Beruflich Dokumente
Kultur Dokumente
Aims
Marketing Management
After going through this session,
you will be able to:
Understand Marketing Management
Concepts & Importance of Marketing
Management
Understand Nature & Importance of
Service Marketing
Understand Characteristics of Service
Marketing
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Meaning
Definition
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.
Understand the
marketplace &
customer needs
and wants
Design a
Customer-driven
Marketing
Strategy
Capture value
From Customers to
Create profits &
Customer quality
Construct a
Marketing Program
That delivers
Superior value
Build profitable
Relationships &
Create Customer
delight
Product Orientation
Sales Orientation
Other industries & organizations have progressed only to the sales-orientation stage
Product Orientation
Sales Orientation
Market Orientation
Early 1930s
Mid 1950s
1990s
At the end of world war II there was strong pent-up demand for
consumer goods created by wartime shortage
In an attempt to stimulate sales, firms reverted to the
aggressive promotional & sales activities of the salesorientation era
Sellers discovered that the war years had also changed
consumers
In addition, the war efforts brought many women out of the
home & into the work force for the first time
In addition the consumers had more choices
The technology that was developed during the war made it
possible to produce much greater variety of goods
At this stage companies identify what customers want & tailor
all the activities of the firm to satisfy those needs as efficiently
as possible
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Importance of Marketing
Importance of Marketing can be understood in 4 different perspective
Global
Employment
&
Costs
Domestic
Creating
Utility
Organization
Personal
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Importance of Marketing
Global Perspective
Until the late 1970s, American firms had a large
and secure domestic market
1980s more foreign firms developed attractive
products, honed their marketing expertise, & then
successfully entered the U S market.
Imported products, such as office equipment, autos,
apparel, watches, semiconductors & consumer
electronics have been successful
At present US has been importing more than it
exports, creating large annual trade deficits
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Importance of Marketing
In Global Perspective Contd..
There will be a new challenges
The changes taking places in the
governments & economics of eastern Europe
& growing capitalism in China & former Soviet
Union will certainly create new & stronger
International Competitors
Trade agreements are also altering the global
business picture
The European Union, the North American Free Trade
Agreement,
The Asia-Pacific Economic Cooperation forum are
reducing economic barriers & liberalizing trade
between their members
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Importance of Marketing
In Global Perspective Contd..
Trade agreements increase the
marketing opportunities for firms, they
can often result in stiffened competition
for firms from outside
Considering these developments the US
firms look abroad, they are concluding
that their profit & Growth objectives are
most likely to be achieved through the
combination of domestic & international
marketing, rather than solely from
domestic marketing
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Importance of Marketing
In Domestic Perspective
Domestic Perspective
Aggressive, effective marketing practices have
been largely responsible for the high standard of
living in US
The efficiency of mass marketing-extensive & rapid
communication with customers through a wide
variety of media & distribution system that makes
product readily available to the consumers
Since 1920 (except during World War II), the
available supply of products in Us has far surpassed
total demand
Making most products has been relatively easy; the
real challenge has been marketing them
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Importance of Marketing
In Domestic Perspective
Employment and Costs
The Significance of marketing in US Economy can give
an idea of how many of us are employed between 1/4th
& 1/3rd of US civilian labor force are engaged in
marketing activity, which includes employees in
retailing, wholesaling, transportation, warehousing &
communications industries & also people who work in
marketing departments of a manufacturers & those who
work in marketing in agricultural, mining & service
industries
Furthermore, jobs in marketing have increased at a
much more rapid rate than jobs in production, reflecting
marketings expanded role in economy
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Importance of Marketing
In Domestic Perspective
Creating Utility
A customer purchase a product because it provides
satisfaction
The want-satisfying power of a product is called as
Utility, & it comes in many forms. It is through
marketing that much of a products utility is created
Form utility changes makes the product valuable
Place utility when product is readily available
Time utility product available when you want
Information utility information of a product
existence
Possession utility created when a customer buys
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Importance of Marketing
In Organizational Perspective
Organizational Perspective
Marketing considerations should be an integral part
of all short-range & long-range planning in any
company
The success of any business comes from satisfying
the wants of its customers, which is the social &
economic basis for the existence of all
organizations
Although many activities are essential to a
companys growth, marketing is the only one that
produces revenue directly
The traditional approach of designing the product by
designers, pricing by finance managers have
changed in present marketing environment
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Importance of Marketing
In Personal Perspective
Personal / Individual Perspective
The reasons for understanding marketing globally in our
economy & in an individual organization are as under;
How many marketers view us a part of their market
firms such as Nike, Microsoft, VISA & etc have designed
products, set prices, created advertisements & chose
the best way to make their products available to us
Studying marketing will makes us better-informed
consumers, which helps to understand why some firms
are successful and others fail
Lastly, marketing may probably relates directly or
indirectly to our career aspirations
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Marketing Concepts
Components & outcomes of the marketing concept
MARKETING CONCEPT
Customer Orientation
Coordinated
Marketing
activity
Customer
Satisfaction
Organizations
Performance objectives
Organizational
Success
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Marketing Concepts
This definition of marketing rests as
the following core concepts; needs;
wants; & demands; products (goods,
services & ideas); values, cost &
satisfaction; exchange &
transactions; relationships &
networks; markets; & marketers &
prospects. These concepts are
illustrated in figure:
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Products
(goods,
Services, Ideas)
Marketers &
prospects
Value, cost,
&
satisfaction
Markets
Exchange &
transactions
Relationships
& networks
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Products
(Goods, Services, & Ideas)
A product is any thing that can be
offered to satisfy a need or want
product can be also called as offering
or solution
A product or offering can consist of
as many as 3 components:
Physical good(s),
Service(s), &
Idea(s)
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Caterpillar
(Marketer)
Construction Co.
(Prospect)
Caterpillar Want List
Good price for Equipment
On-time payment
Good word of mouth
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Markets
A concept of exchange leads to the concept of a market
A market consists of all the potential customers sharing
a particular need or want who might be willing and able
to engage in exchange to satisfy that need or want
Traditionally, a Market was the place where buyers &
sellers gathered to exchange their goods, such as a
village square.
Marketers, however, see the sellers as constituting the
industry and the buyers as constituting the market
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Figure show the relationship between the industry & the market
Industry
(a collection
Of Sellers)
Goods / services
Money
Market
(a collection
of buyers)
Information
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Features of Concepts
Differing orientations to Business Gives
Rise to Different Concepts of Marketing
The
The
The
The
The
Exchange Concept
Production Concept
Product Concept
Sales Concept Diff b/w Marketing & Sales
Marketing Concept A Shift in orientation
From
From
From
From
From
production to marketing
product to customer
supply to demand
sales to satisfaction
internal to external
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Definition of Marketing
Concept
We are ready to give a definition to the
marketing concept
The marketing concept is essentially a point
of view about business. It enunciates that
business is basically a need-satisfying
process & that business must be managed
keeping the consumer & his need as the
focus.
The concept prescribes that all goals of
business, including profit, must be realized
through consumer orientation & generation
of customer satisfaction
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Services
Most above attempted definition are
incomprehensible. The concept of service has
to be understood either as an exclusive
offering from a company that is primarily
intangible, or as a part of the service-product
mix that a company offers
Services Marketing Includes
Since Services are highly intangible, its
benefits are felt over a period of time & not
immediately
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Nature of Services
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Exchange
Marketing
Product-orientation
Sales-orientation
Marketing-orientation
Marketing concepts
Customer Relationship
Management
Mass communication
Bibliography
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