Marketing management

Marketing management, nature of marketing, importance of marketing, Evolution of marketing concept, Marketing environment, Micro environment of marketing, macro environment of marketing, Domestic marketing, international marketing, definition of marketing, definition of marketing management, marketing concepts, types of marketing, components of micro environment, components of macro environment, Calicut university MBA

1. Marketing Management

2. Definition of Marketing Management The American Association of Marketing define marketing management as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services in order to create, exchange and satisfy individual and organizational objectives.

3. Definition of Marketing “Marketing is an administrative and social process through which individuals and groups obtain what they need and desire by the generation, offering and exchange of valuable products with their equals”. Philip Kotler

4. Nature of Marketing Consumer-oriented: A business exist to satisfy human needs, hence business must find out what the desire of consumer and thereby produce goods & services as per the needs of the customer. Art as well as science: In the technological arena, marketing is the art and science of choosing target markets and satisfying customers through creating, delivering, and communicating superior customer value. Exchange Process:The exchange process implies transactions between buyer and seller.

5. Nature of Marketing Starts and ends with customers: Marketing is consumer oriented and it is crucial to know what the actual demand of consumer is and the marketing ends as soon as those goods and services reach into the safe hands of the customer. Creation of Utilities: Marketing creates four components of utilities viz. time, place, possession and form. Goal oriented: Marketing seeks to achieve benefits for both buyers and sellers by satisfying human needs. Dynamic process: Marketing is a complex, continuous and interrelated process.

6. Importance of Marketing Marketing Helps in Transfer, Exchange and Movement of Goods: Goods and services are made available to customers through various intermediaries like wholesalers and retailers etc. Marketing Is Helpful In Raising the Standard Of Living Of The Community: By making available the uninterrupted supply of goods and services to consumers at a reasonable price, marketing has played an important role in raising and maintaining living standards of the community. Marketing Creates Employment: The major marketing functions are buying, selling, financing, transport, warehousing, risk bearing and standardization, etc. which are performed by a large number of individuals.

7. Importance of Marketing Marketing as a Source of Income and Revenue: it is the way through which the concern could generate revenue or income and bring in profits. Marketing helps in Making Decisions: it is confronted with many problems in the form of what, how, when, how much and for whom to produce? Marketing Acts as a Source of New Ideas: Marketing gives scope for understanding the new demand pattern and thereby produce and make available the goods accordingly.

8. Marketing concept The marketing concept is the strategy that an organization implement understanding the customers needs and wants, satisfying the same to increase sales and maximize the profit.

9. Evolution of Marketing Concept

10. Marketing Concepts 1.Production concept Consumers prefer products that are widely available and inexpensive. The production concept is more operations oriented than any other concept. Companies adopting this orientation run a major risk of focusing too narrowly on their own operations and losing sight of the real objective.

11. Marketing Concepts 2.Product concept Consumers favor products that offer the most quality, performance, or innovative features. The product concept believes in the consumer and it says the consumers are more likely to be loyal if they have more options of products or they get more benefits from the product of the company.

12. Marketing Concepts 3.Selling concept The selling concept holds the idea- “consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort”. Here the management focuses on creating sales transactions rather than on building long-term, profitable customer relationships.

13. Marketing Concepts 4.Marketing Concept Focuses on needs and wants of target markets & delivering value better than competitors. Here marketing management takes a “customer first” approach. Under the marketing concept, customer focus and value are the routes to achieve sales and profits.

14. Marketing Concepts 5.Societal marketing concept The societal marketing concept holds “marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being”. The Societal Marketing Concept puts Human welfare on top before profits and satisfying the wants. It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

15. Marketing Environment According to Philip Kotler, marketing environment refers to “external factors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers”. Marketing activities are influenced by several factors inside and outside a business firm. These factors or forces influencing marketing decision-making are collectively called marketing environment. It comprises all those forces which have an impact on market and marketing efforts of the enterprise .

16. Types of Marketing Environment

17. Micro Environment Micro-environment likewise concerns the inward environment of the organization and influences marketing as well as all the departments like management, R&D, finance, Human assets, purchasing, operations, and bookkeeping.

18. Components of Micro Environment The company: The organization itself is the first micro environmental component. The mission statement & long term goals or objectives of the organization are firstly developed by the top management of the organization. Suppliers: They deliver the required resources to all the competing organizations for the production of goods or services. Marketing intermediaries: The organizations that assist in promoting, selling & distribution of products to final customers of specific organization are called marketing intermediaries and are considered the utmost factors the micro environments.

19. Components of Micro Environment Customers:Customers buy the product of the organization for final consumption. The main goal of an organization is customer satisfaction. Competitors: Every organization faces the competition with certain competitors. So the competing organization should develop such effective strategies that can influentially position its products in the competing market. Public: The last component of micro environment is a public, which include a group of individuals that can influence the ability of the organization to accomplish it objectives.

20. Macro Environment Macro environment involves a set of environmental factors that is beyond the control of an organization. These factors influence the organizational activities to a significant extent. Macro environment is subject to constant change.

21. Components of Macro Environment Demographic Forces: Demographic environment is the scientific study of human population in terms of elements, such as age, gender, education, occupation, income, and location. Economic Forces: Economic environment affects the organization’s costs structure and customers’ purchasing power. The purchasing power of a customer depends on the current income, prices of the product, savings, and credit availability. Natural Forces: Natural environment consists of natural resources, which are needed as raw materials to manufacture products by the organization

22. Components of Macro Environment Technological Forces: Technology acts as a rapidly changing force, which creates new opportunities for the marketers to acquire the market share. Marketers with the help of technology can create and deliver products matching the life style of customers. Political Forces: Political and legal environment consists of legal bodies and government agencies that influence and limit the organizations and individuals. Every organization should take care of the fact that marketing activities should not harm the political and legal environment prevailing in a country Cultural Forces: Those actors & forces that affect the basic values, preferences, perceptions & behaviors of the society are included in the cultural factor of the macro environment

23. Domestic Marketing Domestic marketing is the selling of a company’s products within a local financial market. It deals with only one set of competition and economic issues which make it more convenient to do. There are no language barriers in domestic marketing and obtaining and interpreting data on local marketing trends and consumer demands is easier and faster to do. It helps the company make decisions and develop marketing strategies that are more effective and efficient. The risks are also lesser with domestic marketing and it needs lesser financial resources.

24. International Marketing International marketing is the promotion and sale of a company’s products to consumers in different countries. It is very complex and requires a huge amount of financial resources. Every country has its own laws on business and a company that aims at entering into business in another country must first know about them. Consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers. International marketing requires more time and effort, not to mention its being very risky too.

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