Marketing Management

System Analysis Marketing Management - General Overview You are what your deep, driving desire is As your desire is, so is your will As your will is, so is your deed As your deed is, so is your destiny - Brihadaranyaka Upanishad By the end of this semester you will have a thorough understanding of what marketing is. Introduction To Marketing What according to you is marketing? And why do you think it should be studied? Let us understand the importance of study of marketing 3E.004U © Copy Right : Rai University 1 System Analysis Unit 1 Examining Concepts of Marketing Management Chapter 1 - Introduction to marketing Lesson 1 - Introduction to Marketing, definitions of marketing Learning Outcomes – After reading this lesson you should - Know the evolution & development of marketing science Understand the core concepts of marketing Be able to appreciate the definitions of marketing Visualize the scope of marketing Understand the different types of marketing orientations Know the components of marketing concept Be familiar with new developments in marketing Why do you think it is important for cipline. Surely, there must be something in this you to study marketing in word marketing, that everyone feels attracted to MBA???????? it. Let us move little deeper inside marketing. In today’s competitive environment a lot of em- Marketing is ancient art. The first marketing trans- phasis is laid on the marketing, we find every action can be perhaps attributed to Adam and Eve. organization carrying out a lot of marketing ac- Its emergence as a management discipline is of tivities. Hence, it is important for you to under- relatively recent origin. And within this relatively stand what market is, what marketing is, and how short period, it has gained a great deal of impor- is it different from selling. So in this lesson we tance. In fact today marketing is regarded as most shall discuss all the important concepts of mar- important of all management functions of busi- keting and lay down the foundation for explain- ness. ing the marketing process. We will also discuss the development of marketing over a period of All of us involved in marketing in one-way or the time. other. Can you describe how the marketing evolved since its inception ? It has taken a long SMILE – It is marketing time before marketing reached the stage what it is today! Do you agree with me ? Today’s e- age, where individual’s have forgot- Now, let us see some definitions of Marketing – ten to smile and just think about their work even Much of marketing is concerned with the while dreaming !!!!. Smile is an essential ingre- problem of profitably disposing of what is pro- dient for these stressed out customers, don’t you duced. think there is a need to exploit this basic need? Marketing is the economic process by which goods and services are exchanged between Introduction – the producer and the consumer and their val- Welcome to the wonderful world of marketing! ues determined in terms of money prices. Marketing is not a new word but evokes feelings Marketing originates with the recognition of of freshness each time it is used. For there is so a need on the part of a consumer and termi- much happening in this field that even the oldies nates with the satisfaction of that need by have something new to learn every day. In your the delivery of a usable product at the right class itself, I am sure that there are quite a few time, at the right place and at an acceptable students opting for marketing than any other dis- price. 2 © Copy Right : Rai University 3E.004U System Analysis Marketing is so basic that it cannot be con- ferent countries to small firms operating in small sidered a separate function. It is really the markets, from giant enterprises like Sony, Lever, whole business seen from the point of view General Motors to the next-door kirana shop. of the final result, i.e., from the point of view Quality production and efficient marketing are the of the customer. key success factors in building sustainable com- Marketing is a viewpoint, which looks at the petitive edge for ever business corporation. entire business process as a highly integrated effort to discover, create, arouse and satisfy “Marketing is a societal process by which indi- consumer needs. viduals and groups obtain what they need and Marketing is the delivery of a standard of want through creating, offering and freely ex- living to society. changing products and services of value with others” - Philip Kotler American Marketing Association – “It is the process of planning & executing the conception, The Chartered Institute of Marketing de- pricing, promotion & distribution of ideas, goods fines Marketing as - “Marketing is the man- & services to create exchange that satisfy indi- agement process for identifying, anticipating & vidual & organisational goals” satisfying customer requirements profitably.” Many people think that marketing and selling Peter Drucker - There will always, one can as- mean the same thing. Others think that market- sume, be need for some selling. But the aim of ing is the same as selling and advertising, still others marketing is to make selling superfluous. The aim have a notion that marketing has got something is to know and understand the customers well to do with making products available in the stores, that the product or service fits him and sells it- arranging displays and maintaining inventories of self. Ideally, marketing should result in a customer products for future sales. Actually marketing in- who is ready to buy. All that should be needed cludes all these activities and many more. then is to make the product or service available Marketing is a key function of management. It Activity 1: brings success to business organisation. A busi- Knowledge of marketing makes you a more ness organisation performs two key functions sophisticated customer. Discuss in the light producing goods and services and making them of your experience. available to potential customers for use Marketing In the New Economy - An organisation business success largely depends on how efficiently the products and services are What is new economy? Is it something different delivered to customers and how differently do from the old economy ? the customers perceive the difference in deliv- With the emergence of marketing, we also wit- ery in comparison to the competitors. This is true ness the emergence of new economy character- of all firms – from large business enterprises to ized by the following:- small firms, from multinationals operating in dif- A substantial increase in purchasing power. A greater variety of available goods and services. A great amount of information about every- thing. A great ease in interacting and placing or- ders. An ability to compare notes on products and services. Today’s companies also have new capabilities as given below:- 3E.004U © Copy Right : Rai University 3 System Analysis Ability to operate powerful information and the form of non-profit and societal marketing sales channels. emerged in early seventies. The business real- Ability to collect fuller and richer informa- ized that they have a larger role to perform than tion about markets, customers, prospects, and mere profit making. competitors. Faster internal communication amongst em- With the changes in life style and enhanced stan- ployees. dards of living, newer and newer services hit the market place. From education, communication, Two way communication with customers and prospects. consultancy to medicare and health — all kinds of services were being offered in the market. The Send ads, coupons, samples, and information marketing of services had arrived. to customers. Customize offerings and services to individual Marketing today knows no borders. From mere customers. exporting, the firms had now acquired global ori- Improved, purchasing, recruiting, training. entation to herald the era of global marketing. Improved external communication. For MNC’s the entire world is a single huge mar- Improved logistics and service quality ket. It was time now that some of these MNC’s like Toyota, Honda, Sony, Mercedes, and Phillips Activity 2: etc became household names. A person is hungry, he need not be told that he Customer with a wide choice and variety of prod- needs food ? Explain this in the light, marketing ucts is virtually the king in the market today. It is does not create need. for his satisfaction that the firms compete with each other. No wonder new dimensions to marketing like Customer Relationship Management have been added. Not only the firms want the customer to come to them but also retain him for future. Some of the firms want to reach the customer directly eliminating the middlemen—the concept of direct marketing. Yet another facet of marketing has emerged with the advent of internet and revolutionary changes in communication technology———the online Have a close look at Fig 1.1 wherein major de- one to one marketing. E-commerce and e-mar- velopments that have taken place in each decade keting are the future of the marketing. In fact the have been depicted for nearly last fifty years. marketing of twenty first century will be greatly influenced by the new technologies in the field of What do you observe? Now, who is going to ex- communication. plain the diagram for us ? There are various ways in which study of mar- The entire growth has been fuelled by the eco- keting subject can be approached. We will fol- nomic growth of the last half a century. The fo- low the sequence in which we will start with the cus in the early fifties was on marketing of con- core concepts of marketing. Here it goes.

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