Professional Documents
Culture Documents
I. Definitions: Management
I. Definitions: Management
Good Marketing is not an accident but the result of careful planning and execution .
I. Definitions
Social definition
A societal process by which individuals and groups obtain what they need and want through
creating, offering and freely exchanging products and services of value with others
Management Definition
It is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational goals.
Marketing is an art and science
Finance, operations accounting , production and other functions will not really matter if
there is no sufficient demand for the products and services.
Marketing is meeting the needs profitably both of marketers and customers.
The aim of marketing is to know and understand the customer so well that the product or
service fits him and sells itself.
E.g.: Waiting lines and customer full restaurants, waiting period for the vehicles etc.
Demand
This is the wants for specific products backed by an ability to pay.
Marketers should try to shape the wants.
Many customers don't know what they want when the product is new, concept or service is
new.
So companies help the customers to learn what they want.
E.g. chips, soft drinks are the party food, chocolates for celebrations, diet food
product, fitness and weight loss programs etc.
Exchange
Get something (product /service) by offering something in return.
E.g. kind (barter) or money (value )
Exchange is a value creating process because it leaves both parties better off (win – win
situation)
Transaction
A transaction is an exchange between two things of value on agreed conditions and a time
and place of agreement.
To make successful transaction a marketer should understand what each party expects from
transaction.
i. Production concept
Consumers will prefer products that are widely available and inexpensive.
Managers of production oriented businesses concentrate on achieving high production
efficiency, low costs, mass distribution.
ii. Product Concept
Consumers will favor those products that offer the most quality, performance, innovative
features.
Managers in these organizations focus on making superior products and improving them over
time.
iii. Selling Concept
Consumers ,if left alone, will ordinarily not buy enough of the organization’s products.
The organization must therefore, undertake aggressive selling and promotion effort.
The aim is to sell what companies make rather that what the market wants.
iv. Marketing Concept
Customer-centered, sense and response philosophy.
The job is to find right products for your customers.
The key to achieve organizational goals consists of the company being more effective than
competitors in creating , delivering and communication superior customer value to its chosen
target markers.
v. Holistic Marketing Concept
Based on development, design and implementation of marketing programs, processes and
activities.
vi. Societal marketing Concept
Organization’s tasks is to determine the needs, wants and interests of target markets and to
deliver the desired satisfactions more effectively and efficiently than competitors in a way that
preserves or enhances the consumer’s and the society’s well being.
V. Strategic Planning
A game plan for achieving company’s long term objectives.
Key areas
Managing company’s business as an investment portfolio
Assessing each business that market.
Establishing a strategy.
Planning, Implementation & Control
Planning
Corporate planning
Division planning
Business planning
Product planning
Implementing
Organizing
Implementing
Control
Measuring results
Diagnosing results
Taking corrective actions
A marketing plan is the central instrument for direction and coordination the marketing
efforts.
The strategic marketing plan lays out the target markets and the value proposition that will
be offered based on an analysis of the best market opportunities.
The tactical marketing plan specifies the marketing tactics including product features,
promotion, merchandising ,pricing ,sales channels and service.
Marketing Plan
It summarizes what the marketer has learned about the marketplace and indicated how the
firm plans to reach its marketing objectives.
It contains tactical guidelines for marketing programs and financial allocations over the
planning period.