Marketing Management Definition and Basic Concepts (Part-II) Marketing

Marketing Management Definition and Basic Concepts (Part-II) Marketing Management and International Trade (DBM-312) A K JHA 1

Marketing Management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. 2

Marketing Management Involves: Demand Management : The organization has a desired level of demand for its products. At any point in time, There may be no demand, adequate demand, irregular demand, or too much demand, and marketing management must find ways to deal with these different demand states. Building Profitable Customer Relationships : Beyond designing strategies to attract new customers and create transactions with them, companies now are striving to retain current customers and build lasting customer relationships. 3

MARKETING MANAGEMENT PHILOSOPHIES The role that marketing plays within a company varies according to the overall strategy and philosophy of each firm. There are five alternative concepts under which organizations conduct their marketing activities: Production concept Product concept Selling concept Marketing concept Societal marketing concepts 4

Production Concept The philosophy that consumers will favour products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. 5

Product Concept The philosophy that consumers will favour products that offer the most quality, performance, and innovative features. 6

Selling Concept The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort. 7

Marketing Concept The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. 8

Societal Marketing Concept The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being. 9

The selling and Marketing Concepts Contrasted Starting point Focus Factory Existing products Means Selling and promoting Ends Profits through sales volume The selling concept Market Customer Integrated needs marketing Profits through customer satisfaction The marketing concept 10

Three Considerations Underlying The Societal Marketing Society (Human welfare) Societal marketing concept Consumers Company (Want satisfaction) (Profits) 11

MARKETING CHALLENGES INTO THE NEW CENTURY GROWTH OF NON-PROFIT MARKETING THE INFORMANTION TECHNOLOGY BOOM RAPID GLOBALIZATION THE CHANGING WORLD ECONOMY THE CALL FOR MORE ETHICS AND SOCIAL RESPONSIBILITY 12

THE NEW MARKETING LANDSCAPE The past decade taught business firms everywhere a humbling lesson. Domestic companies learned that they can no longer ignore global markets and competitors. Successful firms in mature industries learned that they cannot overlook emerging markets, technologies, and management approaches. Companies of every sort learned that they cannot remain inwardly focused, ignoring the needs of customers and their environment. 13