MODULE 1

1. Define marketing management? (3)

2. “There are five alternative concept under which organization conduct their
marketing activities” Elaborate (7)
3. Difference between “product” and “service”. Briefly explain with examples the
classifications of consumers and industrial product.(7)
4. What are relations marketing?(3)
5. Differentiate between marketing concept and selling concept(3)
6. Explain “system approach” to study marketing with the help of a diagram(7)
7. “All organizations need marketing”. Do you agree to this statement? If so give
reasons in support of your answer along with relevant examples from business
and non business sectors.(10)
8. Explain in brief the functions of marketing management.(10)
9. Explain very briefly the concept of integrated marketing and its relevance in
present day context.(3)
10. Define the term “marketing mix”.(3)
11. Discuss the importance and characteristics of service marketing(10)
12. Explain the ethical issues involved in marketing.(7)

1) Define marketing management.

Marketing is total system of business activities designed to plan, price, promote,
and distribute want-satisfying products to target markets in order to achieve
organizational objectives. This is defined have two significant implications:

i. Focus: the entire system of business activities should be customer oriented

customer’s wants must be recognized and satisfied.
ii. Duration: marketing should start with the idea about the want satisfying product
and should not end until customer wants are completely satisfied, which may be
sometime after the exchange is made.

2) “There are five alternative concepts under which organizations conduct their
marketing activities” Elaborate
There are 5 competing concepts under which organizations conduct marketing
activities they are
i. Production concept
ii. Product concept
iii. Selling concept
iv. Marketing concept
v. Societal concept

Production concept: This concept holds the view that consumers will prefer, produce tat
are widely available and inexpensive. Those managers working in production oriented
business will concentrate on achieving high production. Low cost and mass distribution.
Product concept
This concept holds the view that customers will favor those products that offers the most
quality, performance .manager in these organization make efforts to improve quality
overtime. They assume that the customers admire well made product. The problem or
drawback of this concept is that manager’s gets bug down with the product instead of
realizing “what markets need”. The companies which is product oriented will have very
little input from the customers. They will not brother to study the competitor’s product.
They believe that engineering division can produce an exceptional product.

Selling concept
This concept assumes that customers if left alone will ordinarily not buy enough of
organization products. The organization must, therefore undertake aggressive selling and
promotion efforts.
This concept assumes that consumers that consumers typically show resistance to buy
and therefore must be coaxed into buying. It also assumes that the company has a battery
of effective selling tools to stimulate more buying.

Marketing concept
This concept assumes that, the key to achieve organizational goal consists of the
company being more effective than competitors in creating, delivering and
communicating, customer value to its chosen target markets.
The marketing concepts can be expressed in many ways:
1. Love the customer not the product
2. You are the boss {customer}
3. Have it your way

Marketing success rests on 3 pillars

A} target markets
B} customer needs
C} integrated marketing

A) Target markets: Companies prepare exclusive marketing program for each of the
target markets.
B) Customer needs: company may define a target market, but unable to understand the
customer needs. Understanding the customer needs is not always simple. Some
customers have needs of which they are not fully conscious or they cannot express the
same or sometimes they use words which need interpretations.
c) Integrated marketing:
When all the departments in the company work together to serve the customers interests,
the result is integrated marketing. Integrated marketing takes place on 2 levels. First, the
various marketing functions like sales, advertising, customer service, market research
must be work together. Secondly other department like manufacturing, engineering, all
departments must work together.
Societal marketing:
Societal marketing concept not only takes care of needs, wants and interest of
target markets and to the desired satisfaction more effectively and the society’s well
being

Societal marketing calls for the inclusion of 4 criteria in the marketing:

1. costumers needs and wants
2. costumers interest
3. organizational interest
4. society’s interest Society (human
resource)

Societal
marketing
concept
Consumers (want Company
satisfaction) (profit)

What do you mean by needs and want?

Need:
Need is a basic human requirement .people need food, air, water etc to survive. People
also have a need for recreation, education.
Want:
Need becomes a want, when they are directed to specific objects that might satisfy the
need.
E.g. A person needs food but wants rice and dal. Another person needs food but want
sandwiches and soft drink.
Demand:
Demand are want for a specific products backed by ability to pay. Many wants Benz car,
few can offered it. Therefore while ascertaining demands markets must not only measure
“how many people want their product but also how many would be willing to pay and
buy it”.
“Marketers create needs” is wrong. Markets do not create needs. Needs exist in the
market. Marketers might promise that the idea of owing a “lance” would satisfy a person
need for social status. They do not however create the need for social status.
Explain in briefly the functions of marketing management

The scope of marketing is very wide. A number of functions are inherent in any
marketing on basis of various utilities like time and Place utility and Possession utility.

1. Buying function
Function of 2. Assembly function
Exchange 3. Selling function

1. Transportation
Function of 2. Inventory management
Physical 3. Ware housing
Distribution 4. Material handling

Function of 1. Financing
facilities 2. Risk taking
3. Standardization
4. After sales services

I. Functions of Exchange:
Buying Function
A manufacturer is required to buy raw material for production purposes similarly a
wholesaler has to buy good from manufacturer for selling it to retailer. A retailer sells the
goods to the customer. The function of buying has to be done at various levels. Buying
involves transfer of ownership from seller to buyer.
Assembly function
Goods purchased from various sources and assembled at one place, to suit the
requirement of the buyer.
Selling functions
Selling function involves, sale of goods from seller to buyer. Selling function is very
important to all organization due to the fact the selling has to be done against severe
competition.
II Function of Physical Distribution:
Transportation
This includes mode of transport, selection of transporter or carrier, freight coincide ratio
like freight paid or to pay

Inventory management
These include short term fore casting, product, size and location of warehouse, just in
time and push or pull strategy adopted
Warehousing
The following functions are included like space requirement, suitability of location,
layout design and physical arrangement
Material handling
This includes equipment selection. equipment replacement, storage methods and receipts
and issues
III Functions of facilities
Financing
This means extending credit facilities during selling, if organization has to do this it must
have adequate working capital. Marketer has to plan
Short term finance
Long term finance
Risk taking
There are innumerable risk which marketer has to bear while marketing a product. Goods
may be destroyed by fire. The marketer needs to cover the goods through insurance
Standardization
Buyers prefer standardization goods. This will prevent the buyer from wasting time in
inspecting or examining the goods. Standardization and growing is a part of marketing
function. Standardization is a process of setting up standards to manufacture products
which confirms to a set of specification
Grading is also part if standardization. Its is a process of sorting out goods into a number
of graded according to some characteristics like quality and size.

Difference between “Selling “and “marketing” Briefly explain

Selling
1. selling is a activity designed to meet
sellers need
2. selling concentrate on sales volume
3. selling has short time goals
Marketing
1. marketing is a function designed to meet
customer’s need
2. marketing concentrate on quality and
customer satisfaction and hence volume
3. marketing has long time goal

4. selling activity converts goods into cash
5. selling ends with the transfers from
sellers to buyers
6. product is the prime concern of selling
activity
4 .marketing activity converts consumers
needs into products
5. marketing starts with the producing as
per customers requirement
6. Customers and his preferences are the
prime concern of marketing activity.
Starting
point Products Means Ends

Factory Products Selling and Profits through

Promoting sales volume

The selling concept

Target customer integrated profits

Market needs marketing customer
Satisfaction

The marketing concept

What is relationship marketing?

Many cannels partnership are the part of a broader, significant trend called relationship
marketing. in the context of distribution channels, relationship marketing refers to the
concern efforts by a company not only to work closely with customers to better
understanding and satisfying their needs but also to develop long term , mutually
beneficial relationship with them. Conversely the customers can seek to engage in
relationship marketing with their suppliers.
Relationship marketing aims to build long-term mutually satisfying relations with key
parties, which ultimately results in marketing network between the company and its
supporting stakeholders

Evolution of market
Traditional concept of marketing was concentrated only on profit. Technologies changes
in production leads to progress in production and also human needs wants increased in
the scope of marketing function. The following are the various stages in evolution of
marketing.

1. self sufficient stage Every family was self sufficient unit. They could satisfy their
need and there was no exchange. There fore the concept of marketing did not exit
at that time. Customer was satisfied with product that is available and affordable
2. Exchange oriented stage
 People came to know the importance of time, place and possession utilities
competition was absent. It became necessary for the producer to bring their
products together to a central place for the purpose of exchange. In this way
market came into existence this is the first stage in the evolution of marketing.

3. Production oriented stage

This is the stage when it was felt if the product is good, customer will buy and
there is no need in the market, the purpose of purchasing an item is to consume.

4. Sales oriented stage

During this stage, development of transport and communication, living standard
improved. Industrial also improves. It was through that customer will not buy
enough unless he is approached and convinced.

5. Market oriented stage

This is the stage, when realization comes to the mind that goods cannot move
unless marketed. It was felt that needs/ wants of the customer to assess. The main
motive of the business is to make and sell what customers want at a price. He is
willing to pay and at that time when he wants. The main task was to conduct
research. Choose target market and draw marketing programs. The confusion
between selling and marketing became clear. Selling focuses on the needs of
buyers. Selling assumes profit through sales but marketing focuses on the needs
of the buyer. Selling assumes profit through sales volume. Whereas marketing
concept assumes profit through customer satisfaction

6. Customer oriented stage

Competition became keen. Greater risk was involved in investment because
customer taste and demand was changing continuously. It was realized that
knowing customer needs and wants alone is not sufficient. All activities the
organization should be directed towards customer and for customer only.

7. Human oriented stage

At this stage there was a common for environmental problems under this stage. It
is not merely supplying better quality of goods but emphasis is on delivering
better quality of life. Marketing task is not only to help to recognize business
opportunity and serve the public but also to enhance the quality f the life in the
society to monitor customers changing needs and wants and to adjust the
companies product
 What are the Four Ps of marketing?

The Four Ps of the Marketing Mix

Product Place

C
Price Promotion

Product
A product is an offering which a business offers to customers. Strategies are needed for
deciding what products to introduce, managing existing products over time, and dropping
products that are no longer viable. Strategic decision must also be made regarding
branding, packing and other products features such as warranties.

Price
Setting the base price for a product is a marketing decision. Others necessary strategies
preferred from producers to customers and items within a product line, terms of sale, and
possible discounts. An especially challenging decision is selecting the price for the new
product.

Promotion
Strategies are needed to combine individual methods such as advertising personal selling
and sales promotion into an integrated communications campaign. In addition,
promotional strategies must be adjusted as a product moves from the early stages to the
later stages of its life.
Place
The distribution strategies followed by the company. Decisions regarding the number of
channel members, type of channels used etc

What is the importance of marketing in the current era?

Marketing management today is the subject of growing interest in all types of
organizations, within and outside the business sectors
In the business sectors
In the business sectors marketing entered different companies conscious at different
times. General electric, general motors, P&G were among the early leaders. Marketing
spread rapidly in consumers packaged goods companies. Within the past decade
consumers service firms, especially airlines and banks have moved towards modern
marketing
The most recent business groups to take an interest in marketing are professional service
provider, such as lawyer, accountants etc
In non-profit sectors
Marketing is increasingly attracting the interest of nonprofit organizations such as
colleges, hospitals, churches etc.
To sustain their organization in the face of rapidly changing consumers attitudes and
diminishing financial resources these organizations turning to marketing
Ex: as hospitals costs soars, many hospitals have turned to marketing. They are
developing product line plans, improved emergency room service advertising programs.
In the global arena
Marketing theory and practice at one time limited to certain western countries are rapidly
spreading throughout the world. The reasons are that many large companies have gone
global and brought their marketing practice with them. In competing for new markets,
they have forced the local firms to defend their turf by learning and refining their own
marketing practices
Services marketing

A large number of business organizations offer services – airlines, banks, hotels,

insurance companies, consulting firms, medical & law practices, entertainment
companies, real estate firms, financial services firms, retailers etc
Goods-Services Continuum
Characteristics of services
-Intangibility
-Inseparability
-Perishability
-Heterogeneity

The service profit chain

1. Internal service quality
2. Satisfied & productive service employees
3. Greater service value
4. Satisfied & loyal customers
5. Healthy service profits & growth