Wednesday, October 10, 2012, 05:59 AM
Posted by Administrator
Posted by Administrator
Market:- Market is a place where buyers and sellers meets and goods and services sales and buys producers.
Marketing:- It is a total system of business activities design to plan promote and distribute wantsatisfying goods and services to target market.
Marketing management:- It can be define as a art and science of choosing target volume and getting keeping andgrowing customer to creating delivering and communicating superior customer value.
1) Science and art
2) Choosing target market
3) Getting, keeping, growing customer (4ps)
1) Marketing Management is both a Science as well as an Art:-
Marketing Management is both a science as well as an art. The science of marketingmanagement provides certain general principles which can guide the managers in their professional effort. The Art of Marketing management consists in tackling every situation in aneffective manner. As a Matter of fact, science should not be over-emphasized nor should art bediscounted the science and the art of marketing management go together and are both mutuallyinterdependent and complimentary. Marketing Management is thus a science as well as an art. Itcan be said that-"the art of Marketing management.
2) Choosing target Market:- A marketer can rarely satisfy everyone in a market. Not everyone likes the same softDrink, automobile, college, and movie. Therefore, marketers start with market segmentation.They identify and profile distinct groups of buyers who might prefer or require Varying productsand marketing mixes. Market segments can be identified by examining Demographic, psychographic, and behavioral differences among buyers. The firm then decides which segments present the greatest opportunity—those needs the firm can meet in a superior fashion.
3) Marketing Mix
Marketers use numerous tools to elicit the desired responses from their target markets.These tools constitute a marketing mix Marketing mix is the set of marketing tools that the firmuses to pursue its marketing objectives in the target market. As shown in Figure 1-3, McCarthyclassified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion.Figure 1-3 The Four P Components of the Marketing Mix
Nature & Importance of Marketing Management
IMPORTANCE OF MARKETING MANAGEMAGEMENT
It would be difficult to imagine the world without marketing. But it may be equallydifficult to appreciate the importance effective marketing plays most aspect of our lives. We takefor granted the media that are largely supported by advertising. The vast assortment of goodsdistributed through stores close to your homes, and the ease with which we can make purchases.Lets consider for a moment how marketing plays a major role in the global economy , in theAmerican socioeconomic system in any individual organization and in your life.
1) Globally:- Profit and growth objectives are most likely to be achieved through a combination of domesticand international marketing rather then solely from domestic marketing.Until the late 1970s American firms had a large and secure domestic market. The onlysignificant foreign competition was in selected industries, Such as agriculture, or for relativelynarrow markets, such as luxury automobiles. But this change domestically through the 1980s asmore foreign firms developed attractive products, honed their marketing expertise, and thensuccessfully entered the US market. Imported products in some industries, such as officeequipment, autos, apparel, watches and consumer electronics, have been very successful. As aresult in recent years the U.S. has been importing more then its exports, creating large annualtrade deficits.
2) Domestically:- Aggressive, effective marketing practices have been largely responsible for the highstandard of living in the United States. The efficiency of mass marketing – extensive and rapidcommunication with customers through wide verity of media and a distribution system thatmakes products rapidly available- Combined with mass production brought the cost of many products within reach of most customers.
3)Organizationally:- Marketing consideration should be integral part of all short and long range planning in anycompany. Here’s why:
The success of any business comes from satisfying the wants of its customers which isthe social and economic basis for the existence of all organizations.
Although many activities are essential to a company’s growth , marketing is the only onethat produce revenue directly.
a) Services marketing:-
The U.S has gone through from primarily manufacturing economy to the world’s firstservice economy. As opposed to goods, services are activities that are the object of a transaction.For example transportation, communication entertainment, medical care, financial services,education and repair services account of over two third of the nation’s gross domestic product.
b)Not for profit marketers:- During 1980s and early 1990s many not for profit organizations realized thy neededeffective marketing programs to make up for shrinking government subsidies a decrease incharitable contribution and other unfavorable economic.DESIGNING DISTRIBUTION CHANNELS
To design channels that satisfy customers and out of competition, an organized approach isrequired. We suggest a sequence of four decisions.
1)Specify The Role Of Distribution:- A channel strategy should be designed with in the context of the entire marketing mix.Firstly, the firm’s marketing objectives are review and than the roles assigned to product, priceand promotion are specified.Each element may have separate role or two elements may have together roles. For Example Amanufacturer of pressure gauges may use both middle man and direct mail advertising toconvince customers.
2) Select the Type of Channel:- Once distribution role is specified, the most suitable type of channel for the companies’ product must be determined. At this point a firm needs to decide whether middleman will beused in its channel and, if so, which type of middle man.
3) Determine Intensity of Distribution:- The next decision relates to intensity of distribution that is, the mo. Of middle man usedat the wholesale and retail levels. Because of the desires of prospective customers good year ound it necessary to intensity its distribution and as a result, started selling most of a tire linesthrough discount outlets.
4) Choose Specific Channel Members: The last decision concerns the selection of specific firms to distribute the product.Sometimes a company trying to market a new product, it has little choice regarding whichchannel members to use. In this case, the company goes must with those middleman that arewilling to distribute the product
Physical distribution:- Physical distribution consists of all activities concerned with moving activities the rightamount of the right products to the right place at the right time.Physical distribution for manufacturers includes the flow of raw materials from their sources of supply to the production line and the movement of finished goods from end of this productionline to final user’s locations. Middleman manages the flows of goods onto their shelves as wellas their shelves to customer homes, store or other places of business.
The activities of physical distribution are order processing, inventory control, inventorylocation and warehousing, materials handling and transportation.
Strategic Use of Physical Distribution:- The management of physical distribution can enables company to satisfy customers need bitterly by reducing operating costs. The management of physical distribution can also effect afirms marketing mix
Selecting media:- Creation of message can be discussed before selecting the advertising media in which to place ad. The advertiser must make decision before selecting media
(i) Which type of media will be used?
(ii) Which category of the selected medium will be used?
(iii) Which specific media vehicles will be used?
(1) News Paper:- As advertising medium newspapers are flexible and timely. The life of newspaper is veryshort. They are discarded soon after being read. In many cities circulation of daily newspapers isdecreasing, because of growth of internet.
(2) Television:- Television combines motion, sound and special visual effects. In T.V message can be presented bitterly. However, TV ads lack performance, so they must be seen and understoodimmediately.
(3) Direct mails:- Direct mail has the potential of being most personal and selective of all media. Becausethe direct mail goes only to the people, the advertiser wishes to contact, there is almost nowastage coverage.
(4)Radio:-Radio is low cost per thousand medium because of its broad reach. Nearly 80% of American listens to the radio daily. Radio commercials can be produced in less than a week, at acost for below T.V. Because radio makes only an audio impression.
FIVE AIM OF ADVERTISING
1.Increasing the sales of the product/service
2.Creating and maintaining a brand identity or brand image.
3.Communicating a change in the existing product line.
4.Introduction of a new product or service.5.
Increasing the buzz-value of the brand or the companyThere are various aims of advertising but the primary aim is to attract the sales for thecompany. In fact, the ultimate aim of any organization is to enhance its profitability and it is only possible when the company may attract more sales. The second aim of advertising is to enhancethe visibility of the products and services among the consumers. In other words, advertising isaimed to increase the awareness of the customers. Advertising also plays an important role to build the image of the organization in the market. Through ads the company can build the imagewhich it wants to make in the minds of the people. Therefore, nowadays, companies spend ahuge amount of their budgets on advertising and promotional strategies.