CONCEPT OF MARKETING MANAGEMENT The American Marketing Association defines a market as the aggregate demand of potential buyers for

a product/service. Philip Kotler defines a market as an area for potential exchanges. A market consists of the forces of demand and supply facilitating an exchange process between buyers and sellers. Exchange is the heart of marketing.

Concepts of a Market

Place Concept A market is a convenient place for buyers and sellers to gather together in order to conduct buying and selling activities. Eg wholesale or retail market Area Concept A market develops in any area given the three pre requisites viz. Two or more individuals with unsatisfied wants Products for exchange Means of communication The market may be local, national or international, based on the area covered. Demand Concept In the sense of demand, market means people with needs to satisfy, money to spend and the will to spend. Human beings have never ending wants and the seller seeks to understand these needs and then develop a program to satisfy those needs.

Types of Goods Products

Natural Raw Material

Manufactured Goods

Agricultural Goods

Industrial Goods

Consumer Goods

Industrial Goods

Consumer Goods

Industrial Goods

The Market Exchange Process

MARKET COMMUNICATIONS

Flow of Products

Body of Sellers

Market The Circle of Exchange

Flow of Money

Body of Buyers

Feedback Information Satisfaction Dissatisfaction

Concepts of Marketing American Marketing Association defines marketing as the performance of business activities that direct the flow of goods and services from producer to consumer or user. Philip Kotler defines marketing as the set of human activities directed at facilitating and consummating exchanges. Modern definition is as follows Marketing is an ongoing process of (1) discovering and translating consumer need and desires into products and services (2) creating a demand for these products and services (3) serving the consumer demand through marketing channels and (4) expanding the market even in the face of keen competition. Therefore Marketing is a system of integrated business activities designed to develop strategies and plans to the satisfaction of customer wants of selected market segments or targets.

MODERN MARKETING PROCESS

Marketing Environment ; Govt, Suppliers, competition, etc

Market Anticipation
Customer demand through marketing research

Product

Price

Producers
Place
Goods Flow

Marketing Mix
Goods Flow

Consumers

Promotion

Market offering

Exchange something of value

Systems approach to Marketing

A system is a set of interacting or interdependent components or groups co-ordinated to form a unified whole and organized to accomplish a set of objectives. Adoption of a systems approach provides a good basis for the logical and orderly analysis of marketing activities.

SYSTEMS APPROACH TO MARKETING

Management Control

Inputs
Capital Physical assets People Information

Process
Production Finance Personnel Marketing

Output

Objectives
Profits Customer satisfaction Social welfare

Products and Information

Feedback Information

Functions of Marketing

Selling, which includes product planning and development, locating buyers, negotiating terms of sale, sale contract. Buying Standardization and grading

Financing
Marketing information

Importance of Marketing

Long term success is assured for the organization. It enables the firm to move quickly and capitalize on market opportunities Marketing risks can be reduced by understanding the market. Customer needs, wants and desires receive top consideration. Greater attention is given to product planning and development. Demand side of the equation is honoured more than the supply side. More emphasis is given to R&D and innovation. It gives an integrated view of business operations and indicated interdependence of different departments. Profit through service motive is emphasized.