Marketing Management (MBA – 202)

UNIT I
Q1. Explain the meaning and Scope of Marketing?

Ans. Marketing: the action or business of promoting and selling products or services, including
market research and advertising.
The activities of a company associated with buying and selling a product or services. It includes
advertising, selling and delivering products to people. People who work in marketing departments
of companies try to get attention of target audiences by using slogans, packaging design, celebrity
endorsements and general media exposure. Basically Marketing is all about product, place, price
and promotion (4P’s of Marketing)
Marketing is a process by which companies create customer interest in products or services. It
generates the strategy that underlies sales, techniques, business communication and development.
It is an integrated process through which companies build strong customer relationships and create
value for their customers and for themselves.
SCOPE OF MARKETING:-
(1) Study of Consumer wants and needs –
Good are produced to satisfy consumer needs and wants therefore study is done to identify
consumer needs and wants. These needs and wants motivate consumers to purchase.

(2) Study of Consumer Behaviour –

Marketers perform study of consumer behaviour. Analysis of buyer behaviour helps
Marketer in Market Segmentation and Targeting.

(3) Product Planning and Development –

It includes the activities of Product Research, Market Segmentation, Product Development,
Determination of the attributes, Quality and Quantity of Product.

(4) Branding –
Branding of product is adopted by man y reputed enterprises to make their products popular
among their customers and for many other benefits.

(5) Packaging –
Packaging is to provide a container and wrapper to the product for safety, attraction and
ease of use and transportation of the product.

(6) Channels of Distribution –

Decision regarding selection of most appropriate channels of distribution like whole saling,
distribution and retailing is taken by the Marketing Manager and Sales Manager.

(7) Pricing Policies –

 Marketer has to determine pricing policies for their products. Pricing policies differ from
product to product. It depends on the level of competition product life cycle, Marketing
goals and objectives, etc.

(8) Sales Management –

Selling is a part of Marketing. Marketing is concerned about all the selling activities like
customer identification, finding customer needs, persuading customer to buy products,
customer service, etc.

(9) Promotion –
Promotion includes personal selling, sales promotion and advertisement, right promotion
mix is crusial in accomplishment of marketing goals.
(10) Finance –Marketing is also concerned about the finance as for every marketing activity
be it packaging, advertising, sales force budget is fixed and all the activities have to be
completed within the limit of the budget.
(11) After sales service –Marketing covers after sales services given to customers, maintaining
good relationships with customers, attending their queries and solving their problems.
Q2. Explain the different philosophies of Marketing Management? Provide your
justification for the significance or utility of these philosophies in present business
environment?
Ans :- Philosophies refers to the orientation, approaches or concepts that a company focuses and
follows the decisions.
Under the Marketing Management philosophies, we shall study the following concepts:-
a. Production Concept :-
That company who believes in this philosophy thinks that if the goods/services are cheap
and they can be made available at many places, there cannot be any problem regarding
sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts in
reducing the cost of production and strengthening their distribution system. In order to
reduce the cost of production and to bring it down to the minimum level, these companies
indulge in large scale production. This helps them in effecting the economies of the large
scale production. Consequently, the cost of production per unit is reduced. The utility of
this philosophy is apparent only when demand exceeds supply. Its greatest drawback is that
it is not always necessary that the customer every time purchases the cheap and easily
available goods and services.

b. Product concept :-
Those companies who believe in this philosophy are of the opinion that if the quality of
goods or services is of good standard, the customer can be easily attracted. The basis of
this thinking is that the customers get attracted towards the products of good quality. On
the basis of this philosophy or idea these companies direct their marketing efforts to
increase the quality of their product.
It is a firm belief of the followers of the product concept that the customers get attracted to
the products of good quality. This is not the absolute truth because it is not the only basis
 of buying goods. The customers do take care of the price of the products, its availability,
etc. A good quality product and high price can upset the budget of a customer. Therefore,
it can be said that only the quality of the product is not only way to the success of marketing.

c. Selling Concept :-
Those companies who believe in this concept think that leaving alone the customers will
not help. Instead there is a need to attract the customers towards them. They think that
goods are not bought but they have to be sold.
The basis of this thinking is that the customers can be attracted. Keeping in view this
concept, these companies concentrate their marketing efforts towards educating and
attracting the customers. In such a case their main thinking is “selling what you have”.
This concept offers the idea that by repeated efforts one can sell anything to the customers.
This may be right for some time, but you cannot do it for a long time. If you succeed in
enticing the customer once, he cannot be won over every time.
On the contrary, it will work for damaging the reputation. Therefore, it can be asserted that
this philosophy offers only a short term advantage and is not for long term gains.

d. Marketing Concept :-
Those companies who believe in this concept are of the opinion that success can be
achieved only through consumer satisfaction. The basis of this thinking is that only those
goods/services should be made available which the consumer want or desire and not the
things which you can do.
In other words, they don’t sell what they can make but they make what they can sell.
Keeping in mind this idea, these companies direct their marketing efforts to achieve
consumer satisfaction.
In short, it can be said that it is a modern concept and by adopting it profit can be earned
on the long term basis. The drawback of this concept is that no attention is paid to social
welfare.

e. Societal Marketing Concept :-

This concept stresses not only the customer satisfaction but also gives importance to
consumer welfare/societal welfare. This concept is almost a step further than the marketing
concept. Under this concept, it is believed that mere satisfaction of consumers would not
help and the welfare of the whole society has to be kept in mind.

For example; if a company produces a vehicle which consumes less petrol but spread
pollution, it will result in only consumer satisfaction and not the social welfare. Primarily
two elements are included under social welfare high level of human life and pollution free
atmosphere. Therefore, the companies believing in this concept direct all their marketing
efforts towards the achievement of consumer satisfaction and social welfare. In short, it
can be said that this is the latest concept of marketing. The companies adopting this concept
can achieve long term profit.
Q3. What do you mean by Marketing Environment?
Ans:- MARKETING ENVIRONMENT :--
• Businesses do not operate in isolation in the market place.
• There are various factors/forces that directly or indirectly influence the organisation’s
business activities.
• All these factors/forces form the marketing environment of an organisation.
• The company operates in a complex marketing environment, consisting of
uncontrollable forces, to which the company must adapt.
• Marketing is the sum total of trading forces operating in a market place, over which a
business has no control but which shapes the manner in which the business functions
and is able to satisfy its customers.
• A marketing environment is what surrounds and creates impact on business
organisations.
• Marketing environment is uncontrollable and ever changing.

The key elements of Marketing Environment are as follows:-

(1) Internal Environment :-

o The internal environment refers to the forces and actions that are within the
organisation and affects its ability to serve its customers.
o A company’s marketing system is influenced by its capabilities regarding
production, financial and other factors. Hence, the marketing
Management/manager must take into consideration these departments before
finalizing marketing decisions.
o It includes marketing managers, sales representatives, marketing budget,
marketing plans, procedures, inventory, logistics and anything within the
organisation which affects marketing decisions and its relationships with its
customers.
o The research and development department, the personnel department, the
accounting department also have an impact on the marketing department.
o It is the responsibility of a manger to company ordinate all departments by setting
up unified objectives.
(2) External Environment: (A) Micro Environment :-
o The Micro Environment refers to the forces that are close to the marketing
organisation and direct impact the customer experiences.
o It includes the organisation itself, its suppliers, marketing intermediaries,
customer markets or segments, competitors and publics.
o Happening in micro environment is relatively controllable for the marketing
organisation.

SOME FACTORS IN MICRO ENVIRONMENT:-

• Suppliers: - Suppliers are the people who provide necessary resources needed to
produce goods and services. Policies of the suppliers have a significant influence over
the marketing manager’s decisions. A company must build cordial and long term
relationships with suppliers.
 • Marketing Intermediaries: - Marketing intermediaries are the people who assist the
flow of products from the producers to the customers; they include wholesalers, retailers,
agents,etc. These people create place and time utility. A company must select an
effective chain of middlemen, so as to make the goods reach the market in time.
• Consumers: - Consumers are the centre point of all marketing activities. The main aim
of production is to meet the demand of the consumers. Each type of Consumer has a
unique feature which has to be considered by the marketers before taking the decisions.
• Competitors: - A prudent marketing manager has to be in constant touch regarding the
information relating to the competitor’s strategies.
• Public: - A company’s obligations are not only meet the requirements of its customers
but also to satisfy the various groups. A public is defined as “any group that has an actual
or potential ability to achieve its objectives”.\
(B) Macro Environment:-
o Macro Environment refers to the forces that are part of the larger society and
affects the micro environment.
o It includes demography, economy, politics, culture, technology and natural
forces.
o These are the factors/forces on which the company has no control. Hence, it has
to frame its policies within the limits set by these factors.

SOME FACTORS IN MACRO ENVIRONMENT :-

• Demography: - Demography is defined as the statistical study of the human population
and its distribution that forms the market. A company should study the population, its
distribution, age composition, status, etc. before deciding the market strategies.
• Economic Environment: - it affects a consumer’s purchasing behaviour either by
increasing his/her disposal income or by reducing it.
• Technological Factor: - Every new invention builds a new market and a new group of
customers. A new technology improves our life style and at the same time creates many
problems.
• Physical Environment or Natural forces: - A company has to adopt its policies within
the limits set by nature. A man can improve the nature but cannot find an alternative for
it. Nature offers resources but in a limited manner.
• Social and cultural factor: - Most of us purchase because of the influence of social and
cultural factors. The life style, values, beliefs, etc. are determined among other things by
the society in which we live.
Q4. Differences Between:- Marketing and Selling Concept :

Marketing concept Selling Concept

Converting customers need into product Converting product into cash

 Emphasis on product planning and Emphasis on sale of the product already
development used

Integrated approach to marketing Fragmented approach to selling

Seller beware principle followed Buyer beware principle followed

Customer determine price, price determine Cost determine price

cost

(a) Industrial Marketing v/s Consumer Marketing :

Basis Industrial Marketing Consumer Marketing

Market Geographically Geographically

characteristics Concentrated disbursed

Customer size Relatively fewer buyers Mass market

Product specification Technically complex

Products Standard
and Products
variant Tailor made products

Prompt and competent Some what

Service Service required important

Involvement of various Merely involvement of

Buyer behaviour functional areas in both family members or the peer
buyer and the supplier’s firm group
 Purchase decision Based on rational and Based on social, culture,
requirement psychological needs

(b) Needs v/s Wants :

NEEDS: - A need is generally referred to, as something that is extremely necessary for a person to
survive. If a need is not met, it would lead to the onset of disease, the inability to function
effectively and efficiently in society, and even death. Needs are categorized into two groups. These
are the “objective needs” and “subjective needs”.
Objective needs are those that that are met through tangible things or things that could be
measured. Eg. Of these includes food, shelter, air, etc.
Subjective needs are those that are often seen to ensure our mental health. Eg. Of these includes
self esteem, a sense of security and approval.
WANTS: - A want is something that a person desires, either immediately or in the future. Unlike
needs, wants are those that differ from one person to another. For eg. – one person may want to
own a car while other may want to travel to an exotic country. Each person has his/her own lists
of wants, each with a varying level of importance. Furthermore, wants can change over a period
of time. This is in contrast to needs, which remains constant throughout the life time of the person.

(c) Goods v/s Services :

GOODS SERVICES

Tangible Intangible

Homogeneous Heterogeneous

Production and distribution are Production, distribution and consumption

separated from consumption are simultaneously processess

A thing An activity or process

Core value processed in factory Core value produced in the

buyer-seller interactions

Customers don’t participate in Consumer participate in production

the production process

Can be kept in stock Cant be kept in stock