Chapter123 140208001744-phpapp01

Chapter 1Marketing: Definition & Importance

All activities involved in creation of time, place and possession utilities.

The process of Planning & Executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

American Marketing Association

The management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Chartered Institute of Marketing


- Market vs MarketingMarket is an arrangement to provide an opportunity to exchange goods.

Marketing is sum total of all those activities that are related to flow of goods from production to consumption.

- Marketing, Selling & MerchandizingMarketing is a broader concept which is driven from customer’s demand.

Selling is one part of marketing which deals with persuading customers to buy products that are available with seller.

Merchandizing refers to the process offering a variety of products to a retail consumer in a manner which stimulates demand.


IMPORTANCE OF MARKETING

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 / sub-

functions (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


IMPORTANCE OF MARKETING – Business Firms

1. Marketing Generates Revenue, by generating sales & thereby profits

2. Marketing helps decision making process (what, when & how much to produce, store or transport)

3. Helps change management & innovations

Chapter 2Marketing 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

Marketing Sales

Approach

determine future needs and has a strategy in place to meet those needs for the long term relationship.

makes customer demand match the products the company currently offers.

Focusfulfill customer's wants and needs thru products and/or services the company can offer.

fulfill sales volume objectives

HorizonLonger term Short term

Scope

Identifying customer needs (research), creating products to meet those needs, promotions to advertise said products.

Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs


Sales v/s Marketing


Sales v/s Marketing Marketing Sales

Strategypull push

ConceptMarketing is a wider concept Sales is a narrower concept

PriorityMarketing shows how to reach to the Customers and build long lasting relationship

Selling is the ultimate result of marketing.

Identity

Marketing targets the construction of a brand identity so that it becomes easily associated with need fulfillment.

Sales is the strategy of meeting needs in an opportunistic, individual method, driven by human interaction. There's no premise of brand identity, longevity or continuity. It's simply the ability to meet a need at the right time.


5. Marketing Concept- Starts with determination of consumer needs- Ends with satisfaction of these needs- Organizational activities revolve around customer- Products & Services are designed to serve customer

needs- Satisfied customer will only produce profits


Features of Marketing Concept1. Consumer Orientation

2. Integrated management action

3. Consumer Satisfaction

4. Realizing organizational goals including profits


Benefits of Marketing Concept1. Long Term success

2. Faster penetration

3. Better Products

4. Boosts creativity

5. Integrated functions

6. Mostly in profits

7. Better growth of employees

8. Contributes to overall growth of the society


Dilemma of Marketing Concept1. Customer Orientation v/s Product standardization

2. Customer Orientation v/s Profits

3. May ignore social welfare at times

4. Constrains innovation, at times

Chapter 3Marketing Management Tasks

Responsibilities of Marketing Management1. Market analysis

2. Set Goals

3. Forecast sales & profits

4. Strategies, policies & procedures

5. Evolve appropriate marketing mix

6. Organize marketing activities

7. Organize resources

8. Participation in product planning

9. Managing Supply chain

10. After Sales activities


Marketing Management Tasks1. Conversional Marketing

- Used during negative demand

- Customer dislikes the product

- May even pay to avoid the product

- It is a rare condition

- e.g. Waste Water


Marketing Management Tasks2. Stimulational Marketing

- Used during No demand

- Customer is indifferent to the product

- Task of converting no-demand into positive demand

- Connect the product with existing need

- Create environment where need is felt

- e.g. Mushrooms


Marketing Management Tasks3. Developmental Marketing

- Used during Latent demand

- Consumers share need for something which does not exist

- Opportunity for Marketer to develop a product

- e.g. Electronic cigarette


Marketing Management Tasks4. Remarketing

- Used during fading demand

- Consumers find either no use for the product or better alternatives in the market

- Marketers recreate the demand

- e.g. Cinema halls


Marketing Management Tasks5. Synchro Marketing

- Used during irregular demand

- Seasonal products

- Results in wasteful underutilization of production capacity

- Marketers attempt to streamline the demand to meet supply capacity

- e.g. Hotels at hill stations, flight tickets during peak season


Marketing Management Tasks6. Maintenance Marketing

- Used during robust demand

- Established products

- Does not need efforts to push supplies

- Keep a watch on competition

- Keep sharpening the saw


Marketing Management Tasks7. Demarketing

- Used during overfull demand

- Or when you want to exit certain business

- Supply falls short of demand

- Marketers discourage customers in choosing certain products


Marketing Management Tasks8. Counter Marketing

- Used when demand is considered unwholesome

- Like alcohol, drugs

- Marketers try to destroy demand

Om Shanti

Chapter123 140208001744-phpapp01

Marketing

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