Marketing management Data which we can use to build up a business
- 1. MARKETING MANAGEMENT UNIT-I MR. RATAN KUMAR BEHERA FACULTY IN MANAGEMENT
- 2. MARKET A market is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. According to Philip Kotler A market consists of all the potential customers showing a particular need or want who might be willing and able to engage in exchange to satisfy the need or want.
- 3. MARKETING Marketing is a key management discipline that enables the producers of goods and services to interpret customer wants, needs and desires and then match then delivery to their target consumers.
- 4. MARKETING MANAGEMENT Marketing management means management of all activities related to marketing or in other words we can say , it refers to planning, organizing, directing and controlling the activities which result in exchange of goods and services. According to Philip Kotler, marketing management is “the science and art of exploring choosing the target markets and getting ,keeping ,growing customers through creating, and delivering and communicating superior customer value of management”.
- 5. NATURE OF MARKETING 1)Human Activity: It satisfies the never-ending needs and desires of human beings. 2) 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. It practices market research and surveys to know about consumer’s taste and expectations. 3) Exchange Process: All marketing activities revolve around commercial exchange process. The exchange process implies transactions between buyer and seller.
- 6. CONTINUED…. 4) 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. 5) Marketing is a Legal Process by which Ownership Transfers :In the process of marketing the ownership of goods transfers from seller to the purchaser or from producer to the end user. 6) Marketing is a Managerial Function :According to managerial or systems approach - "Marketing is the combination of activities designed to produce profit through creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market."
- 7. SCOPE OF MARKETING 1) Study of Consumer Wants and Needs Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase. 2) Study of Consumer Behaviour Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in market segmentation and targeting.
- 8. CONTINUED… 3) Consumer Satisfaction The product or service offered must satisfy consumer. Consumer satisfaction is the major objective of marketing. 4) Pricing Decisions: This is the only element of marketing which generates revenue for the firm. Pricing is concerned with pricing policies and strategies, price determination, discounts, commissions etc. 5) Marketing Research: It includes an analysis of nature and types of customers, size of market, customer attitude, buyer behaviour etc. An in-depth analysis of customers and markets is a prerequisite for every marketer to have a successful marketing.
- 9. MARKETING PROCESS In marketing process, the situation is examined to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are taken, plan is executed, and results are monitored. A series of steps that allow organizations to identify customer problems, analyze market opportunities, and create marketing materials to reach the desired audience.”
- 10. STEPS IN MARKETING PROCESS Understanding The Marketplace And Customer Needs And Wants. Researching and selecting target markets Designing Marketing Plan or marketing strategies Developing Marketing Mix Decisions Implementation and Control
- 11. Understanding The Marketplace And Customer Needs And Wants The first step of marketing process is to analysis of marketing opportunities to identify the customer needs. Marketer has to identify the new need and the existing need not satisfied by any product offer or the needs which can be satisfied by better product offerings. This increases long-term customer equity for the firm. You must also keep in mind the budget of both company and customer. To understand the needs of the customer, you must have an insight into a few things. You should: 1. Know the interest of your customers 2. Know how much they can spend on that 3. SWOT analysis etc.
- 12. Researching and selecting target markets At the second stage The company decides about the target, the category of customer markets it wants to serve. Marketer divides the market into various segments of the customer, called market segmentation. Then it goes after specific sections of the market or its target market. They target customers based on their level, timing and nature of demand. Therefore a marketer must know: 1. What is trending in your area? 2. What they really want to buy? 3. Who is your targeted customer? 4. What is the level of need for that product?
- 13. Designing Marketing Plan or marketing strategies Marketing strategy defines the broad principles by which the business unit expects to achieve its marketing objectives in the target marketing. It consists of basic decisions on total marketing expenditure , marketing mix, and marketing location.
- 14. Developing Marketing Mix Decisions The next step of marketing process is deciding the marketing mix. Marketing mix may be defined as the set of controllable marketing variables or activities . At this step elaborated tactical decisions are made for the controllable parameters of the marketing mix. It includes decisions related to product development, product pricing, product distribution and product promotion.
- 15. Implementation and Control At the last stage marketing plan is to be implemented. The marketing manager execute the strategy by converting it operational plans which are achievable within a specific period of time. Marketer has to get the feedback from the market whether the consumer received the desired level of satisfaction or not. Finally the marketing efforts are monitored to adjust the marketing mix according to the marketing changes or customer’s feedback.
- 16. MARKETING SELLING Marketing refers to finding wants of people/customer and fill them. It revolves around the needs and interest of the consumer. Selling refers to creating products and selling them to customers. Selling seeks to convert product into cash. marketing is the method of serving and satisfying customer needs. selling transforms the goods into money. Company first determines customer wants and then figures out to make it. Company first makes the product and then figures out how to sell it. Profit through Customer Satisfaction Profits through sales volume Concentrates on customer needs It concentrates on Product
- 17. MARKETING SELLING Business Planning is Long term regarding new products, tomorrow’s markets, and future growth. Planning is short-run-oriented, regarding today products and markets. Let the seller be aware Let the buyer be aware Perspective is outside in Perspective is inside out The scope of marketing concept is wider. The scope of the selling concept is narrow. This concept gives equal importance to the marketing mix. This concept gives importance on only promotion.
- 18. MARKETING ENVIRONMENT The Marketing Environment includes the Internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround the business and influence its marketing operations. Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly.
- 19. The marketing environment of a business consists of an internal and an external environment. The internal environment is company-specific and includes owners, workers, machines, materials etc. The external environment is further divided into two components: micro & macro. The micro or the task environment is also specific to the business but is external. It consists of factors engaged in producing, distributing, and promoting the offering. The macro or the broad environment includes larger societal forces which affect society as a whole. It is made up of six components: demographic, economic, physical, technological, political-legal, and social- cultural environment.
- 20. INTERNAL ENVIRONMENT The internal environment of the business includes all the forces and factors inside the organisation which affect its marketing operations. These components are: Employees / Man : Employees are the main component of a business who contributes significantly to its success. The quality of employees depends on the training and motivation sessions given to them. Thus, training & Development is crucial to impart marketing skills in an individual. Minutes/time: Time taken for the processes of the business to complete. Machinery: Equipment required by the business to facilitate or complete the processes. Materials: The factors of production or supplies required by the business to complete the processes or production. Money: Money is the financial resource used to purchase machinery, materials, , and pay the employees.
- 21. EXTERNAL ENVIRONMENT The external environment constitutes factors and forces which are external to the business and on which the marketer has little or no control. The external environment is of two types: Micro marketing environment Macro marketing environment
- 22. Micro Environment The micro-component of the external environment is also known as the task environment. It comprises of external forces and factors that are directly related to the business. These include suppliers, market intermediaries, customers, partners, competitors and the public Suppliers include all the parties which provide resources needed by the organisation. Market intermediaries include parties involved in distributing the product or service of the organisation. Partners are all the separate entities like advertising agencies, market research organizations, banking and insurance companies, transportation companies, brokers, etc. which conduct business with the organisation. Customers comprise of the target group of the organisation. Competitors are the players in the same market who targets similar customers as that of the organisation. Public is made up of any other group that has an actual or potential interest or affects the company’s ability to serve its customers.
- 23. Macro Environment The macro component of the marketing environment is also known as the broad environment. It constitutes the external factors and forces which affect the industry as a whole but don’t have a direct effect on the business. The macro- environment can be divided into 6 parts. Demographic Environment The demographic environment is made up of the people who constitute the market. It is characterised as the investigation and segregation of the population according to their size, location, age, gender, and occupation. Economic Environment The economic environment constitutes factors which influence customers’ purchasing power and spending patterns. Physical Environment The physical environment includes the natural environment in which the business operates. This includes the climatic conditions, environmental change, accessibility to water and raw materials, natural disasters, pollution etc. Technological Environment The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements also technological barriers to smooth operation. Technology is one of the biggest sources of threats and opportunities for the organisation and it is very dynamic. Political-Legal Environment The political & Legal environment includes laws and government’s policies prevailing in the country. It also includes other pressure groups and agencies which influence or limit the working of the industry and/or the business in the society. Social-Cultural Environment The social-cultural aspect of the macro-environment is made up of the lifestyle, values, culture, and beliefs of the people. This differs in different regions.
- 24. MARKETING ORGANIZATION It is a group of marketing persons brought together to make decisions on marketing areas like product, price place & promotion. Definition: It can be defined as a formal or informal group of individuals working together to reach quantitative and qualitative marketing objective by making decisions on product, price, place promotion.
- 25. Types of Marketing Organization Functional type of Marketing Organization Product Oriented Marketing Organization Market Oriented Marketing Organization Customer Oriented Marketing Organization
- 26. Marketing mix Product Price Place Promotion