Marketing Management 1e

2012-13 onwards

Master of Commerce [M.Com]

[Semester-I]

T M
HE

ANAGEMENT

ONSORTIUM

arketing

anagement

1e
2012-13 onwards

The Management Consortium

Marketing Management
Master of Commerce (M.Com) [Semester-I] First edition: 2012-13 onwards MRP: - ` 200 /Students Discounted Price: - ` 150 / All Rights reserved with TMC Published by: TMC, Nagpur

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Preface

The purpose of this study Material is to present an introduction to the subject Marketing Management of M.Com Semester-I. The book contains the syllabus from basics of the subjects going into the intricacies of the subjects. All the concepts have b een explained with relevant examples and diagrams to make it interesting for the readers. An attempt is made here by the experts of TMC to assist the students by way of providing Study Material as per the curriculum with non-commercial considerations. However, it is implicit that these are exam-oriented Study Material and students are advised to attend regular lectures in the Institute and utilize reference books available in the library for In-depth knowledge. We owe to many websites and their free conte nts; we would like to specially acknowledge contents of website www.wikipedia .com and various authors whose writings formed the basis for this book. We acknowledge our thanks to them. At the end we would like to say th at there is always a room for improvement in whatever we do. We would appreciate any suggestions regarding this study material from the readers so that the contents can be made more interesting and meaningful. Readers can email their queries and doubts to our authors on tmcnagpur@gmail.com . We shall be glad to help you immediately.

Contact : Shri Mukesh Gujarati : 9422864426

C omp ila t ion by:

Team TMC, Nagpur

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Syllabus and TMC Contents

U.N.

Syllabus and TMC Contents Nature and scope of Marketing, Different philosophies of marketing, various demand states and marketing tasks, Corporate Orientations towards the marketplace, The Marketing environment and Environment scanning.

P.N. 05

Marketing information system and Marketing research, Understanding consumer and industrial markets, Market segmentation, Targeting and positioning.

32

Product decisions product mix, product life cycle, new product development, branding and packaging, decisions, Pricing methods and strategies.

65

Promotion decisions promotion mix, advertising, sales promotion, public relations personal selling, Channel management- selection, emergence of new channels, Vertical marketing Implementation and systems, Organizing and implementing marketing in the organization; Evaluation and control of marketing efforts; New issues in marketing- Globalization, Consumerism, Green marketing.
Further readings and References Model Question Paper

96

134

166

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Unit

Nature and Scope of Marketing

Nature of Marketing
Marketing is part of all of our lives and touches us in some way every day. To be successful each company that deals with customers on a daily basis must not only be customer-driven, but customer-obsessed. The best way to achieve this objective is to develop a sound marketing function within the organization. Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Marketing is a key factor in business success. The marketing function not only deals with the production and distribution of products and services, but it also is concerned with the ethical and social responsibility functions found in the domestic and global environment. Marketers must also be aware of customer value and customer satisfaction and make these concepts a central part of the firms strategic plan. Marketing must also be aware of and respond to change. Four of the greatest changes that have had an impact on the way companies bring value to their customers are the explosive growth of the computer, the Internet, telecommunications, and information technology. The term marketing has been described by different people in different ways. Some people believe that marketing is same thing as shopping. Whenever they go out for shopping of certain products or services, they describe it as marketing. There are some other people who confuse marketing with selling and feel that marketing activity starts after a product or service has been produced. Some people describe it to mean merchandising or designing a product. All these descriptions may be partly correct but marketing is a much broader concept, which is discussed as follows:

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Traditionally marketing has been described in terms of its functions or activities. In this respect, marketing has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers. We know that mostly manufacturing firms do not produce goods for their own consumption but for the consumption or use by others. Therefore, to move the goods and services from producers to consumers, number of activities such as product designing or merchandising, packaging, warehousing, transportation, branding, selling, advertising and pricing are required. All these activities are referred to as marketing activities. Thus, merchandising, selling and shopping are all part of a large number of activities undertaken by a firm, which are collectively called marketing. It may be noted here that marketing is not merely a post-production activity. It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold. For example, activities such as identification of customer needs, collection of information for developing the product, designing suitable product package and giving it a brand name are performed before commencement of the actual production. Similarly, many follow up activities are required for maintaining good customer relations for procuring repeat sale. In modern times, emphasis is placed on describing marketing as a social process. It is a process whereby people exchange goods and services for money or for something of value to them. Taking the social perspective, Phillip Kolter has defined marketing as, a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others. Thus, marketing is a social process where in people interact with others, in order to persuade them to act in a particular way, say to purchase a product or a service, rather than forcing them to do so. There are many different definitions of marketing. To facilitate proper discussion on the subject, we shall consider a few definitions of marketing. A cursory glance through them would reveal that there are varying perception sand view-points on the meaning are content of marketing.

Definitions of Marketing
1. Much of marketing is concerned with the problem of profitably disposing of what is produced. 2. Marketing is a phenomenon brought about by the pressures of mass production and increased spending power. 3. Marketing is the performance of business activities that direct the flow of goods and services from the producer to the consumer. 4. Marketing is the economic process by means of which good and services are exchanged between the maker and the user their values determined in them of money prices. 5. Marketing is designed to bring about desired exchanges with target audiences for the purpose of mutual gain. 6. Marketing activities are concerned with the demand-stimulating and demand fulfilling efforts of the enterprise. 7. Marketing is the function that adjusts the organizations offering to the changing needs of market place. 8. Marketing is a total system of interacting business activities designed to plan, promote and distribute need-satisfying products and services to existing and potential consumers. 9. Marketing starts with the identification of a specific need on the part of the consumer and ends with the satisfaction of that need. The consumer if found both at the beginning and the end of the marketing process. 10. Marketing originates with the recognition of a need on the part of a consumer and terminates with the satisfaction of that need by the delivery of a usable product at the right time, at the right place and at an acceptable price.

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11. Marketing is so basic that it cannot be considered a separate function. It is really the whole business seen from the point of view of the final result, i.e., from the point of view of the customer. 12. Marketing is a viewpoint which looks at the entire business process as a highly integrated effort to discover, create, arouse and satisfy consumer needs. 13. Marketing is the delivery of a standard of living.

Which definition is right? In short, they all are. They all try to symbolize the essence of marketing:
Marketing is about meeting the needs and wants of customers; Marketing is a business-wide function it is not something that operates alone from other business activities; Marketing is about understanding customers and finding ways to provide products or services which customers demand. Almost every marketing textbook has a different definition of the term marketing. The American Marketing Association (AMA) uses the following: 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 objectives. From this definition, we see that: Marketing involves an ongoing process. The environment is dynamic. This means that the market tends to change what customers want today is not necessarily what they want tomorrow. For example, sales of meat are declining in the United States because consumers have become health oriented. This process involves both planning and implementing (executing) the plan.

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Suggested Readings and Bibliography

Agnilar, F.. (1967) Scanning the Business Environment, Macmillan, New York, p.47. Baig, M.M.A., Guidelines for Urban and Rural Marketing in India, Indian Journal of Marketing, 1980, 10(5) Business World, The Rural Rush, Feb. 13-26, 1991 Coddington, W. 1993. Environmental Marketing: Positive Strategies for Reaching the Green Consumer. New York: McGraw-Hill, Inc. Curry, Jay.The Customer Marketing Method. The Customer Marketing Institute BV, 2000. Dhar,N.K.: Rural Marketing in India: A Weakness and a Challenge, Productivity Dr.K.Karunkaran, Marketing Management, Himalaya Publication Fuller, D.A. 1999. Sustainable Marketing: Managerial-Ecological Issues. California. Sage Publications. Gamble, Stone and Woodcock..Up Close and Personal?Kogan Page Limited, 1999. Gopalaswamy,T.P.: Rural Marketing, Wheeler Publishing, New Delhi,1998 Gordon, Ian.Relationship Marketing.John Wiley and Sons, Canada, 1998. Green, P.E., Tull, D.S. and Albaum, G (1993), Research For Marketing Decisions, 5th edition, PrenticeHall Haley, Russel I. (1984), "Benefit Segmentation: Backwards and Forwards," Journal of Advertising Research, 24 (February/March), 19-25. Keith Blois, Textbook of Marketing, Oxford University Press Kerlinger, FN.(1994) Foundations of Behavioural Research, 1st edition, Holt, Rinehart and Winston, p. 174. Khanna S.S., Need for Rural Marketing, Kurukshetra, November, 1999 Kotler, P., (1988) Marketing Management: Analysis Planning and Control, Prentice-Hall p. 102. Krishnamacharyulu, C.S.G; Lalitha Ramakrishnan: Rural Marketing, Pearson Education Asia, 2002 Lowenstein, Michael W.Customer Retention.ASQC, 1995. Mark Abraham (mark@sticky-marketing.net) 30th November 2001 P. Kotler, Swee Hoon Ang - Marketing Management Philip Kotler & Gary Armstrong Principles of Marketing, 8th Edition (1998) Philips Kotler - Marketing Management 11th Ed. - (Prentice Hall of India) Pingali Venugopal, Marketing Management, Sage Publication Rajan Saxena, Marketing Management, Tata McGraw Hill V.S. Ramaswamy & S Namakumari, Marketing Management, Macmillan

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Model Question Paper for Winter 2012

First Semester of

Q3. (a) Describe different stages involved in new product development process. Why a large number of products in India are failing in spite of following of stages in new product development process? or (b) Describe the pricing strategies and

Master of Commerce (M.Com)

Examination

Marketing Management

Time: Three Hours]

NB:-

[Max. Marks: 80

types of pricing adopted by the present manufactures.

1) All the Five Questions are compulsory. 2) All questions carry equal marks.

Q4. (a) What are the objectives of promotion? What are the basic types of

Q1.

(a)

All

organizations

need

promotion strategies and plans?

Marketing. Give reasons in support of the statement. Explain the functional

or (b) Considering present scenario, write about various types of channels and importance of retailing and wholesaling.

area of Marketing. or (b) Explain the concepts of various demand states and marketing tasks.

Q5. a) Explain how new issues like Globalisation, Green Marketing and

Q2. (a) Elaborate with examples different variables, which can be used to segment market. Which of these variables will be relevant to segment market for branded P.C. or (b) Elaborate the procedure of

Consumerism, are affecting marketing plan of an organization in India. or b) Conventional Marketing Channel will stay in spite of growing popularity of Vertical Marketing System. Explain.

conducting a Marketing research.

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