Unit 2 - Introduction to Marketing Management

Unit 2 - Introduction to Marketing Management:
a. Introduction, Objectives & Importance of Marketing Management
b. Core Concepts of Marketing, Features of Marketing Management
c. Functions of Marketing Management, Responsibilities & Functions of Marketing Executive
d. Interface of Marketing with Production, Purchase, Finance, Human Resource, Research & Development and Other Departments.

1. KAUSHIK JAISWAL
7276888855 [email protected]
MARKETING
MANAGEMENT

2. MARKETING MANAGEMENT
“Management is the process of getting things done in an organized and
efficient manner.
Marketing management aims at efficient operation of marketing
activities.”
❑Marketingmanagement smoothentheprocessofexchangeof
ownershipofgoodsandservicesfromsellertothebuyer.
❑Marketingmanagement,likeallotherareasofmanagement comprises
ofthefunctionofplanning,organizing,directing,coordinatingand
controlling.
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3. MARKETING MANAGEMENT
“Marketing Management is the art and science of
choosing target markets and building profitable
relationship with them. It is a process involving
analysis, planning, implementing and control and it
covers goods, services, ideas and the goal is to
produce satisfaction to the parties involved”.
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-PHILIP KOTLER

4. MARKETING MANAGEMENT
“Marketing management is the process of planning & implementing
the conception, pricing, promotion and distribution of products or services.
It is a target-oriented process and an operational area of management.”
“Marketing management is basically an organizational discipline,
which focuses on the practical usage of marketing orientation,
techniques and methodologies in companies and organizations
and on the management of a firm's marketing resources and activities.”
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5. OBJECTIVES OF MARKETING MANAGEMENT
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To satisfy the clients’ requirements and their objectives.
To leverage the gain for the growth of business.
To develop customer base for the business.
To create an appropriate marketing mix.
To raise the quality of life of people.
To build a good image of the organization.
To maintain the long-run concept.

6. IMPORTANCE OF MARKETING MANAGEMENT
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Analysing Market Opportunities
Determination of Target Market
Planning and Decision Making
Creation of Customer
Helps in Increasing Profit
Improvement in Quality of Life
Better Opportunities
1
2
3
4
5
6
7

7. FEATURES OF MARKETING MANAGEMENT
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Managerial Process Consumer Centric Research Analysis
Planning and
Development
Building Marketing
Framework
Organizational
Objectives
Promotional and
Communication
Process
Controlling of
Activities
1 2 3
4 5 6
7 8
See : Features of Marketing Management

8. FUNCTIONS OF MARKETING MANAGEMENT
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Assessing the Marketing Opportunities
Planning the Marketing Activities
Organizing the Marketing Activities
Co-Ordinating Different Activities of Enterprise
Directing and Motivating the Employee
Evaluating and Controlling Marketing Efforts
See : Functions of Marketing Management

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1. Assessing the Marketing
Opportunities:
•Determinationofmarketing
objectivesandassessmentof
themarketingopportunitiesfor
thefirm,isanimportant
function of marketing
management.
•The constantlychanging
market conditions and
opportunities make it
imperativeforthemarketing
management tocomeout
withplannedprogramsto
meetthechallenges,and
reaptheopportunities.
2.Planning the Marketing
Activities:
•Planningisanimportant
managerialfunction.Planning
ofmarketingactivitiesisa
crucialtaskandinvolves
numeroussteps.Itinvolves
planningeffectivestrategiesto
achievethedesiredmarketing
objectives.
•Itisconcerned with
formulationofpoliciesrelating
toproduct,price,channelsof
distribution, promotional
measures,forecastoftarget
salesetc.Planningprovides
thebasisforaneffective
marketingfortheenterprise.

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3.Organising the Marketing
Activities:
•Anothersignificantfunctionof
marketingisorganizingit
impliesdetermination of
variousactivitiestobe
performedandassigningthese
activitiestorightperson,so
thatmarketingobjectivesare
achieved.
•Inthelightofthechanging
conceptofmarketing,itis
necessary that the
organizationstructureisflexible
andaccommodative.Thiswill
helpinbetterinteraction
between organizationand
environment.
4.Co-Ordinating Different
Activities of Enterprise:
•Eventhebestofplanningwill
notberewardingifthereis
improper coordination
betweendifferentactivitiesof
theorganization.
•Marketinginvolvesvarious
activitiesandtheseareinter-
relatedandinterdependent.
Productdecisions,pricing
strategies,channelstructure
researchactivitiesallrequire
propercoordination.
•Onlythentheobjectivescan
beachieved.

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5.Directing and Motivating the
Employee:
•A good direction is a must for
effective performance of
marketing functions. Direction
helps in rightful performance of
the work. Different leadership style
are practiced to guide the
subordinates.
•A leader directs his subordinates
and ensures through effective
supervision, that the performance
is as per planned specification. At
the same time, it is necessary that
employers are properly
motivated. Motivation not only
helps in better performance by
the employee but also holds him
back to the organization for
longer periods.
6. Evaluating and Controlling
Marketing Efforts:
•In order to have a profitable
venture, marketing manager must
on a continuous basis, evaluate
the marketing efforts.
•This will help him in knowing the
deficiencies if any, which can be
corrected beforehand only and
proper adjustments can be made
with the changing environment.
Controlling is a managerial
function concerned with
comparison of actual
performance with the standard
performance and locating the
shortcomings if any, finally
corrective measures are taken to
overcome the shortcomings.

12. PORTER’S
FIVE FORCES
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13. MARKETING EXECUTIVE
Marketing executives, also known as marketing officers or marketing
coordinators are the ones who perform the task of Marketing
Management.
❑MarketingExecutivesareinvolvedindevelopingmarketing
campaignstopromoteaservice,product,eventorcampaign.
❑Themarketingmanagerisfacedwiththetaskofachievingvarious
predeterminedobjectives.
❑Theseobjectivesmayrelatetoprofitmaximization,customer
satisfaction,imagebuildingorsalesmaximizationetc.
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14. FUNCTIONS OF MARKETING MANAGER
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Work with top
management
Supervise and
coordinate business
activities
Identify Potential
Markets
Evaluate the
Product
Launch new product
or services
Select the Channels
of Distribution
Create a market
plan
Study the Economic
and Political
Environment
1 2 3
4 5 6
7 8
See : Functions & Responsibilities of Marketing Manager

15. RESPONSIBILITIES OF MARKETING MANAGER
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Responsibilities
towards
Enterprise
Responsibilities
towards
Employees
Responsibilities
towards
Society
Responsibilities
towards
Customers
1 2 3 4

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•Gathertheresultsofmarketresearchand
decideandcontrolthequantityand
qualityofproduction.
•Saleforecasting,productplanningand
pricefixation.
•Preparearoadmapofadvertisementand
salespromotionandspecifythechannels
ofdistributionforgoodsandservices.
•Controlcreditpolicyofthefirmandalso
thecostofmarketingactivities.
•Arrangeforafter-sale-servicesandremove
theproblemsofconsumers.
Responsibilities
towards
Enterprise

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•Forhisemployees,hehastheresponsibility
toprovidethempropertrainingand
remuneration.
•Commence schemesfortheirwelfare.
•Motivatethem,whichindirectlybenefitsin
thedevelopmentofthefirm.
•Evaluatetheperformanceofemployees
andreceivethesuggestionsandthe
problemsofemployees.
•Co-ordinatetheactivitiesperformedby
differentemployees.
Responsibilities
towards
Employees

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•Providenewgoodsandservicesasper
theneedsandwantsofsociety.
•Maintainregularsupplyofgoodsand
servicesatreasonablepricesinthe
market.
•Increasetheemploymentopportunities.
•Protectsocietyagainsttheeffectsof
economicslump.
Responsibilities
towards
Society

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•Tostudytheneedsandwantsofconsumers
andaccordingtoitfulfilltheirdemands.
•Tomaketheregularsupplyofgoodsand
services.
•Toprovideaftersale-services.
•Toeducatetheconsumersregarding
alternativeusesofproducts.
•Toremovegrievancesofconsumers.
Responsibilities
towards
Customers

20. RELATIONSHIP AMONG DEPARTMENTS
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Production
department
Finance
department
Human
resources
department
Research and
development
department
IT department

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The relation with the Production department
•Themarketingdepartmentalwaysgathersinformationaboutthe
needsofthecustomersandalsosurveysthepeopleaboutthe
quality,theexpense,andthevaluablityoftheproducts.
•Itthenreportstheinformationbacktotheproductiondepartment
inordertoproducewhatpeopleneedwithareasonableprice.
•Throughthesurveys,themarketingdepartmentalsospotsthe
thingsthatpeopledon'tlikeabouttheproductwhichhelpsthe
productiondepartmentimprovetheproduct'squality.
•Themarketingdepartmentalsodecideswheretosellandtowhom
thecompanyshouldselltheproductwhichisbasedaccordingto
thenatureoftheproductitself.

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The relation with the Finance department
•Moneyisabasicfactorineveryprocessandeverycompany.
•Thefinancedepartmentsupportsthemarketingdepartmentwitha
lotofstatisticsandalotofhelpfulinformationconcerningthe
moderatepricesthatthecustomerexpectsforaspecificproduct.
•Thatisinadditiontothefundsitgivestothemarketingdepartment
inordertoproducecommercials,fliers,packagingdesigns,logos
andeverythingelsethatconcernsthecompany.
•TheFinancedepartmentisconsideredthebackboneofthe
companyintheeyesofallmarketeers.

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The relation with the HR Department
•ThemarketingdepartmentreliesheavilyontheHRDforthesupply
ofcomponentmarketingandsalespeople.
•TheHRDisalsoresponsibleforprovidingtrainingtothemarketing
peoplewithintheorganization.
•TherearefewerareasofconflictsbetweentheHRDandthe
marketingdepartment.
•However,thesuccessofthemarketingdepartmentdepends
heavilyontheproperselection,recruitment,training,placement
andmotivationofitspersonnelwhichareinthedomainofthe
HRD.

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The relation with the R&D Department
•Inmostcompanies marketingandresearchdevelopment
departmentcoexistbutseldomcooperate.
•R&Dpeoplearemostlyengineerswhobelievethat"R&Dmakes
andmarketingtakes."
•Inrealty,thetwodepartmentscannotfunctioninisolation.
•R&Dcannotoperatewithoutthemarketingdepartment'sinputs
aboutbuyers'testandpreferences,markettrendsand
environmentalopportunities,challengesandthreats.Marketing
alsoprovidestheoutletfortestingandcommercializationofthe
productdevelopedbytheR&Ddepartment.
•Ontheotherside,marketingdependsheavilyontheR&Dtocome
upwithnewproductideasthatcanbemarketedprofitably.

25. MARKETING ORGANIZATION
An organization is a group of people that is structured and
managed to achieve a common goal.
"Marketing organization can be defined as a formal or
informal group of individuals working together to reach
quantitative andqualitativemarketing objectives by
making decisions on product, price, place, and promotion.“
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26. MARKETING ORGANIZATION
❑Marketingorganizationisagroupofmarketingpersonsbrought
togethertomakedecisionsonmarketingareaslikeproduct,price,
place,andpromotion.
❑Itisthefoundationofeffectivesalesplanningforsystematicexecution
ofplansandpolicies.
❑Itprovidesasystemofrelationshipsamongvariousmarketingfunctions
tobeperformedbypropercoordinationamongmarketingpersons.
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27. NEED FOR MARKETING ORGANIZATION
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i. Lack of Initiative
ii.To Balance Individual Goals and Organizational Goals
iii.To Avoid Conflict
iv.Organization Ensures Proper Performance of Different Functions
v.Nature of Marketing Job
❑Assuchtheneedformarketingorganizationarisesonaccountof
followingreasons:
See : Need for Marketing Management

28. MARKETING ORGANIZATION -IMPORTANCE
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Stimulates creativity and innovation
Facilitates co-ordination
Helps in the growth of enterprise
Optimum use of resources and new technology
Facilitates administration

29. FACTORS INFLUENCING SIZE OF MARKETING
ORGANIZATION
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1. Management’s Philosophy
2. Type of Product
3. Product Line
4. Markets
5. Channel of Distribution
6. Needs and Requirements of the Customers
7.Business Conditions and Environment
8.Sales Activity
See : Factors Influencing Size

30. CLASSIFICATION OF MARKETING ORGANIZATION
Assuchtherearetwoimportantwaysinwhichorganizationscanbe
classified:
i.Classicalclassificationbasedonclassicalschoolofthought,which
dividesorganizationas:
ii.Modernclassificationbasedonmodernschoolofthought,which
dividestheorganizationonthebasisof:
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Line
organization
Line and Staff
organization
Functional
organization
Committee
organization
Functions Products Customers Geography
A
combination
of uses

31. FORMS/TYPES OF MARKETING
ORGANIZATION
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1. Functional Marketing Organization
2. Geographical Marketing Organization
3. Products/brands-Based Marketing Organization
4. Customer-Based Marketing Organization
5. Matrix Marketing Organization
6. Combined Marketing Organization
See : Forms of Marketing Organization

32. FUNCTIONAL MARKETING ORGANISATION
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Marketing
vice-president
Administrative
Manager
Sales Manager
Sales Officer A Sales Officer B
Advertising
Manager
Marketing
Research
Manager
New Product
Manager

33. FUNCTIONAL MARKETING ORGANISATION
❑Functionalorganizationisthemostcommonandwidelypracticedform
ofmarketingorganization.
❑Itconsistsoffunctional-marketingspecialists(functionalheads)reporting
tomarketingmanager.Marketingmanager(marketingvice-president)is
theheadofmarketingdepartmentandisresponsibletocoordinate
marketingactivities.
❑Normally,marketingactivitiesarearrangedorgroupedintofivefunctions
❑Everyfunctionisunderthechargeofexpertmanagerunderwhom
necessarysubordinates(supportingofficers)areappointed.
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Sales manager
Marketing
administrative
manager
Advertising and
sales
promotional
manager
New product
manager, and
Marketing
research
manager.

34. GEOGRAPHICAL MARKETING ORGANISATION
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Marketing vice-
president
East Zone
Marketing
Manager
West Zone
Marketing
Manager
Sales & Distribution
Officer A
Sales & Distribution
Officer B
North Zone
Marketing
Manager
South Zone
Marketing
Manager

35. GEOGRAPHICAL MARKETING ORGANISATION
❑Whencompanysellsitslimitednumberofproductsinnationalmarket
(sometimes,internationalmarket),itorganizesitsmarketingactivities
accordingtogeographicalareas.
❑Nationalmarketingmanagerappointsareamanagersfordifferent
geographicalareasofmarket(maybezones,states,orspecifiedareas).
❑Theareamanagerisresponsibleforhisrespectiveterritory.
❑Salesanddistributionofficer,advertisingandsalespromotionofficer,
marketingresearchofficer,andadministrativeofficersworkunderthe
areamanager.
❑Practically,thisformisusedonlyforsalesanddistributionactivities,and
otherfunctional(likeresearch,advertisement,new product
development,etc.)arecentrallyperformedbytheparentorganization.
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36. PRODUCT BASED MARKETING ORGANISATION
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Marketing vice-
president
Product A
Marketing
Manager
Product B
Marketing
Manager
Sales &
Distribution
Officer
Advertising &
Sales Promotion
Officer
Marketing
Research Officer
Administrative
Officer
Product C
Marketing
Manager
Product D
Marketing
Manager

37. PRODUCT BASED MARKETING ORGANISATION
❑Thisformofmarketingorganizationisbasedonproductsorbrands.
❑Everyproductcallsfordifferentstrategiesintermsofsales,distribution,
advertisingandsalespromotion,marketingresearch,andsoforth.
❑Themarketingvicepresident(chiefmarketingmanager)ofthecompany
appointsproductmanagersforeachoftheproducts.
❑Hesupervisesactivitiesofdifferentproductmanagers.
❑Theproductmanagerisresponsibletoperformallrelatedactivitiesfor
respectiveproduct.
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38. CUSTOMER BASED MARKETING ORGANISATION
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Marketing vice-
president
Manager for
Government
Buyers
Manager for
Industrial Buyers
Sales &
Distribution
Officer
Product Officer
Marketing
Research Officer
Administrative
Officer
Manager for
Institutional
Buyers
Manager for
Retail Buyers

39. CUSTOMER BASED MARKETING ORGANISATION
❑Somecompaniesorganizeitsmarketingactivitiesonthebasisof
customergroups.
❑Thisformmakessensewhenthecompanyhasdistinctgroupsofbuyers
(likegovernment,industrialbuyers,institutionalbuyers,retailedbuyers,
ruralv/surbanbuyers,domesticv/sforeignbuyers,etc.)andeachgroup
requiresdifferentmarketing(mix)strategies.
❑Product,price,promotion,anddistributiondecisionsaretaken
accordingtotypesofcustomergroups.
❑Marketingvicepresidentappointsmarketingmanagersfordifferent
groupsofbuyers.Hesupervisesperformanceofallmanagers.
❑Everymanagerfortherespectivegroupofbuyerstakesallrelevant
decisionslikeproducts,price,promotion,anddistribution.
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40. MATRIX MARKETING ORGANISATION
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Marketing
vice-
president
Sales &
Distribution
Manager
Marketing
Research
Manager
Advertisem
ent & Sales
Promotion
Manager
Managers
Product A
Managers
Product B
Managers
Product C

41. MATRIX MARKETING ORGANISATION
❑Itisahybridformofmarketingorganization.
❑Twobasesareconsideredatatimetoformamatrix.Forexample,
productsandfunctions,functionsandgeographicalareas,functionand
customergroupsoranyothercombinationisusedasabasetoorganize
marketingactivities.
❑Thepurposeistosharelimitedresourcesandtoachieveeconomyin
operation.
❑Companiesproducingmanyproductsinmanymarketsfordifferent
groupsofbuyersfollowthistypeoforganizationalstructure.
❑Thus,itisdesirableinmulti-product/multi-market/multi-customer
companies.
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42. COMBINED MARKETING ORGANISATION
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Marketing
vice-
president
Regional
Manager
(Region A)
Asst.
Manager
(Product 1)
Distribution
Officer
Marketing
Research
Officer
Advertising
& Sales
Promotion
Officer
Asst.
Manager
(Product 2)
Asst.
Manager
(Product 3)
Regional
Manager
(Region B)
Regional
Manager
(Region C)
Regional
Manager
(Region D)

43. COMBINED MARKETING ORGANISATION
❑Acombinedmarketingorganisationconsistsofcombinationofvarious
bases.
❑Morethantwobasesareusedtoformastructure.
❑Thistypeoforganisationisnormallyusedwhenacompanyhasdifferent
productsindifferentregionsandrequiresdifferentofficerstoperform
variedfunctionsforvariedgroupsofbuyers.
❑Thus,itisapplicableinlargecompanieswithavarietyofproductsselling
inseveralregions.
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44. THANK YOU..!
KAUSHIK JAISWAL
7276888855 [email protected]
See : Features of Marketing Management
See : Functions & Responsibilities of Marketing Manager
See : Need for Marketing Management
See : Factors Influencing Size
See : Forms of Marketing Organization