Concept, evolution, and scope of marketing | Management Optional Notes for UPSC PDF Download

Introduction

In the dynamic and competitive world, marketing plays a pivotal role in enhancing the productivity of firms. The term 'marketing management' comprises two essential components, 'marketing' and 'management.' Marketing is the economic process of acquiring commodities and services in exchange for money, while in management literature, it refers to the distribution of goods from producers to final consumers. This encompasses various activities such as advertising, promotions, public relations, and sales.

Concept of Marketing Management

Marketing management is a crucial segment of the overall management process, encompassing the coordination of marketing activities. According to Rustom S. Davar, it involves identifying consumers' needs, transforming them into products or services, and efficiently delivering them to the end consumer. Marketing management is the core process that allocates organizational resources towards marketing activities. The marketing manager's primary role is to direct expenditures of marketing funds, as highlighted by Cundiff and Still. It is an art and science involving the selection of target markets and the creation, delivery, and communication of superior customer value.

Core Concepts of Marketing:

The core concepts of marketing involve selecting target markets and establishing, maintaining, and expanding customer relationships by delivering superior value. As per Kotler, marketing is a social and managerial process through which individuals and groups obtain what they need and want by creating and exchanging products and value with others.

Evolution of Marketing Management:

Marketing Management focuses on the practical application of marketing systems and the management of an organization's marketing resources. The evolution of marketing theory was studied during the 1990s, emphasizing the importance of successful marketing strategies in understanding consumers, competitors, and the overall environment.

Scope of Marketing:

Marketing is a global phenomenon extending beyond customer satisfaction. The scope of marketing management contributes to overall societal well-being and environmental protection. Philip Kotler emphasized that marketing management involves the analysis, planning, implementation, and control of programs to achieve organizational objectives by designing offerings aligned with target market needs. The scope of marketing encompasses various entities, including goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

The Marketing Management Cycle

Planning:

• In marketing management, the planning cycle involves four fundamental steps.
• Planning is the process of investigating and understanding the organization's environment, encompassing factors such as competition, legislation, social and cultural trends, and technology.
• Managers create documents outlining the organization's intended response to environmental variables, identifying present and developing trends.

Implementation:

• Implementation is the second stage where plans are put into action.
• It signifies the transition from expected reality to existing reality.

Monitoring:

• The third stage involves a monitoring process, tracking plans and identifying how they relate to changes during program operation.
• Managers gather more information during this stage to make informed decisions.

Correction:

• Correction is the fourth stage, where managers take action based on feedback obtained in the monitoring stage.
• The goal is to return the plan to the desired state.
• In summary, the marketing management cycle comprises planning, implementing, monitoring, and correcting.

The Marketing Mix Paradigm

The foundation of modern marketing management is built on the marketing mix paradigm.

Introduced by Neil Borden in 1950 and popularized by McCarthy in 1960, it consists of four key concepts: product, price, promotion, and place.

Product:

• Goods produced by organizations for customers are referred to as products.
• Products can be tangible (physical goods) or intangible (services) in nature.
• In the market, a product is what a retailer sells to buyers in exchange for money.

Price:

• The money paid by a purchaser for a product is termed the price of the product.
• Price is indirectly proportional to the product's availability in the market.

Place:

• Place denotes the location where products are available and can be bought or sold.
• Buyers can purchase products from physical or virtual markets, with physical markets allowing face-to-face interaction and virtual markets utilizing the internet.

Promotion:

• Promotion involves various techniques and ideas executed by marketers to generate awareness among end users.
• It encompasses various techniques employed to promote and make a brand popular among the masses.
• The marketing mix paradigm, consisting of product, price, promotion, and place, has evolved into a critical tool for effective marketing management.

Specific Functions of Marketing Management

Market Research:

• Conducted to collect data for accurate marketing analysis.
• Techniques include qualitative methods like focus groups and interviews, quantitative methods like statistical surveys, experimental techniques such as test markets, and observational techniques like ethnographic observation.

Advertising:

• A mass media tool for consumer goods markets.
• Involves impersonal presentation and promotion of ideas, products, and services paid for by the sponsor.

Sales Promotion:

• A short-term incentive to supplement personal selling and advertising.
• Often used during the launch of new products.

Sales Planning:

• Involves planning the right products at correct prices.
• Includes formulating sales plans, determining price and quantity, packaging, and budgeting.

Sales Operations:

• Concerned with the transfer of products to the customer point.

Physical Distribution:

• Involves moving and handling products.
• Key decisions include order processing, inventory management, warehouse operations, and transportation.

Importance of Marketing Management in the Indian Market

In the rapidly advancing competitive landscape of India's progressing industrialization, the need for effective and well-organized marketing methods becomes paramount. The planned economic development has led to substantial growth in agricultural and industrial sectors, with increased production in both private and public sectors.

The significance of marketing management in the Indian economy can be elucidated as follows:

• Optimizing Results with Limited Resources: Given the limited resources in the country, industrial units need to be vigilant in maximizing productivity with minimal efforts. Understanding the importance of 'marketing' becomes crucial for managers to achieve optimal results with the available resources.
• Export Market Growth: Rapid economic development hinges on increasing export trade. The success of Five-Year Plans relies on the potential and achievements of export trade. Professional managers need knowledge of the latest marketing techniques to foster export trade. Developing the national market is essential to compensate for export losses. Marketing plays a pivotal role in this context, requiring exporters to focus on market research, analysis, and the creation of new marketing strategies to instill customer confidence.
• Rural Market Opportunities: Economic development through Five-Year Plans has not only influenced the habits and expenditures of urban populations but also brought about changes in rural areas. The Green Revolution has significantly impacted villages, leading to increased incomes and a growing demand for new and comfortable products in rural India. This presents ample opportunities for the development of marketing activities in rural areas.
• Integral Role in Rapid Industrialization: With the government's emphasis on improving the country's economy through Five-Year Plans, the primary focus has been on industrialization. Changing attitudes towards the standard of living, evolving interests, and increasing wants of the populace have heightened the importance of marketing management. As industrialization progresses, the significance of effective marketing strategies becomes more pronounced.

In essence, marketing management plays a crucial role in optimizing resource utilization, driving export growth, tapping into rural market potential, and aligning with the objectives of rapid industrialization in the dynamic landscape of the Indian market.

Improving Marketing Management Skills

To enhance management skills, managers should consider the following methods:

• Choosing the Right Market: It is crucial to comprehend how to select the optimal market to attract new consumers and retain existing ones. A proficient marketing manager should grasp the forces of demand and supply, facilitating the ability to meet consumer demands at various times and increase sales for specific periods. Factors such as business location and size must be carefully considered when identifying the right market.
• Assessing Gains and Losses: Understanding market dynamics is essential for analyzing potential gains or losses in any business venture.
• Effective Communication: Establishing good communication between marketers and customers is vital for business success. This enhances the attraction of potential customers, thereby increasing sales volume. Maintaining an efficient customer service support team is critical to consider consumer feedback on the product.
• Proper Management of Marketing Departments: Successful marketing management requires the efficient operation of various departments, including sales, pricing, operations, and finance.
• Research on Business and the Market: In-depth study of business details is essential for devising appropriate marketing strategies. Strategic planning and marketing management should be closely aligned, incorporating competitor analysis, company analysis, and customer analysis. Competitor analysis involves evaluating competitor product prices and nature to prospect potential profits.
• Making Strategic Decisions: After thorough research on business and market dynamics, designing practical marketing strategies becomes more manageable.

In summary, marketing management is defined as the process of managing marketing programs to achieve organizational goals. According to management theorists, it is both an art and science involving the selection of target markets and the acquisition, retention, and growth of consumers by delivering better customer value through creation and communication. Marketing management encompasses planning, implementation, and control of marketing programs, primarily focused on stimulating and attracting demand for products. It is intricately associated with the practical application of marketing practices and resource utilization to fulfill tasks aimed at achieving company objectives.