MBA I YEAR I SEMESTER
SUBJECT: MARKETING MANAGEMENT
Unit – I: Marketing Management:
Introduction to Marketing, Market, Marketing Management.
DefinitionofMarketingManagement
According to Philip Kotler, "Marketing Management is the analysis, planning,
implementation and control of programmes designed to bring about desired exchanges with
target audiences for the purpose of personal and of mutual gain. It relies heavily on the
adoption and coordination of product, price, promotion and place for achieving responses.".
Marketing management is a business process, to manage marketing activities in profit
seeking and non profit organizations at different levels of management. Marketing
management decisions are based on strong knowledge of marketing functions and clear
understanding and application of supervisory and managerial techniques.
NatureofMarketingManagement
1. It Combines the Fields of Marketing and Management
As the name implies, marketing management combines the fields of marketing and
management. Marketing consists of discovering consumer needs and wants, creating the
goods and services that meet those needs and wants; and pricing, promoting, and delivering
those goods and services. Doing so requires attention to six major areas - markets, products,
prices, places, promotion, and people.
Management is getting things done through other people. Managers engage in five key
activities - planning, organising, staffing, directing, and controlling. Marketing management
implies the integration of these concepts.
2. Marketing Management is a Business Process
Marketing management is a business process, to manage marketing activities in profit
seeking and non profit organizations at different levels of management, i.e. supervisory,
middle-management, and executive levels. Marketing management decisions are based on
strong knowledge of marketing functions and clear understanding and application of
supervisory and managerial techniques. Marketing managers and product managers are there
to execute the processes of marketing management. We, as customers, see the results of such
process in the form of products, prices, advertisements, promotions, etc.
3. Marketing Management is Both Science and Art
“Marketing management is art and science of choosing target markets and getting, keeping
and growing customers through creating, delivering and communicating superior customer
value.” (Kotler, 2006). Marketing management is a science because it follows general
principles that guides the marketing managers in decision making. The Art of Marketing
management consists in tackling every situation in an creative and effective manner.
Marketing Management is thus a science as well as an art.
,4. Importance of Marketing Management:
Marketing management has gained importance to meet increasing competition and the need
for improved methods of distribution to reduce cost and to increase profits. Marketing
management today is the most important function in a commercial and business enterprise.
The following are the other factors showing importance of the marketing management:
(i) Introduction of new products in the market.
(ii) Increasing the production of existing products.
(iii) Reducing cost of sales and distribution.
(iv) Export market.
(v) Development in the means of communication and modes of transportation
within and outside the country.
(vi) Rise in per capita income and demand for more goods by the consumers
Scope of marketing
1. Setting Marketing Goals:
The prime task of marketing manager is to set marketing goals and objectives. Clearly and
precisely defined objective can help marketing manager to direct marketing efforts
effectively. The goals and objective (whether strategic and operating, or short-term and long-
term) must be suitably communicated with the employees concern. As far as possible,
objectives should be expressed in the quantifiable terms.
2. Selecting Target Market:
Segmenting the total market and selecting the target market is a fundamental task of
marketing management. Modern marketing practice is based on the target market, and not on
the total market. Marketing manager cannot satisfy the needs and wants of entire market. He
must concentrate his efforts only on well-defined specific groups of customers, known as the
target market. All the marketing functions are directed to cater needs and wants of the target
market only. Based on company’s overall capacity, the target market should be selected.
3. Formulating Suitable Marketing Organization:
To implement marketing plan, a suitable organization structure is essential. On the basis of
analysis of type of products, type of market, geographical concentration of market, and many
other relevant factors, appropriate organization must be designed. Various alternative
structures are available, such as product organization, geographic organization, functional
organization, matrix organization, etc. Based upon requirements, the appropriate structure
should be prepared and modified as per needs.
4. Maintaining Healthy Relations with other Departments:
Marketing department needs cooperation from other departments of organization, including
financial department, personnel department, and production department, to satisfy customers
effectively. Their support is considered to be important to satisfy consumers. Thus, for
integrated efforts, marketing manager should try to establish good relations with them.
Likewise, within marketing department, he must establish coordination among various
personnel.
5. Establishing and Maintaining Profitable Relations with Outside Parties:
Alike internal support, the external relations are also extremely necessary. Marketer, in order
to carry out marketing activities effectively, must establish and maintain healthy relations
with various parties, such as suppliers, service providers, government agencies, dealers,
, consultants, and so forth. Without their support, marketing manager cannot carry out
functions successfully. Due to important role of external relations, contemporary marketing
practices can be said as relationship marketing.
6. Marketing Research Activities:
Marketing research is one of the important functions of modern marketing. Marketing
research involves systematic collection, analysis, and interpretation of data on any problem
related to marketing. It provides the manager with valuable information on which marketing
decisions can be taken. Marketing research is essential to know adequately about consumers
and market situation. It is a basic function to satisfy consumers. Marketing efforts are based
on the marketing research information.
7. Sales Management:
Sales management is one of the important functions of marketing management. Sales
management concerns with planning, implementation, and controlling selling efforts. It
performs all the activities directly related to execution of sales.
Sales department carry out selling functions. Sales department formulates sales policies,
ensures adequate quantity of products, maintains sales records, formulates structures for sales
department, manages sales force (salesmen), and controls selling efforts.
8. Exercising Effective Control on Marketing Activities:
Control is essential to ensure that activities are performed as per plan. Control involves
establishing standards, measuring actual performance, comparing actual performance with
standards, and taking corrective actions, if needed. Control keeps the entire marketing
department alert, active, and regular. Marketing manager should set up an effective
controlling system to monitor marketing efforts.
Marketing Management is a social and managerial process by which individuals or firms
obtain what they need or want through creating, offering, exchanging products of value with
each other.
Tasks, Philosophies
Under the marketing management philosophy, we shall study the following five
concepts:
(1) Production Concept
, (2) Product Concept
(3) Selling Concept
(4) Marketing Concept
(5) Societal Marketing Concept
1. Production Concept
Those companies who believe in this philosophy think that if the goods/services are cheap
and they can be made available at many places, there cannot be any problem regarding sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts in
reducing the cost of production and strengthening their distribution system. In order to reduce
the cost of production and to bring it down to the minimum level, these companies indulge in
large scale production.
This helps them in effecting the economics of the large scale production. Consequently, the
cost of production per unit is reduced.
The utility of this philosophy is apparent only when demand exceeds supply. Its greatest
drawback is that it is not always necessary that the customer every time purchases the cheap
and easily available goods or services.
2. Product Concept
Those companies who believe in this philosophy are of the opinion that if the quality of
goods or services is of good standard, the customers can be easily attracted. The basis of this
thinking is that the customers get attracted towards the products of good quality. On the basis
of this philosophy or idea these companies direct their marketing efforts to increasing the
quality of their product.
It is a firm belief of the followers of the product concept that the customers get attracted to
the products of good quality. This is not the absolute truth because it is not the only basis of
buying goods.
The customers do take care of the price of the products, its availability, etc. A good quality
product and high price can upset the budget of a customer. Therefore, it can be said that only
the quality of the product is not the only way to the success of marketing.
3. Selling Concept
Those companies who believe in this concept think that leaving alone the customers will not
help. Instead there is a need to attract the customers towards them. They think that goods are
not bought but they have to be sold.
The basis of this thinking is that the customers can be attracted. Keeping in view this concept
these companies concentrate their marketing efforts towards educating and attracting the
customers. In such a case their main thinking is ‘selling what you have’.
This concept offers the idea that by repeated efforts one can sell-anything to the customers.
This may be right for some time, but you cannot do it for a long-time. If you succeed in
enticing the customer once, he cannot be won over every time.
On the contrary, he will work for damaging your reputation. Therefore, it can be asserted that
this philosophy offers only a short-term advantage and is not for long-term gains.
4. Marketing Concept
Those companies who believe in this concept are of the opinion that success can be achieved
only through consumer satisfaction. The basis of this thinking is that only those goods/service
should be made available which the consumers want or desire and not the things which you
can do.
SUBJECT: MARKETING MANAGEMENT
Unit – I: Marketing Management:
Introduction to Marketing, Market, Marketing Management.
DefinitionofMarketingManagement
According to Philip Kotler, "Marketing Management is the analysis, planning,
implementation and control of programmes designed to bring about desired exchanges with
target audiences for the purpose of personal and of mutual gain. It relies heavily on the
adoption and coordination of product, price, promotion and place for achieving responses.".
Marketing management is a business process, to manage marketing activities in profit
seeking and non profit organizations at different levels of management. Marketing
management decisions are based on strong knowledge of marketing functions and clear
understanding and application of supervisory and managerial techniques.
NatureofMarketingManagement
1. It Combines the Fields of Marketing and Management
As the name implies, marketing management combines the fields of marketing and
management. Marketing consists of discovering consumer needs and wants, creating the
goods and services that meet those needs and wants; and pricing, promoting, and delivering
those goods and services. Doing so requires attention to six major areas - markets, products,
prices, places, promotion, and people.
Management is getting things done through other people. Managers engage in five key
activities - planning, organising, staffing, directing, and controlling. Marketing management
implies the integration of these concepts.
2. Marketing Management is a Business Process
Marketing management is a business process, to manage marketing activities in profit
seeking and non profit organizations at different levels of management, i.e. supervisory,
middle-management, and executive levels. Marketing management decisions are based on
strong knowledge of marketing functions and clear understanding and application of
supervisory and managerial techniques. Marketing managers and product managers are there
to execute the processes of marketing management. We, as customers, see the results of such
process in the form of products, prices, advertisements, promotions, etc.
3. Marketing Management is Both Science and Art
“Marketing management is art and science of choosing target markets and getting, keeping
and growing customers through creating, delivering and communicating superior customer
value.” (Kotler, 2006). Marketing management is a science because it follows general
principles that guides the marketing managers in decision making. The Art of Marketing
management consists in tackling every situation in an creative and effective manner.
Marketing Management is thus a science as well as an art.
,4. Importance of Marketing Management:
Marketing management has gained importance to meet increasing competition and the need
for improved methods of distribution to reduce cost and to increase profits. Marketing
management today is the most important function in a commercial and business enterprise.
The following are the other factors showing importance of the marketing management:
(i) Introduction of new products in the market.
(ii) Increasing the production of existing products.
(iii) Reducing cost of sales and distribution.
(iv) Export market.
(v) Development in the means of communication and modes of transportation
within and outside the country.
(vi) Rise in per capita income and demand for more goods by the consumers
Scope of marketing
1. Setting Marketing Goals:
The prime task of marketing manager is to set marketing goals and objectives. Clearly and
precisely defined objective can help marketing manager to direct marketing efforts
effectively. The goals and objective (whether strategic and operating, or short-term and long-
term) must be suitably communicated with the employees concern. As far as possible,
objectives should be expressed in the quantifiable terms.
2. Selecting Target Market:
Segmenting the total market and selecting the target market is a fundamental task of
marketing management. Modern marketing practice is based on the target market, and not on
the total market. Marketing manager cannot satisfy the needs and wants of entire market. He
must concentrate his efforts only on well-defined specific groups of customers, known as the
target market. All the marketing functions are directed to cater needs and wants of the target
market only. Based on company’s overall capacity, the target market should be selected.
3. Formulating Suitable Marketing Organization:
To implement marketing plan, a suitable organization structure is essential. On the basis of
analysis of type of products, type of market, geographical concentration of market, and many
other relevant factors, appropriate organization must be designed. Various alternative
structures are available, such as product organization, geographic organization, functional
organization, matrix organization, etc. Based upon requirements, the appropriate structure
should be prepared and modified as per needs.
4. Maintaining Healthy Relations with other Departments:
Marketing department needs cooperation from other departments of organization, including
financial department, personnel department, and production department, to satisfy customers
effectively. Their support is considered to be important to satisfy consumers. Thus, for
integrated efforts, marketing manager should try to establish good relations with them.
Likewise, within marketing department, he must establish coordination among various
personnel.
5. Establishing and Maintaining Profitable Relations with Outside Parties:
Alike internal support, the external relations are also extremely necessary. Marketer, in order
to carry out marketing activities effectively, must establish and maintain healthy relations
with various parties, such as suppliers, service providers, government agencies, dealers,
, consultants, and so forth. Without their support, marketing manager cannot carry out
functions successfully. Due to important role of external relations, contemporary marketing
practices can be said as relationship marketing.
6. Marketing Research Activities:
Marketing research is one of the important functions of modern marketing. Marketing
research involves systematic collection, analysis, and interpretation of data on any problem
related to marketing. It provides the manager with valuable information on which marketing
decisions can be taken. Marketing research is essential to know adequately about consumers
and market situation. It is a basic function to satisfy consumers. Marketing efforts are based
on the marketing research information.
7. Sales Management:
Sales management is one of the important functions of marketing management. Sales
management concerns with planning, implementation, and controlling selling efforts. It
performs all the activities directly related to execution of sales.
Sales department carry out selling functions. Sales department formulates sales policies,
ensures adequate quantity of products, maintains sales records, formulates structures for sales
department, manages sales force (salesmen), and controls selling efforts.
8. Exercising Effective Control on Marketing Activities:
Control is essential to ensure that activities are performed as per plan. Control involves
establishing standards, measuring actual performance, comparing actual performance with
standards, and taking corrective actions, if needed. Control keeps the entire marketing
department alert, active, and regular. Marketing manager should set up an effective
controlling system to monitor marketing efforts.
Marketing Management is a social and managerial process by which individuals or firms
obtain what they need or want through creating, offering, exchanging products of value with
each other.
Tasks, Philosophies
Under the marketing management philosophy, we shall study the following five
concepts:
(1) Production Concept
, (2) Product Concept
(3) Selling Concept
(4) Marketing Concept
(5) Societal Marketing Concept
1. Production Concept
Those companies who believe in this philosophy think that if the goods/services are cheap
and they can be made available at many places, there cannot be any problem regarding sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts in
reducing the cost of production and strengthening their distribution system. In order to reduce
the cost of production and to bring it down to the minimum level, these companies indulge in
large scale production.
This helps them in effecting the economics of the large scale production. Consequently, the
cost of production per unit is reduced.
The utility of this philosophy is apparent only when demand exceeds supply. Its greatest
drawback is that it is not always necessary that the customer every time purchases the cheap
and easily available goods or services.
2. Product Concept
Those companies who believe in this philosophy are of the opinion that if the quality of
goods or services is of good standard, the customers can be easily attracted. The basis of this
thinking is that the customers get attracted towards the products of good quality. On the basis
of this philosophy or idea these companies direct their marketing efforts to increasing the
quality of their product.
It is a firm belief of the followers of the product concept that the customers get attracted to
the products of good quality. This is not the absolute truth because it is not the only basis of
buying goods.
The customers do take care of the price of the products, its availability, etc. A good quality
product and high price can upset the budget of a customer. Therefore, it can be said that only
the quality of the product is not the only way to the success of marketing.
3. Selling Concept
Those companies who believe in this concept think that leaving alone the customers will not
help. Instead there is a need to attract the customers towards them. They think that goods are
not bought but they have to be sold.
The basis of this thinking is that the customers can be attracted. Keeping in view this concept
these companies concentrate their marketing efforts towards educating and attracting the
customers. In such a case their main thinking is ‘selling what you have’.
This concept offers the idea that by repeated efforts one can sell-anything to the customers.
This may be right for some time, but you cannot do it for a long-time. If you succeed in
enticing the customer once, he cannot be won over every time.
On the contrary, he will work for damaging your reputation. Therefore, it can be asserted that
this philosophy offers only a short-term advantage and is not for long-term gains.
4. Marketing Concept
Those companies who believe in this concept are of the opinion that success can be achieved
only through consumer satisfaction. The basis of this thinking is that only those goods/service
should be made available which the consumers want or desire and not the things which you
can do.
