MARKETING MANAGEMENT

1.MEANING 2.DEFINITION 3.EVOLUTION OF MARKETING 4.ROLE OF MARKETING IN BUSINESS AND SOCIETY 5.OBJECTIVES

MARKETING MANAGEMENT Meaning: Marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. Marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Marketing is regarded as production/sales oriented.

Definition The American Marketing Association (AMA) defines marketing as 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. Marketing deals with products .A product can be a good ,service or idea. A good ;A good is a physical entity i.e. it is a tangible product that can be touched and feel .e.g. a shirt or a bar of chocolate. A service :A service has no physical form or it is an intangible Product .A service is created when human efforts are clubbed with mechanical efforts to provide intangible benefits ,it gives some value to

the consumer.. e.g. laundry ,healthcare, transportation, banking etc. An idea :Ideas provide intellectual or spiritual benefits to Consumers .e.g. politician selling idea like protection of human rights to political activity

Evolution of Marketing
1.The Stage of Barter ;Before the evolution of industrial Revolution ,the agriculturist ,whether he produced corn or cotton, meat or butter, disposed off the surplus in his immediate neighbourhood. These products were required in the neighbourhood by those people who were not engaged in the same activity .The agriculturist barterd the corn, cotton, meat and butter produced by him for leather, hand tools, utensils and furniture produced by the craftsman. There was no elaborate distribution system. This represented the stage of barter in the evolution of marketing. 2.The Stage of Money Economy; No fundamental or far reaching change took place in this stage of production and distribution of goods. The change was replacement of barter system by the money system, pricing became the mechanism of the exchange process. 3.The Stage of Industrial Revolution; Far reaching changes took place in this stage. It introduced beginning of new business system. It

introduced new products, new systems of manufacture, new modes of transportation and methods of communication and brought about changes in the physical and economic environment. Mass production lead to variety of low priced goods. It lead to income revolution, giving a great deal of disposable income to large mass of people. 4.The Stage of Competition ;The mass production and mass distribution brought by Industrial revolution soon led to stage of competition. The situation demanded the firms to make conscious efforts to make sure their products were preffered overs those by their competitors. 5.The Emergence of Marketing;After the Second World War,the size and characteristics of markets in many countries of the world changed enormously. There was substantial increase in the population; the disposable increase per family increased, new industrial concerns sprang up, a great variety of new products and services strengthened the rapidly developing consumer market; so selling of products and services became very difficult and competitive Abundant choices were made available to the consumer and consumer occupied a place of great importance .The industrial firms realized that it was not enough to make one time sale and they ensure that consumers come and buy their products again and again .They also ensure that product was made available at a place convenient to the consumer .They also ensure best price of the product and also if any complaint then after sale service to be provided to the consumer .This lead to emergence of marketing.

Modern Concept of Marketing Modern concept of marketing According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organising business to satisfy these needs. Marketing in the modern sense involves decisions regarding the following matters; 1. Products to be produced 2. Prices to be charged from customers 3. Promotional techniques to be adopted to contact and influence existing and potential customers. 4. Selection of middlemen to be used to distribute goods & services. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.

Role of marketing Role of marketing in business Marketing involves ascertaining the needs and requirements of customers. This enables the firms to produce goods and services

accordingly. Demand for goods and services is created through the techniques of advertising and personal selling. The role of marketing in business success has become vital because of the following reasons. 1. Technological changes are taking place at fast pace. 2. Competition has become intense in the market. 3. Consumer tastes and preferences are changing very fast. 4. Production is organised on a large scale. Role of marketing in society Marketing has also an important role in society.; 1.It makes new and better products available to people. 2.Increasing their standard of living. 3. It helps in creation of new jobs. 4.It bridges the gap between production and sale of goods, making economic activity possible. It integrates agricultural and industrial sectors. Overall it leads to economic development of the country. Objectives of marketing Marketing activities are organised to achieve the following objectives: 1. Consumer satisfaction : Marketing activities are organised with the objective of ensuring that consumers get maximum satisfaction from the use

of the product. Consumer satisfaction ensures steady and growing demand for firms products. 2. Product development : This objective aims at developing new and better products, which may provide greater satisfaction to consumers. Product development is necessary for the survival and growth of the firm. 3. Sustaining Customer loyalty : If customers continue to make repeated purchases of goods and services, it is possible to sustain the demand for the products of the firm. 4.Earning profits : Business must earn sufficient profit. Marketing activities are organised with the objective of earning adequate profits for the firm. 5. To secure competitive advantage : This objective of marketing ensures that a firms products are preferred over competitors product. Competitive advantage is achieved through cost efficiency and quality improvements of the products. 6. Growth in Sales : Marketing aims at increasing the sale of firms products. This is necessary to maintain or increase the market share of the firm. Market share means percentage demand satisfied by the firm for a particular product. Growth in sales ensures survival of the firm in the long run. 7. Creation of goodwill : This objective of marketing ensures that a business firm is regarded as a useful part of society engaged in satisfying consumer needs. This help business firms to survive and grow.

Marketing Mix
Introduction: The basic task of marketing is the delivery of product(s) to consumers so that their needs are fulfilled and organizational objectives are also achieved. This involves several important decisions, e.g. deciding about the product or products which should be offered for sale, price

of the product, markets where products may sell and the means of communication with the consumer for the sale of the product. All these decisions form part of marketing-mix. The elements of marketing mix have been classified under four heads : 1.product, 2.price, 3.place and 4. promotion.

That is why marketing mix is said to be a combination of 4 Ps. 1.Product Product refers to a physical product or a service or an idea which a consumer needs and for which he is ready to pay. Products is the key element of any marketing mix. The decisions concerning product may relate to

a) Product attributes; Product attributes refer to the quality, features and design of the product.A product should serve the purpose for which it is made, in terms of utility and quality. In a competitive market, products are differentiated on the basis of certain features or design. b) Branding; Brand is an identification of product. In a competitive market, many products are sold by brand names. It plays an important role in creation of demand while branding a product, it should be ensured that the name is simple, easy to read and pronounce and if possible, it should have an appeal. c) Packaging and labelling; Packaging means putting the products in suitable containers or packets such as tin, plastic jar or card board box, etc. Packaging should be such that product is protected and easily handled. Labelling serves the purpose of indicating the contents, weight or measure, instructions for use, price, name of the producer, date of manufacture and expiry, etc. The information on the label is essential for various reasons. d) Product support service; Service may be by way of installation service, training in product use, after sale service, credit and financing service, etc. It should be decided whether services would be provided free or against separate charge. e) Product mix; A company may decide to a single or a variety of products add new products, or withdraws certain products. Relevant decisions are

made keeping in view the scope of marketing. Such decisions are called product line or product mix decisions. 2.Price; Price is the amount charged for a product or service. It is the consideration paid by consumers for the benefit of using any product or service. Price fixation is an important aspect of marketing. Pricing decisions of a company are affected by both internal as well as external factors. There may be two methods of price-fixation: 1. Cost-based approach; This is the simplest method of pricing. Generally companies add a certain percentage of Profit, to the total cost of the product. The total cost of the product is calculated after taking all types of costs into consideration. 2. Competition-based approach; The prices are determined on the basis of conditions in the market. Companies may follow any one of the following three approaches. a) Price-in-line b) Market-plus c) Market-minus a.Price-in-line; means prices fixed nearly equal to the prices of close alternatives. Prices are decided by the market forces of demand and supply. b. Market-plus; When companies charge (fix up) a price which is more than the priceof existing substitutes, it is called market plus pricing. This approach is adopted when the quality of a product is better, or it has a popular brand name, or its packaging is attractive and useful. Consumers will

pay more only when they find distinctive differences in the product and its substitutes. c) Market-minus; Sometimes business enterprises get ready to supply products at a price lower than the market price. It may be adopted to grab a larger market share or to make a newly introduced product more popular. This approach is called market-minus approach. Promotion Promotion refers to using methods of communication with two objectives : (i) informing the existing and potential consumers about a product (2) to persuade consumers to buy the product. It is an important element of marketing mix. Various tools of communication form part of promotion mix. The tools should be combined. These decisions are known as promotion mix decisions. Tools of Promotion-mix 1.Advertising 2.personal selling 3.sales promotion and 4. publicity

Advertising

Advertising is an impersonal form of communication for which the seller pays in order to promote a physical product or service. It may be Print form; 1. newspapers 2.magazines, or Audio form; 1. radio and other similiar methods Audio-visual forms; 1. Television, 2.cinema screen, etc. Personal selling: Personal selling is a personal communication with one or more prospective buyers for the purpose of selling a product or service. These days, personal selling is considered to be the most effective tool. - it involves personal interaction, hence feed back is received immediately; - it is quite flexible, salesman can adjust communication according to the level of customers under-standing. - it is more persuasive; buyers can be convinced about the utility of the product; - impressive salesman leaves an impression on the prospective buyer; it may increase sales in the future. Sales Promotion Sales promotion means the use of short-term incentives which are designed to encourage immediate purchase of a product or service by the buyer. Most of the sales promotion activities come in the form of some incentive for the buyer; hence sales generally increase immediately.

sales promotion tools while introducing a new product. It includes ; 1.offer of discounts 2.free gifts 3.free sample 4.coupons 5.demonstration 6.store display, etc. E.g.-One tooth brush free with one 100gm of Closeup dental cream .

Publicity Publicity takes place when a favourable presentation is made through mass media about a product or service. People believe more on such news than in advertising. It covers people who do not entertain personal selling and sales promotion approaches. It is a non-paid form of communication. Very few products or services are covered by publicity. Packaging It is also considered as a powerful sales promotion tool these days. It immediately attracts the buyer and makes him buy the product. This tool has produced good results in case of consumer goods. Place Once the goods are manufactured, packaged, priced and promoted, they must be made available to the

consumers. Place is another important element of marketing mix as it covers Activities related to placing the products. It ensures various facilitating services need to be arranged like; 1. transportation 2.warehousing, 3.inventory control 4.order processing. Two elements of placeare; (A) Channels of distribution (B) Physical distribution (A) Channels of Distribution : There can be various levels of channel. It is for the producer to decide which level would suit the sale of his product. Number of Channel Levels Distribution channel starts from the producer and ends with the consumer. Channels of Communication Channel 1 Manufacturer Consumer Channel 2 Manufacturer Retailer Consumer Channel 3 Manufacturer Wholesaler Retailer Consumer Channel 4 Manufacturer Wholesalers Jobers Retailer Consumer Channel 1 is called a direct marketing channel. It has no intermediary level. Producers sell products directly to the consumers.

Channel 2 includes one intermediary which is generally a retailer. Retailers buy products directly from the manufacturer and sell these to the consumers. Generally electronic goods like televisions, computers, are sold through this channel level. Channel 3 consists of two levels, typically a wholesaler and a retailer. This channel is often used by small manufacturers of food items, and other products. Channel 4 contains three middlemen levels. Jobbers usually come between wholesalers and retailers. They buy from wholesaler and sell to small retailers who generally are not served by wholesalers.

(B) Physical Distribution : Physical distribution comprises all those activities which deliver customer satisfaction by supplying right type of products at right place and at right time regularly. Components of physical distribution :(i) Order Processing: Physical distribution begins with customers order. Both the company and

customer are benefitted if order processing is carried out quickly and accurately. These days computers are used which establish a link between retailers and producers. (ii) Warehousing; Every company must store goods to maintain a proper flow.Storage facilities are important because production and consumption cycles generally do not match. (iii) Inventory; Inventory level also affects customer satisfaction. Marketers would like that company having enough stock to full fill all customers order immediately. (iv) Transportation; Transportation has infact, facilitated the physical distribution of goods and services over a larger area. Modes of transportation may include road, rail, water, air, etc. The choice of mode of transport affects the pricing and condition of goods.

Marketing research
Marketing research provides information about consumers and markets, and their reactions to various products, prices, distribution, and promotion

strategies. Marketing research involves collection and analysis of relevant facts to solve marketing problems. It is a logical method of solving marketing problems. Marketing research may consist of any or all of the following : (1) Research on markets: This is a study of customers and their characteristics. (2) Research on Products: This is a study of products, which involves development and introduction of new products, improvement of existing products and withdrawal of old products from the market. (3) Research on marketing methods and policies: This branch of marketing research studies issues relating to advertising, personal selling, pricing and channels of distribution. The marketing research process has following steps: 1.Formulating the problem; The purpose of conducting marketing research is to find a suitable solution for a specific and immediate problem faced by a business manager. 2.Developing objectives of the research; The objectives of the research should be clear and specific. The objectives should cover all the questions regarding the purpose of the study, how the study to be conducted.

3.Designing an effective research plan; It is using the tools and techniques to conduct marketing research. The research instruments generally used to collect primary data are; 1.Questionnaires 2.Mechanical instruments. 4.Data collecting techniques 1.Questionnaires;Questionnaires are formal set of questions to collect the required information. This is one of the most effective techniques used in the surveys. The contents, phrasing and the sequence of the questionnaire should be clear and nonconfusing. 2.Mail interviews; The cost is relatively low.The questionnaire is sent on the mail and the cus tomer can respond at his convenience. The identity can be kept secret and the customer can express their ideas openly. 3.Telephonic interviews; They are conducted when the information required is not great and need to be collected quickly. 4.personal interviews; They are conducted when interviewer and interviewee are physically present at one place. They can be one to one or one to many. The interviewer can ask questions and records the responses from the respondents.

5.Mechanical instruments; Instruments like galvanometers measure the responses on various parameters such as emotions,interest etc. Secondary Data; Secondary data is collected from companys external and internal resources. Companys internal resources include; 1.annual reports 2.Sales reports Companys external resources could be; 1.Independant magazines 2.journals 3.legal documents 5.Evaluating the data and preparing a research report; Once the information is collected, it is edited and coded. The coded data is then tabulated and evaluated and detailed research report is made. This report is submitted to the management to make effective decisions to attract potential business opportunities.