Marketing management, nature of marketing, importance of marketing, Evolution of marketing concept, Marketing environment, Micro environment of marketing, macro environment of marketing, Domestic marketing, international marketing, definition of marketing, definition of marketing management, marketing concepts, types of marketing, components of micro environment, components of macro environment, Calicut university MBA
2. Definition of Marketing Management
The American Association of Marketing define
marketing management as the process of
planning and executing the conception, pricing,
promotion and distribution of ideas, goods and
services in order to create, exchange and satisfy
individual and organizational objectives.
3. Definition of Marketing
“Marketing is an administrative and social
process through which individuals and groups
obtain what they need and desire by the
generation, offering and exchange of valuable
products with their equals”.
Philip Kotler
4. Nature of Marketing
Consumer-oriented: A business exist to satisfy human needs, hence
business must find out what the desire of consumer and thereby
produce goods & services as per the needs of the customer.
Art as well as science: In the technological arena, marketing is the art
and science of choosing target markets and satisfying customers
through creating, delivering, and communicating superior customer
value.
Exchange Process:The exchange process implies transactions between
buyer and seller.
5. Nature of Marketing
Starts and ends with customers: Marketing is consumer oriented and it
is crucial to know what the actual demand of consumer is and the
marketing ends as soon as those goods and services reach into the safe
hands of the customer.
Creation of Utilities: Marketing creates four components of utilities viz.
time, place, possession and form.
Goal oriented: Marketing seeks to achieve benefits for both buyers and
sellers by satisfying human needs.
Dynamic process: Marketing is a complex, continuous and interrelated
process.
6. Importance of Marketing
Marketing Helps in Transfer, Exchange and Movement of Goods: Goods and
services are made available to customers through various intermediaries like
wholesalers and retailers etc.
Marketing Is Helpful In Raising the Standard Of Living Of The Community:
By making available the uninterrupted supply of goods and services to consumers
at a reasonable price, marketing has played an important role in raising and
maintaining living standards of the community.
Marketing Creates Employment: The major marketing functions are buying,
selling, financing, transport, warehousing, risk bearing and standardization, etc.
which are performed by a large number of individuals.
7. Importance of Marketing
Marketing as a Source of Income and Revenue: it is the way through
which the concern could generate revenue or income and bring in
profits.
Marketing helps in Making Decisions: it is confronted with many
problems in the form of what, how, when, how much and for whom to
produce?
Marketing Acts as a Source of New Ideas: Marketing gives scope for
understanding the new demand pattern and thereby produce and make
available the goods accordingly.
8. Marketing concept
The marketing concept is the strategy that an
organization implement understanding the customers
needs and wants, satisfying the same to increase sales
and maximize the profit.
9. Evolution of Marketing Concept
Societal Marketing Concept
Marketing Concept
Selling Concept
Product Concept
Production Concept
10. Marketing Concepts
1.Production concept
Consumers prefer products that are widely available and inexpensive.
The production concept is more operations oriented than any other
concept. Companies adopting this orientation run a major risk of focusing
too narrowly on their own operations and losing sight of the real objective.
11. Marketing Concepts
2.Product concept
Consumers favor products that offer the most quality, performance, or
innovative features. The product concept believes in the consumer and it
says the consumers are more likely to be loyal if they have more options
of products or they get more benefits from the product of the company.
12. Marketing Concepts
3.Selling concept
The selling concept holds the idea- “consumers will not buy enough of the
firm’s products unless it undertakes a large-scale selling and promotion
effort”.
Here the management focuses on creating sales transactions rather than on
building long-term, profitable customer relationships.
13. Marketing Concepts
4.Marketing Concept
Focuses on needs and wants of target markets & delivering value
better than competitors. Here marketing management takes a
“customer first” approach.
Under the marketing concept, customer focus and value are the
routes to achieve sales and profits.
14. Marketing Concepts
5.Societal marketing concept
The societal marketing concept holds “marketing strategy should
deliver value to customers in a way that maintains or improves both
the consumer’s and society’s well-being”.
The Societal Marketing Concept puts Human welfare on top before
profits and satisfying the wants.
It calls for sustainable marketing, socially and environmentally
responsible marketing that meets the present needs of consumers
and businesses while also preserving or enhancing the ability of
future generations to meet their needs.
15. Marketing Environment
According to Philip Kotler, marketing environment refers to
“external factors and forces that affect the company’s ability to
develop and maintain successful transactions and relationships
with its target customers”.
Marketing activities are influenced by several factors inside and
outside a business firm. These factors or forces influencing
marketing decision-making are collectively called marketing
environment. It comprises all those forces which have an impact on
market and marketing efforts of the enterprise.
16. Types of Marketing Environment
Micro Environment
• The company
• Suppliers
• Marketing Intermediaries
• Customers
• Competitors
• Public
Macro Environment
• Demographic Forces
• Economic Forces
• Natural Forces
• Technological Forces
• Political Forces
• Cultural Forces
17. Micro Environment
Micro-environment likewise concerns the inward environment of
the organization and influences marketing as well as all the
departments like management, R&D, finance, Human assets,
purchasing, operations, and bookkeeping.
18. Components of Micro Environment
The company: The organization itself is the first micro environmental
component. The mission statement & long term goals or objectives of the
organization are firstly developed by the top management of the
organization.
Suppliers: They deliver the required resources to all the competing
organizations for the production of goods or services.
Marketing intermediaries: The organizations that assist in promoting,
selling & distribution of products to final customers of specific
organization are called marketing intermediaries and are considered the
utmost factors the micro environments.
19. Components of Micro Environment
Customers:Customers buy the product of the organization for final
consumption. The main goal of an organization is customer
satisfaction.
Competitors: Every organization faces the competition with certain
competitors. So the competing organization should develop such
effective strategies that can influentially position its products in the
competing market.
Public: The last component of micro environment is a public, which
include a group of individuals that can influence the ability of the
organization to accomplish it objectives.
20. Macro Environment
Macro environment involves a set of environmental factors that
is beyond the control of an organization. These factors influence
the organizational activities to a significant extent. Macro
environment is subject to constant change.
21. Components of Macro Environment
Demographic Forces: Demographic environment is the scientific study
of human population in terms of elements, such as age, gender,
education, occupation, income, and location.
Economic Forces: Economic environment affects the organization’s costs
structure and customers’ purchasing power. The purchasing power of a
customer depends on the current income, prices of the product, savings,
and credit availability.
Natural Forces: Natural environment consists of natural resources, which
are needed as raw materials to manufacture products by the
organization
22. Components of Macro Environment
Technological Forces: Technology acts as a rapidly changing force, which
creates new opportunities for the marketers to acquire the market share.
Marketers with the help of technology can create and deliver products
matching the life style of customers.
Political Forces: Political and legal environment consists of legal bodies and
government agencies that influence and limit the organizations and
individuals. Every organization should take care of the fact that marketing
activities should not harm the political and legal environment prevailing in a
country
Cultural Forces: Those actors & forces that affect the basic values,
preferences, perceptions & behaviors of the society are included in the
cultural factor of the macro environment
23. Domestic Marketing
Domestic marketing is the selling of a company’s products within a
local financial market. It deals with only one set of competition and
economic issues which make it more convenient to do.
There are no language barriers in domestic marketing and obtaining
and interpreting data on local marketing trends and consumer
demands is easier and faster to do.
It helps the company make decisions and develop marketing
strategies that are more effective and efficient.
The risks are also lesser with domestic marketing and it needs lesser
financial resources.
24. International Marketing
International marketing is the promotion and sale of a company’s products to
consumers in different countries. It is very complex and requires a huge
amount of financial resources.
Every country has its own laws on business and a company that aims at
entering into business in another country must first know about them.
Consumer tastes and preferences may also differ so marketing strategies must
be formulated to cater to the needs of different consumers.
International marketing requires more time and effort, not to mention its
being very risky too.
