What Are Marketing Management ?
Market refers to the ‘set of potential and actual buyers of a product or service’.
Customers are those people or organisations that seek satisfaction of their needs and wants.
Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.
Features of Marketing
- Needs and Wants
- Creating and Offerings
- Customer Value
- Exchange Mechanism
It is the process of organising, directing and controlling the activities related to marketing of goods and services to satisfy customers' needs & achieve organisational goals.
- Production Concept: The organisation believes that profits could be maximised by producing at large scale which will reduce the average cost of production.
- Product Concept: The emphasis of business firms shifts from large quantity of products to good quality.
- Selling Concept: The focus of business firms shifted to pushing the sale of products through aggressive selling techniques with a view to persuade buyers to buy the products.
- Marketing Concept: The organisation emphasize on identifying needs of the customer and satisfying them better than the competitors to maximise their profits.
- Societal Marketing Concept: The organisation should identify the needs and wants of the target market and deliver the desired satisfaction in an effective and efficient manner so that the longterm well-being of the consumers and the society is taken care of.
Functions Of Marketing
- Gathering and Analysing Information
- Marketing Planning
- Product Designing and Development
- Standardisation and grading
- Packaging and Labelling
- Customer Support Services
- Pricing of Product
- Physical Distribution
Elements of Marketing Mix
The concept of product includes the physical product and the benefits offered by it from customer’s view point.
It is the amount of money which is being paid to acquire the product.
Under this mix, it is being decided that where the firm’s products will be available to the target customers.
It helps in creating the demand of the product.
It is a bundle of utilities, which is purchased because of its capability to provide satisfaction of certain need.
Classification of Products
- Consumer Products
- Industrial Products
Those products which are purchased by the ultimate consumers for satisfying their personal needs and desires. They can be classified further as:
On the basis of shopping efforts involved
- Convenient Products
- Shopping Products
- Speciality Products
On the basis of durability
- Durable Goods
- Non-Durable Goods
Those products which are used as inputs in producing other products. These can be classified into:
- Materials and Plants
- Capital Items
- Supplies and Business Services
The process of giving a name or a sign or a symbol to a product is called branding.
- Brand: A name, term, sign, symbol, design or some combination of them, which is being used to identify the products.
- Brand Name: That part of a brand which can be spoken.
- Brand Mark: It is that part of a brand which can be recognised by customers but which cannot be said.
- Trade Mark: It gives legal protection against other organisations.
Characteristics of Good Brand Name
- Protected legally
It is the act of designing and producing the container or wrapper of a product.
Levels of Packaging
- Primary Packaging
- Secondary Packaging
- Transportation Packaging
Importance of Packaging
- Rising Standards of Health and Sanitation
- Self Service Outlets
- Opportunity for Innovations
- Product Differentiation
Functions of Packaging
- Product Identification
- Product Protection
- Facilitating Use of the Product
- Product Promotion
It is the display of label in a product. It may contain information about the product or warning.
Functions of Labelling
- Describe the Product and specify its contents
- Identification of the Product or brand
- Grading of Products
- Helps in Promotion of Products
- Providing Information Required by Law
Price is the amount paid by the consumer to buy the product.
Factors affecting price determination
- Product Cost
- Utility and Demand
- Extent of Competition in the Market
- Government and Legal Regulations
- Pricing Objectives
- Marketing Methods Used
It helps the organisation in making goods and services are available at right place, at right time to right people without change.
Components of Physical Distribution
- Order Processing
- Inventory Control
It refers to informing potential customers about a product and persuading them to buy it.
Promotion mix refers to combination of promotional tools used by an organisation to achieve its communication objectives.
It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service.
- Paid Form
- Identified Sponsor
- Mass Reach
- Enhancing Customer Satisfaction and Confidence
- Adds to Cost
- Undermines Social Values
- Confuses the Buyer
- Encourages Sale of Inferior Products
It is the personal form of communication and companies appoint salespersons to contact prospective buyers and create awareness about the product.
- Personal Form
- Development of Relationship
Merits of Personal Selling
- Direct Feedback
- Minimum Wastage
Importance to Customer
- Help in Identifying Needs
- Latest Market Information
- Expert Advice
- Induces Customers
Importance to Businessmen
- Effective Promotional Tool
- Flexible Tool
- Flexible Tool
- Minimises Wastage of Efforts
- Consumer Attention
- Lasting Relationship
- Personal Rapport
- Role in Introduction Stage
- Link with Customers
Importance to Society
- Converts Latest Demand
- Employment Opportunities
- Career Opportunities
- Mobility of Sales People
- Product Standardisation
It refers to short- term incentives which are being offered to customers to persuade them to make immediate purchase of a product or service.
Merits of Sales promotion
- Attention Value
- Useful in New Product Launch
- Synergy in Total Promotional Efforts
Demerits of Sales promotion
- Reflects Crisis
- Spoils Product Image
Sales Promotion Techniques
- Product Combination
- Quantity Gift
- Instant Draws and Assigned Gift
- Lucky Draw
- Usable Benefit
- Full finance
Public relations involve a variety of programmes designed to protect or improve a company’s image and its individual products in the eyes of the public.
Role of Public Relations
- Press release
- Corporate Communication
- Building Awareness
- Building Credibility
- Stimulates Sales Force
- Lower Promotion Costs