Marketing Management

OVERVIEW OF MARKETING

What is Marketing?
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create and maintain exchanges that satisfy individual, organizational, and societal goals in the systemic context of a global environment.

 Marketing is the social process by which individuals

and groups obtain what they need and want through creating and exchanging products and value with others. Kotler.

Management process that identifies, anticipates and satisfies customer requirements profitably. The Chartered Institute of Marketing (CIM

 Marketing is the process whereby society, to supply

its consumption needs, evolves distributive systems composed of participants, who, interacting under constraints - technical (economic) and ethical (social) - create the transactions or flows which resolve market separations and result in exchange and consumption. Bartles

 Marketing can be expressed. Find Wants and Fill then. Make what you can sell Instead of trying to sell what

you can make. Love the customer and not the product.

EVOLUTION OF MARKETING
Barter System. Production orientation: mass production of goods for

the purpose of profit. (care less for customer) Sales orientation: changes in the sphere of economic life. Marketing orientation: Customers importance was realized, competition became more stiff.(Advt, personal selling, large scale sales promotion to boost sales).

EVOLUTION OF MARKETING
Consumer orientation: Products are brought forward

to the market which are capable of satisfying the tastes, preferences & expectations of consumer satisfaction. Management Orientation: marketing function assumes a managerial role to co-ordinate all interacting business activities with the objective of planning, promoting and distributing wantsatisfying products and services to the present and potential customers.

MARKET CLASSIFICATION
ON THE BASIS OF: AREA: Family, Local, National, World. GOODS: Commodity, produce, manufactured,

Bullion, Capital, Money, Foreign stock. ECONOMICS: Perfect, Imperfect TRANSACTION: Spot, Future. REGULATION: Regulated, Unregulated. TIME: very short, short, long. VOLUME: Wholesale, Retail. IMPORTANCE: Primary, Secondary, Terminal.

WHAT IS MARKETING
GOODS: Refrigerator, TV sets, food products,

machinery. SERVICES: Airlines, hotels, car rental firms, barbers, beauticians, professions like Accountants, bankers, lawyers, engineers. EXPERIENCES: Travels, climbing Mt Everest. EVENTS: Tradeshows, artistic performance, Asian games, sports events. PERSONS: Celebrity, artists, musicians, physicians.

 PLACES: Cities, Regions, real estate agents,

commercial banks, local business association. PROPERTIES: Real Property (Real estate), Financial property(Stocks, bonds) bought & sold region market. ORGANISATIONS: build strong, favorable, unique image in the minds of their target publics. INFORMATION: schools, universities-magazines, encyclopedias, newspapers. IDEAS: In factory we make cosmetics, in the store we sell hope.

History of Marketing Thought

First Bartering 1800s Early 1900s Marketing is not economics College courses in distribution

1960s
Marketing research 1970s

1930s First marketing theories

1980s & 1990s Becomes major business function Focus on customer & external environment

Structure of Marketing Theory

Industry sector

Goods v. services

Small v. large firms

Product categories

Dimensions of marketing activities

Domestic v. international

Consumer v. industrial

Profit v. nonprofit

Intermediaries v. end users

Marketing and Internal Resources

To get ready for a marketing orientation: Understand what resources the organization has. Develop a suitable filter for marketing data. Find out about the customer. Review the processes to date. Manipulate resources to achieve marketing objectives.

Complexity of Marketing
Multiple decision makers Multiple factors

Five main dimensions

Interaction Time frame

Global factors

The Marketing Mix

Marketing mix

Product
mix

Distribution
mix

Communications mix

Pricing
mix

The Marketing Mix

Product line range Design concept Color appeal Style Package Brand name Service function Warranties

Product mix

The Marketing Mix

Physical distribution Supplies Inventory Storage Transportation Warehousing Distribution channels Retailers Distributors

Distribution mix

Wholesalers
Export/import

The Marketing Mix

Advertising Sales catalog Field sales force Telephone sales Public relations Direct mail Sales promotion Premiums & discounts Merchandising

Communications mix

Research
Electronic interaction

The Marketing Mix

Price structure Payment terms Costs

Pricing mix

Selling versus Marketing

Selling
Starting point Factory Focus Product Means Selling & promoting Ends Profits through sales volume

Marketing
Target market Customer needs Integrated marketing Profits through customer satisfaction

Marketing & Corporate Strategy

Market orientation: The organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it.

Marketing Oriented Companies

1. 2. 3. 4. 5. 6. 7.

Market Share vs. Volume as Measure of Success Use of Market Segmentation Principles Market Research Specific Marketing Goals and Targets Coordination of Nonmarketing Functions to Achieve Marketing Goals Style and Culture Integrates Participants Internal and External to Firm Market-based Business Concept that Provides Unique Customer Value

At GE Power Systemsafter decades of load growth and prosperitythe attitude toward customers became: We make turbines. This is what we charge for them. Would you care for one? It took a humbling order drought of several years to overcome that arrogance and make that business a customer-friendly one.

Jack Welch Speaks, pp. -41.

Difference Between Products & Benefits

PRODUCTS: Physical attributes Example: 2mm drill BENEFITS: What customer wants Example: 2mm hole

Customers dont buy products, they seek to acquire benefits.

Marketing and Service Cultures

Lack of tangibility

Lack of direct competition

Why services are more difficult

Lack of mass marketing

Professional status