Marketing management Philosophies - Vishnu Pujari

Marketing Management Meaning & definition, nature or features, objectives & cocepts

1. Marketing Management By Vishnu Pujari Department of Commerce S.V.S. College, Bantwal .

2. Contents Meaning & definition of Marketing Management Nature of marketing management Objectives of marketing management Marketing management philosophies or concepts

3. Marketing Management is an important operative management function performing all managerial functions like planning, organising , directing and controlling the marketing activities . “ Marketing management is concerned with the direction of purposeful activities towards the attainment of marketing goals.” -- E.W. Cundiff & R.R. Still

4. Nature of Marketing Management Marketing management is a functional area of management. It is Goal directed, It determines the appropriate marketing-mix of the firm, It is a specialised job, It is the marketing concept in action.

5. Objectives of Marketing Management Determination of customers’ needs, Creation of customers for the business, Customer satisfaction, Generation of profits for the business, Earn Goodwill for the business, Contribution to national development, Raising the standard of living of the people.

6. Marketing Philosophies or Marketing Concepts Marketing concept or marketing philosophy means the attitude or course of business thinking of the management of a firm which guides its marketing efforts. There are 6 important marketing philosophies or concept. They are: The production concept The product concept The selling or sales concept The marketing concept The societal or social concept 6. The h olistic Concept

7. Production Concept The philosophy holds that high production efficiency and wide distribution coverage would sell the product offered to the market. According to Philip Kotler , the production concept suggests that “ Consumers will favour those products that are widely available and low in cost. Managers of production-oriented organisations concentrate on achieving high production efficiency & wide coverage”.

8. Features: Uninterrupted product availability Concentrates on production efficiency Large scale production Low cost Not appreciated by consumers Best suited for mass consumption products Like food articles, fertilizers, stationery etc.

9. Product Concept The emphasis on production concept led to the difficulty in selling the products, which eventually forced the business to go for product differentiation. According to Philip Kotler , the product concept holds that “ Consumers will favour those products that offer the most quality, performance, & features. Managers in product-oriented organisations focus their energy on making good products and improving them over time”.

10. Features: Concentration on quality & performance of products Continuous product planning and development No effort required for marketing the product This philosophy is best suited for companies that are technology-driven.

11. Selling Concept Product concept further led to Selling Concept , when selling became difficult even after having a good product at a cheaper price. According to Philip Kotler , the selling concept holds that “ Consumers, if left alone, will ordinarily not buy enough of the organisation’s products. The organisation must therefore take aggressive selling promotion effort”.

12. Features: Undertake aggressive selling promotion efforts. Build profit through quick turn over Marketers have to be knowledgeable, energetic and imaginative for selling the products. This concept is common for any marketing effort, but generally practiced for insurance business and new products.

13. Marketing Concept With the increasing competition, the business started to discover that it is useful to produce what the customer want; rather than what can be produced by the company. According to Philip Kotler , the marketing concept holds that “ the key to achieve organisational goals consists in determining the needs & wants of target markets & delivering the desired satisfactions more effectively & efficiently than competitors”.

14. Features: Determining customer needs and wants Satisfying Customers needs and wants Identifying customers as a group of coherent unit of market segments based on their behaviour.

15. Societal Concept Some marketing experts argue that the marketing concept ignores the potential conflicts among consumer wants, consumer interests and long run social welfare. For instance, a fast food hamburger firm offers tasty but unhealthy food.

16. This is why, experts have suggested societal marketing concept (also known as human concept & ecological concept) which holds that the firm’s task is to determine the needs, wants & interest of target markets in such a way that preserves and enhances the consumer’s & society’s well-being. Features: Preserving & enhancing customers’ as well as society’s well being. Long term consumer & Public welfare Are considered

17. Holistic Concept Holistic marketing concept takes into account a broad, integrated perspective. It is based on internal marketing, integrated marketing, relationship marketing and socially responsible marketing.

18. Internal Marketing deals with the relationship and co-ordination among the marketing department with the senior management & other departments like finance, human resource, information technology etc . Integrated Marketing tries to build synergy among the product and services, channels of distribution & communications. It tries to integrate the marketing mix. Relationship Marketing deals with effective implementation of CRM (Customer Relationship Management) & PRM ( Partner Relationship Management ); while performing marketing calls for marketing activities as well as broader concern of the society. Socially Responsible Marketing deals with consumers and public welfare.

19. Books Referred Marketing Management by T.N. Chabra & S.K. Grover – Dhanpat Rai & Co.(Pvt.) Ltd. Marketing Management by Prof. Vijay Prakash Anand – Biztantra Publishers Marketing Management by K.D. Basava – Vidyavahini Prakashan

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