Basics of marketing management

1. MARKETING
MANAGEMENT
SEM II Dr. Hemant
Babhulkar
MBA, MCom, M.Phil.,BJ, Ph.D, LLB, SET
Dr. Panjabrao Deshmukh Institute of Management Technology & Research,
Dhanwate National College, Nagpur

2. Marketing management
 Management
As a Activity (A Process)
As a Terms (A Group)
(As a Activity) :- “Management is a art of getting thing
done through and with the people in formally
organized group”
“ Management is a technique by which
purposes and objectives of a particular human group
are determined, classified and effectuated”

3.  (As a group) : “Management is a group of people, those are
work for common goal may be with intension of profit or not”
Market:
“A Market is a place where ‘n’ number of buyer’s and ‘n’ number
of seller’s come together for exchanging goods and services”

4.  Definition of Marketing:-
“Marketing as the process of planning and execution the
conception, pricing, promotion and distribution of ideas, goods
and services to create exchange that satisfy individual and
organizational objectives” American Marketing Association
“ It is the wide ranging function that link the business with
customer needs and wants in order to get the right product to
the right place at the right time”

5. Company orientation toward the marketplace/ philosophy of marketing/marketing
orientation
 Exchange concept
 It is central ideal of marketing
 Marketing is broader than exchange.
Production Concept
 It is oldest concept in business
 Consumer will prefer product that are
widely available and inexpensive.
 Production Manger concentrates on
achieving high production efficiency, low
costs and mass distribution.
 Example : China Market

6. Product Concept :
Customer will favor those products that offer the
most quality, performance or innovation
features.
Making superior product and improving them
overtime.
Need to manage Price, Distribution,
advertisement & sales properly.
 Example : BMW, Mercedes & All Luxurious Product range.

7. Selling concept :
 Marketer thing that Consumer will buy product if the company
aggressively promote or sell these products.
Marketing Concept :
Focus on Need/wants of target market and
delivering values than competitors.
Focus on customer satisfaction.
Difference between these two concepts
Important Differences of Selling & Mkt. Concepts

9. Core concept of marketing
Needs, Wants and Demand
Target Market, Positioning and
Segmentation
Offerings and Brands
Value and Satisfaction
Marketing & Supply Channels
Competition
Marketing Environment
Marketing Planning

10. SCOPE OF MARKETING MANAGEMENT
Scope of Marketing has a very wide scope it covers all the
activities from conception of ideas to realization of profits.
Some of them as discussed as below:
 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.

11.  Study of Consumer behavior: Marketers
performs study of consumer behavior. Analysis of
buyer behavior helps marketer in market
segmentation and targeting.

12.  Product Planning and development : It includes
the activities of product research, marketing
research, market segmentation, product
development, determination of the attributes,
quantity and quality of the products.

13.  Branding: Branding of products is adopted by many
reputed enterprises to make their products popular
among their customer and for many other benefits.
Marketing manager has to take decision regarding
the branding policy, procedures and implementation
programs.

14.  Packaging: Packaging is to provide a
container or wrapper to the product for safety,
attraction and ease of use and transportation
of the product.

15. Channels of Distribution: Decision
regarding selection of most appropriate
channel of distribution like wholesaling,
distribution and retailing is taken by the
marketing manager and sales manager.

16.  Pricing Policies: Marketer has to determine pricing
policies for their products. Pricing policies differs form
product to product. It depends on the level of
competition, product life cycle, marketing goals and
objectives, etc.

17.  Sales Management: Selling is a part of marketing.
Marketing is concerned about all the selling activities
like customer identification, finding customer needs,
persuading customer to buy products, customer
service, etc.

18.  Promotion: Promotion includes personal selling, sales
promotion, and advertising. Right promotion mix is
crucial in accomplishment of marketing goals.

19.  Finance: Marketing is also concerned about the
finance, as for every marketing activity be it
packaging, advertising, sales force budget is fixed
and all the activities have to be completed with in the
limit of that budget.

20.  After Sales services: Marketing covers after sales
services given to customers, maintaining good
relationships with customers, attending their queries
and solving their problems.

21. MARKETING ENVIRONMENT

22. THE MARKETING ENVIRONMENT
The forces that directly and indirectly influence
an organization’s capability to undertake its
business.
The trading forces operating in a market place
over which a business has no direct control ,but
which shape the manner in which the business
function and is able to satisfy its customers.

23. COMPONENTS OF MARKETING
ENVIRONMENT
 Internal environment : Forces and actions inside the
firm that affect the marketing operation composed of
internal stake holders and the other functional areas
within the business organization.
 External environment
 Macro environment
 Micro environment

24. WHY IS IT IMPORTANT?
 An understanding of macro and micro marketing
environment forces is essential for planning.
 Helps a business to compete more effectively
against its rivals.
 Assists in the identification of opportunities and
threats.
 Enables an organization to take advantage of
emerging strategic opportunities.

26. THE INTERNAL ENVIRONMENT
All factors that are internal to the organization are
known as the 'internal environment'.
'Five Ms‘
•Men
•Money
•Machinery
•Materials and
•Minutes.

27. THE INTERNAL ENVIRONMENT
It includes the following:
 The human resource department.
 The operations department.
 The accounting and finance department.
 The research and development department.

28. External Factors :- Micro environment
 The forces close to the company that affects
its ability to serve.
 It comprises all those organizations and
individuals who directly affect the activities of
a company.
 All factors which impact directly on a firm and
its activities in relation to a particular market.
1. Suppliers
2. The market channel
3. Customers.
4. Competitors
5. Public

29. SUPPLIERS
Suppliers are either individuals or business houses.
.They provide resources needed by the company .
.The developments in the suppliers environment have a
substantial impact on the marketing operations of the
company .
.Companies can lower their supply costs and increase
product quality to gain competitive advantage in the
market.
.supply shortages have to be fully monitored and plans
should be made to avoid it.

30. Market intermediates
 They are either business houses or individuals .
 They help the company in promoting, selling and distributing
the goods to customers.
 They are middlemen, distributing agencies, market service
agencies and financial institutions.

31. Customers
 The target market of the company is usually of five
types:
1.Consumer market i.e. individual and householders
2.Industrial market i.e. organizations buying for producing
other and services.
3.Reseller market i.e. organizations buying goods and
services with a view to sell them to others.
4.Government and other non profit markets. i.e. those
buying goods and services in order to produce public
services.
5.International market i.e. individuals and organizations of
nations other then home land who buy for either
consumption or industrial use.

32. Competitors
 No company stands alone in serving and satisfying the
needs of a customer market. It faces competition.
 This helps the company in facing a host of competitors
with confidence .
 The company in order to come out successfully has to
adopt means which may help it to outmaneuver.
 The competitive environment consists of certain basic
things which every marketing manager has to take note
of.
 Philip Kotler ‘the best way for a company to grasp the
full range of its competition is to take view point of a
buyer.”

33. Public
Public is defined as ‘any group that has an
actual or potential interest in or impact on a
company’s ability to achieve it’s objective.
The actions of the company do affect the
interest of other groups i.e., those who form
general public for the company who must be
satisfied along with the consumers of the
company.
According to Kotler ‘companies must put their
primary energy into effectively managing their
relationships with their customers.

34. Macro environment
Macro environment refers to those
factors which are external to company’s
activities and do not concern the
immediate environment.
It comprises general forces that affect all business activities
in market .

35. Factors affecting Macro environment
1. POLITICAL FORCES
2. ECONOMIC FORCES
3. SOCIAL AND CULTURAL FORCES
4. NATURAL FORCES
5. TECHNOLOGICAL FORCES
6. DEMOGRAPHIC FORCES

36. Political and Legal forces
 Includes laws, government agencies and pressure
groups that influence or limit various organizations and
individuals in a given society.
 Increasing legislation.
 Changing government agency enforcement.
 More emphasis on ethics and socially responsible actions.

37. Economic environment
 The economic environment consists of factors that affect
consumers purchasing and spending power.
 Under economic environment manager generally studies
1.trends of gross national product
2.patterns of real growth in income
3.variations in geographical income distribution.
4.borrowing pattern ,trends and governmental and legal
restrictions.
5.major economic variables

38. Social and cultural forces
 Social responsibility has crept into the marketing
literature as an alternative to the market concept.
 Socially responsible marketing is that business firms
should take the lead in eliminating socially harmful
products

39. DEMOGRAPHIC FORCES
 Demographic data helps in preparing geographical
marketing plans, household marketing plans, age
and sex wise plans.
 It influences behavior of consumers which in turn
will have direct impact on market place.
 A marketer must communicate with consumers
anticipate problems ,respond to complaints and
make sure that the firm operates properly.

40. Technological Environment
 Most dramatic force now shaping our destiny.
 Changes rapidly.
 Creates new markets and opportunities
 Challenge is to make practical, affordable products.
 Safety regulations result in higher research costs and longer
time between conceptualization and introduction of product.

41. Natural Forces
 Involves the natural resources that are needed as inputs
by marketers or that are affected by marketing activities.

42. Natural Environment Trends
 Shortage of raw materials.
 Limited quantities of non-renewable resources.
 Increased pollution.
 Waste disposal, air/water pollutants.
 Increased government intervention.
 Kyoto and other initiatives.
 Environmentally sustainable strategies.
 G.R.E.E.N. movement.

43. Pest Analysis
 A scan of the external macro environment in which the
firm operates can be expressed as a pest analysis.
 The acronym PEST (or sometimes rearranged as
“STEP”) is used to describe a framework for the
analysis of these macro environmental factors.
 A PEST Analysis fits into an overall environmental
scan, which includes Political, Economical, Social, and
Technological environment.

44. PURPOSE OF ANALYSING THE MARKET
 To know where the environment is heading
 To discern which events and trends are favorable
 To assess the scope of various opportunities
 To help secure the right fit between the environment and
the business unit

45. CONTROLLABILITY
 The organization has no control over the macro
environment. It can only respond to the changes
taking place.
 The organization has some degree of influence
over the micro environment but by no means
complete control.
 The organization controls its own internal
environment although this does not mean the
marketing department or marketing manager has
control.

46. Marketing mix

47. Marketing Management function’s
A. Marketing Research & Information:
B. Product & Pricing
C. Planning & Control
D. Promotion (Marketing
Communication)
E. Distribution (Physical distribution)

48. A) Marketing Research & Information
a) Marketing Information
b) Marketing Research Project
c) Marketing Segmentation
d) Distribution Cost Analysis

49. b) Product & Pricing
a ) P r o d u c t R e s e a r c h .
b ) P r o d u c t D e v e l o p m e n t .
c ) P a c k a g i n g .
d ) B r a n d i n g .
e ) P r i c i n g .
f ) W a r r a n t i e s .
g ) A f t e r S a l e s S e r v i c e s .

50. c) Planning & Controlling
a) Sales Forecasting.
b) Marketing Mix.
c) Annual MarketingPlan.
d) Budgeting & control.

51. D) Promotion (Marketing Communication)
a) Internal Marketing.
b) Advertising & Publicity.
c) Sales Promotion device.
d) Exhibitions & Trade Fairs.
e) Public Relations.
f) Government Relations.

52. E) Distribution (Physical Distribution)
a) Channel Choice & Decision.
b) Transport.
c) Warehousing.
d) Insurance.
e) Order Processing.
f) Protective Packaging.
g) Inventory Control.

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