Principles of Management and Marketing ● Finances - Financial management, operations

management, and supply chain management

Subjects (Business Management) ● Raw Materials - Inventory management, and
Human Behavior in Organization operations
Business Research ● management in general
Environmental Management ● Systems - IS, IT, and Equipment
Project Management ● Management
Governance and Management ● Sales - Marketing management
Operations Management and TQM ● and inventory management
International Trade ● Projects: project management and supply chain
Strategic Management management
Electvies ● Strategy - Strategic Management

Other Management Subjects What is Management?

Financial Management
Management Information System
Marketing Management
Management
What is Management?
- Your own understanding of management
- From the word to manage:
“To take charge of” or
“ To be in charge (of);”.
Who and what do you manage?
Human Resources - people
Inanimate Resources - processes,
finances, systems, assets, etc.
Why is there a need to manage?
To meet personal or organizational goals.
Common Business Goals:
- To make profits and create value for its
shareholders
- To continue to exist by expanding the business,
as well as the customer base.
- To continue to satisfy its customers with quality
and yet affordable goods and services.
- To recruit and maintain quality staff
- To affect the society it operates, and
sometimes beyond (CSR)
Dimensions of Management
a. Personal:
time, money, stress, body, home, etc….
b. Organizational:
● Human Beings - HBO, HRM
● Process - Process Management
● Harold Koontz: Management is an art of getting
things done through and with people in formally
organized groups. It is an art of creating an
environment in which people can perform and
individuals can cooperate towards attainment
of group goals.
● F.W. Taylor: Management is an art of knowing
what to do, when to do and see that it is done
in the best way and the cheapest way.
● Management is the creative and systematic
pursuit of practical results, (including the result
of more knowledge), by identifying and using
available human and knowledge resources in a
concerted and reinforcing way
Management includes being both Effective and
Efficient
Effective: means doing appropriate tasks, i.e., fitting
the square pegs in square holes and round pegs in
round holes.
Efficient: means doing the task correctly at least
possible cost with minimum wastage of resources.
Managing Process in an Organization
Input > Process > Output
Management as a process
As a process, management refers to a series of
interrelated functions. Management is a distinct
process consisting of:
1. Planning: “Is deciding in advance – what to do,
when to do & how to do. It bridges the gap from
where we are & where we want to
be”(KOONTZ)
2. Organizing: “To organize a business is to
provide it with everything useful for its
 functioning i.e. raw material, tools, capital and
personnel’s”( By Henry Fayol)
3. Staffing: According to Koontz & O'Donell,
“Managerial function of staffing involves
manning the organization structure through
proper and effective selection, appraisal &
development of personnel to fill the roles
designed in the structure”.
4. Directing: It is that part of managerial function
which actuates the organizational methods to
work efficiently for achievement of
organizational purposes
Elements of Directing
- Supervision: implies overseeing the work of
subordinates by their superiors. It is the act of
watching & directing work & workers.
- Motivation: means inspiring, stimulating or
encouraging the subordinates with zeal to
work. Monetary, non-monetary incentives
may be used for this purpose.
- Leadership: may be defined as a process by
which managers guide and influence the
work of subordinates in a desired direction.
- Communication: is the process of passing
information, experience, opinion, etc. from
one person to another. It is a bridge of
understanding.
Features of Management
Management is Goal-Oriented:
- The success of any management activity is
accessed by its achievement of the
predetermined goals or objectives.
- Management is a purposeful activity.
Management integrates Human, Physical
and Financial Resources:
- In an organization, human beings work with
non-human resources like machines,
materials, financial assets, buildings etc. to
achieve set goals.
Management is Continuous:
- Management is an on-going process.
- It involves continuous handling of problems
and issues.
- It is concerned with identifying the problem
and taking appropriate steps to solve it.
Management is all Pervasive:
- Management is required in all types of
organizations whether it is political, social,
cultural or business because it helps and
directs various efforts towards a definite
purpose.
- Thus, clubs, hospitals, political parties,
colleges, business firms etc. all require
management.
Management is a Group Activity:
- Management is very much less concerned
with an individual's efforts.
- It is more concerned with groups.
- It involves the use of group effort to achieve
predetermined goals of management.
Levels of Management
- The term “Levels of Management’ refers to a
line of demarcation between various
managerial positions in an organization.
- The levels of management can be classified
in three broad categories: -
a. Top level / Administrative level
Executive coaching, change management,
leadership, delegation and empowerment, etc
b. Middle level / Executory
Problem solving, team building, talent
development, performance management, etc
c. Low level / Supervisory / Operative / First-line
managers
Emotional intelligence and coaching for
performance, etc
Objectives of Management:
The main objectives of management are:
- Getting Maximum Results with Minimum
Efforts: The main objective of Management
is to secure maximum outputs with minimum
efforts & resources.
- Increasing the Efficiency of factors of
Production
- Maximum Prosperity for Employer &
Employees
- Human betterment & Social Justice
Importance of Management
● It helps in Achieving Group Goals:
- It directs group efforts towards
achievement of pre-determined goals.
● Optimum Utilization of Resources:
- It makes optimum use of all resources in
an organization to achieve set goals. This
leads to efficiency in management.
 ● Reduces Costs:
- Management uses physical, human and
financial resources in such a manner
which results in the best combination.
This helps in cost reduction.
● Establishes Sound Organization:
- No overlapping of efforts (smooth and
coordinated functions).
- It establishes an effective authority &
responsibility relationship i.e. who is
accountable to whom, who can give
instructions to whom, who are superiors &
who are subordinates.
- Management fills up various positions
with the right persons, having the right
skills, training and qualification. All jobs
should be cleared to everyone.
● Establishes Equilibrium:
- It enables the organization to survive in a
changing environment.
- With a change in the external
environment, the initial co-ordination of an
organization must be changed. So it
adapts organization to changing demand
of market / changing needs of societies.
- It is responsible for the growth and
survival of the organization.
● Essential for Prosperity of Society
- Efficient management leads to better
economical production which helps in turn
to increase the welfare of people.
- Good management makes a difficult task
easier by avoiding wastage of scarce
resources.
- It improves standard of living. It increases
profit which is beneficial to business and
society at large.
o This is made possible if it maximum
output at minimum cost.
- Employment opportunities are created
and employees receive incomes to
spend.
- Organization comes with new products
and always tries to meet the demands of
the society.
Marketing Management
What is Marketing?
Marketing is an organizational function and a set of
processes for creating, communicating, and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
Meaning of Marketing
The word market is derived from the Latin word
“Marcatus” meaning goods or trade or a place where
business is conducted. The term marketing is
defined as a ‘business activity planned at satisfying
to a reasonable extent, consumer or customer needs
and wants, generally through an exchange process’.
Marketing has been defined in various ways – the
definition that serves our purpose best is as follows;
- Marketing is a social & managerial process
by which individuals & groups obtain what
they need & want through creating, offering,
& exchanging products of value with others.
In a narrower business context, marketing involves
building profitable, value – laden exchange
relationships with customers.
Hence, we define marketing as the process by which
companies create value for customers & build strong
customer relationships in order to capture value from
customers in return.
What is Marketing Management?
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.
● Philip Kotler - “Marketing is Social &
Managerial process by which Individuals &
Groups obtain what they Need and Want
through Creating, Offering and Exchanging
products of the Value other”
● Peter Drucker - Marketing is a social 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. For a
managerial definition, marketing has often
been described as “the art of selling products”
 ● The American Marketing Association (AMA) - Product Orientation > Sales Orientation > Market
Marketing is the process of planning and Orientation
executing the conception, pricing, promotion, Many industries & organizations have progressed to
& distribution of ideas, goods, & services to the market-orientation stage
create exchanges that satisfy individual and At the end of world war II there was strong
organizational goals. pent-up demand for consumer goods created by
wartime shortage.
Evolution of Marketing In an attempt to stimulate sales, firms
The foundations of marketing in America reverted to the aggressive promotional & sales
were laid in Colonial times, when the settlers traded activities of the sales-orientation era
among themselves & with the Native Americans. Sellers discovered that the war years had
Some settlers became retailers, wholesalers, also changed consumers
& itinerant peddlers. In addition, the war efforts brought many
However, large-scale marketing in the U.S. women out of the home & into the workforce for the
did not begin to take shape until the Industrial first time
Revolution in the latter part of the 1800s. In addition the consumers had more choices
Since then, marketing has evolved through 3 The technology that was developed during the war
successive stages of development: as made it possible to produce much greater variety of
Product Orientation - Some industries & goods
organizations remain at the product-orientation At this stage companies identify what
stage. customers want & tailor all the activities of the firm to
Manufacturers in the product-orientation satisfy those needs as efficiently as possible
stage typically focus on the quality & quantity of
output while assuming that customers would seek What is Marketed?
out & buy reasonably priced, well-made products. - Goods
In an era when the demand for goods - Services
generally exceeded the supply, the primary focus in - Events and experiences
business was to efficiently produce large quantities - Persons
of product. - Places and properties
Finding customers was viewed as a relatively - Organizations
minor function. - Information
- Ideas
Product Orientation > Sales Orientation Key Customer Markets
Other industries & organizations have progressed - Consumer markets
only to the sales-orientation stage - Business markets
The world economic crisis of the late 1920’s - Global markets
(referred to as the Great Depression) changed the - Nonprofit/Government markets
perception
Finds that the economic problem no longer Core Concepts
was how to manufacture efficiently, but rather it was - Needs, wants, and demands
how to sell the resulting output - Target markets, positioning, segmentation
Just offering a quality product was no - Offerings and brands
assurance of success - Value and satisfaction
Managers realize to sell their products to - Marketing channels
consumers having limited resources & numerous - Supply chain
options required substantial post production effort - Competition
The Sales-orientation stage was - Marketing environment
characterized by a heavy reliance on promotional - Marketing planning
activity to sell the products the firm wanted to make.
Marketing Mix and the Customer Social Initiatives
Seven Ps - Corporate social marketing
- Product - Cause marketing
- Price - Corporate philanthropy
- Place - Corporate community involvement
- Promotion - Socially responsible business practices
- Process
- People The Ten Deadly Sins of Marketing
- Physical Environment 1. The company is not sufficiently market focused
Four Cs and customer driven.
- Customer solution 2. The company does not fully understand its
- Customer cost target customers.
- Convenience 3. The company needs to better define and
- Communication monitor its competitors.
4. The comp[any has not properly managed its
Marketing Management Tasks relationships with its stakeholders.
- Developing marketing strategies 5. The company is not good at finding new
- Capturing marketing insights opportunities.
- Connecting with customers 6. The company’s marketing plans and planning
- Building strong brands process are deficient.
- Shaping market offerings 7. The company’s product and service policies
- Delivering value need tightening.
- Communicating value 8. The company’s brand-building and
- Creating long-term growth communications skills are weak.
9. The company is not well organized to carry on
Internal Marketing effective and efficient marketing.
Internal marketing is the task of hiring, training, and 10. The company has not made maximum use of
motivating able employees who want to serve technology.
customers well.
Requires vertical alignment with senior management Strategic Marketing Plan
and horizontal alignment with other departments, so
everyone understands, appreciates and supports the
marketing effort.

Performance Marketing
(Understanding the financial and nonfinancial returns
to business and society from marketing activities and
programs)

Financial Accountability
- justify investments in terms of financial &
profitability
- broader variety of financial measures for
marketing efforts
Social Responsibility Marketing
- Because the effects extend well beyond the
company and the customers to society as a
whole, marketers must consider the ethical,
environmental, legal and social context of their
role and activities.