2. MMAARRKKEETTIINNGG MMAANNAAGGEEMMEENNTT
SSeessssiioonn II
Overview of Marketing Functions & Concepts
SSeessssiioonn IIII && IIIIII
Elements of Marketing Management
SSeessssiioonn IIVV
Sales Management
SSeessssiioonn VV
Distribution Strategies & CSM
SSeessssiioonn VVII
Introduction to Market Research & its role
4. WWhhaatt iiss MMaarrkkeett??
• PPllaaccee CCoonncceepptt – a convenient meeting place where
buyers & sellers gather together for exchange of
goods.
• AArreeaa CCoonncceepptt – it is an economic concept. Any
area providing for price-making forces to operate
for exchange of goods becomes a market.
• DDeemmaanndd CCoonncceepptt – a group of people having
unmet needs, purchasing power to make their
demand effective & will to spend their income to
fulfil those needs.
9. MMEETTHHOODDSS OOFF MMAARRKKEETTIINNGG OOFF CCOONNSSUUMMEERR GGOOOODDSS
CCoonnvveenniieennccee GGooooddss SShhooppppiinngg GGooooddss SSppeecciiaallttyy GGooooddss
1 Numerous outlets Limited outlets Limited outlets
2 Quick sales
turnover
Medium turnover Low turnover
3 Wide spread sales Selective distribution Exclusive distribution
4 Sale through
wholesaler &
retailers
Direct sale to retailer Direct sale to retailer
5 Sales promotion &
advertisement
not very important
Sales promotion &
advertisement very
important
Sales promotion &
advertisement
essential
6 Packaging plays an
important role in
sales promotion
Packaging has minor
role
Packaging has no role
10. MMAARRKKEETTIINNGG
WWhhaatt iiss MMaarrkkeettiinngg??
MMaarrkkeettiinngg iiss aa ttoottaall ssyysstteemm ooff bbuussiinneessss,, aann oonnggooiinngg
pprroocceessss ooff::
(1) DDiscovering & translating consumer needs & desires
into product & services – through suitable planning
(2) CCreating demand for products & services – through
promotion & pricing
(3) SServicing customers demand – through planned
distribution system with the help of marketing channels
(4) EExpanding the market in face of keen competition
In short, modern marketing begins with the customer -
not with product cost, sales or technological landmarks
- & ends with the customer satisfaction & social well-being.
11. HHooww ddoo wwee ddeeffiinnee MMaarrkkeettiinngg??
MMaarrkkeettiinngg CCoovveerrss ––
SSeeeekkiinngg – This is the first function of marketing.
Purpose is to discover the customers & customers’
needs. Market opportunity is revealed through
environmental analysis.
MMaattcchhiinngg –– Customer demand is analysed in context
of organizational resources & environmental limitations
– competition, government regulations, prevailing
economy status etc.
PPrrooggrraammmmiinngg – Formulate marketing program –
marketing mix – covering product, price, promotion &
physical distribution strategies.
12. On the basis of customer driven marketing approach
& concept of strategy, Marketing can be defined as:
‘A system of integrated business activities designed
to develop strategies & plans to the satisfaction of
customers’ wants in selected market segment.’
13. SSAALLIIEENNTT FFEEAATTUURREESS OOFF MMAARRKKEETTIINNGG
Marketing is both consumer oriented as well as
competition oriented.
It starts with customer & ends at customer by satisfying
their needs.
It is the most important function of business
management.
Long-term objective of marketing is profit
maximization thro’ customer satisfaction.
It is an integrated process which is based on strategies
& models.
It must deliver goods & services to customers’
satisfaction in exchange of money.
16. MMAARRKKEETTIINNGG PPRROOCCEESSSS
Marketing Environment comprises of -- 1. Government 2. Competitors
3. Suppliers 4. Consumerism 5. Mass Media of Communications etc.
MMaarrkkeett AAnnttiicciippaattiioonn
CCuussttoommeerr DDeemmaanndd tthhrroo’’ MMaarrkkeettiinngg rreesseeaarrcchh
Product
Distribution
Price
MMaaPPrrrrookkddeeuuttcciitntngg
GGooooddss
FFllooww
GGooooddss
FFllooww
PPrroodduucceerrss CCuussttoommeerrss
MMiixx
Promotion
MMaarrkkeett OOffffeerriinngg
EExxcchhaannggee ssoommeetthhiinngg ooff vvaalluuee
MMoonneeyy FFllooww
17. MMAARRKKEETTIINNGG FFUUNNCCTTIIOONNSS
Contactual – Searching for buyers & sellers.
Merchandising – Matching products to customer needs
& desires (market requirement)
Pricing – Determine optimum price.
Promotion – Motivating the buyer to favour particular
firm & its products.
Physical Distribution – Transportation, warehousing,
inventory control etc.
18. CCOONNCCEEPPTT OOFF MMAARRKKEETTIINNGG
Six distinct concept of ‘Marketing’ have
evolved since the industrial revolution.
EEXXCCHHAANNGGEE OORRIIEENNTTEEDD CCOONNCCEEPPTT
PPRROODDUUCCTT OORRIIEENNTTEEDD CCOONNCCEEPPTT
PPRROODDUUCCTTIIOONN OORRIIEENNTTEEDD CCOONNCCEEPPTT
SSAALLEESS OORRIIEENNTTEEDD CCOONNCCEEPPTT
MMAARRKKEETTIINNGG OORREEIINNTTEEDD CCOONNCCEEPPTT
SSOOCCIIAALL MMAARRKKEETTIINNGG CCOONNCCEEPPTT
19. EEXXCCHHAANNGGEE OORRIIEENNTTEEDD –– This is an old concept of
marketing & primarily involves exchange of
product & money between a seller & a buyer. Vital
elements of modern marketing like marketing
strategies, marketing mix, creative selling,
advertising etc. are not given due importance in
this kind of concept.
PPRROODDUUCCTT OORRIIEENNTTEEDD -- Management works on the
concept that superior features, quality &
performance of a product alone will create
favourable response in customers. Over-emphasis
of product excellence at times ignores several
aspects of customer needs & desires.
20. PPRROODDUUCCTTIIOONN OORRIIEENNTTEEDD –– Focus is on product
performance & cost. Customer is attracted by
maintaining low product price which is usually
achieved by keeping production line narrow. This
concept works only in ‘Sellers’ Market’ & not in
‘Buyers’ Market’.
SSAALLEESS OORRIIEENNTTEEDD –– Emphasis is laid on high
pressure salesmanship, aggressive advertising,
intensive sales promotion activities etc. to
achieve high sales volume at times at the cost of
customer satisfaction & service. This is generally
adopted to sell less wanted goods.
21. MMAARRKKEETT OORRIIEENNTTEEDD –– In this the business
philosophy is to make & sell what customer wants to
buy. All business activities thus revolve round the
primary goal of satisfying customer needs. Broadly
the guidelines for adopting this concept are as
follows:
CCuussttoommeerr OOrriieennttaattiioonn – take marching order
from the market.
MMaarrkkeettiinngg IInnffoorrmmaattiioonn SSyysstteemm – vital for
planning-action-control process of management.
IInntteeggrraatteedd MMaarrkkeettiinngg AAccttiivviittiieess – adopt system
approach to integrate & coordinate all business
activities to accomplish the set of objectives.
DDuuaall OObbjjeeccttiivvee – ensure customer satisfaction &
simultaneously maximize profit.
24. SSeelllliinngg VVss MMaarrkkeettiinngg PPeerrcceeppttiioonn
WWhheerreeaass iinn mmaarrkkeett--oorriieenntteedd ccoonncceepptt,, mmaannaaggeemmeenntt hhaass
tthhee rreessppoonnssiibbiilliittyy ttoo ccrreeaattee vvaalluuee--ssaattiissffyyiinngg ggooooddss &&
sseerrvviicceess,, iinn sseelllliinngg ccoonncceepptt,, uunnddeerr mmaassss pprroodduuccttiioonn,, aallll
eeffffoorrttss aarree ffooccuusseedd oonn pprroodduuccttiioonn && ggrreeaatteerr eemmpphhaassiiss oonn
ssaalleess ttoo ggeenneerraattee pprrooffiittss.. CCoonnttrraasstt bbeettwweeeenn sseelllliinngg
ccoonncceepptt && mmaarrkkeettiinngg ccoonncceepptt:: --
Selling focuses on seller’s needs, marketing on buyer’s
needs.
Selling is pre-occupied with seller’s need to convert
product into cash; marketing goes with the idea of
satisfying customer’s needs by means of the product &
whole cluster of things associated with creating,
delivering & finally consuming it.
Selling aims at profit thro’ sales volume; marketing aims
at profit thro’ serving customer demands.
25. FOCUS MEANS OBJECTIVES
Products
Something that
has to be sold
to the customer
Selling &
Promoting
Profits
through
Sales Volume
FOCUS MEANS OBJECTIVES
Products
To fill in
Customer needs
As per their choice
Integrated
Marketing mix
Profits
through customer
satisfaction
((AA)) TTHHEE SSEELLLLIINNGG CCOONNCCEEPPTT
((AA)) TTHHEE MMAARRKKEETTIINNGG CCOONNCCEEPPTT
OVERALL CHANGE IN PERCEPTION OF MARKETING
26. SSOOCCIIAALL MMAARRKKEETTIINNGG CCOONNCCEEPPTT ––
It is a broadened marketing concept. In this the
management balances three crucial factors –
Customer demand satisfaction.
Public interest (social awareness)
Profitability
27. This concept is bbaasseedd oonn ffoolllloowwiinngg pprreemmiisseess –
The marketer will fulfill customer demand & also
contribute to enrichment of quality of life.
Marketer will not offer a product to customers if
it is not in best interest of customers.
Marketer will offer long-run consumer & public
welfare activities.
Integrated marketing plans & programs will duly
consider consumer citizen demand. These should a
healthy mix of corporate needs & social welfare
encompassing sustained economic growth without
disturbance to social & ecological balances.
28. EESSSSEENNCCEE
MMaarrkkeettiinngg CCoonncceepptt --
Under marketing concept there is a shift (1) from product/
business to customer (2) from production to market (3) from
supply to demand (4) from sale volume to profit (5) from
more selling to customer satisfaction (6) from internal
orientation to external orientation.
Supply becomes the function of demand. Demand is the
controlling factor & demand analysis becomes the foundation
of market functions.
There are four elements of demand management: (1)
demand analysis based on market research (2) product mix
based on demand (3) promotion mix to stimulate demand (4)
distribution mix to service demand.
This concept is applicable to any organization – profit/non-profit.
It can eliminate marketing myopia.