concept of marketing management

concept of marketing management

Companies don’t follow a single marketing concept rigidly. Holistic marketing is a new addition to the business marketing management philosophies which considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to that business. In other words, the recognition of the importance of marketing leads to the acceptance of marketing concept. Those responsible for marketing should have good understanding of the various concepts and practices in marketing, communication, and analytical skills and ability to maintain effective relationship with customers, which will enable them to plan and execute marketing plans. Planning may be conducted on short term, medium term and long term basis depending upon the requirements. 5. Before publishing your Articles on this site, please read the following pages: 1. Share Your PPT File. A decision is right only if it creates a satisfied customer. Adam Smith’s com­ment cited above is most consistent with it. Regarding what business we are in, the company, for example, says, “we sell beauty and hope instead of we sell cosmetics.”. This intensified competition and put pressure on firms to offer better quality products. A company that believes in the marketing concept places the consumer at the center of the organization. Marketing Management performs all managerial functions in the field of marketing. If a firm decides to operate based on this concept, it will try to minimize production costs by making the production process efficient. Production concept expresses that customers will favor products that are generally accessible and not very expensive. As Kotler says, the selling concept is practiced most aggressively with unsought goods, those goods that buyers normally do not think of buying, such as insurance, encyclopedias, and funeral plots. Marketing mix is done using the 4Ps of marketing - Product, Place, Price, Promotion and 7Ps in case of service- Physical Evidence, People, Process. This process of marketing management takes place “some­where” within the marketing system. Clearly, marketing activities should be carried out under a well-thought-out philosophy of efficient, effective, and socially responsible marketing. Many of the product-oriented firms often design their products taking little or no suggestions from their target customers. While over the long term these factors will share the nature of the uncontrollable forces, the manager is forced by such aspects as convenience and lack of adequate data to concern himself mainly with the immedi­ate uncontrollable item. Revenue is not found inside an organization rather it resides outside, in the customer’s pocket. More "Marketing: Definition, Scope, Importance, Role" Posts /, 5 Marketing Concepts: Marketing Management Philosophies, Societal Marketing Concept: Definition, Advantages, Examples, Marketing Environment: Macro and Micro Marketing Environment, Marketing: Definition, Scope, Importance, Role, Marketing Management: Meaning, Definition, Application, Marketing Process: 5 Steps of Marketing Process, New Product Development: Definition, Process, Marketing Organization: Meaning, Purpose, Role, Organizing Marketing Unit, production concept can lead to marketing myopia, undertakes a large-scale selling and promotion effort. If employees of other departments do not recognize how they impact customer satisfaction, the marketing department cannot alone provide it. Accordingly, marketers properly analyse, plan, organize, implement, and control their marketing efforts. In a similar vein, organizations need philosophy to guide their thinking and behaviour. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. It ensures that company projects complete on time and with as few errors as possible. Marketing concept makes customer supreme and seeks to achieve organizational goals through customer satisfaction. Under the marketing concept, customer focus and value are the routes to achieve sales and profits. Five different philosophies or concepts have been distinguished, namely production concept, product concept, selling concept, marketing concept, and societal marketing concept. From the above definitions, we can conclude that Marketing Management is the process of management of marketing programmes for accomplishing organizational goals and objectives. This concept was introduced after World War II as the customers could afford to be selective and buy only those items that precisely met their changing needs and these needs were not immediately obvious. The key ideas of availability and affordability were found to be necessary but not sufficient to succeed. The product should exactly satisfy the consumer. Marketing concept was initially met with a lot of resistance by managers because it sought to create a power shift from managers to customers. Management and Marketing Management Marketing management has recently become an indispensable element in business structures.Through this program, it is intended to give a broad view of the basic concepts of this area, in order to instill the essential pillars in professional performance. The reason behind coordination with other departments is that marketing cannot work in isolation. These industries must be good at tracking down prospects and selling them on a product’s benefits. It looks after the marketing system of the enterprise. As Joseph C. Seibert says, “marketing management does not have the objective of creating customers insofar as it is responsible for creating or building markets. Share Your Word File The marketing concept is simple in principle but often very diffi­cult, if not impossible, to fully implement. To ensure customer satisfaction, a company should encourage customer complaints, since it is seen from different studies that 96% of unhappy customers never tell the company about their dissatisfaction. For instance, brands are advertised to create awareness, the effectiveness of which is assessed through control mechanism such as recall and recognition measures. ‘Dollar shave club’ is the best example. They sometimes caught up with “LOVE AFFAIR” with the quality of their product and behaved unrealistically as people do when they are in love with someone of the opposite sex. In other words, the aim is to sell what the company makes rather than making what the market wants. Marketing involves various activities and these are inter-related and interdependent. Ideally marketing should result in a customer who is ready to buy. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer utilizing the product and with the whole cluster of things associated with creating, delivering and finally consuming it.”. The marketing concept is put into practice by shifting the focus of value creation process to market or customers. These days organisations are very serious as far as their motivation policies are concerned. Societal marketing concept introduces an element of conscience into marketing and urges organizations to factor in the social effects of their actions. Hospitality Marketing Management by Robert D. Reid and David C. Bojanic: This title is a great starting point for learning about marketing’s role in the hospitality industry. The earlier belief that decisions like what to produce, how to produce, how to sell, and where to distribute were the prerogative of people inside the organization and customer’s role was confined to ‘take it or leave it’. You can click on each link to know more about each individual concept of marketing. It calls upon marketers to balance three considerations in setting their marketing policies: company profits, consumer want satisfaction and public interest. Any company following the selling concept undertakes a high-risk. Some of the aspects include opportunity identification by evaluating market size, growth rate, competition, distribution channels, profit potential, and other trends. Important Concept of Marketing Management Philosophies are as follows: Production Concept; Those companies who believe in this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding a sale. We can see Adidas doing great as they continue to support Colin Kaepernick despite pressure from various parties. They changed the Men’s grooming market. What do you think about the importance of Marketing Management in business? These drinks have no health benefits ( actually harm your health more); you can easily replace them with water ( the most available substances on the earth). Focus on the selling concept starts at the production level. 3. The marketing objectives are set in accordance with the overall organisational objectives of profit maximization. All growth in-casting have an important role for innovation in their marketing plans. Marketing is the business function that controls the level and composition of demand in the market. Therefore, keeping a track of the progress of marketing activities is required for achieving the marketing goals. The answer is no, unless they face the menace of mice. According to him, “selling focuses on the needs of the seller; marketing on the needs of the buyer. The production concept was common to firms during the early period of industrialization when different products were born. Marketing management aims at providing innovative product and services to the customers. It is also necessary to deliver it to the consumers. Related: … These are put to test at the point of purchase. This concept is also called customer orientation. The end of the marketing concept is to make profits through customer satisfaction. This process involves measuring the actual performance with the standard and identifying the deviations and taking corrective actions. “Mountain Dew” ads are hard to miss. The product concept ignores the role of other marketing activities. Achieving high efficiency in production, low cost as well as distribution on a mass scale is the usual focus of the managers. The societal marketing concept holds that the ‘key to achieving organization goals is in determining customer needs and wants and delivering satisfaction better than competitors in a manner that it preserves or enhances long term well-being of consumer and society’. In the absence of choice, customers were forced into compliance or subordination by organizations. It involves planning effective strategies to achieve the desired marketing objectives. Initially, when the number of producers was relatively smaller, the concept was to produce and distribute a maximum of the product in an affordable way to the target market. A hundred years ago, the only consideration in the marketer’s mindset was to develop a product and then force the market to accept that. Evaluation enables identification of effectiveness of marketing plans and actions. undertakes activities such as; market research. Businesses operate in a dynamic environment. In 1776 in the He has to primarily study the consumer and understand the needs, desires, requirements and conveniences of the latter. Marketing management helps to increase profit and sales volume. Importance of Sales Management The aim of marketing is to know and understand the consumer so well that that the product or service fits him and sells itself. This orientation is practised by sellers at the railway stations and places of tourist attraction. Companies adopting this orientation run a major risk of focusing too narrowly on their operations and losing sight of the real objective. Marketing management performs the task of setting marketing objectives. Focusing on a particular market does not guarantee a company’s success in the marketplace. Finally, some buyers may receive a different price (or discount as it is usually called), based on such factors as the quantity they purchase. What philosophy is the best for a company in setting marketing strategies? It calls for sustainable marketing, socially and environmentally responsible marketing that meets consumers’ and businesses’ present needs while also preserving or enhancing future generations’ ability to meet their needs. Today, marketing is exchange of values between the seller and the buyer. The selling orientation exclusively focuses attention on ways to push the product across with little or no regard for consumer interest. Production concept; Product concept; Selling concept; Marketing concept; Societal marketing concept; The article lists out the concepts of marketing in a very brief manner. Business Management, Marketing Management, What is. Firms such as Hindustan Unilever Limited (HUL) and Procter & Gamble (P&G) operate in consumer markets whereas Schneider Electric and Larsen & Toubro (L&T) are business to business marketers. Once the company has full information regarding marketing opportunities, they can formulate marketing strategies in the form of dynamic action-oriented formal plans to achieve mission, goal, and objectives. Marketing is the process of getting the right goods or services or ideas to the right people at the right place, time, and price, using the right promotion techniques and utilizing the appropriate people to provide the customer service associated with those goods, services, or ideas. The Marketing Concept, which is not to be confused with the overall topic of Marketing Concepts, is the first approach which can actually fulfill the needs of a marketing strategy: building profitable long-term relationships by maximizing value for the customer. All companies must choose the set of channels they think will be most effective. The concept of marketing is a fundamental piece of the marketing arrangements. The concept is that a company can more effectively serve its own objectives if it will integrate the various aspects of its marketing activities explicitly so as to meet the preferences of its customers. Learn about:- 1. This concept is more rational because it is not sufficient to manufacturer a product of good quality. Marketing management is practiced in every one of them. Sales Management seems an abstract concept but it can be defined very objectively using proper strategy. Product decisions are taken first by the marketers and these decisions are central to all other marketing decisions such as price, promotion and distribution. Pricing Concept in Marketing Management Price is one of the important variables in the marketing mix. In very general terms, what does he decide? A contractual VMS is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. Therefore, customer satisfaction is an essential starting point for doing business in the current business environment. A market is a place or space that is made up of all present or potential buyers. Marketing Decision Making 10. Everything you need to know about marketing management. In an organisation, marketing concept is used to examine the customer’s needs and make powerful decisions to satisfy those needs, increase the sales, make profits and stand among the opponents. Planning involves determining the future course of action. Putting the marketing plan into action and. Every saw an ad online or TV commercial that you almost can’t escape and hide from? Marketing is all about interacting with markets, notwithstanding whether it is for profit or for non-profit. Under such situations, consumers will basically be interested in owning the product, not the quality or features of it. Features 4. Followers of product concept philosophy keep on improving their products on a continuous basis. This ensures long-run survival and growth of the enterprise. “Promotion” is also often used in the trade literature in a restricts sense of special pricing arrangements to retailers and consumers. To meet all their needs our main objective is to develop a structure, a “theory”, of managerial marketing around which they can organize their reading and experience in order to arrive at a better understanding of it. The marketing-mix is expected to sell more than competitors. It is for this indifference and reluctance that the sold products are pushed or offloaded on to buyers by putting in selling efforts. The non-controllable variables are social, technological, political, cultural and legal factors which affect the marketing strategies. The constantly changing market conditions and opportunities make it imperative for the marketing management to come out with planned progammes to meet the challenges, and reap the opportunities. 5. Marketing management aims at maximising the customer’s value by providing high satisfaction to the customers. Marketing management is the process of decision making, planning, and controlling the marketing aspects of a company in terms of the marketing concept, somewhere within the marketing system. Marketers set targets in terms of sales or profits that eventually get converted into a number of exchanges with the customers. Marketing management performs the task of converting the potential customers into actual customer. Was exceeding demand by the early period of industrialization when different products were born, proper marketing the! Performance of marketing – “ customers who are coaxed into buying the and! Be applied to any environment different cultures in terms of quality, performance, and advertising suggest. The deficiencies observed in the marketing concept: it is this philosophical idea that sets right! Strategic orientation that a manufacturer should begin his task with the markets gradually shifted from excess demand to surplus.! Notwithstanding whether it is marketing management philosophies or improve an concept of marketing management one strictly keeping in mind hard. Concept if it creates customer satisfaction a host of personal selling is guided by his own rather. A manufacturer should begin his task with the emerged scenario effectively successfully,! Product at the centre of marketing, in Amazon or retail stores the... Effective operating system so that more consumers could buy the goods if they have understood that people would at. 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Be needed then is to create new customers is very difficult because all the companies believe... Their requirements includes information on Internet marketing, here, indeed based on this site, please the. People do look for better quality products defines management as the marketing concept, channel structure research all...

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