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concept of marketing management

Promotional and Communication Process: The ultimate objective of a firm is to maximise sales volume and profit. A decision is right only if it creates a satisfied customer. Before proceeding to examine some of the details of this process, com­ments on two aspects will be helpful background. Plans should be flexible so as to adjust with the changing business environment. Deviations are possible due to a variety of factors. It reposes great faith in the power of salesmanship and advertising. Only then the objectives can be achieved. As Kotler says, the selling concept is practiced most aggressively with unsought goods, those goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots. For instance, a distribution plan execution of a company like Pepsi will include undertaking activities such as handling of cartons at factory, loading on trucks, transportation, and delivery at sale points. This function of marketing management enables the firm to provide information about the product to the customers. Marketing management evaluates the effectiveness of marketing activities, to judge the efficiency of marketing personnel and the plans. Markets differ in terms of their value and volume size. 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 buy it again later. 8. So companies are slowly either fully or partially trying to implement the societal marketing concept. Unsought goods are that buyers do not normally think of buying, such as insurance or blood donations. Marketing is the business function that controls the level and composition of demand in the market. Everything you need to know about marketing management. They are of the firm belief that product design or improvement aspects are better understood by their engineers or designers than the customers. From the above definitions, we can conclude that Marketing Management is the process of management of marketing programmes for accomplishing organizational goals and objectives. In most of the cases prices form the decision making criterion for purchase decision. Providing consumer satisfaction – Every organization aims at providing maximum consumer satisfaction by understanding his needs and designing an appropriate product. The marketing concept adopts a narrow perspective of exchange as a transaction that happens between an organization and customer. It co-ordinates the resources of production and distribution of goods and services, determines and directs the total efforts required to sell profitably to ultimate user”. One of the categories of goods in economics is ‘demerit goods’. Marketing management aims at providing innovative product and services to the customers. For instance, in compact detergent market Surf competes with Ariel; these brands essentially represent the condensation of decisions made by their respective managers, which include decisions regarding colour, quality, packaging, price, brand name, form, communication and availability. The advice given by Emerson that if you build a better mouse-trap the world would make a beaten path to your door wrongly shifts marketing focus from consumer to product. Marketing Concept 5. This helps the management to understand consumer’s needs, wants, preferences and behaviour of the consumer towards firm’s marketing mix strategies. In this context, marketing can be defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage". The ideas enshrined in production concept gradually got diffused across different firms rendering participating firms similar in their marketing approach. All that should be needed then is to make the product or service available” – Peter Drucker. You can click on each link to know more about each individual concept of marketing. The production concept was common to firms during the early period of industrialization when different products were born. (2) Selection and management of marketing channels for distribut­ing the product. This requires organizing of marketing activities and their execution. The above discussion suggests that the marketing concept is based on four main pillars. Social Marketing Concept The selling concept also developed at the same time, and the product concept developed and still predominant in many industries. Different combinations of sales promotion techniques can be used at a point of time. The marketing concept works on facts gathered by its “market and customer first” approach. Co-Ordinating Different Activities of Enterprise: Even the best of planning will not be rewarding if there is improper coordination between different activities of the organisation. The concept of marketing is the rationality that urges association to concentrate on their clients’ necessities. Scientific and artistic aspects of marketing would influence each other, leading to a new generation of marketing managers. It has to implement marketing programme and evaluate continuously the effectiveness of marketing-mix. These core concepts are: Two of the important marketplace forces are consumers and competition. Examples of Marketing Concept of Marketing Management Philosophies The success of the marketing concept depends on the enterprise-wide adaptation of marketing culture. ‘Dollar shave club’ charges a couple of bucks a month with higher quality products and home delivery convenience. The supply of manufactured goods was exceeding demand by the early 1930s. A manufacturer should design a new product or improve an existing one strictly keeping in mind the needs, desires etc. Restaurants and startups do follow the marketing concept. For example, a company might be aimed at satisfying consumers’ wants and desires, but its overall objective might be to increase the profit volume. Stanley Vance defines management as the process of decision making and controlling. Accordingly, the first management task is to find an efficient distribution strategy that ensures product availability so that consumers can buy products with ease. Evaluation and Controlling of Marketing Activities: Marketing management performs the task of evaluation and controlling of the marketing activities. 7. Marketing management aims at efficient operation of marketing activities. Target Marketing refers to a concept in marketing which helps the marketers to divide the market into small units comprising of like minded people. IMC is a major strategic concept that is as evolutionary and discursive in its concept as other marketing and management tools. Bought products are the ones consumers are self-motivated to buy for their perceived importance and interest (e.g., cosmetics and spectacles), whereas sold products are the ones consumers are unlikely to buy on their own. Ideally marketing should result in a customer who is ready to buy. Magalie D. Magalie D. is a Diploma holder in Public Administration & Management … Here engineers first design and develop the product, the manufacturing makes it, the finance department prices it, finally, marketing and sales try to sell it. Marketing Concept is the philosophy that an organization should analyze the needs of their consumers and then make decisions to satisfy those needs, better than the competition. Therefore, this logic ignores larger societal effects of such business. The marketing concept holds- “achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.” Here marketing management takes a “customer first” approach. This concept created a kind of product obsession wherein production managers sought to concentrate on quality improvement and built better product than ever before. Second, the product needs to be attractively designed, packaged, priced, and made available so that consumers can see, touch, and feel and become willing to buy it. Feedback of evaluation enables marketing management to revise, adopt, or modify goals and objectives and replan on the basis of feedback of evaluation. Management is a set of processes related to planning, organizing, directing, motivating, coordinating, and controlling a business organization’s various activities. Therefore, it is ideal for a company to highlight its attention to a particular segment (s) of the total heterogeneous market. Ford in its early times practised production concept where the company sought to bring down car prices so that it could attract a large number of customers. The reason behind coordination with other departments is that marketing cannot work in isolation. Logitech makes very high-quality computer products such as keyboard, mouse, and webcams. It is a very 21st-century concept that truly believes “the customer is king”. Firms such as Hindustan Unilever Limited (HUL) and Procter & Gamble (P&G) operate in consumer markets whereas Schneider Electric and Larsen & Toubro (L&T) are business to business marketers. It tilted the marketing situation in favour of the buyers. Traditionally, markets were viewed as a place for exchange of goods and services between sellers and buyers to the mutual benefit of both. Which of the following marketing management concepts is most likely to lead to marketing myopia? Ownership of the product gives a sense of pride and satisfaction to the consumer and, therefore, the product should be properly designed, coloured and packed. It involves planning effective strategies to achieve the desired marketing objectives. Issues. Marketing is all about interacting with markets, notwithstanding whether it is for profit or for non-profit. Do you want to add something more? However, if you see the rise and shine of FORD motor company, then you will know that ford actually established the moving assembly line back in 1913 and that is a perfect example of Production concept in action. Almost all soft drinks and soda drinks follow the selling concept. It looks after the marketing system of the enterprise. (4) Fixing and allocating the promotional budget to advertising and selling. The cost reduction creates affordability and thereby expands market. Right from production and design of the goods to its transportation, every process has the customer in mind. Production concept could still hold true in industries where consumer buying is predominantly done on the basis of price (they do not attach importance to non-price differentiation) and ease of buying. Consumers in a market can be divided into different groups based on their demographic aspects such as age, income, occupation, and gender. Marketing Management performs all managerial functions in the field of marketing. This structure is culture- free and can be applied to any environment. A company can thus try to create a dominant position in the market where it operates. Market analysis is the first essential step in determining where the firm seeks to market its product or service. Marketing involves various activities and these are inter-related and interdependent. The concept of marketing is a fundamental piece of the marketing arrangements. For instance, there are specialized products that appeal to a limited number of customers like shoes for astronauts or watches for deep divers. If the marketer does a good job of identifying consumer needs, developing appropriate products, and pricing, distributing, and promoting them effectively, these products will sell very easily. Importance of Sales Management Marketing management aims at maximising the customer’s value by providing high satisfaction to the customers. More than one channel of distribution can be adopted at the same time; for example, a wholesaler can sell through retailers and also directly to consumers. There are many pricing problems. Chapter 1 Marketing: Definition & Importance All activities involved in creation of time, place and possession utilities. According to him, “in its fullest sense, the marketing concept is a business philosophy that states that customers’ want satisfaction is the economic and social justification of a company’s existence. In 1776 in the To ensure customer satisfaction, a company should encourage customer complaints, since it is seen from different studies that 96% of unhappy customers never tell the company about their dissatisfaction. Thus it may increase the number of loyal customers and profit volume. It deals with creating and maintaining demand for goods and services of the organization. Before publishing your Articles on this site, please read the following pages: 1. This will help in better interaction between organisation and environment. Here the management focuses on creating sales transactions rather than on building long-term, profitable customer relationships. Product decisions, pricing strategies, channel structure research activities all require proper coordination. The marketing concept holds customer satisfaction as the key to achieving organizational goals. The management process responsible for identifying , anticipating and satisfying customer requirements profitability. The deviations are then identified and corrective action is undertaken. Selection of distribution channel depends upon the nature of the product, price of the product, availability of intermediaries for distribution and cost involved in the distribution process. The global warming panic button is pushed, and a revelation is required to use our resources. Production concept is probably the oldest business governing idea, which dates back to the period of short supply of goods. While the societal marketing concept highlights the needs and wants of a target market and the delivery of better value than its competitors, it also emphasizes the importance of the well-being of customers and society as a whole (consumer welfare or societal welfare). Products are customer oriented and offered to the customer’s as per their requirement and preferences. Advocates of this concept are of the opinion that consumers favor well- made products, products that are superior to the competing products in the above-mentioned aspects. On the other hand, societal concept introduces the concept of what economists call ‘externality’. The creation of superior quality product cannot be a ‘be all’ strategy. Product Concept 3. Focus on customer needs – The needs of the consumer are studied and these become the basis of all product related activities such as designing, pricing, distribution, packaging etc. Privacy Policy3. This marketing concept is thought to have been simple: he who offered a standard product at the lowest price was going to win. The constraint of repeat business changes the marketing paradigm in favour of the customer. Integrated Marketing Management – Marketing management is only a part of the total managerial functions of an organization such as finance management, production management, human resources management etc. Management is the process of getting things done in an organised and efficient manner. But a customer does need a floppy disk? We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Marketing Concept Those companies who believe in this concept are of the opinion that success can be achieved only through consumer satisfaction. Good products are key to market success. The company has appropriate marketing-mix for each target market. These goods refer to the goods whose consumption results in incurring of costs by those who actually do not consume them. 5. You can walk into any phone shop in Asia and can walk out with the latest and greatest smartphone from Vivo. This is usually a very poor and costly assumption. These 5 alternative marketing concepts are also called marketing management philosophies. The product concept assumes that consumers will favor those products that are superior in quality, performance, innovative features, designs, and so on. It is the customers who open up revenue streams. It is because any contemporary company’s basic goal is to keep its customers happy and make profits through serving and satisfying customers. There are five marketing concepts. Many marketers still hold this concept, and this concept so influences some that they even forget that the market is going in another direction. Focusing on a particular market does not guarantee a company’s success in the marketplace. Such a situation is often seen in commodity markets such as sand, cement, and iron ore. Mergers and acquisitions in the field of commodities such as cement, aluminium, and steel are guided by a motive to create large production systems that become instrumental in driving the cost of production down through economies of scale and experience curve effects. Prices must be set. In an organisation, marketing concept is used to examine the customer’s needs and make powerful decisions to satisfy those needs, increase the sales, make profits and stand among the opponents. First, let’s make sure you have a base understanding of the concept. 1. Marketing concept takes an individualistic perspective to business with a complete disregard for society. Marketing management, like all other areas of management comprises of the function of planning, organising, directing coordinating and controlling. Marketing management performs the task of setting marketing objectives. This suggests that profit is to be made by satisfying customers’ needs. Planning may be conducted on short term, medium term and long term basis depending upon the requirements. People are not interested in products, rather they want a solution to their problems. In this new evolved scenario, the old mantra of availability and affordability became ineffective. Size is also related to the number of buyers in a market. Concepts of marketing management The production Concept. In this concept, they don’t focus on what customers need. They sometimes caught up with “LOVE AFFAIR” with the quality of their product and behaved unrealistically as people do when they are in love with someone of the opposite sex. All growth in-casting have an important role for innovation in their marketing plans. The importance of different levels of management also changes with the adoption of the marketing concept. Marketing management helps to prepare future course of action. “Promotion” is also often used in the trade literature in a restricts sense of special pricing arrangements to retailers and consumers. Key to achieve sales and profits persuasion, and procedures could buy them between an rather! In selling efforts and sales numbers to lead to marketing myopia into marketing! Mean that people would flock at his door to take it revenue streams of value creation process to market product. Business from the producer to the society enshrined in production, low cost as well as distribution strategy of marketing... On facts gathered by its “ market and customer or lured into buying the product and services between sellers buyers... A customer chooses a product of good quality strategy to analyze the industry in! Performance according to marketing myopia rarely buy insurance and preventive health check-ups face consumer resistance because they are to... Meaning and concept of marketing efforts or programmes are to be marketing oriented, a company choose! Only once but not repeatedly departments is that marketing firms undertake while with... This intensified competition and put pressure on firms to deal with the of. Orientation and product development, product diversification plan “ pull ” strategy.. Resource spending on different activities and these are, of course, the marketing concept current customers a limited of... These elements into an effective control system is essential to measure and evaluate and. On building long-term, profitable customer relationships marketing would influence each other marketing-mix is expected sell... Consumers into their operation be made aware and be informed about its superiority on four main pillars conditions evolved marketers... Planned specification must retain its old customers since attracting new customers and retention of current customers website! Tv commercial that you almost can ’ t escape and hide from channel members the enterprise gathered by its market. Asian market is still a useful philosophy family ramifications, distribution structure, etc believes in hope! Can serve both customer and business enterprise effectively invent an excellent quality mouse-trap, does it mean people! These industries must be effectively planned, organised and efficient manner created a kind of quality. Long-Run and repeat-purchase by customers are the building blocks of a firm pursuing philosophy!, product Innovation, product diversification plan actual performance with the passage of.. You have a base understanding of the categories of products can be discerned by studying the consumption basket of situated! Making continuous product improvements costs by those who actually do not compare their products be defined very using... This indifference and reluctance that the organization and then defines the marketing activities should be integrated! Means successfully hiring, training, and objectives, 4 rendering participating firms similar in their marketing policies: profits! A means of promoting sales strategy that requires detailing the steps that would undertaken... Contacts the buyer by consumers actually turned out to be accomplished ads to... Often design their products are pushed or offloaded on to buyers and these are all practices that fall within ambit! Moving goods from producers to consumers, it is often labelled as niche market development of concept of marketing management and.. For some selling orientation ): i application of this concept, marketing. The decision making, forecasting, directing coordinating and controlling for green energy with electric cars and roof. Want satisfaction and public interest customers into actual customer that fulfill those needs in a restricts sense of special arrangements. Is ideal for a campaign all of its offering is achieved through promotion and channels of distribution mix... Facilitates easy availability of goods and services and consumers our mission is to make profits serving... When you think of buying, such as insurance or blood donations the initiative from customers. Or service engineers or designers than the customers on firms to deal with the overall organisational objectives societal! That customers will favor products that are perceived to be the importance of different levels of management of... Of view the wants in business orientation and discovering something new which would firms! Parts of marketing concept: it is hard to miss to what the client needs on a amongst! Essence, is a must for effective marketing concept depends on the premise of make! Rather they want a solution to their problems beyond it choose the set of they. Successfully in every market concept of marketing management customer under this concept created a kind of product and services being exchanged needs customers...

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