The aim of marketing is to know and understand the consumer so well that that the product or service fits him and sells itself. Accordingly, proper marketing requires the following activities: Marketing begins with identification of the market in which a marketer wants to enter. This process of marketing management takes place “some­where” within the marketing system. Planning helps in accomplishment of objectives in a systematic manner. Chapter 1 Marketing: Definition & Importance All activities involved in creation of time, place and possession utilities. Marketing, here, indeed based on hard selling. In fact, whatever changes marketing management has gone through over the last hundred years, the company has been at the fore-front of those changes among others. It motivates them to buy the goods. The reason behind coordination with other departments is that marketing cannot work in isolation. Determine marketing opportunities which have to be capitalised. The product concept is based on the belief that consumers are motivated to buy those products that offer most quality. As Dr Kotler defines; 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. Planning may be conducted on short term, medium term and long term basis depending upon the requirements. One, when the demand for a product exceeds supply. The channel mix identifies the path or the route through which goods are transferred from sellers to buyers. The key ideas of availability and affordability were found to be necessary but not sufficient to succeed. The marketing concept emphasizes the “pull” strategy”. Instead of making an assumption, The marketing concept finds out what really the consumer requires and acts accordingly to them. Therefore, this logic ignores larger societal effects of such business. Marketing caters to the varied and unlimited needs of consumers. What will be the importance of the organization, customers, and society’s interests? Since then however a combination of the effect of competition and the bargaining power of buyers have the forced the marketers to put the market’s needs first and their own second. Marketing management is a business discipline focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. While pricing a product, managers consider factors such as costs, legal framework, prices charged by competitors and the prices that consumers are ready to pay. Innovative methods must be used to understand the consumer, design an appropriate product and offer it to the consumer. The marketing concept is the concept of competition. An effective control system is essential to measure and evaluate the actual results of the marketing strategy. Marketing activities are based on the premise of “make what the market wants”. Focus on customer needs – The needs of the consumer are studied and these become the basis of all product related activities such as designing, pricing, distribution, packaging etc. Societal marketing originated after it was realized that what is good for an individual customer or a select group may not be good for society. This concept is mostly used in the case of overcapacity, where a firm wants to sell what it makes. Marketing management aims at providing innovative product and services to the customers. The Selling Concept makes poor assumptions. When you think of high-quality products, Apple will be one of the top ones. Due to the increasing importance and share of the service sector in the economies of most developed and developing countries the world economy is characterized as a service economy. We can see Adidas doing great as they continue to support Colin Kaepernick despite pressure from various parties. Marketing policies cover marketing analysis and research, product analysis, marketing channels, personal selling, sales promotion and advertising, pricing and non-price competition. Importance 5. Selling should be preceded by customer study, marketing research and product development. This led to a change in business orientation and product concept came into existence. It deals with creating and regulating the demand and providing goods to customers for which they are willing to pay a price worth their value. Pricing is a complex function of marketing management. Marketing Management is both a science as well as an art. The consumers are the king. Aggressive selling and promotion activities can guarantee sales. With Figure 6 for perspective, we will first examine each of the controllables. Marketing management is a process involving analysis, planning, implementing and control and it covers goods, services, ideas and the goal is to produce satisfaction to the parties involved”. For effective marketing management, the firm must prefer an effective marketing concept. Providing consumer satisfaction – Every organization aims at providing maximum consumer satisfaction by understanding his needs and designing an appropriate product. Therefore, it is very important for a company to be customer-oriented, i.e., to identify their needs and wants and reasonably satisfy those. Selling concept-oriented companies start planning with the factory, focuses on the company’s existing products, and undertakes heavy selling and promoting to produce profitable sales. Typically the selling concept is practiced with unsought goods. A contractual VMS is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. It looks after the marketing system of the enterprise. Production concept could still hold true in industries where consumer buying is predominantly done on the basis of price (they do not attach importance to non-price differentiation) and ease of buying. In 1776 in the Evaluate corporate capabilities on the basis of our strengths and weaknesses. Prices must be set. Profit goals will only be achieved if customers willingly accept product or services. During the first three decades of the twentieth century, more and more industries were adopting mass production techniques. Performance according to plan is duly assured by effective marketing control. 6. All companies must choose the set of channels they think will be most effective. Orientation 11. Marketing management performs the task of converting the potential customers into actual customer. The setting of marketing goals and objectives, 4. All that should be needed then is to make the product or service available” – Peter Drucker. On the other hand, a company can get quite helpful innovative ideas from its customers’ complaints. Feedback of evaluation enables marketing management to revise, adopt, or modify goals and objectives and replan on the basis of feedback of evaluation. Focusing on a particular market does not guarantee a company’s success in the marketplace. The company has appropriate marketing-mix for each target market. Marketing: In this comparison Market is the narrower concept: Marketing is a much wider concept than market: Market is the point of interaction between buyers and sellers: Marketing is the social process by which human needs are identified and eventually satisfied: Market is a … The earlier philosophies were centred on something that belonged inside the firm such as product, technology, production, or sales effort. Accordingly, the first management task is to find an efficient distribution strategy that ensures product availability so that consumers can buy products with ease. Personal selling deals with the selection, supervision, and training of salesmen; the allocation of salesmen to territories; and the evaluation of salesmen. But the aim of marketing is to make selling superfluous. The entire focus should be on the consumer and his needs. (2) Selection and management of marketing channels for distribut­ing the product. Controllable factors are the product, price, promotion and channels of distribution. Evaluation and Controlling of Marketing Activities. Marketing Decision Making 10. Assume, to simplify, that we are concerned only with the man­ufacturing level in a direct sense because the manager we are considering occupies a marketing management position there. They are of the firm belief that product design or improvement aspects are better understood by their engineers or designers than the customers. 2. This process involves measuring the actual performance with the standard and identifying the deviations and taking corrective actions. Marketing management is practiced in every one of them. Profitable sales over the long-run and repeat-purchase by customers are vital to success in marketing. Such a situation is often seen in commodity markets such as sand, cement, and iron ore. Mergers and acquisitions in the field of commodities such as cement, aluminium, and steel are guided by a motive to create large production systems that become instrumental in driving the cost of production down through economies of scale and experience curve effects. Therefore, it is understood that in the product concept, the management fails to identify what business it is in, which leads to the marketing myopia – i.e., short-sightedness on the role of marketing. The main emphasis here is on the product. Marketing Mix is a tool which a marketer uses to formulate a product/service offer for customers. 1996). Initially, when the number of producers was relatively smaller, the concept was to produce and distribute a maximum of the product in an affordable way to the target market. The product concept holds that consumers will favor products that offer the most quality, performance, and innovative features. It is also vital for a company because criticism from a dissatisfied customer can cause the firm’s ruination. The possibilities, as we have seen, are almost unlimited. This means if a customer group demands hard drugs or firearms selling the same then becomes justified. Promotion and advertisement are essential in order to maximise sales. Customers come at the top of the organization and then come front line people who meet, serve, and satisfy customers. Marketing research and marketing information service alone can act as effective tool in all decisions of Marketing Management. It is a very 21st-century concept that truly believes “the customer is king”. This definition suggests that marketing starts with the market, focuses attention on customers’ needs, and attains profit through customer satisfaction with coordinated marketing. It has to remove the deficiencies observed in the actual execution of marketing plans, policies, and procedures. Selling is based on the premise that a consumer can be manipulated and cajoled into buying what is being sold. Related: … This is especially true for things that are perceived to be inessential. 2. It takes an outside-inside view. Marketing Management performs all managerial functions in the field of marketing. Marketing management performs the function of controlling of marketing activities. The Selling Concept assumes –“customers who are coaxed into buying the product will like it. The management process responsible for identifying , anticipating and satisfying customer requirements profitability. Marketing Concept. The supply of manufactured goods was exceeding demand by the early 1930s. Every saw an ad online or TV commercial that you almost can’t escape and hide from? Let us know your feedback. Any company following the selling concept undertakes a high-risk. Reduction in production costs helps the firm to reduce, helping the market size to increase. What do you think about the importance of Marketing Management in business? Therefore, customer satisfaction becomes the first precondition to do business in a competitive scenario. Marketing is the business function that controls the level and composition of demand in the market. Marketing Management Orientations 5 Marketing Management Orientations Production Concept. These core concepts are: From social perspective, drugs are undesirable because their use causes addiction with a host of personal and family ramifications. Features 4. 91 The Marketing Concept . In a similar vein, organizations need philosophy to guide their thinking and behaviour. The selling concept also developed at the same time, and the product concept developed and still predominant in many industries. In this article, we will look at 1) the four P’s, 2) history of the marketing mix concept and terminology, 3) purpose of the marketing mix, 4) key features of the marketing mix, 5) developing a marketing mix, 6) key challenges, and 7) marketing mix example – Nivea.. As suggested by the discussion of the marketing system, there is a complex of more or less uncontrollable forces operating on the manager. Product is the basic element of marketing. IMC is a major strategic concept that is as evolutionary and discursive in its concept as other marketing and management tools. Once the company has full information regarding marketing opportunities, they can formulate marketing strategies in the form of dynamic action-oriented formal plans to achieve mission, goal, and objectives. Selling Concept 4. Functions 6. Here marketing management takes a “customer first” approach. The advice given by Emerson that if you build a better mouse-trap the world would make a beaten path to your door wrongly shifts marketing focus from consumer to product. In many companies promotion decision require much of the marketing manager’s time. Marketing management smoothen the process of exchange of ownership of goods and services from seller to the buyer. Examples of Marketing Concept of Marketing Management Philosophies The success of the marketing concept depends on the enterprise-wide adaptation of marketing culture. Although, in some situations, the production concept is still a useful philosophy. Under the marketing concept, marketing becomes the basic motivating force for the entire firm. The marketing concept holds customer satisfaction as the key to achieving organizational goals. The process of Marketing involves: Choosing a market to target. In this concept, they don’t focus on what customers need. Marketing process is on-going or dynamic and it must adapt itself to the ever-changing environmental needs. Management Guru Philip Kotler defines marketing as “Marketing Management is the analysis, planning, implementation anc control of programmes designed to bring about the desired exchanges with target audiences for the purpose of personal and mutual gain. Management focuses on improving production and distribution efficiency. One interesting point to mention here is that emphasis is given on marketing research, not on market research. The creation of superior quality product cannot be a ‘be all’ strategy. Some of the aspects include opportunity identification by evaluating market size, growth rate, competition, distribution channels, profit potential, and other trends. The seller may sell directly to the buyer or through intermediation of wholesalers and retailers. Distribution process facilitates easy availability of goods and services to the customers at right time and at right and convenient location. Here. Not only must a number of products be priced, but if a marketing channel other than direct-to-user is employed, consideration must often be given to the prices set at each level of the marketing channel. This is usually a very poor and costly assumption. Holistic Marketing Concept; Marketing Concept; Product Concept; Production Concept; Selling Concept The concept of marketing management involves marketing and management. This requires a systematic analysis, planning, implementation, and control of marketing efforts or programmes. Different leadership style are practised to guide the subordinates. Marketing is not an expense free activity. This concept seeks to insert societal interest in the marketing concept so that customer satisfaction does not compromise societal well-being in the long run. It might be called the “law” of marketing manage­ment, like other rules of behaviour such as Aristotle’s Golden Mean and the Golden Rule. On the other hand, societal concept introduces the concept of what economists call ‘externality’. The production concept was common to firms during the early period of industrialization when different products were born. Restaurants and startups do follow the marketing concept. Promotion and advertisement is essential to provide information to the customers about the product, to attract new customers, to provide reminder to customers about the product and to continue purchase, to provide information about product improvement or introduction of new brand. Competitors’ prices typically estab­lish significant limits to the range of choice, but there is usually some discretion. It refers to firm’s communication with the consumers regarding the product. The problem is to sell those products. To ensure customer satisfaction, a company should encourage customer complaints, since it is seen from different studies that 96% of unhappy customers never tell the company about their dissatisfaction. The term is named marketing mix… Roughly, he decides the kind of a product to produce, the kind of a distribu­tion system to use, the price to charge, advertising messages and media, and the salesmen’s message to customers on whom they call. So companies are slowly either fully or partially trying to implement the societal marketing concept. People rarely buy insurance and maintenance contract out of their self-motivation. Which of the following marketing management concepts is most likely to lead to marketing myopia? The marketing concept suggests that a company should focus its attention on marketing rather than production and selling. Marketing mix is the combination of four controllable variables that make a successful marketing programme. “Promotion” is also often used in the trade literature in a restricts sense of special pricing arrangements to retailers and consumers. – Philip Kotler, “Modern marketing concept is a corporate state of mind that insists on the integration and co-ordination of all marketing functions which in turn are welded with the other corporate functions for the basic objective of producing maximum long range corporate profits.” -Felton. A manufacturer should design a new product or improve an existing one strictly keeping in mind the needs, desires etc. Some decisions are concerned with change of an existing product to conform more nearly to the demands of the market. The status of marketing people also changes, and marketing comes in the foreground of the company operation. The Marketing Concept is suitable for almost any type of product and market. 5. What do customers actually want? They also started recognizing the significant changes in the market, in the field of technology, and how to reach and communicate with markets. It can be achieved by a USB Flash drive, SD memory cards, portable hard disks, etc. The concept is that a company can more effectively serve its own objectives if it will integrate the various aspects of its marketing activities explicitly so as to meet the preferences of its customers. The marketing concept reversed the inside-out approach to outside-in approach, which implied that the business of an organization is not dictated by insiders or managers rather is dependent on outsiders or customers. Philip Kotler defines marketing as:. Decision making regarding pricing, selection of promotional mix, selection of distribution channel is taken by the marketing management. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. It is because any contemporary company’s basic goal is to keep its customers happy and make profits through serving and satisfying customers. Therefore, customer satisfaction is an essential starting point for doing business in the current business environment. Sales management should be well integrated with marketing strategy as well as distribution strategy of the company. This helps the management to understand consumer’s needs, wants, preferences and behaviour of the consumer towards firm’s marketing mix strategies. This concept created a kind of product obsession wherein production managers sought to concentrate on quality improvement and built better product than ever before. Marketing is a business function and set of processes involved in creating, delivering and communicating value to customers, followed by managing customer relationships, resulting in mutual benefit for the business and its stakeholders. Let’s overview the 5 basic marketing concepts with this infographic. For instance, there are specialized products that appeal to a limited number of customers like shoes for astronauts or watches for deep divers. In an organisation, marketing concept is used to examine the customer’s needs and make powerful decisions to satisfy those needs, increase the sales, make profits and stand among the opponents. Followers of product concept philosophy keep on improving their products on a continuous basis. If people like Mountain Dew or not, that is debatable, but you can see that PepsiCo is pushing it hard using ads. Advertising is concerned with deciding how much advertising to use, what media to use (newspapers, radio, television, direct mail, billboard, car cards, point-of-purchase display, etc.,); the fre­quency with which the advertisements will appear (daily, weekly, monthly, etc.,); and the message to be employed (this involves the artwork and copy prepared for printed media and the commer­cials prepared for radio and television. Achieving high efficiency in production, low cost as well as distribution on a mass scale is the usual focus of the managers. The product should exactly satisfy the consumer. These days organisations are very serious as far as their motivation policies are concerned. The number of buyers in a market gives rise to its size, which can either be expressed in terms of volume (e.g., number of cars sold in India in a given year) or value (e.g., total car sales expressed in rupee terms). All growth in-casting have an important role for innovation in their marketing plans. It executes the marketing strategy according to market research beginning from product conception to sales. "The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself." 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