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Maketing

CH-1

Management is the processes of planning, organizing directing motivating and coordinating and
controlling of various activities of a firm. Marketing is the process of satisfying the needs and wants
of the consumers. Management of marketing activities is Marketing Management.
Management Guru Philip Kotler defines marketing as “Marketing Management is the analysis,
planning, implementation anc control of programmes designed to bring about the desired exchanges
with target audiences for the purpose of personal and mutual gain. It relies heavily on adoption and
coordination of the product, price, promotion and place for achieving response”:
Philip Kotler “Satisfying needs and wants through an exchange process”
In other words, a business discipline, which is focused on the practical application of marketing
techniques and the management of a firm’s marketing resources and activities, is Marketing
Management.
Marketing Management focuses upon the psychological and physical factors of Marketing. The
Marketing managers are responsible for influencing the level, timing, and composition of customer
demand accepted definition of the term. While the psychological factors focus upon discovering the
needs and wants of the consumer and the changing patterns of buying behavior, habit etc. the physical
factors focus upon fulfilling those needs and demands buy better product design, channel of
distribution and other functions.
In summary, Marketing in action is marketing Management.
Marketing Management has the responsibility of to perform many functions in the field of marketing
such as planning, organizing, directing, motivating, coordinating and controlling. All these function
aim to achiven the marketing goals.
Following is a brief summary of functions of Marketing

1. Marketing Objectives: marketing management determines the marketing objectives. The marketing
objectives may be short term or long term and need a clear approach. They have to be in coherence with
the aims and objectives of the organization.
2. Planning: After objectively determining the marketing Objectives, the important function of the
marketing Management is to plan how to achieve those objectives. This includes sales forecast,
marketing programmes formulation, marketing strategies.
3. Organization: A plan once formulated needs implementation. Organizing functions of marketing
management involves the collection and coordination of required means to implement a plan and to
achieved pre determined objectives. The organization involves structure of marketing organization,
duties, responsibilities and powers of various members of the marketing organization.
4. Coordination: Coordination refers to harmonious adjustment of the activities of the marketing
organization. It involves coordination among various activities such as sales forecasting, product
planning, product development, transportation, warehousing etc.
5. Direction: Direction in marketing management refers to development of new markets, leadership of
employees, motivation, inspiration, guiding and supervision of the employees.
6. Control: Control refers to the effectiveness with which a marketing plan is implemented. It involves the
determination of standards, evaluation of actual performance, adoption of corrective measures,
7. Staffing: Employment of right and able employees is very crucial to success of a market plan. The
market manager coordinates with the Human Resource Manager of an organization to be able to hire the
staff with desired capability.
8. Analysis and Evaluation: The marketing management involves the analysis and evaluation of the
productivity and performs mace of individual employees.

Functions and Importance of Marketing Management


In order to create an effective marketing management strategy, business enterprises must have a strong
understanding of their own business and the market in which they operate. Following are the key
functions of the marketing management:
Planning
The grass root level of any business organization is planning. Planning requires that marketing managers
must be aware of environmental conditions facing their organization and forecast future conditions.
Hence, after analyzing competitive opportunities, threats, strengths and weaknesses of the organization,
the marketing manager creates an action plan to determine when, how, where and by whom the marketing
activities viz. sales forecast, marketing programs formulation, marketing strategies, etc. should be carried
out to achieve marketing goals.
Organizing
An organizing function of management develop an organizational structure and allocate human resources
to execute the different marketing activities viz. purchase, sell, assemble, storage, transportation,
packaging, pricing, advertising, sales promotion, etc, of an organization. The organization involves
structure of marketing organization, duties, responsibilities and powers of various members of the
marketing organization.
Staffing for marketing activities
To achieve success in the market plan of an organization, the appointment of right and able employees are
made to do different marketing activities. In large-scale organizations, personnel department is established
for making appointments. Hence, an organization must have marketing personnel with desired
capabilities.
Directing of marketing activities
Under this function, the marketing manager gives proper guidance to persons working on different posts
so that they discharge their duties efficiently. He motivates, inspires, guide and supervises his sub-
ordinates and provides them good leadership so that they can work effectively and smoothly for the
organization.
Controlling of marketing activities
Controlling ensures that performance does not deviate from standards. Under this function, the marketing
manager establishes performance standards, compare actual performance against standards and takes
corrective action when necessary. The performance standards are often stated in terms of units produced,
number of defective products, levels of customer service, revenue, costs, profits, etc.
Importance/Significance of Marketing Management
In the technological arena, marketing management plays a crucial role in a commercial and business
enterprise. It is a business discipline that focuses on practical application of marketing orientation,
techniques and methods inside enterprises and organizations and manages firm’s marketing resources and
activities. The points below bring out the significance or importance of management:-
 Satisfies the needs of customers (or consumers).
 Increases market share of the firm.
 Increases production of existing products.
 Raises per capita income and demand for more goods by the consumers
 Provides employment and hence fulfill social obligation.
 Launch new products in the market.
 Reduces cost of sales and distribution.
 1. Marketing helps to achieve, maintain and raise the standards of living - Marketing is means through
which production and purchasing power are converted into consumption. - Better marketing Mass
production - Mass production Low cost - Low cost More buying power Higher standard of living
2. Marketing Increases employment opportunities - Marketing involves various functions / subfunctions
(Buying, Selling, Transport, Warehousing, Financing, Risk management etc) - These functions create need for
different specializations - About 30-40% population depends directly or indirectly on marketing
3. Marketing increases national income - More purchasing power increase in national income
4. Helps maintain economic stability & development - By maintaining demand supply balance
5. Link between producer & consumer
6. Removes imbalance of supply & demand by transferring surpluses
7. Helps create utilities of time, place & possession
Marketing Concepts

1. Exchange Concept - Exchange is only a small part of the total marketing process. - Other parts of
marketing like customer orientation, satisfaction, value creation, creative selling etc are not covered
2. Production Concept - Production in large volume, at low cost will be acceptable to customers -
Concentrates on production efficiency - May do well in distribution - Rarely appreciated by customers
3. Product Concept - Focuses on design and quality of products - Believes that customers will
automatically buy products of high quality - R&D is essential element - Do not bother to study the
market & consumer in depth
4. Sales Concept - Believes that customers need to be persuaded to buy the products - Involves
advertising, large scale promotions, publicity, discounts, public relations etc. - Does not take care of
the need of the customer
TYPES/ TRENDS OF MARKETING

• Online Marketing
• Offline
• Mouth of world
Value Chain Analysis (VCA)
Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that
add value to its final product and then analyze these activities to reduce costs or increase differentiation.
Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which
activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which
ones could be improved to provide competitive advantage.
Tasks of Marketing
1-Developing Marketing Strategies & Plans
2-Capturing Marketing Insights
3- Connecting with Customers
4- Building Strong Brands
5-Shaping the Market Offerings
6- Delivering Value Communicating
7- Value Creating
8- Long Term Growth
MARKETING INTERFACES WITH OTHER FUNCTIONAL AREAS
• Research and Development
Research and development is the engine within an organization which generates new ideas, innovations
and creative new products and services. For example cell phone/mobile phone manufacturers are in an industry
that is ever changing and developing and in order to survive manufacturers need to continually research and
develop new software and hardware to compete in a very busy marketplace. Think about cell phones that were
around three or four years ago which are now completely obsolete. The research and development process
delivers new products and is continually innovating.
Research and development should be driven by the marketing concept. The needs of consumers or potential
consumers should be central to any new research and development in order to deliver products that satisfy
customer needs.
• Production/operations/logistics
Operations include many other activities such as warehousing, packaging and distribution. To an
extent, operations also includes production and manufacturing, as well as logistics. Production is
where goods and services are generated and made.
• Human resources
• Human Resource Management (HRM) is the function within your organization which overlooks
recruitment and selection, training, and the professional development of employees. Other related
functional responsibilities include well-being, employee motivation, performance management.
• So when you become a marketing manager you would use the HR department to help you recruit a
marketing assistant HR would help you to score and assess application forms, and will organise the
interviews. You may also use HR to organise an induction for your new employee. Of course there is
the other side of the coin, where HR sometimes has to get tough with underperforming employees.
These are the operational roles of HR.
• For example the HR department may run a staff development programme which needs a newsletter or
a presence on your intranet. This is part of your internal marketing effort.
• Obviously marketers need to sell products and services that are currently in stock or can be made
within a reasonable time limit. Perhaps there is a warehouse full of other products that our marketing
campaign is ignoring.
• IT (websites)
• An intranet is an internal website. An intranet is an IT supported process which supplies up-to-date
information to employees of the business and other key stakeholders. For example European train
operators use an intranet to give up-to-date information about trains to people on the ground
supporting customers.
• An extranet is an internal website which is extended outside the organization, but it is not a public
website. An extranet takes one stage further and provides information directly to
customers/distributors/clients. Customers are able to check availability of stock and could check
purchase prices for a particular product. For example a car supermarket could check availability of cars
from a wholesaler.
• Customer service provision
• Customer service provision is very much integrated into marketing. As with earlier lessons on what is
marketing?, the exchange process, customer satisfaction and the marketing concept, customer service
takes the needs of the customer as the central driver. So our customer service function revolves around
a series of activities which are designed to facilitate the exchange process by making sure that
customers are satisfied.
• Finance department
• The marketing department will need to work closely with the finance department to ensure that:
• There is an adequate budget to meet the needs for research, promotion and distribution. The finance
department has a whole organisation brief to ensure that all the business operates within its financial
capabilities. They will want all departments to work within their allocated budgets.
CHALLENGES IN MARKETING
• Keeping Abreast of Competitors' Actions
The marketing management function in a small business can be compared to a series of
ongoing chess matches between you and your major competitors. Every business owner needs to make
gathering information about competitors a high priority.
• Scarcity of Resources
Most small businesses have more ideas for marketing their products or services than they have
funds available to execute these strategies. have the strongest positive impact on sales.
• Dealing with Competitive Disadvantages
Businesses have both competitive advantages aspects of their products and service level that
make it easier to attract new customers and disadvantages -- areas where competitors' products or
services are better suited to meet customers' needs.
• Listening to the Customer
Small business owners are close to their customers or customer prospects -- they may speak or
interact with them on a daily basis. It's important to use these interactions as an opportunity to learn
about what customers really want or need.