C HA PTE R I

Structure

1.0 Evolution of Marketing Philosophy

1.1 Nature & Scope of Marketing
1.2 Core Marketing Concepts
1.3 Comparison of selling concept with Traditional marketing concept
with Modern Marketing Concept
1.4 Marketing Myopia
1.5 Functions of Marketing
1.6 Importance of Marketing
1.7 Role of a Marketing Manager
1.8 Summary

Introduction:

Business World is rapidly changing, not only in India but globally. Whatever marketing strategies proved
successful one year back, may not yield same benefit when tried next time. Till 1970's, two global giants like
GM & Ford produced only big cars and that too only in two colors. These companies changed their
strategies only after facing setbacks & after facing global competition. Indian two wheeler giant Bajaj Auto
ignored consumers till 1985. Rise of Hero Honda— a strong competitor— forced the company to become
customer friendly.

In the 21st century, companies are facing global competition, broader income gaps, economic slowdown,
more environmental problems and wide range of social and political problems. Thus the role of marketing
becomes crucial— only those marketers are likely to succeed, who do smart marketing or better marketing
than competitors. Marketing deals with satisfying human and social needs, wants and demands. It also helps
corporates in converting private and social needs into profitable business opportunities.

1.0 Evolution of Marketing Philosophy

Officially, as per records available, marketing first arose in 17th century (1650 AD) in Japan. Mitsai Family
opened first departmental stores in Tokyo. Before this marketing was conducted through Barter System till
currency was invented. Initially marketing was confined to 'Exchange' process and more over to sale what is
produced by the organization. This continued will 1970s' in global and up to 1980's in India. Real meaning
of marketing was understood only in the decade of 1970-80. In India, smart marketing became compulsory
only after Indian Govt. launching LPG (Liberalization, Privatization & Globalization) strategy in June 1991.
In 21st century every Indian company started facing competition from global giants.

Only those firms survived who kept themselves fit for all types of competition.
Marketing has evolved through 3 distinct eras like
(1) Production Era
(2) Sales Era
(3) Marketing Era.

Era Tenure
Production Era 1650 - 1925
Sales Era 1925 - 1995
Marketing Era 1995 - till today

1.1 Evolution of Marketing

1.11 Nature of Marketing

The marketing department of any corporate is responsible to generate the cash. The cash/revenue is
generated by satisfying customer needs, wants and demands for a profit and in a socially responsible
manner. The finance department will manage the cash for effective utilization of funds; the production
department in consultation with marketing department uses the cash to develop product and arrange
services.

1.111 Approaches to the Study of Marketing

The study of marketing has been approached in more than one way. To some it has meant to sell something
at a shop or market place; to some it has meant the study of individual product and its movement in the
market; to some it has meant the study of persons-wholesalers, retailers agents etc., who move the products
and to some it has meant the study of behavior of commodity movement and the way the persons involved
to move them.

The approach to the study of marketing has passed through several stages before reaching the present stage.
There is a process of evolution in the development of these approaches. To facilitate the study, these
different approaches may be broadly classified as follows:

1. Product or Commodity Approach: Under the commodity approach the focus is placed on the product or
it is an approach on the marketing on commodity-wise basis. In other words, the study relates to the flow
of a certain commodity and its movement from the original producer right up to the ultimate customer.
The subject-matter, under this study, is commodity. When one studies the marketing on this basis-
commodity approach, one must begin to study and analyze the problems relating to a commodity i.e.,
sources and conditions of supply, nature and extent of demand, mode of transporting, storage,
standardization, packing etc. Again, take an example of a commodity, say rice. One has to study the
sources of rice, location, people involved in buying, selling, means of transport, problems of selling the
product, financing, storage, packing etc. Thus, we get a full picture of the marketing from the original
producer to the ultimate consumer. The method of study is repeated for each item.

The system claims that it is simple and gives good result over the marketing of each product description
study is possible. But at the same time this approach is time-consuming and repetitive, process which is a
drawback.

2. Institutional Approach: In the institutional approach, the focus is on the study of institutions-middlemen,
wholesalers, retailers, importers, exporters, agencies, warehousing, etc. engaged in the marketing during
the movement of goods. The approach is also known as middlemen approach. Here, emphasis is given to
understand and analyses the functions of; institutions, who are discharging their marketing functions. The
activities of each institution form a part of marketing and collectively complete the marketing functions. In
the process of moving the goods from the producer to the final consumers, a large number of persons are
 engaged. This system pays attention to the problems and functions of' marketing, institutions-transporting,
banks and other financial institutions, warehousing, advertising, insurance etc. This method does not give
adequate knowledge of the entire marketing functions and also fails to explain the interrelations of
different institutions.

3. Functional Approach: The functional approach gives importance on the various functions of marketing. In
other words, one concentrates attention on the specialized services or functions performed by marketers. In
this approach, marketing splits into many functions-buying, selling, pricing, standardization, storage,
transportation, advertising, packing etc. This may be studied one after another. Here each function is
studied in detail in order to understand it and analyze the nature, need and importance of each function.
In this approach, marketing is regarded as "business of buying and selling and as including those business
activities involved in the flow of goods and services between producers and customers.

This system gives too much importance to various marketing functions and fails to explain, how such
functions are applied to the specific business operations.

4. Management Approach – This approach is the latest and scientific. It concentrates upon the activities or
marketing functions and focuses on the role of decision-making at the level of firm. This approach is
mainly concerned with how managers handle specific problems and situations. It aims, through evaluation
of current market practices to achieve specific marketing objectives. Generally there are two factors –
controllable and uncontrollable, which are more concerned with the decision-making.

Controllable include price adjustment, advertisement, etc.

Uncontrollable – economical, sociological, psychological, political, etc. are the basic causes for market
changes.
And these changes cannot be controlled by any firm. But controllable can be controlled by the firm.

The uncontrollable limit the marketing opportunities. As such, managerial approach is concerned with the
study of uncontrollable and then taking decisions for controllable within the scope set by uncontrollable.

Managerial or decision-making approach emphasis on the practical aspects of marketing, but ignores the
theoretical aspects of marketing. At the same time, this approach provides overall information of the entire
business.

5. System Approach – The system approach can be defined as 'a set of objects together with the relationship
among them and their attributes'. Systems focus on interrelations and interconnections among the
functions of marketing. The system examines marketing connections (linkage) inside as well as outside the
firm.

Inside the firm there is a coordination of business activities – engineering, production, marketing, price,
etc. On the basis of feedback information proper control is exercised to modify or alter in the producing
process, so that the desired output can be produced. Here, the aim is to secure profit through customer-
satisfaction. Markets can be understood only through the study of marketing information. For instance,
business is composed of many functions, which are composed of sub functions. Each function or sub
function is independent, but interrelated and enables the other to achieve marketing objectives.

6. Societal Approach – This approach has been originated recently. The marketing process is regarded as a
means by which society meets its own consumption needs. This system gives no importance as to how the
business meets the consumer's needs. Therefore, attention is paid to ecological factors (sociological,
cultural, legal, etc.) and marketing decision and their impact on the society's well-being.

7. Legal Approach – This approach emphasizes only on aspect i.e. transfer of ownership to buyer. It explains
the regulatory aspect of marketing. In India, the marketing activities are largely controlled by S ales 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.

1.12 Scope of Marketing

Marketing covers needs, wants ad demands of individual customers and corporate or business organization,
which might be manufacturing firms or non-manufacturing firms. Details of scope of marketing are as
follows:
It involves marketing of 10 types of entities like
(a) Goods (Convenience goods, shopping goods, specialty goods, FMCG goods, impulse bought goods)
(b) Services (pure services, service plus product,
(c) Experiences (theme park like Essell World or Water Kingdoum)
(d) Events (world football cup, world cricket cup),
(e) Persons (Iconic would market Brand Sachin Tendulkar during 06, 07 & 08 and would pay R s. 180
crores to Mr. Sachin...
(f) Places (Cities or metros to attract tourist or businessmen e.g. Singapore is globe's No. 1 MIC E place,
where M means meetings, I means incentive holidays, C means convention, E means exhibitions &
entertainment.),
(g) Information (information can be produced and marketed as a product e.g. IIM or say stock market),
(h) Ideas (cosmetics are a product but 'would be beautiful' is an idea or hope. Similarly 'sea water' could be
product for water sports but 'Green Sea' or 'Dead Sea' is a salable idea).
(i) Properties (real estate, stocks, bonds.)
(j) Organizations (organization as brand) like Shopper`s Stop, Big Bazar., Intel.
1.13 Marketing:

I. It is the delivery of higher standard of living to society (Mazur, year 1947)

II. 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 (AMA, year 1960).
III. It is a total system of interacting business activities designed to plan, price, promote and distribute
want satisfying goods and services to present and potential customers, so that organizational
objectives can be achieved (Stanton, year 1971). Above definition is also called as Business
Definition of Marketing.
IV. It is a set of activities necessary and incidental to bringing about exchange relationships in our
economic system (Holloway and Hancock, year 1973).
V. It encompasses exchange activities conducted by individuals and organization for the purposes of
satisfying human wants (Eris, year 1977).
VI. Marketing is a societal process by which individuals and groups obtain what they need and want
through creating, offering and freely exchanging products and services of value with others
(Philip Kotler, year 2001).
VII. Marketing is a process of identifying needs, wants, and demands of the customer, meeting the
demands either by creating or outsourcing the product/service and making the product/service
available to customer at the places convenient for consuming at profit

1.2 Core Marketing Concepts

Needs, Wants & Demands

Need: It is the state of felt deprivation by a human. It describes basic human requirements. Some of the
basic requirements of each and every human are food, air, clothing and shelter. Everybody has priority in
needs like basic needs, safety needs, society needs and self -actuation needs. The Marketer must identify his
goods fall under which category and accordingly expect the response from consumers.

Wants: The needs which are influenced by social and personal values or preferences are called wants. Two
students of same age, income and sex group would be hungry at the same time but consume altogether
different types of food. One may go for roti and vegetable whereas second might go for rice and curry.

Demands: These are wants for specific products backed by ability to pay. & willingness to buy. I may
dream to own a bungalow at prestigious location of the city, but unless my pocket/purchase power allows
me to buy, the dream may not come to reality. The willingness to buy may not be very important dictator in
all purchase situations. Marketers are interested only in understanding demands. That is, wants backed by
financial power.

Product/Service: Consumers satisfy their needs, wants, demands with products/services. A product is
anything that can satisfy a need, want or demand.

Market: Market was a physical place (retail outlet) where buyer and seller used to meet for a transaction
purpose.

Exchange: When currency was not existing, people used to transact through barter system i.e. exchange of
goods for goods. To have exchange process, two parties must exist like buyer and seller. In India, till 1995,
most of the individuals used to transact cash for goods and thereafter credit card for goods. By the end of
20th century, there was no need to even visit retail outlet for buying goods or services. Internet screen serves
both the purposes. Both parties need not even see each-other.

The four types of markets like manufacturers market, middlemen markets, consumer markets and resource
markets are incomplete without presence of Govt. markets.

Govt. provides services like roads, communication, power, law and order etc. and in return recover taxes and
duties.

Value: The need satisfying ability of a product/service that is perceived by an individual is called value.
Alternatively, value is the ratio of Benefits to the costs. The word 'perception' in first definition is very
important. Since the perception of every individual about need satisfying ability of the product is different,
the value perceived is different. Thus value is always relative. F or example one students may look at MBA
course as key to best possible jobs, whereas some students may look at it 'passing two years &watching
crowd' point of view. As per the perception, the students might put the efforts and accordingly are able to
derive the benefits.

Two-Way Marketing: If the product is of good quality, made available on limited basis and it is priced
reasonably, the consumers also may market their candidature to grab the product and so also the marketer.

Relationships and Networks – The objective is to build long term relationships with key parties like
customers, suppliers and distributors to earn better business.

Marketing Channels
(a)Communication Channels like advertising, sales Promotion, publicity, public relations and direct
marketing
(b)Distribution Channels like stockiest, wholesalers, retailers, etc.
c) Trade Channels like banks, insurance companies and organized retailers

Supply Chain

It is a process which involves management of movement of raw material from vendors to manufacturers and
finished goods from manufacturers to end users.

Competition
a) Brand competition – Similar products / services are offered
To same customer at similar price say pre-paid cards
b) Industry competition – All companies make same product class (soap,
beauty cream)
c) Form Competition – Same service (customers care toll free no.)
d) Generic competition – Try same target market (Hindi movies, 12th pass
students are targeted by BBA course, Engineering course, medical course,
etc.)

Marketing Environment
a) Broad Environment (macro) --- External
b) Task Environment (micro) --- Internal

Marketing Mix a) Product

b) Price
c) Place
d) Promotion

Illustration for two way marketing:

a) Pune Municipal Corporation (PMC) offered a two-bed room flats, measuring 800 Sq.ft, at the rate of R s
1000 per.sq.ft to back stage and cinema character artists at Kothrud location of Pune city. Since total flats to
be disbursed were only 40, PMC prepared list of deserving candidates. At the same time, artists also started
marketing their personality to PMC officers to grab the property at throw away price.

b) One of the reputed medical colleges in Pune offered NR I seats to Dubai residents. The marketing words
used in caption to sell the seats were, India still not free from all deceases like Plague, Smallpox, Typhoid,
Typhus & Aids. Almost all the deceases still exist in India, which were 50 years back also. So your
son/daughter will be trained with patients having all types of diseases, which is a strategic advantage over
leading western countries, where such patients do not exist. The strategy worked and the medical college
could fetch hefty price for NR I seats. Since seats are limited, every candidate started marketing his
candidature to prove that he is the only deserving candidate.
 1.3 Comparison of selling concept with Traditional marketing concept with Modern Marketing
Concept

1.31 Selling Concept:

The salesmen have to sale the products manufactured by their employer. Each salesman may visit shop to
shop, show the product, if possible. Discuss the features of the product. If customer is interested then
discuss price and promotional schemes. At the end of the year, the profits are directly proportional to the
amount of sales volume, which in turn depends on sales efforts.

1.32 Traditional Marketing Concept:

The Marketer has to approach the market and understand the needs, wants and demands of the consumers.
Marketer then has to exercise co-ordinated or integrated marketing which means
a) Co- ordination within the marketing organization
b) Co-ordination within the organization with other departments, &
c) Co – ordination with the customer i.e. E very communication to the customer must flow from marketing
department only.

The results of co-ordinated marketing will reflect into the profitability which will not be directly
proportional to the amount of sales efforts made but much more than that. In traditional marketing &
modern marketing, since the product/service is tailored as per customer needs & wants, the customer is
satisfied & he spreads the news to his group. This word of mouth is free promotion of the product and
hence many people buy the product, leading to higher profits.

1.33 Modern Marketing Concept

The starting point of modern marketing is the target market. The efforts must be focused and
hence the marketer must know to whom he should target the products. This will lead to better
utilization of money resources.
Snickers: You're not you, when you're hungry
As with all successful global campaigns, the ―You're not yourself when you’re hungry‖
campaign worked on a universal assumption, namely that when you're hungry your mood and
your abilities change. The campaign continues to run across social, television, retail and print.

Coherence: - While the execution changed across different media and markets, the central theme
and strapline remained the same as it was relevant for markets worldwide.

Consistency: - The consistency of message worked well across multiple regional campaigns and
media: from the TV ad featuring Joan Collins, to the PPC campaign based around commonly
misspelt search terms, to the Twitter campaign featuring Rio Ferdinand and Katie Banks that
generated newspaper headlines, questions in Parliament and legal proceedings. These consistent
messages allowed the effectiveness of the central proposition remain intact across markets and
regional campaigns.

Continuity: - The launched in the US with a Super bowl ad featuring Golden Girls actress, Betty White in
2010, and yet four years later the creative execution of the campaign remains intact.

Complimentary :- The effectiveness of the central proposition and the global campaigns
adherence to the first Three Cs mean that when combined you have a long- running, multi-channel, multi-
million campaign, the constituent parts of which ensure that

Effectiveness:-According to Effectiveness organization activity in the first three months of the campaign in
the US helped to grow sales by 13.4%, there was an 18,000% increases in Snickers searches on You
Tube, over 5million online views and over 400million incremental and unpaid media impressions.

Innovative Marketing has following elements such as

1) Discounts and Exchange offers
2) Variety & Segmentation
3) Overcoming Financial Hardles of your Customers.
The basic purpose of innovative marketing is to generate the demand & or new customers rather than just
satisfying existing demand & or existing customers.

For example Archie’s Greetings cards generated market for greeting cards, celebrating mother's day,
teacher's day etc.

a. Discounts, Exchange offers

Discounts, Corporate India normally launches Monsoon sale on 1st June every year, which lasts up to 31st
August. The quantum could be 50% discount. The limited period and huge benefit works on consumer
mind to convert non users to users.
 b. Variety & Segmentation:
Variety: HLL's oldest soap lifebuoy was having the users only from 'sports' background because of its
positioning (Tandurasti Ki R aksha Karta hi Lifebuoy, Lifebouy hai J aha, Tandurasti he Vaha) Many non-
sports wants to use the soap, as per the research done by HLL in 1998. The variants were launched like
lifebuoy Gold for J junior College going F female with single benefit like pimple removal. Second variant
for lifebuoy plus for Junior & Senior College as well working young make with single benefit 'Forget
Pasineki Budboo'. Both the variants augmented the demand, especially from non- sports people.

1.34 Delighting Customers

For any marketer, there are three types of customers like

Promoters & shareholders Middlemen Actual users

Promoters and shareholders, marketing middlemen like wholesalers and retailers and actual users who
consume the products.

To delight the promoters and shareholders, the tool to be used by any marketer in MVA and EVA.

(Market Value of Capital – Capital Employed)

MVA tells us how much wealth has been created or destroyed by a company relative to original
investment. More the MVA, more the the MVA, more the appreciation of capital.

For example whosoever invested R s 250/- for 100 shares in Bajaj Auto during first public issue in 1966,
saw its investment growing to Rs 20 laces i.e. 8000 times) by 1996. Such appreciation would not have
been possible though the investment in gold, real estate etc.

E VA = E c onomic V a lue A ddition

= (Net operating profit after tax – cost of capital x capital employed)
= (Returns on capital employed in % i.e. R OC E – Weighted Average cost of Capital i.e. WA C in %).

EVA tells us the efficiency with which capital is being employed. Less E VA means, expensive and scarce
capital, instead of being allocated to wealth creating opportunities, is getting destroyed. More E VA means
better chances of higher dividends.
Thus higher MVA & E VA will keep delighted to the shareholders and promoters, since they get much
more than bank fixed deposit rate. To delight marketing middlemen, adequate commissions and credit
period backed with prompt delivers is essential.

Delighting actual user is always difficult, since the expectations keep on changing every now and then.
The key to deliver delight is 'surprise' and 'additional benefits' which customer thinks impossible to
achieve. Take example of Sahara Air Lines. For years together, Indian flyers were fed-up with
unsatisfactory services of Indian Airlines. Sahara arranged door pick-ups, delicious food from hotel Taj,
prompt delivery of luggage at destination, right time flight departures and arrivals ad communicating to the
host at destination who might receive you at airport.

As far as scooters are concerned, Bajaj Auto delighted the customers from 1966 to 1985. It scored on the
attributes like reasonable price, low maintenance cost, repair ability by road side mechanic and good resale
price. Thus the corporates who simultaneously delight promoters, middlemen and end users have long
 term survival.

1.4 Marketing Myopia

Definition: It is the situation in which the marketer does not understand or unable to formulate the strategy
in spite of his qualification and experience in that line for considerable amount of time.

Illustration: Gits India Ltd (Ready to eat foods and instant mixes)

The company started business in 1970 in Bangalore. Till 1980 it consolidated the position in India and by
1990 it entered in nearby export destinations also. Market share almost 95%. It thought nobody will
penetrate through its market share (a myopic situation) and hence totally stopped promoting the product.
In 1991, nestle drilled a hole in its empire by launching Maggie Noodles and had taken away 5% market
share. By 1993, Pune based Weikfield also launched ready mixes and taken away another 5% market
share. By the time Gits realized entry of these two companies, it had already lost 12.5% market share. It
started promo0tion once again in 1995, but it could not regain Monopoly status. Videocon International
was most successful in identifying opportunity for washing machines during 1988. The market share of
Videocon ballooned to 94% by 1994-95. Thereafter it just sat on it, thinking nobody will touch its
innovative technology, just toppled Videocon from 1st position to 2nd position, within 25 months.

1.5 Functions of Marketing

A] Buying, Assembling and Selling

A retailer is important chain member in the marketing system. A retailer, say at Dharavi slum Area would
buy from wholesaler the cheap goods, since he knows purchase power of his customers. Whereas a retailer
at posh area of Bandra will stock medium and premium price goods.

The marketing mantra for 21st century is BPO – Business Process Outsourcing. For example an Air
Conditioner marketer may outsource each and every equipment like frame, compressor, and evaporator,
condenser, dominated by Assembly operator’s switches.

Just assemble it in his warehouse and dispatch to his customer. In India 60% of PC & AC market is
dominated by Assembly operators.

In any organization, marketing department issues the budget for buying each equipment/raw
materials/components/assemblies. The purchase department. Need to strictly buy as per these guidelines.

Sale is done in two forms

(i) Negotiated sale – It might be

a) sale by inspection
a) Sale by sample
b) Sale by description
c) Sale by grade and
d) Sale by brand.

(ii) Auction Sale – Buyers bid against one another for the goods on sale. The goods are sold to the highest
bidder.

B] Physical Distribution
Though, arranging transport for raw materials and finished goods is the function of distribution manager, it
is not finalized till marketing manager oks it. If marketer is selling seasonal goods, he may have to stock raw
material and finished good in a warehouse. F or example ITC is using its 'Nipani' warehouse to stock raw
tobacco and kolkata warehouse for stocking cigarettes. Appointment of channel members and monitoring
them is also key marketing task.

C] Merchandising
Exhibiting the product through showrooms in a specify way (Eye-catching) is known as merchandizing.

D] Marketing Research

The objective of marketing research is to identify buyer's habits, effectiveness of advertising, product and
media research etc. Its major task is to provide marketing manager timely and accurate information on
product and market so that better decision making is possible.

E] Promotion

You might have good product, latest technology, but if you do not communicate properly to target
customers, marketing efforts are wasted... Promotion i.e communication calls for designing packaging,
advertising, sales promotion, publicity, public relations, direct marketing and personal selling. Good
promotion may not necessarily mean high ad-expenditure. For example HLL's Fair and lovely (Fairness
Cream & Soap) have been hammering 'Gorepan' as the benefit, whereas Cavinkare's Faireverand Freshia
highlighted 'Khubsuruti through smartness' which immediately got accepted by teenaged girls.

F] Pricing

Survival and growth of any company depends on pricing decision. The pricing decision should be strategic
i.e. situational. The factors any marketer must consider while pricing a product is cost, demand, competition,
government regulations etc.

Arranging consumer finance is integral part of marketing function. Some of the corporates like Bajaj and
Ford have gone one step ahead and absorb some part of interest component. As such the E MI's for the
vehicles of these companies looks quite slick as compared to others, which results in hefty sales.

Deciding margins/commissions for the dealers is also offshoot of pricing decisions. The market trend and
services provided by dealers must be carefully studied for this purpose.

1.6 Importance of Marketing

i) Marketing affects everybody marketing revolves around customer. Changing needs and
demands of a consumer give birth to new products and new corporates. Nuclear families are
dominated by working women. The result of woman venturing out lead to expansion of markets
like baby-sittings, maids, robots, computers. At the same time 'alone parent' in the home resulted
in the expansion of the market for TV Telephone etc.
ii) Marketing satisfies consumer needs
Marketing creates the utilities for consumers by adding value to the product as follows.

iii) Marketing generates sales revenue for an organization

The organization is able to receive the cash only when it is able to sell the goods & services. This
activity is performed by marketing staff.
iv) Marketing & Economy
a) Marketing facilitates progress and growth of the economy
b) Marketing enables a country to improve the quality of the goods and services and hence the
business values.
c) Marketing generates employment in production, distribution and promotion area.
d) Marketing helps in developing economic resources.
While discussing the concept, by marketing manager, it is to be assumed as 'head of the marketing
department.
Marketing manager as a C E O is responsible for C – Responsible for consumers
E – Responsible
O – Responsible for owner of the company from the point of view of generating targeted
profitability.

1.7 Role of a Marketing Manager

Functions/Responsibilities/Duties

1. Prime Functions

Integrated marketing – Marketing Manager (MM) has to coordinate with other department to conduct
marketing functions.

Determination of objectives – The objectives could be achieving certain market share, specific profitability,
certain percentage of customer satisfaction level, social welfare etc.
Product policy – To decide, should company go for one time sale or repeat sale type of product. F or
example, Mr. Suresh Aggarwal used to initially manufacturer Kuwar Ajay Sarees. The customers used to
buy sarees once or maximum twice in a year. Repeat sales were possible only after 12-24 months. Hence he
diversified into such products which are bought by customers frequently like 'Dandi Namak', 'Friendly wash
detergent'.

Planning – When you are facing volatility in the market place and success is also not sure, MM needs to
outsource the goods/services and only do marketing and branding. F or example Reebok outsourced
production, distribution, transportation and concentrated only on promotion and branding.

Selling and service – MM has to arrange before sales service like objection handling, test rides, and after
sales service also like installations, training and commissioning.

2. Routine Functions

1. Organizing staff– As per the product being manufactured, marketed and as per the
marketing objectives, MM needs to design the marketing organization. The design should
provide flexibility as per changing needs of the markets.

2. Recruiting, selecting and training able staff– Recruiting means motivating the
candidates to fill up placement applications of the company. By using a written test,
group discussions, personal interviews, the deserving candidates to be sleeted. The
candidates who are selected, irrespective of their position as junior, middle level or
senior level, they are to be provided training. The meaning of 'able staff' is 'functionally
the candidate should be ok to perform the duties'. F or example, if a candidate is selected
for selling agro-goods to farmers and if he is good in communicating local language,
even if he is out properly communicating in English, need to be selected.

3. Directing – MM should know the habits of the corporates or individuals and

accordingly he should direct the marketing executives. F or example, while dealing
with cooperative and government sector, ethical marketing may not work.

4. Analysis and E valuation of strategy and staff– This is an inherent part of

 marketing audit. The implementation of marketing strategy must be appraised for its
utility and modification if required. Similarly the utility of the each marketing staff must
be ascertained at regular internal from the point of view of better utilization of resources.

5. Controlling – Controlling speech, dress code, behavior and errors is crucial job of
any MM. What to speak, how to speak which dress-code (uniform, three-piece-suit or
blazer etc.), where to meet the customer (in office, at residence, outside the office) and
errors in quotations and negotiations to be rectified by MM.

Qualities

i) Patience and Judgment – MM need to be aggressive as per the situation but whenever
the situation is not favorable; he must have tenacity to wait till situation becomes
opportunity. Many problems/errors could be sorted out by just applying the judgment.
ii) Loyalty with Employer – Some of the MM simultaneously works for two
employers. Such things get leaked and he loses the credibility with current and future
employer. Moreover his subordinates also do not salute him. Office memos, prepare
for big tenders for government customers, disburse dealer's claims etc. very
occasionally, and MM need to go on tour also. The desirable trait could be, in all
situations, he must able to vacate his 'incoming mail tray' on daily basis. Top
management never likes a MM, who keeps pending the work for one week and
more. In 21st century, the botheration is much more – to reply every e-mail on same
day.

iii) Vocal and Drafting Power – Some of the marketing managers are recognized by
their communication skills and drafting power. The recognized by their
communication skills and drafting power. The person who receives the
communication from MM must understand it and get impressed.
iv) Helicopter Personality – Like helicopter, which files midways between earth and sky MM should
create an impression that everybody thinks 'he is my man'. Employees and top boss think MM
belongs to them. Whereas MM should keep himself at equidistance from both parties.
v) Photographic Memory – MM comes across many personalities in his black box and is able to
recall instantly after considerable time, nothing like that.
vi) Ability to define positions exact duties and responsibilities – MM should have enough
maturity to understand his role in the organization. The reporting criteria must be strictly
followed. Weekly and monthly reports from subordinates to him and from him to top
management must be submitted as per the norms of the organization. In one line it can be said
as, 'he must perform the duties of achieving targets and responsibilities of conducting marketing
functions effectively?

1.8 Summary

Marketing is the process of creating, pricing, distributing & promoting goods, services,
persons, places, ideas etc. Marketing creates utilities like place utility, form utility, time
utility & possession utility.

Delivering products/services, which provide value & satisfaction to the customer, was
the main aim of marketing till 2000A.D.In 21st century, marketer need to delight
customer, apart from delivering value & satisfaction.

A marketing manager, in the current situation has to deliver multidimensional role. He is

responsible for meeting needs, wants, and demands of customer; also responsible to
meet expectation of employees working under him, as well responsible for company to
procure desired profitability.