12.marketing management pom

8/10/2019 12.Marketing Management Pom

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MARKETINGMANAGEMENT

PRINCIPLES OF MANAGEMENT



MARKETING

Marketing is the ability to identify and satisfycustomer needs at a profit

Marketing concentrates on customer/clientsand what they need or want

customers are the essence of marketing -they are the source of sales and profits

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Aim of Marketing

The aim of Marketing is to have:

the right product or service

at the right price

at the right place

at the right time

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Simple Marketing System4

ndustry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information



M RKETING M N GEMENT

Marketing management is the art andscience of choosing target marketsand getting, keeping, and growingcustomers through creating,delivering, and communicating

superior customer value.

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Scope of Marketing……What isMarketed?

Goods

Services

Events

Persons

Places

Organizations

Properties

Ideas

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Goods 7



Services 8



Events 9



Persons 10



Places 11



Organizations 12



Properties 13



Ideas 14



Needs, wantsdemands

Markets Marketing &

Marketers

Utility, Value &Satisfaction

Exchange, Transaction

Relationships

Products

Core Concepts of Marketing 15



Core Concepts of Marketing

Need – food ( is a must )

Want – Pizza, Burger, French fry's ( translation of a needas per our experience )

Demand – Burger ( translation of a want as per ourwillingness and ability to buy )

Desire – Have a Burger in a five star hotel

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Who is a Customer ??17

Anyone who is in the market looking at a product / service for attention,

acquisition, use or consumption that s ati s fi es a want or a need



How Do Consumers Choose AmongProducts & Services?

Value - the value or benefits the customers gain fromusing the product versus the cost of obtaining theproduct.

Satisfaction - Based on a comparison ofperformance and expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

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Markets

Market – any place or process that bringstogether buyers and sellers with a view toagreeing a price

The basis of how an economy operates – throughproduction and subsequent exchange

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Metamarkets : cluster of complimentary productsand services that are closely related in the minds ofconsumers, but spread across a diverse set ofindustries

E.g. – An automobile metamarket consists of

Automobile manufacturersNew and used car dealers

Financing companies

Insurance companies

Spare parts dealers

Auto magazines

Classifieds auto ad in news papers etc.

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Target markets

A target market is a group of customers towardswhich the business has decided to aimits marketing efforts and ultimatelyits merchandise towards

A well-defined target market is the first element toa marketing strategy

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COMPANY ORIENTATIONSTOWARDS MARKETPLACE 22

Production

Selling Marketing

Product

Societal



23The Production Concept, one of the oldest in business,holds that consumers prefer products that are widelyavailable and inexpensive.The Product Concept holds that consumers favor thoseproducts that offer the most quality, performance, orinnovative features.The Selling Concept holds that consumers andbusinesses, if left alone, will ordinarily not buy enough ofthe organization’s products. The organization must,therefore, undertake an aggressive selling andpromotion effort.



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The Marketing Concept holds that the key to achievingorganizational goals consists of the company being moreeffective than its competitors in creating, delivering, andcommunicating customer value to its chosen targetmarkets.

The Societal Marketing Concept, which holds that theorganization’s task is to determine the needs, wants, and

interests of target markets and to deliver the desiredsatisfactions more effectively and efficiently thancompetitors in a way that preserves or enhances theconsumer’s and the society’s well-being.



Product life cycle

Product Life Cycle – shows the stages thatproducts go through from developmentto withdrawal from the market

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The Stages of the Product Life Cycle:Development

Introduction/Launch

GrowthMaturity

Saturation

Decline

Abandonment

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Product Life Cycle 27

Sales

Time

Development Introduction Growth Maturity Saturation Decline



The Development Stage:Initial Ideas – possibly large numberMay come from any of the following –

Market research – identifies gaps in the

marketMonitoring competitorsPlanned research and development (R&D)Luck or intuition – stumble across ideas?

Creative thinking – inventions, hunches?

28Product Life Cycle



Introduction stageFirst stage in the life of a product

The product is firstly introduced or entirelynew to the marketThis stage requires greater investment

In this stage profit are negative or lowbecause of low sales and heavy distributionand promotion expensesThe huge investment in the introduction stagecould be gradually recouped as the salespickup




Growth stageIn this stage the product gains

acceptance from the part of consumersand businessman.

Sales of the product increases and theprofit also increases




Maturity stageIn this stage competition become more

acuteThe sales continue to increase but at adecreasing rate

The producers spend more on advertisingand other sales promotion measures tocapture the market




Product Life Cycle

Saturation stage

It is a period of stability

In this stage the sales reach the peak andfurther increase is not possible

The demand for the product is stable andrise and fall of sales depends upon the

supply

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Product Life Cycle

Decline stage

During this stage the sale and profit begin todecline

The buyers go for newer and better and product

As the sales and profit decline some firm maywithdraw the product from the market and theremaining may reduce the number of their

products

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Product Life Cycle

Abandonment stage

At this stage there is no scope for profitable salefor the product

The product become totally out of date and outof fashion and the firm will drop the product fromproduct line

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