Unit I Introduction for Marketing Management MCOM sem 2 Delhi University
Marketing management is a broad scope of the study of marketing focusing on the practical application of the techniques and marketing activities of a certain company or business. This business discipline encompasses marketing planning and strategy, orientations, and processes needed in attaining company goals by providing value to clients. Since it has a wide coverage involving all factors required to satisfy customers, marketing management must be all-pervasive and part of every employee’s scope of work, from the subordinates to those in the higher management.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University
Marketing Research and Analysis
A business firm must be able to conduct a marketing research and create an analysis of the market as these processes help in the understanding of business goals and the way the market operates. Structurally, marketing analysis is conducted with focus on the customers or potential market, the organization or the company, and the competitor.
In customer analysis, a very important aspect is developing market segmentation where various customers are categorized into different classifications. Marketing managers must be able to profile each market segment and classify them according to variables such as demographics, behavior, needs, and other factors to be considered in grouping customers. When the customers and potential market are properly segmented, it is easy to fulfill and satisfy their needs based on the factors considered for each classification.
The second aspect is to make an internal marketing analysis within an organizational structure. A business or company should be able to understand its core competencies and its capacity to compete with other businesses. This means putting into great consideration company resources and manpower, cost position in comparison to other organizations, and profitability of the company. Company analysis is figuring out how the business can thrive in a competitive market and the industry it functions.
Apart from developing detailed profiles on different market segments, competitors should also be studied in terms of strengths and weaknesses. A business that knows the moves and understands the trend of its competitor is able to get into the main competition and is not left behind. So, marketing managers must know how to analyze other businesses in the industry they operate in, considering factors such as source of profit, resources, cost structure, and product comparison among others.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University
In marketing management, research is very crucial in the process of creating market analysis. With marketing research, a company is able to gather the data necessary for accurate market analysis. There are two primary methods in conducting a marketing research. The first technique is called qualitative marketing research and an example for this is focused-group study. The other one is called quantitative marketing research which may be conducted through statistical surveys.
In the field of marketing, once a business is finally able to adequately profile its customers and competitors, along with its competitiveness in a particular industry, marketing managers can design marketing strategies that are important in capitalizing on company profits and resources. Important strategic decisions in marketing are grounded on specific objectives such as that of maximizing revenue, market share, and level of profitability.
In attaining the marketing objectives, a company must determine the specific market segments targeted for the particular business. With a specific selection of target customer segments, company resources are maximized instead of being put to waste and revenue increases subsequently. Additionally, companies are also able brand their business with a key benefit that distinguishes the company from the rest of its competitors.
Unit I Introduction for Marketing Management MCOM sem 2 Delhi University
A company that aims to excel in business must allocate time in developing and maintaining good marketing orientation. A business with market orientation puts utmost importance and focus to the customers. Marketing managers perform this in a structural process with the help of different departments within the organization. The marketing department can work hand in hand and coordinate with research and development team, engineering, operations, manufacturing, sales, and other departmental areas to materialize marketing schemes. Simply put, intra-departmental efforts and interaction help the entire company push its marketing plans.
Before marketing programs and activities are even implemented and performed to the target markets, these plans should be workable within the organization. Marketing plans must be effectively fulfilling internally so that the company is confident enough that it will work and become efficient when these programs are applied to the identified market segments.
What is Marketing?
Continuous exposure to advertising and personal selling leads many people to link marketing and selling, or to think that marketing activities start once goods and services have been produced. While marketing certainly includes selling and advertising, it encompasses much more. Marketing also involves analyzing consumer needs, securing information needed to design and produce goods or services that match buyer
expectations and creating and maintaining relationships with customers and suppliers. The following table summarizes the key differences between marketing and selling concepts.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University
Evolution Of Marketing
As noted earlier, exchange is the origin of marketing activity. When people need to exchange goods, they naturally begin a marketing effort. Wroe Alderson, a leading marketing theorist has pointed out, ‘It seems altogether reasonable to describe the development of exchange as a great invention which helped to start primitive man on the road to civilization’. Production is not meaningful until a system of marketing has been established. An adage goes as: Nothing happens until somebody sells something.
Although marketing has always been a part of business, its importance has varied greatly over the years. The following table identifies five eras in the history of marketing: the production era, the product era, the sales era, the marketing era and the relationship marketing era.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University
Match the following:
(1) Product marketing – (A) AIDS awareness campaign
(2) Service marketing – (B) Selling iron ore to a steel manufacturer
(3) Consumer marketing – (C) Selling ice creams to adults
(4) Industrial marketing – (D) Disney setting up a park in Hong Kong
(5) International marketing – (E) Setting up an ayurvedic massage center
(6) Non-profit marketing – (F) Selling electric bulbs
Functions of Marketing
Firms must spend money to create time, place and ownership utilities as discussed earlier. Several studies have been made to measure marketing costs in relation to overall product costs and service costs and most estimates have ranged between 40-60 percent. These costs are not associated with raw materials or any of the other production functions necessary for creating form utility. What then does the consumer receive in return for this proportion of marketing cost? This question is answered by understanding the functions performed by marketing. In the following table, marketing is responsible for the performance of 8 universal functions: buying, selling, transporting, storing, standardizing and grading, financing, risk taking and securing marketing information. Some functions are performed by
manufacturers, others by marketing intermediaries like wholesalers and retailers. Buying and selling, the first two functions represent exchange functions. Transporting and storing are physical distribution functions. The final four marketing functions – standardizing and grading, financing, risk taking and securing market information – are often called facilitating functions because they assist the marketer in performing the exchange and physical distribution functions.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University.
Classical marketing is often described in terms of the four “P’s, which are:
- Product – what goods or services are offered to customers
- Promotion – how the producer communicates the value of its products
- Price – the value of the exchange between the customer and producer
- Placement – how the product is delivered to the customer.
A complete analysis of these categories is often called the Marketing Mix. More detail on these categories can be found in the later entry on the Marketing Plan.
Marketing has both inbound and outbound activities. Inbound activities largely center on discovering the needs and wants of the potential customers. The collective group of all potential customers is called a market. Categorizing these needs into groups is called segmentation. Organizing markets into segments allows a producer to more logically decide how to best provide value to that group of potential customers. The analysis of market segment needs; analysis of existing sales and profitability; the descriptions, design and introduction of new products; and the analysis of competitor offerings are also inbound activities that are important but not often seen by the public.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University.
Outbound activities include all aspects of informing the market that a product is available, delivering that product, and encouraging the purchase decision. These activities include advertising, promotion, supply chain, sales support, product training, and customer support.
To the public, the most common interaction with marketing is where it touches the discipline of sales in the form of advertising. This interaction leads to a common misconception that marketing is only this aspect of promotion. Instead, it is useful in understanding that:
The good marketer will develop the data necessary to define the customer’s needs, develop a good product based on the available resources, deliver the product in an effective manner to the consumer at a price that reflects the customer value and the profit desired by the producer.
When the producer is a commercial entity and the end user makes the purchasing decision, the model used to describe this transaction is often called a Business to Consumer (B2C) model. When the producer is a commercial entity and a second commercial entity makes the purchasing decision but provides the product to their customer, then the model is often called a Business to Business (B2B) model. The difference in these models affects how the marketer constructs his marketing analysis and marketing mix.Unit I Introduction for Marketing Management MCOM sem 2 Delhi University.
Study Material that you should use to prepare M.COM
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