Marketing Management (CP-204) BU, Bhopal unit-1

1. CONCEPT: MARKETING
MANAGEMENT
Marketing management is 'the art and science of
choosing target markets and getting, keeping,
and growing customers through creating,
delivering, and communicating superior customer
value. The concept reviews the process used to
determine what products or services may be of
interest to customers and the strategy to use for
marketing mix. It also explores the process of
understanding, creating and delivering value to
targeted business markets and customers.

2. Definition
 Philip Kotler & Keller - "Marketing management is
the art and science of choosing target markets and
getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value“
 Philip Kotler- “the analysis, planning,
implementation and control of programs designed to
bring about desired exchanges with target markets for
the purpose of achieving organizational objectives”.

3. Nature of Marketing
 The Nature of Marketing (or Modern marketing) may
be studied under the following points:
 Human activity: Originally, the term marketing is a
human activity under which human needs are satisfied
by human efforts. It’s a human action for human
satisfaction.
 Exchange Process: All marketing activities revolve
around commercial exchange process. The exchange
process implies transactions between buyer and seller.
It also involves exchange of technology, exchange of
information and exchange of ideas.

4.  Marketing is an Integrated Process: Marketing is
not a single activity. It is rather a coordination of
several inter-related activities. The interaction
between different activities gives a unique
character to marketing. Marketing is a managerial
process in so far as it involves the functions of
planning and control. Marketing is also a social
process as it is concerned with the satisfaction of
human needs and this is one of the most important
Characteristics of Marketing.

5.  Consumer-oriented: A business exist to satisfy human
needs, hence business must find out what the desire of
customer (or consumer) and thereby produce goods &
services as per the needs of the customer. Thus, only those
goods should be produce that satisfy consumer needs and at
a reasonable profit to the manufacturer (or producer).
 Art as well as science: In the technological arena,
marketing is the art and science of choosing target markets
and satisfying customers through creating, delivering, and
communicating superior customer value. It is a technique of
making the goods available at right time, right place, into
right hands, right quality, in the right form and at right
price.

6.  Starts and ends with customers: Marketing is consumer oriented and
it is crucial to know what the actual demand of consumer is. This is
possible only when required information related to the goods and
services is collected from the customer. Thus, it is the starting of
marketing and the marketing end as soon as those goods and
services reach into the safe hands of the customer.
 Creation of Utilities: Marketing creates four components of utilities
viz. time, place, possession and form. The form utility refers to the
product or service a company offers to their customers. The place
utility refers to the availability of a product or service in a location
i.e. Easier for customers. By time utility, a company can ensure that
products and services are available when customers need them. The
possession utility gives customers ownership of a product or service
and enables them to derive benefits in their own business.

7.  Goal oriented: Marketing seeks to achieve
benefits for both buyers and sellers by
satisfying human needs. The ultimate goal of
marketing is to generate profits through the
satisfaction of the customer.
 Guiding element of business: Modern
Marketing is the heart of industrial activity
that tells what, when, how to produce. It is
capable of guiding and controlling business.

8.  System of Interacting Business Activities: Marketing is
the system through which a business enterprise,
institution or organization interacts with the customers
with the objective to earn profit, satisfy customers and
manage relationship. It is the performance of business
activities that direct the flow of goods and services
from producer to consumer or user.
 Marketing is a dynamic process. series of interrelated
functions: Marketing is a complex, continuous and
interrelated process. It involves continuous planning,
implementation and control.

9.  Marketing is Pervasive: marketing is required in business as well in social
and other organizations. In other organizations, marketing is necessary for
spreading socially useful ideas and programs family planning, adult
education, communal harmony, national integration, environmental
protection, etc. Such marketing is called social marketing.
 Know Your Market: It is important to know your market and your
customers. If you are advertising a product for elderly citizens, you
wouldn’t want to advertise in certain markets or on certain radio stations or
during certain television shows. Knowing who you might be advertising to
is of a great help to get more customers. Easier said than done actually, but
if you know your market it doesn’t have to be that hard.
 Know Your Customers: This goes along with number 8. Not only do you
have to know your market, you also have to know your customers,
possible customers and your customer base. For example, if you are
advertising car repair supplies, you might want to advertise on sports talk
stations instead of an all ladies channel

10. Marketing environment
 A marketing environment encompasses all the
internal and external factors that drive and
influence an organization's marketing
activities. Marketing managers must stay
aware of the marketing environment to
maintain success and tackle any threats or
opportunities that may affect their work

11. .
 A company's marketing environment includes every element
that may affect its ability to connect with its customers. This
can include internal elements such as resources, equipment
and a company's corporate structure. It can also include
external components like existing customers, delivery
platforms and top competitors. Both internal and external
conditions can affect how a customer responds to a business
and determine how a business might grow. Some benefits of
understanding your marketing environment include: Assisting
you in understanding the company's competitors and the
market
 Supporting you in identifying your current and potential
customers
 Helping you determine future marketing plans
 Aiding you in assessing current trends

12. Types of marketing
environments
 Here are the three main types of marketing
environments:
 Internal marketing environment: Marketing
professionals work with the resources,
company values, systems and processes that
exist within a company. These influence the
tasks that a company's marketing and
advertising teams complete and how
effectively they can create campaigns and
content to be competitive in a market.

13.  External microenvironment: An external
microenvironment covers the relationships
outside of the company. A company's external
contacts may include customers, suppliers or
other outside agencies.
 External macro environment: The term
macro environment refers to the market or field
in which a company performs. While macro
factors may affect the entire industry, they
rarely have a direct impact on a specific
company.

14. 7 elements of macro-marketing
environments
 1. Demographic environment
 Demography is the study of populations. The
demographic environment for a company
encompasses the people who are part of a specific
market. This environment includes the size and
density of a particular population and the common
occupations people have. It also covers the age, race
and gender of prospective customers in a
demographic group. Understanding the company's
demographic environment can help you adjust
marketing strategies, develop products and target
advertising effectively. Some factors that companies
might monitor to determine their demographic
environment include population growth, population
shifts and economic class shifts.

15. 2. Economic environment
 A company's economic environment refers to
the factors that influence consumer buying
habits and the company's performance. A
company's economic environment may
fluctuate based on government funding, credit
availability, market trends, interest rates and
shifts in the global economy. For example, an
economic recession could negatively affect a
business's profits, but an economic surplus
might encourage customers to make larger
purchases.

16. 3. Natural environment
 A natural environment, or physical environment, refers to both the
location a business operates and the place it sources any natural
resources it needs. For example, a lumber shortage is a natural
marketing environment that may affect a construction business.
Here are a few common factors that impact the natural environment
of a business:A shortage or surplus of raw goods
 A fluctuation in the cost of energy
 A change in the quality of air
 Natural disasters
 Climate change
 A change in government policies
 Resource availability can often increase production costs, which
may raise product prices and reduce a customer's purchasing
ability. If a business is aware of its natural environment, it can adjust
its processes and budgets accordingly.

17. 4. Technological environment
 A technological environment includes a specific
market, technological equipment and innovative
practices and products. Technology like laptops,
automated machines and social media can all
improve an organization's productivity and reach.
In this type of marketing environment, it's
important for companies to understand customer
behavior. This can provide them with basic market
information and help them determine if they need
to develop additional technology to follow market
trends. Companies may also gather information
about customer behavior to help them evaluate
and update their technology regularly.

18. 5. Political environment
 Changes in a country's national or local
political situation can modify a company's
external marketing environment. Politics might
determine tariffs, regulations and other
standards that affect the cost of purchasing
goods and conducting business operations.
Political environments may sometimes
influence the global economy, which can alter
the behavior of a market.

19. 6. Social environment
 A social environment refers to the way companies
and consumers respond to social experiences.
For example, an organization might donate a
portion of its earnings to nonprofits or government
agencies that help communities in need.The
values, opinions and beliefs of a potential
customer may change based on what they
experience, who they interact with and what
values they observe in a company. Learning about
the customers' social needs and how it affects
their shopping behaviors may help the company
develop more effective advertising campaigns.

20. 7. Cultural environment
 Similar to social environments, a cultural
environment refers to the way local communities
interact with each other and your brand.
Depending on the region, this type of marketing
environment can vary widely. Some factors that
influence a cultural environment include people's
opinions about their community, other social
groups and the company. For this reason,
identifying and monitoring your customers'
opinions can help the company adapt quickly to
cultural shifts. This can help improve the success
of the company's marketing efforts and show how
the company's values align with the culture of its
customers.

21. 6 elements of micro-marketing
environments
 Micro-marketing environments often have a
direct impact on business operations. Learning
about the components of microenvironments
can help a company decide how to handle
conflicts and improve relationships with
external partners and consumers. Here are
some elements that comprise a micro-
marketing environment:

22.  1. Suppliers
 Suppliers provide raw materials, services or
goods to a company. The prices, service
availability and product quality that a supplier
offers can affect the cost and condition of products
that customers purchase.Companies often
consider their suppliers to be their partners and
may expect suppliers to commit to delivering
quality goods to customers. Researching a variety
of suppliers can help the company determine
which one may provide the product quality and
prices your customers are seeking.

23. 2. Distributors and resellers
 Distributors help companies store and deliver their
goods, often using warehouses. They also assist
organizations by delivering products safely and on
time. They may represent a specific brand,
especially if they deliver to different
outlets.Resellers may also deliver goods, but they
often purchase them from a company first before
selling them for a profit. For example, most
retailers are resellers. To select the right reseller
to work with, a company could consider which
retailers best represent its brand and how that
retailer might help it reach its target market.
Companies often choose both distributors and
resellers that have similar company values.

24. 3. Partners
 Partners are organizations that a company
collaborates with to develop a product, deliver a
service or provide a promotion. Typically, the
members of a partnership include two or more
companies that may operate in similar industries.
However, a company may sometimes partner with
a business from a different industry to expand its
customer base.For example, a frozen food brand
may partner with a soda company to offer
consumers a discount when they purchase
products from both brands. Each company has its
own microenvironment and macroenvironment. In
a partnership, the behavior of one company can
directly affect the marketing environments of the
other.

25. 4. Customers
 Customers exercise a major influence on a
company's marketing environment.
Companies may collect information about
customer behaviors and opinions to help
inform future business decisions.To manage
this aspect of its marketing environment, a
company may monitor the changes in
customer preference and behavior and adjust
its offerings as needed. For example, if a
company receives negative feedback about a
product, it might alter its product development
practices.

26. 5. Competitors
 A company's competitors are part of its
microenvironment because they directly affect
daily business operations. A company can
determine its position in the market to decide
on strategies that can help it outperform its
competition. Competing businesses often
share customers, so it's helpful to monitor how
the competitors are succeeding to understand
ways that the company you work for might
improve.

27. 6. The public
 The public includes any person who might
engage with the company. The public can also
include potential investors and people who
refer new customers to the business.
Understanding the public as a group of
potential customers can help you target new
markets to increase brand awareness.

28. Environmental Scanning
 The environment of a business is extremely
dynamic in nature. It is always in a flux, i.e.
constantly changing. Which means that the
future of the business is also ever changing.
And the organization must keep a close at its
environment via environmental scanning. Let
us learn the environmental scanning meaning.

29.  In any business organization, there is an internal and external
environment. They comprise all the factors that can affect the
business of a company in any way. And they also present
opportunities for the business to grow and threats that may harm
the business. So these environments need constant monitoring.
This is where environmental scanning comes into the picture.
 Environmental scanning meaning is the gathering of information
from an organizations internal and external environments, and
careful monitoring of these environments to identify future threats
and opportunities. It is the analyses of all factors that may affect the
future of the organization.
 Now that we know the environmental scanning meaning, let us see
the purpose. The purpose of this process of environmental scanning
is to provide the entrepreneur with a roadmap to the changes likely
to happen in the future. So this way they can adapt the business to
overcome the threats and capitalize on the opportunities coming
their way.


30. Importance of Environmental
Scanning
 1] SWOT Analysis
 As we saw previously in the environmental
scanning meaning, it is a complex process. The
close study of the internal and external
environment of an organization will reveal some
very valuable information, i.e. the strengths,
weaknesses, opportunities, and threats of a
company. Let us take a brief look.
 Strength: After analysis of the internal
environment of a company, we will be able to
identify the strengths that give the company a
competitive advantage. The entrepreneur can use
this information to maximise these strengths and
earn more profits.

31.  Weakness: Study of the internal environment also
point out the weaknesses of the company. For the
growth and stability of the company, these
identified weaknesses must be corrected without
delay.
 Opportunity: Analysis of the external environment
helps with the identification of possible
opportunities. The entrepreneur can prepare to
capitalize on these.
 Threats: Analysis of the external environment will
also help in the identification of any business
threats from competitors or any other factors. The
company can come up with a strategy to diffuse
such threats or minimize its impact.

32. 2] Best Use of Resources
 Environmental scanning helps us conduct a
thorough analysis and hence leads to the
optimum utilization of resources for the
business.
 Whether it is capital resources, human
resources or other factors of production, their
best use and utilization is very important for
any business.
 Environmental scanning will help us avoid any
wastages and allow for the most effective and
economical use of these resources.

33. 3] Survival and Growth of the
Business
 It is a very competitive world and for any
business to survive and thrive it is a difficult
task. But if the business employs all the
techniques of environmental scanning it can
gain a significant advantage.
 It will allow the firm to prepare for future
threats and opportunities while at the same
time eliminating their weaknesses and
improving on their strengths.

34. 4] Planning for Long Term
 A business must have a plan for both short
term and long term. The planning of long-term
objectives can only occur after proper analysis
and environmental scanning meaning. This will
help the entrepreneur plan the necessary
business strategy.

35. 5] Helps in Decision Making
 Decision making is the choice of the best
alternative done by management.
Environmental scanning allows the firm to
make the best decision keeping in mind the
success and growth of the business. They
point out all the threats and weaknesses. And
they also identify the strengths of the firm.