PRINCIPLE OF MARKETING

A social and managerial process where by individuals and groups obtains what they need and want through creating and exchanging products and values with other. Explanation: Marketers focus on needs and wants of individuals, groups and societies. They focus on market demand, individual demand and the trend in society. If marketer does a good job of understanding consumer needs, develop products that provide superior values, and the prizes distribute and promote them effectively. These products will sale very easily. Need: A state of felt, deprivation. Want: The form taking by a human need as shape by culture and individual personality. Demand: Human wants that are supported by buying power. Market: A set of all actual and potential buyer of products and services. The term market stood for the place, where buyers and sellers gather to exchange their goods. Economists used a term market to refer a collection of buyers and sellers who transact in a particular product class as in a housing market or the grain market. Marketers are those person who are keenly interested in market in order to introduce launch and maintain the product of his service in the market . Effective marketing can be done by the help of marketers in a market place. In marketing concept, market is not only a physical place but it is also a non-physical place. Marketing Management Concept: The art and science of choosing target market and building profitable relationship with them. In marketing management we focus also on demand management.

Marketing Management Orientation: Marketing management orientation contain production concept, product concept , selling concept and marketing concept.
1. Production concept :

The idea that costumers/consumers will favour product that are available and highly affordable. Management should focus on improving production and distribution efficiency. This concept is one of the oldest guideline for the sellers. The product concept philosophy use in two situations. First, when a demand of product exceeds the supply. Management should look for a way to increase a production. The second situation occurs when the product is too high and improves productivity is needed to bring down it. 2. Product Concept: The idea that consumer will favour product that offer those quality, performance, features and the organizations should therefore devote its energy to making continuous product improvement . Some manufacturer believes that if they can build a better product the world will beat a path to their growth. 3. Saving Concept: The idea that consumers will not buy enough product of an organization unless the organization undertakes a large scale saving products and promotional efforts. 4. Marketing Concept: Marketing management philosophy that hold that achieving organizational goals depend on determining the need and demand of the product more effectively and efficiently them competitors. Customers relationship management: The overall process of building and maintaining profitable customer relationship by delivering superior customer values and satisfaction. One of the core advantages of customer relation management is to achieve the strategies (long term planning) by the help of tactics. In the customer relationship management the customer

life time values are very important. The value of entire stream of purchase that the customer goods make over the time life of patronage is called customer life time value. Past precise value means the difference between the total customer value and total customer cost. Strategic Planning: 1. Planning 2. Budget 3. Competitor Strategies The process of developing and maintaining a strategic fit between the organization goals and capabilities and its changing market opportunities. It involves defining a clear company vision setting supportive objective, designing a sound business portfolio and coordinating functional strategies. Mission Statement: Is a statement of organization purpose, what is the wants to accomplish in a larger environment. Many organizations develop a formal mission statement that answer the questions related to that organization that is why we can say that statement contain all organization purposes. Some companies define their mission statement in term of product or technologies. A good maintain mission statement must contain market orientation. A market orientation mission defines the business in term of defining basic customer needs. Mission should fit the market environment needs. Mission should fir the market environment, motivate the customers and consumers and satisfy the stock holder of that organization. Business Portfolio: The collection of business and product that make up the company. The correct business portfolio to decide which business should receive more, less or no investment. Secondly, it should develop future developing strategies for growth and downsizing. Portfolio Analysis: A tool by which management identify and evaluate the various business making up the company. Strategic Business Unit (SBU):

A unit of company that has separate mission and objective and that can be planned independently from other company businesses.

Business portfolio analysis approach: There are two approaches which are used to analyze business current condition as well as business long term strategies and the character function. 1. Boston Consulting group approach: This approach used to identifying SBU performance in order to identify the growth, share, matrix area. BSG approach can classified the strategic unit of Business Company according to market share or growth. The vertical matrix shows the market growth rate while the horizontal axis shows the relative market share. We can analyze each unit strength in a competitive market by the help of this matrix.

Market Growth rate

Star

Question Mark

Cash Cow

Dog

Market Share rate

Star:

High growth rate as well as high market share of a business or product in a market. In this phase (star) the company strategic unit/company must maintain its position in a competitive market. The advertisement expense in this phase is low. Cash cow: Cash cow is a region in BCG matrix where low market rate occur with a high relative market share of a business or product. In these condition we usually adopt product innovation rather than product invention. The strategic form unit of any business firm in this condition may increase advertising expense as well as other marketing expense in order to support innovation strategy. Question mark: In this area of BCG matrix the market growth rate is high but the relative market share is very low. In this position companies adopt competitive marketing strategies. Enter into the market with complete information of existing product with a strategic business planning. Dog: In this condition, we have low relative market share as well as low growth market rate. Usually we adopt the product windup strategy in this case because of low market growth rate.

2.