Subject Marketing Management

Assi. Prof. Moholkar A.N

Brilliant Mahavidhyalay (Evening). Latur.

Chapter: Marketing
Introduction of Marketing
he markcting concept consists of achievement of organizational goals by determining the
and
wants of customers and delivering the desired benefits more effectively
us and
efficiently than competitors. Peter Drucker has stated that "there is only one vald
definition of business purpose: to create a customer'. As per Lou Gerstner, CEO IBM,
of
Everything starts with the customer'. Michael Tracy and Fred Wiersema have stated the
the
purpose of marketing which is "Creating shareholder wealth is not the purpose of
business. It is the reward for creating customer value'.
Organizations vary in their perceptions about business, and their orientationstothe
market place. This has led to the emergence of many different concepts of marketing
Marketing activities are normally performed under some well thought out philosophy of
efficient, effective, and responsible marketing.
Marketing is a process by which an organization obtains what it needs and wants
through creating and exchanging products and value with its customers. In simple words it
is the delivery of customer atisfaction at a profit. It satisfies the needs of customers better
than the competition. It focuses on the use of all the controllable influences to satisfy the
Customer. One of the shortest definition of marketing is 'meeting needs profitably'. As a
managerial definition, marketing has often been described as 'the art of selling products.

Meaning of Marketing
Marketing is a process by which an organization obtains what it needs and wants
through creating and exchanging products and value with its customers. In simple words it
is the delivery of customer satisfaction at a profit. It satisfies the needs of customers better
than the competition. It focuses on the use of all the controllable influences to satisfy the
customer.
As a managerial definition, marketing has often been described as the art of selling
products'
Definition of Marketing
1. Peter Drucker has defined marketing as "Marketing is so basic that it cannot be
considered as separate function. It is the whole business seen from the point of view
of its final result, tha is, from the customer's point of view',
2. Marketing is a process by which an organization obtains what it needs and wants
through creating and exchanging products and value with its customers. In
simple
words it is the delivery of customer satisfaction at a profit.
3. Philip Kotler defines marketing as"Marketing management is the
analvsis
planning. implementation and control of programmes designed to bring about the
 desired eschanges with target audicnces for the purpose of personal and mutual
gain. It relies heavily on adoption and coordination ol the product, price, promotion
and place for achieving response
Approaches of Marketing
(1) Commodity Approach or Product Approach:
This approach refers to the study of a product in detail. Thu
marketing situation of each
product chosen for study is examined from such viewpoints as sources
and conditions of
supply. producer marketing organisations, policies, different middlemen
(wholesaler's 6f
retailers etc.) who take part in
distributing the product.
2. Institutional Approach:
In the institutional approach, the focus is on the
study of institutions- middlemen,
wholesalers, retailers, importers, exporters, agencies,
marketing during the movement of
warehousing etc., engaged in the
goods. The approach is also known as middlemen
approach. Here, emphasis is given to understand and analyses the functions of
who are
discharging their marketing functions. institutions,
3. Functional Approach:
The functional
approach gives importance on the various functions of
words, one concentrates attention on the marketing. In other
specialized services or functions performed by
marketers. In this approach,
marketing splits into many functions-buying, selling,
standardization, storage, transportation, advertising, pricing,
after another. Here each function is packing etc. This may be studied one
studied in detail in order to understand it
the nature, need and and analyses
importance of each function.
This approachis the latest and scientific. It
concentrates upon the activities or
functions and focuses on the role of
decision-making
at the level of firm.
marketing
mainly concemed with how managers handle This approach is
specific
through evaluation of current market practices to achieve problems and situations. It aims
specific marketing objectives.
5. System Approach:
The system approach can be defined as "a
set of objects
among them and their attributes." Systems focus on
together with the relationships
interrelations and interconnections
among the functions of marketing. The system
examines marketing connections
inside as well as outside the firm. Inside
the firm there is a co-ordination (linkage)
of business
activities-engineering, production, marketing, price etc.
6. Societal Approach:
This approach has been originated recently. The marketing regarded as a means
process Is

as to
by which society mects its own consumption needs. This system gives no importance
how the business meets th consumer's needs. Therefore, attention is paid to ecological
factors (sociological, cultural, legal etc.) and marketing decisions and their impact on the

society's well-being.
7. Legal Approach:
This approach emphasizes only one aspect i.e., transfer of ownership to buyer: It explains
the regulatory aspect of marketing. In India, the marketing activities are largely controlled
by Sales of Goods Act, Carrier Act etc. The study is concentrated only on legal aspects,
leaving other important aspects. This does not give an idea of marketing.

8. Economic Approach:
This approach deals with only the problems of supply, demand and price. These are
important from the economic point of view, but fail to give a clear idea of marketing.

Importance of Marketing

(1) Marketing Helps in Transfer, Exchange and Movement of Goods:

movement of goods. Goods and
Marketing is very helpful in transfer, exchange and
intermediaries' viz., wholesalers
services are made available to customers through various
and consumers.
and retailers etc. Marketing is helpful to both producers
and preferences of consumers and to
To the former, it tells about the specific needs
manufacturers can offer. According to Prof. Haney
the latter about the products that
consumers and
Hansen Marketing involves the design
of the products acceptable to the
between seller
facilitate the transfer of ownership
the conduct of those activities which
and buyer." Of
The Standard Of Living
Marketing Is Helpful In Raising And Maintaining
(2)
The Community:
to the community. Paul Mazur
is above all the giving of a standard of living
Marketing Professor Malcolm McNair has
is the delivery of standard of living".
states, "Marketing of standard of living to the
added that "Marketing is the creation and delivery
further
society"
 available the uninterrupted supply of goods and services to consumers at a NItD
By making t h e sa
reasonable price, marketing has played an important role in raising and maintaining living
standards of the community. Community compriscs of three classes of people i.e., rich
middle and poor. Everything which is uscd by these different classes of people is supplied
by marketing.

) Marketing Creates Employment: Marketing is complexmechanism involving many

people in one form or the other. The major markcting functions are buying, selling,
financing., transport, warehousing, risk bearing and standardisation, etc. In each such
function different activities are
performed by a large number of individuals and bodies.
Thus, marketing gives employment to many people. It is estimated that about 40% of total
population is directly or indirectly dependent upon marketing. In the modern era of large
scale production and industrialisation, role of marketing has widened.
(4) Marketing Source of Income and Revenue: The
as a

function is all important, because it is the

performance of marketing
only way through which the concern could
generate revenue or income and bring in profits. Buskirk has pointed out
that, "Any
activity connected with obtaining income is a marketing action. It is all to0
easy for the
accountant, engineer, etc., to operate under the broad assumotion that the
realise many dollars in total sales volume. Company will

(5) Marketing Acts Basis for Making Decisions: A businessman

as a
is confronted with
many problems in the form of what, how, when, how much and
for whom to produce? In
the past problems was less on account of local
markets. There was a direct link between
producer and consumer.

In moderm times marketing has become a very complex and tedious task. Marketing has
emerged as new specialised activity along with production.
As a result, producers are
depending largely on the mechanism of
what to produce and sell. With the marketing, to decide
help of marketing techniques a producer can
his production accordingly. regulate

(6) Marketing Acts as a Source of New Ideas:

The concept of marketing is a
dynamic concept. It has changed altogether
with the
passage of time. Such changes have far reaching etfects on production and distribution.
With the rapid change in tastes and preference of people, marketing has to come up with
the same. wi

Marketing as an instrument of measurement,

gives scope for understanding thiIs new
demand pattern and
thereby produce and make available the goods accordingiy.
(7) Marketing Is Helpful In
Adam Smith has remarked that
Development Of An Economy:
"nothing happens in
country our until somebody selis
something". Marketing is the kingpin that sets the
economy revolving. The marketing
organisation, more scientifically organised, makes the
lesser the stress on the economy strong and stable, tne
marketing function, the weaker will be the economy.
Scope of Marketing
(1) Products and Services:
Products and Service are the basic element of
marketing. If there is
product there is no no
marketing. It is concemed with the nature and type of
products, product quality and
design, product planning and development, product decisions relating to
branding.
labelling, packaging, trademarks etc.
(2) Marketing Research:
Though products and servi es were the starting point under traditional marketing, modern
marketing starts with an analysis of the various aspects of market and related areas. It
includes an analysis of nature and types of customers, size of market, customer attitude,
buyer behaviour etc. An in-depth anaysis of customers and markets is a prerequisite for
every marketer to have a successful marketing.
(3) Channel of Distribution:
The pathway through which the goods move from producer to consumer is the channel of
distribution. It includes a number of intermediaries like wholesaler, retailers, jobbers etc.
Channels by moving the goods help in transferring the ownership of goods from seller to
buyer.
(4) Physical Distribution:
The physical movement of the goods from producer to consumer is physical distribution.
It includes transportation, warehousing, inventory control and management, order

processing etc.
(5) Promotional Decisions:
Promotion has
Howsoever good a product s, it has no value if it is not properly promoted.
market about product availability and creating a
the basic objective of informing the
tools are there like advertising, sales promotion,
demand for it. Different promotional
relations etc.
personal selling, publicity, public
 (6) Pricing Decisions: Pr
This is the only element of marketing which generates revenue for the firm. discounts,
Pricing i
concerned with pricing policies and strategies, price determination,
commissions etc.
(7) Environmental Analysis:
An analysis of the environment in which the business is to be carried out is
the first step
for any organisation. The various macro and micro factors should
be studied beforehand
only to develop an understanding of the strength, weaknesses, opportunities and
for an organisation. threats,
(8) Feedback from Customers:
For successful marketing of goods it is essential that the marketer
obtains the required
feedback from customers. A proper feedback mechanism
should be developed so that
reasons for failure or less satisfaction be
may identified and improvements in the products
be made.
(9) Responsibility towards the Society: Business and
society are interrelated and
interdependent. A business cannot exist in vacuum. It derives its much needed inputs from
society and therefore owes a responsibility towards the society. These social
activities are
a
part of marketing as the units have to protect and
marketer to be socially responsive owes
pro0.mote interest of the society. A
the
responsibility towards employees, consumer,
shareholder etc.

Concept of Marketing Management

Marketing concepts or
marketing
utilized by the businesses to direct management_philosophies
refer to the philosophies
their marketing efforts.
denote the philosophies a business uses to Mainly, marketing concepts
define and accomplish the needs of its
customers, serving both the consumer and the
company. The same philosophy cannot be
helpful for all types of businesses. So, different
types of businesses use different
marketing management philosophies marketing concepts.
Production Concept:
This concept is based on an idea that
more sales because customers
inexpensive and widely available products generate
prefer those. This is quite similar to the Say's Law which
states "Supply creates its own demand'.
So, companies produce the
scale and make sure that it is easily available product on a large
everywhere to the customer.
The large scale of production of the
scale which lead to inexpensive
product helps the companies to avail the economies of
products and thus attracting more customers.
Product Concept:

De
This concept 18 based on an idea that customers prefer quality products whatever may
their price and availability. According to this concept, companies concentrate on
developing a Derter quality product which is usually expensiIVe.

The drawback of this concept is that it focuses only on the product quality but not on other
factors Inke usability, avar'1bility. price, ctc. So, it may fail to attract those customers
whose attentions are on the other mentioned factors.

Selling Concept:
Selling Concept is only concemed with selling the product whatever may be the quality of
the produet and need of the customer. The chief motive is making money, not developing
a relationship with the customers. So, there is less possibility of repeated sales. Companies
applying this philosophy can even deceive the customers to sell their products.

The drawback of this concept is that it lacks foresightedness because the companies focus
on selling what they produce instead of focusing on the need of the market.

Marketing Concept:
A company following selling concept cannot have long-term existence in the market
because it cannot fulfill customers' needs. Companies have to make products fulfiling
their customers' needs to be successful in today's era. So, the marketing concept came
into existence. This concept is based on an idea that customers buy the products
accomplishing their needs. Companies based on marketing philosophy perform customer-
researches to know their needs and wants and make products to meet the same better than
their competing companies. In this way, the company builds a customer relationship,
becomes profitable and earns goodwill. But still, many companies follow other
philosophies and generate profits. The choice of the concept is totally dependent on the
demand, supply, and the engaged parties' needs.
Social Marketing Concept:
The societal marketing concept is based on the marketing concept just adding the
philosophy of social welfare with it. Companies concentrate on fulfilling their customers
needs as well as contributing to social welfare without polluting or affecting the
environment and natural resources. According to this concept, company or business being
a part of the society has corporate social responsibilities such as eliminating illiteracy,
better health and treatment
poverty, controlling alarming population growth, ensuring
facilities, helping victims of different natural calamities like flood, cyclone, excess cold,

draught, etc.

Definition of Marketing 1.lanagement

1. Marketing management is "planning, organising, controlling and implementing of
marketing programmes, policies, strategies and tactics designed to create and satisfy
 the demand for the firms' product offerings or services as a means of generating an
acceptable profit.

According to Philip Kotler. "Marketing Management is the art and science of

choosing target markets and building profitable relationship with them. Marketing
management is a process involving analysis, planning, implementing and control
and it covers goods, services, ideas and the
goal is to produce satisfaction to the
parties involved".

3. Kotler and Keller,

"Marketing management is concemed with the
chalking out of
a definite programme, after careful analysis and
and the ultimate execution of these forecasting of the market situations
plans to achieve the objectives
of the
organization.

4. Marketing management is "The art and science of choosing target markets and
getting, keeping, and growing customers through creating,
communicating superior customer value delivering, and

Function of Marketing Management

Marketing Analysis&
Planning Objectives Evaluation

Marketing
Staffing
Organization Management

Control
Direction
Co-ordinatio
www.gktodayin

Following is a brief summary of functions of

Marketing
Marketing Objectives
NMarketing
Marketing management determines the marketing objectives. The marketing objectives
may be shot term or long tem and necd a clear approach. They have to be in eu
coherence
with the aims and objectives of the organization.
Planning
Ater objectively determining the marketing Objectives, the important function of the
marketing Management is to plan how to achieve those objectives. This includes salcs
forecast, marketing prograi mes formulation, marketing strategies.
Organization
A plan once needs implementation. Organizing functions of
formulated marketing
management involves the collection and coordination of required mcans to implement a
plan and to achieved pre determincd objectives. The organization involves structure ot
marketing organization, duties, responsibilities and powers of various members of the
marketing organization.
Coordination
Coordination refers to harmonious adjustment of the activitics of the marketing
organization. It involves coordination among various activities such as sales forecasting
product planning, product development, transportation, warehousing etc.
Direction
Direction in marketing management refers to development of new markets, leadership of
employees, motivation, inspiration, guiding and supervision of the employees.

Control
is implemented. It
Control refers to the effectiveness with which a marketing plan
of
involves the determinatiol. of standards, evaluation of actual performance, adoption
corrective measures.

Staffing of a market plan. The

very crucial to success
Employment of right and able employees is
Resource Manager of an organization to be
market manager coordinates with the Human
able to hire the staff with desired capability.
Analysis and Evaluation
involves the analysis and evaluation of the productivity and
The marketing management
performs mace of individual employees.
Conclusion field of
has the responsibility of to perform many functions in the
Marketing Management and
directing, motivating, coordinating
marketing such as planning, organizing, the
All these function aim to achiven marketing goals.
controlling.
Marketing Management in India

Thehistory of marketing practice is grounded in

However. following the themanagement and marketing
calico cloth from India.European age of discovery, goods were imported from afar
..

The Indian Fast

Moving Consumer Goods (FMCG) industry
the last fifty-years. The FMCG
sector is comerstone of the Indianbegins shape during
to
touches every aspect of human life. Indian economy. This sector
FMCG market has been divided for
between the organized sectors an
unorganized sector. Unlike the US market
long time
which is dominated by a handful of for FMCG
market remains highly fragmented with
global players, Indian rupees 460 billion FMCG
roughly half the market
unpackaged homemade product. This presents a tremendous going to for unbranded,
branded product who can convert consumers to opportunity market
buy branded products.
Globally, the FMCG sector has been successful in
selling products to the lower and
middle income groups, and the same is it true in
India. Over 70% of sales is made to
middle class households today and over 50% is an rural
Indian. 10 sector is excited about
burgeoning rural population whose income are rising and which is willing to spend on
goods designed to improve Lifestyle. Also with plan saturation and cut throat
in urban India many competition
products of FMCG Driven to chalk out bold new Strategies for
targeting the rural consumer in a big way. Mart comedy specialized the ruler
development consultancy, has founded that 53% of FMCG sales and 59% of marketing consumer
durable sales lie in rural areas. of 2 million BSNL mobile
towns and villages, of 20 million online
connections, 50% went to small
subscription commerce 60% came from small
towns, so did the half transactions on online
shopping site.