MARKETING MANAGEMENT (From the Academic Year 2016-17)

MANONMANIAM SUNDARANAR UNIVERSITY DIRECTORATE OF DISTANCE & CONTINUING EDUCATION TIRUNELVELI 627012, TAMIL NADU M.B.A. - II YEAR DKR22 - MARKETING MANAGEMENT (From the academic year 2016-17) Most Student friendly University - Strive to Study and Learn to Excel For more information visit: http://www.msuniv.ac.in DD & CE, M.S University, Tirunelveli DKR 22-Marketing Management DKR 22- MARKETING MANAGEMENT Syllabus Unit I Marketing-meaning-functions-marketing and selling;-marketing classification- marketing planning and organization scanning; marketing segmentation, buyer behavior, marketing information. Unit II Product management – new product – meaning – product mix – product planning and development, product policies – product line decision – product positioning and targeting – managing product life cycle – product failures – branding and packaging. Pricing – meaning – pricing factors – objectives and policies – pricing methods and procedures. Unit – III Promotion mix decisions – advertising role – budgeting – copy writing, media selection, measuring advertising effectiveness – sales promotion tools and techniques, personal selling – salesman qualities, sales force determination – determining sales territory, fixing sales quota and target; public relating role and methods. Unit IV Distribution – meaning – role – distribution mix strategies – types of channels – role of intermediaries – managing and controlling intermediaries – marketing logistics – transport, warehousing and inventory control. Unit V Identifying and analyzing competitors – designing competitive strategies for leaders, challengers, followers and nichers; relationship marketing – on line marketing – consumerism and consumer protection in India - evaluating and controlling of marketing performance – New Issues in marketing, globalisation, Greymarketing – legal issues. References : Marketing management – Philip Kotler. PHI Fundamentals of Marketing – Stanton, Etzel, Walket, Mc Graw Hill International Marketing – Borce, Huston and thill, McGraw Hill Marketing – Bennett, McGraw Hill Marketing – Ramasamy and Namakumari, Mac Millan, India DD & CE, M.S University, Tirunelveli DKR 22-Marketing Management Unit no. Contents Page no. Marketing- Definition, Functions 2 Market segmentation 6 1 Buyer behavior 11 Marketing information system 21 New product development 28 Product positioning & Targeting 33 2 Product life cycle 34 Branding & Packaging 36 Pricing- Objectives & Policies 43 Pricing methods & Procedures 48 Advertising 54 Personal selling 65 3 Sales promotion 67 Sales territory & Sales quota 71 Public relations 77 Distribution mix 80 4 Marketing Intermediaries 83 Marketing logistics 88 Identifying & analyzing competitors 91 Relationship marketing 97 5 Online marketing 98 Global marketing 103 Green marketing 106 Consumerism 109 2 DD & CE, M.S University, Tirunelveli DKR 22-Marketing Management Unit I INTRODUCTION Marketing is everywhere and it affects our day- to-day life in every possible manner. Formally or informally people and organizations engage in a vast number of activities that could be called as marketing. Good marketing is not an accident, but a result of careful planning and execution. It is both an art and science. Let‘s discuss various concepts and issues in marketing. DEFINITION Marketing management is an art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. In short Marketing is ―Meeting needs profitably‖. Marketing has been defined by different ways: In1985 AMA redefined marketing as ―Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.‖ In the words of Philip Kotler ―Marketing is the human activity directed at satisfying needs and wants through an exchange process.‖ In 2004 the American Marketing Association defined ―Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.‖ FUNCTIONS OF MARKETING Firms must spend money to create time, place and ownership utilities as discussed earlier. Several studies have been made to measure marketing costs in relation to overall product costs and service costs and most estimates have ranged between 40-60 percent. These costs are not associated with raw materials or any of the other production functions necessary for creating form utility. What does the consumer receive in return for this proportion of marketing cost? This question is answered by understanding the functions performed by marketing. In the following table, marketing is responsible for the performance of 8 universal functions: buying, selling, transporting, storing, standardizing and grading, financing, risk taking and securing marketing information. Some functions are performed by manufacturers, others by marketing intermediaries like wholesalers and retailers. Buying and selling, the first 3 DD & CE, M.S University, Tirunelveli DKR 22-Marketing Management two functions represent exchange functions. Transporting and storing are physical distribution functions. The final four marketing functions – standardizing and grading, financing, risk taking and securing market information – are often called facilitating functions because they assist the marketer in performing the exchange and physical distribution functions. Marketing function Description A. Exchange functions 1. Buying -Ensuring that product offerings are available in sufficient quantities to meet customer demands -It starts after the goods have been produced 2. Assembling -Using advertising, personal selling and sales 3. Selling promotion to match goods and services to customer B. Physical distribution functions needs 4. Transporting -Moving products from their points of production to locations convenient for purchasers 5. Storing -Warehousing products until needed for sale C. Facilitating functions 6. Standardizing and grading -Ensuring that product offerings meet established quality and quantity control standards of size, weight and so on 7. Financing -Providing credit for channel members or consumers 8. Risk taking -Dealing with uncertainty about consumer purchases resulting from creation and marketing of goods and services that consumers may purchase in the future 9. Securing marketing information -Collecting information about consumers, competitors and channel members for use in marketing decision making OBJECTIVES OF MARKETING Barker and Anshen say, ―The end of all the marketing activities is the satisfaction of human wants. Through the satisfaction of human wants, profits are rewarded to the business and the reward is inducement for marketing. Now the time has changed and object of marketing is more than securing profits. The following are the aims of marketing. To intelligent and capable application of modern marketing policies. 4 DD & CE, M.S University, Tirunelveli DKR 22-Marketing Management To develop the marketing field. To develop guiding policies and their implementation for a good result. To suggest solutions by studying the problems relating to marketing. To find sources for further information concerning the market problems. To revive existing marketing function, if shortcomings are found. To take appropriate actions in the course of actions. MARKETING CONCEPTS Marketing Concept means the philosophy which guides the marketing, efforts, i.e., what weight should be given to the interests of the organization, consumers and the society. Very often these interests are conflicting. There are five marketing concepts which are adopted by organizations for their marketing activities. 1. The production concept 2. The product concept 3. The selling concept 4. The marketing concept 5. The socio marketing concept 1. The production concept This concept holds that the consumer will support those products that are produced in large quantities at low unit cost. The authorities of this view believe that marketing can be managed by managing production. It involves high production efficiency and wide distribution network. This concept holds good in cases where there is more demand than supply. In such a situation consumers readily accept the product that is made available e.g., cooking gas. Hence large-scale production (easy availability) assumes much significance. There is another situation where the products cost is high; to expand the market, it is desired to reduce the unit cost by large-scale production, e.g., price of electronic calculators and quartz watches have come down considerably. But easy availability and low cost are not only the conditions governing customers buying decisions. 2. The product concept The product concept holds that consumers will favour those products that offer the most quality, performances and features. Managers in these product oriented organisation focus their energy on making good products and improving them over time. Philip Kotler. Here emphasis on product excellence, i.e., quality, performance, and features. The assumption is that customers will automatically buy products of high quality and evaluates 5 DD & CE, M.S University, Tirunelveli DKR 22-Marketing Management product excellence and is willing to pay for ―extras. Therefore, producers claim that they make the best and their products have several extras, e.g., a three-dimensional

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