

Wantsaretheoptionstosati
sfyaspecifi
cneed.Theyar edesi
reforspeci
ficsati
sfi
ersto
meetspeci
ficneed.Forexample,foodisaneedt hatcanbesat i
sfi
edbyv ari
etyofway s,
suchassweet,bread,ri
ce,sapati
,puff
,etc.Theseoptionsareknownaswant s.Infact,
ever
yneedcanbesat i
sfi
edbyusingdif
ferentopt
ions.

Maximum sat
isf
acti
on ofconsumerneed dependsupon av ail
abil
it
yofbett
eroptions.
Needsarel
imi
ted,butwantsar
emany ;forever
yneed,ther
earemanywants.Market
ercan
i
nfl
uencewant
s,notneeds.Heconcent
ratesoncreat
ingandsati
sfyi
ngwant
s.

3.Demand

Demandi sthewantf orspeci

fi
cproduct
sthatarebackedbyt heabi
li
tyandwi l
li
ngness
(maybereadiness)t
obuythem.Iti
salwaysexpr
essedinrel
ati
ontoti
me.Allwantsarenot
tr
ansmit
tedindemand.Suchwant swhicharesuppor
tedbyabi l
i
tyandwil
li
ngnesstobuy
cantur
nasdemand.

Marketert
ri
estoinfl
uencedemandbymakingthepr
oductat
tracti
ve,af
for
dabl
e,andeasi
ly
av
ailabl
e.Market
ingmanagementconcer
nswit
hmanagingquantum andti
mingofdemand.
Marketi
ngmanagementi scal
l
edasdemandmanagement.

4.Pr
oduct

Productcanalsober eferredasabundl eofsati

sfacti
on,physicalandpsy chologi
calbot h.
Productincl
udescorepr oduct( basiccontent
sorut i
li
ty)
,product-r
elatedfeatures(colour,
brandi
ng,packaging,label i
ng,v ar
ieti
es,etc.
),and product-
relat
ed servi
ces ( af
ter-
sales
servi
ces,guarant
eeand war r
antee,freehomedel i
very
,freer epair
ing,andso on) .So,
tangi
bleproductisapackageofser vi
cesorbenefit
s.Mar ketershouldconsi derproduct
benefi
tsandservi
ces,insteadofpr oductit
self
.

Marketercansati
sfyneedsandwantsoft hetar
getconsumer
sbyproduct.Itcanbebroadly
defi
nedasany thi
ngt hatcanbeof fer
edt osomeonet osat
isf
yaneedorwant .Product
i
ncludesbothgoodandser v
ice.Nor
mally
,producti
stakenastangi
bleobject,f
orexample,
pen,tel
evi
sionset
,bread,book,et
c.

Howev
er,i
mpor
tancel
i
esi
nser
vicer
ender
edbyt
hepr
oduct
.Peopl
ear
enoti
nter
est
edj
ust
 owningorpossessi
ngproducts,butt
heser
vicesr
ender
edbyt
hem.Forexampl
es,wedo
notbuyapen,butwri
ti
ngservi
ce.

Simi
larl
y,wedonotbuyacar,butt
ranspor
tat
ionservi
ce.Justowningproducti
snotenough,
theproductmustserv
eourneedsandwant s.Thus,physicalpr
oductisjustavehi
cleor
medium thatof
fer
sser
vicest
ous.

Asperthedefi
nit
ion,anyt
hingwhichcansat i
sfyneedandwantcanbeapr oduct.Thus,
pr
oductmaybei nformsofphy si
calobject
,per
son,idea,act
ivi
ty,oror
gani
zat
ionthatcan
pr
ovi
deanykindofservi
cesthatsati
sfysomeneedsorwant s.

5.Ut
il
it
y(v
alue)
,Cost
,andSat
isf
act
ion

Util
i
tymeansoveral
lcapaci
tyofproductt
osat i
sfyneedandwant.Iti
saguidi
ngconceptto
choosetheproduct.Everyproducthasv aryi
ngdegreeofut i
li
ty.Asperlevelofuti
l
ity
,
product
scanberankedfrom t
hemostneed- sati
sfy
ingtot
heleastneed-
sat
isf
ying.

Util
i
tyistheconsumer
’sest
imateofthepr
oduct
’sov
eral
lcapacit
ytosati
sfyhi
s/herneeds.
Buyerpurchasessuchapr oduct
,whichhasmoreuti
li
ty.Uti
l
ityis,t
hus,thestr
engthof
productt
osatisf
yapart
icul
arneed.

Costmeanst hepri
ceofpr oduct.Iti
saneconomi cval
ueofpr oduct.Thechargesa
customerhast opayt oavailcert
ainservi
cescanbesaidascost .Theut i
li
tyofpr
oductis
comparedwi t
hcostt hathehast opay.Hewillsel
ectsuchaproductt hatcanoff
ermor e
uti
li
ty(val
ue)forcer
tainprice.Het ri
estomaximizeval
ue,thati
s,theutil
it
yofproductper
rupee.

Sati
sfact
ionmeansfulf
il
lmentofneeds.Sati
sfact
ioni spossibl
ewhenbuy erpercei
vesthat
producthasmorevaluecompar edtothecostpaidf or.Sat
isfacti
oncloselyconcernswith
ful
fil
l
mentofalltheexpect at
ionsofbuy er
.Sat i
sfactionreleasesthet ensi
ont hathas
arousedduetounmetneed(s).Inshort
,moreut i
l
ity
/v al
uewi thlesscostresul
tsintomor e
sati
sfact
ion.

6.Exchange,
Transact
ion,
andTr
ansf
er

Exchangeisinthecenterofmarketi
ng.Market
ingmanagementt
ri
est
oar
ri
veatt
hedesi
red
exchange.Peoplecansat isfythei
rneedsandwant sinoneofthef
ourways– self
-
product
ion,coer
cion/
snatching,
begging,
orexchangi
ng.

Marketi
ng emergesonlywhen peoplewantt o sat
isfytheirneedsand wantsthr
ough
exchange.Exchangeisanactofobt ai
ningadesir
edpr oductfr
om someonebyof f
eri
ng
somethingi
nr et
urn.Obt
aini
ngsweetbypayingmoneyistheexampleanexchange.

Exchangei
spossi
blewhenf
oll
owi
ngf
ivecondi
ti
onsar
esat
isf
ied:

(
i)Ther
eshoul
dbeatl
eastt
wopar
ti
es
 (
ii
)Eachpar
tyhassomet
hingt
hatmi
ghtbeofv
aluet
otheot
herpar
ty

(
ii
i)Eachpar
tyi
scapabl
eofcommuni
cat
ionanddel
i
ver
y

(
iv)Eachpar
tyi
sfr
eet
oacceptorr
ejectt
heexchangeof
fer

(
v)Eachpar
tybel
i
evesi
tisdesi
rabl
etodeal
wit
htheot
herpar
ty

7.Rel
ati
onshi
psandNet
wor
k

Today’smar keti
ngpracti
cegivesmor eimportancetor el
ationbui l
ding.Market
ingpract
ice
basedonr elati
onbuildi
ngcanbesai dasr el
ati
onshipmar keting.Rel ati
onshi
pmar ket
ingis
thepract
iceofbui l
dinglong-
term prof
itabl
eorsat isf
y i
ngr elationswi thkeyparti
eslike
customers,suppli
ers,di
str
ibut
ors,andothersinordertoretaint heirl
ong-ter
m pref
erencein
busi
ness.

Asmar tmarket
ert r
iestobuil
dupl ong-t
erm,trust
ing,and‘wi
n-wi
n’rel
ati
onswit
hvalued
cust
omers,dist
ri
butors,andsuppli
ers.Relat
ionshi
pmar ket
ingneedstrust
,commit
ment,
cooper
ati
on,andhighdegreeofunderst
anding.

Relat
ionshi
pmar ket
ingresul
tsint
oeconomi cal
,technical
,soci
al,
andcul
turalt
ieamongthe
parti
es.Marketi
ng manageri sr esponsi
bleforest abli
shi
ng and mai
ntaini
ng l
ong-
ter
m
rel
ati
onswiththeparti
esinvol
vedinbusiness.

Networ kistheult
imat eoutcomeofr el
ationshi
pmar keti
ng.Amar keti
ngnet workconsist
s
oft he companyand i t
s supporting stakeholders – customers,empl oyees,suppli
ers,
distr
ibutor
s,adver
tisingagencies,collegesanduni versi
ti
es,andot hers– whoser ol
eis
consideredtobeessent i
alf
orsuccessofbusi ness.Itisapermanentset upofrel
ati
onswi t
h
stakeholder
s.Agoodnet workofr elat
ionshipswithkeyst akehol
dersr esul
tsint
oex cel
li
ng
themar keti
ngperf
or manceov ert
ime.

8.Mar
ket
,Mar
ket
ing,
Mar
ket
er,
andPr
ospect

I
nmar keti
ngmanagement,frequent
lyusedwor dsaremarkets,marketi
ng,mar ket
er,and
pr
ospects.Amarketconsi
stsofallpotent
ialcust
omersshari
ngapar ti
cularneedorwant
whomightbewil
l
ingandablet oengageinexchanget
osati
sfythisneedorwant .

Mar
keti
ngissoci
alandmanager
ialprocessbywhichindi
vi
dualsandgr
oupsobtai
nwhat
t
heyneedandwantt
hroughcr
eat
ingandexchangi
ngproductandval
uewi
thot
hers.

Marketeri
sonewhoseeksoneormor eprospect
s(buyer
s)toengageinanexchange.Her
e,
sel
lercanbemar ket
erashewantsothertoengageinanexchange.Normal
ly,companyor
businessuni
tcanbesaidasmar
keter
.

Prospecti
ssomeonet owhom themar keteri
denti
fi
esaspotenti
all
ywi l
l
ingandabl
eto
engageint
heexchange.(
Incaseofexchangebetweentwocompanies,bot
hcanbesai
das
pr
ospect
saswellasmarket
ers)
.Gener
all
y,consumerorcust
omerwhobuy
spr
oductf
rom
acompanyf
orsati
sfy
inghi
sneedsorwantscanbesaidasthepr
ospect
.

SELLI
NGCONCEPT
Sellingconcept  wasdevelopedaf terproducti
onandpr oductconcept sofmar keti
ng.The
productconceptcoul dnotbef ul
lysuccessfulinthebusinesssector.Despiteproducti
onof
qual i
tygoods,t hereappearedser i
ouspr oblem i
nsell
ing.Asar esult
,sell
ingconceptwas
dev eloped.Thisconceptbelievest hatt
heconsumer sdonotbuyt hepr oductuntilt
heyare
mot ivatedthroughsal espr omotionefforts.Inotherwor ds,theconsumer sdonotbuy
product s witht hei
rown i nit
iat
iver at
hert heyshould be mot ivat
ed.Mor e quanti
tyof
product scanbesol dt otheconsumer sbycr eati
ngneedandar ousinginter
estint hem
throughdi ff
erentpromotionalacti
viti
es.

Selli
ng conceptofmar keting focuses at tenti
on on t he needs ofsel l
erbutnoton
consumer s’.I
taimst oincreasesal esv ol
umeandear npr ofitthr
oughdifferentpr omot ional
activi
ti
es.Thisconceptbecamev erypopul arduring1930- 1950.Thatper iodiscal led‘Ideal
SalesEr a’
.Duringthatperiod,exceptdur ingt hesecondWor l
dWarper iod,suppl ybecame
mor et handemand.Thepr emiseoft hepr oductconceptt hatt he‘cust omer seasi lybuy
qualitygoodsofl ow price’coul d notwor k.Asar esult
,manyf ir
msappoi nted sal es
empl oyees,andf ocusedat tenti
ononadv ert
isementandsal espromot ionalact i
v i
ti
es.On
ordertoat t
ractcustomers’at t
enti
on, t
het echniquessuchasadv erti
sement ,decor ati
onand
display ofgoods,publ i
cit
y ,exhibit
ion ort r
ade fairet c were start
ed.Ev en t hen the
managementwoul dgivemor eemphasi stothepr oductratherthantothecust omer s’need.

Somef i
rmsar efoundtobelievei
nsell
i
ngconceptev entoday
.Lif
eInsurancecompani es,
Encyclopedi
aPubl i
cati
onset c.gi
vesemphasistoselli
ngconcept.Suchcompani esgive
argument sthatuseof‘hardsellt
echni
ques’canhelptoident
if
yneedsofcust omer sand
mot i
vatethem tobuy.Thistechni
quebeli
evesthatef
fort
sshouldbemadet hecustomers
 real
i
zeneedsandsothatt
heycanbuyproduct
s.Sel
l
ingconceptemphasi
stosel
lpr
oduct
s
butdoesnotcar
efort
heaft
er-
sal
eser
vices.

Feat
uresofSel
li
ngConceptofMar
ket
ing

1.Sel
li
ng-
ori
ent
ati
on

Sel
li
ng conceptofmar ket
ing gi
vesemphasi
stof
ulf
il
lmentofneedsoft
hesel
l
ers,i
t
bel
i
evesthatproductmustbesoldout
.

2.Aggr
essi
veSel
li
ngandPr
omot
ion

Aggr
essi
vesal
epromoti
onalact
ivi
ti
esshoul
dbeconduct
edt
oat
tractcust
omer
s.Onl
ycar
e
i
stakent
oincr
easesal
esquanti
tyi
nt hemar
ket
.

3.NoConcer
nwi
thConsumer
s’Needs

Sel
li
ngconceptisnotconcernedwit
htheconsumer
s’needs.I
tlay
semphasisonhow t
o
sel
lgoodsbutnotonwhatkindofgoodsshoul
dbepr
oducedfort
hecust
omers.

4.Cust
omerPer
suasi
on

I
tper
suadescust
omer
stobuygoodsconv
inci
ngt
hem aboutt
hehi
ghqual
i
tyandpr
iceof
t
heproduct
s.

Pr
oduct
ionConcept
Producti
on i
sapr ocessofcombini
ngvari
ousi
nput
stoproduceanoutputforconsumpt
ion.
I
tistheactofcr eati
ngoutputi
nthefor
m ofacommodit
yoraser v
icewhichcontri
but
esto
theuti
li
tyofindi
vidual
s.

I
not
herwor
ds,
iti
sapr
ocessi
nwhi
cht
hei
nput
sar
econv
ert
edi
ntoout
put
s.

Thebasicproposi
ti
onoftheproducti
onconceptisthatcust
omer swil
lchoosepr
oduct
sand
ser
vicesthatar
ewidelyavai
l
ableandar eofl
owcost .Sobusinessismainl
yconcer
nedwith
makingasmanyuni tsaspossi
ble.Byconcentr
ati
ngonpr oducingmaximum vol
umes,such
abusinessaimstomaximizeprofi
tabi
li
tybyexpl
oit
ingeconomi esofscal
e.

Manager strytoachi
ev ehighervol
umewi t
hlow costandint
ensi
vedi st
ribut
ionstr
ategy.
Thisseemsav i
abl
estrategyinadevel
opi
ngmarketwheremarketexpansionisthesurvi
val
str
ategyf orthebusi
ness.Compani esi
nter
est
edt otakethebenefi
tofscal eeconomies
pursuethiski
ndofori
ent at
ion.

I
napr
oduct
ion-
ori
ent
atedbusi
ness,t
heneedsofcust
omer
sar
esecondar
ycompar
edwi
th
 theneedtoincreaseout
put.Suchanapproachisprobabl
ymosteffect
ivewhenabusiness
operatesi
nv eryhighgrowthmarketsorwher ethepotenti
alforeconomiesofscaleis
signi
fi
cant
.Itisnatur
alt
hatthecompaniescannotdeli
verqual
it
yproductsandsuf
ferfr
om
probl
emsar i
singoutofi
mpersonalbehav
iorwit
hthecustomers.

Donote,theproduct
ionconceptisat hi
ngofthepastandwasusedwhent her
ewasvery
l
esscompet i
ti
on.Atsuchti
mes,themor ey ouproduced,themor
ewillbetheconsumpt
ion
oftheproduct.Anexamplei nthiscaseisFORD,whi chmanufact
uredhugenumberof
aut
omobilesthr
oughitsmanufact
uringassemblyli
newhi chwast
hefir
stofit
skind.

Product
ionisapr ocessoftransformat
ionofthefact
orsofproduct
ionintotheeconomic
goods.Soi nterm ofproducti
onanal y
siswear edeal
ingwiththephysicalrel
ati
onshi
ps
betweeninput
sandout puts(i.
e.wear eobser
v i
ngthedependenceofphy si
calpr
oducti
on
volumeonphysicalquant
it
yoft heinput
s).

PRODUCTI
ONANALYSI
S

Product
ionanaly
sisbasi
cal
lyi
sconcernedwiththeanalysi
sinwhichtheresour
cessuchas
l
and,labor
,andcapi t
alar
eemployedtopr oduceaf i
rm’sfinalpr
oduct
.Topr oducethese
goodsthebasicinput
sarecl
assi
fi
edintotwodivi
sions:

1.Var
iabl
eInput
s

I
nput
sthosechangeorar
evar
iabl
eint
heshor
trunorl
ongr
unar
evar
iabl
einput
s.

2.Fi
xedI
nput
s

I
nput
sthatr
emai
nconst
anti
ntheshor
tter
m ar
efi
xedi
nput
s.

Moder
nMar
ket
ingConcept
  
Modern appr
oach t
o mar ket
ing i
srefer
red to as t
he market
ing conceptwhich has
dev
eloped gr
adual
ly passi
ng thr
ough di
ffer
entstages cal
l
ed Marketing Management
Phi
losophi
es

1.ThePr
oduct
ionConcept

Thisconceptl aysemphasison production and assumesthatconsumer swil

lalways
respondt oproduct
sthataremadeav ai
lablet
ot hem.Thisconceptdevel
opedwhent her
e
wasaper i
odofmanuf act
uri
ngdominanceandt herewasnocompet i
ti
on.Itwasproducer
s
mar ketandhenceproduct
ionpr
obl
emswer eofmor eimport
ancethananyt
hingel
se.

Themaj ortaskoft hemanagementwast ostri

veconstantl
ytoincreaseproducti
onand
ther
ewer enosel li
ngormarketi
ngprobl
ems.Theproductionconceptmayboostt hesal
es
i
nt heinit
ialstagesbutitinvi
testhecri
ti
cism t
hatitisimpersonalinitsapproachand
i
gnorestheinterestsoft
heconsumers.

2.ThePr
oductConcept

Wi t
ht hepassageoft i
me,itwasr eal
izedthatiti
snotonl yt hequanti
tyofpr oductionbut
alsot hequantit
yoft heproductthatisimportant.Theproductconceptassumest hatthe
consumer swil
lrespondfavourabl
yt othebestqualit
yproduct sthatar
er easonablypr i
ced
andhencet hemaj ortaskofthemanagementi stoimpr ovethequalit
yoft hepr oductit
offerst osuccessful
lyatt
ractandhol dcustomers.Enterpri
seswhi chrel
yt oomuchupon
the pr oductconceptmayf ace diff
icul
ti
es due tot he tendencyon the par tofsuch
enterprises“t
olooktoof t
eninami rr
orwhent heyshouldbel ooki
ngoutoft hewindow. ”

3.TheSal
esConcept

Withthedevelopmenti ntechnologi
calf i
eld,thecompet iti
onhadgr ownandt hemar kethad
becomemor ecomplex.Dur i
ng1920’ sand30’ st hesell
ingact i
vi
tybecamemor eimportant
andmar ket
ingwasr egardedmer elyasasel l
i
ngact ivi
ty,givi
ngr isetothesalesconcept .
Thesell
ingconceptassumest hattheconsumer swil
lgener all
ynotbuyenoughoft hefir
m’ s
product
sunlesst hei
ri nt
erestissti
mul atedi nitsproduct sthroughsubst anti
alsell
ingand
promoti
onalactiv
iti
es.Inthisconceptt hef ocusisont hepr oduct,
t hemeansar esell
ingand
promoti
ngandt heobj ecti
veismaxi mizationofpr ofi
tsthroughsal esvolume.Thedr awback
ofthesalesconcepti sthatiti
gnorest hecust omer ’
sinterestandaf i
rm whichfoll
owst his
conceptmayf acedif
f i
cult
iesinthelongr un.

4.TheMar
ket
ingConcept

Themoder napproachtomarketi
ngisreferredtoast hemar ketingconcept .Theessenceof
themar keti
ngconceptisthatthecustomerandnott hepr oductist hecent r
eofent i
re
busi
nessact i
vi
ty.I
tisal
sorefer
redtoast hecust omer-ori
entedappr oacht obusiness.This
conceptexplai
nstherati
onal
eforaf ir
m’sexi stenceintermsofi t
sabi l
itytosatisfysome
aspectsofconsumerneedsandr ecognizest hepurposeoft hebusi nessast o‘ creat
ea
customer’.
 Inthewor dsofSt anton,“themarketi
ngconceptisaphi l
osophy,anatti
tude,oracourseof
businessaction.Thecust omerswantsat i
sfact
ionintheeconomi candsoci alj
usti
fi
cati
on
ofacompany ’sexistence.Consequentl
yallcompany’sacti
vi
ti
esi npr
oduct i
on,engi
neeri
ng
and finance,as wel las mar keti
ng,mustbe dev oted t
o,first
,determining whatthe
customer swantsar eandt hen,
sati
sfyi
ngthesewantswhi l
emaki ngareasonableprof
it
.

Accor
dingt
othemar
ket
ingconcept
,themai
ntaskoft
heent
erpr
isei
s:

(
i)Todet
ermi
net
heact
ual
needs,
want
sandpr
efer
encesofcust
omer
s,and

(i
i
)Toadoptt heenter
pri
seinsuchawaysoast
odel
i
vert
hedesi
redsat
isf
act
ionmor
e
eff
ect
ivel
yandeff
ici
entl
ythani
tsr
ival
s.

Inthi
sconcept
,thefocusi
sont hecust
omerneeds,themeansar ei
ntegrat
edmar
ket
ing
andtheobj
ecti
veismaximi
zat
ionofpr
ofi
tst
hroughcustomersat
isf
act
ion.

5.TheSoci
alMar
ket
ingConcept

Inthewor dsofPhili
pKot l
er,t
hesocialmarketi
ngconcepti
samanagementor i
entat
iont
hat
hol
dst hatthekeytaskoft heorganizat
ionistodeter
minet heneedsandwant stotar
get
mar kets and to adoptt he organi
zati
on to del
iver
ing t
he desired sat
isf
act
ion more
eff
ect i
velyandeffici
entl
yt hanitscompet i
torsi
nawayt hatpreser
vesorchancest he
consumer ’sandsociet
y’swellbeing.

Thesoci etalmarketi
ngconceptaimsatser vi
ngt hetar
getmar ketsinsuchawayast o
del
ivernotonl ymaxi mum cust
omersatisfact
ion,butalsolong-r
uni ndi
v i
dualandsoci
al
benefi
ts.Itmustconcent r
ateoncust
omer ’
sneedsandi nter
estsinaddi t
iontothei
rwants
and desires.Thus,thisconceptlay
smor eemphasi son thesoci alresponsibi
l
iti
esof
busi
nessast hel
atesttr
endinmarket
ing.

Soci
etal
Mar
ket
ing
 
CCSUTHEI
NTACTONE14SEP2019 
1COMMENT

SocietalMarket
ing emphasi
zesonsoci
alr
esponsi
bil
it
iesandsuggeststhattosustai
nlong-
term success,t
hecompanyshoul ddevel
opamar ketingst
rat
egyt opr ov
idevaluetot he
customer’stomai ntai
nandi mpr
oveboththecustomersandsoci et
y’swellbeingbetter
thanthecompet i
tors.

Societ
almar ket
ing conceptthathol
dsthata companyshould make good market
ing
deci
sionsbyconsideringconsumer’
swants,company
’sr
equi
rements,andsoci
ety’
slong-
ter
mi nter
est
s.

Soci
etalMar
keti
ngcreat
esafavor
ableimagef
orthecompanyi
ncreasesthesal
es.I
tisnot
thesameast heter
mssocialmarket
ingandsoci
almediamarketi
ng.Iti
sat er
m closel
y
 r
elat
edt
oCSRandsust
ainabl
edev
elopment
.

I
temphasi
zessoci
alr
esponsi
bil
i
tiesandsuggest
sthatt
osust
ain.

I
tcal
lsforsust
ainabl
emar ket
ing,soci
all
yandenv i
ronment
all
yr esponsibl
emar ket
ingthat
meet
sthepresentneedsofconsumer sandbusinesseswhi
lealsopr eserv
ingorenhancing
t
heabil
i
tyoffut
uregenerat
ionstomeett hei
rneeds.

Theglobalwarmingpanicbut
tonispushedandarevel
ati
oni
sr equi
redi
nthewayweuse
ourresources.Socompaniesareslowlyei
therf
ull
yorpart
ial
l
yt ry
ingtoimpl
ementt
he
soci
etalmarketi
ngconcept
.

Thr
eeConsi
der
ati
onsofSoci
etalMar
ket
ingConcept

Companies shoul
d bal
ance t
hree consi
derat
ions i
n sett
ing t
hei
rmar
ket
ing st
rat
egi
es:
companyprofi
ts,t
heconsumerwants,andsoci
ety’
sinter
ests.

1.Soci
ety(
HumanWel
far
e)

Compani
es mustmake sur
ethe pr
oduct
s,ser
vices,act
ions,i
nvest
ment
sinnov
ati
ons
ser
ver
sthesoci
etyf
ir
st.

2.Consumer
s(Sat
isf
act
ion)
 Pr
oduct
sandser
vicesshoul
dbesat
isf
yingt
heconsumer
’sneeds.

3.Company(
Prof
it
s)

Bui
ldi
ng long-
ter
m customer rel
ationshi
p,being soci
all
yr esponsi
ble,and pr
ovi
ding
sat
isf
act
oryproduct
sar
ei mpor
tantforprof
it-
makingandwealt
hmaxi mi
zation.

Obj
ect
ivesofSoci
etalMar
ket
ingConcept

 Tomai nt
ainalong-
ter
mr el
ati
onshipwithcustomers.
 Tocreateabetteri
mageinthesocietyforthecompanythani
t’
scompet
it
ors.
 Tocarryouti
tssocial
responsi
bil
i
ties.
 Dev
elopingcommuni t
yawarenesst owardsit
sbrands.
 Tocarryouti
tssocial
responsi
bil
i
ties.
 Toi
ncreasetheconsumerbaseandmar ketshare.

I
mpor
tanceofSoci
etalMar
ket
ingConcept

Soci
etalMarket
ingi
sveryi
mportantt
osociet
y,envi
ronment,andbusi
nesses.Thi
sconcept
wasdev el
opedi
nordert
otackl
etheconsumeri
sm andprofi
tonlyt
hemot i
veofbusiness.

Thesociet
almarketi
ngconcepthel
pstomaxi
mizepr
ofi
tsf
ort
heor
gani
zat
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eat
es
along-
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onshipwi
thcustomer
s.

I
tencour
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elopi
ngpr
oduct
sthatbenef
itsoci
etyi
nlongr
unandsat
isf
iesconsumer
s.

Exampl
esofSoci
etalMar
ket
ing

Mostrecentexampl
esofsoci
etalmar
ket
ingar
ethesuperbowl2017 adsofsev
eral
compani
es.

Mostadstookonissuesl
ikeenvi
ronmentandimmi gr
ati
on.Thesecomeaf
terpr
esi
dent
Donal
dTrumpimpl
ementedexecut
iveor
der
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aisedcontr
oversi
es.

 Ki
a’
sthe“
Her
o’sJour
ney
”commer
cialst
arr
ingMel
i
ssaMccar
thyi
sthepr
imeexampl
eof
soci
etal
mar
ket
ing.
 Budwei
seradshowi
nghowacompanyf
oundedbyi
tsi
mmi
grantf
ounder
.

Thesoci
etal
mar
ket
ingdoesnotst
opt
her
e.

Societ
almar ket
ingpol
ici
esarewhatmakingcompaniesacti
vel
yt r
yingtochangesocial
poli
cy,taki
ng partin soci
alact
ivi
ti
es,i
nvest
ing t
ime and moneyi n cor
por
ate soci
al
responsi
bil
i
ty.

Societalmarketi
ng conceptquest
ions whethert
he pur
e market
ing conceptover
looks
possibleconf
li
ctsbetweenconsumershort
-r
unwantsandconsumerlong-
runwelf
are.
The soci
etalmarket
ing conceptholds “
market
ing st
rat
egy shoul
d del
iv
erv al
ue t
o
cust
omersi nawaythatmai nt
ainsorimpr
ovesboththeconsumer’sandsoci
ety’
swel
l-
bei
ng”.