{"id":386,"date":"2019-06-26T12:06:36","date_gmt":"2019-06-26T12:06:36","guid":{"rendered":"http:\/\/hrmp02.epgpbooks.inflibnet.ac.in\/?post_type=chapter&p=386"},"modified":"2019-06-27T07:30:45","modified_gmt":"2019-06-27T07:30:45","slug":"marketing-management","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/hrmp02\/chapter\/marketing-management\/","title":{"rendered":"Marketing Management"},"content":{"raw":"
\"epgp<\/a>\r\n<\/span><\/div>\r\n
\r\n\r\n \r\n\r\n37.1\u00a0Learning Objective\r\n\r\n37.2\u00a0Introduction\r\n\r\n37.3\u00a0Marketing Concept\r\n\r\n37.4\u00a0Marketing Planning process\r\n\r\n37.5\u00a0Need for marketing planning\r\n\r\n37.6\u00a0Marketing Planning Process\r\n\r\n37.7\u00a0Summary\r\n\r\n \r\n\r\n \r\n\r\n \r\n\r\nLearning Objectives<\/strong>\r\n\r\n \r\n\r\nAfter completing this module, you will be able to:\r\n
    \r\n \t
  1. To study marketing management<\/li>\r\n \t
  2. To know about marketing mix<\/li>\r\n \t
  3. To understand marketing strategies<\/li>\r\n \t
  4. To know about 8Ps<\/li>\r\n<\/ol>\r\n \r\n\r\nIntroduction<\/strong>\r\n\r\n \r\n

    Marketing management facilitates the activities and functions which are involved in the distribution of goods and services.<\/p>\r\n \r\n

    According to Philip Kotler, \"Marketing management is the analysis, planning, implementation and control of programs designed to bring about desired exchanges with target markets to achieve organizational objectives.<\/p>\r\n \r\n

    It relies heavily on designing the organizations offering regarding the target markets needs and desires and using effective pricing, communication and distribution to inform, motivate and service the market.\" Marketing management is concerned with the chalking out of a specific program, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization. Further, their sales plan to a greater extent rest upon the requirements and motives of the consumers in the market. To achieve this objective, the organization has to pay heed to the right pricing, effective advertising and sales promotion, distribution and stimulating the consumers through the best services.<\/p>\r\n \r\n

    There are five alternative concepts under which organizations design and carry out their marketing strategies.<\/span><\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n \r\n\r\nMarketing Concepts<\/strong>\r\n\r\n \r\n

    Marketing is the process used to determine what products or services may be of interest to customers and the strategy to use in sales, communications and business development (Kotler et al. 1996). The American Association of Marketing define marketing management as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create, exchange and satisfy individual and organizational objectives.<\/p>\r\n \r\n

    Marketing concepts <\/strong>relate to the philosophy a business use to identify and fulfil the needs of its customers, benefiting both the customer and the company. The Same philosophy cannot result in a gain to every business. Hence different businesses use different marketing concepts (also called marketing management philosophies).<\/p>\r\n\"\"\r\n\r\n \r\n\r\n1.\u00a0\u00a0\u00a0\u00a0\u00a0 Production Concept,\r\n\r\n2.\u00a0\u00a0\u00a0\u00a0\u00a0 Product Concept,\r\n\r\n3.\u00a0\u00a0\u00a0\u00a0\u00a0 Selling Concept,\r\n\r\n4.\u00a0\u00a0\u00a0\u00a0\u00a0 Marketing Concept,\r\n\r\n5.\u00a0\u00a0\u00a0\u00a0\u00a0 Societal Marketing Concept.\r\n\r\n \r\n\r\nThese concepts are described below;\r\n\r\n \r\n\r\nProduction Concept<\/strong>\r\n\r\n \r\n

    The idea of production concept \u2013 \"Consumers will favour products that are available and highly affordable\". This concept is one of the oldest Marketing management orientations that guide sellers. Companies adopting this orientation run a major risk of focusing too narrowly on their operations and losing sight of the real objective. Most times; the production concept can lead to marketing myopia. Management focuses on improving production and distribution efficiency.<\/span><\/p>\r\n \r\n

    Although; in some situations; the production concept is still a useful philosophy.<\/span><\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n \r\n\r\nProduct Concept<\/strong>\r\n\r\n \r\n

    The product concept holds that the consumers will favour products that offer the most in quality, performance and innovative features. Here; under this concept, Marketing strategies are focused on making continuous product improvements. Product quality and improvement are important parts of marketing strategies, sometimes the only part. Targeting only on the company\u2019s products could also lead to marketing myopia.<\/p>\r\n \r\n\r\nFor example;\r\n\r\n \r\n

    Suppose a company makes the best quality Floppy disk. But a customer does need a floppy disk? She or he needs something that can be used to store the data. It can be achieved by a USB Flash drive, SD memory cards, portable hard disks, etc. So that company should not look to make the best floppy disk. They should focus to meet the customer\u2019s data storage needs.<\/p>\r\n \r\n\r\nSelling Concept<\/strong>\r\n\r\n \r\n

    The selling concept holds the idea- \u201cconsumers will not buy enough of the firm\u2019s products unless it undertakes a large-scale selling and promotion effort\u201d. Here the management focuses on creating sales transactions rather than on building long-term, profitable customer relationships.<\/p>\r\n \r\n

    In other words; the aim is to sell what the company makes rather than making what the market wants. Such aggressive selling program carries very high risks. In selling concept the marketer assumes that customers will be coaxed into buying the product will like it, if they don't like it, they will possibly forget their disappointment and repurchase it later. This is usually very poor and costly assumption.<\/p>\r\n \r\n

    Typically the selling concept is practised with unsought goods. Unsought goods are that buyers do not normally think of buying, such as insurance or blood donations. These industries must be good at tracking down prospects and selling them on a product\u2019s benefits. Selling is one part of marketing which deals with persuading customers to buy products that are available to the seller. Merchandising refers to the process offering<\/strong> a variety of products to a retail consumer in a manner which stimulates demand.<\/p>\r\n \r\n\r\nMarketing Concept<\/strong>\r\n\r\n \r\n

    The marketing concept holds- \u201cachieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do\u201d. Here marketing management takes a \u201ccustomer first\u201d approach.<\/span><\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n \r\n

    Under the marketing concept, customer focus and value are the routes to achieve sales and profits. The marketing concept is a customer-centred \"sense and responds\" philosophy. The job is not to find the right customers for your product but to find the right products for your customers.<\/p>\r\n \r\n\r\nThe Societal Marketing Concept<\/strong>\r\n\r\n \r\n

    This concept holds that the organization\u2019s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumer\u2019s and the society\u2019s well-being.<\/p>\r\n \r\n

    This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services.<\/p>\r\n \r\n

    Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society?<\/p>\r\n \r\n

    The marketing concept possibly avoids the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. For example:<\/p>\r\n \r\n

    The fast-food hamburger industry offers tasty but unhealthy food. The hamburgers have a high-fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.<\/em><\/p>\r\n \r\n\r\nHolistic Marketing Concept<\/strong>\r\n\r\n \r\n\r\nHolistic marketing is a new addition to the business marketing management philosophies which considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to that business. Business, like a human body, has different parts, but it's only able to function properly when all those parts work together towards the same objective. Holistic marketing concept enforces this interrelatedness and believes that a broad and integrated perspective is essential to attain best results.\r\n\r\n<\/div>\r\n

    \r\n\r\n\"\"\r\n

    Services are radically different from products and need to be marketed very differently. So the classical 4 P structure of the Marketing Mix (shown below) needs to be modified suitably to incorporate the 8 Ps for services marketing, which was previously known as the 7 Ps only.<\/p>\r\n\"\"\r\n

    Services can range from financial services provided by the banks to technology services provided by the IT Company or hospitality services provided by hotels and restaurants or even a blog where an author provides a service (information presentation, interesting reading etc.) to his audience. Services marketing are dominated by the 7 Ps of marketing namely Product,<\/strong> Price, Place, Promotion, People, Process <\/strong>and Physical evidence<\/strong>.<\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n\"\"\r\n

    The main focus of all the firms turned from hard selling towards Identification of customer needs, deciding to fulfil those need and maintaining long-term relationships with customers by satisfying their changing needs. The Marketing concept resulted in a separate marketing department in the organization, and today we can see much organization have structured them as marketing organization where every employee is contributing towards customer satisfaction whether or not he\u2019s a marketing person.<\/p>\r\n \r\n

    So, The marketing concept relies upon marketing research that helps in identification of segments, their sizes, needs, target market and then by using the right \u2018Marketing Mix\u2018, marketing teams makes such decisions that result in customer satisfaction.<\/p>\r\n \r\n

    It relies heavily on designing the organizations offering regarding the target markets needs and desires and using effective pricing, communication and distribution to inform, motivate and service the market.\" Marketing management is concerned with the chalking out of a specific\u00a0program, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization. Further, their sales plan to a greater extent rest upon the requirements and motives of the consumers in the market. To achieve this objective, the organization has to pay heed to the right pricing, effective advertising and sales promotion, distribution and stimulating the consumers through the best services.<\/span><\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n\"\"\r\n

    Indeed, any marketing manager faced with a new product or a new challenge will recognise the concept even if they\u2019ve never heard the term. As a manager with some experience, one knows already which points to pay attention to and optimise, and one does it often by instinct. As good\u00a0as experience and instinct are, it can nevertheless be helpful to quantify and study the different elements to ensure maximum effectiveness. That's what E. Jerome McCarthy did in 1960, proposing a \"four Ps\" classification which we still use today. Using the Four Ps, marketing managers can cut through the noise and confusion and identify which elements they must take responsibility for to ensure business success.<\/span><\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n \r\n

    As with many things invented more than 50 years ago, the Four Ps have also been updated to reflect the needs of modern businesses. Instead of a total focus on products, the new Eight Ps are flexible enough to include the role of customer service and adapt to businesses which sell services instead of products.<\/p>\r\n \r\n\r\nMarketing Planning Process<\/strong>\r\n\r\n \r\n

    The marketing planning process five steps involve both the development of objectives and specifications for how they will be accomplished. Below we outline these five basic steps that are key to this process.<\/p>\r\n \r\n\r\n1. Determination of Organizational Objective<\/strong>\r\n\r\n \r\n

    The basic objectives, or goals, of the organization, are the starting point for marketing planning. They serve as the foundation from which marketing objectives and plans are built. These objectives provide direction for all phases of the organization and serve as standards for evaluating performance. Soundly conceived goals should be S.M.A.R.T \u2013 specific, measurable, attainable, realistic and time-specific.<\/p>\r\n \r\n\r\n2. Assessing Organizational Resources<\/strong>\r\n\r\n \r\n

    Planning strategies are influenced by some factors both within and outside the organization. Organizational resources include capabilities in production, marketing, finance, technology, and personnel. By evaluating these resources, organizations can pinpoint their strengths and weaknesses. Strengths help organizations set objectives, develop plans for meeting objectives, and take advantage of marketing opportunities. Resource weaknesses, on the other hand, may inhibit an organization from taking advantage of marketing opportunities.<\/p>\r\n \r\n\r\n3. Evaluating Risks and Opportunities<\/strong>\r\n\r\n \r\n

    Environmental factors \u2013 competitive, political, legal, economic, technological and social \u2013 also influence marketing opportunities. The emergence of new technologies or innovations may open new opportunities for under-marketed products. The marketing environment may also pose threats to marketing opportunities. For example, a new genetically engineered drug may be developed with the potential to become a $1 billion-a-year product. But a government agency may delay requests to market the drug due to regulations.<\/p>\r\n\r\n<\/div>\r\n \r\n\r\n4. Marketing Strategy<\/strong>\r\n

    \r\n\r\n \r\n

    The net result of opportunity analysis is the formulation of marketing objectives designed to achieve overall organizational objectives and develop a marketing plan. The marketing planning effort must be directed toward establishing marketing strategies that are resource efficient, flexible, and adaptable. The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment.<\/p>\r\n \r\n\r\n5. Implementing and Monitoring Marketing Plans<\/strong>\r\n\r\n \r\n

    The overall strategic marketing plan serves as the basis for a series of operating plans necessary to move the organisation toward the accomplishment of its objectives. At every step of the marketing planning process, marketing managers use feedback to monitor and adapt strategies when actual performance fails to match expectations.<\/p>\r\n \r\n\r\nNeed of Marketing Planning Process<\/strong>\r\n\r\n \r\n

    The marketing planning process is intended to decide where you want to see your business in future. It decides how you want to target your consumer and its segmentation. It involves the rational and absolute thinking about the marketing strategies of your business. Making proper documentation of your strategies is an integral part of planning process. It is the need of the time to properly plan your marketing activities and implement it in the right direction for the survival of your product in the market. In today's market of intense competition, without proper extended and solid planning process you can't take success in the market. Marketing planning process makes it essential for the managers to contribute some of their time towards thinking about the company's resources and the opportunities that may gain by effectively utilizing those resources. In today's era of rapid digital marketing, it is necessary to focus on a proper marketing planning process to cover the maximum of the market. By applying a proper plan, we can avoid the risk of failure of the product and can satisfy and fulfil the needs of the target consumers easily.<\/p>\r\n \r\n

    You can upgrade your sales volume and growth by choosing right marketing plan for your business. This planning process involves the specifications that how marketing objectives are to be attained. The marketing planning process structure discussed above can further be elaborated.<\/p>\r\n \r\n\r\nMarketing Planning Process Steps<\/strong>\r\n\r\n \r\n

    The steps of marketing planning process we are going to discuss almost remains the same for each kind of business with little amendments according to the scenario,<\/p>\r\n \r\n\r\n1.\u00a0 The first step involves developing the action plan<\/strong>\r\n\r\n \r\n

    Make vision and set your goals According to mission statement Company objectives\u00a0Before moving towards the other steps of planning strategy and implementing it, the first and for most need to make your product successful, is to make a keen observation of the company\u2019s objective. So the most prior stage of marketing planning process is to set your goals that where you want to reach. You should know your ultimate destination, your company\u2019s vision for your product that who you are and where you expect to reach. In the first step of the planning process, you should carefully understand the company's mission.<\/span><\/p>\r\n\r\n<\/div>\r\n

    \r\n\r\n \r\n\r\n2.\u00a0 Analyze your present situation by<\/strong>\r\n\r\n \r\n\r\nBy analyzing and auditing market SWOT Analysis\r\n\r\n \r\n

    The second step of marketing planning process includes the overview and examination of your present condition. It is a part of the strategic and long-term planning process to see your current position, your resources and view the market in which you are moving. Layout your resources, evaluate them along with evaluating other external and internal factors. Determine the environmental risks and favours attach with the launching of your product. Audit the market, target it and make their segments with the help of your resources to better penetrate your product. Do SWOT Analysis of your business in which there are different internal and external factors considered. This is the best approach for viewing and analyzing your current situation. Make an inside look at your strengths and weaknesses and the other aspects affecting them.<\/p>\r\n \r\n

    Make an inside view of your company that whether you understand your consumer\u2019s need, know whom you are targeting, make the market research to know about your competitors and to know about the fact that what consumer needs are fulfilled and what are the depreciation in them and how these needs changes with the passage of time.<\/p>\r\n \r\n

    In the Marketing planning process, while analyzing your present situation, you have to consider few external factors that have a direct link with the internal contingencies and the performance of the company. These external components that directly influence the internal components and the position of the business, which are the political scenario, legal aspects, and the competition of market in which you are moving, the culture, economy and the other demographics.<\/p>\r\n \r\n\r\n3.\u00a0 Developing Marketing Strategy<\/strong>\r\n