Marketing Management Overview

For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website: http://shyam.bhatawdekar.com/

(Refer our High Quality Management Encyclopedia “Management Universe” at: http://management-universe.blogspot.com/)

For write-ups on other topics of marketing and sales management, refer: (Marketing Orientation) http://marketing-orientation.blogspot.com/, (Marketing Management Tasks) http://marketing-management-tasks.blogspot.com/, (Market research) http://market-research-function.blogspot.com/, (Market Segmentation) http://market-segment.blogspot.com/, (Advertising) http://advertising-mass-communication.blogspot.com/, (Sales Promotion) http://sales-promotion.blogspot.com/, (Sales/Selling Process) http://selling-process.blogspot.com/, (Negotiation Skills) http://negotiating-skills.blogspot.com/, (Negotiation Tactics) http://negotiation-tactics.blogspot.com/, (Objection Handling) http://objection-handling.blogspot.com/

Importance of Marketing Function

Importance of marketing function has been highlighted by management expert like Peter Drucker and marketing expert like Regis McKenna who have following things to say about marketing function:

Perter Drucker: Because the purpose of business is to create a customer, the business enterprise has two and only these two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.
Regis McKenna: Because marketing management encompasses all factors that influence a company's ability to deliver value to customers, it must be all-pervasive, part of every one's job description, from the receptionists to the board of directors.

Definitions of Marketing Management

Marketing can be defined as meeting the needs of human beings with profit to the marketer and value for money to the buyer.
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
It is a business discipline with focus on use of practical application of marketing techniques and the management of an organization's marketing resources and tasks.
It is art and science of addressing the chosen markets and finding, getting, retaining and multiplying the customers by way of creating, communicating and delivering value to the customers.
Marketing can also be seen as a societal process. Through this process, people acquire the needed (value giving) products and services by creating, communicating and exchanging them with each other.

Also refer: http://marketing-orientation.blogspot.com/ (Marketing Orientation)

By Whom Marketing is Done?

By marketer: Marketer markets. Marketer is the one who seeks attention and response to the wares (goods, services, skills, ideas etc) he wishes to sell from a prospect (another person/party who may possibly buy them) and tries to sell them. If the prospect buys them, he is called buyer or purchaser.

Where Marketing is Done?

Markets or marketplaces: The physical places where sellers and buyers transact and exchange for goods/services etc.
Market spaces: They are digital or virtual.
Meta markets: These are clusters of allied products and services that are closely related in the minds of the customers but are spread across diverse set of industries. Example of such a cluster is: car and their spare parts producers, new and old car dealers, financing organizations, insurance companies, spare parts dealers, servicing workshops, car technicians, automobile magazines, automobile web sites on Internet etc.

Various Types of Markets

Consumer markets: marketing goods and services of mass consumption.
Business markets: marketing goods and services which are used by the businesses to make other products and services in turn to market them.
Global markets: marketing of goods and services in global marketplace.
Nonprofit and government markets: marketing of good and services to nonprofit organizations and governments with carefully decided lower prices.

Entities That Are Generally Marketed

Goods: any physical product.
Services: all professional services provided by professionals or organizations.
Events: trade shows, concerts, sports etc.
Organizations: corporations, universities, museums etc.
Places: countries, states, cities etc.
Properties: real estate, stocks etc.
Persons: celebrity marketing.
Experiences: theme parks, theme hotels, amusement parks, water parks etc.
Information: information about every possible aspect.
Ideas: family planning, AIDs awareness, prevention of drugs, smoking and drinking etc.

Basic Marketing Process

Understanding customer needs, wants and demands

Needs are what human beings require. There are five types of human needs (Maslow's need hierarchy theory): basic needs, security needs, social needs, esteem needs and self actualization needs. They buy goods and services to satisfy their these needs. Refer: http://motivation-people.blogspot.com/ (Motivation) and http://selling-process.blogspot.com/ (Sales/Selling Process)
Needs will have to be converted into wants because to satisfy the same need, one person may want one thing where as the other person may want other thing. For example, the food items, house types, clothes types etc for different people are different.
Though people may have needs and wants but people may not be able to buy everything they want because of several reasons. What they actually finally buy is called demand.

Market Segmentation, Targeting and Positioning

Also refer: http://market-segment.blogspot.com/ (Market Segmentation)

Marketers divide the customers/markets into distinct groups such that each different group prefer to buy similar goods/services. This is based on classifying the customers demographically, psychographically and behaviorally. This grouping of market/customers is called segmentation.
Marketers then take decision on the market segments they should address. For this, they analyze as to which market segments will be most optimal for them from various angles (business opportunity, their own strength etc). Decided segments are marketer's target markets.
For each target market, the marketer develops a market offer and positions it in the minds of the target customers. The marketer ensures that the offered product/service will deliver the features and associated benefits as expected by that particular target segment.

Branding

Marketers then try to create a unique image and name for their products/services that the customers can associate with particular sets of features and benefits that satisfy particular types of needs.

Channels

Marketer uses three types of channels. They are: communication channels, distribution channels and service channels.
Communication channels are used to be in communication with the target customers.
There are monologue channels through which marketer sends communication to his customers. They are newspapers, trade/other magazines, television, radio and other audio media, mailers, email, Internet, billboards, posters, fliers, CDs/DVDs etc.
There are dialogue channels where both, sending and receiving communication between marketer and customers is possible. They are email, blogs, toll free telephones etc.
Distribution channels are used to display, sell and deliver/dispatch the goods and services to the customers. They are distributors, wholesalers, dealers and retailers.
Service channels are used to carry out transactions with the customers. They are warehouses, transport agencies, banks, insurance companies etc.

Value for Money (VFM) to Customers

Entire marketing process hinges on the premise of ensuring maximum value for money by his customers of particular segments. It is ensured by making products/service offerings that are of high quality, with high pre, during and after service levels, close relationships, low prices and less lead time (delivery period). The quality, service level, relationship factor, price and lead time should be better than what the competitor gives.
The customers feel satisfaction or delight based on the extent of value for money the customers experience by buying the products/services.

For More Guidance, Assistance, Training and Consultation

Contact: prodcons@prodcons.com

Also refer: http://prodcons-group.blogspot.com/, http://training-development-function.blogspot.com/ and http://productivity-consultants.blogspot.com/

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