Marketing Management BBA powerpointMM BBA 1.pptx

Marketing Management BBA powerpoint

1. Marketing Management- Module 1 Santosh M Biradar

2. Introduction Santosh M Biradar

3. Nature Dr Chidanand G Byahatti With the growing evident of needs of the people, marketers have come up with various solutions, meeting the same. Various advertisements, trigger the intentions or deep buried desires with the increasing purchasing power of the individuals. Communication is the key term which is most significant as to marketing is concerned.

4. Scope Every human being is a consumer in one or the other way. Everyone buys & uses one or the other product which is marketed by someone else. To prepare to be a marketer, you need to understand what marketing is, how it works, who does it, and what is marketed. Everyone should know about the marketing discipline. More over, marketing has become the part of our daily life. The products we use, the retail outlets we visit and the ads to which we are exposed to are parts of marketing. Santosh M Biradar

5. Definition What is marketing? As defined by Philip Kotler , Marketing is about identifying and meeting human and social needs. Meeting needs profitably. American Marketing association offers the following definition: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. The performance of business activities that direct the flow of goods and services from producer to consumer or user. Santosh M Biradar

6. Definition What is marketing management? As defined by Philip Kotler, It is an art and science of choosing target markets and getting, keeping, growing customers through creating, delivering, and communicating superior customer value. Marketing management is the analysis, planning, controlling & implementing the marketing programmes designed to create, build & maintain mutually beneficial exchanges & relationship with the target buyers for the purpose of achieving the organisational objectives. Santosh M Biradar

7. Marketing Process Santosh M Biradar

8. Comparison Marketing Unique importance is given to the customers and their needs Customers needs are identified first and then products are produced. Marketers try to adjust the supply to the tune of demand Higher the customer satisfaction, higher would be the sales and profit. Selling Prime importance is attached to the produced product. Products are produced first and then they use heavy selling activities. Sellers try to adjust the demand to the supply. Higher the sales, higher would be the profit. Santosh M Biradar

9. Marketing Environment Companies need to monitor their external environment to take advantage of emerging opportunities, and protect themselves from threats emanating from it. Tracking the environment enables the company to anticipate these opportunities and threats before other players. Micro Environment The microenvironment of the company consists of various forces in its immediate environment that affect its ability to operate effectively in its chosen markets. This includes the company’s suppliers, distributors, customers and competitors. Macro Environment The macroenvironment consists of broader forces that not only affect the company and the industry, but also other actors in the microenvironment. These shape the characteristics of the opportunities and threats facing a company. These factors are largely uncontrollable by the company. Macroenvironment includes economic, social, cultural, technological, political, and legal factors. Santosh M Biradar

10. Marketing Environment It consists of the task environment and the broad environment. The task environment includes the actors engaged in producing, distributing, and promoting the offering. These are company, suppliers, distributors, dealers, and target customers. The broad environment consists of size components: demographic environment, economic environment, socio-cultural environment, natural environment, technological environment and political-legal environment. Marketers must pay close attention to the trends and developments in these and adjust their marketing strategies as needed. New opportunities are constantly emerging that await the right marketing savvy and ingenuity. Santosh M Biradar

11. ECONOMIC FORCES

12. TECHNOLOGICAL FACTORS Technologies for nations Technologies for product and services Technologies for business models

13. SOCIAL-CULTURAL FACTORS

14. DEMOGRAPHIC FACTORS Adolescents Youth People between 35 to 45 People between 45 and 60 People above 60

15. POLITICAL-LEGAL ENVIRONMENT Legal framework within which the marketing department has to function Stability of the government Governments and businesses need each other Every aspect of the marketing mix is subject to laws and restrictions

16. COMPETITIVE ENVIRONMENT Number of competitors a company faces Relative size of competitors Degree of interdependence within the industry New technologies

17. COUNTRY ANALYSIS Identification of strategy Goals Policies Context Resources Players Rules of the game Performance

18. Marketing organisations The marketing manager is faced with the task of achieving various pre­determined objectives. These objectives may relate to profit maximisation, customer satisfaction, image building or sales maximisation etc. Achieve­ment of these objectives requires proper internal arrangement or organisation. Thus, for achieving the objectives, it is essential that marketing policies and strategies are properly implemented. Proper implementation requires a good organisational set up where authority and responsibilities are properly delegated. Organising is a managerial function. It is a framework of relationship among different person in an organization which specifies their authority, respon­sibilities and duties. Organization is thus, a mechanism through which policies are executed into actions. Marketing organization is made up of two words – marketing and organization. Marketing organization is a framework for planning and executing decisions in marketing activities. It is a group of marketing people working together in a coordinated manner to achieve pre-determined marketing objectives. Santosh M Biradar

19. Marketing organisations Organisation as a structure in the words of Professor Wheeler is, “Internal organization is the structural framework of duties and responsibilities required of personal in performing various functions within the company. It is the blue-prints, a mechanism”. According to George Terry organisation is “The establishment of effective authority relationship among selected work, person and work places in order for the group to work together”. In the words of Cundiff, Still and Goroni , “The marketing organisation provides the vehicle for marketing decision on product marketing channels, physical distribution, promotion and prices”. Santosh M Biradar

20. Marketing organisations Marketing organisation is thus, a mechanism of dividing and then grouping together of various marketing activities and establishing authority and responsi­bility among marketing personnel to ensure coordinated efforts toward achieve­ment of marketing goals. It is a system of relationship among various marketing functions, performed by different marketing personnel in a coordinated manner to achieve marketing objectives. Need for Marketing Organization: Marketing organization is an important framework of relations for the achievement of marketing goals. Santosh M Biradar

21. As such the need for marketing organisation arises on account of following reasons: Dr Chidanand G Byahatti Lack of Initiative: In the organization people lack initiative to undertake specific responsibilities on their own. They are unable to maintain close relations amongst themselves. Hence, they have to be brought together and specific authority and responsibilities have to be assigned. To Balance Individual Goals and Organizational Goals: In an organization, people are guided by individual goals which are quite different from organizational goals. To reconcile the two goals, organization became necessary. Every individual tries to balance the individual goals with the organizational goals.

22. As such the need for marketing organisation arises on account of following reasons: Dr Chidanand G Byahatti To Avoid Conflict: Organisation consists of people who have vertical or horizontal relationship. This may lead to confusion and conflict if lines of authority and responsibility are not cleared defined. Therefore organisation of activities became essential. Each individual should know his specific role, responsibility and authority. This will ensure proper coordination of activities in the organization. Organization Ensures Proper Performance of Different Functions: Marketing involves various functions and sub-functions. People in the marketing department should be clear with their specific marketing responsibilities. Further, a balance is also to be achieved with other functional departments like production, finance and personnel. Nature of Marketing Job: The nature of marketing job is such that it involves people in activities such as idea, innovation and behaviour of consumer and other intermediary. The study of complex human behaviour becomes organised. A good organisation structure ensures proper coordination and willingness to perform the complex task.

23. Factors Influencing Size of Marketing Organization: Dr Chidanand G Byahatti 1. Management’s Philosophy: One of the major factors influencing size of marketing organization is the philosophy of the company’s management. Management may pursue different philosophy like that of centralization or decentralization, individual action or group action, their attitude and value judgment. 2. Type of Product: The nature of product has significant influence on the size of marketing organization. Technical products like engineering goods require greater explana­tion, hence direct selling became a better option, and this requires larger sales force and organisation. On the other hand, fast mov­ing goods (FMCG) can be easily sold through the distribution channel and hence require smaller sales force and small organization. 3 . Product Line : The length of the product line organisation is a major factor determining the size of sales organisation. If the firm deals in large number of product, it re­quires big size organization. To sell big variety of products, firm has to develop market oriented organisation structure so as to cover new areas and new markets. For small number of products, func­tional organization is suitable. 4. Markets: Markets relates to various factors like size of the market, location of the market, nature of the market, scope of the market etc. Each of these factors influences the size of the organisation. If the markets are widely dispersed, large sales force is required and so the size of the organisation is large and vice versa.

24. Factors Influencing Size of Marketing Organization: Dr Chidanand G Byahatti 5. Channel of Distribution: The distribution channel developed by a firm has a direct effect on the size of the marketing organization. Under indirect channels, intermediaries are there, who sell the product, thus, the size of organization is small whereas, under direct channel system, firm employees its own sales people to sell the goods, therefore the size of organization is large. 6. Needs and Requirements of the Customers: Market, today are highly complex as there is a continuous change in the customer’s requirements and expectation from the company. As a result as customer’s demand better facilities and new facilities, company has to accord­ingly adjust its sales organization. 7. Business Conditions and Environment: The environment in which a unit carries out its activities also has an impact on the size of the marketing organization. The requirement of success in that industries and the rate of changes in that industry is an important factor that decides the size of organization. 8. Sales Activity: The size of marketing organization depends to a large extent on the sales activity of the form. If more sales and sales related activities are there, the size will be large and vice versa.

25. Service Marketing Dr Chidanand G Byahatti Definition: Service: (Philip Kotler) It is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Service: (AMA) i] Activities, benefits or satisfaction which are offered for sale, or ii] are provided in connection with the sale of goods.

26. Characteristics of Services Dr Chidanand G Byahatti

27. Comparison of Products and Services Dr Chidanand G Byahatti

28. End of Module 1 Dr Chidanand G Byahatti