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Marketing - Definition & Importance, Concepts & Marketing Management Tasks

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Brahmakumari MBA 2nd Year
Marketing Management
Chapter 1, 2 & 3

Publicada em: Marketing, Negócios, Carreiras
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Marketing - Definition & Importance, Concepts & Marketing Management Tasks

  1. 1. Chapter 1 Marketing: Definition & Importance All activities involved in creation of time, place and possession utilities. The process of Planning & Executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association The management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing
  2. 2. Chapter 1 Marketing: Definition & Importance - Market vs Marketing Market is an arrangement to provide an opportunity to exchange goods. Marketing is sum total of all those activities that are related to flow of goods from production to consumption. - Marketing, Selling & Merchandizing Marketing is a broader concept which is driven from customer’s demand. Selling is one part of marketing which deals with persuading customers to buy products that are available with seller. Merchandizing refers to the process offering a variety of products to a retail consumer in a manner which stimulates demand.
  3. 3. Chapter 1 Marketing: Definition & Importance IMPORTANCE OF MARKETING 1. Marketing helps to achieve, maintain and raise the standards of living - Marketing is means through which production and purchasing power are converted into consumption. - Better marketing  Mass production - Mass production  Low cost - Low cost  More buying power  Higher standard of living
  4. 4. Chapter 1 Marketing: Definition & Importance IMPORTANCE OF MARKETING 2. Marketing Increases employment opportunities - Marketing involves various functions / subfunctions (Buying, Selling, Transport, Warehousing, Financing, Risk management etc) - These functions create need for different specializations - About 30-40% population depends directly or indirectly on marketing
  5. 5. Chapter 1 Marketing: Definition & Importance IMPORTANCE OF MARKETING 3. Marketing increases national income - More purchasing power  increase in national income 4. Helps maintain economic stability & development - By maintaining demand supply balance
  6. 6. Chapter 1 Marketing: Definition & Importance IMPORTANCE OF MARKETING 5. Link between producer & consumer 6. Removes imbalance of supply & demand by transferring surpluses 7. Helps create utilities of time, place & possession
  7. 7. Chapter 1 Marketing: Definition & Importance IMPORTANCE OF MARKETING – Business Firms 1. Marketing Generates Revenue, by generating sales & thereby profits 2. Marketing helps decision making process (what, when & how much to produce, store or transport) 3. Helps change management & innovations
  8. 8. Chapter 2 Marketing Concepts 1. Exchange Concept - Exchange is only a small part of the total marketing process. - Other parts of marketing like customer orientation, satisfaction, value creation, creative selling etc are not covered
  9. 9. Chapter 2 Marketing Concepts 2. Production Concept - Production in large volume, at low cost will be acceptable to customers - Concentrates on production efficiency - May do well in distribution - Rarely appreciated by customers
  10. 10. Chapter 2 Marketing Concepts 3. Product Concept - Focuses on design and quality of products - Believes that customers will automatically buy products of high quality - R&D is essential element - Do not bother to study the market & consumer in depth
  11. 11. Chapter 2 Marketing Concepts 4. Sales Concept - Believes that customers need to be persuaded to buy the products - Involves advertising, large scale promotions, publicity, discounts, public relations etc. - Does not take care of the need of the customer
  12. 12. Chapter 2 Marketing Concepts Sales v/s Marketing Marketing determine future needs and has a Approach strategy in place to meet those needs for the long term relationship. Sales makes customer demand match the products the company currently offers. fulfill customer's wants and needs thru Focus products and/or services the company fulfill sales volume objectives can offer. Horizon Longer term Short term Once a product has been created for Identifying customer needs (research), a customer need, persuade the Scope creating products to meet those needs, customer to purchase the product to promotions to advertise said products. fulfill her needs
  13. 13. Chapter 2 Marketing Concepts Sales v/s Marketing Marketing Sales Strategypull push ConceptMarketing is a wider concept Sales is a narrower concept Marketing shows how to reach to Priority the Customers and build long lasting relationship Selling is the ultimate result of marketing. Sales is the strategy of meeting needs in an opportunistic, Marketing targets the construction individual method, driven by of a brand identity so that it human interaction. There's no Identity becomes easily associated with need premise of brand identity, fulfillment. longevity or continuity. It's simply the ability to meet a need at the right time.
  14. 14. Chapter 2 Marketing Concepts 5. Marketing Concept - Starts with determination of consumer needs - Ends with satisfaction of these needs - Organizational activities revolve around customer - Products & Services are designed to serve customer needs - Satisfied customer will only produce profits
  15. 15. Chapter 2 Marketing Concepts Features of Marketing Concept 1. Consumer Orientation 2. Integrated management action 3. Consumer Satisfaction 4. Realizing organizational goals including profits
  16. 16. Chapter 2 Marketing Concepts Benefits of Marketing Concept 1. Long Term success 2. Faster penetration 3. Better Products 4. Boosts creativity 5. Integrated functions 6. Mostly in profits 7. Better growth of employees 8. Contributes to overall growth of the society
  17. 17. Chapter 2 Marketing Concepts Dilemma of Marketing Concept 1. Customer Orientation v/s Product standardization 2. Customer Orientation v/s Profits 3. May ignore social welfare at times 4. Constrains innovation, at times
  18. 18. Chapter 3 Marketing Management Tasks Responsibilities of Marketing Management 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Market analysis Set Goals Forecast sales & profits Strategies, policies & procedures Evolve appropriate marketing mix Organize marketing activities Organize resources Participation in product planning Managing Supply chain After Sales activities
  19. 19. Chapter 3 Marketing Management Tasks Marketing Management Tasks 1. Conversional Marketing - Used during negative demand - Customer dislikes the product - May even pay to avoid the product - It is a rare condition - e.g. Waste Water
  20. 20. Chapter 3 Marketing Management Tasks Marketing Management Tasks 2. Stimulational Marketing - Used during No demand - Customer is indifferent to the product - Task of converting no-demand into positive demand - Connect the product with existing need - Create environment where need is felt - e.g. Mushrooms
  21. 21. Chapter 3 Marketing Management Tasks Marketing Management Tasks 3. Developmental Marketing - Used during Latent demand - Consumers share need for something which does not exist - Opportunity for Marketer to develop a product - e.g. Electronic cigarette
  22. 22. Chapter 3 Marketing Management Tasks Marketing Management Tasks 4. Remarketing - Used during fading demand - Consumers find either no use for the product or better alternatives in the market - Marketers recreate the demand - e.g. Cinema halls
  23. 23. Chapter 3 Marketing Management Tasks Marketing Management Tasks 5. Synchro Marketing - Used during irregular demand - Seasonal products - Results in wasteful underutilization of production capacity - Marketers attempt to streamline the demand to meet supply capacity - e.g. Hotels at hill stations, flight tickets during peak season
  24. 24. Chapter 3 Marketing Management Tasks Marketing Management Tasks 6. Maintenance Marketing - Used during robust demand - Established products - Does not need efforts to push supplies - Keep a watch on competition - Keep sharpening the saw
  25. 25. Chapter 3 Marketing Management Tasks Marketing Management Tasks 7. Demarketing - Used during overfull demand - Or when you want to exit certain business - Supply falls short of demand - Marketers discourage customers in choosing certain products
  26. 26. Chapter 3 Marketing Management Tasks Marketing Management Tasks 8. Counter Marketing - Used when demand is considered unwholesome - Like alcohol, drugs - Marketers try to destroy demand
  27. 27. Om Shanti

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