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Marketing Management MP-106 Vardhaman Mahaveer Open University, Kota Marketing Management 284 Course Development Committee Chairman Prof. (Dr.) Naresh Dadhich Vice-Chancellor Vardhaman Mahaveer Open University, Kota Convener and Members Subject Convener and Co-ordinator Prof. P.K. Sharma Professor of Management Vardhaman Mahaveer Open University, Kota 1. Prof. P.N. Mishra 6. Prof. R.K. Jain Professor, Professor (Retd.), Institute of Management Studies, JLN Institute of Business Management, Devi Ahilya University, Indore Vikram University, Ujjain 2. Prof. Kalpana Mathur 7. Prof. Ipshita Bansal Professor, Professor, WISDOM, Deptt. of Management Studies, Banasthali Vidhyapeeth, Banasthali J.N.V. University, Jodhpur 8. Prof. Karunesh Saxsena 3. Prof. Nimit Chaudhary Professor, Professor, Faculty of Management Studies, Indian Institute of Tourism & Travel Mohan Lal Sukhadia Univeristy, Udaipur Management, Gwalior 9. Dr. Mahesh Chand Garg 4. Prof. Kamal Yadav Associate Professor, Professor, Haryana Business School, School of Management Studies, Guru Jambeshwar University of Science & IGNOU, New Delhi Technology, Hisar 5. Prof. Gitika Kapoor 10. Dr. R.K. Jain Professor, Assistant Professor, R.A. Podar Institute of Management, Vardhaman Mahaveer Open University, University of Rajasthan, Jaipur Kota Editing and Course Writing Editor Prof. H.B. Bansal Haryana Business School, Guru Jambeshwar University of Science & Technology, (Hisar) Writers Ms. Bhumija Chauhan (Unit No. 1,2,3) Dr. Vivek Sharma (Unit No.12) Department of Management, Institute of Management, Studies, The IIS University, Jaipur Devi Ahilya University, Indore Ms. Kavya Saini (Unit No. 5,7) Dr. Mamta Gupta (Unit No.13) Department of Management, Govt. Girls College, Jammu The IIS University, Jaipur Dr. Sapna Patawari (Unit No.15) Prof. Parimal H. Vyas (Unit No.6) Deptt. of Management, Studies, Deptt. of Commerce & Business Admn., JNV University, Jodhpur M.S. University, Vadodara Ms. Richa Jain (Unit No.10,14,16) Dr. Renu Pareek (Unit No.8,9 ) Om Kothari Institute of Management & Research, Department of Management, Kota Suresh Gyan Vihar University, Jaipur Shri Akhilesh Jain (Unit No.4,18) Dr. Sanjay Jain (Unit No.11) Proceed Business School, Kota Nirma Institute of Management, Ahamedabad Dr. B.D. Sharma (Unit No.17) Government Commerce College, Kota 285 Academic and Administrative Management Prof. (Dr.) Naresh Dadhich Prof. M.K. Ghadoliya Mr. Yogendra Goyal Vice-Chancellor Director (Academic) Incharge Vardhaman Mahaveer Open University, Vardhaman Mahaveer Open University, Material Production and Kota Kota Distribution Departmant Course Material Production Mr. Yogendra Goyal Assistant Production Officer, Vardhaman Mahaveer Open University, Kota PRODUCTION: May, 2011 All rights reserved. No part of this book may be reproduced in any from by mimeograph or any other means, without permission in writing form the V.M. Open University, Kota. Printed and published on behalf of V.M. Open University, Kota by Registrar. 286 MP-106 Vardhaman Mahaveer Open University, Kota CONTENTS Marketing Management Unit No. Name of Unit Page No. BLOCK - I : Marketing Concepts 1 Marketing : An Introduction 1-16 2 Philosophy of Marketing Management 17-28 3 Marketing Environment 29-43 4 Marketing Mix 44-49 BLOCK - II : Buying Process and Behaviour 5 Market Segmentation, Targeting and Positioning 50-62 6 Consumer Buying Behaviour 63-95 7 Marketing Information System and Marketing Research 96-109 BLOCK - III : Product and Pricing Decisions 8 Product Decisions 110-123 9 Branding 124-139 10 Packaging 140-154 11 Pricing Decisions 155-173 BLOCK - IV : Distribution and Promotion Decisions 12 Distribution Channel Decisions 174-186 13 Marketing Communication 187-207 14 Marketing Strategies 208-225 BLOCK - V : Emerging Issues 15 Emerging Trends in Marketing 226-240 16 Multi Level Marketing 241-254 17 Consumerism 255-273 18 Event Marketing 274-283 287 INTRODUCTION Basic objective of this course is to help the learners to have an understanding of concepts of marketing management and develop the skills for making marketing decisions. Block - I : Marketing Concepts describes the core issues like meaning, scope, concepts, philosophy, marketing mix and environement of marketing. Block - II : Buying Process and Behaviour deals with market segmentation, targeting and positioning, consumer buying behaviour, marketing information system and marketing research. Block III : Product and Pricing Decisions describes the related topics like product decisions branding, packaging and pricing decisions in the concerned units.Block IV : Distribution and Promotion Decisions consists of units focussing upon distribution channels, marketing communication and marketing strategies. Block V : Emerging Issues describes the current trends and strategies of marketing, multi-level marketing, consumerism and event marketing in respective units. 288 289 Unit-1 : Marketing : An Introduction Unit Structure 1.0 Objectives 1.1 Introduction 1.2 The Meaning of Marketing 1.3 Core Marketing Concepts 1.4 Marketing Management Shifts 1.5 Marketing as a Process 1.6 Marketing Management Tasks 1.7 Marketing Mix 1.8 Marketing Strategy 1.9 Significance of Marketing Management in India 1.10 Summary 1.11 Key Words 1.12 Self Assessment Test 1.13 Reference Books 1.0 Objectives After studying this unit you should be able to understand : • The Meaning of Marketing • The Marketing Concept • The Marketing Mix and • How marketing concept and marketing mix are integrated in practice, thus resulting in the marketing process and strategy. 1.1 Introduction In today’s competitive environment, focus on customer satisfaction is essential to the success of any organization. Foreign and domestic organizations are realizing that profit will only be achieved through the use of marketing. Marketing focuses on satisfying the needs and wants of customers through exchange processes. It is the only revenue-producing activity for the organization. Peter Drucker says, “Because its purpose is to create a customer, the business has two - and only two functions: marketing and innovation. Marketing and innovation create value, all the rest are costs. Thus, sound marketing is critical to the success of the organization, whether for profit or not- for-profit, foreign or domestic. The idea that ‘profit is not the primary goal of business’ is not a new. In 1954, Peter Drucker made this point in his book, The Practice of Management. “Profit is not the explanation, cause or rationale of business behavior and business decisions, but the test of their validity.” Profits are an essential result of business success. Again, the true purpose is the creation of customers: the efficient provision of goods and services which people want to buy. Satisfy customers and profit will follow. 1 As Change is occurring at an accelerating rate, continuing today’s strategy is risky; so is turning to a new strategy. Therefore, tomorrow’s successful companies will have to head three certainties: • Global forces will continue to affect everyone’s business and personal life. • Technology will continue to advance and amaze us. • There will be a continuing push toward deregulation of the economic sector. These three developments—globalization, technological advances, and deregulation— spell endless opportunities. But what is marketing and what does it have to do with these issues? Different people with different objectives would opt to learn marketing. However, marketing as you will soon see, is important whether you are in the marketing function or any other function of a business. Thus, you have embarked on the study of an existing subject which can also increase your creativity. Marketing is a restless, changing and dynamic field. Marketing has become the core function of business in all commercial and non-commercial activities. It is the only function which decides success or failure of business to a large extent. Globalization and economic liberalization has made marketing more complex and important in modern business because it is dynamic, challenging rewarding along with frustrating and disappointing fluid, but it can never be dull. Many people think that marketing is just selling and advertising. Peter Drucker explains “The aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service fits him or her and sells itself.” This is not to say that selling and advertising are unimportant, but rather that they are part of a larger “marketing mix” that must be orchestrated for maximum impact on the marketplace. 1.2 The Meaning of Marketing The term ‘market’ originates from the latin noun ‘Marcatus’ which means “a place where business is conducted”. A layman has somewhat similar connotations of the world market which brings to his mind a place where the buyers and sellers personally interact and finalize deals. William J. Stanton has defined marketing as “a total system of interacting business activities designed to plan, price, promote and distribute want satisfying product and services to present and potential customers. H.L. Hansen defines marketing as the process of discovering and translating consumer needs and wants into product and service specification, creating demand for those products and services and then in turn expanding this demand. Philip Kotler defines marketing as the set of human activities directed at facilitating and consummating exchanges. The essence of marketing is exchange of products and the transaction is to satisfy human needs and wants.
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