KEY CONCEPT OF MARKETING MANAGEMENT- MARKETING MANAGEMENT

KEY CONCEPT OF MARKETING MANAGEMENT

BY

SMART LEARNING

CONTENTS 

  1) INTRODUCTION 

  2) DEFINITION

  3) CONCEPT OF MARKETING

  4) BENEFITS OF MARKETING CONCEPT

  5) CONCLUSION

  6) BIBLIOGRAPHY

                     

INTRODUCTION

 The term ‘market’ originates from the Latin noun ‘marcatus’ which mean ‘a place where  business is conducted’  a layman somewhat similar connotations  the word ‘market’ which brings to his mind the vista of place where the buyers and sellers personally interact and   finalise deals. However for the students of marketing it has wider and deeper implications.

  It  is  not  merely a  place of  exchange but an arrangement  that provides an opportunity of  exchanging  goods  and  services for money. in  this  context Philip Kotler has defined the  term  market as “an arena  for  potential  exchanges.”    

  

DEFINITION 

    “A  total  system of interacting business activities  designed to plan, price , promote and distribute want- satisfying products and services to present  and  potential  customers.”

-           William J. Stanton

  American  marketing association defined marketing as “ the performance of business  activities that direct the flow of goods and services from producer to consumer or user”                                                      

   “A  social and managerial process by which  individuals and groups obtain what they needs want through creating and exchanging products and value with others”

                                                                                                               - Philip Kotler 

    “An integrated system of action that creates value in goods  through the creation of from place, time, and ownership utilities”

                                                                                                             - Buskirk Richard

                                                     

CONCEPT OF MARKETING

1) The exchange orientation: Marketing involve exchange of a product between a saller and a buyer usually based on money. But  modern marketing is not merely an exchange  operation . Marketing has now a much wider connotation. It covers search of unmet customer wants, formulation  of marketing strategies marketing mix ,creative selling and advertising, serving the customer and so on. all these other vital ingredients of marketing are conveniently forgotten  in exchange oriented marketing approach.

2) The product orientation: Management firmly believes that if the product has superb features , quality and performance, customer response is bound to be favorable and all promotion efforts are needless. This was the marketing philosophy till 1930.over-emphasis on product excellence may lead a marketer

 

To ignore many other aspect of customer needs and desires. Consumer for whom the product ismeant may be ignored. This is  called  the phenomenon of marketing myopia or short- sightedness.

3) The production orientation: Company sells what it can make. The focus is on performance and cost . The product line is usually narrow. The price is based on production and distribution cost.

 Technical   research enables   product   improvement and cost cutting in the production process. packaging is expected to protect  the  product and minimize cost. Credit is regarded as  a necessary evil. The producer is interested only to minimize bad debt losses. Promotion   is  adopted   only  to  give  emphasis  on  product features, quality and price. this concept can work only in a seller’s market. in a buyers’ market it  fails to retain market under keen competition. American luxury car market was captured by Japanese and European cars around 1980.

4) The sales orientation: Buyers market for many commodities brought about sales- orientation in marketing. It points out that a company cannot secure enough customer response to its products without high- pressure salesmanship, aggressive advertising and intensive sales promotion. Sales orientation gives emphasis on increasing sales volume even  at the cost of consumer satisfaction and service. Many marketers adopt this approach in selling unsought or unwanted goods. The selling concept is found in the sale of books insurance and also in auto sales. We also have selling concept at the time of election faithfully followed By all political parties. Sales orientation also exhibit marketing myopia.

5) The marketing concept: Marketing concept as a customer-oriented marketing philosophy of  the entire business organisation has four premises

1)Customer orientation :- the  essence  of  modern  marketing concept is “the firm must take its marching order from the market and it must produce what the market needs.” All elements of  business  should be geared toward the customer satisfaction. corporate  plans, programmes  and operations  must be  focused around customer needs and desires.

2) Marketing information system:-  the  marketing concept also emphasizes the role of information as the key to both customer satisfaction and profitability. customer demand can never be satisfied without integrated  marketing  programms  based  upon Adequate and accurate information about customer needs and competition. Information is a vital resource in planning-action-control process of management .

3) Integrated marketing activities:- systems approch adopts a unified view  of the  study of  marketing.  All marketing activities must be properly integrated and coordinated to accomplish a set objectives.

4) Dual objectives:- marketing concept advocates serving the consumers and maximising profits at the same time. These objectives, though conflicting can be reconciled. Guaranteed route to profits  is through customer satisfaction. Profit is a by-product of supplying what the  customer wants. Marketing concept is a mere lip service for those firms who have not yet resolved this conflict.

 5) The social marketing concept: the  social marketing concept is based on the following

1) The marketer has to fulfill the customer demand and also to contribute to enrichment or quality of life .

2) The marketer shall not offer a product to consumer if it is not in the best interests of consumers.

3) The marketer will offer long-run consumer and public welfare.

4) The integrated marketing plans and programmes shall duly consider consumer-citizen wants. social welfare and corporate needs i.e. sustained economic growth  without   ecological   imbalances   and  disturbances. In essence widened marketing concept will enable  marketing  management  to  create  and deliver not only material standard of living but also  healthy lie in the universe free from environmental degradation. 

BENEFITS OF MARKETING CONCEPT

1) Long-term success is assured to an enterprise only If it recognizes that the needs of the   market are paramount.

2) It  enables the firm  to  move  more  quickly  to capitalise on market opportunities. Marketing risks can be reduced only by knowing and understanding the market.

3) Customer needs, wants and desires receive top consideration in all business activities.

4) Greater attention is giving to  the  product planning and development so that merchandising can become more effective.

5) Demand  side of  the equation  of  exchange is honored more and supply is adjusted to changing demand.  Hence,  more  emphasis  is  giving  to   research and innovation. 

6) Marketing  system  based on the  marketing concept  assures  integrated view  of  business operation  and  indicates  interdependence  of different departments of a business organisation.

7) Interests of the enterprise and society can be harmonized as profit through service is emphasized.

8) Marketing information and research is now an  integral part of the marketing process and it is a  managerial tool in decision-making in the field of marketing.

 

CONCLUSION

1) Under market concept there is a shift

 (A) from product/business to customer

(B) from production to market

 (C) from supply to demand

(D) from sales volume to profit

(E) from more  selling  to  customer satisfaction and

 (F) from  internal  orientation to external orientation.

 Under marketing concept supply becomes the function of demand. Demand  is the controlling factor and demand analysis becomes the foundation of all marketing function.

BIBLIOGRAPHY

1) ESSENTIAL OF MARKETING MANAGEMENT

S.A SHERLEKAR

P.N REDDY

H.R APPANNAIAH

               - HIMALAYA PUBLISHING HOUSE

2) PRINCIPLES AND PRACTICE OF MARKETING IN INDIA

           DR. C.B MAMORIA     

           R.L JOSHI 

           DR. N.I MULLA

3) MARKETING MANAGENET

                  S.A SHERLEKAR   

           - HIMALAYA PUBLISHING HOUSE