LECTURE NOTES ON MARKETING MANAGEMENT MBA II SEMESTER IARE R18 Prepared by Ms G Joseph Mary Assistant Professor Department of MBA MASTER OF BUSINESS ADMINISTRATION INSTITUTE OF AERONAUTICAL ENGINEERING Autonomous Dundigal Hyderabad 500 043 UNIT I INTRODUCTION TO WORLD OF MARKETING UNIT I INTRODUCTION TO WORLD OF MARKETING Definition of Marketing Management According to Philip Kotler Marketing Management is the analysis planning implementation and control of programmes designed to bring about desired exchanges with target audiences for the purpose of personal and of mutual gain It relies heavily on the adoption and coordination of product price promotion and place for achieving responses Marketing management is a business process to manage marketing activities in profit seeking and non profit organisations at different levels of management Marketing management decisions are based on strong knowledge of marketing functions and clear understanding and application of supervisory and managerial techniques Nature of Marketing Management It Combines the Fields of Marketing and Management As the name implies marketing management combines the fields of marketing and management Marketing consists of discovering consumer needs and wants creating the goods and services that meet those needs and wants and pricing promoting and delivering those goods and services Doing so requires attention to six major areas markets products prices places promotion and people Management is getting things done through other people Managers engage in five key activities planning organising staffing directing and controlling Marketing management implies the integration of these concepts Marketing Management is a Business Process Marketing management is a business process to manage marketing activities in profit seeking and non profit organisations at different levels of management i e supervisory middle management and executive levels Marketing management decisions are based on strong knowledge of marketing functions and clear understanding and application of supervisory and managerial techniques Marketing managers and product managers are there to execute the processes of marketing management We as customers see the results of such process in the form of products prices advertisements promotions etc Marketing Management is Both Science and Art Marketing management is art and science of choosing target markets and getting keeping and growing customers through creating delivering and communicating superior customer value Kotler 2006 Marketing management is a science because it follows general principles that guides the marketing managers in decision making The Art of Marketing management consists in tackling every situation in an creative and effective manner Marketing Management is thus a science as well as an art Importance of Marketing Management Marketing management has gained importance to meet increasing competition and the need for improved methods of distribution to reduce cost and to increase profits Marketing management today is the most important function in a commercial and business enterprise The following are the other factors showing importance of the marketing management i Introduction of new products in the market ii Increasing the production of existing products iii Reducing cost of sales and distribution iv Export market v Development in the means of communication and modes of transportation within and outside the vi Rise in per capita income and demand for more goods by the consumers country Scope of marketing 1 Setting Marketing Goals quantifiable terms 2 Selecting Target Market The prime task of marketing manager is to set marketing goals and objectives Clearly and precisely defined objective can help marketing manager to direct marketing efforts effectively The goals and objective whether strategic and operating or short term and long term must be suitably communicated with the employees concern As far as possible objectives should be expressed in the Segmenting the total market and selecting the target market is a fundamental task of marketing management Modern marketing practice is based on the target market and not on the total market Marketing manager cannot satisfy the needs and wants of entire market He must concentrate his efforts only on well defined specific groups of customers known as the target market All the marketing functions are directed to cater needs and wants of the target market only Based on company s overall capacity the target market should be selected 3 Formulating Suitable Marketing Organisation To implement marketing plan a suitable organisation structure is essential On the basis of analysis of type of products type of market geographical concentration of market and many other relevant factors appropriate organisation must be designed Various alternative structures are available such as product organisation geographic organisation functional organisation matrix organisation etc Based upon requirements the appropriate structure should be prepared and modified as per needs 4 Maintaining Healthy Relations with other Departments Marketing department needs cooperation from other departments of organisation including financial department personnel department and production department to satisfy customers effectively Their support is considered to be important to satisfy consumers Thus for integrated efforts marketing manager should try to establish good relations with them Likewise within marketing department he must establish coordination among various personnel 5 Establishing and Maintaining Profitable Relations with Outside Parties Alike internal support the external relations are also extremely necessary Marketer in order to carry out marketing activities effectively must establish and maintain healthy relations with various parties such as suppliers service providers government agencies dealers consultants and so forth Without their support marketing manager cannot carry out functions successfully Due to important role of external relations contemporary marketing practices can be said as relationship marketing 6 Marketing Research Activities Marketing research is one of the important functions of modern marketing Marketing research involves systematic collection analysis and interpretation of data on any problem related to marketing It provides the manager with valuable information on which marketing decisions can be taken Marketing research is essential to know