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Marketing Management
Lakshmi Challa
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Introduction
Marketing managers are
concerned with marketing
organization, products, brands,
channels, physical distribution,
pricing, advertising andpersonal selling.
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Management Process
The management process
consists basically of: (i)
developing a plan or
programme; (ii) executing it;
and (iii) evaluating the results.
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Management
Management is required to plan,
organize, co-ordinate and control the
affairs of the organization. It bringsthe human and material resources
together and motives the people for
the achievement of the objectives of
the organization.
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Process of Management
Planning
Organizing
Staffing
Directing Coordinating
Controlling
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Planning:
It is an intellectual process. It is a continuous andnever ending process. It is performed bymanagers at all levels. Planning means deciding inadvance what should be done, what to do, when
to do, where to do it, how to do it and how toevaluate the result.
The process of planning includes thedetermination of organizational objectives, and
the formulation of plans, policies, strategies andprogrammes, procedures and schedules toachieve the desired organizational objectives.
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Organizing:
Organizing means bringing together themanpower and other resources viz. men, money,
machinery, materials, etc. and putting them into
working order for the achievement of objectives
laid down in the enterprise.
Louis Allen defines organization as the process
of identifying and grouping the work to be
performed, defining and delegating responsibilityand authority and establishing relationship for
the purpose of enabling people to work most
effectively together in accomplishing objectives.
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The process of organization
involves the following steps:
To identify the work to be performed.
To classify or group. To assign these groups of activities, or work to
individuals.
To delegate authority and fix responsibility. To establish structural relationships
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Staffing:
This function involves manning the positionscreated by the organization process. It isconcerned with human resources of an
organization. According to Koontz and ODonnel, The
managerial function of staffing involves manningthe organizational structure through proper and
effective selection, appraisal and development ofpersonnel to fill the roles designated into thestructure.
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Staffing consists of the following:
Man power planning i.e. assessing manpower
requirements in terms of quantity.
Recruitment, selecting and training
Placement of man power
Development, promotion, transfer and
appraisals
Determination of employee remunerati
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The functions of directing It involves the following activities:
Communication: It is a process of passing informationfrom one person to another. It involves systematictelling, listening and understanding.
Leadership: It is the process of influencing the behaviorof sub-ordinates and guiding and leading the sub-ordinates in the proper and systematic performance ofwork.
Motivating: It is the task of inspiring the sub-ordinates
to do their work with interest and enthusiasm for theaccomplishment of the goals of the organization.
Supervision: Supervision means overseeing the workperformance of the sub-ordinates.
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Coordinating:
An organization is divided and sub-divided intodifferent segments or sections for the purpose ofreaping the benefits of specialization. Because ofthe division of activities, it is necessary to
synchronize, harmonize or, unify the activities ofthe various groups of people towards theattainment of the objectives of the enterprise.Co-ordination is the orderly arrangement of
group efforts for unifying the actions of thevarious groups for achieving the common goals ofthe organization.
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Controlling:
It is concerned with seeing that all activities ofthe controlling of the enterprises are being
conducted in conformity with the plans.
Controlling may be defined as determiningwhat is being accomplished, that is, evaluating
the performance and if necessary, applying
corrective measures so that the performance
takes place according to plans
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The process of controlling
It involves the following steps:
Establishing standards of performance.
Measuring actual performance with thestandard.
Comparing the actual performance with the
standard.
Finding the variances or deviations, if, any, and
Taking corrective actions or measures.
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Determining Objectives:
The main objectives are
To obtain certain profit in the long run and
also good sales.
Setting goals and communicating with the
concerned persons.
Goals set should be realistic and relevant.
Planning operation decisions should be in line
with the goals.
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Planning:
Planning is a manner of achieving goals.
The period of setting goals can be short or
long; may cover product or products.
The method of adopting an overall plan of
action for achieving the pre-determined
objective is termed as strategy.
The detailed methods and techniques used in
implementing the strategy isTactics.
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Organizing:
Process of arranging activities and the people toachieve the maximum output with highest degreeof efficiency.
Organizational policies and practices should becompatible with marketing plans.
Should have the necessary capabilities forachieving the marketing goals.
A draft of promotional programmes andcampaigns are planned for taking actions inexecuting the policies and implementing themarketing plans.
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Coordination
There should be a coordination of all activitiesthat are carried out by the company to sustainthe customer.
Effective coordination between sales, advertising,marketing research, customer service is required.
Production department should coordinate withmanufacturing department for proper quantity
and quality of products at the right time and forgiving information about the product for salestraining.
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Controlling
This is required for proper decision and action.
The four phases of the controlling function are
Establishment of performance standards Measurement and feedback of performance
results
Evaluation of actual performance againststandards, and
Action is indicated by the evaluation
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Staffing
Important function is to assess the human
resources for proper selection of personnel. To eliminate or reduce management
problems.
Operating Implementation of the programme.
Important as success depends upon the waythe business is operated.
Includes operating sales force and directing anadvertising programme.
E l ti
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Evaluating:
The results of the company's
activities are analyzed and
evaluated.
Determines if they have beensuccessful in goal setting and
implementation.
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Evaluating
It comprises of four areas
Analysing marketing costs by territories, productsor customer groups.
Evaluation of performance of the individualsalesmen.
Evaluation of the effectiveness of advertisingprogrammes by both manufacturers and
middlemen. Performance evaluation of middlemen by
individual manufacturers.
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Marketing Organisation Structure
It is necessary to keep in mind that the aim of
the company is to satisfy customers' needs
before deciding the type of organisation
structure. It should be customer oriented,should not be rigid so as to make it difficult to
adjust to the changing conditions. The
organisation may be on the basis of functions,products, types of customers or a combination
of these.
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Types of organizations
Functional Organization
Products Organization
Territory or Area Organization
Customers Type Organization
Combined Type Organization
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Functional Organisation
The simplest and most common type and is
suitable for a small company.
The work of the marketing department is
divided according to functions with all the
functions reporting to a marketing executive.
It is based on the principle that more varied
skills are needed to handle different marketing
functions effectively.
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Products Organisation Structure
Marketing decision of particular products or
brands are assigned to the product manager.
The product manager decides on matters like
advertising and sales promotion in
consultation with the advertising sales
promotion marketing research and
publications managers.
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Territory or Geographical
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Territory or Geographical
Organisation Structure
The duties are divided and assigned on
the basis of specific areas to different
persons.
The regional manager and his staff
become experts in their particular
territory with all matters concerned withthe customers.
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Customers Organisation Structure
Emphasis is laid on the types of
consumers, distributors, retailers,
ultimate consumers.
Separate groups will be formed
for marketing programmes fordifferent types of customers.
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Combined Organization Structure
The function and product type of structure iscombined with the territorial type.
Generally has
Functional managers of sales, marketing services,and marketing information;
Product managers of food, chemicals,pharmaceuticals, toiletries, etc.,
Market managers of consumer, agricultural andindustrial products.
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Division of Authority
In a small marketing department, the entire
work is to be handled by the marketing
executive
In a large organisation responsibilities are
generally divided by the chief executive
among specialists, with technical knowledge
of activities -advertising, marketing researchor distribution and sale.
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Activities of the Marketing
Department The Marketing Manager or the Marketing department has the
follow specific responsibilities.
Develop a marketing policy
Organize the marketing function
Build a vigorous, strong sales force
Sponsor a continuing programme of business research
Analyze and interpret data on indicated trends
Participate in corporate decision making and develop detailedsales plans and budgets
Determine the most desirable channels of distribution
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Plan and direct the actual selling effort
Co-operatewith other functions at the top company level
Co-operate with other members of top management
Exercise general policy control over advertising and sales
promotion Provide those customer services that company products
demand
Give special attention to company's overseas marketingproblems
Encourage good employee relations
Periodically review the over-all marketing organisation andprogramme
The Functions of the Marketing
Manager