This document provides an overview of marketing management and objectives. It discusses: 1. Marketing is focused on creating, keeping and satisfying customers through exchange relationships. 2. The major objectives of marketing management are creation of demand, customer satisfaction, market share, generation of profits, and creation of goodwill. 3. The scope of marketing includes market orientation to discover customer needs and tailor products accordingly, as well as analyzing a company's micro and macro environment.

1. Marketing Management-
Unit 1
BY PRACHI AGARWAL

2.  Marketing is the study and management of exchange relationships. Marketing is
used to create, keep and satisfy the customer. With the customer as the focus of
its activities, it can be concluded that Marketing is one of the premier
components of Business Management - the other being innovation.

8. Objectives of Marketing
 Some of the major objectives of marketing management are as follows:
 1. Creation of Demand
 2. Customer Satisfaction
 3. Market Share
 4. Generation of Profits
 5. Creation of Goodwill and Public Image.

9.  Creation of Demand:The marketing management’s first objective is to create
demand through various means. A conscious attempt is made to find out the
preferences and tastes of the consumers. Goods and services are produced to
satisfy the needs of the customers. Demand is also created by informing the
customers the utility of various goods and services.
 Customer Satisfaction:The marketing manager must study the demands of
customers before offering them any goods or services. Selling the goods or
services is not that important as the satisfaction of the customers’ needs.
marketing is customer- oriented. It begins and ends with the customer.

10.  Market Share:Every business aims at increasing its market share, i.e., the ratio of
its sales to the total sales in the economy. For instance, both Pepsi and Coke
compete with each other to increase their market share. For this, they have
adopted innovative advertising, innovative packaging, sales promotion activities,
etc.
 Generation of Profits:The marketing department is the only department which
generates revenue for the business. Sufficient profits must be earned as a result
sale of want-satisfying products. If the firm is not earning profits, it will not be
to survive in the market. Moreover, profits are also needed for the growth and
diversification of the firm.

11.  Creation of Goodwill and Public Image:To build up the public image of a firm
over a period is another objective of marketing. The marketing department
provides quality products to customers at reasonable prices and thus creates its
impact on the customers.
 The marketing manager attempts to raise the goodwill of the business by
initiating image- building activities such a sales promotion, publicity and
advertisement, high quality, reasonable price, convenient distribution outlets,

12. Scope of Marketing

13.  Market orientation is a company philosophy focused on discovering and meeting the needs and
desires of its customers through its product mix.
What is 'Market Orientation'
 Market orientation is a company philosophy focused on discovering and meeting the needs and
desires of its customers through its product mix. Unlike past marketing strategies that
concentrated on establishing selling points for existing products, market orientation works in
reverse, attempting to tailor products to meet the demands of customers. In essence, market
orientation can be thought of as a coordinated marketing campaign between a company and its
customers.

14.  Market orientation is a customer-centered approach to product design. A variety
of research is often conducted to determine what consumers view as immediate
needs, primary concerns or personal preferences. This allows a company to focus
product development funds on the characteristics that are most in demand at the
time in the hope of fulfilling consumer desires through their product choices.

15. Benefits and Risks of Market Orientation
 Market orientation provides for customer service and support improvements geared towards
specific consumer desires, as well. This helps ensure customer satisfaction remains high with the
company as a whole and can function as a way to promote brand loyalty and positive word-of-
mouth advertising. Beyond the consumer stated needs or wants, additional data analysis may
reveal trends or consumer desires that are not specifically expressed. These trends, even when not
specifically expressed, can allow the product to develop in intuitive way, attempting to anticipate
consumer need before it becomes obvious. This can include improvements that the consumer may
not be directly aware of as being an option.
 At times, market orientation may reveal customer desires that are not cost effective to implement.
This leaves the business in a position to have to determine which consumer stated needs will yield
optimum returns for the business while still meeting general customer expectations or needs. This
also promotes long-term development strategy as options that are not cost effective today may
become cost effective down the line.

16. Types of Company’s Environment
 Micro Environment- Factors or elements in an organization's immediate area of operations
that affect its performance and decision-making freedom. Macro Environment- A macro
environment is the condition that exists in the economy as a whole, rather than in a
particular sector or region. In general, the macro environmentincludes trends in gross
domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy.
 Macro Environment- The major external and uncontrollable factors that influence an
organization's decision making, and affect its performance and strategies. These factors
include the economic factors; demographics; legal, political, and social conditions;
technological changes; and natural forces.

17. Examples of Micro Environment
 Customers- The customers are the central part of any business as they tend to attract
and retain most of the customers to generate revenue. Therefore, organizations must
adopt a marketing strategy that attracts the potential customers and retains the
existing customers by taking into consideration the wants and needs of customers and
by providing the after sales services and value-added services.
 Competitors- The competitors of an organization can have a direct impact on
business strategies. The organization must know how to do a competitive analysis of
competitors and have a competitive advantage. An organization must understand,
what value added services their competitor is providing or the unique selling point of
their competitors. How they can differentiate from their competitors. What benefits a
company can offer to the customers which competitors does not offer.

18.  Example
 For Instance, Videocon, BPL, Onida and others are competitors of Philip
in Television Market. The other form of competition is “Product Form” in which
customer seeks different features and functions in a product. For example, a
customer is willing to purchase a two-wheeler car which can come with gears
without gear, automatic or manual. These are the features of product and
services which customer would be considered during the purchase process.

19.  Employees- Skilled employees can help an organization to achieve
organizational goals and objectives. As skilled and experienced employees has
expertise to support organization to get success. This begins with the hiring
process and continues through regular and timely training and development
sessions. The training and development process helps the employees to work
effectively and efficiently in order to achieve the organizational goals, specifically
in service sector.
 Example- To some extent employees affect business environment. If there is low
motivation and low skilled employees, business would suffer as the employees
would be least motivated towards sales.

20.  Suppliers-Actions of a supplier can influence the business strategy, as they
provide the materials for production. For instance, if their services will not
reasonable and timely that will affect the production time and the sales due to
delayed process of production.
 Example-If the supplier increases the prices of raw material they provide to the
company, it will impact the marketing mix strategy of an organization, which will
end-up with the increase in price of finished goods. Therefore keeping a strong
relation with supplier can help a company in getting an edge over competitors.

21.  Shareholders-Shareholders of an organization have an influence as the
company want investors to increase for this they might make a decision to
increase money by buoyant on stock market, i.e. shifting to public from private
ownership. This change will pressure the company as the public shareholders
returns on their investment.
 Example-The shareholders' demand for raise in profit can influence the business
success in longer-run. Therefore, it is important for top management to keep
strong and better relations with shareholders to have a successful business on
long-term basis.

22. Examples of Macro Environment
 Political Factors -In external environment, political factors are Government actions,
rules and regulation. Change in political situation can be a very sensitive issue to a
company. Political factors that affect business are uncontrollable like political
stability, current and impending legislation. The only solution is
to conduct environmental analysis. It will help to know the threats and opportunities
and take precautionary measures as desired.
 Example-More stringent measures are to be made regarding car leases through the
consumer lobby group in congress. The tobacco industry has been receiving too much
attention from the government albeit on a negative note which makes it the next
target. The American firms will find it more difficult to export goods due to the
stringent laws that are being put in place to avoid aiding the enemy. Despite the fact
that policies being made are to benefit an industry by realization of higher profits, the
same could impact negatively on the nation.

23.  Economic Cycles-Companies are enormously sensitive to occurrence of changes in an
economy. Economic factors include inflation rate, currency exchange rate etc.
 Examples-During bad times most of the consumers do not buy new cars, avoid eating out or building a
new house for them and vice-versa. However, we must understand that not all the industries are affected
negatively with the changes in economy. During bad times most of the families cut down their expenses,
they compromise on quality and brands in order to remain in their budget. They limit their savings by
cutting down their extra expenses without affecting their standard of living. In the same way companies
also cut down their expenses when their sales are down.
 US economy was quite strong in the late 90s, and during that time it was quite easy to sell luxurious and
branded items. Currently, the economy fluctuates between increasing strength, stagnation, or slight
decline. Due to this reason Downturns in the economy affects badly to any Firms. For example during
downturns, car manufacturers observe decline in their profit margin and in order to remain in the market
they had to cut down their prices and offer low interest rates while financing. Generally, in good
times, there is a great deal of demand, but this introduces a fear of possible inflation. Therefore, in the
Federal Reserve raises interest rate in order to prevent economy from “overheating”. Due to this increase
interest businesses avoid investing and in result, people tend to make less money.
 During the time of recession, rate of unemployment tends to rise which causes consumers to spend less.
And this often results in a “bad circle,” with more unemployed people and those who lost their jobs due
the recession. Some companies use this situation very wisely and take this opportunity to invest in
since the things can usually be bought more cheaply.

24.  Social Factors-Organizations can be affected by demographics change and
change in customs.
 Example-The demand for baby food has decreased because of birth control.
demand for prepared food has increased with the increase in number of
women. This is an opportunity for few organizations such as fast food
but on other hand it is a problem for manufacturer of furniture with the increase
of unmarried singles, as some people don’t buy furniture until their marriage.

25.  Technological Factors-Technological factors are those variables rely on current,
available and change in technology. These factors may be technological
and process.The changing trends in the advancement of technology are very
rapid. These technological changes can affect business negatively or positively, if
not responded properly. These changes can positively improve business
productivity, cut costs and minimize production and distribution cost.
 Example-For example, Federal Express demand lowered with the invention of
Fax Machine. Record stores have vanished due to no business as people are
towards downloading songs from internet (illegally getting it from friends – Even
US President has confessed this act)

26.  Inflation-Stating explicitly whether the amount being referred is in actual dollar or any other currency to be
the adjusted figure will be necessary. This is because with time a number of economies have faced inflation
crisis which has impacted on the real value of their currencies. For example, a single dollar spent in 2007
have a different value when compared with a dollar in 1960. Therefore, it is becoming increasingly
to state whether a quoted amount is inflation adjusted.
 Example-By use of an example, we suppose that inflation between 1960 and the year 2007 was 1000% on
average, this would imply that the cost would be about ten times more than 47 years ago. However, using
same scenario if inflation from the year1960 to the year 1984 was 500/% cumulatively, this would mean that
the value is fifty cents of the 1960 dollar and if pitted against the 2007 dollar, it would be $2. Notably
important is the fact that inflation is not even but irregular. The cost of some services and products are seen
to be on the rise beyond the average rate of inflation currently. This is apparent especially within the
education sector and the healthcare industries. However, the prices of computers, are seen to decline in
of money that is made in payment for quality and in absolute numbers as well. For instance, a computer
costing $1000 on average but in two-year times the value goes down to $800. Thus, in two years the
computer had depreciated in value by a figure of 20% which could possibly be 30% instead if the value is
based on speed index together with other factors of performance. Therefore, the net deflation within that
period is almost 38.5.

27. Marketing Planning and Implementation