MARKETING AND SALES MANAGEMENT

PRESENTED BY RAJESH PANDA PGDM 1ST YEAR ROLL NO - 08

The development of the concept DEFINATION OF MARKETING

Marketing

deals with identifying and meeting human and social needs. According to Peter Deker,the aim of marketing is make selling superfluious.He also say that the process of planning & executing the conception of pricing promotion and distribution of ideas goods and services to create exchange that satisfy, individual and organizational goals.

Concept of Exchange
It is the process of obtaining a desire product from someone by offering something in returns. There are some condition of exchange : 1. There are at least two parties must be must be involved. 2. Each party something that might be of values to other party. 3. Each party capable to communicate and delivery 4. Free to accept or reject the agreement. 5. Voluntarily participation in exchange system.

Needs and Wants

Needs

are the basic requirements. People need food,air,water,clothing,and shelter to survive. These needs become to specific objectives that might satisfy the needs.

Evolution of Marketing
The development of marketing starts from 17th century and till continues to 1950s.Between this period the evolution of marketing gone through two period. I. Production era II. Sales era On production era the management thinks that with the production of more and more goods create own demand in the market. They forget the customer needs interest and satisfaction and believe the motto of says law i.e,supply creates its own demand. Its starts from 17th century and till continue to 1920s. The sales era started from !920s and still continue up to 1950s.The organisation thinks that the production for product is not everything. That's for they sale their product any manner in market ignoring the customers interest and satisfaction.

Marketing Concept
Today market environment totally focus the customer needs and wants and work along these kinds of preception.Thus the marketing concept deals with three things. I. Customer Orientation II. Long term profit III. Functional integration

Societal marketing
It is a healthy relationship between the organisation & society. Organisation should take step welfare of the particular society for development, providing education, water facility housing, medical facility, etc.

Marketing Myopia
Marketing myopia ,it is shortsightness of management. Marketing Myopia occurs, when management thinks about the product development ,manufacturing and ignores the customers ideas, wants & needs and give all attention to the product. Four factor for myopia, I. More population affluent market expand and more people buy the product. II. There are no substitute of their product. III. Producing by large unit and reduction of cost per unit IV. Scientific experiments ,improvements and manufacturing cost reduction. Overcome from myopia: I. To be customer let not production oriented . II. Market orientation should premises through out the organisation III. Managers need to be proactive and visionary

Marketing Dynamics
Marketing

I. II.

Dynamics are interaction between the forces of demand and supply and the pricing signals which they generate. Marketing dynamics prefers two thinks, Company responses and adjustments Market responses and adjustments

Company Responses
I. II. III. IV. V. VI. VII.

Re-engineering (redesign the management process and transfer for technology traditional to modern one) Out sourcing(contracting with another company or person to do a particular function) E-commerce( business doing on the internet) Bench marking(making a goal or target for company) Suppliers(who supply the product from producer to market) Global and local market(world wide market& with in territory market) Decentralization(diffusion of authority of decision making to lower level management )

Market responses

Customization Good relationship with customers Target marketing Customer database Integrated marketing communication

Significance of marketing

The management should creating awareness about product by promting,advertising, fare shows, on web sites ads etc.

Delivering Customer values and satisfaction

The management not only satisfy the articulate need of the customers but also satisfy the unarticulated needs of the customers.

Business Components:
Business components are those which may be designing and implementing an application in the organaisation.examples includes business logic, stake holders, business process ,resources and organisation.

Customers Satisfaction
Satisfaction

is a general feelings of pleasure or disappointment resulting from comparing products perceived performance (or out come) in relation to his or her expectation. When the performance of product much exceeds the customers satisfaction then the customer is delighted customers.

Retaining and Attracting Customers

Customers are becoming harder to please According to Jeffrey Gitomer,is not necessarily to produce satisfied customers ,the challenge is to produce delighted and loyal customers. I. Developing the advertisement in proper media. II. Mailing and making personal calls to prospective customers. III. Participating in trade shows, fare and organizing events. IV. Then make the customers with three segments according to their attraction to wards the products. Arrange in cold ,warm and hot.

Cost of losing a customers

The rate at which company loss their customers.

Estimate

the rate of loss:

Define and measure the retaintation rate. Identify the causes for attrition . Estimate the amount of product lost by customers. Figure out the cost of retaining the customers,

Need for retaintation: Increase revenue Decrease in cost of selling Advertising(the word of mouth) Cross selling

Customer profitability

According to Fillip Potter, a profitable customers is a person, house hold, company, that overtime yields a revenue exceeds by an acceptable amount the company cost stream is attracting, selling and servicing that customer. Parator measuring that 20 percent of delightful customers create revenue of 80 percent for company. But Mr. Serfdom describe that 20 /80/30,it means 20 percent creates 80 percent profit but 30 percent of undelightful customers make loss for the organisation. They divide customers in to 3 groups low, med and high.

Activity Based Costing(ABC)

assigns an organisations resource cost through activities to the product and services provided to its customers. i. Activity dictionary of organisation. ii. Pending cash activities iii. Identifying organisation situation production services and customers.
ABC

Relationship Marketing
I. II.

III. IV. V.

Relationship marketing refers to the understanding and responding the customers needs and references to more meaningful and long term connects with customers. Basic marketing: (the sales person simply sales the product.) Reactive marketing: (the sales person sells the product and encourages the customers to call if he or she has any questions,comments,or complaints.) Accountable marketing: (the sales p[person phones the customers to check the weather the product is meeting expectations.) Proactive marketing: (the sales person contacts the customers from time to time with suggestion about improved there product.) Partnership marketing: ( the company works continuously with its large customers to help improve their performance)

Concept of consumer value

a. b.

c.

A consumer difference between benefits and cost of accruing for a product. The concept of consumer value is consist of three things, they are Value chain(the chain activity from raw materials procurement to the after sale service is called value chain) Value cost balance (the organisation need to understand the value of product and cost that they provide to the customers) Value delivery system( the organisation or a factory supplies and distribute the value to customers. This endto-end system that collaborates to deliver value to customers is called value delivery system.)