NOTES

Chapter 11: Notes on Marketing Management

Market can be defined where deal is accomplished between buyers sellers it may be at particular place, letter or through the medium of internet.

Marketing involves a process of satisfying the needs of both the buyers & sellers so that all the transactions between buyers & sellers take place voluntary.

Features of marketing

1. needs and wants
2. creating a marketing offering
3. customer value
4. exchange mechanism

Concept of marketing

1. Product concept: those companies who believe in this philosophy are of the opinion that if the quality of goods and services is of good standard the customers are attracted.
2. Production concept: producer who aims at maximizing their sale by selling their product at different places adopts procedures of production at large scale.
3. Selling concept: under this concept the firms believe that customers will buy a product when they are convinced to buy it by some selling or promotional method and thus make use of advertising, etc.
4. Marketing concept: this concept pays attention to the needs of customers. The firm believes that customer satisfaction is the pre-condition in achieving firm's goals.
   Selling: focuses on the needs of seller. Those activities which are undertaken to secure the sale or distribution of goods among the customers.

Functions of Marketing

1. Gathering & Analyzing Market Information: this is necessary to identify the needs of the customers & take various decisions for the successful marketing.
2. Market planning: New important area of work of a marketer is to develop suitable marketing plans so that marketing objectives of the organization can be achieved.
3. Product Designing & Development: Design of the product contributes to making the product attractive to the target customers.
4. Standardization & Grading
5. Packaging & Labeling
6. Branding
7. Pricing of products
8. Promotion
9. Physical Distribution

Marketing Mix: Involves creating a market offering to satisfy the needs and wants of the customer.

Elements of Marketing Mix

1. Product: means goods & services or anything of value which is offered to the market for exchange.
2. Price: is the amount of money customers have to pay to obtain the product.
3. Place: include activities that make firm products available to the target customers.
4. Promotion: of products & services include activities that communicate availability, features merits, etc.

Characteristics of a good brand name

1. should be short & simple
2. Should be easily pronounce
3. Should be unique & distinctive

Packaging Functions

1. Product protection
2. Product identification
3. Product promotion

• Promotion Mix: refers to combination of promotional tools used by an organization to achieve its communication objective.
• Advertising: any paid form of non-personal presentation & promotion of ideas, goods & services of an identified sponsor”.
• Personal selling: involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales.

Importance of Personal Selling

1. maximum satisfaction to consumers
2. Effective tool of sale
3. Knowledge of proposed buyers
4. More effective

Sales promotion: refers to short term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service. It includes rebates, discount, refunds, product combination, lucky draw, etc.