MARKETING MANAGEMENT Introduction and conceptMarket is the place where exchange process done.Exchange – Obtaining something desired for something in return.EXCHANGEobtaining something desired for giving something in return • Simple exchange -A FMCG sell into the marketComplex exchange-A drug manufacturer promotes productsMARKETINGMarketing is the process of:Creating, distributing, promoting, and pricing ofgoods, services, and ideas with the help of people, placesin a dynamic environmentwith the result of satisfaction for both buyer and seller.EVOLUTION OF MARKETING The term marketing has changed and over a period of time today marketing is basedaround providing continuous benefits to the customers.Production conceptMake things and people will buy them. (Early1920s to late 1920s) • Producing more increases sales. • Profits are increased by cutting expenses (scientific management). • Works if demand exceeds supply.
Product conceptAchieving marketing success through product attributes. • Achieve profit by good quality product • Product excellence, improved product, and modified product. Sales concept (early 1930s) Increase sales by using various sales techniques • Sales are increased with greater selling efforts. • Profits are increased by selling more. • Works if there is a lot of people who need what you have and they arent aware of many choices.Marketing concept (After 2ed world war)Sales and profits are increased by better meeting customers needs.Customer satisfaction is the major aim of the marketing concept. • Marketing is A managerial philosophy that an organization shouldtry to satisfy customers needsthrough activitiesthat allow the organization to achieve its goals.Marketing concept essentially represent a shift in orientation. • From production orientation to marketing orientation. • From product orientation to consumer orientation. • From sales orientation to satisfaction orientation.
Features of marketing conceptThe marketing concept has four major features. 1.Consumer oriented 2.Integrated management with marketing function 3.Consumer satisfaction 4.Relation with other organizational goalsSocietal concept Focus on welfare of society, as well as the business and its customers. Need to balance 3items o Company profits o Customer wants o Societys interestsThe difference between short-term consumers wants and long term consumer welfare.
Take an exercise on SMART here Business Objectives A simple acronym used to set objectives is called SMART objectives. SMART stands for: 1. Specific – Objectives should specify what they want to achieve. 2. Measurable – You should be able to measure whether you are meeting the objectives or not. 3. Achievable - Are the objectives you set, achievable and attainable? 4. Realistic – Can you realistically achieve the objectives with the resources you have? 5. Time – When do you want to achieve the set objectives? Some Business Objectives: There are a number of business objectives, which an organization can set: Market share objectives: Objectives can be set to achieve a certain level of market share within a specified time. E.g. obtain 3% market share of the mobile phone industry by 2006. To increase profit: An objective maybe to increase sales 10% from 2004 – 2005. To survive: The hard times the business is currently in. To grow: The business may set an objective to grow by 15% year on year for thenext five years.