What is Marketing Management

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Marketing Management
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                  What is Marketing Management

Definitions and Meaning of Marketing:

  • Based on the American Marketing Association Marketing is the procedure of planning as well as executing promotion, distribution, pricing, the conception of ideas, goods, and services to produce exchanges that satisfy organizational goals.

 

  • Ramaswamy, as well as Namakumari, defines marketing It’s the entire program of interacting business activities designed to plan, market, as well as distribute, need gratifying services and products to existing and potential customers.

 

  • Philip Kotler defines marketing It’s a managerial and social process by which people and groups obtain whatever they need and want via creating, exchanging, and offering items of value with other people.

This particular definition of marketing is by far the most commonly accepted by marketing practitioners and educators.

It highlights the core principles are in the following manner:

Needs,

Wants,

Demand,

Cost,

Value  and

Satisfaction.

And so, we are able to determine that marketing is the procedure of determining the requirements of the market as well as provide the products accordingly in exchange for some value.

This particular procedure mostly consists of 2 parties.

On the one side, marketers are there those go-to resource marketplaces to purchase these materials as well as shape them into good and services for their target customers.

(Resource marketplace means raw material markets, money market, labor markets, etc..,)

On the other side, consumers are there that provide information that is important to the marketers besides money for utilizing different services and products.

This particular simple procedure could be understood by the figure provided below:

  • Corporate orientations towards market place:

Corporate orientations

The notion of marketing has developed through a range of levels from manufacturing orientation to societal orientation.

The contemporary concept of marketing spotlights the satisfaction of customer needs and wants.

Whereas the societal concept cares for the health and happiness of the customer in addition to that of society.

Let’s discuss these concepts one by one.

 

  • The Production Concept:

It’s among possibly the oldest concepts in business. Customers will want those products which are cheaper and available in cost.

The organizations are production-oriented in nature and attempt to achieve higher production effectiveness and emphasize on the wider supply of services and goods.

This particular concept set about in the 1600s with the colonization of America and continued until the later part of the 19th century.

During those days, the main motive of the businesses was to make the product available in order to consumers and then to keep the price low.

During those days, the need for products used to exceeds the supply.

In this specific situation, consumers had been a lot more interested in acquiring the products rather compared to its features as well as quality.

The producers utilized to enjoy the huge economies of scale and this was extremely difficult for the new entrant to enter into the marketplace.

 Henry Ford was the innovator in the 1900s to expand the automobile industry on the foundation of production idea by providing his consumers just a single variant of the car i.e. T model in black color.

However the marketers, after a particular time period, couldn’t get the best of customer patronage.

The main reason was that the customers had been motivated to seek varieties while purchasing.

As a result, the generation idea fails to serve as the proper marketing philosophy for the enterprises.

  • The Product Concept:

The product idea assumes that customers will buy the product that provides them with probably the highest quality, the greatest performance, as well as the many features.

Product orientation concepts a company to try continuously to improve the quality of its products.

Under this particular idea, it’s thought by the managers that customers favor well-made products and could appreciate performance and quality much better.

Organizations which are devoted to the product idea of marketing, think that customers would right away favor for products of quality that is high.

The manager of these organizations invests extensive energy, money, and time on research and development to expose variations and quality in products.

Nevertheless, several of the managers are actually caught up in a love affair with their product and don’t actually realize that the product isn’t needed on the market.

This specific circumstance is referred to as marketing myopia by the great philosopher of marketing Professor Theodore Levitt.

Marketing myopia usually means a crooked and wrong perception of marketing and a short-sightedness about business.

It’s in the type of too much attention to the quality of the product, therefore, leaving different aspects with no due care.

General Motors created a lovely small-sized vehicle with each and every single attribute in it however that has been a whole failure due to the fact at that time, which wasn’t needed with the aid of the customers.

The marketers are able to include some type of attribute to their products but in case consumers are unaware of the availability, just how can they go for purchasing that specific product.

This particular phenomenon gave birth to the next principle i.e. selling concept

  • The selling concept:

The selling concept
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The selling concept is founded on the assumption that consumers are not likely to buy a product unless and until they’re aggressively and actively convinced to do it.

The concept was developed throughout the sights of may academicians and practitioners that until you are making your customers aware of the products.

This particular philosophy keeps the perspective that an organization can not expect its products to get picked up easily by the customers.

Aggressive advertising, private selling, promotional units like free gifts, reductions etc. are commonly used via the groups to rely on this concept.

The organization has to put a particular amount of efforts purposely to push its products.

With this concept, the firm makes the product first and then spells out how you can sell it and make a profit.

The problem with the selling orientation is it doesn’t take customer satisfaction into consideration.

Once the product or service isn’t in a place to fulfill the consumer’s needs, there’s a remote possibility of the repeat purchase.

  • The marketing concept:

Marketing Management

In the 1950s, several marketers began realizing that they can sell far more products with much more ease & comfort.

In case they produced just those products that already had an area in the minds of the customers.

Rather than attempting to sell the products which had already produced, marketing-oriented firms strived to produce those products which were produced based on the requirements of the customers.

The marketing concept focus on which an organization must make an effort to satisfy the requirements of the customers.

Satisfying the consumer needs to be the major focus of all of the organizational activities.

Here rather than concentrating on quality or sale, customers need and desired satisfaction become the premise that is a necessity delivered phenomenon to achieve success in the era of competition.

 In order to determine unsatisfied customer needs, organizations had to go for comprehensive marketing research.

While doing so, it was learned that customers had been very complicated people, possessing a wide variety of innate as well as acquired needs.

Hence, the study of consumer requires has turned out to be the basis of another discipline likewise i.e. consumer behavior.

  • The social marketing concept:

As our society moves through the 1990s, the marketing idea will continue to take on new meanings.

The traditional and old concept of marketing has emphasized and centered on the satisfaction of consumers’ needs and wants to meet the goals and objectives of the organizations.

With this philosophy, the emphasis is being positioned on exactly how certain marketing activities and efforts impact society as an entire in the era of limited resources.

This particular viewpoint puts a question mark whether satisfying consumers need to provide the long-rum intervals of the society or perhaps not.

Hence, the new concept emerged when the societal marketing concept exactly where it’s emphasized that besides satisfying consumer needs and societal welfare.

The marketers have to adopt ethical and social considerations to their marketing practices.

They have to make a sense of balance between the various criteria of organizations’ profits, public interest as a whole.

This particular area has dealt with the different philosophy of marketing which describes the way the field of marketing developed through the periods.

In addition, a student of marketing should understand about marketing management at an introductory level.

Let’s discuss particular problems related to marketing management.

  • Marketing Management

Marketing Management

When marketers engage themselves in the change system with the different events in the market, they’ve to go for a significant amount of work that needs supreme skills on the part of the marketers.

Marketing management takes place when one party is much more actively looking for exchange than the additional party and thinks about the ways of achieving perceived responses from the same.

A lot of authors have strived to explain marketing management though the definition provided by the American Marketing Association is commonly recognized.

The association defines marketing management is actually a process of planning as well as executing the conception, distribution, pricing, and promotion of ideas, goods, and services to create exchanges that satisfy organizational and individual objectives.

By the specified definition, it could be found that marketing management encompasses a set of several activities.

These tasks aren’t limited to companies that will make physical goods but also contains the organizations as universities/colleges, hospitals, charities, and other services organizations.

As the activities of marketing management, a wide range of individual activities can also be considered.

For example, earlier doctors were unwilling to participate in marketing but due to increasing competition, they’ve additionally begun using new means and advertising to promote their clinics and hospitals.

This particular marketing management involves control, implementation, planning, and analysis which covers the activities related to goods, services, and ideas.

For that matter, a student should know about these terms i.e. goods, services, products, and ideas.

As far as the product is concerned it may a bit of good, service or maybe an idea that satisfies a need or even want.

Good is actually a tangible item or maybe object which may be seen and touched whereas service is actually an intangible product that may be felt.

The idea could be described as philosophy or perhaps concepts.

Non-Government Organisations (NGOs) involved in different problems as crime prevention, environmental pollution, and drug prevention, etc., can be referred to as marketing ideas.

The marketing manager is somebody who’s perceived as a demand stimulator for the organizations’ products.

But in fact, his task is much more than this widely used perception of the people.

By this discussion, it could be seen that marketing management inevitably demands management.

Marketing managers are able to manage demand by carrying out research in marketing and then planning the products accordingly.

Additionally, they decide about target markets, pricing, physical distribution as well as the promotion of the product.

Philip Kotler has quoted 8 different states of demand and corresponding function of marketing managers there to.

Let’s discuss there various states of demand one by one.

  • Full Demand:

It’s probable the happiest position for the marketers because at this unique juncture their volume of enterprise face full demand.

In the era of changing task and preferences of the customers, marketers taste is actually maintaining the present level of demand.

Persisting with the quality standards as well as investment in R &D must be the goals at this level.

  • Overfull Demand:

Sometimes a peculiar scenario arises when organizations face a demand which is actually higher than to their current capacity.

For example, in particular, place traffic is often overcrowded.

Because of the announcement of rising fuel prices by the government, people develop the tendency of hoarding and this particular situation leads to overfull demand.

The marketer role in this particular scenario is reducing the demand on a short-term basis by adopting the measure of increasing the prices.

They might additionally adopt the concept of demarketing i.e. bringing down service as well as promotion.

  • Latent Demand:

There might be a type of concealed demand for particular products that are unsatisfied with the currently available products.

In India, demand for fuel-efficient bigger size cars, harmless cigarettes in addition to more cost effective homes for middle-class employees etc. are quite a few of the examples of the proper latent demand.

The marketer’s job is usually to measures the dimensions of the potential market and then have the useful steps towards providing goods and services and so as to fulfill the demand.

  • Negative Demand:

When a specific product is actually disliked by the vast majority of parts of the market, it’s a state of negative demand.

Product as vaccinations, dental work as well as heart surgery, etc. is commonly avoided by the customers due to the negative feeling.

The marketer task is redesigning the promotional program and it is repositioning the products in the mind of the consumers.

  • Irregular Demand:

The demand for particular products varies on the basis of seasonality.

For example, zoos have less public throughout the examination days of the students and overfull in the days of their summer vacations.

Resorts and hotels of specific hill stations are discovered in demand that is great throughout summers but in the offseason, it’s hard to find out a single customer.

At this point, the marketers’ task is maintaining the demand at the very same pattern.

He has to find out some ways such as unique schemes, flexible pricing & discounts in the off-season, as well as through various promotional measures.

  • No Demand:

When the target customers are often unaware of the product or maybe they’re not interested in the product.

The marketer role is first to come up with the target audience conscious then explain describe the way that what they are the advantages of these particular products.

For example, an industrial house might not be conscious about the new technology, along with college students of Haryana might not choose the English language program.

  • Declining Demand:

Every and each product in its life-span faces declining demand.

This particular situation is actually faced by every organization type i.e. from actual physical goods providers to the service organizations.

In these types of circumstances, the marketer has to look into the causes of the decline in demand and must-see if exactly the same product could be carried on in the exact same market with very little modification.

And perhaps when the marketer diversifies in the various other markets to retain the part of earnings.

  • Unwholesome Demand:

This demand relates to a specific category of products as cigarettes, drugs, alcohol, as well as blue movies, etc.

The marketer role is making people conscious about the fatal nature of these products to enable them to provide up these products.

  • Nature of Marketing:

Nature of Marketing
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  • Marketing is customer-oriented:

Marketing starts as well as finishes with the customer.

The task of marketing isn’t simply to satisfy the customer but perhaps to delight him/her.

All of the tasks of an organization should be guided as well as focused on the consumer.

The organizations can not ignore emerging instruments, materials, technologies and new means of organizing the things but with the consideration of consumers.

Thus, marketers must allow their customers to dictate product specifications as well as standards with regard to quality.

This particular job may just be performed whether consumers’ needs are continually monitored.

  • Marketing is actually the delivery of value:

If a customer derives satisfaction from a specific product on the basis of products overall capability and performance is widely known as the value in customers’ belief.

The customers these days create a trade-off among the benefit and cost of the product and they think about the value and price of the products prior to making a decision.

At times they are going to have to give up a specific product to get the other one since the very first one involves a big cost.

As a result, he is going to choose the product which gives him much more value per rupee.

As per De Rose, Value is actually the satisfaction of customer specifications at the lowest possible cost of acquisition, ownership, and use.

Therefore, the organizations’ strategies should be aimed at delivering greater customer value compared to that of their opposition.

  • Marketing is a network of relationships:

The customer is at the center-stage as well as the focus of all the marketing activities.

From the 1990s onwards the focus isn’t simply to identify the needs and delivers it to customers but is actually shifting towards relationship marketing.

Based on Philip Kotler Relationship marketing is the process of creating long-term satisfying relations with important parties as customers, distributors, and suppliers to be able to retain their long-term preference and business.

The marketers that are smart enough to keep their relationship by delivering high-quality products in time, much better services, and fair prices in comparison with their counterparts.

  • Marketing as a separate discipline:

There used to be the days when marketing was viewed as a part of economics.

But today it’s recognized as a full-fledged separate discipline.

It’s not the time when we simply talk of purchase and sales or maybe the quality of the product monopoly.

With the emergence of a modern marketing idea, the problem of environmental safety and green marketing have come up and concerning which a variety of laws have been framed.

Precisely why a specific product is preferred by a consumer along with other declines it to use? The solution has in the study of culture.

Thus, marketing has emerged as a separate discipline and then got its power from similar aspects as statistics, sociology, anthropology, psychology, and law, etc.

  • Marketing is business:

 

When it’s said that marketing is actually business, the contention would be that all tasks begins from marketing i.e. via understanding customer and end up on the customers i.e. understanding customer dissonance.

It indicates the whole business revolves around the marketing.

Based on Peter F. Drecker Marketing is very fundamental that it can not be looked at as a distinct function.

It’s the entire business seen from the perspective of it’s the ultimate result, that’s, out of the customer point of view.

Business achievement isn’t based on the producer but by the customer.

And so, the business seeks customers since they’re the business providers & eventually marketing is business.

  • Scope of Marketing:

Marketing management has turned out to be the subject of growing interest for everyone in today’s scenario.

Thus, it’s of utmost importance to go over the scope of marketing.

It may be understood in phrases of function that a marketing manager performs.

Let’s talk about several of the problems which are undertaken by a marketing manager and so as to elaborate the scope of marketing.

  • Marketing Research:

Marketing Research

While sitting in a company’s office, nobody is able to recognize the needs and wants of the customers.

For that purpose, research has to be completed in analyzing the customer’s needs, preferences, and tastes, the brand image of the products and effectiveness of particular ads, etc.

These are the main aspects of research in which a marketing manager needs the information to achieve success in the market.

They want to be successful in the market because by knowing this information, he takes a better, accurate, and timely decision.

The marketing research not merely collect information regarding a particular issue but also suggest corrective and action-oriented steps.

  • Product Planning and Development:

A product is actually a bundle of utility provided to customers to satisfy their needs.

Through marketing research, a marketer has the ability to know the requirements of the customers.

But what kind of storage as well as transportation is actually needed, it depends upon the nature of the product.

The product has to be based on the requirement as well as must also on the paying capability of the customers.

You will find a number of the decision involved with that approach as a supplier of raw materials, packaging, storage as well as distribution, etc.

  • Pricing:

Among the crucial features of a marketing manager is determining the price of a product.

Price is definitely affected by the cost, services connected to it, government policy, competitors’ prices, and marketers’ necessity of profit margin.

An effective pricing policy is a tremendous aspect to attract customers because the price is the only marketing mix that creates revenue for the organizations.

  • Financing:

Financing of customer purchasing is now an immensely important part of modern marketing.

The marketing manager plays a crucial role in the financial department in this regard as well as consequences thereto.

In the era of global competition when there’s fierce competition and a lot of options are offered to a customer, specific finance schemes have become an essential device to boost the volume of sales.

Since the interest rates have come down considerably, financing facilities have taken the shape of lubricants which facilitates the operation of the marketing machine.

  • Insurance:

When goods and services are replaced from one hand to another, from one place to another place, a lot of risk factors are actually involved.

Marketing has today spread the arms to cover these risks through insurance activities.

National calamities which cause huge losses and could hamper the whole business are in the following manner:

Flood,

Earthquake,

Damage of goods&services as a result of fire,

Accident or

Theft.

The different insurance companies offer protection against these risks by obtaining a nominal amount of premium in return.

  • Advertising:

In this era of the competitive world, advertising is now an immensely important instrument in the hands of marketers.

It will make the customer conscious about the products, makes him curious about the product, and then force him for action and hence promote the sale.

Based on American Marketing Association Advertising is actually a paid form of a non-personal presentation by an identified sponsor.

It’s a non-personnel link between the customer and the marketer.

Through advertising marketers have the ability to position their products in the minds of the customer through different  are in the following manner:

Internet

Window display,

Hoardings,

Radio,

Television,

Magazines, and

Newspapers.

Aside from the above areas, you will find numerous more business areas where advertising activities have these great scopes but aside from business areas.

Marketing has its scope in the non-business or maybe non-profit sectors too.

A student that will try to occupy the front seat is engrossed in doing out marketing.

Churches, hospitals, colleges as well as universities are actually the other non-profit sector where marketing tasks are significantly performed.

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