The marketing has a remarkable change from its primitive barter system to the present day management oriented approach of marketing.
Barter system Production Orientation Sales orientation Management orientation Customer Orientation Evolution process of marketing
Recent marketing innovations • 1.SOCIAL MARKETING: The societal marketing concept calls for a consumer orientation backed by integrated marketing aimed at generating customer satisfaction. • DEMARKETING: It is a situation that may come about as a result of temporary storage due to short run excess demand for a company’s products. • REMARKETING: Finding new customers or create new uses or users for an existing product is remarketing. • OVER MARKETING: It constitutes the striving by a firm to generate increased sales while neglecting quality control, production efficiency and cash flow management.
5 .META- MARKETING: Prof. Kelly EJ, first used this concept .Meta marketing is to designate a new, although related discipline which deals critically with marketing as a discipline. 6. RELATIONSHIP MARKETING :In this approach , marketing has to keep in touch with regular customers , to identify most loyal out of them for providing special services. 7. AUGMENTED MARKETING: A set of benefits in the shape if additional customer services like high tech .services offered to customer in the augmented marketing. 8 .ORGANISATION MARKETING: It consist of certain activities undertaken to create , maintain or ,change attitudes and behavior if target audiences towards an organisation.The activities towards particular people is person marketing.
Difference between selling & marketing SELLING MARKETING 1. It revolves around the needs and interests of the seller. 2. It starts with the existing products of the corporation and views business as a task of some how pushing the existing products of the corporation. 3. Selling seeks profits by pushing the products on the buyers. It means the product is the main item in this activity. 4. Over emphasises the ‘exchange’ aspect with out caring for the value satisfaction inherent in the exchange. 5. It is an approach to derive and attain short term goals. 1. It revolves around the needs and interests of the seller. 2. It starts with the customers, present and potential, and views business as a task of meeting the needs of the customers by producing and supplying products and services that would exactly meet the needs of the customers. 3. Marketing too seek profits-but not through aggressive pushing of the products by meeting the needs of the customers and giving satisfaction to them. It means the consumer and his choices are given prime considerations in this function. 4. Concern mainly with the value satisfaction, that should flow to the customer from the exchange. 5. It represents an integrated approach to achieve long term goals.
6. It is a function that converts the needs into products. 7. For providing better value to the customer, the main emphasises on innovation in every sphere i.e., by adopting the most innovative technology. 8. Consumer determines price: Price determines cost. 9. All departments of the business operate in a highly integrated manner. 10. It is a creation and delivery of a standard of living to society. • 6. It is an activity that converts goods in to cash. • 7. The main emphasises on staying with the existing technology and reducing the cost of production. • 8. Costs determine price. • 9. Different departments of the business operate as a separate water-tight compartments. • 10. It ends with the delivery of goods against money.
Marketing Mix Place Channels Coverage Assortments Locations Inventory transport Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties returns Target market Price List price Discounts Allowances Payment period Credit terms Promotion Sales promotion Advertising Sales force Public relations Direct marketing
The other three P’s are • People • Place(Physical Evidence) • Process
IMPORTANCE OF MARKETING MANAGEMENT • Marketing function is considered important on account of the following contribution: • Marketing concept enables the organization to keep abreast of changes. An organization practicing the concept keeps feeling the pulse of the market through continuous marketing audit, market research and consumer testing. • The purpose of any marketing concept is the satisfaction of consumers. It is the customer who willing to pay for g & s, converts economic resources into wealth, things into goods. All economic activities like production, distribution & consumption are independent on marketing. • Another distinguishing feature of the marketing concept is integrated management action i.e., all the different functions of the business must be tightly integrated with one another, keeping marketing as a pivot. • An efficient marketing set-up increases the volume of sales and thus reduces the cost of distribution of products and services. • A marketing function maintains a regular interaction with the existing and potential consumers to ascertain their needs. • Marketing has been described as a means of helping man as a member of society and as a means of delivering a better standard of life to society as a whole. • It creates an infra-structure of various activities viz., warehousing, insurance, transportation e.t.c. due to which employment opportunities increase.
Scope/Function of marketing management Marketing management sets marketing objectives, developing marketing plans organizes marketing functions, puts marketing plans and strategies in action and monitors the marketing programs in the final analysis. According to the scope of marketing managements powers the following activities like- • Accessing the marketing opportunities. • Planning the marketing activities. • Providing the effective marketing organization. • Organizing and monitoring the stocks at optimum level so that the customer demand may meet without any difficulty. • Organizing and maintaining the effectiveness in the activity of sales promotion, advertisement, credit control and services after sales. • Evaluating and adjusting marketing efforts.
The marketing functions are built around the process of marketing involving concentration, equalization and dispersion. The marketing process • Dispersion • Selling • Transporting • Storing • Grading • Financing • Risk bearing • Dividing • Concentration • Buying or Assembling • Transporting • Storing • Grading • Financing • Risk bearing
Basing on the different classifications given, finally we classified the marketing functions as Marketing Functions • Other functions • Standardizing &grading • Financial • Risk bearing • Market information • Market promotion • Packaging • Product planning & development • Personal selling • Physical • Distribution • Storage • Transportation • Merchandising • (functions ofexchange) • Selling • Buying &advertising
MARKETINGCONCEPT Keegan says “marketing is the process of focusing the resources and objectives of an organization on environmental opportunities and needs…”. It is a concept, a business and a set of objectives ,as given below. a) Marketing concept b) Marketing activities c) Marketing process
Marketing Activities • Product precision • Pricing decision • Distribution decision • Communication decision • Research • Services
Marketing Management Process • Marketing is the process of focusing the resources and objectives of an organization upon opportunities in the environment.
Company orientation towards market place • The production concept • The product concept • The selling concept • The marketing concept • The customer concept • The societal marketing concept
The production concept, holds that consumers will prefer products that are widely available and inexpensive . The product concept, which holds that consumers will favor those products that offer most quality, performance, or innovative features. The selling concept, holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s product. The marketing concept, holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating,delivering,and communicating superior customer value to its chosen target markets. The societal marketing concept, holds that the organizations task is to determine the needs,wants,and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and society's well-being.
The marketing concept • Target market • Customer market • Integrated marketing • profitability
Nature, importance and scope of strategic planning • Serves as a record map for the corporation • Lays down the growth objectives of the firm and also provides the strategies needed for achieving them. • Serves as a hedge against uncertainty arising from environmental turbulence. • Ensures that the firm remains a prepared organization. • Helps the firm understand trends in advance and provides the benefit of a lead time for taking crucial decisions and actions. • Helps avoid haphazard response to environment. • Provides the best possible fit between the firm and the external environment. • Ensures that the firm’s businesses,porducts and markets are chosen wisely. • Ensures best utilisation of the firm’s resources among the product-market opportunities. • Helps build competitive advantages and core competencies. • Prepares the firm to not only face the future but even to shape the future in its favor ;helps the firm influence its mega environs in its favour to the extent possible. • Draws from both intuition and logic.
Major concerns of strategic planning • Strategy Strategy is its concern;not the operational activities. • Integration Integration of all management functions is its concern;not a particular function. • Creating core competencies /competitive advances, Creating long-term,sustainable organizational capability is its concern. • Corporate strategy In one word ,corporate strategy is its concern. • Future Long term dynamics in its concern;not day-to-day tasks. • Growth Direction,extent,place and timing of growth. • Environment The fit between the business and its environment. • Business portfolio Product-market scope and gestures.
Component tasks in strategic planning • Clarifying the mission of the corporation • Defining the business • Surveying the environment • Internal appraisal of the firm • Setting the corporate objectives • Formulating the corporate strategies
Purpose of marketing environment analysis • To know were the environment is heading; to observe and size up the relevant events and trends in the environment. • To discern which events and trends are favourable from the standpoint of the firm, and which are unfavourable;to figure out the opportunities end threats hidden in the environmental events and trends. • To project how the environment –each factor of the environment-will be at a future point of time • To assess the scope of various opportunities and shortlist those that can favorably impact the business • To help secure the right fit between the environment and the business unit, which is the crux of marketing ;to help the business unit respond with matching product –market stratigies;to facilitate formulation of a marketing strategy in the right way-in line with the trends in the environment and the opportunities emerging therein
Factors to be covered under environment analysis 1.Mega/macro environment 2.Environment that is specific to the business • Demographic environment • Socio-cultural environment • Economic environment • Political environment • Natural environment • Technology environment • Legal environment • Government policies • The market/demand • The consumer • The industry • The competition • Government policies(specific to the business concerned) • Supplier-related factors
Factors to be covered under economic environment • General economic conditions • Economic conditions of different segments of the population; their disposable income, purchasing power,etc. • Rate of growth of the economy ,rate of growth of each sector of the economy • Income,prices,and consumption expenditure (size and pattern) • Credit availability and interest rates • Savings rate/capital formation • Inflation rate • Behaviour of capital markets • Foreign exchange reserves • Exchange rates • Tax rates • Prices of important materials • Energy scene(cost,availability,etc.) • Labour scene(cost,skill availability,etc.)
Analysis of the consumer behaviour Factors to be monitored • According to the firm, what is the basic need the product serves? • According to the consumer, what is the need it serves? • What constitute customer value in the business as per their perception? • What benefits do the consumers look for in the product? • Of the many benefits they look for, what are their preferences/priorities/rankings? who are the consumers(number,location,etc.) • Purchasing power of the consumers. • Buying behaviour,buying motives, buying habits. • Personality traits/attitudes • Lifestyles and needs; present position and trends. • Brand loyalty. • Reasons/motives for customer’s patronage of specific brands. • Brand shifting; how loyalties are shifting. • Reactions of the customers to the company’s and competing products. • Who among the competitors remains closest to the customer and why?
THE SEA CHANGE IN THE INDUSTRIAL, BUSINESS AND MARKETING ENVIRONMENT I.ENTERPRENEURIAL FREEDOM VITALISES THE INDUSTRIAL SCENE • Rush of entrepreneurs. • Spate of mergers/acquisition/takeovers; corporate enhance size and synergy. • The diversification Rush. II. FDI GOES UP AND INFLUENCES INVESTMENT PATTERN IN INDUSTRIES III. ASCENDANCY OF MULTINATIONALS IN THE INDIAN MARKETS • MNCs acquire majority equity in their Indian enterprises and JV’s. • Many MNC’s enter India anew. • MNCs become big players even in core industries. IV. BANKING SECTOR COMES UNDER COMPETITIVE ENVIRONMENT • Competitive existence foisted by deregulation. • Onslaught from new private sector banks (NPSBs) with superior technology and aggressive marketing. • Capital markets, FIs, MFs, and NBFCs compete with banks. • Public sector banks, in particular common under severe pressure; they are compelled to operate as viable, commercial institutions. • Travails arising from disinvestment.
V.INSURANCE SECTOR TOO EXPERIENCES COMPETITION, WITH NEWPRIVATE PLAYERS • Constituted IRDA. • IRDA issues licenses/ in-principle clearance to several private players and many of them start operations. VI.CAPITAL MARKETS UNDERGO RADICAL CHANGE • FIIs enter Indian capital markets in a big way. • Foreign brokers closely follow the FIIs. • NBFCs register growth and form alliances with global finance companies. • Growth of private mutual funds. • Indian firms raise capital globally and form alliances with global finance firms. • India’s capital markets get integrated with global capital markets. VII.FINANCIAL SERVICES EMERGE AS A MAJOR BUSINESS • Emergence of many new financial services and financial service companies. • Business firms spot financial services as a business and flat financial service companies of their own. VIII.PRIVATE SECTOR BECOMES THE DOMINANT COMPONENT OF THEECONOMY • Even in core/infrastructure areas, sector after sector, opened up to private enterprises: Oil, mining, telecom, road building, railways, ports, civil aviation, EPZ/SPZ, difference production, all now opened to the private sector. • Import trading becomes a fresh business opportunity for the private sector.
Market segmentation Segmentation is the process of partitioning markets into groups of potential customers with similar needs and/or characteristics who likely to exhibit similar purchase behaviour. The process of dividing a total market into sub group of consumers who exhibit differing sensitivities to one or more marketing mix variables. Market segmentation is a marketing approach that encompasses the identification Of different groups of customers with different needs or responses to marketing activity. the market segmentation process also considers which of these segments to target.
Market Positioning • It is the technique by which marketers try to image on identity for a product, brand, or organization. It is the ‘place’ a product occupies in a given market as perceived by the target market. • Positioning is something that is done in the minds of the target market. • A product position is how potentially buyers see the product. • Positioning is expressed in relative to the position of competitors.