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Marketing Management

MeaningThe word market is derived form the Latin word Marcatus meaning goods or trade or a place where business is conducted. The term marketing can be described as a business activity planned at satisfying to a reasonable extent, consumer or customer needs and wants, generally through an exchange process.

Marketing = Meeting needs Profitably

2DefinitionThe American Marketing Association defines marketing As an organizational function and a set of processes for creating , communicating and delivering value to customer and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing Management can be defined as : The art and science of choosing target markets and getting , keeping , and growing customers through creating, delivering, and communicating superior customer value.Definition of Marketing ManagementPhilip Kotler : Marketing is a societal process by which individuals and groups obtain what they need and want through creating , offering , and freely exchanging products and services of value with others.Marketing and selling

Needs, Wants & DemandsMarketing starts with human needs & wantsA human need is a state of deprivation of some basic satisfactionWants are desires for specific satisfiers of needsDemands are wants for specific products that are backed by an ability & willingness to buy themThese distinctions shed light on the frequent criticism that marketers create needs or marketers get people to buy things they dont wantGoods : Constitutes Bulk of most countries production & Marketing Efforts eg. Refrigerators, Washing Machines, Mobile PhonesServices : Eg. Airlines , Hotels, Beauticians, Barbers, Lawyers, Doctors, Management Consultants.Events : Time Based Events E.g Arijit Singh Live Concert, Global Sporting Events Such as World Cup, Olympic.Experiences : It is majorly a mix of Service & Products for E.g Walt Disney, Scary House Etc.What is Marketed

5. Persons : Celebrity Marketing6.Places : Cities , States Regions7. Properties :Real Estate, Shares Etc.8. Organizations : They tend to actively work to build a unique image in the minds of their target publics, Companies Spend money on corporate identity to boost their image and get audience.9. Information: Encyclopedia, 10. Ideas : Social Marketing

ConceptsMarketer is someone who seeks a response (Attention, a Purchase, a Vote , a donation ) from another party called ProspectIf two parties are seeking to sell something to each other, we call them both marketers.Marketing managers are also concerned with demand management.Eight Demand States : Negative Demand : Consumers Dislike the product and even pay a price to avoid it

Eg Vaccination , Dentist Visit.

Marketing tasks: i. Analyse why the market dislike the product. ii. Analyse whether the marketing program consist of program redesign, lower price and more positive promotion

2. No demand: Feature : Target consumers may be unaware and un interested about the product. Example: I. Farmers may be not interested in new farming method. ii. College students may not be interested in foreign language course.

Marketing tasks: Find ways to connect the products benefits of products with the peoples natural needs and interest

Demand States3. Latent demand: Feature: Consumers may share a strong need that cannot be satisfied by any existing product. Example: Harmless cigarette, more fuel efficient car. Marketing tasks: I. Measure the size of the potential market. ii. Develop goods and services to satisfy the demand.

4. Declining demand: Feature: When the demand of the product or service becomes lower. Example: Private colleges have seen application falls.

Marketing tasks: i. Reverse the declining demand through creative remarketing. ii. Analyse the cause of decline and determine whether the demand can be stimulated by new target market.

5. Irregular demand: Feature: Demand varies on a seasonal, daily and hourly basis. Examples: Museums are under visited in week days and over crowded on week days.Marketing tasks: Find ways to alter the pattern of demand through flexible pricing, promotion and other incentives.6. Full demand: Feature: When the organization is pleased with their volume of business. Marketing tasks:I. Maintain the current level of demand in the face of changing consumer preference. ii. Maintain and improve the products quality and continuously measure consumer satisfaction.

7. Overfull demand: Feature: Demand level is higher that the organization can and want to handle. Example: National park is terribly overcrowded in the summer. Marketing Tasks: I. Finding ways to reduce the demand of the products. ii. Raising price. iii. Reducing promotion and service.8. Unwholesome demand: Feature: Those kinds of demands, not acceptable by the society. Example: Cigarettes, hard drinks, alcohol. Marketing tasks: i. Fear message ii. Price hikes. iii. Reduce availabilityMarketsMarket : A Place where Buyers & Sellers gathered to buy and sell goods. Economist describes market as a collection Of Buyers & Sellers who transact over a particular product or product class.

Structure of flows in a Modern Exchange EconomyKey customer marketConsumer MarketsBusiness MarketsGlobal MarketsNon Profit and Governmental Markets

Marketers view sellers as constituting the industry and buyers as constituting the market.

Marketplace, Market space & met marketsMarket place : Physical such as storeMarket Space : DigitalMeta market : A cluster of complementary products and services that are closely related in the minds of customers.Orientation Towards The Market Place Evolution of Marketing ConceptProduction Concept Oldest Concept Believed That Consumers Prefer Available Goods Focus Is On Efficient Production And Mass Distribution This Orientation Makes Sense In Developing Countries Efforts On Reducing Costs To Provide Inexpensive Goods

Product ConceptFocus Is On Making Superior GoodsBelieved That Consumers Prefer Goods With Best Quality & Innovative FeaturesImportance Is Given To Improvising The Product Less Focus On Consumers Need Goods Sell ThemselvesSelling ConceptAggressive Selling And Promotion EffortSell More Stuff To More People And More OftenUsed With Goods Which Buyers Usually Dont Think Of Buying (Unsought Goods) Such As InsuranceSell What Is Made Not What Market Wants Carries High Risk As Can Result Into Negative Word Of Mouth

Marketing ConceptEmerged In Mid 1950sFind Right Product For The CustomersFocus Is On Creating, Communicating And Delivering Superior Customer ValueBuild Profit Through Customer Satisfaction And LoyaltyBegins With Well Defined Market And Ends With Long Term Relationship

Holistic Marketing ConceptAcknowledges That Everything Matters In MarketingComponentsRelationship MarketingIntegrated MarketingInternal marketingPerformance Marketing24252627Marketing environment ( Task environment)The marketing Environment consists of Task Environment and the Broad Environment :Task Environment : Includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and the target customers. In the supplier group there are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transportation and telecommunication agencies.. Distributor and dealers include agents, brokers, manufacturer representatives, and other who facilitate finding and selling to customers. Marketing environment ( Broad Environment)Consists of 6 components :Demographic environmentEconomic EnvironmentPhysical EnvironmentTechnological EnvironmentPolitical Legal EnvironmentSocial Cultural EnvironmentValue and satisfactionValue reflects the sum of the perceived tangible and intangible benefits and the cost to customers.Its primarily a combination of quality , service, and price (qsp) also called as Customer Value TriadValue Increases with quality and service and decreases with price, although other factors can also play an important role in our perceptions of value.Satisfaction reflects a persons judgement of a products ( Performance or outcome) in relation to expectations.Marketing researchIt can be defined as the systematic design , collection, analysis and reporting of data and findings relevant to specific marketing situation facing the company.Companies normally budget marketing research at 1 -2 % of company sales.Marketing Research firms falls into 3 categories :Syndicated Service Research Firms : These firms gather consumer and trade information, which they sell for a fee e.g Nielsen Media Research, SAMI/BurkeCustom Marketing Research firms : These firms are hired to carry out specific projects they design the study and report the findings.Specialty Line Marketing Research Firms : These firms provides specialized research services, the best example is the field service firm, which sells field interviewing services to other firms.Marketing research process