Marketing Management- Introduction, Objectives, Scope and Importance

 Marketing Management- Introduction, Objectives, Scope and Importance

Definition of Marketing

According to the American Marketing Association (2004)- “Marketing is an organizational function and set of processes for creating, communicating and delivering value to customers and for managing relationships in a way that benefits both the organization and the stakeholder.”

According to the American Marketing Association (1960)- “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.”

According to Eldridge (1970)- “ Marketing is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected market.

According to Kotler (2000)- A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

Objectives of marketing management as follows:

1. Creation of Demand- Goods and service are produced to satisfy the needs of the customers. Demand is also created by informing the customers the utility of various goods and services.

2. Customer Satisfaction- Selling the goods or services is not that important as the satisfaction of the customers’ needs. Modern marketing is customer oriented. It begins and ends with the customer.

3. Market share- The ratio of its saels to the total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase their market share. For this, they have adopted innovative advertising, innovative packaging, sales promotion activities etc.

4. Generation of profits-  The marketing department is the only department which generates revenue for the business. Moreover, profits are also needed for the growth and diversification of the firm.

5. Creation of goodwill and public image-  The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers. 

Attempts to raise the goodwill of the business by initiating image- building activities such a sales promotion, publicity and advertisement, high quality, reasonable price, convenient distribution outlets etc.

Seven major importance of marketing management

1. Marketing helps in transfer, exchange and movement of goods- Goods and services are made available to customers through various intermediaries’ viz wholesalers and retailers etc. 

2. Marketing is helpful in raising and maintaining The standard of living of the community- By making available the uninterrupted supply of goods and services to consumers at a reasonable price, marketing has played an important role in raising and maintaining living standards of the community.

3. Marketing creates employment- The major marketing functions are buying,selllin, financing, transport, warehousing, risk bearing and standardization etc. In each such function different activities are performed by a large number of individuals and bodies. 

4. Marketing as a source of income and revenue- 

Nature of Marketing 

1. Marketing is an economics function

Business activities involved in getting goods and service from the hands of producers into the hands of final consumers.

2. Marketing is a legal process by which ownership transfers

Ownership of goods transfers from seller to the purchaser or from producer to the end user.

3. Marketing is a system of Interacting Business activities

            Process through which a business enterprise, institution or organization interacts with the customers and stakeholders with the objective to earn profit, satisfy customers and manage relationships.

4. Marketing is a managerial function

5. Marketing is a social process

Marketing is the delivery of a standard of living to society. According to Cunningham and Cunningham (1981)

1. Knowing and understanding the consumer’s changing needs and wants

2. Efficiently and effectively managing the supply and demand of products and services

3. Efficient provision of distribution and payment processing systems

      6. Marketing is a philosophy based on consumer orientation and satisfaction

      7. Marketing had dual objectives- Profit making and consumer satisfaction

Scope Of Marketing- 

1. Study of consumer wants and needs- 

• Identify consumer needs and wants

• Needs and wants motivates consumer to purchase

2. Study of consumer behavior-

• Analysis of buyer behavior helps marketer in market segmentation and targeting

3. Production planning and development-

• Starts with the generation of product ideas and ends with the product development and commercialization.

• It includes everything from branding and packaging to product line expansion.

4. Pricing policies-

• It differs from product to product

• It depends on the level of competition, product life cycle, marketing goals and objectives etc.

5. Distribution-

• For maximum sales and profit goods are required to be distributed to the maximum consumers at minimum cost.

6. Promotion-

• It includes personal selling, sales promotion and advertising.

• Right promotion mix is crucial in accomplishment of marketing goals.

7. Consumer Satisfaction-

• Customer satisfaction is the major objective of marketing.

8. Marketing Control-

• Marketing audit is done to control the marketing activities.

Objectives and importance of marketing management

A business aims at earning reasonable profits by satisfying the needs of customers.

1. Creation of Demand-

• A conscious attempt is made to find out the preferences and tastes of the consumers.

• Demand is also created by informing the customers of the utility of various goods and services.

2. Customer Satisfaction-

• Selling the goods or services is not that important as the satisfaction of the customers’ needs.

• Modern marketing is customer- oriented. It begins and ends with the customer.

3. Market Share-

• Every business aims at increasing its market share i.e. the ratio of its sales to the total sales in the economy.

• Companies adopted innovative advertising, innovative packaging, sales promotion activities etc.

4. Generation of profits-

• Marketing department is the only department which generates revenue for the business.

• Sufficient profits must be earned as a result of the sale of want- satisfying products.

• Profits are also needed for the growth and diversification of the firm.

5. Creation of Goodwill and public image-

• To build up the public image of a firm over a period is another objective of marketing.

• Department provides quality products to customers at reasonable prices and thus creates its impact on the customers.

Manager attempts to raise the goodwill of the business by initiating image- building activities such as sales promotion, publicity and advertisement, high quality, reasonable price, convenient distribution outlets etc.